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Enercom Conference August 2009

Enercom Conference August 2009. Safe Harbor. This presentation contains projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the

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Enercom Conference August 2009

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  1. Enercom Conference August 2009

  2. Safe Harbor This presentation contains projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the Company’s current view with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved, and actual results could differ materially from those projected as a result of certain factors. A discussion of these factors is included in the Company documents filed with the Securities and Exchange Commission. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, or the solicitation of a proxy or an attempt to influence any voting of securities, by any person. August 2009

  3. Capital Structure • NYSE AMEX: DNE • 140 MM Primary Shares o/s • $17 MM Market Capitalization of common • $300 MM Senior LTD • 10.5% Interest – Cash • $222 MM Convertible preferred stock (6/30/09) • 12% Coupon - PIK • $35 MM Revolver – Up for Redetermination • $17 MM borrowed • $12.8 MM Cash (6/30/09) August 2009

  4. Overview • Critical mass built through the Acquisition of under-exploited and under-explored Gulf Coast legacy fields • Focused on Exploration, Exploitation & Development activity in South Louisiana and the Texas Gulf Coast • Prolific inventory of Exploration, Development and Workover Opportunities to Add Reserves and Grow Production through applied Drilling and Imaging Technology August 2009

  5. Field Areas Bayou Choctaw NW Chocolate Bayou Abbeville North Broussard Hitchcock NE Comite Lake Arthur Columbus Houston Headquarters Murphy Lake Manchester SW Toro Grande Bayou Couba Welder Ranch Live Oak High Island 30 Leeville East Lake Sand Lake Boeuf SW Garden Island Bay South Florence Alvin Townsite Prospect Bateman Lake Pearsall Exploration Potential Exploitation Focus Malo Domingo August 2009

  6. Field Characteristics • Large acreage tracts with high Working Interests • More than 90% of wells operated • Re-completion, PUD and Extension Opportunities • Significant Deeper Exploration Upside • Attractive Margins with sustainable Cashflow • Legacy assets of Major oil companies • Capital and Technology Starved • Sparsely drilled at depth August 2009

  7. Garden Island Bay • PROJECT FACTS • Newly reprocessed seismic data • Significant subsalt potential • Over 22 MMBOe shallow potential • OWNERSHIP • 100% W.I. • Operator • 16,600 acres • CURRENT STATUS • 30 wells producing 900 BOPD & 1.5 MMCFG/D • 2009 • 9000 Acre Subsalt Joint Venture commenced • 2010 Drilling • Exploration / Exploitation • 3 Well Joint Venture post-Hurricane Season August 2009

  8. Lead “Theta” 13,000’ 1.2 MMBOe Potential Lead “Y- Y Deep” 9,000’ 1.2 MMBOE Potential Lead “Kappa” 7,500’ 416 MBOe Potential Lead “Epsilon” 7,000’ 1.2 MMBOe Potential Lead “O SE” 7,700’ 400 MBOe Potential Lead “233 Updip” 7,700’ 380 MBOe Potential Lead “Z” 11,000’ 1.2 MMBOe Potential Lead “S” 14,000’ 3.2 MMBOe Potential Lead “E” 8,000’ 2.5 MMBOe Potential Lead “203 Offset” 9,800’ 330 MBOe Potential Lead “Epsilon East” 6,500’ 266 MBOe Potential Lead “Alpha” 6,700’ 2.0 MMBOe Potential Lead “908 B” 11,000’ 500 MBOe Potential Lead “Argos” 9,500’ 330 MBOe Potential SALT Lead “MU” 4,750’ 2.3 MMBOe Potential Lead “P” 8,600’ 2.6 MMBOe Potential Lead “X” 6,100’ 180 MBOe Potential Lead “NU” 5,000’ 830 MBOe Potential Lead “Gromit” 6,000’ 300 MBOe Potential Lead “Delta” 7,800’ 330 MBOe Potential Potential Reserves of over 21.6 MMBOe 2009 - 10 Proposed 2009 - 10 Drilling Garden Island Bay“Building Block Prospects” August 2009

  9. Garden Island BayShallow Prospect Inventory August 2009 100% Unrisked

  10. “Gromit” Prospect “Epsilon” Prospect “Kappa Prospect” Garden Island BayProposed 2009 Drilling August 2009

  11. SALT Garden Island BaySubsalt Marketing Program Subsalt Exploration Partnership formed to Market & Explore Deep Potential (~ 9,000 acres.). Retained 15% Working Interest plus Promote yields +/- 20% Interest Merged Big Hum and NE Subsalt Prospect Maps +/- 500 BCFe Potential August 2009

  12. Wieting #32 – 12,000’ “S” Sand Dune Wieting #30 Wieting #33 – IP Farms Sand Wieting #33 – Andrau Sand Chocolate Bayou Field • Working interest varies from 20% to 100% in 1,281 acres are held under lease. • Recently reprocessed Depth-migrated seismic data • Successfully drilled and completed the Wieting #30 well. • The Wieting #32 well will test the 12,600’ “S” sand and will be drilled on a 2:1 promoted basis • The Wieting #33 well will test the Andrau sand and the large exploratory potential (>30 BCF) in the deeper IP Farms section on a 50% WI basis. Drilling is anticipated in late 2009 or 2010. August 2009

  13. Alvin Townsite Prospect LOPT # 10ST Prospect – Live Oak Field 2009 Drilling Program 10,100’ MD, Estimated DHC of $1.2 MM. 100% Reserve Potential 150 MBO (100% WI, 76% NRI) 10,900’ MD, Estimated DHC of $1.4 MM. 100% Reserve Potential 6.3 BCFe (77.6% WI, 79.6% NRI) August 2009

  14. Financial and Operating Results August 2009

  15. Mid-Year Reserves *PV-10 based on June 30, 2009 NYMEX Strip Pricing **Net Interest after Industry Joint Ventures August 2009

  16. Looking Ahead 2009 Operations • Manage Program to Available Cash, Cash Flow and Revolver Availability • Continue Organic Growth • Define and Exploit Deeper Pool Opportunities • Add new Projects within Core Areas • Joint Venture Exploration Programs • Promote Existing Interests August 2009

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