Bogotá, September 28th 2019.

To: Michael Massey.

From: Flamingo Oil & Gas.

YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
TOTAL 1 2 3 4 5 6 7 8 9 10 11 12 13
Sales (us$) $ 386.592.667 $ 28.920.456 $ 43.006.382 $ 47.245.450 $ 44.587.087 $ 42.294.121 $ 40.264.514 $ 36.732.372 $ 28.596.881 $ 22.283.526 $ 17.613.745 $ 14.133.331 $ 11.471.839 $ 9.442.963
Net sales (us$) $ 386.592.667 $ 28.920.456 $ 43.006.382 $ 47.245.450 $ 44.587.087 $ 42.294.121 $ 40.264.514 $ 36.732.372 $ 28.596.881 $ 22.283.526 $ 17.613.745 $ 14.133.331 $ 11.471.839 $ 9.442.963

Operating expenses:
G&A (us$) $ 6.360.252 $ 962.355 $ 592.579 $ 606.076 $ 581.087 $ 559.097 $ 539.566 $ 509.752 $ 444.194 $ 388.861 $ 343.927 $ 307.028 $ 275.960 $ 249.771
OPEX (us$) $ 48.291.037 $ 4.639.490 $ 5.127.037 $ 4.880.873 $ 4.576.668 $ 4.296.079 $ 4.036.801 $ 3.772.220 $ 3.450.352 $ 3.162.152 $ 2.907.053 $ 2.679.473 $ 2.474.212 $ 2.288.628
Total operating expenses (us$) $ 54.651.289 $ 5.601.845 $ 5.719.616 $ 5.486.949 $ 5.157.754 $ 4.855.176 $ 4.576.367 $ 4.281.973 $ 3.894.546 $ 3.551.013 $ 3.250.981 $ 2.986.500 $ 2.750.171 $ 2.538.399

EBITDA $ 331.941.378 $ 23.318.611 $ 37.286.766 $ 41.758.501 $ 39.429.333 $ 37.438.945 $ 35.688.147 $ 32.450.399 $ 24.702.335 $ 18.732.513 $ 14.362.764 $ 11.146.831 $ 8.721.668 $ 6.904.564
Depreciation (us$) ($ 39.600.000) ($ 2.397.829) ($ 4.205.880) ($ 4.917.973) ($ 4.712.531) ($ 4.538.693) ($ 4.384.977) ($ 4.022.723) ($ 3.049.012) ($ 2.303.007) ($ 1.762.548) ($ 1.369.403) ($ 1.076.149) ($ 859.276)
Interest, net (us$) ($ 11.398.457) $ - $ (1.800.000) $ (1.746.926) $ (1.621.847) $ (1.480.904) $ (1.322.087) $ (1.143.127) $ (941.471) $ (762.624) $ (435.440) $ (144.031) $ - $ -
Income taxes @ 33% (us$) ($ 96.472.655) ($ 6.903.858) ($ 10.916.692) ($ 12.157.374) ($ 11.456.545) ($ 10.857.083) ($ 10.330.046) ($ 9.381.133) ($ 7.145.596) ($ 5.421.737) ($ 4.158.071) ($ 3.226.551) ($ 2.523.021) ($ 1.994.945)
Net income (us$) $ 184.470.266 $ 14.016.924 $ 20.364.193 $ 22.936.228 $ 21.638.411 $ 20.562.264 $ 19.651.038 $ 17.903.417 $ 13.566.255 $ 10.245.145 $ 8.006.705 $ 6.406.846 $ 5.122.497 $ 4.050.343
CASH FLOW ANALYSIS
Cash flow from operations (us$) $ 237.463.668 $ 23.318.611 $ 30.382.908 $ 30.841.809 $ 27.271.958 $ 25.982.400 $ 24.831.064 $ 22.120.353 $ 15.321.201 $ 11.586.917 $ 8.941.027 $ 6.988.759 $ 5.495.116 $ 4.381.543
Capital expenditures (us$) ($ 39.600.000) ($ 37.938.462) ($ 138.462) ($ 138.462) ($ 138.462) ($ 138.462) ($ 138.462) ($ 138.462) ($ 138.462) ($ 138.462) ($ 138.462) ($ 138.462) ($ 138.462) ($ 138.462)

TRUE ENERGY 70% / NIKOIL 30% TRUE ENERGY 30% IN OIL / TRUE ENERGY 50% IN GAS & CONDENSATE / NIKOIL 70% IN OIL / NIKOIL 50% IN GAS & CONDENSATE
TRUE ENERGY $ 80.748.466 ($ 21.615.434) $ 21.129.574 $ 21.450.805 $ 10.770.322 $ 10.254.498 $ 9.793.964 $ 8.709.680 $ 5.990.019 $ 4.496.305 $ 3.437.949 $ 2.657.042 $ 2.059.585 $ 1.614.156
TRUE ENERGY Accum ulated $ 80.748.466 ($ 21.615.434) ($ 485.860) $ 20.964.945 $ 31.735.267 $ 41.989.765 $ 51.783.730 $ 60.493.409 $ 66.483.428 $ 70.979.733 $ 74.417.683 $ 77.074.725 $ 79.134.310 $ 80.748.466
NIKOIL $ 117.115.203 $ 6.995.583 $ 9.114.872 $ 9.252.543 $ 16.363.175 $ 15.589.440 $ 14.898.639 $ 13.272.212 $ 9.192.721 $ 6.952.150 $ 5.364.616 $ 4.193.256 $ 3.297.070 $ 2.628.926
NIKOIL Accum ulated $ 117.115.203 $ 6.995.583 $ 16.110.456 $ 25.362.998 $ 41.726.173 $ 57.315.613 $ 72.214.252 $ 85.486.464 $ 94.679.185 $ 101.631.335 $ 106.995.951 $ 111.189.207 $ 114.486.277 $ 117.115.203

The NET INCOME of TRUE ENERGY will be 81.0 MMus$, therefore for the new partner it will be 40.5 MMus$.

The future TRUE ENERGY partner must help raise the required capital of 16.0 MMus$ and could receive
50% of the shares of TRUE ENERGY.