Coral Energy / Shell Trading Producer Services Wyoming Pipeline Authority October 28, 2003

2 Overview  Coral Energy / Shell Trading is Royal Dutch Shell’s (“RD Shell”) North American natural gas and power marketing affiliate (RD Shell 90.8%)  Coral is contractually obligated to purchase RD Shell’s 2.4 Bcfd of North American natural gas production  Coral is headquartered in Houston with offices in San Diego and Calgary  Shell Trading markets 9.5 Bcfd of natural gas and 15 GWs of power  Coral is rated A- by S&P and A1 by Moody’s

3  Coral’s core competencies are in the aggregation, marketing and price risk management of natural gas  We have developed the infra-structure, expertise and experience in operations and marketing to meet our contractual obligations to RD Shell  We leverage those resources and capabilities to provide a cost-effective market alternative to E&P companies  Including a comprehensive suite of services allowing Producers to focus their resources on E&P activities Overview

4 Background  RD Shell sought to reduce its cost structure and credit risk, maintain high production capacity factors and focus more resources on E&P activities  Through Coral, RD Shell out-sourced its North American natural gas marketing functions:  Coral is contractually obligated to purchase all of RD Shell’s North American gas production at competitive prices  RD Shell realizes substantial cost reductions improving profitability  Credit risk is effectively transferred to and managed by Coral  High production capacity factors are maintained  More resources are available for E&P activities

5 Discussion  Significant infra-structure and resources are required to effectively market natural gas  These marketing efforts require substantial resources that could otherwise be available for E&P activities  We believe the primary goals of a Producer’s marketing efforts are to:  Sell every MMBtu produced  Receive a competitive price  Get paid  As well, the high capacity factor required in producing fields is not well matched to the load profiles of markets

6 Discussion  Without significant investment in storage and transport assets, Producer’s are limited in their ability to shape production to meet market load profiles  Further, Producer’s have substantial credit risk through their marketing efforts or require substantial back-office support to mitigate those risks  As such, and in our opinion, few Producers have sufficient scale and scope to support an effective marketing effort  For these reasons, aggregating production to a financially strong counter party:  Leverages core competencies  Reduces costs  Mitigates credit risk exposure  Increases profitability

7  Why Coral Energy / Shell Trading?  Scale & Scope: Coral markets 9.5 Bcfd in North America  Geographic reach  Infra-structure, experience & capability  Marketing, Asset Management and Price Risk Management are core competencies  Comprehensive Service Offering  Strong balance sheet and credit rating Producer Services

8  Shell Trading Offers Marketing Services that:  Are comprehensive and flexible  Are cost-effective  Focus on maintaining or increasing production capacity factors  Eliminate credit and non-payment exposure  Lever core competencies  Involve transparent, competitive prices  Facilitate price risk management  Reduce costs, enhancing profitability  Support an increased focus on E&P activity Producer Services

9 Contacts  Contacts  Laird Dyer ( )  Bill Lyons ( )  Erin Kenney ( )