Bayou Corne Field Update for November 27, 2012

Texas Brine Facility

Oxy 3-A Cavern Well -

• Injecting brine/removing oil and flaring natural gas

Vent Well to Top of Aquifer -

• Flaring gas at 46.9 mcf/day

Vent Well to Top of Cap Rock -

• Shut in pending plug and abandon evaluation

 Sinkhole Site -

• Settling/shifting of material underlying sinkhole created disturbance of water in sinkhole in morning roughly coinciding with USGS report of observance of seismic activity - crude oil emulsion and woody debris from sinkhole bottom observed rising to surface, water from nearby swamp seen flowing into sinkhole. Surface activity observed for several minutes before water calmed again.

Conservation/Shaw Operations

Observation/Vent Well #1 -

• Flaring gas at 32 mcf/day

Observation/Vent Well #2 -

• Flaring gas at 30 mcf/day

Observation/Vent Well #3 -

• Removing water to improve flaring efficiency

Observation/Vent Well #4 -

• Flaring gas at 12 mcf/day

Bayou Corne Community

• Participating in ongoing in-home monitoring effort with DEQ
• Oversight of installation of first Office of Conservation-directed Texas Brine geoprobe monitoring well in Bayou Corne community, additional geoprobes to be installed