oil & gas: e&p (large cap)€¦ · bil of cap-ex in 2010-2011 but will yield 100+ mboepd by...

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Barclays Capital does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

PLEASE SEE ANALYST(S) CERTIFICATION(S) ON PAGE 17 AND IMPORTANT DISCLOSURES BEGINNING

ON PAGE 18

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Investment Conclusion

This weekly edition of the Barclays Capital E&P Potential Catalyst Watch highlights potential market-moving events for companies we cover and addresses laterals across the sector. The E&P Potential Catalyst Watch is available on Barclays Capital Live under Tom Driscoll's bookshelf. Link: https://live.barcap.com/go/research/content?contentPubID=ADH15822365

Summary

Highlighted stock of the week Noble Energy. NBL's 10-15% premium to peers using 2011 cash flow estimates reflects a very sizable pipeline of development projects. The premium could quickly disappear as 2012 could yield 15-20% prod'n growth along with $400-500 mm of free cash flow (20-25% DAPPS growth). The pipeline of projects (deepwater GOM, West Africa and Israel) will likely require $1.8 bil of cap-ex in 2010-2011 but will yield 100+ mboepd by 2015 along with significant free cash flow. Absent further expl'n success, we project an 10% prod'n CAGR from 2011-2015 along with an est'd $2-3 bil. of free cash flow (implies a 4-year DAPPS of ~15%). The shares trade at 5.6x our '12E CF, or ~6% discount to group's historical 6.0x forward-year CF multiple.

Notable potential catalysts over next several weeks include: EOG is holding an analyst day on 4/7 - expect '10 budget, 3yr prod'n guidance and discussion of "stealth" oil plays. Other than EOG, we expect results in the near term from expl'n wells at two deepwater GOM prospects that NBL is involved in -- Deep Blue with pre-drill est of 200+ mmboe (NBL, BHP, MUR, Statoil, Samson) and Double Mountain with pre-drill est of 100+ (BHP, NBL), as well as results from an appraisal well at Lucius (APC, PXP). APC and DVN are drilling an appraisal well at the Wahoo discovery, offshore Brazil and PXD expects to sign a JV agreement in the Eagleford in the early 2Q.

Highlights of the week: PXD and HK announced results from new wells in the Eagleford Shale while Royal Dutch Shell revealed it has acquired interest in 150,000 net acres. SWN announced a new exploration program on 2.5 million newly acquired acres in the Maritimes Basin in New Brunswick in Canada, believed to be prospective for both oil and gas.

E&P share underperformed the market materially last week (EPX down 7.6% vs. S&P up 1.7%) as gas fell below $4.00/MMBtu for the first time in 2010. With injection season likely over, and storage behavior becoming increasingly bearish over the past 2 months, we feel there is a strong possibility that prices may test the September 2009 lows of $2.50-3.00.

The group trades at 5.8x our '11 debt-adjusted CF est (excl. RRC, SWN, UPL) slightly below historical 6.0x forward-year CF valuation. We estimate the shares discount about $80/bbl and $5.30/MMbtu.; We continue to recommend oil-oriented producers APA, CNQ and NBL, as well as EOG with its focus on liquids assets and attractive valuation.

Link to comp sheet: https://live.barcap.com/go/research/content?contentPubID=ADH1582272

March 30, 2010

Oil & Gas: E&P (Large Cap)

Industry Overview

E&P Catalyst Watch & Weekly Highlights

Sector View: New: 2-Neutral Old: 2-Neutral

Thomas R. Driscoll, CFA 1.212.526.3557 [email protected] BCI, New York

AmericasEnergy & Power

Oil & Gas: E&P (Large Cap)

Equity Research

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Stock Highlight of the Week – Noble Energy

Investment Thesis

Asset Description

Timing Details Expected

Production Targets Feb ' 10 '10 Prod'n Guidance -- 211-224 MMBOE (incl RM acq'n)

-- Prod'n to increase by 100+ mboepd by 2015, but strong growth will not show until late 2011. Prod'n from development projects expected as follows: Isabela/Santa Cruz oil '11, Aseng oil '12, Belinda liquids '13, Diega/Carmen oil '14, Gunflint oil '14

Capex Guidance 20102010: $2.5B (incl ~ $1b for development of LT projects)2009: $1.4B flexible; 40-50% oriented towards LT projects2008: $2.33 bil (incl $325 mm 2Q acquisition - W. OK, 15 MMcfepd)

-- Est ~$150mm cash shortfall (at $62/4). Est ~ $900mm cash deficit in '10

-- The staged development of the 6 discoveries will require $1.8b of funding in '10-11 (will use cash on hand & revolver) and will be self-funding thereafter

F&D Costs YE'092009:$41.50/boe, RR 43% (103% excl. price & 5-yr PUD revisiions)2008: $34.50/boe, RR 87%2007: $14/71/boe, RR 166% almost exclusively through drill-bit

Reserves shrunk 5% YOY - PDPs down, PUDs up 1%; Lost 3% of reserves due to price and ~2% to 5-yr rule; Yet to book most of major discoveries - Tamar, Belinda, Gunflint

Asset restructuring ongoing-- U.K. assets up for sale -- sold Argentina in late 2007-- Ecuador; China -- needs to be bigger or be sold; decision some time in future.

We believe that NBL's assets are viewed by investors as too scattered internationally; we believe sales would be viewed as positives

Timing Details Potential

Equatorial Guinea -- Alba Field(34% WI, non-operated) Ongoing 1.1 billion boe gas/condensate reservoir. Alba producing at full capacity now. Gas sells under contract for about

$0.25 thru 2026. Condensate sold at market.

Deepwater GOM ongoing

-- 413,000 net acres, 33 prospects (avg 150 MMBOE per prospect), 1.6 BBOE net unrisked potential

-- prod'n ~23+ mboepd

-- Development projects - Isabela/Santa Cruz (prod'n 2011) & Gunflint (prod'n 2014)

-- Expl'n - 4Q'09 spud Deep Blue (WI 45%, operated, 200+ mmboe, 30% chance of success) & Double Mountain (WI 30%, non-op, 100+ mmboe, 45% chance of success) -- results in late 1Q'10; 2010 expl'n - 5 sizable targets

Isabela/Santa Cruz 4Q'09 sanction, 2011 prod'n BP operates both; NBL's WI 33% in Isabela & 23.5% in Santa Cruz 100+ MMBOE resource potential; initial prod'n could be 7-8 mboepd net

(2-3 wells)

Gunflint 2010 sanction, 2014 prod'n NBL's WI 37.5%, partners BP/MUR 550+ ft of net pay, resource significantly more than pre-drill 40-170

MMBOE

Israel ongoing -- Marie B (47% WI)-- 1+ Tcf of GIP, Currently producing-- Tamar & Dalit (33% WI) - 6.8 Tcf

-- development work at Tamar starts in 1H'10 - first prod'n 2012 - could be 400-600+ mmcfepd from 5 wells; Prod'n ramp up will require expanding/new market-- exp'n to resume in 2H'10 - 1 well

West Africa ongoing ~ 300 mmboe net discovered, ~ 400 mmboe net (unrisked) add'l expl'n potential

-- Development Projects: 1) Aseng Oil Project (Benita) - was sanctioned, prod'n '12, 2) Belinda liquids recycling project - prod'n '13, 3) Carmen/Diega - oil prod'n '14; Gas discoveries to be developed in '15 and beyond (to be tied to Aseng infrastructure)

-- Expl'n -- new concepts/plays are being evaluated (mostly deep oil targets) and exploration activity to resume in 2010 with 1 well

Wattenberg Ongoing 2.8 tcf of unbooked upside, 283 mmcfpd net prod'n in 3Q'09

-- ;10 program - 6 rigs now, 8-9 in mid-yr, 1000 wells incl. 20 hz Niobrara Tests-- 15 Yr inventory, Strong Economics (45% liquids, low F&D) - expect to be anchor field for NBL for years to come

Post-mortem analysis/Exploration Process Improvements continuing Improved discovered resources from 15% of est'd pre-drill ('01) to 170% of est

pre-drill in 2006-08 periodSignificant progress; essential to allow company to confidently commit exploration dollars.

Source: Company reports and Barclays Capital estimates.

We believe that Noble’s promising exploration program – with 700 MMBOE of discovered resources that will be development over the next five years - justifies the current premium (to historical) multiple. Over the past several years the new management has instilled more discipline to capital allocation which, along with major asset restructuring, has provided better investment opportunities (as well as a doubling of reserve life that should favorably impact cash flow multiples), in our view. Consequently per share results in the past few years have been very strong and the shares have outperformed. We believe near-term catalysts could be the high potential exploration around the globe (W. Africa, Israel, deepwater GOM) and projections for 10-15% 5yr CAGR & strong free cash flow (back-end loaded). Expl'n momentum should alleviate concerns about potential dilutive acq'ns, in our opinion

Believe dramatic transformation is behind us - exited GOM shelf with July-06 sale. '10E prod'n: ~30% U.S. nat gas; Further expl'n potential est at >4 bboe (net unrisked)

Big Picture

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Pipeline of big projects will likely lead to very strong production growth and margin expansion beginning in 2012.

Isabela/Santa Cruz

Aseng, Tamar

Belinda Recycling

Diega/Carmen, Gunflint

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

2010 2011 2012 2013 2014 2015

$ B

illio

n, N

et

-150

-100

-50

0

50

100

150

Mbo

e/d,

Net

Investment ($B)AT Cash Flow ($B)Production

Source: Company Reports and Barclays Capital Estimates

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Highlights of the Week

• PXD’s announced results from its third successful horizontal well in the Eagleford Shale. The Charles Riedesel GU 1-1 well located in DeWitt County flowed at an initial production rate of approximately 15.7 mmcfepd, including ~ 11.6 mmcfpd of gas and 680 bpd of condensate. The gas is liquids-rich and contains 1,200 Btu per cubic foot. The well was drilled with 4,500-foot lateral and completed in 14 frac stages. By comparison, the company’s Sinor # 5 well in Live Oak County was completed in 9 stages and came online at 8.3 mmcfepd + 500 bpd, while the Crawley well also located in Live Oak County came online at 17 mmcfepd (5,400 ft lateral, 16 completion stages). Pioneer is currently drilling 2 horizontal wells in the “condensate” window in Karnes County and is looking to sign a JV deal by mid-year (perhaps in late April). Please reference our report on the Eagleford Shale from 01/29/2010 for a map of the play (“Eagleford Shale – Near Term Catalysts”, link: https://live.barcap.com/go/research/content?contentPubID=ADH1563514)

• HK announced results from two new areas in the Eagleford Shale. Most of the company’s activity to date has been focused in

the Hawkville field in La Salle and Mc Mullen counties where the company has placed 22 wells on production with average IP rate of 22 mmcfepd. Last week, HK announced results from two areas outside its Hawkville field. The Krause #1H well located DeWitt County in an area called Back Hawk field came online at 3.3 mmcfepd + 1,150 bcpd. The well was drilled with 3,025 foot lateral and completed with 12 frac stages. The Mustang Ranch #1H well located in an Zavala County in an area called Red Hawk came online at 350 bopd – the well was drilled with 5,000 foot lateral and completed in 14 frac stages. The company estimates D&C costs per well will be about $4-4.5 million with EURs of 150-250 mboe. Please reference our report on the Eagleford Shale from 01/29/2010 for a map of the play (“Eagleford Shale – Near Term Catalysts”, link: https://live.barcap.com/go/research/content?contentPubID=ADH1563514 )

• Royal Dutch Shell enters the Eagleford Shale. The Houston Chronicle quoted Marvin Odum, president of Houston-based Shell

Oil Co, the U.S. arm of Royal Dutch Shell, in saying that the company recently leased 150,000 acres in an area generally referred to as the Eagle Ford shale play south of San Antonio (article name: “Shell raises natural gas stake with S. Texas lease” from 03/27/2010). The seller, the amount of the investment and the exact location of the acreage was not disclosed.

• Southwestern Energy announced exploration program in New Brunswick, Canada. The company announced that the DNR

of the Province of new Brunswick, Canada has accepted the company’s bids for exclusive licenses to search and conduct an exploration program covering over 1,018,000 hectares (2,519,000 acres) in the province in order to test new hydrocarbon basins. The company’s winning bids require it to make investments of approximately $47 million USD over the next three years. SWN believes the area is prospective for both oil and natural gas.

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Barclays Capital E&P Potential Catalyst Watch Link: https://live.barcap.com/go/research/content?contentPubID=ADH1582236 Potential Major Upcoming Catalysts in April (Please reference Barclays Capital Catalyst Watch for a list of additional potential catalysts in April with expected medium and minor impact)

Type Detail Time Sort Detail

APC International Exploration Brazil Wahoo 1 - drillstem test 4/1/10 late Q110

Wahoo-1 drillstem test in late March then rig moves on to drill Wahoo South. 90' of pay orignally discovered in Wahoo. Wahoo could be 300+mmboe resource. APC operator w/30% interest, BP 25%, IBV Brasil Petróleo Limitada 25%, SK Energy 20%.

BP major

NBL deepwater GOM Exploration Deep Blue

exploration well 4/1/10 shortly before 1Q call

Deep Blue (33.75% WI, NBL operated) is the company's largest deepwater GOM prospect to date. Pre-drill est is 200+ mmboe gross with 30% chance of geologic success. Located in the Green Canyon, nearby NBL's producing Ticonderoga project. In 2009 NBL exchanged 30% interest in the prospect for a 30% stake in Double Mountain. The well was spud in late November -- expect results by end of 1Q. Partners NBL 33.75%, MUR 9.375%, Samson 9.375%, BHP 31.975%, Statoil 15.625%

BHP, MUR, Statoil, Samson major

NBL deepwater GOM Exploration

Double Mountain

exploration well4/1/10 shortly before

1Q call

Double Mountain (30% WI, BHP operated) - pre-drill est is 100+ mmboe with 45% chance of geologic success. The well was spud in early December -- expect results by end of 1Q. Partners NBL 30%, BHP 70%

BHP major

EOG corporate Analyst Day analyst day 4/7/10 4/7/2010

Major news expected: * 2010 cap-ex budget; we have modeled a $4.3 billion capital + expl'n budget (vs. $3.7 in '09) and free cash flow deficit of $1.0 billion. Weak gas prices may push budget below our expectations* update 2010 production outlook. Mid-point oil growth of ~ 55% likely to be reiterated, mid-point gas growth of 3% likely to be lowered.* 2011/2012 growth outlook. We expect oil volume growth of more than 30% in 2011, along with weak gas volume growth.* comments on "stealth" oil plays including Niobrara and Eagleford. Market very focused on potential disclosure

Conclusion: Believe investors will need to raise 2011 estimates to reflect outsized growth in high-revenue oil, offset by cut in gas volume expectations. Jury out on 2012 outlook -- if EOG convinces investors it has visible outsized oil growth into 2012 the shares should perform very well.

Eagleford exposure -PXD, HK, MUR, NFX, APC, SM, ROSE, EPNiobrara exposure - NBL, APC, SM, PETD

major

PXD Eagleford M&A JV agreement 4/20/10 end of Q2

PXD has ~250,000 net acres in South Texas (310,000 gross), a large portion of which is believed to be in the "condensate" window of the Eaglefrod Shale. The company is actively seeking a JV partner and expects bids in 2Q. Management anticipates ramping up to 4-6 rigs (from 2 currently) upon signing the JV. If we were to assume that PXD farms out 50% of its position (or about 125,000 net acres) at a hypothetical $3,000-6,000/acre, the carry could be $400-750 million.

closer proximity: HK, EOG, MUR, COP; others in play: APC, EP, NFX, SM, ROSE

major

APC International Exploration Maconda 4/30/10 Spring 2010 BP drilling Maconda GOM prospect targeting Miocene/Pliocene formations. 100+mmboe recoverable resource potential. BP major

Barclays Capital Comments LateralsAnticipated

ImpactCompany AreaEvent Expected Announcement Date

Source: Company Reports and Barclays Capital

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Potential Major Upcoming Catalysts in May (Please reference Barclays Capital Catalyst Watch for a list of additional potential catalysts in May with expected medium and minor impact)


APC International Exploration Mozambique Expl'n well 5/1/2010 April '10

Collier (Mozambique) (APC 43%; partners mostly state oil Mitsui, Broad Videocon, BPRL Ventures, Cove Energy) -- 2nd deepwater well in history of basin -- 150mmboe+ 50 mi south of 1st well (Windjammer) which found 480' of gas pay.

Mitsui major

NBL Israel Program results from 3-D shoot 5/1/2010 May ?

NBL have identified several prospects (through 2D) that could be larger than the Tamar discovery (Tamar is est at 6.5 Tcf). The company recently did a 3D shoot on 1400 square miles and is currently analyzing the results. Could disclose resource potential, probability of geologic success, etc.

major

NXY Oil Sands Development Project

Long Lake Ramp up over

'105/1/2010 2010

Volumes were 18,000 bpd (gross) as of early February (capacity 72mbopd). This compares to NXY's FY2010 implied guidance of 31-46mbpd (gross). The steam-to-oil ratio (SOR) for producing wells was ~5.0 while the all-in SOR (including non-producing wells) was ~6.0. NXY expects a 3.0 SOR over the life of the project.

OPTI Canada major

TLM Quebec Well Results 1st hz's 5/1/2010 2010

Partner Questerre announced the St. Edouard 1A well targeting the Utica Shale IP’d at 12mmcfpd (initially) in late January (TLM 75% interest). 4 well program in 2010 -- Questerre is partner with 25% interest on wells 1,2 & 4. Canadian E&P Intragaz is 20% partner on well #3. All 4 wells will be within 50km of one another on the North Central portion of the play.

FST, Questerre major

UPL Marcellus Well Results well results 5/15/2010 1Q earnings call

Stepping up drilling in 2010 significantly and will participate in 110 wells -- expect busy news flow. Participated in 37 hz wells in Tioga and Potter Counties last year (average 30-day IP 4 mmcfepd) - partners with East Resources and most recently with APC (non-op).

Tioga - NFG, TLM; Potter - PVA; Lycoming - APC, XCO, RRC

major

OXY corporate Analyst Day analyst day 5/19/2010 5/19/2010

Expect detail updates on company's operations around the world including the much talked about discovery in Kern County, California. Early estimates for the resource potential at the Kern County discovery was 150-250 mmboe but company has since pushed the boundaries of the play.

major

Barclays Capital Comments LateralsAnticipated

ImpactCompany AreaEvent Expected Announcement Date


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Potential Upcoming Catalysts by Company Type Detail Time Sort Detail

APA Granite Wash Well Results Granite Wash 4/30/2010 2010 Granite Wash - 5 rigs; 75mmcfpd net by YE10. Look for well results throughout year. Many medium

APA International Other Rising Prices 4/30/2010 2010

APA may successfully renegotiate new gas contracts in Egypt & Argentina. In Argentina "Gas+" contract begins on 10mmcfpd @ $5/mcf on 1/01/10 & 50mmcfpd on 1/01/11 -- Q3 prod'n was ~175mmcfpd. Egypt could come further down the road.

minor

APA International Exploration Egypt 4/30/2010 2010APA plans 39 wildcat wells in 2010. Typically report around earnings. Market typically 'shruggs off' results as successes aren't high-impact. APA may start reporting est'd EUR (typically 2.5-25mmboe).

RDS minor

APA Eagleford Program Activity 6/30/2010 2010 Potential for program to pick up in 2010. EnerVest medium

APA Horn River Program Volume Ramp 6/30/2010 2010Horn River volumes to ramp over 2Q10. APA & partner ECA plan 27 hz wells (gross) online by mid-2010. Fracing 16 well wells on APA's pad as of 1/27/10 --volumes to ramp after then moving to frac ECA's pad w/11 wells.

ECA medium

APA Horn River Development Project LNG 6/30/2010 2010

Kitimat -- 2010 will have some activity -- havne't signed final deal yet -- after that comes FEED -- To finalize deal APA needs details regulatory and commercial items still outstanding. Initial payment made to Kitimat LNG, partners with group of private investors. Not likely to come with Q409 release.

Galveston LNG (private) medium

APA International Development Project LNG 10/1/2010 2010

Wheatsone -- FEED underway -- be hearing occasionally in '10 about agreements signed w/end users. Nothing released w/regard to terms. All Asian contracts typically tied to crude. Late 2010 event. Final Investment decision in 2011. 260mboepd capacity -- APA 16.15% interest. APA net capital = $1.2 billion upstream + $2.9 for the downstream

CVX medium

Entry Last UpdatedCompany Barclays Capital Comments Laterals

Anticipated Impact

Event Expected Announcement DateArea


APC International Exploration Brazil Wahoo 1 - drillstem test 4/1/10 late Q110

Wahoo-1 drillstem test in late March then rig moves on to drill Wahoo South. 90' of pay orignally discovered in Wahoo. Wahoo could be 300+mmboe resource. APC operator w/30% interest, BP 25%, IBV Brasil Petróleo Limitada 25%, SK Energy 20%.

BP major 3/29/2010

APC deepwater GOM Exploration Vito 4/1/10 April '10

APC drilling updip appraisal well from original 250' pay discovery. APC noted at March '10 analyst day Vito could be 200+mmboe of potential. APC 20%, RDS 55%, Statoil 25%.

RDS, STO medium 3/29/2010

APC International Exploration Maconda 4/30/10 Spring 2010 BP drilling Maconda GOM prospect targeting Miocene/Pliocene formations. 100+mmboe recoverable resource potential. BP major 3/29/2010

APC International Exploration Mozambique Expl'n well 5/1/10 May '10

Collier (Mozambique) (APC 43%; partners mostly state oil Mitsui, Broad Videocon, BPRL Ventures, Cove Energy) -- 2nd deepwater well in history of basin -- 150mmboe+ 50 mi south of 1st well (Windjammer) which found 480' of gas pay.

Mitsui major 3/29/2010

APC deepwater GOM Exploration Heidelberg

Appraisal 5/1/10 May 2010 Lower Miocene test south of original 200' discovery. APC 44.25% interest. ME 12.5%, ENI 12.5%, STO 12%, XOM 9.375% and Cobalt 9.375% .

ENI, STO, XOM, CIE, ME medium 3/29/2010

APC International Exploration Dahoma #1 5/1/10 5/1/2010Drilling Dahoma #1 well in same block as Jubilee discovery (W Cape 3 points in Ghana). Partners APC, 31%, Kosmos 31%, Tullow Oil 23%, Ghana National Petroleum 10%, E.O. Group, 3.5%, Sabre Oil and Gas Limited 2%.

Tullow medium 3/29/2010

APC Brazil Exploration Itaipu 5/1/10On BM-C-32 (where the Itaipu discovery is located) there will be partner meeting in Q1 to define the appraisal plan. Potential outcomes of this meeting could be a well test and or another well drilled during 2010.

BP medium

APC International Exploration Various expl'n and app'l wells 6/1/10 2010

30 deepwater exploration and appraisal wells in '10. GOM 4-6 expl’n & 3-4 appraisal; Brazil 2-3 expl’n 1-2 appraisal; W. Africa 6-9 expl’n 3-4 appraisal; E. Africa 4-6 expl’n; SE Asia 3-4 expl’n 0-1 appraisal.

major

APC Marcellus Development Project Ramp up over '10 6/1/10 2010

250k net acres; up to 25 rigs by YE10 (10 operated); 3-6 Bcf/well; IP 7+mmcfpd; drilling days down to 28 w/4-5,000 foot laterals; proposed 300 miles of gathering lines to reach 5 interstate pipelines. Gross volumes could reach 1Bcfpd in 5 years.

Mitsui, CHK medium

APC International Exploration Mozambique Expl'n well 6/30/10 Summer '10

After Collier, APC will immediately drill a third and then a forth Mozambique deep water prospect. APC has identified 7 different play types in Mozambique -- 1st type hit gas, perhaps another could be oil.

Mitsui major

APC deepwater GOM Exploration Lucius Appraisal 6/30/10 2H 2010

3rd appraisal well in this lower Pliocene/upper Miocene prospect. 1st well has 200+ feet of pay; 2nd had 600+ feet of pay. 200+mmboe gross. APC 50% interest, PXP 1/3, ME 17%.

PXP, ME medium 3/29/2010

APC Shale JV Other JV agreement 6/30/10 2010APC noted at 3/02 investor day add'l shale JV likely to be announced in next 12 months. APC has 260k net Eagleford acres and 80k net Haynesville. 250k net Marcellus acres left after Matsui JV.

medium


Anticipated Impact



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CNQ Oil Sands Development Project

Horizon Volumes 4/1/2010 March Prod'n

CNQ to begin posting monthly volumes from Horizon Oil Sands Project on website. Site aimed to reach volumes of 110mbopd by mid 2010. February volumes were 84.2mbopd up from 72mbopd in January.

medium

CNQ Corporate Other Royalties 4/30/2010 before 5/31/2010

Alberta govt to release details on curtailed royalties as part of a competitiveness review. Already announced top end of range dropped from 50% to 40% for oil and lowered from 50% to 36% for gas. Oil sands unchanged. Awaiting detailed royalty tables due before 5/31/10.

medium

CNQ Downstream Other Refinery Approval 5/30/2010 Spring 2010

CNQ announced, (01/28) that it has submitted a proposal to partner to build a 50mbbl/d bitumen (Phase I) refinery in Alberta w/ North West Upgrading (NWU). Albertan Gov't approval expected in May or June '10 -- could take longer.

medium

CNQ Oil Sands Development Project

Primrose Steaming 6/1/2010 2010

CNQ “cautiously” resuming normal steaming activities. 2010 volumes to average 16-20mbopd. CNQ was previously forced to stop steaming due to seepage issues. Facility expansion is targeted to add 40mbblspd of capacity eventually. Further issues could impact 2010 prod'n guidance of 586-643mboepd.

medium

CNQ Corporate Buyback Share Buyback 06/30/10 2010CNQ announced the company has filed to purchase up to 2.5% of common shares outstanding – this could amount to ~C$1bn. CNQ could generate over C$2.5bn in FCF in 2010 on our $80/$5 deck.

medium


Anticipated Impact



CVE Oil Sands Development Project

Solvent Aided Process (SAP) 5/1/2010 mid-2010

Narrows Lake - Starting 3rd pilot for Solvent Aided Process (SAP) at CL -- 1st commercial application will be Q22010. Limited supply of Butane in province may be a long-term issue. No estimate on capital costs -- CL cost

medium

CVE Corporate M&A Canada gas 6/1/2010 2010/2011 CVE may sell ~$500 mm/year of mature gas assets in 2010 and 2011. medium

CVE Corporate Investor Day NYC 6/21/2010 mid-2010 Update on LT development projects including sanctioning/regulatory approval for additional Foster Creek/Christina Lake oil sands phases. medium

CVE Downstream Development Project CORE 6/1/2011 Mid-2011

Construction to be completed in 2011. Wood River total crude capacity increasing 16% to 356mbopd (gross). Heavy capacity increasing 130mbopd to 240mbopd (gross). CVE has 50% interest in WR & Borger (146mbopd).

major

CVE Oil Sands Development Project Start 10/1/2011 late '11 Christina Lake - phase C on target for 1st prod'n late '11. Plan phase D

acceleration to mid-'13 start. major


Anticipated Impact



DVN International M&A China & Other Intl. Asset Sale 4/15/2010 mid-year

Bids due by mid-year; Following the recently announced sale of the company's assets in Brazil and Azerbaijan to BP, DVN's assets in China represent the bulk of what's remaining of its international portfolio. Assets in China include producing properties (12 mboepd and 16 mmboe) + interest in 7.9 million net acres on 3 blocks in the South China Sea (net unrisked potential 1-2 BBOE). We est after-tax proceeds could be $900-1200mm. DVN expects sales proceeds from remaining assets (incl Gulf Shelf) would be $1.3-2.0 billion pre-tax and $1-1.4 billion after-tax. DVN expects sales proceeds from remaining assets (incl China & other intl) would be $1.3-2.0 billion pre-tax and $1-1.4 billion after-tax.

medium 3/25/2010

DVN GOM M&A Gulf Shelf 4/15/2010 mid-year

Bids due by mid-year; GOM shelf prod'n averaged ~ 19 mboepd in '09, with YE reserves of about 39 mmboe. We est after-tax proceeds could be $300-500 million. DVN expects sales proceeds from remaining assets (incl China & other intl) would be $1.3-2.0 billion pre-tax and $1-1.4 billion after-tax.

minor 3/25/2010

DVN Haynesville, East TX Well Results

Shelby, Nacogdoches

Counties5/5/2010 1Q call? Currently completing 3 wells in Shelby and Nacogdoches Counties – expect

results next quarter. minor

DVN Horn River Well Results Well Results 8/4/2010 2Q call? To drill 7 horizontal wells and 4 vertical wells in 2010 – expects to complete 4 of these horizontals this summer. minor


Anticipated Impact



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ECA Haynesville Well Results well results 4/22/2010 1Q earnings callWell results and guidance updated likely on Q1 call. Volumes exited ’09 at 125mmcfpd net and were 180mmcfpd in February (from 29 wells). Average 2010 production to be ~240mmcfpd net to ECA. Target exit 400mmcfpd.

RDS medium

ECA Horn River Well Results well results 4/22/2010 1Q earnings callUpdate on program. Volumes – goal to get to 200mmcfpd by YE2011 from 50mmcfpd early ‘10. 30 day IP’s averaging 8-10mmcfpd (30 day) w/10-14 fracs.

APA medium

ECA Corporate Other Guidance 4/22/2010 1Q earnings call

Guidance update possible. LT growth of 15% annually until 2015 seems aggressive given weak prices. 2010 guidance (03/2010) is spending of $4.5bn -- based on NYMEX price of $5.75/mcf gas. On our $5 price deck, we estimate ECA could be over $1bn underfunded in 2010 (including dividends). Volumes - 2010 Midpoint volumes ~3.3 bcfepd. 2010 volumes are to exit at 3.4 to 3.5 bcfepd – an increase of ~22% from Q409 levels.

medium

ECA Corporate Other Royalties 4/30/2010 before 5/31/2010


medium

ECA Corporate Other Hedges 6/1/2010 2010 60% of '10 gas volumes (~3.1 bcfpd) hedged @ $6.04/mcf. In Q12010, added 935/870 Bcfpd in '11/'12 hedges at ~$6.50. medium

ECA Corporate Other JV agreement 6/30/2010 2010 More JVs with Asia possible -- recent deals (ECAKOGAS;APC-Mitsui) very attractive prices. medium


Anticipated Impact



EOG corporate Analyst Day analyst day 4/7/2010 4/7/2010

Major news expected: * 2010 cap-ex budget; we have modeled a $4.3 billion capital + expl'n budget (vs. $3.7 in '09) and free cash flow deficit of $1.0 billion. Weak gas prices may push budget below our expectations* update 2010 production outlook. Mid-point oil growth of ~ 55% likely to be reiterated, mid-point gas growth of 3% likely to be lowered.* 2011/2012 growth outlook. We expect oil volume growth of more than 30% in 2011, along with weak gas volume growth.* comments on "stealth" oil plays including Niobrara and Eagleford. Market very focused on potential disclosure

Conclusion: Believe investors will need to raise 2011 estimates to reflect outsized growth in high-revenue oil, offset by cut in gas volume expectations. Jury out on 2012 outlook -- if EOG convinces investors it has visible outsized oil growth into 2012 the shares should perform very well.

Eagleford exposure -PXD, HK, MUR, NFX, APC, SM, ROSE, EPNiobrara exposure - NBL, APC, SM, PETD

major

EOG Bossier Well Results DeSoto Parish 4/7/2010 Analyst Day

EOG will run 10 rigs on its Haynesville acreage in Louisiana and East Texas drilling some 70 wells this year, including some Bossier tests. The first Bossier well (DeSoto) tested at 13mmcfepd and after couple months of production the company believes that reserves could be similar to Haynesville typical well; EOG's best guess at the moment is that the Bossier formation is present on at least 1/2 of its 160,000 net acres in the play.

medium 3/25/2010

EOG Haynesville, East TX Well Results Nacogdoches

county 4/7/2010 Analyst Day

EOG will run 10 rigs on its Haynesville acreage in Louisiana and East Texas drilling some 70 wells this year, including some Bossier tests. Results from the newly announced "core" area in Nacogdoches and Shelby Counties could be particularly interesting to investors. EOG's first three wells came online at 15+ mmcfepd and cost ~$10mm to D&C.

minor 3/25/2010

EOG Three Forks Formation Well Results well results 4/7/2010 Analyst Day

IPs for first 3 Three Forks formation (below the Bakken) wells averaged 780 bpd (430-1390 bpd). Believes recoveries ~240 mboe. Will continue to test during the year.

minor 3/25/2010

EOG Marcellus Well Results well results from Bradford 7/15/2010 2Q call ?

Most of EOG's 2010 program includes wells drilled on the JV with Seneca (Clearfield, Elk and McKean County). The company also has several wells planned for Bradford County, where EOG holds 100% WI. Perhaps the company will discuss acreage position in Bradford along with well results.

CHK, SWN, minor

EOG International Well Results HZ program in China 8/1/2010 2Q Call Mgmt expects to have results form horizontal program in China by mid-year

and plans to discuss with investors on 2Q call. EOG has 130,000 acres. minor


Anticipated Impact



Equity Research

10


NBL deepwater GOM Exploration Deep Blue

exploration well 4/1/2010 shortly before 1Q call

Deep Blue (33.75% WI, NBL operated) is the company's largest deepwater GOM prospect to date. Pre-drill est is 200+ mmboe gross with 30% chance of geologic success. Located in the Green Canyon, nearby NBL's producing Ticonderoga project. In 2009 NBL exchanged 30% interest in the prospect for a 30% stake in Double Mountain. The well was spud in late November -- expect results by end of 1Q. Partners NBL 33.75%, MUR 9.375%, Samson 9.375%, BHP 31.975%, Statoil 15.625%

BHP, MUR, Statoil, Samson major 3/25/2010


Double Mountain

exploration well4/1/2010 shortly before

1Q call

Double Mountain (30% WI, BHP operated) - pre-drill est is 100+ mmboe with 45% chance of geologic success. The well was spud in early December -- expect results by end of 1Q. Partners NBL 30%, BHP 70%

BHP major 3/25/2010

NBL Israel Development Project

Tamar project sanction 4/1/2010 early 2010

Plans to sanction Tamar development in early 2010 -- expect to provide more details (including costs) about the project. First production is expected in 2012 and could be 400-600 mmcfepd from 5 wells.

medium 3/25/2010

NBL West Africa Exploration Sophia 4/1/2010 late March - April ?

Drilling a side track from one of the Aseng oil development wells targeting a separate small prospect named Sophia -- could be a nice tie in if successful. Later in the year (around mid-year) NBL will target deeper oil horizontals which are "virtually untested" to date.

minor 3/25/2010


Santiago prospect in Galapagos

project

4/15/2010 2Q ?A rig should have arrive at the Galapagos project late in 1Q and initiated drilling on the Santiago exploration test, a lower risk prospect in the Galapagos complex.

medium

NBL Niobrara Oil Shale Well Results well results 4/29/2010 1Q earnings call

?

Drilled 3 horizontal oil Niobrara wells in the Wattenberg field -- 2 were completed a/o 4Q call (2/18), the 3rd was being completed at the moment. Early results are encouraging -- NBL will dedicate 1 rig to drilling horizontal Niobrara wells in 2010 -- expects to drill ~20 wells; Will drill some horizontal oil wells targeting the Niobrara outside the Wattenberg field in 2H; Owns 700,000 acres in the DJ basin, will have 300 square miles of seismic by YE.

APC, EOG, SM, PETD medium

NBL Haynesville Well Results well results 4/29/2010 1Q earnings call ?

Results from 3rd HZ well in Shelby county (1st well produced at 11 mmcfepd during first 30-days and 2nd well produced at restricted 7 mmcfepd rate for first 15-days); 3rd well currently completing; NBL will drill ~11 Haynesville wells this year.

minor

NBL Israel Program results from 3-D shoot 5/1/2010 May ?

NBL have identified several prospects (through 2D) that could be larger than the Tamar discovery (Tamar is est at 6.5 Tcf). The company recently did a 3D shoot on 1400 square miles and is currently analyzing the results. Could disclose resource potential, probability of geologic success, etc.

major 3/25/2010

NBL deepwater GOM Exploration Gunflint

appraisal well 6/1/2010 mid-2010 ? After Deep Blue (end of 1Q), Noble will move the rig to Gunflint and will drill an appraisal well there. medium

NBL West Africa Development Project Belinda Sanction 6/1/2010 ?? Belinda is a gas cycling project -- will strip the liquids out and re-inject the gas

in the ground. medium

NBL corporate Analyst Day analyst day 6/2/2010 6/2/2010 major

NBL Granite Wash Well Results Well Results 6/15/2010 mid-year Will move a rig to Buffalo Wallow and drill 2-3 wells in mid-year. NFX, FST, APA minor

NBL International M&A asset sale 7/1/2010 Looking to monetize North Sea assets. No attractive offers to date; could be $200-300mm ?? medium

NBL West Africa Exploration exploration well 8/1/2010 late 3Q - 4Q NBL will target deeper oil horizontals which are "virtually untested" to date. Well will be spud around mid-year. medium

NBL deepwater GOM Exploration 2 exploration

wells 9/1/2010 3Q 2010 ? Following the appraisal well at Gunflint, NBL will drill 2 other "significant exploration and/or appraisal well to round out 2010". medium

NBL Israel Exploration exploration well 10/1/2010 4Q 2010 ?

NBL have identified several prospects (through 2D) that could be larger than the Tamar discovery (Tamar is est at 6.5 Tcf). The company will likely finish the analysis of its recently acquired 3D data (on 1400 square miles) sometime in May upon which it will reassess its prospects and decide where to drill next.

medium


Anticipated Impact



Equity Research

11


NFX deepwater GOM Exploration exploration well 4/15/2010 Feb spud Saluki prospect (pre-drill 100-1000 bcfe gross) was spud in Feb. Partners:

NFX operator 50% WI, Ecopetrol 50%. Ecopetrol medium 3/25/2010

NFX Northern Montana Well Results Well Results 4/21/2010 1Q earnings

call?

First spud on Blackfeet tribe acreage in Northern Montana, Glacier County in early April (well already permitted) -- the area is geologically similar to the Williston Basin and is prospective in the oil bearing Bakken, Three Forks and Lodgepole formations; NFX owns 156,000 net acres in the area; ROSE made a discovery in Glacier County (Jan/Feb'10) just east of NFX's acreage.

KWK, ROSE medium 3/25/2010

NFX Granite Wash Well Results Well Results 4/21/2010 1Q earnings call? Will drill 20 wells this year targeting 4-6 additional intervals. FST, APA medium

NFX Eagleford Well Results Well Results 4/21/2010 1Q earnings call?

25 wells this year with primary focus on the Eagle Ford and Pearsall Shales (in the Central Area Acreage in Southern Maverick and Dimmit Counties) and the Georgetown formation (in the Northern acreage in Maverick County. Drilling to commence immediately. Owns 300,000 net acres.

APC, SM, HK medium

NFX Wiliston Basin Well Results Well Results 4/21/2010 1Q earnings

call?First tests in Big Valley and Catwalk Areas west of the Nesson Anticline (~70,000 net acres). minor

NFX deepwater GOM Exploration Axe prospect 5/15/2010 Mar spud Axe prospect (pre-drill 50-150 bcfe) will be spud in March. Partners: MUR

(operator), NFX 23% WI, plus private companies. MUR minor 3/25/2010

NFX Marcellus Well Results Well Results 7/21/2010 2Q Earnings call?

NFX expects to drill up to 10 assessment vertical wells in Wayne County this summer. The company filed for its first four drilling permits in late February and March and according to state environmental regulator records, these are on track to be approved by late April or May.

HES medium


Anticipated Impact



NXY deepwater GOM Well Results GOM - Knotty

Head 4/1/2010 late Q1

Knotty Head being appraised. 4 partners each w/25% interest (CVX/BHP/STO/NXY). New drilling results at Knotty Head should allow the Knotty Head/Pony partners to agree to a joint development plan. We expect that HES (100% of Pony) will become the operator of the unitized development.

CVX/BHP/STO/HES medium

NXY Oil Sands Development Project

Long Lake Ramp up over

'105/1/2010 2010

Volumes were 18,000 bpd (gross) as of early February (capacity 72mbopd). This compares to NXY's FY2010 implied guidance of 31-46mbpd (gross). The steam-to-oil ratio (SOR) for producing wells was ~5.0 while the all-in SOR (including non-producing wells) was ~6.0. NXY expects a 3.0 SOR over the life of the project.

OPTI Canada major

NXY deepwater GOM Program Farm Out 6/30/2010 2010 NXY is likely to bring in a partner to share the cost of its exploration program.

NXY will likely receive an up-front cash payment along with a carry. medium

NXY International Development Project PSC extension 10/1/2010 late 2010 NXY is working on extending PSC beyond 2011. Yemen accounts for ~9% of

2010E volumes (net). OXY major

NXY Canada Development Project Horn River 10/1/2010 late 2010

2010 plan involves a winter drilling program with completions in 2H2010 involving up to 18 fracs per well. NXY expects to reach volumes of 50mmcfpd in 2011. This activity could set up an additional program in late 2010 involving an 18 well pad.

medium

NXY International Development Project

Usan (Nigeria) development 02/01/12 2012

The Usan field is expected to come online in early 2012 and ramp up to 180mbblspd (NXY 20% W.l.). The development plan includes the construction of a floating production storage and offloading facility (FPSO). Operated by Elf Petroleum Nigeria Limited (20%) on behalf of equity partners CVX (30%), Esso Exploration and Production Nigeria (30%) and NXY (20%).

CVX medium


Anticipated Impact



Equity Research

12


OXY corporate Analyst Day analyst day 5/19/2010 5/19/2010

Expect detail updates on company's operations around the world including the much talked about discovery in Kern County, California. Early estimates for the resource potential at the Kern County discovery was 150-250 mmboe but company has since pushed the boundaries of the play.

major

OXY corporate OtherRulling on $3.2B

claim against Ecuador

6/15/2010 2nd Half

DJ reported on 3/4 that according to a high-level official from Ecuador's attorney general's office the World Bank's International Center for Settlement of Investment Disputes may soon rule on a case brought by OXY against Ecuador. OXY is claiming $3.2 billion in damages fro the decision by Ecuador's government in May'06 to cancel the company's operating contract. OXY claims the government of Ecuador illegally nullified the contract. The government alleges OXY broke several of its agreed terms by transferring a 40% stage in its Ecuadorian projects to ECA without Energy Ministry approval. The ruling is expected to take place in the 2nd half of the year.

medium


Anticipated Impact



PXD Eagleford M&A JV agreement 4/20/2010 end of Q2

PXD has ~250,000 net acres in South Texas (310,000 gross), a large portion of which is believed to be in the "condensate" window of the Eaglefrod Shale. The company is actively seeking a JV partner and expects bids in 2Q. Management anticipates ramping up to 4-6 rigs (from 2 currently) upon signing the JV. If we were to assume that PXD farms out 50% of its position (or about 125,000 net acres) at a hypothetical $3,000-6,000/acre, the carry could be $400-750 million.


major 3/25/2010

PXD Eagleford Well Results well results 5/4/2010 1Q call ?

PXD currently drilling 2 hz wells in the "condensate" window in Karnes County. These are the company's 4th and 5th horizontal spuds in the play - PXD is de-risking its acreage as it looks to sign a JV deal by mid-year (perhaps in late April). PXD has drilled 3 wells in the "condensate: window and 1 in the "dry gas" window to date and results have been encouraging. The company's first well Friedrichs in Dewitt County experienced mechanical issues & came online at just 2.7 mmcfepd + 160 bpd. The Sinor # 5 well in Live Oak County was completed in 9 stages and came online at 8.3 mmcfepd + 500 bpd, the Crawley well came online at 17 mmcfepd (5,400 ft lateral, 16 completion stages), the Charles Riedesel well came online at 11.6 mmcfepd + 680 mmcfepd (4,500 ft lateral, 14 stages)


medium 3/25/2010


Anticipated Impact



RRC Appalachia Well Results PA 4/5/2010 AprilPotential above Marcellus acreage via formations such as Utica, Burkett, Middlesex, Genesee and Rhinestreet Shales. RRC passes through these formations in targeting the Marcellus. Log results showing promise.

Other Marcellus operators (SW: EQT, REXX, ATLS; NE: UPL, CHK, APC, EOG)

minor

RRC Marcellus Other Processing 5/1/2010 2010Updates on earnings calls. Processing Capacity – Currently 155mmcfpd of cryo capacity (02/10) -- 150mmcfpd cryo been ordered -- to be in place Q22011. 65mmcfpd of refrigeration capacity to be suspended during 2010.

MWE minor

RRC Marcellus Development Project NE Marcellus 6/1/2010 throughout year 1st hz Marcellus wells above 12mmcfpd (7 day IP). 15-20 more expected in

'10. medium

RRC Corporate M&A 6/30/2010 mid 2010RRC is selling assets to fund Marcellus spending. $330mm tight-gas sale to close in Q1. Mgmt noted Feb '10 $1bn in underfunding '10 through '12 to be covered w/asset sales and debt.

medium

RRC Marcellus Other 6/30/2010 2010 Takeaway capacity for Marcellus -- RRC has 200 Mmcf/d of firm take away capacity under contract and is negotiating for additional 200-350 Mmcf/d. minor


Anticipated Impact



Equity Research

13


SWN Marcellus Well Resultsexploration wells

- Bradford County

4/26/2010 1Q call

SWN's first horizontal well since 2008 was spud in January in Bradford County -- the Heckman Camp #1 Well is expected to come on prod'n in 2Q. SWN is stepping up activity in the play and plans to run 1 horizontal rig continuously through 2010 (20-25 horizontal) in Bradford County. Expect news flow to get busy. SWN will also participate in about 15 industry wells primarily in s Susquehanna county but also some in Bradford-- expect strong IP rates (SWN acreage is near COG's area of activity where 30-day average IP rates have been 3.5-10.9 mmcfepd).

medium

SWN Haynesville, East TX Well Results St. Augustine/

Shelby Counties 4/26/2010 1Q call

Completing 6th Haynesville well and drilling 2 add'l Haynesville wells (a/o late Feb) both of which are expected to be completed in 2Q. Will drill approx 21-26 wells targeting the Haynesville and Middle Bossier in E. TX. SWN is also evaluating the potential of the Petit oil bearing formation. To date the company has completed ~5 Haynesville wells (avg IP ~15 mmcfepd) and 1 Middle Bossier well with IP 11.3. We believe SWN may have to slow down drilling in the area in a prolonged weak gas price environment due to cash flow constraints.

medium 3/25/2010

SWN Fayetteville Well Results well results 4/26/2010 1Q callQuarterly Fayetteville results should continue to improve. SWN is targeting 4500+ foot laterals in 2010 vs.~4000 foot laterals in 2009. Also will be testing at least 20 additional pilot areas with downspacing (65-acres and less).

minor

SWN Bossier Well Resultsexploration wells - St. Augustine/ Shelby Counties

7/28/2010 2Q call

Will drill approx 21-26 wells targeting the Haynesville and Middle Bossier in E. TX. To date the company has completed ~5 Haynesville wells (avg IP ~15 mmcfepd) and 1 Middle Bossier well with IP 11.3. We believe SWN may have to slow down drilling in the area in a prolonged weak gas price environment due to cash flow constraints.

minor 3/25/2010


Anticipated Impact



Equity Research

14


TLM International Exploration Kurdistan 4/15/2010 late Q1 or Q2Plan to test primary target of the Kurdamir well in Kurdistan if the bottom hole is stabilized/stability issues have prevented testing thus far – Exploration results due Q1 or Q2 – high risk/reward.

Western Zargos medium

TLM International Exploration Columbia 4/15/2010 late Q1 or Q2 Two wells in Colombia’s Llanos Foreland Play – Q1 & Q2 – Exploration (results Q2) – low risk/reward. Extensive acreage -- heavy oil upside. minor

TLM Corporate Other Royalties 4/30/2010 before 5/31/2010


medium

TLM Quebec Well Results 1st hz's 5/1/2010 2010

Partner Questerre announced the St. Edouard 1A well targeting the Utica Shale IP’d at 12mmcfpd (initially) in late January (TLM 75% interest). 4 well program in 2010 -- Questerre is partner with 25% interest on wells 1,2 & 4. Canadian E&P Intragaz is 20% partner on well #3. All 4 wells will be within 50km of one another on the North Central portion of the play.

FST, Questerre major

TLM International Exploration Indonesia 5/1/2010 1H2010 2 well program in Indonesia. medium

TLM International Exploration Malaysia 5/1/2010 Q2 Deep exploration well on PM-3 in Malaysia – Q2 – Exploration (results Q2) – low risk/reward. minor

TLM Corporate Earnings 5/5/2010 5/5/2010 Q1 earnings released early morning 05/05/10. medium

TLM Corporate Analyst Day 5/12/2010 5/12/2010TLM to review strategy including aggressive Marcellus ramp. Well results possible from int'l expl'n and potentially Quebec shale. Toranto day 5/12, NYC day 5/13.

medium

TLM Marcellus Development Project

Ramp up over '10 6/1/2010 2010

12/09 volumes averaged 65mmcfpd from 27 wells. Planned exit rate remains 250-300mm. 6 rigs operating with plans to increase to 10 by YE10. Focus NE PA in Bradford, Tioga and Susquehanna counties.

medium

TLM International Exploration S America 7/1/2010 2010In Peru the Runtasapa exploration well will be drilled in block 101. In Colombia, TLM to drill 2 exploration wells. Appraisal drilling will commence on Huron discovery in the Niscota Block.

medium

TLM International Exploration Kurdistan 7/1/2010 2010 2nd exploration well in Block K44 expected. medium

TLM International Exploration N. Sea 7/1/2010 2010 1 exploration well in UK and 2 in Norway. Grevling in Norway will be appraised. medium

TLM International Exploration Indonesia 9/30/2010 Q3-Q4 Drill and test two wells in Makassar strait Indonesia on Pasangkayu – Q2 to Q4 – Exploration (results Q3 & Q4) – high risk/reward. medium

TLM International Exploration Peru 10/30/2010 Q4 Peru Exploration well Runtasapa – Q2 to Q4 – Exploration (results Q4) – medium risk/reward. medium

TLM International Exploration PNG 10/30/2010 Q3-Q4 4 Onshore wells in Papua New Guinea – Q3 to Q4 – 1 Development, 1 Appraisal & 2 Exploration wells (results Q3 & Q4) – medium risk/reward. medium

TLM International Exploration Norway 10/30/2010 Q3-Q4 Two Norwegian wells on PL 341 – Q3 to Q4 – Exploration (results Q4) – medium risk/reward. medium


Anticipated Impact



UPL Marcellus Well Results well results 5/15/2010 1Q earnings call

Stepping up drilling in 2010 significantly and will participate in 110 wells -- expect busy news flow. Participated in 37 hz wells in Tioga and Potter Counties last year (average 30-day IP 4 mmcfepd) - partners with East Resources and most recently with APC (non-op).

Tioga - NFG, TLM; Potter - PVA; Lycoming - APC, XCO, RRC

major 3/25/2010


Anticipated Impact



Equity Research

15

Comp Sheet Link: https://live.barcap.com/go/research/content?contentPubID=ADH1582272

EV/ EV/ EV/ EV/ EV/ Current 12-MonthInvestment 2010E 2011E EV/ 2010E Pre-Tax After-Tax Stock Potential

Ticker Rating PICF PICF BOE BOEPD SEC-10 SEC-10 Price AppreciationLarge Caps: 2-NeutralAnadarko Petroleum APC 1-OW 7.4 6.4 18.36 63,804 2.00 3.12 69.40 18%Apache Corporation APA 1-OW 5.3 4.7 15.62 54,089 1.85 2.79 98.31 35%Canadian Natural Resources CNQ 1-OW 6.6 5.6 13.43 83,412 3.51 4.69 C$ 71.89 27%Cenovus Energy CVE 2-EW 8.1 7.3 17.78 93,771 2.12 2.79 24.43 11%Devon Energy DVN 2-EW 6.2 5.7 13.07 38,041 2.13 2.88 63.20 25%EnCana Corporation ECA 2-EW 7.6 6.3 14.37 46,595 2.99 3.27 29.47 26%EOG Resources EOG 1-OW 7.0 5.5 13.77 57,541 2.30 3.28 89.59 41%Newfield Exploration NFX 1-OW 6.3 5.5 13.49 62,506 2.18 2.84 47.59 26%Nexen Inc. NXY 1-OW 5.5 4.9 18.55 82,688 2.90 3.94 C$ 24.19 16%Noble Energy NBL 1-OW 6.8 6.5 16.37 63,389 2.29 2.72 69.19 21%Occidental Petroleum OXY 1-OW 7.8 6.4 19.24 82,640 1.83 2.51 81.73 15%Pioneer Natural Resources PXD 2-EW 7.4 6.1 9.84 66,308 1.93 2.67 52.80 2%Range Resources RRC 2-EW 15.8 11.4 17.65 91,673 3.24 4.40 45.67 23%Southwestern Energy SWN 1-OW 9.4 7.6 23.26 65,954 5.69 7.87 37.70 54%Talisman Energy TLM 1-OW 5.0 4.6 16.51 54,697 2.34 2.84 C$ 16.87 42%Ultra Petroleum UPL 2-EW 9.6 8.2 11.59 71,252 3.25 3.73 44.18 31%Simple Average (ex. RRC SWN UPL) 6.7 5.8 15.42 65,345 2.34 3.10 26% Stock prices as of close of business 3/26/2010 Sector rating: 2-Neutral Notes:1) EV/BOE is based on YE'08 proved reserves, after royalties, as adjusted for acquisitions/sales during the current year.

2) Our calculations of Enterprise Value (EV) reflect a mark-to market after tax value of hedges. EX: a $1 bil. projected '10 hedge gain leads us to reduce EV by $1 bil

3) When calculating EV of upstream operations (e.g. for EV/BOE, EV/BOEPD, and EV/SEC-10 multiples) we have reduced corporate EV for certain companies with sign. non-E&P assets -- OXY's est'd upstream value reflects a deduct from EV of $6.8 bil (7.5x 2009E EBITDA of $904 mm) for the chemicals business -- APC's est'd upstream value reflects a deduct from EV of $4.8 bn for midstream ops (11x '09 margin of $433 mm) -- DVN's est'd upstream value reflects a deduct of $3.6 bil for the value of midstream assets (9.0x '09E EBITDA of $400 mil)

-- CNQ's EV reduced C$10bn to account for Horizon value. Proved reserves for CNQ excludes the Horizon oil sands projects.4) 2009E and 2010E PICF estimates exclude estimated hedges. Our estimate of the mark to market gain/(loss) is included as an decrease/increase to Enterprise value

a) EV reflects our estimate of pro forma YE net debt. Ex: For a company expected to borrow $100 mm to fund 2009's budget we will add $100 mm to the current EV2009 multiples based upon current net debt, 2010 multiples based upon YE09 net debtb) EV used to calculate EV/EBITDAX are not adjusted for mark-to-market hedge value (EBITDAX estimated include hedge effects). These multiples are skewed by hedge gains/losses as hedge value is contained in the EBITDAX-denominator.

5) PICF = Pre-interest Cash Flow = EBITDAX - Cash Income Tax6) EV/PICF multiple reflects a "mark-to-market" approach to hedges. The estimated after-tax gain/loss on existing hedges is reflected as an adustment to EV. 7) EV/EBITDAX does not differentiate between cash and deferred taxes and includes effects of hedges in EBITDAX. It can be skewed by both cash tax differences and large one time hedge gains/losses.8) CNQ, NXY, TLM's EV converted to USD to calculate EV/BOE & EV/BOEPD metrics. Source: Company Reports and Barclays Capital Estimates

Equity Research

16

Past Week Stock Performance Chart (3/19/2010 – 3/26/2010) 1.7%

-0.1%-0.4%

-0.8% -1.0%

-1.7% -1.7%-2.1%

-2.3%-2.7%

-3.0%-3.3%

-4.4% -4.4%-4.8% -4.8% -4.8%

-5.5%

-7.6%-7.6%

-9.0%

-7.0%

-5.0%

-3.0%

-1.0%

1.0%

SP50 UPL PXD APC OXY DVN CVE NXY EOG AvgGroup

CNQ APA RRC ECA TLM NFX SWN NBL EPX CHK

Source: FactSet Past Month Stock Performance Chart

15.5%

6.4% 6.0%5.0% 4.5%

0.6% 0.6% 0.3%

-0.9%-1.6%

-2.5% -2.7%

-4.3% -4.5%-5.8%

-6.7%-7.8%

-8.8%

-13.0%

-8.9%

-15.5%

-10.5%

-5.5%

-0.5%

4.5%

9.5%

14.5%

PXD NXY SP50 CNQ OXY APC CVE UPL AvgGroup

EOG EPX NBL NFX APA SWN DVN RRC ECA TLM CHK

Source: FactSet

Equity Research

17

YTD Stock Performance Chart 13.1%

11.9%

5.0%

2.6%1.4%

0.1%

-0.8% -1.0%-2.2% -2.6% -2.7%

-4.0%-4.9%

-6.4%-7.7% -8.0%

-10.6% -10.7%

-16.8%

-12.5%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

APC PXD SP50 OXY NFX NXY NBL CNQ CVE AvgGroup

EPX APA EOG RRC ECA UPL TLM CHK DVN SWN

Source: FactSet

Analyst Certification: I, Thomas R. Driscoll, CFA, hereby certify (1) that the views expressed in this research report accurately reflect my personal views about any or all of the subject securities or issuers referred to in this research report and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this research report. Other Team Members: Bakanauskas, Robert (BCI, New York) 1.212.526.8646 [email protected] Krasteva, Iva (BCI, New York) 1.212.526.4420 [email protected] On September 20, 2008, Barclays Capital acquired Lehman Brothers' North American investment banking, capital markets, and private investment management businesses. All ratings and price targets prior to this date relate to coverage under Lehman Brothers Inc.

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Important Disclosures: Apache Corp. (APA) US$ 98.31 (26-Mar-2010) 1-Overweight / 2-Neutral Rating and Price Target Chart:

3-07 6-07 9-07 12-07 3-08 6-08 9-08 12-08 3-09 6-09 9-09 12-09 3-1040.00

48.00

56.00

64.00

72.00

80.00

88.00

96.00

104.00

112.00

120.00

128.00

136.00

144.00

152.00

160.00

Source: FactSet

APACHE CORP.As of 22-Mar-2010

Currency = USD

Closing Price Price TargetRecommendation Change Drop Coverage

Currency=US$ Date Closing Price Rating Price Target 19-Feb-10 105.01 133.00 20-Jan-10 106.46 135.00 30-Oct-09 94.12 120.00 02-Oct-09 89.95 100.00 31-Jul-09 83.95 94.00 13-Jul-09 69.27 90.00 01-May-09 76.97 89.00 20-Feb-09 63.84 90.00 12-Dec-08 71.54 95.00 30-Oct-08 78.95 94.00 15-Oct-08 65.28 104.00 06-Oct-08 86.46 139.00 28-Aug-08 114.36 142.00

Date Closing Price Rating Price Target 01-Aug-08 113.74 144.00 17-Jul-08 111.12 150.00 06-Jun-08 133.90 152.00 29-Apr-08 132.68 144.00 18-Mar-08 118.27 126.00 17-Dec-07 101.03 116.00 09-Oct-07 92.22 105.00 21-Aug-07 74.60 95.00 17-May-07 76.34 86.00 27-Apr-07 73.53 80.00 25-Apr-07 76.40 78.00 13-Mar-07 67.16 79.00

FOR EXPLANATIONS OF RATINGS REFER TO THE STOCK RATING KEYS LOCATED ON THE PAGE FOLLOWING THE LAST PRICE CHART.

Barclays Bank PLC and/or an affiliate is a market-maker and/or liquidity provider in securities issued by Apache Corp. or one of its affiliates. Barclays Bank PLC and/or an affiliate has received compensation for investment banking services from Apache Corp. in the past 12 months. Barclays Bank PLC and/or an affiliate trades regularly in the shares of Apache Corp.. Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from Apache Corp. within the past 12 months. Apache Corp. is or during the past 12 months has been an investment banking client of Barclays Bank PLC and/or an affiliate. Apache Corp. is or during the last 12 months has been a non-investment banking client (securities related services) of Barclays Bank PLC and/or an affiliate. Apache Corp. is or during the last 12 months has been a non-investment banking client (non-securities related services) of Barclays Bank PLC and/or an affiliate. Barclays Bank PLC is associated with specialist firm Barclays Capital Market Makers, which makes a market in Apache Corp. stock. At any given time, the associated specialist may have "long" or "short" inventory position in the stock; and the associated specialist may be on the opposite side of orders executed on the Floor of the Exchange in the stock.

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Risks Which May Impede the Achievement of the Price Target: Our price target is derived using a multiple of forward-year ('11) pre-interest cash flow (PICF) estimates. Our estimate for forward-year PICF is predicated on a benchmark natural gas price forecast of $5.50/MMBtu (at HH) and an oil price forecast of $85/bbl (WTI). Should commodity prices, production levels, or leverage differ materially from our estimates, our price target would be affected. The company's production levels are impacted by a variety of factors including drilling success, reservoir performance and future acquisitions. Our target price is based on a forward-year firm value to de-levered cash flow multiple.

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Important Disclosures Continued: Canadian Natural Resources (CNQ) CAD 71.99 (26-Mar-2010) 1-Overweight / 2-Neutral Rating and Price Target Chart:

3-07 6-07 9-07 12-07 3-08 6-08 9-08 12-08 3-09 6-09 9-09 12-09 3-10

32.00

40.00

48.00

56.00

64.00

72.00

80.00

88.00

96.00

104.00

112.00

Source: FactSet

CANADIAN NATURAL RESOURCES LTD.As of 22-Mar-2010

Currency = CAD


Currency=CAD Date Closing Price Rating Price Target 20-Jan-10 71.59 93.00 06-Nov-09 69.63 83.00 06-Nov-09 69.63 1 -Overweight 07-Oct-09 70.73 66.00 07-Aug-09 64.69 58.00 14-Jul-09 58.11 60.00 11-May-09 61.81 54.00 05-May-09 60.01 2 -Equal weight 06-Mar-09 41.89 53.00 28-Jan-09 45.60 55.00 12-Dec-08 45.71 61.00 07-Nov-08 53.80 69.00 15-Oct-08 46.03 68.00 28-Aug-08 89.22 100.00 08-Aug-08 77.76 102.00

Date Closing Price Rating Price Target 01-Aug-08 81.30 111.00 06-Jun-08 105.61 112.00 12-May-08 96.72 104.00 29-Apr-08 82.78 101.00 09-Apr-08 78.25 85.00 09-Apr-08 78.25 1 -Overweight 18-Mar-08 71.23 81.00 29-Feb-08 73.30 76.00 18-Dec-07 70.00 72.00 28-Nov-07 66.75 70.00 10-Oct-07 72.87 75.00 16-May-07 69.25 71.00 16-May-07 69.25 2 -Equal weight 02-May-07 67.40 68.00 08-Mar-07 60.35 72.00


Barclays Bank PLC and/or an affiliate is a market-maker and/or liquidity provider in securities issued by Canadian Natural Resources or one of its affiliates. Barclays Bank PLC and/or an affiliate has received compensation for investment banking services from Canadian Natural Resources in the past 12 months. Barclays Bank PLC and/or an affiliate trades regularly in the shares of Canadian Natural Resources. Canadian Natural Resources is or during the past 12 months has been an investment banking client of Barclays Bank PLC and/or an affiliate. Barclays Bank PLC is associated with specialist firm Barclays Capital Market Makers, which makes a market in Canadian Natural Resources stock. At any given time, the associated specialist may have "long" or "short" inventory position in the stock; and the associated specialist may be on the opposite side of orders executed on the Floor of the Exchange in the stock.

Risks Which May Impede the Achievement of the Price Target: Our price target is derived using a multiple of forward-year ('11) pre-interest cash flow (PICF) estimates. Our estimate for forward-year PICF is predicated on a benchmark natural gas price forecast of

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$5.50/MMBtu (at HH) and an oil price forecast of $85/bbl (WTI). Should commodity prices, production levels, or leverage differ materially from our estimates, our price target would be affected. The company's production levels are impacted by a variety of factors including drilling success, reservoir performance and future acquisitions. Our target price is based on a forward-year firm value to de-levered cash flow multiple.

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Important Disclosures Continued: EOG Resources (EOG) US$ 89.59 (26-Mar-2010) 1-Overweight / 2-Neutral Rating and Price Target Chart:

3-07 6-07 9-07 12-07 3-08 6-08 9-08 12-08 3-09 6-09 9-09 12-09 3-1040.00

48.00

56.00

64.00

72.00

80.00

88.00

96.00

104.00

112.00

120.00

128.00

136.00

144.00

Source: FactSet

EOG RESOURCES INC.As of 22-Mar-2010

Currency = USD


Currency=US$ Date Closing Price Rating Price Target 11-Feb-10 91.06 126.00 20-Jan-10 96.33 127.00 20-Nov-09 86.47 121.00 09-Nov-09 92.40 112.00 13-Jul-09 63.83 81.00 05-May-09 71.01 80.00 06-Feb-09 68.41 87.00 12-Dec-08 67.97 92.00 05-Nov-08 81.81 96.00 15-Oct-08 61.17 104.00 26-Sep-08 94.52 129.00 28-Aug-08 105.34 134.00 31-Jul-08 100.53 135.00

Date Closing Price Rating Price Target 06-Jun-08 128.81 140.00 29-Apr-08 128.36 136.00 18-Mar-08 123.47 127.00 29-Feb-08 118.99 114.00 05-Feb-08 87.50 104.00 17-Dec-07 87.33 103.00 31-Oct-07 88.60 101.00 09-Oct-07 78.26 92.00 06-Aug-07 70.52 89.00 17-May-07 76.70 94.00 13-Mar-07 65.87 92.00


Barclays Bank PLC and/or an affiliate has been lead manager or co-lead manager of a publicly disclosed offer of securities of EOG Resources in the previous 12 months. Barclays Bank PLC and/or an affiliate has received compensation for investment banking services from EOG Resources in the past 12 months. Barclays Bank PLC and/or an affiliate trades regularly in the shares of EOG Resources. Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from EOG Resources within the past 12 months. EOG Resources is or during the past 12 months has been an investment banking client of Barclays Bank PLC and/or an affiliate. EOG Resources is or during the last 12 months has been a non-investment banking client (securities related services) of Barclays Bank PLC and/or an affiliate. EOG Resources is or during the last 12 months has been a non-investment banking client (non-securities related services) of Barclays Bank PLC and/or an affiliate.

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Risks Which May Impede the Achievement of the Price Target: Should commodity prices, production levels, or leverage differ materially from our estimates, our price target would be affected. The company's production levels are impacted by a variety of factors including drilling success, reservoir performance and future acquisitions.

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Important Disclosures Continued: Noble Energy (NBL) US$ 69.19 (26-Mar-2010) 1-Overweight / 2-Neutral Rating and Price Target Chart:

3-07 6-07 9-07 12-07 3-08 6-08 9-08 12-08 3-09 6-09 9-09 12-09 3-10

32.00

40.00

48.00

56.00

64.00

72.00

80.00

88.00

96.00

104.00

112.00

Source: FactSet

NOBLE ENERGY INC.As of 22-Mar-2010

Currency = USD


Currency=US$ Date Closing Price Rating Price Target 20-Jan-10 77.61 84.00 30-Oct-09 65.63 75.00 31-Jul-09 61.12 69.00 13-Jul-09 55.83 66.00 03-Jun-09 60.77 65.00 20-Feb-09 48.03 63.00 30-Oct-08 48.89 68.00 15-Oct-08 38.66 74.00 26-Sep-08 59.52 93.00 28-Aug-08 72.84 102.00 31-Jul-08 73.87 108.00 06-Jun-08 100.02 110.00 16-May-08 101.54 103.00

Date Closing Price Rating Price Target 29-Apr-08 87.21 99.00 18-Mar-08 75.12 88.00 28-Feb-08 81.35 85.00 17-Dec-07 75.72 90.00 01-Nov-07 75.21 84.00 12-Oct-07 75.85 81.00 07-Aug-07 61.37 74.00 15-Jun-07 64.63 73.00 18-May-07 62.81 70.00 04-May-07 60.17 65.00 13-Mar-07 56.26 64.00


Barclays Bank PLC and/or an affiliate is a market-maker and/or liquidity provider in securities issued by Noble Energy or one of its affiliates. Barclays Bank PLC and/or an affiliate has received compensation for investment banking services from Noble Energy in the past 12 months. Barclays Bank PLC and/or an affiliate trades regularly in the shares of Noble Energy. Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from Noble Energy within the past 12 months. Noble Energy is or during the past 12 months has been an investment banking client of Barclays Bank PLC and/or an affiliate. Noble Energy is or during the last 12 months has been a non-investment banking client (securities related services) of Barclays Bank PLC and/or an affiliate. Noble Energy is or during the last 12 months has been a non-investment banking client (non-securities related services) of Barclays Bank PLC and/or an affiliate. Barclays Bank PLC is associated with specialist firm Barclays Capital Market Makers, which makes a market in Noble Energy stock. At any given time, the associated specialist may have "long" or "short" inventory position in the stock; and the associated specialist may be on the opposite side of orders executed on the Floor of the Exchange in the stock.

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Risks Which May Impede the Achievement of the Price Target: Should commodity prices, production levels, or leverage differ materially from our estimates, our price target would be affected. The company's production levels are impacted by a variety of factors including drilling success, reservoir performance and future acquisitions.

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Important Disclosures Continued: The analysts responsible for preparing this report have received compensation based upon various factors including the firm's total revenues, a portion of which is generated by investment banking activities. Mentioned Company Ticker Price Price Date Stock / Sector Rating Apache Corp. APA US$ 98.31 26 Mar 2010 1-Overweight / 2-Neutral Canadian Natural Resources CNQ CAD 71.99 26 Mar 2010 1-Overweight / 2-Neutral EOG Resources EOG US$ 89.59 26 Mar 2010 1-Overweight / 2-Neutral Noble Energy NBL US$ 69.19 26 Mar 2010 1-Overweight / 2-Neutral Barclays Capital produces a variety of research products including, but not limited to, fundamental analysis, equity-linked analysis, quantitative analysis, and trade ideas. Recommendations contained in one type of research product may differ from recommendations contained in other types of research products, whether as a result of differing time horizons, methodologies, or otherwise.

Guide to the Barclays Capital Fundamental Equity Research Rating System: Our coverage analysts use a relative rating system in which they rate stocks as 1-Overweight, 2-Equal Weight or 3-Underweight (see definitions below) relative to other companies covered by the analyst or a team of analysts that are deemed to be in the same industry sector (the “sector coverage universe”). Below is the list of companies that constitute the sector coverage universe: Anadarko Petroleum (APC) Apache Corp. (APA) Canadian Natural Resources (CNQ) Cenovus Energy Inc. (CVE) Devon Energy (DVN) EnCana Corp. (ECA) EOG Resources (EOG) Newfield Exploration (NFX) Nexen Inc. (NXY) Noble Energy (NBL) Occidental Petroleum (OXY) Pioneer Natural Resources (PXD) Range Resources Corp. (RRC) Southwestern Energy Co. (SWN) Talisman Energy (TLM) Ultra Petroleum Corp. (UPL) XTO Energy (XTO) In addition to the stock rating, we provide sector views which rate the outlook for the sector coverage universe as 1-Positive, 2-Neutral or 3-Negative (see definitions below). A rating system using terms such as buy, hold and sell is not the equivalent of our rating system. Investors should carefully read the entire research report including the definitions of all ratings and not infer its contents from ratings alone. Stock Rating 1-Overweight - The stock is expected to outperform the unweighted expected total return of the sector coverage universe over a 12-month investment horizon. 2-Equal Weight - The stock is expected to perform in line with the unweighted expected total return of the sector coverage universe over a 12- month investment horizon. 3-Underweight - The stock is expected to underperform the unweighted expected total return of the sector coverage universe over a 12- month investment horizon. RS-Rating Suspended - The rating and target price have been suspended temporarily due to market events that made coverage impracticable or to comply with applicable regulations and/or firm policies in certain circumstances including when Barclays Capital is acting in an advisory capacity in a merger or strategic transaction involving the company. Sector View 1-Positive - sector coverage universe fundamentals/valuations are improving. 2-Neutral - sector coverage universe fundamentals/valuations are steady, neither improving nor deteriorating. 3-Negative - sector coverage universe fundamentals/valuations are deteriorating. Distribution of Ratings: Barclays Capital Equity Research has 1450 companies under coverage.

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42% have been assigned a 1-Overweight rating which, for purposes of mandatory regulatory disclosures, is classified as a Buy rating; 46% of companies with this rating are investment banking clients of the Firm. 44% have been assigned a 2-Equal Weight rating which, for purposes of mandatory regulatory disclosures, is classified as a Hold rating; 42% of companies with this rating are investment banking clients of the Firm. 12% have been assigned a 3-Underweight rating which, for purposes of mandatory regulatory disclosures, is classified as a Sell rating; 32% of companies with this rating are investment banking clients of the Firm. Barclays Capital offices involved in the production of Equity Research: London Barclays Capital, the investment banking division of Barclays Bank PLC (Barclays Capital, London) New York Barclays Capital Inc. (BCI, New York) Tokyo Barclays Capital Japan Limited (BCJL, Tokyo) São Paulo Banco Barclays S.A. (BBSA, São Paulo) Hong Kong Barclays Bank PLC, Hong Kong branch (BB, Hong Kong) Toronto Barclays Capital Canada Inc. (BCC, Toronto) This publication has been prepared by Barclays Capital; the investment banking division of Barclays Bank PLC, and/or one or more of its affiliates as provided below. This publication is provided to you for information purposes only. Prices shown in this publication are indicative and Barclays Capital is not offering to buy or sell or soliciting offers to buy or sell any financial instrument. Other than disclosures relating to Barclays Capital, the information contained in this publication has been obtained from sources that Barclays Capital believes to be reliable, but Barclays Capital does not represent or warrant that it is accurate or complete. The views in this publication are those of Barclays Capital and are subject to change, and Barclays Capital has no obligation to update its opinions or the information in this publication. Barclays Capital and its affiliates and their respective officers, directors, partners and employees, including persons involved in the preparation or issuance of this document, may from time to time act as manager, co-manager or underwriter of a public offering or otherwise, in the capacity of principal or agent, deal in, hold or act as market-makers or advisors, brokers or commercial and/or investment bankers in relation to the securities or related derivatives which are the subject of this publication. The analyst recommendations in this report reflect solely and exclusively those of the author(s), and such opinions were prepared independently of any other interests, including those of Barclays Capital and/or its affiliates. Neither Barclays Capital, nor any affiliate, nor any of their respective officers, directors, partners, or employees accepts any liability whatsoever for any direct or consequential loss arising from any use of this publication or its contents. The securities discussed in this publication may not be suitable for all investors. Barclays Capital recommends that investors independently evaluate each issuer, security or instrument discussed in this publication and consult any independent advisors they believe necessary. The value of and income from any investment may fluctuate from day to day as a result of changes in relevant economic markets (including changes in market liquidity). The information in this publication is not intended to predict actual results, which may differ substantially from those reflected. Past performance is not necessarily indicative of future results. This communication is being made available in the UK and Europe to persons who are investment professionals as that term is defined in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion Order) 2005. 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Subject to the conditions of this publication as set out above, Absa Capital, the Investment Banking Division of Absa Bank Limited, an authorised financial services provider (Registration No.: 1986/004794/06), is distributing this material in South Africa. Absa Bank Limited is regulated by the South African Reserve Bank. This publication is not, nor is it intended to be, advice as defined and/or contemplated in the (South African) Financial Advisory and Intermediary Services Act, 37 of 2002, or any other financial, investment, trading, tax, legal, accounting, retirement, actuarial or other professional advice or service whatsoever. Any South African person or entity wishing to effect a transaction in any security discussed herein should do so only by contacting a representative of Absa Capital in South Africa, 15 Alice Lane, Sandton, Johannesburg, Gauteng, 2196. Absa Capital is an affiliate of Barclays Capital. Non-U.S. persons should contact and execute transactions through a Barclays Bank PLC branch or affiliate in their home jurisdiction unless local regulations permit otherwise. In Japan, foreign exchange research reports are prepared and distributed by Barclays Bank PLC Tokyo Branch. Other research reports are distributed to institutional investors in Japan by Barclays Capital Japan Limited. Barclays Capital Japan Limited is a joint-stock company incorporated in Japan with registered office of 6-10-1 Roppongi, Minato-ku, Tokyo 106-6131, Japan. It is a subsidiary of Barclays Bank PLC and a registered financial instruments firm regulated by the Financial Services Agency of Japan. Registered Number: Kanto Zaimukyokucho (kinsho) No. 143. Barclays Bank PLC Frankfurt Branch is distributing this material in Germany under the supervision of Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). This material is distributed in Malaysia by Barclays Capital Markets Malaysia Sdn Bhd. IRS Circular 230 Prepared Materials Disclaimer: Barclays Capital and its affiliates do not provide tax advice and nothing contained herein should be construed to be tax advice. Please be advised that any discussion of U.S. tax matters contained herein (including any attachments) (i) is not intended or written to be used, and cannot be used, by you for the purpose of avoiding U.S. tax-related penalties; and (ii) was written to support the promotion or

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marketing of the transactions or other matters addressed herein. Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor. © Copyright Barclays Bank PLC (2010). All rights reserved. No part of this publication may be reproduced in any manner without the prior written permission of Barclays Capital or any of its affiliates. Barclays Bank PLC is registered in England No. 1026167. Registered office 1 Churchill Place, London, E14 5HP. Additional information regarding this publication will be furnished upon request.

oil & gas: e&p (large cap)€¦ · bil of cap-ex in 2010-2011 but will yield 100+ mboepd by...

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