CHANGING THE E&P MINDSET: EFFECTIVELY DEPLOYING TURNKEY LNG FUEL SOLUTIONS THROUGH LNG SUPPLY, EQUIPMENT AND OPERATIONAL SERVICE SEPTEMBER 27, 2012

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1 CHANGING THE E&P MINDSET: EFFECTIVELY DEPLOYING TURNKEY LNG FUEL SOLUTIONS THROUGH LNG SUPPLY, EQUIPMENT AND OPERATIONAL SERVICE SEPTEMBER 27, 2012

2 Prometheus Overview SPECIALIZING IN NATURAL GAS FUEL SUPPLY SOLUTIONS VIA LIQUEFIED NATURAL GAS (LNG) Headquarters in Houston, Texas Operations throughout US & western Canada Vertically integrated LNG solution provider Privately held--major Shareholders: Shell Technology Ventures Fund 1 BV (June, 2009) Black River Asset Management (September, 2008) 2

3 Commitment to Safety Exposure Hours Since Operation* (Employees + Contractors) *Tracked since January 2009 through 8/31/ ,544 LTIs / Total Recordable Incidents 1/1 STC for 12 Life Saving Rules 1.0 STC for Defensive Driving Course 0.85 Regulatory Violations/Citations 0 Prometheus has access to, and adopted, Shell s vast HSSE resources and programs, including: Incident Investigation and Reporting HSSE Auditing Crisis Management Program Contractor Management Program 12 Life saving Rules Journey Management Program Maintain a culture of safety throughout Prometheus Energy and the LNG industry. 3

4 Hydrocarbon Price Spreads $30.0 U.S. Hydrocarbon Pricing $25.0 $ per MMBTU $20.0 $15.0 $10.0 Wholesale Propane Wholesale Heating Oil U.S. Citygate Nat Gas $5.0 $- Data Source: EIA.gov; National Average Wholesale Pricing for Liquids; National Average U.S. Citygate Key conclusions: 1. Natural gas is less volatile over time 2. Liquid-gas spread is steadily increasing 3. Any carbon tax will further favor natural gas 4

5 LNG Drilling Solution LNG Fuel Supply - Transportation - Logistics Natural Gas In LIQUID Natural Gas Out Liquefaction - LNG supply network located throughout North America - Access to 350k gpd capacity Onsite LNG Equipment - LNG storage - LNG regasification LNG Fueled Application Drilling Rig /Frac Spread Prometheus Energy s Turnkey Solution 5

6 Experience E&P Prometheus Energy: Delivering purpose built, mobile LNG fuel solutions to oil and gas E&P companies since early 2010, deploying the first LNG fueled drilling rigs (note PEG also develops/services industrial applications in replacement of #2 oil & propane) Actively providing E&P operators and service contractors with LNG fuel supply, LNG equipment and/or LNG technical services throughout North America Completed ~200 wells using a dedicated LNG fuel solution E&P emphasis on dual fuel and dedicated natural gas operations in: Drilling rigs Hydraulic fracturing/pressure pumping Remote power generations Other LNG fuel needs and/or applications Prometheus Energy and its key partners have pioneered and commercially proven the use of LNG as a favorable alternative to diesel for E&P applications 6

7 In the field results Customer Cluster Customer comments: 7

8 Equipment Pictures *Earthen berm not yet formed 8

9 Online Industry Tools Prometheus Energy has developed and made publically available a suite of industry tools to support the economic analysis and comparison of various alternative fuel solutions. Allows customer and fuel providers to compare alternatives on a single platform Simplify communication and evaluation process Actively developing custom tools upon request LNG Dual Fuel Hydraulic Fracturing Calculator Find your tools here - Units Conversion Calculator 9

10 Conclusions Safety: Success Dedication to Safety Practice a culture of safety through maintaining, communicating and implementing its HSSE programs Economics: Success Significant savings against diesel for dedicated and dual fuel solutions for drilling and hydraulic fracturing Operational performance: Success Commercially proven LNG solution through rapid growth ensuring critical uptime requirements Surety of supply: Success Diversification ensures surety of supply across broad customer base and allows effective management of variable consumption profile Prometheus Energy has commercially proven LNG as an economic and environmentally favorable alternative to diesel for multiple E&P operations. 10

11 Mike Fradette Business Development Manager Scan for contact info Houston Office (HQ) Prometheus Energy Group, Inc Richmond Ave, Suite 450, Houston, TX (o) Seattle Office Prometheus Energy Group, Inc th Avenue NE, Building L Redmond, WA (o) Integrated LNG Fuel Solutions 11