1. Using the WITSML™ protocol for analysis in Drillworks – past case studies and current applications Drew Swanson May 11, 2006

2. Outline Who is Knowledge Systems and what is Drillworks Importance of Real-time Decision Making 4 WITSML Case Studies Current WITSML Project and Drillworks

3. Software – Advanced geomechanics and geopressure technologies Relational database used to store, manage and share pressure-related data

4. Services –Planning Pre-drill pore pressure analysis Wellbore stability analysis Borehole trajectory planning Mud weight optimization –Surveillance Wellsite monitoring Real-time model updating Remote operations WITSML data transmission –Knowledge Management Pressworks database implementation Data loading Connector building Quality assurance

5. Using WITSML to avoid NPT Stuck Pipe Kick Lost Circulation Sloughing Shale Flows Wellbore Instability 41% of total NPT US $8B+ Annually James K. Dodson Co. 1993-2002 Year NPT Analysis (Offshore, Jan 2004)

6. Anatomy of an Operations Decision VALUE TIME

7. Creating Actionable Information from Data

8. Reduce NPT with Real-time Surveillance Acquire quality data Transport data to observers Convert data to information Communicate information to decision-makers

9. Case Study #1 Background Deepwater Well offshore Trinidad Significant uncertainty in subsurface environment High potential for unscheduled events related to uncertainty Need for real-time geomechanics modeling Operator domain expert is not offshore deployable resource Unplanned requirement ~ low budget & short fuse

10. Configuration

11. Installation Baker Hughes Inteq installed WITSML v1.2 server in Port of Spain <30 Minutes in BP Houston Offices –Installed Drillworks ConnectML on client PC –IP Address, UN, Pass, Configuration for server connection –Configure Drillworks data links to ConnectML –Expert begins modeling using real-time data –Expert activates WITSML server to make interpretation available to rig

12. Case Study #2 Background Deepwater Gulf of Mexico Well Narrow PP FP envelope (high risk of influx or losses) High potential for pressure related unscheduled events Client requested expert synchronous surveillance from Houston offices Replace WITS with WITSML

13. Configuration

14. Installation Baker Hughes Inteq installed WITSML v1.2 server <30 Minutes in Client Houston Offices –Installed Drillworks ConnectML on client PC –IP Address, UN, Pass, Configuration for server connection –Configure Drillworks data links to ConnectML –Expert begins modeling using real-time data

15. Case Study #3 Background Client in case #2 switched LWD vendors Scenario typically causes multitude of data transfer issues Requires significant work on both sides to regain connections

16. Configuration

17. Installation Schlumberger installed WITSML v1.2 server <10 minutes to reconfigure system –IP Address, UN, Pass, Configuration for server connection –Configure Drillworks data links to ConnectML –Expert ready for modeling using real-time data before first tools run in hole

18. Case Study #4 Background Shelf project in Gulf of Mexico Precise casing set requirements due to PP ramp Limited rig space for additional personnel Economics would not support onsite analyst Client requested synchronous remote surveillance

19. Configuration

20. Installation Schlumberger installed WITSML v1.2 server –No apparent delay, unknown install time <30 minutes to configure WITSML client system –IP Address, UN, Pass, Configuration for server connection –Configure Drillworks data links to ConnectML –Expert ready for modeling

21. Lessons Learned WITSML updates slower than WITS –Internet time versus direct cable time Concurrent use of proprietary system (Riglink, Interact) aids in monitoring data dead zones System is still imperfect, and requires companies to collaborate on problems WITSML must be planned before a project. –Connections attempted as after thoughts have failed.

22. Key Accomplishments - Technology –Short connect and configure time of <30 minutes –No special hardware or IT involvement required –Low cost –Secure synchronous and asynchronous data exchange –Omni-directional, multi-user data movement –Portable

23. Key Accomplishments - Operations –Maximum utilization of bandwidth, data and expertise –Cross discipline collaboration –Delivered the right information to the right people, at the right time –Better decisions resulting from right time, expert analysis

24. Current WITSML Project and Drillworks

25. WITSML Status at Knowledge Systems WITSML connection to Drillworks happening everyday around the world One client in Houston (Mid-size) has 3 rigs running today with WITSML to Drillworks in GOM Another client in North Sea has 2 rigs connecting via WITSML to Operations Center No longer theory…Contributing to the bottom line right now! * SPE Paper 99466