Solving challenges. Drill out solutions Package

Drill out

s o l u t i o n s

P a c k a g e

Why Choose Halliburton for your

Drill Out Challenges?

Engineered solution package coupled with next

generation surface equipment to maximize efficiency,

safety and effectiveness of cleanouts.

Halliburton

the same legendary service, with enhanced focus on completion efficiencies.

We understand our customers face many challenges. Improving returns on your assets, mitigating the decline of major fields, maximizing well productivity and operating efficiently, to name a few. With that in mind, Halliburton formed a new product service line, Production Solutions. Our focus is to deliver customized intervention and completion solutions that maximize production efficiency and recovery. Our Drill Out Solutions package includes a customized approach to well completions. We maximize efficiencies through our next generation coiled tubing and pumping equipment. Our average rig-up time has been reduced by as much as 50%. Moreover, with our extensive testing of fluids, we help ensure the success and effectiveness of any plug mill out/wellbore cleanout. We engineered the best fluid for lubricity and viscosity characteristics, to help transport sand/plug or debris from the well. Consequently, we have proven the reduction in the number of short trips, reducing time on location and ultimately your costs.

And we provide an integrated approach so you have one point of contact for your job. Inquire about our Drillout Solutions at [email protected].

WHat is a Drill out solutions Package?

A complete Engineered Solution package that is designed to help customers increase their completion efficiency and reduce cost.

components of Drill out solutions Package

® ™ Flo_w ba_{ck P} lugs Fluid Syste m To ol s Pro pSto p Se rvic e Enhan

ced QuikRig CT Unit AMP 1600 P

ump ing T

rail_er

the solution package

can be used to drill:

• Plugs or sleeves after the fracturing treatment

• cement

• sand plugs

• sand or Proppants

One Complete

Solution Package that

offers increased

economic completion

efficiency and more

synergy between

different services.

CT

Pumping

Trailer

BHA

Fluid

Plugs

Flowback

PropStop

Service

Halliburton Has all tHe comPonents to make it HaPPen

Currently, different service providers or vendors provide different services on location during the plug drill out or cleanout operations. This can create complexity, reduced efficiency, and higher cost. Halliburton has all the different services available that are needed for any plug drill out or wellbore cleanout challenge. We have the technology, experience and resources available to address your needs. Our Drill Out Solutions Package can help you increase economic completions efficiency and provide more synergy between different services on location.

Above all, simplicity for all services with a single point of contact.

WHat is a “Plug Drill out engineereD solution?” over 90 years of science and engineering behind our solutions.

With our highly experienced personnel and engineering capabilities, we can customize the drill out solutions package to meet your needs. Our fluid system is lab tested for lubricity and viscosity to help make sure it has the necessary suspension and friction reduction (hydraulic and pipe on pipe) characteristics that are required for the job. Our highly trained and experienced engineers analyze well characteristics and use advanced predictive modeling to determine the most effective solution to maximize efficiency and effectiveness of cleanouts. This helps us deliver safe, reliable, cost-effective and efficient solutions for virtually any operational and drill out challenge.

A few examples of our engineered solution are given below: Pre-job modeling utilizing IWI software

• Engineered CT String design to access longer laterals

• Tailored and lab tested fluid rheology for optimized velocities and enhanced cleanup

• Hydraulics and forces modeling to help determine rate, pressures and lock-up issues

• BHA selection to match fluid rates, isolation barriers, and extended reach targets

• Detailed job procedures in consideration of all information above Real Time decision making

• Real time monitoring and data acquisition of critical job parameters

• Real time fluid diagnostics and changes

• Real time monitoring of “key indicators” to determine short trips Post Job Analysis

• Compare model results to actual field data

• Implement lessons learned

• Fluids report with details on fluid and additives usage and inventory

Surface Weight (lbf) Run (Non tapered pipe_1) – Weight [Trip In/Out]

Project Name: Extended Reach with Pipe Sensitivity

-75000 -50000 -25000 0 25000 50000 75000 Depth (ft) 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 Lockup 1 Trip In 1 Trip Cut 1 Yield 1

Drill out solutions Package components

enHanceD Quikrig® _{coileD tubing system}

The next generation coiled tubing system is designed to enable faster rig-up and enhance safety.

The CT spread is suitable for coiled tubing applications in both new and mature fields and offers several benefits:

Enables faster rig-up

• Significant reduction in rig-up time Improves efficiency

• Pre-assembled well-control stack significantly reduces rig-up time Enhances safety

• Mast trolley system reduces the possibility of dropped objects

• Reduces need for working under suspended load

The new coiled tubing unit is especially suited for frac-plug mill-outs due to its large-capacity well-control stack (up to 5 1/8-inch 15K) and its ability to contain a full milling BHA in its riser stack.

The CT spread has several unique features:

• Versatile reel trailer can accommodate both V95K and new 125K injectors on tilt trailer

• Unique mast design enables a large variety of well-control package sizes with varying riser-stack lengths to be mounted on the trailer, ensuring a customized solution to nearly all of your operational challenges

Drill out solutions Package – components PropStop Service Pumping Trailer

Plugs Fluid

Flowback BHA

amP™ _{1600 PumPing trailer} increased Horsepower and reliability with smaller Footprint

The next generation pumping trailer, is a high-horsepower pumping unit combining liquid additive storage, dosing, mixing, and pumping onto a single chassis designed specifically for coiled tubing applications.

Increased reliability

• Two independent and ambidextrous pumping systems, each with their own hydraulic systems

• HT-400TM _{triplex pump fitted with 4.0 in. fluid ends}

delivering approximately 8bbl/min at 3,500 psi for each side

Reduced footprint and personnel

• Single trailer design eliminates the need for additional tote, pumping trailers and mixing plants

• Trailer is fitted with two completely separate mixing systems offering 100 percent redundancy in operations

• The trailer carries 3 UN31A approved stainless steel transport totes enabling gels or friction reducers to be carried on the trailer

Reduced Cost

• No additional 3rd party mixing plants required on locations PropStop Service Plugs Fluid Flowback CT Pumping Trailer BHA PropStop Service Plugs Fluid Flowback BHA CT Pumping Trailer

Drill out solutions Package – components Drill out solutions Package – components

comPlete bHa Package From tHru-tubing tools

Halliburton has a broad inventory and range of fishing, milling and other specialty tools that are specifically designed for thru-tubing applications.

Standard CT Tools Horizontal Toe Prep

Tubing Conveyed Perforating (TCP) Conveyance Tools Milling and Cleanout

• Remove composite, CIBP or ball seats in sliding sleeve systems

• A broad selection of mills and bits to address each particular plug and well conditions

• Cement and scale in casing of production tubing / nipple removal Fishing Services

coilsWeeP™ FluiD system an engineered Fluid system

The success and effectiveness of any plug mill out/wellbore cleanout depends on the fluid system’s characteristics, especially in the case of horizontal and extended reach wells. Our CoilSweepTM _{fluid system combines CT expertise and fluid}

technology for optimum cleaning efficiency. We did an extensive research and lab testing to engineer our fluid system

• Lubricity testing to select the best hydraulic and pipe-on-pipe friction reducers that can help reduce surface treating pressures, get desired rates through CT and help CT access extended reach laterals

• “Mimic viscosity” testing to make sure that the selected gel has the suspension and transport characteristics that are needed to carry/remove the sand/plug or other debris from the lateral

an oPtimizeD FluiD system solution achieving economic completion efficiency

Our CoilSweep fluid system is tailored and engineered to have a better rheology.

The optimized fluid system will help operators increase efficiency by reducing or eliminating the number of short trips in between plug drill outs or sand cleanouts while maintaining safety and cleaning effectiveness.

This will help reduce:

• time on location • cost • fluids used • running footage

Fluid system with better rheology

optimized suspension and cleaning characteristics

reduced number of short trips

reduce time on location

cost

eFFiciency

Drill out solutions Package – components PropStop Service

Plugs Flowback CT Pumping Trailer BHA Fluid

Drill out solutions Package – components

components of coilsweep™ Fluid system

• Effective either in fresh water or in water containing total dissolved solids (TDS) up to 250,000 ppm. • Residue free

• Better cleanup / regain permeability as compared to FR-66 friction reducer

• It is a liquid and will not screen out of the system.

• Suitable for applications up to 300˚ F

• Provide excellent suspension and hole cleaning properties • Easy to mix

• Helps minimize formation damage High salt tolerant Friction reducer Pipe on Pipe lubricant

coilsweep

obsiDian® _{anD Fas Drill}® _Plugs

• Unique composite material with no metal content provides for ease in drilling

• Enhanced reliability allows run-in speeds in horizontal sections up to 250 ft/min and speeds in vertical sections up to 450 ft/min

• Halliburton’s pump down calculator evaluates run-in speeds and pump rates to help ensure successful plug deployment

• Allows flow back from below plug

• Saves rig time and reduces casing damage caused by long drill-out processes

• Lower pin design prevents plug-off from below

• Ideal for vertical, deviated or horizontal wells

• Excellent drill-out times

• Available in 4 1_{⁄2-in. and 5} 1_{⁄2-in. sizes}

FloWback

The intense activity in onshore shale exploration and

production with increasingly complex well designs has heightened the need for reliable and safe equipment. Operators can count on Halliburton to deliver the highest standards of pressure control and flowback services to help provide the safest and most reliable technology available, designed entirely to deliver the highest level of efficiency to optimize your production.

High-pressure operations demand equipment that operates flawlessly. For well control, snubbing and production cleanup, we offer rental equipment that meets our tough standards and the HPHT requirements for deep wells and unconventional plays.

• Our highly trained and experienced pressure control experts are on location all the way from assembly to project execution, operating and maintaining the equipment to our stringent safety and reliability criteria throughout the project

• This enhances safety and reliability during the operation

• We offer a more complete line of pressure control services

• Our equipment meets all API, PSL3, H₂S and NACE guidelines, and is specifically designed for difficult, high-pressure/ high-temperature operations PropStop Service Fluid Flowback CT Pumping Trailer BHA Plugs

Drill out solutions Package – components PropStop Service

Fluid Flowback CT Pumping Trailer BHA Plugs

We can perform the PropStop treatment service at the end after drilling out all plugs or after wellbore cleanout in the same trip. This capability offers operators several benefits:

• No need for separate treatment

• Significant reduction in cost and time for treatment as compared to performing a separate individual treatment

• Increased efficiency

• Effective placement through Coiled Tubing as compared to bull-heading from surface

• Pulsonix® _Simulation

Technology to be incorporated in the future in highly effective way

aDDress ProPPant FloWback issues in same ct triP

Propstop® _{Proppant Flowback control service}

Proppant flowback and formation fines production cost operators millions of dollars every year through loss of production and expensive equipment damage. Wells experiencing these problems require remediation from routine wellbore cleanouts, to expensive artificial lift equipment repairs. Halliburton’s PropStop® _{service addresses these challenges by providing}

proppant flowback control in a safer and easier to use system.

• Provides cohesion between proppant grains without damaging permeability or conductivity of proppant pack

• Helps maintain highly conductive fractures and long-term productivity

• High flash point makes system easier to manage

• Easy cleanup, no special solvents required on location for equipment cleaning

Photomicrograph of proppant coated PropStop ABC agent.

Notice that the material migrates to the contact points of the proppant grains

DiFFerent Versions oF Drill out solution Packages

solution packages can be tailored and customized to meet the needs, improve efficiency and roi.

Package a

Package b

Package c

Package D

EQR CT Unit

AMP 1600 Fluid Pump

BHA

Fluid System

EQR CT Unit

AMP 1600 Fluid Pump

BHA

Fluid System

+

Flowback

EQR CT Unit

AMP 1600 Fluid Pump

BHA

Fluid System

+

Flowback

Plug

EQR CT Unit

AMP 1600 Fluid Pump

BHA

Fluid System

+

Flowback

Plugs

PropStop Treatment

Drill out solutions Package – components

Pulsonix® _{TFA tool is equipped with} both side and bottom ports for direct impingement on perforations.

HoW Will it beneFit tHe customer?

reduced cost no need for additional 3rd party mixing plants

less fluids used less time of location reduced running footage

and cycles technology

optimized Fluid system engineered ct string design

to access longer laterals Pre-job modeling using iWi

on-site fluid testing address proppant flowback

issue in same trip

reduced safety risk eQr benefits enhanced collaboration and familiarity reduction of personnel exposure improved efficiency

less time on location enhanced cleaning

characteristics single point of contact

improved time to production

customer

Potential time anD cost saVings For customers by utilizing neW engineereD Drill out solutions Package

Assumptions for a typical Plug Drill Out Job in Eagle Ford:

• 2" CT

• 18,000' MD (11,000' TVD)

• 16 plugs to drill

• Comparison between a drill out run with 3 short trips (drilling 4 plugs each time) vs. a drill out run with no short trips

• Our engineered approach to drill plugs help reduce or eliminate the need for short trips

total running Footage

Cost savings of $10,000 – $12,000 depending on footage charge based

on internal pressure

total time in Well

CT equipment and personnel depending on pricing

maximum Pipe Fatigue added

More pipe life

336,000' total footage possible instead of 200,000’

total Fluid Volume Pumped

Decreased by 32.2% 1,033 bbls saved is two frac tanks

WHy Halliburton?

When you put competent people, innovative surface equipment, and engineering together, you get results – effective cleanouts while enhancing safety and efficiency. Key Values:

• Reliability

• Efficiency

• Next generation surface equipment

• Fewer equipment failures – less time in hole

• Tools inspected and re-dressed after every job to manufacturer’s specs

• Optimized and engineered fluid system

• Extensive training for field personnel

• Tailored solution package for challenging conditions and needs

• Safety as a value, not just a priority

• Multiple layers of support through engineering designs.

We provide more than tools and equipment.

We provide solutions!

www.halliburton.com

Sales of Halliburton products and services will be in accord solely with the terms and conditions contained in the contract between Halliburton and the customer that is applicable to the sale.

H010918 01/2015