Spears & Associates, Inc.

Spears & Associates, Inc.
Wireline Market Spears & Associates, Inc. 8908 South Yale, Suite 440 Tulsa, Oklahoma USA 1(918) Principal Authors: Richard Spears and David Otte Q4 2015

Table of Contents Introduction: Market Description 3 Global Wireline 6
North American Wireline 18 US Wireline 20 US Regional Wireline 26 Wireline Supply Chain 66 Market Drivers 91 Companies 99 Authors & Legal 118

Introduction: Market Description
Wireline Open Hole (OH) E-line Wireline service performed on e-line to acquire formation evaluation data prior to the borehole being protected with steel pipe and cement. Commonly referred to as Open Hole logging. Cased Hole Cased Hole (CH) E-line Wireline service performed on e-line after the borehole is protected by casing and cement. Can include formation, pipe and cement evaluation as well as perforating and other completion related service. Slickline Wireline service performed on slickline. Generally includes mechanical completion or remedial services. Evaluation services can be performed utilizing memory tools to acquire data. OH wireline is almost exclusively new well work CH wireline is both new and old well work “E-line” refers to “electric line” - wireline that has one or more electrical conductors to pass power and data to/from downhole tools Slickline is single strand steel (nominally) wireline, no conductors

Introduction: Market Description
The Global Wireline Market for 2015 is $10.8 billion. This is ~ 1.5X the market size in 2005 of $6.9 billion and represents a CAGR for the period of 4.5%. The four major logging companies, Schlumberger, Halliburton, Baker Hughes and Weatherford, hold a combined $8.6 billion, or ~80% of the global wireline market. This is up slightly over the 77% of the market these companies accounted for in It is a normal feature of a market retreat for the majors to hold or grow market share better than their smaller competitors. Historically, the global wireline market revenue was split 50/50 between open hole logging (formation evaluation) vs. cased hole logging (completion services). Today, the global split is roughly 33% open hole and 66% cased hole. For the US land market the revenue split is much closer to 20% open hole and 80% cased hole and is a result of the increasing intensity of cased hole wireline service required during a multi-stage frac completion commonly performed in the horizontal unconventional well and the reluctance to acquire open hole logs in a horizontal well. The US land wireline market is $2.8 billion in 2015 which is nearly 5x the offshore market of $.6 billion.

Introduction: Oilfield Lifecycle Spending
Phase Activity Wireline Service Exploration seismic, mapping Well Construction site prep, drilling, logging, set casing, cementing OH formation evaluation, CH cement evaluation Completion wireline, frac, rental & fishing CH plug & perforate, Slickline mechanical Production well head install, flow fluids/gas, pumping, testing, monitoring, remedial CH production logging, Slickline mechanical These charts show the amount of money spent annually in each of the four segments. The period is Well Construction Exploration Completion Production $~185 billion (2015) is spent annually to explore, construct, complete & produce oil & gas wells around the world. This does not include the drilling contractor. Open hole wireline services are found primarily within the well construction segment. Cased hole wireline services are found primarily within the well completion segment but are also found in the production phase as many wells require remedial cased hole work through the life of the well Source: Spears & Associates’ research

Global Wireline

Global Wireline Market
Wireline is a small, 3.2%, but vital piece of the overall oilfield services market. Wireline consistently grows and shrinks along with the broader market. This “inelasticity” indicates wireline remains an essential and important tool for the industry.

Spears & Associates: Hydraulic Fracturing Market Global Wireline Market Throughout the years, North America remains the largest market region but has dropped to 41% from 2014’s 50%

Global Wireline Logging
Global Wireline Market By Region By Type $ in Billions 2015 Open Hole Cased Hole Total NoAm $0.8 $3.1 $3.9 LaAm $0.9 $0.7 $1.6 Eur/Afr/CIS $1.4 $1.1 $2.5 ME/Asia $1.5 $1.3 $2.8 TOTAL $4.5 $6.3 $10.8

estimated CAGR: 8% Each of these companies have segment revenues in excess of $100 million KEY FACTS The CAGR of this sector has been 8%, due mainly to growth in cased hole logging services on land in North America bringing the Global Wireline Market to ~ $15 billion in Like most oilfield service market, wireline suffered a precipitous decline in 2015 of 29% to ~$11 billion. During the period we are forecasting an 8% CAGR – continuing at the same pace as the prior decade. Wireline logging, as a well intervention technique, is growing in popularity both on and offshore, where subsea well intervention is now commonly performed with a wireline and no drill ship. Horizontal wells consume 2.5x the products of a vertical well, positively impacting wireline in the US. The major service companies represent ~80% of the wireline market, just like the completions market. Source: Spears & Associates’ Oilfield Market Report, 2015

Source: Spears & Associates’ Oilfield Market Report, 2015

One measure of a market’s growth is the year-to-year change of the intensity with which the product/service is used. The measure we use on this page is market size divided by number of rigs running. The chart below divides the wireline logging global market by the number of actively drilling rigs worldwide. In 2005 about $2.5 million wireline services per active rig were sold each year. In 2015 the number has grown to $4.5 million and continues to rise. The intensity of growth of this market is still strong.

Global Wireline Market with Wells Drilled
Wireline Logging Roughly 50% of wireline dollars are earned in NAM so a fair correlation with NAM activity is expected Global Wireline Market with Wells Drilled

Annual Market Change The total oilfield equipment & service market grows & falls sharply, surging >30% some years, growing 5% some years… The period was characterized by rapid growth of nearly 20% each year followed by sudden collapse in Lean manufacturing of wells since 2012 has slowed the growth rate to ~ 8%. Followed by the market collapse in 2015.

Global Well Completion Market
Wireline is a sub-segment within the well completion market. The well completion market has been one of the highest growth segments of the global oilfield due largely to increasing demand for hydraulic fracturing, cased hole wireline services and expanding coiled tubing roles.

North American Wireline

2015 - NoAm Wireline Market By Type
Wireline Logging NoAm Wireline Market By Type $ in Billions Open Hole Cased Hole Total U.S. Offshore $0.3 $0.6 U.S. Land $0.4 $2.4 $2.8 Canada $0.15 $.55 TOTAL $.75 $3.1 $3.9

US Wireline Market Overview

Wireline Cost Index Costs for wireline work on land in the US have the same cycle as total D&C costs, but are less exaggerated. As the cost index illustrates, the collapse in wireline pricing in 2008 and 2009 was less extreme than total well costs. However, the rebound in prices through 2011 was about the same as the overall market. The collapse in oil prices late in 2014 placed a materially downward bias on wireline pricing through 2015. Spears undertakes a quarterly survey of independent well engineering and wellsite supervision firms to collect “spot market” drilling and completion services price information for a specific set of commonly drilled wells in the US. The information in the “well profile” survey is collected in the form of detailed drilling and completion services cost estimates based on current unit prices and usage rates in each location at the end of the quarter.

US Regional Wireline Markets

US Regional CH Wireline Markets
The Permian remains the dominant CH market in Horizontal well drilling is on the rise in the Permian driving increased service intensity for cased hole wireline services.

US Regional OH Wireline Markets

US Regional Wireline Markets

Bottom Hole Temperatures
The complexity of wireline technology is highly correlated to bottom hole temperature. High temperatures require downhole tools and wireline designed for the task. Risk of failure rises as the design requirements increase. Wireline jobs are carefully planned in the hotter environments to limit time spent in the wellbore. Temperature in degrees F at true vertical depth Region 5,000’ 10,000 15,000’ South Texas 170 275 400 Permian 135 190 250 Haynesville 160 350 MidContinent 150 210 Niobrara 175 260 Based on an evaluation of several thousand wireline and MWD records, Spears has confirmed that the two hottest plays in the US are South Texas and the Haynesville.

Eagle Ford / South Texas
The Eagle Ford is a play that spans at least 25 counties in Texas Rail Road Commission districts 1, 2, 3, 4 and parts of 5. By comparison, the largest oil & gas play on land in the last 75 years was the East Texas gas field which covered one entire county and parts of 4 others. Maps provided by the state of Texas (seen below) show the locations of these RRC districts and the extent of the specific Eagle Ford play. This report focuses on the Eagle Ford, but the region includes a variety of other well types. RRC district 4, for example, has some of the deepest and hottest vertical gas well drilling in the country. RRC district 1 has the original Austin Chalk horizontal play that proved to the industry that horizontal drilling was a valuable tool. Source: Spears & Associates, Inc. / Oilfield Logix Series

South Texas: Description
The dominance of horizontal wells coupled with multi-stage “plug & perf” completions in the Eagle Ford create significant demand for cased hole wireline services. New well construction fell sharply in 2015 due to global oil prices falling from $95 to $55, dipping to $45 early in This decline in oil prices will cut drilling in South Texas by 40%. Horizontal drilling in pursuit of the Eagle Ford’s oil is the predominant technique in South Texas, but there is still a small vertical well drilling industry. Vertical drilling has an enormous depth range with most of these pursuing natural gas. The greatest percentage decline in drilling has been felt in the vertical well category. Source: Spears & Associates, Inc. / Oilfield Logix Series

Source: Spears & Associates, Inc. / Oilfield Logix Series
South Texas Region 2015 DRILLING/COMPLETION/PRODUCTION SPENDING ~$11 billion will be spent in South Texas and its Eagle Ford play during the course of % of the $11 billion will be spent constructing wells, 44% completing wells, and 19% producing wells. Completions companies receive not quite one out of every two dollars spent on services in the basin. The top three spend categories are hydraulic fracturing (19% of the basin’s total spend), contract drilling (11%) and water management (10%). South Texas represents 12% of the total US land market. Source: Spears & Associates, Inc. / Oilfield Logix Series

Spears & Associates, Inc. / Oilfield Logix Series
South Texas Cased hole logging is the primary wireline work found in South Texas. Certainly in the Eagle Ford. But for the occasional open hole log taken in a moderately exploratory hole, most wireline work is limited to cement bond longs, plug & perf work and setting packers. As shown in the neighboring chart, the region’s wireline market is ~$0.33 billion in This is down from $0.8 billion in 2014 as frac activity fell and prices dropped. We don’t expect a significant recovery in 2016. South Texas is served by a number of cased hole wireline logging companies, including: Allied Horizontal Wireline Archer ArkLaTex Baker Hughes C&J/Cased Hole Solutions Halliburton Schlumberger Weatherford Spears & Associates, Inc. / Oilfield Logix Series

South Texas: Frac Stages / Well
Shallow South Texas wells have <10 stages in each frac (typically just 1-2). Horizontal wells range from stages, with the typical horizontal well frac pumping stages, but there is a strong trend to more stages each year. Frac Stages per well are a direct driver of cased hole wireline work as plug-n-perf is the predominant completion technique utilized in the Eagle Ford. Each frac stage will have an accompanying wireline run to set a plug and perforate to enable the next frac stage.

South Texas: Lateral Length
Spears & Associates: Hydraulic Fracturing Market South Texas: Lateral Length Year Average Completed Length of HW 2012 5,015’ 2013 5,407’ 2014 5,829’ 2015 6,000’ South Texas horizontal wells have laterals that range from 3,000’ to 10,000’. The most common lateral length is ~5,500’. Each year operators are drilling laterals 5-10% longer than the prior year. Lateral length of the well bore is a good indicator of how many frac/wireline stages will be utilized per well. Longer lateral lengths also increase the complexity and inherent risks associated with a wireline completion.

Spears & Associates, Inc. / Field Logix Series
Permian Basin The Permian Basin consists of Texas Rail Road Commission Districts 7C, 8 and 8A, along with southeast New Mexico. The Permian Basin has two distinct models of development. The first is in the Midland sub-basin, where vertical drilling still reigns. But while operators have hydraulically fractured vertical wells here since the 1950s, technological advancements are allowing them to drill deeper and tap more formations. Today, companies are using hydraulic fracturing to exploit a series of formations spanning a 4,500-foot vertical zone. Producing reservoirs include the Yates, San Andres, Clear Fork, Spraberry, Wolfcamp, Yeso, Bone Spring, Avalon, Canyon, Morrow, Devonian, and Ellenberger, with depths from a few hundred feet to five miles below the surface. The second development model is in the Delaware sub-basin that stretches from southeastern New Mexico into far West Texas. Production in this area relies on a combination of hydraulic fracturing and horizontal drilling. Delaware drilling is largely focused on the Avalon Shale and the tri-layered Bone Spring sands — although the Wolfcamp formation is also present. The Wolfcamp formation is deeper in the Delaware basin and tends to be gassier. Given the longer reach of horizontal wells as well as the higher number of fracturing stages used to complete them, well costs are a much higher $5 million to $7 million. The Permian remains a fast growing drilling province this year as operators switch from drilling individual vertical wells to horizontal wells off of multiple well pads. This conversion has had a fundamental impact on demand for equipment and services. As a result, investment is pouring into the region to satisfy this remarkable demand. Spears & Associates, Inc. / Field Logix Series

Permian Basin: Description
Spears & Associates: Hydraulic Fracturing Market Permian Basin: Description Since the Permian Basin is characterized by layers of oil-bearing rock stacked one on top of the other for thousands of feet, operators have to make the following choice: Do I drill vertically and tap all the stacked reservoirs, or do I select a single reservoir and tap it with a horizontal well? In the recent past, most operators chose to drill vertically, but half the wells drilled today in the basin are horizontal. Spears has chosen a conservative longer term outlook for Permian Basin oil-directed drilling. If oil prices do not rise significantly, and if the cost of drilling increases, some incentive to drill will be removed. We believe that lingering low oil prices will constrain E&P spending through 2016. The Permian Basin has the largest ratio of vertical to horizontal wells of any US region creating opportunities for open hole logging. Many of these wells require salt based mud systems which require Laterolog type resistivity tools. Spears & Associates, Inc. / Field Logix Series

Permian Basin 2015 DRILLING/COMPLETION/PRODUCTION SPENDING ~$19 billion will be spent in the Permian during the course of % of the $19 billion will be spent constructing wells, 43% completing wells, and 24% producing wells. The top three spend categories are hydraulic fracturing (18% of the basin’s total spend), contract drilling (11%) and water management (11%). Spears & Associates, Inc. / Oilfield Logix Series

Permian: Wireline Market Shares
Formation evaluation in Permian is done on the wireline mostly, with a bit of LWD off the drill string. Open hole logging is done in the region, but it is almost exclusively in vertical wells. As the chart to the right indicates, the three majors: Baker Hughes, Halliburton, and Schlumberger have the primary market shares, along with a larger independent, Capitan. Weatherford rounds out the top 75%, followed by more larger independents. Allied Horizontal Wireline, which is commercializing GE’s digital open hole logging technology, has 5% of the market, a 3% increase from last year. A significant portion of wireline work is done in the cased hole. This is reflected in the market shares of the independents, most of whom work exclusively in cased hole environments. Spears & Associates, Inc. / Oilfield Logix Series

Permian Basin Cased hole wireline dominates the wireline work found in the Permian. Most new well wireline work is limited to cement bond longs, plug & perf work and setting packers. With the numerous old wells found in the Permian, remedial wireline work is also common. As shown in the neighboring chart, the region’s wireline market is ~$.7 billion in This is up from just $0.4 billion in The large increases in 2013 and 2014 are due to increased number of horizontal completions The Permian is served by numerous cased hole wireline logging companies. Spears & Associates, Inc. / Oilfield Logix Series

Permian Basin: Total Measured Deptrh
Vertical well depths in the Permian range from shallow (1,500’) to deep (>17,000’). The chart below shows the depth distribution of several hundred wells drilled in the last few years. Included on the same graph is a distribution of horizontal well depths. The measured depth of horizontal wells has increased recently from ~15,000’ to 22,000’. Although more horizontal wells are being drilled, vertical wells are still a main tool used in the basin. Spears & Associates, Inc. / Oilfield Logix Series

Permian: Lateral Length
Lateral lengths of horizontal wells have been getting longer each year. In 2012 the average length was ~3,900’ and in 2013 the length reached ~4,200’, with a big leap to 5,100’ in 2014. The chart below plots the distribution of horizontal lateral lengths of a couple hundred horizontal wells drilled in the last two years. The longest lateral in each year is ~8,000’, but the most frequently drilled lateral 4,400’ Year Average Lateral Length of HW 2012 3,900’ 2013 4,200’ 2014 5,100’ Spears & Associates, Inc. / Oilfield Logix Series

Permian Basin: Frac Stages / Well
Shallow Permian Basin wells have 1-2 stages in each frac (typically just 1). Horizontal wells range from 3-13 stages, with the typical horizontal well frac pumping 8-10 stages, but there is a strong trend emerging for stages per well. Frac Stages per well are a direct driver of cased hole wireline work as plug-n-perf is the predominant completion technique utilized in the Eagle Ford. Each frac stage will have an accompanying wireline run to set a plug and perforate to enable the next frac stage. Spears & Associates, Inc. / Oilfield Logix Series

East Texas/Haynesville: Description
The East Texas/North Louisiana region includes a wide range of drilling projects, including the Haynesville, which is a deep, hot, high pressure horizontal shale development, and the shallower, old Travis Peak/Cotton Valley reservoirs of East Texas. We also find several shallow reservoirs that have been developed for decades. In Texas, this region includes Rail Road Districts 5 and 6, with a bit of bleed-over into District 3. In Louisiana, the region is primarily found within a 50 mile radius of Shreveport.

East Texas/Haynesville
Spears & Associates: Hydraulic Fracturing Market East Texas/Haynesville New well construction in this region is higher than it has been in previous years, hitting almost 3,500 new wells in The market should start to see a significant drop in the coming years as drilling in the US slows down. Horizontal drilling in pursuit of the region’s gas is slowly becoming the more dominant drilling method. ~2,000 horizontal wells were drilled in 2014 and although overall activity will fall off, the majority of wells will still be horizontal/directional.

E. Texas: Cased Hole Wireline
Cased hole logging is the primary wireline work found in the region. But for the occasional open hole log taken in a vertical hole, most wireline work is limited to cement bond longs, plug & perf work and setting packers. As shown in the neighboring chart, the region’s wireline market was ~$0.4 billion in This is expected to drop in the next few years. J-W Wireline, now owned by FTI, the frac service company, has the leading cased hole market share. Spears & Associates, Inc. / Oilfield Logix Series

E. Texas: Formation Evaluation
Formation evaluation in East Texas/North Louisiana is done off of the drill string, using an openhole wireline log and using mud logging/surface data logging. Schlumberger is the leading formation evaluation service company, followed by Baker Hughes and Halliburton. Several other service companies have been identified. Updated w/ LA Spears & Associates, Inc. / Oilfield Logix Series

East Texas/Haynesville: Frac Stages / Well
Year of Completion Average Number of Frac Stages 2012 9 2013 11 2014 15 Frac stages is one of the metrics regularly quoted by analysts working in this industry. Except for those companies providing plug & perf technologies, this is not a very meaningful statistic. In the Haynesville, as many as 30 frac stages have been pumped in a single well. As the table above shows, number of stages pumped have been slowly increasing since 2012. Spears & Associates, Inc. / Oilfield Logix Series

Haynesville, E. Texas: Lateral Length
Lateral Length of horizontal wells has been getting longer each year. In 2012 the average length was ~3,900’ and in 2013 the length was ~4,200’. Using the data, well lengths are increasing 5% per year…or ~200’. The chart below plots the distribution of lateral lengths of more than 100 horizontal wells drilled in the last three years. The most frequently drilled lateral is around 4,500’ – 5,000’ In 2012 and 2013, operators drilled a large number of laterals shorter than 4,000’. More and more wells are having laterals of 4,000’ and greater. Year Average Lateral Length of HW 2012 3,900’ 2013 4,200’ 2014 4,300’ 2015 4,500’ Updated with Louisiana Spears & Associates, Inc. / Oilfield Logix Series

MidContinent: Description
The Mid Continent spans a region including Western Oklahoma, the Texas Panhandle, and Kansas. And while gas well drilling is depressed in North Texas, we are including that play as well. The area is the site of much production from both deep and shallow conventional reservoirs as well as some emerging unconventional plays: Granite Wash: Tight oil formation located in western Oklahoma and the Texas panhandle. It produces oil, gas, and liquids-rich gas. Key operators in the area include Chesapeake, Apache, Devon, and Cimarex. Mississippi Lime: Tight oil formation centered along the Oklahoma-Kansas border. Barnett Shale: Famous North Texas region that kicked off the unconventional natural gas horizontal development craze. Fayetteville Shale: The successor to the Barnett Shale boom, located across the center portion of Arkansas. Other basins include the Arkoma and Anadarko Basins of Oklahoma, plus several others. MidContinent

MidContinent: Description
About 18% of the new wells constructed in the US this year will be in the MidContinent region. With drilling in the natural gas shales depressed due to low natural gas prices and will oil-directed drilling down significantly, this region’s drilling has fallen to about 4,500 new wells per year until rising commodity prices bring oil and gas drilling back to life. Vertical drilling should remain stable at 3,000 new wells per year while horizontal drilling is struggling at less than half its 2014 level. Updated – Graph* Spears & Associates, Inc. / Oilfield Logix Series

MidContinent Cased hole wireline dominates the wireline work found in the Midcontinent. Most new well wireline work is limited to cement bond longs, plug & perf work and setting packers. As shown in the neighboring chart, the region’s wireline market is ~$.46 billion in This is down from ~$0.7 billion in 2011. A few notable companies operating in the area include: Allied Horizontal Wireline Archer C&J/Cased Hole Solutions Pioneer Halliburton Schlumberger Weatherford Spears & Associates, Inc. / Oilfield Logix Series

MidContinent: Frac Stages / Well
Shallow vertical wells overwhelm this analysis…showing 1 stage per well in shallow wells. And horizontal wells show no clear tendency at all, from 3 stages to 24 stages. Spears & Associates, Inc. / Oilfield Logix Series

MidContinent: Lateral Length
Completed length of horizontal wells has been getting longer each year. In 2013 the average length was ~4,200’ and in 2015 the length reached ~5,700’. New wells drilled have laterals growing by several hundred feet per year. In 2010 and 2011, operators drilled a large number of laterals shorter than 3,000’ as they experimented with the Mississippi Lime and other new plays. With the maturing of these plays, very few shorter laterals are being drilled. A few very long laterals are appearing – almost 10,000’. This is still too few to be considered a trend. Year Average Completed Length of HW 2013 4,200’ 2014 4,400’ 2015 5,700’ Updated* Spears & Associates, Inc. / Oilfield Logix Series

Bakken/Williston: Description
The Rockies includes the following states: North Dakota, Montana, Wyoming, Colorado and Utah. The area is large, the drilling diverse, the activity erratic, but there is no question that it contains one of the most important plays ever to be discovered in the US: The Williston Basin’s Bakken. Bakken: The deep, highly prolific, young play that spans North Dakota, Montana and extends north into two Canadian provinces. This report addresses the US portion. A horizontal play with pad drilling and 10,000’ laterals.

About 6% of the new wells constructed in the US this year will be in the Williston Basin, which includes the Bakken. This oil-rich play has captured the attention of oil companies, service companies and investors of all types Total drilling in 2015 will reach ~1,200, of which almost all are Horizontal/Directional. Given low oil and gas prices, the outlook for drilling in 2016 calls for another 10-15% decline, followed by a recovery in 2017. Spears & Associates, Inc. / Oilfield Logix Series

Almost $10 billion will be spent in the Bakken during the course of % of the $10 billion will be spent constructing wells, 43% completing wells, and 21% producing wells. Like most US basins, well completion is the largest of the three segments. The top three spend categories are hydraulic fracturing, water management and contract drilling. For Richard Spears & Associates, Inc. / Oilfield Logix Series

Bakken Cased hole wireline dominates the wireline work found in the Bakken. The Bakken is one region in the US that some plug-perf completion work on the horizontal wells has been lost to sliding sleeve type completions. However, it appears that this trend has slowed and may be reverting back to wireline completions. As shown in the neighboring chart, the region’s wireline market is ~$.3 billion in This is down from ~$0.45 billion in We expect an additional decline of ~12% in 2016. A few notable companies operating in the area include: Allied Horizontal Wireline Cutters C&J/Cased Hole Solutions JW Wireline (FTS) Pioneer Halliburton Schlumberger Weatherford Spears & Associates, Inc. / Oilfield Logix Series

Bakken: Frac Stages / Well
Although a wide range of frac stages can be found in the Bakken, 30 stage frac jobs are by far the most common. Spears & Associates, Inc. / Oilfield Logix Series

Average Lateral Length
Bakken/Williston Lateral length of horizontal wells has been getting longer each year in the Bakken. In 2012 the average length was ~8,000’ and in 2013 the length was 9,000’. Using the data, well lengths are increasing a few hundred feet per year in the Bakken making the 2015 average 9,500’ and the most common lateral length or median being 9,500 – 10,500’. The chart below plots the distribution of lateral lengths of ~200 horizontal wells drilled in the last three years. Year Average Lateral Length 2013 9,000’ 2014 9,400’ 2015 9,500’ UPDATED Spears & Associates, Inc. / Oilfield Logix Series

Other Rockies: Description
The Rockies includes the following states: North Dakota, Montana, Wyoming, Colorado and Utah. However, this section of the report addresses: Niobrara: A reservoir within the Denver-Julesberg Basin in Eastern Colorado, Eastern Wyoming and a bit of Nebraska. Operators are still trying to determine the optimal way to develop this reservoir with horizontal wells. Western Wyoming: A gas play that still has some large operators drilling wells. Piceance & Uinta: The Western Rockies with vertical drilling through highly tilted rock layers, creating a complicated drilling situation.

Total Rocky Mountain drilling in 2015 will fall to 1,800, of which ~1,100 are horizontal/directional and ~700 are vertical. Drilling has seen a decline since 2012, but the ratio of horizontal to vertical wells is slowly increasing. This report covers drilling in the Niobrara within the Denver-Julesberg Basin, several gas and gas liquids developments in Wyoming, gas plays in Western Colorado and Utah, and a smattering of drilling here and there. Some of the “other” drilling is shallow, vertical coalbed methane work in Wyoming. Spears & Associates, Inc. / Oilfield Logix Series

~$6.7 billion will be spent in the Rockies during the course of % will be spent constructing wells, 35% completing wells, and 28% producing wells. Unlike most US basins, construction is the largest of the three segments. The top three spend categories are water management, hydraulic fracturing and contract drilling. The Rockies represents about 8% of the total US land market. For Richard Spears & Associates, Inc. / Oilfield Logix Series

Other Rockies Open hole wireline continues to share a larger part of the activity in the Rockies due to vertical well activity outside the Bakken. One can see the trend to less OH and more CH work in the region as we look into 2014 and beyond as horizontal wells become a larger portion of the market. As shown in the neighboring chart, the region’s wireline market is ~$.4billion in This is about the same as in 2011 but shows a shift away from OH. A few notable companies operating in the area include: Allied Horizontal Wireline Cutters C&J/Cased Hole Solutions JW Wireline (FTS) Pioneer Halliburton Schlumberger Weatherford Spears & Associates, Inc. / Oilfield Logix Series

Average Lateral Length
Other Rockies: Lateral Length Completed length of horizontal wells has been getting longer each year in all basins in the Rockies, which is heavily influenced by drilling in the Niobrara. The chart below plots the distribution of completed lengths of several horizontal wells drilled in the last three years in the Niobrara of Colorado. Year Average Lateral Length 2013 3,000’ 2014 3,400’ 2015 4,000’ Spears & Associates, Inc. / Oilfield Logix Series

Northeast: Description
The Northeast US has several plays both new and old. The two primary states are Ohio and Pennsylvania, plus a bit of West Virginia. This report covers primarily Ohio and Pennsylvania and all drilling in the region. The biggest influencers of drilling and spending, however, are the Utica and the Marcellus, which have driven strong demand growth for horizontal drilling and multiple stage frac jobs. In this region, only the large operators tend to drill horizontal wells. Spears & Associates, Inc. / Oilfield Logix Series

Northeast Cased hole wireline dominates the Northeast since plug & perf techniques are preferred on multiple stage frac jobs…and very little formation evaluation is required during the drilling phase. As shown in the neighboring chart, the region’s wireline market is ~$.3 billion in This is down 43% from 2014. A few notable companies operating in the area include: Allied Horizontal Wireline C&J/Cased Hole Solutions JW Wireline (FTS) Superior Renegade Halliburton Schlumberger Weatherford Spears & Associates, Inc. / Oilfield Logix Series

Northeast: Frac Stages / Well
Frac stages is one of the metrics regularly quoted by analysts working in this industry. Except for those companies providing plug & perf technologies, this is not a very meaningful statistic. In the Northeast, as many as 40 frac stages have been pumped in a single well. As the table to the right shows, number of stages pumped have been increasing since 2012. Year of Completion Average Number of Frac Stages per well 2012 10 2013 12 2014 15 Spears & Associates, Inc. / Field Logix Series

Northeast: Lateral Length
Lateral length of horizontal wells has been getting longer each year, but length in 2013 and 2014 is showing a big jump as more 8-10,000’ laterals are appearing. The chart below plots the distribution of completed lengths of about 100 horizontal wells drilled in the last several years. The longest lateral in each year is 9,000-10,000’, but the average or most frequently drilled lateral is still ~5,000’. Year Average Completed Length of HW 2012 5,200’ 2013 6,000’ 2014 6,500’ Updated Spears & Associates, Inc. / Oilfield Logix Series

Western: Description California’s oilfields have been actively drilled and produced for decades. The heart of the industry surrounds Bakersfield, with clusters of activity near Los Angeles and the Elk Hills region. Further north in the state lies an active geothermal play. This report does not address that market.

Western The western US continues to be one of the smaller market regions. Most of the activity here will be concentrated in the old Long Beach and Bakersfield area oil fields. As shown in the neighboring chart, the region’s wireline market is ~$.3 billion in This is up 50% from 2011. A few notable companies operating in the area include: Tiger Wireline (C&J Wireline) Halliburton Schlumberger Weatherford Spears & Associates, Inc. / Oilfield Logix Series

Western: Lateral Length
Lateral length of horizontal wells has been getting longer each year, but California has the nation’s shortest horizontal wellbores (average length). Average completed length was 1,200’ in 2014, up significantly from 2011, but most wells tend to be less than 1,000’ long. Year Average Completed Length of HW 2012 1,000’ 2013 1,100’ 2014 1,200’ Updated* Spears & Associates, Inc. / Oilfield Logix Series

Western: Frac Stages / Well
With relatively short horizontal laterals and with wellbore configurations that tend to be vertical, the number of frac stages per well tends to be lower than most other regions. The graph below shows that most wells have 1-4 frac stages. Longer laterals should promote more growth in this area, but with such a large decline in drilling activity, it could take several years for this growth to occur.

Gulf Coast/Southeast: Description
This region includes South Louisiana and the coast eastward to Florida.

Gulf Coast/Southeast As shown in the neighboring chart, the region’s wireline market is ~$.4 billion in This is up from ~$.25 billion in 2011. A few notable companies operating in the area include: Pioneer GE Superior Energy Services Moncla Archer ArkLaTex Halliburton Schlumberger Weatherford Spears & Associates, Inc. / Oilfield Logix Series

Wireline: Supply Chain

Wireline Supply Chain There are five major components to the Wireline Supply Chain Wireline Cable A consumable downhole product used by wireline companies to deploy and retrieve tools in a wellbore. The cable is constructed such that two layers of helically wound steel (typically) wires surround one or more insulated conductors (nominally copper). The conductor carries the electrical power and communication signals to and from the downhole tools while the outer steel layers provide protection to the conductor(s) and the mechanical strength necessary to deploy the tools in and out of the wellbore. Wireline Units (Trucks and Skids) Downhole Wireline Tools CH OH Wireline Data Acquisition Systems Perforating Supplies Related/Support Products & Services Pressure Control Equipment and Rental

Wireline as a Consumable
The wireline is an essential part of the wireline operation. Open Hole units typically have one cable installed on the winch while a cased hole unit may have one or two cables. Each wireline unit in operation must have at least one serviceable cable installed and in a condition acceptable to running in and out of the wellbore. The action of running the cable in and out of the well produces wear and tear on the cable. Historically, a CH cable may last 12 – 18 months dependent on conditions, care and frequency of use. Open hole cables, under normal conditions, with proper care and maintenance may last 18 – 30 months. Currently, CH cables used in pump-down operations have a shortened life of 6 – 10 months due to much higher utilization rates, service intensity and the wear and tear imposed by the pump-down process. More extreme well environments also contribute to shorter life The end of the wireline connected to the downhole tools experiences the most wear and is subsequently cut off and discarded on a frequent basis. Thus, a wireline gets progressively shorter during its life and is eventually retired from use when it is too short for regional conditions or other damage and wear factors render the cable unusable. Cables can be repaired and or spliced to “rescue” a cable damaged during use. Local conditions and practices determine the extent to which repairs are acceptable.

Wireline Cable Typical Configuration
Insulation Material used largely defines maximum temperature rating from 300 to 600 ℉ Conductor (nominally copper) Single conductor for CH cable 7 conductors for OH cable Outer Armor Outer Armor Inner Armor Wireline cable is manufactured to create one piece cables in typical lengths from 20,000’ to 30,000’ Diameters range from .185” to .425” for CH work (single conductor) and .325” to .522” for OH (multi conductor) cables Breaking strength varies from 1,000 lbs to > 30,000 lbs and is largely determined by the cables’ outside diameter. Inner Armor Insulation Conductor Cable Cross Section View

Wireline as a Consumable
Factors determining the life-span of a wireline: Wellbore conditions – Corrosive fluids can damage and weaken the steel armor. Special cable metallurgy can combat this increased wear. Conveyance type – Wireline cable was designed to be under tension during operation. Pump-down or other conveyance methods which place the cable under compression place additional wear and tear on the cable Maintenance – Cables that receive periodic maintenance are proven to have longer life spans Installation – Proper installation of new cables onto the drum is essential to providing expected cable life spans Wireline Pricing: A standard CH cable averages ~ $1.00 per linear foot of cable A standard OH cable averages ~$2.00 per foot A standard Mechanical Cable averages ~ $.50 per foot Corrosive resistant cables can cost > $10.00 per foot

Wireline Cable Suppliers
WireCo WorldGroup (Camesa Brand) Mexico City, Mexico Previously also marketed the “Wireline Works” brand but has been merged into Camesa during 2015 Deacero Queretaro, Mexico Deep Well Technologies Houston & Mexico Rochester Corp. (TE Connectivity) Virginia Manuf Synergy Wire & Cable Burleson, TX Vector (Schlumberger) Sugarland, TX Quality Wireline & Cable (Forum Energy Technologies) Calgary, CA CH & OH 33% market share China & Russia (unable to sell to NAM and/or International service companies due to quality issues)

Wireline Distribution
Wirelines in North America are sold through distributor networks. The distributors are typically small, privately held regional companies. Distributors maintain on hand stock of various wirelines to be readily available. Distributors normally sell the wireline and receive a commission from the cable manufacturer. Distributors provide necessary aftermarket services: Installation of new wirelines Repair services Maintenance services Cleaning Cable Lubrication Cable Tightening and Tensioning

Global Wireline Cable

Wireline Cable

Perforating

Perforating Market Spears expects the switches segment to have a higher growth rate as the industry continues to adopt RF (radio frequency) safe, digitally addressable switches to further enhance safety, reliability and efficiency of perforating systems. The perforating market, addressable from the US*, grows and shrinks along with the wireline market. Extra growth has been added by the increased cased hole service intensity required by the horizontal unconventional reservoirs. The 2014 $260 million perforating charge market represents approximately 37 million charges. If we include charges produced and utilized in China & Russia there are approximately 64 million charges sold in 2014. Spears estimated that two-thirds of the global demand could be found in North America. This is due to the type of drilling and completion work found in the US and Canada. Other parts of the world will use fewer perforating shots due to generally higher quality reservoirs being developed. *Does not include the perforating charges and systems supplied from China and Russia. China and Russia together supply an estimated 27 million perforating charges annually in 2014.

Perforating Market Titan and Owens supply the market with > 40% of the charges required. Both have extensive warehouses throughout the US and supply the majors as well as independent wireline companies.

Perforating Suppliers
Description Market Regions Est Global Revenue (Perf Sys) Independents Titan Manufacturer and supplier of perforating & logging products and supplies NoAm, SoAm, Eur, ME, Far East ~$185M Core Labs (Owen) Manufactures and distributes perforating products and supplies ~$175M Geo Dynamics Manufactures and distributes perforating and related supplies NoAm, Eur, ME, Far East ~$50M DYNA Energetics Manufactures and distributes perforating systems and supplies ~$75M ETA S.A. Argentine based supplier of perforating charges, guns and supplies NoAm, SoAm, Eur ~$80 SWM Manufacturer/distributor of perforating guns ~$10M Probe Technologies Designs, manufactures and distributes full range of perforating tools and equipment ~$70M G&H Manufactures and distributes perforating guns ~$8M Majors SLB Integrated service provider with in-house perforating hardware manufacturing Global ~$170M JRC (HAL) ~$125 Baker Hughes ~$115

Data Acquisition Systems

Data Acquisition Systems
There is only one story to tell regarding the data acquisition systems available and that is of Scientific Data Systems. SDS developed a PC based cased hole logging system in 1993 and it has evolved into the de facto standard in logging systems available to the independent wireline company around the world. The Warrior Well Logging System (as marketed by SDS) has both open hole and cased hole capabilities and is compatible with virtually all types of downhole tools available from the various tool suppliers. Schlumberger, Baker, Halliburton and Weatherford utilize proprietary systems but Warrior systems will be found within all these majors. The data system acts as the “brains” of a logging unit and consists of both hardware and software. In the Warrior System, most of the value resides in the software. 2015 – 3rd Party Data Acquisition System Estimated Market Size - $9 million

Pressure Control Equipment

Pressure Control Equipment
Pressure Control Equipment is utilized during a wireline operation. The equipment allows the wireline to move in and out of the well while maintaining a pressure seal at the well head. Quite often, cased hole wireline operations are performed with pressure present at the well head so that well productivity is not damaged or otherwise compromised. The carton to the right and more detailed drawing on the far right show typical well head wireline PCE gear.

Market Size (millions)
Wireline PCE Market 2015 Some 10k PCE packages and almost all 15k packages are supplied by 3rd party suppliers Spears estimates half of the rental PCE market is provided by wireline companies, while the remainder is provided by 3rd party companies. New Wells Market Size (millions) $/New Well NoAm Land 28,200 $130 $5,000 NoAm Offshore 300 $14 $45,000 Intl Land 9,300 $120 $13,000 Intl Offshore 2,600 $170 $65,000 TOTAL 40,400 $434 $11,000 Source: Spears & Associates

Wireline PCE Market Based on Spears’ research and estimates, the global wireline PCE market will be $434 million in 2015, a sharp decline from 2014 as both activity and pricing was reduced. Growth in 2016 will be difficult as drilling activity and, therefore, completion activity, decline in the US. The largest market is International Offshore comprising 39% of the total market. Offshore (international plus North America) represents ~42% of the wireline PCE market. Millions Region 2010 2011 2012 2013 2014 2015 NoAm Land $260 $350 $375 $400 $130 NoAm Offshore $20 $25 $30 $14 International Land $140 $135 $145 $150 $160 $120 International Offshore $125 $180 $200 $170 TOTAL $545 $635 $705 $735 $790 $434 Source: Spears & Associates’ DPO September 2014, plus Spears’ research.

Wireline Pressure Control Supplier Matrix
PCE Equipment Sales PCE Rental NOV Elmar ✔ STS (Oil States) Hunting Professional Wireline (Halliburton) Forum Energy Technologies Frank Henry Gulfstream Services Supreme Services MPSI (Manufactured Products & Supply) Yellow Jacket Pressure Control Specialties Quinn’s NXT Oilfield Rentals Market Leaders Estimated 2015 Market $.7 billion Estimated 2015 Market $.6 billion

High Pressure Wireline Equipment Rental
Wireline service providers historically have provided much of the low pressure (< 5,000 psi at well-head) pressure control equipment (PCE) required during a wireline job. Most land and offshore wireline companies choose to own and utilize this “low Pressure” PCE as a matter of convenience and economics. A set of 5k PCE gear can be purchased for $75k and will generally achieve payback in a matter of months. Third party suppliers, are relied upon to provide the specialized equipment and personnel required on a high pressure (15k psi at well head). The mid-pressure (10k psi at well head) is a mixed market with some wireline companies providing the equipment and others relying on third party providers. A typical wireline pressure control kit includes: wireline BOP, Pack-Off, Grease Injector Pump and Hoses, Grease Head and Flow Tubes, Lubricator, Tool Trap and/or Head Catcher. Kits are supplied to match pressure requirements but typical working pressures are 5,000 psi, 10,000 psi or 15,000 psi. Why do wireline providers choose third party PCE for high pressure jobs? High pressure gear is considerably more expensive. A set of 15k gear can cost in excess of $250k. Lower utilization rates of this class of equipment precludes ownership and maintenance. High pressure gear requires constant maintenance and certification. This required activity detracts from the wireline company’s focus of service performance at the wellsite. Safety on a high pressure job is at a premium. The risks increase substantially where high pressure exists at the wellhead. It is difficult for a wireline company with low utilization rates of high pressure PCE to provide a person whose full time task is PCE service operator. Provision of a PCE service operator with 100% focus and training on the high pressure task is the only appropriate response to this requirement. Recognizing the above, it is not unusual for the well operator to require third party provision of high pressure PCE gear and service.

Wireline Units

Units: M&A 01/12/14 - The Artex Group - National Oilwell Varco (NOV) acquired The Artex Group effective 12/8/14. With 120+ employees and activities in (Brenham, TX) US, Middle East & South America, Artex fabricates wireline trucks for, and provides downhole tools & surface products and truck refurbishment services to, wireline services companies serving the oil & gas industry.

Estimated 2015 Market $75 million
Wireline Units Supplier Matrix CAPEX spending was non-existent or highly constrained throughout 2015 placing large downward pressure on the unit supply market. A few new start-up wireline companies in the US added about 40 new-build units. Supplier Description Est. Annual Unit Sales NOV Elmar (ASEP) Manufactures e-line and slickline trucks and skids on a global basis ~$15 M Texas Wireline Manufactures and refurbs trucks and offshore skids ~$5 M Synergy Manufactures and refurbs trucks Artex (Acquired by NOV, December, 2014) Manufactures and refurbs e-line and slickline trucks and skids. ~$5M General Bodies (Canada) ~$2.5 M Dyna Winch (Canada) Manufactures and refurbs e-line and slickline trucks and skids. Has sold on a global basis ~$7M Wireline Truck Fab ~$2 M Eclipse Wireline Manufactures e-line and slickline trucks and skids. Has sold on a global basis ~$6 M Turnkey Industries Manufactures e-line trucks and data vans for frac ~$2M Others ~$25 M Estimated 2015 Market $75 million

Downhole Wireline Tools

Estimated 2015 Market $100 million (Excluding Majors)
Wireline Tool Supplier Matrix Supplier Description E-line OH E-line CH SL Independents Titan (Hunting) Manufactures and distributes full range of cased hole e-line and slickline tools and equipment ✔ Probe Technologies Manufactures and distributes full range of open hole, cased hole e-line and slickline tools and equipment Hotwell Manufactures and distributes full range of cased hole e-line tools and equipment. Distributes Chinese made open hole tools. GE Oil & Gas In-house R&D, Engineering, Manufacturing and sales of full range of open hole, cased hole e-line and slickline tools and equipment NOV Elmar Manufactures and distributes slickline tools and equipment Logan GOWELL (China) Manufactures and distributes full range of open hole, cased hole e-line tools and equipment Majors SLB Integrated service provider with in-house R&D, Engineering and Manufacturing of proprietary tools for internal use. Has sold older generation tools to National Oil Companies HAL Integrated service provider with in-house R&D, Engineering and Manufacturing of proprietary tools for internal use. Weatherford Baker Hughes Estimated 2015 Market $100 million (Excluding Majors)

Market Drivers

Price & Drilling Forecasts
Source: Spears & Associates’ DPO September 2015

US Horizontal & Vertical New Wells
Source: Spears & Associates’ DPO September 2015

Source: Spears & Associates’ DPO September 2015
Offshore New Wells Source: Spears & Associates’ DPO September 2015

US Drivers: Rig Efficiency
The exciting story in US drilling, and particularly on land, is rig efficiency. As seen in the adjacent chart, vertical well rig efficiency has increased 31% for a CAGR of 7% from 2011 to Although the efficiency has improved, both the vertical rig count and vertical wells drilled are declining. Horizontal well rig efficiency has increased 33% over the same period. This is ~7% CAGR in efficiency for the period The increased Horizontal well rig efficiency is a direct driver of increased cased hole wireline services in all regions. It also appears that growth in horizontal rig efficiency has slowed or stopped in the near term. Source: Spears & Associates’ DPO September 2015

Offshore New Wells in the US
While the U.S. land continues to drive much of the drilling activity, offshore activity climbed from it’s low point in 2010 of approximately 500 new wells in 2014 before falling again in 2015. Source: Spears & Associates’ DPO September 2015

Horizontal & Vertical New Wells in the US
Since 2009, drilling in the US has fundamentally changed. Prior to 2009, oil and gas producers drilled vertical wells and only drilled horizontal wells offshore and in a handful of natural gas shale plays. The slow down of 2009 gave producers free time to evaluate their drilling opportunities and most concluded that their future would consist of drilling horizontal wells in all types of oil-bearing rock. Vertical drilling has been in decline and horizontal drilling has grown. Although vertical wells will always be in the portfolio of drilling techniques, horizontal is now broadly adopted and embraced by all types of exploration and production companies in North America. This shift in drilling has led to a decline in open hole logging, onshore in the US. Many vertical wells obtain open hole logs while virtually all horizontal wells in the unconventional basins do not. Source: Spears & Associates’ DPO September 2015

Companies

Companies: M&A News FORT WORTH, Texas, Dec. 8, 2014 – FTS International (FTSI), the largest independent well completion service company in North America, announced today that it has completed the acquisition of substantially all the assets of J-W Wireline Company (J-W Wireline). The close of this acquisition increases FTSI’s wireline capacity more than tenfold and extends wireline service to all locations where the company currently offers hydraulic fracturing services, including the Permian Basin; Eagle Ford, Marcellus, Utica and Haynesville shales; and various mid-continent plays. The acquisition of substantially all of the assets of J-W Wireline, one of the largest independent cased-hole wireline companies in North America, provides a national wireline footprint to FTSI’s North American well stimulation fleet, which has more than 1.6 million hydraulic horsepower. FTSI and J-W Wireline customers can now benefit from a more comprehensive and efficient bundle of well completion services, including vertical and horizontal (pump down) perforating, comprehensive cased-hole logging services including cement bond logs and production logging, slickline, braided line, tubing conveyed perforating (TCP), pipe recovery and mechanical services. “This acquisition provides us several key opportunities,” FTSI Chief Executive Officer Greg Lanham said. “Partnering the acquired wireline units with our existing stimulation fleets will allow us to reduce wireline-related downtime for our customers while increasing the utilization of our equipment.” The acquisition includes approximately 70 active wireline units, related district operation locations, a manufacturing facility and a training facility. With the completion of the transaction, approximately 400 J-W Wireline employees are joining FTSI, including a wireline management team with deep industry experience. Mr. Lanham added, “This acquisition places us even more securely among the top well completion service companies in North America as we continue to add scope and scale to the services we provide our customers.”

Allied Horizontal Wireline Services
Allied Horizontal Wireline, a privately held company, placed together two complementary companies, Allied Wireline and Horizontal Wireline in early AHWS is one of few independent wireline provides to supply both open hole and cased hole services to the US market in the major producing basins.

Archer Archer, publicly traded in Norway, has grown through acquisition, including buying Gray Wireline in December of 2010, which added Cased hole wireline services in the US. Gray brought 110 wireline trucks and 6 offshore skids to Archer serving most of the U.S. market. Archer subsequently augmented its U.S. wireline offering with the acquisition of Universal Wireline in January of Universal added an additional 26 wireline trucks in capacity.

Baker Hughes Baker Hughes’ wireline operation represented ~7% of the company’s 2015 total revenues. BHI has wireline operations around the world, both land and offshore, and holds the number 3 position in North America.

Basic Energy Services Wireline remains a relatively small , ~1% of revenue, part of Basic’s operation. Basic provides cased hole services from locations in the Eastern Permian Basin.

C&J Energy Services Cased Hole Solutions was acquired June of 2012 adding substantially to C&J’s wireline capabilities and presence. C&J expanded into the Los Angeles and San Joaquin Basins of California with the acquisition of Tiger Cased Hole Services in May of Tiger provides land and offshore (West Coast U.S.) cased hole services as well as geothermal logging. During June of 2014, Nabors agreed to combine its Completion and Production Services with C&J Energy Services. This will include Nabors ~42 wireline cased hole units. The deal closed Q

China Oilfield Services
COSL offers both open hole and cased hole wireline services and product sales as part of their offering.

Expro International Expro provides e-line and slickline cased hole well intervention and perforation services on a global basis

FMC Technologies Spears & Associates: Hydraulic Fracturing Market
FMC acquired Pure Energy Services October, 2012 adding cased hole wireline in North America (largely in Canada).

FTS International Spears & Associates: Hydraulic Fracturing Market
FTS acquired J-W Wireline in Q4 of 2014 to give FTS cased hole wireline capabilities in the US to compliment its fracturing service.

Forum Energy Technologies
Spears & Associates: Hydraulic Fracturing Market Forum Energy Technologies FET is a manufacturer of engineered products for the oilfield. The high pressure treating iron segment serves the wireline market. We have estimated sales of these this product line in the neighboring graph.

GE Oil & Gas Spears & Associates: Hydraulic Fracturing Market
GE Oil & Gas provides open hole and cased hole wireline downhole tools and equipment on a global basis. GE also runs a cased hole service business, obtained in an acquisition from The Wood Group, in the US land, GOM , Argentina and Venezuela markets.

Halliburton Spears & Associates: Hydraulic Fracturing Market
HAL is the second largest oilfield service company with open hole and cased hole wireline service locations around the world. Halliburton’s wireline is a distant second in the global market behind Schlumberger. Halliburton has announced a merger with rival Baker Hughes which may complete in early 2016.

Hunting Energy Services
Spears & Associates: Hydraulic Fracturing Market Hunting Energy Services Through its Titan division, Hunting is a major supplier of downhole wireline tools, perforating equipment and perforating shaped charges.

National Oilwell Varco
Spears & Associates: Hydraulic Fracturing Market National Oilwell Varco NOV is a global giant in supplying the energy and energy services industries. Through the NOV Elmar division, they manufacture and sell wireline pressure control equipment and wireline units.

Pioneer Spears & Associates: Hydraulic Fracturing Market
Pioneer operates a fleet of 120 units mainly in the Bakken, Eagleford and Permian basins. Pioneer offers both open hole and cased hole services. Pioneer Wireline grew by acquisition and the legacy companies include: Pioneer Wireline (Texas), Penkota Wireline (North Dakota), Competition Wireline (Montana, Wyoming) Log-Tech (Kansas, Oklahoma, Colorado), Rocky Mountain (Colorado) and Phoenix Surveys (Utah, Wyoming).

Renegade Spears & Associates: Hydraulic Fracturing Market
Renegade is a good example of a large, regionally diverse cased hole independent in the US with locations in most producing basins on land.

Schlumberger Spears & Associates: Hydraulic Fracturing Market
The world’s largest oilfield service company is the second largest frac and cement company. Schlumberger “wrote the book” on wireline logging and are the undisputed leader in this service and technology around the globe. In North America, Schlumberger’s wireline dominance is put under pressure from the independent cased hole companies.

Superior Energy Services
Spears & Associates: Hydraulic Fracturing Market Superior Energy Services SPN acquired Black Warrior Wireline December, 2010.

Weatherford Spears & Associates: Hydraulic Fracturing Market
Weatherford is a distant # 4 among the major energy service companies in wireline.

Authors

Authors Spears & Associates has specialized in evaluating oilfield equipment and service markets and companies worldwide since The firm has completed ~2400 custom oilfield market research projects around the world and worked for ~400 clients in 2014. The firm is headquartered in Tulsa and has consultants across the US. Contributors to this report include: John Spears President Drilling & Production Outlook Richard Spears Vice President Oilfield Market Report Lauren Collette Data Analyst Spears & Associates sales & marketing: Katie Bewley Director, Client Relations Independent Advisor to Spears & Associates: David Otte Ft Worth, Texas OILFIELD LOGIX, launched in 2012, is a standardized database of well construction and completion records across all active land basins in the US. The database spans the years 2010 through current, with thousands of wells added each year. OILFIELD LOGIX’S team of 15 data analysts uses a variety of public and private sources to construct a searchable database of new well construction and completion information. OILFIELD LOGIX is an independent data manufacturing company that works in cooperation with Spears & Associates to bring field level market intelligence and market analysis to the upstream oil and gas industry. For additional information, please visit:

Legal Matters Copyright 2015, Spears and Associates, Inc. All rights reserved. This communication is confidential and is provided to clients of Spears and Associates, Inc. for their lawful use. This communication may not be disclosed, copied or disseminated, in whole or in part, without the prior written permission of Spears and Associates, Inc. The report and its contents are the property of Spears and Associates Inc. and are protected by applicable copyright, trade secret or other intellectual property laws. Disclaimer: This communication is based on information that Spears and Associates, Inc. believes is reliable. However, Spears and Associates, Inc. does not represent or warrant its accuracy, completeness, or any other aspect of this information. The viewpoints and opinions expressed in this report represent the views of Spears and Associates, Inc. as of the date of this report. These viewpoints and opinions may be subject to change without notice. This message should not be considered as a recommendation to buy or sell any securities. In no event shall Spears and Associates, Inc. be liable for incidental or consequential damages associated with reliance on any statement or opinion contained in this report. Important Disclosures: The following analysts were involved in creating or supervising the content of this report: Richard Spears, John Spears, and Lauren Collette. These analysts certify that the views and opinions expressed in this report accurately reflect their personal views. These analysts have not and will not receive direct or indirect compensation in return for expressing specific viewpoints in this report. Spears and Associates, Inc. provides market research services to the petroleum industry, but does not provide investment banking services. From time to time Spears and Associates, Inc. will provide market research consulting services to some of the oilfield service companies mentioned in this report for which the firm is compensated.

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