Niobrara OPCOM Meeting - Oil IndiaJan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13. LL. ... production should be reduced by the addition of a Field

January 20, 2014

Niobrara OPCOM Meeting

Permitting

Operations and Production Review

Well Performance

Downspacing

Development Plan Update

Lease Operating Expense Overview

Other Discussion

2

Niobrara OPCOM Table of Contents

3

Niobrara OPCOM Northeast Colorado Activity Map

2013-2014 Focus

Optimize drilling & completion techniques

Clarify regulatory process

Rationalize acreage position

Current Operated

87 gross wells drilled

74 gross wells frac’d

13 gross wells in inventory

Planned 2014 Operated Activity

Drill 26 gross / 13 net wells

Frac 35 gross / 18 net wells

Consolidate acreage position

Test downspacing

4


Whiting to CRZO

CRZO to Whiting

AMI 3

2013-2014 Focus




Current Operated








Test downspacing

5


Whiting to CRZO

CRZO to Whiting

AMI 3

Non-op acreage

2013-2014 Focus




Current Operated








Test downspacing

Drilled with 2 rigs (X-17 & X-19) through YE 2013

Scheduled to temporarily drop 1 drilling rig as a result of increasingly difficult permitting environment for both drilling and completion; need to build backlog of drill-ready locations

Near term drill schedule

‒ Bringelson Ranch 20 (7-8 wells)

Completed the drilling and completion of the first 60ac downspaced pads

Non-Operated AFE activity continues to be high as other operators are active in the play

Non-op wells coming on-line

Unfraced well inventory continues to be low

Near term Frac schedule

‒ Speaker 27 pad (flowing back)

‒ O’Hare 1-5-10-57 (flowing back)

‒ Bailey 26 pad (flowing back)

‒ Castor 36 pad (3 wells)

6

Niobrara OPCOM Drilling and Frac Activity

7

Permitting

Niobrara OPCOM Permitting

8

Summary

Delays in spacing approvals

− Caused delays permitting new drills

− COGCC has approved “new” spacing, but BLM is protesting

Delays in permitting P&A’s

− Caused delays in frac schedule

− P&A’s taking longer than anticipated

Plans Forward

Possible field-wide spacing rules, but will take at years

East Pawnee spacing agreed by all operators

− Slow because Noble and Whiting do not agree on spacing

− Noble and Whiting have enough contiguous acreage to develop and test

Continue to space wells with…

− 640, 960, and 1,280 DSUs

− 16 wells per section

− 300’ internal wellbore setbacks

− 300’ section line setbacks with no – BLM offsets and 600’ setbacks when BLM offsets

Niobrara OPCOM Permitting Impact

9

Operations and Production Review

Niobrara OPCOM Operations and Production Review

TD as of Dec 19, 2013

• 2 Rig Running

Xtreme 17

Xtreme 19

• Average Depth = 10,642’

• Average Days = 13.5

• 2013 Average Days = 12.3

10

WEP 4-28

X 17 First Well

Niobrara OPCOM Drilling Performance

• Max Depth = 13,202’

• Minimum Days = 9

• Total Wells = 82

11

Niobrara OPCOM Rig Move - Hours

12

Halliburton Cost

2012 Avg = $83,345

2013 Avg = $88,705

Liberty Cost

2013 Avg = $78,705

Overall 2013 Average = $85,684

Liberty has pumped outperformed HES

HES has recently matched Liberty Pricing

Nabors awarded single Frac - unsuccessful

2

0

1

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Liberty Pumping

Halliburton

Niobrara OPCOM Frac Cost Per Stage

13

Staff in Place

‒ Superintendent: Lee Nash

‒ Foreman: Russ Wilcox

‒ Field Tech: Justin Bates (Added)

‒ Construction Foreman: Justin Daume (Added)

‒ 3 pumpers

Added a P&A rig to address offset wells that need to be P&A’s as a result of the DJBHO policy enacted by the COGCC

‒ Have P&A’d 6 out of 18 wells for the current schedule

Workovers are being prioritized based highest production impact for the JV

Continually seeking out improvements to the well design

‒ Testing new packerless downhole gas separator

‒ Duraseal coating treatment (ionic bonding)

‒ Electrification to fully utilize POC’s

Niobrara OPCOM Operational Performance Summary

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Niobrara Total Production Plot Daily production based on flowback and tank gauge data

Gas Oil # wells online

14 Note: Assumptions are estimates and subject to change. Daily production figures based on flowback and tank gauge data.

69 Wells

Niobrara OPCOM Production Review

New Production High = 7,320 bopd

15

Niobrara OPCOM Production Review (cont’d)

23.0%

25.2% 41.5%

10.3%

2013 NIOBRARA DEFERRED PRODUCTION

SURFACE MECHANICAL

DOWNHOLE

SCHEDULED

WEATHER

Scheduled downtime includes: 1. drilling rig 2. jet pump install 3. rod pump install 4. electrification 5. workover rig on pad

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Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13

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2013 NIOBRARA MONTHLY DEFERRED PRODUCTION COMPOSITION

SURFACE MECHANICAL DOWNHOLE SCHEDULED WEATHER


17

Scheduled = The drilling rig returning to pad sites with producing wells to add a down space wells in 2013 was a significant source of deferred production. This factor is expected to be much lower in 2014 due to drilling primarily taking place on new pads

‒ Artificial lift installation delays caused by equipment shortages have been alleviated by adding additional equipment and procuring orders in advance for 2014 activity

Surface/Mechanical = Jet pump/Rod pump engine or equipment related deferred production should be reduced by the addition of a Field Tech to help the foreman troubleshoot and keep equipment in top performing condition

Downhole = Scale, corrosion, and other downhole contributors to deferred production are being addressed at each stage of the well life

‒ Fine tuning bactericide treatments using kill studies

‒ Chemical treatments utilizing ideal downhole BHA

Weather = Blizzards, floods, and freezing all had and effect on production. Although this is a smaller piece of the deferred production we have strategies now in place to mitigate the deferred production from weather

‒ Utilize commercial heaters

‒ Use temporary additional man power during anticipated severe weather events


18

Well Performance

Niobrara OPCOM Well Performance

19

Continuing review of production data strengthens correlation between rock quality and performance

Underscores importance of high-grading concept; updated plan should be ready early in Q1 2014

Whiting trade consistent with this approach

Beginning to get data from Noble and Whiting pilots

Niobrara OPCOM Well Performance

20


Castor

Nelson Ranches

Schneider

Speaker

Bob White

21

Niobrara OPCOM Recent Well Performance

22

Downspacing

Niobrara OPCOM Downspacing

23

Current

Planned Wells

Wells Per Section 4 8 8 11 16

Between Well Spacing 1,327 565 668 468 312

Section Spacing, ac 160 80 80 58 40

Maximum spacing now 80 acres

Testing 60 acre and 40 acres spacing

Still working on regulatory offset distances to maximize reservoir development (660 feet down to 300 feet)

Niobrara OPCOM Downspacing Efficiency Improvement

8 Wells

11 Wells

24

Niobrara OPCOM Down pace Test Summary

80 Acre Pads − 4 Wells - Nelson x17-9-60 Pad − 3 Wells - Bringelson x-34-9-58 Pad w/ 1 existing well − 2 Wells - Bringelson x-33-9-58 w/ 1 existing well − 4 Wells - Shull x-25-9-60 60 Acre Pads − 3 Wells - Bobwhite x-36-8-62 − 3 Wells - Bailey x-26-8-60 − 3 Wells - State x-36-9-61

40 Acre Pads − 3 Wells - Castor x-36-9-59 − 3 Wells - Speaker x-27-11-8-61 − 3 Wells - State x-16-9-60

Upcoming 40 Acre “B/B/B” and “B/A/B” Test − “B” Existing Bringelson 2-20-11-9-58 − “B” Bringelson 12-20-11-9-58 − “B” Bringelson 11-20-11-9-58 − “B” Bringelson 10-20-11-9-58 − “B” Bringelson 9-20-11-9-58 − “A” Bringelson 8-20-11-9-58 − “B” Bringelson 7-20-11-9-58 − “A” Bringelson 6-20-11-9-58 − “B” Bringelson 5-20-11-9-58

Niobrara OPCOM Downspacing Test Summary

25

Niobrara OPCOM Downspacing Summary

Bringelson

Castor

Bailey

Shull

Nelson

State 36

Speaker

Bob White

State 16

Pergamos

26

Cemented

Nelson 2-17-9-60: Completed as a cemented plug and perf well

Directly offsetting 3 open hole completions

Production from the cemented lateral is 12.3% lower than the

composite production volume from the offset open hole completed

laterals.

Still early time data, 4.6 months of production

Niobrara OPCOM Cemented vs. Open Hole Completion – Nelson

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Nelson: Cemented vs. Open Hole Comparison

NELSON AVERAGE NELSON 2-17 CMT

27

JV participating in “A” bench and “C” bench tests with Whiting and Noble Wells have been drilled; expecting initial production results in Q1 2014 “A” and “C” benches are more variable, but prospective across JV acreage position

Current plan is to evaluate Noble/Whiting results and test “A” bench at Bringelson 20 pad Could significantly impact future drilling inventory

Niobrara OPCOM Vertical Expansion

28

Niobrara OPCOM Noble Rohn Unit

29

Development Plan Update

Niobrara OPCOM Development Plan Update

Currently moving due to 1-rig program in 1Q 2014

Selectively participating in 3rd party operated wells

‒ Challenging to predict non-op activity

‒ Increase in recent non-op activity compensates for rig release

Frac activity temporarily sporadic due to permitting challenges; expecting resolution in 1Q 2014

30 Note: Assumptions are estimates and subject to change

Niobrara OPCOM Development Plan Highlights

Rig and frac crew schedules

− Drilling with one operated rig (Xtreme 19)

− 26 gross wells (13 net wells)

− Completion activities to utilize one part-time crew

− 35 gross wells (18 net wells)

− Average 2014 JV working interest estimates: Operated = ~49%

Well information

− Average well cost: Drilling = ~$1.75 million and Completion = ~$2.25 million

− Assumes 20% average royalty burden

Type curve assumptions

− 224 Gross MBOE EUR = 178 MB Oil, 18 MB of NGLS and 169 MMcf gas


Niobrara OPCOM 2014 Development Plan Model Assumptions


Niobrara OPCOM Estimated 2014 Development Plan

Expected completion of frac backlog

2014E

Q1 Q2 Q3 Q4 2014E

Operating Summary (excludes non-op)

Gross Wells Drilled 8.1 6.1 6.1 6.2 26.4

Gross Wells Frac'd 16.0 3.0 6.0 10.0 35.0

Net Wells Drilled 3.9 3.0 3.0 3.1 13.0

Net Wells Frac'd 8.8 1.5 3.0 5.0 18.3

Total Gross Wells Online 90.0 93.0 99.0 109.0 109.0

Avg. JV Operated WI 47.9% 50.0% 50.0% 50.0% 49.3%

JV Capital Summary ($MM)

Net Drilling Capex $6.2 $5.3 $5.3 $5.4 $22.2

Net Frac Capex $19.0 $3.4 $6.8 $11.3 40.4

Total Net Capex $25.2 $8.7 $12.1 $16.6 $62.6

Production Summary

JV NRI Production:

Dry Gas (Mmcf) 297.6 259.2 228.7 217.7 1,003.2

NGLs (Mbbls) 32.1 28.0 24.7 23.5 108.2

Oil (Mbbls) 317.3 275.1 242.0 230.0 1,064.4

JV NRI Production (Mboe) 399.0 346.2 304.8 289.8 1,339.9

JV NRI Daily Production (Mboe/d) 4.4 3.8 3.3 3.2 3.7


Niobrara OPCOM Estimated Operations, Capex, and Production

34 Note: Assumptions are estimates and subject to change. If no spud date provided, assumes 30 day period spud to frac.

Niobrara OPCOM Non-Op Well Activity Overview

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Non-Op Spud Activity

Whiting Noble


Niobrara OPCOM Non-Op Well Election Overview

Well Name Operator Letter Date Election Choice

Razor 26K-2305A Whiting 12/5/13

Razor 26K-2306B Whiting 12/5/13






Razor 27I-2213A Whiting 9/20/13

Razor 27I-2214B Whiting 9/20/13

Razor 27I-2215A Whiting 9/20/13

Razor 27I-2216B Whiting 9/20/13

Razor 27I-3413A Whiting 9/16/13 Yes

Razor 27I-3414B Whiting 9/16/13 Yes

Razor 27I-3415A Whiting 9/16/13 Yes

Razor 27I-3416B Whiting 9/16/13 Yes

Razor 21C-2808B Whiting 9/16/13 No

Razor 21C-2807A Whiting 9/14/13 No

Razor 21C-2806B Whiting 9/13/13 No

Razor 21C-2805A Whiting 9/12/13 No

Razor 27L-3401B Whiting 9/3/13 Yes



Razor 21B-2812B Whiting 9/3/13 No

Razor 21B-2811A Whiting 9/3/13 No

Razor 21B-2810B Whiting 9/3/13 No

Razor 21B-2809A Whiting 9/3/13 No

Razor 21A-2816B Whiting 8/26/13

Razor 21A-2815A Whiting 8/26/13

Razor 21A-2814B Whiting 8/26/13

Razor 21A-2813A Whiting 8/26/13

Razor 27K-3405A Whiting 7/25/13 Yes

Razor 27K-3406B Whiting 7/25/13 Yes

Razor 27K-3407A Whiting 7/25/13 Yes

Razor 27K-3408B Whiting 7/25/13 Yes

Razor 27J-3409A Whiting 7/22/13 Yes

Razor 27J-3410B Whiting 7/22/13 Yes

Razor 27J-3411A Whiting 7/22/13 Yes

Razor 27J-3412B Whiting 7/22/13 Yes

Horsetail 07-0611H Whiting 6/1/13 Yes

Wildhorse 05-0514H Whiting 5/28/13 No

Wildhorse 06-0614H Whiting 5/7/13 No

Razor 21-2832H Whiting 4/10/13 Yes

Razor 33-2813H Whiting 4/8/13 Yes

Razor 22-2712H Whiting 1/7/13

Well Name Operator Letter Date Election Choice

Trisha LC29-77HNB Noble 1/6/14

Rico LC29-78-1HNC Noble 1/5/14


Rico LC29-74-1HNA Noble 1/3/14


Tina LC29-75-1HNA Noble 1/1/14



RICO LC29-761HNC Noble 12/23/13

Tina LC29-77-1HNC Noble 12/19/13

Timbro State LD 16-65HN Noble 9/1/13 Yes

Timbro State LD 16-66-1HN Noble 8/31/13 Yes





Rohn State LD09-69-1HN Noble 7/10/13 Yes

Rohn State LD09-68HN Noble 7/10/13 Yes







Castor LC35-62HN Noble 7/9/13 Yes









Hunt LF18-62HN Noble 7/5/13 Yes












Keota PC LB26-62HN Noble 5/23/13 Yes

Timbro LC10-72HN Noble 5/16/13 Yes

Timbro LD06-64HN Noble 5/16/13 Yes

Timbro LC12-78HN Noble 5/9/13 Yes

36

Lease Operating Expense Overview

Niobrara OPCOM Lease Operating Expenses Overview

37

Niobrara OPCOM LOE for 2013

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13

NIOBRARA LOE TREND 2013

TOTAL LOE $/BOE

Spring blizzards resulted in a spike in LOE from repairs due to snow melt.

Ave LOE for 2013 = $5.41/BOE

11.5% 0.3%

5.4%

2.1%

0.8% 2.0%

0.4%

1.6%

3.6%

0.0%

5.2%

5.5%

19.8%

5.2%

29.9%

3.9%

0.7% 2.2%

2013 Niobrara LOE Composition

Workover

Ad Valorem Taxes

Compression Rental, Oil, Coolant

Contract Pumping Services

Contract Supervision

Electrical Power, Fuel

Insurance

Metering Exps, Calibration, Integra

Miscellaneous

P/L Tarrifs, Compr., Dehyd., & Tran

Producing Overhead

Production Chem & Treating Expenses

Repairs & Maintenance

Salaries & Wages

Salt Water Disposal

Supplies

Transportation, Boats, Helicopters

net equipment rental

38

Niobrara OPCOM LOE for 2013 cont.…

SWD

Repairs & Maintenance

Workover

39

Niobrara OPCOM LOE for 2013 cont.

$0

$1,000

$2,000

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$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

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5.0%

10.0%

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25.0%

30.0%

35.0%

40.0%

45.0%

50.0%


2013 Monthly Salt Water Disposal LOE

SWD % of Total LOE AVG SWD cost per well

SWD Ave Monthly Cost = $4,561/well

$-

$1,000

$2,000

$3,000

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$6,000

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5.0%

10.0%

15.0%

20.0%

25.0%

30.0%


2013 Monthly Repairs & Maintenance LOE

Repair & Maintenance % Of Total LOE Repair & Maintenance Cost per well

40


Repair/Maintenance Ave Monthly Cost = $2,867/well

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%


2013 Monthly Workover LOE

WO % of Total LOE AVG WO cost per well

41


Workover Ave Monthly Cost = $2,318/well

42

Other Discussion

Niobrara OPCOM Other Discussion

43 Note: Assumptions are estimates and subject to change.

Niobrara OPCOM Non-Op Revenue / JIB Overview

Operator Non-Op JIBs

Received Non-Op JIBs

Paid

Non-Op

Revenue

Received

Carrizo

Operated

Revenues

Paid Comments

Noble Energy, Inc. Yes No Yes Yes

Over the past few months Carrizo has been working

with Noble to resolve various issues outstanding. The

teams have made significant progress resolving

division order and title issues and obtaining signed

JOAs from Noble. As a result, Carrizo is currently

releasing approximately $9 million of revenue to

Noble.

Carrizo not currently paying Noble JIBs as the land

departments of each company are currently working

through certain working interest issues.

Noble has paid Carrizo on three wells and other wells

remain in suspense due to working interest issues being resolved.

Whiting Oil & Gas Yes Yes Yes Yes

Carrizo has been in negative revenue suspense

since September 2012 as prior revenues were paid at

a higher working interest and companies are working

to get appropriate interests in order. Carrizo is still waiting on Whiting to correct certain deck issues.

Documents

Niobrara OPCOM Meeting - Oil IndiaJan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13. LL. ... production should be reduced by the addition of a Field