crimson exploration inc. -...

Johnson Rice 2008 Emerging Growth Energy Conference

Houston, TX

January 23, 2008

CRIMSON EXPLORATION INC.

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Certain statements included in this presentation are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Crimson Exploration Inc. (“Crimson” or “the Company”) cautions that strategic plans, assumptions, expectations, objectives for future operations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Some of the key factors which could cause actual results to vary from those Crimson expects include changes in natural gas and oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as the Company’s ability to access them, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting Crimson’s business. Statements regarding future production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes and the potential lack of capital resources. The SEC has generally permitted oil and gas companies, in filings made with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The Company and its independent third party reservoir engineers use the terms “probable” and “possible” to describe volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC's guidelines may prohibit the Company from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by the Company. All estimates of probable reserves in this presentation have been prepared by independent third party engineers. More information about the risks and uncertainties relating to Crimson’s forward-looking statements are found in the Company’s SEC filings.

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COMPANY PROFILE

Corporate OverviewNASDAQ bulletin board (TK: CXPO)

EV – approx $390MM; Fully-diluted equity cap of approx $130 million (com & pref)

Oaktree Capital Management as equity sponsor

Producing assets focused in South Texas / Texas Gulf Coast & South LA

Emerging plays in the DJ Basin, FW Barnett Shale and West Texas Barnett Shale

$289.5MM acquisition from EXCO Resources, Inc. in May 2007Pro Forma 2006 EBITDAX of $166 million

95 bcfe of proved reserves; 236 bcfe 3P (unrisked); 100+ drilling locations

>83,000 gross acres in prolific producing trends; 255 producing wells

Management familiarity with assets

Pro forma proved reserves of 141 Bcfe @ 1/1/07

79% proved developed; 84% natural gas; 6.8 year proved reserve life

~80% operated; ~70% average working interest

Approx 50 mmcfe/d current production (December 2007)

COMPANY HISTORY

Gulf West Energy, predecessor to Crimson, obtains funding from Aquila Energy Capital – buys Colorado, South Texas, and Grand Lake/Lacassine properties

Aquila Energy Capital withdraws funding – merchant banking meltdownNo capital for development/exploration

December 2004 – in desperate financial state

Oaktree Capital acquires stake though preferred equity infusion (Feb)CEO Allan Keel and CFO Joseph Grady join Company in connection with Oaktree recapitalization (Feb)

Expansion of management team

Reincorporated in Delaware – renamed Crimson Exploration Inc. (June)

Evaluated/pursued approximately $3B in various acquisition opportunities

Announces acquisition of assets from EXCO (May)

3-prong strategy of acquisition, exploitation, and exploration

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2000 –

2001

2002 –

2004

2005

2006

2007

Future

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AREAS OF OPERATION (proforma for EXCO Property Acquisition in 5/2007)

Note: Proved reserves as of December 31, 2006 and are third party engineered. 3P reserves only include the EXCO assets’ unrisked probable and possible reserves per Crimson management. Strip PV-10% as of May 8, 2007.

(1) Based on average daily production in January 2007.

Proved Reserves (Bcfe): 17.1

% Gas: 47%

Production (MMcfe/d)1: 9.4

Strip PV-10%: $78

3P Reserves (Bcfe): 17.1


% Gas: 87%


Strip PV-10%: $464



% Gas: 84%


Strip PV-10%: $567

Reserve Life (Years): 6.8x


Total


% Gas: 75%


Strip PV-10%: $24


Colorado

Texas Louisiana

($ in millions)

SOUTH TEXAS

WEST TEXAS GULF COAST

DJ BASIN

BARNETT SHALE

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PDP 73%

PDNP 14%

PUD 13%

PDP 54%

PDNP 25%

PUD 21%

Louisiana 12%

Colorado 6%

Texas 82%

PROVED RESERVE DISTRIBUTION – 1/1/07 (proforma for EXCO property acquisition in 5/2007)

Pro Forma Reserves by Category Pro Forma PV-10% by Category (1)

Pro Forma Reserves by Region Pro Forma PV-10% by Region (1)

141 Bcfe $567 MM PV-10%

Louisiana 14%

Colorado 4%

Texas 82%

(1) Pre-tax figure based on proved reserves and NYMEX strip as of May 8, 2007.

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NAME AND TITLE EXP. EXPERIENCE

Allan D. Keel President, CEO, Director

>25 VP/GM Westport Resources, President/COO Mariner Energy & Woodside Energy (USA)

Energen

E. Joseph Grady SVP, CFO

>30 CFO - Texas Petrochemicals Holdings, Inc. CFO - Forcenergy, Inc. & Pelto Oil Company Deloitte & Touche

Jay S. Mengle SVP, Operations & Engineering

>25 Shelf Asset Manager – GOM for Kerr-McGee Senior management roles at Norcen Explorer and Westport Resources

Tracy Price SVP, Land & Business Development

>25 SVP – Land / Business Development at Houston Exploration Manager of Land / Business Development of Newfield Exploration Land Manager for Apache Corporation

Thomas H. Atkins SVP, Exploration

>25 General Manager – GOM for Newfield Exploration Exploration Manager for EOG Resources

MANAGEMENT TEAM

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NAME AND TITLE EXPERIENCE

Allan D. Keel President, CEO, Director

Above

Lee B. Backsen

Continental Land & Fur Co. and Grant Geophysical Senior exploration management positions with Burlington Resources, UMC

Petroleum, General Atlantic Gulf Coast, Kerr-McGee, Pelto Oil Co., Spectrum Oil and Gas Co. and Shell Oil Co.

Skardon F. Baker Senior Vice President, Oaktree Capital Management

Joined Crimson’s board in February 2005 JP Morgan Investment Banking Vice President in JP Morgan’s M&A group

B. James Ford Managing Director, Oaktree Capital Management

Director of EXCO Resources, Inc. ,Cequel Communications, Trenton Media and Red Technology Alliance

Consultant with McKinsey & Co

Lon McCain

Director of Continental Resources, Inc. and Cheniere Energy Inc. Previous CFO of Westport Resources Corporation Principal of Petrie Parkman & Co. Senior financial management positions with Presidio Oil Co., Petro-Lewis

Corporation and Ceres Capital

BOARD OF DIRECTORS

Pre-EXCO Recent Open Fully-StaffedHeadcount Hires Positions Headcount

Administrative 8 6 8 22Exploration 2 7 1 10Land 4 5 1 10Production 3 14 1 18 Total 17 32 11 60

ORGANIZATION SUMMARY

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FELICIA FIELD AREA

Area of Operations Highlights

Field Summary

Operators Crimson/Cimarex/Edge

Working Interest 10 - 75%

Proved Reserves (Bcfe) – 1/1/07 30.0

% Gas 85%

% PDP 96%

Producing Wells 23

12/07 Production (MMcfe/d) 18.4

Field Overview

Legacy Westport Resources property

21,658 gross / 12,910 net acres

Yegua, Cook Mountain, Wilcox and Vicksburg reservoirs (9,000’to 15,000’)

Well defined hydrocarbon traps

Five 3-D surveys total over 500 sq miles within immediate trend

Upside Potential

Probable & Possible Reserves: ~72 Bcfe

30 amplitude related prospects (3 PUD, 10 Prob, 17 Poss)

Abandonment pressure could add as much as 25 Bcfe (net)

2007 Actual & 2008 Plans

2007: Drilled 4 successful wells out of 5 total

2008: Drill 10 gross wells total (costs: 8/8)

10 (6.1 Net) exploitation wells: ~$3.5MM to drill, ~$5MM to D&C

Felicia(Liberty County)

Felicia(Liberty County)

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CAGE RANCH FIELD AREA

Area of Operations

Field Summary

Operators Crimson/CHK/El Paso/Forest

Working Interest 85%

Proved Reserves (Bcfe) -1/1/07 28.0

% Gas 94%

% PDP 24%

Producing Wells 43


Highlights

Field Overview


18,623 gross acres / 15,168 net acres

Frio and Vicksburg reservoirs (8,500’ to 12,000’)

Highly faulted structural traps

Ten 3-D seismic surveys covering 176 square miles of outlined area

Upside Potential

PUD Reserves: ~13 Bcfe


Identification of additional shallow Frio oil traps

Evaluation of Deeper Vicksburg sands below existing production

2008 Plans

Drill 4 gross wells total (costs: 8/8)

2 (1.9 Net) PUDs: ~$2.0MM to drill, ~$2.7MM to D&C

2 (2 Net) exploitation: ~$2.0MM to drill, ~$2.5MM to D&C

Cage Ranch(Brooks County)

Cage Ranch(Brooks County)

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SW SPEAKS FIELD AREA

Area of Operations

Field Summary

Operators Crimson/El Paso/XTO

Working Interest 35%


% Gas 97%

% PDP 58%

Producing Wells 24


Highlights

Field Overview



Miocene to Deep Wilcox reservoirs (2,000’ to 17,000’)

Upside Potential



26 identified drilling locations

Multiple behind pipe opportunities


2007: Drilled 1 successful well out of 1 total



1 (0.8 Net) exploitation: ~$4.0MM to drill, ~$6.0MM to D&C

Speaks(Lavaca County)

Speaks(Lavaca County)

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STX – LOBO

Area of Operations

Field Summary

Operators Paloma/CHK/El Paso/Forest

Working Interest 20-24%


% Gas 100

% PDP N/A


Highlights

Field Overview

Non Operated Joint Venture

Lower Wilcox Lobo

2,800 Gross Acres/ 550 Net Acres

Well defined Hydrocarbon System

High Probability of Success

Upside Potential

Mulitiple Pays, Complex Geology


2007: Drilled 6 successful wells out of 9 total


9 (2.0 net) Exploration wells: ~$1.6MM to drill, ~$2.7MM to D&C

STX – Lobo(Zapata & Webb

Counties)

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DJ BASIN

Area of Operations

Field Summary

Operators Crimson/Anadarko/EnCana/Forest

Working Interest 70 - 92%

Proved Reserves (Bcfe) – 1/1/07 8.0

% Gas 75%

% PDP 52%

Producing Wells 32


Highlights

Field Overview


Acquired in 2000 with Aquila Energy Capital financing

Two development wells drilled in 2006, adding net production of approximately 368 Mcfe/d

Long-life reserves; 32 producing wells

Upside Potential



42 identified drilling locations

Further potential evaluation in Niobrara, Codell and deeper formations

2008 Plans

Drill 10 gross wells total (costs: 8/8)


5 (3.4 Net) exploitation: ~$0.5MM to drill, ~$0.6MM to D&C

DJ Basin(Colorado)

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BARNETT SHALE

Ft. Worth Barnett Shale Joint Venture

Approximate 10, 500 gross acreage position in Tarrant / Johnson counties (core area)Offset operators include Chesapeake Energy, EOG Resources, etc.12.5% WI (non-operated)

2007 Actual & 2008 Plans2007: Drilled 7 of 7 wells2008: NoneAnnounced proposed sale in 1Q:08 – approximately $30MM ; 2.5 – 3x return

Ft. Worth Barnett Shale(Johnson and Tarrant Counties)

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WEST TX BARNETT/WOODFORD SHALE Culberson County, TX

CRIMSON 24,000 ACRES

WI: 100%

NRI: 77%

EXPIRY: 2010

DRILLED WELL

LOCATION

ENCANA TD 11,000’

EOG TD 9,100’ 2 LOCATIONS

CXP ACREAGE

SOUTHWESTE RN ACREAGE

JEFF DAVIS

QUICKSILVER ACREAGE

QUICKSILVER TD 10,368’

QUICKSILVER LOCATION

ENCANA TD 13,500’

HALLWOOD LOCATION

HALLWOOD LOCATION

SOUTHWESTERN LOCATION

PETRO- HUNT DRILLING

CULBERSON

HU

DSP

ET

H

REEVES

5 MILES

RANGE LOCATIO N

ENCANA TD 11,000’

HALLWOOD DRILLING

BURLINGTON TD 13,450’

BULLD OG TD 14,775’

PETRO-HUNT TD 13,500’

ENCANA TD 11,000’

CONCHO TD 11,900’ HALLWOOD

LOCATION

PETRO-HUNT DRILLING

THOMPSON DRILLING

DALLAS 2 LOCATIONS

CONCHO DRILLING

SOUTHWESTERN TESTING

MATADOR LEASES

Development23%

Exploitation46%

Exploration23%

Lease8%

South Texas35%

SW Central Texas25%

East Texas31%

Louisiana3%

Colorado5%

Other1%

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CAPITAL EXPENDITURE PROGRAM (Preliminary, subject to Board approval)

Estimated 2008 Capex by Category

$62.6 million$45

Estimated 2008 Capex by Region

$62.6 million

South Texas

Central Texas

East Texas Louisiana Colorado Other

TOTAL 2008

Unrisked Potential Bcfe (net)

2008E Drilling Capital ($MM)Development (Proved) 5.3 5.5 0.1 1.3 1.8 0.3 14.3 - Exploitation (Prob/Poss) 3.7 5.1 18.4 - 1.5 - 28.7 22.9 Exploration 8.8 4.1 1.1 0.8 - - 14.7 26.6 Lease Acquisitions 4.0 0.8 - - - - 4.8 -

Total 21.8 15.5 19.6 2.1 3.4 0.3 62.6 49.5

2008E Drilling Schedule (# Wells)Development 6 7 1 1 6 - 21 Exploitation 2 3 10 - 5 - 20 Exploration 14 5 2 1 - - 22

Total 22 15 13 2 11 - 63

(1)

(1) Excludes: seismic data (~$7.1MM), land delay rentals (~$0.5MM), & non-O&G capex (~$0.3MM).

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FINANCIAL STRATEGYMaintain conservative financial policy:

Borrowing capacity for acquisitions

Fund capex from operating cash flow

Utilize oil and gas derivatives to limit commodity price downside risk - ~75%

Target net debt / EBITDAX ratio under 2.5x

Target net debt / proved reserves under $1.80 / Mcfe

Target adjusted EBITDAX/interest over 3.5x

Maintain manageable debt levelsSenior revolver –$200MM borrowing base; $90MM available

Second lien facility - $150MM fully drawn; L+575; 5/2012 maturity

Excess cash flow, after capital expenditures, for revolver repayment, preserving flexibility

Balanced, conservative capital program Low-risk drilling inventory to increase cash flow and asset value, and reduce debt

Exploration consists primarily of delineation/step-out drilling in existing, defined producing trends

Limited “wildcat” exploration

Expand investor base and opportunistically access equity capital for growthDon’t need new equity to reduce debt levels

Provide “powder” for future acquisitions

Increase liquidity in stock to unlock value

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TOTAL COMPANY PRODUCTION BY TYPE(MMcfe/d)

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TOTAL COMPANY PRODUCTION BY CATEGORY(MMcfe/d)

REVENUE & EBITDAX

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BALANCE SHEET

(000’s) 12/31/05 12/31/06 9/30//07

Cash /Current Assets $ 5,825 $ 3,532 $ 40,029Property, Plant & Equipment, net 54,223 76,547 347,223Other Assets 3,067 1,690 4,315Derivative Instruments (Curr & LT) - 2,934 4,258Total Assets $ 63,115 $ 84,703 $ 395,825 Notes Payable/Current Debt $ 121 $ 91 $ 95Other Current Liabilities 4,626 10,656 38,255Long-term Debt 1,103 8,415 270,568Asset Retirement Obligations (Curr & LT) 1,311 4,215 7,690Derivative Instruments (Curr & LT) 3,149 - 1,582Equity 52,805 61,326 77,635

Total Liabilities & Stockholders’ Equity $ 63,115 $ 84,703 $ 395,825

Actual

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PV-10 values and proved reserves as of 12/31/2006 SEC filings.

EV based on companies’ 9/30/2007 SEC filings.

Source: Fortis Merchant Banking Weekly Market Update (1/7/08)

CXPO EV @ 9/30/07 ($7.85/share) is pro forma the EXCO acquisition.

ATTRACTIVE VALUATION VS. PEERS

CXPO* EV @1/16/08 ($12.45/share) is pro forma the EXCO acquisition; assumes all Preferred shares are converted, thus increasing O/S by 5.8MM.

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ATTRACTIVE VALUATION VS. PEERS

Daily production based on most recent quarter. EBITDA estimates are Thomson FirstCall consensus.

EV based on companies’ 9/30/2007 SEC filings.

Source: Fortis Merchant Banking Weekly Market Update (1/7/08)

CXPO EV @ 9/30/07 ($7.85/share) & EBITDA is pro forma the EXCO acquisition.

CXPO* EV @1/16/08 ($12.45/share) & EBITDA is pro forma the EXCO acquisition.

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SUMMARY

Experienced management team – proven track record of growth

Low-risk growth potential through significant upside from 3P reserves

Inventory of lower risk exploitation and exploration opportunities in the Barnett/Woodford Shale, South Texas Lobo and DJ Basin

Visible near-term debt reduction through free cash flow

Limited commodity risk due to aggressive hedging program

Strong financial partner in Oaktree Capital

Prospect generation capability for above-average value creation

crimson exploration inc. -...

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