BaraPure™ Fluid System Global Customer Presentation Baroid Marketing Agenda ▌ Customer Challenge Maximize Drilling Performance and Minimize Environmental Impact ▌ Baroid’s Solution – BaraPure™ Salt-Free Invert Emulsion Fluid System Baroid’s Fluid Portfolio What makes BaraPure™ System unique? Laboratory Verification Operational Benefits ▌ Potential applications ▌ Case Histories BaraPure™ System Field Trial ▌ Questions? © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 2 Customer Challenge – Maximize Drilling Performance and Minimize Environmental Impact ▌ WBM performance constraints ▌ Strict environmental regulations ▌ Waste treatment logistics and expense ▌ Risk Mitigation © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 3 Baroid’s Solution – BaraPure™ Fluid System Engineered, salt-free invert emulsion fluid system for technically challenging wells or strict environmental regulations ▌ Reduce overall AFE ▌ Meet/exceed environmental regulations ▌ Improve drilling performance © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 4 Baroid’s Fluid Portfolio for Environmentally Challenging Areas Drilling Performance High-Performance WBM Standard Invert Emulsion Fluids BaraPure™ Fluid Technical Capability Requires salts, amines, and/or silicate additives plus glycols and polymers to inhibit well, sub-par in several situations Technical Capability Superior control of watersensitive and reactive formations through CaCl2 salinity level. Technical Capability Equivalent to other IEF; shale is controlled through alcohol levels and monitoring water activity. Limitations Temperature: 300-325°F Density: 9-18 ppg Contaminants: CO2, cement Limitations Temperature: 450°F Density: 9-18 ppg Limitations Temperature: 300°F Density: 9-18 ppg Waste Management Dewatering may be used for water recycling. Salt may cause disposal concerns in some areas. Waste Management Containment of cuttings in pits/skips. Dryer package needed in some cases. Waste is loaded onto trucks and transported for treatment/disposal. Waste Management Reduced waste and lowest salinity value of any fluid. Oil content can be reduced further with dryers. Waste can undergo on site land treatment and disposal in many areas. © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 5 What Makes BaraPure™ System Unique ▌ Engineered chemistry Salt-free, hygroscopic internal phase Clay-free emulsion structure Proprietary polymer technology ▌ Environmental & Performance Benefits Significantly lower toxicity levels Performance equivalent to other Baroid Clayfree HPIEF systems Does not inhibit plant growth or water quality Biodegradation and toxicity profile of CaCl2 and BDF™-522 Hygroscopic Liquid CaCl2 Biodegradation (Method OECD 301) Toxicity against rats LD50 Aquatic toxicity (Fish) LC50 Invertebrate toxicity (Daphnia Magna) LC50 Non-biodegradable 1g/kg 0.1g/kg 0.76-3g/kg 60% in 10 days 12.6g/kg 5g/kg 15.3g/kg Significant > 12 X less toxic 50 X less toxic 5 X less toxic BDF™-522 Improvement © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 6 BaraPure™ Proprietary Polymer Technology Performance Laboratory Verification ▌ Rheology profiles and sag resistance similar to HPIEF systems ▌ Thermally stable rheology up to 300°F 12-lb/gal 70/30 OWR BaraPure™ Fluid System PV, cP 31 YP, lb/100 ft2 19 LSYP, lb/100 ft2 8 Gels 10 sec/10 min, lb/100 ft2 10/21 HTHP fluid loss, ml/30 min 1.6 Sag factor – 24 hr @ 300°F 0.501 Oil separation, ml © 2014 HALLIBURTON. ALL RIGHTS RESERVED. ® 2 7 ® BaraPure™ System Technology Performance Laboratory Verification ▌ Effective Shale Stabilization ▌ Lower, more stable rheology Water activity of 0.70, customized to match typical Water Phase Salinity 12 lb/gal CaCl2 12 lb/gal BaraPure™ 16 lb/gal CaCl2 16 lb/gal BaraPure™ PV 38 32 51 48 YP 30 22 24 15 LSYP 11 8 12 6 HTHP Fluid Loss, ml 2.8 2.0 2.8 Shale Erosion % 4.2 3.5 5.9 © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 8 London Clay Quartz, Wt % 26 Smectite, Wt % 20 Illite, Wt % 49 3.0 Kaolin, Wt % 1 3.8 Chlorite, Wt % 2 Operational Benefits ▌ Reduced NPT ▌ Cuttings waste can be disposed of at the source in many areas ▌ Reduces or eliminates waste haul-off for remedial treatment ▌ Faster, more effective treatments ▌ Reduced dilution and chemical consumption © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 9 BaraPure™ Fluid System AFE Benefits Accelerated Technical Performance • Reduced NPT • Time savings Less days to TD With Clay-Free IEF Subjective; offset data summaries and detailed KPIs needed to prove © 2014 HALLIBURTON. ALL RIGHTS RESERVED. Reduced Disposal Costs Waste Reduction • Lower losses • Less dilution • Less waste • Little/No hauling • Low overhead BaraPure trial wells showed significant reduction in waste Land application permitted in most areas Quantifiable Value Easily measured and tracked; directly attributed to fluids/waste mgt. solution performance 10 Lower Risks • People & land • Water sources Environmental awareness is increasing Subjective; risk profiles vary by concession and the regulatory environment BaraPure™ Fluid Applications ▌ Environmentally-strict geographies ▌ Unconventionals ▌ Land rigs ▌ Mature fields ▌ Remote locations with waste management challenges Logistics Infrastructure © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 11 Case History – BaraPure™ Fluid System Location: Alberta, Canada CHALLENGE: Lateral well designs with high clay content Meet or exceed standard IEF performance Demonstrate potential cost savings through reduced environmental impact Weight of fluid system specific products mixed - kg 4478 BaraPure Conventional 3288 2928 2457 1498 SOLUTION: BaraPure™ Fluid System applied to three wells More than 29,000 feet drilled 636 RESULT: High ROPs with excellent hole cleaning and cuttings integrity Wellbore in excellent condition for casing runs BaraPure™ waste had 37% less OOC on average One fourth as much product was used on average CASE STUDY © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 12 839 383 Questions? © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 13