Slide 1: Slides to accompany Investor Call, 17 April 2012
Slides to accompany Investor Call 17 April, 2012 Prepared by Arthur E. Berman, Director Labyrinth Consulting Services, Inc.
Slide 2: Disclaimer
Disclaimer (1) These presentation materials (“Presentation Materials”) are for information purposes only and do not constitute an offer or invitation to subscribe for or purchase any securities, and neither the Presentation Materials nor anything contained herein nor the fact of their distribution s
Slide 3: The Upgraded Woodbine play
The Upgraded Woodbine play • Analogous to the nearby Polk County AA Wells field • The AA Wells field has produced circa 20 million barrels of condensate and 415 bcf of natural gas to date • JV believes its acreage may have potential to contain a similar size field • The JV’s Woodbine target is a gas
Slide 4: Geological Background – Tyler County Woodbine
Geological Background – Tyler County Woodbine • JV acreage is geologically analogous to the nearby Polk County AA Wells field (which has produced 20 MMB Condensate and 415 BCF gas) but defined only by 2-D seismic. • Probably deposited in deeper water geological setting than AA Wells with better rese
Slide 5: Modelled Potential Individual Woodbine Well Economics – Gross Unrisked
Modelled Potential Individual Woodbine Well Economics – Gross Unrisked Tyler/Polk County Woodbine/Chalk Project Tyler/Polk County Woodbine/Chalk Project PV10 Analysis PV10 Analysis VERTICAL CASE HORIZONTAL CASE Assumptions Assumptions Gas Price/mmbtu 2012 $ 3.00 Gas Price/mmbtu 2012 $ 3.00 2013 and
Slide 6: Austin Chalk ("AC") Review
Austin Chalk (“AC”) Review • Geology and potential • unchanged(1)(2) • “Purple” Structure: 11,400 acres 28 locations 9 units • “Cyan” Structure: 17,400 acres 24 locations 8 units Note: (1) Red dots represent modelled reserves from Austin Chalk production offsetting JV acreage. (2) Purple
Slide 7: Status Update - KF#1H Well
Status Update - KF#1H Well • KF#1H well has been delayed primarily as a result of macroeconomic factors – deteriorating natural gas prices, prohibitively high drilling costs and a tight rig market. • A shift in portfolio management from natural gas to oil by the majority participant in the JV, KFOC,