Regions

Our E&P business in the U.S. is managed as three geographic regions. Internationally, we also have a presence offshore Brazil and in Egypt. For the latest information regarding a specific region please see Recent Presentations in our Investor’s section.

Onshore
The Onshore region includes operations that are primarily focused on unconventional tight gas sands, coal bed methane, and lower risk conventional producing areas, which are generally characterized by lower development costs, higher drilling success rates and longer reserve lives. We have a large inventory of drilling prospects in this region. The business is relatively concentrated and managed in three operating divisions, which are Onshore – Western, Onshore – Central, and Texas Gulf Coast. Our current onshore assets are generally high-quality and more concentrated following our portfolio high-grading activities in 2007 and early 2008.

Gulf of Mexico/S. Louisiana

Our Gulf of Mexico and South Louisiana operations are generally characterized by relatively high initial production rates, resulting in near-term cash flows, and high decline rates. During 2007, we invested $309 million on drilling, workover, and facilities projects and production in the region averaged 191 MMcfe/d. After the divestitures early in 2008, assets in this region make up five percent of our portfolio. It is a concentrated set of assets with significant upside.

International
The key to international exploration and production for El Paso is to achieve repeatability and competency. We are in the stage of proving this now.

• In Brazil we have offshore positions along the coast of Brazil in three main basins: Potiguar, Camamu-Almada, and Espirito Santo. El Paso has more than 360,000 net acres of leasehold and produces about 14 MMcfe/d. We have about 250 Bcfe of proved reserves on the books, with considerable upside as our development and exploration activities advance in Brazil. In addition to the development projects we have underway in Brazil, we also have considerable exploratory potential remaining.
• Our Egyptian operations include a 20 percent non-operated working interest in approximately 13,000 net acres in the South Feiran concession located in the Gulf of Suez. We are currently in the seismic, exploratory drilling and evaluation phases of the project. In 2007, we received formal government approval and signed the concession agreement for the South Mariut Block. The block is approximately 1.2 million acres and is located onshore in the western part of the Nile Delta. We are currently performing seismic evaluations on the block and expect to drill our first exploratory well in late 2008.

*Cautionary Statement Regarding Forward-looking Statements