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Energen Updates Potential Lower Spraberry Economics

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Energen Corporation (NYSE:EGN) today said the 54-day performances of its first two Lower Spraberry wells in Martin County (results disclosed May 6, 2015) — the Campbell #501H and the Wilbanks SN 16-15 #501H — are tracking above a 900 MBOE EUR type curve and a 1,200 MBOE EUR type curve, respectively. The 1,200 MBOE curve supports an internal rate of return of 110 percent and a PV10 value of $13.3 million; the 900 MBOE curve supports an IRR of 60 percent and a PV10 value of $8.3 million.

This information is shown in a graph included in the company’s new May 2015 investor slide presentation that has been posted to its website (see www.energen.com, Webcasts and Presentations).

The graph plots the oil portion of the 54-day, 3-stream production history (from first oil) of its first two Martin County Lower Spraberry appraisal wells relative to potential type curves representing EURs of 770 MBOE, 900 MBOE, and 1,200 MBOE. The potential, three-stream type curves and production history have been normalized to a 7,500′ lateral length; actual lateral lengths will vary. The economics of the type curves are based on flat oil, natural gas liquids, and natural gas prices of $60/barrel WTI, $22.20/barrel, and $4/Mcf NYMEX, respectively, and assume drill-and-complete costs of $6 million per well.

Energen Corporation is an oil and gas exploration and production company with headquarters in Birmingham, Alabama. The company has 1.1 billion barrels of oil-equivalent proved, probable, and possible reserves at year-end 2014 and another 2.2 billion barrels of oil-equivalent contingent resources. These all-domestic reserves and resources are located primarily in the Permian Basin in west Texas. For more information, go to http://www.energen.com.

FORWARD LOOKING STATEMENT: All statements, other than statements of historical fact, appearing in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements about our expectations, beliefs, intentions or business strategies for the future, statements concerning our outlook with regard to timing and amount of future production of oil, natural gas liquids and natural gas, price realizations, nature and timing of capital expenditures for exploration and development, plans for funding operations and drilling program capital expenditures, timing and success of specific projects, operating costs and other expenses, proved oil and natural gas reserves, liquidity and capital resources, outcomes and effects of litigation, claims and disputes and derivative activities. Forward-looking statements may include words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “foresee”, “intend”, “may”, “plan”, “potential”, “predict”, “project”, “seek”, “will” or other words or expressions concerning matters that are not historical facts. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this filing. Except as otherwise disclosed, the forward-looking statements do not reflect the impact of possible or pending acquisitions, investments, divestitures or restructurings. The absence of errors in input data, calculations and formulas used in estimates, assumptions and forecasts cannot be guaranteed. We base our forward-looking statements on information currently available to us, and we undertake no obligation to correct or update these statements whether as a result of new information, future events or otherwise. Additional information regarding our forward-looking statements and related risks and uncertainties that could affect future results of Energen, can be found in the Company’s periodic reports filed with the Securities and Exchange Commission and available on the Company’s website – www.energen.com.

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