1. 26 MARCH 2015 SPE DALLAS SECTION GEORGE E. KING, P.E. INCREASING NATURAL GAS USE IN FIELD OPERATIONS – THE NEXT STEP IN AN ERA OF LOW OIL & GAS PRICES

2.  Challenges with gas & oil price drop:  Less gas drilling  Smaller margins in natural gas and gasoline fuels  More difficult to find markets for some stranded gas?  Opportunities:  Switch focus on some gas to use of field gas  Technologies on wellhead prep of field gas for fuels  Increased capture of natural gas liquids ERA OF PRICE REDUCTION FOR GAS & OIL 2

3.  Gas-to-liquids – still too expensive to work in most places.  Modular equipment to separate liquids from gas at a central pad has progressed – Bakken successes.  Provides pipeline quality gas without a local gas plant  Moving towards a potential field trial in Permian?  Gas-to-electrical power is becoming “brighter”.  Gas powered generator sets on rigs  Gas to E-power for lift operations in some cases.  Potential for stable end-of-transmission-line grid electric supply. GAS TREATING PROJECTS 3