Drillinginfo Membership Overview January, PDF Free Download

The World of Drillinginfo Services DI/Client Data Integration Analytics & Benchmarking Geol, Geop & Engineering Analysis Tools Search, Access, Visualize, Notify, Download Data Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 2

Drillinginfo 2D/3D Seismic Int. Geospatial (GIS) Operator Benchmarking Install/Config/DB Geospatial (WMS/WFS) Consulting Services Integration Acreage Practices Analyses Analytics & Benchmarking Multi- Geosteering Microseis Geological, Variate Int. Geophysical & Pad Proc & Int & Well Eng Tops Analysis Analytics Graded Data API Best Planning Consulting 3 rd Party Apps Economic Search, Access, Notify, Predict Rigs Analytics Unconventional Play Assessments Search/Filter Export Scouting Visualization Land Permits Rigs Wells Logs Completion Prod Pipeline Assets Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 3

Drillinginfo ISN T a subscription, It is a CONTINUOUSLY IMPROVING MEMBERSHIP (CIM) DI ANALYTICS DI GEOLOGY BASIC PLUS DI ENGINEERING DI COURTHOUSE GEODATA SERV Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 4

BEST IN CLASS INITIATIVE Historical Well Headers- West Texas complete, South Texas in progress. Current Well Locations- Best In Class via GPS on Rigs. Fastest Reporting (permits/completions/production/drilling)- Best In Class Production- Equal Allocated Production- Best In Class Completion Detail- Best In Class Completion Coverage- Targeted Best In Class by Q1 2016 Leasing- Best In Class Mineral Tract Outline- Best In Class (Legal Description); Pretty- Best In Class Q1 Lease Assignments- Core Best In Class Courthouse- Best In Class Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 6 6

OLD LOCATIONS AND HEADERS 2-8% of older wells UNKNOWN in any other database Current Initiative- West Texas County Wells in County DI Wells Not In Any other Database Missing From Regulatory (%) Missing After "Best of Breed" Integration Reeves 5029 147 18% 6% Loving 3220 71 16% 5% Culberson 1521 137 30% 17% Ward 12314 246 20% 8% Jeff Davis 36 0 69% 33% Winkler 10457 503 26% 9% Presidio 441 2 8% 2% Hudspeth 121 1 32% 9% El Paso 24 0 58% 21% Crane 13006 157 12% 4% Brewster 99 0 42% 16% Pecos 16911 288 24% 8% Ector 22723 33 5% 2% Andrews 23892 0 8% 2% Martin 8909 0 3% 1% Midland 10851 0 7% 2% Glasscock 6877 0 12% 4% Sterling 4011 0 14% 2% Mitchell 7730 0 10% 4% Howard 12286 0 11% 3% Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective 7 companies. 7

An Amazing Hardcopy Library we are ingesting. Scout Card Shows Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 8

Drillinginfo Is Today Our Own Largest Client PROBLEM: How to Radically Lower the All-In Cost and Increase the Value of Exploiting the Oilpatch? Has an Event changed the value of a property? Adjoining properties? Properties further away? Can we quantify that change? Can we see WHO has been affected by that change? Has MY property changed value? By how much? How do I harness the power of my experience to leverage this knowledge? How do I harness the power of my coworkers and employees? First, we need GEOLOGY Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 14

DI Geology Product Line DI Geology Assessments DI Niobrara DI Bakken DI Barnett DI Delaware Basin Available Now Available Now Available Now Available Now DI Oklahoma SCOOP DI Eagle Ford DI Midland Basin DI Granite Wash Available Now Available Now Available Now Available Now Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 16

Strike (N-S) Cross-section N S N S Flattened on Top of Marble Falls Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 18

Eagle Ford Operator Performance Differential (old & new cost structure) Geologic Grade % of Play 1% 3% 9% 20% 42% 70% 81% BHP Freeport BHP BHP Freeport BHP Freeport Freeport OLD $30/Barrel $40/Barrel $50/Barrel $60/Barrel $70/Barrel NEW $24/Barrel $30/Barrel $40/Barrel $45/Barrel $55/Barrel Source: DI Analytics, Deviation based on Max IP BOE/D 20:1 basis Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 22

View Drilling Activity by Grade Select Wells in the Bakken With Graded Acreage Map Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 24

View Companies By Their OFS Providers Select Wells in the Bakken With Graded Acreage Map Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 25

GEODATA SERVICES UNITED STATES COVERAGE OGC Standard (WMS/WFS) & ESRI Map / Feature Service Formats * ~120 Layers (Q1-2015) Lease Heat Maps Permit Heat Maps Rigs (Daily) LandTracs Pipelines Lease Level Production (Rollups Only Not By Month) Completion Information (Summary Only - Does Not Include Frac/Proppant Details) Facies Maps Basin Maps Geophysical Maps Surface Geology Maps Niobrara Geology Studies Paleogeographic Maps Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 27

Quantify Completion Method ROI well 1 (center well) was treated with a 10-ton Mongoose tool in a cemented liner for a 24-stage completion on a 1300-m lateral. Treatment fluid consisted of Nowferr Iron Control/Corrosion Inhibitor/Non-Emulsifier/Anti-Sludge, Foam Preventer, with a 15% Acid Blend. well 2 (easternmost well) used a sliding-sleeve for 16 stages on a 1300-m lateral. Treatment fluid consisted of a Slurried Gellant, Clay Control Surfactant, Breaker N, and CXB-2 Crosslinker. well 3 (westernmost well) used a 10-ton abrasive jet system in a cemented liner, and set packers to isolate zones for 24 stages on a 1100-m lateral. Treatment fluid consisted of Slurried Gellant, Clay Control Surficant, and Breaker N, with a 15% Acid Blend. Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 29

well 2 this well was also treated at lower average pressure compared to wells 1 and 3. It looks like the slurry rates however were a little higher for well #2 Well 1 Well 2 Well 3 Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 30 30

Well Interference Workflow ( Frac Hit ) Predict well interference to optimize well spacing The well interference workflow uses new tools and multivariant modeling to simultaneously account for the effects of: 1) well seperation distance 2) reservoir depletion 3) completion/stim design 4) geological properties AND 5) predict how new wells will affect existing wells 6) predict new well performance 7) Create a map of total predicted production (new + production change) 32 Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 32

New Well Production & Dynamic Spacing Analysis Predict Oil Production for New Wells Highest producing well: 1. Uses ~400 lbs prop/ft 2. Is at least 2250 ft from an existing well 3. The nearest existing well produced large volumes of oil 4. The nearest existing well has been producing for 200 days or less 5. New well is in prime acreage Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 34

Example: Eagle Ford, McMullen Co. 6 Month Actual Oil Production Map 6 Month Oil Native Production Map (Normalized Engineering) Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 35

Example: Eagle Ford, McMullen Co. $150 million in engineering costs that provided zero or negative ROI. $100 million in unspent engineering costs that could have produced $1.5 billion in additional PV6 value 6 Month Actual Oil Production Map 6 Month Oil Native Production Map (Normalized Engineering) Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 36

PREDICTED PRODUCTION MAPS BASED ON TIER 2 DUNN & MCKENZIE NON-LINEAR REGRESSION MODEL This shows the revenue difference between the 700 lbs/ft model and the 400 lbs/ft model Assuming: 10,000 ft laterals $0.20/lb of proppant $40/bbl return for oil Red: ~$2MM+ gain Cyan: ~$50k gain Dark blue & purple: revenue loss Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 37

Example: Eagle Ford, McMullen Co. Does fault proximity enhance or inhibit production locally? Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 38

Example: Eagle Ford, McMullen Co. Distance to Faults versus BOE Copyright 2015, Drilling Info, Inc. All right reserved. All brand names and trademarks are the properties of their respective companies. 40

Drillinginfo Membership Overview January, 2016