January 2006 January 2006 1099 18th Street, Suite 2300 Denver, Colorado 80202 303.293.9100, fax 303.291.0420 www.billbarrettcorp.com NYSE: BBG Fred Barrett, President and Chief Operating Officer Fred Barrett, President and Chief Operating Officer Exhibit 99.2 |
Except Except for for the the historical historical information information contained contained herein, herein, the the matters matters discussed discussed in in this this presentation presentation are are forward-looking forward-looking statements. statements. These These forward-looking forward-looking statements statements reflect reflect our our current current views views with with respect respect to to future future events, events, based based on on what what we we believe believe are are reasonable reasonable assumptions. assumptions. These These statements, statements, however, however, are are subject subject to to risks risks and and uncertainties uncertainties that that could could cause cause actual actual results results to to differ differ materially materially including, including, among among other other things, things, exploration exploration results, results, market market conditions, conditions, oil oil and and gas gas price price levels levels and and volatility, volatility, the the availability availability and and cost cost of of services, services, and and drilling drilling rigs, rigs, the the ability ability to to obtain obtain industry industry partners partners to to jointly jointly explore explore certain certain prospects, prospects, uncertainties uncertainties inherent inherent in in oil oil and and gas gas production production operations operations and and estimating estimating reserves, reserves, unexpected unexpected future future capital capital expenditures, expenditures, competition, competition, the the success success of of our our risk risk management management activities, activities, governmental governmental regulations regulations and and other other factors factors discussed discussed in in our our definitive definitive prospectus prospectus dated dated August August 17, 17, 2005 2005 filed filed with with the the Securities Securities and and Exchange Exchange Commission Commission (SEC). (SEC). We We refer refer you you to to the the “Cautionary “Cautionary Note Note Regarding Regarding Forward-Looking Forward-Looking Statements” Statements” section section of of that that filing. filing. Forward-Looking Statements Forward-Looking Statements |
3 1/15/2006 2:24 AM Pure Rockies oil and gas exploration and production company Pure Rockies oil and gas exploration and production company Time-Honored Strategy Time-Honored Strategy Proven, experienced Rocky Mountain management team Proven, experienced Rocky Mountain management team and technical staff and technical staff Develop extensive multi-year development drilling inventory Develop extensive multi-year development drilling inventory Exposure to multiple high impact, high return exploration plays Exposure to multiple high impact, high return exploration plays Heavily weighted towards unconventional projects Heavily weighted towards unconventional projects Solid record of development growth and exploration discoveries Solid record of development growth and exploration discoveries Strong balance sheet positioned for growth Strong balance sheet positioned for growth Key Highlights Key Highlights |
4 1/15/2006 4:31 AM Exploration • 23 exploration projects • 70% unconventional • Over 10 Tcfe unrisked potential • Over 1,200,000 net undeveloped acres – Dec 31, ‘05 Extensive Development / Exploration Inventory Extensive Development / Exploration Inventory Development • 341 Bcfe YE ‘05 Proved Reserves • 140 MMcfe/d Net Production, December 05 • 1.1 Tcfe P3 reserves YE ‘05 • Approximately 2,700 unrisked locations YE ‘05 • Eight year drilling inventory • $310-320 million 2005 capex • Up to $350 million 2006 capex Denver, CO Big Horn Basin Powder River Basin Green River Basin Piceance Basin Paradox Basin Williston Basin DJ Basin Wind River Basin CBM Gibson Gulch Nameless/ Indian Hills/ Harding Uinta Basin Hill Creek Waltman Arch W. Tavaputs Target/Red Bank Lake Canyon, Brundage Canyon Hingeline Antelope Hollow Hook, Woodside Talon, East Madden Big Horn Montana Overthrust (Circus) CBM Wyodak, Big George Red Water Red Bank Extension Grand River Mondak Hebron Tri-State Pine Ridge Yellow Jacket Cedar Camp, Tumbleweed Gas Prone Area Oil Prone Area Development Project Exploration Project |
5 1/15/2006 4:31 AM Mondak • McKenzie Fed. #11-31 • Bakken • IP 231 Bopd Antelope Hollow 2005 Exploration – 2005 Exploration – Multiple Discoveries Multiple Discoveries 2005 Summary 2005 Summary • • 25 exploration wells 25 exploration wells • • Nine project areas, five basins Nine project areas, five basins • • Two high profile discoveries Two high profile discoveries • • Four potential discoveries Four potential discoveries Denver, CO Big Horn Basin Powder River Basin Green River Basin Piceance Basin Paradox Basin Williston Basin DJ Basin Wind River Basin W. Tavaputs Deep Discovery Peter’s Point #6-7 • IP: 11.4 MMcfe/d Lake Canyon • 1 deep • 2 shallow Grand River Nygaard #41-32 • Red River B • Testing Tri-State Helman #8-24, Helman #12-24 • 2 Niobrara tests • 40-170 Mcfe/d • Drilled 5 additional wells Q4 ’05 • Building facilities to connect to sales line Cedar Camp • 2 wells WOPL • 1 dry hole Gas Prone Area Oil Prone Area Key Discovery and/or Established Production Dry Hole Waiting on Pipeline (WOPL) or Waiting on Completion (WOC) Drilling Development Area Uinta Basin Waltman Deep Discovery Bullfrog #14-18 • IP: 20 MMcfe/d, WI: 94% CG#1-29 • IP: 19 MMcfe/d, WI: 70% Red Bank Extension Tri-C Sigma Lee • WI: 6.5% • 4000’ Bakken lateral • Tested @ 125 Bopd Indian Hills East • Ratcliffe • Testing Red Water McCrea #11-27H • Bakken • Testing Gibson Gulch CBM Target Red Bank Talon/East Madden • 9 Ft. Union/Lance producers • Marginal, wide-spread • Technology needed Total Exploration Portfolio Exploration Portfolio • • 23 projects areas, 10 basins 23 projects areas, 10 basins • • Over 10 Tcfe unrisked potential Over 10 Tcfe unrisked potential • • Over 1,200,000 net Over 1,200,000 net undeveloped acres – Dec 31, ‘05 Hill Creek |
6 1/16/2006 2:45 PM 2006 Exploration – 2006 Exploration – Extensive Exposure Extensive Exposure Denver, CO Big Horn Basin Powder River Basin Green River Basin Piceance Basin Paradox Basin Williston Basin DJ Basin Wind River Basin Lake Canyon • 2 deep • 4 shallow Grand River • 1 Red River Tri-State • 6 Niobrara • 2 Pennsylvanian • 3-D seismic • 20-40 additional wells Hook/Woodside • 2 Ferron • 1 Pennsylvanian Test Uinta Basin Waltman/Cooper/ Wallace Creek • 3 deep, 1 deep contingency • 2 CBM pilots • 3-D seismic Red Bank Extension • 2 Ratcliffe Circus • 2 Mississippian • 3-D seismic Hebron • 1 Bakken Indian Hills West • 1 Ratcliffe Big Horn • 1 Mesaverde recompletion • 3-D seismic Talon • 1 Ft. Union Big Hollow • 1 Ferron/Navajo W. Tavaputs • 2 deep • 3 deep contingency Pine Ridge • 3-D seismic Yellowjacket • 4 Gothic shale gas Gibson Gulch Target/Red Bank 2006 Exploration Activity • 38+ exploration wells • 18 project areas, nine basins and the Rockies overthrust Total Exploration Portfolio • 23 projects areas, 10 basins • Over 10 Tcfe unrisked potential • Over 1,200,000 net undeveloped acres – Dec 31, ‘05 Gas Prone Area Oil Prone Area 2005 Discovery and/or Established Production Dry Hole 2006 Exploration Project Planned Drilling Development Area CBM Mondak • 1 Bakken Hill Creek Tumbleweed |
7 1/15/2006 3:35 AM Southern Division Update Southern Division Update |
8 1/15/2006 2:05 AM SCALE: 1 Township = 36 sq mi Rifle, CO Piceance Basin Piceance Basin Basin Basin Centered Gas Project Centered Gas Project BBC Acreage Gas Producing Area Pipeline Gibson Gulch COLORADO Piceance Basin Rulison Rulison 275 Bcfe 275 Bcfe 150 MMcfe/d 150 MMcfe/d Mamm Creek Mamm Creek 259 Bcfe 259 Bcfe 271 MMcfe/d 271 MMcfe/d Divide Creek Divide Creek 65 Bcfe 65 Bcfe 2 MMcfe/d 2 MMcfe/d Parachute Parachute 139 Bcfe 139 Bcfe 100 MMcfe/d 100 MMcfe/d Grand Valley Grand Valley 233 Bcfe 233 Bcfe 143 MMcfe/d 143 MMcfe/d |
9 1/15/2006 2:00 AM Generalized Mesaverde Section Generalized Mesaverde Section Rulison Field Rulison Field Gas Bearing Gas Bearing Sequence Sequence (1700’ (1700’ - - 2400’) 2400’) Gas Bearing Gas Bearing Sandstones Sandstones Corcoran 120’ Cozzette 300’ Rollins 350’ Cameo 850’ Depth Range 8200’ - 8700’ Gas Transition Gas Transition Zone Zone |
10 1/15/2006 2:15 AM Silt Shooting 3-D Seismic - 25 sq mi Gibson Gulch Unit Mamm Creek Mamm Creek 259 Bcfe 259 Bcfe 271 MMcfe/d 271 MMcfe/d Scale: 640 ac = 1 Mile (with 10 ac grid) • BBC - Operator • 25-100% WI, 99% Avg. • 20,975 Gross / 16,212 Net Acres (12-31-05) • 115 Bcfe YE ‘05 Proved Reserves • 4 Active Rigs • 26 MMcfe/d Net Production, December 2005 • $126 MM 2006 Capex (81+ wells) • Seven Year Drilling Inventory Based on 20-acre Well Density, 10-acre Density Being Evaluated • Unconventional Basin Centered Tight Mesaverde Gas Sand COLORADO Piceance Basin Gas Well Pipelines Mesaverde Structure BBC Acreage 2005 Producing Completing WOCT 2006 Location Piceance Basin - Piceance Basin - Gibson Gulch Gibson Gulch Colorado Colorado |
11 1/15/2006 2:19 AM San Arroyo 381 Bcfe Monument Butte 289 Bcfe Natural Butte 2 Tcfe Altamont/Bluebell 3.1 Tcfe Drunkards Wash 278 Bcfe West Tavaputs Garmesa Lake Canyon Price, UT Hill Creek Tumbleweed Cedar Camp Brundage Canyon Roosevelt, UT • $100 MM 2006 Capex (30+ wells, 1 recompletion) • 40 MMcfe/d Net Production, December 2005 UTAH Uinta Basin SCALE 1 Township = 36 sq mi Uinta Basin Uinta Basin 3-D Seismic Survey • 267,536 Net Undeveloped Acres (12-31-05) • 83 Bcfe YE ’05 Proved Reserves |
12 1/15/2006 2:34 AM West Tavaputs Project - West Tavaputs Project - Uinta Basin, Utah Uinta Basin, Utah Shallow - Shallow - Wasatch/North Horn/Price River/Blackhawk Wasatch/North Horn/Price River/Blackhawk Scale: 640 ac = 1 Mile (with 40 ac grid) UTAH Uinta Basin Questar interconnect Compressor site Shallow 3-D Four-way Closure • $68 MM 2006 Capex (22+ wells) • Conventional Structural Type Trap • 52 mi. 2-D, 82 sq. mi. 3-D Seismic • Rough Topography (canyon) • BBC - Operator • 46,774 Gross, 43,194 Net Acres (12-31-05) • 100% WI; NRI 83% • 26 MMcfe/d Net Production, December 2005 • 71 Bcfe YE ’05 Proved Reserves BBC Acreage Seismic Option Acreage Gas Well (Wasatch, North Horn, Price River) 2005 Gas Well (same formations) Potential 160-acre Location 2006 Location 2006 Winter Drilling Location Dry with Oil and Gas Show Dry with Oil Show Existing Pipeline Proposed Pipeline Eight winter drilling locations Subject to approval |
13 1/15/2006 2:58 AM West Tavaputs Project - West Tavaputs Project - Uinta Basin, Utah Uinta Basin, Utah Questar interconnect Compressor site • $22 MM 2006 Capex (2+ Wells) • Conventional Structural Type Trap • 52 mi. 2-D, 82 sq. mi. 3-D Seismic • Rough Topography (canyon) • BBC - Operator • 46,774 Gross, 43,194 Net Acres (12-31-05) • 100% WI; 83% NRI • 9 MMcfe/d Net Production, December 2005 Scale: 640 ac = 1 Mile (with 40 ac grid) Deep Well (1967) Peters Point #6-7 Deep Discovery IP: 11.4 MMcfe/d 100% WI, TD 15,349’ Dakota, Jurassic Entrada and Navajo Area of Jurassic 3-D Four-way Closure Getty Deep Well (1980) Tested: Dakota 315 Mcf Entrada 1,800 Mcf Area of Dakota Potential UTAH Uinta Basin Ultra-Deep Mississippian Test Deep - Deep - Upper Cretaceous Dakota/Jurassic Entrada, Navajo Upper Cretaceous Dakota/Jurassic Entrada, Navajo Ultra-Deep Ultra-Deep - - Mississippian Mississippian BBC Acreage Seismic Option Acreage Gas Well Dry with Gas Show Potential 2006 Deep Location Future Potential Deep Location Existing Pipelines |
14 1/15/2006 2:59 AM Hook and Woodside Prospects UTAH Uinta Basin Uinta Basin, Utah Uinta Basin, Utah West Tavaputs Development Project Woodside Dome 17,625 Net Undeveloped Acres Structural Four-way Closure 150-200 Bcfe Unrisked Potential Dakota Outcrop SCALE 1 Township = 36 sq mi Hook 43,659 Net Undeveloped Acres Fractured Cretaceous Shale Gas 150-200 Bcfe Unrisked Potential BBC Acreage Gas Fields Outcrop Drunkards Wash 278 Bcfe Price, UT Peters Point #6-7 Deep Discovery IP: 11.4 MMcfe/d Hook • Potential Pay Zones: Ferron Shale 1,000’- 4,000’, • 3 Vertical Tests Planned Q4 2006 Woodside • Potential Pay Zones: Pennsylvanian/ Paradox Sands ± 6,500’ • 1 Vertical Test Planned – Q4 2006 |
15 1/15/2006 4:31 AM SCALE 1 Township = 36 sq mi Key Mesaverde well #14-1 Marsing (1975) Altamont/Bluebell Duchesne BBC Acreage Mesaverde Penetration Oil Producer Pipeline Fault Temporarily Abandoned 50 sq mi 3-D seismic survey processing #1 DLB TD 14,325’ 75% WI testing Shallow Green River wells testing 18.75% WI Lake Canyon / Brundage Canyon Exploration Project Lake Canyon / Brundage Canyon Exploration Project Uinta Basin, Uinta Basin, Utah • BBC - Operator, all wells below 6,000’ • 229,421 Gross, 157,343 Net Acres (12-31-05) • 56.25- 75% WI (Wasatch- Mesaverde), 18.75- 25% WI (Green River); 80% Avg NRI • $10 MM 2006 Capex (2 Deep Wells, 4 Shallow Wells) Constructing pipeline • Potential Pay Zones: Green River 4,000’-5,000’, Mesaverde and Blackhawk Tight Gas Zones 9,000’-15,000’ • Conventional Green River Oil and Unconventional Basin Centered Tight Gas Sandstone Type Traps • Multiple Tcfe Unrisked Target Size UTAH Uinta Basin |
16 1/15/2006 2:57 AM Yellowjacket Prospect Yellowjacket Prospect Paradox Basin, Colorado Paradox Basin, Colorado BBC Acreage Gas Well Oil Well Pipeline Potential High Graded Shale Gas Area UTAH COLORADO Paradox Basin • BBC - Operator • 86,570 Gross, 58,426 Net Acres (12-31-05) • 100% WI; 83% Avg. NRI • 4 Exploratory Wells Q4 2006 • Potential Pay Zone: Gothic Shale, 5,500’-7,500’; - Shale thickness: 100-150’ • Multiple Gas Shows • Unconventional Fractured Gothic Shale Type Trap • 600-700 Bcfe Unrisked Potential SCALE 1 Township = 36 sq mi |
17 1/15/2006 4:31 AM Tri-State Tri-State DJ Basin, Kansas, Colorado and Nebraska DJ Basin, Kansas, Colorado and Nebraska BBC Acreage Oil Field Gas Field • Berry Petroleum - Operator • 387,522 Gross, 186,142 Net Undeveloped Acres (12- 31-05) • 50% WI; 85% Avg. NRI • $8 MM 2006 Capex (48 wells) • 300-400 Bcfe Net Unrisked Upside (50% WI) • Potential Pay Zones: Niobrara ± 2,500’ Gas Permian/Pennsylvanian ± 5,500’ Oil • Conventional Structural Trap Type • 1,502 miles 2-D Seismic; 24 sq. miles Prairie Star 3-D • 144 sq. miles 3-D Seismic 2006 • Building facilities to bring on line to sales WY CO KS NE DJ Basin Tri-State Project Exploration Exploration Fairway Fairway Beecher Island EUR: 130 Bcfe Niobrara Celia 2,613 MBbls Pennsylvanian Goodland EUR: 13 Bcfe Niobrara Bonny EUR: 79 Bcfe Niobrara Republican EUR: 87 Bcfe Niobrara Cahoj 8,878 MBbls Pennsylvanian Cherry Creek EUR: 15 Bcfe Niobrara Goodland N E Burlington K S C O SCALE 1 Township = 36 sq mi St. Francis Prairie Star 3-D outline Planned 2006 3-D seismic areas Vertical well 40 Mcf/d (test) Horizontal well 125 Mcf/d (test) Five Niobrara wells waiting on completion |
18 1/15/2006 2:57 AM Northern Division Update Northern Division Update |
19 1/15/2006 4:50 AM Wind River Basin Wind River Basin Cave Gulch Cave Gulch Cooper Reservoir Cooper Reservoir Wallace Creek Pommard Pommard Madden 3+ Tcfe Frenchie Draw 100+ Bcfe WALTMAN WALTMAN ARCH 3-D ARCH 3-D SCALE: 1 Township 36 sq mi EAST EAST MADDEN MADDEN 3-D 3-D Basin - Centered • 160,717 Net Undeveloped Acres (12-31-05) • 86 Bcfe YE ’05 Proved Reserves • $48 MM 2006 Capex (6+ wells, 2 recompletions) • 45 MMcfe/d Net Production, December 2005 Windjammer Windjammer Stone Cabin Stone Cabin WYOMING Wind River Basin BBC Acreage Gas Field Faults TALON TALON |
20 1/15/2006 2:58 AM Cave Gulch – Waltman – Cooper Reservoir Fields Waltman Arch, Wind River Basin, Wyoming SCALE 640 ac = 1 Sq Mile Cave Gulch #1-29 Recompletion Muddy IP: 19 MMcfe/d (gross) 70% WI EUR: 28 Bcfe Frontier pay behind pipe • BBC - Operator • 27,355 Gross, 21,136 Net Undeveloped Acres (12-31-05) • 54 - 100% Working Interest • $41 MM 2006 Capex (5+ wells, 2 recompletions) • 42 MMcfe/d Net Production, December ‘05 • 71 Bcfe YE ’05 Proved Reserves • Potential Pay Zones: Shallow: Lance, Ft. Union Deep: Frontier, Muddy, Lakota Cave Gulch #5-30 Waiting on Muddy Recompletion 91% WI Cooper Deep #1 Muddy test projected TD 16,500’ 50% WI WYOMING Wind River Basin Cave Gulch Field Waltman Field Cooper Reservoir Field Bullfrog #14-18 19,400’ Test Muddy IP: 20 MMcfe/d (gross) 94% WI Lakota/Frontier pay behind pipe Shriner #43-20 Proposed 18,500’ Frontier test 70% WI Bullfrog #33-19 PTD 19,800’, Drilling 93% WI BBC Acreage 2006 Location Potential Future Deep Location Historical Deep Producers Deep Gas Show Well Deep Structural Axes Gas Productive Area |
21 1/15/2006 4:14 AM Eastern Wind River - Eastern Wind River - Basin Centered Gas Projects Basin Centered Gas Projects Madden 3+ Tcfe Frenchie Draw 100+ Bcfe EAST MADDEN 3-D Hitchcock Draw TD 16,600’ 244 Mcf/d Lance Yates Mahoney Unit 44-100% WI Yates Riverbank Unit 44% WI TALON TALON 37.5% WI • BBC - Operator • 233,041 Gross, 87,708 Net Acres (12-31- 05) WYOMING Wind River Basin Talon and East Madden, Wyoming Talon and East Madden, Wyoming BBC Acreage Gas Well 2006 Location BBC Talon Unit 44-64% WI Area of New Ft. Union and Lance Production EOG Webb Ranch #10-19 460 Mcfe/d Lower Ft. Union 2% WI Stone-Cabot-Yates Lower Ft. Union- Lance tests Delta 18,000’ Mesaverde tests – 3 wells BBC 60% WI- Yates High Noon Fed #1 Lance test-800 Mcf/d Scale in Miles 0 6 Linn Draw Proposed 9000’ Ft. Union test 100% WI |
22 1/15/2006 3:26 AM Denver, CO Powder River Basin Green River Basin Uinta Basin Piceance Basin Paradox Basin Williston Basin DJ Basin Wind River Basin San Juan Basin Rocky Mountain Basin Centered Gas Rocky Mountain Basin Centered Gas Basin Centered Gas Gas Prone Area Oil Prone Area Big Horn Basin |
23 1/15/2006 3:26 AM Wyoming Wyoming Big Horn Basin - Big Horn Basin - Basin Centered Gas Project Basin Centered Gas Project • BBC - Operator • Large Undrilled Region • Prolific Hydrocarbon System • Multiple “Giant” Fields • 192,925 Gross, 138,553 Net Acres (12-31-05) • 100% WI; 84% Avg. NRI • Potential Pay Zones: Lance 8,000’- 14,500’, Meeteetse 9,500’-16,000’, Mesaverde 10,000’-17,500’ • Unconventional Basin Centered Tight Gas Sandstone and Conventional Structural Type Traps • Multiple Tcfe Unrisked Target Size • One Exploratory Test in Q3 ‘06 WYOMING Big Horn Basin BBC Acreage Gas Field Oil Field Outcrop Structural Axes SCALE 1 Township = 36 sq mi Area of Basin Centered Gas Play Planned 3-D seismic 2006 |
24 1/15/2006 3:26 AM Rocky Mountain Overthrust Projects Rocky Mountain Overthrust Projects Gas Prone Area Oil Prone Area Wolverine Discovery Covenant Field Denver, CO Powder River Basin Green River Basin Uinta Basin Piceance Basin Paradox Basin Williston Basin DJ Basin Wind River Basin San Juan Basin Big Horn Basin Hingeline 7,837 Net Undeveloped Acres Circus 159,127 Net Undeveloped Acres Canadian Overthrust EUR: 20+ Tcfe Wyoming Overthrust EUR: 10+ Tcfe |
25 1/15/2006 3:27 AM 82 sq. mi. 3-D in progress Circus Prospect Circus Prospect Montana Montana • BBC – Operator • 197,648 Gross, 159,127 Net Undeveloped Acres (12-31-05) • 100% WI; 82% NRI • Two Exploratory Tests in 2006 • Leading Edge of Montana Thrust Belt • Numerous Large Anticlinal Features and Faults • 82 sq. mi. 3-D in Progress (65 sq. mi. in Processing) • Potential Pay Zones: Cretaceous 2,200’-7,000’, Mississippian 8,000’-11,000’ Devonian 9,000’-11,500’ • Many Oil and Gas Shows in Existing Wells • Multiple Tcfe Unrisked Target Size MT Mapped Area BBC Acreage Dry with Oil and Gas Shows Thrust Fault Structural Axes Scale in Miles 0 6 |
26 1/15/2006 3:24 AM • BBC - Operator • 92,626 Gross, 55,779 Net Undeveloped Acres (12-31-05) • $22 MM 2005 Capex (220 Big George wells) • 21 MMcfe/d Net Production, December 2005 • 25 Bcfe YE ‘05 Proved Reserves • Four Active Rigs MT WY Powder River Basin BBC Acreage Gas Producing Area Cat Creek Cat Creek Amos Draw Amos Draw Deadhorse Deadhorse Willow Creek Willow Creek Porcupine Porcupine Palmtree Palmtree BIG BIG GEORGE GEORGE PLAY PLAY Gillette, WY SCALE 1 Township = 36 sq mi Tuit Tuit WYODAK WYODAK PLAY PLAY Powder River Basin - Powder River Basin - Coal Bed Methane Coal Bed Methane Wyoming Wyoming |
27 1/15/2006 4:15 AM Target/Red Bank/Red Bank Extension Target/Red Bank/Red Bank Extension Williston Basin, Montana & North Dakota Williston Basin, Montana & North Dakota Target 85 -100% WI Red Bank Extension Project WI 60% Project WI 60% Red Bank 90 -100% WI 90 -100% WI - 100% WI 100% WI #11-33H Picard IP: 225 Bopd • Horizontal Technology Play • Potential Pay Zones: Madison 9,000’, Bakken 10,600’ • 20 MMBoe Net Unrisked Target Size #14-16H State IP: 300 Bopd #24-24H Tininenko IP: 70 Bopd #31-16H State IP: 70 Bopd • 88,237 Gross, 51,722 Net Acres (12-31-05) • $19 MM 2006 Capex (9 Wells) #24-28H Picard IP: 75 Bopd Sigma Lee #14-23 19,500’ MD Bakken test BBC 6.25% WI Pump testing after frac SD MT Williston Basin Mapped Area ND #31-32H Picard IP: 275 Bopd BBC Acreage Oil Well BBC Operated Well BBC 2006 Dev. Location Horizontal Well Exploratory Well Scale: 640 ac = 1 Mile (with 40 ac grid) |
28 1/15/2006 3:24 AM 50% WI, 86% NRI 35 potential locations #11-27H McCrae 7,400’ true vertical depth 4,400’ lateral Waiting on completion 50% WI Richland County Bakken Pool Redwater Bakken Play Redwater Bakken Play Williston Basin, Montana Williston Basin, Montana Scale: 640 ac = 1 Mile (with 40 ac grid) BBC Acreage Oil Well Horizontal Well SOUTH DAKOTA MONTANA Williston Basin Mapped Area NORTH DAKOTA • Potential Pay Zones: Bakken Dolomite 7,400’, Judith River Sand 950’ • 4.3 MMBoe Net Unrisked Target Size • Stratigraphic Type Trap • BBC - Operator • 24,520 Gross, 11,468 Net Acres (12-31-05) • Horizontal Technology Play Sleeping Giant Field |
29 1/15/2006 4:16 AM Grand River Grand River Williston Basin, North & South Dakota Williston Basin, North & South Dakota Scale: 640 ac = 1 Mile (with 40 ac grid) • BBC – Operator • 26,304 Gross, 11,805 Net Acres (12-31-05) • 60% WI; 84% NRI 60% WI 60% WI (84% NRI) (84% NRI) #14-32H Nygaard, 60% WI 9,200’ true vertical depth 5,000’ lateral Pump testing N O R T H D A K O T A S O U T H D A K O T A Horizontal Red River “B” producer High potential Red River “B” zone Horizontal Exploration Trend SOUTH DAKOTA MONTANA Williston Basin Mapped Area NORTH DAKOTA • $1 MM 2006 Capex (1 Well) • 10 MMBoe Net Unrisked Target Size BBC Acreage Oil Well Luff operated Red River B Well Horizontal Well Exploratory Well |
30 1/15/2006 3:24 AM Production Production Q4 2005 Production Q4 2005 Production (MMcfe/d) (MMcfe/d) Williston Williston 7 7 Piceance Piceance 22 22 Powder Powder River River 22 22 Uinta Uinta 33 33 Wind River Wind River 50 50 Production Production (MMcfe/d) (MMcfe/d) Q4 Q4 2005 2005 24 24 69 69 134 134 Q4 Q4 2004 2004 Q4 Q4 2002 2002 Q4 Q4 2003 2003 Q1 Q1 2002 2002 24 24 89 89 Record of Growth Record of Growth |
31 1/15/2006 4:18 AM Investment In Our Asset Base Investment In Our Asset Base 2002 2003 2004 2005E 2006E Capital Expenditures Capital Expenditures (millions) (millions) $135 $135 $31 $31 $45 $45 $152 $152 $138 $138 $209 $209 $310- $320 Acquisitions Acquisitions Base Capex Base Capex 2006 Capex 2006 Capex $350 million $350 million Piceance Piceance 36% 36% Uinta Uinta 29% 29% Wind Wind River River 14% 14% Other Other 21% 21% Record of Growth Record of Growth Discretionary Cash Flow Discretionary Cash Flow (millions) (millions) Q2 Q2 2002 2002 Q4 Q4 2002 2002 Q4 Q4 2004 2004 Q3 Q3 2005 2005 $3 $3 $3 $3 $28 $28 $48 $48 Q4 Q4 2003 2003 $15 $15 Exploration Exploration 19% 19% Development Development 67% 67% Other 2% Other 2% Facilities Facilities 4% 4% Acreage 5% Acreage 5% G&G 3% G&G 3% $350 |
32 1/15/2006 3:34 AM Mar Mar 2002 2002 Dec Dec 2002 2002 Dec Dec 2003 2003 Dec Dec 2004 2004 Dec Dec 2005 2005 1,205 1,205 959 959 667 667 160 160 46 46 Net Undeveloped Acres Net Undeveloped Acres (thousands) (thousands) Record Of Growth Record Of Growth Investment In Our Asset Base Investment In Our Asset Base Mar Mar 2002 2002 Dec Dec 2002 2002 Dec Dec 2003 2003 Dec Dec 2004 2004 292 292 130 130 58 58 204 204 Net Proved Reserves Net Proved Reserves (Bcfe) (Bcfe) 341 341 Dec Dec 2005 2005 |
Peter’s Point #6-7, West Tavaputs, Uinta Basin, Utah |
34 1/15/2006 3:35 AM January 2006 January 2006 Appendix Appendix |
35 1/15/2006 3:35 AM Rocky Mountain Pipelines Rocky Mountain Pipelines COLORADO INTERSTATE GAS OVERTHRUST SOUTHERN STAR KMI KERN RIVER NORTHWEST PIPELINE TRANS COLORADO LOST CREEK CHEYENNE PLAINS EXISTING PIPELINES WYOMING INTERSTATE COMPANY (WIC) TRAILBLAZER WILLISTON BASIN INTERSTATE FORT UNION THUNDER CREEK QUESTAR PENDING/PROPOSED EXPANSIONS WBI GRASSLANDS BISON NOTE: line thickness does not depict pipeline capacity, it is only graphic representation to show approximate pipeline location OKLAHOMA ARIZONA NEW MEXICO POWDER RIVER POWDER RIVER GREEN RIVER GREEN RIVER Opal Cheyenne KANSAS SOUTH DAKOTA NEBRASKA MONTANA IDAHO COLORADO UTAH WYOMING WIND RIVER WIND RIVER WIC ENTEGRA KM – SEMPRA ROCKIES EXPRESS EL PASO – CONTINENTAL CONNECTOR DJ/EASTERN CO DJ/EASTERN CO BIG HORN BIG HORN Sempra Rockies Express |
36 1/15/2006 4:28 AM • • World Class Structure World Class Structure • • Multiple Pay Horizons Multiple Pay Horizons • • Multiple Drilling Inventories in Each Field Multiple Drilling Inventories in Each Field East - East - West Seismic Profile West Seismic Profile Waltman Arch Waltman Arch West West East East 15,000’ Mesaverde Mesaverde 6000’ uplift Lance Lance Cody Cody Frontier Frontier Muddy Muddy Tensleep Tensleep Basement Basement Fort Union Fort Union Meeteetse Meeteetse Raderville Raderville Madison Madison 15+ miles 15+ miles |
37 1/15/2006 3:47 AM Williston Basin Williston Basin Horizontal Technology Play Horizontal Technology Play • Predominantly Fee Lands • Oil Component • $29 MM 2006 Capex (14+ wells) • 6 MMcfe/d Net Production, December ‘05 • 126,001 Net Undeveloped Acres (12-31-05) • 32 Bcfe YE ’05 Proved Reserves BBC Acreage Oil Field Gas Field SOUTH DAKOTA MONTANA Williston Basin Mapped Area NORTH DAKOTA Grand River Red River “B” Play Grand River Red River “B” Play Scale in Miles 0 30 Cedar Hills Field Indian Hills Madison Play Target-Red Bank Madison Play Red Bank Extension Madison Play Lyco Sale $421 MM Lyco Sale $421 MM Red Water Bakken Play Mondak Bakken Play Hebron Bakken Play |
38 1/15/2006 3:47 AM Target 85 -100% WI Central Williston Central Williston Williston Basin, Montana & North Dakota Williston Basin, Montana & North Dakota Madison and Bakken Trends Red Bank 90 -100% WI SCALE 1 Township = 36 sq mi Red Bank Extension 60% WI Harding Madison Nameless Madison Madison Indian Hills Madison 35-75% WI Target/Red Bank/Red Bank Extension Multi-Pay Potential Mondak Bakken Bakken 22-100% WI 22 -100% WI - 100% WI 100% WI Red Water Bakken 50% WI Hebron 50 -100% WI • 89,929 Net Undeveloped Acres (12-31-05) BBC Acreage Oil Well Completed 2005 well 2005 Dev. Location Exploratory Location |
39 1/15/2006 3:47 AM Indian Hills Indian Hills Williston Basin, North Dakota Williston Basin, North Dakota Scale: 640 ac = 1 Mile (with 40 ac grid) 35 - 35 - 75% WI 75% WI Horizontal Madison Potential Foreman Butte Indian Hills BBC Acreage Oil Well BBC Operated Well 2005 Dev. Location Horizontal Well #44-11H Schmitz 42% WI • 13,424 Gross, 9,735 Net Acres (12-31-05) • $2 MM 2005 Capex (1 well) • Potential Pay Zones: Madison and Ratcliffe Vertical Depth 9,100’-9,300’ • 2.5 MMBoe Unrisked Target Size SOUTH DAKOTA MONTANA Williston Basin Mapped Area NORTH DAKOTA |
40 1/15/2006 3:47 AM Mondak Bakken Play Mondak Bakken Play Williston Basin, Montana & North Dakota Williston Basin, Montana & North Dakota Nance Bakken Discovery 250 Bopd 6 locations 22% WI 9 locations 100% WI $825/ac. $825/ac. $910/ac. $910/ac. $710/ac. $710/ac. $580/ac. $580/ac. $750/ac. $750/ac. Burlington locations $1,792/ac. $1,792/ac. $310/ac. $310/ac. Scale: 640 ac = 1 Mile (with 40 ac grid) BBC Acreage Recent BLM Sale Oil Well Horizontal Well SOUTH DAKOTA MONTANA Williston Basin Mapped Area NORTH DAKOTA McKenzie Fed #14-31H 22% WI Drilling (Non-operated) • 9,943 gross, 6,486 net acres (12-31-05) • $9 MM 2005 Capex (5 wells) • Potential Pay Zones: Bakken 10,300’ Vertical Depth, 4,700’ Lateral • 2.25 MMBoe Unrisked Target Size |
