5 steps to wise oil investments

Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies.

Cole WhitneyMarch 2015“Gain knowledge though it cost you all … “

5 Steps to Wise Investments

Copyright © 2014, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 2

Welcome Attendees

CEO and CFOVP Corporate DevelopmentVP Asset


Our Conversation Today for Next 10 Minutes

The Ask! Commit to Operator Benchmarking and Best Practices Deep Dive

1. Recap & Level Set on Business Opportunity2. Knowledge Asset Continuum for Wise Investments3. Q&A and Open Discussion


Where are we on the Knowledge Asset Continuum for Wise Investments?

Reactive Proactive

Open Acreage

QualityAcreage

Enhanced Production

Best Practice Completion

Descriptive AnalyticsStep 1: Beat competitors to open acreage Descriptive AnalyticsFind mineral owners fast with DI Courthouse


Step 2: Determine the best wells and causesin minutes versus months.

What Happened? Top 5 Oil Wells Performed Better

Why? Quality Acreage – Better Rock!

Look at Operator Benchmarking and Best

Practices for other reasons!

Base Line Performance

Diagnostic Analytics

Source: DI Analytics


Step 3: Build an earth model to increase likelihood of economic wells in new sweet spots.

Predictive Analytics

Source: DI Analytics Consulting Practice


Step 3: Drill with less risk to capital!How much would you pay DI for helping you realize 800K EUR in 3 years with

acreage grading?

Prescriptive Analytics

Source: DI Analytics

ROR 107%Shareholder Value Add 249,061$

Percent Gain 0.11%

Investment 23,300,000$ Contingency 4,000,000$ Can be reduced with "earth model"Market Cap 228,585,000$ Lease Purchase 3,000,000$ 6,000 Acres Grade C + D Eagle Ford Shale

Land Mgmt 1,500,000$ Land Legal, Land Man, Project ExpenseGross Revenue 52,000,000$ Brokers 400,000$ 1.5% FeeLOE (7,800,000)$ Drilling Program Cost 14,400,000$ Wells 5 Stages 32 Stage Cost 90,000$ Gross Margin 44,200,000$ Drill & Complete 2,880,000$ Per Well (Baker Hughes FracPoint)Net Revenue 33,150,000$ EUR @ 3 Years 800,000 Used to Match Option HorizonPV Net Revenue 24,906,086$ NRI 75%

LOE 15%Oil Price 65$ Blended Rate Over 3 Year Horizon

EPS Accretion 0.5339$ Option Years 3Forward P/E 9.18 Cost of Capital 10%Stock Price Impact 0.01$ Shares Outstanding 46,650,000

P/E 0Stock Price 4.90$

http://finance.yahoo.com/q?s=CRK 22-Jan-15

Financial Calculations E&P Inputs

Shareholder Calculations Shareholder Inputs


Step 4: Optimize on best practices. Prescriptive Analytics

Grading 11bp Market Cap

Stages & Length

Proppant

Geo SteeringSpacing


Step 5: Benchmark results like stock analysts! Descriptive Analytics

Peak Rate Deviation from Median

Acre

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Gra

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Our Conversation Today for Next 10 Minutes

The Ask! Commit to Operator Benchmarking and Best Practices to refine and deploy a fungible knowledge asset.

Recap & Level Set on Business Opportunity Knowledge Asset Continuum for Wise Investments3. Q&A and Open Discussion

5 steps to wise oil investments

Data & Analytics