Mississippi State

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B
R
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ATTRIBUTES OF PERSONAL SUCCESS

• Youre Selling, Somebody is Buying
• Entrepreneurial Spirit is Critical
• Accountability

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ATTRIBUTES OF BUSINESS SUCCESS

• Understand Your Market
• Differentiate Yourself
• See the Future
• Its not Just the Idea.........

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CORPORATE HISTORY
Burlington Northern Resources Division
Unicon
Continuing Western Canadian expansion, BR
acquires Canadian Hunter
BR Louisiana Land and Exploration merge
Southland Royalty
Diamond Shamrock Offshore
Milestone Petroleum
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BR expands to Western Canada through agreement
to purchase Poco Petroleums
MERIDIAN OIL
El Paso Exploration
Union Texas Petroleum
1900 -------- 1978 -------1984 ---- 1985 ---1986
------ 1990 ------- 1994 -------- 1996 ---------
1997 --------------------------10/97--------------
1999------------2001
Burlington Resources Formed in 1988
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COMPANY SUMMARY
Market Capitalization, B ?7.0 Enterprise Value,
B ?11.3 2001 Cash Flow, B 1.9 Reserves, TCFE
11.8 Production, BCFE/D 2.7 Annual Drilling
Program (Wells) 600-800
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2002 CAPITAL PROGRAM
1.3 Billion Total
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RESERVES POSITION
11.8 TCFE
North American Gas
North American Oil
International Gas
International Oil
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PROVED NORTH AMERICAN GAS RESERVES
TCF
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NORTH AMERICA NATURAL GAS POSITION
Largest of U.S. Independents
RESERVES
PRODUCTION (2Q 2001)
(TCF)
(BCF/D)
Includes recent acq./mergers, reserves are
2000 reported
Year-end 2000 production figure
Sources JS Herold Annual Reports, as of
12/31/00
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GLOBAL OPERATIONS
CANADA
EAST IRISH SEA
U.S.
CHINA
EGYPT
ALGERIA
PERU
ECUADOR
GABON
Gas
Oil
ARGENTINA
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CORE AREAS
WESTERN CANADA
ROCKY MOUNTAINS
SAN JUAN BASIN
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COMPETITIVE ADVANTAGES

• Program Drilling
• Cost Control
• Operational Expertise

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SAN JUAN BASIN
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SAN JUAN BASIN New Mexico / Colorado

• Operated Gas Production, MMCF/D 1,200
• Operated Wells 6,500
• Projects per Year 800

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GAS PRODUCTION GROWTH
San Juan Example
750-800
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SAN JUAN COST PERFORMANCE
Mesaverde Average Well Cost ( Thousand)
23 cost reduction over 3 years
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SAN JUAN PRODUCTION MANAGEMENT
Mesaverde 80-Acre Infill Progam
Study Area Pressures
Recovery _at_ 160-acre Spacing 44
Resource 49
Incremental Recovery _at_ 80-Acre Spacing 7
1950s
1998
Abandonment
Estimated Gas-in-Place 28.5 TCF
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MADDEN FACILITY Fremont Co., WY
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WIND RIVER BASIN Madden Field
Management Challenges

• Drilling Depths and Costs
• Pipeline and Processing Infrastructure
• Geophysical Interpretation
• Reservoir Management

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MADDEN FIELD Lower Ft. Union Drilling Costs

• Reduced Drill Time - 23 Days
• Gross Cost Savings - 600M/Well

Depth (Feet)
Pre-1998
Current
Days
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MADDEN FIELD Wind River Basin, WY
BH 6-27 TD 25,855 ft.
4-36
7-34
1-5
5-6
2-3
LOST CABIN GAS PLANT
N
BH 8-35 Drilling
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MADDEN FIELD Madison Drilling Costs
Completed Tied-in Cost (MM)
Bighorn Madison
4-36
5-6
40.3
30.7
4-36 Actual
Depth (Feet)
5-6 Actual
Days
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TOTAL MADDEN PRODUCTION
(MMCF/D)
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WHY CANADA?

• Competitive Advantages
• Large Natural Gas Resource
• Changing North American Supply/Demand Picture

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HENRY HUB Gas Prices
1999 NPC Projections
Price (Nominal /mmbtu)
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HENRY HUB Gas Prices
1999 NPC Projections
Price (Nominal /mmbtu)
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CANADIAN STRATEGY
ALBERTA
SHALLOW GAS HEAVY OIL
DEEP GAS
Edmonton
SASKATCHEWAN
BRITISH COLUMBIA
Calgary
SHALLOW GAS CONVENTIONAL OIL
SHALLOW GAS
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ACQUISITION OF POCO PETROLEUM
Poco Petroleum
ALBERTA
SASKATCHEWAN
BRITISH COLUMBIA
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CANADA Gas Production
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Avg. 473
Avg. 397
MMCF/D
4th Quarter 2001 does not include the
acquisition of Canadian Hunter
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ACQUISITION OF CANADIAN HUNTER
Poco Petroleum
ALBERTA
Canadian Hunter
SASKATCHEWAN
BRITISH COLUMBIA
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CANADIAN HUNTER Deep Basin Land
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DEEP BASIN OVERVIEW
San Juan Basin Gas Fairway
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CANADIAN HUNTER GAS PRODUCTION
14 / YR
MMCF/D
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CURRENT CANADIAN LAND POSITION
Poco Petroleum
ALBERTA
Canadian Hunter
Chevron JV Lands
ATCO Viking Kinsella
SASKATCHEWAN
BRITISH COLUMBIA
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CHINA Sichuan Basin
QIULIN XiangXi Prospect

• Significant Resource Basin
• BR Core CompetencyTight Gas
• Gas Market Potential

CHUANZHONG BLOCK 1.8 MILLION ACRES
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SUMMARY

• One of Largest U.S. Independents
• Proven Gas Development Expertise
• Focused on Efficiency
• Committed to North American Natural Gas

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