Baroid Lost Circulation Materials: BaraShield™-663 BaraShield™-664 BaraBlend™-665 BaraLock™-666.F BaraLock™-666.M BaraLock™-666.C Agenda ▌ Challenge – Lost Circulation ▌ Baroid’s Solution – Prevention & Remediation BaraShield™-663 Features & Benefits BaraShield™-664 Features & Benefits BaraBlend™-665 Features & Benefits BaraLock™-666 (.F, .M, .C) Features & Benefits ▌ Why Baroid © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 2 Challenges – Lost Circulation Seepage Typically occurs in sand, sandstone, or silt formations © 2014 HALLIBURTON. ALL RIGHTS RESERVED. Partial Fluid Loss Typically occurs in moderately permeable unconsolidated sand or gravel, small natural fractures, or small induced fractures 3 Severe/Total Fluid Loss Typically occurs in highly permeable and weak unconsolidated sand or gravel, large natural and/or induced fractures, and vugular formations Baroid’s Solution – Prevention & Remediation ▌ Six distinct, engineered solutions to help prevent or remediate lost circulation, with supplemental materials for the most challenging scenarios. Loss Type BaraShield™ -663 continuous treatment BaraShield™ -664 continuous or pill treatment BaraBlend™ -665 LCM “pill”* + BaraLock™-666.F BaraLock™-666.M BaraLock™-666.C Typical Formation Characteristics Seepage (<10 bbl/hr) (1.5 m3/hr) Sands Sandstones Silt Prevention Remediation Unconsolidated Sand or Gravel Small natural fractures Small induced fractures Partial (10-50 bbl/hr) (1.5-8 m3/hr) Unconsolidated Sand or Gravel Small natural fractures Small induced fractures Severe (> 50 bbl/hr) (> 8 m3/hr) Total Unconsolidated Sand or Gravel Vugular Formations Large natural fractures Large induced fractures *Any dedicated LCM pill can be supplemented with BaraLock-666.F, BaraLock-666.M, BaraLock-666.C LCM to remediate the most severe fluid loss scenarios. Please consult Recommended Operating Procedures for proper field application. © 2014 HALLIBURTON. ALL RIGHTS RESERVED. Partial (10-50 bbl/hr) (1.5-8 m3/hr) 4 BaraShield™-663 Premium Fine-Sized Granular Multi-Modal LCM Mesh Size (-30/+325) ▌ Key Features Optimal Sized Material − Multi-modal particle size distribution − Seals both pores and fractures Proven in lab to quickly seal up to at least 500 microns in size Multi-modal particulate Optimal concentration can be determined using “STRESS-SHIELD™ Engineering Method” Standard Pit Deployment − Material can be added to existing fluid without altering fluid properties − Not recommended to be used in a reservoir formation © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 5 BaraShield™-663 Premium Fine-Sized Granular Multi-Modal LCM Mesh Size (-30/+325) ▌ Benefits Maintain Wellbore Stability − Prevents fluid losses in impermeable and permeable formations Increased Rig-Floor Efficiency − Reduces time and effort required to identify the proper mix and time needed to cut multiple sacks − Identify the proper amount utilizing “STRESS-SHIELD Engineering Method” Reduced Costs − Lower inventory, saves rig space and reduces waste Helps reduce HSE Incidents − Less sacks to lift and cut © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 6 BaraShield ™-663 vs Competitor PPA Test Comparison ▌ Ceramic Filter Discs (150F, 500 psi differential) 260 BaraShield-663 @ 10 ppb Fluid Loss @ 30 min, g Competitor @ 10 ppb 186 178 172 167 168 167 153 134 129 108 95 67 53 10 micron 20 micron © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 40 micron 50 micron 120 micron 150 micron 190 micron 7 BaraShield™-663 Seals Pores & Fractures ▌ Slots (150F, 500 psi differential) Total Loss BaraShield-663 @ 10 ppb Fluid Loss @ 30 min, g Competitor @ 10 ppb 19 6 3 200 micron 500 micron Total Loss = Test Failed (No plugging) © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 8 BaraShield™-664 Medium-Sized Granular Multi-Modal LCM Mesh Size (-18/+325) ▌ Key Features Optimal Sized Material − Multi-modal particle size distribution − Proven in lab to quickly seal fractures up to at least 1,000 microns in size − Optimal concentration can be determined using “STRESS-SHIELD Engineering Method” Standard Pit Deployment − Material can be added to existing fluid without altering fluid properties Multi-modal particulate − Not recommended to be used in a reservoir formation © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 9 BaraShield™-664 Medium-Sized Granular Multi-Modal LCM Mesh Size (-18/+325) ▌ Benefits Maintain Wellbore Stability − Prevents or remediates fluid losses in permeable and impermeable formations Versatile Technology − Effective as continuous treatment and also when utilized as LCM pill Increased Rig-Floor Efficiency − Reduces time and effort required to identify the proper mix and time needed to cut multiple sacks − Identify the proper amount utilizing “STRESS-SHIELD Engineering Method” Reduced Costs − Lower inventory, saves rig space and reduces waste Helps reduce HSE Incidents − Less sacks to lift and cut © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 10 BaraShield™-664 Supplemented with BaraLock™-666.F ▌ Slots (150F, 500 psi differential) Total Loss BaraShield-664 @ 40 ppb Fluid Loss @ 30 min, g BaraShield-664 @ 40 ppb + BaraLock-666.F (0.5ppb) BaraShield-663 @ 40 ppb 110 14 2 8 2 500 micron 1000 micron 1500 micron Total Loss = Test Failed (No plugging) © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 11 BaraShield™-664 LCM Helps Operator Drill through Severe Loss Zone, Saving $227K and 2.5 Days Location: Williston, North Dakota, USA CHALLENGE: An operator drilling in the Beaver Lodge field had experienced severe mud losses in the Rival formation. Severe lost circulation was a significant problem on previous wells drilled in this field. SOLUTION: The shakers were screened down to API 20 mesh to prevent screening out some of the LCM particles. Mud losses were observed immediately upon drilling into the Rival, but the BaraShield-664 LCM treatment effectively sealed the problem areas and losses quickly subsided. RESULT: The operator experienced only minimal seepage, and the section was drilled 2.5 days faster than usual average for this area, which resulted in a savings of approximately $200,000 in rig time. The total mud loss volume was reduced by 81% when compared to previous wells, resulting in a $27,000 savings in mud costs. Overall, the operator realized a savings of $227,000. CASE STUDY © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 12 BaraBlend™-665 Premium Granular, High-Fluid Loss LCM Contains Fine-Sized Reticulated Foam ▌ Key Features “Engineered, Composite Solution” − Pre-defined particulate and foam components in a single sack* − Effective as remediation treatment − Proven in lab to seal openings up to 3,000 microns (< 3 mm) Versatile Deployment Fine foam component − Material can be pumped through typical BHAs or used in open-end drill pipe (to be validated in field trial) Multi-modal particulates *BaraBlend-665 is comprised of both fine foam sponges and multi-modal particulates in a single sack. − No specialized pumping equipment required © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 13 BaraBlend™-665 Premium Granular, High-Fluid Loss LCM Contains Fine-Sized Reticulated Foam ▌ Benefits Increased Wellbore Integrity − Proven technical formula to plug fractures via hesitation squeeze Reduced Non-Productive Time − Mitigate partial to severe fluid loss rates Increased Rig-Floor Efficiency − Reduces time and effort required to identify the proper mix and time needed to cut multiple sacks Reduced Costs − Lower inventory with easy to deploy pre-mixed formula in a single sack Helps reduce HSE Incidents − Less sacks to lift and cut © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 14 BaraLock™-666 (.F, .M, .C) Premium Fine, Medium & Coarse-Sized Reticulated Foam LCM ▌ Key Features “Engineered, Supplemental Solution” Highly compressible and resilient reticulated foam material Available in 3 sizes − BaraLock-666.F − BaraLock-666.M − BaraLock-666.C Can be added to any LCM pill Effective substitute for specialty crosslinkable sealants and long fibers Fine Medium © 2014 HALLIBURTON. ALL RIGHTS RESERVED. Designed to plug fractures with large and unknown widths Coarse 15 BaraLock™-666 (.F, .M, .C) Premium Fine, Medium & Coarse-Sized Reticulated Foam LCM ▌ Benefits Maintain Wellbore Integrity − Remediate severe to total fluid losses Reduced Non-Productive Time Versatile Solution − Add to any LCM pill for enhanced fracture plugging for severe/total fluid losses − Three different sizes available to meet the most challenging loss scenarios © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 16 Back Up Why Baroid? © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 1925 Filed patent for first barite-based drilling fluid 1930 First mud school 1932 First mud-testing procedures and kit 1939 First mud-logging service 1940s Pioneers service by air and sea 1950s Invents foam drilling technology 1960s Invents oil-based fluid, Invermul® system 1970s Develops new fluids for hostile geology 1980s Develops mud loop testing, improves waste management 1990s Pioneers biodegradable invert drilling fluids 2000s Rolls out first families of clay-free synthetic and high performance water-based fluids 2010s Introduces automated mud monitoring equipment to industry 18 Consistent Quality ▌ Our Technical and Operational Process © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 19 Baroid Fluid & Waste Management Solutions Water Based Fluids Invert Emulsion Systems Wellbore Stability Lost Circulation Materials Wellbore Clean-Up and Displacement Packages Breaker Systems for Polymer and Solids Removal Lost Circulation in Pay Zones Waste Management Solids Control Equipment and Services © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 20 Discover Baroid Ecosystem Click on image above to launch ecosystem, then click on Launch Interactive ► Where people, processes, and technology are brought together to build customized solutions, optimize performance and deliver distinctive service quality. www.halliburton.com/baroid © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 21