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“Building Value By Adding Value”
IPAA Oil & Gas Investment SymposiumApril 19-21, 2004
Except for historical information contained herein, statements in this presentation, including information regarding the business of the
Company, may be “forward looking statements” within the meaning of the federal securities laws. Forward looking statements involve known and unknown risks and uncertainties that may cause the Company’s actual results in future periods to differ materially from forecasted
results. Factors that can affect the Company’s ability to achieve forecasted results are described in the Company’s annual report on
Form 10-K and quarterly reports on Form 10-Q. Such factors include, among others, uncertainties inherent in cash flow and reserves, the
operating risks of oil and natural gas operations, the volatility of oil and natural gas prices, the need to replace reserves depleted by production,
competition and the potential impact of government regulations, litigation and environmental matters. These factors may result in
revisions of the Company’s operating plans as described herein and elsewhere. The Company has no obligation to update the information
contained in nor the statements made during this presentation.
Founded 1908 Exceptional long-term return to
shareholders 16% annual compounded return
Strong Balance Sheet 20% net debt to capital
Low / moderate risk core drilling Exposure to large potential ideas Solid Growth
St. Mary Land & Exploration Company
2003 2 Years 5 Years
Finding Cost $1.05 $ 1.09 $ 1.09
Replacement % 293% 298% 274%
Core Areas of Operations
26%
11%
48%
9%6%
Midcon ArkLaTex Rockies Permian G. Coast
Reserve Base- 1/2004
594 BCFE
52% Gas
89% Developed
Competitive Advantages
Proprietary ability to process / interpret 3D -
WillistonStimulation techniques
Quick, fast, disciplined
We don’t make big mistakes
-20%
-10%
0%
10%
20%
30%
40%
SM
Source: John S. Herold Financial & Operational Database & JSH Analysts
STOCK APPRECIATION – CAGR 6 YEARS1996-2002
0%
100%
200%
300%
400%
500%
600%
S&P NASDAQ PEERS ST. MARY
0%
100%
200%
300%
400%
500%
600%
S&P NASDAQ PEERS ST. MARY
STOCK PERFORMANCE FROM DECEMBER 1992THROUGH MARCH 8, 2003
0%
100%
200%
300%
400%
500%
600%
S&P NASDAQ PEERS ST. MARY
Buyback of Flying J Stock – 2003 WOW
Adj buyback12/31/2003 12/31/2002
WC+restricted cash 13,640 2,050 11,590 FJ Note Receivable - - Long-term debt (130,102) (113,601) (16,501) Other non-current (12,626) (5,727) (6,899)
(129,088) (117,278) (11,810) Unproved properties 61,323 47,984 13,339 Net Assets (Liabilities) (67,765) (69,294) 1,529 2%
Shares outstanding 28,242 27,973 269 1%
Change
Note: analysis excludes Asset Retirement Obligation and Def Taxes.
Buyback of Flying J Stock – 2003 WOW
Adj buyback12/31/2003 12/31/2002
WC+restricted cash 13,640 2,050 11,590 FJ Note Receivable - - Long-term debt (130,102) (113,601) (16,501) Other non-current (12,626) (5,727) (6,899)
(129,088) (117,278) (11,810) Unproved properties 61,323 47,984 13,339 Net Assets (Liabilities) (67,765) (69,294) 1,529 2%
Shares outstanding 28,242 27,973 269 1%
Reserves (MMCFE) 593,744 490,887 102,857 21%
Change
Buyback of Flying J Stock – 2003 WOW
Adj buyback12/31/2003 12/31/2002
WC+restricted cash 13,640 2,050 11,590 FJ Note Receivable - - Long-term debt (130,102) (113,601) (16,501) Other non-current (12,626) (5,727) (6,899)
(129,088) (117,278) (11,810) Unproved properties 61,323 47,984 13,339 Net Assets (Liabilities) (67,765) (69,294) 1,529 2%
Shares outstanding 28,242 27,973 269 1%
SEC PV10 1,278,165 824,808 453,357 55%
Change
2004 Capital Program: $273 MM
$100
$59
$52
$10
$18
$22 $12
Acquisitions
MidContinent
Rockies
Permian
Gulf Coast
ArkLaTex
CBM
100% Well Unrisked Well
Cost Costs Potential
James Lime Horizontal 6,518$ $1MM 1.5 -2.3 BCFE
Other Dev Drlg 5,496 $.9 - $1.6MM 1.0 - 1.6 BCFE
(Beth Longst; Dykesville; Terryville)
Exploration 5,811 $.8 - $1.1MM .9 - 1.7 BCFE
LH, Seismic, Other 3,800
21,625$
ArkLaTex Region
ArkLaTex$22
Rockies$52
Mid-Con$59
Acq.$100
G. Coast$18
CBM$12
Permian$10
James Lime Horizontal Trend
James Lime Horizontal Trend
WELL WI GAS (MCFED)
USA 2-H 80% 3,800
USA 3-H 80% 5,500
USA 4-H 80% 2,200
USA 5-H 80% 3,200
USA 6-H 80% 1,200
USA 7-H 80% 1,900
USA 8-H 80% 1,025
DeSoto Parish Sch. Bd. 100% 3,000
0
2000
4000
6000
8000
10000
12000
14000
16000
180000 5 10 15 20 25 30
Days since Spud
Cu
m M
easu
red
Dep
th
Original Plan
USA #2H
USA #3H
USA #4H
James Lime Horizontal Trend
Grew out of King Ranch acquisition
Focus on exploitation
$18.4 MM budget - 29% at Judge Digby
Gulf Coast / GOM
ArkLaTex$22
Rockies$52
Mid-Con$59
Acq.$100
G. Coast$18
CBM$12
Permian$10
Gulf Coast / GOM
ArkLaTex$22
Rockies$52
Mid-Con$59
Acq.$100
G. Coast$18
CBM$12
Permian$10
100% Well Unrisked WellCost Costs Potential
Judge Digby 4,307$ $22MM 20 BCFEHigh Island - Miami #3 1,725 $7.5MM 10 BCFELive Oak 1,328 $1.5MM 7.2 BCFEVerm 273 - offshore 1,186 $3.1MM 4.6 BCFEMermentau play 1,245 $3.2MM 8.6 BCFEOther 5,037 $1 - $3.5MM 1 - 9 BCFELH, Seismic, Other 3,600
18,427$
Judge Digby 10%-20% WI 2003
1 new well – 4 MMCFD 2001 and 2002 wells
Wurtele #3 – 55 MMCFD Majors #4 – 36 MMCFD J. Wurtele #1 – 66 MMCFD Parlange #12 – 67 MMCFD J. Wurtele #2 – 45 MMCFD
Parlange 11 - 92 MMCFD Largest initial rate in history of Louisiana
Gulf Coast / GOMArkLaTex
$22Rockies
$52Mid-Con
$59Acq.$100
G. Coast$18
CBM$12
Permian$10
Judge Digby Nearing end of new development wells Recompletions will dominate activity in future years
Gulf Coast / GOMArkLaTex
$22Rockies
$52Mid-Con
$59Acq.$100
G. Coast$18
CBM$12
Permian$10
Judge Digby
Fee Property Seismic
14,969 acres optioned
25% Royalty w/ 25% participation option
$ 898K option and permit payment in 1Q/2003
New Dataset over entire Fee property
Data coverage over previously un-shot areas
Processed data received 1Q/2004
Fee Property 3-D
Fee Property 3-D
Big Blue FaultKey upthrown positionBayou Sale Field Pays
Bayou Sale Fault
Deep Upthrown TargetsMA and Rob Chambersi Objectives
NorthSouth
Rockies Region
ArkLaTex$22
Rockies$52
Mid-Con$59
Acq.$100
G. Coast$18
CBM$12
Permian$10
100% Well Unrisked WellCost Costs Potential
Williston - drilling 27,735$ Red River $1.6MM 2.5 BCFE Bakken dual lateral $2.4MM 1.8 - 3.0 BCFE Bakken single lateral $1.8MM 1.7 - 2.5 BCFE Bakken re-entry $1 MM 1.1 - 2.3 BCFEWyo - Greater Green River 6,057 $.9 - $1.2MM .7 - 1.1 BCFEWyo - Other 4,328 $.8 - $1.2MM 2.5 BCFERecompletion / facility 4,875 Seismic 4,706 LH, Other 4,000
51,701$
Hottest play in Williston at present time
Drilling horizontally in silty dolomite under Bakken Shale
BAKKEN Gets A New Life
Rockies Region – Bakken Play
Permian Region
ArkLaTex$22
Rockies$52
Mid-Con$59
Acq.$100
G. Coast$18
CBM$12
Permian$10
100% Well Unrisked WellCost Costs Potential
Parkway waterflood - 6 infill 1,283$ $3.9MM 10 BCFEShugart waterflood-4 inj 1,310 $1.8MM 2 BCFEE. Vincent - 4 Canyon wells 1,080 $2.4MM 3.6 BCFEKelly Snyder - 3 Canyon wells 810 $1.8MM 2.6 BCFESamboca - 2 wells contingent 975 Other 3,671 LH, Seismic, OH 925
10,054$
Permian Region
ArkLaTex$22
Rockies$52
Mid-Con$59
Acq.$100
G. Coast$18
CBM$12
Permian$10
The Parkway Delaware Unit has seen tremendous
waterflood response.
SMLE W. I. = 32.4%
The East Shugart Delaware Unit is anticipated to perform
very similar to Parkway.
SMLE W. I. = 72.7%
Permian Region
Permian RegionEAST SHUGART WELLS #6, #7, #10 & #11UPDATED THROUGH JANUARY 31, 2004
1
10
100
1000
Dec
-85
Jun-
86
Dec
-86
Jun-
87
Dec
-87
Jun-
88
Dec
-88
Jun-
89
Dec
-89
Jun-
90
Dec
-90
Jun-
91
Dec
-91
Jun-
92
Dec
-92
Jun-
93
Dec
-93
Jun-
94
Dec
-94
Jun-
95
Dec
-95
Jun-
96
Dec
-96
Jun-
97
Dec
-97
Jun-
98
Dec
-98
Jun-
99
Dec
-99
Jun-
00
Dec
-00
Jun-
01
Dec
-01
Jun-
02
Dec
-02
Jun-
03
Dec
-03
Jun-
04
Dec
-04
Bar
rels
Oil
per
Day
100
1000
10000
100000
BW
IPD
, G
OR
(S
CF
/ST
B)
BOPD
GOR
BWIPD
47 wells (31 operated) 5-7 operated drilling rigs
Mid-Continent Region
100% Well Unrisked WellCost Cost Reserves
NE Mayfield 28,532$ $3.7-$7.1MM 3 - 6 BCFEAtoka 11,156 $2.5MM 2 BCFEGranite Wash 4,809 $1.3-$1.4MM 1.0 - 1.6 BCFEOsborne, R Fork, Cherokee 2,424 $.85 - $1.8MM 1.0 - 1.6 BCFEArkoma 4,516 $.7 - $1.7MM .8 - 1.5 BCFESeismic, LH, Other 8,000
59,437$
ArkLaTex$22
Rockies$52
Mid-Con$59
Acq.$100
G. Coast$18
CBM$12
Permian$10
NE Mayfield
Working Interest Location GAS (MCFED)
John Patrick 1-27 55% 27-11N-26W 5,700
Edwards 1-22 47% 22-11N-25W 2,300
Brothers 2-20 34% 20-11N-25W 11,800
Edgar 1 11% 25-11N-26W 5,600
Heinsohn 4-36 31% 36-11N-26W 12,500
Bess 1-26 58% 26-11N-26W 14,300
Molly "C" # 1 45% 35-11N-26W 4,200
Kathy # 1 10% 08-10N-25W 6,300
Dean 1-19 53% 19-11N-25W 20,000
John B 1-30 24% 30-11N-25W 9,000
Dykes 1-17 19% 17-11N-25W 20,600
Tipton 6-29 APO 04-11N-25W 1,600
Daniel 1-30 15% 30-11N-25W 1,500
Neil1-28 10% 28-11N-25W 4,200
Mary Lou 1-18 16% 18-11N-25W 1,400
Brothers 3-20 17% 20-11N-25W 1,600
2003 Completed Wells
NE Mayfield
Working Interest Location Status (MCFED)
Betty 1-19 55% 19-11N-25W Completing
Cynthia 3-21 30% 21-11N-25W 2,300
McEntire 1-27 53% 27-11N-26W Completing
Robert 5-36 31% 36-11N-26W 3,100
Keathley 1-8 10% 08-10N-25W Completing
Sites 1-8 39% 08-11N-25W Completing
Haag # 1-2 44% 02-10N-26W Drilling
Tipton 1-17 19% 17-11N-25W Completing
Brothers 4-20 17% 20-11N-25W Drilling
Robertson 1-6 89% 06-10N-25W Completing
Juanita 1-30 42% 30-11N-26W Drilling
Carolyn 1-23 14% 23-11N-26W Completing
Theresa 1-35 46% 35-11N-26W Drilling
Louella 1-33 31% 33-11N-26W Drilling
Coffey 1-16 21% 16-11N-25W Drilling
Dobson Ranch 1-31 28% 31-11N-26W Drilling
Atchley 1-34 38% 34-11N-26W Drilling
2004 Well Status
NE MayfieldNE MAYFIELD
NET PRODUCTION
0
5
10
15
20
25
30
1997 1999 2001 2003 2005 2007
MM
CF
ED
Net Production
NE Mayfield
NE Mayfield
NE Mayfield
NE Mayfield
NE Mayfield
NE Mayfield
NE Mayfield
NE Mayfield
NE Mayfield
139,000 net acres Pilot projects conducted since 2001
Evaluation limited to Wyoming acres
Coal Seams Evaluated Anderson, Canyon, Brewster-
Arnold, Nance, Roberts 2004
Begin development of 65,000 Wyoming acres
Estimate 147 BCF of Probable Reserves from targeted coals
Anticipate drilling ~100 wells Infrastructure
Other - Hanging Woman Basin
ArkLaTex$22
Rockies$52
Mid-Con$59
Acq.$100
G. Coast$18
CBM$12
Permian$10
Other - Hanging Woman Basin
Other - Hanging Woman Basin
HWB 160 ac Locations by Coal Seam
021
144
363
290
41 55
0 0 0
147
57
307
249
98
10 0
402
152
246
0
50
100
150
200
250
300
350
400
450
Montana Wyoming
2582 wells gross
Assumptions
>10’ thick
>200’ depth
>2 miles from outcrop
Economic Model
100% Well Reserves / Well Coal Seam Cost (000’s) (160 acre spacing)Anderson $ 70 - 90 60 - 185 mmcf
Canyon $ 75 - 90 105 - 160 mmcf Brewster-Arnold $ 85 - 110 155 - 285 mmcf
Nance $ 110 - 120 165 - 375 mmcfRoberts $ 155 - 170 445 - 480 mmcf
Other - Hanging Woman Basin
ArkLaTex$22
Rockies$52
Mid-Con$59
Acq.$100
G. Coast$18
CBM$12
Permian$10
Production - Daily (MCFE)
0
50,000
100,000
150,000
200,000
250,000
MC
FE
Per
Day
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Actual OK Sale S. Horseshoe Plan
2003 Results
Recurring Operations 2003 2002Revenues 365,114$ 185,670$ LOE + Tax (88,509) (50,839) G&A (25,179) (14,299)
251,426$ 120,532$ Net Income 95,575$ 27,560$
Production (MMCFE) 76,909 55,055
Per MCFERevenues 4.75$ 3.37$ LOE + Tax (1.15)$ (0.92)$ G&A (0.33)$ (0.26)$
3.27$ 2.19$
32% Q4 Production Growth
0
5,000
10,000
15,000
20,000
Q4-2002 Q4-2003
MM
CF
Base NE Mayfield Burlington Flying J
Financial Forecast
2004Production (BCFE) 78 - 82
Per MCFELOE + Tax $1.15 - $1.25G&A $.32 - $.37DD&A $1.10 - $1.20
Track Record 16% Compounded Return
Strong Balance Sheet Opportunistic Consistent and efficient
Strong Technical Expertise Combined with Creativity and Financial Discipline
Large inventory of prospects
Why Consider St. Mary?
www.stmaryland.com