HiWAY Putting Your Production into the Fast Lane Place Date HiWAY Putting Your Production into the Fast Lane Conventional Treatment HiWAY Flow-Channel Treatment Place Date HiWAY: A Paradigm Shift in Hydraulic Fracturing 1950 1960 1970 1947 First hydraulic fracturing job 1950 Fracturing using gelled oil 1960 Water-based, non crosslinked fluids 1968 Borate crosslinked fluids 1973 Crosslinked derivatized guars (HPG, CMHPG, etc) 1980 1977 High-strength ceramic proppants 1980 Foamed fracturing 1990 1988 Encapsulated breakers 1990 Fiber based flowback control 1994 Low polymer loadings 1997 Viscoelastic surfactants (VES) 2000 2001 Micro-seismic used to monitor frac jobs 2003 Horizontal well, multistage fractures 2005 Fiber based proppant transport 2010 2010 HiWAY* Flow-Channel Fracturing 2011 Complex fracture modeling 3 HiWAY® Presentation HiWAY is Applicable in a Broad Range of Reservoirs Oil, condensate-rich and gas wells Competent rock – Sandstone/carbonate/shale (E/σMIN > 275) Requires the use of viscous fluids Cased hole, open hole, vertical and horizontal wells BHST < 345 oF (< 174+ oC) 4 HiWAY® Presentation Conventional Job – Blender Operation Sand Chemicals & Water 5 HiWAY® Presentation HiWAY Job – Blender Operation Sand Chemicals & Water Fiber 6 HiWAY® Presentation High Pressure Pumping 7 HiWAY® Presentation HiWAY Execution Schematic pump schedule Sand Concentration Conventional HiWAY Pad Time Clean Fluid (clean) pulse Proppant (dirty) pulse Cycle 8 HiWAY® Presentation Tail-in stage HiWAY Execution Actual pump schedule in typical HiWAY job 600 4 3 2 1 0 Sand Concentration, kg added/m3 Sand Concentration, PPA 5 480 360 240 120 0 11:39:43 11:46:23 11:53:03 9 HiWAY® Presentation 11:59:43 High Pressure Pumping Flow in treating lines: Rate: 18 BPM Length: 600 ft 3” treating line concentration, PPA Qualification Tests: Yard Scale No significant dispersion 5 Initial After flow 4 3 2 1 0 0 Linear velocity: 1 ft/sec Length: 110 ft Tube ID: 0.8” (2 cm) No significant dispersion under presence of fibers 10 15 Time, seconds 10 Concentration, PPA Flow in the pumps, perfs and fracture: 5 20 25 With fibers 8 Without fibers 6 4 2 0 0.0 10 50.0 100.0 150.0 Time of Experiment, sec HiWAY® Presentation 200.0 Perforation Scheme Vertical Well Cluster perforations Standard perforating equipment Limited entry type scenario 1-2 bpm / perf target Horizontal Well Cluster perforations Existing technique usually applicable 11 HiWAY® Presentation Downhole Placement Frac geometry Similar to conventional jobs Perforations Break up proppant pulses Pulses form hetereogenous placement within the formation Tail in Critical stage at end of job to connect to wellbore 12 HiWAY® Presentation Downhole Placement Conventional SPE # 155684 Conventional 13 HiWAY® Presentation HiWAY HiWAY Production Path Conventional Proppant Pack Mesh Size Proppant Strength HiWAY Channels Infinte conductivity Tail-in is critical Clean-up HiWAY requires less time HiWAY flows back more 14 HiWAY® Presentation Production Path Conductivity: Model vs. Experiment 15 HiWAY® Presentation Effective Half-Length Conventional Xeff = 50% of Xpropped Gel damage Non-darcy effects Crushing effects HiWAY Xeff = 85% of Xpropped Clean-up longer interval due to conductivity Lower pressure drop across fracture Channels connect fracture 16 HiWAY® Presentation Benefits Production Increase Usually 20% in tight rock Increase effective fracture half length Lowering screen out risk to near zero Lower pressure drop across fracture Fast clean out and decreased turnaround time 17 HiWAY® Presentation The Four Components That Deliver HiWAY Reliability Delivering Channel Structure Engineering Design HiWAY Completion Technique 18 HiWAY® Presentation Ensuring Structure Stability The Four Components That Deliver HiWAY Reliability SuperPOD or PODFloat (SBF(SBF-624) 624 Single Side 60 bpm @ 4 ppa 50 bpm @ 8 ppa 100% Redundancy PodSTREAK (SBT(SBT-615/616/625/626) Single Side 50 bpm @ 3 ppa 40 bpm @ 8 ppa PODPOD-IV (SBTSBT-618) Single Side 50 bpm @ 3 ppa 40 bpm @ 8 ppa 100% Redundancy 19 HiWAY® Presentation Delivering Channel Structure The Four Components That Deliver HiWAY Reliability Delivering Channel Structure 20 HiWAY® Presentation The Four Components That Deliver HiWAY Reliability Delivering Channel Structure Engineering Design HiWAY Completion Technique 21 HiWAY® Presentation Ensuring Structure Stability The Four Components That Deliver HiWAY Reliability J622 < 200 oF J579 200 oF – 345 oF Under Development > 345 oF Ensuring Structure Stability 22 HiWAY® Presentation The Four Components That Deliver HiWAY Reliability Delivering Channel Structure Engineering Design HiWAY Completion Technique 23 HiWAY® Presentation Ensuring Structure Stability The Four Components That Deliver HiWAY Reliability Completion Technique 24 HiWAY® Presentation The Four Components That Deliver HiWAY Reliability Delivering Channel Structure Engineering Design HiWAY Completion Technique 25 HiWAY® Presentation Ensuring Structure Stability The Four Components That Deliver HiWAY Reliability 1 ft Engineering Design 26 HiWAY® Presentation The Four Components That Deliver HiWAY Reliability Build Geomechanical and Reservoir Models Design perforation Designand strategy perforation pumping schedule for strategy optimum and channel distribution pumping schedule for optimum channel distribution Evaluate Evaluate channel profile channel and fracture profile and conductivity fracture conductivity Engineering Design 27 HiWAY® Presentation HiWAY: Worldwide Footprint (through October 31, 2012) 878 wells, 9,560 stages, 6 screen-outs (99.94% placement) in 15 countries HiWAY activity New fields under discussion HiWAY is used in 1 out of every 4 SLB fracturing jobs in September 28 28 HiWAY® Presentation 2010-2012 HiWAY Activity 7000 12000 6000 10000 Stages per Year 8000 4000 6000 3000 4000 2000 2000 1000 0 0 2010 2011 29 2012 YTD HiWAY® Presentation Cumulative stages 5000 2010 – 2012 HiWAY Activity (through August 31, 2012) Reservoir Lithology Sandstone Lance/Pinedale (USA) Wamsutter (USA) Granite wash (USA) Yegua (Burgos basin, Mexico) Eocene (Chicontepec, Mexico) Sierras Blancas (Argentina) AS & BS – (Russia) Abrar, West Qarun (Egypt) Gazhal (Saudi Arabia) Others Reservoir Fluid Shale 466 Barnett (USA) Haynesville (USA) Utica (USA) Marcellus (USA) Bossier (USA) Avalon (USA) 2154 Oil Condensate + Gas 1978 1555 6023 Carbonate Dry Gas Eagle Ford (USA) Bakken (USA) Clear Fork (USA) 6936 Completion Type Well Orientation 1147 Vertical 1383 8173 8409 Horizontal Cased hole 30 HiWAY® Presentation Open hole Conventional Oil Case Study: Rosneft HiWAY Delivers 15% increase in Oil Recovery and Stable Production over 2 + years from Conventional Reservoir Challenge Improve oil production from low-pressure sandstone, conventional reservoir in Western Siberia Solution Enhance fracture conductivity with HiWAY flow-channel fracturing technique (4 HiWAY vs. 16 conventional) Results Formation type 15% increase in oil recovery over 2 years Stable production. Solution amenable for use of injectors wells and ESP. TVD 40% less proppant per stage. No screen-outs 11 wells completed to date. Additional wells planned for 2012 2500 – 2700 m Permeability 11,000 – 13,500 ft 1 to 3 mD Young’s modulus 31x - 48x103 MPa 4.5 - 7 million psi BHP 7– 10 Mpa 1,000 – 1,500 psi BHST 93 ºC 200 ºF SPE ATW Presentation 31 Sandstone HiWAY® Presentation Conventional Gas Case Study HiWAY increases EUR per well by 15% for YPF, S.A Challenge Increase declining production in gas field. Loma La Lata Solution Improve hydrocarbon deliverability HiWAY flow-channel fracturing technique (7 HiWAY wells vs. 8 conventional wells) Increased average initial gas production by 53%. Increased average Estimated Ultimate Recovery per well by 15% (+1.0 Bcf/well) Stable production for 2+ years SPE Paper 135034 32 Formation type TVD Results Neuquén 32 Sandstone 2900 – 3200 m 9,500 – 10,500 ft Permeability 0.08 to 5 mD Porosity 12% to 17% Young’s modulus 28x - 48x103 MPa 4 - 7 million psi BHP 24 – 31 Mpa 3,500 – 4,500 psi BHST 112 - 118 ºC 235 – 245 ºF Proppant/stage (Klbm) Fluid/stage (Kgal) HiWAY Conventional ∆ HiWAY Conventional ∆ 74 133 -44% 49 45 +8% HiWAY® Presentation Case Study: IHSA, Nejo Field, Mexico North HiWAY increases PI and cumulative production over 4 months Challenge Improve production of condensates/light oil from S-shaped wells in overpressured layers Solution Apply HiWAY Flow Channel Fracturing to increase fracture conductivity in pilot wells (4 HiWAY vs. 7 conventional) Formation type TVD 1500 – 2500 m 4,900 – 8,200 ft Permeability 0.01 - 10 mD Porosity 4% to 9% Young’s modulus 24x - 28x103 MPa 2 - 4 million psi BHP 24 – 41 Mpa 3,500 – 6,000 psi BHST 65 - 80 ºC 150 – 176 ºF Results • Increase in average PI from 0.15 to 0.24 (bbl/d/psi)/mD.m • New best producer in field – 77 Mbbl condensate over 4 months (10% more than former best producer and 86% above field average) • Zero screen-outs http://www.slb.com/resources/case_studies/stimulation/hiway_increases_nejo_cs.aspx 33 Sandstone / dirty sandstone HiWAY® Presentation Case Study: PEMEX, Palmito Field, Mexico North HiWAY increases PI and cumulative production over 4 months Challenge Improve production of gas from depleted field Formation type TVD Solution Apply HiWAY Flow Channel Fracturing to increase fracture conductivity in pilot wells (6 HiWAY vs. 6 conventional) Results 900 – 1600 m 2,950 – 5,250 ft Permeability 0.5 - 5 mD Porosity 10% to 18% Young’s modulus 14x - 28x103 MPa 2 - 4 million psi BHP 15 – 22 Mpa 2,200 – 3,200 psi BHST 65 - 75 ºC 150 – 170 ºF • Increase in average PI from 160 to 220 Mscf/d/mD.ft • Increase in cumulative production by 19% over 6 months • Reduction in proppant from 240 to 124 Mlb/stage using smaller mesh size (16/30 vs. 20/40) and avoiding use of RCS • Zero screen-outs SPE Paper 152112 34 Sandstone/dirty sandstone HiWAY® Presentation Case Study: Chesapeake, Barnett Shale HiWAY reduces water/proppant consumption by 40% and HHP by 33% Challenge Minimize footprint and simplify logistics for fracturing treatments in the Barnett area without compromising well productivity Formation type Shale TVD Solution Increase fracturing efficiency with HiWAY flowchannel fracturing technique (4 HiWAY vs. 6 conventional wells) 2100 – 2400 m 7,000 – 7,900 ft Permeability 200 to 600 nD Porosity 5% to 8% Young’s modulus 21x - 34x103 MPa 3 - 5 million psi BHP 24 – 28 Mpa 3,500 – 4,000 psi BHST 71 - 93 ºC 160 – 200 ºF Results • Reduction in water and proppant consumption per stage by 39% and 44% while improving well productivity by 10% Normalized Gas Production (MSCF/unit) 50 HiWAY Conventional 40 30 20 10 0 • per ft lateral Reduction in horsepower requirements by 33% Proppant/stage (Klbm) • Zero screen-outs SPE Paper 155684 35 per lb proppant Fluid/stage (Kgal) per gal fluid Pumping Energy (HHP) HiWAY Conv. ∆ HiWAY Conv. ∆ HiWAY Conv. ∆ 429 766 -44% 470 768 -39% 8,827 13,192 -33% HiWAY® Presentation Case Study: Three Forks, Horizontal well Challenge Improve fracture placement along lateral by reducing the risk of screen out Obtain high end production results Solution Improve fracture conductivity with HiWAY flow-channel fracturing technique (1 HiWAY vs. 17 conventional wells) Results No screen out: Reduce screen out rate from 10% to zero. • HiWAY well: High end oil production: Similar to best offsets and 26% improvement than average of 17 wells with less resources 36 Cumulative oil production (bbls) HiWAY Provides Reduction Screen Out Risk and High End Production 70000 60000 ∆ = +26% 50000 40000 30000 20000 10000 0 0 30 60 90 120 150 180 210 240 Producing days Conventional (Avg 17 wells) HiWAY (1 Well) Average Completion Data per Well Cumulative Oil Production (bbls) Fracturing Technique Lateral Length, ft Fracturing Fluid, bbl Proppant, lbm 240 days HiWAY (1 well) 9598 21,723 819,220 67,706 Conventional (17 wells) 9293 25,665 1,745,167 53,748 Difference +3.3% -15% -53% +26 % HiWAY® Presentation Case Study: Encana, Rocky Mountains HiWAY Delivers 24% More Production from Tight Gas Formation Challenge Improve production in multi-stage wells Solution Improve fracture conductivity with HiWAY flowchanne fracturing technique (13-well campaign) Formation type Results 24% increase in gas production 17% increase in expected recovery after 2 years TVD Reduction in screen-out rate from 5% to 0% +700 fracturing treatments performed to date with significant footprint reduction 3400 – 4100 m 11,000 – 13,500 ft Permeability 0.5 to 10 µD Porosity 6% to 9% Young’s modulus 24x - 41x103 MPa 3.5 - 6 million psi BHP 28 – 69 Mpa 4,000 – 10,000 psi BHST 79 - 118 ºC 175 – 245 ºF Proppant/stage (Klbm) Fluid/stage (Kgal) HiWAY Conventional ∆ HiWAY Conventional ∆ 162 297 -45% 94 104 -10% SPE Paper 140549 37 Sandstone/shale HiWAY® Presentation Hawkville Field - Eagle Ford Shale Formation • Eagle Ford Characteristics • 100 – 300 ft gross thickness • High calcite (60 - 70%) • Low quartz (< 20%) • Closure stress: 9,500 - 11,000 psi • Young’s modulus: 2.7 - 4.3 Mpsi • BHST: 275 - 335 degF • Upper Eagle Ford • 1 – 2.5% TOC, 4 - 7% porosity • 150 - 300 nD permeability • Lower Eagle Ford • 3 – 6.5% TOC, 6 - 12% porosity • 350 – 700 nD permeability 38 HiWAY® Presentation Case Study: Eagle Ford Shale, Eagleville Field HiWAY Increases Condensate and Gas Production Challenge Improve production in multi-stage horizontal wells (parallel wells with same completion designs) Solution Improve fracture conductivity with HiWAY flow-channel fracturing technique (2 HiWAY vs. 2 conventional wells) Formation type Carbonate/shale TVD 3575 – 3700 m 11,800 – 12,200 ft Permeability 200 to 600 nD Porosity 7% to 10% Young’s modulus 28x - 57x103 Mpa 4.1 – 8.4 million psi BHP 55 – 69 Mpa 8,000 – 10,000 psi BHST 137 - 154 ºC 280 – 310 ºF Results Increased condensate production by 43% Increased gas production by 61% Higher wellhead flowing pressure Increased water recovery Proppant/stage (Klbm) 39 Fluid/stage (Kgal) HiWAY Conventional ∆ HiWAY Conventional ∆ 160 247 -35% 245 579 -58% HiWAY® Presentation Case Study: BHPBHP-Petrohawk, Petrohawk, Eagle Ford Shale HiWAY Increases Production from Horizontal Well by 37% Challenge Improve production in multi-stage horizontal wells Formation type Carbonate/shale TVD Solution Improve fracture conductivity with HiWAY flow-channel fracturing technique (2 HiWAY vs. 8 conventional wells) SPE Paper 145403 40 10,900 – 11,500 ft Permeability 200 to 600 nD Porosity 6% to 8% Young’s modulus 17x - 34x103 MPa 2.5 - 5 million psi BHP 55 – 69 Mpa 8,000 – 10,000 psi BHST 121 - 168 ºC 250 – 335 ºF 120,000 Gas Area 1.4 1.2 1.0 0.8 0.6 0.4 HiWAY 0.2 Conventional (best offset) 0 0 30 60 90 120 Time, days 150 180 Cumulative Oil Production (bbl) 1.6 Cumulative Gas Production (Bcf) Results Heim #2H: #2H +4 MMcfd (37%) increase in initial gas production rate (gas window) Dilworth #1H: #1H +200 BOPD (32%) increase in initial oil production rate (oil window) 2000+ stages, 100+ wells pumped to date with significant footprint reduction 3300 – 3500 m 100,000 Oil Area 80,000 60,000 40,000 20,000 0 HiWAY Conventional (best offset) 0 Proppant/stage (Klbm) 30 60 90 120 Time, days 150 Fluid/stage (Kgal) HiWAY Conventional ∆ HiWAY Conventional ∆ 203 340 -40% 207 273 -24% HiWAY® Presentation 180 Productivity Normalization via Reservoir Simulations Completion & Stimulation 3D Formation Parameters* Simulator Calibrated Model Normalized production at equivalent BHP XF H 2X F 2L N + L C LN LC LN *Fan, L., Thompson, J., Robinson, J.R., 2010 Understanding Gas Production Mechanism and Effectiveness of Well Stimulation in the Haynesville Shale Through Reservoir Simulation. Paper SPE 136696 presented at the Canadian Society for Unconventional Gas, Calgary 19 – 21 October 41 HiWAY® Presentation Dry Gas Area 180-day Cumulative Gas Production 1,600,000 Heim 2H (Channel fracturing) Offset A 1,400,000 Offset B Cumulative production (Mscf) Heim 2H Offset A Offset B Offset C 1,200,000 Offset C 1,000,000 800,000 600,000 400,000 6.6 mi 200,000 0 0 30 60 90 120 150 180 Time, days 180-day Wellhead Flowing Pressure and Choke Size 7,000 5,000 Choke size Wellhead flowing pressure (psi) 6,000 4,000 3,000 2,000 Heim 2H (Channel fracturing) Offset A Offset B Offset C 1,000 0 0 30 60 90 120 150 180 26 24 22 20 18 16 14 12 10 8 6 4 2 0 Heim 2H (Channel fracturing) Offset A Offset B Offset C 0 30 60 Time, days 42 HiWAY® Presentation 90 Time, days 120 150 180 Dry Gas Well History Match Examples Non-Channel Fracture Well Channel Fracture Well Production tubing installed Production tubing installed BHP Match CF well: smaller drawdown; higher rates Gas Rate Match Water Rate Match 43 HiWAY® Presentation Dry Gas Area 180180-day Normalized Gas Production at Equivalent BHP ∆ = 51% 44 HiWAY® Presentation Dry Gas Area Long Term Production 350 2,500 300 Gas Equivalent Production (MMscfe) Cumulative Gas Equivalent Production (MMscfe) 400 3,000 2,000 250 Heim 2H Heim 2H 200 1,500 Offset AA Offset Offset BB Offset 150 Offset C Offset C 1,000 100 500 50 00 30 30 60 60 90 90 120 150 150 180 180 210 210 240 240 270 270 300 300 330 330 360 360 390 390 420 420 450 450 480 480 510 510 540 540 570 570 120 Days Days 45 HiWAY® Presentation CondensateCondensate-Rich Area 180180-day Normalized Condensate Production at Equivalent BHP ∆ = 46% 46 HiWAY® Presentation Condensate Well History Match Examples Channel Fracture Well Non-Channel Fracture Well BHP Match CF well: smaller drawdown; higher rates Gas Rate Match Water Rate Match Oil Rate Match Oil-Gas Ratio 47 HiWAY® Presentation Condensate Area Long Term Production 500 60 Cumulative Oil Equivalent Production (MBble ) Oil Equivalent Production (MBble) 450 400 50 350 40 300 250 30 Dilworth 1H Dilworth 1H OffsetA A Offset 200 20 150 100 10 50 00 30 30 60 60 90 90 120 120 150 150 180 180 210 210 240 240 270 300 270 300 Days Days 48 330 330 360 360 390 390 420 420 HiWAY® Presentation 450 450 480 480 510 510 540 540 Distribution of Wells in the Hawkville Field 49 49 HiWAY® Presentation SPE 145403 (with BHP Billiton-Petrohawk) 50-well study. Eagle Ford Shale, Hawkville field (La Salle and McMullen Counties, Texas). 1600 HiWAY Average cumulative production (Bcfe) Cumulative probability 2 5 10 20 30 40 50 60 70 80 90 95 1400 1200 Hybrid Slickwater 1000 800 32% 67% 600 400 200 98 0.1 0.5 1.0 2.0 3.0 90-day cumulative production (Bcfe) Basic completion data (Average per well) 50 KPIs - 90 days Average Production / Production / Production / cum. 1000 ft Mbbl Frac Mlbm production Lateral Fluid proppant (MMcfe) 659 115 7.6 0.18 Fracturing technique Lateral length (ft) Frac fluid (Mbbl) Proppant (Mlbm) HiWAY (12 wells) 5755 87 3668 Hybrid (8 wells) 5382 99 5470 497 92 5.0 0.09 Slickwater (30 wells) 4403 176 3890 392 89 2.2 0.10 50 HiWAY® Presentation 0 90 days 250 days SPE 145403 (with BHP Billiton-Petrohawk) 50-well study. Eagle Ford Shale, Hawkville field (La Salle and McMullen Counties, Texas). 1600 HiWAY Average cumulative production (Bcfe) Cumulative probability 2 5 10 20 30 40 50 60 70 80 90 95 1400 1200 37% 87% Hybrid Slickwater 1000 800 32% 67% 600 400 200 98 0.1 0.5 1.0 2.0 3.0 0 90 days 250 days 250-day cumulative production (Bcfe) Basic completion data (Average per well) 51 KPIs - 90 days KPIs - 250 days Average Average Production / Production / Production / Production / Production / Production / cum. cum. 1000 ft Mbbl Frac Mlbm 1000 ft Mbbl Frac Mlbm production production Lateral Fluid proppant Lateral Fluid proppant (MMcfe) (MMcfe) 659 115 7.6 0.18 1,341 233 15.4 0.37 Fracturing technique Lateral length (ft) Frac fluid (Mbbl) Proppant (Mlbm) HiWAY (12 wells) 5755 87 3668 Hybrid (8 wells) 5382 99 5470 497 92 5.0 0.09 979 182 9.9 0.18 Slickwater (30 wells) 4403 176 3890 392 89 2.2 0.10 717 163 4.1 0.18 51 HiWAY® Presentation Public Customer Endorsements • Groupement Sonatrach AGIP • YPF, S.A. • PCOC • SOG • Petrosilah • QPC • ONGC • IHSA • PEMEX • TNK-BP • Rosneft • Slavneft-Megionneftegaz • Petrohunt • Chesapeake • BHP-Petrohawk • Hess • Comstock • Encana 52 HiWAY® Presentation Algeria Argentina China Egypt Egypt Egypt India Mexico Mexico Russia Russia Russia USA - Bakken shale USA - Barnett shale USA - Eagle Ford shale USA - Eagle Ford Shale USA - Haynesville shale USA - Jonah field HiWAY-Related Publications Client-Endorsed SPE Activity • • • • • • • • • • • • • SPE 135034 (with YPF, S.A.) – A New Approach to Generating Fracture Conductivity (ATCE’10. Florence, Italy) SPE 140549 (with Encana Oil and Gas USA) - Channel Fracturing - A Paradigm Shift in Tight Gas Stimulation (HFTC’11, The Woodlands, USA) SPE 145403 (with PetroHawk) - Channel Fracturing in Horizontal Wellbores: the New Edge of Stimulation Techniques in the Eagle Ford Formation (ATCE’11. Denver, USA. Oct. 2011) SPE 147587 (with Encana Oil and Gas USA) - Raising the bar in completion practices in Jonah Field: Channel fracturing increases gas production and improves operational efficiency (CSUG/SPE CURC’11. Calgary, Canada. November 2011) SPE 149390 (with Petrohawk) - Completion Evaluation of the Eagle Ford Formation with Heterogeneous Proppant Placement (SP CSUG/SPE CURC’11. Calgary, Canada. November 2011) SPE 152112 (with PEMEX) - Field Development Study: Channel fracturing increases gas production and improves polymer recovery in Burgos Basin, Mexico North (HFTC’12. The Woodlands, February 2012) SPE 153728 (with Petrohawk) – Understanding the Impact of Channel Fracturing in the Eagle Ford Shale through Reservoir Simulations (LACPEC’12. Mexico City, Mexico, April 2012) SPE 155684 – Field Development Study: Channel Fracturing Achieves both Operational and Productivity Goals in the Barnett Shale (URNC’12. Pittsburgh, USA. June 2012) SPE 159437 – First Channel Fracturing Applied in Mature Wells Increases Production from Talinskoe Oilfield in Western Siberia (Russia Oct 2012) SPE 160242 – The First Implementation of Elongated Proppant in Hydraulic Fracturing in Russia (Russia, Oct 2012) SPE 160767 – Channel Fracturing in the Remote Taylakovskoe Oil Field: Reliable Stimulation Treatments for Significant Production Increases (Russia, Oct. 2012) SPE ATW Presentation (with Rosneft)- Channel Fracturing: Experience and Applicability in Russia (Sep’10. Nizhnevartovsk, Russia) 53 HiWAY® Presentation 2012: Integration of HiWAY modeling with Mangrove Structure Lithology HiWAY Staging & Perforating DFN Geomechanical Model Reservoir Simulation Microseismic Mapping Complex Hydraulic Fracture Models with HiWAY Automated Gridding 54 HiWAY® Presentation StimMAP HiWAY Service: More Value with Less Resources Reliable service, proven solution • > 9,500 treatments (> 870 wells) in 15 countries • Variety of formations (carbonate, sandstone, shale) • Unprecedented proppant placement rate (99.94%) • ~475 screen-outs prevented to date Significant impact on production • >20% increase in tight formations Significant reduction in logistics, safety risks and environmental footprint. Reductions in: • Water and proppant consumption per job of 25% and 42%, respectively; • > 375 million gallons of water and > 1.2 billion lbs of proppant saved so far; • > 55,000 proppant and water hauling road journeys • > 12 million lbs of CO2 emissions avoided Paradigm shift in hydraulic fracturing technology 55 55 HiWAY® Presentation 9/5/2012 HiWAY Driving Your Production to the Next Level Visit us at: http://www.slb.com/HiWAY 56 HiWAY® Presentation HiWAY Driving Your Production to the Next Level Thank you for your attention! Visit us at: http://www.slb.com/HiWAY 57 HiWAY® Presentation