PetroQuest Energy Investor Presentation

- Woodford JV generates significant liquidity and accelerates monetization of long-term acreage development
- 4Q11 oil production exit rate expected to increase 10%+ over 1Q11
- Only 2% of 2011 capital allocated to non-promoted dry gas projects
- During 2010 extended maturity of HY debt to 2017

http://docsearch.derrickpetroleum.com/files/12970/June_001.pdf

Eagle Ford acreage metrics skyrocketing.. Marathon acquires Eagle Ford acreage at ~$18,000/acre while most of the analysts report at $25,000/acre.. Read this to know how..

Marathon Oil reached a definitive agreement with Hilcorp Resources Holdings LP to purchase its assets in the core of the Eagle Ford shale formation for $3.5 billion. Hilcorp Resources Holdings is a partnership between affiliates of Hilcorp Energy Company and Kohlberg Kravis Roberts & Co. LP.

Hilcorp acreage acquisition highlights:

• ~141,000 net acres (217,000 gross acres) primarily in Atascosa, Karnes, Gonzales and DeWitt counties in Texas
• Resource potential of 400 – 500 mmboe, ie., 473 mmboe
• Potential to book up to 100 mmboe of proved reserves by the end of 2011
• Potential additional 14,000 acres from tag-along and other leasing
• Approximately 90% operated with a 65% average working interest
• Current net production 7,000 boepd, 2011 exit ~ 12,000 boepd (80% liquids)
• ~ 80,000 net boepd by 2016.

$/acre is ~$18,000. Know how...

Value of Reserves or Production

Assuming the proved reserves and the production would reach 100 mmboe and 12,000 boepd by the end of 2011, the reserves are valued at $1,000 million (@$10/boe) which leaves the production metrics at $83,333/boe/d.

Value of Undeveloped Acreage or Resources

The remaining value of $2,500 million is assigned to undeveloped acreage of 141,000 or the resource potential of 373 mmboe (after deducting for proved reserves of 100 mmboe). This $2,500 million puts the $/acre at $17,730 (approximately equal to the company reported average price of $15,000/acre) and leaves the resources at $6.7/boe.

Eagle Ford acreage metric is skyrocketing

This is the biggest deal in Eagle Ford Shale, in terms of deal value. Recently, KNOC clinched $1.55 billion Eagle Ford JV with Anadarko early this year. The acreage metrics of Marathon deal is at a 27% premium compared to the KNOC-Anadarko deal which was at a 27% premium compared to the 2010 acreage metrics in Eagle Ford.

The following data source from Derrick Petroleum Services shows the acreage metrics of the 2010 Eagle Ford transactions.

Source: Derrick Petroleum - E&P Transactions Database

Eagle Ford Hilcorp Resources Acreage Acquisition

Hilcorp Acreage Acquisition Summary
- $3.5 Billion cash, subject to closing adjustments and HSR approval
- ~141,000 net acres (217,000 gross acres)
- Accretive to earnings and operating cash flow and self-funding by 2014
- Expected closing November 1, 2011, effective date May 1, 2011
http://docsearch.derrickpetroleum.com/files/12974/Eagle%20Ford%20Shale%20Presentation%20Slides.pdf

Sanford Bernstein Strategic Decisions Conference

Apache in 2011:
- 13‐17% production growth expected
- Updated capital program: $8.1BN
- Strengthening balance sheet further
- Building 2012+ inventory

http://docsearch.derrickpetroleum.com/files/12973/Apache_SanfordBernstein_20110601.pdf

MOL 2011 June Investor Presentation

- Upstream increased its  Group EBITDA contribution from 30% in 2005 to nearly two-third in 2010

- Stable production expected around 145-150 Mboe/d between 2011-2013

- Successful well ratio was 70% in Hungary in the last 5 years, further successes are expected with similar structures to be drilled



http://docsearch.derrickpetroleum.com/files/12895/MOL%202011%20June%20Investor%20Presentation.pdf

Chesapeake - June 2011 Investor Presentation

- Accelerating drilling of liquid-rich plays until YE'12 when CHK's drilling capex is 25/75% between natural gas plays and liquids-rich plays
- Targeting 32-34 tcfe (~5.5 bboe) of proved reserves by YE 2015 in addition to lowering debt

http://docsearch.derrickpetroleum.com/files/12940/Request-Latest_IR_Presentation.pdf

Corridor Resources seeking a replacing partner for Apache in Frederick Brook shale development program...

Corridor Resources announced that it received notification that Apache has elected not to proceed with the second phase of the farm-out program with Corridor in respect of the potential shale gas resource development near Elgin, New Brunswick. This option is part of the following 2009 agreement-

Source: Derrick Petroleum Services- E&P Transactions Database

As a result of Apache’s withdrawal, Corridor will entertain discussions with potential joint-venture partners who wish to engage in a program to develop the Frederick Brook shale and who can add value to the potential development. The information and data obtained to date from Corridor's and subsequent Apache programs will be of significant value as this program advances.


The evaluation of the Frederick Brook shale gas resources is still in its early stages, and that the best estimate of gross discovered resources is 67.3 trillion standard cubic feet (as estimated by GLJ Petroleum Consultants Ltd. in the GLJ shale resources report, effective June 1, 2009.

Status of work program
As was announced by Corridor on March 30, 2011, the two horizontal wells drilled and hydraulically fracture stimulated by Apache (Will DeMille G-59 and Green Road B-41), using similar large slick water techniques, have not generated sustained shale gas production to date. In May, the Will DeMille G-59 well was re-opened and flowed frac fluid at low rates with minor gas shows over 5 days. It is important to note that, when the Will DeMille G-59 well was shut-in after initial testing in early December, 2010, it had recovered only approximately 4% of the total frac fluid.

Corridor previously reported that the Green Road B-41 well had been placed on a 45 day gas lift which ended on March 16, 2011. At that time, the well was shut-in after recovering 17% of the frac fluid.  In late May, due to significant well head pressure build-up, the well was reopened and flowed gas at a maximum rate of 0.7 mmscf/d for several hours prior to frac fluids loading the well causing gas rates to decline. 


Based on a consensus among third party expert consultants and Corridor technical staff, the most significant issues identified with the G-59 and B-41 well performance relate to the design of the horizontal wells in this high-stress environment and the fracture technique. Corridor believes that a different well design and frac program will lead to a commercial development of the Frederick Brook shale. It should be noted that, as previously reported, Corridor re-tested the Green Road G-41 well in December 2010, which produced gas at a constant rate of 4 mmscf/d for five days at a final flowing pressure of 1306 psi. During Q1 2011, the G-41 well was used to provide gas lift and consistently delivered the required rate of 0.5 mmscf/d during a 45 day test, at a final pressure of 2007 psi.

Corridor intends to drill two vertical appraisal wells in the Elgin area commencing late this year in order to confirm the well productivity required to proceed with a pilot phase. Based on the results of these appraisal wells, Corridor plans a staged approach to demonstrate commercial viability which would include a pilot phase with a capacity of approximately 40 mmscf/d,  targeting gas production in late 2013.  This program would include vertical wells in a multi-well pad design to take advantage of the shale thickness and the high gas saturations.  During the pilot phase, Corridor will evaluate various drilling and completion techniques. Corridor will provide further details on the Frederick Brook shale gas development plans in a corporate presentation to be placed on Corridor's website on June 6, 2011.


Try this free document search tool