Aspect Energy, LLC IPAA April 18, 2005 Donald D. Wolf

2 Aspect Energy Overview  Aspect Energy, LLC – Founded 1993  75 Employees Alex Cranberg – Founder/Chairman Alex Cranberg – Founder/Chairman Don Wolf – President & CEO Don Wolf – President & CEO  Current production: 60 MMCFDE Sold all production to Noble year-end 2001 Sold all production to Noble year-end 2001  Capex budgets $100 MM - $150 MM / Year  Primary Value Driver: Exploratory Drilling

3 Aspect’s Exploration  Focus: Upper Texas Gulf Coast / South Louisiana Complex structure Complex structure Multiple objectives Multiple objectives Direct seismic detection Direct seismic detection Hi flow rates / Henry Hub prices Hi flow rates / Henry Hub prices Land availability Land availability  Corporate Positioning Drilled 400 gross wells in region since 1997 Drilled 400 gross wells in region since 1997 Greater than 60% success rate Greater than 60% success rate Dominant seismic position – 12,000 square miles Dominant seismic position – 12,000 square miles Over 300 prospects in inventory Over 300 prospects in inventory Extensive database Extensive database

4 Texas Louisiana Houston New Orleans Aspect has an Industry-Leading Library of Gulf Coast 3-D Seismic Data Seismic Data Total Proprietary: 2,561 Sq. Mi. Total License: 836 Sq. Mi. Total Spec: 8,208 Sq. Mi. Total Access Only: 26 Sq. Mi. Total-to-Date: 11,631 Sq. Mi.

5 Aspect has Extensive Geophysical and Geological Databases Geologic Data Logs (Depth Registered Raster Images)67,000 Paleo8,000 Scout Tickets50,000+ Side Wall Cores1,441 Satellite Imagery1,350 mi 2 LAS Files900+ Directional Surveys500 Checkshot Surveys250

6 Private Capital for Exploration  People Track record of consistent success Track record of consistent success References – peers, consultants, competitors References – peers, consultants, competitors Depth of organization and history Depth of organization and history Helpful to invest alongside Helpful to invest alongside  Plan: Starter / Big Idea / Demonstrable Strategy Niche ideas Niche ideas Secured opportunity Secured opportunity Resource play Resource play Acquisition Acquisition

7 Private Equity - Exploration Observations  Private Equity for Exploration is Difficult Demonstrate probabilities of success, history of success and prognosis for continuity Demonstrate probabilities of success, history of success and prognosis for continuity Opportunities should be identified and, if possible, secured Opportunities should be identified and, if possible, secured Risk reduction program facilitates funding Risk reduction program facilitates funding Combine with acquisition/exploitation program Combine with acquisition/exploitation program Add resource play Add resource play Promote piece to industry partner Promote piece to industry partner Incentive performance structure Incentive performance structure

8 Private Equity - Exploration Observations, cont’d.  Private Equity is Costly and Time Sensitive Preferred IRR’s most common Preferred IRR’s most common Balance upside vs. holding cost Balance upside vs. holding cost Management’s reversionary interests may be lost or created by prices alone Management’s reversionary interests may be lost or created by prices alone Equity funds have limited lives Equity funds have limited lives Monetization important to sponsors Monetization important to sponsors Trend to monetize sooner at smaller sizes Trend to monetize sooner at smaller sizes Alternate option: Issuance of Common Stock Alternate option: Issuance of Common Stock Generally smaller issues Generally smaller issues Each issue can have unique conditions Each issue can have unique conditions Additional shares at higher prices Additional shares at higher prices More shareholders / different profile More shareholders / different profile Other options Other options Mezzanine debt with ORR or equity kicker Mezzanine debt with ORR or equity kicker J.V. partnership - cash and carried working interests J.V. partnership - cash and carried working interests