1. RCS Partnerships Annual Meeting Pittsburg December 2007 Gulf Coast Stacked Storage SECARB Phase II Test #1 Susan Hovorka, Tip Meckel, JP Nicot, Fred Wang, Jeff Paine Gulf Coast Carbon Center Bureau of Economic Geology The University of Texas at Austin

2. Bureau of Economic Geology, Jackson School of Geosciences, The University of Texas at Austin Denbury Resources Schlumberger CO 2 Southern Company Mississippi State University University of Mississippi Partners

3. Cranfield Source of large volumes of CO 2 via pipeline Source: Dutton and others 1993 Cranfield is part of Upper Cretaceous Tuscaloosa- Woodbine Trend of the Mississippi Salt Basin

4. Miss. River NATCHEZ LAMS I-55 AdamsFranklin Hurricane Lake Brookhaven Cranfield Unit operated by Denbury Resources Mallalieu Non-Tusc Fields US 84

5. RCS Partnerships Annual Meeting Pittsburg December 2007 Regional Geometries within Tuscaloosa Formation Injection interval Seal Above-zone Monitoring interval Secondary seals

6. RCS Partnerships Annual Meeting Pittsburg December 2007 90 Feet

7. Cranfield Unit setting Cranfield unit boundary Oil ring Gas cap Sonat CO2 pipeline Denbury early injectors Denbury later Injectors shown schematically Saline aquifer within Cranfield unit

8. RCS Partnerships Annual Meeting Pittsburg December 2007 PHASE II OBSERVATION WELL LOCATION 3 MMCFD Injection rates Phase II : ½ Million Tons/yr Phase III : 1-1.5 Mt/yr Marine Shale Seal Injection Sand Monitor Sand 375’

9. RCS Partnerships Annual Meeting Pittsburg December 2007 Site characterization Large volumes of low-cost CO 2 available March 2008 Denbury Sonat pipeline Well-known geologic environment: Historic logs, new logs, core, core analyses, and hydrologic testing competed by Denbury Injectivity and seal are demonstrated New 3-D seismic collected Depth 10,025 ft Minerals rights owned by Denbury Surface ownership well known and experimental site is leased Permitting streamlined Well permitted as class II EQ - FONSI obtained

10. RCS Partnerships Annual Meeting Pittsburg December 2007 GENETIC UNIT E DEPOSITIONAL FACIES

11. RCS Partnerships Annual Meeting Pittsburg December 2007 GENETIC UNIT C DEPOSITIONAL FACIES

12. RCS Partnerships Annual Meeting Pittsburg December 2007 GENETIC UNIT B DEPOSITIONAL FACIES

13. RCS Partnerships Annual Meeting Pittsburg December 2007

15. Surface Architecture 3 D Modeling A B C D E

16. RCS Partnerships Annual Meeting Pittsburg December 2007 Atmosphere –Ultimate receptor but dynamic Biosphere –Assurance of no damage but dynamic Soil and Vadose Zone –Integrator but dynamic Aquifer and USDW –Integrator, slightly isolated from ecological effects Above injection monitoring zone –First indicator, monitor small signals, stable. In injection zone - plume –Oil-field type technologies. Will not identify small leaks In injection zone - outside plume –Assure lateral migration of CO 2 and brine is acceptable-far field pressure Aquifer and USDW Atmosphere Biosphere Vadose zone & soil Seal CO 2 plume Monitoring Zone Phase II Monitoring Zones

17. RCS Partnerships Annual Meeting Pittsburg December 2007 Document pressure propagation in front of CO 2 plume Time lapse bottom-hole pressure in pattern – numerous wells Pressure has returned to near pre-production – unique conditions for an oil field Complex fluid mixture – oil +methane+ brine Measure fluid composition change –sweep efficiency Determine effectiveness of available tools Document efficiency of Mississippi oil and gas law in retaining CO2 Wells drilled in 1940-1950, P&A 1965 Cement behind casing in injection zone Evaluation –reentry or soil gas survey Above zone monitoring program – pressure - fluid if needed Phase II Monitoring Goals

18. RCS Partnerships Annual Meeting Pittsburg December 2007 Marine shale seal Lower Tuscaloosa A B C Lower Tuscaloosa DE ‘Massive’ Sand Monitoring to document no well leakage Composite idealized log Above-zone pressure monitoring Injection zone

19. RCS Partnerships Annual Meeting Pittsburg December 2007 Dedicated observation well Three mechanical packer – two perforation zone completion Two downhole pressure/temperature Panex gauges – high reliability Real-time readout Episodic logging Limited fluid sampling Array of time-lapse monitoring between injector and producers Model match/ compared to response in dedicated observation well Logging program – measure sweep efficiency Programmatic value Improved capacity estimate Increase skill in measurement of pressure response in front of plume Document well integrity Phase II Tool Selection

20. Brine Residual Oil Residual Gas Inj+ Mon Phase II Study area Inj Oil Prod Moni toring Inj + Mon Phase III Early study area Inj + Mon Inj+ Mon Tuscaloosa Formation 10,000 ft Documented seal Denbury Cranfield unit A A’ A Cranfield Program Overview

21. RCS Partnerships Annual Meeting Pittsburg December 2007 SECARB Stacked Storage Status New injector drilled, cored, logged, and tested 3-D survey collected, in processing Observation well workover in coming weeks Well instrumentation – January- March Injection in March