Credit Suisse Investment Banking Pitch Book
Preliminary illustrative Maine royalty sensitivity analysis
Royalty payment based on revenue from ultra-deep prospects for 2012 and sensitivity for royalty trust duration
■ Preliminary analysis based on 4% royalty and 12% discount rate for illustrative purposes; forward curve pricing as of 11/23/12
Implied Maine case
Royalty
trust
duration
(years)
Royalty
trust
duration
(years)
WTI oil
Nat. Gas
Royalty
trust
duration
(years)
10
15
20
25
Maine management resource estimate and illustrative 10% risking
WTI oil
Nat. Gas
10
15
20
25
CREDIT SUISSE
Forward curve
pricing
10
15
20
25
$0.81
1.37
1.50
1.50
Forward curve
pricing
WTI oil Forward curve
Nat. Gas
pricing
Maine management resource estimate and illustrative 30% risking
(1)
$1.18
2.03
2.22
2.22
(2)
$100.00
4.00
$0.66
1.08
1.17
1.17
$3.53
6.09
6.67
6.67
$100.00
4.00
$0.96
1.59
1.74
1.74
$100.00
4.00
$2.87
4.78
5.21
5.21
$110.00
5.00
$0.80
1.31
1.43
1.43
$110.00
5.00
$1.16
1.94
2.12
2.12
$110.00
5.00
$3.49
5.83
6.35
6.35
Commodity price
$120.00
6.00
$0.94
1.55
1.69
1.69
$120.00
6.00
$1.37
2.29
2.50
2.50
$120.00
6.00
$4.11
6.87
7.49
7.49
$120.00
7.00
$1.06
1.76
1.92
1.92
$120.00
7.00
$1.56
2.61
2.85
2.85
$120.00
7.00
$4.67
7.83
8.55
8.55
$120.00
8.00
$1.19
1.98
2.16
2.16
$120.00
8.00
$1.74
2.93
3.20
3.20
$120.00
8.00
$5.23
8.79
9.60
9.60
Based on ultra-deep resource potential and resource risking values implied by a $1.50 per share value for a 4% override
royalty interest on ultra-deep resource production and 20 year duration; implied 4.3 Tcfe of net risked resource potential in
ultra-deep assuming 12% discount rate for illustrative purposes.
Based on net unrisked resource estimate of 63.7 Tofe per Maine management, including Davy Jones.
$120.00
9.00
$1.32
2.19
2.39
2.39
$120.00
9.00
$1.93
3.25
3.55
3.55
$120.00
9.00
$5.80
9.75
10.65
10.65
Confidential
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