Wyoming Geological Association

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Wyoming Geological Association
March 5, 2004
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Where is Production Growing ..

• And Where is it Not Growing

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Growth In Production - Wyoming
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Jonah Field (EnCana Interest Only)Unrestricted
Development If we dont keep drilling
production will decline as illustrated in red
below
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Growth In Production Colorado (Garfield County)

• 1999 154,000 Mcfd
• 2000 190,000 Mcfd
• 2001 241,000 Mcfd
• 2002 315,000 Mcfd
• March 03 365,000 Mcfd
• Oct 03 423,000 Mcfd
• Going to? 1 Bcfd
• Major Operators include EnCana, Williams,
  Calpine, Mesa, Tom Brown, Exxon/Mobil
• Data Source Colorado Oil and Gas Conservation
  Commission

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Producer Critical Success Factors

• Access to Federal Lands
• Gas Price
• Timing of Regulatory Approvals
• Gathering System Capacities and Pressures
• Transportation Export Capacity
• Capital Efficiency
• Public Acceptance

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Lack of Access to Federal Lands
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Nymex vs Wyoming Prices - 2002
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Nymex vs Wyoming Prices - 2003
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Pipeline Projects In-service or Full Market
Support

• Kern River Pipeline Expansion
• Williston Basin Grasslands Pipeline
• Northwest Pipeline Expansion
• El Paso Cheyenne Plains Pipeline
• TransColorado

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Northwest PL Expansion online Nov 03
WBI Grasslands online Nov 03
Proposed El Paso Cheyenne Plains and Kinder
Advantage
Kern Expansion online May 03
EnCana Proposed Piceance to Cheyenne lateral
TransColorado Expansion
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Pipeline Export Projects Proposed

• Kinder Morgan Advantage
• Northern Border Bison Project
• Enbridge Chicago Project
• Southern Star Western Frontier Project
• El Paso Ruby Project
• Kinder Morgan TransColorado Expansion.

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Intraregional Projects

• Questar Kern Expansion
• El Paso Front Range Expansions
• Xcel Front Range Projects
• Kinder Huntsman Storage Project
• Totem Gas Storage Project
• Questar Gas Storage Project
• Wyoming Interstate/Overthrust Backhaul Projects
• Jonah/Opal/Powder/Wind River Gathering/Processing
  Expansions
• EnCana NW Colorado to Cheyenne Project

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Teppco Jonah Gas Gathering System

• Expansions Since 2001 Acquisition
• Phase I 9000 HP
• 50 miles of 20
• Phase II 9000 HP
• 40 miles of 20/24
• Phase III 3000 HP
• 90 miles of 20/24
• 250 MMcf/d Plant
• 2001 Capacity 450 MMcf/d
• 2004 Capacity 1180 MMcf/d
• Current Volume 925 MMcf/d

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Cost of Limited Infrastructure to Wyoming

• 130 million in Federal/State royalties and
  severance taxes 2002.
• 1 million per day in March 2003.
• Stalled investment in development of mineral
  resources.
• Limited ability to predict revenues with
  certainty.

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1 Billion in Bonding Authority
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Our Team of Finance Professionals

• Goldman Sachs Jeff Brown
• Merrill Lynch Ed Burdett and Greg Dawley
• George K. Baum Mary Keating-Scott and Geoff
  Urbina
• Kutak Rock John Wagner

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The Wyoming Pipeline Authority Will

• Promote all industry sponsored and supported
  projects.
• Proactively promote infrastructure development
  within the state and the Rocky Mountain Region.
• Promote efficient utilization of existing
  infrastructure in a cost effective manner.
• Promote development of Wyomings mineral resource
  base in a systematic, streamlined and
  environmentally responsible manner.
• Utilize its bonding authority to build or cause
  to be built infrastructure projects that will
  enhance state netbacks and promote development of
  a resource base that is in the nations best
  interests.

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Thanks for the opportunity to speak with you.

• Bryan Hassler
• Interim Executive Director - Wyoming Natural Gas
  Pipeline Authority
• Ph 303-357-7314
• Cell 303-748-6473
• Fax [phone]
• Email uep1_at_comcast.net
• Wyoming Pipeline Authority Presentations Can be
  Accessed via the Wyoming Oil Gas Conservation
  Commission Website at www.wogcc.state.wy.us