Stone Energy (SGY) - NOIA Energy (SGY) Welcome STEM Teachers . ... SW rich Marcellus G r a n i t e...

Stone Energy (SGY)

Welcome STEM Teachers NOIA, Scottsdale, AZ

October 2015

Achieving Milestones

2

Energy Lifts People Out of Poverty Enabling Machine Powered Labor

Power Factories, Tractors, Trucks, Cars, Trains, Planes, Computers Heat & Cool Buildings, Factories, Homes and Light the Night

Power Factories, Tractors, Trucks, Cars, Trains, Planes, Ships, Computers, Media Heat & Cool Buildings & Homes, Provide Petrochemicals, and Light the Night

Achieving Milestones

3 16

Population Slide

Population Growth & Standard of Living Drives Energy Demand

Achieving Milestones

4

Every Well Worldwide Declines As Its Reservoir Depletes

Source: EIA Annual Energy Outlook 2013; Chevron media

Global Crude Oil Supply and Demand

100

MMBD

2013

80

60

40

20

2030

Demand

Existing Base Production

200 Billion Barrels Required Between

2013-2030

Decline in mature fields

$8 trillion investment

Achieving Milestones

5

Oil Prices Cannot Stay Below the Marginal Cost of Supply for Long

100

Percent of 2013 to 2020 Growth

80

60

40

20

Source: EIA Annual Energy Outlook 2013; Chevron media

U.S. Tight

Deepwater

Onshore and Shallow

OPEC

Oil Sands

Liquids Productive Capacity

International Tight

$ per Barrel Brent Breakeven Range by Asset Class

120

80

40

OPEC Onshore and Shallow

Deepwater US Tight Oil Sands International Tight

Weighted Average Price

Achieving Milestones

6

Transformational Breakthroughs Have Increased Energy Supply

Deep Water Exploration and

Production Technologies

Horizontal Drilling and

Fracturing

Achieving Milestones

7

Environmental Protection Agency Declares Frac Technology Safe

EPA Study

• 4 Year Effort • Multi Million $$$ • 6,800 Water Sources • 9.4 Million People 1 Mile • 25,000 Frac Sites Since 2011

Conclusions • No Systemic Harm to Water • No Single Case of Contamination

EPA Now Admits Fracking Hasn’t Harmed Water Supplies

Achieving Milestones

8

Gulf of Mexico

Utica Marcellus

Stone is Focused in Lowest (Non-OPEC) Cost of Supply Basins

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

Per

mian

Utica

SW rich Marcellus

Granite W

Niobrara

NE dry Marcellus

Eagle Ford

Fayetteville

Barnett

Haynesville

Cumulative Production Growth 2013-2020(Bcfd)

NYM

EX B

reak

dow

n fo

r 15%

ATA

X IR

R

Gas Supply Cost

0

20

40

60

80

100

120

140

US DW

Montney

Duvernay

Niobrara

Oil Sands (Mining)

Wolfcamp Bakken Bone Spring Eagle

Ford

Utica

Alaska

Oil Sands SAGD GOM

Lwr Tert

Cardium

US$

/bbl

(Bre

nt)

Oil Supply Cost

Commercial oil and condensate reserves –undrilled locations and future project only (mmbbl) Source: Wood Mackenzie

Stone focus areas

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

-5.6 -2.8 0.0 2.8 5.6 8.4 11.2 14.0 16.8 19.6

Stone

Stone

Source: Credit Suisse

Achieving Milestones

9

Lafayette

Houston New Orleans

Mica Deep ST

Goodfellow

Kuskulana

Rialto

Apple

Ruby Pyrope

Aries

Guadalupe

Carrick

Phinisi

Parmer

Stone Has a Large & Long Term Portfolio of Deepwater Projects and Leases

• 110 Deep Water leases

• 20 High potential prospects

• 17 Tie back exploration projects

• 10 Platform development wells

• 3 Tieback development prospects

Lamprey

Amethyst

Rampart

Legend 2015-17 Prospect

Enterprise

MP288

SS 113 Derbio

Drago Moore

Vernaccia Harrier

Pompano Cardona

Amberjack

Horned Lark

* Gross Estimated Ultimate Recoveries, P90 - P10 internal estimate

Prospect

Crown Anchor Vernaccia Apple Derbio Lamprey Kuskulana Rampart Rialto Goodfellow

WI

10% 32%

100% 100% 100%

33% 100%

50% 13%

EUR*

12 8-124

38-407 16-94

104-547 12-67 11-70

14-175 88-800

mmboe

Achieving Milestones

10

Land Loss in Southeast Louisiana Is a Continuing Process

Achieving Milestones

11

The Coast Was Formed By the Mississippi Spewing Sediments in Shallow Water

6 2 1 0 5 4 3 Thousand Years Before Present

Achieving Milestones

12

5,500 Years Before Present Most of the Coast Didn’t Exist

1

Stonehenge

Pine Islands

6 2 1 0 5 4 3 Thousand Years Before Present

Achieving Milestones

13

New Orleans Was an Offshore Barrier Island 5,500 Years Ago

Achieving Milestones

14

4,500 Years Before Present Land Started Forming at a Rapid Rate

6 2 1 0 5 4 3

2 3

Pyramids of Giza

Thousand Years Before Present

Achieving Milestones

15

3,500 Years Before Present Land Was Both Growing and Sinking

6

4

5

7

Linear B Writing

6 2 1 0 5 4 3 Thousand Years Before Present

Achieving Milestones

16

2,500 Years Before Present Land Growth Still Exceeded Land Loss

6

7

9

8

Greek Culture

6 2 1 0 5 4 3 Thousand Years Before Present

Achieving Milestones

17

1

1

Outer Islands

Trinity Shoals

+ 3306 - 2411

mi 2

mi 2

Bayou Jasmine Archeological Site Twinned bag ca. 800 BC

LSU TEXTILE MUSEUM

1,500 Years Before Present Land Still Growing, First People Arrived

Achieving Milestones

18

14

13

Desoto Finds the Mississippi

500 Years Before Present Land Still Growing, Europeans Arrive

6 2 1 0 5 4 3 Thousand Years Before Present

Achieving Milestones

19

Land Growth or Loss Lies in the Balance of Deposition and Sinking

~30,000 mi 2

Total estimated submergence prior to 1932

Achieving Milestones

20

16 15

83 Years Before Present, Maximum Land and First Aerial Photograph

1932

Achieving Milestones

21

1932

2010

1932

500 mm = 20” total relative sea

level rise since 1932

sea level rise

subsidence

Sea Level Is Rising, Land is Sinking, River Leveed

Achieving Milestones

22

Mississippi Sediment Supply Has Been Cut In Half Over Last 300 Years

Meade, R.H. and Moody, J.A., 2010,

Achieving Milestones

23

Locks and Dams of the Upper Mississippi and Ohio Rivers

Settlement Load Has Decreased Due to Locks and Dams

Achieving Milestones

24

Subsidence Due to Faulting Adds to Sinking On the Coast

Achieving Milestones

25

Oil Fields and Subsidence Are Both Set Up By Faults

A

A’

A A’

CHAVIN

LIRETTE

LAPEYROUSE

B

B’

B’ B

BAYOU RAMBIO

Achieving Milestones

26

Marsh Subsidence Is Accelerated Due to Geologic Faulting

Achieving Milestones

27

Surface Fault Traces Almost Exactly Match Major Land Loss

Achieving Milestones

28

• Wetlands Created by Deltaic Deposition

• Wetlands Loss Due to Natural Subsidence

• Wetlands Loss Due to Decreased Sediment Supply

• Wetlands Loss Due to Mississippi River Levees

• Wetlands Loss Accelerated by Geologic Faulting

• Coastal Restoration Sites Should be Wisely Chosen

Conclusions on Coastal Wetlands Land Loss