1. JUAN ORTEGON Issues with Rod Pumping Wells Completed in Shale Formations 2010 ALRDC

2. Major Challenges  Horizontal/Deviated Wellbores  Pump Depth (Placement)  Solids (SAND!!!)  Gas Interference 2010 ALRDC

3. Horizontal Wells Vast majority of wells in shale plays are “non-vertical” multi-stage completions 2010 ALRDC

4. Pump Placement  Optimal Pump Placement?  KOP (vertical section above KOP)  Tangent Section (ex. 50° - 60°)  Lateral (90 °) 2010 ALRDC

5. Solids Solids such as sand increase pump failures and sand tolerant pumps (i.e. loose fitting & or trash pumps) ultimately effect pump efficiencies  Possible Solutions  ? 2010 ALRDC

6. Gas Interference 2010 ALRDC  Vertical Wells  Not enough rat hole  Pumping above perfs to get away from solids  Horizontal Wells  Always above perfs  High GLR

7. Breakout Summary 2010 ALRDC  Discussion was geared towards horizontal and highly deviated wells as majority of new and future activity revolves around non-vertical wells.  Group brought up that in effort to have a successful chance of being able to rod pump, the best conditions have to be set initially, thus calling for more and improved communication between the drilling goups and production engineers.  Pump placement was briefly discussed as it appeared that most operators usually set pump in the vertical section although an operator in the Bakken Shale stated they are pumping wells in the 60deg marker will relatively some success although noting there are risks are associated with it.  Major discussions regarding the lack of technology to combat major issues with shale wells being both gas and high sand producing plays.  With many individual tools in the market today to handle such issues as gas separation and sand handling, there is still no “magic bullet”!

8. Breakout Summary 2010 ALRDC  Service companies and pump manufactures need to foresee the need for pumps to handle the numerous variables associated with horizontal wells.  Operators need to be willing to share information regarding success and failures with any new technology.  Verdict is still undecided on the ability for rod pumps to be utilized for shale formations which consist of highly of horizontal wells.