1. Making the Most from UKCS Exploration Simon Toole Director – Licensing, Exploration & Development Prospex Fair 11/12 Dec 2007

2. UKCS Undiscovered Resource Potential Fallow Process Success Promote Licence Statistics Licensing and 25 th Round West of Shetland Task Force BERR 2007 Promote CD DEAL Data Release

3. Creaming Curve Analysis Least Mature

5. Level for BERR estimate Potential Undiscovered UKCS Resources Approx 9.4 bn boe - 3.4 WOS/S - 0.8 NNS - 4.5 CNS - 0.7 SNS

6. WOS SNS & EIS 0.3 3.4 Incl leads > 20% COS Incl leads > 5% COS CNS NNS 0.2 0.7 0.8 0.2 1.2 4.5 Basin Creaming Curves vs Lead Database (bn boe)

7. ? UKCS Creaming Curve vs Lead Database 2 bn 9 bn Incl leads > 20% COS Incl leads > 5% COS (bn boe)

11. Status of 148 released blocks still under evaluation Activity is on the way – 43 subareas BR w ells committed FDP in preparation BR plan in progress Relinquishment on the way – 52 subareas Relinquishments are being processed, BR Drop decision made Currently under discussion – 53 subareas Previously drilled but now fallow again or proposing rescue work plan or making rescue Drill or Drop decision

14. Status of other 155 Fallow Discoveries (current, but some decisions to end 2007 still changing) Discovery too small – 19 (now just part of fallow block) Class A – 72 ( Pre-development feasibility studies, Well or new seismic AFE'd Significant studies, Infrastructure full or none available) Class B – 52 Under discussion (mixture of newly identified and released on website) Fallow class BR - 12 Rescued with firm plan for activity

18. Traditional Vs Promote Licences - Observations from 21, 22 & 23 rd Rounds Overall similar # licences drilled (21 Prom, 24 Trad). Anticipated drill rate (full cycle 21 st Round) – Trad 13/35 (37%), Prom 16/54 (30%). As expected, # of Promote wells build later in licence (farm out required, need to shoot seismic). Associated rig & new seismic time pressure. Quick cycling via tough Promote 2 year ‘continuation’ point – typically 40% go through based on ‘firm wells’ or ‘new seismic + contingent well’. Overall Promote potentially commercial success rates: –Exploration wells ~ 30% –Appraisal wells ~ 70%

19. Licensing Strategy Annual Rounds 25 th Round early 2008 Cumulative Acreage Incl. SEA 7 Focussed Terms Traditional Promote Frontier 7 8 6 5 4 3 2 2 1

20. WEST OF SHETLAND TASKFORCE http://www.og.dti.gov.uk/UKpromote/wos_task.htm

21. Area of high exploration activity potential Industry/Government TaskForce addressing gas infrastructure needs 30+ companies with interests in WOS Ca. 60 licences WOS West of Shetland Activity

22. 2007 Promote CD

23. Promote CD Opportunities  44 Leads & 5 Discoveries  Maps, Stratigraphic columns and Cross Sections  In Place and Reserve Estimates  Play summaries CD available at DTI stand

24. West of BritainNorth Sea Unlicensed Opportunities

25. 5 Leads: (Est Reserve Range) A - 33-51-76 mmbo B - 12-19-31 C - 17-26-37 D - 9-14-20 E - 10-16-24 1 Discovery (21/24-4): Untested 35 ft net reservoir 17-27-41 mmbo Multiple Opportunities - 21/24

26. One of the largest undrilled UKCS structures: High Risk with Potential reserves of 1.4 - 2 - 2.8 billion barrels West of Britain 214/1