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Kofax SolutionsFueling Information Availability How Oil and Gas Companies Use Kofax Solutions to Improve Productivity, Collaboration and Profitability

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Index

Oil and Gas Challenges .....................................3

Information Fuels Exploration and Production ...............................................4

Oil and Gas Production Overview ....................5

Enterprise Capture .............................................6

Land Management .............................................7

Information Integration .....................................8

Collaboration ......................................................9

Business Intelligence and Analytics ............... 10

Mobile Capabilities .......................................... 11

Crude Run and Water Ticket Processing ........ 12

Compliance ...................................................... 13

Enterprise Capture at Chesapeake Energy .... 14

Contact .............................................................15

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Oil and Gas Challenges

Despite the rapid technological advances in oil and gas operations, large amounts of operational data is still captured on paper.Oil and gas companies, their partners, contractors, and industry-related services generate large amounts of paperwork—ranging from field data and inspection reports to crude run tickets and work orders.

Paper is a convenient medium for workers to capture data, but paper-based processes are slow and error prone; they also obscure operational visibility and limit collaboration.

For many teams, days can pass between the point at which issues are identified and documented and the point at which the data is entered into a system where it can be acted upon.

During that time, operational issues remain unaddressed, resulting in a reduction in productivity and, ultimately, a reduction in profitability.

Systems of EngagementGenerate real time information

intensive communications from field activities

KOFAX PROVIDES THE ESSENTIAL

LINK TO

Systems of RecordAre enterprise applications

designed for internal purposes

Production/Revenue/ Joint Interest Accounting

Content & Records

Management

Land & Well Management

Contracts & Legal

Management

Technology Infrastructure

Results in an Optimized

User Experience

& Greatly

Reduced Operating

Costs

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Information Fuels Exploration and Production

Information is the lifeblood of the oil and gas industry.Upstream, exploration and production projects generate vast volumes of correspondence, well file documentation, supporting documents for maintenance, standard operating procedures (SOPs), requests for proposals, bids, contracts, land records, etc.

Kofax provides oil and gas companies the ability to dynamically create and track the information needed to address exploration—and the rapidly changing and incident-specific requirements of production processes. This helps companies empower both employees and partners by delivering data in context across multiple data sources.

With Kofax, oil and gas companies can improve the speed and quality of their business processes by providing the information needed for enhanced decision making, exception handling and problem resolution, including:

u Transforming business documents into structured electronic information by automatically classifying documents and extracting data from paper, fax and handwritten forms.

u Processing business critical data for applications such as enterprise resource planning (ERP), contracts, accounts payable, supply chain management, asset and land management, engineering, maintenance and human resources.

u Managing customer, contractor and supplier files in different stages, from drafts to final approval and execution.

u Reducing risk when evaluating new opportunities with the confidence that you’re getting the most up-to-date and accurate publicly available data.

u Facilitating blue print management between corporate headquarters, plants, engineers, contractors and suppliers.

u Coordinating and exchanging information using standard office equipment, such as MFPs, phone systems, email, fax, SMS, MMS and voicemail.

u Archiving legal files in accordance with global oil and gas industry rules and regulations.

Kofax captures incoming information, automatically inserts it into business processes, and manages process and resulting cases.

Lower operating costsBetter customer serviceMore agile processesIncreased efficiencyFast processingBetter customer serviceBetter information qualityGreater productivuty

Be more responsive

Gain a competitive advantage

Grow business

Reduce costs and improve compliance

CAPTURE

PROCESS

+ =

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Oil and Gas Production Overview

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Enterprise Capture

Expedite information availability and promote collaboration As the amount of information grows, the need for a sustainable and scalable approach to make the First Mile™ of data capture simpler and smarter for workers increases. Maintaining data availability and ensuring high-performance processing are important priorities for oil and gas companies—especially those with high-demand and around-the-clock global operations.

Kofax provides a comprehensive set of tools designed to work together to expedite information availability and promote collaboration. These applications enable oil and gas companies to automate information-intensive business processes that are highly variable, unpredictable, loosely structured and subject to change.

Challenge u Information is dispersed globally as paper files, drawings, maps or images, and digitally stored on corporate servers, in the cloud, or with third-party partners, consultants, contractors and engineering firms.

u Legacy documents are typically stored in offsite warehouses provided by third parties or on corporate servers that may be on- or offsite.

u Legacy documents are rarely classified or indexed correctly, if at all; economics do not work to scan and/or manually index large volumes of content of unknown value.

u Reduce legal, audit and corporate governance risk.

Solution u Kofax provides automatic document classification and separation capabilities, as well as the ability to automatically index documents by extracting metadata with OCR and other methods.

u The full reporting suite gives quick and easy access to system information, statistics on volumes, operational efficiencies and processing goals.

Benefit u Streamline the capture process and drive operational efficiencies.

u Automatically classify, separate, convert, index, and route high value/critical records while simultaneously making them easy to find.

u Reduce the risk and high costs associated with manual document processing.

u Eliminate lost or out-of-file conditions.

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Land Management

Location, Leases, and PotentialIn the oil and gas industry, all the relevant questions revolve around land. Knowing what you own, what you’ve leased, who and what you owe and where you can drill is essential to success. Today’s land management requires a broad cross section of information that originates in a variety of documents from disparate sources—including leases, terrain elevations, databases, aerial photography, satellite images, soil surveys, run-off analysis, route planning, etc.

Whether you are viewing an online map for potential lease acquisition or determining if all of the documents are in place to drill on an existing lease, proactive lease management is more critical than ever.

Challenge u Manage land assets, operations, production and accounting information, and connect that data to facility and well data sources within the organization.

u Provide information that field and head office workers need to negotiate leases and collaborate with third party suppliers.

u Access information on what is leased, who and what is owed and when payments will be made.

SolutionKofax enables documents to be cost-effectively captured, indexed, and routed to facilitate lease management and collaboration between landmen and accounting; this helps optimize critical land holdings, maximize operations, and understand lease rights and obligations as well as ensure that the proper payments are made on time.

BenefitKofax helps ensure that everyone in your organization has what they need to proactively manage critical leases to optimize production and maximize profitability.

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Information Integration

Integrating Massive Amounts of Disperse DataIncreased use of mobile, cloud, and third-party data sets—coupled with enhanced operations technology such as remote sensors and process automation—are providing a flood of new data into the oil and gas industry.

Data used by engineers, geophysicists and other scientists is difficult to discern in isolation. Each dataset requires some specialized knowledge to make it comprehensible and usable.

Through Kofax, oil and gas companies can automate the acquisition and integration of data from a variety of information sources and make it available for advanced analysis to enhance decision making. As a result, Kofax can help turn raw data into actionable business insights enabling teams to spend more time identifying new business opportunities, maximizing productivity and improving the bottom line.

Data Integration at IHSWhen researching new sites for exploration, you can never have too much information. The smartest decisions come from a comprehensive understanding of a locations history. IHS delivers unrivaled, best-in-class information and strategic insights to the global oil and gas industry.

The energy division of IHS now monitors thousands of sites for factors affecting supply and demand, without relying on offshore resources for web intelligence.

Challenge u The energy division of IHS needed to monitor thousands of government regulatory product vendor websites for factors that influence oil and gas supply and demand.

u IHS was relying on off-shore resources to access web data, reducing their control of what is a strategic aspect of their business.

Solution u Automated web data acquisition and a “no coding” design allowed IHS developers and non-technical users to quickly build information integration flows that acquire and aggregate web-based data in real time without outsourcing.

Benefit u IHS now experiences increased efficiency with automated data extraction, enhanced and improved quality of master data, and enhanced product offerings based on better web data.

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Collaboration

Driving Better Business Decisions Through Data SharingThe collaborative nature of oil and gas operations makes many business and operational processes exceedingly complicated. Partners, engineering firms, contractors, geologists, landmen, drilling companies, and suppliers all need to work together to make the industry succeed. Whether in upstream, midstream, or downstream production, the availability of information can boost productivity through better data sharing and more effective collaboration.

Challenge u Today’s oil and gas data comes from multiple sources in different formats, and there is a growing need to manage a mix of both human and automated decision making.

u Large volumes of data are in both structured and unstructured formats that lack standards for collaboration.

u Siloed data repositories acquired through acquisitions and mergers make collaboration difficult.

SolutionKofax solutions help oil and gas companies, and field service organizations, facilitate collaboration to increase revenue and improve efficiency by reducing non-productive time, improving time to oil, managing assets and meeting regulatory compliance.

BenefitWith Kofax, large-scale global oil and gas operations, can improve collaboration and automate their information driven business processes, maximize the value of their assets and be agile enough to cope with an ever-changing business environment.

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Business Intelligence and Analytics

Analyzing Reserves and Operations Kofax provides business intelligence and analytics solutions that take the value of oil and gas information to a higher level; this is done by delivering advanced functionality while making business insight easier and more cost effective.

Kofax gives you insight into your operations via graphic dashboards that provide a view into everything from benchmarking and cross-stream analysis, to well visualizations and reservoir output trends. By applying analytics to your data, you can uncover unexpected patterns that help develop new processing models and carry out strategies to improve bottom-line results.

Challenge u Knowledge assets are widely dispersed and growing at a rapid pace.

u Finding and exploiting new reserves requires analyzing massive amounts of data.

u Increasing costs and complexity of new business plays makes analytics a necessity.

Solution u Kofax provides a rapid, no-coding environment for near real-time process intelligence and business analysis, including optimized, out-of-the-box dashboards focused on elevating visibility.

u The solution delivers interactive views into system performance, accuracy and productivity to better enable decision making while tracking and reducing costs.

BenefitBetter business analysis provides the information required for better production management to:

u Optimize production and reduce costs

u Set targets more accurately

u Provide accurate reserves reporting

u Integrate and compare production data

u Evaluate recovery techniques

u Prevent recurring unplanned events/failures

u Optimize plant availability

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Mobility Capabilities

Making Field Personnel More ProductiveToday, mobile devices such as smartphones and tablets are doing the heavy lifting in the field when it comes to information capture and access. With Kofax solutions, information can be captured via SMS, voice, or image capture—with data extracted and validated as if it were scanned, eliminating the need for extensive manual entry.

Mobile applications can be used to capture and deliver drilling data such as pump rate, weight on bit, RPM, and mud viscosity to management so that they can make more informed production decisions. Crude run operations, vapor recovery, dehydration, compressors performance and landowner oil and gas recovery readings can automatically be captured on electronic crude run and water tickets.

Challenge u Field managers, geologists, crude run drivers, derrickhands and roustabouts all need to capture and submit information from the field.

u Real-time production information is needed to make faster and more accurate business decisions.

u Hand written field notes are often unreliable and are subject to misinterpretation and errors.

Solution u Kofax mobile solutions exploit the explosion in smart devices to offer new levels of convenience, personalization and speed, allowing field personnel to engage in real-time via mobile devices.

Benefits u Kofax oil and gas mobile solutions enable organizations to integrate powerful, interactive capture and process management capabilities into smartphones and tablets to make data collection easier, more accurate and faster.

u Real-time information helps workers get the most accurate information needed, which leads to better decisions and higher quality results.

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Crude Run and Water Ticket Processing

Improving data capture and expediting the processThe Kofax crude run and water ticket solution is used to facilitate the collection and distribution of field data for reconciliation and processing. Typically, this information is gathered and manually recorded and transcribed onto a multipage delivery ticket.

The information on most tickets includes the operator name, lease, property number, legal description, time and date of delivery, ticket number with the degrees API gravity, temperature, bottom sediment and water content. It is the legal document from which the operator gets paid.

With Kofax, tickets can be scanned from any location and the data extracted for fast and accurate processing. Drivers can even generate an electronic printout of the data with signature from the cab using a mobile device. Once captured, all data is transmitted straight back to the crude oil customers’ ERP system for prompt processing and payment.

Challenge u Paper delivery ticket reconciliation and administration is cumbersome and error prone.

u Inaccurate data collection causes invoicing errors that require prior period adjustments.

Solution u The Kofax solution ensures data accuracy and provides clean, accurate and timely data delivery to speed invoicing and expedite payment processing.

u Integrates with production accounting systems for end-of-month close.

u Provides real-time operational data for analysis.

u Meets oil and gas regulatory reporting and compliance mandates.

Benefit u Increases processing efficiency while eliminating the need to manually re-key paper-based information.

u Provides tighter controls to ensure data integrity.

u Reduces processing time to reduce costs.

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Compliance

Meeting compliance requirementsThe oil and gas industry must comply with a myriad of regulations from a number of government agencies. In addition to dealing with rapidly expanding corporate governance requirements, companies also face regulatory compliance and legal challenges requiring them to capture, classify and store data according to industry retention schedules, international laws and regulatory requirements specific to the industry.

Not only are the costs of compliance rising, but the fines, penalties, and legal fees for non-compliance are enormous, requiring complex and integrated systems to manage document capture and retention.

Challenge u Effectively manage data for compliance or legal purposes at any time—whether from corporate headquarters or remote sites.

u Capture, classify and store data according to industry retention schedules.

u Meet international laws and regulatory requirements specific to the industry and location.

u Minimize the impact and cost of a compliance breach, which can far exceed the initial penalty in lost revenue, reputation and overall operational performance.

Solution u Kofax provides a proactive approach to compliance by standardizing procedures and making information easy to access, regardless of time or location.

u Kofax helps equip geologists, geophysicists, engineers, landmen, accountants, and lawyers with the information they need for legislative and regulatory compliance, contractual disputes, environmental concerns, mergers and acquisitions, and e-discovery.

u Kofax ensures that every document is available, tracked and traceable while providing operational fidelity and audit trails

Benefit u By eliminating the risk of non-compliance and increasing the ability of IT systems to communicate and share information, Kofax helps ensure that oil and gas companies can minimize costs while increasing the overall stability of their operations.

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Enterprise Capture at Chesapeake Energy

Chesapeake Energy Corporation is the second-largest producer of natural gas and the 10th largest producer of oil and natural gas liquids in the U.S. Headquartered in Oklahoma City, the

company’s operations are focused on discovering and developing its large and geographically diverse resource base of unconventional natural gas and oil assets onshore in the U.S. The company also owns substantial marketing, compression and oilfield services businesses.

Benefits of Kofax at Chesapeake Energy: u Kofax has automated what were previously very manual processes.

u Kofax has assisted the imaging center in building confidence from customers to be able to take on any scanning job.

u Kofax enables Chesapeake to set a company standard, while still having the flexibility to meet the needs of each area.

u With Kofax efficiencies can be easily created through software and process changes.

Company Size:In 2013:

~11,000 Employees

16 U.S. States

$35 Billion in Revenue

Industry Standing:#2 producer of U.S. natural gas

#11 producer in liquid

Named one of Fortune Magazine’s 100 Best Companies to Work For 2008–2014

Documents Handled: 1.6 million scanned pages per month

Departments Supported by Scanning:

Read more about how Kofax helped Chesapeake Energy by clicking on the presentation.

34% Accounting

14%Other

9% Division Orders

3%Water

Tracking

1% Business Development

11%Revenue

13% Land

6% COS

4% Midstream

3% Production Control 2% Pipeline

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Contact

UNITED STATES

Kofax, Inc. Headquarters: 15211 Laguna Canyon Road Irvine, CA 92618-3146

General inquiries: 1 949 783-1333

UNITED KINGDOM

Kofax UK Ltd. 1 Cedarwood Chineham Business Park Basingstoke, Hampshire RG24 8WD

General inquiries: + 44 (0) 870 777 3767