Strategy A: Focused Exploration Plays

Identify, lease and test new plays both conventional and unconventional. There aremultiple opportunities across the US especially for source rock development and shallow oil plays. With a potential increases in natural gas prices a sub-strategy on gas plays can be developed that was not viable in the past. The following are basic tactics for this strategy:

• Locate new reservoir opportunities based on current analogues of successful programs especially shale plays.

• Rank new play opportunities based on reservoir quality, cost of development and risked reserves.

• Lease/acquire acreage on plays with the highest probability of success especially those with the lowest entry costs.

Strategy B: Structural Field Acquisition

Locate, acquire, and develop mature structural fields that have produced significant quantities of oil and gas. Most of these structures are still capable of producing more hydrocarbons based on current economics using the following tactics:

• Understand oil and gas productivity through extensive analysis of reservoir data.

• Application of modern applications in drilling, completion, and production especially new stimulation designs.

• Use of advanced seismic methods that allow identification of undrilled or under-drilled pockets of hydrocarbons in these

• old fields.

Strategy C: Bypassed PUD Development Plays

Identify and acquire areas of shallower bypassed reservoirs around second tier resource plays. “Shallower” in this case is relative and can mean reservoirs as deep as 10,000 ft in depth. The following are tactics for these bypassed plays:

• Locate areas of bypassed production with the highest potential based on the density of drilling for deeper horizontal

• plays.

• Identify corresponding areas of deeper horizontal drilling that were less productive than expected.

• Map and make a development plan using modern drilling and completion techniques.