A subsurface technical description of a major natural gas play in West Texas.

1. Ouachita Gas Fairway Unlocking Multiple Plays in a Developing Resource Presented to Ft. Worth SIPES Chapter March 27, 2009

4. Historical Basin Development Elsinore, 1958 (Devonian, Ellenburger) 236 BCF 50 wells 11,500’ depth Pakenham, 1994 (Thrust Front Strawn) 11 BCF 178 wells 11,700’ depth Brown Bassett, 1959 (Ellenburger) 1.8 TCF 143 wells 14,500’ depth Geaslin, 1999 (Wolfcamp) 30 BCF 117 wells 7,500’ depth McKay Crk, 1979 (Caballos) 13.2 BCF 10 wells 7000’ depth Thistle, 1984 (Caballos) 4.7 BCF 15 wells 4,000’ depth Gomez, 1966 (Ellenburger) +5.2 TCF 224 wells 25,000’ depth Puckett, 1957 (Devonian, Ellenburger) 4.2 TCF 106 wells 13,200’ depth Grey Ranch, 1968 (Devonian, Ellenburger) 648 BCF 18 wells 15,500’ depth Pinon, 1987 (Caballos, Tesnus) 300 BCF 620 wells 4,500’ - 8,500’ depth Pakenham, 1994 (Wolfcamp) 113 BCF 178 wells 7,500’ depth West Texas Producing Zone Map Courtesy of Midland Map Co.

6. Tectonic Evolution Paleogeographic Reconstruction by Dr. Ron Blakey ( [email_address] ) Department of Geology , Box 4099 Northern Arizona University Flagstaff, AZ 86011 http://jan.ucc.nau.edu/~rcb7/nam.html

7. Ordovician 470 mya Tobosa Basin Ancestral Permian Basin Ordovician Shelf Margin Deep Water Deposition Platform Carbonates © PALEOMAP PROJECT Used by permission

8. Ordovician 450 mya © PALEOMAP PROJECT Used by permission

9. Silurian 430 mya © PALEOMAP PROJECT Used by permission

10. Devonian 400 mya © PALEOMAP PROJECT Used by permission

11. Devonian 385 mya © PALEOMAP PROJECT Used by permission

12. Devonian 360 mya © PALEOMAP PROJECT Used by permission

13. Mississippian 345 mya © PALEOMAP PROJECT Used by permission

14. Mississippian 325 mya © PALEOMAP PROJECT Used by permission

15. Pennsylvanian 315 mya Compressive collision of North America and South America involves several hundred miles of foreshortened section The Ouachita Thrust Belt through multiple stacked intervals separated by imbricate thrust faults accommodates this large volume of deep water sediments including deep water carbonates, fine grained turbidite sands and shales © PALEOMAP PROJECT Used by permission

16. Typical Ouachita Cross Sections Reed & Strickler, Structural Geology of the Marathon Thrust Belt, WTGS Field Guide, 1990

17. Valverde Basin Pinon Field 5.1 TCF (EUR-3P) 4,000’-8,500’

18. Stratigraphy & Cross Section Diagram from SandRidge Energy, Inc. Presented at Goldman Sachs Global Energy Conference 1/12/2008 EUR 4.0 bcf/well EUR 40.0 bcf/well EUR 7.3 bcf/well EUR 2.0 bcf/well EUR 1.5 bcf/well

19. Stratigraphic Correlation Reed & Strickler, Structural Geology and Petroleum Exploration of the Marathon Thrust Belt, West Texas, 1990

20. Fairway Dimensions Ouachita Play Fairway Ouachita Play Fairway 25 miles 200 miles Caballos Tested 4,800 mcf CAOF Pinon Field 5.1 TCF EUR – 3P Caballos Tested 1,950 mcf 16/64” choke Deep 15,000’ Shallow 3,000’

21. Regional Acreage Play Ouachita Play Fairway Ouachita Play Fairway During the last three years over 1.5 million acres put under lease. However, many leases will turn over during 2009/2010.

22. Pipeline Infrastructure Waha Hub Market Price Point Grey Ranch CO2 Processing ROC Plant CO2 Processing In July 2008, Occidental and SandRidge announced a joint venture to build and operate the Century CO 2 Gas Plant. Combined with existing plants this will allow treating of up to 1.0 Bcf/day by year end 2011. Total cost will be $1.1 billion and includes a 160 mile pipeline. OXY will net an estimated 450 MMCFD of CO 2 for enhanced oil recovery projects.

23. Pinon Field – Sand Ridge Energy Sand Ridge Energy has drilled > 500 new wells in Pinon Field since acquiring the field in 2006. The field currently is producing 300 MMCFPD with plans to increase production when additional gas processing facilities are completed in 2010. Wells are permitted for both Ouachita (8,500’) and sub-thrust Paleozoic tests (12,500’). Area of Sub-thrust Paleozoic Structure

25. SandRidge 3D Seismic Program

26. Multiple Thrust Plates Defined by 3D Seismic

27. Four Thrust Sheets Dugout Creek Thrust Haymond Thrust Frog Creek Thrust Warwick Thrust Paleozoic Sub-Thrust Structures

29. Paleozoic Structure Play Diagram Courtesy of Providence Technologies, Inc. Strawn/Devonian/Ellenburger High-side Fault Closures

31. Paleozoic Structure Sub-Thrust Play Devonian/Ellenburger Structures Sub-Thrust Diagram Courtesy of Providence Technologies, Inc.

32. Brown Bassett Field Ellenburger Pay Gas/Water Contact

33. Mobil #2 Bassett Goode 117 BCF

34. Mobil #2 Banner Est. 28 BCF

35. Thrusted Ouachita Facies Play Caballos, Tesnus Sands Diagram Courtesy of Providence Technologies, Inc.

36. Haymond Formation © James S. Alber used by permission http://academic.emporia.edu/aberjame/struc_geo Pennsylvanian Haymond turbidites, tilted near vertical

37. Dimple Limestone © James S. Alber used by permission http://academic.emporia.edu/aberjame/struc_geo Pennsylvanian carbonate turbidites interbedded with chert (dark)

38. Dimple 4600 4700 4500 110 Feet Apparent Thickness 10% Tight Reservoir Sweet Gas Accounts for 1% of Production in Pinon Field Requires Frac Job

39. Dimple – Pinon Field Hyperbolic decline indicates low permeability reservoir with flush production coming from fracture systems induced by fracture stimulation 2.7 BCF EUR 3.5 million cu ft/day 1.2 BCF CUM 2 years

40. Dimple – Pinon Field 1.8 BCF EUR 800 mcf/day 0.2 BCF CUM 2 years

41. Tesnus Sands Dimple Limestone 170 Feet Apparent Thickness Tesnus Sands 350 Foot Interval 10’ – 20’ Sands ` Sweet Gas Accounts for 20% of Production in Pinon Field Requires Frac Job

42. Caballos Ridge © James S. Alber used by permission http://academic.emporia.edu/aberjame/struc_geo Ridge of Devonian Caballos Novaculite

43. 1 st Caballos 6800 6900 7000 6700 220 Feet Apparent Thickness 10% Sour Gas Contains up to 70% CO 2 (CO 2 concentration drops west to east across field) Accounts for 38% of Production in Pinon Field No Frac Required

44. Gas Analysis – 1 st Caballos - Sour West Ranch #5-2C Sampled Feb-2004

45. Gas Analysis-1 st Caballos - Sour Longfellow 600 #4-2 Sampled Mar-2006

46. Caballos Novaculite © James S. Alber used by permission http://academic.emporia.edu/aberjame/struc_geo Caballos Novaculite Note the distinctive fractures in this brittle rock

47. 2 nd Caballos 7700 7800 7600 330 Feet Apparent Thickness 10% Sweet Gas (No evidence of CO 2 ) Accounts for 40% of Production in Pinon Field No Frac Required

48. Gas Analysis – 2 nd Caballos - Sweet West Ranch #33-2 Sampled Feb-2004

49. Caballos Chert – Pinon Field Linear decline indicates moderate permeability reservoir resulting from natural fracturing of chert reservoirs involved in the thrust belt Linear decline indicates moderate permeability reservoir resulting from natural fracturing of chert reservoirs involved in the thrust belt 2.6 BCF EUR 1.3 million cu ft/day 1.2 BCF CUM 8.5 years

50. Caballos Chert – Pinon Field 6.1 BCF EUR 10 million cu ft/day 5.5 BCF EUR 6 years

51. Caballos Chert – Pinon Field 7.3 BCF EUR 4.1 million cu ft/day 4.3 BCF CUM 7 years

52. Caballos Chert – Pinon Field 7.8 BCF EUR 2.4 BCF CUM 1.3 million cu ft/day 8 years

53. Caballos Chert – Pinon Field 13.2 BCF EUR 8.8 BCF CUM 4.1 million cu ft/day 13 years

54. Pinon Field Producing Analog Pecos County, Texas

57. Stratigraphy & Cross Section Diagram from SandRidge Energy, Inc. Presented at Goldman Sachs Global Energy Conference 1/12/2008 EUR 4.0 bcf/well EUR 40.0 bcf/well EUR 7.3 bcf/well EUR 2.0 bcf/well EUR 1.5 bcf/well

58. Pinon Field Completions No CO 2 Reported in Ouachita Fields East of Pinon Field 0.2 bcf 1% Sweet 10 Dimple 1.5 bcf 1% Sweet 5 Wolfcamp 2.0 bcf 20% Sweet 125 Tesnus 4.0 bcf 40% Sweet 77 Second Caballos 7.3 bcf 38% 70% CO 2 113 First Caballos EUR/well % of Fieldwide Methane Production Gas # of Wells Formation

59. Pinon Field – Ouachita Facies Analog 300 BCF Cumulative Production 621 Completions 300 MMCF/day As of Oct, 2008

60. Pinon Field – Dimple Structure Simplified w/o faults

63. Thrust Front Strawn Play Thrust Front Strawn Diagram Courtesy of Providence Technologies, Inc.

65. Thrust Front Strawn Fields Pakenham Field (1994) Thrusted Strawn 8,500’ 9 Completions Strawn Limestones are involved in the Ouachita Thrust and are proven highly productive ACU Field (2000) Thrusted Strawn 11,500’ 14 Completions Poulter Field (2004) Thrusted Strawn 10.500’ 11 Completions Newfield #3404 17 MMCF/day On 3D seismic May/2007

66. Thrust Front Strawn – ACU Field 10.2 BCF EUR High initial rate and linear decline indicates excellent permeability reservoirs involved in the thrust belt 7.1 BCF CUM 6.6 million cu ft/day 7 years

67. Thrust Front Strawn – ACU Field 4.5 BCF EUR 4.2 BCF CUM 3.3 million cu ft/day 13 years

68. Thrust Front Strawn – ACU Field 0.9 BCF EUR 1.8 million cu ft/day 0.7 BCF CUM 4 years

69. Thrust Front Wolfcamp Wolfcamp Sands Diagram Courtesy of Providence Technologies, Inc.

71. Wolfcamp – Pakenham Field 1.2 BCF EUR 0.9 BCF CUM 3.3 million cu ft/day 2 years

72. Wolfcamp – Pakenham Field 0.6 BCF EUR 0.4 BCF CUM 1.0 million cu ft/day 2.5 years

73. Wolfcamp – Pakenham Field 2.4 BCF EUR 2.3 BCF CUM 2.0 million cu ft/day 15 years

74. Wolfcamp – Pakenham Field 0.85 BCF EUR 0.6 BCF CUM 1.3 million cu ft/day 10 years

75. Play Summary Average of 10-12 BCF/Well (Ouachita Facies) 4,000’ – 8,500’ Sub-Thrust Ouachita Thrust Fairway Position 3.0 2 1.5 Wolfcamp 30.0 1 30.0 Ellenburger 25.0 1 25.0 Sil-Dev 4.0 1 4.0 Strawn 8.0 2 4.0 Caballos 3.0 2 1.5 Tesnus Well EUR (BCF) Zones/well EUR/interval (BCF) Formation

76. Vibroseis in Val Verde

77. Val Verde Basin Cretaceous Limestones capping Mississippian Tesnus (flysch) near Marathon, TX © James S. Alber used by permission http://academic.emporia.edu/aberjame/struc_geo

78. Pecos River - Near Comstock

80. Surface Generated Noise

81. Shot Record

82. New Shooting Parameters Courtesy Conoco Courtesy Permian Exploration Corporation

83. Val Verde Recon Program 2,500 mile Proposal 750 Miles PXC Recon Covers 25% of Trend Pakenham 3D 130 sq. miles (PSTM) Play Analog Volume

84. Contact dB, LLC Petroleum Advisors Richard G. Boyce 4849 Greenville Ave. Suite 1150 Dallas, Texas 75206 Tel: 214-796-9571 Fax: 214-447-9523 Email: [email_address]