SLA Wilcox

In October 2011, we announced a new oil-directed program that we have been actively pursuing in South Louisiana, just outside the Lake Charles area. The announcement was the culmination of work on our South Louisiana Wilcox play that began more than two years earlier. We developed the play by leveraging the Wilcox experience of our South Texas employees and our seismic processing team. Over a two year period our team acquired interest or options in a 150,000 net acres and shot more than 1,000 square miles of 3D seismic covering our acreage position. The Wilcox is a conventional play with repeatable characteristics, making it a good fit for our strategy. We are able to use lower cost drilling rigs in the Wilcox because we didn't compete for horizontal shale rigs in the area, and we receive favorable pricing for the liquids we produce thanks to the Wilcox's proximity to the Henry Hub pricing point.