![]() Widespread hydrocarbon source and reservoir rock across the Rockies History of conventional production in Rockies basins • Up to 12MMBoe fields dating back to 1957 • Up to 1.5 MMBoe/well • Natural fracturing key to conventional production • Wattenberg Field: Early indication of resource potential • Silo Field: Early application of horizontal drilling Niobrara: Expanding Rockies Oil Resource Niobrara oil production Niobrara gas production Williston Basin DJ Basin Powder River Basin Green River Basin Wyoming Colorado 1 Exhibit 99.5 |
![]() 2 Niobrara Depositional Environment Niobrara was deposited in ancient Cretaceous seaway 85 million years ago Organic shales throughout (source rock) East side: Higher carbonate content West side: Higher clay content Niobrara preserved in present-day basins Source: USGS 2005 |
![]() DJ Basin : 1 st Niobrara Basin to Take Off 3 ~5MM acres in thermally mature fairway 4 Billion Boe potential recoverable reserves • 320-acre spacing, 286 MBoe EUR per well (unrisked) 12 horizontal rigs drilling • 10 reported hz producers since June ‘09 • 27 hz wells completing • 90 permits in the last 90 days Early indications: • Repeatable commercial production • Up to 1,558 Bopd initial rates Niobrara horizontal permit Niobrara horizontal well WOC Niobrara horizontal producer Niobrara horizontal rig on location Silo Field ~11MMBo EOG discovery wells SM Energy EOG Thermally mature fairway Wattenberg Field ~4.2 Tcfe Noble 100 miles |
![]() ![]() ![]() DJ Basin Niobrara: Reservoir Description Targeted “B” bench • Chalk/limestone/organic shales • 50’ to 100’ thick • Depth: 6,000’ to 9,000’ • Porosity up to 16% • Average TOC ~3% • Vitrinite reflectance: 0.6 to 1.3 • Porosity and carbonate content vary across basin • Fracture and matrix deliverability 4 Niobrara “C” D Sand J Sand Sonneberg 2002 Typical Depth 4300’ 4800’ 6800’ 7100’ 7600’ 7800’ Niobrara “A” Niobrara “B” Ft. Hays Limestone Codell Sand Graneros Shale Greenhorn Limestone 3 J Sand Skull Creek Shale Dakota Sand Sussex (Terry) SS Pierre Shale Pierre Shale Shannon SS Pierre Shale NIOBRARA TYPE LOG Resistivity Porosity Gamma Ray “B” bench target Codell Niobrara 7300 7350 7400 7450 7250 7200 7150 7500 7550 7600 7650 |
![]() Continental’s Niobrara Acreage 5 CLR leasehold Niobrara horizontal permit Niobrara horizontal well WOC Niobrara horizontal producer Niobrara horizontal rig drilling CLR Pump House Project Area 100 miles Wattenberg Field Silo Field 73,000 net acres in Niobrara • 28% Colorado • 72% Wyoming 228 net potential locations (assuming 320-acre spacing) 53 MMBoe potential net reserves (unrisked) |
![]() ![]() ![]() Pump House Project: Weld Co., Colorado 6 Hereford Field Wattenberg Field NBL NBL NBL NBL CLR leasehold Niobrara horizontal permit Niobrara horizontal well WOC Niobrara horizontal producer Niobrara horizontal rig drilling A A’ Pump House Project CLR: Newton 1-9H 36 miles 14,400 net acres Located in the most active area of the play Newton 1-9H (79% WI) • 1,280-acre spacing planned • Q4 2010 spud date Acquiring 80 square miles of 3D seismic |
![]() ![]() ![]() ![]() Cross Section A to A’ 7 Niobrara TARGET A “B” Bench GR GR Resistivity Porosity Resistivity Porosity GR Resistivity Porosity EOG Hereford Field CLR Pump House Project Wattenberg Field A’ 7300 7350 7400 7450 6450 10% 10% 10% 6550 6660 6650 7150 7200 7250 7300 7400 7500 7250 7200 6400 6500 7100 7350 32 Miles |
![]() Common Early Stage Questions 8 Fracture or matrix production? • Conventional wells in resource plays have typically required natural fracturing for commercial production. • Niobrara displays both fracture and matrix production (Silo Field). • Technology taps into matrix Continuous reservoir? • General characteristic of resource plays, but lithology will vary across a play • Variations overcome by technology |
![]() 0.1 0.5 1 5 10 50 100 1 5 10 50 100 CV.Cum_oil ( Mbbl ) S G MCCONNAUGHEY 1 Fracture and Matrix Production Cumulative oil production (MBo) 9 Silo Field Vertical Well Matrix production 8 MBo Fracture production 8 MBo |
![]() 1 5 10 50 100 500 1000 1 5 10 50 100 500 1000 CV.Cum_oil ( Mbbl ) SWEETWATER 41-17 1H 10 Fracture and Matrix Production Matrix production 40 MBo Fracture production 100 MBo Silo Field Horizontal Well Cumulative oil production (MBo) |
![]() Rate-Time Plot, Horizontal Well 11 |
![]() Niobrara Production Model 12 |
![]() Niobrara Economic Models 13 Rates of Return % * Economics net of $7 differential. 1,280 Spacing Model CWC: $6.2MM EUR: 572 MBoe 640 Spacing Model CWC: $4.2MM EUR: 286 MBoe |
![]() 14 Questions? |