Eagle Ford Shale Stimulation Demands: Good Engineering, Optimized Fluid Selection and Execution Jorge Manrique, PE – Nabors Completion & Production Services Co. Buenos Aires, 9 de Agosto de 2012

Who we are… 5th Largest Pressure Pumping Co. in North America (~1 M HHP) Experienced in All Major US Basins (29 Districts) Over 13,600 DUG Stages Completed in 2011 HRHP Equipment and Experienced Personnel (15K PSI) World Oil, Eng. Innovation Awards & Patented Green Chemicals Pioneers in Water Re-use Friction Loop Analysis Own RC Proppant Technology Available In-House Engineering / Design Optimization

What we do… Pressure Pumping Cementing Fracturing Wire Line Coiled Tubing (16) Work Over Well Servicing (750) Fluid Management, Storage & Disposal Transportation & Logistics

Major US Unconventional Basins 250 Rigs Un-conventional NCPS Districts

Comparison of Shale Thickness VACA MUERTA HORN RIVER BARNETT HAYNESVILLE MARCELLUS EAGLE FORD 2352 FT 600 FT 498 FT 351 FT 298 FT 219 FT Vaca Muerta is ~7 times Thicker than Eagle Ford Play

EAGLE FORD SHALE BASIN OIL DRY GAS

Understanding the Shale Reservoir X-Ray Diffraction (XRD) Total Organic Content (TOC) Pressure/Volume/Temperature (PVT) Embedment Geo-Mechanical If <YM = Soft If >YM = Brittle Desorption Analysis

The Importance of Understanding the Reservoir Total Improved Production and EUR depend on: Complex Fracture Geometry Optimal Perforation Techniques Stress Contrasts Fluid Leak-Off Natural Fractures Layering Brittleness Young Modulus

Laboratory Services & Testing

Samples Examined Sample Depth (ft) Lithology Classification No. (modified Dunham, 1962) 1 10170.50 Calcareous Mudrock N/A 2 10174.40 Calcareous Mudrock N/A 3 10183.70 Calcareous Mudrock N/A 4 10189.50 Argillaceous Limestone Foraminiferal Packstone 5 10192.40 Calcareous Mudrock N/A 6 10195.50 Calcareous Mudrock N/A 7 10201.50 Argillaceous Limestone Foraminiferal Packstone 8 10213.55 Calcareous Mudrock N/A 9 10219.50 Mudrock N/A 10 10221.80 Claystone / Calcareous Mudrock N/A 11 10225.50 Mudrock / Calcareous Mudrock N/A 12 10241.50 Mudrock / Calcareous Mudrock N/A Courtesy of Southern Bay Energy

Frac Fluid Design Based on: Inductive Coupled Plasma (ICP) PMAC Scale Modeling System Microbiological Analysis Standard Titrations Field Tests Post Job Analysis of Produced Water

Perforating and Fracture Initiation 5 Clusters Reduced Spacing to 1 Ft 4 SPF (all deep penetrating) Run RA Tracers (Ir, Sc, Sb) Drilled-Out Frac Plugs & Log the Interval

20 Holes – Limited Entry

25# Crosslinked Hybrid – Eagle Ford

Conclusions Formation Evaluation & Core Data correlation will enhance best frac design. Each shale formation is unique in geo-chemistry, petrology, brittleness, ductility, complexity, mineralogy. All must be understood to select the right fluid rheology. There is no a single approach to complete all shale formations. Mineral deposits and geochemical precipitates including scale, can be prevented by using the right blend of chemicals. Limited-entry and deep-penetrating shots have proven effective at reducing fracture initiation pressures, lower breakdown pressures and “smoother” treatment. Maximizing the Stimulated Rock Volume (SRV) can be obtained through limited- entry perforating designs. Smaller diameter holes create additional friction pressure aiding in fracture diversion. Frac treatment must be designed depending if the well will produce oil or gas.

For more Information Contact: Thank You !!! For more Information Contact: Jorge.Manrique@Nabors.com