THE POST OAK #1H AND #2H
DRILLING PROGRAM

Project Details

221-ACRE LEASE

Atascosa County, Texas Eagle Ford Shale
Located Northeast of the town of Campbellton.

Six-well Drilling Program
Two wells located in Atascosa County, Texas (Post Oak unit)
Four wells located in Karnes County, Texas (Moy East unit)

OPERATED BY TIDAL PETROLEUM

  • Over 170 wells drilled since 1984 (69% success rate)
  • Over 80 wells drilled since 2004 (94% success rate)
  • Experience in Eagle Ford Shale since 2009
  • Produced over 4.5 million barrels of oil

RISK REDUCTION

  • Drilling location with complete 360 degree well control
  • Geologically proven formation (Eagle Ford Shale)
  • Optimized drilling, completion and production design
THE POST OAK #1H AND #2H DRILLING PROGRAM Investment structure 2
Expected timeline for THE POST OAK #1H AND #2H DRILLING PROGRAM

Well Economics

Ownership and Revenue Interest (ACG) Working Interest Moy East - 46.875% (Two wells at 50% and two wells at 43.75%) Post Oak - 30%
Net Revenue Interest Moy East - 30.6% Post Oak - 21%
Recoverable Resource Estimated Ultimate Recovery (EUR) Moy East - 335,000 Barrels of oil equivalent per well; Post Oak - 450,000 Barrels of oil equivalent per well
Assumed Pricing NYMEX Futures NYMEX futures pricing (forward strip) for three years, then flat at $70/Bbl., $3.00/MMBtu thereafter. NYMEX as of 7/3/24.
Price Differentials $1.25/Bbl. and $0.30/MMBtu differential off NYMEX
Project Expenses Lease and Expected D&C Cost $38,937,048 for both wells (ACG portion $16,799,140)
Assumed Lease Operating Expenses $5,000/well/month and $4.50/Bbl

Project vs Real Estate (Multifamily)

Risks Mitigations/Considerations
Moy East/Post Oak Project Operational risk during drilling or completion Both wells already drilled, completion ongoing with minimal remaining operational risk
EUR risk (production lower than expected) EUR known by month 6-8
Oil price decline risk Oil price risk can be eliminated with basic derivatives (put options)
Multifamily Equity Investment Construction cost overrun risk Limited mitigation with contingency budget
180 units - 75% LTV - 8% interest rate - 20-mo. build Significant cap rate risk (returns highly driven by cap rate) No mitigation
- Stabilization and Exit at mo. 41 Debt/Interest rate risk (refinance risk) & Lease-up risk No mitigation
6.7% Yield to cost - 5.5% cap rate - 18% IRR, 1.7x MOIC Longer duration of equity capital risk No mitigation

Project vs Real Estate (Multifamily)

Moy East/Post Oak

  • Equity capital fully deployed after month six
  • Cash flow distributions begin in month seven
  • 50% equity capital payback achieved by month 10
  • 100% equity capital payback achieved by month 20
  • No debt
monthly and cumulative cash flow on oil well projects

Multifamily Investment

  • Equity capital fully deployed
    after month eight
  • No cash flow distributions
    through construction and
    stabilization
  • 100% of equity capital fully at
    risk for duration of project
  • Only achievable with debt

Targeted Member Returns

33%

IRR

1.4

MOIC

1.6

Years Payback

Tax-Advanced Return*

Tax Adjusted Returns*

Member marginal tax rate 30% 35% 40% 45%
Targeted Investor IRR (Tax Adjusted) 59% 64% 69% 74%
*Disclaimer: Alphascend Capital Group makes no representations or warranties concerning the tax treatment of this investment under any federal, state or local tax law. The Member must seek and rely on the advice of its own tax professionals.

* Tax Advantages Explained

Intangible Costs: Approximately 83% of the expected drilling and completion costs are intangible (IDC and
ICC), lacking salvage value.

Tax Treatment: These costs are deductible as ordinary business expenses in the year they are incurred, similar
to other business expenses.

Tax Deductions Per Unit: Based on expected costs of $4,271,552, each $250,000 investment provides
approximately $169,000 in tax deductions for 2024.

Impact on Returns: The tax advantage potentially increases targeted returns, dependent on each investor’s
marginal tax rate.

Disclaimer: Alphascend Capital Group makes no representations or warranties concerning the tax treatment of this investment under any federal, state or local tax law. The LP must seek and rely on the advice of its own tax professionals

Investment Offering

Alphascend Capital Syndication I, LLC

ACG is offering membership interests in Alphascend Capital Syndication I, LLC.
Minimum Investment: $500,000
Accredited Investors Only

MEMBERSHIP INTERESTS

$500,000 investment represents one unit, and each unit represents a 1.23% and 0.79% working
interest with a 0.81% and 0.55% net revenue interest in the Moy East and Post Oak wells, respectively

PROFIT DISTRIBUTION

Before payback: All operating profits, after a $7,500 monthly G&A expense, are distributed to
Members until their initial capital is repaid.

After payback: Profits, after a $7,500 monthly G&A expense, are split 80/20 between Members
and Common Member (an affiliate of ACG).

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Disclaimers

The information contained herein includes forward-looking statements and financial projections within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, that address activities, events or situations that ACG assumes, targets, plans, expects, believes, projects, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements.

The forward-looking statements provided in this presentation are based on ACG management’s present expectations, estimates, targets and projections, but involve risks and uncertainty, including without limitation, the effects of oil and natural gas prices, the geologic conditions and nature of the target formation, the inherent operational complexity of drilling and completing a horizontal well, the increased supply of, and contraction in demand for, oil and natural gas in the United States, uncertainties in the targeted future rates of production, unanticipated recovery or production problems, unanticipated results from wells being drilled or completed, unanticipated changes to local, state or federal regulations, as well as general market conditions, competition and pricing.

Due to the various risks and uncertainties, actual events or results or the actual performance may differ materially from those reflected or contemplated in such forward-looking statements. Past performance does not guarantee future results. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results.

Financial projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material.

Although the information contained herein has been obtained from sources that are reliable to the best of ACG’s knowledge and belief, ACG makes no representation as to the accuracy or completeness of any information contained herein or otherwise provided by ACG. Neither ACG nor any officer or employee of ACG accepts any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents.

The terms “proven,” “probable,” and “possible” are used to describe reserves. These classifications adhere to SEC guidelines but are based on unproven pricing and cost assumptions, which are subject to significant uncertainties. These estimates are used by investment analysts but should be viewed as carrying a high level of uncertainty. Resources are estimates of potentially recoverable oil and gas. Resources are not reserves as defined by the SEC and are subject to materially greater risk of recovery.

The terms “proven,” “probable,” and “possible” are used to describe reserves. These classifications adhere to SEC guidelines but are based on unproven pricing and cost assumptions, which are subject to significant uncertainties. These estimates are used by investment analysts but should be viewed as carrying a high level of uncertainty. Additionally, this presentation may utilize certain non-GAAP financial measures intended to enhance investor understanding of the data. However, these should be considered supplementary and not a substitute for data derived from GAAP accounting principles