BAYOU CORNE FIELD UPDATE FOR NOVEMBER 19, 2012

Texas Brine Facility

Oxy 3-A Cavern Well -

• Injecting brine/removing oil and natural gas

Vent Well to Top of Aquifer -

• Flaring gas at 24 mcf/day

Vent Well to Top of Cap Rock -

• After initial flaring, making adjustments to equipment to improve flaring efficiency

Sinkhole Site -

• Oil skimming operations resumed at sinkhole

Conservation/Shaw Operations

Observation/Vent Well #1 -

• Casing perforated in preparation for flaring operations - monitoring pressures to determine impacts of nearby flaring of Observation/Vent Well #2

Observation/Vent Well #2 -

• Flaring gas at 67 mcf/day

Observation/Vent Well #3 -

• Preparing well to begin flaring operations

Observation/Vent Well #4 -

• Flaring gas at 4 mcf/day, making adjustments to improve flaring efficiency

Bayou Corne Community

• Participating in ongoing in-home monitoring effort with DEQ