Beryl Oil and Gas LP Overview

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Beryl Oil and Gas LP Overview
• First Reserve Corporation Portfolio Company
• Noble Energy, Inc. Gulf of Mexico shelf asset acquisition (July 2006, $625MM) (1)
• Natural gas weighted, diversified asset base throughout the Gulf of Mexico shelf
(1)
Transaction closed under the name “Coldren Resources LP”. The name changed to Beryl Oil and Gas LP in May 2007.
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Beryl Oil and Gas LP Update
• Beryl Oil and Gas LP became fully staffed in the 4Q 2007
• Beryl’s staff increased from 6 in January 2007 to 29 by the end of 2007
• Beryl has a talented, proven management team with experience from
Pogo Producing Company, Kerr McGee, Burlington Resources, Westport
Resources and Spinnaker Exploration
• Production during 2007 averaged 69 Mmcfe / Day (11,500 Boe / Day,
69% Natural Gas)
• Beryl’s capital expenditures during 2007 totaled $54MM (88%
development)
• During 2007, Beryl had a 100% success rate (3 for 3) and reduced long
term debt by $112MM
• Beryl ended 2007 with 103 Bcfe of proved reserves (73% Natural Gas)
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Experienced Management Team
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Stuart Burbach, PG (President and Chief Executive Officer)
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Carlos De Ayala, PE (Chief Operating Officer)
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28 years of experience
Formerly managed Gulf of Mexico shelf assets for Spinnaker Exploration
Joe Yohe, PE (Reserves Coordinator)
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26 years of experience
Formerly manager of planning at Pogo Producing Company
Dan McCue (VP, Land)
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23 years of domestic and international experience
Formerly managed Gulf of Mexico, California and international operations for Westport Resources / Kerr
McGee
Bob Haines, CPA (VP, Chief Accounting Officer)
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25 years of experience
Formerly managed reservoir engineering for Pogo Producing Company
Carl Isaac, PE (Executive Vice President of Operations)
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34 years of domestic and international experience
Formerly Executive Vice President of Pogo Producing Company
26 years of domestic and international experience
Formerly corporate reserves coordinator for Burlington Resources focused primarily on Burlington’s
international portfolio
Josh Anders, CPA (Treasurer)
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12 years of experience
Formerly a manager in Pogo Producing Company’s corporate finance division
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The Beryl Team
Stuart Burbach
President & CEO
Joan Datchko
Lynne Ray
Technician
Exec. Assistant
Carlos De Ayala
COO
Helen Tate
Sherri Jordan
Exec. Assistant
Dir. of Info. Tech.
Josh Anders
Bob Haines
Carl Isaac
Jerel Pierce
Dan McCue
Treasurer
Chief Accounting Officer
EVP - Operations
Chief Geophysicist
VP Land
Valerie Miller
Leah Gaines
Greg Browning
Julie Pressler
Kari Dominquez
HR & Office Mgr.
Controller
Sr. Ops Engineer
Sr. Geophysicist
Sr. Lease Analyst
Joe Davis
Richard Timothy
Bruce McDonald
Alida Gibson-Riley
Expense Lead
Production Super.
Sr. Geologist
Sr. Lease Analyst
Balinda Clanton
Jim Slater
Mark Rutherford
AP Accountant
Production Manager
Sr. Geologist
John Teer
Yvette Pena
Bob Schwager
Revenue Lead
Engineering Tech
Sr. Reservoir Eng.
Geoff Streitel
Sr. Geologist
Joe Yohe
Mary Bailey
Reserves Coordinator Sr. Engineering Tech.
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Beryl Oil and Gas Key Statistics
• 29 Full time staff
• 199 wells (70 % operated)
• 28 Operated platforms
• 92 Lease blocks
• 286,823 Net acres
• R/P 4.1 years
• $297MM of debt, $80MM of cash and cash equivalents
• 70 Mmcfe / day (67% Natural Gas)
• 103 Bcfe (Estimated Proved Reserves, Unrisked)
• 185 Bcfe (Estimated 3P Reserves, Unrisked)
• 25.1 Bcfe of production in 2007
• 25.2 Bcfe of production in 2008 (Projected 2008 exit rate of 82 Mmcfe / Day)
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Asset Overview
• Beryl is diversified across the Gulf of Mexico Shelf.
Proved Reserves
Production
Proved Reserves
Production
26%
36%
44%
22%
30%
42%
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Production Distribution - Geographic Diversification
18%
% of Total Volume Per Day
Beryl Operated
Various Other
Various, Including Beryl
16%
14%
12%
10%
16%
8%
15%
6%
8%
7%
8%
6%
6%
5%
5%
5%
3%
VK
(1)
(1)
4%
7%
2%
3%
2%
2%
2%
0%
HI 550 VR 371 MP 108 EC 320 ST 196
MP 93 ST 314
Operatorship of the VK area is shared between Beryl and CVX.
HI 448
GB 72 WC 598 HI 517 SS 300
HI 563 VR 207 Rem. 15
Fields
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Proved Reserves Overview
Reserves by
Gulf of Mexico Region (1)
Reserves Mix
Central
Gulf of Mexico
44%
73%
Gas
26%
Western
Gulf of Mexico
30%
27%
Oil
East Central
Gulf of Mexico
Total Reserves: 103 Bcfe
(1)
Central GOM is from East Cameron to Ship Shoal and East Central is defined as South Timbalier and everything east of South
Timbalier.
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3P Reserves Progression (1)
Proved
Probable
Possible
210
189
56
15
177
50
45
15
27
185
174
42
168
40
126
50
24
84
118
111
105
100
103
3Q 2007
4Q 2007
Reserves (Bcfe)
176
42
0
4Q 2006
(1)
1Q 2007
2Q 2007
Proved Reserve figures are based on SEC case pricing.
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Re-Focused Capital Spending (1)
($MMs)
$257
$275
$252
$220
$152
$165
$110
$89
$75
$63
$82
$70
$54
$55
$16
$0
2000
(1)
2001
2002
2003
2004
2005
2006
2007
2008E
2009E
Beryl closed the $625MM acquisition of NBL’s GOM shelf properties in July 2006.
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2008 Capital Program
Capital By Gulf of Mexico
Area
Capital Split
GI
26%
MP
16%
75%
Development
25%
Exploitation
SS
9%
ST
31%
HI
EI EC
5%
3% 3%
VR
7%
2008 Capital Program: $81.5MM
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2008 Forecast
2008 Production Forecast
81
80
Daily Rate (MMcfe)
70
64
63
60
58
58
58
65
80
82
70
66
30
25
25.2
22.6
20
20.2
50
17.7
40
15
15.3
13.1
30
20
10
0
81
2.0
3.8
5.6
7.3
9.1
11.1
10
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Cumulative Production (Bcfe)
90
0
Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08
Daily Production (Mmcfe / Day)
Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08
Cumulative Production (Bcfe)
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Financial Summary
2007
Total Production (Bcfe)
Natural Gas (Bcfe)
Crude Oil (Mmbls)
Average (Mmcfe / Day)
Natural Gas Price ($/Mcf)(2)
Crude Oil Price ($/Bbl)(2)
Oil & Gas Revenues ($MM)
General & Administrative ($/Mcfe)
Lease Operating Expense ($/Mcfe) (3)
Discretionary Cash Flow ($MM)
(1)
(2)
(3)
From July 14, 2006 through December 31, 2006.
Includes impact of hedge positions.
Includes $0.57 Mcfe of insurance for 2007 and $0.52 Mcfe of insurance for 2006.
25.2
17.4
1.3
69
$8.73
$70.35
$225.7
$0.60
$2.07
$145
2006 (1)
14.7
10.5
0.7
86
$8.20
$64.11
$118.9
$0.45
$1.76
$82
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Financial Summary
($MMs)
Current
2007
2006
$80
$72
$95
$68
Debt
1st Lien Debt (6.9%)(1)
2nd Lien Debt (8.9%)(2)
$177
$120
$203
$120
$311
$124
$311
$124
Total Debt
$297
$323
$435
$435
Total Net Debt
$217
$251
$340
$368
Cash and Cash Equivalents
(1)
(2)
Inception
Rates effective March 14th,1st Lien matures on July 14, 2011.
Rates effective March 14th,2nd Lien matures on January 13, 2012.
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Hedge Position
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Beryl’s hedging strategy locks in economics on various projects, lowers exposure to
downside commodity price volatility, protects cash flow and stabilizes cash flow for
reinvestment.
1H 2008
Gas Floors 15 Mmcf/D
Oil Floors 772 Bbls/D
Gas Swaps 23 Mmcf/D
Oil Swaps 1,428 Bbls/D
$9.25 / Mcf
$70.00 / Bbl
$8.33 / Mcf
$72.30 / Bbl
2H 2008
Gas Swaps 18 Mmcf/D
Oil Swaps 1,041 Bbls/D
$8.41 / Mcf
$80.24 / Bbl
2009
Gas Floors 20 Mmcf/D
$8.25 / Mcf
Gas Swaps 12 Mmcf/D
Oil Swaps 891 Bbls/D
2010
Gas Swaps 10 MMCF/D
Oil Swaps 470 Bbls/D
$8.46 / Mcf
$78.10 / Bbl
$8.45 / Mcf
$81.90 / Bbl
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Goals
• Establish the Beryl identity within the industry
• Continue to optimize the assets
• Become more active with the drillbit and replace production
organically
• Continue to selectively evaluate accretive acquisition
opportunities
• Manage the business in a fiscally conservative manner
• Build partner relationships
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