New Exploration Gas Prospect Simulation Study Investigating: Well arrangements to recover hydrocarbons Production profiles and recovery factors Sensitivity to rock compressibility Sensitivity to target deliverability rate Sensitivity to tubing size – 3.5 versus 4.5

New Exploration Gas Prospect Top of Structure – Sand A

Eugene Island -Thunderbolt Prospect Top of Structure - Sand B

New Exploration Gas Prospect Top of Structure - Sand C

New Exploration Gas Prospect Sand A - 229 BCF

New Exploration Gas Prospect Gas Zone - Sand B, 938 BCF

New Exploration Gas Prospect Gas Zone - Sand C, 642 BCF

Completion Strategy Objectives: Maintain deliverability targets – 300 / 715 mmcf/d cases Produce all fault blocks efficiently Complete largest targets first Only plugback completions Resulting Completion Strategy: 11 wells required 2 wells in Sand A 6 wells in Sand B 3 wells in Sand C 6 wells required at time 0 for 300 mmcf/d case 2 recompletions – A and E both from 21000 to 20000 ft.

Well Completions in Sand A 715 mmcf/d, 4.5 tbg, Cr =15E-6 Well I - 45 BCF Well K – 105 BCF

Well Completions in Sand B Well E – 29 BCF, recompletion 715 mmcf/d, 4.5 tbg, Cr =15E-6 Well E – 29 BCF, recompletion Well H – 150 BCF Well F – 189 BCF Well J – 174 BCF Well B – 123 BCF Well C – 56 BCF Well D – 34 BCF

Well Completions in Sand C 715 mmcf/d, 4.5 tbg, Cr =15E-6 Well E – 86 BCF Well G – 185BCF Well A – 178 BCF

Comparison – low vs. high Crock 715 mmcf/d, 3.5 tbg, Cr =15E-6 and 5E-6

Comparison – 3.5 vs 4.5 tbg 715 mmcf/d, Cr = 5E-6

Conclusions Recoveries between 45-52 % possible Low recoveries for high Crock, 3/1 Aquifer 11 wells for 715 mmcf/d 6 wells followed by 5 drilled wells for 300 mmcf/d 4.5 tubing increases gas recovery for 715 mmcf/d 50 BCF additional reserves vs. 3.5 tubing Tubing size does not increase ultimate recovery or deliverability significantly for 300 mmcf/d case