Deepwater Gulf of Mexico

1. Milking a Cash Cow: Redefining the Holstein Development Plan
45
110000
Holstein Field Oil Rate J3 Core Compressibility
Holstein Pre-1st Oil Overview Holstein Post 1st Oil Overview 100000
Test
40
90000
„Excellent Seismic Quality and „5 Pre-drilled wells produced up to 75 80000 35
Resolution MBOPD 70000
30
60000
„MDT data supported large connected
Pore Volume Compressibility, 10-6/psi
BOPD
„Developed 4 of 13 reservoirs 50000
volumes 25
(J3 aquifer known to not be connected) „2 consecutive wells did not deliver as 40000
Our Value Cycle
expected 30000 20
µ
500000
op
2500000
Atlanta
„Geologic model of ponded basin sands
12000000
cr
ut
20000
O
Dallas
Lo
p
Pa
e
cro
we
eoce n
oce
le
Montgomery
r
Out
Eo
n
Jackson ene e Outc
„Rate decline more rapidly than expected
c
Pal
ene
Ou r
Coastal Plain tcro op
Sabine p
c
r Eo
Uplift
Holly Springs Delta
we
(Paleocene & Eocene)
Gross
)
Lo
COMPOSITE
ene
a
& Eoc
le Delt
Shelf Shelf
15
ene
kda
eoc
Roc
(Pal
Mobile
minimized complexity
LEAD &
ge Shelf Margin Failure
s Ed & Canyons Baton Rouge PA90 Shelf Edge
rco Austin elf
n Ma Sh
Sa
Actual BOPD
00
BASIN
h K1 Upper Slope Basins New Orleans
Arc
COMMON RISK
Houston
Carbonate
San Antonio Slope
s
Depositional
Galveston
pas
PROSPECTS
ltae)
De r By
a cen &/o
sit Eo h
Ro &
e ge s Hig
& Ed sin
bo cen elf Ba Pa
leo
Lo leo Sh pe Paleo High
SEGMENTS
(Pa 0 Slo
Slope
E3 r
500000 2500000
pe
Up
Slope
10000
10000000
Mid Slope Basins
Environment Paleo High
Structured Basin Floor Fan
Basin
Atlanta
Sanctioned BOPD
Monterrey
Basin Floor Fan
Basin
Cf = 25 used in
Scale
1:4,000,000 Universal Transverse Mercator Feet
0 25 50 100
Miles UTM Zone: 15 Central Meridian -93.000
0 50 100 200 Spheroid: Clarke 1866 Geodetic Datum: NAD27
„Schedule adjusted to impact rate but
Kilometers
DISCOVERY „High expected rock compressibility 0 initial model 10
delayed WI
Shape
NW „Excellent rock properties from coreSE
3000 Capex Overall Trend
2500
• Exploration steady
Discovery Well Appraisal Well
05
05
05
5
5
05
05
06
5
6
04
M 5
05
06
Dallas of existing projects
5
05
• Decline
2000
ILX &
-0
l-0
SUSTAINING
1500
-0
spend offset by New Projects
-0
-0
0
1000
v-
r-
5
• ILR spend of ca. $350m/yr for
n-
APPRAISAL &
c-
c-
g-
n-
n-
Propect/Project Reserves BP% Others
b-
b-
p-
500
CATCHMENT Atlantis North Gas 56 BHP
Montgomery
ct
reserves progression of base
THE
ar
ar
PRODUCTION
ay
Atlantis South Gas 56 BHP
Ju