• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
el paso  05_10_L_Stewart_Morgan_Stanley
 

el paso 05_10_L_Stewart_Morgan_Stanley

on

  • 355 views

 

Statistics

Views

Total Views
355
Views on SlideShare
355
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    el paso  05_10_L_Stewart_Morgan_Stanley el paso 05_10_L_Stewart_Morgan_Stanley Presentation Transcript

    • Lisa Stewart President, El Paso Production and Non-Regulated Operations Gulf of Mexico Update May 10, 2005
    • Cautionary Statement Regarding Forward-looking Statements This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this presentation, including, without limitation, our ability to implement and achieve our objectives in the long-range plan, including achieving our debt-reduction targets; uncertainties associated with production activities; our ability to meet production volume targets in our Production segment; the uncertainties associated with governmental regulation and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise 2
    • Overview Substantial progress in past 12 months ► 100% success rate since mid-2004 ► Production stabilized with shift to lower-risk program ► Large acreage position provides opportunities for ► low-risk to ultra-deep prospects 3
    • Acreage Position: Gulf of Mexico (GOM) GOM Position Blocks Leases Total El Paso 222 234 HBP El Paso Op 76 78 El Paso HBP Blocks HBP Other Op 66 66 El Paso Lease Blocks El Paso High Bid Lease Sale Blocks El Paso Operated Structures: 101 4
    • Apache 154 Newfield 115 Devon 103 El Paso 103 Chevron 99 Hunt Spinnaker Forrest 92 89 88 *Designated as operator of shelf offshore block Kerr McGee BP Remmington 84 81 78 Magnum Hunter Noble 69 67 BHP Pioneer Gryphon 62 62 62 Bois d'Arc GOM Shelf Industry Comparison* Houston Exploration 53 49 Unocal Dominion 46 43 5 Operated Blocks
    • 3D Seismic: GOM 6
    • GOM Drilling Inventory Currently 52 ready to drill prospects ► – Depths range from 6,000'–23,000' TVD ► 22 prospects: 0'–12,000' ► 19 prospects: 12,000'–18,000' ► 11 prospects: 18,000'–23,000' – Net risked mean reserve exposure: 452.2 Bcfe Fully evaluated from a technical, risk, and ► economic prospective Key to successful portfolio management is the CMS planning ► and tracking system 7
    • Capital Management System (CMS) Managing Our Drilling Program Value creation through the drill bit ► Strive for balanced program ► Disciplined pre-drill evaluation (risk, reserves, cost) ► Monthly post-drill analysis (actual results) ► Continuously comparing post-drill evaluation to ► pre-drill assumptions Adjust program based on monthly results ► 8
    • GOM/Southern Louisiana 2004 Drilling Schedule Total 1st half: 7 dry wildcats in ► Dry Hole deep shelf with an average TD 19,712'; 2 discoveries Cost $60.5 MM – $60.5 MM dry hole costs Mid-year refocus in program ► – Exploration & Production departments merged – ROSE risking and evaluation stressed – Emphasis on moderate risk profile 2nd half: 7 successful wells ► with average TD 11,185' – Results from wells booked in 2nd half, 1.0 PVR; with all costs $50.7 MM drilling cost for ► 9 total successful wells 9
    • GOM 2005/2006 Drilling Schedule MD Three wells drilled and completed ► Five wells currently drilling ► Five wells yet to spud ► Moderate risk portfolio ► Average TVD 13,592' ► 10
    • 2005: Balanced Drilling Program Total: $54 MM 3 Wells 6 Wells ► WC75 Discovery ► WC504 B-3 ST (Drilled) ► WC62 ► WC504 B-9 (Drilling) ► HI 115 ST $15,502 Development ► WC95 1 Cris A 28% $21,747 ► GA151 B-2 (OBOC) 40% ► MC151 (OBOC) 4 Wells ► VK823 (OBOC) ► HI48 Cris R $17,279 ► WC95 2 Marg A 32% ► WC62 Marg A ► VK385 A-4 0–12,000' 12–16,000' 16,000'+ 11
    • El Paso Shelf Technology 3D seismic ► Extensive database (60,000 mi2) – – In-house data processing—Prestack time and depth migration – Multi-attribute analyses including: Inversion, coherency, and fluid factor analysis – Pore pressure modeling and prediction Drilling ► – Bi-center bits – Expandable casing/liners – Drilling with casing Completions ► – 4 ½quot; monobore for deep shelf wells – Reduced time through single/half trip completions – Rigless thru-tubing frac packs for recompletions 12
    • “Deep Shelf” Upper/Middle Miocene Activity EP ST204 initiated the play ► Upper–middle Miocene at 18,000'–21,000' ► Large 4-way closures ► AVO has been successfully applied in the play as a DHI ► High-rate reservoirs with significant liquids ► 13
    • Industry “Deep Shelf” Sub Glide Plane Activity (Eocene Play) Deep frontier exploration below the regional glide plane ► Large 4-way closures with Eocene, Paleocene and Cretaceous objectives ► Drill depths between 22,000'–38,000' ► Leverages existing infrastructure and MMS royalty relief ► 14
    • El Paso “Deep Shelf” Sub Glide Plane Potential (Eocene Play) Eocene Key well WC 53 “Black Diamond” Prospect ► Shell HI10 “Joseph Prospect” PTD 30,000‘ ► (currently drilling) Extension of onshore Wilcox play onto the Shelf ► Delta fed slope apron depositional setting ► EP has current prospect inventory ► 15
    • El Paso WC 53 Eocene Prospect Drilled just short of targets in 2003 ► Gas shows in Yegua (Eocene) Section ► Target is Wilcox sands ► Large 4-way closure ► Channel and fan morphology ► 16
    • GOM/SLA Production Profile Net MMcfe/d Hurricane Volumes stable at 200 MMcfe/d 300 Ivan on $150 MM capital per year 250 200 150 06 CAP 05 REC 100 05 DRLG 04 CAP 50 Base 0 Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct 2004 2004 2005 2005 2005 2005 2006 2006 2006 2006 17
    • Production Enhancements Add Stability 375 325 NET M M cfe/d Hurricane Ivan 275 DRILLING: 16 MMcfe/d 225 2004/2005 increase RECOMPLETIONS: 38 MMcfe/d 175 2004/2005 increase WORKOVERS: 30 MMcfe/d 2004/2005 increase 125 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2004 GOM BASE VOLUMES WORKOVER VOLUMES RECOM VOLUMES DRILLING VOLUMES 18
    • El Paso Future Focus Emphasize medium risk prospect portfolio ► Further development of producing assets ► Deeper wildcat opportunities based on 3D seismic ► technology and regional studies Leverage higher risk opportunities through strategic ► alliances Acquisitions that enhance overall prospect portfolio ► and production 19
    • Lisa Stewart President, El Paso Production and Non-Regulated Operations Gulf of Mexico Update May 10, 2005