1. November 2006POSC Data Management SIG / WIS Work Group1 Global Unique Well Identifier (GUWI) Initiative GUWI Steering Team Meeting 30 October 2006 POSC Special Interest Group Meeting 7 November 2006 Core Team: John AdamsConocoPhillips Alan DonigerPOSC Kristine Gibbons Shell Mark Stehm ExxonMobil

2. November 2006POSC Data Management SIG / WIS Work Group2 Agenda 1. Welcome and Introductions 2. Review Meeting Objectives 3. Update on progress 4. Well Identity Service Agreement (POSC-IHS) 5. Well Identity Service Work Group 6. Review and Agree on Next Steps 7. Questions and Open Discussion

3. November 2006POSC Data Management SIG / WIS Work Group3 Continuing Steering Team A2D Rob Gibson BP Savannah Arnold Chevron Yaw Adu ConocoPhillips John Adams Deloitte Graham Sadler ExxonMobil Mark Stehm Fugro-Robertson Simon Kendall IHS Energy Nick Duncan Steve Cooper Marathon Damon Simmons Nexen Pat Ryan POSC Alan Doniger Shell Kris Gibbons Tobin Martin Schardt MMS Chris Gaudry Wood Mackenzie Charles Mitchell

4. November 2006POSC Data Management SIG / WIS Work Group4 Oct. 30 Team Call: Meeting Objectives Communicate progress on the GUWI initiative Formally launch the Well Identity Service Work Group (WIS WG) Call for participation and sponsorship of WIS WG Identify issues and concerns to be addressed

5. November 2006POSC Data Management SIG / WIS Work Group5 Steering Team Meeting Decisions Operator Sub Group 8 May 2006 The GUWI steering group endorse the Unique Well Identifier established by IHS Energy as the Global Unique Well Identifier for the E&P industry (for wells outside USA and Canada) That the proposed RFP process be suspended and that negotiations progress with IHS regarding operation of the GUWI service That POSC (on behalf of the GUWI Steering Team) sign a Letter of Intent with IHS documenting the key aspects of the GUWI service and the intent to establish a contractual agreement for IHS to operate the service

6. November 2006POSC Data Management SIG / WIS Work Group6 IHS – POSC Letter of Intent 15 August 2006

7. November 2006POSC Data Management SIG / WIS Work Group7 Key Agreements 1.Documents the intention of IHS to contribute the IHS “international” identifier to the Public Domain 2.Recognizes IHS as provider of the GUWI service for an initial period of three years 3.Recognizes POSC as the body responsible for managing the public well data on behalf of the E&P industry 4.Recognises the role of a Well Identity Services Work Group to oversee the service 5.States that future well data will be released as public unless the registering organisation specifies otherwise 6.Commits the parties to work with the Steering Team to establish detailed terms and conditions

8. November 2006POSC Data Management SIG / WIS Work Group8 Current IHS Service POSC SIG June 2006 Master Well Index We will initially populate the MWI with all of the IHS Energy wells in the Canadian, US, and International databases; these will be flagged as proprietary. Over time, we will add to this data on new and unique wells provided to us by customers; these will be flagged as public. New and unique wells added through IHS Energy research and accumulation processes will continue to be flagged as proprietary.

9. November 2006POSC Data Management SIG / WIS Work Group9 Current IHS Service POSC SIG June 2006 For our customers: We will deliver the full MWI for the regions that they subscribe to. We will deliver records flagged as public for the areas that they don’t subscribe to. The proprietary content of the MWI will remain the property of IHS Energy covered by existing data contracts. For non-customers: We will make the records flagged as public available

10. November 2006POSC Data Management SIG / WIS Work Group10 Current IHS Service

11. November 2006POSC Data Management SIG / WIS Work Group11 Agenda 1. Welcome and Introductions 2. Review Meeting Objectives 3. Update on progress 4. Well Identity Service Agreement (POSC-IHS) 5. Well Identity Service Work Group 6. Review and Agree on Next Steps 7. Questions and Open Discussion

12. November 2006POSC Data Management SIG / WIS Work Group12 Well Identity Service Agreement The Well Identity Service will be provided by IHS under contractual agreement with POSC (on behalf of the E&P industry) The agreement will include the definition of services, service levels, terms and fees –Registration of new wells and issue of GUWI –Matching of existing well and assignment of GUWI –Provision of public well data set –... Details of services and service levels to be defined by the WIS Work Group

13. November 2006POSC Data Management SIG / WIS Work Group13 Well Identity Service Roles Query Request POSC Data Mgt. SIG Alignment with other E&P standards IHS Service Provider Registration Request WIS Work Group Service definition, Industry alignment, Adoption, Funding POSC Organization Contract Holder Public data custodian

14. November 2006POSC Data Management SIG / WIS Work Group14 WIS Work Group Role –Advocate, define requirements, initially review, and promote industry standards that support the GUWI initiative –Advise POSC on services to contract to support the GUWI initiative Membership –Open to all organisations –Sponsoring member Provide funding through membership fees (based on company revenue) Voting rights on budget and major service changes –Participating member Participation in Work Group meetings Contribute resources and expertise to activities

15. November 2006POSC Data Management SIG / WIS Work Group15 SIG and Initial Work Group Fees Annual RevenuePOSC Member Data Mgt SIG Fee for all of 2007 * POSC Non- Member Data Mgt SIG Fee for all of 2007 WIS Work Group Sponsor Fee $100 billion +$14,400$28,800$40,000 $10 billion +$9,900$19,800$20,000 $1 billion +$4,950$9,900$10,000 $100 million +$1,800$3,600$5,000 Others (for profit)$1,000$2,000 Non-profit$1,000$2,000$5,000 Large Regulator$1,200$2,400$5,000 * POSC members who have the “SIG Package” pay no additional Data Mgt SIG fee.

16. November 2006POSC Data Management SIG / WIS Work Group16 WIS Work Group Agreements Work Group membership agreement with POSC is required Both POSC members and non-POSC members can join Sponsoring members must be participants in the Data Mgt. SIG Required documentsPOSC & DM SIG Member POSC Member POSC non member POSC Non-member participation agreement Yes (if not already a SIG member) POSC Data Mgt. SIG Participation addendum YesYes (if not already a DM SIG member) WIS Work group participation addendum Yes Full documentation at: http://www.posc.org/sig/dss/oct06_wiswg.htmlhttp://www.posc.org/sig/dss/oct06_wiswg.html

17. Business Case Template for Support of Global Unique Well Identifier Use by Operators Work-in-Progress by Mark Stehm, ExxonMobil Kris Gibbons, Shell

18. November 2006POSC Data Management SIG / WIS Work Group18 Sample Template  Business Case Some companies, maybe all, will want a business case documented for the use of the industry standard GUWIs in their database(s) and business transactions The purpose of this template is to help get started on that business case document You can use as much or as little of it as you need The final document will be available at www.posc.org

19. November 2006POSC Data Management SIG / WIS Work Group19

20. November 2006POSC Data Management SIG / WIS Work Group20 Introduction POSC ~ IHS ~ GUWI ~ Services Purpose of “Identifier” –Single source for a unique code that can be used by all operators, service companies and data providers to tag information for delivery to a customer. –This will facilitate matching data from multiple sources –This will reduce the likelihood of errors  improved performance and data quality

21. November 2006POSC Data Management SIG / WIS Work Group21 Table of Contents Background Process Investment Risks Benefits Appendix: Data Elements

22. November 2006POSC Data Management SIG / WIS Work Group22 Background Problem –~ 4 million oil and gas wells, world-wide. –Status: from very old P&A through active producers / injectors to currently drilling wells. –Regulatory agencies assign well id/names. –Id/names change due to Sales Unitization Life cycle changes Etc.

23. November 2006POSC Data Management SIG / WIS Work Group23 Background Problem (continued) –Difficult to merge well data –Difficult to merge or compare data from multiple sources –DM staff and geoscientists & engineers must perform matching process to make use of data –Matching can occur multiple times over the life of a well –The challenge of matching may prevent the most current data from being loaded and made available –Manual matching wastes time and money

24. November 2006POSC Data Management SIG / WIS Work Group24 Background Solution –Single identifier –Assigned in a consistent manner –By one service –For every well in existence Condition of Success –Use of the GUWI must become wide-spread to achieve automated matching of well data from multiple sources. Result –More efficient and consistent transfers within the operator’s organization, with partners, with service companies, with regulators.

25. November 2006POSC Data Management SIG / WIS Work Group25 Process Current Wells –Operator is responsible for the well data Knows the quality of the data –Operator provides mandatory data element values to the Registration Service –Registration Service assigns GUWI and provides GUWI to Operator. Data stored in Public Well Index file, available to industry –TIGHT WELL PROVISION. Operator may declare well as ‘tight’ up to a designated date. –NON-PUBLIC PROVISION. Operator need not declare well data “public.” Any data element values given to Service Provided kept as proprietary.

26. November 2006POSC Data Management SIG / WIS Work Group26 Process Legacy Data –For older wells, any industry company may send data element values to Matching Service. Match OK. Existing GUWI returned. Match Not-OK. Operator may use Registration Service … –If Operator sends data for matching, data element values may be added to Public Well Index. –NON PUBLIC PROVISION. Operator need not declare well data “public.” Any data element values given to Service Provided kept as proprietary. –TRANSPARENCY. Matching Service Provider will not retain data element values used only for matching purposes.

27. November 2006POSC Data Management SIG / WIS Work Group27 Investment Cash Costs –Retail use of Services No fees if within usage limits (to be defined) May be fees if bundled with value-added competitive services, e.g. subscription services –Payments to Service Provider to offset cost of delivering industry Standards-related Services Managing Public Well Index Registration Service Matching Service –Funding From WIS Work Group Sponsor Members Separate from POSC dues and SIG fees

28. November 2006POSC Data Management SIG / WIS Work Group28 Investment Manpower –Cost of initial implementation –Software to retrieve Operator data to be sent to Service Provider for Registration &/or Matching Initial format is a spreadsheet Task time: few days including exception handling –Ongoing cost to interact with Service Provider –Summary Few days programming and data management (once) Monitoring on an ongoing basis

29. November 2006POSC Data Management SIG / WIS Work Group29 Risks Release of Information –Must avoid pre-mature release of information. –Options: Do not register Do not provide data element values to Service Provider (as Public Data or otherwise) Declare well to be ‘TIGHT’ for a period of time Government Data Release Rules –Restricted countries –Automatic release after “x” time countries

30. November 2006POSC Data Management SIG / WIS Work Group30 Benefits Overview –Operators use data from many sources for prospecting and surveillance. –Manual involvement in matching data is time consuming and costly, regardless of which type of employee does the work –Time delays in matching processes can have negative impact of performance

31. November 2006POSC Data Management SIG / WIS Work Group31 Benefits Actual Savings –Example. Consider 200 project data stores containing 100,000 wells. One data vendor provides updates weekly. –5% matches need manual reconciliation –5 minutes each Intervention cost = 400+ man-hours per week or 10+ full-time employees. –Example. [Look for other examples that impact positive results rather than cost savings.]

32. November 2006POSC Data Management SIG / WIS Work Group32 Appendix: Data Elements WELLBORE ATTRIBUTES –Mandatory ID Name Parent Id (if not “root” wellbore) Local or regulatory ID/Names Country Surface and bottom-hole LAT/LONG (WGS84, original)

33. November 2006POSC Data Management SIG / WIS Work Group33 Appendix: Data Elements Optional –Status –Content –Spud Date/Kick-off Date –TD –Indicator: Onshore/Offshore –Offshore Block –Field

34. November 2006POSC Data Management SIG / WIS Work Group34 Appendix: Data Elements Registration Data –Company –Contact (Name, Address, etc.) –Access Restrictions Made Public (…) Made Tight (…) –Date Registered –Status (active, superseded by …) –Modification (by, date)

35. November 2006POSC Data Management SIG / WIS Work Group35 Final business case document will be posted on POSC website: www.posc.org Comments or questions, contact: Mark Stehm 281-654-4157mark.r.stehm@exxonmobil.com Kris Gibbons Kristine.Gibbons@shell.com

36. November 2006POSC Data Management SIG / WIS Work Group36 Next Steps Core team to engage prospective members Formal establishment of the Work Group Continue drafting of WIS service agreement, especially: POSC-IHS agree WIS service agreement Continue routine WIS WG / Service Provider Conference Calls

37. November 2006POSC Data Management SIG / WIS Work Group37 Next Steps Core team to engage prospective members –POSC to promote activity (website + Data Mgt. SIG Nov 7) –Template business case to be available in by middle of November

38. November 2006POSC Data Management SIG / WIS Work Group38 Next Steps Formal establishment of the Work Group –Requires agreements from at least four sponsoring members –Election of WIS Work Group Chair for 2007

39. November 2006POSC Data Management SIG / WIS Work Group39 Next Steps Continue drafting of WIS service agreement, especially: –Detailed service definitions, including data elements –Service performance criteria –Service reimbursement policies and procedures

40. November 2006POSC Data Management SIG / WIS Work Group40 Next Steps POSC-IHS agree on the WIS service agreement for the primary service provider –Target: year-end –Can be followed by agreements with secondary service providers Act as agents for their own customers with IHS

41. November 2006POSC Data Management SIG / WIS Work Group41 Next Steps Continue routine WIS WG / Service Provider Conference Calls –October 30 –November 15

42. November 2006POSC Data Management SIG / WIS Work Group42 Agenda 1. Welcome and Introductions 2. Review Meeting Objectives 3. Update on progress 4. Well Identity Service Agreement (POSC-IHS) 5. Well Identity Service Work Group 6. Review and Agree on Next Steps 7. Questions and Open Discussion