19 July 2016 News Release

On July 15, 2016 Gateway Resources U.S.A., Inc. and Sanchez Production Partners LP closed the purchase of the non-Osage county assets with an effective date of August 1, 2016.  Gateway will endeavor to retain as many of the CEP employees as possible.  Sanchez has been very accommodative in extending services of the Houston office and Oklahoma office to enable a smooth transition.  In the next few months all services currently provided for these assets by the Houston or Skiatook office will be migrated to our Bartlesville head office.  Our objective is to integrate the non-Osage assets into our existing operations as soon as possible.  We will endeavor to rationalize these properties, given the current price environment, to become profitable and more productive.  The non-Osage properties are an aging asset and will require investment in well workovers, re-completions and drilling of new wells to stem the production decline and raise profitability. The work will be worth the effort as we know under the 170,000 acres of land lie significant reserves of oil and gas left to be brought to the surface and  sold to the markets.  We also plan to expand the company as additional acquisition opportunities become available.

15 June 2016 News Release:

Gateway Resources U.S.A., Inc. and Sanchez Production Partners LP have entered into a Purchase and Sale Agreement which will enable Gateway to acquire the non-Osage assets of CEP-Mid Continent in the Kansas counties of Labette and Montgomery, and in the Oklahoma counties of Tulsa, Washington, Nowata, Rogers, and Craig. This purchase will add 60 BOPD and 4.7 MMCFPD of production to the existing assets of Gateway in Washington Co., OK and Montgomery Co., KS. .

We look forward to working with the many people who have helped develop these assets and we recognize that this transaction will affect many land owners, royalty owners, operational partners and employees, contractors, county and state governments. We hope to improve upon these assets and assist in the continued benefit that these assets bring to all those who have interests in them for years to come.

The headquarters of Gateway Resources U.S.A. is located in Bartlesville, Oklahoma and is centrally located to these assets. We will be reaching out to all those individuals and companies that have interests in these assets and hope to get better acquainted soon.