1. Horizontal Well Break Out Session Feb 24, 2015 Moderators: Rob Sutton Dave Sask Gordon Gates

2. Discussion Points EOT Landing Depth Toe-up / Toe-down –Are undulations & traps okay? Salt problems 2

3. EOT Landing Depth Flowing Well –5-50 ft above deepest point in the curve –Fayetteville, low water rate (8-10 BWPD or less), No Pkr, mainly toe up 75-82°, 60-75° or >82° (same), 45-60°, 30-45° & <30° (best to worst) >15 ft TVD above deepest point in the curve (no more than 20 ft TVD) –76° (Old UPRC paper) –Barnett (more water production) 65-75° –Tubing close to 90° may enhance loading & slugging –Need for a predictive tool 3

4. EOT Landing Depth Artificial Lift –Tend to run tubing deeper –Barnett gas lift set EOT close to top perf or near 90° –Carthage Field, James Lime gas lift 2-3/8 at 70° 4

5. Lateral Orientation & Traps General consensus for gas wells is toe up Undulations & Traps –No difference in performance first 2 years –Problems later in well’s life (> 2 years) –Operators trying for smoother laterals 5

6. Salt Problems/Solutions Salt Problems –Examples from Marcellus, Haynesville, Woodford, Barnett, Duvernay & Jean Marie (Canada) –Problems also have been identified in lateral Solutions –Fresh water dumped down casing can handle salt in issues in vertical wells or in heel of hz wells –Salt blockages in hz wells generally require CT invention with jetting tool 6