Role of Service Companies in Supporting Appraisal/Development Activity IPAA April 19 th New York Michael Raleigh

2MPR Field Development Solution Projects A collaborative effort between Operator and Service Parties Leverages the knowledge and experience of the Operator with the specific technologies and intellectual resources of Service Parties Goal: Increase the value and/or accelerate the cash flow for Operator’s oil and gas properties Commitment: Risk intellectual resources (field studies) and a percentage of oilfield products and services as proof of commitment to outcome Reward: Re-payment based only upon production (value added) proportional to success and amount of risk taken

3MPR Oil Basin Gas Basin Mixture Williston Basin Michigan Basin Green River Basin Washakie Basin Uinta Basin San Joaquin Basin Santa Barbara-Ventura Basin Tatum Basin Permian Basin Delaware Basin Piceance Basin 2. Denver (Julesberg) Basin 3. Hugoton Embayment 4. Anadarko Basin 5. East Texas Salt Basin 6. Austin Chalk 7. South Texas Salt Basin 8. North Louisiana Salt Basin 9. South Louisiana Salt Basin 10. Illinios Basin 11. Lima-Indiana District 12. Colville Basin Appalachian Basin Arkoma Basin Black Warrior Basin San Juan Basin ,000 active wells Major US Oil & Gas Basins

4MPR Field Development Solution Portfolio Ranking Operator’s Relative Value of property Outsource - Divestiture Trades Screening Production Limit Selection Tech Application Collaboration Opportunity Priority for Company Capital Relationship

5MPR Service Company Role Resource Exploitation Solutions –Leveraging specific region/play knowledge and differentiating technology –Design, Implementation, Evaluation (learning curve optimization) Commercial Alignment –Participate in aligned common goal (ie reduced $/Mscf) –Structure demands higher accountability/risk by service providers –Commensurate share of value Enabling Independents –Portfolio rationalization priority mix of underdeveloped assets –Prove the value of the asset (appraisal) –Accelerate cash flow (development) –Support Enterprise Growth/Value (reserves)

6MPR Collaborative Project Governance Client Asset Owner Field Ops Coordinator Bridging Document Project Coordinator Completion Services Ancillary Services Work Over Services Logistics Supervision Policies and Procedures Preparation of Dev Plan Prospect Generation Drilling/Completions Procedures Assist in AFE Preparation Accounting Production Monitoring Approval Reporting Drilling Services Equipment Tangibles

7MPR One Multi-Party Agreement –Full disclosure Relationships between parties aligned under one specific project agreement –3 rd Party Capital An enabling and independent contribution –Oilfield Service Specific technology/process tailored to play/basin exploitation Asset Owner Oilfield Services Third Party Capital Field Project Agreement Administered by Executive Committee

8MPR Non-Equity Financing Commercial Model Project Cumulative Cash Flow Client Share 3 rd Party Capital Share Oilfield Contractor Share Cumulative Cash Flow Payout - + AF E X %

9MPR Historical OFS /Operator Projects Project Size Gulf Coast7 Tight gas sand exploitation Appalachia5 Carbonate gas production Central South25 Channel type gas play Appalachia4 Shallow tight gas play Gulf Coast3 Tight gas sand & oil Rockies5 Tight gas sand exploitation