Equity Research

June 16, 2010 Americas

Energy & Power
Oil Services & Drilling Oil Services & Drilling

James D. Crandell James C. West

Industry Overview
1.212.526.4865 1.212.526.8796
The Original E&P Spending Survey jim.crandell@barcap.com james.west1@barcap.com
BCI, New York BCI, New York
Sector View:
New: 2-Neutral
Old: 2-Neutral

Investment Conclusion
‰ "The Original E&P Spending Survey" is a semiannual product, initiated by this author at another firm in 1982. The survey attempts to
include every meaningful spender on exploration and production throughout the world. It is by far the largest, most comprehensive survey
of its kind, in our opinion, and encompasses integrated oil companies, independents, and national oil companies worldwide. We have
gone to great lengths to obtain accurate budget information from these companies.

Summary
‰ Worldwide exploration and production expenditures are forecast to rise by 12% globally in 2010 to $447 billion from $400 billion in 2009
as estimated by the 427 companies in the Barclays Capital Original E&P Spending Survey.
‰ E&P expenditures are estimated to rise by 18% in the U.S. to $85 billion, by 9% internationally to $335 billion and by 28% in Canada to
$27 billion. This compares with our December survey, which indicated increases of 12% in the U.S., 10.5% internationally, and 23% in
Canada.
‰ The average commodity prices on which companies are basing their 2010 budgets have increased to $73.56 per barrel for oil (up 5%
from the level indicated in our December survey) and declined to $4.65 for natural gas (down 11% from the level indicated in December).
‰ Growth in E&P expenditures is anticipated to continue in 2011 by well over half of companies surveyed, with 37% indicating spending
would be up 20% or more, 16% saying they expect to raise spending by 10-20% and 7% expecting more modest increases of 1-10%.

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 18 AND IMPORTANT DISCLOSURES BEGINNING

ON PAGE 19
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Executive Summary:
Global E&P Spending Growth Revised Up Modestly
The mid-year update to the Barclays Capital Original Exploration and Production Capital Expenditure Survey indicates a modest
upwards revision to forecast global E&P spending growth compared to the results of our December 2009 survey. Global E&P
expenditures in 2010 are slated to rise by 12% to $447 billion by the 427 companies we surveyed (the largest number of participants
we have ever gathered). By comparison, our December 2009 survey indicated an 11% increase in global E&P spending.

Increased U.S. E&P Spending Growth

U.S. exploration and production expenditures are now slated to rise by 18% for the 220 companies we surveyed as compared with
the 12% increase forecast in our December 2009 survey. North America-based independent firms have been the most aggressive in
increasing spending plans. Many smaller firms (spending under $100 million) anticipate significant year-on-year increases in
spending in 2010. The reasons for the increased spending growth in the U.S. are higher oil price expectations, success in drilling in
shale, drilling to hold leases and hedging. This more than offsets lower natural gas price expectations. Overall, we have estimated
a spending reduction as a result of the deepwater drilling moratorium put in place following the Macondo oil spill of 2% (down to an
18% increase from 20%), or about $1.6 billion.

International E&P Spending Growth Revised Down Modestly

Internationally, we are expecting spending of the 151 oil and gas companies we surveyed to be up 9% year-on-year. This
represents a modest downward revision in international growth expectations compared to the results of our December 2009 survey
(which indicated growth of 10.5%). Regions in which companies have trimmed capex growth expectations include Russia, Latin
America and Asia/Australia.

Canadian Growth Forecasts Revised Upwards

Canadian E&P capital expenditures are estimated to rise by 28% in 2010 to $27 billion for the 131 companies we surveyed. This
compares to the 23% increase that had been indicated by our year-end survey. However, excluding the impact of the strengthening
Canadian dollar, Canadian capital spending growth is generally in-line with the U.S.

Oil Price Assumptions Revised Up Modestly; Nat Gas Price Forecasts Reduced Versus December Survey
The average natural gas price assumption used for 2010 budgets is now $4.65 per mcf (Henry Hub), down from $5.21 in our year-
end 2009 survey. In contrast, the average oil price assumption used for 2010 budgets is now $73.56 per barrel (West Texas
Intermediate) compared to $70.16 in our December 2009 survey.

Majority of Respondents Expect Continued Spending Recovery in ‘11

Capital expenditures are forecast to increase in 2011 by a majority of oil and gas companies surveyed. Of those companies
expecting spending increases in 2011, over 60% anticipate a gain of at least 20%.

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Summary of Results
Global E&P Capex Growth Forecasts Revised Up Modestly Versus Year-end Survey

The midyear update to the Barclays Capital Original E&P Spending Survey indicates that expenditures for the 427 companies
surveyed are now budgeted to rise by 12% in 2010 (to $447 billion), compared to the 11% increase forecast in our December 2009
survey. North American capital expenditures are now expected to rise at a faster rate than previously forecast; however, international
E&P spending is now indicated to rise by 9% year-on-year (versus a 10.5% increase in our December survey).

Figure 1: Summary of Oil and Gas Exploration and Production Expenditures

($ millions)
June 2010 Survey December 2009 Survey
Year-to-Year Companies Year-to-Year Companies
2010 2009 % Change Surveyed % Change Surveyed
U.S. Spending 85,328 72,314 18.0% 220 11.7% 197
Canadian Spending 26,851 20,895 28.5% 131 23.4% 126
International Spending 335,134 306,543 9.3% 151 10.5% 134
Worldwide Spending $447,314 $399,752 11.9% 427 11.3% 387

Source: Company data and Barclays Capital estimates

U.S. Capex Growth Assumptions Revised Upwards

U.S. exploration and production expenditures are now estimated to rise by 18% for the 220 companies we surveyed as compared
with the 12% increase indicated in our December 2009 survey.

Figure 2: U.S. Spending Breakout by Company Budget Size

Year-to-Year Companies
U.S. Spending Breakout 2010 2009 % Change Surveyed
Spending Less Than $50 Million 2,470 1,326 86.3% 134
Spending Between $50 and $100 Million 764 406 87.9% 6
Spending Under $100 Million 3,234 1,733 86.7% 140

Spending Between $100 Million and $1 Billion 25,137 19,665 27.8% 57

Spending More Than $1 Billion 56,958 50,916 11.9% 23
Total U.S. Spending $85,328 $72,314 18.0% 220

Source: Company data and Barclays Capital estimates

Companies of all sizes have increased their 2010 U.S. spending budgets versus earlier estimates, although the greatest increases
are expected from companies that spend less than $100 million (up 87% versus an increase of 48% forecast in December). Those
companies that spend more than $1 billion are also now indicating much stronger increases in 2010 U.S. E&P expenditures – up
12% versus the 6% improvement estimated by our December survey. Those companies with the largest expected increases within
this group include EOG Resources (+64%), Apache (+64%), EnCana (+37%), Hess (+34%), Newfield Exploration (+25%), and
Chesapeake Energy (+23%).

Companies that spend between $100 million and $1 billion have more modestly increased their 2010 budgets as compared to our
December survey. These companies are now budgeting a 28% increase in their 2010 E&P expenditures (versus 2009 spending) as
compared with the 24% increase indicated in our December 2009 survey. The largest expansions in 2010 budgets versus 2009
include Talisman Energy (+232%), Pioneer Natural Resources (+161%), Penn Virginia Oil and Gas (+133%), Swift Energy (+118%),
Continental Resources (+115%), and Berry Petroleum (+104%).

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The reasons for the increased spending growth in the U.S. are higher oil price expectations, success in drilling in shale, drilling to
hold leases and hedging. This more than offsets lower natural gas price expectations. Overall, we have estimated a spending
reduction as a result of the deepwater drilling moratorium put in place following the Macondo oil spill of 2% (down to an 18%
increase from 20%), or about $1.6 billion.

Modest Downward Revision to International Spending Growth in 2010

Overall, international E&P spending is seen rising by 9% for the 151 companies in our survey. By comparison, responders to our
December 2009 survey indicated an expected increase in international spending of 10.5%.

Companies based in Russia are now estimated to increase capital spending by about 13% in 2010 versus 2009 (this compares to an
increase of 20% in our December 2009 survey). We believe that weather-related delays earlier this year have been partly
responsible for the reductions in spending expectations in Russia.

Figure 3: Select Russian E&P Company Budgets

Year-to-Year Year-to-Year
(in $ millions) 2010 2009 $ Change % Change
Gazprom 12,910 11,803 1,107 9%
Gazprom Neft 2,345 1,990 355 18%
Lukoil 5,500 4,800 700 15%
Novatek 900 900 0 0%
Rosneft 6,700 5,867 833 14%
Surgutneftegaz 3,830 3,070 760 25%
TNK-BP 4,000 3,731 269 7%
Sub-Total $36,185 $32,161 $4,024 13%

Source: Barclays Capital estimates

Firms based in the Middle East and Africa have similar expectations for capex growth in 2010, with year-on-year growth of 16% now
forecast (up from 15% in our December 2009 survey).

Figure 4: Select Middle East and African E&P Company Budgets

Year-to-Year Year-to-Year
(in $ millions) 2010 2009 $ Change % Change
Abu Dhabi National Oil Co. (ADNOC) 3,200 2,750 450 16%
Egyptian General Petroleum Corp. 2,235 2,055 180 9%
Kuwait Oil Company 2,600 1,940 660 34%
Missan Oil Company 400 25 375 1500%
National Oil Corporation (NOC) 4,000 3,500 500 14%
Nigerian National Petroleum Corp. (NNPC) 9,220 7,220 2,000 28%
North Oil Company 150 120 30 25%
Petro SA 600 250 350 140%
Petroleum Development of Oman (PDO) 2,350 2,275 75 3%
Qatar Petroleum Company 3,400 3,600 -200 -6%
Saudi Aramco 7,900 8,500 -600 -7%
Sonangol 15,000 12,000 3,000 25%
Sonatrach 6,000 5,400 600 11%
South Oil Company 640 310 330 106%
Sub-Total $57,695 $49,945 $7,750 16%

Source: Barclays Capital estimates

Independents based in North America invest the bulk of their capital in their home countries, but many also have substantial
international operations. These firms are now anticipating year-on-year spending growth of 26% in 2010; by contrast, our December
2009 survey indicated growth expectations of 13%.

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Figure 5: Select North American-based International E&P Company Budgets

Year-to-Year Year-to-Year
(in $ millions) 2010 2009 $ Change % Change
Anadarko Petroleum Corp. 1,500 1,180 320 27%
Apache Corp. 3,000 2,000 1,000 50%
Canadian Natural Resources, Ltd. 478 627 -148 -24%
Devon Energy 400 446 -46 -10%
Hess Corporation 2,150 1,921 229 12%
Husky Energy 640 458 183 40%
Marathon Oil 1,035 880 155 18%
Murphy Oil 950 1,100 -150 -14%
Nexen 1,401 1,100 301 27%
Noble Energy 1,125 386 739 191%
Occidental Petroleum Corp. 2,070 1,632 438 27%
Suncor Energy 760 500 260 52%
Talisman Energy 2,520 2,054 466 23%
Sub-Total $18,030 $14,283 $3,746 26%

Source: Barclays Capital estimates

Latin American companies are now forecasting a decline of 5% versus the 9% increase anticipated in our December 2009 survey.
This is primarily driven by significant reductions in spending for the Venezuelan national oil company PDVSA (down 25% versus up
1% in our December survey), and PEMEX in Mexico (down 18% compared to a decline of 6% in December). Spending for other
Latin American E&P companies is generally in-line with estimates from our December 2009 survey.

Figure 6: Selected Latin American E&P Company Budgets

Year-to-Year Year-to-Year
(in $ millions) 2010 2009 $ Change % Change
Ecopetrol SA 4,509 3,764 745 20%
Petrobras 19,500 18,218 1,282 7%
PDVSA 3,910 5,217 -1,307 -25%
PEMEX 13,800 16,740 -2,940 -18%
Petrotrin 469 331 138 42%
Sub-Total $42,188 $44,270 -$2,082 -5%

Source: Barclays Capital estimates

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Spending for Europe-based operators has increased compared to the results of our December 2009 survey, with year-on-year
spending now slated to increase by 9% (versus 2% in December). The increase is led by higher budgets versus 2009 levels for BG
Group and Eni.

Figure 7: Select European E&P Company Budgets

Year-to-Year Year-to-Year
(in $ millions) 2010 2009 $ Change % Change
BG Group 5,850 4,102 1,748 43%
Eni 13,000 12,000 1,000 8%
OMV 1,906 1,734 172 10%
Repsol YPF 3,350 3,054 296 10%
Statoil 8,518 9,101 -583 -6%
Tullow Oil 1,535 1,193 341 29%
Wintershall Holdings 900 946 -46 -5%
Sub-Total $35,059 $32,130 $2,928 9%

Source: Barclays Capital estimates

Spending for the supermajors is estimated to be flat with 2009 levels, with increases by BP, ConocoPhillips and Exxon offsetting
decreases in spending for Royal Dutch/Shell and Chevron.

Figure 8: Select “Supermajor” International E&P Company Budgets

Year-to-Year Year-to-Year
(in $ millions) 2010 2009 $ Change % Change
BP 8,500 7,151 1,349 19%
Chevron 12,900 13,400 -500 -4%
ConocoPhillips 5,600 5,472 128 2%
Exxon Mobil 14,693 14,013 680 5%
Royal Dutch/Shell 14,250 16,000 -1,750 -11%
Total 12,350 12,350 0 0%
Sub-Total $68,293 $68,386 -$93 0%

Source: Barclays Capital estimates

Capital expenditures for state-owned and international oil companies based in Asia and Australia are now expected to rise by 16%,
compared to the 18% forecast by our December 2009 survey.

Figure 9: Select Asian & Australian E&P Company Budgets

Year-to-Year Year-to-Year
(in $ millions) 2010 2009 $ Change % Change
CNOOC 7,820 6,600 1,220 18%
OGDCL(Pakistan) 950 880 70 8%
ONGC 3,600 3,960 -360 -9%
Pertamina 2,782 1,569 1,213 77%
PetroChina 24,748 20,266 4,482 22%
Petronas 6,500 5,800 700 12%
PetroVietnam 2,900 3,200 -300 -9%
PTT Exploration & Production 2,005 2,474 -469 -19%
Santos, Ltd. 2,576 1,248 1,328 106%
Sinopec 8,175 6,800 1,375 20%
Woodside Petroleum 4,140 4,479 -339 -8%
Sub-Total $66,196 $57,276 $8,920 16%

Source: Barclays Capital estimates

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Canadian Spending Expected to Increase

Capital expenditure budgets in Canada are now expected to rise by 28% in 2010 for the 131 companies we surveyed. In our
December survey, spending had been forecast to rise by 23%. We attempt to exclude oil sands spending which is not directly
related to drilling and oil service activity from our survey. Because we convert survey responses that are denominated in foreign
currencies into U.S. dollars, the strengthening of the Canadian dollar in 2010 versus 2009 is partly responsible for the apparent
strong year-on-year growth in Canadian E&P spending. In Canadian dollar terms, we estimate that E&P capital spending has risen
by about 17%, generally in-line with the rate of U.S. E&P spending growth.

Similar to the U.S., Canadian increases in E&P spending are broad-based. Firms spending between $100 million and $1 billion have
indicated that spending is expected to increase by 35% in 2010 versus 2009. In our December survey, this group of companies had
anticipated a 26% expansion in 2010 expenditures. Those companies spending over $1 billion in Canada in 2010 are increasing
budgets by 18% versus a 14% rise in expenditures indicated by our December survey. Those firms spending less than $100 million
are estimated to have the largest increases in capex budgets, indicating that spending will rise by 69% year-on-year in 2010. Our
December 2009 survey indicated an increase of 59% for these companies.

Figure 10: Canadian Spending Breakout by Company Budget Size

Year-to-Year Companies
Canadian Spending Breakout 2010 2009 % Change Surveyed
Spending Less Than $50 Million 1,742 844 106.4% 87
Spending Between $50 and $100 Million 1,402 1,015 38.1% 14
Spending Under $100 Million 3,144 1,859 69.1% 101

Spending Between $100 Million and $1 Billion 9,934 7,356 35.1% 23

Spending More Than $1 Billion 13,774 11,680 17.9% 7
Total Canadian Spending $26,851 $20,895 28.5% 131

Source: Company data and Barclays Capital estimates

Among the firms indicating the most significant increases in Canadian 2010 capital expenditure budgets are Peyto Energy Trust
(+228%), Suncor (+185%), Anderson Energy (+171%), ARC Energy Trust (+120%), Apache (+100%), Birchcliff Energy (+86%), and
Canadian Natural Resources (+78%).

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Comparison of June 2010 and December 2009 Survey Results – “Apples-to-Apples”

To get an “apples-to-apples” comparison, we looked at companies that we included in both our December 2009 and June 2010
surveys. Of the 298 companies that were in both surveys, the anticipated year-on-year increase in overall 2010 budgets was 11.0%,
while in our December survey these companies expected capital expenditures to rise by 11.4%. On balance, operators revised total
2010 budgets down by $1.7 billion on a worldwide basis. In the U.S., about $3 billion was added to budgets and an additional $2.6
billion was added to budgets in Canada as well. However, largely offsetting these increases, international spending budgets were
trimmed by $7.3 billion. Worldwide capital spending in 2009 was close to the level forecast as of our December 2009 survey.

Figure 11: Summary of Oil and Gas Exploration and Production Expenditures for the 298 Companies That Are
Included in Both December 2009 and June 2010 Surveys ($ millions)
June 2010 Survey December 2009 Survey
Companies
2010 2009 % Change 2010 2009 % Change Surveyed
U.S. Spending by Cos Over $1BN 55,984 49,691 12.7% 53,783 50,117 7.3% 22
U.S. Spending by Cos Under $1BN 25,308 19,449 30.1% 24,476 20,094 21.8% 139
Total U.S. Spending 81,292 69,140 17.6% 78,259 70,211 11.5% 161
Canadian Spending 24,099 18,905 27.5% 21,541 17,669 21.9% 101
International Spending 319,038 294,405 8.4% 326,364 294,687 10.7% 103
Worldwide Spending $424,429 $382,450 11.0% $426,164 $382,567 11.4% 298

Source: Company data and Barclays Capital estimates

United States

When comparing companies that were included in both surveys, 63 companies increased budgets versus the expected level in our
December 2009 survey while 53 companies trimmed budgets and 45 kept 2010 spending plans unchanged.

International (Outside North America)

On balance, companies included in both surveys have trimmed about $7.3 billion from 2010 international spending plans compared
to the results of our December 2009 survey. Spending for 2009 was generally in-line with the results of our last survey. Companies
for which we have lowered our international spending expectations versus the results of our December survey include Exxon Mobil,
Sonangol, Nigerian National Petroleum Corp., Statoil, Royal Dutch/Shell, PEMEX and PDVSA.

Canada

In Canada, 2009 and 2010 spending plans have both risen versus our December 2009 survey for those companies that participated
in both surveys. However, we believe this is primarily due to the strengthening of the Canadian dollar relative to the U.S. dollar.
Twenty-six 2010 budgets have been revised lower versus expectations in our December 2009 survey, while 55 budgets have been
increased and 20 budgets have remained unchanged (in U.S. dollar terms).

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Operators Raise Average Oil Price Assumption and Trim Average Natural Gas Price Forecast

Compared to our December survey, operators surveyed have on average increased the oil forecast underpinning their budgeting
decisions and trimmed their average forecast for natural gas prices. The average oil price assumption rose to $73.56 from $70.16 in
our year-end 2009 survey. Operators are currently basing their 2010 budgets on an average natural gas price of $4.65, down from
$5.21 as of our December 2009 survey.

Figure 12: Crude Oil Price Forecasts Figure 13: Natural Gas Price Forecasts

$90 $9

$80 $8

$70 $7

$ per mcf (Henry Hub)

$ per barrel (WTI)

$60 $6

$50 $5

$40 $4

$30 $3

$20 $2

$10 $1

$0 $0
12/1/1999

6/1/2000

12/1/2000

6/1/2001

12/1/2001

6/1/2002

12/1/2002

6/1/2003

12/1/2003

6/1/2004

12/1/2004

6/1/2005

12/1/2005

6/1/2006

12/1/2006

6/1/2007

12/1/2007

6/1/2008

12/1/2008

6/1/2009

12/1/2009

6/1/2010
12/1/1999
6/1/2000
12/1/2000
6/1/2001
12/1/2001
6/1/2002
12/1/2002
6/1/2003
12/1/2003
6/1/2004
12/1/2004
6/1/2005
12/1/2005
6/1/2006
12/1/2006
6/1/2007
12/1/2007
6/1/2008
12/1/2008
6/1/2009
12/1/2009
6/1/2010

Source: Barclays Capital estimates Source: Barclays Capital estimates

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E&P Expenditures Growth Expected to Continue in 2011

Sixty percent of the companies in our survey expect to increase their capital budgets in 2011 versus 2010, with 37% indicating
spending would be up 20% or more, 16% indicating they would raise spending by 10-20% and 7% anticipating more modest
increases of 1-10%. In contrast, 26% of companies surveyed expect spending to be flat and 13% expect budgets to be lower
sequentially in 2011. Five percent of responders forecast cuts of between 1% and 10% and 8% anticipated cuts of 10% or more.

Figure 14: Estimated Direction of 2011 Capital Spending

Down 10%
Down or More
13%
% of Down 1%- 8%
10%
Responses 5% Up 20% or
More
Up 20% or More 37% 37%
Up 10%-20% 16% Flat
26%
Up 1%-10% 7% Flat Up
Flat 26% 26% 60%
Down 1%-10% 5%
Up 10%-
Down 10% or More 8% Up 1%-10%
20%
7%
16%

Source: Barclays Capital estimates.

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Survey Methodology

We surveyed 427 companies on their worldwide E&P expenditure plans for 2009 and 2010. We asked detailed questions about the
composition of their budgets and strategic shifts within these budgets. We originally faxed and e-mailed surveys to all participants,
and followed up with numerous telephone calls to many of them, particularly to government-owned oil companies, foreign oil
companies, and majors. All E&P expenditures, however, are our estimates, and may incorporate a variety of sources. We believe
this survey is the most extensive study of oil and gas company spending plans conducted. The following points should be noted
when interpreting the results.

1. The 2009 and 2010 budgets are Barclays Capital estimates.

2. Any company that spends more than $100,000 on exploration and production in 2009 or 2010 is eligible for our survey.

3. Budgets exclude acquisitions and, whenever possible, purchases of reserves or producing properties. For cases in which a
company has been acquired, we have attempted to include the spending of the acquired company in the new company’s
2009 spending.

4. We have attempted to adjust the numbers for companies whose fiscal year ends on a date other than December 31.

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Figure 15: Survey of U.S. E&P Expenditures, 2009–10 ($ millions)

Company 2010 2009 $ Change % Change Company 2010 2009 $ Change % Change
Abraxas Petroleum Corporation 30.0 16.0 14.0 88% Canan Mowrey Operating, LLC 3.0 5.0 -2.0 -40%
Algonquin Oil & Gas 1.0 0.3 0.8 300% Carrizo Oil & Gas 150.0 138.0 12.0 9%
All Aboard Development Corp. 3.8 2.6 1.2 46% Castex Energy 50.0 10.0 40.0 400%
Alpine Drilling 4.5 4.0 0.5 13% Chalker Energy Partners 10.0 5.0 5.0 100%
American Oil and Gas Inc 70.0 12.0 58.0 483% Chaparral Energy 347.0 122.0 225.0 184%
Anadarko Petroleum Corp. 3,000.0 2,865.0 135.0 5% Chesapeake Energy Corp. 4,350.0 3,542.0 808.0 23%
Antero Resources 280.0 183.0 97.0 53% Chevron Corp. 4,100.0 3,400.0 700.0 21%
Apache Corp. 2,300.0 1,400.0 900.0 64% Cimarex 800.0 524.0 276.0 53%
Approach Resources Inc. 53.0 29.6 23.4 79% Cirrus Production 0.6 0.4 0.2 50%
Arena Resources 195.0 107.0 88.0 82% Clayton Williams Energy 274.4 138.3 136.1 98%
Armstrong Energy Corp. 4.0 4.0 0.0 0% Clean Gas Inc 3.5 6.5 -3.0 -46%
Arsenal Energy 14.5 8.7 5.8 67% CNX Gas 221.0 159.2 61.8 39%
Artex Oil Company 20.0 20.0 0.0 0% Colt Energy Inc. 7.5 9.0 -1.5 -17%
Atlas Energy Ltd. 225.0 141.8 83.2 59% Comstock Resources 385.0 316.5 68.5 22%
ATP Oil & Gas Corp. 250.0 712.5 -462.5 -65% Concho Resources 625.0 400.0 225.0 56%
B&R Energy 5.0 5.0 0.0 0% Connacher Oil and Gas Ltd. 18.0 18.0 0.0 0%
Ballantyne Oil & Gas 0.4 0.4 0.0 -5% ConocoPhillips 2,589.0 3,129.0 -540.0 -17%
Ballard Petroleum 16.0 9.6 6.4 68% Constellation Energy Partners 11.0 23.0 -12.0 -52%
Barger Engineering 2.6 2.0 0.6 30% Contango Oil and Gas 115.0 33.6 81.4 242%
Baseline Oil & Gas 0.5 3.8 -3.3 -87% Continental Resources 738.0 343.0 395.0 115%
Bass Enterprises Production Co. 125.0 125.0 0.0 0% Crawford Energy 8.0 8.0 0.0 0%
Bean Resources 12.0 8.0 4.0 50% Crimson Exploration 50.0 21.0 29.0 138%
Berry Petroleum Co. 275.0 135.0 140.0 104% Cubic Energy, Inc. 40.0 0.0 40.0 NM
BG Group 350.0 250.0 100.0 40% D.E. Limited 1.2 1.2 0.0 0%
BHP Billiton 400.0 886.0 -486.0 -55% Dana Petroleum plc 0.0 0.4 -0.4 -100%
Bill Barrett Corp 412.5 346.0 66.5 19% Delta Petroleum 60.0 59.0 1.0 2%
Black Diamond Energy 0.3 0.3 0.0 0% Denali Oil & Gas 36.0 6.0 30.0 500%
Black Hills Corp. 38.3 20.5 17.8 87% Denbury Resources 1,060.0 588.0 472.0 80%
BlackPearl Resources Inc. 0.5 2.0 -1.5 -75% Derek Oil & Gas Corp. 3.0 0.6 2.4 400%
BlueStone Natural Resources 9.0 7.5 1.5 20% Devon Energy 3,300.0 2,708.0 592.0 22%
BNK Petroleum Inc. 24.0 16.3 7.7 47% Dewbre Petroleum Corporation 26.0 21.0 5.0 24%
BoMar Oil & Gas 0.3 0.3 0.0 0% Diaz Resources Ltd. 0.0 0.2 -0.2 -100%
BP 6,000.0 5,585.0 415.0 7% Dugan Production 4.0 2.9 1.1 37%
Brayton Operating 25.0 0.0 25.0 NM Dune Energy 20.0 14.0 6.0 43%
BreitBurn Energy Co., LLC 75.0 29.0 46.0 159% Dynamic Offshore Resources LLC 100.0 80.0 20.0 25%
Brigham Exploration Co. 183.7 58.2 125.5 216% Eagle Oil and Gas 8.0 3.0 5.0 167%
Buccaneer Energy 18.5 1.8 16.8 957% Edge Petroleum 0.0 3.0 -3.0 -100%
C. H. C. Gerard & Associates 0.3 0.5 -0.3 -50% Edmiston Oil Company 0.2 0.5 -0.4 -70%
Cabot Oil & Gas Corp. 570.0 494.0 76.0 15% El Paso Corporation 925.0 679.0 246.0 36%
Callon Petroleum Co. 40.2 27.0 13.2 49% EnCana 2,500.0 1,821.0 679.0 37%

Source: Company reports and Barclays Capital estimates

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Figure 16: (Continued) Survey of U.S. E&P Expenditures, 2009–10 ($ millions)

Company 2010 2009 $ Change % Change Company 2010 2009 $ Change % Change
Energen Corporation 310.0 246.0 64.0 26% Lotus Operating Co., LLC 7.5 7.5 0.0 0%
Energy Partners, Ltd 45.0 11.3 33.7 298% Magnum Hunter Resources 55.0 10.6 44.4 419%
Energy XXI 200.0 160.0 40.0 25% Makoil 1.5 1.5 0.0 0%
Enerplus Resources 160.0 40.5 119.5 295% Marathon Oil Corp 1,700.0 1,421.0 279.0 20%
Eni 850.0 950.0 -100.0 -11% Mariner Energy 571.1 489.7 81.4 17%
Enterra Energy Trust 15.3 5.3 10.0 189% Maritech Resources 63.0 29.0 34.0 117%
EOG Resources 3,900.0 2,372.0 1,528.0 64% Mark V Petroleum 0.2 0.2 0.0 0%
Epsilon Energy Ltd. 0.0 20.4 -20.4 -100% Mayne and Mertz, Inc. 7.5 7.3 0.2 3%
EQT Corp. 900.0 691.0 209.0 30% McCombs Energy 20.0 20.0 0.0 0%
EV Energy Partners 20.0 14.3 5.7 40% McElvain Oil & Gas Properties, Inc 20.0 29.7 -9.7 -33%
EXCO Resources 260.1 299.8 -39.7 -13% McMoRan Exploration Co. 240.0 138.0 102.0 74%
Exxon Mobil 2,800.0 3,030.0 -230.0 -8% MDU Resources 225.0 168.3 56.7 34%
Flash Gas & Oil Southwest 1.0 1.0 0.0 0% Meade Energy Corp. 5.0 5.0 0.0 0%
Forest Oil Corp. 585.0 498.0 87.0 17% Melrose Resources 10.0 23.0 -13.0 -57%
Gasco Energy 4.1 10.0 -5.9 -59% Merit Energy 120.0 120.0 0.0 0%
Gastar Exploration Ltd. 53.7 45.4 8.3 18% Merrion Oil and Gas 1.3 2.8 -1.6 -55%
GeoMet Operating Co. 6.5 6.3 0.2 3% Miesen Development Corp 2.0 0.3 1.8 700%
GMX Resources 175.0 178.0 -3.0 -2% MKJ Xploration, Inc. 1.5 0.8 0.8 100%
Goodrich Petroleum Corp. 210.0 215.1 -5.1 -2% Murex Petroleum Corp 60.0 15.0 45.0 300%
Grand Mesa Operating Company 6.0 3.0 3.0 100% Murphy Oil Co. 400.0 370.0 30.0 8%
Gulfport Energy Corp. 59.0 45.2 13.8 31% NCL Natural Resources 8.0 20.0 -12.0 -60%
Harvest Natural Resources 42.6 24.1 18.5 77% Nelson Energy 4.5 4.5 0.0 0%
Hess 1,600.0 1,197.0 403.0 34% Newfield Exploration Co. 1,392.0 1,118.0 274.0 25%
HighMount E&P LLC 200.2 145.3 54.9 38% Nexen 100.0 300.0 -200.0 -67%
Holmes Western Oil 14.0 8.0 6.0 75% NGAS Resouorces 11.0 15.0 -4.0 -27%
Houston American Energy 18.0 8.5 9.5 112% Noble Energy 1,215.0 900.0 315.0 35%
Howard Energy Corp. 0.3 0.3 0.0 0% Northstar Energy Corp 75.0 51.0 24.0 47%
IDC Energy Corp. 0.3 0.5 -0.3 -50% NuLoch Resources 17.2 0.3 16.9 6515%
Inland Ocean, Inc. 2.0 1.3 0.8 60% Occidental Petroleum Corp. 1,530.0 1,354.0 176.0 13%
Jasper Oil Producers 0.8 0.5 0.4 83% Osage Resources 7.5 0.5 7.0 1400%
Kinder Morgan 415.0 329.0 86.0 26% Paint Rock Operating, LLC 5.0 6.0 -1.0 -17%
Kirkpatrick Oil Company 16.0 10.0 6.0 60% Panhandle Oil & Gas 20.0 40.0 -20.0 -50%
Kodiak Oil & Gas Company 60.0 21.0 39.0 186% Penn Virginia Oil and Gas Corp. 400.0 171.8 228.2 133%
Kriti Exploration 11.0 1.5 9.5 633% Petrohawk Energy 1,350.0 1,100.0 250.0 23%
Lamamco Drilling Co 1.0 1.0 0.0 0% Petro-Hunt, LLC 225.0 180.0 45.0 25%
Lario Oil & Gas 65.0 30.0 35.0 117% Petroleo Brasiliero SA (Petrobras) 500.0 635.0 -135.0 -21%
Legacy Reserves 31.0 13.7 17.3 126% Petroleum Development Corp. 150.0 110.0 40.0 36%
Lenape Resources 0.7 1.0 -0.4 -35% PetroQuest Energy 120.0 59.0 61.0 103%
Lighthouse Petroleum 3.0 0.0 3.0 NM Petsec Energy 20.0 15.0 5.0 33%
Linn Energy 200.0 150.0 50.0 33% Pinnacle Gas Resources, Inc. 9.0 2.9 6.1 215%

Source: Company reports and Barclays Capital estimates

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Figure 17: (Continued) Survey of U.S. E&P Expenditures, 2009–10 ($ millions)

Company 2010 2009 $ Change % Change Company 2010 2009 $ Change % Change
Pioneer Natural Resources 850.0 326.0 524.0 161% Stone Energy Corp. 338.0 277.9 60.1 22%
Plains Exploration and Production 1,025.0 1,300.0 -275.0 -21% Strat Land Exploration 24.0 12.0 12.0 100%
Price Energy 2.5 0.5 2.0 400% Strategic Oil & Gas 9.7 6.6 3.1 47%
Puckett Land Co 10.0 11.0 -1.0 -9% Sue Ann Operating 5.0 5.0 0.0 0%
Questar 973.6 1,224.8 -251.2 -21% Sundance Energy 14.2 25.0 -10.8 -43%
Quicksilver Resources 270.0 374.5 -104.5 -28% Swift Energy Corp. 337.5 155.0 182.5 118%
Ram Energy Resources 50.0 28.6 21.4 75% Talisman Energy 900.0 271.0 629.0 232%
Ramshorn International Ltd. 100.0 40.0 60.0 150% Tammany Oil & Gas 1.8 0.5 1.3 260%
Range Resources 720.0 631.2 88.8 14% Te-Pe Oil & Gas 4.0 4.0 0.0 0%
Renegade Petroleum 4.3 0.0 4.3 NM The Cumming Company 8.5 5.5 3.0 56%
Repsol YPF 400.0 484.0 -84.0 -17% Tilford Pinson Exploration 3.5 1.0 2.5 250%
Resolute Energy Corp. 66.0 5.0 61.0 1220% Toce Energy 3.1 1.3 1.8 138%
Rex Energy Corp. 54.6 28.0 26.6 95% Total 1,000.0 1,000.0 0.0 0%
Rio Petroleum 4.5 1.8 2.7 150% Trans Pacific Oil 25.0 25.0 0.0 0%
Rosetta Resources 225.0 99.2 125.8 127% Trendwell Energy Corp. 5.0 4.0 1.0 25%
Royal Dutch/Shell 3,250.0 3,250.0 0.0 0% Ultra Petroleum 1,050.0 750.0 300.0 40%
Royal Offshore 5.0 20.0 -15.0 -75% Unit Corp. 319.0 230.6 88.4 38%
S.L. Evans Operating Co. 2.5 3.0 -0.5 -17% US Operating 5.0 0.0 5.0 NM
Sandridge Energy 660.0 449.3 210.7 47% Vanguard Natural Resources 13.0 5.0 8.0 160%
Saxet Petroleum 4.5 0.3 4.3 1700% Venoco, Inc. 220.0 161.3 58.7 36%
Saxon Oil Company 0.3 0.8 -0.5 -60% Vision Exploration LLC 1.0 1.0 0.0 0%
Sefton Resources, Inc. 2.2 2.4 -0.2 -9% W & T Offshore 300.0 276.0 24.0 9%
Seneca Resources 344.0 188.0 156.0 83% Warren Resources, Inc 14.0 6.0 8.0 133%
Sharon Energy Ltd. 0.0 2.0 -2.0 NM WFD Oil Corp. 0.9 0.3 0.6 240%
Slawson Exploration 37.5 30.0 7.5 25% Whiting Petroleum Corp. 830.0 480.0 350.0 73%
South Texas Oil Company 0.0 1.1 -1.1 -100% WhitMar Exploration Company 25.0 10.0 15.0 150%
Southport Exploration 0.1 0.1 0.0 0% Williams Cos 1,086.0 1,071.0 15.0 1%
Southwestern Energy Co. 1,580.0 1,377.0 203.0 15% Woodside Petroleum 85.4 35.6 49.8 140%
St. Mary Land & Exploration Co. 539.0 377.2 161.8 43% XTO Energy 3,100.0 2,946.0 154.0 5%
Statoil 2,532.0 2,705.0 -173.0 -6% Zone Energy LLC 2.0 0.0 2.0 NM

Total 13,712.5 12,960.7 $85,328.4 $72,313.7 $13,014.7

Year-Over-Year Percent Change 18.0%

Source: Company reports and Barclays Capital estimates

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 Equity Research

Figure 18: Survey of Canadian E&P Expenditures, 2009–10 ($ millions)

Company 2010 2009 $ Change % Change Company 2010 2009 $ Change % Change
Action Energy Inc. 0.0 0.6 -0.6 -100% Crescent Point Energy 565.0 299.0 266.0 89%
Advantage Oil & Gas 200.0 150.4 49.6 33% Crew Energy Inc. 181.0 104.0 77.0 74%
Alston Ventures Inc 2.1 0.2 1.9 930% Cygam Energy Inc. 0.1 0.0 0.1 150%
Altima Resources Ltd. 30.4 0.0 30.4 NM Daylight Energy 281.0 209.0 72.0 34%
Amidon Creative Enterprises, Ltd. 0.3 0.3 0.0 0% Deethree Exploration 19.4 7.7 11.7 152%
Anderson Energy Ltd. 84.4 31.1 53.3 171% Delphi Energy Corp. 55.6 29.9 25.7 86%
Angle Energy Inc. 98.5 56.8 41.7 73% Devon Energy 1,100.0 1,034.0 66.0 6%
Anterra Energy Inc. 14.0 1.3 12.7 977% Diaz Resources Ltd. 4.0 4.5 -0.5 -11%
Apache Corp. 1,000.0 500.0 500.0 100% Emerge Oil & Gas 53.5 20.5 33.0 161%
ARC Energy Trust 497.6 226.2 271.4 120% EMM Energy Inc. 0.6 0.5 0.0 9%
Arcan Resources Ltd. 14.3 12.2 2.1 17% EnCana 1,900.0 1,869.0 31.0 2%
Arsenal Energy 14.5 8.7 5.8 67% Enerplus Resources 252.2 184.0 68.2 37%
Artek Exploration 19.4 16.0 3.4 21% Enterra Energy Trust 18.7 19.4 -0.7 -4%
Barnwell of Canada, Ltd. 10.0 7.3 2.7 37% EOG Resources 300.0 289.0 11.0 4%
Base Oil & Gas 3.9 0.0 3.9 NM Epsilon Energy Ltd. 0.0 2.7 -2.7 -100%
Baytex Energy 228.0 145.2 82.8 57% Exall Energy Corp 18.8 4.0 14.8 372%
Bellamont Exploration 20.3 11.8 8.6 73% Exxon Mobil 350.0 300.0 50.0 17%
Bellatrix Exploration Ltd. 73.0 16.0 57.0 356% Fairborne Energy 145.5 103.0 42.5 41%
BG Group 0.0 50.0 -50.0 -100% Forest Oil Corp. 65.0 88.3 -23.3 -26%
Birchcliff Energy Ltd. 176.5 95.0 81.5 86% Freehold Royalty Trust 23.3 13.6 9.7 71%
BlackPearl Resources Inc. 125.0 26.0 99.0 381% Galleon Energy Inc. 140.7 93.3 47.4 51%
Bonavista Energy Trust 305.6 179.5 126.1 70% Great Plains Exploration Inc. 18.0 14.8 3.2 21%
Bonterra Oil & Gas Ltd. 43.7 20.2 23.5 116% Greentree Gas & Oil Ltd. 1.0 0.9 0.1 15%
BP 500.0 465.0 35.0 8% Hawk Exploration 9.7 2.7 7.0 259%
Canadian Natural Resources, Ltd. 2,678.2 1,508.3 1,169.9 78% Hemisphere Energy Corp. 1.0 0.3 0.7 233%
Canadian Spirit Resources Inc. 8.7 0.9 7.9 892% Husky Energy 1,634.5 1,298.0 336.5 26%
Celtic Exploration 135.8 110.3 25.5 23% Imperial Oil 3,100.0 2,110.0 990.0 47%
Cenovus Energy 800.0 600.0 200.0 33% Insignia Energy Ltd 35.0 7.5 27.5 367%
Century Energy Ltd 1.0 0.5 0.5 94% International Frontier Resources 4.9 0.3 4.5 1445%
Chevron Corp. 300.0 300.0 0.0 0% International Sovereign Energy 2.0 5.0 -3.0 -60%
Cinch Energy Corp. 48.5 5.5 43.0 775% Ironhorse Oil & Gas Inc. 19.4 7.9 11.5 147%
Compton Petroleum Corp. 63.0 60.0 3.0 5% Iteration Energy 92.0 54.5 37.5 69%
Connacher Oil and Gas Ltd. 182.0 210.0 -28.0 -13% Kallisto Energy 20.0 1.3 18.7 1438%
ConocoPhillips 1,511.0 1,811.0 -300.0 -17% Lario Oil & Gas 2.0 2.0 0.0 0%
Corridor Resources Inc. 27.7 33.2 -5.5 -17% Leprechaun Resources 4.0 0.5 3.5 700%

Source: Company reports and Barclays Capital estimates

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Figure 19: (Continued) Survey of Canadian E&P Expenditures, 2009–10 ($ millions)

Company 2010 2009 $ Change % Change Company 2010 2009 $ Change % Change
Merit Energy 15.0 15.0 0.0 0% Spartan Exploration 30.0 2.5 27.6 1124%
Midnight Oil Exploration 34.0 34.0 0.0 0% Spitfire Energy Ltd. 2.4 2.2 0.2 10%
Midway Energy Ltd. 39.0 44.6 -5.6 -13% Stealth Ventures 1.0 1.0 0.0 0%
Monterey Exploration 34.0 13.8 20.2 146% Storm Exploration Inc 85.0 54.5 30.5 56%
Murphy Oil Co. 600.0 350.0 250.0 71% Suncor Energy 570.0 200.0 370.0 185%
NAL Oil & Gas Trust 155.0 93.3 61.7 66% Sure Energy 9.5 3.7 5.8 157%
Nexen 190.0 261.0 -71.0 -27% Talisman Energy 775.0 682.0 93.0 14%
Nordic Oil & Gas 4.3 4.4 -0.1 -2% Taylor Hill Exploration Ltd. 0.3 0.3 0.0 0%
North Peace Energy Corp. 0.0 6.7 -6.7 -100% Terra Energy Corp. 63.1 18.0 45.1 250%
NuLoch Resources 22.9 0.9 22.0 2502% Texalta Petroleum 6.7 2.5 4.2 164%
Open Range Energy Corp. 43.7 19.1 24.6 129% Total 800.0 800.0 0.0 0%
Orleans Energy 39.8 38.1 1.7 4% TRAFINA Energy Ltd. 6.4 3.0 3.4 113%
Painted Pony Petroleum Ltd. 87.3 30.0 57.3 191% Triangle Petroleum 4.1 5.3 -1.2 -23%
Palliser Oil & Gas Corp 9.7 7.0 2.7 39% Triton Energy 19.9 5.0 14.9 298%
Paramount Energy 77.0 56.5 20.5 36% Tuscany Energy 19.0 2.6 16.4 628%
Paramount Resources, Ltd. 126.1 82.2 43.9 53% Twin Butte Energy Ltd. 43.2 13.6 29.6 218%
Paris Energy 0.0 0.1 -0.1 -100% Vecta Energy Corporation 0.0 0.1 -0.1 -100%
Penn West Energy Trust 775.0 688.0 87.0 13% West Isle Energy 0.2 0.2 0.1 41%
Petrex Energy 1.7 1.3 0.4 31% Western Plains Petroleum 2.0 1.0 1.0 100%
Petro-reef Resources Ltd. 8.9 4.0 4.9 123% WesternZagros Resources Ltd. 34.0 38.0 -4.0 -11%
Peyto Energy Trust 230.0 70.2 159.8 228% WestFire Energy Ltd. 38.8 15.2 23.6 155%
Pine Cliff Energy Ltd. 1.3 0.9 0.4 50% Wrangler West Energy Corp. 5.8 1.2 4.6 383%
Polaris Resources 4.0 0.5 3.5 700% Yangarra Resources Ltd. 1.4 0.4 1.0 250%
ProspEx Resources 29.0 6.9 22.1 320% Yoho Resources 13.8 2.8 11.0 393%
Provident Energy 53.0 77.0 -24.0 -31% Zapata Energy Corp. 13.6 14.0 -0.4 -3%
Quicksilver Resources 40.0 83.6 -43.6 -52% Zargon Energy 56.3 40.9 15.4 38%
Ramshorn International Ltd. 10.0 40.0 -30.0 -75%
Renegade Petroleum 38.3 10.0 28.3 283%
Ripper Oil & Gas 1.5 0.0 1.5 NM
Rock Energy Inc. 40.3 18.0 22.3 124%
Royal Dutch/Shell 1,850.0 2,050.0 -200.0 -10%
Ryland Oil Corp. 0.0 17.5 -17.5 -100%
Second Wave Petroleum Ltd. 52.2 19.8 32.4 164%
Sentinel Rock Oil 0.0 0.1 -0.1 -100%
Sharon Energy Ltd. 2.0 0.2 1.8 900%

Total 4,614.9 4,144.7 $26,851.4 $20,895.0 $5,956.4

Year-Over-Year Percent Change 28.5%

Source: Company reports and Barclays Capital estimates

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Figure 20: Survey of International (Outside North America) E&P Expenditures, 2009–10 ($ millions)
Company 2010 2009 $ Change % Change Company 2010 2009 $ Change % Change
Abu Dhabi National Oil Co. (ADNOC) 3,200.0 2,750.0 450.0 16% Ecopetrol SA 4,509.0 3,764.0 745.0 NM
Africa Oil Corp 40.0 7.0 33.0 471% Egyptian General Petroleum Corp. 2,235.0 2,055.0 180.0 9%
Aladdin Middle East Ltd. 14.0 6.7 7.4 111% El Paso Corporation 175.0 185.0 -10.0 -5%
Alliance Oil Company 316.0 83.0 233.0 281% Eni 13,000.0 12,000.0 1,000.0 8%
Ambit Energy Corporation 87.5 0.0 87.5 NM EOG Resources 100.0 115.0 -15.0 -13%
Anadarko Petroleum Corp. 1,500.0 1,180.0 320.0 27% Epsilon Energy Ltd. 0.0 3.8 -3.8 -100%
Apache Corp. 3,000.0 2,000.0 1,000.0 50% Exxon Mobil 14,693.0 14,013.0 680.0 5%
Argenta Oil & Gas Inc. 6.0 3.0 3.0 100% Forest Oil Corp. 0.0 7.6 -7.6 -100%
ATP Oil & Gas Corp. 100.0 95.9 4.1 4% Frontera Resources 20.0 8.0 12.0 150%
Aurelian Oil & Gas 16.0 8.0 8.0 100% Gastar Exploration Ltd. 0.0 16.8 -16.8 -100%
Bankers Petroleum 126.0 23.2 102.8 443% Gazprom 12,910.0 11,803.0 1,107.0 9%
BG Group 5,850.0 4,102.0 1,748.0 43% Gazprom Neft 2,345.0 1,990.0 355.0 18%
BHP Billiton 1,834.0 1,040.0 794.0 NM GeoPark Holdings 65.0 45.0 20.0 44%
BNK Petroleum Inc. 16.0 0.0 16.0 NM Gran Tierra Energy 196.4 85.9 110.5 129%
Bowleven plc 170.0 30.0 140.0 467% Hardy Oil and Gas 40.0 20.0 20.0 100%
BP 8,500.0 7,151.0 1,349.0 19% Harvest Natural Resources 19.9 3.1 16.8 542%
BPZ Resources, Inc. 165.0 88.3 76.7 87% Hellenic Petroleum SA 29.0 13.5 15.5 115%
Bridge Energy AS 31.4 12.7 18.7 148% Hess 2,150.0 1,921.0 229.0 12%
Brisbane Petroleum Ltd. 1.5 0.0 1.5 NM Holloman Energy Corp. 10.0 0.3 9.8 3900%
C&C Energy Canada Ltd 67.9 18.2 49.7 273% Husky Energy 640.2 457.6 182.6 40%
Cairn Energy plc 1,000.0 919.0 81.0 9% International Frontier Resources 0.0 4.5 -4.5 -100%
Calvalley Petroleum 34.0 11.8 22.2 188% International Sovereign Energy 0.5 1.0 -0.5 -50%
Canacol Energy 25.0 14.0 11.0 79% InterOil E&P 33.0 24.0 9.0 38%
Canadian Natural Resources, Ltd. 478.2 626.6 -148.4 -24% Ithaca Energy 120.0 100.0 20.0 20%
Candax Energy Inc. 10.0 5.6 4.4 79% JKX Oil & Gas PLC 120.0 110.0 10.0 9%
Carrizo Oil & Gas 2.0 1.0 1.0 100% KazMunaiGas 604.0 475.0 129.0 27%
Centric Energy 15.0 0.0 15.0 NM Key Petroleum 3.3 0.8 2.5 323%
CEPSA 305.1 279.2 25.9 9% Kuwait Oil Company 2,600.0 1,940.0 660.0 34%
CGX Energy 10.0 6.3 3.7 59% Lukoil 5,500.0 4,800.0 700.0 15%
Chariot Oil & Gas Ltd. 5.0 25.0 -20.0 -80% Lundin Petroleum 540.0 517.0 23.0 4%
Chevron Corp. 12,900.0 13,400.0 -500.0 -4% Marathon Oil Corp 1,035.0 880.0 155.0 18%
CNOOC 7,820.0 6,600.0 1,220.0 18% Melrose Resources 133.0 142.0 -9.0 -6%
Coastal Energy Company 85.0 65.0 20.0 31% Missan Oil Company 400.0 25.0 375.0 1500%
ConocoPhillips 5,600.0 5,472.0 128.0 2% MOL Group 731.0 402.0 329.0 82%
Cue Energy Resources NL 15.6 19.5 -3.9 -20% Murphy Oil Co. 950.0 1,100.0 -150.0 -14%
Cygam Energy Inc. 9.0 1.3 7.7 577% National Oil Corporation (NOC) 4,000.0 3,500.0 500.0 14%
Dana Petroleum plc 380.0 380.8 -0.8 0% Nautical Petroleum 17.0 13.0 4.0 31%
Devon Energy 400.0 446.0 -46.0 -10% Newfield Exploration Co. 208.0 148.0 60.0 41%
Dominion Petroleum Ltd. 37.5 13.5 24.0 178% Newton Energy 2.9 0.0 2.9 NM
Drillsearch Energy Ltd. 17.0 6.0 11.0 183% Nexen 1,401.3 1,100.0 301.3 27%

Source: Company reports and Barclays Capital estimates

17
 Equity Research

Figure 21: (Continued) Survey of International (Outside North America) E&P Expenditures, 2009–10 ($ millions)
Company 2010 2009 $ Change % Change Company 2010 2009 $ Change % Change
Nigerian National Petroleum Corp. (NNPC) 9,220.0 7,220.0 2,000.0 28% Royal Dutch/Shell 14,250.0 16,000.0 -1,750.0 NM
Niko Resources 421.0 282.0 139.0 49% Santos, Ltd. 2,576.0 1,248.0 1,328.0 106%
Noble Energy 1,125.0 386.0 739.0 191% Saudi Aramco 7,900.0 8,500.0 -600.0 -7%
Noreco 300.0 250.0 50.0 20% Saxon Oil Company 0.0 3.3 -3.3 -100%
North Oil Company 150.0 120.0 30.0 25% Sea Dragon Energy 17.0 11.9 5.1 43%
Northern Petroleum Plc 27.0 25.0 2.0 8% ShaMaran Petroleum 53.0 0.0 53.0 NM
Novatek 900.0 900.0 0.0 0% Sinopec 8,175.0 6,800.0 1,375.0 20%
Nunaoil A/S 1.0 3.2 -2.2 -69% Sonangol 15,000.0 12,000.0 3,000.0 25%
Occidental Petroleum Corp. 2,070.0 1,632.0 438.0 27% Sonatrach 6,000.0 5,400.0 600.0 11%
OGDCL (Pakistan) 950.0 880.0 70.0 8% South Oil Company 640.0 310.0 330.0 106%
Oil & Natural Gas Corporation Limited (ONGC) 3,600.0 3,960.0 -360.0 -9% Statoil 8,518.0 9,101.0 -583.0 -6%
OMV A.G. 1,906.0 1,734.0 172.0 10% Stealth Ventures 15.0 0.0 15.0 NM
Orca Exploration 7.0 11.0 -4.0 NM Stratic Energy Corp 40.0 47.2 -7.2 -15%
PA Resources 207.0 258.5 -51.5 -20% Stream Oil & Gas 14.3 2.0 12.3 613%
Pacific Rubiales 423.6 169.0 254.6 151% Stuart Petroleum Limited 6.0 26.0 -20.0 -77%
Pakistan Petroleum, Ltd. 307.0 303.0 4.0 1% Suncor Energy 760.0 500.0 260.0 52%
Pan Orient Energy Corp 65.0 55.8 9.2 16% Surgutneftegaz 3,830.0 3,070.0 760.0 25%
Pertamina 2,782.0 1,569.0 1,213.0 77% Talisman Energy 2,520.0 2,054.0 466.0 23%
Petro SA 600.0 250.0 350.0 140% Tethys Petroleum 70.0 29.2 40.8 140%
Petro Vista Energy 24.0 6.0 18.0 300% TNK-BP 4,000.0 3,731.0 269.0 7%
PetroChina 24,748.0 20,266.0 4,482.0 22% Toreador Resources 10.0 8.0 2.0 25%
Petrodelta 100.0 90.0 10.0 11% Total 12,350.0 12,350.0 0.0 0%
Petroleo Brasiliero SA (Petrobras) 19,500.0 18,218.0 1,282.0 7% TransAltlantic Petroleum 105.0 70.0 35.0 50%
Petroleos de Venezuela, SA (PDVSA) 3,910.0 5,217.0 -1,307.0 -25% TransGlobe Energy Corporation 62.8 35.4 27.4 78%
Petroleos Mexicanos (Pemex) 13,800.0 16,740.0 -2,940.0 -18% Tullow Oil 1,534.5 1,193.2 341.3 29%
Petroleum Development of Oman (PDO) 2,350.0 2,275.0 75.0 3% Vaalco Energy 50.0 61.0 -11.0 -18%
Petrolifera 20.0 68.9 -48.9 -71% Valiant Petroleum plc 202.9 132.0 70.9 54%
Petronas 6,500.0 5,800.0 700.0 12% Volga Gas 20.0 23.0 -3.0 -13%
Petrorep SA 2.0 0.5 1.5 300% Williams Cos 36.0 26.0 10.0 38%
Petrotrin 469.0 331.0 138.0 42% Wintershall Holding AG 900.0 946.0 -46.0 -5%
PetroVietnam 2,900.0 3,200.0 -300.0 -9% Woodside Petroleum 4,139.9 4,478.7 -338.8 -8%
Pioneer Natural Resources 50.0 36.7 13.3 36%
Plains Exploration and Production Company 0.0 50.0 -50.0 -100%
Premier Oil 550.0 320.0 230.0 72%
PTT Exploration & Production 2,005.0 2,474.0 -469.0 -19%
Qatar Petroleum Company 3,400.0 3,600.0 -200.0 -6%
Ramshorn International Ltd. 20.0 10.0 10.0 100%
Repsol YPF 3,350.0 3,054.0 296.0 10%
ROC Oil 153.0 72.2 80.8 112%
Rosneft 6,700.0 5,867.0 833.0 14%

Total 115,612.6 107,704.8 $335,134.0 $306,542.8 $28,591.2

Year-Over-Year Percent Change 9.3%

Source: Company reports and Barclays Capital estimates

Analyst Certification:
We, James D. Crandell and James C. West, hereby certify (1) that the views expressed in this research report accurately reflect our personal
views about any or all of the subject securities or issuers referred to in this research report and (2) no part of our compensation was, is or will
be directly or indirectly related to the specific recommendations or views expressed in this research report.

Other Team Members:

McLean, Nicholas (BCI, New York) 1.212.526.8284 nicholas.mclean@barcap.com
Walker, Anthony (BCI, New York) 1.212.526.2687 anthony.walker@barcap.com
Freedman, Zachary (BCI, New York) 1.212.526.3138 zachary.freedman@barcap.com

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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FOR CURRENT IMPORTANT DISCLOSURES REGARDING COMPANIES THAT ARE

THE SUBJECT OF THIS RESEARCH REPORT, PLEASE SEND A WRITTEN REQUEST TO:
BARCLAYS CAPITAL RESEARCH COMPLIANCE
745 SEVENTH AVENUE, 17TH FLOOR, NEW YORK, NY 10019
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REFER TO publicresearch.barcap.com or call 1-212-526-1072

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.

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:

Baker Hughes (BHI) Basic Energy Services (BAS)

Bristow Group Inc. (BRS) Cameron International (CAM)
CARBO Ceramics (CRR) Chart Industries Inc. (GTLS)
Core Laboratories (CLB) Diamond Offshore Drilling (DO)
Dresser-Rand Group Inc. (DRC) Dril-Quip Inc. (DRQ)
Ensco plc (ESV) Exterran Holdings Inc. (EXH)
FMC Technologies (FTI) Global Geophysical Services (GGS)
Global Industries, Ltd. (GLBL) GulfMark Offshore, Inc. (GLF)
Halliburton Co. (HAL) Helmerich & Payne Inc. (HP)
Hercules Offshore (HERO) Hornbeck Offshore Services (HOS)
ION Geophysical Corp. (IO) Key Energy Services (KEG)
Nabors Industries (NBR) National Oilwell Varco (NOV)
Noble Corp. (NE) Oceaneering International (OII)
Parker Drilling (PKD) Patterson-UTI Energy (PTEN)
Pride International (PDE) Rowan Companies (RDC)
Schlumberger Ltd. (SLB) SEACOR Holdings, Inc. (CKH)
Seadrill Limited (SDRL) Seahawk Drilling (HAWK)
Smith International (SII) Superior Energy Services Inc. (SPN)
Tetra Technologies Inc. (TTI) Tidewater Inc. (TDW)
Transocean Ltd. (RIG) Trico Marine Services Inc. (TRMA)
Weatherford International (WFT)

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.

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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 1483 companies under coverage.
43% have been assigned a 1-Overweight rating which, for purposes of mandatory regulatory disclosures, is classified as a Buy rating; 49%
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;
43% of companies with this rating are investment banking clients of the Firm.
11% have been assigned a 3-Underweight rating which, for purposes of mandatory regulatory disclosures, is classified as a Sell rating; 33%
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)

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