Most Expect Economic Crisis to Impact Ability to
Borrow Money, Extend Debt

Chicago, IL – The majority of U.S. oil and gas exploration and
production companies say that “credit capacity restraints,
including access to capital” will be their greatest financial
challenge in 2009, followed by “falling oil or natural gas
prices” (21%).

This is according to the results of a new study recently concluded by the noted accounting and consulting firm BDO Seidman, LLP.

Nearly three-quarters (72%) expect the economic crisis in the U.S. to impact their ability to borrow money or extend bank debt in 2009. In the past 12 months, only 26 percent of respondents had oil or gas exploration projects significantly delayed or terminated. Among those who did, 80 percent stated “lack of capital to fund project” as a reason.

“Energy companies have remained relatively unscathed by the
downturn this year and continued with record profits. However,
a storm front is gathering for 2009,” said Charles Dewhurst, a
partner and National Energy Industry Practice Leader at BDO
Seidman, LLP. “The survey was performed as oil prices and
demand continued to drop – and this volatility, combined with
the state of the economy – has energy companies treading more
cautiously.”

Conducted in October and November of this year, the BDO Seidman Natural Resources 2009 Outlook Survey examined the opinions of 100 chief financial officers at U.S. oil and gas exploration and production companies. Some of the major findings of BDO Seidman Natural Resources 2009 Outlook Survey of CFOs include:

• Staffing Efficiencies - Most respondents (63%) are keeping the same level of field personnel; 29 percent expect to increase levels at least somewhat and eight percent are decreasing field staff. Twelve percent indicated that “recruiting or retaining skilled workforce talent” will be their greatest financial challenge in 2009.

• Potential Growth Drivers for 2009 - Increasing demand for oil and
gas both internationally (36%) and domestically (22%) were cited
as the top potential drivers for overall growth in 2009 in the
U.S. oil and gas industry, followed by “new production
technologies to increase supply” (17%), “adoption of alternative
energies” (12%) and “oil and gas exploration” (10%).

• International Growth - CFOs cited access to capital (19%) and
uncertain business or political climates (16%) as the top two
barriers to international growth; five percent cited
international tax or environmental regulations.

The BDO Seidman Natural Resources 2009 Outlook Survey is a
national telephone survey conducted by Market Measurement, Inc.,
an independent market research consulting firm, whose executive
interviewers spoke directly to chief financial officers, using a
telephone survey performed within a scientifically-developed,
pure random sample of U.S. oil and gas exploration and
production companies.

Visit http://www.bdo.com/for more information on this and other reports.