1. The Importance of Investment Recovery... Sam Reynolds

2. Overview My Experience Mature Assets Resource Plays Training New Hires

3. My Experience Marathon Oil’s Rocky Mountain Operations (RMO) How I got involved in investment recovery Start from scratch Hardships Moving forward and roll out Figures:  Over 30 lots sold  Sales occurred across 7 fields

4. …in a Mature Asset Test Projects Repair & Maintenance (R&M)  a surplus producer Surplus – Good  Keeps necessary parts on hand  Utilizes company’s previous investment ….. and Bad  Limitations  Expectations Investment Recovery:  Sets a precedent to utilize on hand material in an effective manner  Establishes a process that can be measured and monitored  Cleans up field  Reduces unneeded inventory and equipment  Brings cash back to Company

5. …in a Resource Play Maintaining performance in one region while another is starting up Communication Utilize material intercompany  Take advantage of investments already made  Redeploy useful equipment where applicable – Extends the value of the material Capitalize on opportunity of market price  Pumping Units, Casing, Tubing Start Investment Recovery Program in the beginning  Facilities, Drilling, Warehouses and Special Projects – One-off or replicating

6. ….Training New Hires Understand surplus  Positive and negative Importance of communication Idle surplus is lost cash Excess surplus  Eye sore  Loss of value  Takes up space  Requires man hours to manage  Creates potential safety hazards Starting a program  Develop a process – prove process Advantages  Ease of sales  Larger auction group  All inclusive fee(s) including marketing  Fee(s) only charged on auction value

7. Steps to Dispose of Surplus Equipment 7