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Multilateral Stimulation Technology

Force 11th June 2019 2

MORNING SESSION AGENDA

• Company

• Technology

• Track record, applications and case histories (JCR)

• How we work

• New technology developments 3

COMPANY Fishbones at a glance

Offices First Fishbones Jetting installation Stavanger, Dubai, Muscat November 2013

Employees First Fishbones Drilling installation 25 and growing (11 hires planned for 2019) July 2015

Certifications Number of installations in 2018 ISO 9001-2015 10

Number of SPE papers Target 7, 1 pending >100 installations in 2021

Awards ONS Innovation award (2014), OTC Spotlight on new technology (2015), Gullkronen (2016) 4

OUR VISION To be the first consideration For stimulation of conventional reservoirs worldwide 5

COMPANY Global Footprint

Equinor Aker BP Total Stavanger Lundin OXY Shell Beijing ADNOC Kuwait Houston Doha Abu Dhabi Kuwait Oil Company Cairo Badr Petroleum Co Dammam Dubai Mumbai Tatweer Petroleum Villahermosa Muscat Kuala Lumpur PetroChina Petroleum Development Oman Jakarta Pemex

CNOOC Brisbane California Resources Corporation

Fishbones Presence 6

TECHNOLOGY Product Portfolio

Fishbones Jetting Fishbones Drilling Carbonates All formations including Coal bed methane sandstone and basement Oil

Complimentary Fishbones Products:

Backbone Anchor Fishbones Shoes Fishbasket 7

TECHNOLOGY The value of Fishbones stimulation technology

Increase reservoir exposure Accurately stimulate zones

Connect layered reservoirs Bypass damaged zone

Bypass permeability barriers Reduce drawdown and reduce coning effects

Connect to natural fractures Improve distribution

Connect with sweet spots and lenses Reduce HSE exposure 8

TECHNOLOGY Reduced environmental impact

Accurate stimulation

Reduced CO2 emissions Fishbones Drilling 9000

3rd party study (Add Novatech AS 2016) 8000

7000

6000

5000

4000

CO2 emissions (tonnes) CO2 reduction using CO2 Tonnes 3000 case Hydraulic Fishbones Drilling Fishbones Drilling Fracturing (tonnes) 2000 Offshore platform well 2,292 5,549 3,257 1000 Offshore subsea well 4,240 8,459 4,219 0 Offshore platform well Offshore subsea well 9

TRACK RECORD Track Record

We continue to extend our geographical reach and increase the number of both on and offshore

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Horizontal wells 50% x2 23 1935 Lower CO2 Average Installations Needles emissions increase in globally to date installed production Compared to Jetting installations: 20 hydraulic Drilling installations: 3 1 fracturing Vertical wells

48 2012m 3853m 142ºC 17/6 Max Fishbones Longest Deepest Highest temperature Onshore/ subs in a single horizontal installation application Offshore wells run section (TVD) 10

APPLICATIONS Applications to-date

Formations Well types Combinations • Naturally fractured carbonate • Oil producers with other lower completion tools formations • Gas producers • screens • Layered carbonate formations • Water injectors • Swellable packers • Chalk formation • • Layered sandstone formations Frac sleeves • Coal bed methane • Tracers • Timer shoes 11

CASE HISTORIES Case Histories Joint Chalk Research group summary

JCR pilot well program achievements 2009 May 2012 Apr 2014 Jul 2015 Dec 2016

• JCR project objectives were met • Fishbones jetting is a proven technology R&D contract • Operational procedures established

• Positive contribution to production Fishbones for Decision 1st well JCR 2nd well JCR 3rd well JCR Carbonates point to Austin chalk, Buda formation, Fahud • Increased production sustained for 2+ years development terminate EnerVest, Blackbrush O&G, formation, contract Valhall pilot Texas Texas PDO, • Efficient stimulation well and Oman • approach Developed proven solution for wellbore cleanup JCR for candidates • Numerous lessons learned implemented

• Personnel skills developed 13

CASE HISTORY: NORTH AFRICA ONSHORE INSTALLATION Fishbones unlocks tight gas (2018)

Challenge Solution Results

• 1000 meter 6” open hole section • 4 ½” Fishbones liner with 30 • Gas production rates exceed in tight limestone formation (<0.5 Fishbones Jetting subs (120 laterals) customer expectations mD permeability) • 80% higher rates than offset • Well partially drilled out of target hydraulically fractured wells • Offset wells were hydraulically • No water production fractured, experienced water influx 14

CASE HISTORY: MIDDLE EAST OFFSHORE INSTALLATION Fishbones increases PI >4 times (2018)

Challenge Solution Results

• New well in layered, naturally • 4 ½” Fishbones liner with 25 • Oil production increased from ~600 fractured limestone formation (3 - Fishbones Jetting subs (100 laterals) BPD to ~1300 BPD 5 mD permeability) • PI increased more than 4 times • Poor vertical permeability • Operator placed order for additional • Well produced barefoot open hole six wells for 2 months before Fishbones • Global Master Service Agreement was installed signed 15

CASE HISTORY: MIDDLE EAST ONSHORE INSTALLATION Step-change in injectivity (2018)

Challenge Solution Results

• Existing water injector in tight • 4 ½” Fishbones liner with 40 • Injection rates increased limestone formation Fishbones Jetting subs (160 laterals) • Reduced surface pressures • Well suffered from poor injectivity: • SPE paper co-authored with the Low injection rates and high surface operator is in the works, to be pressures presented at ADIPEC Nov 2019 • 5m target reservoir thickness 16

CASE HISTORY: NORWAY SUBSEA INSTALLATION Fishbones doubles oil rates (2015)

Challenge Solution Results

• New well in subsea development • 5 ½” liner with 48 Fishbones Drilling • interpretation of production subs (144 laterals) to accurately log (September 2017) concludes that • Tight, layered sandstone formation (0 - connect the reservoir 2/3 of the production is originating 10 mD) • The downside risk assessed by from the main bore i.e. 100% higher • Vertical flow barriers Equinor to be limited production with Fishbones • 30 meter reservoir thickness • SPE-180390 • Need for accurate stimulation • Equinor awarded Fishbones with TRL7 • Dual lateral well with 2000m / 6600ft 8 qualification ½” horizontals 17

CASE HISTORY: NORWAY SUBSEA INSTALLATION Fishbones doubles oil rates (2015)

Odfjell Driller, Otto Vabø “This is the easiest drilling operation I’ve experienced“

Discipline leader Reservoir Technology, Bård Haukland “Excellent cooperation with Fishbones before, during and after installation“ 18

HOW WE WORK Business process

Initial contact/meeting

Client to fill in Well Information sheet

Client to provide core samples for testing Fishbones evaluates information Fishbones performs core sample testing and report

Fishbones develops Fishbones technical / Client Fishbones delivery, Well technical solution if commercial proposal Purchase assembly and planning project is feasible to client Order installation 19

JOB DESIGN Application evaluation

Review of data • yes/no

Reservoir simulations

• Fishbones Simfish modelling • 3rd party reservoir modelling (Fenix) • Operator performed 20

JOB DESIGN Application evaluation

Review of data • yes/no

Reservoir simulations

• Fishbones Simfish modelling • 3rd party reservoir modelling (Fenix) • Operator performed 21

JOB DESIGN Core sample testing

• Performed on all types of formations • Fishbones testing facility at HQ • Mobile test units available if cores cannot be exported • Required core dimensions: 1.5in diameter or larger, minumum 2in length • Fishbones Jetting: Sample of actual acid is preferred 22

JOB DESIGN Technical proposal

• Technology overview

• Reservoir and well considerations

• Core sample testing Fishbones Stimulation Technology • Reservoir simulations

• Technical solution Technical Proposal • Completion schematic

• Hydraulic calculations

• System components details

• Operator supply

• Operational procedures 23 New Technology Developments

Fishbones with oriented needles

• Needles to only penetrate in desired direction(s) • Scope is for both Fishbones Jetting and Fishbones Drilling • JIP started Q1 2019 with Aker BP, Lundin and Neptune Energy • Scheduled to be ready for field installation Q2 2020

Other • Fishbones Jetting with particle control (JIP) • Fishbones Drilling for injection wells • Fishbones Jetting retrievable on drillpipe • Fishbasket 1-run 24

THANK YOU