Eagle Ford Overview
Allen Gilmer, CEO 18 September 2013
Copyright © 2013, Drillinginfo, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 2
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)
Copyright © 2013, Drillinginfo, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 3
Grading Map 20:1 BOE
Source: DI Analytics
Copyright © 2013, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 4
Operator Performance Differential
Source: DI Analytics, Deviation based on Max IP BOE/D 20:1 basis
Freeport
Freeport
Freeport
Freeport
BHP
BHP
BHP
BHP
Copyright © 2013, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 5
Expiring Leases by Grantee
Source: DI Analytics
Copyright © 2013, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 6
Expiring Leases by Date
Source: DI Analytics
Copyright © 2013, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 7
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
Copyright © 2013, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 8
Operator Well Spacing
Source: DI Analytics
Copyright © 2013, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 9
Well Interference
Production ratio for neighboring wells where first well producing for at least 6 monthsSource: DI Analytics
Copyright © 2013, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 10
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
Copyright © 2013, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 11
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)
Copyright © 2013, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 12
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
Copyright © 2013, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 13
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
Copyright © 2013, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 15
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