High Performance Mud Logging Package Accurate data increases reserve adds and optimizes production Technology Innovation drives efficiencies in a low cost environment David Tonner © 2015 Diversified Well Logging LLC. ALL RIGHTS RESERVED. TERMS AND CONDITIONS OF USE: BY ACCEPTING THIS DOCUMENT, THE RECIPIENT AGREES THAT THE DOCUMENT TOGETHER WITH ALL INFORMATION INCLUDED THEREIN IS THE CONFIDENTIAL AND PROPRIETARY PROPERTY OF DIVERSIFIED WELL LOGGING LLC. (DIVERSIFIED) AND INCLUDES VALUABLE TRADE SECRETS AND/OR PROPRIETARY INFORMATION OF DIVERSIFIED. DIVERSIFIED RETAINS ALL RIGHTS UNDER COPYRIGHT LAWS AND TRADE SECRET LAWS OF THE UNITED STATES OF AMERICA AND OTHER COUNTRIES. THE RECIPIENT FURTHER AGREES THAT THE DOCUMENT MAY NOT BE DISTRIBUTED, TRANSMITTED, COPIED OR REPRODUCED IN WHOLE OR IN PART BY ANY MEANS, ELECTRONIC, MECHANICAL, OR OTHERWISE, WITHOUT THE EXPRESS PRIOR WRITTEN CONSENT OF DIVERSIFIED. © 2018 Diversified Well Logging LLC. CompanyConfidential Information Geochemistry Services Diversified knows that rocks and XRF / XRD hydrocarbon gases matter: • Geosteering • Geostopping • Optimizing Completions We a vast knowledge of mudlogging operations and laboratory equipment and bring it to the TOC wellsite. • HC Generating Potential Can be used alone of as part of your complete laboratory program. DWL’s Geochemistry services offer Mass Spec and Constant Volume critical time sensitive information for Extraction unconventional and conventional •Fluid Typing wells. •Fluid contacts •Compartmentalization / pathways •Rel K / natural fractures Geochemistry Services XRF Spectro Scout Best Portable Example bench top on the market Deliverable Geochemical log Experienced Field Personnel with world class Interpretation expertize Geochemistry Services LECO TOC Example Well Total Organic Carbon (TOC) measurement of carbon content present in well cuttings samples. Samples are combusted using the Leco C744 the latest and most advanced carbon determinator for oil and gas applications. The concentration of organic material in source rocks as represented by the weight percent of organic carbon. Samples are powdered, weighed, for two tests TC measures both inorganic and organic carbon, the TOC sample is chemically treated prior to analysis to remove the inorganic carbon (carbonate) from the rock. For both tests the sample is combusted in the presence of excess oxygen, allowing carbon dioxide to form from the free (organic) carbon in the rock. The amount of carbon dioxide is directly proportional to the amount of carbon in the rock. The two tests yield Total Carbon (wt%) and Total Organic Carbon (wt%) from these carbonate (wt%) can be calculated. Improves well placement, drilling and completions • Best in Class measurements • Rigorous Calibrations against standards are run on The DWL Difference a regular basis • World Class Interpretation expertise • Experienced staff with over 60 years combined experience • Experience of staff brings real time relevancy to the data • Mudlogging and geochemical labs background fused to bring optimized service • Integration with ARM for high resolution rock collection • Automated Remote Mudlogger can automatically collect samples at high frequency Traditional Sample Collection & Analysis Typical MudLog The Mudlogging Geologist Will then make a visual inspection of the Sample under a microscope and make An estimation of the % of each lithology present Samples are bagged, labeled, shipped then Mudlogging Geologist/ Sample Catcher stored Collects the sample from the Shale Shaker And conducts some preliminary sieving and cleaning HS & E Risk One of the key risks Associated with mudlogging Is slips trips & falls. The repetitive nature of Collecting the samples manually, presents a significant risk. The ROP Challenge 600 Manual Sampling • Higher resolution rock Frequency at 240 collection and record ft. / hr. and one • Improved stratigraphic sample every 20 correlation minutes – 80 ft • Improved resolution understanding of geo- mechanical properties • Assistance with picking landing zones ARM Sampling • Improved wellbore Frequency at 240 ft. containment / hr. and one • Optimized sample every 1 Completions minute – 4 ft resolution Qualitative Sample Analysis The visual inspection and estimation Of the rock composition is qualitative And can vary from logger to logger, day Shift to night shift, well to well. Automated Remote Mudlogging Device • ARM* = AUTOMATION • Industry only fully automated sample collection device • Sampling triggered by lag calculation via WITS • Stores up to hold up to 350 samples for later retrieval • Real time access for process control and images * Patent Granted ARM – Automated Remote Mud Logging – What is it? Aggregate Sample Extraction ARM Board NEMA 4 Explosion Sampling Points Proof Housing ARM – Automated Remote Mud Logging Industrial Seal wrap Sample Collection device UV Light High Resolution Digital Microscope Sample Intake House 635um Mesh Sample Collection Reel 350 Samples/ Reel Return Flow to pits Water/Diesel Intake Lines 2.25GPM 5 Minutes to Change Reel WITS Fed Depth drives Drum and Internal DAQ Calculates LAG Realtime & Post Well Sample Evaluation Dual Resolution Images UV light for fluorescence Each sample is labeled and stored for further analysis XRF Measurements on Drill Cuttings Sample Quality Depth Control • Are the cuttings on depth? • Do they represent the interval drilled? • Elemental GR (U+K+Th) vs MWD GR Redox Elements Proxy for TOC No H2S +H2S XRF Run on ARM collected samples Compared to High Resolution XRF on a core Green lines are XRF measurement taken on this cored section Excellent showing very Correlation strong Between agreement Trace with ARM Metals Ni collected and TOC. samples Discrepancy analyzed with with V shows XRF. need for basin specific ARM samples calibration. collected at 5- 10 ft Intervals. Integrated Automated Mud Log •Real-time viewing of images •(remote Co. Geologist, Co. Man, Mud Logger •High frequency samples at high ROP’s •Accurate samples of interval drilled •10-30 grams per sample •26 wells completed in total •Reduced personnel onsite •Reduced exposure to hazards / risks •Weather agnostic © 2018 Diversified Well Logging LLC. Company Confidential Information XRF used to Identify Kick off point for lateral DWL XRF Elements Geochemical Log RT Geochemical XRF Applications measurements • Pick Landing zones • Geostop • EGR vs MWD • Geosteer GR • Pick Casing Points • Modelled • Identify Cavings Mineralogy • Pick Well TD • TOC Proxies • Optimize Completions • Stratigraphic Zonation Target Zone for Landing Lateral Geosteering with XRF and GR Application : Optimize Frac-stages for “Engineered Completions” designs Eagleford Lateral Well Chemostratigraphy , Mineralogy, Brittleness, & TOC Derived from Cuttings-Based Elemental Data Austin Eagle Ford From Tonner et al. 2012 17 Potential for Personnel Reduction Lower cost lower HSE risk Service Efficiency Evolution ML Sample Catchers • Remote ML • Geo-steering • Remote DD / Survey Management / Anti-Collision Monitoring 24/7 RTOC 2D Geosteering Instant Visual of Pertinent Data Bed Dip,Dip Direction Quick MWD Data TVD to Important Targets/Tops Well Bore Positionvs. You Overview Target Every Correlation Quick LWD Data Written Remarks Our Contact Info © 2015 Diversified Well Logging LLC. CompanyConfidential 12/03/2015 16 Information DWL Geosteering Look ahead of the Bit Steering Cloud based real time web application for GMXsteering integrated GR/XRF and Geo-mechanical Properties Completion Optimization While Drilling (COWD) Geometric Completion Design Problem Stage no. 2 based on Shmin heterogeneity.