Central GOM shelf

69 salt domes identified

Purchase seismic data

17 salt domes

Central GOM Shelf selected as opportunity area

• 2,700-Block area of GOM shelf with highest liquid content
• Stacked Miocene/Pliocene-aged reservoir package – seismic amplitude-supported and multiple vintages of seismic data available
• Low cost operating environment (WD < 250’)

69 salt domes identified to have:

• Strong and diverse production histories with favourable geologic growth histories
• Salt dome anomalies (i.e. salt overhangs or poorly imaged portions of salt dome)

Purchase seismic data

• Utilized over 3,000 blocks of vintage, public domain seismic data to identify leads
• Purchased 100 blocks of Fairfield PSTM/PSDM seismic data to refine leads to prospects
• Purchased 50 blocks of Fairfield Hidden Treasure RTM data to sharpen prospect imaging

17 salt domes Identified for detailed evaluation

• Currently underway; pursuing opportunities on both leased and open acreage
• Leased acreage includes financially stressed operators, operators willing to consider joint ventures, as well as companies that are not applying newest technologies

PERFORMANCE OBJECTIVES

BASE AND ORGANIC GROWTH OPTIONS		INORGANIC GROWTH OPPORTUNITIES
Base business + organic options (3-year group targets)		Facilitated by underlying base business Key targeting criteria
Base business outcome (3 years forward)	Base outcome incl. exercise of organic options (3 years forward)	Year on year metrics
ROACE > 20%	ROACE > 17.5%	ROACE > 15%
IRR > 75% (Success case)	IRR > 75% (Success Case)	ROE > 15%
IRR > 25% (Full cycle)	IRR > 25% (Full Cycle)	DROI (15) > 25%
FCF > $40M	FCF > $40M	NAV growth > 10% CAGR
Gearing – <10%	Gearing – <10%	Gearing – 45-65%
Debt to equity – <10%	Debt to equity – <10%	Debt to equity ratio – <50%
Drives strong operating cash flow and balance sheet		Drives effective capital allocation discipline