Regions

El Paso Exploration & Production Company is well-situated in key U.S. basins and operates offshore Brazil and onshore in Egypt. Across our programs, we’re focused on unconventional and low-risk conventional programs that deliver consistent, repeatable results.

Western Division
Our operations in the Western Division focus on oil, unconventional resources such as coal seam methane and shale gas, and lower-risk conventional producing areas. Our program includes a large inventory of drilling prospects in this division where we typically record lower development costs, higher drilling success rates (100 percent as of the third quarter of 2009), and longer reserve lives. In 2009, we invested $190 million on capital programs in this division and our production averaged 154 million cubic feet equivalent per day.

Geographically, our operations are centered two key areas in the Western Division.

• Rockies. We operate primarily in Wyoming and Utah with a focus in the Powder River and Uintah basins. We operate oil fields in the Rockies, using both primary and secondary recovery production techniques. We also hold interests in non-operated coalbed methane fields in this area.
• Raton Basin. In this area, we’re focused on coalbed methane production in northern New Mexico and southern Colorado, including Vermejo Park Ranch.

We also completed a bolt-on acquisition in this division in late 2009 that expands our leading position in the Altamont-Bluebell field through inventory growth and overall efficiencies and operational control in the field.

• Flying J Acquisition. We acquired the oil and gas subsidiary of Utah-based Flying J Corporation, with the majority of the assets acquired in the transaction located in the Altamont-Bluebell field. The acquisition included about 250 locations, total proved oil reserves of 70 Bcfe, and current production of about 9 million cubic feet equivalent per day, as well as significant unproved inventory.

Central Division
In our Central Division, operations focus on unconventional resources such as tight-gas sands, coalbed methane, and shale gas as well as lower-risk conventional production. Our focus on these resources lets us take advantage of lower development costs, higher drilling success rates (100 percent through the third quarter of 2009), and longer reserve lives. We have a large drilling prospect inventory in this division. During 2009, we invested $376 million on capital projects in the Central Division and our production averaged 257 MMcfe/d.

Geographically, our operations in this division are centered on three key areas.

• Arklatex. We have concentrated land positions focused on tight-gas sands production in the Travis Peak/Hosston, Bossier, and Cotton Valley formations. We also have a growing program of production and development activities in the Haynesville Shale.
• Black Warrior Basin. We operate in established, shallow, coalbed methane producing areas in northwestern Alabama.
• Arkoma Basin. We focus on development projects in this area, primarily in Oklahoma, where we use horizontal drilling technology in the Hartshorne Coals for coalbed methane production. We also focus on development in the New Albany Shale in southwestern Indiana.

Gulf Coast Division
Our Gulf Coast Division includes our operations in the Texas Gulf Coast, Gulf of Mexico, and south Louisiana regions. In the Texas Gulf Coast area, we develop and explore for tight gas sands in south Texas and the upper Gulf Coast of Texas. Our Gulf of Mexico and south Louisiana operations are characterized by relatively high initial production rates, resulting in higher near-term cash flows and high decline rates. During 2009, we invested $290 million on capital projects and production averaged 268 MMcfe/d. We had an 80 percent drilling success rate in this division through the third quarter of 2009.

Geographically, our operations in this division focus on five key areas.

• Vicksburg/Frio Trends. Our assets are highly concentrated in this area which is located in south Texas. We operate in the Jeffress and Monte Christo fields primarily in Hidalgo County. We also have assets in the Alvarado and Kelsey fields in Starr and Brooks counties.
• Upper Gulf Coast Wilcox. Our operations are located onshore Texas Gulf Coast in the Renger, Dry Hollow, Brushy Creek, and Speaks fields located in Lavaca county, and Graceland Field located in Colorado county. We also own about 132,000 net acres in the emerging Eagle Ford Shale in south Texas.
• South Texas Wilcox. Assets in this area include working interests in the Bob West, Jennings Ranch, and Roleta fields in Zapata County. We also have working interests in the Laredo and Loma Novia fields in Webb and Duval counties.
• Gulf of Mexico. In this area, we have drilling interests in more than 80 blocks south of the Louisiana, Texas, and Alabama shorelines and focused on deep (greater than 12,000 feet) natural gas and oil reserves in relatively shallow water depths of less than 300 feet.
• South Louisiana. We operate primarily in Vermilion Parish and associated bays and inland waters in southwestern Louisiana.

International

• Brazil. Our Brazilian operations cover about 139,000 net acres in three blocks and nine development areas in the Camamu, Espirito Santo, and Potiguar basins located offshore Brazil. During 2009, we invested $155 million on capital projects in Brazil, and our production averaged 12 MMcfe/d.
• Egypt. Our Egyptian operations cover about 1.4 million net acres in two blocks located primarily onshore in Egypt’s Western Desert. During 2009, we invested $81 million on capital projects in Egypt.

*Cautionary Statement Regarding Forward-looking Statements