DUO-SQUEEZE® H Engineered, Composite Lost Circulation Material Customer Challenge ▌ Curing Lost Circulation © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 2 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 3 Consistent Quality ▌ Our Technical and Operational Process Identify the Challenge Solution Creation Operations Program Operations Execution Critical First Well Execution © 2014 HALLIBURTON. ALL RIGHTS RESERVED. Knowledge Capture Problem Resolution 4 Present the Value Baroid Laboratory Support ▌ Baroid scientists and engineers work with state of the art equipment and an extensive global database in order to perform comprehensive testing analysis on a global scale. Baroid’s Laboratory Services include: − Analytical technical support − Bioassay technical support − Reservoir fluids technical services − Drilling fluids technical services − Industrial drilling products lab − Quality assurance − Research and development © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 5 Customer Challenge ▌ While an effective wellbore strengthening program is your best defense against lost circulation, complete prevention is not always possible. The lack of a well thought out remediation plan for lost circulation could cause. Increased non-productive time Decreased wellbore value Health and safety issues © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 6 Customer Challenge ▌ Curing lost circulation becomes more difficult based on formation type and rate of fluid loss. Classifications of Fluid Loss* − Seepage: <10 bbl/hr − Partial: 10-50 bbl/hr − Severe: 50-100 bbl/hr − Total: >100 bbl/hr – no returns *The range for each classification vary between operators © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 7 DUO-SQUEEZE® H Lost Circulation Material ▌ An “engineered, composite” lost circulation material with an optimized particle size distribution for increased fracture sealing performance, reducing non-productive time and cost. Reduce Non-Productive Time Save Money © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 8 Customer Benefits ▌ Increased sealing performance Unique composition designed to retain its granularity even under high fracture closure stress Engineered, composite solution with optimized particle size distribution Stable in temperatures up to 400º F (205º C) Exact QA/QC specifications © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 9 Customer Benefits ▌ Versatile LCM material Bi-modal PSD designed to seal wide range of fracture widths Effective as a high fluid loss squeeze or conventional “pill” treatment Compatible with both aqueous and non-aqueous drilling fluids © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 10 Customer Benefits ▌ Reduced Non-Productive Time No reactive components allow for material to be stored and mixed on location for immediate use Requires no trips, specialized spacers, pumping, or mixing equipment Single solution for multiple fluid loss scenarios © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 11 Key Features ▌ Applied as pill or high fluid loss squeeze treatment ▌ Bi-modal particle size distribution ▌ Combination of both resilient and rigid materials ▌ No reactive components ▌ Stable in temperature up to 400° F (205º C) ▌ Compatible in oil, water, and synthetic based fluids ▌ No trips, special pumps, or spacers required ▌ Bit nozzles as small as 11/32 © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 12 DUO-SQUEEZE® H Pill Helped Operator Stop Losses & Save $100K+ by Preventing NPT Location: Zapata County, Texas CHALLENGE: Mud was lost while drilling the Queen City due to fast drilling. The average rate of penetration (ROP) was 160 ft./hr. SOLUTION: A DUO SQUEEZE® H lost circulation material (LCM) pill was spotted at the bottom and throughout the Queen City and also covered another 400 ft. above the Queen City. After four hours to heal, the driller was able to trip to bottom without any weight, circulate with full returns and continue drilling ahead without further mud losses. RESULT: The DUO SQUEEZE H pill saved the operator an estimated $100,000 of rig time, the cost of further LCM pills and the cost of lost mud. CASE STUDY © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 13 Customized Treatment Help Resolve Severe Fluid Losses & Reduce Costs in Highly Fractured Geothermal Wells Location: Geysers, Northern California CHALLENGE: Geothermal wells in Northern California are drilled in highly fractured volcanic reservoirs, where massive fluid losses can bring operations to a halt Previous operators in the area have had to use up to 44 cement plugs in a single section to fight losses While drilling the second well on the same pad in the same zones, 300 bph losses were encountered at 3288 ft. SOLUTION: Baroid engineers engineered treatments containing DUO-SQUEEZE® H and HYDRO-PLUG® LCM with the use of WellSET® to determine the optimal particle size distribution A pill containing 47 ppb DUO-SQUEEZE™ H and 64 ppb HYDRO-PLUG LCM was placed on bottom and drill string was pulled up eight stands. After this pill was spotted on bottom, the operator was able to resume drilling RESULT: The continued application of a series of combined pills including squeeze type materials and bridging agents allowed the operator to reach total depth at 4395 ft. without resorting to cement plugs Eliminating the need to set multiple cement plugs saved the operator approximately $1.5 MM in rig time and treatment costs CASE STUDY © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 14 Related Documents ▌ Sales Data Sheets ▌ Case Histories ▌ Web site © 2014 HALLIBURTON. ALL RIGHTS RESERVED. 15