GULF — SHELF

Shelf Producing Properties

Profile

  • Includes 32 blocks located offshore Texas, Louisiana, and Alabama.
  • Working interests range from 13% to 100%.
  • Produces oil and gas from various formations in water depths up to 600'.
  • Mature producing area with opportunities for exploration.
  • 45.3 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Drilled 7 wells in Eugene Island area.
  • Drilled 1 well in Brazos area.
  • Drilled 1 well in Mobile area.
  • Recompleted 10 wells.

2008 Plans

  • Drill 2 wells in Main Pass area.
  • Drill 3 wells in Eugene Island area.
  • Recomplete 25 wells.

Shelf Exploration Prospects

Profile

A / Sunfish

  • West Cameron 291.
  • Located offshore Louisiana in 50' of water.
  • Target formation: Lower Miocene sands at 15,900'.
  • Expected working interest: 75%.

B / Dampier

  • Ship Shoal 104.
  • Located offshore Louisiana in 30' of water.
  • Target formation: Upper Miocene sands at 16,600'.
  • Working interest: 50%.

C / Flying Squirrel

  • Mobile 830.
  • Located offshore Alabama in 50' of water.
  • Target formation: Norphlet sands at 22,000'.
  • Expected working interest: 75%.

2007 Activity

  • Finalized geophysical analyses and drilling contracts.
  • Secured farmin agreement at Dampier.

2008 Plans

  • Secure farmout agreements with industry partners at Sunfish and Flying Squirrel.
  • Drill exploratory test wells.

GULF — DEEPWATER

A / Nansen

Profile

  • Includes 3 blocks in central East Breaks area.
  • 50% working interest.
  • Located offshore Texas in 3,500' of water.
  • Produces oil and gas from sands at 9,000' to 14,000'.
  • Utilizes the world's first open-hull truss spar.
  • 32.5 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Recompleted 2 wells.

2008 Plans

  • Drill 2 development wells.
  • Recomplete 2 wells.

B / Magnolia

Profile

  • 25% working interest in Garden Banks 783 and 784.
  • Located offshore Louisiana in 4,700' of water.
  • 1999 discovery.
  • Produces oil and gas from sands at 12,000' to 17,000'.
  • Utilizes the world's deepest tension-leg platform.
  • 12.3 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Recompleted 2 wells.

2008 Plans

  • Drill 2 sidetrack wells.
  • Recomplete 2 wells.
  • Evaluate potential for additional drilling.

C / Red Hawk

Profile

  • 50% working interest in Garden Banks 876, 877, 920 and 921.
  • Located offshore Louisiana in 5,300' of water.
  • 2001 discovery.
  • Produces gas from sands at 16,000' to 18,500'.
  • Utilizes the world's first cell spar.
  • 3.7 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Produced and monitored.

2008 Plans

  • Recomplete 2 wells.
  • Evaluate potential for additional drilling.

D / Merganser (Independence Hub)

Profile

  • 50% working interest in Atwater Valley 37.
  • Located offshore Louisiana in 8,100' of water.
  • 2001 discovery.
  • Produces gas from sands at 19,000' to 20,000'.
  • Cooperative development of 10 nearby industry discoveries utilizing subsea tie-backs to a central production hub.
  • 6.8 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Commenced production from 2 wells.

2008 Plans

  • Produce and monitor.

Lower Tertiary Discoveries

Profile

E / Cascade

  • 50% working interest in Walker Ridge 206.
  • Located offshore Louisiana in 8,200' of water.
  • Target formation: Lower Tertiary sands at 25,000' to 27,000'.
  • Discovery well drilled in 2002 encountered > 450' of net oil pay.

F / St. Malo

  • 22.5% working interest in Walker Ridge 678.
  • Located offshore Louisiana in 6,900' of water.
  • Target formation: Lower Tertiary sands at 26,000' to 29,000'.
  • Discovery well drilled in 2003 encountered > 450' of net oil pay.

G / Jack

  • 25% working interest in Walker Ridge 759.
  • Located offshore Louisiana in 7,000' of water.
  • Target formation: Lower Tertiary sands.
  • Discovery well drilled in 2004 encountered > 350' of net oil pay.

H / Kaskida

  • 20% working interest in Keathley Canyon 292.
  • Located offshore Louisiana in 5,900' of water.
  • Target formation: Lower Tertiary sands.
  • Discovery well drilled in 2006 encountered approximately 800' of net hydrocarbon bearing sands.
  • First Lower Tertiary discovery in Keathley Canyon area.

2007 Activity

  • Sanctioned phase 1 development at Cascade.
  • Submitted Cascade operating and development plans to MMS.
  • Awarded Cascade development contracts, including FPSO and shuttle tankers.
  • Initiated drilling 2nd and 3rd appraisal wells at St. Malo.
  • Initiated drilling 2nd appraisal well at Jack.
  • Evaluated development options and facilities designs for Jack and St. Malo.
  • Planned for next appraisal operation at Kaskida.
  • Acquired 25 additional Lower Tertiary blocks through federal lease sales.

2008 Plans

  • Drill first of 2 producing wells at Cascade.
  • Finish drilling 2nd and 3rd appraisal wells at St. Malo.
  • Finish drilling 2nd appraisal well at Jack.
  • Drill appraisal well at Kaskida.
  • Continue evaluating development options and advance engineering work at Jack, St. Malo and Kaskida.
  • Finalize gas export pipeline arrangements at Cascade.

Miocene Discoveries

Profile

I / Mission Deep

  • 50% working interest in Green Canyon 955.
  • Located offshore Louisiana in 7,300' of water.
  • Target formation: Miocene sands.
  • Discovery well drilled in 2006 encountered > 250' of net oil pay.

J /Sturgis

  • 25% working interest in Atwater Valley 183.
  • Located offshore Louisiana in 3,700' of water.
  • Target formation: Miocene sands.
  • Discovery well drilled in 2003 encountered > 100' of net oil pay.
  • Sturgis North exploratory prospect located on Atwater Valley 182.

2007 Activity

  • Completed drilling sidetrack appraisal well at Mission Deep.

2008 Plans

  • Drill Mission Deep appraisal well.
  • Evaluate Mission Deep development options.
  • Drill exploratory well on Sturgis North prospect.

Deepwater Exploration Prospects

Profile

K / Bass

  • Keathley Canyon 596.
  • Located offshore Louisiana in 6,450' of water.
  • Target formation: Lower Tertiary sands.

Additional Lower Tertiary Prospect # 1

  • Located in Walker Ridge area.
  • Located offshore Louisiana in 7,000' of water.
  • Target formation: Lower Tertiary sands.

Additional Miocene Prospect #1

  • Located in Mississippi Canyon area.
  • Located offshore Louisiana in 3,300' of water.
  • Target formation: Miocene sands.

2007 Activity

  • Initiated drilling 2 exploratory wells.
  • Conducted technical evaluations and initiated drilling contracts.
  • Commenced long-term contract with delivery of Ocean Endeavor deepwater drilling rig.

2008 Plans

  • Finish drilling 2 exploratory wells initiated in 2007.
  • Finalize technical evaluations and contracts.
  • Drill exploratory test wells.
  • Commence long-term contract with delivery of West Sirius deepwater drilling rig.
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