....provides industry leading technology for: Production Enhancement Barclays CEO EnergyPower Conference September 8th 10th, 2015
Forward Looking Statements The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forwardlooking statements. Any written or oral statements made by the Company or on behalf of the Company in or in conjunction…
The Value of Production Enhancement Technology Proppantdelivered technology can: materially improve Production and EUR , thereby lowering F&D costs materially lower LOE, and protect a wells production for years usually pays for…
Fracturing Evolution 2000S Horizontal drilling and 1980s transverse fracs High proppant Major move into shales concentrations Large proppant volumes 1976 Primarily XL gel fracs Microseismic network vs Exxon asks CARBO to…
The Rocks Matter Tighter rock needs fracs with more reservoir Contact Area and Conductivity Current Shale Recovery Factor < 5%8% Conventional Sands Tight Sands Shale Millidarcies Microdarcies Nanodarcies 1 md .001 md…
Improve Production & EUR More Contact Area & Conductivity More..Reservoir Contact Area Increase number of stages and perf clusters Increase pounds proppant per stage Propped frac length Major influence on short term production…
Is Your Well Built On Sand Foundations 7
White Sand 6,000 psi White Sand 10,000 psi Are the fracs staying conductive % of US Wells Depth Ultimate Closure Stress The best White Sand starts crushing at 40% 10,000 to 15,000 ft 6,000 to 15,000 psi 6,000 psi. Reduces flow &…
Production Impact of Sand Crushing Eagle Ford Shale McMullen County 12 sand wells 11,500 depth, 0.85 frac gradient Productivity Index = Mscfd/psi/cluster
Production Impact of Sand Crushing Eagle Ford Shale McMullen County 12 sand and 12 ceramic wells 11,500 depth, 0.85 frac gradient 180 days (avg.) Rapid production decline due to sand crushing EUR lost Productivity Index =…
Production Enhancement Technology Our approach is summarized by: Build A Frac That Lasts The Life Of The Well Minimize Well ProductionRelated Damage Mechanisms & Well Workovers Provide Technology To Evaluate Fracs, To Optimize Field…
.a leading production enhancement company Frac Design Frac Conductivity & Durability Economic Optimization Production Assurance Reservoir Performance Fracture Evaluation Post Job Analysis Flow Enhancement Well Site…
Proppant Delivered Technology Platforms CARBOHYDROPROP CARBOECONOPROP KRYPTOSPHERE CARBOPROP CARBOLITE CARBOHSP Ceramics Infused Chemical Delivery System Higher EUR Proppant Proppant Proppant Production Delivered…
Build A Durable, Conductive Frac That: Lasts The Life Of The Well What is the value gained if I get higher EUR per well, dont have to drill as many wells, and do not need to refrac wells
Improve Recovery Build a Frac that Lasts Higher EUR Lower F&D Sand based proppant Ceramic proppant Lower conductivity Higher conductivity Crushes above 6,000 psi Engineered for Press, Temp, K Degrades above 200 F Higher…
Sand Lead & Ceramic TailIn
Well Production Hierarchy of Proppant Performance Highest Production, EUR, ROI Highest Conductivity Highest Quality & Precision Engineered Monosized Ultrahigh strength High density Spherical Ultraconductivity Smooth surface More…
Optimizing Completion Design Bakken Thousands 70 6 Mo Cum Oil 16 60 NPV (M) 14 50 12 10 6 Mo Cum Oil (bbl) 40 NPV (M) 8 30 6 20 4 10 2 0 0 Conductivity Low Cost Contact Contact & Conductivity Period of Time…
Utica Success Highly efficient fracture designs including ceramics, have been involved in 10 of the 15 highest IP wells in the Utica Lower decline rates 25 mmscfd/ 1,000 lateral 20 Initial Production 15 10 5…
World Class Wells In The Utica Wells with six months or more of production *public production data
Build A Production Assurance Frac That: Minimizes Well ProductionRelated Damage Mechanisms And Well WorkOvers What is the LOE cost reduction and BOE production gained, if I dont have to workover wells once they are on production
Improve Recovery Well Production Assurance Conventional Treatment Technologies Proppant Delivered GUARD Technologies Shortlife frac fluid additives Longlife controlled release products Higher total cost due to: Lower total cost due…
Production Assurance Common Production Problems Illustration of inorganic scale deposit in wellbore Illustration of paraffin deposit in wellbore Inorganic Scale Organic Deposits Noncarbon containing mineral deposit Crude oil is a…
GUARD Product Technologies Prevents damage to reservoir leading to increased EUR Controlled release technology. Also, releases only when in contact with production fluids. Treats multiple years without additional cost to…
Field Results Area 1 24 total wells comparison Vertical wells, 35 stage (500,000 lbs per well) 12 SCALEGUARD wells 12 competitors particulatebased inhibitor wells 5.0% addition of GUARD technology
Field Results Area 1 100 90 Inhibitor Return (ppm) 80 70 60 400 days 50 40 30 20 220 days 10 0 0 5,000 10,000 15,000 20,000 25,000 30,000 Cumulative Water (bbl) SCALEGUARD Competitor Particulate based inhibitor
Field Results Area 2 20 total wells comparison Long horizontal, multiple stage jobs (6,000,000 lbs per well) 15 SCALEGUARD IV wells 5 competitors particulatebased inhibitor wells 0.5% addition of GUARD technology
Field Results Area 2 140 Inhibitor Return (ppm) 120 100 80 60 40 140 days 270 days 20 0 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Cumulative Water (bbl) SCALEGUARD Competitor Particulate based…
Field Results SCALEGUARD versus Competitors Inhibitors Annual Scale Treatment Costs Comparison 191,000 135,000 166,000 92,000 25,000 COMPETITOR PRODUCT COMPETITOR PRODUCT COMPETITOR PRODUCT SCALEGUARD AREA 1 AREA 2 AREA 3…
Field Development Optimized By: Measuring The Location Of Proppant In The Frac Imagine the value to be gained if we can finally determine the effective drainage area of our fracs, by measuring where the Proppant is placed in the…
FRACTUREVISION If only we knew where the proppant was placed throughout the frac, it would be a gamechanger to develop oil & gas reserves.. Wellhead Nearwellbore Detection Technology Farfield Detection Technology Nearwellbore…
FRACTUREVISION Farfield proppant detection First Field Test of next generation fracture technology In conjunction with a large E&P operator, we have completed the industrys first field test of being able to determine where the…
Case Study: Field Development Optimized Endurance Resources Permian What happens when an E&P Operator utilizes technology and fully engineers their well completions to Maximize Production, EUR, and ROI
Endurance Area of Interest Endurance focus area 34
Design Issues Is the Well Depth perpendicular to the Reservoir stress direction Is Pressure drawdown spread Permeability across reservoir Stress direction Production Casing size Proppant Contact area and Conductivity are key design…
Frac Modeling We model the job pre frac, and check post frac 36
Results and Findings: Ceramic vs Sand Last three 2nd Bone well average 2013-2014 Endurance average Proppant Loading (lbs/ft) Endurance is outperforming industry in Bone Spring 37
All Conductivity is not Created Equal NORMALIZED BONE SPRING _ENDURANCE PLAY AREA 120000 30/50 & 20/40 CERAMIC 100000 20/40 CERAMIC 80000 30/50 RESIN CUM OIL 60000 30/50 40000 SAND 20000 0 1 2 3 4 5 6 7 8 9 10…
Production Rates Endurance Resources Need to make the best use of the early frac energy and flush production Ceramics tend to not flowback due to reduced beta factor 39
Offset wells - sand vs ceramic NORMALIZED BONE SPRING LEA CO 23S34E 120000 100000 27% INCREASE DUE TO CERAMIC 80000 Endurance CUM OIL ENDURANCE 60000 CAZA Operator A Operator B COG 2334 MOC Operator C…
Economics flat 45 625 MBOE 500 MBOE A 10% reduction in Capex gives 3-5% gain in ROR A 10% reduction in LOE give a 1-2% gain in ROR A 25% gain in EUR gives a 12% gain in ROR 41
CARBO Operational Update Given the additional oil price weakness during Q315: E&P Operators continue to do every thing they can to lower well cost, often regardless of the negative impact on well production Conversely, some of our…
CARBO DownCycle Actions and Focus In the near term, we continue to focus on cash flow: Initiating another round of cost reduction measures in anticipation of a lowerforlonger market environment To adjust to industry activity and…
Our Future New Technology Products Growth Product Rev 40 Technology Products Growth Platform Technologies 35 New Production KRYPTOSPHERE & ULW Enhancement products 30 being commercialized 25 Estimating over 3X comparable…
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