CANADA

A / Northeast British Columbia

Profile

  • 72% average working interest in 1.7 million acres in northwestern Alberta and northeastern British Columbia.
  • Key areas include Hamburg/Chinchaga, Ring Border, Peggo, Eagle, Monias, West Jedney and Wargen.
  • Primarily winter-only drilling.
  • Produces oil and gas from multiple formations including liquid-rich gas from the Halfway and Baldonnel at 2,600' to 5,000'.
  • 58.2 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Drilled 64 wells, including:
    23 at Wargen.
    16 at Ring Border.
    11 at Hamburg/Chinchaga.
    7 at West Jedney.

2008 Plans

  • Drill 37 total wells, including:
    9 at Hamburg/Chinchaga.
    8 at Wargen.
    7 at West Jedney.
    3 at Monias.
    3 at Eagle.

B / Peace River Arch

Profile

  • 70% average working interest in 708,000 acres in western Alberta.
  • Key areas include Belloy, Cecil, Dunvegan, Knopcik, Valhalla and Tangent.
  • Produces liquids-rich gas and light gravity oil from multiple formations at 3,000' to 8,000'.
  • 74.2 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Drilled 60 wells, including:
    16 at Dunvegan.
    13 at Cecil.
    6 at Belloy.
    5 at Knopcik.

2008 Plans

  • Drill 65 total wells, including:
    19 at Dunvegan.
    10 at Cecil.
    5 at Valhalla.
    4 at Knopcik.
    3 at Tangent.

C / Deep Basin

Profile

  • 45% average working interest in 1.4 million acres in western Alberta and eastern British Columbia.
  • Key areas include Bilbo, Hiding, Blackhawk, Pinto and Wapiti.
  • Produces liquids-rich gas from primarily Cretaceous formations at 2,500' to 14,000'.
  • 92.4 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Drilled 41 wells, including:
    16 at Wapiti.
    15 at Pinto.
    5 at Blackhawk.
    4 at Bilbo.
    1 at Hiding.

2008 Plans

  • Drill 49 total wells, including:
    15 at Bilbo.
    14 at Pinto.
    9 at Wapiti.
    5 at Blackhawk.
    5 at Hiding.

D / Lloydminster

Profile

  • 97% working interest in 2.1 million acres in eastern Alberta and Saskatchewan.
  • Key areas include End Lake, Iron River, Lloydminster and Manatokan.
  • Produces primarily conventional, cold flow heavy oil from multiple formations at 1,000' to 2,300'.
  • 97.2 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Drilled 429 wells, including:
    281 at Iron River.
    67 at Lloydminster.
    40 at End Lake.
    28 at Manatokan.
  • Completed first capacity expansion of Manatokan processing plant.
  • Initiated second capacity expansion of Manatokan processing plant.

2008 Plans

  • Drill 475 total wells, including:
    318 at Iron River.
    53 at Lloydminster.
    46 at Manatokan.
    42 at End Lake.
  • Complete second capacity expansion of Manatokan processing plant.

E / Thermal Heavy Oil

Profile

  • 97% average working interest in 75,000 acres in eastern Alberta oil sands.
  • Key asset is Jackfish (100% interest).
  • Steam-Assisted Gravity Drainage (SAGD) is the primary recovery method.
  • Jackfish facility capacity of 35,000 barrels of oil per day.
  • 233.0 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Completed facility construction and commenced steam injection at Jackfish.
  • Sold first barrel of bitumen near year-end at Jackfish.
  • Began front-end engineering for Jackfish 2, a lookalike project to Jackfish.
  • Completed construction of Access Pipeline.

2008 Plans

  • Ramp up production at Jackfish.
  • Initiate construction at Jackfish 2 pending regulatory approval and internal sanctioning.
  • Drill 27 stratigraphic wells to further evaluate the Jackfish area potential.

INTERNATIONAL

A / Brazil

Profile

  • 1.3 million acres in 9 licensed blocks offshore Brazil:
    Block BM-C-8 (Polvo); 60% interest.
    Block BC-2 (Xerelete); 17.65% interest.
    Block BM-BAR-3; 100% interest.
    Block BM-C-30; 25% interest.
    Block BM-C-32; 40% interest.
    Block BM-C-34 (C-M-471); 50% interest.
    Block BM-C-34 (C-M-473); 50% interest.
    Block BM-C-35; 35% interest.
    Block BM-CAL-13; 100% interest.
  • Located in the Campos, Barreirinhas and Camamu Basins in water depths ranging from 330' to 9,100'.
  • Target oil formations at 7,000' to 16,000'.
  • Developing 2004 discovery on block BM-C-8 (Polvo development).
  • 8.9 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Completed platform and FPSO installation and commissioning operations at Polvo.
  • Drilled and completed 3 development wells at Polvo.
  • Commenced first production at Polvo.
  • Completed exploratory drilling on block BM-C-8 and obtained government approval for an expanded development area for Polvo.
  • Drilled 1 exploratory well on block BC-2 and submitted a declaration of commerciality for Xerelete discovery.
  • Conducted seabed logging program on block BM-BAR-3.
  • Signed letter of intent to farm out 30% interest in BM-BAR-3 to an industry partner.
  • Initiated 3-D seismic reprocessing on blocks BM-C-30, BM-C-32, BM-C-34 and BM-C-35.
  • Completed processing of 3-D seismic on block BM-CAL-13.
  • Won onshore blocks PN-T-66 and PN-T-86 in the Parnaiba Basin in Bid Round 9.

2008 Plans

  • Drill and complete 7 development wells at Polvo.
  • Reprocess seismic and consider development options on Xerelete discovery.
  • Finalize BM-BAR-3 farm-out agreement and attempt to farm out additional interest.
  • Reprocess and interpret 3-D seismic on blocks BM-C-30, BM-C-32, BM-C-34 and BM-C-35.
  • Drill second exploratory well on BM-C-30.
  • Sign concession agreements on blocks PN-T-66 and PN-T-86.

B / Azerbaijan — ACG

Profile

  • 5.6% interest in 107,000 acres in the Azeri-Chirag-Gunashli (ACG) oil fields offshore Azerbaijan.
  • Initial position obtained in 1999 merger.
  • Major oil export pipeline commenced operations in 2006.
  • 64.6 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Commenced production from 11 new wells.
  • Installed platform, production and drilling facilities in the Deepwater Gunashli area.

2008 Plans

  • Drill and complete 16 producing wells.
  • Commence production from Deepwater Gunashli area.

C / China

Profile

  • 7.9 million acres in 5 licensed blocks offshore China:
    Block 15/34 (Panyu); 24.5% interest.
    Block 42/05; 100% interest.
    Block 11/34; 100% interest.
    Block 53/30; 100% interest.
    Block 64/18; 100% interest.
  • Located in the South China Sea and Yellow Sea in water depths ranging from 150' to 8,200'.
  • Panyu fields produce oil from 1998 and 1999 discoveries.
  • 19.7 million barrels of oil-equivalent reserves at 12/31/07.

2007 Activity

  • Drilled and completed 3 development wells at Panyu, including a successful extended reach well.
  • Acquired additional 3-D seismic on block 42/05.
  • Acquired blocks 53/30 and 64/18 in South China Sea.

2008 Plans

  • Drill 6 development wells at Panyu.
  • Replace subsea pipelines at both Panyu platforms.
  • Drill one exploratory well on block 42/05.
  • Drill one exploratory well on block 11/34.
  • Acquire 2-D and 3-D seismic on block 53/30.
  • Acquired 2-D seismic on block 64/18.