The three well package will be offered under a Turnkey Drilling Contract. MPG is currently offering its qualified participants the opportunity to review this project.

The King City Project will have various industry partners involved as well as the project’s limited partners. These wells should produce oil with associated natural gas.

Delta Oil and Gas engineers estimate upon a successful completion attempt of the first prospect, this well should have an initial production of 60-80 BOPD (all initial production numbers have been provided solely by Delta Oil and Gas).

Managed Petroleum Group, Inc. has run internal economics based on $3/MCF gas and $80/BO.

Notable features of this project include:

Income

• These drilling prospects show very strong production potential for short-term goal income.
• Quarterly income from production is anticipated.

Taxes

• Current tax laws allow you to take deductions for Intangible Drilling Costs (IDC).
• Approximately 75% of the turnkey price is allocated to IDC.

Timing

• Demand from emerging world markets are at an all time high. (China, India)
• Oil producing nations cannot keep up with demand. (OPEC)
• Oil and gas production in the United States is at an all time low while consumption is at an all time high.
• Oil prices at the pump are at near record levels and no apparent cap on prices are in sight. Current prices are hovering at $95.00 per barrel.
• Continuing Middle East conflicts could disrupt oil supplies.

Operator History

The success of any Operator drilling wells in California depend upon:

• Operators’ reputation in the industry.
• Successful history of large producing fields in California.
• Credit with suppliers.
• Ability to get equipment when needed.
• Ability to get sub-contractors to complete the project wells.

Operator Participation

• Operator/Generator is participating in cost of the wells at 33%.

Conclusion

• Demand should increase; supply should continue to be limited.
• Domestic oil and gas exploration benefits the United States and lessens its dependency on foreign energy sources.

Current drilling prices at the above mentioned commodity prices gives the MPG King City Project a strong upside potential.

For further information regarding topics discussed in this article please contact Managed Petroleum Group, Inc. directly at (866) 885-3221 or visit them on the web at www.ManagedPetroleum.com. Emails may be directed to Info@ManagedPetroleum.com.

*The tax example is provided for general information only. This information is not intended to be individual tax advice. The limited partnership participant should consult his/her personal tax adviser concerning the applicability and effect on his/her personal tax situation. Tax laws change from time to time and there can be no guarantee of the interpretation of the tax laws.

On Sunday, June 24, 2012 Lincoln Energy Operating informed their partners of the successful fracking of the LEO Cox Mills #11-2 well. Fracture treatments performed by SanJel Corp. were in line with the treatment procedures designed by Lincoln Energy’s Petroleum Engineer. At the time of this post, flow back and fluid retrieval was taking place. Oil has been observed in the flow back of frac fluids.