Laredo Petroleum Holdings Announces 2012 Guidance and Capital Budget of $760M

Laredo Petroleum Holdings, Inc.

today announced guidance for key operating metrics, including an expected average 2012 production increase of approximately 25% over the prior year, and detailed its annual drilling budget, of which approximately 80% will be deployed in the Permian Basin. Laredo expects to produce approximately 10.6 million barrels of oil equivalents in 2012, including approximately 41% crude oil and 59% liquids-rich natural gas. This compares to approximately 8.5 MMboe produced in 2011, of which 35% was crude oil and 65% was liquids-rich natural gas. Anticipated average production growth of approximately 25% is primarily driven by Laredo's Permian Basin operations, which target the Wolfberry, Wolfcamp and Cline oil formations and where the Company owns in excess of a 95% average working interest on wells drilled to date on its approximately 135,000 net acres in the play. Of its total approximate $760 million capital budget for 2012, Laredo's $700 million drilling budget includes a plan to spend approximately $560 million, or 80%, for Permian Basin activities. The Company began 2012 running 16 rigs and anticipates between 19 and 20 operated rigs will be active by year-end. Of the year-end total, it is anticipated that approximately 16 rigs will be in the Permian Basin (primarily Glasscock and Reagan Counties, Texas), of which 12 are expected to drill vertical wells and 4 are expected to drill horizontal wells. Three operated horizontal rigs are planned in the Anadarko Granite Wash (Roger Mills and Hemphill Counties, Oklahoma/Texas). The Company expects to fund its capital expenditures with cash flows from operations and borrowings under its senior secured credit facility.