Enhancing E&P Business Efficiencies: Upstream Standards. Bottom Line Results. Energistics Annual Member MeetingRandy Clark Houston, TexasPresident & CEO 8 March 2007Energistics

The Vision Energistics will be the global Energy Standards Resource Centre for the upstream oil and gas industry

The Mission Energistics will deliver to the upstream oil and gas industry the means to produce, promote, deploy and maintain common information and data standards

2006: A Look Back Business Development –Rebranded the company –Redesigned and launched the website –Developed a target membership Initiative –Began implementation of the Global Region plan Marketing –Bi-monthly ‘Community Headlines’ –Press releases and placed articles in industry journals –Presented, exhibited or attended conferences in Dubai, Kuala Lumpur, Norway, UK, US and China delivering the Energistics message

2006: A Look Back Standards Development –WITSML –PRODML –Global Unique Well Identifier –Products, Services and Equipment Classification Operations –Reduced overall operating costs through personnel reduction and HR outsourcing –Implemented new accounting system –Developed new personnel policies and financial controls –Implemented new Performance Expectations Framework –Established the Energistics Standards Advisory Council

2007: Leveraging Assets to Value Operational Efficiency Energistics Approach Value Equation Focus of Efforts

Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production OperationsGeophysics Drilling Operations Completion & Workover E&P Catalogue Standards XML exchange standards, design guidelines, profiles Data Management SIG Production PRODMLSIG Reference Data Standards eRegulatory SIG Global Unique Well Identification Standards Areas of Focus E&P Business Process Reference Model Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover Drilling WITSML SIG

2007: Key Strategies Value-Based Business Model Growth Leverage Diversification Value Delivery

2007: Membership Currently 70 Members –36 Sustaining –21 Contributing –13 Associated Different Members = Different Motivations + Expectations + Skillsets Target 20 New Members –8 Sustaining –7 Contributing –5 Associated

2007: Community Eight Regions Localization to Standards Identify Business Requirements Drive Deep Deployment 2007 –South Asia: January –North America: March –Western Europe: May Energy Standards Resource Centre

2007: Marketing Energistics website –Content –Functionality Speaking at and/or exhibiting at approximately eighteen trade shows Targeted events in each of the eight global Regions Continued visibility through aggressive public relations.

2007: Standards Development & Deployment Premier Initiatives: –WITSML: Growth and high-quality long-term roadmap –PRODML: Market activity from Version 1.0; wider scope of optimization capabilities Initial Market Presence for Global Unique Well Identifier Major Initiatives –Strategically driven –Full life cycle –Leveraged resources Compliance Certification & Testing Standards Advisory Council

2007: Operations Expanded Board Cost Optimization Policies, Procedures Membership Fee Structure Sound fiscal management

Energistics Upstream Standards. Bottom Line Results. TM

Thank you!