2013 Annual Report on Oil and Gas Activities

State Oil and Gas Council Meeting

April 16, 2014

Missouri’s Oil Production in 2013

• 601 active producing oil wells in 2013• 200,566 barrels of oil produced• Valued at about $17.7 million• Price per barrel ranged $75.74 to $91.32• Currently produced in six counties• 20 companies operated in 2013

– Currently 13 producing companies

Average Price for Missouri Oil

• Average price per barrel in 2013 - $86.82 (↑~6%) (ranging from $75.74 to $91.32)

• Average price per barrel in 2012 - $83.22 (↓~4%) (ranging from $69.07 to $94.22)

• Average price per barrel in 2011 - $86.94 (↑~25%) (ranging from $71.28 to $102.61)

• Average price per barrel in 2010 - $69.84 (↑~32%) (ranging from $58.66 to $81.02)

Historic Oil Production

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MISSOURI2013 Crude Oil Production By Operator

(Operators Producing >1.0% of Production)

bbls % of total• Kansas Res. Expl. & Dev.------ 82,055 (41.78%)• S&B Operating--------------------- 33,839 (17.24%)• Running Foxes Inc.--------------- 24,087 (12.01%)• Investment Equipment----------- 16,340 (8.46%)• Colt Energy, Inc.------------------- 13,542 (6.75%)• Laclede Gas Company----------- 12,002 (5.98%)• Laclede Oil Company------------- 9,728 (4.85%)• L.T Oil ---------------------------------- 2,872 (1.43%)• T-5 Leasing--------------------------- 2,852 (1.42%)

MISSOURI2013 Crude Oil Production By Operator

(Operators Producing <1.0% of Production)

bbls % of total• Palo Petroleum---------------------- 1,606 (0.83%)• Zero CO2------------------------------ 429 (0.20%)• AltaVista Energy-------------------- 429 (0.20%)• Encore --------------------------------- 150 (0.07%)• SCZ ------------------------------------- 64 (0.03%)• IGWT------------------------------------ 2 (0.001%)

2013 Total Crude Oil Production---------- 200,566 bbls

2013 Oil Producing Counties

Cass Co.118,673 bbls (59%) $10,573,013

Atchison Co. 19,968 bbls (9%) $1,440,840

Vernon Co. 26,255 bbls (13%) $2,230.089

Jackson Co. 16,937 bbls (8%) $1,504,465

St. Louis Co. 22,731 bbls (10%) $1,993,748

Total Production 200,556 bbls

Total Value $17,706,158

Ray Co.2 bbls (<.01%)

Oil Producing Countiesand Known Fields

Lange Field ofSt. Louis County

Cass Co.Missouri’s Top OilProducing County

• 118,673 bbls• 59% of the total oil

produced in Missouri

Clark-Miller Oil PoolMissouri’s Top

Oil Producing Pool• 115,894 bbls

• 58% of total oil produced in Missouri

Oil Producing Countiesand Known Fields

• In process of updating Oil and Gas Fields of Missouri, OFM-81-54-OG with plans for future posting on Oil & Gas web page

• Clark-Miller Oil Pool, with council established boundaries, posted on Oil & Gas web page

Missouri’s CommercialGas Production in 2013

• 7 active producing commercial gas wells in 2013• Over 8,777 MCF of gas produced• Valued at over $32,014• Price per MCF averaged $3.65• 86% in Vernon County, 14% in Clinton• 2 active company / 0 inactive

Historic Commercial Gas Production

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Missouri’s Private Gas Wells

• 490 private gas wells• 54 are active

– 34 are in Cass County• 436 wells with unknown status• Five (5) counties have Active

private gas wells– Cass, Clay, Clinton, Platte and

Jackson• Production reporting is

exempted

Class II Injection Wells• Wells that inject fluids in connection with

oil/gas production° Disposal of produced salt water° Injection of gas as a liquid in a storage project° Injection of fluids for enhance recovery

• Missouri has 576 Class II wells° Saline Water Disposal - 15° Gas Storage – 54 (Technically UIC Class V

Wells)° Enhanced Oil Recovery - 561

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Howell

Cass

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Saline

Henry

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Macon

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Vernon

Franklin

Wayne

Miller

Shannon

Taney

Adair

Boone

Carroll

Wright

Benton

Oregon Ripley

Knox

Douglas

Phelps

Johnson

Clark

Laclede

Ralls

St Clair

Jasper

Dade

Nodaway

Callaway

Osage

Stoddard

Clay

Greene

Perry

Chariton

Barton

Lincoln

Audrain

Lewis

Monroe

Dallas

Reynolds

Sto

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Cole

Harrison

Camden

Scott

Sullivan

Newton

Crawford

Carter

Cedar

Morgan

Maries

Cooper

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Jackson

Platte

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Shelby

Gentry

Jefferson

Webster

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Lafayette

PutnamMercer

Marion

St Louis

Atchison

Christian

Lawrence

Dekalb

Howard

Clinton

Warren

Grundy

Madison

Andrew

St Charles

Hickory

McDonald

Caldwell

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Randolph

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15 Saline Water Disposal Wells

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Cass

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Macon

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Vernon

Franklin

Wayne

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Shannon

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Adair

Boone

Carroll

Wright

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Oregon Ripley

Knox

Douglas

Phelps

Johnson

Clark

Laclede

Ralls

St Clair

Jasper

Dade

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Stoddard

Clay

Greene

Perry

Chariton

Barton

Lincoln

Audrain

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Reynolds

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Jefferson

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Christian

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Clinton

Warren

Grundy

Madison

Andrew

St Charles

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McDonald

Caldwell

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54 Class VGas Storage Wells

188 EOR Wells

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Dent

Pike

Bates

Barry

Polk

Linn

Ray

Iron

Howell

Cass

Ozark

Saline

Henry

Pettis

Macon

Butler

Holt

Vernon

Franklin

Wayne

Miller

Shannon

Taney

Adair

Boone

Carroll

Wright

Benton

Oregon Ripley

Knox

Douglas

Phelps

Johnson

Clark

Laclede

Ralls

St Clair

Jasper

Dade

Nodaway

Callaway

Osage

Stoddard

Clay

Greene

Perry

Chariton

Barton

Lincoln

Audrain

Lewis

Monroe

Dallas

Reynolds

Sto

ne

Cole

Harrison

Camden

Scott

Sullivan

Newton

Crawford

Carter

Cedar

Morgan

Maries

Cooper

Pulaski

Jackson

Platte

Du

nkl

in

Shelby

Gentry

Jefferson

Webster

Daviess

Lafayette

PutnamMercer

Marion

St Louis

Atchison

Christian

Lawrence

Dekalb

Howard

Clinton

Warren

Grundy

Madison

Andrew

St Charles

Hickory

McDonald

Caldwell

ScotlandWorth

NewMadrid

Randolph

Ga

sco

na

de

StFrancois

CapeGirardeau

SteGenevieve

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561 Enhanced Oil Recovery Wells

2013 Permits Issued by DGLS• Cass Cnty. (207) 19 SCZ resources, LLC.

160 Kansas Resource Exploration & Development17 S & B Operating, LLC 9 Town Oil Company

2 Running Foxes Petroleum, Inc.

• Jackson Cnty. (34) 33 JTC Oil Company 1 Barbra A. Giblin Revocable Trust

• Shelby Cnty. (4) 2 Baker, John Phillip 2 Buzzard, Warren, R

• Vernon Cnty. (372) 6Colt Energy, Inc. 306Murchison Oil & Gas, Inc.

31Palo Petroleum, Inc. 10 Running Foxes Petroleum, Inc.

18 Zero-CO2, LLC

1 Epic Oil Extractors, LLC Total Permits - 617

Historic Permitting

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2013 Permitted Well Types

Well Type Total ActiveUnder

Construction Shut-inTemporarily Abandoned Plugged Cancelled

Oil Production 145 6 130 0 0 3 6

Injection EOR 129 0 127 0 0 0 2

Injection SWD 0 0 0 0 0 0 0

Stratigraphic Test 323 0 0 0 0 323 0

Observation Well 20 2 2 0 0 0 0

Private Gas 0 0 0 0 0 0 0

Commercial Gas 0 0 0 0 0 0 0

Total 617 24 259 0 0 326 8

Missouri Wells Plugged(oil/gas/injection/stratigraphic test)

2010 Wells Plugged 532011 Wells Plugged 342012 Wells Plugged 442013 Wells Plugged 348

Mechanical Integrity Tests & Lease Visits

• MIT were performed on 190 wells total (188 injection wells) in 2013.

• MGS staff witnessed 70 (37%) of all MIT conducted.

• 10 lease visits were performed in 2013• Prepped and plugged 0 abandoned wells with

O&G remedial funds• The unit responded to over 1,546 oil/gas phone

calls and inquiries during 2013.

Oil and Gas Remedial FundBalance on 03/1/14

$11,851

Total Bonding Held as of 03/19/14

$1,611,009

Thank You