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BURLINGTON RESOURCES

B. R. BURLINGTON RESOURCES. ATTRIBUTES OF PERSONAL SUCCESS. You’re Selling, Somebody is Buying Entrepreneurial Spirit is Critical Accountability. BURLINGTON RESOURCES. ATTRIBUTES OF BUSINESS SUCCESS. Understand Your Market Differentiate Yourself See the Future

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BURLINGTON RESOURCES

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  1. B R BURLINGTON RESOURCES

  2. ATTRIBUTES OF PERSONAL SUCCESS • You’re Selling, Somebody is Buying • Entrepreneurial Spirit is Critical • Accountability BURLINGTON RESOURCES

  3. ATTRIBUTES OF BUSINESS SUCCESS • Understand Your Market • Differentiate Yourself • See the Future • It’s not Just the Idea......... BURLINGTON RESOURCES

  4. CORPORATE HISTORY Burlington Northern Resources Division Unicon Continuing Western Canadian expansion, BR acquires Canadian Hunter BR & Louisiana Land and Exploration merge Southland Royalty Diamond Shamrock Offshore Milestone Petroleum BURLINGTON RESOURCES BR expands to Western Canada through agreement to purchase Poco Petroleums MERIDIAN OIL El Paso Exploration Union Texas Petroleum 1900 -------- 1978 -------1984 ---- 1985 ---1986 ------ 1990 ------- 1994-------- 1996--------- 1997--------------------------10/97--------------1999------------2001 Burlington Resources Formed in 1988 BURLINGTON RESOURCES

  5. COMPANY SUMMARY Market Capitalization, $B 7.0 Enterprise Value, $B 11.3 2001 Cash Flow, $B 1.9 Reserves, TCFE 11.8 Production, BCFE/D 2.7 Annual Drilling Program (#Wells) 600-800 BURLINGTON RESOURCES

  6. 2002 CAPITAL PROGRAM $1.3 Billion Total BURLINGTON RESOURCES

  7. RESERVES POSITION 11.8 TCFE North American Gas North American Oil International Gas International Oil BURLINGTON RESOURCES

  8. PROVED NORTH AMERICAN GAS RESERVES TCF BURLINGTON RESOURCES

  9. NORTH AMERICA NATURAL GAS POSITION Largest of U.S. Independents RESERVES PRODUCTION (2Q 2001) (TCF) (BCF/D) *Includes recent acq./mergers, reserves are 2000 reported **Year-end 2000 production figure Sources: JS Herold & Annual Reports, as of 12/31/00 BURLINGTON RESOURCES

  10. GLOBAL OPERATIONS CANADA EAST IRISH SEA U.S. CHINA EGYPT ALGERIA PERU ECUADOR GABON Gas Oil ARGENTINA BURLINGTON RESOURCES

  11. CORE AREAS WESTERN CANADA ROCKY MOUNTAINS SAN JUAN BASIN BURLINGTON RESOURCES

  12. COMPETITIVE ADVANTAGES • Program Drilling • Cost Control • Operational Expertise BURLINGTON RESOURCES

  13. CO NM Fruitland Coal Pictured Cliffs Lewis Shale / Chacra 1200’ - 1500’ Mesaverde 800’ 1500’ - 1700’ Mancos / Niobrara Dakota SAN JUAN BASIN BURLINGTON RESOURCES

  14. SAN JUAN BASIN: New Mexico / Colorado • Operated Gas Production, MMCF/D 1,200 • Operated Wells 6,500 • Projects per Year 800 BURLINGTON RESOURCES

  15. GAS PRODUCTION GROWTH San Juan Example 750-800 BURLINGTON RESOURCES

  16. SAN JUAN COST PERFORMANCE Mesaverde Average Well Cost ($ Thousand) 23% cost reduction over 3 years BURLINGTON RESOURCES

  17. SAN JUAN PRODUCTION MANAGEMENT Mesaverde 80-Acre Infill Progam Study Area Pressures Recovery @ 160-acre Spacing 44% Resource 49% Incremental Recovery @ 80-Acre Spacing 7% 1950s 1998 Abandonment Estimated Gas-in-Place: 28.5 TCF BURLINGTON RESOURCES

  18. MADDEN FACILITY: Fremont Co., WY BURLINGTON RESOURCES

  19. WIND RIVER BASIN: Madden Field Management Challenges • Drilling Depths and Costs • Pipeline and Processing Infrastructure • Geophysical Interpretation • Reservoir Management BURLINGTON RESOURCES

  20. MADDEN FIELD: Lower Ft. Union Drilling Costs • Reduced Drill Time - 23 Days • Gross Cost Savings - $600M/Well Depth (Feet) Pre-1998 Current Days BURLINGTON RESOURCES

  21. Proved Reserves Probable Reserves MADDEN FIELD: Wind River Basin, WY BH 6-27 TD ~ 25,855 ft. 4-36 7-34 1-5 5-6 2-3 LOST CABIN GAS PLANT N BH 8-35 Drilling BURLINGTON RESOURCES

  22. MADDEN FIELD: Madison Drilling Costs Completed & Tied-in Cost ($MM) Bighorn Madison #4-36 #5-6 40.3 30.7 4-36 Actual Depth (Feet) 5-6 Actual Days BURLINGTON RESOURCES

  23. TOTAL MADDEN PRODUCTION (MMCF/D) BURLINGTON RESOURCES

  24. WHY CANADA? • Competitive Advantages • Large Natural Gas Resource • Changing North American Supply/Demand Picture BURLINGTON RESOURCES

  25. HENRY HUB : Gas Prices 1999 NPC Projections Price (Nominal $/mmbtu) BURLINGTON RESOURCES

  26. HENRY HUB : Gas Prices 1999 NPC Projections Price (Nominal $/mmbtu) BURLINGTON RESOURCES

  27. CANADIAN STRATEGY ALBERTA SHALLOW GAS & HEAVY OIL DEEP GAS Edmonton SASKATCHEWAN BRITISH COLUMBIA Calgary SHALLOW GAS & CONVENTIONAL OIL SHALLOW GAS BURLINGTON RESOURCES

  28. ACQUISITION OF POCO PETROLEUM ALBERTA Poco Petroleum SASKATCHEWAN BRITISH COLUMBIA BURLINGTON RESOURCES

  29. CANADA: Gas Production 20% Avg. 473 Avg. 397 MMCF/D *4th Quarter 2001 does not include the acquisition of Canadian Hunter BURLINGTON RESOURCES

  30. ACQUISITION OF CANADIAN HUNTER ALBERTA Poco Petroleum Canadian Hunter SASKATCHEWAN BRITISH COLUMBIA BURLINGTON RESOURCES

  31. CANADIAN HUNTER: Deep Basin Land BURLINGTON RESOURCES

  32. DEEP BASIN OVERVIEW San Juan Basin Gas Fairway BURLINGTON RESOURCES

  33. CANADIAN HUNTER GAS PRODUCTION +14% / YR MMCF/D BURLINGTON RESOURCES

  34. CURRENT CANADIAN LAND POSITION ALBERTA Poco Petroleum Canadian Hunter Chevron JV Lands ATCO Viking Kinsella SASKATCHEWAN BRITISH COLUMBIA BURLINGTON RESOURCES

  35. JUNGGAR Beijing TUHA TARIM ORDOS QAIDAM Shanghai Chengdu SICHUAN 500 miles Hong Kong CHINA: Sichuan Basin QIULIN XiangXi Prospect • Significant Resource Basin • BR Core Competency:Tight Gas • Gas Market Potential CHUANZHONG BLOCK 1.8 MILLION ACRES BURLINGTON RESOURCES

  36. SUMMARY • One of Largest U.S. Independents • Proven Gas Development Expertise • Focused on Efficiency • Committed to North American Natural Gas BURLINGTON RESOURCES

  37. B R BURLINGTON RESOURCES

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