BURLINGTON
RESOURCES
ATTRIBUTES OF PERSONAL SUCCESS
You’re Selling, Somebody is Buying
Entrepreneurial Spirit is Critical
Accountability
BURLINGTON
RESOURCES
ATTRIBUTES OF BUSINESS SUCCESS
Understand Your Market
Differentiate Yourself
See the Future
It’s not Just the Idea.........
BURLINGTON
RESOURCES
CORPORATE HISTORY
Burlington Northern Unicon
Resources Division Continuing
Southland BR & Louisiana Western Canadian
Royalty Land and expansion,
Diamond Shamrock BR acquires
Milestone Offshore Exploration merge Canadian Hunter
Petroleum
BURLINGTON BR expands to
MERIDIAN RESOURCES Western Canada
OIL through agreement
to purchase
Poco Petroleums
El Paso
Exploration
Union Texas
Petroleum
1900 -------- 1978 -------1984 ---- 1985 ---1986 ------ 1990 ------- 1994 -------- 1996 --------- 1997 --------------------------10/97-------------- 1999------------2001
Burlington Resources Formed in 1988
BURLINGTON
RESOURCES
COMPANY SUMMARY
Market Capitalization, $B 7.0
Enterprise Value, $B 11.3
2001 Cash Flow, $B 1.9
Reserves, TCFE 11.8
Production, BCFE/D 2.7
Annual Drilling Program (#Wells) 600-800
BURLINGTON
RESOURCES
2002 CAPITAL PROGRAM
$1.3 Billion Total
30% 40%
U.S.
Canada
Other International
30%
BURLINGTON
RESOURCES
RESERVES POSITION
11.8 TCFE
North American Gas
16%
North American Oil
72% International Gas
8% International Oil
4%
BURLINGTON
RESOURCES
PROVED NORTH AMERICAN GAS RESERVES
10
9
8
7
6
TCF
5
4
3
2
1
0
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
BURLINGTON
RESOURCES
NORTH AMERICA NATURAL GAS POSITION
Largest of U.S. Independents
RESERVES PRODUCTION (2Q 2001)
(TCF) (BCF/D)
35 6
30.1
30 4.8**
4.2
25
4 3.2
20 16.6 2.8
14.5
15 2.2 2.1 2.1 2.1**
9.5 2
10 8.5 7.9 6.2 6.1
5
0 0
*COC/P
PEMEX
APC
*COC/P
PEMEX
*CHV
BP
*CHV
*DVN
XOM
BP
*DVN
BR
XOM
BR
RD
*Includes recent acq./mergers, reserves are 2000 reported
**Year-end 2000 producti on figure
Sources: JS Herold & Annual Reports, as of 12/31/00
BURLINGTON
RESOURCES
GLOBAL OPERATIONS
CANADA
EAST IRISH SEA
U.S.
EGYPT CHINA
ALGERIA
PERU
ECUADOR
GABON
Gas
Oil
ARGENTINA
BURLINGTON
RESOURCES
CORE AREAS
WESTERN
CANADA
ROCKY
MOUNTAINS
SAN JUAN
BASIN
BURLINGTON
RESOURCES
COMPETITIVE ADVANTAGES
Program Drilling
Cost Control
Operational Expertise
BURLINGTON
RESOURCES
SAN JUAN BASIN
Fruitland Coal
Pictured Cliffs
Lewis Shale / Chacra 1200’ - 1500’
Mesaverde 800’
Mancos / Niobrara 1500’ - 1700’
Dakota
BURLINGTON
RESOURCES
SAN JUAN BASIN: New Mexico / Colorado
Operated Gas Production, MMCF/D 1,200
Operated Wells 6,500
Projects per Year 800
BURLINGTON
RESOURCES
GAS PRODUCTION GROWTH
San Juan Example
900 750-800
Conventional (Tight Gas)
800
700 Coalbed Methane
600
500
400
300
200
100
0
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
BURLINGTON
RESOURCES
SAN JUAN COST PERFORMANCE
Mesaverde Average Well Cost ($ Thousand)
486
375
1995 1998
23% cost reduction over 3 years
BURLINGTON
RESOURCES
SAN JUAN PRODUCTION MANAGEMENT
Mesaverde 80-Acre Infill Progam
Study Area Pressures
Recovery
@ 160-acre 1,225
Resource Spacing
49% 44% 950
300
Incremental Recovery @
80-Acre Spacing 1950s 1998 Abandonment
7%
Estimated Gas-in-Place: 28.5 TCF
BURLINGTON
RESOURCES
MADDEN FACILITY: Fremont Co., WY
BURLINGTON
RESOURCES
WIND RIVER BASIN: Madden Field
Management Challenges
Drilling Depths and Costs
Pipeline and Processing Infrastructure
Geophysical Interpretation
Reservoir Management
BURLINGTON
RESOURCES
MADDEN FIELD: Lower Ft. Union Drilling Costs
Reduced Drill Time - 23 Days
0 Gross Cost Savings - $600M/Well
2,000
Depth (Feet)
4,000
Pre-1998
6,000 Current
8,000
10,000
0 5 10 15 20 25 30 35 40
Days
BURLINGTON
RESOURCES
MADDEN FIELD: Wind River Basin, WY
BH 6-27
4-36 TD ~ 25,855 ft.
7-34 1-5 5-6
2-3
LOST CABIN BH 8-35 N
GAS PLANT
Drilling
Proved Reserves
Probable Reserves
BURLINGTON
RESOURCES
MADDEN FIELD: Madison Drilling Costs
Completed & Tied-in Cost ($MM)
0
Bighorn Madison
5,000
#4-36 #5-6
10,000 40.3 30.7
Depth (Feet)
4-36
15,000 Actual
20,000 5-6
Actual
25,000
30,000
0 50 100 150 200 250 300 350 400 450 500
Days
BURLINGTON
RESOURCES
TOTAL MADDEN PRODUCTION
(MMCF/D)
300
250
200
150
100
50
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
BURLINGTON
RESOURCES
WHY CANADA?
Competitive Advantages
Large Natural Gas Resource
Changing North American Supply/Demand Picture
BURLINGTON
RESOURCES
HENRY HUB : Gas Prices
1999 NPC Projections
6.00
5.00
Price (Nominal $/mmbtu)
4.00
3.00
2.00
1.00 Actual
'99 Reference
0.00
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
BURLINGTON
RESOURCES
HENRY HUB : Gas Prices
1999 NPC Projections
6.00
5.00
Price (Nominal $/mmbtu)
4.00
3.00
2.00
Historical
'99 Reference
1.00 Actual
Forward Strip
0.00
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
BURLINGTON
RESOURCES
CANADIAN STRATEGY
ALBERTA
DEEP SHALLOW
GAS GAS &
HEAVY OIL
Edmonton
SASKATCHEWAN
BRITISH
COLUMBIA
Calgary SHALLOW GAS
SHALLOW & CONVENTIONAL OIL
GAS
BURLINGTON
RESOURCES
ACQUISITION OF POCO PETROLEUM
ALBERTA Poco Petroleum
SASKATCHEWAN
BRITISH
COLUMBIA
BURLINGTON
RESOURCES
CANADA: Gas Production
600
20% Avg. 473
500
Avg. 397
MMCF/D
400
300
200
100
0
1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01E
*4th Quarter 2001 does not include the acquisition of Canadian Hunter
BURLINGTON
RESOURCES
ACQUISITION OF CANADIAN HUNTER
ALBERTA Poco Petroleum
Canadian Hunter
SASKATCHEWAN
BRITISH
COLUMBIA
BURLINGTON
RESOURCES
CANADIAN HUNTER: Deep Basin Land
BURLINGTON
RESOURCES
DEEP BASIN OVERVIEW
San Juan Basin
Gas Fairway
BURLINGTON
RESOURCES
CANADIAN HUNTER GAS PRODUCTION
600
500
+14% / YR
MMCF/D
400
300
200
100
0
1997 1998 1999 2000 2001E
BURLINGTON
RESOURCES
CURRENT CANADIAN LAND POSITION
ALBERTA Poco Petroleum
Canadian Hunter
Chevron JV Lands
ATCO Viking Kinsella
SASKATCHEWAN
BRITISH
COLUMBIA
BURLINGTON
RESOURCES
CHINA: Sichuan Basin
QIULIN
XiangXi Prospect
JUNGGAR
TUHA Beijing
TARIM
QAIDAM ORDOS
Shanghai
Chengdu
SICHUAN
500 miles
Hong Kong
Significant Resource Basin
BR Core Competency:
Tight Gas
Gas Market Potential
CHUANZHONG BLOCK
1.8 MILLION ACRES
BURLINGTON
RESOURCES
SUMMARY
One of Largest U.S. Independents
Proven Gas Development Expertise
Focused on Efficiency
Committed to North American Natural Gas
BURLINGTON
RESOURCES
BURLINGTON
RESOURCES