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High Performance Mud Logging Package

Accurate data increases reserve adds and optimizes production Technology Innovation drives efficiencies in a low cost environment

David Tonner

© 2018 Diversified Well Logging LLC. CompanyConfidential Information

XRF / XRD• Geosteering• Geostopping• Optimizing Completions

TOC• HC Generating Potential

Mass Spec and Constant Volume Extraction•Fluid Typing•Fluid contacts•Compartmentalization / pathways•Rel K / natural fractures

Geochemistry Services

Diversified knows that rocks and hydrocarbon gases matter:

We a vast knowledge of mudloggingoperations and laboratory equipment and bring it to the wellsite.

Can be used alone of as part of your complete laboratory program.

DWL’s Geochemistry services offer critical time sensitive information for unconventional and conventional wells.

Geochemistry ServicesXRF Spectro Scout Best Portable bench top on the market

Example Deliverable Geochemical log

Experienced Field Personnel with world class Interpretation expertize

Example Well

Total Organic Carbon (TOC) measurement of carbon content present in well cuttings samples. Samples are combusted using the Leco C744 the latest and most advanced carbon determinator for oil and gas applications. The concentration of organic material in source rocks as represented by the weight percent of organic carbon. Samples are powdered, weighed, for two tests TC measures both inorganic and organic carbon, the TOC sample is chemically treated prior to analysis to remove the inorganic carbon (carbonate) from the rock.

For both tests the sample is combusted in the presence of excess oxygen, allowing carbon dioxide to form from the free (organic) carbon in the rock.

The amount of carbon dioxide is directly proportional to the amount of carbon in the rock. The two tests yield Total Carbon (wt%) and Total Organic Carbon (wt%) from these carbonate (wt%) can be calculated.

Geochemistry Services

LECO TOC

Improves well placement, drilling and completions

• Best in Class measurements• Rigorous Calibrations against standards are run on

a regular basis• World Class Interpretation expertise

• Experienced staff with over 60 years combined experience

• Experience of staff brings real time relevancy to the data• Mudlogging and geochemical labs background

fused to bring optimized service• Integration with ARM for high resolution rock

collection• Automated Remote Mudlogger can automatically

collect samples at high frequency

The DWL Difference

Traditional Sample Collection & Analysis

Mudlogging Geologist/ Sample CatcherCollects the sample from the Shale Shaker And conducts some preliminary sieving and cleaning

The Mudlogging GeologistWill then make a visual inspection of the Sample under a microscope and make An estimation of the % of each lithology present

Samples are bagged, labeled, shipped then stored

TypicalMudLog

HS & E Risk

One of the key risks Associated with mudloggingIs slips trips & falls. The repetitive nature of Collecting the samples manually, presents a significant risk.

The ROP Challenge

600

Manual Sampling Frequency at 240 ft. / hr. and one sample every 20 minutes – 80 ftresolution

ARM Sampling Frequency at 240 ft. / hr. and one sample every 1 minute – 4 ftresolution

• Higher resolution rock collection and record

• Improved stratigraphic correlation

• Improved understanding of geo-mechanical properties

• Assistance with picking landing zones

• Improved wellbore containment

• Optimized Completions

Qualitative Sample Analysis

The visual inspection and estimationOf the rock composition is qualitative And can vary from logger to logger, day Shift to night shift, well to well.

• ARM* = AUTOMATION

• Industry only fully automated sample collection device

• Sampling triggered by lag calculation via WITS

• Stores up to hold up to 350 samples for later retrieval

• Real time access for process control and images

* Patent Granted

Automated Remote Mudlogging Device

ARM – Automated Remote Mud Logging – What is it?

Sampling Points

Extraction ARM

NEMA 4 ExplosionProof Housing

Aggregate SampleBoard

ARM – Automated Remote Mud Logging

Sample Collection device UV Light

Return Flow to pits

Industrial Seal wrap

High Resolution Digital Microscope

Sample Collection Reel 350 Samples/ Reel

Sample Intake House

Water/Diesel Intake Lines 2.25GPM

5 Minutes to Change Reel

635um Mesh

WITS Fed Depth drives Drum and Internal DAQ Calculates LAG

Realtime & Post Well Sample Evaluation

UV light for fluorescence Each sample is labeled and stored for further analysis

Dual Resolution Images

XRF Measurements on Drill Cuttings

Sample Quality Depth Control

• Are the cuttings on depth?

• Do they represent the interval drilled?

• Elemental GR (U+K+Th) vs MWD GR

Redox Elements Proxy for TOC

+H2SNo H2S

Excellent Correlation Between Trace Metals Ni and TOC. Discrepancy with V shows need for basin specific calibration.

XRF Run on ARM collected samples Compared to

High Resolution XRF on a core

Green lines are XRF measurement taken on this cored section showing very strong agreement with ARM collected samples analyzed with XRF.

ARM samples collected at 5-10 ft Intervals.

•Real-time viewing of images •(remote Co. Geologist, Co. Man, Mud Logger

•High frequency samples at high ROP’s•Accurate samples of interval drilled•10-30 grams per sample•26 wells completed in total•Reduced personnel onsite•Reduced exposure to hazards / risks•Weather agnostic

Integrated Automated Mud Log

© 2018 Diversified Well Logging LLC. Company Confidential Information

Target Zone for LandingLateral

DWL XRF Elements Geochemical Log

RT Geochemical XRF measurements

• EGR vs MWD GR

• Modelled Mineralogy

• TOC Proxies• Stratigraphic

Zonation

Applications• Pick Landing zones• Geostop• Geosteer• Pick Casing Points• Identify Cavings• Pick Well TD• Optimize Completions

XRF used to Identify Kick off point for lateral

Geosteering with XRF and GR

17

Eagleford Lateral Well

Chemostratigraphy, Mineralogy, Brittleness, & TOC Derived from Cuttings-Based Elemental Data

Eagle FordAustin

From Tonner et al. 2012

Application : Optimize Frac-stages for “Engineered Completions” designs

Potential for Personnel Reduction Lower cost lower HSE risk

ML

Sample Catchers

24/7 RTOC

• Remote ML• Geo-steering• Remote DD / Survey Management /

Anti-Collision Monitoring

Service Efficiency Evolution

12/03/2015 © 2015 Diversified Well Logging LLC. CompanyConfidential Information 16

Our Contact Info

Written Remarks

YouOverview Every

Correlation

Well Bore Positionvs.

Target

Bed Dip, DipDirection

TVD toImportant

Targets/Tops

Quick MWD Data

Quick LWD Data

Instant Visual of Pertinent Data

2D Geosteering

DWL Geosteering

Cloud based real time web application for GMXsteering integrated GR/XRF and Geo-mechanical Properties

Look ahead of the Bit Steering

Completion Optimization While Drilling (COWD)

Geometric Completion Design Problem Stage no. 2 based on Shmin heterogeneity