Principles of Exploration Prospect Acquisition

1) Focus​

a.   Upper Gulf Coast Texas and South Louisiana

​

b.   Conventional Sandstone Projects Only - no shale plays, horizontal or tight gas projects

​

2) Evaluation 

a.   Thorough review of Land, Geology, Geophysics, and Engineering

​

b.    A unanimous agreement by reviewing staff to elect to participate in a project

​

3) Economics

a.    Projects must have a projected ROI of >3:1 with a realistic payout of <15 months from date of first production

​

b.    Flat commodity pricing at $3.00 gas and $60.00 oil