Bank of America Merrill Lynch 2012 Global Energy Conference

Transcription

1 Bank of America Merrill Lynch 2012 Global Energy Conference November 14-16, 2012 Fontainebleau Hotel Miami, Florida

2 Slide Global Energy Conference November 14 16, 2012 Fontainebleau Hotel, Miami, Florida Slide 2 Three principal business lines: 1. Reservoir Description Reservoir Management Slide 3 Presentation Walk-away Points: How a Reservoir Actually Works The Decline Curve Will Always Win Core s Differentiating Technologies Core s Industry Leading Shareholder Returns 2

3 Slide 4 Our services and products focus on maximizing production rates and ultimate reserves to maximize our clients return on their investments. Slide 5 Core Lab targets the more stable, less volatile, production and production enhancement component of the oil companies budget. Slide 6 Primary Business Drivers 1. Reservoir Description: Laboratory-based Services with International & Oil Focus 2. : Products and Services for Wellbore Completions 2/3 North America & 1/3 International 3. Reservoir Management: Global Focus 3

4 Slide 7 Reservoir Optimization Oil field activity levels have been increasing on both sides of the Atlantic margins. Significant discoveries have been made in pre-salt and post-salt formations. As a result, many new large development projects are now underway or are in the planning phase. Slide 8 Reservoir Optimization As Pangea began separating over 130 million years ago, the formations that we know today began forming both offshore Brazil and West Africa. Slide 9 Reservoir Optimization Turbidite flows coming off the shelves from both sides of the Atlantic created channel sands that are now highly prospective and many are highly productive reservoirs. 4

5 Slide 10 The Decline Curve Core Lab provides services through its three operating segments at points all along the decline curve: Reservoir Description Reservoir Management Slide 11 Reservoir Description Our first business unit Reservoir Description analyzes actual reservoir rocks and fluids to provide data sets that accurately characterize the reservoir. These precise measurements create the base truth from which to build the field s reservoir optimization model. These measurements are invaluable in order to determine probable versus proven reserves in-place. Slide 12 Reservoir Description Leaders in rock property analysis from the traditional perspective to 5

6 Slide 13 Reservoir Description the most advanced. Slide 14 Reservoir Description Leaders in reservoir fluid analysis Analyses of reservoir fluid properties are gaining in importance as the fluids (e.g. oil and gas) are indeed the economic driver in the reservoir. Slide 15 Reservoir Description The value of crude oil is directly related to the amount of gasoline that can be refined from the particular crude oil being produced. Our clients want to know the characteristics of their crude oil to better assess the economics that can be obtained from the crude oil and its derived products. 6

7 Slide 16 Our next business unit provides products and services designed to minimize formation damage and maximize production flow rates. The Goal - optimizing reservoir value. Following is a case study of the application of our services and products aimed at enhancing production from longreach horizontal well bores being drilled to exploit shale reservoirs. Slide 17 Horizontal Time Delay Ballistic Assisted Sequential Transfer The HTD-Blast can convey up to 8 perforating guns, including our latest SuperHeroPlus+ charges, all the way to the end of the toe the HTD-Blast can even be conveyed on a slick-line to save the operator costs when completing their wellbore. Our product saves the operator time and money on each completion in addition to improving flow rates from the toe all of which drives their ROI higher on each completed wellbore. Slide 18 The shales particularly the oil shales require innovative completion techniques to enhance recovery from their low permeability, low porosity geologic structure. Intelligent completions will include: Our Reservoir Description services to characterize the rocks and reservoir fluids from the formation. Our new line of SuperHERO Plus+ TM charges and gun systems. Application of our SpectraScan TM diagnostics to determine the effectiveness of a hydraulic frac. Along with our SpectraChemPlus+ TM to determine gel flowback after the frac. Another innovation from Core Lab is our new HTD-Blast. 7

8 Slide 19 The use of these technologies on horizontal multi-stage completions provide the operator measurable results all aimed at enhancing production from these unconventional reservoirs. Our new HTD-Blast is designed to improve productivity from the toe-end of the long laterals being drilled for today s multi-stage completions. Slide 20 Once the HTD-Blast has been conveyed to the end of the toe by the slick-line unit, the initial charge is fired on command from the operator. After the first charge, the coil-tubing unit retracts the HTD-Blast system to the next location in the lateral wellbore that is to be perforated. Our proprietary timing system then fires the second charge after which time the coil tubing operator will retract the HTD-Blast to the next location to be perforated and this can occur for up to 8 times sufficient to effectively complete the entire toe of today s longest laterals. Slide 21 Our HTD-Blast system provides superior results when our High Efficiency Reservoir Optimization ( HERO ) line of charges is used. These products are designed to minimize damage to the formation using proprietary powdered metal technology while providing maximum penetration into the producing zone. The SuperHEROPlus+ TM charge is designed to create Effective Communication with the producing zone by creating a flow channel well beyond any damaged zone in the near well-bore environment. 8

9 Slide 22 After the operator has perforated the well-bore, the hydraulic fracture is commenced. During the hydraulic frac treatment, we introduce two elements into the gel and proppant to determine (1) whether the frac proppant was placed in the desired locations and (2) how effectively the gel breaks-down and cleans-up as production begins. Slide 23 After the hydraulic frac treatment, our SpectraScan TM fracture diagnostic tool takes readings from the near well-bore environment to determine actual proppant placement. The client receives a log taken by the SpectraScan TM fracture diagnostic tool which indicates the location of the actual proppant placement. At the surface, our SpectraChem TM service also provides a log of the gel breakdown and its clean-up as production begins. Gels that remain in the formation tend to inhibit maximum flow of hydrocarbons to the surface. Slide 24 From the plan view, the operator can see (1) the position of the horizontal well bore and (2) the effectiveness of the multistage completion. This information can assist the operator in determining where best to place future well-bores along with the most effective completion design. 9

10 Slide 25 Reservoir Management Our third unit Reservoir Management focuses on leveraging the knowledge gained from the data sets we created in our Reservoir Description unit along with our projects to solve reservoir-wide issues which a client may have. Our integrated approach is designed to help clients solve wide ranging production problems they may be incurring. Slide 26 Reservoir Management Maximizing production and recoverables oftentimes can be increased by designing and implementing a field flood. Effective field floods can be done using water as the flooding agent, or even by using carbon dioxide or nitrogen. Or, let us design a miscible gas flood by reinjecting natural gas along with CO2 and Nitrogen. Under laboratory conditions, simulating reservoir temperatures and pressures, we can design optimum field floods. Slide 27 Reservoir Management After a field flood is designed, we can monitor the progress of the flood and analyze the results through our inter-well diagnostics. Here we start with a pressure maintenance program done by reinjecting natural gas into the oilfield to enable maximum production at this point in the field s life. 10

11 Slide 28 Reservoir Management To maximize recovery from fields, Core has been studying results from injecting the heavy ends from natural gas along with CO2 and Nitrogen something we call a miscible gas flood. These gases, especially when combined, act to mobilize even more oil from the reservoir than traditional floods using just water or one of the gases individually. Slide 29 Reservoir Management Based on the results from our reservoir characterization analysis, we can make recommendations on how to improve the results of a flood. Recommendations designed to increase incremental production can range from changing the flood agent, the rate of injection of those agents, the location of the injector wells, or perhaps, the location of new producing wells. Slide 30 Our operating margins have continued to expand as we have been able to develop new technologies - which we then strive to offer our clients throughout our existing international platform. These three growth strategies have been essential ingredients to our improving performance. 11

12 Slide 31 Global distribution system; 70 offices in 50 countries. 12

13 Bank of America Merrill Lynch 2012 Global Energy Conference November 14 16, 2012 The Fountainebleau Resort, Miami, Florida Notes Page 13