iugf final presentation 26nov amit

8/3/2019 IUGF Final Presentation 26Nov AMIT

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High-growth Indian Market

Rising demand levels,

driven by economic growth Focus on clean energy andenvironmental concerns


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USA Land Gas Production New Technology

Increase Due to Unconventional Gas Plays

Horizontal Wells Fracturing Technologies

Halliburtons Proven Expertise in all Shale Plays

US Gas Productive Capacity

40

42

44

46

48

50

52

54

56

58

60

Jan-98

Jan-99

Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

DryNaturalgasproduction,

bcfd

U.S. Dry Natural GasProduction (Bcfd)

12% Trend0% Trend

Source: DOE-EIA

US Gas Productive Capacity

40

42

44

46

48

50

52

54

56

58

60

Jan-98

Jan-99

Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

DryNaturalgasproduction,

bcf

U.S. Dry Natural GasProduction (Bcfd)

12% Trend0% Trend

Source: DOE-EIA


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No Substitute for Experience

Shale Basins

Halliburton

Locations


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Halliburton Pumps 4,200 Stages per

month Unconventional Gas

Halliburton HPHT Experience since 2003

Stages Pumped below 15,000 14,275

Stages Pumped above 350F 1,719

Stages Pumped below 18,000 2,514

Stages Pumped above 400F 677

In the last 20 years, approximately 450

SPE papers written regarding

Unconventional Gas that have Halliburton

employees as authors / co- authors

Halliburton Expertise in Unconventional


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Gas Reservoir types

Shale Gas

NanoDarcy Range Dry Gas Wet Gas Mostly free gas some adsorbed gas

Complex Gas Retrograde Gas with High Dew Point MilliDarcy Range (Relatively low permeability ~1mD or less) Sandstone

CBM Flow mostly trough fractures (cleats) Adsorbed Dry Gas Coal

Tight Gas Micro Darcy Range Dry Gas Wet Gas Primarily Sandstone

Conventional Gas MilliDarcy Range (>1mD) Fluid type varies Rock type variesM

atrixP

ermeabilityIn

creases

Unconventiona

l

Conven

tional


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History of Shale Development:Reducing the learning curve

Quantify Construct Complete Analyze

Historically - a trial-and-error process

Data Acquisition

USA Analogue Fields to speed upEvaluation and Development


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Market has shifted to horizontal work

September 2009 Job Type Distribution(227 Total Stages)

Vertical Horizontal

July 2008 Job Type Distribution(199 Total Stages)

Ve rt ic al H or izo nt al

8215

July-08 Average Per Stage September-09

40 Rate (bpm) 75

4,500 Pressure (psi) 10,000

0.76 Frac Gradient (psi / ft) 0.97

250,000 Fluid Volume Pumped (gallons) 450,000

2,000 Proppant Pumped (sacks) 3,200

13,000 HHP on Location 36,000

12,000 HHP Hours 47,000

110%65%

180%335%

189


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Summary of Directional Drilling Experience

Barnett Bakken Fayetteville Woodford Haynesville MarcellusTotal

Shale

Total

Horizontal

# of Jobs 1,369 725 363 26 29 14 2,526 4,571

# of BHA's 7,131 4,555 1,186 246 219 68 13,405 25,332

Total Footage 9,345,676 7,652,356 1,475,930 155,877 129,611 62,370 18,821,820 30,790,774

Miles Directionally Drilled 1,770 1,449 280 30 25 12 3,566 5,832

Drilling Hours 240,170 213,304 31,869 9,916 9,142 2,372 506,773 845,534

Job-Days 21,353 17,536 3,533 737 1,008 225 44,392 80,867

Motor Runs 6,598 4,385 1,063 234 215 67 12,562 22,955

AGS Runs 30 1 1 0 0 0 32 164

US Shale Formations

Data since Q1 2009

# of Jobs

# of BHAs

Total Footage

Miles Directionally Drilled

Drilling Hours

Job-Days

Motor Runs

AGS Runs


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Shale Reservoirs

Ultra low perm (NanoDarcies, pore throat in the 3-12

angstroms range)Wide range of mineralogy

Natural fracture networks are important

Require stimulation

Individual to the shale reservoir

Most successful shale projects

Brittle shale, high TOC

High decline rates

They are all different and need tobe treated that way


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Critical Parameters to be Commercial in US(gas wells)

Gas-in-place (Bcf/mi2) : 1 is BAD, 50 is good, 150 is better

Gas Content (scf/Ton) : 10 is BAD, 50 is typical, 200 is great

Thermal Maturity (Ro) : 0.7 to 2.5+ range; 1.2 typical

Permeability : greater than 100 nanodarcies

Porosity : > 4%

TOC : >2% (1-3% is typical, 5-15% is exceptional

Water Saturation : 100 ft

Moderate Clay content : < 40%

Well bounded : i.e. good Frac barriers

Brittle Shale (Fracability) : i.e. low Poissons & high YM

Quartz

ClayCarbonate

Quartz

ClayCarbonate


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Unconventional Gas Key Areas ofUnderstanding

Understand the Reservoir, the formation potential, and flow mechanisms

Petrophysics, Geochemical and Geomechanics

Diagnostic Fracture Injection Test (DFIT)

Design for Effective Fracture Length & Conductivity

Zone Selection and Perforating

Minimizing Gel & Fracture face damage

Enhance & Maintain the Frac Conductivity

Maximizing reservoir exposure by effective Hydraulic Fracture Placement

Frac Staging Techniques


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Shale Gas Development Workflow

Organic Shale Interval- Potential hydrocarbon

presence.

Review of data- Seismic

- Geological geochemical- Geomechanical data

Petrophysical- Mineralogy, , TOC,- RO, Brittle, k- Fluid typing.

Define data requirements

- Core, well log etc.

First pass field analogs

Workover candidate toidentify productionpotential

Evaluate Potential

(Shale Screening)

Evaluate Potential

(Shale Screening)

Drilling- Casing Program- Bit Selection- Mud Program- Trajectory- Sidetracking

- Data Acquisition

Hydraulic Fracturing- Completion

Perforation Strategy (Ifcased)

- Material Selection Fluids, Additives &Proppant

- Stimulation DesignJob Size, HHP,Logistics &EnvironmentalImpact

Evaluation- Production Potential- Frac Monitoring

Reservoir Extension

Estimated PrincipalStresses Directions

Identification of Natural

Fractures

Estimation of MechanicalProperties

Geochemical Properties

Petrophysical Properties

Estimated Mineralogy- Spectral Gamma Ray- Chemostratigraphy- Cores

DFIT Analysis

Determine Shale Analog

Shale Formation

Characterization

Shale Formation

Characterization

Lessons Learned / BestPractices

Well Placement- Reservoir drainage

Well architecture tomaximize production

- Vertical / high angle- Horizontal- Multilateral

Water Management

Logistics

PotentialExploitation

Program

Potential

Exploitation

Program

Data Validation

and Evaluation


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Can Control,Decision

State parameters Probabilities- Res. Complexity - Net Sand Thickness, and extend

- Permeability and Porosity - Stress Levels.

- Fracture Gradient. - Temperature

- Fluid Properties - Pressure

Decision variables Scenarios- Wellbore casing, tubing and wellhead configurations- Proppant Concentration (Schedule)

- Perforations (Density, Location and size)

- Type of Fluid. - Pumping Rate.

- Down-hole Equipment

- Horizontal vs. Vertical Wells

- Transverse vs. Longitudinal Fractures

Constraints

- Production capacities - Water handling- Fracturing Equipment - Well Location

- Capital Expenses - Logistics

UnderstandBut Cant

Control

Elements of a Shale Field Development Plan

C i f Sh l P i f K


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Comparison of Shale Properties of KnownAnalogues


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Maximum Production Starts withMaximum Insight

ShaleEval Core Analysis

Formation screening process

Fluid screening process

Fracture treatment screening process

Fracture evaluation and candidate selection process

Total Organic CarbonShale MaturityGas content

Matrix PermeabilityRock MechanicsX-Ray analysis

SEMImmersion Tests

Fluid SensitivityRock Strength

E l i Th i


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SPE 115258

ReservoirProperties

Lithology

ShaleType

Brittleor

Ductile?

FracEase

KerogenContentTOC

UnconfinedCompressiveStrength

HydrocarbonContent

Mineralology

NaturalFractures?

Evaluating The reservoirShaleLogService - Model Measure - Optimize

What is the TOC and gascontent?

Will it frac and whatis the relativefracture width?

What is the shalevolumetric gas in place?

What is the shaleporosity andpermeability?

Where are the zones of highest

kerogen content?

Where is the organic richshale?


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Shale Completion Strategy: Optimizing FractureTreatments

Based on Formation Brittleness (or Ductility)

Pi i S i l i


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Pinpoint StimulationUnconventional thinking for Unconventional Reservoirs

Benefits

Reduced Cycle Time to production

Speed and efficiency of Coiled Tubing

Reduced Cost

Increased Production

Improved Reservoir Recovery

Effectively treat EVERY zone of interest

Reduced costs associated with wireline perforating

Eliminate costs associated with screen outs

Halliburton has Done Pinpoint Stimulation Jobs in over 6,000 wells in 18 countries, over 20,000stages and over 600 jobs in shale throughout North America over 220 Utilizing Coiled Tubing


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Perfectly confined frac

We Know Everything About Our Fracs Except . . .

Out-of-zonegrowth

Twistingfractures

Poor fluiddiversion

T-shapedfractures

Horizontalfractures

Multiple fracturesdipping from vertical

Upward fracturegrowth


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Why Fracturing Mapping?

Measure frac geometry and azimuth

Evaluate frac complexity

Estimate SRV (Stimulated Reservoir Volume)

Horizontal well direction and length

Out-of-zone growth/risk of growth into water

Well placement and spacing

Whats the best completion and frac design?

New development (spend some $ up front to save $$$$by trial & error)

Microseismic is Changing the GameNE BC Shales

Bakken

Granite Wash

Devonian, Barnett,Woodford

Barnett

Woodford

Fayetteville

New Albany

Marcellus

WHERE DO WE WORK?

NAM MS FRACMAPPING PROJECTS

Two year data (~1800 fracs)

Pinnacle Microseismic job count by year

Founded in 1992

Leading fracture mapping organization

Multiple diagnostic technologies

Over 200 technical papers published

Two R & D 100 awards

Two Meritorious Engineering awards


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Contact in Unconventional Reservoirs Matters

Barnett Shale Longitudinal Gel Frac Versus High Rate Waterfrac (Refrac)

Increased SRV

-1000

-500

0

500

1000

1500

2000

2500

3000

-1000 -500 0 500 1000 1500 2000 2500

Easting (ft)

Northing(ft)

Observation Well 1

Observation Well 2

Perforations

-1000

-500

0

500

1000

1500

2000

2500

3000

-1000 -500 0 500 1000 1500 2000 2500

West-East (ft)

South-North

(ft) Observation Well 1

Observation Well 2

-1000

-500

0

500

1000

1500

2000

2500

3000

-1000 -500 0 500 1000 1500 2000 2500

West-East (ft)

Sou

th-North

(ft)

Observation Well 1

Observation Well 2

Perforations

SPE 95568 (Devon)

3 x SRV = 3 x Gas Rate


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CleanSuite Technologies

CleanStim Hydraulic Fracturing Fluid System

New fracturing fluid formulation made with ingredients

sourced from the food industry Applicable to Gelled fracs and Water fracs Excellent fracturing fluid performance Reduced Environmental Risk

CleanStreamService

ADP AdvancedDry Polymer

Blender

CleanStimFormulation

3-D Fracture

Mapping

CleanWaveWaterTreatment System


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Reducing Water Cost

On-site Treatment and Recycling

Custom service tailored to your needs

Individual Analysis and Consulting

90+ years of water treatment experience

CleanWave Water Treatment Process

It reduces your environmental footprint and conserves waterby enabling on-site recycling of:

Frac flow back water Produced water

Surface waters

Other non-potable water sources.


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CHALLENGE

RESULTS

Remote location in Utah

Significant delays in production Schedule

Single truck road 40 miles each way

Massive snow buildup in the winter

High total dissolved solids (TDS) water > 50,000 ppm

Successful seven month operation

55,000 barrels treated in under four days

1,000 truck loads, 5,000 hours of drive time eliminatedSignificant reduction in water mgmnt. cost savings

On location treatment eliminated frac schedule delays

Successful frac

SOLUTION

CleanWaveSM water treatment service

Halliburton slick water frac

HALLIBURTON Case History

Halliburtons Holistic Approach Creates Added


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Halliburton s Holistic Approach Creates AddedValue for Producers

DECLINEDEVELOPMENTDISCOVERY

Targeted

stimulation/ completion

Evaluate to maximize

economic value

Fit-for-purpose well

construction technology

Quantified reservoir

understanding

1

10

100

1,000

0 500 1,000 1,500 2,000 2,500 3,000

Time (Days)

GasRate(Mscf/D)

10

100

1,000

10,000

OilRate(bbl/D

)

Gas Rate Sim

Gas Rate

Oil Rate

Oil rate Sim


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Productivity Enhancing Technologies


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Summary

A keen understanding of the reservoir,geology, geomechanics, etc. is required

The well must be placed to take advantage ofthe most productive reservoir characteristics

When planning your well stimulation, the wellmust be drilled & constructed to accommodate

the most rigorous anticipated treatingconditions

Construct and Perforate for Frac

The stimulation technique needs to be tailoredto the individual shale reservoir and shale type

Preplanning, interdisciplinary teamwork &close, open collaboration is essential


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Creating tomorrows standards, today

Elemental AnalysisMicroseismic &

Engineered Fractures

Pinpoint Stimulation

Thank You!

iugf final presentation 26nov amit

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