Pinnacle/Halliburton. Reservoir Diagnostics

Transcription

1 Pinnacle/Halliburton Hydraulic Fracture Diagnostics and Reservoir Diagnostics Eric Davis May 2009

2 About the Purchase Pinnacle Overview Fracture Diagnostics Why Map? Agenda Microseismic & Tilt Mapping Examples Reservoir Diagnostics Background Materials

3 Why are we here today? Halliburton has acquired Pinnacle assets, including Fracture Diagnostics and Reservoir Monitoring Services. Software, consulting services and Applied Geomechanics remain with Carbo Ceramics. 3

4 How will Pinnacle be managed? Retain Pinnacle brand, culture and business model Retain existing management team Significant ifi investment t in North America and international business growth Invest in current and future human capital Accelerate development of synergetic technologies and workflows in collaboration with other product services lines within Pinnacle and Halliburton 4

5 About the Purchase Pinnacle Overview Fracture Diagnostics Why Map? Agenda Microseismic & Tilt Mapping Examples Reservoir Diagnostics Halliburton Pinnacle Synergies Additional Background Materials

6 Pinnacle Technologies Founded in 1992 >160 employees today Offices in Houston, San Francisco, Bakersfield, Denver, Midland, OKC, Calgary, Beijing Provided services to all major producers and service companies Over 200 technical papers published 2 R & D 100 awards 2 Meritorious Engineering awards Over 11,000 stages mapped

7 Pinnacle Leader in Mapping Technologies Hardware Development Surface tilt series 5000 R&D 100 award DH Tilt 1 st Gen Harts Eng Award DH Tilt 2nd Gen 2000 TW Tilt (3rd Gen) Hybrid tools DTS Microseismic GPS InSAR Harts Eng Award Surface tilt Denali Software Surface tilt analysis DH tilt analysis Reservoir Monitoring analysis FracproPT Microseismic InSAR/GPS WellTracker

8 Pinnacle Leader in Mapping Experience To otal Number of Jobs Mappe ed to Date >11,000 WellTracker TWT/TWM TWM MSM TWT DHT STM 0 * Estimates Pinnacle B* C* D* E* F* G* Company

9 Revenue by Product Line 55 $ in Millions 25-50% 50% growth 50 Software Engineering 45 GeoTech/Tool Sales Reservoir Monitoring 40 Frac Mapping

10 Top 15 Customers EOG ChevronTexaco Talisman EnCana Chesapeake Antero Shell PetroCanada Devon Quicksilver il Rimrock Samson Aera Plains ConocoPhillips

11 About the Purchase Pinnacle Overview Fracture Diagnostics Why Map? Agenda Microseismic & Tilt Mapping Examples Reservoir Diagnostics Halliburton Pinnacle Synergies Additional Background Materials

12 We Know Everything About Our Fracs Except... Poor fluid diversion Out-of-zone growth Upward fracture growth T-shaped fractures Perfectly confined frac Twisting fractures Horizontal fractures Multiple fractures dipping from vertical

13 How Can Fracture Mapping Provide Value? Determine Azimuth Optimize well location to maximize recovery Optimize horizontal well azimuth for best fracture geometry Determine Fracture Height Optimize perforating strategy Reduce out of zone growth, potentially increase half-length Determine Fracture Half-Length Optimize well location to maximize recovery Optimize i Frac Stage volume Determine Fracture Coverage in Horizontal wells Optimize Completion Design, Stage size, spacing etc.

14 Surface Tilt Mapping Measure Azimuth and Approximate Fluid Distribution in Horizontal Laterals Reservoir Monitoring i Distributed Temperature Sensing Microseismic Mapping Deployed On Casing or Tubing Deployed On Fiber-optic Wireline in Treatment or Offset Well Measure Frac Height, Length And Azimuth In Real-time Calibrate Frac Models Measure Frac Height/Distribution and Production Response Downhole Tilt Mapping Deployed Single-Conductor Wireline in Treatment or Offset Well Measure Frac Height, Length Calibrate Frac Models

15 Fracture Diagnostic Technologies Will Determine May Determine Can Not Determine ABILITY TO ESTIMATE GROUP DIAGNOSTIC Net Pressure Analysis Well Testing Production Analysis Radioactive Tracers Temperature Logging HIT Production Logging Borehole Image Logging Downhole Video Caliper Logging Surface Tilt Mapping DH Offset Tilt Mapping Microseismic Mapping Treatment Well Tiltmeters MAIN LIMITATIONS Modeling assumptions from reservoir description Need accurate permeability and pressure Need accurate permeability and pressure Depth of investigation 1'-2' Thermal conductivity of rock layers skews results Sensitive to i.d. changes in tubulars Only determines which zones contribute to production Run only in open hole information at wellbore only Mostly cased hole info about which perfs contribute Open hole, results depend on borehole quality Resolution decreases with depth Resolution decreases with offset well distance May not work in all formations Frac length must be calculated from height and width

16 How Can Fracture Mapping Provide Value? Determine Azimuth Optimize well location to maximize recovery Optimize horizontal well azimuth for best fracture geometry Determine Fracture Height Optimize perforating strategy Reduce out of zone growth, potentially increase half-length Determine Fracture Half-Length Optimize well location to maximize recovery Optimize i Frac Stage volume Determine Fracture Coverage in Horizontal wells Optimize Completion Design, Stage size, spacing etc.

17 Main Project Objective Determine Far-Field Field Frac Azimuth Using Microseismic Mapping GM DOE 2-M-35 5/2/ ,005,697 GM GM Key Wells with Borehole Image Logs GM GM DRILLING_ORDER : 2 COMPLETION_GROUP : 1 GM DRILLING_ORDER : 3 COMPLETION_GROUP : 1 GM MSM Observation Well GM GM DRILLING_ORDER : 4 COMPLETION_ GROUP : 1 GM GM DRILLING_ORDER : 10 COMPLETION_GROUP : 3 GM GM DRILLING_ORDER : 5 COMPLETION_GROUP : 1 GM /31/2006 DRILLING_ORDER : 1 COMPLETION_GROUP : 1 GM DRILLING_ORDER : 8 COMPLETION_GROUP : 2 DOE 1-M-35 12/6/ ,626,797 GM /21/ ,253 GM DRILLING_ORDER : 6 COMPLETION_GROUP : 2 GM DRILLING_ORDER : 7 COMPLETION_GROUP : 2 GM GM /2/ ,471 GM GM /23/ ,983 GM GM GM M /22/ , PETRA 11/17/2006 1:18:10 PM GM GM /17/ /20/ ,298 GM DRILLING_ORDER : 11 COMPLETION_GROUP : 3 GM /8/ GM DRILLING_ORDER : 9 GM COMPLETION_GROUP : 3 GM DRILLING_ORDER : 12 COMPLETION_GROUP : 3 GM GM /1/ ,199 GM GV TW 8 11/11/ /10/1 1,254,461 21,6 0GM FEET

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19 Surface Tilt Map View All Stages Wellheads Note: Frac lengths and dips are not drawn to scale in this view. Wellbores Perforation Locations Fracture Azimuth, Stage 1 Fracture Azimuth, Stage 2 Fracture Azimuth, Stage 3 Fracture Azimuth, Stage No orthing (feet) SJU 27-5 #906 SJU 27-5 #910 SJU 27-5 # SJU 27-5 # SJU 27-5 #911 SJU 27-5 # Easting (feet)

20 th (ft) Where Should I Drill My Next Well? Azimuth Changes Around Basin South-Nort 500 Microseismic Monitoring Of Stages In Each Of 2 Well Pairs 200 GV-1 Waterfracs West-East (ft) SPE (Williams) GV-2 Gel fracs GV-3 Observation well South-North (ft) Grand Valley Field RU-1 Gel fracs RU-2 Waterfracs PARACHUTE West-East (ft) RU-3 Observation well Parachute Field Colorado River Rulison Field Mesaverde Gas Wells 0 2 Wasatch Gas Wells Scale - Miles

21 How Can Fracture Mapping Provide Value? Determine Azimuth Optimize well location to maximize recovery Optimize horizontal well azimuth for best fracture geometry Determine Fracture Height Optimize perforating strategy Reduce out of zone growth, potentially increase half-length Determine Fracture Half-Length Optimize well location to maximize recovery Optimize i Frac Stage volume Determine Fracture Coverage in Horizontal wells Optimize Completion Design, Stage size, spacing etc.

22 Did the Frac Stay in Zone? Stage 6 Stage GR Why can t I pump into zone 2 Why does zone 3 not produce well Depth (ft) Stage Stage Stage Stage Viewing angle varies by stage to show maximum Distance Along Fracture (ft)

23 How Can Fracture Mapping Provide Value? Determine Azimuth Optimize well location to maximize recovery Optimize horizontal well azimuth for best fracture geometry Determine Fracture Height Optimize perforating strategy Reduce out of zone growth, potentially increase half-length Determine Fracture Half-Length Optimize well location to maximize recovery Optimize i Frac Stage volume Determine Fracture Coverage in Horizontal wells Optimize Completion Design, Stage size, spacing etc.

24 Model Calibration for J Sand in the DJ Basin, CO (SPE 96080) Uncalibrated

25 Model Calibration the J Sand in the DJ Basin, CO (SPE 96080) Uncalibrated Long confined fracture based on microseismic mapping Calibrated

26 How Can Fracture Mapping Provide Value? Determine Azimuth Optimize well location to maximize recovery Optimize horizontal well azimuth for best fracture geometry Determine Fracture Height Optimize perforating strategy Reduce out of zone growth, potentially increase half-length Determine Fracture Half-Length Optimize well location to maximize recovery Optimize i Frac Stage volume Determine Fracture Coverage in Horizontal wells Optimize Completion Design, Stage size, spacing etc.

27 Horizontal Drilling Larger Area of Contact with Wellbore Minimize Fracture Height Growth Less Environmental Impact (fewer surface sites)

28 Issues for Horizontal Well Fracturing Optimizing wellbore trajectory & reservoir drainage requires knowledge of fracture geometry Wellbore Trajectory high, h low, transverse, longitudinal? l? Interval Coverage (fracture height & payzone) Wellbore Coverage (along the lateral) Diversion & Staging OH, OH packers, CH, perf balls, plug & perf, etc. Fracture Execution & Complexity Perforating, wellbore clean-out, initiation, to cement or not Minimize Complexity, Good Communication to the Formation & Optimum Interval/Lateral Coverage

29 Microseismic in Horizontal Wells Barnett Shale Longitudinal Gel Frac Versus High Rate Waterfrac (Refrac) Increased stimulated volume Northing South-Nor (f rth ft) (ft) Observation Observation Well Well 1 1 Observation Well 2 Observation Well 2 South-No orth (ft) Perforations Easting West-East (ft) (ft) Observation Well 1 Perforations Observation Well West-East (ft) SPE (Devon)

30 About the Purchase Pinnacle Overview Fracture Diagnostics Why Map? Agenda Microseismic & Tilt Mapping Examples Reservoir Diagnostics Halliburton Pinnacle Synergies Additional Background Materials

31 Pinnacle Reservoir Monitoring i

32 Main Focus Areas Any Heavy Oil Steam EOR Field Any Long Term Waste Injection Project Carbon Capture and Sequestration (CCS) Projects Any well where pressure / temperature monitoring is desired Future: Monitoring of large offshore projects

33 How Can Reservoir Monitoring Provide Value? Risk avoidance in steam EOR fields Steam program optimization Cost effective long term monitoring for waste injections Cost savings through virtual production or injection logs from fiber optic solutions. Identification of fluid movement over time Is that a sealing fault? Where are my drill cuttings going? Is my CO 2 staying in zone?

34 Surface Deformation Tilt, GPS, InSAR Surface Microseismic Special (Rare) Applications Downhole Microseismic Downhole (Deformation) Tilt Offset and Active Well (Injector Offset or Producer) and Active Well (Injector or Producer) VSP Acquisition Near Wellbore Monitoring Crosswell Seismic Fiber Optic Acquisition Temperature and Pressure Reservoir Monitoring Technologies

35 Direct Fracture Diagnostic Techniques Principle of Tilt Fracture Mapping Hydraulic y fracture induces a characteristic deformation pattern Fracture-induced surface trough Induced tilt reflects the geometry and orientation i t ti off created t d hydraulic fracture pick-up electrodes Fracture gas bubble conductive liquid excitation electrode glass case Downhole tiltmeters In offset well

36 Surface Tilt Tool Sensitivity Tiltmeter Data from a Quiet Site 250 Full Moon on 6/20/ New Moon on 7/4/97 Tilt (Nanor radians) /14/97 06/19/97 06/24/97 06/29/97 07/04/97 07/09/97 07/14/97 pick-up electrodes Date gas bubble X Y NanoRadian Resolution conductive liquid excitation electrode glass case

37 Surface Tilt Tool Sensitivity Earthquake Response San Salvador 13-Jan 10:33 (CST) 7.6 Magnitude India 25-Jan 21:16 (CST) 7.8 Magnitude

38 Surface Mapping Tilt Mapping Offset Well Mapping Fracture Dimensions Well Spacing Model Calibration Downhole Mapping Fracture Orientation Horizontal Wells Well Placement Long-term reservoir monitoring Active (Injection) Well Mapping Fracture Height Model Calibration Critical Wells

39 Tilt Examples

40 Surface Tiltmeter/GPS Mapping Mapped Cement Squeeze Event depth and error bounds computed Cement squeeze performed at 345. Suspect upward channel

41 Tilt Examples

42 Microseismic Mapping Obtaining Data From an Offset Observation Well Fiber optic wireline and 7 conductor 6-20 Levels, 3 Component Sensors Mechanically Coupled Can be deployed under pressure

43 SAGD Steam Flood Example Tiltmeter/Strain-Microseismic Presentation Room 217D 11:05

44 High Precision Differential GPS 3-D displacement Sensitivity: 1-½ mm vertical displacement ½ mm lateral displacement

45 Pinnacle Technologies InSAR Technology Interferometric Synthetic Aperture Radar spaceborne radar Sensitivity: Can be sub-centimeter displacement under right conditions

46 InSAR Applications Steam Induced Oil field heave. San Joaquin Valley, CA

47 InSalah Algeria Pinnacle

48 Monitoring Program 4 year InSAR historical study 2 year acquisition of RSAT2 Ultra Fine SAR data Surface Tiltmeter Array over KB-501 injector Field wide DGPS array Reservoir level volumetric & strain studies

49 In Salah Surface Deformation Time Series from 2004/7/31 to 2008/5/31 // 2004/7/ /10/9 2004/12/ /2/ /6/ /9/ /2/ /7/1 2006/12/ /3/3 2007/12/8 2008/2/ /3/ /5/31

50 SWP Carbon Sequestration San Juan Basin, New Mexico Pinnacle

51 Site Location Pump Canyon CO2 Sequestration San Juan Basin, NM Sec 32 / T31N, R8W

52 Field Installation

53 Site Location GPS Reference GPS Remote Pump Canyon CO2 Sequestration Injection Well Production Wells Tiltmeter Sites (36)

54 Injection/Production from section 32 & surrounding Producers in section 32 Producers immediately surrounding section 32

55 Pre-CO2 Injection: < 7/30/2008 microradians X Tilt Pinnacle Technologies Injector Stage 1 SJ04.ptx Serial #:7725 Y Tilt microradians ~ 2 month settling time for many tiltmeter instruments /19 0:00 4/26 0:00 Extracted Tilt Signals: X Tilt s microradians /20 0:00 4/27 0:00 Extracted Tilt Signals: 5/3 0:00 5/4 0:00 5/10 0:00 5/11 0:00 5/17 0:00 5/24 5/31 6/7 6/14 6/21 6/28 0:00 0:00 0:00 0:00 0:00 0:00 Pinnacle (GMT-07:00) Technologies Arizona Injector X: microradians Stage 1 Y: SJ27.ptx microradians Serial #:7755 5/18 0:00 5/25 0:00 6/1 6/8 6/15 6/22 0:00 0:00 0:00 0:00 (GMT-07:00) Arizona 6/29 0:00 X: microradians Y: microradians 7/5 0:00 7/6 0:00 7/12 0:00 7/19 0:00 7/13 0:00 7/26 0:00 7/20 0: /27 0:00 YTilt microradians Settling lasts until June, 2008 resulted in

56 Period 2: CO2 Injection Ramp-up 7/30/08 9/9/08 X Tilt Pinnacle Technologies Injector Stage 1 SJ15.ptx Serial #:7760 Detrended Y Tilt microradians /20 0:00 Extracted Tilt Signals: 6/27 0:00 7/4 0:00 7/11 0:00 7/18 0:00 7/25 8/1 0:00 0:00 (GMT-07:00) Arizona 8/8 0:00 X: microradians Y: microradians 8/15 0:00 8/22 0:00 8/29 0:00 9/5 0: microradians Long-term change in tilt response observed after injection initiation microradians X Tilt Pinnacle Technologies Injector Stage 1 SJ16.ptx Serial #:7857 Detrended Y Tilt microradians This change is observed at several tiltmeter sites /20 0:00 Extracted Tilt Signals: 6/27 0:00 7/4 0:00 7/11 0:00 7/18 0:00 7/25 8/1 8/8 0:00 0:00 0:00 (GMT-07:00) Arizona X: microradians Y: microradians 8/15 0:00 8/22 0:00 8/29 0:00 9/5 0:00-0.8

57 Period 2: CO2 Injection Ramp-up 7/30/08 9/9/08 Reservoir Strain Computation Small volumetric changes calculated Theoretical / actual tilt correlation is poor Reservoir strain from surface tilt Surface deformation from reservoir strain

58 Pre-CO2 Injection: < 7/30/2008 C l cycle Color l (blue to red) represents p 2.3 cm (1.0 inch) of slant-range change. No characteristic bull-eye patterns observed within this imagery. We will continue to look at this to better constrain any background signal Additionally Preliminary InSAR observations hint that there is negligible deformation prior to CO2 injection period September 21, 2007 August 4, 2008

59 Pinnacle Technologies Surface Deformation Monitoring Technologies Synthetic Aperture Radar Interferometry (InSAR) Global Positioning System (GPS) Tiltmeters Description Compares the phase change between reflected Directly measures surface deformation using a Directly measures surface deformation (Tilt radar pulses recorded at two different network of surface receivers and a or gradient of displacement) using an times from space borne satellites constellation of satellites array of tools Sensitivity Sub-centimeter displacement 1.5 mm (0.06 inches) of vertical displacement mm ( inches) of vertical displacement Key Strengths Broad spatial coverage No ground instrumentation required Monthly monitoring capabilities Operates continuously Operable in most weather conditions 3-D displacement monitoring Absolute elevation measurements Measures extremely small movements Operates continuously Uses very little power Measurements not influenced by weather

60 Fiber Optic Pressure

61 Fiber Optic Gauge and Carrier Gauge Carrier

62 Pinnacle SILO Enclosure Similar to our proven Surface Tilt Sites (over 15 years of experience) Installed 5-20 ft below the earth s surface with single 10 - diameter PVC pipe Drilled with Rat-hole drilling unit, same as conductor pipe or dead-man anchors Eliminates need for doghouse and climate control equipment and associated power Stable Temperatures ideal for electronics and batteries (constant ~60 F) Eventually will house most of our reservoir monitoring equipment p FOP and DTS RM Computers GPS MSM - Future Sealed Pipe 10 PVC Pipe 5-15 ft Ground Level FOP DTS FOP DTS

63 Pinnacle SILO Instrumentation Davidson Fiber Optic Pressure Surface Interrogator SensorTran DTS Surface Interrogator, Proprietary to Pinnacle

64 What Can You Do With DTS and Pressure Data Viewer DTS Data Identify large temperature anomalies Identify water or gas breakthrough Behind pipe channels Identify top of cement, washouts and voids Isolation failure (flappers) Tubular or packer failures Pressure Data Initial Reservoir Pressure (Bottom zone) Overall bottomhole pressure history (flowing and SI) PTA Virtual Production Log Production/injection splits by zone Analyze small temperature variations Identify water or gas breakthrough Behind pipe channels Adding a single pressure point adds significantly to the analysis Activities Monitored C ti (d d f i i t ) Cementing (depends of rig requirements) Stimulations/Chemical Injection/Profile Modification Flowbacks Long-term production and injection

65 Typical Deployment Casing Surface Casing Cross-coupling Protectors, every other joint Fiber Optic Cable Production Casing Tubing Need Oriented Perforating Can map cmtg, frac, flowbacks StimWatch Ongoing production Single Press Bottom Hole Gauge Carrier TD: 6,5

66 Cross-coupling Protectors, every other joint Typical Deployment Tubing Tubing No Perforating Issue Lower Cost, daylight operations Surface Casing Requires annular BOP Can not map cmtg, frac, flowbacks Production Casing Ongoing production Single Pressure Fiber Optic Cable Tubing Tail 2-3/8, 4.6 ppf, K-55 EUE tubing extended below the bottom perforation Bottom Hole Gauge Carrier TD: 6,

67 DTS Viewer of Data Pinnacle Reporting Advanced Processing Virtual Production Log

68 Questions?

69 THANK YOU

70 About the Buyout Who is Pinnacle Agenda Halliburton Pinnacle Synergies Fracture Diagnostics Microseismic Mapping Tilt Mapping Why Map? Additional Background Materials

71 Microseismic Mapping Deployed On Fiber-optic Wireline Mechanically Clamped To Wellbore Measure Frac Height, Length And Azimuth In Real-time Calibrate Frac Models

72 What Is It? Microseisms A Microseism Is Literally A Micro-Earthquake. Microseisms That Occur During Hydraulic Fracturing Are Caused By: Changes In Stress And Pressure As A Result Of The Treatment By Movement Along Induced Fracture Planes Where Hindered By Irregularities Leakoff: Increased Pore Pressure Reduces Net Stress On Natural Fractures (Less Friction) Fracture Irregularities May Stick & Slip As Fracture Propagates Shear Added To Favorably Oriented Natural Fractures P frac Crack Tip NATURAL FRACTURES

73 Receiver Arrays OYO Geospace System DS 250 DS 150 Fiber Optic Wireline Fast Telemetry Large Number Of Receivers 32 Maximum Per Well High Sampling Rates 4,000 Samples Per Second DS 250 Vertical Up V Clamp Arm In Back H2 H1 DS 150 Tri-Axial Sensors (Geophones)

74 Microseismic Wireline Deployment & Set-up Observation Well Treatment Well ~ 3000 ft Crane Wireline Unit with 12-Level 3C Tool String

75 What Information Is Needed For Processing? Formation Velocity Advanced Sonic Log (P & S Waves) Perforation Timing Receiver Orientation Perforations Or String Shots Known Locations Surveys Surface Survey (Well-to-well) Pinnacle Checks With GPS Deviation Surveys Monitor & Frac Wells Distance Elevation Direction Accuracy

76 Perforation Timing Measurements Perforations Or String Shots Are Required to Determine Orientation of Every Tool in Toolstring Use For Velocity Measurements Requires A Precise Measurement Of Exactly When It Fired (Not When Voltage Was Increased) Pinnacle Has A Patent-Pending Procedure For Measuring The Timing Pulse On The Firing Line Velocity Can Be Determined Firing Time Arrival Times Distances (Requires Survey Data)

77 Sample Rate & Errors 35 Monte Carlo Analysis Of Errors Sampled From A Triangular Distribution ib ti 30 Arrivals +/- 2 Sample Points 50 Realizations For Each Case 25 Layered Cases For Realistic Behavior 20 Error Increases Almost Linearly With Slower Sampling Rate 15 Effect On Depth Is Usually Greater Than Effect On Distance 10 Observe The Difference In The Distribution Of The 50 5 Realizations For the Two Cases Below Depth Errors 0 1/4 msec = 4 ft 1 msec = 18 ft One Stand dard Deviation (ft) 40 Pinnacle Depth Distance Sample Rate (msec) 1/4 msec Sampling 1 msec Sampling Distribution Of Events For 50 Realizations Receiver Locations Distribution Of Events For 50 Realizations Receiver Locations

78 Sample Rate & Errors The Previous Case Where The Array Is Straddling A Zone Is The Best Case Consider A Case Where The Array Is Above The Zone And The Event Is Near The Bottom Errors Can Be Much Greater & Can Cause Interpretation Problems Notice The Bend In The Locations, Particularly For 1 msec Sampling Depth Errors 1/4 msec = 10 ft 1 msec = 45 ft Note The Complex Distribution For 2 msec Sampling In The Inset One Stand dard Deviation (ft) Depth Distance Pinnacle 2-msec Results Sample Rate (msec) 1/4 msec Sampling 1 msec Sampling Distribution Of Events Receiver Locations Distribution Of Events Receiver Locations

79 Comparison Of Accuracy Pinnacle Depth: 8 ft Distance: 5 ft Dep pth Pinnacle: 12 ¼ msec 7000 Depth 7500 Actual Data Comp. B Depth: 57 ft Distance: 24 ft Dep pth msec East

80 Comparison Of Sensors Used In Microseismic Monitoring OYO OMNI 2400 & SLB GAC Most Systems Use OMNI Hz Geophones SLB Uses The GAC Sensor Using Published Response Curves For 0.01 Each Sensor The Response To Velocity Is Shown In The Lower Curve 1000 The OMNI 2400 Geophone Response Is Flat Above About 20 Hz (Out To ~1200 Hz) 100 Response To Acceleration Shown At Top The GAC Response Is Flat From ~5 200 Hz 10 Other Important Points: Microseismic Energy In The Events Usually Hz Range Have Most Best To Have A Flat Response Over The 1 Range Of Interest tion Response e (V/g) Accelera ) Velocity Response (V/m/s 10 1 GAC Dual OMNI2400 Single OMNI Frequency (Hz) GAC Dual OMNI2400 Single OMNI Frequency (Hz)

81 QC Report- Confidence Level

82 QC Report Event Magnitude vs Distance from Observation Well Series Of Faults Identified Easily From Magnitudes Abnormal Propagation Azimuth Vertically Depth (m) 3150 de Relative Magnitu Jonah Field, WY Courtesy Of BP Well 1 Well 2; Stage A Well 2; Stage B Well 3; Stage A Well 3; Stage B Faults Normal Events Distance (m) EAST 2 NW-SE Azimuths EAST 1 EAST m 3200 Faults EAST EAST 5 EAST 4 SPE Lateral Distance From Well (m) Courtesy Of BP

83 QC Report - Event Uncertainty Larger azimuthal uncertainty farther from observation well results in wider fan of events toward eastern wings of fractures Relatively narrow band of Relatively narrow band of events indicates absence of complex (network) growth

84 Pinnacle s Microseismic Mapping Advantage Experience More Than 3,800 Hydraulic Fractures Mapped Since 2001 More Than 90% Of All Microseismic Jobs Mapped Worldwide Dedicated People and Equipment Superior Equipment: Highest Array Density With Up To 32 Tools In One Array Highest Telemetry Rate At ¼ Ms With Fiber Optic Wireline Record & Analyze Much Higher Frequencies Than Other Tool Systems Btt Better Dt Data Quality Ad And Hih Highest Precision ii Event Location Due To: Number Of Tools & Sample Rate PerfTimingi Stacking

85 Surface Tilt Mapping

86 Principle of Tilt Fracture Mapping Direct Fracture Diagnostic Technique Hydraulic fracture i d induces a characteristic h t i ti deformation pattern Frac Orientation from Surface Tilts Induced tilt reflects the geometry and orientation of created hydraulic fracture Pick-up Pick up electrodes Treatment Well current electrode Offset Well

87 Surface Tiltmeter Site Installed 5-40 ft below the earth s surface in 4 -diameter PVC pipe Deeper boreholes to eliminate noise from surface Cultural noise Thermal induced earth surface motion Surface array with 16 or more tiltmeters placed in concentric circles around the point of injection (distance from well: 15%-75% of injection depth) Tiltmeter data stored in datalogger contained in tiltmeter Data collected periodically either manually or by radio 8 Outer Pipe 4 Inner Pipe Tiltmetert Cement Sand Solar Panel 5-40 ft

88 Surface Tiltmapping

89 Surface Tiltmeter Fracture Mapping Example Of Surface Tiltmeter t Response Multi-Mode Fracturing Vertical Fractures And/Or Opening Of Cleats Horizontal Fractures Surface Deformation From Individual id Components Add Together Superposition Vertical- Trough & Uplifts Combined- Trough On Top Of Uplift Horizontal Simple Uplift

90 Poor Diversion i in a Long Uncemented Lateral

91 Surface Deformation Image 906

92 Treatment t Well Tilt Mapping Deployed on single conductor e-line Magnetic decentralizers Slim 1-11/16 tool diameter Measure frac height in real- time Calibrate frac models

93 Treatment Well Tiltmeters Measure Fracture Height In Vicinity Of Wellbore Observe Changes In Height Correlate With Pressure Height -> Primary Result Complex Deformation Around Wellbore Depth (ft) Downhole tilt (Microradians)

94 SPE Microseismic Mapping Papers Last 2 Years PT Stacking Seismograms to Improve Microseismic Images SLB Real-Time Microseismic Monitoring of Hydraulic Fracture Treatment: A Tool To Improve Completion and Reservoir Management SLB Using Induced Microseismicity to Monitor Hydraulic Fracture Treatment: A Tool to Improve Completion Techniques and Reservoir Management PT Imaging Seismic Deformation Induced by Hydraulic Fracture Complexity PT Improving Hydraulic Fracturing Diagnostics By Joint Inversion of Downhole Microseismic and Tiltmeter Data PT Hydraulic Fracture Diagnostics Used To Optimize Development in the Jonah Field SLB Using Microseismic Monitoring and Advanced Stimulation Technology to Understand Fracture Geometry and Eliminate Screenout Problems in the Bossier Sand of East Texas PT Understanding Hydraulic Fracture Growth In Tight Oil Reservoirs By Integrating Microseismic Mapping and Fracture Modeling PT Integration of Microseismic Fracture Mapping Results with Numerical Fracture Network Production Modeling in the Barnett Shale PT Application of Microseismic Mapping and Modeling Analysis to Understand Hydraulic Fracture Growth Behavior PT Application of Microseismic Imaging Technology in Appalachian Basin Upper Devonian Stimulations XOM Logging Tool Enables Fracture Characterization for Enhanced Field Recovery PT Comparison of Single and Dual-Array Microseismic Mapping Techniques in the Barnett Shale SLB Automated Microseismic Event Detection and Location by Continuous Spatial Mapping PT Integration of Microseismic Fracture-Mapping Fracture & Production Analysis with Well-Interference Data to Optimize Fracture Treatments in the Overton Field, East Texas PT Effect of Well Placement on Production and Frac Design in a Mature Tight Gas Field SLB Hydraulic Fracture Monitoring as a Tool to Improve Reservoir Management PT Improved Microseismic Fracture Mapping Using Perforation Timing Measurements for Velocity Calibration PT Integrating Fracture-Mapping Technologies to Improve Stimulations in the Barnett Shale