Rule 506(c) · Accredited Investors Only
Crossbow Energy LLC · Private Placement

Hayes Lumber Co. 28 #3
Replacement Well

Topsy Field · Jefferson Davis Parish, Louisiana · Upper Frio Formation

A low-risk development well targeting two productive zones with 192,000 barrels of documented production history, third-party certified reserves, and full reservoir pressure intact. Operated by Key Operating Company LLC — 30 years Louisiana experience.

$2,200,000 Total Raise
75% Net Revenue Interest
$176,000 Preferred Distribution
$2,376,000 Payout Threshold
180,939 Proven BBLs
20% Back-in WI After Payout

V11 — Final Structure

Clean, investor-friendly economics with a documented AFE, fixed payout threshold, and 75% NRI confirmed in writing by the operator. Each investor receives a pro rata share of both revenue distributions and the preferred distribution, based on their proportional share of the total raise.

Total Raise $2,200,000
Documented AFE (Key Operating, May 2026) $1,971,600
Organizational & Offering Expenses $228,400
Preferred Distribution (8% of raise, paid pro rata from production) $176,000
Payout Threshold $2,376,000
Net Revenue Interest (allocated pro rata to investors) 75%
Managing Partner Back-in (after payout) 20%
Monthly Management Fee 1.5% of gross monthly revenues — paid monthly, fluctuates with production
Minimum Raise None
Offering Type Rule 506(c)
01

You Invest

75% of all production revenue flows to investors from day one, split pro rata according to each investor's share of the total raise. One-time $176,000 preferred distribution paid from production on the same pro rata basis — not annual, not accruing.

02

Fixed Payout

Production returns your $2,200,000 plus your pro rata share of the $176,000 preferred distribution. Total payout threshold: $2,376,000. One fixed number. No clock. No accrual.

03

After Payout

You retain your pro rata share of the 75% NRI at zero capital at risk. Managing Partner's 20% back-in activates. Production income continues for the life of the well.

Hayes Lumber Co. 28 #3
Replacement Well

A replacement well drilled from the existing pad into two proven productive zones, backed by 192,000 barrels of documented production history and full reservoir pressure confirmed intact.

Well NameHayes Lumber Co. 28 #3
Serial Number#222749 (Replacement)
FieldTopsy Field (8976)
ParishJefferson Davis Parish, LA
Primary Target6,400' Sand (Upper Frio)
Secondary TargetMarg 1 Sand (Never Perforated)
Proposed TD6,512' MD / 6,510' TVD
StructureFour-Way Closure
Geophysics3D Seismic Confirmed
Historical Production192,000 BBLs / 65 MMCF
Original IP (Feb. 2006)165 BOD & 4 MCFD
Reservoir Pressure (2012)2,886 psi — 26 psi above original

The Hayes Lumber No. 2 well was completed in the 6,400' Sand in February 2006, flowing at 165 BOD. It produced 192,000 barrels while reservoir pressure remained at or above original levels — confirmed by D-O-R Engineering in January 2012 at 2,886 psi, actually 26 psi higher than the 2006 estimate.

Why a Replacement Well, Not a Repair: The original wellbore developed a casing leak caused by saline water naturally present in the reservoir — corrosion that went untreated under prior ownership. A 2021 workover successfully repaired the leak and the well flowed over 100 BOD for several days, proving the reservoir itself was still very much alive. Shortly after, a gravel pack collapse caused the well to sand up. Rather than continue chasing repairs on a compromised, aging wellbore, Crossbow Energy is drilling a complete replacement well from the same existing pad — this time treated to guard against the same saline corrosion that went unaddressed the first time around. Because the pad, roads, and surface permitting are already in place, a full replacement is more cost-effective than it might sound.

The abandonment was mechanical — not reservoir depletion. The reservoir is alive.

The Marg 1 Sand secondary target — carrying 60,330 BBLs of proven reserves — has never been perforated. Oil cores confirmed. This project accesses both zones.

120,609 6,400' Sand BBLs
60,330 Marg 1 Sand BBLs
180,939 Total Proven Reserves — D-O-R Engineering (Jan. 2024)
100–200 BOD
Expected Initial Production

Because bottom hole pressure today is at or near the same level as it was when the original well came online at 165 BOD in February 2006, the replacement well is expected to perform in line with that same proven rate.

Why This Is a Low-Risk Development Well

Six independent technical factors confirm reservoir quality, structural integrity, and production potential — before the first dollar of new capital is deployed.

Proven Production History

192,000 barrels already produced from the 6,400' Sand validates reservoir quality, deliverability, and reserve estimates from the actual well being replaced.

Full Pressure Integrity Confirmed

Reservoir pressure confirmed at 2,886 psi by D-O-R Engineering in January 2012 — 26 psi higher than the original 2006 estimate. 192,000 barrels were produced with virtually no drive energy lost.

28–32% Porosity Confirmed

Sidewall core analysis by Core Petrophysics, Inc. (Schlumberger affiliate) confirms 28–32% porosity in the primary 6,400' Sand — exceptional reservoir quality for Louisiana Gulf Coast sandstones. Gold fluorescence confirms oil presence throughout.

3D Seismic & Four-Way Closure

Four-way structural closure confirmed on 3D seismic. Amplitude anomalies confirm hydrocarbon presence at both the Marg 1 and 6,400' Sand levels. Full seismic data available for review in Lafayette, Louisiana.

Independent Reserve Certification

D-O-R Engineering, Inc. (Baton Rouge, established 1971) provided third-party reserve certification effective January 1, 2024. 180,939 BBLs proven — conservative estimates based on actual production history consistently outperforming prior projections.

Untouched Secondary Target

The Marg 1 Sand — carrying 60,330 BBLs of proven reserves — has never been perforated. Oil cores confirmed. This represents entirely incremental production upside beyond the primary 6,400' Sand target.

Projected Investor Returns

Three production scenarios at 75% NRI, 10% annual decline, $6/bbl LOE. Payout threshold: $2,376,000. After payout, investors retain 75% NRI at zero capital at risk.

Timeline Avg BOD Cum. BBLs @ $65/bbl @ $75/bbl @ $85/bbl
Year 114352,163$2,372,663$2,737,688$3,102,712
Est. Payout~12 months~10 months~9 months
Year 3116128,290$6,128,445$7,071,283$8,014,121
Year 593213,614$9,714,186$11,208,675$12,703,163
Year 776272,030$12,376,014$14,279,247$16,182,480
Year 1055339,638$15,450,978$17,828,821$20,206,664

Figures show cumulative 75% NRI revenue to investors net of $6/bbl LOE before taxes. Payout threshold $2,376,000 — raise plus one-time $176,000 preferred distribution. 10% annual exponential decline per D-O-R Engineering. IDC deductions not included — consult your tax advisor. Projections are estimates only — not guarantees of future performance.

Experienced Hands
on the Ground

Bill Guidry

Key Operating Company LLC · Lafayette, Louisiana

Bill Guidry brings 30 years of Louisiana oil and gas operating experience to the Hayes Lumber #3 project. Key Operating Company LLC has operated numerous wells across Jefferson Davis Parish and surrounding Gulf Coast formations. Bill provided a written AFE confirmation letter dated May 14, 2026, confirming the $1,971,600 documented cost breakdown and 75% NRI in writing.

30 Years Louisiana
Operating Experience

Dean Ivey

Founder & Managing Partner · Crossbow Energy LLC · Aiken, SC

Dean Ivey brings nearly five decades of financial markets and energy operating experience. NYSE Floor Trader 1982–1985. Series 7 and Series 3 licenses. Hedge fund experience through 2008. Oil and gas operating experience through 2020. Crossbow Energy LLC manages the capital raise, investor relations, and regulatory compliance for this Rule 506(c) offering.

40+ Years Financial &
Energy Experience

D-O-R Engineering

Reserve Engineer · Baton Rouge, Louisiana · Est. 1971

D-O-R Engineering, Inc. provided independent third-party reserve certification effective January 1, 2024, confirming 180,939 BBLs of proven reserves across both productive zones. D-O-R also confirmed reservoir pressure of 2,886 psi in January 2012 — validating the integrity of the water drive mechanism.

Sibley Petroleum

Prospect Owner · Mandeville, Louisiana

Sibley Petroleum Investments LLC (Bo Sibley, Managing Member) holds the lease and project rights for the Topsy Field opportunity. Sibley assembled the full geological data package including 3D seismic, structure maps, reserve certification, and sidewall core analysis confirming the investment case.

From Funding to
First Distribution

Approximately five months from funding close to first investor distribution. Drilling contractor: Guichard — turnkey Phase 1. Completion: Key Operating — daywork Phase 2.

01
Day 0

Funding Close

Full $2,200,000 raise achieved. Escrow released to operator. Rig mobilization authorized.

02
~Day 30

Rig Mobilization

Guichard drilling rig mobilized to Topsy Field location. Conductor set at 100'. Spud well.

03
~Day 51

Drilling Complete

6,512' MD reached in approximately 21 days. Open hole logged and evaluated. Decision to complete confirmed.

04
~Day 72

Completion

5-1/2" casing run and cemented. Gravel pack completion of primary zone. Approximately 17 days.

05
~Day 80

Flow Test

Well flow tested. Initial production rate established. Static bottom hole pressure confirmed.

06
~Month 4

First Production

Well on production. First oil sales initiated at WTI pricing.

07
~Month 5

First Distribution

First monthly revenue distribution to investors. 75% NRI flowing from day one of production.

Core Analysis — Core Petrophysics, Inc.

Sidewall core analysis conducted by Core Petrophysics, Inc. (Schlumberger affiliate) confirms exceptional reservoir quality in both target zones.

28–32% Porosity — 6,400' Sand
26–32% Porosity — Marg 1 Sand
Gold Fluorescence — Oil Confirmed
34° API Gravity — Quality Crude
41–56% Water Saturation
2,886 PSI Reservoir Pressure (2012)
What this means: Porosity in the 28–32% range is exceptional for Louisiana Gulf Coast sandstones. High-quality rock holds and produces oil efficiently. Gold fluorescence is direct confirmation of oil presence throughout the productive interval. These characteristics directly support the documented 192,000 barrel production history and the conservative D-O-R reserve estimates. Complete core data available to qualified investors upon request.

Request the Investor Package

Complete geological documentation is available to qualified accredited investors on request — AFE detail, drilling timelines, 3D seismic cross-sections, structure maps, stratigraphic cross-sections, D-O-R Engineering reserve certification, sidewall core analysis, and the full Private Placement Memorandum.

📞
(561) 352-6822
✉️
Dean@crossbow-energy.com
This material constitutes a general solicitation pursuant to Rule 506(c) of Regulation D under the Securities Act of 1933. Investment opportunities are available only to accredited investors as defined under Rule 501. All investors will be required to verify accredited investor status. This is not an offer to sell securities in any jurisdiction where such offer would be unlawful. Projections are estimates only and are not guarantees. Oil and gas investment involves substantial risk including possible loss of the entire investment.

By submitting you confirm you are an accredited investor · Rule 506(c)

Thank you — Dean Ivey will be in touch within one business day.