2 nd Annual Appalachian Basin Gas Well Deliquification Seminar Hilton Garden Inn, Pittsburg, PA June , 2011 Breakout Session Results Issues for Wells Drilled and Completed in Shales/ Issues for Horizontal Wells

Laundry list of issues

- toe up or toe down (orientation) - sumps / traps in lateral (wellbore terrain related slugging) - pad/well/frac interference - multizone contributions? - team interactions need to improve (drilling, completions, reservoir, operations, etc) - how deep to lift? - tubing to the toe of the well? - what type of A/L to use? - other treatments in horizontals (inhibitor, acid, etc) - data surveillance (are we collecting the right data?) - no rat hole for sand, scale, plug pieces, etc.returning while producing - zonal control - restrict or open flow (choke management)? - when to use A/L? (vertical flow correction to Coleman-Turner Equations) - new technologies (conventional vs. new) - does water change with time? (volume, ratios, composition, etc.) - water management for the life of the well / field - how does Horizontal Well flow under different conditions? - how to help wells that have been affected by offset fracs?

Summary of discussion

Summary of discussions Design: - toe up or toe down (orientation) - sumps / traps in lateral (wellbore terrain related slugging) - pad/well/frac interference - no rat hole for sand, scale, plug pieces, etc.returning while producing Completion: - tubing to the toe of the well? - How deep to lift from? - zonal control Production: - what type of A/L to use? - other treatments in horizontals (inhibitor, acid, etc) - data surveillance (are we collecting the right data?) - restrict or open flow (choke management)? - when to use A/L? (vertical flow correction to Coleman-Turner Equations) - new technologies (conventional vs. new) - does water change with time? (volume, ratios, composition, etc.) - water management for the life of the well / field - how to optimize A/L with changing well condiitions - how to help wells that have been affected by offset fracs?

Summary of discussions - What type of A/L to use? - Data surveillance (are we collecting the right data?) - How does Horiz. Well flow under different conditions? - What is the right design for the length of the well? - Are we drilling them too long? We need to better understand how these wells produce over time! Need to have more interactions between functions during the planning and design of the well. We can either fix it or manage it. We can design it to produce fluids effectively or we will be constantly attempting to manage the changing conditions!