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Williams Drilling and Production Operations in Piceance Basin: 2008 Update

Williams is actively engaged in drilling and managing natural gas production in the Piceance Basin. Currently, 25 drilling rigs operate across Garfield and Rio Blanco Counties, achieving depths from 5,400’ to 10,000’. With plans to drill over 500 wells in 2008 and 2009, Williams operates over 2,608 wells, producing 800 MMCFD and providing energy to more than 2.8 million homes. The company is expanding its facilities and focusing on high-efficiency rigs. They also prioritize community engagement through tours and local contributions.

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Williams Drilling and Production Operations in Piceance Basin: 2008 Update

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  1. Williams Current Drilling and Producing Operations • Currently have 25 drilling rigs operating in Garfield and Rio Blanco Counties. 16 in Valley and 9 in Highlands. • Drilling at depths ranging from 5,400’ in Grand Valley field in Garfield County to 10,000’ in Ryan Gulch in Rio Blanco County. • 2-6 wells per pad on conventional rigs and up to 10 to 22 wells/pad on new HP/SSD rigs, all are directional. • Currently over 2608 wells producing 800 MMCFD (750 MMCFD from the valley and 50 MMCFD from Highlands) which provides energy (heat) to over 2,800,000 homes. NW CO Forum 9/4/08

  2. Piceance Drilling and Plant Update • Plan for 2008 is to drill over 500 wells in Garfield and Rio Blanco Counties. Plan for 2009 is identical to 2008. • All ten new H&P Flex 4 rigs are currently operating. Conducting SIMOPS on all HP pads. 4 Nabors High efficiency Super Sundowner Rigs are operating. 60% of rig fleet are these high efficiency rigs. • Expanding new Parachute Creek Plant III facility to over 1 BCF processing capacity which should be complete in 2008. • Williams Midstream is looking to construct the Willow Creek Cryogenic Plant by 2009 in Rio Blanco County. NW CO Forum 9/4/08

  3. Exploration & Production Williams position 25 Rigs Operating in the Piceance Basin A Ryan Gulch/ A A Red Point A Rulison Field A A Trail Ridge A Allen Point A A A A A A A A Grand Valley Field A A A A A A A A A Parachute Field A 20 miles • 24th Year of Development 115,000 Net Acres • The largest natural gas producer in Piceance Basin • 800 MMcfd Gross Operated Production • Operate 2608 wells • Operate 250+ miles of gathering and 4 gas plants • Access to 5 major interstate/intrastate pipelines • Currently 25 drilling rigs operating Drilling Rigs (blue is new HP & Green is Nabors SD new rigs) AAA

  4. Community • Williams received an award from the COGCC for Community Counts. • Williams has taken over 600 people, including school groups, retirees, community members, regulators and others on tours of operations, the Wheeler Gulch road and tunnel. • Williams spent over $37,000 at the Rio Blanco, Garfield, and Mesa County Fair’s Junior Livestock sales. • Williams’ Donna Gray will be co-chairing Garfield County’s United Way campaign and Susan Alvillar is co-chairing Mesa County’s United Way campaign.

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