A five-step method for optimizing perforating design and placement to engineer more profitable completions

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1 A five-step method for optimizing perforating design and placement to engineer more profitable completions 1 Data capture 5 Monitoring 2 Data analysis 4 High-efficiency field execution 3 Perforating design

2 Enhancing production through engineered completion designs is the key to increasing well profitability in today s challenging economic environment. The traditional approach to perforating placement in horizontal wells with geometrically spaced perforating clusters and stages does not take into account toe-to-heel heterogeneity and often results in a number of perforation clusters that do not contribute to well performance. Production logging data has shown that as much as 40% of perforations may not adequately accept treating fluid, resulting in nonoptimized stimulation of the targeted reservoir. To improve well stimulation and productivity, GR Energy Services offers the PerfTactix* 5-step program, which utilizes drilling, mud logging and formation evaluation data to optimize completions. The resulting answer product precisely positions stages and perforation clusters along the wellbore by targeting rock with similar geomechanical and producibility properties. The program selects the ideal stage spacing, perforation cluster placement, and shaped charge and gun system design to ensure higher-payback hydraulic fracturing operations. Highly efficient plug-n-perf field execution and post-frac monitoring provide unmatched performance compared to traditional approaches. Completion engineers who utilize the PerfTactix methodology will realize improved well completion and production results through: Targeting rock with similar properties within the stage to achieve more even proppant distribution across all perforation clusters, which leads to enhanced production Improving formation breakdown and decreasing the chance of screen-out by placing perforations in consistent rock and selecting appropriate shaped charges for fracture treatment Optimizing the perforating system to improve delivery and fracturing performance Continuous improvement of wellsite operations and future frac designs. 5-step method The PerfTactix five-step method varies with well complexity and value. When all five steps are employed, a closed-loop optimization process can be achieved by Evaluating perforation cluster placement Selecting shaped charges and gun phasing to ensure a better frac Choosing the components required for an ultraefficient gun system Executing a highly efficient wellsite operation Diagnosing well profiles cost effectively during production

3 PerfTactix answer product takes the guesswork out of stage length and perforation cluster placement decisions to improve the effectiveness of hydraulic fracture operations. Stage Top MD Original Suboptimum Geometric Frac Staging Bottom MD Stage Length Average TVD Perf Clusters Number of Perfs Design Rate (bbl/min) 16 10,800 11, , ,095 11, , ,390 11, , ,685 11, , ,980 12, , ,275 12, , ,570 12, , ,865 13, , ,160 13, , ,455 13, , ,750 14, , ,045 14, , ,340 14, , ,635 14, , ,930 15, , ,225 15, , A traditional geometric completion design for frac staging does not account for toe-to-heel heterogeneity. The table on the right shows the optimum design.

4 Segment Start MD End MD PerfTactix Optimized Lateral Segmenting Example Segment Length In-situ Stress ( ) Quartz Volume Weighted 70% ( ) Effective Porosity Weighted 30% ( ) 5 10,800 12,300 1, % 4.2% 4 12,300 13, % 4.5% 3 13,200 14,600 1, % 5.5% 2 14,600 15, % 6.0% 1 15,200 15, % 7.5% ZoneGrader analysis segments the lateral into six similar geomechanical and producibility segments. Segment Stage Top MD PerfTactix Optimized Frac Staging Example Bottom MD Stage Length Average TVD Perf Clusters Number of Perfs Design Rate (bbl/min) ,800 11, , ,100 11, , ,420 11, , ,710 12, , ,020 12, , ,300 12, , ,610 12, , ,900 13, , ,200 13, , ,490 13, , ,750 14, , ,000 14, , ,280 14, , ,600 14, , ,905 15, , ,200 15, , Stage length and perf cluster placement are optimized to enhance production. The table on the left shows a suboptimum geometric design.

5 1 Data capture Openhole formation evaluation data are essential inputs to engineer better completions. The Logging-While- Tripping (LWT ) tool, an innovative logging technique, enables efficient acquisition, in a horizontal lateral, of gamma ray, spectral gamma ray, compensated neutron, compensated formation density and dual induction data. This information is recorded during normal drilling operations with virtually no additional rig time. Drilling data (WOB, RPM, ROP, torque and MWD/GR) and mud logging data can be integrated with LWT data to enhance the analysis. 2 Data analysis ZoneGrader analysis of the well data is used to evaluate the optimal placement of perforation clusters. This unique answer product grades the formation along the wellbore based on geomechanical and producibility formation characteristics. Geomechanical rock properties include stress, brittleness and lithology. Producibility properties include lithology, total organic carbon (TOC), porosity, permeability and saturation. With the wellbore graded by geomechanical and producibility properties, the number and position of stages can be determined and perforation clusters precisely placed. 3 Perforating design Perforation geometry is a key element of designing an optimal completion. Not only should perforation clusters be tactically positioned along the lateral, but shaped charge selection based on perforating geometry should be considered to properly treat the well per the design. Consistent perforation entrance hole (EH) diameters are a vital component of optimizing fracturing efficiency. Perforating EH diameters must be large enough to prevent proppant bridging and consistent in size for accurate limited-entry designs. With conventional 60-degree systems, a 40% variation in EH can result in a 120% increase in pressure drop. By utilizing consistent entrance hole charges, completion engineers benefit from perforation clusters accepting treatment fluid according to the design because a greater number of holes are open, providing a consistent pressure drop across all perforations. Enhanced liner perforating charges provide increased perforation tunnel diameters to the formation, which reduce breakdown and treating pressures (less horsepower required and thus cost) and improve access to the formation via tip fractures. 4 High-efficiency field execution An ultra-efficient plug-and-play gun system is used to ensure the safest, most efficient completion time possible. The system uses state-ofthe-art, inherently safe switches to eliminate the risk of surface detonation and to enable gun skipping downhole in the unlikely event of a misfire. Unlike conventional gun systems that require up to 100 manual connections to assemble the guns, there are no wires, so field assembly times are much faster and the chance of human error is significantly reduced. RigLock equipment makes rigging up and down more efficient while adding unmatched safety measures to protect wellsite teams from injury. Run-in-hole safety is optimized using modeling software that indicates when downhole tension and release tools are required to reduce risk. Each component of the system is chosen to achieve the safest, most reliable, fastest plug-n-perf operation. 5 Monitoring After flowback, Diagnostix* fiber optic monitoring services can be efficiently deployed to record distributed temperature (DTS) and acoustic (DAS) surveys. Unlike traditional production logs, the entire wellbore can be simultaneously surveyed in real time to detect and monitor contribution of each perforation cluster. Results of the production profiling are used to optimize future stimulation programs and to consider the potential benefits of refrac programs.

6 GR Single-Source* completion and production solution A PerfTactix engineered completion is the first phase of the unique GR Energy Services completion and production solution. After the plug-n-perf completion is fracked, the Flex Flow* horizontal pumping system and hydraulic jet pump provides a proven lift solution from flowback through early production. The system cost effectively handles a wide range of rates and eliminates the common issues of gas locking and solids handling. As production declines, GR can install the Hi-ROI* PCP progressive cavity pump system to overcome the shortcomings of rod lift and ESPs in horizontal wells. The GR Single-Source completion and production solution establishes an unmatched chain of accountability for fit-for-purpose equipment and reliable service and engineering support for the life of the well. PerfTactix Service Optimized perforating design, execution and monitoring to boost reserves and production Perfs placed along wellbore graded by geomechanical and producibility properties Ultra-efficient plug-and-play gun system ensures lowest risk and completion time DTS and DAS profiling improves subsequent new completions and future refrac programs GR Single-Source Completion and Production Solution Flex Flow Horizontal Pumping System and Hydraulic Jet Pump Versatile and cost-effective artificial lift system with low maintenance and high uptime Eliminates gas locking and solids handling issues to ensure low operating cost Less maintenance with minimal downtime (98% to 100% uptime) Remote troubleshooting and monitoring to optimize production Hi-ROI PCP Low-investment, longer run life artificial lift system with advanced automation and control Equal or greater lift volume at 50% to 30% less overall cost Smaller surface footprint and lower noise level than alternatives Much better gas and solids handling than rod lift or ESPs Engineered Completion Flowback and Early Production Production PerfTactix Service Flex Flow Horizontal Pumping System Hi-ROI PCP Hydraulic Jet Pump *Mark of GR Energy Services Mark of Cordax Evaluation Technologies Inc GR-PUB