“Big Data in Oil & Gas Field Surveillance” James Freeman, P. Eng “Big Data in Oil & Gas Field Surveillance” James Freeman, P. Eng. Chief Marketing Officer Zedi Inc. “Analytics, Big Data and the Cloud” Conference, April 24, 2012

Who is Zedi? Established in 1987 Global Headquarters in Calgary Edmonton Research Park 550 Employees and Contractors in 17 offices in Canada and the USA 900 upstream and midstream Oil & Gas customers in Canada, the USA, and in 23 other countries Top-line revenue in 2011 of $92 million ZED on the TSX-V A recognized Great Place to Work for the past four years by the Great Places to Work® Institute

We help customers Realize Production Potential What does Zedi do? These services help our customers: Avoid Downtime Reduce Operating Costs Address HS&E challenges Improve Compliance with Industry Directives Exploration Reclamation Operations Zedi provides services enabled by people and technology to upstream and midstream customers in the Oil & Gas Industry We help customers Realize Production Potential

Upstream and midstream gathering system How does Zedi do this? Display Transport Telecom Network Zedi Network Validate Store Add Value Source: Upstream and midstream gathering system Zedi runs its business as a cloud-based service capturing accurate, timely data from the well-site

How does Zedi get data? 1. Field Management Solutions Produce, Monitor, Alarm, Control Near-real-time (minute, hourly) SilverJackTM MTRAC® Smart Alek® Zedi ConnectTM SCADA The richest source of timely, accurate, actionable data comes from real-time monitoring at the well-site

How does Zedi get data? 2. Central Processing Historical Data Daily resolution, gathered daily, weekly or monthly 3. Data Exchange Varying frequencies and resolutions Zedi Data ExchangeTM Zedi EFM Walk-up Zedi True ChartTM Zedi also gathers historical data by means of manual collection or via third-party systems

How do we view the data? Zedi DashboardsTM Zedi VitalTM Zedi AccessTM Data Management Solutions Analyze, Report Zedi AccessTM Zedi offers SaaS tools to view and analyze the various types of data we collect

What type of data do we collect? 1. Customer Data Server-based: Monitoring customer visits and browser type via Google Analytics Zedi is using industry tools to monitor customer behaviour today, but this will move towards segmentation and persona-based modeling

What type of data do we collect? 2. Operational Data Field-based: Operational Data from a SilverJack ControllerTM Server-based: Operational Data and Apdex score from New Relic monitoring Software As a cloud-based server provider, we need to monitor the health of the assets supporting our customer’s production process

What type of data do we collect? Load on Rod String Displacement of Rod String Pump cards showing load on the rod string as a function of displacement during the stroke cycle

What type of data do we collect? 3. Production Data Volume or mass flow rates of fluids can be determined using the Bernoulli principle/equations

Examples of Production Data Static Pressure Differential Pressure Temperature Time A typical, healthy gas well.

Examples of Production Data Temperature Static Pressure Differential Pressure Time A gas well that is showing random but somewhat intermittent behaviour. This could be attributable to water slugging in the well bore

Examples of Production Data Static Pressure Differential Pressure Temperature Time A struggling gas well showing intermittent behaviour, potentially because of impact of other wells sharing pipeline or the reservoir

Examples of production data Static Pressure Differential Pressure Temperature Time A gas well with plunger lift cycles building up and then releasing pressure

What do we do with the data? Reporting Compliance and Auditing (Today) Cash-flow and payments to ERCB and partners Static Alarm Thresholds (Today) Customer configures alarms for individual sensors/data types Set High and Low Process Control Limits to create server or field-based alarms Open- and Closed-Loop Control (Today) Enable remote control of the well through the SaaS offering based on observed data to effect changes in well behaviour (Human feedback loop) Enable autonomous control of the well locally at the well through intelligent instrumentation (Algorithmic feedback loop) Report, Alarm, Control

Future Analytics development Adaptive Alarm Thresholds Algorithms monitor underlying process and adjust control limits if appropriate Predictive Process Behaviour Look for patterns in historical production data to predict future well behaviour Customer Analytics Profiling into User Personas and study software grazing patterns to optimize work-flow design or recommend additional tools that might add value Condition-based maintenance Sensors report various operations pieces of data that are then analyzed to predict when servicing or preventative maintenance might be required

What comes next? Continue to develop Analytics Program through a combination of internal investments and partnerships Signed a five-year agreement with TR Labs in February 2012 for an ongoing Data Analytics program Build Partnerships with talented companies interested in doing analytics work in Oil & Gas Zedi is committed to transforming data to help upstream and midstream customers realize their production potential

Questions? James Freeman, P.Eng. Chief Marketing Officer James.freeman@zedi.ca www.zedi.ca +1 780 701-3007 LinkedIn: http://www.linkedin.com/in/jamesfreeman1