#1Alaska House Energy Committee Presentation Benjamin Johnson February 21, 2023 BlueCrest Energy Cook Inlet Basin Overview and Characterization Energy Supply/Demand Challenge Cosmopolitan Tyonek Gas Opportunity#2Alaska's Cook Inlet Basin Large northern fields discovered/developed in 1950's through 1970's Ninilchik developed in 2000 Cosmopolitan first oil production in 2016 Cosmopolitan Tyonek gas field is Proved Undeveloped Legend Gas fields. Oil fields Oil pipelines Gas pipelines Mean Winter Ice Southern Limit H Beluga River 1,402 bcf North Cook Inlet Tyonek 1,945 bcf Granite Point 158 mmbo+143 bcf Kitchen Lights Anchorage Swanson River 236 mmbo McArthur River 666 mmbo+1,550 bef Redoubt Middle Ground Shoal Nikiśki Marathon Refinery Marathon LNG Kenai Kenai Loop Kenai, Cannery Loop 2,796 bcf Cook Inlet Ninilchick 262 bef Cosmopolitan Anchor 20 mi. Point Deep Creek Best Cosmopolitan BlueCrest Energy Nikolaevsk North Fork Homer Energy Balance No connection to outside gas or electric power Gas production meets current local demand. But, through natural decline, gas production will eventually fall below demand without new Sources: • Infill development possibilities • • Typically smaller new volumes Alaska Gas Line future uncertain Importation of gas (LNG) is expensive Renewable sources cannot provide sufficient volumes of low-cost energy New gas discoveries will require years to find and then bring to production Substantial Cosmopolitan gas could be available before a shortage occurs • • Large Proved reserves Conventional development New investment is required Gulf of Alaska#32023-01-30 DNR Legislative Presentation: January 30, 2023 Indicates potential gas shortfall by 2027 FORECAST PROVED DEVELOPED & PROVED UNDEVELOPED Billion Cubic Feet 100 NW 22 g g g 2023 2024 Cook Inlet Gas Proved Developed & Proved Undeveloped (Truncated Mean Case) 2025 2026 2027 This does not include Proved Undeveloped Cosmopolitan Tyonek gas. 234 BCF 2028 2029 Proved Developed (Mean Case) Incremental Proved Undeveloped (Mean Case) 2022 Cook Inlet Gas Forecast 2030 2031 2032 2033 2034 2035 2036 2037 Demand 2038 2039 2040 2041 20 DEPAR NATURA#4Cosmopolitan Unit Oil & Gas Reservoirs Beneath the Cook Inlet Seabed (1,000'-7,000' Deep) (3 Miles) 39 999 Onshore Drilling/Production Facility BlueCrest Energy#5BlueCrest Energy Cosmopolitan Unit Development Concept: Separate Gas Field and Oil Field Future Offshore: Tyonek gas sands are too shallow to be reached from onshore wells. Dry gas production wells drilled into gas reservoirs and water injection wells into oil reservoirs to improve oil recovery. No offshore oil production. Additional Tyonek Gas Reserves: 234 BCF Proved-Undeveloped ("PUD") Plus large "Probable" and "Possible" (Ryder Scott engineering firm 2015-2021) Ongoing Oil: "Proved" - Partially Developed "Extended-Reach" oil wells drilled safely from onshore produce the deeper offshore oil with no danger of an offshore oil spill. Onshore Drilling/production Facility Subsea Pipeline Bundle: Dry gas to shore and water to platform Gas production wells Water Injection wells Dry Gas Reservoirs Oil Reservoirs "Fishbone" oil production wells Drilled from onshore#6Cosmopolitan Tyonek Gas is "Proved" but Undeveloped BlueCrest Energy Cosmopolitan (2013) State #1 Starichkof State #1 PENNZOIL (1967) H-04 "Fishbone" well Multiple wells have been drilled through the gas zones Multiple flow tests of the gas zones confirm high productivity Size and shape of the "trap" structure is clearly documented 3-D seismic data, more than 20 vertical wells drilled throughout the deeper oil zones below the gas zones • Gas zones are very similar to nearby Ninilchik field • Ninilchik is currently the largest Cook Inlet gas producer and has already produced more than 260 BCF 2013 Flow Tests#7West 1 of 12 gas sands shown 1 of 5 oil sands shown Existing Cosmopolitan Well Paths And Structure of Productive Sands East#8. Development of Cosmopolitan Gas Field • Reservoir shape, size, and productivity now well-defined • Gas production will require a small offshore platform • . • · Dry gas only - no liquid hydrocarbons Subsea pipeline: 3 miles to existing onshore facility • Recent sea floor surveys confirm safe pipeline route · Onshore facility is already connected into Enstar gas pipeline system Platform/facilities design and cost projections . Largely completed Platform gas wells - standard Cook Inlet drilling/completions • Time to first-gas: approximately 30-40 months from funding Designed to deliver up to 50 MMSCFD . ● Current Cook Inlet average daily demand is ~192 MMSCFD Cosmopolitan could help avert gas market shortages Critical path: Investor acceptance of new Alaska projects