Strategy

Our value proposition is to provide Oil and Gas projects to accredited investors at the same costs the company incurs and to allow investors to be on the same level “playing field” as us. Typically, within the industry this is only done with other oil and gas companies, but we feel that this allows Prodigy and the investor to be better aligned in strategy, cost, reward and risk. Prodigy has 4 core value statements; all of them are focused on the investor.

• The Investor is considered first as an “inside” partner
• All project economics are an “open book” policy
• We don’t pursue making money just by raising money
• Focus on the investor by sacrificing what normally would be considered profit

Differentiation

The key differentiation of Prodigy is its Synergistic relationships. We have two separate companies, which have different functions, yet operate as one unit focused on the same goal.

Prodigy Oil and Gas - Engaged in the Exploration, Generation and Production of Petroleum Reserves in the United States, mainly in On-shore, Domestic, US Gulf Coast properties. Founded in 2001, Prodigy has worked with both industry leaders and private investors to secure hydrocarbon production for Prodigy and its investor base.

Rock Solid Operating - An Oil and Gas Operator registered with the Texas Railroad Commission which owns and operates all the projects which Prodigy generates.

Prodigy and Rock Solid are aligned, focused and unified in purpose and vision. Most other oil and gas companies either “partner” with other firms to accomplish their mission or outsource the tasks completely. We feel that this is a disadvantage to the client in the following ways;

Alignment and Vision - The majority of firms who outsource or partner are not aligned in vision and mission, that is to say that they may offer many different products versus Prodigy who has one product line. Having one product helps our representatives to be better at product knowledge, education and customer service to our investors.

Also very important is the alignment of the operations company and the investment company. The drilling, operations and production of a field, or well, must be in-line with what is told to an investor, if the two are not aligned then there is a risk of misinformation to the selling broker dealer, this leads to the expectations of delivery not being met.

Our alignment is focused and unified, meaning we have one mission: to deliver the projects we say we are going to do, in the time we say we are going to do them, and the best way we can insure that this happens is to own the process by which generation and operations occur so that the best interest of both Prodigy and the investor are equally served.

The Cost of Partnering - If a firm partners with another firm in the O&G firm there is always another mark-up that is taken as one hand passes the project to another, as is the case with between operations and the generating oil company. One of our core beliefs is that our investors are “on the inside” with us. We can only do this by 1st creating or “generating” the project and then operating it. We are accountable for all sides of the transaction of Oil and Gas production and operations.

Communication - With different entities that are “partially” aligned the odds of not getting the right information at the right time is very high. Not only are we aligned as two companies, but we are also geographically located in the same vicinity. We communicate amongst ourselves on a daily basis on projects and operations.

In summary, we own the companies and as owners we run and have control of all of the functions related to the Production of Oil and Gas and the generation of such assets to our trusted network of Broker Dealers.

What Is in it for the investor?

The vast majority of oil and gas companies who offer investments to “outside” (those not in the oil and gas industry) investors do so on a promoted basis, that is to say that they make a profit on the creation and generation and sale of the product.

An analogy would be the same as a mutual fund company who creates a fund and then sells it to investors and makes a large profit on the creation of the fund, sale of the fund and on the return of the fund. It is reasonable that the fund company recoup the costs of fund management and administration, but it is unreasonable that the fund company make a majority of their profit off of selling the fund to its investors.

Unfortunately, this happens more times than not in the Oil and Gas industry, why? There are many reasons; here is a partial list of them:

• Investors are uneducated as to the costs related to the generation of an Oil and Gas project.
• There is no overarching governing standard which any oil and gas has to follow regarding true cost analysis of their projects
• Most outside investors do not have or get a 3rd party opinion who is from the industry to validate and analyze costs of a project for them
• The price of Oil and Natural gas is so high that the ROI’s that are advertised to investors is also high. This lulls the unsuspecting investor in “glossing” over any cost models that the oil company may have buried in the PPM

Even if costs are disclosed they are hidden in the bowels of an AFE or in other areas such as land and legal costs etc., where only the savvy insiders know where to look.

This is not the way it should be. For Prodigy investors, they get complete transparency and insight on all costs, from Land and Lease, the Sciences and Drilling/Operations. The Prodigy investor is an equal partner in the investment. The Prodigy investor gets to participate in the oil and gas project at the same price at Prodigy does.

Lastly, the unified vision of the two companies, Prodigy and Rock Solid, insure that projects are kept on schedule. There is a growing trend of Oil and Gas companies to be late in drilling wells they say they are going to drill. One of the causes of this is misalignment of mission. This is caused by the tug and pull of competing priorities of separate entities which have multiple missions.

This is simply not the case at Prodigy - One mission, two companies, and one goal.

Sale of Offerings

Since Prodigy Oil and Gas is an exploration and development company and not an investment company. It does not distribute its offerings itself. It relies on a network of FINRA broker dealers to sell its Private Placements for them. The advantages of this model are as follows:

Trusted Relationships - Broker Dealers and their representatives typically have a trusted relationship with their client, this relationship is based on knowing the clients propensity for risk and reward.

FINRA Licensed - selling through licensed Broker Dealers insures that all steps related to selling in a compliant fashion are adhered to, from the validation of accreditation to the proper handling of funds and the communications to prospective investors, a FINRA Broker Dealer must sell based on the guidelines set forth by the FINRA.

Concentration on Core Competency - Simply put, by using a trusted source to distribute our products, Prodigy can focus on doing what we do best, Oil and Gas generation and exploration.