Standard Royalty Group is an oil and gas investment firm located in Dallas, TX. They seek niche investment opportunities in the energy sector that provide asset value and cash flow while maintaining a low-risk philosophy. Their strategy focuses on acquiring mineral rights, royalty interests in producing and non-producing assets, and low-producing oil and gas wells which can be improved with new extraction technologies. They also look for joint venture opportunities in drilling and investments in midstream energy infrastructure like pipelines and processing facilities.

1. 4425 E. Airport Freeway
Suite 310
Irving, TX 75062
Phone: 214-531-3820:
Setting the Standard In Domestic Oil and Gas Management
Standard Royalty Group

2. “the demand for efficient technology, expanding infrastructure, and
increased exploration in the coming decade will result in tremendous
opportunities within the energy sector.”

3. Standard Royalty Group, LLC is
located in Dallas, TX. Our Strategy
said very simply is to locate niche
segments of the oil and gas industry
that can provide asset value and cash
flow while adhering to our risk
adverse philosophy. Over the next
10-15 years there will be a frenzy of
activity within the E&P side of the
business. “There is a “shale boom”
going on globally right now and in this
new energy landscape North
America is the leader.” By 2016 U.S.
imports of foreign oil are expected to
be cut by as much as 41%. By 2020 it
is projected that the U.S. will surpass
Saudi Arabia as the largest oil
producer. Just as important, the U.S.
is expected to become the largest
net exporter of fossil fuels by 2030.
“This “frenzy” of activity to get
Strategy
resources out of the ground and into
the system will require substantial
expansion in midstream
infrastructure.” Our vision includes a
focus on finding opportunities within
this segment. We believe that the
right investments in this area can
provide significant returns while
maintaining a low-risk asset based
philosophy. A key to our success is a
forensic research approach. Our
strategy includes using these
expertise to create “branch”
portfolio’s of royalty and mineral
right interests. “We are excited
about the opportunities that exist in
areas that geologically match with
today’s technology.” These areas are
untouched by the technological
advances in drilling and completion
utilized elsewhere. Mineral and
Royalty investments in these areas in
the early stages can generate income
and provide substantial return upon
liquidation. We will also continually
evaluate the opportunities that exist
in EOR (enhanced oil recovery) and
other secondary recovery potential.
There are a large number of wells
that through time have been ignored
or abandoned, today's technology can
bring a second life to thousands of
wells. Local knowledge, extensive
research, and our forensic approach
can turn these old wells into good
investments. Standard Royalty Group
is committed to combining the
disciplined talents of it’s team with a
transparent view and successful
execution of it’s strategy.
4425 E. Airport Freeway
Suite 310
Irving, TX 75062
Phone: 214-531-3820:
www.standardroyalty.com
Standard Royalty Group

4. Royalty & Mineral Rights
When an oil and gas company suspects that an area may be
productive for oil or gas it must gain the right to explore that
area further. These rights are referred to as mineral rights. A
lease contract is drawn up between the lessee and the owner
of the mineral rights. It is not uncommon for the owner of
mineral rights to differ from the surface rights owner. A
payment is typically made to the lessor at lease signing usually
referred to as a “signing bonus”. Mineral leases are typically
for a set period of time and can also come with specific rights
and restrictions regarding the activity that may take place.
The lessor typically receives a share in income from any oil or
gas production that exists, this “royalty payment” typically
holds the lease contract in place and can mean substantial
income over the life of the lease. Since the start of the “shale
boom” in 1999 the returns available for those willing to
invest early in mineral acquisition have been enormous.
There are numerous examples of minerals that were leased
for less than $1000 per acre that later were valued at 10
times that.
Standard Royalty Group will also focus on buying the rights to
the royalty interest in producing and non-producing assets.
Royalty Interest as mentioned prior receive a share in the
income from any oil or gas that is produced. Royalty Interest
owners do not share in any of the expenses of exploration,
operations, or development. This is a risk adverse approach
to sharing in the income of producing oil and gas properties
without sharing in the high cost of extraction. Royalty
Interests also receive unique tax treatment and can be
qualified as real property for 1031 Exchange situations.

5. A principle part of our strategy at Standard Royalty is to target opportunities that can generate an
immediate income stream, while providing a value at purchase and increased return with minimum
capital commitment. There are thousands of wells producing at low levels across our country that
have valuable proven reserves still in there coffers. These properties can be acquired at negotiated
discounts and brought back to life with relatively small capital investment .
Income Producing Properties
In area’s throughout the United States
there are wells producing at minimum
levels. These properties are sometimes
referred to as “stripper wells”. A large
number of these wells were completed
with less effective technology from 30 or
40 years ago. Many still were walked
away from or abandoned by operators
the went out of business or as a result of
a downturn in commodity prices.
Through state agency’s many of these
properties can be “adopted” at little or
no cost. Some can be purchased at steep
discounts from banks who have absorbed
them as collateral and many are on the
market by operators without the capital
budget to sustain them. A large number
of these opportunities exist in areas that
today are at the center of North
America’s new “energy boom”. “Going
into area’s where we have well known
geology, existing infrastructure and
today’s advancements in technology
make these very exciting propositions”.
New methods in EOR (enhanced oil
recovery) such as, CO 2 Injection,
water flooding, and others can
increase production from these wells
30-40% from current levels.
Comparatively this can be achieved
with relatively small capital
investment. These investments also
stand poised to benefit greatly if as
expected oil and natural gas prices
continue their rise in coming years.
“Targeting these proven reserves still
left in the ground matches our low-
risk philosophy. They start paying
from day one and with a well-
researched forensic approach can
keep paying for many day’s to come”.
4425 E. Airport Freeway
Suite 310
Irving, TX 75062
Phone: 214-531-3820:
www.standardroyalty.com
Standard Royalty Group

6. North America is currently seeing a
drilling boom. Massive advancements
have been made in finding sciences,
drilling techniques and the completion &
stimulation of the reservoir. 20 years
ago major new discoveries became
harder and harder to find if not
impossible in North America.
Independent operators working
domestically were forced to go back to
areas that had been thought to be
depleted or uneconomic. In that 20
years from then to today many fortunes
have been made. Today’s drilling still has
the inherent risk of exploration.
However it is undoubtedly easier to
achieve success today than 20 years ago.
A tremendous amount of historical data,
advancements in technology, and a very
active marketplace keep this area
growing. On the down side it is a very
capital intensive business with billions
spent every year waiting on return.
“To ensure the best possible chance for
success is expensive. We do not intend
to spend an overweighed amount of
capital here due to our risk philosophy.
We will however utilize our relationships
within the industry to target Joint Nulla vestibulum
Venture and other low-risk drilling
opportunities”.
This strategy will anchor on a forensic
research approach focused on leasing,
permitting, geological, and production
data. These operations can also add
value in increasing proven reserves on
assets we own through or royalty and
mineral right investments. Investments
made within our Drilling and Exploration
strategy will look to provide upside
potential and substantial cash flow into
the company and for it’s partners. In
addition, Intangible Drilling Cost (IDC’s)
deductions and other tax benefits are
attractive offsets against other activity.
Developement & Exploration

7. The midstream sector provides the
backbone of the nations energy
infrastructure, this includes treatment
& processing, storage, transportation,
and pipelines. As E&P companies
continue to drill at increasing rates
current infrastructure is reaching it’s
limit. This can already be seen in places
like Cushing, OK. Shippers wait in line
to transport product to refineries on
the Gulf Coast.
Thanks to the success of
unconventional plays such as the Eagle
Ford Shale or Niobrara Shale the
demand is constantly growing for new
infrastructure capable of handling
higher volumes and pressure. It is
projected that for every dollar spent
upstream 15 - 35 cents will be spent on
gathering, processing, and treatment
infrastructure. Currently, liquid rich
resources are in high demand. Natural
Gas Liquids (NGL) are products such
as ethane, propane, butane and natural
gasoline. These by-products of “wet
gas” can easily add $2 - $4 to the value
per mcf of natural gas. Additionally, an
expansion in the crude oil transmission
lines will provide alternatives to
trucking product from the tank
batteries on location to distant
injection points.
In combination with risk-management
strategies such as “produce or pay”
clauses these investments can provide
several benefits. “We are attracted by
the increasing asset value, predictable
cash flow and potential tax advantages.
We also like that it is typically a fee
based structure which fits with our
risk adverse strategy”. Based on
current drilling projections, strong
performance of wells, and additional
acreage commitments infrastructure
must expand. Standard Royalty plans
to collaborate with proven midstream
management teams on a variety of
opportunities within this segment. “In
between the wellhead and the refinery
many dollars are spent. We would like
to share in that residual stream”.
4425 E. Airport Freeway
Suite 310
Irving, TX 75062
Phone: 214-531-3820:
www.standardroyalty.com
Standard Royalty Group
Midstream Opportunities

8. 4425 E. Airport Freeway
Suite 310
Irving, TX 75062
Phone: 214-531-3820:
Setting the Standard In Domestic Oil and Gas Management
Standard Royalty Group