Requirements and Challenges Extended Laterals Anders Storaune, P.E.

True Vertical Depth Vs. Vertical Section Well Profiles Drilled to Date Drilled Wells 2007 Aspect Ratio (AR) = 4 Aspect Ratio (AR) = 3 Aspect Ratio (AR) = 2 Aspect Ratio (AR) = 1 5000 wells drilled over the last decade. FSD, WV, NEPA. Well design description. DP size. NC50. Hole size. 9-10 DLS curve. All wells are geosteered by in house OSC.

True Vertical Depth Vs. Vertical Section Well Profiles Drilled to Date Drilled Wells 2007-2008 Aspect Ratio (AR) = 4 Aspect Ratio (AR) = 3 Aspect Ratio (AR) = 2 Aspect Ratio (AR) = 1 5000 wells drilled over the last decade. FSD, WV, NEPA. Well design description. DP size. NC50. Hole size. 9-10 DLS curve. All wells are geosteered by in house OSC.

True Vertical Depth Vs. Vertical Section Well Profiles Drilled to Date Drilled Wells 2007-2009 Aspect Ratio (AR) = 4 Aspect Ratio (AR) = 3 Aspect Ratio (AR) = 2 Aspect Ratio (AR) = 1 5000 wells drilled over the last decade. FSD, WV, NEPA. Well design description. DP size. NC50. Hole size. 9-10 DLS curve. All wells are geosteered by in house OSC.

True Vertical Depth Vs. Vertical Section Well Profiles Drilled to Date Drilled Wells 2007-2010 Aspect Ratio (AR) = 4 Aspect Ratio (AR) = 3 Aspect Ratio (AR) = 2 Aspect Ratio (AR) = 1 5000 wells drilled over the last decade. FSD, WV, NEPA. Well design description. DP size. NC50. Hole size. 9-10 DLS curve. All wells are geosteered by in house OSC.

True Vertical Depth Vs. Vertical Section Well Profiles Drilled to Date Drilled Wells 2007-2011 Aspect Ratio (AR) = 4 Aspect Ratio (AR) = 3 Aspect Ratio (AR) = 2 Aspect Ratio (AR) = 1 5000 wells drilled over the last decade. FSD, WV, NEPA. Well design description. DP size. NC50. Hole size. 9-10 DLS curve. All wells are geosteered by in house OSC.

True Vertical Depth Vs. Vertical Section Well Profiles Drilled to Date Drilled Wells 2007-2012 Aspect Ratio (AR) = 4 Aspect Ratio (AR) = 3 Aspect Ratio (AR) = 2 Aspect Ratio (AR) = 1 5000 wells drilled over the last decade. FSD, WV, NEPA. Well design description. DP size. NC50. Hole size. 9-10 DLS curve. All wells are geosteered by in house OSC.

True Vertical Depth Vs. Vertical Section Well Profiles Drilled to Date Drilled Wells 2007-2013 Aspect Ratio (AR) = 4 Aspect Ratio (AR) = 3 Aspect Ratio (AR) = 2 Aspect Ratio (AR) = 1 5000 wells drilled over the last decade. FSD, WV, NEPA. Well design description. DP size. NC50. Hole size. 9-10 DLS curve. All wells are geosteered by in house OSC.

True Vertical Depth Vs. Vertical Section Well Profiles Drilled to Date Drilled Wells 2007-2014 Aspect Ratio (AR) = 4 Aspect Ratio (AR) = 3 Aspect Ratio (AR) = 2 Aspect Ratio (AR) = 1 5000 wells drilled over the last decade. FSD, WV, NEPA. Well design description. DP size. NC50. Hole size. 9-10 DLS curve. All wells are geosteered by in house OSC.

True Vertical Depth Vs. Vertical Section Well Profiles Drilled to Date Drilled Wells 2007-2015 Aspect Ratio (AR) = 4 Aspect Ratio (AR) = 3 Aspect Ratio (AR) = 2 Aspect Ratio (AR) = 1 5000 wells drilled over the last decade. FSD, WV, NEPA. Well design description. DP size. NC50. Hole size. 9-10 DLS curve. All wells are geosteered by in house OSC.

True Vertical Depth Vs. Vertical Section Well Profiles Drilled to Date Drilled Wells 2007-Present Aspect Ratio (AR) = 4 Aspect Ratio (AR) = 3 Aspect Ratio (AR) = 2 Aspect Ratio (AR) = 1 5000 wells drilled over the last decade. FSD, WV, NEPA. Well design description. DP size. NC50. Hole size. 9-10 DLS curve. All wells are geosteered by in house OSC.

True Vertical Depth Vs. Vertical Section Future Wells Drilled Wells Future Wells AR = 4 AR= 1 Cost to LP is getting higher. Mobilization – pad cost, road limitations, curfews, etc. Pushing completable latereral length to improve project economics.

True Vertical Depth Vs. Vertical Section Cost Effective with Rotary Steerable Drilled Wells Future Wells Rotary Steerable AZ GR. Near bit GR for quicker reaction time. Determine if cutting up or down structure. Higher percentage in zone – 15%. Tighter targets. Able to stay within tighter targets. More inclination changes. Smoother wellbore – DLS are cumulative. Ff reduction of 0.03. Continuouse DLS vs. microdoglegs/ledges with motor. Breaking static friction factor. Smooth wellbore – limited lowside ST capability. Curve lateral runs – more flexible tool – more wag on AZ

True Vertical Depth Vs. Vertical Section Requires 7,500 psi Mud Pumps Drilled Wells Future Wells Rotary Steerable 7,500 psi Mud Pumps All our active rigs have 7500 psi mud pumps. Utilize motor assist RSS on most wells. Our wells have 8.5” production hole. Used 12.0 ppg pumping at 650 gpm. Can LD motor to reduce some SPP. Can drill further, but have to back down on flow rate, which will slow down ROP and hole cleaning.

True Vertical Depth Vs. Vertical Section Requires 5.5” Drillpipe Drilled Wells Future Wells Rotary Steerable 7,500 psi Mud Pumps 5.5” Drillpipe Get out to around 25,000 ft MD: Pressure limit even with 7500 psi mud pumps. Reaching TQ limit on NC50 connections. Reaching tensile limit on 5” S135 19.5# DP. TQ limit – 0.3 ff. Tensile limit.

Challenges Going Forward Fatigue Failures Fishing Options Sidetrack Options Historically, fatigue accounts for roughly 80% of DP mechanical failures. Stress relieve groove.

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