Jefferies Financial Group Investor Day Presentation Deck

2010 | Original Thesis: Deeper, Denser, Cheaper, Better, Expanded w Horizontal Wells Gerrity 2010 Acreage ■ ■ Vitesse In 2010, Bob Gerrity started to acquire for his ▪ The focus was on purchasing undeveloped own account undeveloped oil and gas leases in prospective areas of the Bakken field of North Dakota shown in yellow on the map properties "ahead of the drill bit" believing that superior economics would be derived from drilling wells that converted undeveloped acreage into streams of cash flow The thesis was that the Bakken is a world class rock and over time fracture technology would improve, drilling costs would decline, and the field would become increasingly economic - Deeper: Additional benches would be viable (additional future locations) Denser: Increased spacing per unit (additional future locations) Cheaper: Well costs and operating expenses would decline as completion technologies improved and efficiencies were realized Better: Reserves per well (EUR) would increase through enhanced frac technology - Expanded: Tier 3 acreage would eventually yield Tier 1 economics with improved frac results across the basin 58 ▪ As producing wells became cash generating, the proceeds were reinvested into purchasing additional undeveloped acreage and horizontal drilling Jefferies

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