PowerPoint Template AWS

Activity & Opportunity SCOOP - STACK

Stephen Ingram

© 2017 Halliburton. All rights reserved.

United States, Activity Nov 24, 2017 (Source Halliburton)

 1058 land working rigs (815 horizontal wells)

 401 active operators, 237 (59%) have only 1 active rig

© 2017 Halliburton. All rights reserved.

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Comparison of U.S. Downturns (Monthly) – 5 Years After Peak 1.3 2014-Present 1982-1987 1984-1989 2008-2013 1997-2002 2001-2007

1.2 1.1

Indexed Rig Count

1.0 0.9 0.8 0.7 0.6

-41%

0.5

-51%

0.4

-56%

-75%

0.3 0.2

-79% 18 Months

0.1 0.0 0 Source: Baker Hughes, through 11/3/2017 © 2017 Halliburton. All rights reserved.

10

20

-85% 30 Months 3

40

50

© 2017 Halliburton. All rights reserved.

Source: Halliburton & Drilling Info

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4,067 4Q13

4Q17

3Q17

2Q17

9,905

8,515

7,506

6,658

5,815 4Q16

6,222 5,701 1Q17

7,355

7,735 6,888 3Q16

2Q16

1Q16

4Q15

3Q15

8,537

8,809

7,665

Deferred Completions

2Q15

6,261

5,230

Normal Working Inventory

1Q15

4Q14

3Q14

2Q14

4,326

4,101

3Q13

1Q14

4,053

2Q13

4,688

5,123

4Q12 1Q13

5,110

3Q12

5,618

2Q12

7,051

7,681

7,411

7,150

6,644

5,704

5,066

3,954

3,641

4,236

1Q12

4Q11

3Q11

2Q11

1Q11

4Q10

3Q10

2Q10

1Q10

4Q09

North America (includes Canada) – Total DUCs

Anadarko Basin, Very Active  Many major formations in progress

 STACK » Oswego, Meramec, Osage, Woodford

 SCOOP » Lower and Upper Woodford

 Over 4,000 HZ completed wells in basin  Vertical depths as great as 15,000 feet

 Future horizontal development may await  Pennsylvanian sandstones and shales  Older carbonates in the Mississippian – Ordovician

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Mississippian Lime

Marmaton

Cleveland Tonkawa St. Louis Lime

CANA Woodford Hunton Limestone

Meramec Cottage Grove

Caney Shale

SCOOP

Granite Wash

Fayetteville

Arkoma Woodford

STACK

Springer Shale

Ardmore Woodford

Barnett Shale

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Kansas HAL Distribution Sand Distribution

 Since 1919  13 product lines  +1500 employees

Oklahoma OKC EL RENO

DUNCAN

Texas © 2017 Halliburton. All rights reserved.

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TULSA

Why the Interest / Excitement? SCOOP/Woodford

Bakken/Three Forks

Eagle Ford

Fairway (mi2)

3,000

13,000

5,000

Depth (ft)

8,000’ – 16,000’

8,000’ – 11,500’

7,000’ – 12,000’

Thickness (ft)

150-400

10-250

100-250

Porosity

5-8%

5-20%

6-9%

OOIP (MMBo/Section)

45-70

60-70

42-49

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Fracture Treatment Examples 3rd quarter 2017 SCOOP Lower Woodford

 Unconventional, nano-darcy permeability (k)

 10,000 ft laterals: 14,600 ft TVD | + 25,000 ft md  5.5” casing 23# P110  42 stages  500,000#/stage  780,000 gal/stage  80 BPM  10,500 psi  0.95 psi/ft frac gradient

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Fracture Treatment Examples 3rd quarter 2017 STACK Meramec

 Zone more conventional: f 10% to 15% k | 0.001md to 0.01md

 10,000 ft laterals: 12,500 ft TVD | + 23,000 ft md  5.5” casing 23# P110  65 stages  380,000#/stage  340,000 gal/stage  95 BPM  10,500 psi  0.9 psi/ft frac gradient

© 2017 Halliburton. All rights reserved.

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Fracture Treatment Examples 4th quarter 2016 STACK Osage

 Zone more conventional/Natural fractures: f 3% k | 0.001 md to 0.1 md

 5,000 ft laterals: +11,500 ft md | 17,000 ft md  5.5” 17# P-110  25 stages  240,000#/stage 1200 #/ft  300,000 gal/stage 1500 gal/ft  80 BPM  8000 psi  0.7 psi/ft frac gradient.

© 2017 Halliburton. All rights reserved.

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Conclusions / Opportunity        

Expansion of Arkoma Basin Woodford (nat gas) Continued Step Out Appraisal Infill Development Optimization Efforts  Lengths, Density, Treatments Excellent Infrastructure (Road, Rail, Water) Increasing Connection to Market (pipeline) Supportive and Knowledgeable Community Highly Competitive  Large Operator Count  Mature Supply Chain

© 2017 Halliburton. All rights reserved.

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© 2017 Halliburton. All rights reserved.

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