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Rates Of Return
Midland Basin Wolfcamp
  Economics : Rates of Return/ IRR

Showing 3 Results


Premier Asset Quality Delineated Inventory Economics (Gross) (1) Delineated Inventory Payout (at Current Costs) (2) 1,200 Payout Period Focus of 3-year Program 866 locations yield 101 Locations estimated 25+% IRRs at Monarch 6 rig years 45/Bbl (flat) WTI pricing MS Monarch 128 Locations 1,000 and below 8 rig years LS Monarch 85 Locations 5 rig years Ranger LWC B WC A Current Ranger UWC B Monarch Focus Zones 85 Locations 800 WC B 5 rig years Ranger WC A Payout in WildHorse 125 Locations Ranger LSBY < 2 years at LS 7 rig years WildHorse WC B Strip Prices WildHorse 128 Locations 600 WildHorse WC A WC A 8 rig years WildHorse LSBY WildHorse 96 Locations Monarch WC B WC B 6 rig years Monarch WC A Ranger 75 Locations 400 LS 4 rig years Monarch MSBY Ranger 63 Locations Monarch LSBY WC A 4 rig years Ranger 49 Locations 200 U WC B 3 rig years Ranger 60 Locations L WC B 4 rig years 0 < 35 35 - 45 45 - 55 Payout Period 1) Flat WTI prices yielding single well IRRs of 25+%. Assumes current capital costs and lease operating expenses. 2) Payouts based on strip NYMEX pricing as of October 26, 2016. Assumes current capital costs and lease operating expenses. Rig years assumes 17 wells per year. 7
Callon Petroleum Co.
December 2016

Reagan and Upton Well Performance Repeatable well results 1 generate attractive returns at current strip 2 Industrywide completion evolution leading to enhanced productivity Tighter stage spacing and higher proppant loading yielding further improvement W. ReaganUpton Results Central Reagan Results SE Reagan Results 250 250 250 1000 MBOE 1000 MBOE 1000 MBOE CUMULATIVE PRODUCTION, MBOE (2 STREAM) CUMULATIVE PRODUCTION, MBOE (2 STREAM) CUMULATIVE PRODUCTION, MBOE (2 STREAM) 200 200 200 850 MBOE 850 MBOE 850 MBOE 150 700 MBOE 150 700 MBOE 150 700 MBOE 100 100 100 TCAU 1 1HM Permian Resources Hickman RE 50 50 50 1 223 (02HA) 4238339461 HARTGROVE 22 (2 Well Avg.) TCAU 2 1HU Permian Resources Tucker RE HAMMANUPTON 30 1HM PE Char Hughes (4405H) 194 (22HA) 4238339526 4238339528 0 0 0 0 3 6 9 12 15 18 21 24 0 3 6 9 12 15 18 21 24 0 3 6 9 12 15 18 21 24 TIME, MONTHS TIME, MONTHS TIME, MONTHS Type Curve Summary Gross HZ DrillComplEquip EUR % % IRR 2 Area Inventory (mm) (MBoe) Oil NGL Strip 60.00 / 3.00 Midland 51 5.9 1,000 65 20 76 100 W. Reagan/ Upton 80 5.9 850 68 17 32 41 Central Reagan 230 5.4 800 56 25 29 38 SE Reagan 137 5.4 700 71 15 26 33 Notes: 1 Well results normalized to 7,500 feet lateral lengths. Note: TCAU wells are 8,500 feet early Gen III Completions. 2 Strip prices as of October 31, 2016 8
Earthstone Energy Inc.
November 2016

2016 SPRABERRY/WOLFCAMP DRILLING PROGRAM Increased horizontal rig count from 12 rigs to Pioneers Spraberry/Wolfcamp Acreage Position 15 rigs in the northern area during and 2016 Drilling Areas September/October Expect to add 2 additional rigs in November for a total of 17 rigs Northern Area Expect to place 230 horizontal wells on Southern production during 2016 Wolfcamp 60% Wolfcamp B; 25% Wolfcamp A; 15% Lower JV Area Spraberry Shale Horizontal drilling program delivering improved EURs and favorable returns as a result of improving capital efficiency Version 2.0 completions are the standard design Version 3.0 testing underway; recently increased the testing program from 80 wells to 100 wells D&C cost per well: o Well cost averaging 7.0 MM for all intervals assuming average perforated lateral length of 9,000 feet and a combination of Version 2.0 and Version 3.0 completion designs Production cost per horizontal well (/BOE): o Averaging 4.00 per well (includes LOE of 2.00 and taxes of 2.00) Plan to spud 210 horizontal wells in 2016 (190 wells in Forecasting IRRs of 50% to 65% assuming Version 2.0 northern area and 20 wells in JV area) and Version 3.0 completions at late-October strip Plan to place 230 horizontal wells on production in 2016 prices1 (includes tank battery/SWD costs) (190 wells in northern area and 40 wells in JV area) 1) Late-October strip prices ranged from 52.50/BBL in 2017 to 56.00/BBL in 2020 13 for oil and 3.15/MCF in 2017 to 3.00/MCF in 2020 for gas
Pioneer Natural Resources Co.
November 2016
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