Acreage to Drill Bits Glenn D. Hart President & CEO October 11, 2011 San Antonio, TX
Overview Michael Petroleum (1983 2001) Focus & experience A&D natural gas reserves in South Texas 200 yrs collective experience Group has drilled 400 wells in Webb & Zapata Acquired 500 wells in LaSalle, McMullen, Webb & Zapata…
Timeline of Major Events eGO* 2007 Michael Petroleum 2001 2003 Laredo Energy I Laredo Energy IV forms Laredo Energy II Key personnel from EnCap, Avista EnCap equity- MP. Equity backing: backed backed 2005 EnCap Investments…
Resume on a Map: MPC LE IV (2001 to present ) From LE entities since 2001, LE Group prospects have generated: 500 drilled locations 400 Bcf produced 125 MMcf/d gross prod. Laredo Group Experience: 500,000+ Acres
Strategy Business Strategy Build to sell A business built on relationships Landowner Community Vendors Control development through operatorship Operate 90% net acreage Timing, development plan and capital Create value through…
In the Eagle Ford Hawkville Discovery R.V. Benavides 2 Hill Ranch 1H (Eagle Ford Logs & Cores) (Escondido)
Acreage Acquisition Summary 9 134,000 Gross Acres 15 Leases 84% of Total
Strategic Exploration: Drill the Perimeters Eagle Ford Logs, Cores, Production
Eagle Ford Horizon Eagle Ford Producer
A Funny Thing Happened on the Way . R R 1 8 1 R R 1 R Eagle Ford Producer
The Multiple Horizon Story Eagle Ford Escondido/Olmos Austin Chalk San Miguel
Northern Webb County Wilcox (1V) 2,000 - 4,000 Escondido (8H) 5,000-7,000 Olmos (2H) 7,000 8,500 San Miguel (1V) +9,000 Eagle Ford (25H) +11,500 Austin Chalk (2H) +10,500
Multiple Interval EURs by Area eO L L L L L eE L L L ea L L
Austin Chalk In the Curve
Hunting for the Right Formula Number of stages Lateral length Hybrid or slickwater Proppant type/volume Micro-seismic Flowback Production technique Commingle AC
Completion Comparison Escondido EF/AC TVD 6,500 11,000 Lateral 5,000 5,000 Stages 8-10 12-14 in EF 2-3 in AC curve Production 3.6 Bcf per 6.5 Bcf per Capital Cost 5 million 6.9 million IRR 4.50 22% 15%
Pearsall Potential RVB Area Well Logged to Pearsall interval Subsea depth 11,600 14,700 Geology Similar depositional environment of EF Interval thickens to the NW Approximate thickness 200 350 Higher pressure gradient Reserve…
Development Plan 2 rigs 3D Seismic 2012 locations Drilling requirements Proximity to pipelines Focus outside Eagle Ford Evaluation Subsurface micro-seismic Fracturing modifications Lateral length & orientation Operational…
Thank you Glenn Hart President & CEO Laredo Energy 13430 Northwest Freeway, Suite 1000 Houston, TX 77040 713.600.6000 www.LaredoEnergy.com