2. Outline Pore Pressure and Fracture Gradient Drilling Fluid Casing Design Cement Design Drilling Bit Economic Analysis

3. Area of Interest

7. OGIP Surface Map

8. Porosity Surface Map

9. Porosity 3D View

10. Net Pay 3D View

11. Vertical Well Placement

12. Horizontal Well Placement

13. Future Production Estimate

14. Fracturing Well #1

15. Pore Pressure and Fracture Gradient Equation used Pff = 0.33 x [(σ OB / d) + 2 x (σ pore / d)] Pore Pressure Gradient Approximately 0.42 psi/ft Fracture Gradient Approximately 0.73 psi/ft

16. Casing Design API GRADE Yield Strength Min Ultimate Strength Min Elongation J-55 40K (min) – 80K (max) [psi] 60K psi 29.5% [Table 7.1 from text] Based off of the calculated yield strength: around 42,000 psi No need for larger ultimate strength Water Table between 500 – 2000 foot (From NE) Conductor Casing:50 feet Surface Casing:2200 feet Intermediate Casing: 6000 feet Production Casing:12000 feet 50 2200 6000 12000

17. Casing Design cont’d Casing Diameter Casing Pressure Conductor 23.125 in 20 in 35 psi Surface 19.2 in 14 in 1100 psi Intermediate 13.5 in 11.25 in 2460 psi Production 9.4 in 8.4 in 4850 psi SF = 1.7

18. Casing Design cont’d Casing Collapse Res. Conductor 480 psi Surface 1875 psi Intermediate 5500 psi Production 10200 psi MW = Pressure x (0.052 x TVD)

19. Drilling Fluid Casing Mud Weight Conductor 13.4 ppg Surface 8.76 ppg Intermediate 7.58 ppg Production 6.16 ppg MW = Pressure x (0.052 x TVD)

20. Cement Design Type: Class C High early strength properties which allows cement to be used at high water levels. Regularly used for shallow well cementing operations through salt beds. Density of the cement = 11.53 ppg

21. Cement Design cont’d Ac = ( d out 2 – d in 2 ) / 1029.4 (bbl/ft) Volume = Ac (bbl/ft) * Depth (ft) Casing Cement Volume Conductor 6.5 bbl 36.498 ft 3 Surface 368.9 bbl 2071.37 ft 3 Intermediate 324.58 bbl 1822.52 ft 3 Production 207.49 bbl 1165.07 ft 3 Total cement Volume907.47 bbl 5095.44 ft 3

22. Drilling Bit Drilling through shale and sandstone We will use Poly diamond crystal bit (because they are faster and tend not to break as often as other bits) Use multi pad drilling (Will use 75% less land)

23. Drilling How many days to reach depth? It will take about 14 and half days to drill to the pay zone with an average rate of penetration of 34.3 ft/hr

24. How much will it cost per day? rule-of-thumb for trip-time estimations is 1 hr/1,000 ft of a well. C= [(R=$1125)( (t=12 hrs) +(t d =350hrs)+C b $25,000]/(F=12,000ft) = $36.02/ft $29,652.35 How much will it cost total to drill? $432,331.27 Economical Analysis

25. Thank You! Any Questions?