1. Greystone Petroleum, L. L. C. Joe M. Bridges Michael A
Greystone Petroleum, L.L.C Joe M. Bridges Michael A. Geffert Chairman & CEO President & COO
IPAA Private Capital Conference
Houstonian Conference Center
January 18, 2007

2. The Greystone Story Joe M. Bridges Chairman & CEO Michael A. Geffert
President & COO
- Co-Founders of Greystone Petroleum LLC
Disciplined
Founded in 1995 to target acquisitions in the Lower Cretaceous and Upper Jurassic, particularly in North Louisiana
Good reserve potential at low finding costs
Multiple producing zones
Low operating costs
Long history of production
Evaluated all North Louisiana and East Texas fields for criteria –
Sligo Field met all
Patient and Persistent
Began Sligo Field evaluation in April 1995
Made first acquisition proposal for Sligo Field in May 1996
Steadfastly pursued Sligo Field for the next six years, through several commodity price cycles
Shell Capital: a faithful financial partner over the years
Responsive
Greystone: moved quickly on the opportunity
Shell Capital: ready to help yet another time
First Reserve: willing to work diligently despite tight schedule

3. Sligo Field Acquisition
The Sligo Field fit management’s experience and philosophy
Acquisition took years of on-again/off-again negotiations with prior owners
Management’s first purchase offer made in May 1996
Multiple offers made in ensuing years
Throughout cycles, Greystone remained disciplined in acquisition strategy and return targets
Keys to closing the transaction
Respect for Seller’s requirements
Long-term relationship with Shell Capital
First Reserve’s willingness to pursue the opportunity on short notice
Timeline
Initial meeting with First Reserve 12 December 2001
Devon confirms willingness to sell 19 December 2001
Execution of PSA 18 January
Wire transfer of Purchase Price 8 March

4. Sligo Field Attributes
Acquisition Goals:
Thoroughly studied by Greystone
Great natural gas reserve potential
Low finding costs, benign drilling
Ample acreage for expansion
Under-developed well density
Great gas marketing opportunities
Acquisition Attributes:
Sligo Field, North Louisiana
99.8% natural gas
Very large original-gas-in-place
Multiple producing zones
Multiple recompletion and drilling opportunities
High realized prices, high Btu gas
Multiple pipelines & markets
Sligo Field

5. Sligo Field Overview
The Sligo field represented 98% of proved reserves. Greystone had a large, contiguous acreage position over the crest of Sligo field. Operated acreage was predominately 100% working interest with 85% net revenue interest, all held by production. Greystone also had working interests ranging from 10% to 50%, averaging 41%, in acreage operated by EOG Resources.
Sligo Field Summary
Location
Bossier Ph, Louisiana
Date Discovered
1938
Cumulative Prod.
1.6 Tcf
Prod. Horizons
Rodessa, Pettit, Hosston, Cotton Valley
Prod. Depth
1,100’ to 9,600’
Operators
Greystone, Hunt Petroleum, EOG
Acreage
15,976 Gross
Operated Wells
107
Non-Op. Wells 58
Contract Operator
Brammer Engineering

6. Sligo Field Decline

7. Sligo Field Development

8. Sligo Field Development

9. Sligo Field Gas Marketing
Greystone owned the gathering infrastructure on operated acreage. Facilities improvements included a pipeline purchased to connect both ends of the field, a pipeline purchased to improve sales delivery points, numerous pipeline and compressor horsepower additions and a 40 MMcfd refrigeration unit that enabled Greystone to meet even the most stringent pipeline specifications without third party processing. Greystone had contracted 89 MMcfd of delivery capacity, 44 MMcfd firm and 45 MMcfd interruptible. Greystone’s system improvements and improved flexibility substantially enhanced realized pricing and therefore acquisition economics.
Natural Gas Markets
Delivery Points
Pipelines
Koran
Gulf South
TGT(Lonewa)
TGT(Henry Hub)
SNG(Perryville)
MRT(Perryville)
Transco(Henry Hub)
CenterPoint
TGT
MRT
CPEGT
TET
Regency
SNG(Driscoll)
Tennessee(Bear Creek)

10. Sligo Field Divestiture
Chesapeake Energy (ticker: CHK, exchange: New York Stock Exchange) News Release - 11-May-2004
Chesapeake Energy Corporation Announces Agreement to Acquire $425 Million of Natural Gas Properties
OKLAHOMA CITY, May 11 /PRNewswire-FirstCall/ -- Chesapeake Energy Corporation (NYSE: CHK) today announced that it has entered into an agreement to acquire natural gas assets in the Ark-La-Tex region of northern Louisiana through the $425 million acquisition of the equity interests of Houston-based, privately-held Greystone Petroleum LLC. Greystone's major asset is its 16,100 gross acre contiguous leasehold position over the crest of the giant Sligo Field located in Bossier Parish, Louisiana. Discovered in 1938, Sligo has produced 1.6 tcfe of natural gas from the Rodessa, Pettit, Hosston and Cotton Valley formations at depths of 4,100 feet to 9,600 feet.
Chesapeake has identified approximately 70 proved undeveloped and 75 probable and possible locations on the acreage. After allocating approximately $65 million of the purchase price to unevaluated leasehold and mid-stream gas assets, Chesapeake's acquisition cost per thousand cubic feet of gas equivalent (mcfe) of proved reserves will be $ Including anticipated future drilling costs for fully developing the proved, probable and possible reserves, the company estimates that its all-in acquisition cost will be $1.94 per mcfe. The proved reserves have a reserves-to-production index of 13.0 years, are 98% gas, are 93% operated, and have current lease operating expenses of $0.39 per mcfe. Greystone's very low lease operating expenses (approximately $0.35 per mcfe below the industry average) create unusually high economic value per mcfe of proved reserves.
Greystone was formed in 1995 by Joe M. Bridges and Michael A. Geffert who later were joined as equity holders by the private equity firm First Reserve Corporation to help fund Greystone's acquisition of interests in the Sligo Field in Greystone was advised in the sale to Chesapeake by Simmons & Company International and Griffis & Associates.

11. Greystone Oil & Gas LLP Greystone Drilling LP
Joe M. Bridges Michael A. Geffert
Managing Partner Managing Partner
1616 South Voss Road, Suite 400
Houston, Texas 77057

12. Current Areas of Activity
Areas of Interest
North Louisiana
South Arkansas
East Texas
Mississippi
Formations of Interest
Hosston
Cotton Valley
Smackover
Haynesville
Rodessa, Pettit

13. Greystone Drilling Rig #202

14. Greystone Drilling Rig #301