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September 2013 Investor Update – Laredo Petroleum Inc.

Laredo Petroleum Inc. · Sep 22, 2013 · 131 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. September 2013 Investor Update – Laredo Petroleum Inc. – slide 1
    Investor Update September 2013 NYSE: LPI www.laredopetro.com
  2. September 2013 Investor Update – Laredo Petroleum Inc. – slide 2
    Welcome Ron Hagood Director, Investor Relations 2 NYSE: LPI www.laredopetro.com
  3. September 2013 Investor Update – Laredo Petroleum Inc. – slide 3
    Investor Day Agenda Strategic Overview Randy A. Foutch Corporate Perspective Pat Curth Depositional History of Midland Basin Mark Elliott Geoscience Toolbox Jeff Tanner Historical Drilling Activity John Whitehead Reserves &…
  4. September 2013 Investor Update – Laredo Petroleum Inc. – slide 4
    Laredos Approach to Superior Performance and Returns Strategic Overview Randy A. Foutch Chairman and Chief Executive Officer 5 NYSE: LPI www.laredopetro.com
  5. September 2013 Investor Update – Laredo Petroleum Inc. – slide 5
    Strategic Approach 2006 Laredo Petroleum Deliberate Founded Disciplined 2008 Acquired initial 4,000 acres in Permian Delineation Data Collection 2008 Drilled first vertical Wolfberry wells and Development initiated…
  6. September 2013 Investor Update – Laredo Petroleum Inc. – slide 6
    Laredo Petroleum Today Highquality acreage position in the fairway of the Midland Basin Midland Basin Toptier well results in multiple horizons Delaware Basin Significant resource potential: 10x existing reserves 1…
  7. September 2013 Investor Update – Laredo Petroleum Inc. – slide 7
    2013 Accomplishments Activity / Action Outcome Divested Anadarko Basin properties Pureplay Midland Basin exposure Transitioned from delineation to Industryleading well results with development toptier unit operating costs…
  8. September 2013 Investor Update – Laredo Petroleum Inc. – slide 8
    Experienced Leadership Executive Management Randy Foutch Chairman & Chief Executive Officer Jay Still Director, President & Chief Operating Officer Rick Buterbaugh EVP & Chief Financial Officer Pat Curth SVP Exploration & Land John…
  9. September 2013 Investor Update – Laredo Petroleum Inc. – slide 9
    Laredos Wells are Among the Best in the Midland Basin Lane Trust C/E 422HL Lower Wolfcamp 2,147 Sugg A 143 4HU Upper Wolfcamp 1,904 GlassGlass 10 153H Cline 1,886 Ranking of Top Reported Hz Wells 1,2 SuggA1432HU Upper Wolfcamp…
  10. September 2013 Investor Update – Laredo Petroleum Inc. – slide 10
    Laredos Proved Developed F&D is Setting the Bar Comparative F&D Proved Developed 1 16 14 13.33 13.48 12.22 12.31 12 /BOE 3Stream 11.31 10.68 9.84 10 8.44 8 6 4 2 0 LPI LPI LPI LPI Peer 1 Peer 2 Peer 3 Peer 4…
  11. September 2013 Investor Update – Laredo Petroleum Inc. – slide 11
    Identified Path for Growth 3,400 3,200 3,000 2,800 2,600 2,400 MMBOE (2Stream) 2,200 2,000 1,800 1,400 1,600 1,600 1,400 1,200 1,000 800 600 400 183 200 0 LPI Estimate Additional Identified Additional Total…
  12. September 2013 Investor Update – Laredo Petroleum Inc. – slide 12
    Size of The Prize Highquality acreage among the best in the Permian Premier data and science inventory Well results among the best in the basin 2 billion barrels of resource potential Embarking on the development of the…
  13. September 2013 Investor Update – Laredo Petroleum Inc. – slide 13
    Been There, Done That, And Know How to Build Value Corporate Perspective Pat Curth Sr. VP, Exploration and Land 14 NYSE: LPI www.laredopetro.com
  14. September 2013 Investor Update – Laredo Petroleum Inc. – slide 14
    Established Track Record Colt Resource Corp Lariat Petroleum Latigo Petroleum Laredo Petroleum Equity: Equity: Equity: Equity: First Reserve Warburg Pincus Warburg Pincus, Warburg Pincus 2.5x Return 3.0x Return JP Morgan 3x Return…
  15. September 2013 Investor Update – Laredo Petroleum Inc. – slide 15
    Common Elements For Success Work in mature, resourcerich basins and industry knowledgeable states Experienced technical staff Utilize the latest technologies Do the science upfront data driven Active coring and petrophysical…
  16. September 2013 Investor Update – Laredo Petroleum Inc. – slide 16
    Opportunities Have Changed Conventional Trap Reservoir Source Rock Unconventional Reservoir & Source Rock Shale Gas Shale Oil 17 NYSE: LPI www.laredopetro.com
  17. September 2013 Investor Update – Laredo Petroleum Inc. – slide 17
    Unconventional Resource Play: PermianGarden City Source Rock (the source is the reservoir) Reservoir Geometry Attributes Garden City Attribute Checklist Basin Depositional Framework Areal Extent Thickness Reservoir Shale Rock…
  18. September 2013 Investor Update – Laredo Petroleum Inc. – slide 18
    In the Right Place . . . at the Right Time Depositional History of Midland Basin Mark Elliott VP, Geology and Development 19 NYSE: LPI www.laredopetro.com
  19. September 2013 Investor Update – Laredo Petroleum Inc. – slide 19
    Concentrated Asset Portfolio Focused in Midland Basin Mitchell Howard 139,960 net acres1 63% held by production1 Sterling 91% average working interest2 Glasscock 85+ miles Multiple horizontal zones in addition to…
  20. September 2013 Investor Update – Laredo Petroleum Inc. – slide 20
    Perspective of Garden City Acreage Manhattan Compares to Garden City Acreage Position Philadelphia 21 NYSE: LPI www.laredopetro.com
  21. September 2013 Investor Update – Laredo Petroleum Inc. – slide 21
    LPI Acreage Ideally Positioned for Cline Shale LPI acreage Cline deposition axis Configuration at Time of Cline Deposition N 0 100 miles 22 NYSE: LPI www.laredopetro.com
  22. September 2013 Investor Update – Laredo Petroleum Inc. – slide 22
    LPI Acreage Ideally Positioned for Wolfcamp Shale LPI acreage Wolfcamp deposition axis Configuration at Time of Wolfcamp Deposition N 0 100 miles 23 NYSE: LPI www.laredopetro.com
  23. September 2013 Investor Update – Laredo Petroleum Inc. – slide 23
    Permian Basin: Present Day LPI acreage Cline deposition axis Wolfcamp deposition axis Present day axis Delaware Basin N 0 100 miles 24 NYSE: LPI www.laredopetro.com
  24. September 2013 Investor Update – Laredo Petroleum Inc. – slide 24
    Deposition Supports Cline Development Medial Distal Basin Proximal Toe of Basin Plain Plain Basin Plain Slope Distal Basin Plain Silica Rich, Brittle, SiltyShale Argillaceous Siltstone, Dominated packages with bioturbated,…
  25. September 2013 Investor Update – Laredo Petroleum Inc. – slide 25
    Deposition Supports Wolfcamp Development Medial/Distal Proximal Lower Slope/ Toe of Basin Plain Basin Plain Toe of Slope Slope LS base with skeletal grains, grading into Thick light to medium Silty Mudstone, High LS…
  26. September 2013 Investor Update – Laredo Petroleum Inc. – slide 26
    Laredo Situated Over Thickest Column of Sediment: WE West East A A Approx. 2,000 ft. of pay Cline Laredo Acreage 1 Modified from CoreLab, 2013 27 NYSE: LPI www.laredopetro.com
  27. September 2013 Investor Update – Laredo Petroleum Inc. – slide 27
    Laredo Situated Over Thickest Column of Sediment: NS North South B B Approx. 2,000 ft. of pay Cline Laredo Acreage 1 Modified from CoreLab, 2013 28 NYSE: LPI www.laredopetro.com
  28. September 2013 Investor Update – Laredo Petroleum Inc. – slide 28
    Laredos Acreage Advantage Positioned over both the Cline and Wolfcamp depositional axis Situated over the thickest column of sediment Debris flows at deposition charged reservoir creates permeability that results in toptier…
  29. September 2013 Investor Update – Laredo Petroleum Inc. – slide 29
    You Must Be Able to Read Between the Lines Geoscience Toolbox Jeff Tanner VP, Geosciences Technology and Exploration 30 NYSE: LPI www.laredopetro.com
  30. September 2013 Investor Update – Laredo Petroleum Inc. – slide 30
    Science Enhances Value Cores Logs Reservoir characterization 3D Seismic Optimize development plan maximize shareholder value 31 NYSE: LPI www.laredopetro.com
  31. September 2013 Investor Update – Laredo Petroleum Inc. – slide 31
    Vertical Program Supports Science Gathering Vertical Wolfberry program Clearfork provides science/data for Upper Spraberry horizontal program tool box Lower Spraberry Dean Upper Wolfcamp Middle Wolfcamp Lower Wolfcamp…
  32. September 2013 Investor Update – Laredo Petroleum Inc. – slide 32
    Information Insight Impact Garden City Data Inventory 1 Howard Mitchell 3,400 of whole cores in objective section 13 whole cores 650 SWC samples 34 singlezone tests from objective Sterling section (Spraberry to Ellenberger)…
  33. September 2013 Investor Update – Laredo Petroleum Inc. – slide 33
    Key Shale Rock Play Attributes Integration of the shale petrophysical attributes has a direct correlation to the performance of a well the performance of a well Mineralogy (Brittleness) Porosity/Permeability (Rock Quality)…
  34. September 2013 Investor Update – Laredo Petroleum Inc. – slide 34
    Shale Geochemistry1 How it Works Pore Burial Maturity Oil Gravity Organic Water Recovery GOR Pressure Depth (Ro) (API) Porosity Saturation Factor Gradient 0.5 LPIs Wolfcamp & Cline Maturity Range 0.6 0.7 Oil 0.8…
  35. September 2013 Investor Update – Laredo Petroleum Inc. – slide 35
    Garden City Shale Reservoir Quality1 Wolfcamp Rock Quality Cline Porosity Storage Capacity Permeability Deliverability Permeability Gas Saturation Clay Wolfcamp Cline Mineralogy Intersecting Fracture Planes Low…
  36. September 2013 Investor Update – Laredo Petroleum Inc. – slide 36
    Garden City Shale Geochemistry Organic Richness (TOC)1 Organic Increasing Organic Content Depth Garden City Lean 7,500 Upper Wolfcamp Upper Wolfcamp 8,000 Middle Wolfcamp Middle Wolfcamp 8,500 Lower Wolfcamp Lower…
  37. September 2013 Investor Update – Laredo Petroleum Inc. – slide 37
    Garden City Geochemistry Thermal Maturity1 Maturity Organic Matter Conversion and Maturity (PI vs Ro) Conversion of More Oil More Porosity TOC to Oil & Gas More Drive 1 Laredo internal analysis modified from CoreLab,…
  38. September 2013 Investor Update – Laredo Petroleum Inc. – slide 38
    Laredos PermianGarden City Shales1 Significant oil in place in multiple stacked zones Spraberry Wolfcamp Cline A/B/W Combined Depth (ft) 5,000 7,000 7,000 8,500 9,000 9,500 9,500 10,500 5,000 10,500 Average Thickness (ft) 1,500…
  39. September 2013 Investor Update – Laredo Petroleum Inc. – slide 39
    Laredos Proprietary Analysis Open-Hole Logs + Cores / Science = LPI Proprietary Analysis 40 NYSE: LPI www.laredopetro.com
  40. September 2013 Investor Update – Laredo Petroleum Inc. – slide 40
    Science Impact to Vertical Program Three vertical wells in the same section 2 mile Basic Adv EUR Well Name logs logs Seismic MBOE Lane TrustD45P 90 2 mile Lane TrustD45N 159 Lane TrustD45F 355 LPI acreage 41…
  41. September 2013 Investor Update – Laredo Petroleum Inc. – slide 41
    Science Makes Good Acreage Better LANE TRUSTD45N LANE TRUSTD45F Sugg 3D Top Devonian Vertical Wolfberry Vertical Wolfberry time structure map Deep structural closure on new 3D seismic volume 2Stream 30day Avg IP: Lane…
  42. September 2013 Investor Update – Laredo Petroleum Inc. – slide 42
    Science Impact to Horizontal Program HPV, Brittleness Based on analysis of the advanced log suite Lower Wolfcamp Highest HPV in the interval Most brittle rock in the interval Low frac gradient for optimal stimulation Landed…
  43. September 2013 Investor Update – Laredo Petroleum Inc. – slide 43
    Understanding Fracability is a Key Fracability = brittle shales that hydraulically fracture during completion work the best during completion work the best ROCK MECHANICS Log data from multiple vertical wells with 300 Cline…
  44. September 2013 Investor Update – Laredo Petroleum Inc. – slide 44
    Applying Fracability to All Proven Zones Log brittleness helps in targeting all four producing horizontal intervals Brittleness is a function of clay and water content Brittle rock targeted in landing laterals Brittleness predictions…
  45. September 2013 Investor Update – Laredo Petroleum Inc. – slide 45
    Making Better Acreage Great Through 3D Seismic More science makes better acreage great 46 NYSE: LPI www.laredopetro.com
  46. September 2013 Investor Update – Laredo Petroleum Inc. – slide 46
    Making Better Acreage Great Through 3D Seismic 47 NYSE: LPI www.laredopetro.com
  47. September 2013 Investor Update – Laredo Petroleum Inc. – slide 47
    Unconventional Resource Play: PermianGarden City Source Rock (the source is the reservoir) Reservoir Geometry Attributes Garden City Attribute Checklist Basin Depositional Framework Areal Extent Thickness Reservoir Shale Rock…
  48. September 2013 Investor Update – Laredo Petroleum Inc. – slide 48
    You Cant Argue With the Facts . . . And We Have Lots of Them Historical Drilling Activity John Whitehead VP, Operations and Engineering 49 NYSE: LPI www.laredopetro.com
  49. September 2013 Investor Update – Laredo Petroleum Inc. – slide 49
    Vertical Wolfberry Program Clearfork Solid rate of return Upper Spraberry Lower Spraberry Dean Impressive well results Upper Wolfcamp Middle Wolfcamp Wolfberry Strat Holds acreage position Lower Wolfcamp Column Canyon…
  50. September 2013 Investor Update – Laredo Petroleum Inc. – slide 50
    Vertical Wolfberry: Confirms Quality of Acreage1 Mitchell Howard 800 vertical Wolfberry wells across acreage 300 deep vertical Wolfberry wells through the Atoka Sterling Glasscock Average well density is 85+ miles…
  51. September 2013 Investor Update – Laredo Petroleum Inc. – slide 51
    Vertical Wolfberry: Strong Results Across Acreage 2 Stream Production Data1 Well Name 24Hr Avg IP 30Day Avg IP Vertical BOE/D BOE/D Howard Mitchell SUGGC165C 1,389 630 Curry 14 2 880 451 Guthrie Trust A 1901 730 440 Calverly…
  52. September 2013 Investor Update – Laredo Petroleum Inc. – slide 52
    Vertical Wolfberry: Holds Acreage 140 Vertical Wells Required to Hold Acreage Position Vertical Wolfberry maintains 120 acreage position 100 Minimal capital required for Vertical Wells 80 vertical program 60…
  53. September 2013 Investor Update – Laredo Petroleum Inc. – slide 53
    Active Horizontal Program Continually Optimized LPI's Historic Midland Basin Hz Activity 50 900 45 800 40 700 35 600 BOE/D (2stream) 30 Avg. 30Day IP Hz Well Count 500 25 400 20 300 15 200 10 5…
  54. September 2013 Investor Update – Laredo Petroleum Inc. – slide 54
    Proven Multizone Horizontal Performance Average 30day IP results from the Upper, Middle and Lower Wolfcamp at Howard Mitchell high end or exceeding type curve Horizontal Total of Long Lateral Zone Completions1 30Day Average…
  55. September 2013 Investor Update – Laredo Petroleum Inc. – slide 55
    Horizontal 3Stream Conversion Upper Wolfcamp Gas NGL Gas Hypothetical Well 19% 15% 23% 15%20% Increase Oil 77% Oil 66% 56 NYSE: LPI www.laredopetro.com
  56. September 2013 Investor Update – Laredo Petroleum Inc. – slide 56
    TopTier Results From Each Horizon Date 24Hour 30Day Well Name Zone Lateral Length Completed Peak IP Average IP feet BOE/D 3Stream BOE/D 3Stream Sugg A 143 HU Upper Wolfcamp 6/6/2013 7,033 1,904 1,290 SuggC271HM Middle…
  57. September 2013 Investor Update – Laredo Petroleum Inc. – slide 57
    Notable Industry Wells vs Laredos Top Wells1 Peak 24Hour PXD Mabee k 1H 1,572 BOE/D 3Stream Mitchell Wolfcamp B Howard Mitchell Martin LPI GlassGlass 10153H 1,886 BOE/D Cline EGN Lavaca 38 101H 861 BOE/D Sterling Upper…
  58. September 2013 Investor Update – Laredo Petroleum Inc. – slide 58
    Laredos Wells are Among the Best in the Midland Basin Lane Trust C/E 422HL Lower Wolfcamp 2,147 Sugg A 143 4HU Upper Wolfcamp 1,904 GlassGlass 10 153H Cline 1,886 Ranking of Top Reported Hz Wells 1,2 SuggA1432HU Upper Wolfcamp…
  59. September 2013 Investor Update – Laredo Petroleum Inc. – slide 59
    Lateral Spacing Reservoir Simulation1 Distance between Distance between wells 1,500 Ft. wells 500 Ft. Reservoir Modeling Goals Optimize economics 20year reservoir drainage Maximize recovery simulation supports 660ft spacing…
  60. September 2013 Investor Update – Laredo Petroleum Inc. – slide 60
    SidebySide Conceptual Design 1 mile SidebySide Design Two sidebyside wells both drilled in one zone Lateral lengths: 7,000 7,500 feet Spacing: 660 feet 3 miles Objectives Optimize spacing Minimize interference Frac…
  61. September 2013 Investor Update – Laredo Petroleum Inc. – slide 61
    Microseismic Data Supports Development Concept Top view Preliminary Subsurface Data Supports 660ft lateral spacing Average frac height 230 feet Confirmed primary fracture azimuth Offset Well Test Well Crosssection…
  62. September 2013 Investor Update – Laredo Petroleum Inc. – slide 62
    SidebySide Program Early Results 2Stream Production and Initial results are supporting Type Curve CUM data 660ft spacing Sugg A 143 4HU CUM Production Cumulative Production Comparison Bbl Mcf BOE Initial SideBySide Wells vs…
  63. September 2013 Investor Update – Laredo Petroleum Inc. – slide 63
    Laredos Wells are Among the Best in the Midland Basin Lane Trust C/E 422HL Lower Wolfcamp 2,147 Sugg A 143 4HU Upper Wolfcamp 1,904 GlassGlass 10 153H Cline 1,886 Ranking of Top Reported Hz Wells 1,2 SuggA1432HU Upper Wolfcamp…
  64. September 2013 Investor Update – Laredo Petroleum Inc. – slide 64
    660ft Horizontal Spacing Confirmed Initial development phase will utilize 660ft spacing of lateral, supported by: Reservoir modeling Microseismic data gathered Initial Upper Wolfcamp sidebyside results Science / data driven…
  65. September 2013 Investor Update – Laredo Petroleum Inc. – slide 65
    Conceptual Stacked Lateral Program Stacked Lateral Design Evaluate multiwell stacked laterals Lateral lengths: 7,000 7,500 feet Test pad layout and scheduling of operations on multiwell pads Test 2stack, 3stack and…
  66. September 2013 Investor Update – Laredo Petroleum Inc. – slide 66
    Stacked Lateral Program First 3well stacked pad currently fracing; initial production impact in 4Q13 Objectives Optimize vertical distance between laterals Minimize interference Optimize frac design and monitoring…
  67. September 2013 Investor Update – Laredo Petroleum Inc. – slide 67
    Laredos Drilling Success Horizontal wells from each horizon among the best in the Midland Basin More than 75 horizontal wells drilled in the Midland Basin Determined appropriate lateral spacing for development program The…
  68. September 2013 Investor Update – Laredo Petroleum Inc. – slide 68
    When To Book . . . The Resource is There Reserves & Resource Potential Gary Smallwood VP, Reservoir Modeling and Field Development Planning 69 NYSE: LPI www.laredopetro.com
  69. September 2013 Investor Update – Laredo Petroleum Inc. – slide 69
    2013 MidYear Reserve Update 200 189 28 183 150 (29) (5) MMBOE (2Stream) Permian Only 100 50 0 Total Proved Anadarko 1H13 Permian LPI Estimate LPI Estimate 1 Reserves Basin Production 1H13 Reserve Total Proved…
  70. September 2013 Investor Update – Laredo Petroleum Inc. – slide 70
    2013 MidYear Permian Reserve Update 200 Continued Permian growth in 180 proved developed reserves 160 140 120 MMBOE PUD 100 42% PDP 80 60 58% 40 20 0 Oil Natural Gas (1,300 btu) Ryder Scott LPI Internal Est. 1…
  71. September 2013 Investor Update – Laredo Petroleum Inc. – slide 71
    Vertical Wolfberry Presented on 2stream basis 1,000 Deep Vertical Wolfberry BOE/D 100 Normalized production data 140 MBOE for 300 deep vertical 10 Wolfberry wells shown Working to drive down costs 1 Months LPI…
  72. September 2013 Investor Update – Laredo Petroleum Inc. – slide 72
    Hz Upper Wolfcamp Type Curve Type Curve 23 long lateral wells presented Presented on 2stream basis 1,000 EUR MBOE 715 800 30Day IP BOE/D 675 754 % Oil (IP Life) 77% 69% BOE/D 100 758 MBOE Bfactor for all Permian Hz type…
  73. September 2013 Investor Update – Laredo Petroleum Inc. – slide 73
    Hz Middle Wolfcamp Type Curve Type Curve 2 long lateral wells presented Presented on 2stream basis 1,000 EUR MBOE 600 700 30Day IP BOE/D 569 659 % Oil (IP Life) 77% 69% BOE/D 100 650 MBOE Bfactor for all Permian Hz…
  74. September 2013 Investor Update – Laredo Petroleum Inc. – slide 74
    Hz Lower Wolfcamp Type Curve Type Curve 4 long lateral wells presented Presented on 2stream basis 1,000 EUR MBOE 605 730 30Day IP BOE/D 574 690 % Oil (IP Life) 77% 69% BOE/D 100 668 MBOE Bfactor for all Permian Hz type…
  75. September 2013 Investor Update – Laredo Petroleum Inc. – slide 75
    Hz Cline Type Curve BOEPD/Frac Stage normalized data from 4 Long lateral wells presented 35 wells presented 100 1000 BOE/D BOE/D 10 100 10 1 Months Months EUR MBOE 550 690 30Day IP BOE/D 663 828 Bfactor for all…
  76. September 2013 Investor Update – Laredo Petroleum Inc. – slide 76
    MultiZone Resource Potential Vertical 100% Spraberry 100% Derisked Acreage UWC 52% 48% Vt wells MWC 52% 48% Core analysis LWC 52% 48% Seismic data Cline 81% 19% Singlezone test Hz well test ABW 100% Canyon 100% Strawn…
  77. September 2013 Investor Update – Laredo Petroleum Inc. – slide 77
    Identified Resource Potential 3,400 3,200 3,000 2,800 2,600 2,400 MMBOE (2Stream) 2,200 2,000 1,800 1,400 1,600 1,600 1,400 1,200 1,000 800 600 400 183 200 0 LPI Estimate Additional Identified Additional Total…
  78. September 2013 Investor Update – Laredo Petroleum Inc. – slide 78
  79. September 2013 Investor Update – Laredo Petroleum Inc. – slide 79
    Building a WellOiled Machine Development Overview Jay Still President and Chief Operating Officer 80 NYSE: LPI www.laredopetro.com
  80. September 2013 Investor Update – Laredo Petroleum Inc. – slide 80
    Identified Resource Potential 15% of D+C capital delineating additional resources 3,400 3,200 3,000 2,800 2,600 85% of D+C capital focused on 2,400 development 1.4 B Bbls MMBOE (2Stream) 2,200 2,000 1,800 1,400 1,600…
  81. September 2013 Investor Update – Laredo Petroleum Inc. – slide 81
    Laredo Midland Basin Development Strategy Maximize value to our shareholders by optimizing a development plan for our Garden City assets Convert Permian resource potential into proven NAV Build an extremely efficient hydrocarbons…
  82. September 2013 Investor Update – Laredo Petroleum Inc. – slide 82
    Concentration of Resources Drives Efficiencies Not to scale Represents 5,000 ft 3 sections / 64 wells 4 Zones Reserves: 44 MMBOE 1 rig program: 5+ years D+C 83 NYSE: LPI www.laredopetro.com
  83. September 2013 Investor Update – Laredo Petroleum Inc. – slide 83
    Strategic Development Considerations Maximizing Optimizing Field Value Operational Efficiency Reducing Minimizing Offset Well Production Impact Cycle Time 84 NYSE: LPI www.laredopetro.com
  84. September 2013 Investor Update – Laredo Petroleum Inc. – slide 84
    Operational Efficiencies with Pad Drilling Utilize spudder rig to drill vertical section of well Reduces mob/demob time and costs with walking rigs on multiwell pads Utilize common drilling fluid systems between wells Reduces time…
  85. September 2013 Investor Update – Laredo Petroleum Inc. – slide 85
    Efficiency Gains from Pad Drilling Drill and Complete Days For Individual Well 1 2 5 15 30 52 0 20 Days 40 60 Efficiency Gain for 4Well Pad vs 4Well Individual Program 52 52 52 52 3 135 15 18 2 40Day Efficiency…
  86. September 2013 Investor Update – Laredo Petroleum Inc. – slide 86
    Production Impact From MultiWell Pads One Rig, 4Well Stacked Pad Drilling Example 3,500 3,000 Production Impact 2,500 (Net BOE/D) 2,000 1,500 Production 2nd Pad 1,000 Production 1st Pad 500 Wells Spud, Drill and…
  87. September 2013 Investor Update – Laredo Petroleum Inc. – slide 87
    4Well Development Strategies 4Stacked Laterals 2Stacked Laterals 4Horizontal Laterals 88 NYSE: LPI www.laredopetro.com
  88. September 2013 Investor Update – Laredo Petroleum Inc. – slide 88
    Offset Pad Development Offset pad configuration provides the optimal geometry to fully drain a complete section 89 NYSE: LPI www.laredopetro.com
  89. September 2013 Investor Update – Laredo Petroleum Inc. – slide 89
    Fluid / Gas Management Plan Water well pit Water wells Well pad Multi line corridor Oil gathering Off lease wtr disposal HP gas lift/HP Sale LP gas gathering Rig fuel gas Flowback water Treated water SR/ET water…
  90. September 2013 Investor Update – Laredo Petroleum Inc. – slide 90
    LGS and Medallion Pipeline Map Colorado City Crude Complex Medallion Pipeline to Colorado City Laredo Glasscock Station Plains Pipeline Plains Pipeline Laredo Connector Pipeline Plains Pipeline Laredo…
  91. September 2013 Investor Update – Laredo Petroleum Inc. – slide 91
    Laredos Proved Developed F&D is Setting the Bar 16 Comparative F&D Proved Developed 1 13.48 14 12.31 13.33 12.22 12 10.68 11.31 9.84 10 /BOE 8.44 8 6 4 2 0 LPI LPI LPI LPI Peer 1 Peer 2 Peer 3 Peer 4 Upper…
  92. September 2013 Investor Update – Laredo Petroleum Inc. – slide 92
    Enhancing Capital Efficiency Through 1H13 Laredo has reduced horizontal well costs by approximately 5%8% in each of the proven zones Ongoing cost improvement initiatives: Multiwell pad development Utilizing more efficient drilling…
  93. September 2013 Investor Update – Laredo Petroleum Inc. – slide 93
    Cost Savings Initiatives Pad drilling efficiencies Multiwell frac efficiencies Negotiated service cost reductions Coil Pumping services Wireline logging Frac tank Optimizing drilling and completions operations Proppant sourcing…
  94. September 2013 Investor Update – Laredo Petroleum Inc. – slide 94
    Permian Drilling and Completion Costs 12 Drilling and Complete Cost 10.0 10 9.0 8.5 8.4 7.8 8.0 8 MM 7.2 6.8 6 4 2.5 2.4 2.0 1.9 2 0 Vertical UW Cline 2012 Actual 2013 YTD Actual Current AFE 2014…
  95. September 2013 Investor Update – Laredo Petroleum Inc. – slide 95
    ROR vs Well Capital Costs Permian Well Costs Upper Middle Lower (MM) Cline Vertical Wolfcamp Wolfcamp Wolfcamp 2013 YTD 7.8 7.8 8.5 9.0 2.4 2013 Target 7.2 7.2 7.9 8.4 2.0 2014 Target 6.8 6.8 7.5 8.0 1.9 90/Bbl and 3.75/Mcf…
  96. September 2013 Investor Update – Laredo Petroleum Inc. – slide 96
    Estimated 2014 Capital Program Total Capital 2014 900 MM 1.0 B 15% 8% 5% 3% Number of Rigs / Wells 6 Horizontal Rigs Delineation: 12 14 42% Development: 50 60 27% 5 Vertical Rigs Development: 110 120 97 NYSE: LPI…
  97. September 2013 Investor Update – Laredo Petroleum Inc. – slide 97
    Permian Production Growth 70 60 50 MBOE/D 40 30 20 10 0 2011 2012 2013P 2014P 2015P 2016P 98 NYSE: LPI www.laredopetro.com
  98. September 2013 Investor Update – Laredo Petroleum Inc. – slide 98
    Comparative Capital Efficiency 500% 450% Laredos toptier Permian capital 400% efficiency expected to improve as we 350% transition to more development drilling TTM Capital Efficiency 300% 250% 200% 150% 100%…
  99. September 2013 Investor Update – Laredo Petroleum Inc. – slide 99
    Laredo Midland Basin Development Planning 100 NYSE: LPI www.laredopetro.com
  100. September 2013 Investor Update – Laredo Petroleum Inc. – slide 100
    Get it to the Right Place at the Right Time Product Marketing Dan Schooley VP, Marketing 101 NYSE: LPI www.laredopetro.com

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