Oil and Gas Leasing Oil and Gas Leasing Oil and Gas Leasing Oil and Gas Leasing Florida StateFlorida State--owned Waters owned Waters

Gulf Gulf of of Mexico:Mexico:Gulf Gulf of of Mexico:Mexico:A BriefingA Briefinggg

October 5, 2009

Geographic OrientationGeographic Orientation

Western Planning

Area

Central Planning

Area

Eastern Planning

AArea Area Area

Gulf of Mexico Gulf of Mexico -- Minerals Management Service Planning AreasMinerals Management Service Planning Areas

Federal/State BoundaryAtlantic Ocean

(3 Geographic Miles)

Smackover Trend

(3 Geographic Miles)(3 Nautical Miles)

Onshore Oil Trends

Federal/State BoundaryGulf of Mexico

(3 Marine Leagues)(9 Nautical Miles)

(10.36 Statute Miles)

Sunniland TrendTrend

Gulf of Mexico Production and RevenueGulf of Mexico Production and Revenue

Offshore Oil Development SequenceOffshore Oil Development SequenceOffshore Oil Development SequenceOffshore Oil Development Sequence

Geographical representation of locations for the 1,196 proved fields in the Gulf of Mexico. The bar heights in the figure are proportional to total proved reserves (barrel of oil equivalent) for each proved field by decade.

Source: OCS Report, MMS 2009-022, Estimated Oil and Gas Reserves

4 000 000 000$100 00

Historic Petroleum Production and Pricing:Onshore and State-owned Waters for Gulf of Mexico States

3,600,000,000

4,000,000,000

$90.00

$100.00

s p

er

Barr

el) Crude Oil

Texas

Louisiana

2,800,000,000

3,200,000,000

$70.00

$80.00

chase

rs (

Do

llars

Alabama

Mississippi

Florida

(BO

E)

2,000,000,000

2,400,000,000

$50.00

$60.00

ce b

y F

irst

Pu

rc

um

Pro

du

ctio

n

1,600,000,000

2,000,000,000

$40.00

$50.00

Acq

uis

itio

n P

ri

tew

ide P

etr

ole

u

800,000,000

1,200,000,000

$20.00

$30.00

de O

il W

ell

head

Sta

t

0

400,000,000

$-

$10.00

U.S

. C

rud

Crude Oil Data Source: Energy Information Administration - http://www.eia.doe.gov/Production Data for Individual States reported from Publicly Available Sources.

1930 1940 1950 1960 1970 1980 1990 2000

Summary of Actual Production and Revenues in StateSummary of Actual Production and Revenues in State--owned Watersowned Watersyy

Alabama Texas Louisiana Florida Mississippi

Supporting

State Waters(nautical miles) 3 NM 9 NM 3 NM 9 NM 3 NM

Coastline(statute miles) 50 miles 370 miles 450 miles 750 miles

(gulf-side) 30 milesInformation (statute miles) (gulf-side)

Start/Peak of Production in State-ownedWaters

1980s / 1990s 1950s / 1980s 1950s / 1980s n/a n/a

Production -Cumulative

Crude Oil Production in State-ownedWaters (bbl)

528,000 36,000,000 2,000,000,000 n/a n/a

Natural Gas Production in Production in State-ownedWaters (BOE)

560,000,000 727,000,000 2,163,000,000 n/a n/a

Direct Revenues from State-ownedWaters

$2.97 billion Undifferentiated Undifferentiated None None

Revenue -Cumulative

Waters

Direct Revenues from Federal OCS 8g Disbursements

$274 million $810 million $1.14 billion $2.4 million $25 million

Production and Revenue Data for Individual States reported from Publicly Available Sources.

Cumulative State Production for Onshore and StateCumulative State Production for Onshore and State--owned owned Waters Areas and Hypothetical Market ValuesWaters Areas and Hypothetical Market ValuesWaters Areas and Hypothetical Market ValuesWaters Areas and Hypothetical Market Values

Alabama1944 through 2008

Texas1932 through 2008

Louisiana1945 through 2008

Florida1943 through 2008

Mississippic.1951 through 2008

Historic Production for Onshore and

Crude Oil Production (bbl) 691,675,990 56,742,303,000 15,882,674,421 603,744,743 2,137,644,810

in State-owned Waters

Natural Gas Production (mcf) 8,745,520,020 416,218,251,641 150,361,591,360 638,865,674 10,635,730,038

Historic Production of Crude Oil at $70/bbl

$48.4 Billion $4.0 Trillion $1.1 Trillion $42.3 Billion $149.6 Billion

Value of Historic

Production at Today’s

Historic Production of Natural Gas at $5/mcf

$43.7 Billion $2.0 Trillion $0.7 Trillion $3.2 Billion $53.2 Billiono y

Market Prices

Summary of the Value of Historic $92.1 Billion $6.0 Trillion $1.8 Trillion $45.5 Billion $202.8 BillionProduction

Production Data for Individual States reported from Publicly Available Sources.Value Projections based on 2009 Pricing.

Overview of Development and ProductionOverview of Development and Production

JackJack--up drilling rig six miles off Dauphin Island, up drilling rig six miles off Dauphin Island, Alabama (Alabama (1991)1991)p g g p ,p g g p , (( ))

Aerial-view from Dauphin Island, AlabamaNatural Gas Production Platforms

Fort Morgan Peninsula, Alabama

South of Mobile BaySeptember 2009

Dauphin Island,Dauphin Island, Alabama

Ground-level View from Dauphin Island, AlabamaNatural Gas Production Platforms

South of Mobile Bay - September 2009

Fort Morgan Peninsula, Alabama

Natural Gas Production Platform4.5 Nautical Miles

Natural Gas Production Platform7.2 Nautical Miles

Natural Gas Production Platform2.6 Nautical Miles

Alabama

View to the Southeast from Eastern End of Dauphin Island, Alabama

End of PresentationEnd of Presentation