MDU Resources Group, Inc. Kent Wells Exploration President and CEO & Production Building A Strong America 1
Accelerating Oil Growth Exploration & Production Oil % of Total Production 50%+ Solid set of assets to grow from Target 2011 oil was 32% of total production 100 200 MMBO potential 32% Targeting 50%+ oil Selectively adding new…
Fidelity Overview Exploration & Production Headquartered in Denver, CO Two producing regions: Rocky Mountain Region 76% of proved reserves* Mid-Continent/Gulf States 24% of proved reserves* Q4 2011 production 30 MBOE/d 34% Oil…
Key Operating Areas Exploration & Production Bakken Areas Net Acres: 124,000 MT ND Heath Shale Net Acres: 90,000 Cedar Creek Anticline Net profits interest WY Niobrara UT Net Acres: 65,000 CO Growing Areas Texas Paradox…
Business Environment Exploration & Production Price Volatility U.S. Rig Counts 8 120 2,500 2,500 7 100 2,000 6 80 5 1,500 4 60 3 1,000 40 2 500 20 1 0 2010 2011 0 0 2010 2011 Gas Oil Oil Gas Total E&P Building…
Strategy Exploration & Production Significantly g y ggrow Fidelitys y earnings g and net asset value ((NAV)) by: y Accelerating oil drilling to obtain 50%+ oil production Focusing on the best basins in the Rockies, Texas &…
2011 Reserves: Transitioning to Oil Exploration & Production Natural Starting to grow oil reserves Gas Oil Total Additions will grow with rig count (Bcf) (MMBbls) (Bcfe) Removed PUDs (mainly natural gas that Balance at 12/31/10 448…
2012 Capital Expenditures: Investing for Today and Tomorrow ( in millions) Texas Paradox oduction 60 35 Heath Shale 20 Exploration & Pro Niobrara 25 Bakken Areas Leaseholds 160 25 2012 Total Approx. Other…
Bakken Mountrail County Exploration & Production Key development area (16,000 net acres) New field production record recently achieved 3,500 net BOPD operated Strong recent well results Over 50 future gross locations Currently have…
Bakken Stark County Key growth area Primary target Three Exploration & Production Forks formation Approx. 51,000 net acres Approx. pp 140 ggross potential locations Core block looks very promising, while far eastern…
Bakken Richland County Exploration & Production Recently established core 57,000 57 000 net acre block adjacent to prolific Elm Coulee Field Acquisition of 27,000 net acres closed 1Q 2012 Targeting Three Forks formation Approx.…
Niobrara Oil Play Exploration & Production Approx. 65,000 net acres EUR potential 200-300 MBO/well Currently drilling 3rd well 1st well disappointing Preparing to test 2nd well 12
Paradox Basin Hold approx. 75,000 net acres Exploration & Production Approx. 70 potential gross well sites with EUR 250-500 MBO/well Currentlyy drillingg 2nd well Evaluating both vertical and horizontal development…
Heath Shale Play Hold approx. 90,000 net acres Exploration & Production Currently drilling 2nd well 1st well on flow back EUR potential 165-220 MBO/well E&P Building A Strong America 14
2012 Outlook Exploration & Production 20% to 30% increase in oil production H d Position Hedge P iti as off March M h 1,1 2012 over 2011 levels 2012 2013 Led by growth in Bakken Natural Gas Natural Gas 12% to 16% decrease in…
Accelerating Oil Growth Exploration & Production Oil % of Total Production 50%+ Target Solid set of assets to grow from Selectively adding new oil assets 32% Significantly enhanced organizational capability 2006 2007 2008 2009…
MDU Resources Group, Inc. Exploration & Production Building A Strong America 17
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