1. U.S. Oil & Gas Production Overview Includes data supplied by IHS; Copyright (2007) all rights reserved. April 27, 2007 Robert P. Sutton, Marathon Oil Company 

2. U.S. Oil Well Locations Source: IHS MS Streets & Trips

3. Oil Well – Location & Rate Source: IHS & ArcMap

4. Historical Oil & Gas Prices Source: EIA

5. U.S. Oil Production & Well Count Source: EIA

6. Drilling Activity & Oil Price Source: EIA

7. U.S. Oil Well Performance & Price Source: EIA

8. U.S. Oil Well Count & Price Source: EIA

9. Distribution – Well Count & Annual Oil Production Source: IHS Marginal Well 10 STBPD

10. Oil Well Distribution with Time Source: IHS

11. Fractional Total of Marginal Wells Over Time Source: IHS

12. Maximum Oil Rate Source: IHS

13. Comparison of “Majors” & “Independents” Source: IHS

14. Summary - Oil 506,000 Oil Wells (2005 EIA) Avg Oil Rate is 10.2 STBPD/well (5.1 MMSTBPD) Avg GOR is 1040 scf/STB Avg Water Cut is 86.5% Marginal wells account for 78% of the total active oil wells These wells account for 13% of the oil production Production distribution among wells has remained fairly constant over the last 20 years. The fraction of marginal wells has risen from 70 to 78%