Enercom Conference

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Enercom Conference August 2009
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Safe Harbor

• This presentation contains projections and other
  forward-looking statements within
• the meaning of Section 27A of the Securities Act
  of 1933 and Section 21E of the
• Securities Exchange Act of 1934. These
  projections and statements reflect the
• Companys current view with respect to future
  events and financial performance.
• No assurances can be given, however, that these
  events will occur or that these
• projections will be achieved, and actual results
  could differ materially from those
• projected as a result of certain factors. A
  discussion of these factors is included in
• the Company documents filed with the Securities
  and Exchange Commission.
• This presentation does not constitute an offer to
  sell, or a solicitation of an offer to
• buy, any securities, or the solicitation of a
  proxy or an attempt to influence any
• voting of securities, by any person.

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Capital Structure

• NYSE AMEX DNE
• 140 MM Primary Shares o/s
• 17 MM Market Capitalization of common
• 300 MM Senior LTD
• 10.5 Interest Cash
• 222 MM Convertible preferred stock (6/30/09)
• 12 Coupon - PIK
• 35 MM Revolver Up for Redetermination
• 17 MM borrowed
• 12.8 MM Cash (6/30/09)

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Overview

• Critical mass built through the Acquisition of
  under-exploited and under-explored Gulf Coast
  legacy fields
• Focused on Exploration, Exploitation
  Development activity in South Louisiana and the
  Texas Gulf Coast
• Prolific inventory of Exploration, Development
  and Workover Opportunities to Add Reserves and
  Grow Production through applied Drilling and
  Imaging Technology

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Field Areas
Bayou Choctaw NW
Chocolate Bayou
Abbeville
North Broussard
Hitchcock NE
Comite
Lake Arthur
Columbus
Houston Headquarters
Murphy Lake
Manchester SW
Toro Grande
Bayou Couba
Welder Ranch
Live Oak
High Island 30
Leeville
East Lake Sand
Lake Boeuf SW
Garden Island Bay
South Florence
Alvin Townsite Prospect
Bateman Lake
Pearsall
Exploration Potential
Exploitation Focus
Malo Domingo
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Field Characteristics

• Large acreage tracts with high Working Interests
• More than 90 of wells operated
• Re-completion, PUD and Extension Opportunities
• Significant Deeper Exploration Upside
• Attractive Margins with sustainable Cashflow
• Legacy assets of Major oil companies
• Capital and Technology Starved
• Sparsely drilled at depth

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Garden Island Bay

• PROJECT FACTS
• Newly reprocessed seismic data
• Significant subsalt potential
• Over 22 MMBOe shallow potential
• OWNERSHIP
• 100 W.I.
• Operator
• 16,600 acres
• CURRENT STATUS
• 30 wells producing 900 BOPD 1.5 MMCFG/D
• 2009
• 9000 Acre Subsalt Joint Venture commenced

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Garden Island BayBuilding Block Prospects
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Garden Island Bay Shallow Prospect Inventory
100 Unrisked
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Garden Island BayProposed 2009 Drilling
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Garden Island BaySubsalt Marketing Program
Subsalt Exploration Partnership formed to Market
Explore Deep Potential ( 9,000 acres.).
Retained 15 Working Interest plus Promote
yields /- 20 Interest
Merged Big Hum and NE Subsalt Prospect Maps /-
500 BCFe Potential
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Chocolate Bayou Field

• Working interest varies from 20 to 100 in
  1,281 acres are held under lease.
• Recently reprocessed Depth-migrated seismic data
• Successfully drilled and completed the Wieting
  30 well.
• The Wieting 32 well will test the 12,600 S
  sand and will be drilled on a 21 promoted basis
• The Wieting 33 well will test the Andrau sand
  and the large exploratory potential (gt30 BCF) in
  the deeper IP Farms section on a 50 WI basis.
  Drilling is anticipated in late 2009 or 2010.

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2009 Drilling Program
10,100 MD, Estimated DHC of 1.2 MM. 100
Reserve Potential 150 MBO (100 WI, 76 NRI)
10,900 MD, Estimated DHC of 1.4 MM. 100
Reserve Potential 6.3 BCFe (77.6 WI, 79.6 NRI)
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Financial and Operating Results
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Mid-Year Reserves
PV-10 based on June 30, 2009 NYMEX Strip
Pricing Net Interest after Industry Joint
Ventures
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Looking Ahead

• 2009 Operations
• Manage Program to Available Cash, Cash Flow and
  Revolver Availability
• Continue Organic Growth
• Define and Exploit Deeper Pool Opportunities
• Add new Projects within Core Areas
• Joint Venture Exploration Programs
• Promote Existing Interests