Deep Gulf Energy ll

Deep Gulf Energy II was established in 2007 with $385 million in equity. The venture invested in several gas projects prior to the gas price crash of 2009. These projects became marginal due to the low gas price. After the crash, management began to focus solely in oil-prone areas. In 2010, investments within the venture slowed due to the Macondo incident. Post-Macondo, the venture bought the Kodiak field and had three significant discoveries. The venture now has 2P reserves of 38 MMBOE. We expect production to rise to over 11,000 BOEPD over the next three years and an exit through a sale within the next 5 years.