EAGLE FORD COMPLETIONS LOOKBACK

SPE WESTSIDE, FEBRUARY 2013

Todd Bush713.936.9290

todd.bush@energentgroup.comhttp://www.energentgroup.com

Agenda

About Energent Group

Observations and discussion items

Considerations for 2013

Questions and answers

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Objectives: Share information and trends in Eagle Ford data Provide data for your next benchmarking project Demonstrate relationships for points of interest

in the well completions process

Observations & discussion items

Review concentration of permit activity and possible peak in activity based on trends

Interpret well completion activity that has low correlation to permit or rig activity where as permits and rigs have (0.8) strong correlation

Relate choke size to initial production to find patterns

Confirm anecdotal evidence for proppants; most frequent is 20/40 frac sand but others widely used

Discuss implications of typical casing sizes, which ranges from 4” – 9” for unconventional completions 3

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Historical drilling permit activity

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Oil

Gas

1 22 33 44 55

Possible peak in drilling permits?

Source: Data is from Texas RRC

Top 5 counties driving permit activity

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1 22 33 44 55

Source: Data is from Texas RRC

La Salle, Karnes, & Webb lead strong Rig activity

6Source: SmithBits Rig Count

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How many wells drilled but not completed?

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0

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Permits Rigs Completions

Permits increase by an average of 9% each month

46 Permits per month

18 Completions per month

Backlog growing by ~15 each month

Low correlation (0.2) between well completions and drilling permits and rig activity

Spotlight on La Salle

11 2 33 44 55

Source: Data is from Texas RRC and SmithBits

New well completions dominate Q4 activity

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COUNTY OIL GAS TOTAL

SHARE PCT

La Salle 85 21 106 16%Dimmit 55 33 88 14%Karnes 60 22 82 13%

McMullen 61 7 68 10%De Witt 24 23 47 7%

IP RETEST

RECLASS TO

INJ

RECLASS TO GAS

RECLASS TO

OIL

WELL UPDATE

Deepening 1 1 - -- -

New Well 653 - - - 1 511

Other 90 9 21 1 6 158Plug back 1 2 - - - 5Reentry 1 - - - - -

COMPLETION ACTIVITY SUMMARY

TOP COUNTIES 70% OIL COMPLETIONS

Gas Oil

11 2 33 44 55

Source: Data is from Texas RRC in October through December 2012

CHOKE SIZE COUNT AVG IP

8/64 17 51414/64 11 78212/64 9 91011/64 7 51216/64 4 765

OIL IP’S BY CHOKE SIZE

Operators are under 30 day completion turn-

around times and showing signs of

reducing the variability in the process

COMPANY COUNT PCT MIN

DAYSAVG DAYS

MAX DAYS

STD DEV

Marathon 31 22% 13 27 98 20.0Murphy E&P 29 21% 2 23 64 18.4ConocoPhillip

s24 17% 14 21 31 4.7

Plains E&P 17 12% 4 27 87 19.2EOG 12 9% 13 18 29 5.2

LEADING OPERATORS

Operators driving efficiency in Karnes county

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Choke size likely dictated by operator

practices in the region

Source: Data is from Texas RRC in October 2012

Choke size concentrated in 10-16/64

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IP to Choke SizeDistribution of Choke Size

11 22 3 44 55

Bigger is not necessarily better. 10/64 -16/64 accounts for 47% of the total with 12” averaging 775

BOPD

Source: Data is from Texas RRC in October through December 2012

20/40 frac sand used more than all others

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40/6016/4014/3050/5018/4030/5016/3012/2010/2040/7020/40

020

040

060

080

010

0012

0014

0016

0018

00

Proppant Usage Across Counties What impact does

proppant have on initial production and EUR?

Is there a strong correlation between the type of proppant and location or depth?

Is there enough data and evidence to suggest a ‘best practice’ or even a preferred practice?

Questions & Implications

11 22 33 4 55

55%20%

22%

Source: Data is from Texas RRC January 2011 to May 2012

Casing size data confirms anecdotal evidence

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Anecdotal evidence indicates 4” – 9” as typical for unconventional well; confirmed by data

Does 10 3/4” and 13 3/8” indicate trial well completion designs?

Is there evidence of a standard well construction in certain areas?

Questions & ImplicationsTop 10 Casing Sizes by Count

Source: Data is from Texas RRC in October through December 2012

Observations & discussion items

Review concentration of permit activity and possible peak in activity based on trends

Interpret well completion activity that has low correlation to permit or rig activity where as permits and rigs have (0.8) strong correlation

Confirm anecdotal evidence for proppants; most frequent is 20/40 frac sand but others widely used

Relate choke size to initial production to find patterns

Discuss implications of typical casing sizes, which ranges from 4” – 9” for unconventional completions 13

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4

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Summary and considerations for 2013

Utilize permit trends as a leading indicator of rig activity systematically instead of on ad-hoc basis

Anticipate drilling programs to stay in place for 2013 unless there is sharp decline in commodity prices

Monitor well backlog (drilled not completed) to gauge efficiency of operators to get wells on production and to forecast servicing company revenue

Determine influencers of completions engineering to understand the preferred equipment and materials

Expect efficiency and cost drivers to lead operators to further integrate lean supply chain initiatives with partners

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ANALYTICS AND DATA SERVICES FOR UPSTREAM

RESEARCH DATA SERVICES APPLICATIONSExecutive Weekly Briefing

Completions Activity Report

D&C and Well DashboardsO&G Data Subscriptions

Data Mining & Consulting Well Lifecycle