Empresa Energy, L.P. Lower Smackover / Brown Dense Chronology and Update January 18, 2013.

Empresa Energy, L.P.

Lower Smackover / Brown DenseChronology and Update

January 18, 2013

Empresa Energy, L.P.2

Empresa Energy LLC Empresa Energy is a privately held LLC formed in 2004 to pursue

unconventional plays

We developed a significant position in NLA and East Texas and started drilling CV wells in ArKlaTex in 2005

Our CV play began to be dominated by the Haynesville by 2007

Participated in 40+ Haynesville wells

We then facilitated the sale of a large mineral package and exited most of play by June, 2009

We prepared an in depth regional study and developed a position in the Eagle Ford liquids window beginning in fall of 2009

Preparing to drill when approached in July, 2010 about an early pre-emptive sale and exited Eagle Ford

After exiting the Eagle Ford we developed ground floor positions in a number of emerging unconventional plays, one of which is the Brown Dense


Lower Smackover Brown Dense

Lower Jurassic aged

Organic-rich, basinal limestone

w/ thinly interbedded organic-rich shale

Sandy in some areas

Regional, world class source rock

Sources reservoirs from Norphlet up to Tuscaloosa

Mature source from offshore GOM to near its updip limit onshore

Recent activity verifies potential as an unconventional reservoir


Brown Dense Play – N LA & S AR

WEST CARROLL

(083)

(065)

(035)

EAST CARROLL

MOREHOUSEUNION

(061)

(073)

(111)

(013)

LINCOLN

WEBSTER

CLAIBORNE

(119)

(017)CADDO

BOSSIER

MADISON

RICHLAND

OUACHITA

(049)

JACKSON

BIENVILLE

(015)

DESHA(041)

LINCOLN

DREW

(043)

(079)CLEVELAND

(039)

(025)

CALHOUNOUACHITA

(019)

(013)

NEVADA

(091)

HEMPSTEAD

(061)

CHICOT

(017)

(123)

ASHLEY

(003)

(067)

BRADLEY

(011)

UNION

(103)

(139)

(027)

COLUMBIA

(099)

(027)

(073)MILLER

LAFAYETTE

(057)

ISSAQUENA

055

WASHINGTON151

BOLIVAR

Monroe Field

Smackover Absent

SMKV ABSENT

INTRUSIVES/SILLS

SMACKOVER ABSENT

SMACKOVER ABSENT

FEET

0 90,000

PETRA 1/16/2013 9:30:16 AM

Arkansas

Louisiana Mis

siss

ippi

Brown Dense FairwayStateline Smackover Trend Oil Leg

Gas Leg


Locator Map

Te

xa

s

Arkansas

Mis

sis

sip

pi

Louisiana

100 MILES


Brown Dense Activity Map

Bayou De Loutre FieldSWN

Johnson21-1SWN

Doles & BMLSWN

Exxon Fee#2Weiser Brown

Known High Pressure Wells

Lillie FieldSWN

To be drilled

Manville 13-10

Arkansas

Louisiana

Endsley #1 24 H

Robertson #1H

Garrett 7-23 H

Denny #1-32H

Exxon Fee #2


Brown Dense - Key Area

Arkansas

Louisiana

Denny 1-32H

Garrett 7-32H

Exxon Fee #2

BML 31H

Johnson 21

Dean 31Doles 31H

Manvill 13-10

SWN PermitSWN Permit


Companies Operating in Play

1. EOG –Border Exploration

2. Pinebelt / SWN

3. Weiser Brown

4. Ankor/JW

5. Empresa Energy

6. Whiting Petroleum

7. Dan Hughes

8. Devon

9. Exxon / XTO


Land Status

Company Acres Units Wells

SWN 506,000 9 6

Empresa 63,000 3

Devon 40,000 1 1

JW/Ankor 20,000+/- 5 1

Whiting 20,000+/-

Dan Hughes 25,000 0 1

Exxon / XTO Large Fee Position

0 1

• Arkansas has established a 640 acre unit spacing pattern• Louisiana has established a 1280 acre unit spacing pattern


What to watch for in the near term

Further delineation of the high pressure area of the play will be critical

New SWN Permits New Units established by Ankor and Empresa

Production curves will be assessed in: BML Doles Dean

Will SWN recomplete the Johnson or Dean Wells as horizontal wells


Appendix


Brown Dense / Current Play

Target zone: Lower Smackover “C” or Brown Dense

Within the light oil to liquids-rich gas/condensate window

Play primarily focused in North LA and South AR

Depths between 7,500’ and 10,500’

Reservoir thickness between 300’ and 600’


Key Wells

• Border (EOG) - Endsley Well – August 2009

• Weiser Brown -Exxon Fee #2

• Cabot – Denny Well

• SWN – Robertson Well

• SWN – Garrett Well

• SWN - BML Well

• SWN - Dean Well

• SWN – Johnson Well

• SWN - Doles Well


Endsley 1-24H Well

• Endsley 1-24H Well – August 2009

• API #03073114640000

• Operator- Border Exploration, LLC (EOG)

• Location – S24-19S-26W

• Spud Date – 6/18/2009

• Status – PA 11/16/2009

• Notes- Well was rumored to have encountered H2S


ExxonMobil #2 Well

• Exxon-Mobil #2 Well

• API #17111256100000

• Operator – Weiser-Brown Operating Company

• Location – S12-22N-1E

• Spud Date – 3/10/2009

• Completion Date – 12/19/2012

• High Pressure 6,200 BHP

• Status – Vertical Well, LWR/Smackover, 504 Cond. BOPD, 1019 MCFD, GOR

2022/1, CK 10/64, 50 GVTY, FP 3500

• Notes: Well was T/A until it was recently completed over the holidays.


Robertson 18-19 1-15H Well

• Robertson 18-19 1-15H Well

• API #03027118430000

• Operator- Southwestern Energy Production Company


• Spud Date – 9/2011


• Status – Temporarily abandoned

• Notes – Well perforated from 8,835’ – 12,800’; Vert Depth of 9,200’,

Planned Horiz Length of 4,000’


Garrett 7-23-5 H Well

• Garrett 7-23-5 H Well

• API #17027224820000


• Location – S7-23N-5W

• Spud Date – 12/8/2011


• Status – Shut In

• Notes – Planned Vertical Depth of 10,700’, Planned Horizontal Lateral

Length of 7,900’


Denny 1-32H Well

• Denny 1-32H Well

• API #03139133010000

• Operator- Cabot Oil & Gas Corporation


• Spud Date – 10/14/2011


• Status – T/A

• Notes - The well has a permitted total vertical depth of 9,550 feet, and a

measured depth of 13,000 feet into the Lower Smackover.

• 4500 Horizontal Lateral


BML 31-22-1 H Well

• BML 31-22-1 H Well

• API #17111256220000



• Spud Date – 2/16/2012


• High Pressure - 5,700 BHP

• 10,400 vertical depth, 4,300 Lateral with a 19 stage frac

• Status – Producing,

• 24 hour producing rate of 421 BBLs of 50o gravity oil

• This well was planned to have a 9,000 foot lateral. Encountered high pressure while drilling


Johnson 21 Well

• Johnson 21 Well

• API #17111256240000



• Spud Date – 5/29/2012


• Unusually High Pressure

• Status – Testing.

• Notes – Well drilled and fracked as a vertical well


Dean 31 Well

• Dean 31 Well

• API #17111256250000


• Location – S31-22N-1E

• Spud Date – 7/10/2012


• Status – Producing (200 BO/Day)

• High Pressure

• 10,503 foot vertical well drilled and fracked


Doles 30-22-1 H Well

• Doles 30-22-1 H Well

• API #17111256260000



• Spud Date – 7/18/2012


• High Pressure

• 10,673 vertical depth with a 4,731 lateral. The well was planned to have a 6,000

foot lateral

• Status – Producing

• This is the last well drilled by SWN and is a key well for the play.


Mannville 13-10

• Manville 13-10

• API # 17111243170000

• Operator- LR Resources

• Location – Sec 13, 21N, 1W

• Spud Date – 7/26/84


• Status – P&A 4/16/86

• High Pressure (This is inferred due to high mud weight while drilling)

• This well was completed in the LWR Smackover


SWN Latest Investor Presentation

Empresa Energy, L.P. Lower Smackover / Brown Dense Chronology and Update January 18, 2013.

Documents

Transcript of Empresa Energy, L.P. Lower Smackover / Brown Dense Chronology and Update January 18, 2013.