UPDATE – CRC/OXY HIGHLIGHTS

California Resources Corporation• Greater Elk Hills Area• Luis Romualdez, Chief Reservoir Engineer

GEHA ADM Supervisors:• David George ~ 1.5 years• Ken Haney ~ 0.6 years

2015 Chief RE Mandate:• M.O.S.T. = Mentoring (20%), Optimization (30%), Surveillance (40%), Training

(10%)

2013-2015 Highlights (numbered as per Attachments):1) Streamlined and successfully implemented the GEHA Surveillance Process,

critical in surpassing the Elk Hills production target to date by about 5,000 boe/d

2) Assisted the Stevens RMT in booking an additional 8–10 MMBOE of proven reserves for the Stevens 31S

3) Instrumental in determining the best methodology to book proven reserves for the contentious ESOZ reservoir as corroborated by Central Reserves’ final decision (i.e., by fault block with maximum b=1)

4) Successfully procured and implemented the 3DSL streamline waterflood re-alignment program which has resulted in success at Yowlumne and many more CRC opportunities for “incremental oil at zero cost”

5) Leading the initiative for “poor boy” EOR at CRC such as microbial, micro-emulsion and electric heating.

6) Successfully implemented the RE development and mentorship programs

7) Effectively supervised a hybrid team of geoscientists and engineering specialists

Achievement Highlights: 2013-2015

(1) 2015 GEHA Surveillance Process

Exception Based Surveillance

(Losers/Gainers)

Operational ? ACTION

Operations Engineer Review

Resolved?

Scheduled Operational

Checklist

Scheduled Reservoir

Surveillance

ACTION

ACTION

Ongoing Base/Wedge Surveillance

Reservoir?

Forward Exception Well List

to Exception Surveillance

(Field Operations)

Well List (Region/Strip/Pattern)

Well List

(PDP FC Deviation)

FIELD OPERATIONS (daily / weekly)

OPERATIONS ENGINEER (weekly / monthly)

RESERVOIR MANAGEMENT TEAM

(monthly / yearly)

Y

N

YN

N

Y

4

(2) 31S Shales - PUD Location Map (2014)

May 1, 2023

34S Area (NAB)

32S Area (NABCD)

West Half Flanks (NAB)

West Half Crest (NAB)

36S Area (NABCD)

• Analog wells are selected based on geologic similarity and vintage in areas with similar producing characteristics

• Generally PUD/ P2 / P3 designation based upon one/two/three offsets away, respectively, from active wells with rates that would support capital investment

ShalesRESERVE CATEGORY OPEN CLOSE

P1 77 54

P2 13 25

P3 1 10

C1 0 0

C2 62 69

C3 27 27

Shales TOTAL 180 185

Shales Transfers to PDPRESERVE CATEGORY Number Drilled

P1 18

P2 3

P3 0

C1 0

C2 17

C3 0

Shales TOTAL 38

21

3

1115

4

ESOZ PDP Estimation Methods

Method Name Forecast Granularity Forecast Method

Hyperbolic Factor Limitations

Base Well Set Used to Define Initial Decline

Rate

Gross PDP Base Reserves (MMBOE)

Net PDP Base Reserves (MMBOE)

Reasonable Certainty

Case 0 Fault Block Oil Rate vs. Time b ≤ 2 YE2009 99.97 69.99 Case 1 Fault Block Oil Rate vs. Time b ≤ 1 YE2009 49.66 34.77 Case 2 Individual Well Oil Rate vs. Time N/A N/A 49.74 34.82 Case 3 Fault Block Log(GOR) vs. Cumulative Oil N/A YE2013 73.90 51.73 Case 4 Fault Block Oil Rate vs. Cumulative Oil N/A YE2013 52.88 37.02 Case 5 Full Field Log(GOR) vs. Cumulative Oil b = 1 YE2013 83.75 58.63 Case 6 Full Field Log(GOR) vs. Cumulative Oil b = 1 YE2011 48.95 34.27

Case 7 Fault Block Oil Rate vs. Time b = 1 YE2013 90.42 63.30

(3) ESOZ PDP Results – 2014 Conclusions

**

*All volumes shown are reported as of YE2014** The volumes are reasonable. This method assumes that all gas is being produced by the YE2011 base, which is an unreasonable assumption.

6

(4) RESULTS OF OPTIMIZATION (YOWLUMNE FIELD)

Lost one of main injectors

Start Optimizing Target RatesProvide April Target Rates

Lost three producers (Surface

and Downhole issues)

Daily

Pro

duct

ion

(BOE

PD) 3.5 % monthly

exponential Decline

2.3 % monthly exponential

Incline

(5) MEOR Technology

(6A) CAREER PATH – RESERVOIR ENGINEERING

Experience Level / Development Stages

Foundation Intermediate Advanced Leadership

GRADE 21 - 22 GRADE 23 - 24 GRADE 25 - 26 GRADE 25+

Engineer, Staff Engineer Sr Engineer, Engineering Advisor

Sr Engineering Advisor, Engineering Consultant

Chief Engineer, Leader, Manager

Engineering Career Options, Technical Skill Development

Specialized Technical Skill Development

Advanced Technical Skill and Expertise

Business Unit Management

ROTATION AND MENTORSHIP PROGRAM (0 - 5 YEARS):

RESERVOIR, COMPLETIONS,OPERATIONS, FACILITIES

TRAINING: BASIC / FOUNDATIONAL INTERMEDIATE ADVANCED SPECIALIZED

CRC:• GEHA RE Competency Matrix• CRC Mentor Handbook• CRC Mentee Handbook

Others:• Oxy Technical Career Ladder Reference Guide• Oxy Engineering Competency Matrix• Detailed RE Technical Competency Matrix

*Mentoring Resources at S:\asset development\_ADM\2015 GEHA RE Mentorship

(6B) GEHA Mentorship Resources* – Reservoir Engineering

(7) GEHA CENTRAL RESERVOIR ENGINEERING - WHO?

• CRC Geophysical Leadership• RMT, Regulatory, Training

• CRC Specialist Leadership• CRC Data Reporting, Training

• CRC Specialist Leadership• RMT, Community, Training

• GEHA Geophysical Support• RMT, Regulatory, Mentoring

• GEHA Operations Geology• Core Storage, RMT, Training

• CRC Reservoir Engineering Leadership• Mentoring, Optimization, Surveillance, Training

2015 Team Projects: • 26R Reservoir Analysis• 31S Shale Gas Injection Evaluation• 24Z/26Z Reservoir Analysis