St. Mary's Land and Exploration (SM) at Howard Weil

St Mary’s Land and Exploration

Grow reserves 17% in 2007 and five year average is 17% also.

Production grew 16% in 2007 and 14% CAGR over last five years – 1 TCF of proved reserves and 2-8 TCF 3P reserves – 23% PUD’s and 74% gas.

Arkoma – Woodford shale – 16 wells planned in 2008 – 2 rigs running - 40,000 acres. Recent wells last 9 months have seen EUR double. Costs have fallen as well. 521 locations

Atoka – Granite Wash – a very economic play for them – key is performance and execution – 537 locations.

Cotton Valley – 3 different areas here – Terryville, Elm Grove and Carthage - 643 locations –

James Lime – have been here for over four years – 86 locations – 50,000 acres in James Lime. Have done initial evaluation and company may have 10,000 acres of Haynesville.

Wolfberry Tight oil – 310 locations – 70 wells to be drilled in Wolfberry – testing 40 acre spacing.

Olmos Shallow Gas – 382 locations – new basin interest bought last year – doing 3D seismic and evaluation.

2.1 million share repurchased in first quarter of 2008 - additional 3.1 million authorized.

Capital program of $661 million in 2008.

Company expects to be within cash flow after capex and share repurchase.

Forty percent debt to book capitalization currently.