Rockies: Predictable Liquids Growth in Premier Basins

Transcription

1 MBOE/d Percent Liquids Rockies: Predictable Liquids Growth in Premier Basins Concentrated Acreage Positions Advantaged by Mineral Ownership ~9 MM Net Acres ~8 MM Mineral Fee Acres Powder River 25,+ Identified Low-Risk Drill Sites Anchored by Liquids-Rich Wattenberg HZ HBP Dry Gas Opportunities Significant Midstream Infrastructure Actively Evaluating New Liquids Plays Utah Moxa Pinedale Wyoming Monell Wamsutter Colorado Salt Creek 4 Net Sales Volumes 32% Liquids 35% Greater Natural Buttes Wattenberg 35 3% 3 22% Liquids 25% APC Acreage APC Land Grant 25 2% 2 15% E 1% 1

2 MBOE/d $/BOE GNB: Predictable, Repeatable Growth 8,+ Lower-Risk Drill Sites Improving Well Recoveries Reducing Well Costs and LOE/BOE $1.5+ per Mcf Uplift from NGL Processing 3 MMcf/d Cryo Facility Start-Up in 3Q12 Blackhawk and Green River Potential ~189, Net Acres Uintah County Vernal 25-Miles APC Acreage Net Sales Volumes LOE/BOE E E 2

3 Greater DJ: Advantaged Position Provides JV Opportunities Large Concentrated Position ~9, Net Acres in Greater DJ 55, Net Acres Outside Core Wattenberg EOG JAKE 2-1 IP: 166 BOE/d Chalk Bluffs-Hereford Mineral Ownership in Weld Perpetuity NOBLE FEIT E day avg: 718 BOE/d Wattenberg North Larimer Extensive Knowledge and Science Seismic and Cores Significant Well Data Upside Potential in Multiple Formations Recent Activity Outside of Core Wattenberg has De-Risked the Play Morgan Boulder Core Wattenberg NOBLE 7 RANCH day avg: 661 BOE/d Adams APC REI 31-5HZ 1,23 BOE/d Jefferson APC DOLPH 27-1HZ 1,51 BOE/d Denver Arapahoe Wattenberg South Douglas RECENT INDUSTRY LEASE PURCHASE 21, Net Acres $6,5 / Acre Elbert APC Land Grant and Leasehold Core Wattenberg Area Potential JV Area NOBLE WELLS RANCH AE day avg: 94 BOE/d Niobrara 3

4 Rockies: Option Value on 15,+ Additional Drill Sites ENHANCED OIL RECOVERY 1Q12 Sales Volume 1. MMBO Liquids Composition 1% 1Q12 EBITDA/Bbl $55 POWDER RIVER CBM 1Q12 Sales Volume 5.2 MMBOE Drill Sites 3, PINEDALE/JONAH 1Q12 Sales Volume 2.1 MMBOE Liquids Composition 16% Drill Sites 8, MOXA 1Q12 Sales Volume 1.6 MMBOE Liquids Composition 28% Drill Sites 2,1 Wyoming Greater Natural Buttes Utah Colorado Wattenberg POWDER RIVER OIL EXPLORATION Prospective Area ~35, Net Acres 4 Target Reservoirs Plan to Drill Wells in 212 WAMSUTTER 1Q12 Sales Volume 2.2 MMBOE Liquids Composition 45% Drill Sites 2,8 APC Acreage APC Land Grant 4

5 Permian Oil: High-Margin Liquids Opportunities 2 to 5+ MMBOE Net Resources 1,+ Avalon Drill Sites 3+ Bone Spring Drill Sites 3-5 MBOE EUR per Well Expanding Avalon Development New Mexico Texas Avalon Core Area 18, Gross Acres Loving High-Margin Bone Spring Development Expanding Midstream and Water-Management Infrastructure Bone Spring Core Area 15, Gross Acres Reeves Ward APC Acreage Farm-in Acreage Gas 15% NGL 15% Oil 7% Gas 4% Oil 15% NGL 45% Bone Spring Sales-Volumes Mix Avalon Sales-Volumes Mix 5

6 Marcellus: Lowest-Cost Gas Play in U.S. Marcellus Shale Play Pennsylvania Increased Average Well Recoveries to 8 Bcf Realizing Significant Operating Efficiencies ~ 76, Gross Acres ~ 26, Net Acres Preserving Future Opportunities 5,+ Identified Drill Sites 1+ BBOE Resource Opportunity 212 Planned Activity New York Pennsylvania Chesapeake Operated Reduce Rig Count Direct Capital to Higher-Return Areas Expand Infrastructure Tioga Bradford Potter Sullivan Lycoming Clinton MMcf/d Net Sales Volumes Centre Anadarko Operated 2 Miles E APC Acreage 212 Activity 6

7 BTAX ROR (%) Robust Economics for U.S. Onshore Plays Wattenberg HZ Eagleford Bone Spring East Texas HZ Wamsutter Avalon $2 $3 $4 $5 $6 Natural Gas Prices ($/Mcf) Assumes $1/Bbl Oil GNB Marcellus 7

8 Utica: Evaluating an Emerging Play Concentrated Acreage Position in Liquids-Rich Window OHIO Liquids-Rich Fairway ~39, Gross Acres ~25, Net Acres Early Entry Evaluation Program in Progress 4 Wells Currently On Line 1 Operated Rig 35 Miles Holmes Tuscarawas Coshocton APC Acreage Flowing Drilling 212 Planned Activity Area Muskingum Guernsey Noble 8

9 Midstream: A Competitive Advantage of Scale Large-Scale Operations 211 Throughput: ~4.4 Bcf/d Aligned with Pace of Upstream Activity Extracting Liquids to Improve Price Realizations Midstream Asset Overview Anadarko WES Gathering Systems Processing & Treating Facilities 8 17 Interstate Gas Pipelines 1 NGL/Crude Oil Pipelines 2 3 Miles of Pipeline 3,8 1,6 Midstream Asset-Level EBITDA* E *Includes WES 9

10 Capturing Liquids Uplift by Expanding Midstream Expanding Cryogenic Processing Capacity by 9 MMcf/d Enhancing Access to Premium Gulf Coast Markets Increasing Fractionation Capacity at Mont Belvieu CHIPETA TRAIN III Capacity 3 MMcf/d In Service 3Q12 Denver LANCASTER Capacity 3 MMcf/d In Service 214 FRONT RANGE Capacity 15 MBbls/d In Service 213 BONE SPRING Capacity 1 MMcf/d In Service 213 Skellytown TEXAS EXPRESS Capacity 28 MBbls/d In Service 213 Processing Plant NGL Equity Pipeline New NGL Capacity BRASADA Capacity 2 MMcf/d In Service 213 Mont Belvieu 1

11 MBOPD El Merk: Achieving First Oil by Year-End 212 Project 9+% Complete Two 65 MBOPD Crude Trains 6 MMcf/d Gas Processing 8 MBWPD Water Handling 65 Miles of Pipelines Algeria Gross Production 5 El Merk 25 HBNS and Ourhoud Jan Jan Jul-11 Jan 212E Jan-12 Jul-12 Jan Jan E E Jul-13 E Jan 214E Jan-14E El Merk Central Processing Facility

12 Mozambique LNG: Notional Design and Capital Expectations Exploration Spending thru YE 212 $.7 Liquefaction Facilities Common Facilities Train 1: 5 MMTPA $8. - $1. Train 2: 5 MMTPA Wells Development Wells $1.5 - $2. Subsea Infrastructure $2.5 - $3. and Pipelines Resources Far Exceed Threshold for LNG Development Two 5 MMTPA Trains in Initial Phase; Each Train ~75 MMcf/d Demonstrated Project Management Skills Proven Development Technology All Values in Billions Not to Scale 12

13 Sierra Leone and Liberia: Working Commerciality 4.5 MM Gross Acres SIERRA LEONE 212 Planned Activity Jupiter Discovery Incorporating Data into Geologic Model Venus (WI 55%) Mercury (WI 55%) LIBERIA Jupiter (WI 55%) 2,4 km2 New 3D Sierra Leone to Liberia Cross Section KEBAWANA IO JUPITER MERCURY STRONTIUM Sierra Leone Liberia MAMBA POINT Atlantic Ocean Seal Rock Reservoir Rock Interval Source Rock 11 Miles Anadarko WI Block APC Discovery Prospect Drilling Industry Discovery Montserrado 5 Miles 13

14 Côte d Ivoire: Proven Petroleum System ~1.3 MM Gross Acres CÔTE D IVOIRE Abidjan Gulf of Guinea CI-13 CI-15 CI-515 Paon (WI 4%) 2 Miles CI-516 Anadarko WI Block Planned Drilling Prospects Proposed 3D Billion-Barrel Resource Potential Multiple Stacked Cretaceous Fans Drilling Paon Prospect Acquired 2 New Blocks 45% WI and Operator of Exploration Phase Plan to Acquire 3D Seismic During

15 Kenya: Extending the Trend TANZANIA KENYA Indian Ocean 15 Miles ~7.5 MM Gross Acres L-7 L-12 L-5 Operator with 45% WI Farm-Out Recovered Historical Costs Plus Drilling Carry 3D Complete Maturing Prospect Inventory Multi-Play Types On Blocks Potential for Oil Commence Drilling Program in 212/213 A A Onlap Anadarko WI Block Prospects Seismic L-11A L-11B A A 25 Miles 4-way Structure Pinchout Pinchout 15

16 South Africa: Big Block, Big Opportunity Saldanha Bay SOUTH AFRICA Cape Town Mossel Bay Port Elizabeth ~24 MM Gross Acres Block 5/6 125 Miles Block 7 Multiple Play Types Identified Operate with 8% Interest 2D Seismic Planned for Late 212 Anadarko WI Block Producing Oil Field Producing Gas Field Pipeline 16

17 China Exploration VIETNAM CHINA ~2 MM Gross Acres LAOS CAMBODIA South China Sea Liuhua 34-2 Discovery Well Tested 5+ MMcf/d Liuhua 29-1 Discovery Tested 57+ MMcf/d 12 Miles LW , Acre 4-Way Structure Amplitude Supported 1 Exploration Well Planned in 212 Additional Prospects in New 3D Area PSCA 29/26 Liwan 3-1 Discovery Est. Reserves 4-6 Tcf PSCA 43/11 APC PSCA 42/5 East China Sea LW 21-1 Anadarko WI Block Natural Gas Field Prospects New 3D Seismic 17

18 New Zealand Exploration ~11 MM Gross Acres Canterbury Basin 5% Operated WI in ~7.5 MM Acres 1 Exploration Well Planned 212/213 Taranaki Basin Taranaki Basin 5% Operated WI in ~4 MM Acres 1 Exploration Well Planned 212/213 GALLEON #1 NEW ZEALAND CARAVEL 16 Miles Source Rock Pre-Rift Basement Pre-Rift Basement Canterbury Basin Anadarko WI Block 18

19 Brazil Progressing ~.7 MM Gross Acres BRAZIL Whale Park Itauna Discovery Linguado Anadarko WI Block Oil Field Prospects Potential Field Outline Successful Well Planned Drilling Industry Discovery Itaipu Discovery Wahoo Discovery Coalho Discovery Itaipu Discovery Itaipu #2 Successful Appraisal Miles BM-C-32 33% WI BM-C-3 3% WI Wahoo Discovery Discoveries Wahoo - Pre-Salt Itaipu - Pre-Salt Itauna - Post-Salt Coalho - Post-Salt Planned Wahoo and Itaipu Appraisal Activity in 212 Plan to Drill 2 Exploration Wells Provolone Requeijão Potential Unitization 19

20 Gross BOE/d Wattenberg HZ: Roadmap to Value Wattenberg HZ Type Well (96% WI, 88% NRI) 35 MBOE EUR 6% Oil, 1% NGLs, 3% Gas $4.5 Million Well Cost Net: $8.3 Million BTAX NPV 1+% ROR ~2, Drill Sites 1, Wattenberg HZ Type Curve Wattenberg HZ Drilling Program* 212: 8 Rigs, 17 Wells 213: 27 Wells 214+: 3+ Wells/Year *Planned Activity Days On Line Based on Unescalated NYMEX Prices of $1/Bbl and $3.25/Mcf 2

21 Gross BOE/d Eagleford: Roadmap to Value in Current Price Environment Eagleford Type Well (49% WI, 36% NRI) 45 MBOE EUR 4% Oil, 25% NGLs, 35% Gas $5.8 Million Well Cost Net: $3 Million BTAX NPV 1+% BTAX ROR 4, Drill Sites Eagleford Drilling Program* 212: 1 Rigs, 25+ Wells 213: 275+ Wells 214+: 3,4+ Wells *Planned Activity Eagleford Type Curve Days On Line Based on Unescalated NYMEX Prices of $1/Bbl and $3.25/Mcf 21

22 Gross BOE/d Gross BOE/d E Texas HZ: Roadmap to Value in Current Price Environment Haynesville Type Well (76% WI, 66% NRI) 1,1 MBOE EUR 7% Oil, 29% NGL, 64% Gas $8 Million Well Cost Net: $6.1 Million BTAX NPV 95% BTAX ROR 35 Drill Sites 1,6 1,2 8 4 Haynesville Type Curve Haynesville Drilling Program* 212: 5 Rigs, ~6 Wells 213: ~6 Wells 214+: ~23 Wells Days On Line *Planned Activity Cotton Valley Type Well (78% WI, 65% NRI) 8 MBOE EUR 5% Oil, 3% NGLs, 65% Gas $5.1 Million Well Cost Net: $2.9 Million BTAX NPV 1,2 1, Cotton Valley Type Curve Cotton Valley Drilling Program* 212: 1 Rig, ~13 Wells 213: ~13 Wells 214+: ~75 Wells *Planned Activity 51% BTAX ROR 2 1 Drill Sites Based on Unescalated NYMEX Prices of $1/Bbl and $3.25/Mcf Days On Line 22 22

23 Gross (BOE/d) Gross (BOE/d) Permian Oil: Roadmap to Value in Current Price Environment Avalon Type Well (5% WI, 38% NRI) 4 MBOE EUR 15% Oil, 45% NGLs, 4% Gas $5 Million Well Cost Net: $1.4 Million BTAX NPV 39% BTAX ROR 1, Drill Sites Bone Spring Type Well (4% WI, 3% NRI) 4 MBOE EUR 7% Oil, 15% NGLs, 15% Gas $6.5 Million Well Cost Net: $2.7 Million BTAX NPV 67% BTAX ROR 3 Drill Sites 1, Based on Unescalated NYMEX Prices of $1/Bbl and $3.25/Mcf , Avalon Type Curve Bone Spring Type Curve Days On Line Days On Line Avalon Drilling Program* 212: 2-4 Rigs, 4+ Wells 213: 8+ Wells 214+: ~9 Wells *Planned Activity Bone Spring Drilling Program* 212: 9 Rigs, 9 Wells 213: ~9 Wells 214+: ~12 Wells *Planned Activity 23

24 Gross Mcf/d GNB: Roadmap to Value in Current Price Environment GNB Type Well (99.6% WI, 81.5% NRI) 33 MBOE EUR 3% Oil, 22% NGLs, 75% Gas $1.4 Million Well Cost Net: $1.4 Million BTAX NPV 54% ROR 1,7+ Drill Sites 2,5 2, 1,5 1, GNB Type Curve GNB Drilling Program* 212: 8 Rigs, 4 Wells 213: 4 Wells 214+: 4 Wells/Year *Planned Activity Days On Line Based on Unescalated NYMEX Prices of $1/Bbl and $3.25/Mcf 24

25 Gross Mcf/d BTAX ROR (%) Marcellus: Roadmap to Value in Current Price Environment Marcellus Type Well (29.8% WI, 25.4% NRI) 8 Bcf EUR 1% Gas $7 Million Well Cost 8, 7, 6, Marcellus Type Curve Marcellus Returns $2 $3 $4 $5 $6 $/Mcf Net: $.8 Million BTAX NPV 24% BTAX ROR 2,2+ Drill Sites 5, 4, 3, Composite of 28 Wells 8 Bcf EUR Marcellus Drilling Program* 212: 13 Rigs, 2+ Wells 213: 17+ Wells 2, 1, 214+: 1,8+ Wells *Planned Activity 6 Bcf EUR 4 Bcf EUR Days On Line Based on Unescalated NYMEX Prices of $1/Bbl and $3.25/Mcf 25