1. 7 th Annual Sucker Rod Pumping Workshop Renaissance Hotel Oklahoma City, Oklahoma September 27 - 30, 2011 Fishing Fiberglass Rods in the 21 st Century Mike Poythress – Technical Manager Raymond Swafford – Permian Basin Sales Manager Tyler Bradley – Tech Services Manager John Crane Production Solutions

2. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop2 Fiberglass Sucker Rods  Lighter and stronger than steel  Reduces operating costs  Requires smaller size pumping units  Capital costs are reduced  Non-corrosive  Reduces down-time  Increases production – when available

3. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop3 Fiberglass Sucker Rod Sizes  37.5’ Long  Sizes Available  1.25”  1” ***  7/8”  3/4”  Weigh about 30% of steel

4. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop4

5. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop5 Fiberglass Sucker Rod Manufacturing  Each rod has about 250 “rolls”  Each “roll” has about 400 strands of glass fibers  Resin holds glass strands together and forms the shape of the rod  Approximate rod composition  75% Glass fibers  25% Resin

6. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop6

7. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop7 Fiberglass Sucker Rod End Fitting  End fitting has Patented Wedges on ID  Tension applied to rod causes wedges to be compressed between the rod and the end fitting

8. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop8

9. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop9 Fiberglass Sucker Rod End Fitting  Epoxy is loaded into end fitting  Epoxy sticks to rod, not end fitting  Dries in about 60 minutes  Every rod is pull tested during assembly  1.25” rods pulled to 40,000psi

10. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop10

11. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop11 Fiberglass Sucker Rod Design  Typically 40% to 60% of string is Fiberglass  Bottom of string is steel to provide weight  Increases downhole stroke  Some strings are “Glass and Bars”  80% Fiberglass  20% Sinker bars  24 month warranty

12. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop12 Fiberglass Sucker Rod Limitations  Temperature Limitations  Standard FSR 180º F  High Temperature FSR 250º F  At bottom fiberglass rod – not bottom of well

13. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop13 “Hot Oil-able?”  Estimated 20% – 30% of FSR wells get Hot Oiled  Annulus for routine paraffin removal  Tubing prior to pulling pump  180º max  Recommend a steel rod / pony rod  As with any hot oil job...don’t hot oil today and expect to pull rods tomorrow

14. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop14 Fiberglass Sucker Rod Limitations  Rods can not go into compression  Pound fluid  Tagging pump

15. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop15 Does Tagging the Pump Help? STEEL RODS No Damage to Valve Rod Guide # of Pulls Avg. Days Run Pump560564 Rod234543 Tubing383506 Total1177541

16. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop16 Does Tagging the Pump Help? STEEL RODS No Damage to Valve Rod Guide Valve Rod Guide is Pounded # of Pulls Avg. Days Run # of Pulls Avg. Days Run Pump56056464390 Rod23454336247 Tubing38350634322 Total1177541134334

17. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop17 Myths and Selling Points for Steel Rods “...but I’m allergic to fiberglass...”

18. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop18

19. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop19 “You can’t fish ’em”  Permian Basin - In excess of 10,000 wells  August 2010 – July 2011  Averaged more than 15 new installs per day in Permian Basin  FY 2011  72 Fishing Jobs  65 Caught  90.3% Success Rate

20. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop20 “You can’t fish ’em”  Utilize a 36’ to 40’ pump barrel  Drop down over rod part and latch onto next upset  Challenges to catch fish  When pump is stuck in tubing  When tubing is parted  Shear tools are run on about 70% of all installs  Some Operators choose Back off / On Off Tools

21. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop21 Desert Energy Fishing Tool w/ Bowl (Similar to Baby Red)

22. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop22 Bowen Spiral Grapple

23. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop23 Deviated & Horizontal Wells  Mold on Rod Guides can be installed on fiberglass sucker rods  Not snap on guides  Rod rotators  Not a standard practice, but some Operators choose to run in some circumstances

24. 6550’ Pump Depth, 80% Water Unit Size456-213-120 Pump Bore1.25” SPM10.5 Motor Size50 Production194 Plgr Travel119 Electric $/BTF.131 Taper 12,000’ 7/8” D Taper 24,500’ 3/4” D String Weight10,621

25. 6550’ Pump Depth, 80% Water Unit Size456-213-120 Pump Bore1.25”1.50” SPM10.512 Motor Size5060 Production194362 Plgr Travel119135 Electric $/BTF.131.107 Taper 12,000’ 7/8” D3,275’ 1” FSR Taper 24,500’ 3/4” D3,275’ 7/8” D String Weight10,6218,151

26. 6550’ Pump Depth, 80% Water Unit Size456-213-120 320-256-120 Pump Bore1.25”1.50”1.25” SPM10.51210 Motor Size506040 Production194362202 Plgr Travel119135130 Electric $/BTF.131.107.118 Taper 12,000’ 7/8” D3,275’ 1” FSR3,575’ 1” FSR Taper 24,500’ 3/4” D3,275’ 7/8” D2,975’ 7/8” D String Weight10,6218,1517,709

27. 6550’ Pump Depth, 80% Water Unit Size456-213-120 320-256-120 Pump Bore1.25”1.50”1.25” Production194362202 Plgr Travel119135130 Pump’s Maximum Compression Ratio 304833

28. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop28 FSR Case Studies  Pioneer Natural Resources study increased production 209%, improved failure rate by 192% and reduced power consumption by 20% - 30%  ConocoPhillips study increased lift capacity by 300%, reduced downhole failures by 85% and reduced power consumption by 10% – 20%

29. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop29 Fiberglass Sucker Rods - Conclusions  Lighter and stronger than steel  Reduces operating costs  Requires smaller size pumping units  Capital costs are reduced  Non-corrosive  Reduces down-time  Increases production  AND, IF NECESSARY, THEY ARE FISHABLE!

30. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop30 Copyright Rights to this presentation are owned by the company(ies) and/or author(s) listed on the title page. By submitting this presentation to the Sucker Rod Pumping Workshop, they grant to the Workshop, the Artificial Lift Research and Development Council (ALRDC), and the Southwestern Petroleum Short Course (SWPSC), rights to: –Display the presentation at the Workshop. –Place it on the www.alrdc.com web site, with access to the site to be as directed by the Workshop Steering Committee. –Place it on a CD for distribution and/or sale as directed by the Workshop Steering Committee. Other use of this presentation is prohibited without the expressed written permission of the author(s). The owner company(ies) and/or author(s) may publish this material in other journals or magazines if they refer to the Sucker Rod Pumping Workshop where it was first presented.

31. Sept. 27 - 30, 2011 2011 Sucker Rod Pumping Workshop31 Disclaimer The following disclaimer shall be included as the last page of a Technical Presentation or Continuing Education Course. A similar disclaimer is included on the front page of the Sucker Rod Pumping Web Site. The Artificial Lift Research and Development Council and its officers and trustees, and the Sucker Rod Pumping Workshop Steering Committee members, and their supporting organizations and companies (here-in-after referred to as the Sponsoring Organizations), and the author(s) of this Technical Presentation or Continuing Education Training Course and their company(ies), provide this presentation and/or training material at the Sucker Rod Pumping Workshop "as is" without any warranty of any kind, express or implied, as to the accuracy of the information or the products or services referred to by any presenter (in so far as such warranties may be excluded under any relevant law) and these members and their companies will not be liable for unlawful actions and any losses or damage that may result from use of any presentation as a consequence of any inaccuracies in, or any omission from, the information which therein may be contained. The views, opinions, and conclusions expressed in these presentations and/or training materials are those of the author and not necessarily those of the Sponsoring Organizations. The author is solely responsible for the content of the materials. The Sponsoring Organizations cannot and do not warrant the accuracy of these documents beyond the source documents, although we do make every attempt to work from authoritative sources. The Sponsoring Organizations provide these presentations and/or training materials as a service. The Sponsoring Organizations make no representations or warranties, express or implied, with respect to the presentations and/or training materials, or any part thereof, including any warrantees of title, non-infringement of copyright or patent rights of others, merchantability, or fitness or suitability for any purpose.