Latest in Multistage Horizontal Completion Technology A Summary of Schlumberger Isolation Systems. Jason Baihly Multistage Stimulation Manager

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1 Latest in Multistage Horizontal Completion Technology A Summary of Schlumberger Isolation Systems Jason Baihly Multistage Stimulation Manager

2 The Reservoir Maximize Reservoir Contact - Increase Recoverable Reserves - Increase Production

3 Lateral Well Count Eagle Ford Activity Permits Completions Q Q Q Q Q Q Q Q Q Q3 2011

4 Multistage Stimulation Technologies for All Applications Frac Plugs & Perforating Cemented Systems Uncemented Systems

5 Plug and Perf Frac Plugs Horizontal, deviated, or vertical wellbores Applicable in a wide range of applications including - Cased hole cemented and uncemented horizontal wells - Seal is critical - Have only one shot at isolation - Avoiding presetting is imperative - Wells expecting multiple pressure cycles - Bridge and Frac Plug options Copperhead Diamondback

6 Frac Plug Segmentation Copperhead - High temperature/pressure (up to 400ºF and 15,000 psi) - Long downtime between fracturing stages (>2 days depending on temperature) - Harsh environments - Permanent isolation Copperhead Diamondback - Quick drill out time is desired - Many stages are required - Morris taper permits no spinning in multiple plug systems - Moderate temperature and pressure (up to 275ºF and 8,000 psi) Diamondback

7 Plug and Perf Enabler KickStart Rupture Disc Valve Installed as part of the casing string, one or two joints above the float shoe Plug and perf operations can be performed afterwards No change to cementing system and procedures Robust valve with high torque value Currently available in 4½ or 5½ casing size - Rated to 10,000 psi and 260 o F (69,000 kpa and 125 o C) 325 o F being tested now (160 o C) bbl/m fracturing rate with up to10 lbm of proppant added Lower costs due to CT/stick pipe perforation run Improved treatment by lowering fracture initiation pressure

8 Multistage Stimulation Technologies for All Applications Frac Plugs & Perforating Cemented Systems Uncemented Systems

9 Cemented nzone Repeater Valve System Continuous multistage stimulation operations eliminating - REW and CT interventions Unlimited number of stages - Same size dart for every stage - c-ring in the next successive valve closes to form an o-ring to catch the dart No change to cementing operations Lower fracture initiation pressure and precise fracture placement Possibility of immediate and simultaneous flowback of all zones Ability to selectively close the fracture sleeve after treatment Seats are millable Requires control line and larger borehole Actively working to create a system without the issues above

10 Cemented nzone Balldrop System Field testing, not commercial Details - Rated to 10,000 psi and 275 o F bpm; up to 10 ppg of proppant - Progressive balldrop system 5 ½ system is 6 stages 4 ½ system is 5 stages - Various size balls pumped from surface Next gen ball will be dissolvable Benefits - Millable ball - No control lines - No need to change cementing system and procedures

11 nzone Ball Drop System Example Schematic Completion Sequence 1. Cement with standard systems 2. After WOC, pressure up on casing to open Rupture Disc Valve 3. Pump first stage frac through RD Valve 4. In flush of stg 1 frac, drop smallest nzone BDV ball to open nzone BD Valve 5. Repeat for stages Complete remaining stages with perf and plug 7. Mill out frac plugs 8. Flow well, clean up all zones simultaneously

12 Multistage Stimulation Technologies for All Applications Frac Plugs & Perforating Cemented Systems Uncemented Systems

13 Uncemented System Falcon Details - 20 stages in 4½ size 5½ system coming soon - Mechanical or Swell Packers - System Pressure rating 10,000 psi (68,950 Kpa) Temperature 300 o F (150 o C) Benefits - Drillable system maximizes production output - Well management capabilities - High flow rate on all stages

14 Uncemented System Falcon System Components OH Packer OH Packer OH Packer Frac sleeve Frac sleeve Hydraulic Frac Valve Circulating Valve System can alternatively be used with - Swell packers - Repeating ports - Ball launcher

15 Multistage Stimulation Technology Overview Designed to be simple, efficient, and reliable

16 Questions Frac Plugs & Perforating Cemented Systems Uncemented Systems