Ed LoCricchio - Granite Wash Play Overview, Anadarko Basin

Introduction and Play Highlights

• Granite Wash play extends over 130 miles across 7 counties in the Anadarko Basin covering 2.5 million acres.
• Multi-stacked resource play concentrates value with potential of 40 Hz wells/section in Granite Wash.
• There are almost no federal leases.
• Established infrastructure is present.
• Landowners and state governments are industry-friendly.
• Range of cost of completed wells is $6-9MM.
• IP Range 50-3,500 BO and 3,000-30,000 MCFGPD.
• EUR Range 3-17 BCFE.
• Total Recoverable resources potential of 500 TCFE, (114 BBOE including NGL’s).

Conclusion

• Desmoinesian Granite Wash Play in the Anadarko Basin is one of the most active plays in the Continental United States.
• Clastics shed from the Wichita Mountain-Amarillo Uplift were deposited in the Anadarko Basin by sediment gravity flows, creating a massive submarine sand complex.
• Anomalously pressured hydrocarbon system, both under- and overpressured.
• Produces both oil and gas, ratios vary laterally and vertically.
• Minimum of fifteen separate reservoirs.
• Advent of horizontal drilling technology and isolated multi-stage fracture stimulation has revolutionized play.
• New technology has enabled development of a giant field within a mature basin.
• As mapped today this field will take decades to develop, with new isolated reservoirs still being discovered.