HiWAY. Putting Your Production into the Fast Lane. Place Date

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 1947 First hydraulic fracturing job 1950 Fracturing using gelled oil 1960 1960 Water-based, non crosslinked fluids 1970 1980 1968 Borate crosslinked fluids 1973 Crosslinked derivatized guars (HPG, CMHPG, etc) 1977 High-strength ceramic proppants 1980 Foamed fracturing 1990 2000 2010 1988 Encapsulated breakers 1990 Fiber based flowback control 1994 Low polymer loadings 1997 Viscoelastic surfactants (VES) 2001 Micro-seismic used to monitor frac jobs 2003 Horizontal well, multistage fractures 2005 Fiber based proppant transport 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/σ MIN > 275) Requires the use of viscous fluids Cased hole, open hole, vertical and horizontal wells BHST < 345 o F (< 174 + o C) 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 Conventional HiWAY Sand Concentration Pad Proppant (dirty) pulse Clean Fluid (clean) pulse Cycle Time Tail-in stage 8 HiWAY Presentation

HiWAY Execution Actual pump schedule in typical HiWAY job Sand Concentration, PPA 5 4 3 2 1 0 Sand Concentration, kg added/m 3 600 480 360 240 120 0 11:39:43 11:46:23 11:53:03 11:59:43 9 HiWAY Presentation

High Pressure Pumping Qualification Tests: Yard Scale Flow in treating lines: Rate: 18 BPM Length: 600 ft 3 treating line No significant dispersion Flow in the pumps, perfs and fracture: Linear velocity: 1 ft/sec Length: 110 ft Tube ID: 0.8 (2 cm) No significant dispersion under presence of fibers concentration, PPA Concentration, PPA 5 4 3 2 1 0 10 8 6 4 2 0 5 10 15 20 25 Time, seconds 0 0.0 50.0 100.0 150.0 200.0 Time of Experiment, sec 10 HiWAY Presentation With fibers Initial After flow Without fibers

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 HiWAY SPE # 155684 Conventional HiWAY 13 HiWAY Presentation

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 X eff = 50% of X propped Gel damage Non-darcy effects Crushing effects HiWAY X eff = 85% of X propped 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 Ensuring Structure Stability Completion Technique 18 HiWAY Presentation

The Four Components That Deliver HiWAY Reliability SuperPOD or PODFloat (SBF-624 624) PodSTREAK (SBT-615/616/625/626 615/616/625/626) Single Side 60 bpm @ 4 ppa 50 bpm @ 8 ppa 100% Redundancy Single Side 50 bpm @ 3 ppa 40 bpm @ 8 ppa POD-IV (SBT SBT-618) Single Side 50 bpm @ 3 ppa 40 bpm @ 8 ppa 100% Redundancy Delivering Channel Structure 19 HiWAY Presentation

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 Ensuring Structure Stability Completion Technique 21 HiWAY Presentation

The Four Components That Deliver HiWAY Reliability J622 J579 Under Development < 200 o F 200 o F 345 o F > 345 o F Ensuring Structure Stability 22 HiWAY Presentation

The Four Components That Deliver HiWAY Reliability Delivering Channel Structure Engineering Design HiWAY Ensuring Structure Stability Completion Technique 23 HiWAY Presentation

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 Ensuring Structure Stability Completion Technique 25 HiWAY Presentation

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 strategy and pumping schedule for optimum channel Design perforation strategy and 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 5000 4000 3000 2000 8000 6000 4000 Cumulative stages 1000 2000 0 2010 2011 2012 YTD 0 29 HiWAY Presentation

2010 2012 HiWAY Activity (through August 31, 2012) 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 Lithology 2154 466 6936 Shale Barnett (USA) Haynesville (USA) Utica (USA) Marcellus (USA) Bossier (USA) Avalon (USA) Carbonate Eagle Ford (USA) Bakken (USA) Clear Fork (USA) Condensate + Gas Reservoir Fluid 6023 1978 1555 Oil Dry Gas Well Orientation Completion Type 1383 Vertical 1147 Open hole 8173 Horizontal Cased hole 8409 30 HiWAY Presentation

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 15% increase in oil recovery over 2 years Stable production. Solution amenable for use of injectors wells and ESP. 40% less proppant per stage. No screen-outs 11 wells completed to date. Additional wells planned for 2012 Formation type Sandstone TVD 2500 2700 m 11,000 13,500 ft Permeability 1 to 3 md Young s modulus 31x - 48x10 3 MPa 4.5-7 million psi BHP 7 10 Mpa 1,000 1,500 psi BHST 93 ºC 200 ºF SPE ATW Presentation 31 HiWAY Presentation

Conventional Gas Case Study HiWAY increases EUR per well by 15% for YPF, S.A Challenge Increase declining production in gas field. Solution Improve hydrocarbon deliverability HiWAY flow-channel fracturing technique (7 HiWAY wells vs. 8 conventional wells) Results 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 Loma La Lata Neuquén Formation type Sandstone TVD 2900 3200 m 9,500 10,500 ft Permeability 0.08 to 5 md Porosity 12% to 17% Young s modulus 28x - 48x10 3 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% 32 32 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 Sandstone / dirty sandstone TVD 1500 2500 m 4,900 8,200 ft Permeability 0.01-10 md Porosity 4% to 9% Young s modulus 24x - 28x10 3 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 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 Solution Apply HiWAY Flow Channel Fracturing to increase fracture conductivity in pilot wells (6 HiWAY vs. 6 conventional) Results Formation type Sandstone/dirty sandstone TVD 900 1600 m 2,950 5,250 ft Permeability 0.5-5 md Porosity 10% to 18% Young s modulus 14x - 28x10 3 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 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 Solution Increase fracturing efficiency with HiWAY flowchannel fracturing technique (4 HiWAY vs. 6 conventional wells) Results Reduction in water and proppant consumption per stage by 39% and 44% while improving well productivity by 10% Reduction in horsepower requirements by 33% Zero screen-outs SPE Paper 155684 Normalized Gas Production (MSCF/unit) Formation type Shale TVD 2100 2400 m 7,000 7,900 ft Permeability 200 to 600 nd Porosity 5% to 8% Young s modulus 21x - 34x10 3 MPa 3-5 million psi BHP 24 28 Mpa 3,500 4,000 psi BHST 71-93 ºC 160 200 ºF 50 40 30 20 10 0 HiWAY Conventional per ft lateral per lb proppant per gal fluid Proppant/stage (Klbm) Fluid/stage (Kgal) Pumping Energy (HHP) HiWAY Conv. HiWAY Conv. HiWAY Conv. 429 766-44% 470 768-39% 8,827 13,192-33% 35 HiWAY Presentation

Case Study: Three Forks, Horizontal well HiWAY Provides Reduction Screen Out Risk and High End Production 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 Cumulative oil production (bbls) 70000 60000 50000 40000 30000 20000 10000 Fracturing Technique 0 = +26% 0 30 60 90 120 150 180 210 240 Producing days Conventional (Avg 17 wells) HiWAY (1 Well) Average Completion Data per Well Lateral Length, ft Fracturing Fluid, bbl Proppant, lbm Cumulative Oil Production (bbls) 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 % 36 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) Results 24% increase in gas production 17% increase in expected recovery after 2 years Reduction in screen-out rate from 5% to 0% +700 fracturing treatments performed to date with significant footprint reduction SPE Paper 140549 Formation type Sandstone/shale TVD 3400 4100 m 11,000 13,500 ft Permeability 0.5 to 10 µd Porosity 6% to 9% Young s modulus 24x - 41x10 3 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% 37 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) Results Increased condensate production by 43% Increased gas production by 61% Higher wellhead flowing pressure Increased water recovery 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 - 57x10 3 Mpa 4.1 8.4 million psi BHP 55 69 Mpa 8,000 10,000 psi BHST 137-154 ºC 280 310 ºF Proppant/stage (Klbm) Fluid/stage (Kgal) HiWAY Conventional HiWAY Conventional 160 247-35% 245 579-58% 39 HiWAY Presentation

Case Study: BHP-Petrohawk Petrohawk, Eagle Ford Shale HiWAY Increases Production from Horizontal Well by 37% Challenge Improve production in multi-stage horizontal wells Solution Improve fracture conductivity with HiWAY flow-channel fracturing technique (2 HiWAY vs. 8 conventional wells) Results Heim #2H: +4 MMcfd (37%) increase in initial gas production rate (gas window) Dilworth #1H: +200 BOPD (32%) increase in initial oil production rate (oil window) 2000+ stages, 100+ wells pumped to date with significant footprint reduction SPE Paper 145403 Cumulative Gas Production (Bcf) 1.6 1.4 1.2 1.0 0.8 0.6 0.4 Formation type Carbonate/shale TVD 3300 3500 m 10,900 11,500 ft Permeability 200 to 600 nd Porosity 6% to 8% Young s modulus 17x - 34x10 3 MPa 2.5-5 million psi BHP 55 69 Mpa 8,000 10,000 psi BHST 121-168 ºC 250 335 ºF Gas Area 0.2 HiWAY Conventional (best offset) 0 0 30 60 90 120 150 180 Time, days Proppant/stage (Klbm) Cumulative Oil Production (bbl) 120,000 100,000 80,000 60,000 40,000 Oil Area 20,000 HiWAY Conventional (best offset) 0 0 30 60 90 120 150 180 Time, days Fluid/stage (Kgal) HiWAY Conventional HiWAY Conventional 203 340-40% 207 273-24% 40 HiWAY Presentation

Productivity Normalization via Reservoir Simulations Completion & Stimulation Parameters* 3D Formation Simulator Calibrated Model Normalized production at equivalent BHP H X F 2X F 2L N + L C L N L C L N *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 Heim 2H Offset A Offset B Offset C 6.6 mi Cumulative production (Mscf) 180-day Cumulative Gas Production 1,600,000 Heim 2H (Channel fracturing) 1,400,000 Offset A Offset B 1,200,000 Offset C 1,000,000 800,000 600,000 400,000 200,000 0 0 30 60 90 120 150 180 Time, days 180-day Wellhead Flowing Pressure and Choke Size Wellhead flowing pressure (psi) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Heim 2H (Channel fracturing) Offset A Offset B Offset C 0 30 60 90 120 150 180 Time, days Choke size 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 90 120 150 180 Time, days 42 HiWAY Presentation

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 180-day Normalized Gas Production at Equivalent BHP = 51% 44 HiWAY Presentation

Dry Gas Area Long Term Production 3,000 400 Cumulative Gas Equivalent Production (MMscfe) 350 2,500 Gas Equivalent Production (MMscfe) 300 2,000 250 1,500 200 150 1,000 100 500 50 Heim 2H 2H Offset AA Offset B Offset B Offset C Offset C 0 0 30 60 90 120 150 180 210 240 270 300 330 360 390 420 450 480 510 540 570 Days 30 60 90 120 150 180 210 240 270 300 330 360 390 420 450 480 510 540 570 Days 45 HiWAY Presentation

Condensate-Rich Area 180-day Normalized Condensate Production at Equivalent BHP = 46% 46 HiWAY Presentation

Condensate Well History Match Examples BHP Match Non-Channel Fracture Well Channel Fracture Well 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 60 450 Cumulative Oil Equivalent Production (MBble ) Oil Equivalent Production (MBble) 400 50 350 40 300 250 30 200 20 150 100 10 50 Dilworth 1H Dilworth 1H Offset A Offset A 0 30 60 90 120 150 180 210 240 270 300 330 360 390 420 450 480 510 540 30 60 90 120 150 180 210 240 270 300 330 360 390 420 450 480 510 540 Days 48 HiWAY Presentation

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). Cumulative probability 2 5 10 20 30 40 50 60 70 80 90 95 98 0.1 0.5 1.0 2.0 90-day cumulative production (Bcfe) Fracturing technique Lateral length (ft) Basic completion data (Average per well) Frac fluid (Mbbl) Proppant (Mlbm) Average cum. production (MMcfe) KPIs - 90 days Production / 1000 ft Lateral Production / Mbbl Frac Fluid 3.0 Average cumulative production (Bcfe) Production / Mlbm proppant HiWAY (12 wells) 5755 87 3668 659 115 7.6 0.18 Hybrid (8 wells) 5382 99 5470 497 92 5.0 0.09 Slickwater (30 wells) 4403 176 3890 392 89 2.2 0.10 1600 1400 1200 1000 800 600 400 200 0 HiWAY Hybrid Slickwater 32% 67% 90 days 250 days 50 50 HiWAY Presentation

SPE 145403 (with BHP Billiton-Petrohawk) 50-well study. Eagle Ford Shale, Hawkville field (La Salle and McMullen Counties, Texas). Cumulative probability 2 5 10 20 30 40 50 60 70 80 90 95 98 0.1 0.5 1.0 2.0 250-day cumulative production (Bcfe) Fracturing technique Lateral length (ft) Basic completion data (Average per well) Frac fluid (Mbbl) Proppant (Mlbm) Average cum. production (MMcfe) KPIs - 90 days Production / 1000 ft Lateral Production / Mbbl Frac Fluid 3.0 Average cumulative production (Bcfe) Production / Mlbm proppant 1600 1400 1200 1000 800 600 400 200 0 Average cum. production (MMcfe) HiWAY Hybrid Slickwater 32% 67% 37% 87% 90 days 250 days KPIs - 250 days Production / 1000 ft Lateral Production / Mbbl Frac Fluid HiWAY (12 wells) 5755 87 3668 659 115 7.6 0.18 1,341 233 15.4 0.37 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 Production / Mlbm proppant 51 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 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 52 HiWAY Presentation

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 StimMAP Staging & Perforating DFN Geomechanical Model Microseismic Mapping Reservoir Simulation Complex Hydraulic Fracture Models with HiWAY Automated Gridding 54 HiWAY Presentation

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