Aspect Energy, LLC IPAA April 18, 2005 Donald D. Wolf

1. Aspect Energy, LLCIPAAApril 18, 2005Donald D. Wolf

2. Aspect Energy Overview • Aspect Energy, LLC – Founded 1993 • 75 Employees • Alex Cranberg – Founder/Chairman • Don Wolf – President & CEO • Current production: 60 MMCFDE • Sold all production to Noble year-end 2001 • Capex budgets $100 MM - $150 MM / Year • Primary Value Driver: Exploratory Drilling

3. Aspect’s Exploration • Focus: Upper Texas Gulf Coast / South Louisiana • Complex structure • Multiple objectives • Direct seismic detection • Hi flow rates / Henry Hub prices • Land availability • Corporate Positioning • Drilled 400 gross wells in region since 1997 • Greater than 60% success rate • Dominant seismic position – 12,000 square miles • Over 300 prospects in inventory • Extensive database

4. Aspect has an Industry-Leading Libraryof Gulf Coast 3-D Seismic Data Louisiana New Orleans Texas Houston Seismic Data Total Proprietary: 2,561 Sq. Mi. Total License: 836 Sq. Mi. Total Spec: 8,208 Sq. Mi. Total Access Only: 26 Sq. Mi. Total-to-Date: 11,631 Sq. Mi.

5. Aspect has Extensive Geophysical and Geological Databases Geologic Data Logs (Depth Registered Raster Images) 67,000 Paleo 8,000 Scout Tickets 50,000+ Side Wall Cores 1,441 Satellite Imagery 1,350 mi2 LAS Files 900+ Directional Surveys 500 Checkshot Surveys 250

6. Private Capital for Exploration • People • Track record of consistent success • References – peers, consultants, competitors • Depth of organization and history • Helpful to invest alongside • Plan:Starter / Big Idea / Demonstrable Strategy • Niche ideas • Secured opportunity • Resource play • Acquisition

7. Private Equity - Exploration Observations • Private Equity for Exploration is Difficult • Demonstrate probabilities of success, history of success and prognosis for continuity • Opportunities should be identified and, if possible, secured • Risk reduction program facilitates funding • Combine with acquisition/exploitation program • Add resource play • Promote piece to industry partner • Incentive performance structure

8. Private Equity - Exploration Observations, cont’d. • Private Equity is Costly and Time Sensitive • Preferred IRR’s most common • Balance upside vs. holding cost • Management’s reversionary interests may be lost or created by prices alone • Equity funds have limited lives • Monetization important to sponsors • Trend to monetize sooner at smaller sizes • Alternate option: Issuance of Common Stock • Generally smaller issues • Each issue can have unique conditions • Additional shares at higher prices • More shareholders / different profile • Other options • Mezzanine debt with ORR or equity kicker • J.V. partnership - cash and carried working interests