Productivity Injectivity Treating Rate Breakdown Pressure Treating Pressure Tortuosity Screenout.

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1 Productivity Injectivity Treating Rate Breakdown Pressure Treating Pressure Tortuosity Screenout

2 Changing the Game F or the first time in more than twenty years, something truly new has arrived in the world of perforating. GEODynamics has introduced a new class of Reactive shaped charges that deliver a step change improvement in perforation geometry and performance. 2 CONNEX Perforating products generate a secondary reaction in the perforation tunnel thanks to proprietary liner metallurgy and charge design. The reaction breaks up and expels debris to leave a clean, undamaged tunnel, even in variable or low quality rock (see p.4 5 for a detailed explanation). The technology was developed under license from QinetiQ with the vision and support of Shell. CONNEX Perforating delivers debris free tunnels without depending on underbalance. The result is incredible perforating efficiency, superior productivity, enhanced injectivity, and dramatic improvements in stimulation parameters and performance (see p.8 9 for examples.) Hundreds of wells around the world have already benefited from CONNEX Perforating the new, preferred solution for high performance completions. Contact GEODynamics or your perforating service provider about running CONNEX to maximize your well performance.

3 Adding Value Clean, Open Tunnels Independent of Rock Type Every tunnel receives its own cleaning action, independent of other perforations, resulting in near 100% tunnel cleanup and an ideal flow path between the reservoir and the wellbore. Highly Beneficial for Stimulation Clean tunnels with fractured tips what better place to initiate a matrix or fracture stimulation? CONNEX charges reduce breakdown pressures, improve treating rates, eliminate tortuosity, and minimize screenout. 3 Independent of Rock Properties & Underbalance Unlike traditional underbalanced perforating, the effectiveness of CONNEX does not depend on rock properties, wellbore or formation pressures. Debris is expelled from every tunnel, even across the most heterogeneous intervals. No Risk, Massive Rewards CONNEX products deploy in standard hardware. Gun performance and wellbore integrity are unaffected. Penetration into stressed rock is equivalent or better than GEODynamics industry leading RaZor charges. The only thing CONNEX will do to your well is make it better.

4 How Does It Work? 1 CONNEX Perforating charges are deployed in conventional gun hardware, without requiring any special handling, storage, loading or running procedures. Shot density and phasing are the same as conventional charges. 4 2 When the explosive detonates, it collapses the conical shaped charge liner into a fast moving jet of particles, which penetrates the gun body, casing, cement sheath and formation in exactly the same way as a standard perforator. 3 The perforating event drives crushed formation material, cement, charge liner and wellbore casing debris into surrounding pore throats creating the crushed zone. Jet remnants and formation material plug the tunnel tip with compact, impermeable debris.

5 4 5 While conventional charges rely on underbalance surge flow to clean the tunnel, CONNEX charges create a secondary reaction to do the work. Liner material deposited along the tunnel reacts exothermically, generating heat and pressure within and around the tunnel. The resulting over pressure breaks up and expels crushed zone material and compacted debris. When the rock is sufficiently competent, fracturing of the tunnel tip is also observed. This is highly beneficial to inflow performance and stimulation treatments. 5 6 Tunnels produced with CONNEX Perforating charges exhibit ideal characteristics: large diameter, cleaner often fractured tips, and entirely free of crushed zone and compacted fill. Depth of penetration in stressed rock is comparable to GEODynamics industry leading RaZor charges.

6 The Opportunity 6 T he photograph above illustrates the typical features of a deep penetrating tunnel in stressed rock. As is typical for any charge when shot into stressed rock, the total penetration of ±12 inches is significantly less than the registered API RP 19B Section 1 concrete penetration of 47.3 inches. The clear tunnel is relatively narrow, surrounded by a zone of disturbed rock the crushed zone about one quarter inch thick, and only extends to three quarters of the total penetration. The remainder of the tunnel is plugged with compacted fill. UNDERBALANCE? U nderbalanced perforating relies on the pressure difference between formation and wellbore inducing a surge of flow to break up and remove debris from the perforation tunnels. If the reservoir pressure and/or permeability is low, or the wellbore pressure cannot be lowered substantially, there may be insufficient driving force to fail or remove the debris. Where the formation properties vary significantly across the zone, only shots within better intervals will clean up. Dynamic underbalance techniques generate a stronger, more sustained underbalance but cannot mitigate inadequate reservoir energy, heterogeneity, or critically low formation permeability.

7 The Solution T his image vividly captures the dramatic improvement in tunnel geometry and quality delivered by the CONNEX Perforating technology. The entire crushed zone has been removed, as has the compacted fill, to leave a wide, clean tunnel. Note also the fractured tunnel tip, a highly beneficial feature for pre stimulation perforations seen frequently when applying CONNEX charges in competent rock. 7 Extensively Tested While the photo s above show test shots into Berea sandstone (8,000 psi UCS), CONNEX has also been tested extensively into a range of other reservoir analogs, such as Castlegate sandstone (Fig. A 4,000 psi UCS), Parker County sandstone (Fig. B 10,000 psi UCS) and Lueders limestone (Fig. C 7,000 psi UCS). In total, more than 400 laboratory test shots have been completed. A B C

8 Natural Flow... D eep, clean tunnels provide the ideal flow path from undamaged reservoir rock to the wellbore and vice versa, for injection wells. The CONNEX family of products is the first in the industry to be entirely developed and optimized for flow performance, using all natural rock targets. 8 CONNEX has become the charge of choice for many operators, both for new wells and re perforation. In fact, many of GEODynamics customers have been so successful with CONNEX they are specifying the technology on every completion program. Wells making almost no gas have been brought on at over 4 million scf/d. The productivity of oil wells has been increased up to 10 fold compared to previous best in field offsets. In no case has a well perforated with CONNEX produced less than a conventionally perforated offset. Frazier Sand re perforation, Texas Courtesy of Crawford Energy In the first 15 months since launch: More than 250,000 CONNEX charges have been deployed In over 500 wells By more than 30 service companies For more than 40 different operators In 9 countries on 4 continents

9 and Stimulation Near Wellbore Pressure Drop [kpa] Near Wellbore Pressure Drop [kpa] 5,000 5,000 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1, Pump Rate [m³/min] Pump Rate [m³/min] New Charge New Charge TORTUOSITY ELIMINATED Conventional Charge Conventional Charge From SPE , Courtesy Weatherford Canada & Devon Energy...step down and mini frac data indicate all shots were open RELIABLE TREATMENT EXECUTION C ONNEX Perforating offers many advantages when shot prior to a stimulation treatment: For matrix stimulation: High percentage of clean, open tunnels ensures excellent zonal coverage and reliable diversion with limited entry perforating; Deep, clean tunnels are perfect for acid wormholing. For hydraulic fracture stimulation: Fractured tunnel tip and modified stress cage significantly reduce fracture initiation pressure by as much as 70% in field applications; Open tunnels with fractured tips eliminate near wellbore pressure losses (tortuosity); High percentage of clean, open tunnels ensures high treating rates at minimum pressure and hydraulic horsepower, with minimal risk of screenout which means reliable fracs at lower cost. In combination with propellant: Ensures reliable fracture initiation and maximum fracture coverage. 9 Courtesy Enseco & Suncor

10 Putting CONNEX to Work T he table below provides some examples of how CONNEX Perforating products are adding value to assets around the world: 10 Initial Completion Prior to Hydraulic Fracture Stimulation Limited Entry Perforation Achieving Underbalance is Operationally Difficult Heterogeneous Pay Zone Injector Wells Re perforation &/or Depleted Zones When better to apply CONNEX than while the well has maximum potential? Provide the ideal flow path and see the difference in production. Lower initiation pressure, zero tortuosity, lower horsepower requirements, reduced risk of screenout can you afford not to run CONNEX? Shoot a limited number of holes with confidence that the calculated flow area will actually be delivered down hole. Then shoot CONNEX and don t worry about underbalance! Let the charge do the work and still see the benefit of clean perforations. Permeability varying wildly within your zone of interest? No problem CONNEX will ensure clean tunnels in spite of the rock quality contrast. Open, clean tunnels across the entire injection interval mean near ideal flow distribution and minimized injection pressures. If your well was perforated with an out of date system or more than five years ago, chances are it will benefit significantly from re perforation. If the zone is depleted, only CONNEX can assure you of clean tunnels and maximum productivity.

11 CONNEX Products SIZE NAME PART NUMBER SHOT DENSITY PHASING EXPLOSIVE ENTRY HOLE [inches] [shots/ft] [deg] [grams] [inches] CONNEX EC2 20A0722 RC 6 F g HMX CONNEX XLS EC2 20B0722 RC 6 F/D g HMX / CONNEX EC2 27A1522 RC 6 F 60 15g HMX /8 3.3/ CONNEX EC2 33A2322 RC 6 F g HMX CONNEX XEH EC2 33A2342 RC 6 F g HMX CONNEX EC2 33A2322 RC 6 F/D g HMX CONNEX EC2 33B2522 RC 6 F 60 25g HMX CONNEX XEH EC2 33B2542 RC 6 F 60 25g HMX CONNEX EC2 40A3922 RC 4 F 90 39g HMX / CONNEX EC2 40A3922 RC 5 F 60 39g HMX CONNEX EC2 33A2322 RC 12 F 135/ g HMX CONNEX EC2 40A3922 RC 12 F 135/45 39g HMX 0.44 Legend Notes D F XEH XLS Qualified for shooting dry Qualified for shooting in fluid extra Entry Hole extra Low Swell API penetration values cannot be obtained for CONNEX charges because the secondary reaction destroys the cement target and prevents useful data from being gathered. CONNEX penetration in stressed rock is equivalent to that of GEODynamics RaZor products. Data from stressed rock tests is available on request. For More Information: solutions@perf.com +1 (817)

12 Executive / Sales GEODynamics, Inc. 415 Woodline Drive The Woodlands, Texas Phone: +1 (281) Engineering / Manufacturing / Administration GEODynamics, Inc. Brazos Park Technology Center West Interstate 20 Millsap, Texas Phone: +1 (817) GEODynamics, Inc.

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