Eagle Ford Shale Exploration Regional Geology meets Geophysical Technology. Galen Treadgold Bruce Campbell Bill McLain

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1 Eagle Ford Shale Exploration Regional Geology meets Geophysical Technology Galen Treadgold Bruce Campbell Bill McLain

2 US Shale Plays

3 Unconventional Reservoirs Key Geophysical Technology Seismic Acquisition Anisotropic Processing (P & S) Elastic and Acoustic Inversion Surface Attributes Frac Monitoring (Microseismic)

4 Acquisition Challenges

5 Anisotropic Processing Offset VTI Layer Anisotropy HTI Azimuthal Anisotropy Azimuth Fast Fast Slow

6 Inversion

7 Surface Attributes

8 Frac Monitoring - Microseismic

9 Eagle Ford Shale South Texas

10 Eagle Ford High TOC % Porosity Marl, ft thick

11 Petroleum Fairways Mixed Oil Gas

12 Resource Shales Stratigraphy Modified from Goldhammer et. al. 1991

13 Type Sections Upper BUDA Lower Britton / Bouldin / Cloise Arcadia Park S. Bosque Mbr. Kamp Ranch Eagle Ford AUSTIN Upper 7762 Calc. Rich Thicker bedded Burrowed Lower 7896 Organic Rich Laminated

14 Impedance 8 wells AI Inversion Eagle Ford Buda

15 Shale Prospecting..what we re after Vp Vs Density Brittle/Ductile Quality LMR - MuR Lithology (rock type, clay content ) TOC Fluid Content Porosity Pore Pressure, Effective Stress Stress Field Orientation Fracture Density Bulk Modulus Poisson s Ratio Acoustic Impedance Elastic Impedance

16 Unconventional Reservoirs Key Geophysical Technology Seismic Acquisition Anisotropic Processing Elastic and Acoustic Inversion Surface Attributes Frac Monitoring (Microseismic)

17 $2,500 Cost Perspective Eagle Ford $1,500 Leasing 5% Drilling For 100,000 Acres (400 km2) Lease Costs: $200 M Drilling Costs: $3,000 M Seismic: $6 M $500 3D Seismic 50 fault $/Acre Processing

18 Offset gather with various mutes Final Stack Mute Pre-Stack Seismic Data Extracting Rock Property Information Typical Processing Mute 30 deg angular offset Missing Data

19 Acquisition needs to provide data out to 50 degrees or more. 50 degrees 30 degrees Global Geophysical Patron Grande 3D

20 1.0 x Depth Traditional Acquisition 90 Degrees 1.5 x Depth

21 1.25+ x Depth Full Azimuth Shooting 180 Degrees (Full Azimuth) 1.5 x Depth

22 Unconventional Reservoirs Key Geophysical Technology Seismic Acquisition Anisotropic Processing Elastic and Acoustic Inversion Surface Attributes Frac Monitoring (Microseismic)

23 Need Full Azimuth, Far Offset Data Near Offset Far Offset Brittle/Ductile Quality LMR - MuR Lithology (rock type, clay content ) TOC Fluid Content Porosity Pore Pressure, Effective Stress Stress Field Orientation Fracture Density Bulk Modulus Poisson s Ratio Acoustic Impedance Elastic Impedance

24 Far Stack Impact Proper Migration Isotropic Anisotropic

25 Patron Grande Comparison of gathers Isotropic PSTM Original gathers Anisotropic PSTM

26 Conceptual Cross Section & Map View of Fractures Sets A B Fracture Swarm B A

27 Fracture/Stress Prediction From 3D Seismic Super Gathers VOT s Azimuthal Imaging

28 Unconventional Reservoirs Key Geophysical Technology Seismic Acquisition Anisotropic Processing Elastic and Acoustic Inversion Surface Attributes Frac Monitoring (Microseismic)

29 Inversion Products Vp Density Vs AI SI Vp/Vs LMR MuR PR

30 High Low 4,500 Lateral Eagle Ford Impedance

31 Well targeting low impedance Eagle Ford Low

32 Eagle Ford Lambda Rho

33 Eagle Ford Mu Rho

34 Ductile Brittle Eagle Ford FracFactor TM

35 Limited Calibration GAMMA RAY 200 AIT 90 INCH NEUT. PORO AIT 30 INCH DENS. PORO. TOC_CALC Rel Depth(ft)

36 Unconventional Reservoirs Key Geophysical Technology Seismic Acquisition Anisotropic Processing Elastic and Acoustic Inversion Surface Attributes Frac Monitoring (Microseismic)

37 Surface Fracture Attribute

38 Fault Enhancement at base Eagle Ford Curvature - base Eagle Ford

39 Haynesville Shale

40 Unconventional Reservoirs Key Geophysical Technology Seismic Acquisition Anisotropic Processing Elastic and Acoustic Inversion Surface Attributes Frac Monitoring (Microseismic)

41 Field Operations 3C Sonde Grid Installation

42 RESEARCH PROGRAM Grid InSight Program Location Map

43 1,040 Channels RESEARCH PROGRAM Grid InSight Radial Array

44 1,697 Channels RESEARCH PROGRAM Grid InSight Swath Array

45 RESEARCH PROGRAM Grid InSight Shallow Buried Grid Array 104 Channels (36+10 Vertical) (58 Horizontal)

46 54 Tiltmeter stations RESEARCH PROGRAM Grid InSight Tiltmeter Array

47 RESEARCH PROGRAM Grid InSight Compilation 2,389 Channels (2,331 Vertical) (58 Horizontal)

48 Seismic Emission Tomography Kirchhoff migration to image microseisms Ray Tracing Travel Times Before Moveout After Travel Time Moveout

49 Data Analysis Understanding signal and noise issues

50 Stacking Clamping Skeletonizing Semblance Processing Global Microseismic Services

51 Unconventional Reservoirs Key Geophysical Technology Seismic Acquisition Anisotropic Processing Elastic and Acoustic Inversion Surface Attributes Frac Monitoring (Microseismic)

52 Integrated Geosciences & Engineering

53 Wish to thank Key Matador Resources Staff Steve Sinclair Bo Henk Anne L. McColloch Key Global Staff Jerry Henderson Mary Davis

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