SECTION B4 COMPATIBILITY WITH OILFIELD FLUIDS

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FORMATE TECHNICAL MANUAL C A B O T COMPATIBILITIES AND INTERACTIONS SECTION B4 COMPATIBILITY WITH OILFIELD FLUIDS B4.1 Introduction...2 B4.2 Compatibility with other formate brines...2 B4.3 Compatibility with halide brines...2 B4.3.1 Monovalent halide brines...2 B4.3.2 Divalent halide brines...2 B4.4 Compatibility with seawater...2 B4.5 Compatibility with base oil... 4 B4.6 Compatibility with oil- and synthetic-based muds... 4 B4.7 Compatibility with water-based drilling fluids... 4 B4.8 Compatibility with methanol... 4 B4.9 Compatibility with glycol... 4 References... 4 The Formate Technical Manual is continually updated. To check if a newer version of this section exists please visit formatebrines.com/manual NOTICE AND DISCLAIMER. The data and conclusions contained herein are based on work believed to be reliable; however, CABOT cannot and does not guarantee that similar results and/or conclusions will be obtained by others. This information is provided as a convenience and for informational purposes only. No guarantee or warranty as to this information, or any product to which it relates, is given or implied. CABOT DISCLAIMS ALL WARRANTIES EXPRESS OR IMPLIED, INCLUDING MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AS TO (i) SUCH INFORMATION, (ii) ANY PRODUCT OR (iii) INTELLECTUAL PROPERTY INFRINGEMENT. In no event is CABOT responsible for, and CABOT does not accept and hereby disclaims liability for, any damages whatsoever in connection with the use of or reliance on this information or any product to which it relates. 2013 Cabot Corporation, MA, USA. All rights reserved. CABOT is a registered trademark of Cabot Corporation.

CABOT FORMATE TECHNICAL MANUAL B4.1 Introduction Monovalent formate brines used as well construction fluids are very soluble in water and form brines of high density. These brines do not contain divalent ions, although some divalent carbonate ions are normally introduced as buffer. The compatibility of formate brines with other oilfield fluids is important for knowing when a spacer fluid is needed, the design of spacer fluids, and how to handle formate brines contaminated with other fluids. B4.2 Compatibility with other formate brines All monovalent formate brines used in the oilfield are very soluble in water, and because lighter density brines are cheaper than higher density brines, formates are normally blended together. Normally cesium formate is blended with potassium formate and potassium formate is blended with sodium formate. Sodium formate can also be blended with cesium formate, but as sodium formate is saturated at a much lower density than potassium formate, this blend requires more cesium formate than a cesium / potassium formate blend of the same density, and is therefore not as cost effective. Consequently, sodium formate is normally only blended with cesium formate if, for some reason, potassium is unwanted. Any contamination of formate brine with another formate brine does not cause any compatibility problems, and no precipitation occurs. However, any contamination of higher-density formate brine with lower-density formate brine lowers brine density and more brine or powder of the heavier kind is needed to bring the density back up again. Potassium formate brine (weighted with solids or unweighted) is commonly used as spacer fluid when higher-density formate fluid containing cesium is used. B4.3 Compatibility with halide brines Halide brines are regularly used as completion and packer fluids. Two types of halide brines are used in the oilfield: monovalent halide brines (sodium chloride, potassium chloride, and sodium bromide) and divalent halide brines (calcium chloride, calcium bromide, zinc bromide, and their blends). Although some combinations of formate and halide brines do not form precipitates when blended, care should be taken as halide ions, and especially chloride ions, are very corrosive and should therefore not be blended into formate brines. B4.3.1 Monovalent halide brines All three monovalent halide brines are relatively compatible with formate brines. Combinations that could potentially precipitate are shown in Table 1 for ambient temperature and Table 2 for 70 C / 158 F [1]. As can be seen, sodium formate is fully compatible with all monovalent halide brines, while cesium formate is compatible with NaCl, KCl and, at higher temperatures, NaBr. Potassium formate forms precipitates when in contact with all monovalent halide brines, except with very low contamination levels (<10%vol) at certain temperatures. These tests are completed with unbuffered formate brines with the exception of cesium formate, where a small amount of buffer is added. Contamination of buffered formate brines with monovalent halide brines does not have any adverse effect on the carbonate / bicarbonate buffer. B4.3.2 Divalent halide brines As divalent formate brines are less soluble than monovalent halide brines, divalent formate precipitates when formate brines come in contact with divalent halide brines or their blends. Precipitates are calcium formate and zinc formate. Other precipitates could be potassium or cesium bromide, but these are more soluble than the divalent formate salts. Table 1 and Table 2 give some indication of the degree of precipitation expected when unbuffered formate brines are contaminated by divalent halide brines at ambient temperature and 70 C / 158 F respectively [1]. If buffered formate brines are contaminated by divalent halide brine, it is important to notice that the buffer will always precipitate out as calcium or zinc carbonate. If a buffered formate brine undergoes such contamination, new carbonate / bicarbonate buffer needs to be added until all divalent ions precipitate out and the desired buffer concentration is re-established. B4.4 Compatibility with seawater The three formate brines used in the oilfield sodium, potassium, and cesium are all compatible with seawater at ambient and high temperatures [2][3]. This means that no precipitate forms when these brines are contaminated by seawater in realistic quantities. At lower temperature (seabed temperature), a very small amount of potassium sulfate might form if a concentrated potassium formate is contaminated with seawater at a certain ratio (about 10 25% (vol/vol) seawater). Table 3 shows results of compatibility testing of seawater and concentrated potassium formate. PAGE 2 SECTION B4

SECTION B: COMPATIBILITIES AND INTERACTIONS CABOT Table 1 Compatibility between concentrated formate brines and concentrated halide brines at ambient temperature (20 25 C / 68 77 F). The brines used for testing are: NaFo 1.30 g/cm 3 / 10.85 lb/gal, KFo 1.56 g/cm 3 / 13.02 lb/gal, CsFo 2.20 g/cm 3 / 18.36 lb/gal, KCl 1.16 g/cm 3 / 9.68 lb/gal, NaCl 1.20 g/cm 3 / 10.01 lb/gal, NaBr 1.53 g/cm 3 / 12.77 lb/gal, CaCl 2 1.39 g/cm 3 / 11.60 lb/gal, CaBr 2 1.71 g/cm 3 / 14.27 lb/gal, and ZnBr 2 2.30 g/cm 3 / 19.19 lb/gal. The table shows the amount of precipitate formed. Brine blend Ambient temp. Formate-to-halide blend ratio (vol/vol) NaFo + NaCl None None None None None NaFo + KCl None None None None None NaFo + NaBr None None None None None NaFo + CaCl 2 Light Medium Heavy Medium Light NaFo + CaBr 2 Light Medium Heavy Medium Light NaFo + ZnBr 2 None Light Medium Light None KFo + NaCl Trace Light Medium Light Trace KFo + KCl Trace Light Medium Light Trace KFo + NaBr Trace Medium Heavy Medium None KFo + CaCl 2 Light Medium Heavy Medium Light KFo + CaBr 2 Medium Heavy Heavy Heavy Light KFo + ZnBr 2 Medium Heavy Heavy Heavy Medium CsFo + NaCl None None None None None CsFo + KCl None None None None None CsFo + NaBr Trace Medium Medium Light None CsFo + CaCl 2 Light Medium Medium Medium Trace CsFo + CaBr 2 Medium Heavy Heavy Heavy Medium CsFo + ZnBr 2 Medium Heavy Heavy Heavy Medium Table 2 Compatibility between concentrated formate brines and concentrated halide brines at 70 C / 158 F. The brines used for testing are: NaFo 1.30 g/cm 3 / 10.85 lb/gal, KFo 1.56 g/cm 3 / 13.02 lb/gal, CsFo 2.20 g/cm 3 / 18.36 lb/gal, KCl 1.16 g/cm 3 / 9.68 lb/gal, NaCl 1.20 g/cm 3 / 10.01 lb/gal, NaBr 1.53 g/cm 3 / 12.77 lb/gal, CaCl 2 1.39 g/cm 3 / 11.60 lb/gal, CaBr 2 1.71 g/cm 3 / 14.27 lb/gal, and ZnBr 2 2.30 g/cm 3 / 19.19 lb/gal. Brine blend 70ºC / 158ºF Formate-to-halide blend ratio (vol/vol) NaFo + NaCl None None None None None NaFo + KCl None None None None None NaFo + NaBr None None None None None NaFo + CaCl 2 Light Medium Heavy Medium Light NaFo + CaBr 2 Light Medium Heavy Medium Light NaFo + ZnBr 2 None Light Medium None None KFo + NaCl Trace Light Medium Light None KFo + KCl Trace Light Medium Light None KFo + NaBr Trace Medium Heavy None None KFo + CaCl 2 Light Medium Heavy Medium Light KFo + CaBr 2 Medium Heavy Heavy Heavy Light KFo + ZnBr 2 Medium Heavy Heavy Heavy None CsFo + NaCl None None None None None CsFo + KCl None None None None None CsFo + NaBr None Medium None None None CsFo + CaCl 2 Light Medium Medium Medium Trace CsFo + CaBr 2 Medium Heavy Heavy Heavy Medium CsFo + ZnBr 2 Medium Heavy Heavy Heavy Medium SECTION B4 PAGE 3

CABOT FORMATE TECHNICAL MANUAL As sodium and cesium sulfate are significantly more soluble than potassium sulfate, and sodium and cesium formate brines are less concentrated on a molar basis, no sulfate precipitation is expected in these two brines. When used in the field, formate brines are normally buffered with sodium or potassium carbonate and bicarbonate. If buffered formate brine is contaminated with seawater, the buffer components immediately precipitate out with the divalent ions of seawater. In a situation where a buffered formate brine has been contaminated with seawater, new carbonate / bicarbonate buffer should be added until all divalent ions are precipitated out and the desired buffer concentration is re-established. B4.5 Compatibility with base oil Formate brines are not surface active and normally do not contain any surface-active additives. Therefore, when formate brine is in contact with oil, emulsification is unlikely to occur. Displacements between formate brines and base oils might therefore not require any spacer fluid. B4.6 Compatibility with oil- and syntheticbased muds Contact between formate brines and oil- or syntheticbased muds should be avoided as these muds contain emulsifiers. Consequently, contamination should be avoided if at all possible as emulsification can easily occur. B4.7 Compatibility with water-based drilling fluids Formate brines are believed to be compatible with most water-based drilling fluids. As any halide brine-based drilling fluid is normally based on monovalent halide brines, no precipitation problems are expected when these fluids come in contact with each other. Divalent halide brines are very rarely used for drilling fluids, but if such a fluid comes in contact with formate brine, divalent formate salts can precipitate. added to a formate brine its cloud point is lowered and it clouds out (phase separate) at a much lower temperature than when it would cloud out in water, or a less concentrated brine. B4.8 Compatibility with methanol Formate brines and methanol are fully miscible, and no precipitation occurs at any blending ratio [4]. B4.9 Compatibility with glycol The compatibility between concentrated potassium and cesium formate brines and four commonly used glycols has been tested [4]. The glycols tested were monoethylene glycol (MEG), diethylene glycol (DEG), triethylene glycol (TEG), and polyethylene glycol (PEG). The fluids were blended at different proportions and held for some hours at ambient temperature and 70 C / 158 F. No major reactions were experienced, but some slight hazing or minor crystallization was observed at and around 50 / 50% volume blend with some of the formate / glycol combinations. The results are summarized in Table 4. References [1] Compatibility between formate and halide brines, Report no. LR-268, Cabot Operations & Technical Support Laboratory Aberdeen, September 2008. [2] Compatibility between formate brines and seawater, Report no. LR-261, Cabot Operations & Technical Support Laboratory Aberdeen, December 2008. [3] Seawater contamination, Report no. LR-305, Cabot Operations & Technical Support Laboratory Aberdeen, March 2009. [4] Formate Brine Compatibility with Glycols and Methanol, Report no. LR-281, Cabot Operations & Technical Support Laboratory Aberdeen, February 2009. Traditional water-based drilling fluids are normally weighted with barite. As barite is slightly soluble in concentrated brines (see Section B12), such contamination should be avoided if at all possible. Formate brines could also have an adverse effect on clouding glycols commonly used in some water-based shale drilling fluids. When such a clouding glycol is PAGE 4 SECTION B4

SECTION B: COMPATIBILITIES AND INTERACTIONS CABOT Table 3 Compatibility between a 75% potassium formate brine (1.57 g/cm 3 / 13.10 lb/gal) and seawater at different temperatures. The potassium formate brine used for testing was free of buffer. The slight precipitate formed at 10 and 25% seawater is potassium sulfate. Temperature Potassium formate-to-seawater blend ratio (vol/vol) 99 : 1 98 : 2 95 : 5 97 : 3 5 C / 41 F - - - - Slight prec. Slight prec. - - - Ambient - - - - - - - - - - - - - Table 4 Compatibility between concentrated potassium and cesium formate brines and four different glycols (MEG, DEG, TEG, and PEG) after one hour s exposure at ambient temperature and 70 C / 158 F. The brines used for testing are: potassium formate 1.56 g/cm 3 / 13.02 lb/gal and cesium formate 2.20 g/cm 3 / 18.36 lb/gal. Brine KFo + MEG KFo + DEG KFo + TEG KFo + PEG CsFo + MEG CsFo + DEG CsFo + TEG CsFo + PEG Temp. Formate-to-glycol blend ratio (vol/vol) Ambient - Slight haze Haze Slight haze - Ambient - - - - - 70 C / 158 F - - Slight yellow Slight yellow Yellow Ambient - - Precipitation - - Ambient Haze Haze Haze Slight haze Slight haze 70 C / 158 F Precipitation Precipitation Haze - - Ambient Stratification Stratification Stratification Stratification Stratification 70 C / 158 F - - Very slight haze Very slight haze - Ambient Stratification Stratification Stratification Stratification Stratification Ambient Stratification Stratification Very slight haze, Haze, Very slight haze, 70 C / 158 F Yellow Yellow Haze, yellow Haze, yellow Yellow Ambient - - Slight haze Slight haze - 70 C / 158 F - - Haze, yellow Haze - SECTION B4 PAGE 5