Carbon Energy Corporation
1700 Broadway, Suite 1170 , Denver, United States

Carbon Energy Corporation is an independent oil and gas company engaged in the exploration, development and production of oil and natural gas in the United States.  The Companys business is comprised of the assets of Nytis Exploration (USA) Inc. (“Nytis USA”) which conducts the Companys operations in the Appalachian and Illinois Basins, and of its investment affiliates, Carbon Appalachian Company, LLC which owns oil and gas properties in Appalachia and Carbon California Company, LLC which owns oil and gas properties in California.

Carbon Energy Corporation

The business of Carbon Energy Corporation is comprised of the assets of Carbon and its subsidiaries as well as its investments in Carbon Appalachian Company and Carbon California Company.  Carbon operates and develops both conventional and unconventional reservoirs, including shale, tight sands and coal bed methane.  Carbons growth plan is centered on the following activities:

• Acquisition and development of oil and gas properties through Carbon and through its affiliates, Carbon Appalachian Company and Carbon California Company

• Producing property acquisitions which provide attractive risk adjusted rates of return, development potential and which complement Carbons existing asset base

• Development, optimization and maintenance of a portfolio of low risk, long-lived oil and natural gas properties which provide stable cash flows

Carbon Appalachia Overview

Carbon Appalachian was formed in 2016 by Carbon to acquire oil and gas producing properties in the southern Appalachian Basin. As of December 31, 2017, Carbon Appalachian has completed acquisitions comprising approximately 335 bcf equivalent of proved developed producing reserves. Carbon is the Manager of Carbon Appalachian and has a 27.5% ownership interest with the ability to increase ownership once a return threshold is met.

• Exploration and production companies are divesting southern Appalachia Basin production and midstream assets. This creates an opportunity for Carbon Appalachia to acquire producing assets, build on existing operations and consolidate a southern Appalachia position.

• The acquired properties compliment Carbons existing properties and exhibit low decline, long-life reserves with minimal capital maintenance requirements and a large inventory of development projects.

Carbon California Overview

Carbon California was formed in 2016 by Carbon to acquire producing assets in the Ventura Basin of California. As of December 31, 2017, Carbon California has completed acquisitions comprising approximately 13 million barrels of oil equivalent. Carbon is the manager of Carbon California and has a 56% ownership interest.

• Exploration and production companies are divesting California oil and gas producing assets. This creates an opportunity for Carbon California to acquire producing assets, build on existing operations and consolidate a Ventura Basin position

• Carbon California has identified the Ventura Basin of California as an area which presents an opportunity to establish a portfolio of light oil, low operating cost properties

• The acquired properties exhibit low decline, long-life reserves with minimal capital maintenance requirements and a large inventory of development projects

Why Invest in Carbon Energy Corporation

• Management team has a long-term successful track record of creating value for their shareholders and partners

• Strong technical team with acquisition, production and drilling experience

• Excellent opportunities to add producing reserves and cashflow at attractive valuations

• Balanced commodity portfolio of long lived, low decline oil and gas reserves