1 Presentation to the Louisiana Tax Commission 2011 Rules and Regulations Chapter 11 – Drilling Rigs by Louisiana Oil and Gas Association and Louisiana Mid-Continent Oil and Gas Association June 22, 2010 Information included in this presentation is the same as submitted in writing June 4, 2010 to the Louisiana Tax Commission. This presentation is prepared only to facilitate the verbal presentation on June 22, 2010 as indicated in the LTC Docket Number RR-2011, Notice of Hearing.

2 Table 1103.A Land Rigs

3 Downturn in Rig prices started the 4Q of Q 2010 that downturn was still in motion with forecasting of stabilization While the markets are looking favorably the over abundance of rigs have flooded the market. It is also noted that the excess rigs and equipment will be a problem for two or three years. 2Q Outlook reflects downsizing of drilling and service contractors creating mid-large sized companies and fewer small fleet owners.

4 Thank you!