1. WITSML ® Enables Synchronous Remote Modeling and Surveillance via the Internet William Standifird, Vice President Operations

2. Outline Creating a Functional Wellbore Challenges Proposed Solution Case Studies of Real-Time Applications

3. Creating a Functional Wellbore SAFE OPERATING ENVELOPE

4. The Cost of Wellbore Problems Stuck Pipe Kick Lost Circulation Sloughing Shale Flows Wellbore Instability 41% of total NPT US $8B+ Annually James K. Dodson Co. 1993-2002 Year NPT Analysis (Offshore, Jan 2004)

5. PLANNEDACTUAL FPG PPG FPG >2ppg <1ppg Example of Common Drilling Problem

6. Preferred Solution = Real-time Surveillance Acquire quality data Transport data to observers Convert data to information Communicate information to decision-makers

7. Creating Actionable Information from Data

8. Anatomy of an Operations Decision VALUE TIME

9. Anatomy of an Operations Decision

10. Case-1 Environment Deepwater Well offshore Trinidad Significant uncertainty in subsurface environment High potential for unscheduled events related to uncertainty Need for real-time geomechanics modeling Operator domain expert is not offshore deployable resource Unplanned requirement ~ low budget & short fuse

11. WITSML Server v1.2 Sensor Sensor Aggregator Application PorePressure Expert & Application Sensor WITS Geomechanics Expert & Application BP Office POS Trinidad Constellation-1 DeepWater Trinidad BP Office Houston Texas WITSML Client v1.2 WITSML Server v1.2 WITSML INTRANET WITSML LOW BANDWIDTH LINK Case-1 Schematic

12. Case-1 Installation Baker Hughes Inteq installed WITSML v1.2 server in Port of Spain <30 Minutes in BP Houston Offices –Installed Drillworks ConnectML on client PC –IP Address, UN, Pass, Configuration for server connection –Configure Drillworks data links to ConnectML –Expert begins modeling using real-time data –Expert activates WITSML server to make interpretation available to rig

13. Case-2 Environment Deepwater Gulf of Mexico Well Narrow PP FP envelope (high risk of influx or losses) High potential for pressure related unscheduled events Client requested expert synchronous surveillance from Houston offices Replace WITS with WITSML

14. LOW BANDWIDTH LINK WITSML Server v1.2 Sensor Sensor Aggregator Application Sensor Client Office Houston Texas Ocean Amirante DeepWater Gulf of Mexico WITSML Client v1.2 INTRANET WITSML Case-2 Schematic PorePressure Application and Expert

15. Case-2 Installation Baker Hughes Inteq installed WITSML v1.2 server <30 Minutes in Client Houston Offices –Installed Drillworks ConnectML on client PC –IP Address, UN, Pass, Configuration for server connection –Configure Drillworks data links to ConnectML –Expert begins modeling using real-time data

16. Case-3 Environment Client in case #2 switched LWD vendors

17. LOW BANDWIDTH LINK WITSML Server v1.2 Sensor Sensor Aggregator Application Sensor Client Office Houston Texas Ocean Amirante DeepWater Gulf of Mexico WITSML Client v1.2 INTRANET WITSML Case-3 Schematic PorePressure Application and Expert

18. Case-3 Installation Schlumberger installed WITSML v1.2 server <10 minutes to reconfigure system –IP Address, UN, Pass, Configuration for server connection –Configure Drillworks data links to ConnectML –Expert ready for modeling using real-time data before first tools run in hole

19. Case-4 Environment Shelf project in Gulf of Mexico Precise casing set requirements due to PP ramp Limited rig space for additional personnel Economics would not support onsite analyst Client requested synchronous remote surveillance

20. LOW BANDWIDTH LINK WITSML Server v1.2 Sensor Sensor Aggregator Application Sensor Schlumberger Office Pride Georgia Gulf of Mexico Shelf WITSML Client v1.2 INTRANET WITSML Case-4 Schematic PorePressure Application and Expert KSI Office Sugar Land Texas

21. Case-4 Installation Schlumberger installed WITSML v1.2 server –No apparent delay, unknown install time <30 minutes to configure WITSML client system –IP Address, UN, Pass, Configuration for server connection –Configure Drillworks data links to ConnectML –Expert ready for modeling

22. Lessons Learned WITSML updates slower than WITS –Internet time versus direct cable time Concurrent use of proprietary system (Riglink, Interact) aids in monitoring data dead zones System is still imperfect, and requires companies to collaborate on problems WITSML must be planned before a project. –Connections attempted as after thoughts have failed.

23. Key Accomplishments Technology –Short connect and configure time of <30 minutes –No special hardware or IT involvement required –Low cost –Secure synchronous and asynchronous data exchange –Omni-directional, multi-user data movement –Portable

24. Key Accomplishments Operations –Maximum utilization of bandwidth, data and expertise –Cross discipline collaboration –Delivered the right information to the right people, at the right time –Better decisions resulting from right time, expert analysis

25. Progress? Multiple connections with two major service providers Successful test with Halliburton 11/05 Operators becoming more aggressive in their insistence on WITSML

26. Using WITSML to Reduce Trouble Time Transport Communicate Convert Acquire