The DJ Basin Niobrara: Evolution of a Resource Play EnerCom Oil and Gas Conference August 21, 2014
Presentation Outline DJ Resources LLC Overview The Early Days - Maturation model - DJ Resources I The World Turns - EOG Jake well DJ Resources II - Maturation Model - Acreage acquisitions + Chesapeake + Marathon/Marubeni -…
DJ Resources Growth Timeline DJ Resources I is sold (10X Return) Predecessor Bonanza Creek DJ Resources I DJ Resources II companies Energy, Inc. sale is founded is founded to DJR I 34,000 ac. (8X Return) 2003 2005 2007 2009…
Historical Leasing and Production Bonanza Creek DJ Resources Leasehold and Production Energy, Inc. sale 1200 200000 DJ Resources I 180000 1000 is sold 160000 140000 800 Oil Equivalent Barrels 120000 Acres 600…
The Early Days 1990 to 2008 18N Simple basin-centered maturity model Play 15N Early horizontal drilling at Silo Fairway Field Production depended on macro- 12N scale open fractures Basic completion techniques 9N DJR I…
Niobrara Horizontal Development 2009-2010 18N EOG makes a major breakthrough with Jake 2-01H 15N 1,500+ BOPD IP near Walsh Production dry hole Multistage fracturing is the 12N difference maker Noble begins horizontal program…
DJ Resources II - New Maturation Model 18N Niobrara maturation does not uniformly increase with depth Approximate edge of Geothermal gradients are Niobrara oil window extremely variable (1.6 to 2.7per 100) 12N - Influenced by…
Niobrara Horizontal Development 2011-2014 18N DJ Resources core position inside Niobrara oil window 15N Long laterals and multi-zone potential in the Niobrara and Codell are explored 12N Whiting and Noble drill liquid- rich NE…
Comparative Metrics DJ I DJ II TTL Net Invested TTL Net Invested Acquisition 25 million2 2.75 million Metrics (17,500 BOE/d) (20/ac.) (450/ac.)3 TTL Sale Proceeds TTL Sale Proceeds Divestment 225 million 32.5 million1…
Summary DJ Resources 2 successful acquisition and divestment ventures 10,000 acres remaining in North Wattenberg + Targeted development drilling 1st Qtr 2015 Funded by SW Capital Partners and management Seasoned and successful…