Oil and gas companies are pushing for improved performance and better efficiency from service providers

Transcription

1 RIGMINDER TECHNICAL PRESENTATION December 7, 2017

2 Industry Trends Oil and gas companies are pushing for improved performance and better efficiency from service providers Drillers are responding with integrated service offerings and investment in automation and technology Drillers are adding directional drilling, pressure pumping, MWD, well servicing, etc. to add revenue and margins Service providers are investing in robotics, enhanced automation, data-driven drilling RigMinder provides Trinidad a technology platform to add products and services IT'S ABOUT PERFORMANCE 2

3 Trinidad Services Model Goal: Add revenue and profitability with limited capital investment, resulting in improved margins and returns Strategy: Add revenue streams from products and services associated with the drilling process Use data to provide repeatable optimal results Leverage off key position on lease, broad customer base and geographic footprint Independent product and service lines IT'S ABOUT PERFORMANCE 3

4 Added Revenue Platforms Rig specific Rig and drilling monitoring RigMinder EDR Preventative maintenance Communication tools Data analysis Well path and frac optimization Improve wellbore placement and frac results Pursuing software opportunities to optimize completion results Directional optimization Horizontal drilling advisory, Automation, well engineering Criterion bit guidance Real Time Operating Centres Criterion automation Downhole tool integration Enhances overall drilling performance Negotiate deals with premier downhole tool providers Access to state of art technology with minimal investment Add to the value chain IT'S ABOUT PERFORMANCE 4

5 Rig Specific Revenue Platforms RigMinder EDR part of our platform for future technology Near real-time monitoring of rig state and drilling process Ability to integrate with Trinidad s control system Provides access and ownership of data, for in-depth analysis Modular product line to match customer needs Business model Revenue of US$400 US$800+ per drilling day, based on scope of equipment used Strong margins, maintained by existing technicians Low capital cost, quick to build and install IT'S ABOUT PERFORMANCE 5

6 Directional Optimization Revenue Platforms Criterion software solutions to improve directional results Bit guidance successfully tested and operational Real Time Operating Centre (RTOC) monitors drilling from afar Drilling automation integrates rig with control system (IRIS) and bit guidance software Business Model Bit guidance revenue ~US$800 per directional day, software basis drives strong margins RTOC revenue of ~US$1,300 per directional day; growing margins as activity grows Automation being integrated/tested with IRIS IT'S ABOUT PERFORMANCE 6

7 Downhole Tool Revenue Platforms Negotiating arrangements with key tool suppliers Criterion provides flexibility of tool/technology choices Provides install base for supplier, added revenue stream for TDG Downhole tools operated by TDG drillers Business model Flat monthly fee negotiated for MWD kits and mud motors Revenue to TDG ~US$5,000 - US$7,500 per day, solid margins increase as activity grows Cost of directional driller/3 rd party people eliminated Tool supplier responsible for repairs, future R&D costs IT'S ABOUT PERFORMANCE 7

8 Well Path & Frac Optimization Revenue Platforms Future opportunity for enhancing completion results Reviewing software to improve placement of wellbore and frac stages for enhanced production using GMXSteering Signed exclusive contract to test and assess software Business Model Revenue Pre well model US$20,000 US$100,000 per project; Real-time steering US$2,000 per directional day; Frac optimization US$20,000 US$50,000 per project If pursued, additional costs incurred for skilled employees, but expected margins are very strong IT'S ABOUT PERFORMANCE 8

9 RigMinder Technical Presentation

10 The RigMinder Revolution RigMinder with the rig s resources provide the complete platform for integrating multiple revenue generating services. Services Criterion technologies driven by our EDR provides higher margin services: RTOC / Drillers Remote Horizontal Drilling Criterion Automation Drilling Optimization Production focused Geosteering, Frac Design and Completions Partnerships with premier technology providers Reduced risk on higher value performance and turnkey contracts Benefits EDR driven Automation and Optimization technologies and processes provide: Consistent, repeatable performance Improved operating costs Manpower reduction Improved rig fleet efficiencies Problem avoidance Higher margin services and equipment sales with little to no capital investment Rental Drilling tools Well completion equipment and materials 10

11 Benefits For Clients Comprehensive/customized technology solutions Improve rig efficiency, safety and performance Reduction of cost/well Reduction of third party services Optimal well bore placement/geosteering Decreased well bore tortuosity Repeatable results Reduce human errors Greater autonomy thru data aggregation/analytics RTOC directional/horizontal drilling services 11

12 The RigMinder Revolution Data recording Rig/crew management Data analysis and reports Alerts and notifications Data storage and security Communications Internet EDR Criterion Remote directional drilling Motor and RSS control Real-time torque and drag Real-time hydraulics Survey QA/QC, corrections Drilling automation RTOC directives Auto tool face control Slide/rotate directives MPD choke control Automation Engineering Well planning BHA, drillstring engineering Torque and drag Hydraulics Survey program 12

13 EDR Key Enabler for Differentiation Modular design Integration and automation platform Information transmitted wirelessly Easy rig up/rig down Ultra high speed sampling rates (>10K Hz) Optimized offsite data transmission and storage Customized user interface, reporting and analytics 3 rd Party data integration Clients own their data 13

14 Criterion Technologies 14

15 Criterion Drilling Advisory System Enables TDG to run directional drilling services without third-party service company Thoroughly tested by experienced directional drillers Ease of use with integration into EDR Rosebud interface provides clear indication of actual location vs. well plan Provides well steering directives to stay within wellbore plan Monitors execution of directives vs. directives provided Provides constant feedback on well bore progress and performance, allowing full transparency and accountability. 15

16 Criterion Advantages Criterion is a product that now gives Trinidad the ability to provide directional drilling and MWD services directly. A technology that provides positive repeatable horizontal drilling results. Auto rig state detection Auto slide sheet record Continual tool face advisory Continual tool face tracking Accurate motor yield Optimal tool face directives Optimal slide directives Survey QC Total integration with EDR Corrected MSE Optimal weight on bit Optimal GeoSteering to keep you in the zone Optimal rate of convergance Lower tortuosity RSS integration and control Automation integration 16

17 Criterion Automation RigMinder owns the automated steering technology developed by Shell (RigMe) and has integrated into its EDR system (Criterion ) RigMinder has license and the source code to all the drilling automation technology developed by Shell in last 8-9 years (Scada Drill) DART center and contractor personnel that developed and operated the technology are currently employed and contracted by RigMinder on an exclusive basis Objective to start rig automation on test rig in Q Field deployment mid

18 Landing and staying in the optimal zone Completion Optimization While Drilling Stay in zone using FracGeo real time GMXsteering Compute geomechanical logs, pore pressure, stresses, and natural fracture using surface drilling data Adapt the fracing of each stage to the geologic and geomechanical conditions 18

19 GMXSteering Assists in Well Bore Placement GMXSteering places well bore in best part of the reservoir for optimal frac stimulation and production Uses surface measurements to accurately calculate the critical rock geo-mechanical parameters Surface measurements include rate of penetration, revolutions per minute, weight on bit, torque and pressure Rock parameters include pore pressure, rock confined and unconfined compressive strength, principal and differential stress, Young s modulus, Poisson s ratio, shear brittleness, natural fracture density and stress brittleness Information provided immediately after well reaches total depth to maximize time to manage materials, logistics and communications GMXSteering has been fully validated vs actual stimulation jobs and production data 19

20 Input Data and Calculated Results From the drilling data Weight on Bit (WOB) Rate of Penetration (ROP) Rotational Speed Torque Bit Diameter Differential Pressure Pressure at the bottom (ECD) The following rock properties are calculated Young s Modulus Poisson s Ratio Shear modulus Porosity Fracture Index Trinidad Drilling & RigMinder Integration Presentation 20

21 Trinidad Drilling Performance Benefits By implementing RigMinder instrumentation and Criterion drilling & automation, Trinidad Drilling will: Provide Comprehensive Technology solutions Create additional revenue streams Maximize profitability Manage assets near real time Improve rig efficiency, safety and performance Provide repeatable results Provide a more accurate and lower cost well solution Provide RTOC Directional/Horizontal Drilling services 21

22 Forward Looking Information This document contains forward-looking statements and forward-looking information (collectively, "forward-looking information") within the meaning of applicable Canadian securities laws. The use of any of the words "expect", "anticipate", "will", "future" and similar expressions are intended to identify forward-looking information. In particular, this news release contains forward-looking information pertaining to Trinidad s planned development and commercialization of RigMinder's technology; Trinidad s 2017 capital expenditure program; and the potential success of the acquired technology. The forward-looking information included in this press release reflects several factors, expectations and assumptions including, without limitation: oil and gas industry conditions and oil and gas production levels; commodity prices; supply and demand for commodities; capital expenditure programs and other expenditures by oil and gas exploration and production companies; and the impact on the demand for contract drilling services of all of the foregoing. The forward-looking information included in this press release is not a guarantee of future performance and should not be unduly relied upon. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking information including, without limitation: volatility in market prices for oil, natural gas and LNG; liabilities inherent in the drilling and manufacturing industries, including technical problems; the risks associated with attempting to successfully develop technology; potential challenges by third parties to RigMinder's ownership of its intellectual property; competition for skilled personnel and the retention of the experts needed to continue to develop and implement the RigMinder technology; changes in general economic, market and business conditions; actions by governmental or regulatory authorities including changes to tax or environmental laws; and the ability of Trinidad s customers to raise capital and to continue with their drilling programs. Should any one of a number of issues arise, Trinidad may find it necessary to alter its current business strategy and/or capital expenditure program. Additional risks that could impact the business and operations of Trinidad are detailed under the heading Risk Factors in Trinidad s annual information form for the year ended December 31, Trinidad cautions that the foregoing list of risks and uncertainties is not exhaustive. The forward-looking information contained in this press release speaks only as of the date of this press release and Trinidad assumes no obligation to publicly update or revise such forward-looking information to reflect new events or circumstances, except as may be required pursuant to applicable securities laws. IT'S ABOUT PERFORMANCE 22

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