CG ENERGY CORPORATION INC. – EXECUTIVE SUMMARY

1. CG ENERGY CORPORATION INC. –EXECUTIVE SUMMARY CG Energy EXECUTIVE SUMMARY • CG Energy Corporation Inc. ("CG Energy", or the "Company"), a Florida Corporation, was recently formed for the purpose of acquiring and developing oil and gas properties, principally in Texas . The Company is seeking a capital commitment of $6 million and is managed by Carl Nichols, who has over 27 years of extensive business, operations, and finance experience that has included natural gas storage and commodities trading. The United States portfolio of producing oil fields has matured over the last 20 years and provides a rich inventory of high water-cut and other marginal fields for review as improved oil recovery candidates. CG Energy will team with various business entities to acquire, develop, and divest these distressed or low-value assets. The company works with industry experts to obtain the latest and most advanced analysis capabilities in the improvement of oil fields and related technologies. • CG Energy has already identified two lease packages for acquisition, the Champion Prospect in the Splendora East Field, Montgomery County, Texas and the Gulf Land Unit Production Package in the Dyersdale North Field, Harris County, Texas. The opportunity for a potential equity investor would be to assist in acquiring the initial two lease packages and to help fund workover and potential development drilling on future acquired leases. • CG Energy will utilize many different sources both public and private to include its vast network of industry contacts to first identify leases for workover potential. Once identified, all relevant information regarding the lease and its drilled well(s) is analyzed to include information from public sources (i.e. Texas Railroad Commission) as well as information obtained from lease operators. Once full and thorough due diligence is completed by CG Energy on a given prospect, the data will then be screened by a third-party reserve engineer/consultant to confirm or deny the economic viability of the lease and workover(s) contained therein. Only after full dull diligence is complete both internally and externally will the lease be purchased and developed. REVITALIZING OLD OIL FIELDS – BUSINESS MODEL Carl Nichols • Carl Nichols – 27 year career in cash commodity businesses to include futures trading in New York. Also worked as an agricultural executive for Union Planters National Bank in Memphis, TN. Owned and participated in the development of Fort Necessity Salt Dome in the Winnsboro, LA oil and gas field. Former U.S. Army officer. • A workover can make great economic sense with oil prices above $50 per Bbl. Workovers when examined on a cost and risk basis can be attractive candidates for further evaluation • As an accredited investor, if you cannot bear the risk of drilling a dry hole, oil and gas investing may not be for you. However, If you are an accredited investor, but would like exposure to the oil and gas markets gradually, consider looking at workover deals in mature oil fields • The advantage to these type of deals is that you already know what the original owner found downhole. Careful analysis of well data can yield potential pay zones that were never exploited. Also, since many older wells were drilled, new technologies such as submersible pumps, the Gas Gun and Radial Jet Enhancement have evolved and can boost production significantly • Drilling a new well is not a cheap proposition. Assuming no issues, it can cost in excess of $750,000 to drill and complete a new well depending on depth. Workovers provide investors a less risky alternative to gain exposure to the oil markets Scott Gallagher FINANCIAL SUMMARY • Scott Gallagher is a commodity Series 3 holder focusing on alternative investments. Experience in investor relations with a major commodity firm. Also part owner of Cordova TN building materials for the past 25 years (family owned business).