1

Tall Cotton CO2 EOR ROZ Greenfield Flood

John AllisonFirethorn Petroleum

Steve MelzerAPTA and Melzer Consulting

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ROZ Projects in the Permian Basin

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Peripheral Greenfield ROZ(Geo Allen)

Goldsmith Brownfield ROZ CO2 Flood & Gas Lift

Key ROZ Project LocationsAnd Tall Cotton Project

Tall Cotton Greenfield CO2 Flood

ROZ

Horizontal Depressuring (DUROZ)

Seminole San Andres Unit CO2

Flood

4Ref: Kinder Morgan Investor Conf - Jan ‘17

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Tall Cotton Map, Gaines Co. In the San Simon Channel Separating the CBP from the NW Shelf

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Tall Cotton N-S Cross Section6

Structurally Low GREENFIELD Area with Massive Thick Dolomite, Good Oil Sat over 300’ – 400’PROVEN OIL RESPONSE

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(Regional)

Structure on Top of the San Andres Porosity

W. Seminole (SA) Field

Riley, N (Clearfork)

Field

-1700

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Corrected Whole Core

Saturations in the Vicinity of

Tall Cotton

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Anschutz Keating Mud Log9

Gas show ~125’

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Kinder Morgan’s Greenfield ROZ CO2 EOR Project Gaines County, Tx (as of mid-year ’17)

KM's Tall Cotton Pure Greenfield ROZ Project Production History

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

Oct-

14

Dec-1

4

Feb-1

5

Apr-

15

Jun-1

5

Aug-1

5

Oct-

15

Dec-1

5

Feb-1

6

Apr-

16

Jun-1

6

Aug-1

6

Oct-

16

Dec-1

6

Feb-1

7

Apr-

17

Mo-Yr

Oil P

rod

ucti

on

in

bo

pd

0

2

4

6

8

10

12

14

16

18

20

22

Pro

du

cin

g W

ell C

ou

nt

Oil Production in Bbls/Day

Producing Well Count (Rt Scale)

CO2 Injection

Begins (11/14)

20,000 BWPD

~30,000 MCFD CO2 Recycle

11

Tall Cotton Summary

• Nearby Vertical Wells Essentially Dry Holes

• Structurally Disadvantaged

• 400’ of <30% Oil Saturation

• Classical Greenfield ROZ

• CO2 EOR Project Implemented with 1st

Injection 11/14, Phase 2 Implemented now

• Currently Producing 70,000 bopm – averaging 100 bopd/well

• Forecasted to be ½ of KM’s oil production in 10 years