Worldwide Exploration Bob Daniels Senior Vice President, Worldwide Exploration

Worldwide Exploration

Assets Gulf of Mexico West Africa Mozambique

Brazil Southeast Asia Alaska

Performance Consistent Delivery Predictive Results Extensive Inventory

Creating Value Development Monetization

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Exploration Portfolio Focused, High-Impact

Exploration Strategy Target Proven Basins Leverage Skill Sets and Expertise Seek Big Resources

ALASKA ALASKA

U.S. U.S. ONSHORE ONSHORE DEEPWATER DEEPWATER GOM GOM

CHINA CHINA

WEST WEST AFRICA AFRICA MOZAMBIQUE MOZAMBIQUE

INDONESIA INDONESIA

BRAZIL BRAZIL

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Deepwater Discoveries

GOM DISCOVERY PRODUCING MONETIZED INTERNATIONAL DISCOVERY

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Not Just Discoveries: Significant Discoveries APC in 8 of the 11 Discoveries Over 100 MMBOE Central Subsalt Miocene Fields Since 2000 Discoveries

Area

Discovery Date

N. Thunder Horse

Mississippi Canyon

2000

Blind Faith

Mississippi Canyon

2001

K2 / K2 North

Green Canyon

2002

Shenzi / Genghis Khan

Green Canyon

2002

Tahiti

Green Canyon

2002

Tubular Bells

Mississippi Canyon

2003

Puma

Green Canyon

2004

Knotty Head / Pony

Green Canyon

2005

Big Foot

Walker Ridge

2005

Mission Deep

Green Canyon

2006

Caesar/Tonga West

Green Canyon

2006 / 07

Source: Wood Mackenzie Study 4

Gulf of Mexico Success

APC Deepwater Success Rate 2005 - 2007: 51% Reasons for APC Success Proven Oil Finders Commitment to the Program Increasingly Valuable Acreage Position Disciplined Risking Methodology Rigs to Execute

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Gulf of Mexico Advancing Discoveries, Prospects and Leads

2008 - 2009 Program Drill 10 - 15 Exploration / Appraisal Wells 100+ MMBOE Resource Targets

~150 Leads and Prospect Inventory 2.2 Million Net Acres APC ACREAGE

MIOCENE PROSPECTS

LOWER TERTIARY PROSPECTS

MIOCENE

LOWER TERTIARY

VITO

2008 2008 Program Program

SILVERADO LYELL TURTLE LAKE

STURGIS NORTH

HEIDELBERG

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Caesar/Tonga Complex Success Story

Strategy at Work

LYELL PROSPECT APC WI 40%

Regional Experience Commercial Plan Rigs Infrastructure

Result

TAHITI FIELD

Constitution

APC ORRI 3%+

APC WI 100%

TICONDEROGA FIELD

CAESAR DISCOVERY

APC WI 50%

APC WI 20%

Substantial Discovery in Heart of Middle Miocene Fairway (200 - 400 MMBOE)

TONGA WEST DISCOVERY

Multiple Exploration Opportunities

APC WI 37.5%

HEIDELBERG PROSPECT APC WI 38%

APC ACREAGE 2008 EXPLORATION PLAN EXPECTED SUBSEA TIEBACK TO CONSTITUTION 7

Knowledge Transfer

Recent Discoveries GOM DISCOVERY INTERNATIONAL DISCOVERY

2007

2008 8

West Africa Deepwater Exploration Proven System with Great Upside Gross Acreage: 7.1 Million

Leverage Ghana Discoveries 2008 Program

Drill Up to 9 Appraisal / Exploration Wells 150+ MMBOE Resource Targets Capture Additional Blocks Along Cretaceous Trend APC ACREAGE

APC DISCOVERIES

2008 DRILLING

Cretaceous Trend

Tertiary Trend 103 BBOE Discovered

2 BBOE Discovered Under-Explored

Cretaceous Trend 8 BBOE Discovered 9

Ghana: World-Class Discoveries Emerging Core Area Gross Acreage: 0.7 Million APC ACREAGE

DISCOVERIES

DRILLING

JUBILEE FIELD

PROSPECT

2007 Ghana Discoveries 2 Discoveries in 2007 Resource Size: 200 - 1,000+ MMBOE

2008 Activity Odum-1 Discovery Well Drill 5 - 7 Appraisal / Exploration Wells Expect Sanctioning

MAHOGANY-1 MAHOGANY-1 MAHOGANY-2 MAHOGANY-2 ODUM-1 ODUM-1

10 miles

HYEDUA-1 HYEDUA-1

Future Activity Rig Contracted for 2009 - 2011 Program First Production Anticipated in 2010 10

Mozambique New Exploration Frontier with a Familiar Look Gross Acreage: 6.4 Million APC ACREAGE

Exploration Position

2008 ACTIVITY

Mnazi Mnazi Bay Bay Gas Gas Field Field

ONSHORE ONSHORE BLOCK BLOCK APC APC WI WI 42% 42%

A NI A NZ UE TA Q BI M A OZ M

OFFSHORE OFFSHORE AREA AREA 11 APC WI 66% APC WI 66%

Under-Explored Proven Petroleum Province Similar Geological Setting to Gulf of Mexico and Niger Delta Over 100 Leads on 2D Seismic 3+ BBOE of Resource Potential

2008+ Activity Acquiring 3,000 km2 3D Seismic Anticipate Drilling First Well in 2009

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Brazil: Subsalt Excitement Gross Acreage: ~1.0 Million APC ACREAGE

2008 ACTIVITY

INDUSTRY SUBSALT DISCOVERIES

SERPA SERPA PROSPECT PROSPECT

Espírito Santo Basin

Exploration Position Multiple Subsalt Targets Near Subsalt Discoveries 150+ MMBOE Resource Targets

Caxareu Caxareu Field Field

2008 Activity Campos Basin

Linguado Linguado Complex Complex

Tupi Tupi

Drill 4 Exploration Wells: Primary Focus on Subsalt Currently Drilling Serpa Prospect Bringing Rig to Area

Santos Basin

Jupiter Jupiter

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Southeast Asia: Emerging Deepwater Gross Acreage: 17 Million APC ACREAGE

2007 DISCOVERY

2008 ACTIVITY

2008 Activity Drill 3 Exploration Wells 150+ MMBOE Resource Targets

BOHAI BOHAI BAY BAY East China Sea

LW 21-1 Well on Trend with 4-6 Tcf Husky Discovery

SOUTH SOUTH CHINA CHINA SEA SEA Husky Husky Discovery Discovery

South China Sea

LW 21-1

TARAKAN TARAKAN CORE CORE AREA AREA

ASTER ASTER DISCOVERY DISCOVERY Indian Ocean

PROSPECTS

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Alaska Strategic Position in World-Class Basins Gross Acreage: 4.7 Million

Exposure to World-Class Resources Anchors, Satellites, Strategic Gas Efficient Use of Exploration Capital with New Tax Laws

ALPINE GROSS PRODUCTION 50

MMBOE

40 30 20 10 0 2000

Fiord

Moose’s Tooth

SPARK SPARK

2001

2002

2003

2004

2005

2006

2007

Qannik Alpine Alpine West

JACOB’S JACOB’S LADDER LADDER

Sunrise Nanuq Lookout

2 - 10 Tcf Potential RENDEZVOUS RENDEZVOUS NPRA UMIAT UMIAT

GUBIK GUBIK

CHANDLER CHANDLER APC ACREAGE

2008 ACTIVITY 14

Worldwide Exploration

Assets Gulf of Mexico West Africa Mozambique

Brazil Southeast Asia Alaska

Performance Consistent Delivery Predictive Results Extensive Inventory

Creating Value Development Monetization

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Consistent Exploration Track Record ~1 BBOE Net Resources Discovered: 2004 - 2007 1000 900

MMBOE (Cumulative)

800

2007 2007 Net Net Discovered Discovered Resources Resources Expected: Expected: 197 197 MMBOE MMBOE Delivered: Delivered: 220 220 MMBOE MMBOE

700 600 500 400 300 200

2008 2008 Net Net Discovered Discovered Resources Resources Expected: Expected: 210 210 MMBOE MMBOE

100 0 2004

2005

2006

2007

2008 16

Worldwide Exploration

Assets Gulf of Mexico West Africa Mozambique

Brazil Southeast Asia Alaska

Performance Consistent Delivery Predictive Results Extensive Inventory

Creating Value Development Monetization

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Exploration Value Creation INVENTORY – Extensive, High-Impact

EXPLORE Proven Track Record DISCOVERY

Capital-Intensive Lower-Margin Long-Dated

MONETIZE SELL / TRADE

DEVELOP

Shorter Cycle Time to First Production Tieback to Existing Infrastructure High-Margin Large Resources 18

Extracting Value from Exploration 2004 to Current

Exploration Capital Spent ~ $3 B Net Resources Discovered ~ 1 BBOE Monetized for ~$4.5 B Booked Remaining Unbooked

Exploration Exploration COF COF ~$3 ~$3 // BOE BOE

~ 500 MMBOE ~ 100 MMBOE ~ 400 MMBOE

Remaining Unbooked Value At At $10 $10 // BOE BOE

$4 B

GOM DISCOVERY PRODUCING MONETIZED INTERNATIONAL DISCOVERY

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Conclusion

Consistent, Successful Strategy and Explorers Quality Exploration Assets Track Record will Continue

Significant Value Creation Now and in the Future

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