Summary Tyler County considered proven as a development play by operator. Up to 50 wells may be drilled across the 30,000 gross acres. First well confirmed existence of Austin Chalk and petroleum system. Upside potential in Austin…
Tyler County Project- Austin Chalk Partners Regional Context. Location Maps. Pantheon JV Acreage. VRU1 Well Review. Upside Potential. 4
Partners in Tyler County JV Company Working Comments Interest Vision Resources LLC (operator) 37.5% Private company. Long term presence in East Texas. Majority owned by George Kaiser. Kaiser Francis Oil Company 25.0% Private…
Regional Context Proven Hydrocarbon Basin Brookeland field has produced for over 20 years. Austin Chalk directly above source rock. Whole area hydrocarbon charged. 6
Location Map Pantheons Tyler County Venture Southern US Producing Basins and Trends Map 7
JV Acreage Position VisionNo.2 LP VisionNo.1 ErgonNo.1 ErgonNo.1 Well Rice Rice Well Ratcliff Well Double A Wells Field 8
Tyler County Acreage Production from Austin Chalk adjacent to JV acreage. Historic vertical wells drilled on JV acreage were targeted at deeper horizons but proved existence of Austin Chalk. Prolific Ergon Ratcliff and Ergon Rice…
Analysis of VRU 1 - Success Proven petroleum system on acreage. Natural gas, condensate and oil flowed to surface. Acreage now considered as a proven development project by operator. Appears connected to deeper Austin Chalk…
Analysis of VRU 1 - Issues Encountered Pressures encountered greatly exceeded well design parameters. Existence of the unconsolidated rubble zone not anticipated. Caused well bore blockages. Caused time overruns from scheduled 75…
Analysis of VRU 1- Positive Attributes from High Pressure and Rubble Zone Expected to deliver production rates in upper tier of Austin Chalk producers. Has led to estimates of gross reserve per well increasing by 60% from 5 bcfe…
Flare at VRU1 Presence of Hydrocarbons 13
Rubble Zone Enhances permeability and porosity 14
Austin Chalk - Upside Potential Average JV reserve estimates of 8 bcfe per well potential may be exceeded. VRU1 shows similarities to down-dip Giddings Field (Austin Chalk) wells. Average down-dip Giddings wells 10 bcfe per well.…
Illustrative Individual Well NPV (USD) Austin Chalk Pricing Sensitivities* NPV10 US million based on average Chalk well gross bcfe (Pantheon 25% working interest) 5 8 20 US4 per mcf natural gas and US65 per bbl 1.5 3.5 11.4 oil…
Illustrative Individual Chalk Well Production Profile Very high initial production = early cash flow AUSTIN CHALK 8 BCF WELL GROSS PRODUCTION PER DAY 35,000 30,000 25,000 20,000 MCFD 15,000 10,000 5,000 Month 1…
Illustrative Individual Austin Chalk Well Cash Flow* Pricing assumptions see slide 27 18
Tyler County Project- Upside Potential in Woodbine Introduction Woodbine Regional Context Location Map 19
Woodbine - Introduction Formed part of original farm-in of May 2008. Woodbine is an independent and totally separate play from Pantheons Austin Chalk project. Sits directly below Austin Chalk target. Existing Woodbine fields are…
Woodbine Regional Context East Texas and Double A Wells fields are both producing from Woodbine (see map ). East Texas field reserves 5,400 mmboe (see map). Double A Wells field around 90 mmboe (reserves500 bcfe). Approx. six miles…
Tyler County - Woodbine Reservoir/Geology Geologically complex. Woodbine situated immediately below (ca. 500ft) Austin Chalk zone. Sandstone reservoir with extremely high flow rates and recoveries. Woodbine zone proven to exist on…
JV Acreage Position VisionNo.2 LP VisionNo.1 ErgonNo.1 ErgonNo.1 Well Rice Rice Well Ratcliff Well Double A Wells Field 23
Illustrative Woodbine Potential NPV10 Upside Net to Pantheon* Single well financial analysis indicates major potential Pricing Sensitivities NPV10 US million Pantheon 25% working interest based on Woodbine gross bcfe 6 18 30…
Tyler County Future drilling programme Second location identified. Targeting both Austin Chalk primary target. Woodbine secondary target. Offsets Visions existing and producing LP2 well on JV acreage. Future wells now engineered…
Planned New Well Design Engineered for Revised Conditions Item New VRU1 Casing (inches) 13 , 9 , 7 10 and 7 Drill pipe 5 inches to top of 7 4 inch in 7 liner Unconsolidated 7 set within upper chalk isolating 7 set above chalk above…
Base Oil and Natural Gas Price Assumptions Using forward curves for oil and US natural gas prices estimated and provided by financial institution. Year Oil Natural gas US per barrel US per mcf 2009 79.50 4.50 2010 75 5.50 2011 80…
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