New Exploration Gas Prospect

1. New Exploration Gas Prospect • Simulation Study Investigating: • Well arrangements to recover hydrocarbons • Production profiles and recovery factors • Sensitivity to rock compressibility • Sensitivity to target deliverability rate • Sensitivity to tubing size – 3.5 versus 4.5

2. New Exploration Gas Prospect Top of Structure – Sand A

3. Eugene Island -Thunderbolt Prospect Top of Structure - Sand B

4. New Exploration Gas Prospect Top of Structure - Sand C

5. New Exploration Gas Prospect Sand A - 229 BCF

6. New Exploration Gas Prospect Gas Zone - Sand B, 938 BCF

7. New Exploration Gas Prospect Gas Zone - Sand C, 642 BCF

8. Completion Strategy • Objectives: • Maintain deliverability targets – 300 / 715 mmcf/d cases • Produce all fault blocks efficiently • Complete largest targets first • Only plugback completions • Resulting Completion Strategy: • 11 wells required • 2 wells in Sand A • 6 wells in Sand B • 3 wells in Sand C • 6 wells required at time 0 for 300 mmcf/d case • 2 recompletions – A and E both from 21000 to 20000 ft.

9. Well Completions in Sand A • 715 mmcf/d, 4.5 tbg, Cr =15E-6 Well I - 45 BCF Well K – 105 BCF

10. Well Completions in Sand B • 715 mmcf/d, 4.5 tbg, Cr =15E-6 Well E – 29 BCF, recompletion Well H – 150 BCF Well F – 189 BCF Well J – 174 BCF Well B – 123 BCF Well C – 56 BCF Well D – 34 BCF

11. Well Completions in Sand C • 715 mmcf/d, 4.5 tbg, Cr =15E-6 Well E – 86 BCF Well G – 185BCF Well A – 178 BCF

12. Comparison – low vs. high Crock • 715 mmcf/d, 3.5 tbg, Cr =15E-6 and 5E-6

13. Comparison – 3.5 vs 4.5 tbg • 715 mmcf/d, Cr = 5E-6

14. Conclusions • Recoveries between 45-52 % possible • Low recoveries for high Crock, 3/1 Aquifer • 11 wells for 715 mmcf/d • 6 wells followed by 5 drilled wells for 300 mmcf/d • 4.5 tubing increases gas recovery for 715 mmcf/d • 50 BCF additional reserves vs. 3.5 tubing • Tubing size does not increase ultimate recovery or deliverability significantly for 300 mmcf/d case