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  Economics : Rates of Return/ IRR

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Portfolio of Outstanding Returns Significant PV10 uplift for STACK/SCOOP well relative to Cleveland well Single well IRRs of 75100% at current strip and PV10 of 611 million Outstanding Returns at Current Strip 12 100% 10 80% PV10 (mm) 8 60% IRR 6 40% 4 2 20% 0 0% Cleveland well 5,000' lateral 10,000' lateral STACK/SCOOP oil well STACK/SCOOP oil well PV10 IRR Note: PV10 based on internal type curve and D&C cost estimates on strip pricing as of 9/15/16. Welllevel IRRs based solely on D&C cost investment; does not include land, G&A, and other costs. 18
Jones Energy Inc.
December 2016

Comparative Ranking Among Top US Plays Resource Play Benchmarking at US50/bbl WTI & US3.25/mcf NYMEX (half-cycle) 70% Black Swan well results improved over last two years 60% based on operational enhancements & geotechnical work 50% After Tax IRR (%) 40% IRR at Canadian corporate tax rate 30% IRR at comparative US corporate tax rate 20% 10% 0% Utica Condensate TFS Tier 1 Delaware Avalon Delaware Wolfcamp (South) Marcellus Dry Tier 1 Marcellus Dry Tier 2 TFS Tier 2 Haynesville Tier 2 Bakken Tier 1 Midland Lower Spraberry Bakken Tier 2 Eagle Ford Condensate Tier 1 Niobrara Tier 1 Haynesville Tier 1 STACK (Meramec Oil) Niobrara Tier 2 Eagle Ford Condensate Tier 2 Fayetteville Barnett Black Swan Montney (9.0 Bcf) Eagle Ford Oil Tier 1 Black Swan Montney (7.5 Bcf) Piceance Midland Wolfcamp Tier 1 Eagle Ford Oil Tier 2 Delaware Bone Spring Delaware Wolfcamp (North) Eagle Ford Wet Gas New Mexico Shelf Midland Wolfcamp Tier 2 San Juan Oil Utica Dry Pinedale Utica Wet Tier 2 Cleveland Core Utica Wet Tier 1 Cana Tier 1 Marcellus Wet Cana Tier 2 Granite Wash Source: Tudor Pickering Holt & Co. and Black Swan Energy 1. Half-cycle economics for US plays assumes 40% NGL realization, 35% corporate tax burden and 20% royalty 2. Black Swan economics reflect US3.25 NYMEX pricing which assumes C3.00/GJ AECO, US1.30/C and US0.80/MMBtu differential 3. For comparative purposes Black Swan economics shown reflect a 35% corporate tax rate (dark red) and 26% corporate tax rate based on Canadian corporate tax rates, however with over C800 MM of tax pools at YE 2015 the company does not expect to be taxable over the foreseeable future, liquids are modelled relative to WTI: C5+: 102%, C4: 50%, C3: 35%, average royalty rate over the life of the well is 12% at illustrated price levels 29
Black Swan Energy Ltd.
November 2016

Granite Wash Extended Length Laterals (7,500) Buffalo Wallow Prospect 900 7,000 contiguous net acres 800 Operated and 90% HBP Average WI 95% 700 190 240 potential XL locations (11 Granite Wash lenses) Cumulative Production(MMCFE) 600 Plan to resume drilling activity 500 in Q4 2016 or Q1 2017 Dixon 5554 XL 1H (C1) 400 Projected Type Curve (C1 Lense) 300 Projected Case (C1) 1822 locations 200 7.9 Bcfe Gross EUR 7.9 Bcfe Well cost 5.7 MM 100 ROR1: 33% ROR1,2: 55% 0 0 10 20 30 40 50 60 70 80 90 100 110 Dixon 5554 XL 1H (C1) is 1st Days 7,500 lateral in Buffalo Wallow 1Q3 2016 Strip Price Deck with 1stProduction Starting 8/2/2016; See Q3 2016 Economic Prices in Appendix (also available at www.unitcorp.com/investor/reports/html). 2ROR calculation includes midstream margin. NYSE: UNT 9
Unit Corp.
August 2016
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