Natural Gas Update: Challenges Persist

This slide shows the decline profile for gas wells for their given year of completion. As you will see, the younger the vintage, the sharper the rate of decline. There are two key reasons for this increasing rate of decline:

• The new field discoveries tend to be smaller in size
• Drilling and completion technological advances have enable higher flow rates, resulting in shorter reserve lives versus older vintages.

This means that drilling rates will have to increase to meet projected demand, as indicated on the previous slide.