Company

Executive Summary Update – South Texas Project

Oil and Natural Gas Consortium

Baron Energy, Inc. (“Baron” or the “Company”) has formed a consortium of non-op oil and natural gas investors to pursue a 3-5 year strategy of growing a portfolio of oil and gas properties with substantial market value and then monetizing the portfolio.

Management

Our consortium is managed by Baron Energy, Inc., a publicly-traded, independent oil and natural gas company based in San Marcos, Texas.

Baron’s multi-disciplined management team has more than 35 years each of industry experience, including most upstream commercial and technical disciplines, and both major oil company and independent owner/operator experience.

The management team has worked together for more than 25 years. The team has completed more than 120 buy/sell transactions in Texas since 2002; operated producing properties in 24 Texas counties and, at peak, managed more than 150 wells and approximately 500 BOEPD of production.

Management is highly invested in the Company and is extremely motivated to create shareholder value.

Strategy

Our strategy is to manage a consortium of like-minded investors seeking to invest in non-operated oil and natural gas properties. Baron Energy will operate the properties on a fee basis.

We pursue acquisitions of long-lived producing oil and natural gas properties with relatively low decline rates, predictable production profiles, and future low-risk development opportunities.

We focus on acquisitions that have upside via workovers, recompletions, and in-fill drilling opportunities.

We plan to grow a portfolio of properties over the next 3-5 years that has substantial value in the market place and if the opportunity arises monetize the portfolio.

Our 3-5 year production target is 500-1,000 gross barrels of oil equivalent per day. We plan to own up to 100 producing wells in order to achieve this target.

We also expect to realize a significant number of future drilling locations that will be found throughout the portfolio.

Timing and Managed Growth

Our plan began in late 2015 and we made our first acquisition in December 2015. A second acquisition was closed in March 2016; two more in May 2016 and another in June 2016. Additional acquisitions are at various levels of due diligence, with the expectation of more closings to be in the 3Q and 4Q of 2016.

Focus Area

We are focused on oil properties in South Texas. Our focus area includes 17 counties with approximately 12,000 producing leases, 122,500 wells drilled, and 1.6 million barrels of oil equivalent per day of production.

Acquisition Targets

We target producing properties with depths ranging from 2,000 to 10,000 feet and multiple pay zones. Targets may be single or multiple-well properties. We have closed, or are currently pursuing, acquisitions ranging from $60,000 to $1,500,000.

Near-Term Production Increases

We target acquisitions with current production (2-5 BOPD/well) that also include near-term work programs to increase production by 2-5 times via workovers or recompletions.

Recompletions and In-Fill Drilling

Some leases acquired may have the potential for recompletions of existing wells or in-fill drilling of new wells. Should this be the case we would expect shallow oil wells to have initial production (IP) rates of 20-50 BOPD and deeper oil wells of 100-200 BOPD.

Flexible Business Model

Our business model is flexible and can be adjusted for the availability of acquisition opportunities, funding, and market conditions.

Oil Price Projections for Business Model

We are currently using oil price projections in our base case business model for the next 3 years of $40, $50 and $60 per barrel.

Safety and Cost Control

Maintaining a focus on safety and effective cost control is paramount to our operations.

Additional Information

Please contact Baron Energy directly for additional information. Our office number is 512-392-5775 or email Baron at info@baronenergy.com. Our website is www.baronenergy.com.

Ongoing Acquisition Program

projected well count pro forma

We are operating a continuous acquisition program focusing on producing properties with upside. These acquisitions will range from single well properties to multi-well projects. We expect the acquisition targets to increase in size as the consortium’s portfolio grows.

Forward-Looking Statements

Certain statements in this press release that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “future,” “may,” “will,” “would,” “should,” “plan,” “projected,” “potential,” “intend,” and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Baron Energy, Inc. (the “Company”) to be materially different from those expressed or implied by such forward-looking statements. The Company’s future operating results are dependent upon many factors, including risk factors discussed in the Company’s periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

CONTACT:
Baron Energy, Inc.
Investor Contact: Brad Holmes
Phone: (713) 304-6962
Email: b_holmes@att.net