Alta Mesa Holdings, LP Alta Mesa Holdings, LP EnerComs The Oil & Gas Conference Denver August 2011 Confidential
Alta Mesa Overview We are a privately held company, founded in 1987, engaged in onshore conventional oil and gas acquisition, exploitation, exploration and production Our diverse asset base is characterized by lowrisk, repeatable…
LowRisk Business Model We create value in underdeveloped and overlooked areas with the following characteristics Attractive Economics Proven Geology Multiple Pay Zones Repeatability Control Over Pace of Development Available…
Alta Mesas Focus Areas Oklahoma East Texas Reserves 44 BCFE Reserves 63 BCFE PV10 (MM) 129.2 PV10 (MM) 153.9 % Gas (Reserves) 46% % Gas (Reserves) 74% % Proved Developed 62% % Proved Developed 84% R/P 19.9x R/P 11.2x Q2 2011…
Proved Reserves Proved Reserves by Type (Bcfe) Annual Reserve Additions as a % of Production1 900% 66% of Proved Reserves Purchases are Developed 800% Extensions PDP 700% 120 BCFE 37% 600% PUD Average Annual Reserve Replacement…
Consistent Competitive Performance AMH 4 Year Average F&D of 2.14/mcfe and Reserve Replacement Ratio of 495% 4 Year Average AllIn F&D Costs (/Mcfe) 4 Year Average Reserve Replacement Ratio Stone Energy Corp. Chaparral Energy…
Deep Bossier Overview Large Position in a Highly Prolific Gas Resource Play Overview Deep Bossier Net Production by Operator (MMcf/d) Proved Reserves 93 BCFE PV10 (MM) 111.9 % Gas (Reserves) 100% % Proved Developed 56% R/P 5.5x Q2 2011…
South Louisiana Overview Historically Prolific Area Originally Developed by Majors Overview1 South Louisiana Assets Proved Reserves 76 BCFE PV10 (MM) 229.2 % Gas (Reserves) 72% % Proved Developed 74% R/P 6.1x Q2 2011 Production…
Weeks Island Overview High Value Oil Field with Significant Upside Potential Overview Weeks Island: Multiple Oil Pay Zones Proved Reserves 3.0 MMBOE PV10 (MM) 81.1 % Gas (Reserves) 30% % Proved Developed 57% R/P 4.9x Q2 2011 Production…
East Texas Overview Increasing Reserves and Production from Established Fields Overview East Texas Assets Map Proved Reserves 63 BCFE PV10 (MM) 153.9 % Gas (Reserves) 74% Cold Springs % Proved Developed 84% Anne Parsons R/P 11.2x…
Urbana and Cold Springs Field Urbana Overview Urbana 3P EUR (Bcfe) Known structure with multiple pay zones 200 Urbana 3D Field redevelopment since buying out Famcor in late 2005 Alta Mesa complete Recent advances have led to…
Oklahoma Overview Longlived, Stable Oil Production Overview Oklahoma Asset Map Proved Reserves 7.3 MMBOE PV10 (MM) 129.2 Hennessey East % Gas (Reserves) 46% Hennessey % Proved Developed 62% R/P 19.9x Q2 2011 Production 967 BOEPD %…
Eagle Ford Shale Overview Initial Drilling Results Indicate Strong Well Economics Overview Eagle Ford Map Proved Reserves 0.6 MMBOE PV10 (MM) 13.2 % Gas (Reserves) 13% Oil % Proved Developed 52% Wet Gas/Condensate R/P 6.5x Dry Gas Q2…
Eagle Ford Shale Flowback Observations Production and EUR highly sensitive to drawdown Early EFS wells exhibit severe well damage from high drawdown Theoretically, high drawdown may be collapsing the near well bore frac zone, crushing…
Commodity Price Risk Management 51% of Forecasted 2H 2011 Production Hedged at Attractive Prices Alta Mesa actively manages a hedge portfolio consisting of swaps, collars, put spreads and 3way collars to costeffectively limit…
2011 CAPEX Forecast Projected Annual CAPEX Planned Drilling & Recompletion CAPEX by Field (000s) 200 45 181 180 160 40 Annual CAPEX ( in Millions) 144 140 Eagle Ford 120 35 100 Deep Bossier 2011 Expected CAPEX (MM)…
Production Shift from Gas to Oil Oil Production is Expected to Grow from 14% of Production to over 40% in Next 18 Months Historic and Projected Production Mix Future Oil Growth Driven by Weeks Island and Eagle Ford 100% 100%…
LLS Basis Trading at Premium to WTI 69% of May oil production indexed against LLS, resulting in 14.35 spread to WTI Historic and Forward LLS vs WTI Spread 160 25 WTI 140 LLS LLS (Forecast) 20 120 WTI (Forecast) End of Month…
Key Considerations Strong Average 25+ years industry and technical experience Management Team Successfully completed over 250mm of acquisitions at 1.27/mcfe1 with Proven Since 2007, increased proved reserves and production at 40% and…
Contact Information Hal Chappelle, President & CEO Phone: 2819431353 Email: hchappellealtamesa.net Michael McCabe, Vice President & CFO Phone: 2815300991 Email: mmcabealtamesa.net Lance Weaver, Investor Relations Manager…
Appendix Confidential 23
Highly Experienced Senior Leadership Team Heavy engineering and operations focus with significant experience in core areas Name / Title Years Companies Hal Chappelle - President and CEO 30 LL&E, Burlington Resources, Southern Company…
Current Activity East Texas Oklahoma Q211 Production 15.5 MMcfe/d Urbana planning for additional fieldwide Q211 Production 967 BOEPD compression Infill drilling program at Lincoln North Cold Springs uphole recompletion of 2nd…
Second Quarter 2011 Operation Highlights Production Production volumes 10.5 Bcfe in Q2 2011 vs. 9.8 Bcfe in Q1 2011 Average daily production was 116 MMcfe/d in Q2 2011 vs. 109 MMcfe/d in Q1 2011 Outlook: Q3 2011 production 118 122…
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