Extraordinary capabilities for unconventional wells North American shale plays experience and capabilities Horn River Shale Gas Basins Western Canada Devonian/ Mississippian Shale Fairway Mountain Thrust Belt Bakken Marcellus Barnett Haynesville Permian Basin Eagle Ford North American shale gas plays Source: Advanced Resources, SPE/Holditch Nov 2002. Hill 1991, Cain, 1994. Hart Publishing 2008 Customized solutions help you tame the shale plays M-I SWACO knows exactly what operators face every day in developing the North American shale plays. After all, we’ve been there from the beginning. We were there when the Eagle Ford, Marcellus, Bakken, Haynesville and the others were just starting to prove themselves. And we’re with you today, with the people, infrastructure and technologies to help you stay profitable in these challenging frontiers. We understand the technical, operational and environmental challenges you face in developing these resources. We’ve seen first-hand the logistical problems of managing several service providers, with one responsible for fluids, another for solids control, yet another for water treatment and so on. That’s why we deliver a fully customizable package of integrated shale-development solutions. You choose what you need, and we deliver, with all of the communications and logistics worked out in advance. ■■ ■■ ■■ ■■ ■■ ■■ ■■ High performance and environmentally acceptable drilling fluids and additives ■■ ■■ Industry’s most experienced and qualified engineers and service personnel Unparalleled engineering support The most extensive infrastructures in the shale plays Mobile solids-control technologies ■■ Production chemicals Production Testing Services covering frac flowback, plug drill-outs, well testing and pipeline inspection capabilities Specialized wellbore cleanup tools and products ■■ MPD/UBD ■■ Dynamic Pressure Management Produced- and Oilfield Water Management (OWM) and recycling Closed-loop drilling and production waste management systems Optm-izer mobile solids control delivers high-volume barite recovery, processing, dewatering and/or mud stripping No two shale plays are exactly alike, so we adapt accordingly We understand that all North American shale plays must contend with the same general operating parameters: narrow profit margins, tricky drilling conditions, high water consumption, tough environmental issues, complicated completions, remote locations and more. From experience, we also know there are regional differences. In some plays, the main issue is improving drilling rates. In others, it may be dealing with lowgravity solids. In still others, the focus could be conserving water through treating and recycling. Cost-effective technologies help us build the right solutions for you ■■ ■■ That is why our solutions are customized to your situation. Whether it’s modifying a drilling fluid to meet local environmental regulations, finding ways to reduce waste management costs or customizing a local water-treatment system, we do what it takes to keep your project on track. If a solution doesn’t yet exist, we have the R&D capabilities to develop a process or product that gets you closer to your goal. Safe, cost-effective drilling fluids and additives. Many of the same oil-, water- and synthetic-base drilling fluids and additives that help our customers achieve their drilling and environmental goals worldwide are setting records in the shale plays. Our Megadril* oil-base and Megadril P synthetic drilling fluids in conjunction with our Virtual Hydraulics* downhole monitoring software have become the systems of choice in the shale plays. To enhance performance in tight shales, we modify our emulsion packages and other additives specifically to meet local downhole and climatic conditions. The same with the DuraTherm*, EnviroTherm* NT high-temperature water-base drilling fluid for deviated shale wells, along with our inhibitive water-base Kla-Shield system which has proved effective in a number of shale play applications. Comprehensive solids control and drilling waste management. Our understanding of shale development gives you more ways to minimize your environmental footprint and reduce disposal costs of the remaining solid waste. The combination of our high-capacity CD-500* and CD-600* big bowl centrifuges, Mongoose* shaker technology and Verti-G* cuttings dryers reduce the impact of the low-gravity solids (LGS) intrinsic to most shales. Reducing dilution rates and allowing mud to return to the active system generates less waste and reduces haul-off and disposal costs considerably. We also package our solids-control technologies in mobile units, so you can reap the benefits when and where you need them. We developed our closed-loop Optm-izer* solids-control system specifically for land rigs that must perform specialized solids-control operations from time to time. This mobile system delivers high-volume barite recovery, processing, dewatering and/or mud stripping, and can be up and running at your site in two hours. We also offer mobile versions of our Verti-G cuttings dryers that reduce the volume of drill wastes, without the costs of a permanent installation. ■■ Mobile and permanent water-treatment technologies. Conserving local freshwater supplies represent a tremendous challenge for shale operators. That’s why we established our Oilfield Water Management (OWM) group, dedicated to protecting this precious natural resource. Through the OWM group, we introduced our Aqualibrium* balanced approach to frac flowback and produced water management. Aqualibrium water management utilizes proven, field-tested treatment technologies to remove the volume of total suspended solids, allowing the frac or produced water to be recycled for reuse or discharged into its natural environment. As your produced water increases, we can provide permanent, centralized full-scale water-treatment facilities. ■■ Production Technologies. The integrated capabilities we bring to your shale project continue after the well is drilled. Our Production Technologies Group offers a suite of chemical solutions, all customized for your specific needs. Our chemical solutions are formulated specifically to optimize your processes, while ensuring the long-term protection and profitability of your assets, all with minimal downtime. We offer a range of liquid H2S scavengers, corrosion, paraffin and scale inhibitors, demulsifiers, defoamers and biocides, among others. Our services include pre-frac analysis to identify any problems you may encounter and afterwards we provide long-term monitoring to measure frac performance and ensure your production continues to run at full capacity. Our capacity to engineer solutions on-the-fly enables us to react quickly to any problem that may arise. If the H2S concentration is beyond economical treatment with our liquid scavengers, we offer our SulfaTreat technology, which has long been the industry standard for removing H2S from water-saturated gas streams. Once your gas is on its way to the burner tip, our Pipeline Services Group keeps production flowing. Our services include the disassembly of permanently installed equipment, inspection, cleaning, testing, launching and receiving pigs, and reassembly. We even install corrosion coupons and other permanent monitoring devices. Our services extend to providing the documentation you need to comply with DOT and other regulatory requirements. Our fully integrated portfolio also extends to our: ■■ Well Commander* and other specialized wellbore cleanup tools ■■ Managed Pressure Drilling, UBD-Dynamic Pressure Management ■■ Frac water treatment and chemicals ■■ Composite shaker screens And, if your next shale project uncovers another need, we’ll find the solution. Our people make it work Our engineering, service and support network has long been recognized for its skilled, experienced and dedicated people. Many of our wellsite and support specialists began their careers within the shale plays, so they know what needs to be done to make your project a success. The extensive training and development programs within our organization help them refine their knowledge to serve you even better. With many areas within the shale plays facing tough economic times, M-I SWACO makes a concerted effort to retain and develop local personnel. You are drilling near an M-I SWACO facility, wherever you are. We operate a fully centralized network of liquid mud plants, warehouses, bulk storage facilities and drilling waste management centers in every shale play. We continually replace older facilities with new plants, warehouses and service networks – all with the aim to serve you even better now and in the future. To learn more about our integrated solutions and how they’re performing for operators throughout the North American shale plays, contact the M-I SWACO office nearest you. Eagle Ford Well before there was a boom, there was M-I SWACO Production Technologies put clamps on H2S, paraffin build-up The situation Producers in the Eagle Ford play must confront high concentrations of paraffin, which if not treated effectively, clog up gathering lines and processing equipment. The end results are downtime and restricted production. There are also high hydrogen sulfide (H2S) concentrations that can exceed sales gas contract specifications. Gas and oil sales can be interrupted if H2S scavenger treatments are ineffective. The Solution M-I SWACO Production Technologies provide Eagle Ford operators tailored chemical solutions that effectively inhibit paraffin deposit and problems associated with H2S. We begin with a pre-frac analysis of both the frac water and produced fluids from wells in the same zone. This data allows us to customize a solution tailored for your specific need. Once production is initiated, our continuous monitoring services and technologies ensure it flows unrestricted for the life of your asset. We also provide the data you require for all regulatory compliance. The Results Our Production Technologies group and our highly experienced technicians and engineers, have stepped in to quickly engineer a solution specifically for our clients’ requirements. The end result has been consistently cleaner and unrestricted production that flows trouble-free with minimal downtime. Our paraffin inhibition solutions have ensured Eagle Ford producers that their equipment will remain in top operating condition, meaning unobstructed production for the life of their asset. Years before the Eagle Ford became North America’s fastest growing gas, oil and condensate play, M-I SWACO was there. With central locations throughout South Texas, we have a long established history in the region, where we have helped operators successfully drill some of the industry’s most challenging wells. Along with an unequaled infrastructure, we continue to help operators set new standards in drilling and environmental performance. Our Megadril oil-based drilling fluid consistently raises the bar for cost-effective drilling rates. Our comprehensive range of drilling waste management and frac water treatment systems routinely reduces the environmental footprint and costs. An infrastructure that is growing still We may have the best, but we certainly are not finished. With two new major facilities in operation and another on the books, we can provide 100 percent coverage of the Eagle Ford. The Eagle Ford infrastructure Facility location Capabilities Beeville – 50 years of service Liquid, bulk storage Capacity 8,000 bbl liquid storage tanks 10,000 sack barite storage tanks 1,000 bbl diesel tank 500 bbl calcium chloride tank 8,000 bbl frac tanks Edinburg – 50 years of service Liquid, bulk storage 9,000 bbl storage tanks Mud mixing 15,000 bbl storage tank Lab 10,000 sack barite storage tank 1,000 bbl mixing tanks 1,500 bbl diesel tank 500 bbl calcium chloride tank 5,000 bbl frac tanks Carrizo Springs, Asherton (New) Warehouse 8,000 bbl horizontal liquid storage tanks Lab 5,000 sq ft warehouse Liquid storage Quarters Pleasanton – PT warehouse Q1-2011 Storage and delivery of full line of Production Chemicals Fleet of flow back Test Trailers Corpus Christi, TX Drilling Waste Management MPD/UBD Equipment and Services Pressure Control Equipment and Services Solids Control 18,750 gallon bulk 17,640 gallon bulk Total future bulk capacity36,390 gallons Full inventory and service of all Drilling Waste Management and Pressure Control Equipment Eagle Ford What sets M-I SWACO apart from all the rest ■■ Most extensive infrastructure in the Eagle Ford ■■ Most experienced field engineers and service specialists ■■ High-performance oil-based drilling fluid ■■ All-inclusive drilling waste management technologies ■■ Frac water treatment systems ■■ MPD/UBD – Dynamic Pressure Management ■■ Pipeline inspection services ■■ SulfaTreat H2S removal ■■ Production chemicals ■■ Production testing services capable of providing experienced personnel and fit-for-purpose equipment during plug drill-outs, frac flow-backs and well testing operations Haynesville When the heat’s on, we’re at our best All-inclusive approach to reducing waste management costs The Situation Operators in the Haynesville Shale saw their disposal costs of oil-base mud cuttings skyrocketing. Yet, between deviated wells and bottomhole temperatures (BHT) approaching 400°F (204°C), they had little choice but to use an invert emulsion fluid. The Solution M-I SWACO stepped in with a viable and comprehensive solution. We began at the beginning with our DuraTherm* hightemperature water-base drilling fluid that has shown its capacity to remain stable at BHT exceeding 500°F (260°C) while generating cuttings with lower disposal costs. To optimize lubricity in the deviated wells, we added our Alpine Drill Beads additive, a mechanical lubricant that likewise remains stable under extremely high downhole temperatures. We also provided all inclusive solids control, including our mobile Verti-G cuttings dryer and CD-500 big bowl centrifuges to reduce cuttings volume and haul-off costs. In addition, we brought in our Oilfield Water Management group to conserve and reuse the large volume of frac water required. The Results The DuraTherm and Alpine Drill Beads combo did its part delivering sliding ROP of up to 30 ft/hr (9 m/hr) and rotating ROP as high as 80 ft/hr (24 m/hr) with no hole problems, and despite BHT consistently higher than 350°F (177°C). Our CD-500 centrifuges with 40% higher volume were able to consistently keep LGS at just over 4% with reduced dilution. The Haynesville Shale can tax the expertise of the savviest operator. Haynesville horizontal wells are not only deeper than most shale plays, but also generate bottomhole temperatures that can reach 400°F (204°C) and wellhead pressures exceeding 10,000 psi. There’s also the matter of inherent low gravity solids (LGS) that create any number of downhole problems, and make fluid conditioning and reuse a challenging and expensive proposition. What’s more, the already tight profit margins of Haynesville wells are stretched even more with the high costs of waste haul-off and disposal. For M-I SWACO, all this represents opportunities to deliver integrated and costeffective solutions to meet all your drilling, production and waste management needs. Our DuraTherm* high-temperature water-based drilling fluid generates the drilling rates you require with reduced disposal volumes and costs. Our mobile Verti-G cuttings dryers help rein in the percentage of LGS and lower your haul-off costs. Our dual high-volume CD-500 big bowl centrifuges are field-proven to reduce both dilution and barite consumption. That’s not all. Our specially trained Oilfield Water Management group has recovered and treated more than 80% of the frac water for reuse on jobs in which they were utilized. Additionally, Production Testing Services located in Kilgore, TX allows you to safely and efficiently conduct frac flowback clean up and production testing operations including plug drill-outs. Haynesville The area’s most extensive infrastructure and still expanding M-I SWACO has a long-established presence within the Haynesville with an infrastructure in East Texas and Northwestern Louisiana second to none. Our new state-of-the-art liquid mud plant in Minden, LA and our newly expanded Liberty, TX facility further augment the play’s most comprehensive network. As an added bonus, many of our field engineers and support personnel have long called the Haynesville area home, so they know this area and your needs better than anyone. The Haynesville infrastructure Facility location Capabilities Capacity Minden, LA Liquid mud plant 12,000 bbl storage Mixing and storage 1,000 bbl mixing tanks Distribution Centre 500 bbl diesel storage tank Shreveport, LA (N. Louisiana Engineering Office) Service support Service Drilling Waste Management Liberty, TX Drilling Waste Management 1,000 bbl CaCl2 storage tanks Pressure Control Equipment Pressure Control Equipment and services Full inventory and service of all Drilling Waste Management and Pressure Control Equipment Kilgrove, TX Production Testing Services 10k and 15k rated Well Testing Equipment Tyler, TX (East Texas Engineering Facility) Drilling Waste Management Pressure Control Equipment and services Full inventory and service of all Drilling Waste Management and Pressure Control Equipment Aledo, TX Service support Service Drilling Waste Management and Pressure Control Equipment What sets M-I SWACO apart from all the rest ■■ Most extensive infrastructure in East ■■ High-pressure frac flowback and Texas/Northwestern Louisiana gas well testing ■■ ■■ ■■ ■■ Haynesville’s most experienced field engineers and service specialists High-performance oil and water-base drilling fluids All-inclusive Vibratory Systems Analysis Testing* (VSAT) Program solids control technologies to reduce LGS, dilution and haul-off costs Daily tracking of waste haul-offs ■■ ■■ Oilfield Water Management systems Dynamic pressure management, including Autochoke* ■■ SulfaTreat H2S removal ■■ Production Chemicals ■■ Asset Protection ■■ Pipeline Integrity (reporting) Production Testing Services saves the day in high-pressure frac plug drill out The Situation During frac flowback and plug drill out operations on a Haynesville shale well, the flowback service provider clogged up its plug catcher after coiled tubing drilled through two plugs. The plug catcher was bypassed in an attempt to maintain flow and prevent sticking coiled tubing but the flow manifold was also plugged. The fluid pumps were shut down and the coiled tubing was stuck. The operator requested M-I SWACO provide equipment and personnel to flowback the remaining 19 plug drill out returns. Solution M-I SWACO recommended a 15K psi working pressure equipment package that included the newly designed dual plug catcher, sand separator and hydraulic dual choke manifold. By monitoring differential pressures upstream and downstream of the mandrels, M-I SWACO technicians alternated the flow as needed between the two mandrel barrels to keep plug parts trapped and blown into the dedicated debris tank. This process ensured the pumps remained in operation throughout the drill out, sustaining continuous flow. Results After rigging up the dual plug catcher, sand separator, and dual hydraulic choke manifold, the remaining 19 plugs were drilled out successfully. Use of the innovative dual plug catcher allowed the operation to be completed without recurrent pump shut downs and stuck coiled tubing. Additionally, negligible damage to internal choke parts was observed. Marcellus Adapting to ever-changing drilling and environmental demands Megadril P fluid meets environmental regulations, delivers optimum drilling rates The Situation Operators in the Marcellus Shale faced a dilemma. While optimum drillability in the highly deviated wells comprising long reactive shale sections required an invert emulsion drilling fluid, regulations discouraged the use of a conventional diesel base oil mud. The Solution M-I SWACO once more showed our ability to adapt to local conditions by modifying our high performing Megadril oil-base drilling fluid with an environmentally acceptable synthetic base fluid. The drilling and environmental demands of the prolific Marcellus Shale play of the Eastern US are ever-changing. With our well-established, and growing, presence in the heart of the play, M-I SWACO knows better than anyone what you need and when you need it. And, no one is better prepared to respond. When local regulators discouraged the use of oil-base drilling fluids for these demanding horizontal wells, M-I SWACO stepped in with a viable solution. We modified our high-performance Megadril oil-base drilling fluid into what the regulators recognized as a true synthetic-based system. The Marcellus is now the only US onshore drilling location to employ a synthetic-base drilling fluid. And, that’s not all. The brittle shales intrinsic of the Marcellus Shale generate a highpercentage of low-gravity solids. Once more, we responded with our CD-500 XV and CD-600 big bowl centrifuges and VSAT service that allowed operators to treat higher volumes, more effectively and with lower costs. The Results Recognized as a true synthetic system, the resulting Megadril P not only met all the environmental specifications, but has consistently delivered the performance operators had come to expect. Marcellus operators have employed the Megadril P and Virtual Hydraulics combination in more than 100 wells where it slashed the days required to drill 10,000 ft (3,048 m) to an average of 19.9 days compared to the 28.4 days average it recorded with a waterbase drilling fluid. At the same time, average cost per foot dropped from $37 for water-base mud to $24/ft in the build and horizontal sections of the well. To help operators keep an even tighter rein on high waste disposal costs we introduced our groundbreaking Mongoose* dual motion shale shaker. Today, it is by far the most widely used shaker in the Marcellus Shale. We further reduced waste disposal costs with our mobile Verti-G cuttings dryers that use high-speed centrifuges for maximum liquid/solid separation. There is also our Oilfield Water Management group that effectively treats the high volumes of frac and produced waters to conserve precious local supplies. When H2S began to appear in this emerging field, we were among the first to respond. Our industry-leading SulfaTreat H2S removal technology has successfully treated an average of 894 Mmcf of Marcellus gas annually with an average H2S concentration of 50 ppm/Mcf. Marcellus The people and infrastructure to keep you on target M-I SWACO operates the most extensive network of liquid mud plants, storage facilities and service locations in the Marcellus. While we already are well-positioned to meet all your drilling, production and environmental needs, we continue to expand with new locations to serve you even better. In addition, with many of the municipalities within the Marcellus play facing economic constraints, we made a firm commitment to attract and retain local personnel wherever possible. Today, more than 80% of the service and support staff within our solids control and environmental groups grew up in states within the Marcellus play, with a home-grown incentive for exceptional performance. The Marcellus infrastructure Facility location Capabilities Capacity Williamsport, PA Liquid, bulk storage, warehouse 10,000 bbl liquid storage tanks Temporary liquid mud plant (opened January 2011) 12,000 sack barite storage tanks 2,500 bbl synthetic-base oil storage tanks Permanent new facility (opens May 2011) 1,000 bbl calcium chloride tank 1,000 bbl mix pits 50,000 sq ft warehouse and offices Buckhannon, WV Warehouse 25,000 sq ft warehouse Service Support 8,000 sack barite storage – planned availability June 2011 Solids control, drilling waste management equipment/services Watsontown PA Warehouse Drilling Waste Management Pressure Control Equipment and services Oilfield Water Management Services Service Drilling Waste Management and Pressure Control Equipment Full inventory and service of all Drilling Waste Management and Pressure Control Equipment Solids control What sets M-I SWACO apart from all the rest ■■ ■■ ■■ Most extensive drilling fluid, solids control and drilling waste management infrastructure in Eastern US Most experienced field engineers and service specialists High-performance synthetic-based drilling fluid ■■ All-inclusive solids control technologies to reduce LGS, dilution and haul-off costs ■■ Oilfield Water Management systems ■■ SulfaTreat H2S removal Operator reaches Aqualibrium in water treatment The Situation An operator in the Marcellus Shale was fracturing up to five wells a week with average consumption of 150,000 bbl of water per frac job with a combined flowback of around 112,000 bbl per week. Between the local communities’ sensitivity to freshwater consumption, tightening disposal regulations and the high costs of treatment and disposal, something had to be done. The Solution The M-I SWACO Oilfield Water Management (OWM) team recommended the newly engineered Aqualibrium Filtration System designed to remove Total Suspended Solids (TSS) up to the operator mandated 20-micron size. This met and exceeded specifications for reuse of flowback water which was the objective of the system to reuse flowback fluid on the next frac job. This would minimize disposal and reduce consumption of water from the local township, and cut trucking requirements, minimizing the overall environmental footprint and preventing production-restricting formation damage. The Results We exceeded the operator’s expectations by establishing and operating two central Aqualibrium treatment centers. A primary component of our reclamation water treatment system, Aqualibrium further exceeded expectations by treating up to 1.8 million bbl of frac/produced water with 99% of the water recovered and 100% recycled. What’s more, we did so with no downtime in the operations. Bakken The most experience and capabilities in the Williston Basin Production Testing Services provides fit-for-purpose solution for Bakken well The Situation While the operator’s well delivered high oil and gas rates, it came with slick water that created a tough emulsion, as well as environmental hazards, because of the difficulty of controlling foaming and emulsion issues. The slick water discharged gas vapor into open top tanks, creating an environmental and explosive hazard due to the proximity of a nearby flare stack. The Solution Production Testing Services evaluated the difficult situation and provided a unique fitfor-purpose solution. Discussions with the client resulted in a two-pronged approach. The first focused on optimizing separation and retention time of fluids to mitigate foaming and emulsions. The second approach was to engineer and manufacture a fully enclosed frac flowback tank, allowing proper ventilation away from work areas and LEL sensitive areas. The Results Since these changes were implemented, the volume of slick water and emulsion shipped to production facilities has been reduced to nearly zero. The work areas and LEL sensitive areas are virtually free of explosive vapors, allowing wellsite crews to work in a safe environment and significantly improving the environmental risk assessments of the wellsite. When you have helped drill more than 500 wells over five years, you learn a thing or two about an area. That defines what M-I SWACO brings to the Bakken Shale. Besides delivering the most cost effective drilling rates in the Bakken, our all-inclusive capabilities extend to waste management and water treatment technologies, all designed to reduce your costs and environment footprint. Our experience in drilling the demanding long laterals that define the Bakken Shale are unmatched. Combined with our pacesetting Megadril oil-base drilling fluid, the Virtual Hydraulics downhole modeling software package continues to set new drilling standards throughout the Williston Basin. Our Alpine Drill Beads additive mechanical lubrication technology slashes torque and drag of long Bakken laterals, effectively cutting two to 10 days off drilling times. M-I SWACO also is at the forefront of closed loop waste management and water treatment systems, featuring our revolutionary Optm-izer* mobile, high-efficiency solids control technology and compact dewatering units. Our closed-loop systems also incorporate high-volume CD-500 big bowl centrifuges and Verti-G cuttings dryers, designed to reduce cuttings volume and disposal costs. This technology helps you drill from smaller pads, reducing your construction and reclamation costs while minimizing the environmental impact. We also recognize that to the communities and ranchers in the arid Williston Basin water is a most treasured resource. Our Oilfield Water Management team is helping Williston operators conserve the frac and produced water their operations generate. We extend that effort with our single-unit frac water and reserve pit clean-up system, which uses a field-proven chemically enhanced process to minimize your waste stream. Additionally, we provide specialized production testing equipment and trained personnel qualified to perform flowback and clean up operations during drill-outs and production testing after frac jobs. Well-established infrastructure that continues to expand With Bakken wells typically off the beaten path, logistics plays an even greater role than elsewhere. M-I SWACO recognized very early on that operators in the Williston Basin needed a service provider that they could count on and we responded. Today, we operate the most extensive infrastructure in the Williston Basin and one that continues to grow. Our new state-of-the-art liquid mud plant and storage facility in Stanley, ND is by far the preeminent service and supply center in the Williston Basin. Our attention to detail even extends to heating all the mud tanks with glycol to ensure against supply interruption due to weather. Bakken The Bakken infrastructure Facility location Capabilities Capacity Stanley, ND (New) Oil-based mud, completion fluids, bulk barite storage 15,000 bbl mud storage 8,000 ft3 barite blimps with 10,000 sack capacity Warehouse 8,000 sq ft warehouse Return mud cleaning station with Meerkat* shaker 30 hp mud vacuum system Accommodations Williston, ND (2 facilities) Drilling, completion fluids Combined 11,200 sq/ft indoor product storage Bulk barite Combined 53,560 sq/ft outdoor product storage Shaker screens and solids control equipment Drilling Waste Management Pressure Control Equipment and services Belfield, ND Drilling/completions fluids Full inventory and service of all Drilling Waste Management and Pressure Control Equipment 6,000 sq/ft indoor product storage 43,560 sq/ft outdoor product storage 1,200 bbl brines storage Dickinson, ND Minot, MD District office 13,000 bbl OBM storage Oil-based mud plant 1,400 bbl brine storage New mix tank with shear hoppers, expanded storage and glycol boiler 43,560 sq/ft yard area Production Testing Services Complete line of winterized equipment with experienced personnel trained to respond to Bakken Shale specific conditions What sets M-I SWACO apart from all the rest ■■ ■■ Most extensive infrastructure in Williston Basin Only fluid company permitted to operate in prolific Fort Berthold reservation. Megadril oil-based drilling fluid, completion brines ■■ Closed-loop solids control, waste management systems ■■ Oilfield Water Management and reserve pit clean-up ■■ Durable, high efficiency composite shaker screens on 70% of Bakken rigs ■■ ■■ Winterized frac flowback and production testing equipment operated by experienced testing personnel Megadril emulsion package modified for cold temperatures Horn River We perfectly balance HSE, cost-effective performance Innovation helps operators mitigate oil-base HSE concern The Situation Perhaps no single shale play in North American can approach the operational and logistical challenges of the Horn River: multiwell pads holding up to 16 wells, enormous volumes of stimulation fluids required for the 15 – 25 intervals per well, producing up to 200 tons of sand per interval to be managed and over 300 fracs pumped on one pad, gas flow back at high rates and temperatures approaching 176°F (80°C), and equipment and personnel that must withstand arctic-like temperatures that can slide to -107ºF (-40°C). In the Horn River, operations also move very quickly from well to well, meaning a host of equipment and personnel are operating continuously from a single pad on everything from perforating to fracing to running plugs to coiled tubing drill-outs and snubbing operations. Few drilling theaters in North America are as environmentally sensitive as the prolific Horn River gas shale basin of Northeastern British Columbia, Canada. Horn River also features highly deviated wells drilled in an extremely remote area, requiring the ultimate in drilling fluid performance and delivery. The integrated capabilities of M-I SWACO score at the top on all counts. The Solution To keep your first production on or ahead of schedule, we bring three to four high-pressure four-phase separators to each individual operation, meaning production can hit the sales line while the completion is still in progress. In fact, we have helped put upwards of 100 mmcfd of gas into the pipeline before the project is officially completed. We provide everything you need for a portable, temporary gas processing plant, including turbine flow meters, flow line and ESD systems, debris catchers, choke manifolds and pressurized storage vessels for the returned solids. The Results The end result is a well-coordinated and continuous operation that leaves nothing to chance, leaving you free to concentrate on the large volume of gas being delivered to the market. We handle the rest and do it quickly to ensure no delay in your revenue stream. Throughout the Horn River, our approach to completing wells and getting them on stream quickly has delivered considerable economic benefits to our clients. The combination of our high-performing Megadril oil-based mud and the Virtual Hydraulics downhole monitoring software package consistently records exceptional drilling rates. To help reduce both the environmental footprint and waste management disposal costs, we offer a full inventory of solids control technologies, including our state-of-the-art CD-500 and CD-600 big bowl centrifuges. There’s also our mobile Verti-G cuttings dryers that help cut both the disposal costs and the volume of waste generated. Our infrastructure helps makes the Horn River a bit less remote Our commitment to meeting all your drilling, completion and waste management requirements extends to an infrastructure designed solely for the logistical challenges of the Horn River. In fact, we are the only local company in British Columbia with the infrastructure to deliver mixed and ready-to-run oil-base mud from the plant to the rig, saving you both time and costs. Our unique service capabilities extends to the area’s most experienced and skilled drilling fluid engineers and waste management specialists. We are the only company with four exceptionally experienced drilling fluid field superintendents who support our wellsite engineers. Horn River Western Cana The Horn River infrastructure Facility location Capabilities Capacity Fort Nelson, BC (New) Oil-base mud, brine plant OBM capacity: 9,057 bbl (1,440 m3) Base oil capacity: 2,264 bbl (360 m3) Bulk barite storage Brine capacity: 755 bbl (120 m3) 4x250 hp pumps for proper shearing Mixing tanks: 755 bbl (120 m3) Bulk barite storage: 4 tanks 160 metric ton Each premix tank is powered by two 200 hp diesel engines that feed the gun rows as well as a hi-ride mix hopper Fort St John, BC Frac flowback and Production Testing Services support Grande Prairie, AB Oil-base mud plant, bulk storage, solids control, drilling waste management equipment OBM capacity: 9,065 bbl (1,455 m3) Base oil capacity: 3,613 bbl (580 m3) Mixing tanks: 755 bbl (120 m3) Bulk barite storage: 80 metric ton Premix tank is powered by one 250 hp diesel engine that feeds the gun rows as well as a hi-ride mix hopper Spruce Grove, AB Oil-base mud plant, bulk storage, solids control, drilling waste management equipment OBM capacity: 8,784 bbl (1,410 m3) Mixing tanks: 997 bbl (160 m3) Bulk barite storage: 300 metric ton What sets M-I SWACO apart from all the rest ■■ Only local company with infrastructure capable of delivering ready-mixed mud to location ■■ Highly experienced drilling fluid engineers, including dedicated field superintendents ■■ Full line of high performing oil- and waste-base drilling fluids ■■ ■■ ■■ All-inclusive solids control, drilling waste management technologies and services Frac flowback, well cleanup including plug drill-outs and production testing CarbonTracker* gas flow measurement system for determining gas volume produced while drilling ■■ MPD/UBD dynamic pressure management ■■ Aqualibrium water treatment technology Permian Basin Integrated offerings set us apart in competitive market Megadril fluid slashes drilling days in Permian shale plays The Situation Operators in the shale gas plays of the Permian Basin requested an oil-base drilling fluid that would reduce their drilling days and associated costs. The mature Permian Basin is one of the most competitive and cost-intensive drilling theaters in North America. It takes a company that delivers outstanding service and cost-effective technologies to stand out. Since the beginning, M-I SWACO has been such a company. The Solution In response, the local M-I SWACO team introduced the one-drum Megadril oil-based drilling fluid to deliver high ROP and reduced rig time. The Results Megadril fluid has emerged as the oilbased system of choice for operators in the Permian shale gas plays. In one 16,379 ft (4,992 m) MD Bone Springs well with a 5,424 ft (1,653 m) lateral, a 12 lb/gal (1.4 sg) Megadril system completed the well trouble-free in 30 days, making it one of the operator’s fastest wells in the area. We have had a continual presence in the Permian for several decades and that extends to the emerging Avalon/Bone Springs/Leonard shale play of West Texas and Southeastern New Mexico. We know better than anyone what it takes to drill technically demanding Permian wells, including the often highly pressured sands. We, likewise, know how to deliver cost-effective drilling performance in the long laterals intrinsic to the area. Today, our high performing Megadril oil-base mud routinely generates unequaled and cost-effective drilling rates throughout the Permian shale play. We also help operators reduce their waste volume and disposal costs with a complete inventory of solids control and dewatering technologies, including state-of-the-art closed-loop systems. To deal with the high pressures, we offer our sophisticated dynamic pressure management technologies. To further improve efficiencies, we introduced our Well Commander* ball-activated drilling valve for quickly spotting lost circulation material in high-flow rate applications. Our Production Testing Services group offers cost effective solutions with excellent well clean up operations from managing dynamic plug drill-out operations to production well testing. Permian Basin Our people and locations make the difference In a competitive environment like the Permian Basin, operators deal only with companies they know they can trust to deliver value and optimum service, when and where they need them. M-I SWACO has long been that company. It all starts with our highly skilled drilling fluid and project engineers, many of whom grew up in the Permian Basin and know what to expect when the bit touches the ground. Of course, a region as vast as the Permian Basin requires a sweeping infrastructure. M-I SWACO takes top billing in that respect. Our network of upgraded liquid mud plants and drilling waste management facilities is scattered throughout West Texas and Eastern New Mexico. What’s more, our flexibility means if other facilities are needed to serve you better, we’ll be the first to respond. The Permian Basin infrastructure Facility location Capabilities Capacity Hobbs, NM Liquid, bulk storage, warehouse Full line of frac flowback and well testing equipment Production Testing Services Midland, TX Liquid, bulk storage, warehouse 500 barrels 2,000 barrels Bulk barite 59,330 ft3 Gel 2,660 ft3 Odessa,TX Drilling Waste Management equipment, support Full inventory and service of Drilling Waste Management Pressure Control Equipment Drilling Waste Management pressure Control Equipment and services What sets M-I SWACO apart from all the rest ■■ Most experienced drilling fluid engineers in Permian Basin ■■ Widespread infrastructure ■■ Megadril oil-base drilling fluids, full suite of completion brines and additives ■■ Closed-loop drilling waste management, dewatering systems ■■ MPD/UBD – Dynamic Pressure Management ■■ Well Commander ball-activated drilling valve ■■ SulfaTreat H2S removal technologies ■■ Job specific production testing equipment and experienced field personnel ■■ High Pressure Well Testing ■■ Oilfield Water Management Barnett When rigs meet the city, we offer the total solution Alpine Drill Beads additive and DBRU reduce torque, increase ROP The Situation Operators in the Barnett Shale faced a persistent problem of increased torque and decreased ROP once the build section was completed and drilling of the lateral began. The Solution As always, we had the solution. We suggested the operator incorporate our Alpine Drill Beads mechanical lubricant in the PAC mud system and employ the Drill Bead Recovery Unit (DBRU) to recover the used beads for use on the next well. The Results Drilling rates improved dramatically. After adding 3% by volume of Alpine Drill Beads additive, the operator saw torque drop 20% almost immediately with a corresponding 10% increase in ROP. The high performance was maintained throughout the rest of the well. Operators in the high-value and highly competitive Barnett Shale must address challenges most will never face. Since the core area of the Barnett is within city limits, operators must contend with both local governments and neighborhood associations. It’s no surprise then that HSE issues take on an entirely new dimension and it should also be no surprise that M-I SWACO always has been the first company the operators call. We provide drilling fluids, additives and wellsite service through a local distributor. However, we made our mark in the Barnett with exceptional solids control and drilling waste management technologies. Owing to the proximity of rigs to communities, traditional waste management methodologies, like reserve pits, were off the table. But, as is our custom, we responded with an innovative closed-loop solids control and containment systems. We also developed dewatering systems to help conserve local freshwater supplies by treating and reusing water for fracing, well completions or reuse in the drilling fluid system. Fluids and solids control equipment close at hand Our service and supply facilities are close to all the action within the Barnett Shale play, ensuring timely and effective service. Operating from those bases, are highly experienced drilling fluid engineers and drilling waste management specialists. The Barnett Shale infrastructure Facility location Capabilities Capacity Aledo, TX Frac water treatment services Service Drilling Waste management Pressure Control Equipment Solids control, drilling waste management equipment and services Shamrock, TX Storage and delivery of full line of Production Chemicals Foamer Test Trailers Treater Trucks Alvarado, TX Production Testing Services In service: 17,640 gallon bulk 6,250 gallon bulk Standby: 25,000 gallon bulk Total bulk capacity 48,890 gallons Complete line of production testing equipment with experienced personnel trained to respond to Barnett Shale specific conditions Barnett What sets M-I SWACO apart from all the rest ■■ Exceptional technical service ■■ Oilfield Water Management technologies for frac water ■■ Closed-loop drilling waste management technologies ■■ SulfaTreat H2S removal technology ■■ Full line of production chemicals ■■ ■■ ■■ ■■ High performing Mongoose* shakers, high-volume CD-500 and CD-600 centrifuges and a complete inventory of composite shaker screens Mobile Verti-G cuttings dryers Production testing services capable of providing experienced personnel and fit for purpose equipment during plug drill-outs, frac flow-backs and well testing operations MPD/UBD – Dynamic Pressure Management Image courtesy of OGFJ This information is supplied solely for informational purposes and M-I SWACO makes no guarantees or warranties, either expressed or implied, with respect to the accuracy and use of this data. All product warranties and guarantees shall be governed by the Standard Terms of Sale. Nothing in this document is legal advice or is a substitute for competent legal advice. ©2010 M-I L.L.C. All rights reserved. *Mark of M-I L.L.C. GBR.1901.1104.R1 (E) Digital in U.S.A. P.O. Box 42842 Houston, Texas 77242-2842 www.miswaco.slb.com Email: questions@miswaco.slb.com