M&A TRANSACTION REVIEW UPSTREAM

IHS Herold Transaction Valuation Research

Brian P. Ferguson 17 OCTOBER 2011

3Q 2011 Upstream Transaction Review

QUARTERLY RESERVE VALUE AND DEAL COUNT $75
Reserve Value US$ Billions

Key Implications
100 80
Deal Count

$60 $45 $30 $15 $0

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11

Global reserve deal count declined to its lowest level since the 2H 2008 collapse as commodity prices and financial markets weakened, although transaction activity focused on world-class oil opportunities and U.S. shale liquids acreage and resources remained strong. BHPs all-cash $15 billion takeover of U.S. shale-focused Petrohawk Energy was the largest global corporate deal in more than two years, accounting for nearly half of 3Q 2011 worldwide deal value. North American reserve deal count fell sharply and conventional asset reserve pricing continued to deflate as natural gas prices remained soft and oil prices retreated. Chinas CNOOC agreed to acquire bankrupt oil sands producer OPTI Canada. Following the termination of BPs early 2011 swap deal with Rosneft, ExxonMobil and Rosneft announced a $3.2 billion joint venture focused on the Russian Arctic and other global asset opportunities. International activity was also highlighted by accelerated oilfocused M&A in Kurdistan, the North Sea, and Brazil.

60 40 20 0

XOM-XTO

Corporate

Asset

Average Res. Value

Deal Count

UPSTREAM SCOREBOARD 3Q 2011 Total Deal Value US$MM $20,668.2 $2,316.9 $2,516.3 $1,629.3 $2,901.1 $1,686.2 $123.7 $140.8 $31,982.4 Wtd. Avg. Total Wtd. Avg. Reserve Implied Proved Implied 2P Value Reserve Value Reserve Value Deal US$/boe US$MM US$/boe Count $14,709.1 $14.39 $10.27 32 $945.5 $5.50 $3.42 12 $2,139.8 $4.83 2 $859.7 $3.97 7 $2,893.5 $25.77 $17.31 7 $1,656.7 $25.73 $14.11 4 $123.7 4 $58.6 $4.31 $2.24 0 $23,386.8 $13.81 $4.78 68 Total Deal Value US$MM $8,265.5 $3,022.6 $486.8 $5,115.3 $1,191.1 $358.9 $615.7 $0.0 $19,055.9 2Q 2011 Wtd. Avg. Total Wtd. Avg. Reserve Implied Proved Implied 2P Value Reserve Value Reserve Value Deal US$/boe US$MM US$/boe Count $7,368.2 $9.17 $7.40 18 $2,847.6 $22.72 $15.19 26 $466.0 $24.06 1 $4,235.2 $22.79 $12.06 10 $1,160.3 $17.96 $13.96 9 $259.7 $17.73 $17.07 4 $605.4 $5.84 $3.18 7 $0.0 0 $16,942.3 $12.11 $12.04 75 Total Deal Value US$MM $7,916.6 $7,956.3 $650.0 $7,336.7 $4,891.3 $44,748.6 $4,160.5 $0.0 $77,659.9 3Q 2010 Total Wtd. Avg. Wtd. Avg. Reserve Implied Proved Implied 2P Value Reserve Value Reserve Value US$MM US$/ boe US$/ boe $6,022.4 $15.26 $14.42 $6,273.1 $12.23 $6.50 $440.9 $21.83 $18.52 $5,351.5 $3.61 $15.63 $4,201.6 $18.21 $11.28 $44,029.9 $12.38 $12.89 $4,160.5 $1.36 $0.0 $70,479.9 $13.34 $4.92

Region United States Canada Africa & Middle East Asia-Pacific Europe Latin America FSU Multi-Region Total

Deal Count 17 10 2 8 6 6 2 1 52

Figures represent all acquisition, merger and swap reserve/resource transactions > US$10MM, including transactions with no disclosure on reserves and/or production (weighted average implied proved and 2P figures include transactions with those reserves disclosed)

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QUARTERLY UPSTREAM RESERVE/RESOURCES DEAL COUNT 100

80
Global Deal Count

60

40

20

0 3Q 96

3Q 97

3Q 98

3Q 99

3Q 00

3Q 01

3Q 02

3Q 03

3Q 04

3Q 05

3Q 06

3Q 07

3Q 08

3Q 09

3Q 10

3Q 11

Deal Count

Avg. Deal Count (1996-2004)

Avg. Deal Count (2005-2Q08)

Avg. Deal Count (3Q08-3Q11)

NORTH AMERICAN UPSTREAM TRANSACTION VALUE BY ASSET SEGMENT $40

Total Transaction Value US$ Billion

80% XOM/XTO US$40.5B Merger Q4 2009 TTV = US$58.8B

$30

60%

$20

40%

$10

20%

$0 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Reserves Resources Acreage Acreage/Resources as % of Total

0%

The 'Reserves' category covers transactions with disclosed proved, 2P, or 3P reserves/resource (may also include significant undeveloped properties i.e. XOM-XTO): 'Resources' cover transaction with only contingent or total resources disclosure.

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Acreage/Resources as % of Total

TOTAL MERGERS & ACQUISITIONS WORLDWIDE ACTIVITY DURING 3Q 2011

Proved Weighted Average2 Deal Count 1 0 3 3 2 3 0 5 0 1 17 10 27 Total Deal Value US$MM1 $0.0 $3,484.5 $332.1 $250.5 $622.3 $0.0 $755.5 $0.0 $15,223.3 $20,668.2 $2,316.9 $22,985.0 O&G Proved Reserve Value US$MM1 $0.0 $3,484.5 $332.1 $228.5 $622.3 $0.0 $727.5 $0.0 $9,314.3 $14,709.1 $945.5 $15,654.6 Implied Proved Reserve Value US$/boe $3.48 $5.79 $13.40 $13.76 $9.45 $16.48 $14.39 $5.50 $12.95 Implied Value per Daily boe Produced $39,771 $46,024 $27,297 $66,097 $71,069 $67,644 $64,484 $70,684 $64,875 Proved Plus Probable (2P) Weighted Average3 Implied 2P Reserve Value US$/boe $10.27 $10.27 $3.42 $3.71 Implied Value per Daily boe Produced $29,932 $29,932 $154,873 $104,500 $41,978 $12,369 $53,903 $100,703 $15,499 $53,512

Reported Location Alaska Appalachia Gulf Coast - Onshore Gulf of Mexico Mid-Continent Southeast Rocky Mountains West Coast US-Other/Diversified Total US Canada Total North America

R/P 31.3 21.8 5.6 13.2 20.6 11.2 12.3 35.2 13.7

% Gas 95% 59% 56% 64% 75% 92% 88% 5% 74%

R/P 8.0 8.0 124.0 77.2 23.8 4.9 8.5 19.6 19.0 29.5

% Gas 62% 62% 2% 5% 0% 95% 41% 42% 57% 22%

Africa & Middle East 2 $2,516.3 $2,139.8 $4.83 Asia-Pacific 8 $1,629.3 $859.7 $3.97 Europe 6 $2,901.1 $2,893.5 $25.77 $63,460 6.7 30% $17.31 Latin America 6 $1,686.2 $1,656.7 $25.73 $89,753 9.6 35% $14.11 Former Soviet Union 2 $123.7 $123.7 Multi-Region 1 $140.8 $58.6 $4.31 $7,819 5.0 57% $2.24 Total 52 $31,982.4 $23,386.8 $13.81 $62,866 12.5 71% $4.78 1 Figures represent all acquisition, merger and swap reserve/resource transactions > US$10MM, including transactions with no disclosure on reserves and/or production 2 Figures represent all acquisition, merger and swap reserve/resource transactions > US$10MM, with disclosed proved reserves 3 Figures represent all acquisition, merger and swap reserve/resource transactions > US$10MM, with disclosed proved plus probable reserves

3Q 2011 WEIGHTED AVERAGE DEAL PRICING BY REGION 4 NORTH AMERICA 1P DEAL PRICING
Implied Deal Price US$/boe
$25 $20 $15 $10 $5 $0 Mid GoM Continent 3Q 2011 Wtd. Avg. Proved Implied per boe U.S. Dvsfd. US-Total Rockies Gulf Canada Appalachia Coast 2010 Wtd. Avg. Proved Implied per boe

OUTSIDE NORTH AMERICA 2P DEAL PRICING

Implied Deal Price US$/boe
$25 $20 $15 $10 $5 $0 Latin Africa & America Middle East 3Q 2011 Wtd. Avg. 2P Implied per boe Europe Total Asia-Pacific Fmr. Sov. Worldwide Union 2010 Wtd. Avg. 2P Implied per boe

Figures represent all acquisition, merger and swap reserve transactions >US$10MM, with disclosed proved or 2P reserves

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ASSET ACQUISITIONS WORLDWIDE ACTIVITY DURING 3Q 2011 Total Deal Value US$MM1 $0.0 $3,484.5 $332.1 $250.5 $622.3 $0.0 $755.5 $0.0 $0.0 $5,444.9 $224.3 $5,669.2 $418.8 $453.7 $2,727.4 $1,635.5 $123.7 $140.8 $11,028.4 Proved Reserves 2 Total MMboe Gas Bcf @6:1 0.0 0.0 379.6 66.7 62.1 17.5 57.3 17.0 173.4 45.2 0.0 0.0 234.8 52.1 0.0 0.0 0.0 0.0 907.1 198.5 44.0 7.8 951.1 206.3 0.0 0.0 0.0 0.0 128.6 72.6 8.0 1.9 0.0 0.0 46.6 13.6 1,087.7 280.9 Weighted Average Values 2 O&G Proved Implied Proved Reserve Implied Value per Reserve Value Value US$/boe Daily boe Produced $232.0 $3.48 $39,771 $101.1 $5.79 $46,024 $228.5 $13.40 $27,297 $622.3 $13.76 $66,097 $492.5 $9.45 $71,069 $1,676.4 $8.44 $51,196 $77.6 $9.94 $37,325 $1,754.0 $8.50 $50,367 $1,871.5 $25.77 $63,460 $54.0 $28.10 $78,571 $3,679.5 $13.10 $56,606

Reported Location Alaska Appalachia Gulf Coast - Onshore Gulf of Mexico Mid-Continent Southeast Rocky Mountains West Coast US-Other/Diversified Total US Canada Total North America Africa & Middle East Asia-Pacific Europe Latin America Former Soviet Union Multi-Region Total

Deal Count 1 0 3 3 2 3 0 5 0 0 16 8 24 1 6 5 5 2 1 43

Oil MMbbl 0.0 3.4 7.1 7.5 16.3 0.0 10.4 0.0 0.0 44.7 0.5 45.2 0.0 0.0 51.2 0.6 0.0 5.8 97.0

R/P 31.3 21.8 5.6 13.2 20.6 16.6 10.3 16.2 6.7 7.7 11.8

% Gas 95% 59% 56% 64% 75% 76% 94% 77% 30% 69% 65%

CORPORATE ACQUISITIONS WORLDWIDE ACTIVITY DURING 3Q 2011 Weighted Average Values 2 Proved Reserves 2 Total Deal Value Total MMboe O&G Proved Implied Proved Reserve Implied Value per US$MM1 Reported Location Deal Count 1 Oil MMbbl Gas Bcf @6:1 Reserve Value Value US$/boe Daily boe Produced Alaska 0 $0.0 0.0 0.0 0.0 Appalachia 0 $0.0 0.0 0.0 0.0 Gulf Coast - Onshore 0 $0.0 0.0 0.0 0.0 Gulf of Mexico 0 $0.0 0.0 0.0 0.0 Mid-Continent 0 $0.0 0.0 0.0 0.0 North Central 0 $0.0 0.0 0.0 0.0 Rocky Mountains 0 $0.0 0.0 0.0 0.0 West Coast 0 $0.0 0.0 0.0 0.0 US-Other/Diversified 1 $15,223.3 46.9 3,110.1 565.3 $9,314.3 $16.48 $67,644 Total US 1 $15,223.3 46.9 3,110.1 565.3 $9,314.3 $16.48 $67,644 Canada 2 $2,092.6 139.2 1.6 139.5 $733.1 $5.26 $78,073 Total North America 3 $17,315.8 186.1 3,111.7 704.8 $10,047.4 $14.26 $68,310 Africa & Middle East 1 $2,097.5 0.0 0.0 0.0 Asia-Pacific 2 $1,175.5 0.0 0.0 0.0 Europe 1 $173.7 0.0 0.0 0.0 Latin America 1 $50.7 1.9 0.0 1.9 $45.2 $23.37 $108,170 Former Soviet Union 0 $0.0 0.0 0.0 0.0 Multi-Region 1 $140.8 5.8 46.6 13.6 $58.6 $4.31 $7,819 Total 9 $20,954.0 193.9 3,158.3 720.3 $10,151.2 $14.09 $65,491 1 Figures represent all acquisition, merger and swap reserve/resource transactions > US$10MM, including transactions with no disclosure on reserves and/or production 2 Figures represent all acquisition, merger and swap reserve/resource transactions > US$10MM, with disclosed proved reserves

R/P 11.2 11.2 40.7 13.1 12.7 5.0 12.7

% Gas 92% 0% 74% 0% 57% 73%

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3Q 2011 TOP 10 WORLDWIDE DEALS

ALL DEALS Total Trans. Value US$MM $15,223.3 $3,100.0 $2,097.5 $2,075.5 $1,750.0 $1,050.0 $801.5 $699.4 $577.0 $476.1 Implied Value Implied Proved Reserve US$/ % Value US$/ Value Res. Total MMboe Gas Proved boe Daily boe US$MM $9,314.3 565.3 92% $16.48 $67,644 $3,100.0 NA NA $1,721.1 NA - $41,978 $720.3 139.1 0% $5.18 $77,501 $1,750.0 68.3 30% $25.61 $61,185 $1,050.0 NA NA $801.5 NA - $53,191 $377.0 NA NA $577.0 37.1 59% $15.55 $72,125 $111.8 NA NA NonNon-Proved Proved Implied Reserves Value % MMboe1 Gas US$/ boe 5,833.3d 92% $2.52 1,166.7d 95% $2.66 356.0a 0% $4.83 543.4a 0% $3.19 NA 783.0d 0% $1.34 43.0a 51% $18.64 122.8a 100% $3.07 NA 37.4a 100% $2.99

Ann'd Date 15-Jul-11 18-Aug-11 7-Sep-11 20-Jul-11 21-Sep-11 20-Jul-11 28-Sep-11 18-Jul-11 12-Sep-11 26-Sep-11

Buyers BHP Billiton Group Noble Energy Vallares PLC CNOOC Apache Corp. TNK-BP Eni SpA Santos QR Energy LP PetroChina; Shell

Sellers Petrohawk Energy CONSOL Energy Genel Enerji AS OPTI Canada Exxon Mobil Petra Energia Ltda GDF Suez SA East. Star Gas; TRUenergy Quantum Res. Management Bow Energy Limited

Deal Level Corporate Asset Corporate Corporate Asset Asset Asset Corporate Asset Corporate

Region U.S.-Diversified U.S.-Appalachia Africa-Middle East Canada Europe Latin America Europe Asia-Pacific U.S.-Mid-Continent Asia-Pacific

R/P 11.2 23.8 41.0 6.5 7.8 12.7 -

ASSET DEALS 18-Aug-11 21-Sep-11 20-Jul-11 28-Sep-11 12-Sep-11 27-Jul-11 18-Jul-11 27-Jul-11 28-Sep-11 18-Aug-11 Noble Energy Apache Corp. TNK-BP Eni SpA QR Energy LP Afren plc TRUenergy BreitBurn E'gy Partners LP Kodiak Oil & Gas Corp Noble Energy CONSOL Energy Exxon Mobil Petra Energia Ltda GDF Suez SA Quantum Res. Management LLC Komet Group SA Santos Cabot Oil & Gas Undisclosed private company CONSOL Energy U.S.-Appalachia Europe Latin America Europe U.S.-Mid-Continent Africa-Middle East Asia-Pacific U.S.-Rocky Mountains U.S.-Rocky Mountains U.S.-Appalachia $3,100.0 $1,750.0 $1,050.0 $801.5 $577.0 $418.8 $305.2 $285.0 $235.0 $232.0 $3,100.0 $1,750.0 $1,050.0 $801.5 $577.0 $418.8 $224.3 $285.0 $235.0 $232.0 NA 68.3 NA NA 37.1 NA NA 38.3 NA 66.7 30% 59% 95% 95% $25.61 $15.55 $7.43 $3.48 NA $61,185 6.5 NA $53,191 7.8 $72,125 12.7 NA NA $57,000 21.0 $78,333 NA $39,771 31.3 1,166.7d 95% NA 783.0d 0% 43.0a 51% NA 882.0c 0% 31.1a 100% NA NA NA $2.66 $1.34 $18.64 $0.47 $7.22 -

CORPORATE DEALS 15-Jul-11 BHP Billiton Group 7-Sep-11 Vallares PLC 20-Jul-11 CNOOC 18-Jul-11 Santos 26-Sep-11 PetroChina; Shell 19-Sep-11 IGas Energy 5-Sep-11 DNO International 12-Jul-11 Touchstone Exploration 20-Sep-11 Northern Spirit Res. Petrohawk Energy Genel Enerji AS OPTI Canada East. Star Gas; TRUenergy Bow Energy Petronas; Star Energy Group Ras Al Khaimah Petroleum Primera Group/CL Financial Cascade Resources Inc U.S.-Diversified Africa-Middle East Canada Asia-Pacific Asia-Pacific Europe Global Diversfieid Latin America Canada $15,223.3 $2,097.5 $2,075.5 $699.4 $476.1 $173.7 $140.8 $50.7 $17.1 $9,314.3 $1,721.1 $720.3 $377.0 $111.8 $169.2 $58.6 $45.2 $12.8 565.3 92% NA 139.1 NA NA NA 1.9 0% 0% $16.48 $5.18 $2.24 $67,644 11.2 $41,978 23.8 $77,501 41.0 NA NA $7,819 5.0 5,833.3d 356.0a 543.4a 92% 0% 0% $2.52 $4.83 $3.19 $3.07 $2.99 $15.24 $2.24 $15.38 $9.41

122.8a 100% 37.4a 100% 11.1a 52.0a 3.2a 1.8a 0% 57% 0% 57%

$60,422 10.9

13.6 57% 0.4 67%

$23.37 $108,170 12.7 $32.48 $133,464 11.3

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NORTH AMERICA VS. OUTSIDE NORTH AMERICA VS. GLOBAL DIVERSIFIED $80 80

$60

60

US$ Billions

$40

40

$20

20

$0 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Multi Region Proved Reserve Value Outside North America Deal Count Outside North America Proved Reserve Value North America Deal Count Q1 11 Q2 11 Q3 11

North America Proved Reserve Value Multi Region Count

WORLDWIDE UPSTREAM TRANSACTION SUMMARY $80 80

$60

60

US$ Billions

$40

40

$20

20

$0 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

Corporate Proved Reserve Value

Asset Proved Reserve Value

Asset Deal Count

Corporate Deal Count

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Deal Count

Deal Count

RESERVE VALUE & DEAL COUNT1 UNITED STATES $40 $32

US$ Billion

CANADA 50
Deal Count

$20 $16
US$ Billion

50 40 30 20 10 0
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Deal Count Q3 11 US$/ daily boe

40 30 20 10 0
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

$24 $16 $8 $0

$12 $8 $4 $0

Corporate

Asset
2

Deal Count

Corporate

Asset

Deal Count

WEIGHTED AVERAGE 1P DEAL PRICING & PER DAILY BOE PRODUCED UNITED STATES $20 $16
US$/boe

CANADA $125,000
US$/daily boe

$50 $40
US$/boe

$200,000 $160,000 $120,000 $80,000 $40,000 $0

Q108 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q4 10 Q3 11 Q1 11

$100,000 $75,000 $50,000 $25,000 $0

Q108 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

$12 $8 $4 $0

$30 $20 $10 $0

Implied Deal Price

US$/daily boe
3

Implied Deal Price

US$/daily boe

NORTH AMERICAN ASSET DEAL PRICING VS BLENDED COMMODITIES PRICES INDEXED NORTH AMERICAN ASSET DEAL PRICING VS. COMMODITY PRICES 150% 125% 100% 75% 50% 25%
Q108 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

PRICE SPREAD: BLENDED AVG. COMMODITIES PRICES VS. NORTH AMERICAN ASSET 1P DEAL PRICING $120 $100 $80 $60 $40
Q1 11 Q2 11 Q3 11

$20 $0
Q108 Q2 08 Q3 08 Q4 08

Blended Avg. Commodites Prices - US$/Boe Wtd. Avg. Implied US$/Boe - North American Asset Deals

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Blended Avg. Commodities Prices WTI Avg. Prices

1 2

Asset 1P Wtd. Avg. Implied Value US$/boe Henry Hub Avg. Prices

Figures represent all acquisition, merger and swap reserve/resource transactions > US$10MM, including transactions with no disclosure on reserves and/or production Figures represent all acquisition, merger and swap reserve/resource transactions > US$10MM, with disclosed proved reserves 3 Blended average commodities represent 60/40 weighting of average quarterly Henry Hub and WTI Cushing spot prices

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Q2 11

RESERVE VALUE & DEAL COUNT1

AFRICA & MIDDLE EAST $8 8 7 6 5 4 3 2 1 0 ASIA-PACIFIC $8 20 16 12 $4 8 $2 $0 4 0

US$ Billion

Deal Count

$6 $4 $2 $0

$6

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Corporate EUROPE $5 $4

Asset

Deal Count LATIN AMERICA 20 16 $50 $40

Corporate

Asset

Deal Count

Q3 11

12 10 8 6 4 2 0

Deal Count

US$ Billion

US$ Billion

$3 $2 $1 $0

12 8 4 0

$30 $20 $10 $0

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Corporate FORMER SOVIET UNION $12 $10

Asset

Deal Count MULTI-REGION 12 10 $6

Q3 11

Corporate

Asset

Deal Count

Q3 11

3 2 1 0

Deal Count

US$ Billion

US$ Billion

$8 $6 $4 $2 $0

8 6 4 2 0

$4 $2 $0

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Corporate
1 Figures

Asset

Deal Count

Corporate

Asset

Deal Count

represent all acquisitio n, merger and swap reserve/reso urce transactio ns > US$ 1 M , including transactio ns with no disclo sure o n reserves and/o r pro ductio n 0M

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Q3 11

Deal Count

Deal Count

Deal Count

US$ Billion

3Q 2011 TRANSACTIONS
UNITED STATES Total Proved Total Trans. Reserve Value US$MM Value US$MM
$ 3,1 00.0 $ 232.0 $1 52.5 $ 231 .0 $ 53.5 $ 47.6 $1 82.5 $ 68.0 $ 577.0 $ 30.5 $1 4.8 $ 285.0 $ 235.0 $1 50.0 $ 57.0 $ 28.5 $1 5,223.3 $ 3,1 00.0 $ 232.0 $1 52.5 $ 231 .0 $ 53.5 $ 47.6 $ 1 .4 61 $ 67.1 $ 577.0 $ 30.5 $1 4.8 $ 285.0 $ 235.0 $1 22.0 $ 57.0 $ 28.5 $ 9,31 4.3

Buyers
No ble Energy No ble Energy Lime Ro ck P artners; P DC Energy NFR Energy LLC Undisclo sed private co mpany Enco re Energy P artners LP Dynamic Offsho re Reso urces LLC Dynamic Offsho re Reso urces LLC QR Energy LP Unit Co rp. Enco re Energy P artners LP B reitB urn Energy P artners LP Ko diak Oil & Gas B ill B arrett Co rp. M agnum Hunter Res.; Willisto n Hunter Enco re Energy P artners LP B HP B illito n Gro up

Sellers
CONSOL Energy CONSOL Energy Seneca Upshur/Nat. Grid SandRidge Energy Inc Swift Energy Co mpany Undisclo sed Exxo n M o bil M o reno E'gy; SP N Reso urces LLC Quantum Reso urces M anagement LLC P enn Virginia Co rpo ratio n Undisclo sed private co mpany Cabo t Oil & Gas Co rpo ratio n Undisclo sed private co mpany Texas A merican Reso urces Eagle Operating Inc Undisclo sed P etro hawk Energy

Proved Reserves % Implied Value MMboe Gas US$/ Proved boe

NA 66.7 NA NA 1 5.4 2.1 1 3.5 3.5 37.1 7.1 1 .0 38.3 NA 7.0 2.6 4.2 565.3 95% 65% 1 7% 61 % 35% 59% 97% 1 3% 95% 0% 0% 65% 92% $ 3.48 $ 3.48 $ 22.67 $ 1 .95 1 $1 8.91 $1 5.55 $ 4.31 $1 4.37 $ 7.43 $1 7.43 $ 21 .92 $ 6.83 $1 6.48

Non-Proved Reserves MMboe1

1 66.7d ,1

% Gas
95%

Non-Proved Implied Value US$/ boe

$ 2.66

Implied Value US$/ Daily boe

$ 39,771

R/P Region

Deal Level

A ppalachia A sset 31 A ppalachia A sset .3 A ppalachia A sset Gulf Co ast A sset 23.8 Gulf Co ast A sset 1 3.4 Gulf Co ast A sset 5.3 Go M 7.1 Go M 1 2.7 M id-Co n. 1 4.9 M id-Co n. 24.5 M id-Co n. 21 Ro ckies .0 Ro ckies 29.5 Ro ckies 1 7.8 Ro ckies 1 3.0 Ro ckies A sset A sset A sset A sset A sset A sset A sset A sset A sset A sset

255.0d NA NA NA 20.6a 3.8a NA NA NA NA NA NA NA NA 5,833.3d

1 00% 67% 35% 92%

$ 0.60 $ 8.88 $1 7.67 $ 2.52

$ 55,440 $ 30,283 $ 1 0,698 1 $ 23,050 $ 49,01 4 $ 72,1 25 $ 23,462 $1 28,696 $ 57,000 $ 78,333 $1 87,692 $1 42,557 $ 32,386 $ 67,644

1 .2 Diversified Co rp. 1

3Q 2011 TRANSACTIONS
CANADA Total Proved Total Trans. Reserve Value Value US$MM US$MM $2,075.5 $42.9 $42.9 $29.8 $26.2 $26.2 $25.0 $17.5 $17.1 $13.8 $720.3 $38.8 $38.8 $29.8 $25.0 $25.0 $25.0 $17.5 $12.8 $12.4 Proved Reserves MMboe 139.1 3.9 3.9 NA NA NA NA NA 0.4 NA % Implied Value Gas US$/ Proved boe 0% 94% 94% 67% $5.18 $9.94 $9.94 $32.48 Non-Proved Reserves MMboe1 543.4a 5.4a 5.4a 2.9a 76.5c 76.5c 0.5a 0.8a 1.8a 0.3a % Gas 0% 94% 94% 51% 0% 0% 0% 70% 57% 0% Non-Proved Implied Value US$/ boe $3.19 $8.01 $8.01 $10.23 $0.33 $0.33 $45.91 $21.93 $9.41 $36.97 Implied Value US$/ Daily boe Deal Level Asset Asset Asset

Buyers CNOOC Manitok Energy Petrus Resources Undisclosed Undisclosed Undisclosed Undisclosed Legend Oil and Gas Northern Spirit Res. Questerre Energy

Sellers OPTI Canada Undisclosed Undisclosed Compass Petroleum Connacher Oil and Gas Alberta Oilsands Inc Zargon Oil & Gas Ltd International Sovereign E'gy Cascade Resources Inc Undisclosed

R/P Region

$77,501 41.0 AB-Oil SanCorp. $37,325 10.3 Alberta $37,325 10.3 Alberta $76,262 20.4 Alberta NA NA $120,423 $73,113

- AB-Oil SanAsset - AB-Oil SanAsset 7.2 Sask. 9.1 Alberta Asset Asset Corp. Asset

$133,464 11.3 Alberta $154,908 11.5 Sask.

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M&A Transaction Review Upstream

3Q 2011 TRANSACTIONS AFRICA & MIDDLE EAST Total Proved Total Trans. Reserve Value US$MM Value US$MM $2,097.5 $1,721.1 $418.8 $418.8 Proved Reserves Implied Value MMboe % Gas US$/ Proved boe NA NA Non-Proved Reserves MMboe % Gas 356.0a 0% 882.0c 0% Non-Proved Implied Implied Value Value US$/ US$/ boe Daily boe $4.83 $41,978 $0.47 NA Deal Level Corp. Asset

Buyers Vallares Afren ASIA PACIFIC Santos PetroChina; Shell TRUenergy Risco Energy Pte Risco Energy Pte Santos Ltd Otto Energy Mitsui & Company EUROPE Apache Corporation ENI IGas Energy Hess Corp. Bridge Energy DONG Energy LATIN AMERICA TNK-BP Ltd QGEP Participacoes Barra Energia QGEP Participacoes LG International Corp Touchstone Exploration FORMER SOVIET UNION Gazprom Neft Spectral Capital Corporation

Sellers Genel Enerji Komet Group

R/P Region 23.8 Iraq - Iraq

E. Star Gas; TRUenergy Bow Energy Santos Ltd Salamander Energy Vitol Group Magellan Petroleum Vitol Group WestSide Corporation

$699.4 $476.1 $305.2 $56.3 $35.3 $25.8 $18.7 $12.4

$377.0 $111.8 $224.3 $56.3 $34.1 $25.8 $18.1 $12.4

NA NA NA NA NA NA NA NA

122.8a 37.4a 31.1a 13.0a 1.8a NA 1.0a NA

100% 100% 100% 45% 0% 0% -

$3.07 $2.99 $7.22 $4.33 $18.46 $18.43 -

NA NA NA $9,383 $18,843 NA $18,815 NA

5.9 2.8 2.8 -

Australia Australia Australia Indonesia Philippines Australia Philippines Australia

Corp. Corp. Asset Asset Asset Asset Asset Asset

Exxon Mobil GDF Suez SA Petronas; Star Energy Group Norwegian Energy Co. Nexen Norwegian Energy Co.

$1,750.0 $801.5 $173.7 $124.6 $38.3 $13.0

$1,750.0 $801.5 $169.2 $121.5 $38.3 $13.0

68.3 NA NA 4.3 NA NA

30% 16% -

$25.61 $28.31 -

NA 43.0a 11.1a 5.3a 1.0a 5.8a

51% 0% 16% 0% 0%

$18.64 $15.24 $23.38 $38.30 $2.24

$61,185 $53,191 $60,422 $136,683 $51,067 $7,370

6.5 7.8 10.9 13.2 3.7 9.0

U.K. U.K. U.K. Denmark U.K. Denmark

Asset Asset Corp. Asset Asset Asset

Petra Energia Royal Dutch Shell Royal Dutch Shell Royal Dutch Shell GeoPark Holdings Primera Group/CL Financial

$1,050.0 $175.0 $175.0 $157.5 $78.0 $50.7

$1,050.0 $175.0 $175.0 $157.5 $54.0 $45.2

NA NA NA NA 1.9 1.9

69% 0%

$28.10 $23.37

783.0d NA NA NA 4.7a 3.2a

0% 71% 0%

$1.34 $13.24 $15.38

NA $78,571 $108,170

7.7 12.7

Brazil Brazil Brazil Brazil Chile Trinidad

Asset Asset Asset Asset Asset Corp.

Gazprom Undisclosed

$113.7 $10.0

$113.7 $10.0

NA NA

636.6b NA

30% -

$0.18 -

$7,764 NA

119.1 Russia - Russia

Asset Asset

MULTI REGION DNO International ASA Ras Al Khaimah Petroleum $140.8 $58.6 13.6 57% $4.31 52.0a 57% Note: Various non-proved reserves/resources categories are as follows: a: 2P reserves; b: 3P reserves; c: contingent reserves; d: total recoverable resources. OTHER SIGNIFICANT TRANSACTIONS Buyers Sellers D.H Miller; Oaktree Cap. Mgmt. EXCO Resources Exxon Mobil China Investment Corp. Timothy M Marquez Antero Resources Aker ASA Rosneft GDF Suez SA Shareholders; Venoco CONSOL Energy DNO Int'l

$2.24

$7,819

5.0 Multi/Oman Corp.

Total Trans. Value US$MM $4,212.7 $3,200.0 $3,150.0 $736.8 $193.0 $158.2

Description Terminated going private bid Russian Arctic JV 30% stake in GDF's E&P division Unsolicited going private transaction; reserves primarily onshore & offshore Southern California Marcellus Shale overriding royalty interest Various Norway offshore fields and discoveries; Aldous Major South

Region U.S.-Gulf Coast F,S,U, Multi Region U.S.-West Coast U.S.-Appalachia Europe

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M&A Transaction Review Upstream

3Q 2011 SIGNIFICANT ACREAGE-FOCUSED TRANSACTIONS Total Trans. Value US$MM $1,750.0 $750.0 $593.0 $500.0 $272.5 $169.5 $167.6 $150.0 $110.0 $110.6 $101.4 $95.0 $91.5 $50.0 $40.0 $24.1 $15.0 $14.5 Acreage Value Implied Value Deal US$MM Net Acres US$/ Acre Level $1,750.0 1,250,000 $1,400 Asset $750.0 85,000 $8,824 Corp. $593.0 98,828 $6,000 Asset $500.0 113,520 $4,405 Asset $272.5 92,300 $2,952 Corp. $169.5 29,999 $5,650 Asset $122.6 49,920 $2,456 Asset $150.0 460,000 $326 Asset $82.0 50,000 $1,640 Asset $110.6 8,895,000 $12 Asset $101.4 377,330 $269 Asset $71.7 4,040 $17,739 Asset $91.5 692,906 $132 Corp. $50.0 30,000 $1,667 Asset $40.0 11,000 $3,636 Asset $20.4 28,250 $720 Asset $15.0 115,932 $129 Asset $14.5 NA - Asset

Buyers Chesapeake Energy Hess Corp. Hess Corp. Atinum Partners Toreador Resources Afren Crescent Point Energy Southwestern Energy Endeavour International ConocoPhillips BG Group GAIL (India) Limited San Leon Energy PDC Energy Rex Energy PetroQuest Energy Royal Dutch Shell Undisclosed

Sellers Anschutz; EnerVest; Various Marquette Exploration LLC CONSOL Energy SandRidge Energy ZaZa Energy Government of Kurdistan Undisclosed (Various) Undisclosed SM Energy; SJI; Various New Standard Energy Drillsearch Energy Carrizo Oil & Gas Realm Energy International Undisclosed (Various) Undisclosed Undisclosed private company PetroLatina Energy PetroQuest Energy

Region U.S.-Appalachia U.S.-Appalachia U.S.-Appalachia U.S.-Mid-Continent U.S.-Gulf Coast Africa-Middle East U.S.-Rockies U.S.-Gulf Coast U.S.-Appalachia Asia-Pacific Asia-Pacific U.S.-Gulf Coast Europe U.S.-Appalachia U.S.-Appalachia U.S.-Mid-Continent Latin America U.S.-Mid-Continent

Key Assets Utica Shale Acreage Utica Shale Acreage Utica Shale Acreage Mississippian JV Eagleford Shale and Eaglebine acreage 20% stake in Ain Sifni PSC North Dakota Bakken Shale assets Lower Smackover Brown Dense acreage PA Marcellus Shale acreage Australia Goldwyer shale acreage Australia Nappamerri Trough shale acreage Eagle Ford Shale acres Poland, Germany, Spain shale acreage Utica Shale Acreage Utica Shale Acreage Mississippian Lime acreage 85% in Colombia VMM-28 block 50% interest in Oklahoma acreage

ACREAGE-FOCUSED TRANSACTION VALUE & DEAL COUNT

Total Transaction Value US$MM

$15,000 $12,000 $9,000 $6,000 $3,000 $0 1Q 06 2Q 06 3Q 06

Outside North America Acreage Value

North America Acreage Value

Deal Count

20 16 12 8 4 0

Deal Count

4Q 06

1Q 07

2Q 07

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

1Q 09

2Q 09

3Q 09

4Q 09

1Q 10

2Q 10

3Q 10

4Q 10

1Q 11

2Q 11

3Q 11

Figures represent all acquisition, merger and swap acreage transactions > US$10MM, including transactions with no disclosure on acreage figures
www.ihs.com

Brian P. Ferguson brian.ferguson@ihs.com

The research analyst who prepared this report certifies that the views expressed herein accurately reflect the research analysts professional opinions, are consistent with established Herold methodologies and standards and that no part of his or her compensation was, is or will be directly or indirectly related to specific views contained in this report. Copyright 2011 IHS Herold Inc. All rights reserved. SEAM Alert Upstream is published by IHS Herold Inc., 200 Connecticut Avenue, Suite 3A, Norwalk, CT 06854, USA for the exclusive use of IHS Herold clients. Reproduction of this report, even for internal distribution, is strictly prohibited. The information contained herein has been obtained from sources believed to be reliable, but IHS Herold does not guarantee their accuracy or completeness. No information or opinions contained herein constitutes a representation or solicitation for the purchase of any securities of the companies mentioned herein. From time to time, IHS Herold and/or its officers and employees may have long or short positions in the securities mentioned herein or during the past year may have transacted in securities of the companies mentioned.

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M&A Transaction Review Upstream