1. 19.Oct.2006 Presentation to WITSML Seminar and Exhibition by Cheo Alvarez, OVS Product Manager, OVS © One Virtual Source TM and

2. Bringing RFID to the Oilfield

3. Rig Measurement Technology 1899 - 2006

4. RFID Tags For Surface & Downhole Oilfield Equipment Thin Walled Components Thick Walled Components

5. Asset Management Dimensions Materials Ownership Certification Use history Location Unique I.D. - Coupled with Valuable Information

6. Applications Drill Pipe, HWDP Drill Bits, Hole Openers Casing and Production Tubing Pipeline Equipment Chicksans / Pressure Vessels Safety Equipment & Information / MSDS Drilling & Production Chemicals Other Surface Equipment

7. Cradle to Grave Value

8. Value Propositions Operations / Asset Management / Safety –Reduced Drill String Failures –Increased Probability of Fish Recovery –Procurement –Availability –Suitability (proper application of materials) –Location –Inspection & Maintenance –Regulatory Compliance

9. WITSML WEB/SOA The Rig-Hand™ System Doghouse / Field Office Enterprise Solution data accessible at well site Rugged, Intrinsically Safe, Wireless, Modular

10. Righand Summary Merrick’s Solutions Address All Aspects –Tags with Patented Technologies and Licensed IP –Readers –Software Cradle to Grave Asset Management –OEM, Inspection, Transportation, Operations, Salvage & Resale Royalty and License Arrangements –OEM Manufacturing, Retro-Fitting Data Integration –WITSML

11. OVS © One Virtual Source TM An Innovative Production Management System Delivers the Engineering Workspace of the Future

12. OVS (One Virtual Source) Vision OVS © is a Production Management System that dynamically couples dispersed data sources with multiple applications. It streamlines engineering processes through the creation and automation of user driven workflows to enhance E&P asset performance.

13. Vision of Smart Asset Management Integrated Approach Immediate response to operational events Optimize production by continuous modeling/diagnosis of wells and key facilities Exploit data and knowledge to anticipate failures with virtual intelligence technologies Proactive decision making

14. Typical Asset Engineer Work Environment Decision Making

15. OVS Architecture StrategicTacticalOperational Data Sources Data Access Layer Business Layer Presentation Layer Scheduler & File Watcher Workflow Wizard & Integration Engine Processes Workflows Expressions Functions Web Services Report Engine Queries Graph Engine ProsperGAP Rodstar SpocOFMMBALEclipse Peep VOLTS DLL’s Web Svcs. SCADA Data Historian SCADA Device Access Prod. Well Work Project Data App’s Data Corp. DDR Dynamic Data Repository Catalogue & Meta-Data

16. OVS Sample Workflows Model-based Surveillance High Frequency Surveillance Automatic Resvr Sim Model Updates & Execution Automatic Pressure Transient ID Rule Based Field Data Capture Well Test Validation – Manual, Prosper, GAP Multi-variate Well Ranking Vintage Ranking and Comparison Dynamic Watchlists – Top Producers

17. OVS, and Easy adoption of both and standards Merrick’s vision –Promote integration of data and applications –Vendor collaboration –Facilitate client work processes through standardization and automation of workflows

18. For additional information contact Cheo Alvarez at +1-713-579-3400 or email at Cheo.Alvarez@MerrickSystems.com. Q&A Session