Barclays CEO Energy-Power Conference September 2, 2014
Concentrated Asset Portfolio Focused in Midland Basin 154,374 net acres1 Proven Hz development in four stacked Howard Mitchell zones (Upper, Middle & Lower Wolfcamp and Cline) Potential additional zones for Hz development…
Horizontal Development Process 1 3,700 horizontal locations have been identified for development in the initial four zones 50% of acreage is ready for multi-zone development in initial four zones with potential in additional…
Recent Acreage Acquisitions Acquired 9,741 net acres for 203 million Expected to add 280 gross horizontal drilling locations and 142 MMBOE of net resource potential Increases working interest in current leasehold 7,700 net acres…
Permian Production Growth Initial Delineation Accelerated Delineation Development Testing Multi-well Pad Development 40 35 30 25 MBOE/D 20 15 10 5 0 1Q-11 2Q-11 3Q-11 4Q-11 1Q-12 2Q-12 3Q-12 4Q-12…
Significant Data Confirms Acreage Quality Data drives development Howard plan optimization Mitchell Data inventory supported by tests from 875 vertical wells 3,700 of whole cores in objective section 14 whole cores 650 SWC…
Laredos Earth Model Optimizes Acreage Development Analysis shows correlation between earth model and actual test results The Earth Model Field Development Operations Where Technology High-grading of acreage Hydraulic Frac Design…
Laredos Top 15 Horizontal Wells Outstanding productivity in all four zones 30-day IP Rate 30-day IP Rate Lateral Peak 24-hr Peak 30-day as a % of per 1,000 Well Name Zone Length IP Rate1 Avg IP Rate1 Type Curve2 Lateral Feet1…
Proven Multi-Zone Horizontal Performance Commercial development has been proven for initial four zones from 122 horizontal wells Total of 30-Day Avg. IP Rate per Zone Completions1 1,000 Lateral Feet Short Long BOE/D BOE/D…
Concentration of Resources Drives Efficiencies Not to scale Represents 5,000 ft Laredo is focused on developing the entire resource and maximizing operational efficiency by drilling stacked laterals on multi-well pads and…
Muti-Zone Development Stacked Lateral 4-Stacked 3-Stacked 2-Stacked Development 2014 program expected 60 wells total to drill 60 stacked lateral wells utilizing 20 multi-well pads Drilling efficiencies from stacked laterals are…
Production Corridor Oil Gathering Station Oil Takeaway Pipeline Oil Gathering Line Gas Lift Compression Facility Gas Gathering Line Production corridors leverage Laredos resource concentration and contiguous acreage…
Production Corridor Benefits Crude Oil Realized pricing uplift on volumes delivered into gathering system versus trucked volumes Sustainable management of lower crude oil inventories Safety and emissions benefits of minimized truck…
Initial 10,000 Lateral Test Results Preliminary results suggest IRRs of 50% - 100% on incremental capital 200 Upper Wolfcamp Lateral: 9,350 BOE/Day/1000 150 100 50 0 0 30 Days 60 90 300 Cline Lateral: 9,700 250…
Sales Price Diversification1 Firm transportation out of the Permian 13,000 BOPD committed to Longhorn, increasing annually to 22,000 BOPD in 4 Cushing years Wichita Falls Colorado City 10,000 BOPD committed on BridgeTex…
Medallion Pipeline Laredo is anchor shipper with committed volumes of 10,000 BOPD increasing to 30,000 BOPD over the next three years Provides access to premium pricing and WTI or U.S. Gulf Coast markets (LLS) while avoiding…
Laredo Investment Opportunity High-quality acreage position in the fairway of the Midland Basin Significant resource potential: 8x existing reserves in currently delineated acreage and zones Top-tier well results in multiple…
Appendix
Permian Basin: Present Day LPI acreage Cline deposition axis Wolfcamp deposition axis Present day axis Delaware Basin N 0 100 miles 25 NYSE: LPI www.laredopetro.com
Laredo Situated Over Thickest Column of Sediment: W-E West East A A Approx. 2,000 ft. of pay Cline Laredo Acreage 1 Modified from Core-Lab, 2013 26 NYSE: LPI www.laredopetro.com
Laredo Situated Over Thickest Column of Sediment: N-S North South B B Approx. 2,000 ft. of pay Cline Laredo Acreage 1 Modified from Core-Lab, 2013 27 NYSE: LPI www.laredopetro.com
Laredos Permian-Garden 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…
Low-Risk Horizontal Inventory on De-Risked Acreage Upper Middle Lower Market Valuation Cline Wolfcamp Wolfcamp Wolfcamp Number of completions 1 44 18 10 10 LPI type curve EUR (2-stream) 758 MBOE 650 MBOE 668 MBOE 620 MBOE % EUR…
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