1. © Copyright 2005 POSC 2005 Standards Program Updates Alan Doniger, POSC November 2, 2005 15 th Annual Member Meeting & Conference

2. © Copyright 2005 POSC Outline Observations The Family of Data Exchange Standards Technical Program Summary –2005 Accomplishments –2006 Goals

3. © Copyright 2005 POSC Observations The Tight-Loose Paradigm –Simultaneously, Focus on communicating and promoting the strategy and vision Deliver value through short-term work efforts –Quid Pro Quo: »We commit to the success of short-term work efforts »Everyone understands that short-term standards solutions are incremental steps on the road to achieving the strategic vision

4. © Copyright 2005 POSC Observations Reference Data Standards –Still the key challenge for data management, data exchange and data usage

5. © Copyright 2005 POSC Observations Petrotechnical Data Exchange Standards –WITSML maturing within the Drilling domain –WITSML growing from addressing Drilling to addressing Much More

6. © Copyright 2005 POSC Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production OperationsGeophysics Drilling Operations Completion & Workover E&P Subject Areas As used to portray the coverage of the Epicentre Data Model

7. © Copyright 2005 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?

8. © Copyright 2005 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 raw, calculated and planned Well Path data, coordinate systems, and units.  WellPath Well Wellbore Trajectory  CRS, Projections  Units of Measure

9. © Copyright 2005 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 wireline as well as LWD log data.  Log,WellLog

10. © Copyright 2005 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

11. © Copyright 2005 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 We have a pending request to establish a Geophysical SIG. Such a SIG could lead to WITSML Geophysical data exchange Standards.

12. © Copyright 2005 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.

13. © Copyright 2005 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 This would call for close cooperation with other industry groups to avoid duplication of effort and ensure smooth transitions.

14. © Copyright 2005 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 What’s in a Name? WITSML 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. Drilling Production Geophysical Geological Facility Reservoir WITSML = All or WITSML = Drilling? All = PetroML or PetroTechML?

15. © Copyright 2005 POSC PetroTechML 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? PetroTechML 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 GEOPHYSICALML GEOLOGICALML EPFACML RESERVOIRML WITSML = All or WITSML = Drilling ? All = PetroML or PetroTechML or ?

16. © Copyright 2005 POSC Standards Program Outline WITSML –Drilling * –Production * –Geological –General –Regulatory Reference Data Standards –General * –Geological * Data Management Standards –Epicentre Data Model –Geoshare Data Model * - activities covered by previous presentations

17. © Copyright 2005 POSC WITSML™ Drilling 2005 Accomplishments [WITSML Drilling SIG] –SIG grew in number (to 45 so far) and activity level Two major Conferences with Seminars and Vendor Exhibits –SIG added an Implementation Support Team to address short-term user issues –Version 1.3 of overall WITSML Standards published in Q1 –Version 1.3.1 completed and out for public review to Nov. 11 –Certification Program begins with Product Data publication Note: Underlined topics have aspects with 2005 High Priority status.

18. © Copyright 2005 POSC WITSML™ Drilling 2006 Goals –Sustain WITSML Drilling SIG and marketplace activity level –Identify areas for incremental growth, e.g. daily reporting Determine status of early Intervention work –Possible Version 1.3.2 for practical issue resolution in late ’06 –Complete Certification Program roll-out

19. © Copyright 2005 POSC WITSML™ Production [Integrated Ops. SIG] 2005 Accomplishments –Digital Fiber Optic Distributed Temperature Surveys (DTS) Work group led by BP and Shell; next step is to organize pilot projects Compatible specifications completed and integrated with WITSML V1.3.1 for publication –Activity and Volume Reporting Adapted prior ProductionML as basis for WITSML Production Reporting Leveraged participation in OLF Partner Daily Reporting work effort –Close technical coordination with TietoEnator Pilot testing started in October by Statoil and BP –Optimization Participating broadly in PRODML project led by BP, Shell, Chevron, ExxonMobil and Statoil; intention to build from related WITSML work –Laboratory Fluid Analysis Results ExxonMobil specifications, submitted in ’04, adapted as part of WITSML Current internal review to be followed by SIG validation

20. © Copyright 2005 POSC WITSML™ Production 2006 Goals –Digital Fiber Optic Distributed Temperature Surveys (DTS) Promote and support Pilot Projects; develop user community Process proposed changes through issue/update procedure –Activity and Volume Reporting Continue support of OLF usage; process proposed changes through procedure Expand scope of usage through SIG participants Integrate and publish as an addition to WITSML V1.3.1 –Optimization Continue participating in PRODML; coordinate proposed changes Anticipate transfer for support and evolution around end of Q3 –Laboratory Fluid Analysis Results Complete SIG review and evolution followed by public review period Integrate and publish as an addition to WITSML V1.3.1

21. © Copyright 2005 POSC WITSML™ Geological [PWLS SIG] 2005 Accomplishments –Well Logs – Wireline and LWD WITSML Log and WellLog, published in WITSML V1.3, on the road to being the XML Standard for all well log data; WellLogML to be retired –Depth Registration Work group includes ExxonMobil, IHSE, A2D, Neuralog, and Oilware Specifications out for public review 2006 Goals –Well Logs – Wireline and LWD Promote usage and build user community Process proposed changes through issue/update procedure Retire WellLogML when transition has progressed sufficiently –Depth Registration Will be published as an addition to WITSML V1.3.1 in early ’06 Support, build user community; process proposed changes

22. © Copyright 2005 POSC WITSML™ General [DSS SIG] 2005 Accomplishments –Well and Wellbore Designed for Drilling use; re-use likely for other areas –Well Path WITSML objects enhanced to support raw data, calculated paths, and planned paths; an open planned path issue remains deferred until after V1.3.1. 2006 Goals –Well and Wellbore Manage growth in scope of use; determine prudent growth path Specifically involve users of WellHeaderML (UK BGS, PPDM, etc.) to determine whether to “integrate and retire” –Well Path Resolve the remaining issue and formulate appropriate change requests presumably for WITSML V1.3.2 Promote endorsement & usage by industry including UKOOA, MMS, and ISCWSA

23. © Copyright 2005 POSC WITSML™ Regulatory [eRegulatory SIG] 2005 Accomplishments –Permitting and Activity Reporting Working with the broad coalition of US federal and state agencies, the GWPC, and PIDX REGS EC, delivered a working permitting Standard to California in Q1 California is beta testing the with Aera beginning in November ’05 We provided orientation to US BLM and New Mexico agency for a project to use WITSML Regulatory Standards for BLM to New Mexico permits As an adjunct to the development and deployment of a new.NET online and database system by GWPC for a dozen or more states, POSC will participate in a comprehensive design for life-cycle industry-agency interactions. 2006 Goals –Permitting and Activity Reporting Support California’s use; handle change requests per procedure Support New Mexico’s use when this begins Participate in the GWPC project; leverage additions and enhancements to the WITSML Regulatory standards

24. © Copyright 2005 POSC Reference Data Standards: General [DSS SIG] 2005 Accomplishments –Geodetics, Projections, Coordinate Reference Systems Completed a cycle of coordination with Roel Nicolai (Shell) on behalf of EPSG Completed step 1 of 2 to align WITSML; Step 2 proposals being formulated –Well Identity Service Initiative (Global Unique Identifiers) Initiated a Letter of Intent process; Approval from 5 oil companies Signatories being invited to form operational steering team –Lithology Completed step 1 of 2 to publish Lithology standards; included in WITSML 1.3 Developing more comprehensive step 2 specifications; SIG review begins in Q4 –E&P Cataloguing Updates to vocabularies received from SIG member based on recent industry work Continued expressed interest but little evidence of readiness to participate in a collaborative effort in this area

25. © Copyright 2005 POSC Reference Data Standards: General 2006 Goals –Geodetics, Projections, Coordinate Reference Systems Work through Step 2 of the alignment proposal for WITSML –Well Identity Service Initiative (Global Unique Identifiers) Steering team will issue and manage service provider selection process Steering team will establish and conduct development and roll-out plan –Lithology Complete SIG review and public review; publish and promote use –E&P Cataloguing Reassess with SIG the status and short-term plans for this area Consider the proposal to associate recommended cataloguing patterns with each of the data exchange objects in the WITSML Standards.

26. © Copyright 2005 POSC Reference Data Standards: Geological 2005 Accomplishments –Property Hierarchy Definitions Change requests received from Schlumberger –Oil Company Generated Curve Mnemonics Change requests from Shell processed to conclusion updated PWLS specifications to be published –Acquisition and Generated Curve Classification Working with SIG members to encourage commercial upgrades to PWLS Version 2 support

27. © Copyright 2005 POSC Reference Data Standards: Geological 2006 Goals –Property Hierarchy Definitions Process change requests; publish updated specifications –Oil Company Generated Curve Mnemonics Promote use and invite further requests –Acquisition and Generated Curve Classification Continue promoting commercial product use, oil company use, and service company submission of new curve information through new web service interface

28. © Copyright 2005 POSC Data Management Standards 2005 Accomplishments –Epicentre Data Model [DSS SIG] Continued use and adaptation within commercial products; enhancements are being made and have been requested to be shared with POSC Continued use as a reference for developing exchange specifications and reference data / standard instance specifications. –Geoshare Data Model [Geoshare SIG] Limited input or requests from user community 2006 Goals –Epicentre Data Model Support commercial product use; process change requests per procedures Support reference use for exchange and reference standards development. –Geoshare Data Model No change in the quantity of user requests is anticipated

29. © Copyright 2005 POSC Thank You! For more information about the POSC technical program, contact Alan Doniger, POSC CTO Doniger@POSC.org +1 713 267 5124 temporarily +1 713 877 0353 Doniger@POSC.org