Eagle Ford Overview

Eagle Ford Overview

Allen Gilmer, CEO 18 September 2013

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Eagle Ford Coverage

Source: DI Analytics

1,949 Geology Wells (contain well logs that penetrated the Eagle Ford)6,768 Production Wells (Known Eagle Ford Producers)

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Grading Map 20:1 BOE

Source: DI Analytics

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Operator Performance Differential

Source: DI Analytics, Deviation based on Max IP BOE/D 20:1 basis

Freeport

Freeport

Freeport

Freeport

BHP

BHP

BHP

BHP

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Expiring Leases by Grantee

Source: DI Analytics

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Expiring Leases by Date

Source: DI Analytics

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1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q2011 2012 2013

0

5

10

15

20

25

30

35

Eagle Ford Horizontals

MobilizationSpud-to-Relase

Days

Rig Days Per Well

Source: Baker Hughes, contractors

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Operator Well Spacing

Source: DI Analytics

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Well Interference

Production ratio for neighboring wells where first well producing for at least 6 monthsSource: DI Analytics

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Wells Per Grid

Av

g(b

oe

/d)

1 3 5 7 9 11 13 15 17 19 21 23 25 1 3 5 7 9 11 13 15 17 19 21 23 25

1,000

800

600

400

200

0

1,000

800

600

400

200

0

1,000

800

600

400

200

0

1,000

800

600

400

200

0

A B

C D

E F

G H

Color byGrade

ABCDEFGHIJ

Natural Spacing

Source: DI Analytics

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Baseline Eagle Ford Production Forecast

Baseline model assumes current well starts, prices, and EURs remain consistent with present values

Source: DI Analytics

1/1/

2004

3/1/

2005

5/1/

2006

7/1/

2007

9/1/

2008

11/1

/200

9

1/1/

2011

3/1/

2012

5/1/

2013

7/1/

2014

9/1/

2015

11/1

/201

6

1/1/

2018

3/1/

2019

5/1/

2020

7/1/

2021

9/1/

2022

11/1

/202

3

1/1/

2025

3/1/

2026

5/1/

2027

7/1/

2028

9/1/

2029

11/1

/203

0

1/1/

2032

3/1/

2033

5/1/

2034

7/1/

2035

9/1/

2036

11/1

/203

7

1/1/

2039

3/1/

2040

0

200

400

600

800

1000

1200

1400

1600

1800

Pro-jectedActual

Date

Dai

ly P

rod

uct

ion

(M

BO

E/D

ay 2

0:1)

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Baseline Production Forecast

Baseline model assumes 5700’ laterals, 600’ wellbore spacing, and 0.9 Land Use Efficiency Factor

Source: DI Analytics

Grade Sq. Miles % Play % Cum Play Sq. Miles Drilled % Acreage Drilled Wells Remaining

A 216 1 1 30 14% 1,365

B 345 1 3 79 23% 1,951

C 978 5 8 147 15% 6,097

D 1,562 8 17 193 12% 10,044

E 2,268 13 30 283 12% 14,562

F 2,673 15 46 161 6% 18,429

G 2,468 14 60 56 2% 17,698

H 1,982 11 71 12 1% 14,450

I 1,645 9 81 9 1% 12,001

J 3,269 18 100 3 0% 23,964

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Eagle Ford Gas EURs

Source: DI Analytics, wellhead gas

Copyright © 2013, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 14

Eagle Ford Liquids EURs

Source: DI Analytics, liquids include wellhead oil and wellhead condensate

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Grade

Bre

ak

ev

en B

OE

Pri

ce

A B C D E F G

$100

$90

$80

$70

$60

$50

$40

$30

36

3333

29

41

34

38

42

40

42

47

45

70

60

39

44

47

53

59

70

101Color byGrade

ABCDEFG

Shape byType

Best In ClassMedian

Breakeven BOE Price vs. Grade

Breakeven Prices: Average vs. Best In Class Operator

Source: Drillinginfo, DI Analytics, $7.5MM well cost