© Copyright 2006 POSC Overview and Introduction March 22-23, 2006 Regional SIG Meetings Houston, Texas

© Copyright 2006 POSC Regional SIG Meeting Roles All –Maximize value delivered from POSC to industry and from industry to POSC POSC and SIG Members –Maximize value delivered from POSC to members and from members to POSC Translation: –Learn what’s cooking and get involved As a patron, a server, a chef, a supplier, a manager, … –Contribute items you need/want for “tomorrow’s” menu. As a champion, subject expert, connoisseur, cook, or guest

© Copyright 2006 POSC Overall Standards Process StageDescription 0Opportunity Discovery, Evaluation (ongoing), 1Planning, Review, 2Requirements, Review, 3First Specification Iteration, Review, 4Iteration Cycles of Revision and Review, 5Final Reviews,, Release 6Promotion, Support [ May go to 0 for upgrade] 7Periodic Effectiveness (Value Delivery) Review [ May go to 0 for upgrade or retirement]

© Copyright 2006 POSC Success Factors Collaboration – steer [just] clear of competitiveness Value – neither theory nor art are sufficient reasons, must enhance real business advantages Change Agency – standardization requires change –Innovation –Resources –Marketing –Planning –Execution

© Copyright 2006 POSC Modes of Collaboration Late –Clean-up diversity  ride replacement cycles Early –Make a good start  ride adoption cycles Top-Down –Sold from the top  visible, funded efforts Bottom-Up –Incremental knitting  almost invisible, evolutionary at best

© Copyright 2006 POSC May 9-11 Events Public Seminar and Vendor Exhibition (May 11, Thursday) –Current reports from actual experiences and plans from oil companies, service companies, and software companies. SIG Working Meetings – Technical Teams We address implementation feedback and continuing detailed specification issues – Use Case and Requirements Team We address possible future areas of focus: drilling reports, completions, environmental, well services, well stimulation, service rig reporting. – Implementation Support Team People supporting WITSML-enabled environments share lessons learned and current issues and challenges.

© Copyright 2006 POSC May 11: WITSML Public Seminar Meeting Host: Schlumberger Exhibitors (from Nov. 2005) –Baker Hughes, Halliburton/Landmark, INT, Knowledge Systems, Paradigm, POSC, SDC Geologix, Sense Intellifield, Smith Bits, Wellstorm Development

© Copyright 2006 POSC May 12: Integrated Production Operations SIG Meeting Follow-up to March 23 SIG Meeting –More on PRODML Optimization progress –Review of feedback from reviews of Fluid Properties data transfer specifications –Update from the Norway IIP project –…

© Copyright 2006 POSC Meeting Plan Jan 11. India. Preliminary Geophysics and WITSML Deployment meetings Mar Houston. SIG Meetings Apr.- June Geophysical SIG APAC (Mumbai) May Houston. WITSML and IntOps Events [SLB host] June 13-14, Norway and UK. Regional SIG Meetings Sep Houston. SIG Meetings Oct Europe. WITSML and IntOps Events [BP host] Nov. 8. Houston. Annual Member Meeting Nov. 28-Dec. 1. Europe. Regional SIGs (2 locations)

© Copyright 2006 POSC Standards Activity in 2005 and 2006

© Copyright 2006 POSC Standards Activity in 2005 and 2006

© Copyright 2006 POSC Drilling Portfolio StandardTypeHistoryStableActiveNextComments WITSML Drilling & Family Data Xch Start 2001, Xfer 2003 V1.2V1.3.1TBDStage 6, ’06 13% - WITSML Completion Data Xch B 2004N/A Q2Stage 4  5 V1.3.1 supplement Norway Daily Drilling Project Data Xch Start pending N/A TBDOUTSIDE, Stage 1, ’06 2% Drilling (WITSML) SIG Facilitation, ’06 10%

© Copyright 2006 POSC WITSML Drilling: Vision Now –Mainly geosteering support –Mainly straight-through source to operator –Usage Statoil and Hydro 100%, 2+ Majors High-end Wells, 1+ Major Significant use by early ‘07 +2 or 3 Years –Broader range of business processes –Sufficient maturity for aggregation/QC by service companies –Greater usage by operators Quantification –Considering profiling WITSML Drilling benefits in terms of project costs and savings for typical drilling projects

© Copyright 2006 POSC Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage Can we use this image to portray the growth in WITSML coverage?

© Copyright 2006 POSC General Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage Enhancements for Production beginning with Volume and Activity Reporting, continuing with PRODML towards Optimization.  Network Model Volume Report Activity Report  Log,WellLog  WellPath Well Wellbore Trajectory  CRS, Projections  Units of Measure

© Copyright 2006 POSC General Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage At a future time, we could consider the viability of data exchange Standards for facility data, reservoir data, economics data, etc. filling out the E&P space.

© Copyright 2006 POSC epiXML Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover What’s in a Name? epiXML Family Regardless of the naming pattern, this is one integrated Standards Family with a great deal of reuse and consistency. This anticipates a successful integration of PRODML results. WITSML PRODML ?ML

© Copyright 2006 POSC Production Portfolio StandardTypeHistoryStableActiveNextComments WITSML Production, including Reporting Data Xch Prior 1999, Start 2005 N/A Q2Reporting, Stage 4  5, Deployment In Norway, ’06 14% WITSML Production Optimization Data Xch Start 2005, Xfr Q3 N/A OUTSIDE: “PRODML”, Stage 3, ’06 7% Pilots Apr – Aug. WITSML Production DTS Data Xch Start 2004N/A1.3.1TBDStage 6, Deployments by BP and Shell WITSML Production Lab (Fluid Analysis) Data Xch Xfr 2004, Start 2005 N/A Q2Stage 3, ’06 2% Norway IIP Project MixedStart 2004N/A OUTSIDE, ’06 2% Stage 3; Statoil, Hydro. Production (Integrated Operations) SIG Facilitation, ’06 8%

© Copyright 2006 POSC Production Portfolio: Vision Now –Daily Reporting to Partners: Ready for Public Review, Deployment starting in Norway –PRODML Work Group due to complete end of August Three basic optimization use cases: specifications and pilot testing –Distributed Temperature Survey Standard published Field deployments by BP and Shell (Lios, SLB, Weatherford) +2 or 3 Years –Co-existence with / adaptation for OPC Foundation UA –Integration of Optimization and Reporting –Beginning of Automation of Administration, Scheduling, etc. –Integration with Equipment and Facility reference standards Quantitative / Qualitative Value –Baseline in ’07.

© Copyright 2006 POSC Geology Portfolio StandardTypeHistoryStableActiveNextComments WITSML Geology wellLog Data Xch Start 2004, Rel 2005 N/A1.3.1TBDStage 6, ’06 2.5%, DIGGS use WITSML Geology Depth Registration Data Xch Start 2004N/A Q2Stage 5, ’06 2% supplement to V1.3.1 PWLS RefStart Q1Stage 6, ’06 5.5% Shell, XOM, Petris RP66 (DLIS) Data Xch Xfr & 2 N/AStage 6, ’06 0.5% WellLogML Data Xch Start draftN/AStage 6 & 7, transition to WITSML LogGraphicsML Data Xch Start 20001N/A Stage 6 & 7 LAS (CWLS) to WITSML Utility O.S. Utility Start 2005N/A Q1Stage 3, Ready for First Review Geology (PWLS) SIG Facilitation, ’06 4.5%

© Copyright 2006 POSC Data Management Portfolio StandardTypeHistoryStableActiveNextComments WITSML Well Path ProfileStart 2004N/A1.3.1TBDStage 4, ’06 1.0%, Review by “Tech Team” WellHeaderML Data Xch Start N/A Stage 6, ’06 1.0% UK Usage, PPDM Profile WellChemicalML Data Xch Start N/A Stage 6 UK Usage WellPathML Data Xch Start N/A Stage 6 & 7, WITSML, PPDM Profile Well Identity Service Ref Service Start 2004N/A TBDStage 3, ’06 1.8% RFP in Q2 Epicentre Data Model Start N/ATBDStage 6, ’06 0.5% Ref. SLB and LGC Geoshare Data Model Start N/AStage 6

© Copyright 2006 POSC Data Management Portfolio StandardTypeHistoryStableActiveNextComments Reference Entities RefStart 1991Varied TBDStage 6, ’06 2.7% CRS/Geodetics RefStart 1993Varied TBDFor WITSML, Phase 2-Stage 4, ’06 0.8% Lithology RefStart 2005N/A1.3.1Q1Phase 2-Stage 3, ’06 0.8% E&P Catalogue RefStart TBDStage 6, ’06 1.8% E&P Bus Pro Ref Model RefStart TBDStage 6, ’06 0.1% Data Management (DSS) SIG Facilitation, ’06 1.8% Liaison 0.2%, Outside 1.0%, Help 0.5%

© Copyright 2006 POSC Regulatory Portfolio StandardTypeHistoryStableActiveNextComments WITSML Regulatory Permitting Data Xch Start 2004N/A Q3California, Stage 5, 4-6 states, Stage 2, ’06 3%

© Copyright 2006 POSC Geophysical Portfolio StandardTypeHistoryStableActiveNextComments GeophysicalML Data Xch Start 2000N/A As reference only WITSML Geophysical Data Xch N/A APAC Stage 1 & 2, ’06 2% Geophysical SIG Facilitation, ’06 2%

© Copyright 2006 POSC Alan Doniger, POSC Chief Technology Officer Phone: Fax: