Update from the Watch List

[dan_s]

Apache Corporation – Filed an amended S-4 proxy statement in connection with
its planned acquisition of Mariner Energy (ME). Subsequently, the revised S-4
was deemed effective by the SEC and a ME shareholder vote is now scheduled
for Nov 10th. We expect the transaction to closely shortly thereafter. For more
information regarding the APA/ME deal, please see our previous April 16th note:
Apache Corp - Mariner Expands Apache’s Offshore Gulf & Permian Footprints.

Anadarko Petroleum – Partner Ecopetrol announced an oil find at the Itauna
prospect (APC operated w/ 50% WI) located in shallow water offshore Brazil.
The oil was encountered in a shallow reservoir located substantially above the
target objectives, but may be a sizeable accumulation. Drilling activity is
continuing towards multiple planned pre and post-salt targets.

ChesNexen, Incapeake Energy – On Monday, September 27, the fire at the company’s well
site in Marshall County, West Virginia, was put out nine days after it erupted.
Chesapeake has been ordered by the WV Office of Oil and Gas to cease
operations at the well site until further notice.

Nexen, Inc. – Announced a gross recoverable resource estimate of 250+
MMBOE for the previously disclosed Shell-operated Appomattox discovery
(NXY 20% WI) in the Eastern deepwater Gulf of Mexico. The exploration well
encountered 425 net feet of oil pay with two sidetrack appraisals adding 360
net feet more. Shell/Nexen plan multiple follow-up appraisals once the
moratorium is lifted. Appomattox will likely be developed in conjunction with
the earlier Shell-operated Vicksburg find (NXY 25% WI) estimated at 75+
MMBOE, located six miles away. Together, Appomattox and Vicksburg
potentially add ~70 MMBOE to Nexen, which equates to ~7% of its total yearend
2009 proved reserve base.

Petrohawk Energy – On Wednesday, September 29, closed on a previously
announced sale of $119 million of non-core East Texas conventional natural
gas properties.

Range Resources – Announced that it had contracted for the development and
leasing of its new Appalachian office facility in Canonsburg, Pennsylvania,
approximately 20 miles south of Pittsburgh. The targeted completion date is
November 2011.

Talisman Energy – Partner Questerre reported results from the TLM-operated
Gentilly #2 horizontal well (75% WI) located in Quebec’s Utica Shale. The 5-
frac stage well averaged ~700 Mcf/d (30 days) with most production coming
from 3 frac stages targeting the middle Utica. These results appear less
prospective than the previous St. Edouard #1A horizontal that tested at a rate
of 6.4 MMcf/d (21 days) from 8 frac stages. TLM also postponed completing
the Fortierville #1 and St. Gertude #1 horizontal wells by six months to next
spring due to higher completion costs.