“Perspectives on Montana’s Petroleum Industry”

MREA-MPA-MONTAX“Bridges to the Future” Conference

October 15, 2009

Dave BallardPresident

Ballard Petroleum Holdings LLCBillings, Montana

Presentation Overview

• Industry Overview and Economic Contribution• Meet the Producers• Producing Areas and Trends• Geologic Elements of an Oil Field• Regional Geology

• Field Examples and the Technology of Discovery and Production

• Have We Reached Peak Production?

Field Examples and the Technology of Discovery and Production

• Surface Geologic Mapping• Subsurface Geologic Mapping• Seismic Mapping• Shallow “Tight” Gas Frac Stimulation• Horizontal Drilling and Frac Stimulation• Waterflood Enhanced Oil Recovery• CO2 Flood Enhanced Oil Recovery• Sensitive Environment Operations

Subsurface Prospect Mapping ExamplesFred & George Creek (1963)

Bell Creek (1967)

Elm Coulee(2000)

Cutbank (1926)

Sumatra (1952)

Stratigraphically Trapped Oil

Example

Fred & George Creek Oil Field,Toole County,

MT

Sunburst –A Channel Map and

Cross Section

Discovered 1963 using subsurface

geologyFrom: Montana Geological Society, 2006, “Montana Oil & Gas Fields”

From: Montana Geological Society, 2006, “Montana Oil & Gas Fields”

Bell Creek Oil Field, Powder

River County, Montana

Muddy Sand Isopach Map

Discovered 1967 usingsubsurface

geology

Cum 132 MMBO

Bell Creek Oil Field, Powder River County, Montana

17 dry holes drilled in the area prior to discovery

NE Montana Red River Play Many small fields discovered using 2D and 3D seismic technology

Updated as of May, 2009

NE Montana Red River,

Bainville North Oil Field, NE Montana3D Seismic Survey

6.5 mi

5.2 mi

From: Sheridan, Montana Tech, “Geology of the Bainville North Oil Field”

Detailed Structure Map from 3D Seismic

From: S. Mogensen, St. Mary Land & Exploration Company