ASSETSASSETS

PEOPLEPEOPLE

REPUTATIONREPUTATION

VISIONVISION

1

IPAA OIL & GAS INVESTMENT SYMPOSIUM 

London – July 7, 2005

STEVE SHAPIROExecutive Vice President

Finance & Corporate Development

2

This presentation contains projections and other forward-looking statements

within the meaning of Section 27A of the U.S. Securities Act of 1933 and

Section 21E of the U.S. Securities Exchange Act of 1934. These

projections and statements reflect the company’s current views with respect

to future events and financial performance. No assurances can be given,

however, that these events will occur or that these projections will be

achieved, and actual results could differ materially from those projected as a

result of certain factors. A discussion of these factors is included in the

company’s periodic reports filed with the U.S. Securities and Exchange

Commission.

Forward-Looking Statement

3

GAAP to Non-GAAP Terms

For an explanation of reconciliations of GAAP to non-GAAP measures please refer to the Investor Relations section of our Web site.

For additional information regarding non-SEC terms used in this presentation please refer tothe Cautionary Note on our Web site.

www.br-inc.com

4

Sustaining Our Success

• Basin Excellence model is succeeding

• Enviable core asset position

• Several catalysts offer exciting step-function growth

– Bossier exploration success

• High-quality drilling inventory of 7 TCFE

• Focus on differential cost structure is paying off

• Tremendous free cash flow generating potential

5

74%26%

PDP PUD

PDP/PUDWorldwide: 12.0 TCFE

Drilling InventoryWorldwide: 7.0 TCFE

BR’s Worldwide Asset Position: 12/31/04

ReservesWorldwide: 12.0 TCFE

MID-CONTINENTSAN

JUANBASIN

WESTERNCANADA

NORTH AMERICA INTERNATIONAL

LATINAMERICA

AFRICA

NW EUROPE

CHINA

6

Company Inventory

• Opportunity sources

– exploitation

– exploration

– acquisition (asset & land)

• Inventory quality

– location-specific

– risk-adjusted

– economic at $5/$30

– land-controlled

7.0 TCFE Total Inventory

Net Project Count

Net BCFE / Project

Net Capital

/ Project

8,900 0.8 $0.9MM

7

On Track to Meet Production Goal

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2003 2004 2005E 2006E

MM

CF

ED

North America International Guidance

3% - 8% growth

8

San Juan Basin

• Sustained flat production for modest capital investment

• Gradual ramp-up in activity

• Maintain cost advantageM

MC

FE

D

Sustained ProductionSAN JUANBASIN

9

Canadian Resource Focus

• Created resource assessment teams

• Completed 3 extensive studies in 2004

• 4 - 6 studies under way in 2005

0

50

100

150

200

250

300

350

2003 2004 2005E 2006E

MM

CF

ED

Sustained Production

215

160

143128

0

50

100

150

200

250

2003 2004 2005 2006

Ne

t W

ells

New Drill Activity

WESTERNCANADA

DeepBasin

10

East Irish Sea

• Drill Millom and Dalton extensions

• Additional Rivers development

• Exploration: Kelly and Asland prospects

• Rivers plant stabilization

KellyProspect

Millom & Dalton Extensions

Asland

Rivers Expansion

NW EUROPE

11

Andean Mountain Front

• 5.5MM net exploration acres

• Significant growth opportunities

• Ecuador, Peru and Colombia

• 2005 development: (8 - 12 wells)

• 2005 exploration:

– Jumandi well:Ecuador Block 7

– Condor well:Ecuador Block 7

– Buena Vista well:Peru Block 39

• 2005+ exploration:

– Colombia Orquidea

– Peru Blocks 57, 90 and 104

Ecuador

Colombia

Peru

12

Algeria

• MLN expansion– double gas injection

capacity

– 10-well drilling campaign beginning in 2005

• MLSE/EMK development– joint development of

reserves in Blocks 208 and 405a

– 46-well drilling campaign (plus facilities)

ALGERIA

13

Bakken Position

WILLISTONWILLISTONBASINBASIN

South Dakota

MontanaCanada

CedarHillsField

ELOB

North Dakota

Cedar CreekAnticline

BakkenTrend

2005 Wells

BR Minerals

• Unconventional exploration in North America

Bakken

• Acreage position– legacy: ~50,000

– 2004: ~63,000

– 2005: ~67,000

• Reserves: 300 - 500 MBO/well

• Initial production/well:500 - 1000 BOPD

• Well cost: ~$2.5MM

MID-CONTINENT

14

Cedar Creek Outperformance

• Continuing to push lateral lengths

• 160-acre infill program exceeding expectations

• Bench-testing EOR optionsMID-CONTINENT

CedarCreek

15

Bossier Activity

0

10

20

30

40

50

60

70

80

90

100

Ne

t M

MC

FE

D

2004 2005

• 5 rigs in 2005

• Expect to drill ~20 wells

• Current capital plans: ~$120MM

5th Rig

16” pipeline

3rd Rig Plant4th Rig

Actual productionProjected production

16

3.1%

9.8%

7.5%7.8%

0%

2%

4%

6%

8%

10%

12%

BR BR Peers Super E&Ps Large/SuperE&Ps

0.690.62

0.810.780.90

1.06 1.08

0.79

0.00

0.20

0.40

0.60

0.80

1.00

1.20

BR BR Peers Super E&Ps Large/SuperE&Ps

2000 2004

Operating Costs/G&A Expense

Note: BR Peers include APA, APC, DVN, ECA, EOG, UCL. Super E&Ps include BR Peers, CNQ, KMG, NXY, OXY, PXD, TLM. Large E&Ps include Above plus CHK, COG, FST, NBL, NFX, POG, PPP, PXP, VPI, XTO.

$/MCFE 4-yr CAGR, %

17

7.3%

11.2%

0%

2%

4%

6%

8%

10%

12%

BR BR Peers

0.961.09

1.27

1.67

0.00

0.50

1.00

1.50

2.00

BR BR Peers

2000 2004

Reserve Replacement Costs

Note: RRC numerator = total cash costs incurred for exploration, development and acquisition activities RRC denominator = total reserve adds from extensions/discoveries, revisions, improved recovery and acquisitions. Peer group includes APA, APC, DVN, ECA, EOG, UCL.

$/MCFE 4-yr CAGR, %

18

Seeing Returns: How Much Money?

0.0

2.0

4.0

6.0

8.0

10.0

12.0

NYMEX - $/MMBTU@ $5.00/$30.00

Cash Provided byOperating Activities

CapitalSpendingEstimate

EstimatedDividends

$ B

illio

ns $1.4B

NYMEX - $/MMBTU@ $6.00/$36.00

NYMEX - $/MMBTU@ $7.00/$42.00

$3.4B$5.0B

Expected Cash Flow: 2005 - 2007

19

Investment Choices

• Coveted asset list

• Ready balance sheet

• Willing to do the right deal

• Basin Excellence can add value

• Expect to be patient

• Effective interim use of cash

• Provides discipline on decisions

• Still a value play on BR’s reserves

• Periodic review of ordinary dividend

• Willing to consider special dividend

M&ADividend Programs

Goal to achieve growth/share + dividends > 10% per year

20

Dividend Programs: Boring, but Beautiful

• Consistent with BR business model and shareholder expectations

• Bias for steady, cost-average approach

• Periodic review of ordinary and special dividend options

% Change, 2000 - 2004

Note: BR Peers include APA, APC, DVN, ECA, EOG, UCL. Other Super E&Ps include CNQ, KMG, NXY, OXY, PXD, TLM Large E&Ps include above plus CHK, COG, FST, NBL, NFX, POG, PPP, PXP, VPI, XTO.

Sha

re C

ount

21

Adding It All Up

• Business model generates differential free cash flow

• Maintain bias for North American focus

• Pursuing selective international opportunities

• Expect industry consolidation to accelerate

• Will carefully weigh and time investment choices

ASSETSASSETS

PEOPLEPEOPLE

REPUTATIONREPUTATION

VISIONVISION

22

IPAA OIL & GAS INVESTMENT SYMPOSIUM 

London – July 7, 2005

STEVE SHAPIROExecutive Vice President

Finance & Corporate Development