Laredo Petroleum Today High-quality, contiguous acreage position in the heart of the Midland Midland Basin Basin Top-tier well results in multiple horizons Delaware Basin Significant resource potential: 10x existing reserves…
Concentrated Asset Portfolio Focused in Midland Basin Mitchell Howard 144,107 net acres1 Proven Hz development in four stacked zones (Upper, Middle & Sterling Glasscock Lower Wolfcamp and Cline) yields 360,000 net…
Permian Reserves 1 By Product 577% Production Replacement at 12.00/BOE Permian Reserve Growth 45% 250 50 55% 45 204 200 40 160 35 Oil Natural Gas (1,300 btu) 150 30 MMBOE /BOE 25 By Category 100 101 20…
Horizontal Development Inventory 1 3,500 horizontal locations have Howard Mitchell been identified for development in the initial four zones More than 45 years of drilling inventory at current pace Glasscock Sterling 85+…
Low-Risk Horizontal Inventory on De-Risked Acreage Upper Middle Lower Market Valuation Cline Wolfcamp Wolfcamp Wolfcamp Number of completions 1 36 15 6 7 LPI type curve EUR (2-stream) 758 MBOE 650 MBOE 668 MBOE 620 MBOE % EUR…
2014 Approved Capital Budget Total Capital - 2014 Drilling & Completion 1,000 MM 840 MM Number of Rigs / Wells 6-7 Horizontal Rigs Development Wells: 90% Delineation Wells: 10% 5 Vertical Rigs Development: 120 - 125…
Consistent Permian Production Growth 70 Production growth is driven 60 by a rapid increase in 50 horizontal volumes1 MBOE/D 1 40 33.4 - 34.8 30 25.0 20.7 20 14.8 10 0 2011 2012 2013 2014P 2015P 2016P 1 Two-stream…
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 vertical well density is 85+…
Significant Data Inventory Garden City Data Inventory 1 3,400 of whole cores in objective Howard section Mitchell 13 whole cores 650 SWC samples 48 single-zone tests from objective section (Spraberry to Ellenberger) 8,000…
Proven Multi-zone Horizontal Performance Commercial development has Mitchell been proven for initial four Howard zones from 103 horizontal wells Horizontal Total of Long Lateral 180-Day Zone Completions1 Cumulative Prod.2…
Production History Supports Type Curves 150 150 Upper Wolfcamp Lower Wolfcamp 104% of Type Curve 110% of Type Curve 758 MBOE 100 Two-stream 100 668 MBOE MBOE Two-stream MBOE 50 50 0 0 0 90 180 270 360 0 90 180 270…
Northern Midland Basin Creaming Curve (Hz since 2008)1 Laredos well results continue to improve 400 350 LPI - Reagan LPI - Glasscock First 3 months cumulative production (MBOE) 300 250 Apache 200 Parsley Pioneer 150…
Concentration of Resources Drives Efficiencies Not to scale Represents 5,000 ft 3 sections / 64 wells / 4 Zones 4-stacked development program recovers 44 MMBOE of reserves at 45% ROR Single-zone development (UWC) only…
Transitioning to Muti-Zone Development in 2014 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 Efficiency gains are…
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 4-Well Pad vs 4-Well Individual Program 52 52 52 52 3 135 15 18 2 40-Day Efficiency…
Production Impact From Multi-Well Pads One Rig, 4-Well Stacked Pad Drilling Example 6,000 5,000 Production 2nd Pad Production Impact (Gross BOE/D) 4,000 Production 1st Pad 3,000 2,000 1,000 Wells Spud, Drill and…
Production Corridor Oil Gathering Station Oil Takeaway Pipeline LMS Owned Gathering Line Gas Lift Compression Facility LMS Owned Gathering Line Production corridor can accommodate the 448 horizontal wells necessary to…
Cost Savings Initiatives Pad drilling efficiencies Multi-well frac efficiencies Negotiated service cost reductions Coil Pumping services Wireline logging Frac tank Optimizing drilling and completions operations Proppant sourcing…
ROR vs Well Capital Costs Permian Well Costs Upper Middle Lower (MM) Cline Vertical Wolfcamp Wolfcamp Wolfcamp 2014 Budget 7.4 7.4 8.1 8.6 2.2 2014 YE Target 6.8 6.8 7.5 8.0 1.9 90/Bbl and 3.75/Mcf 70% 60% 50% 4-stack ROR…
Sales Price Diversification1 Firm transportation out of the Permian 13,000 BOPD committed to Longhorn, increasing annually to 22,000 BOPD in 4 years Cushing Wichita Falls 10,000 BOPD committed to BridgeTex Colorado City 2014…
Preserving Financial Flexibility 1.3 billion of liquidity1 1,200 1,000 Credit Facility - Borrowing Base Growing borrowing base 800 MM 600 No near-term maturities 400 200 Strong financial metrics - 1,500 Debt…
Oil Hedges Open Positions As of April 1, 2014 (1) 2014 2015 2016 2017 2018 Total OIL (2) Puts: Hedged volume (Bbls) 405,000 456,000 - - - 861,000 Weighted average price (/Bbl) 75.00 75.00 - - - 75.00 Swaps: Hedged volume (Bbls)…
Natural Gas Hedges Open Positions As of April 1, 2014 (1) 2014 2015 2016 2017 2018 Total (2) NATURAL GAS Swaps: Hedged volume (MMBtu) 4,950,000 - - - - 4,950,000 Weighted average price (/MMBtu) 4.32 - - - - 4.32 Collars: Hedged…
Laredo Investment Opportunity High-quality acreage position in the fairway of the Midland Basin Significant resource potential: 10x existing reserves Top-tier well results in multiple horizons Stacked laterals optimizing…
Appendix
Permian Basin: Present Day LPI acreage Cline deposition axis Wolfcamp deposition axis Present day axis Delaware Basin N 0 100 miles 30 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 31 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 32 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…
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