ZaZa Energy Corporation Advanced Reservoir Characterization and Proof-of-Concept Drilling in the Eagle Ford and Eaglebine Shales Kevin J. Schepel EVP Exploration & Production September 2013 DUG Eagle Ford - September 2013
ZaZa Energy Company Build-up Strategic shift in operational outlook on behalf of both Companies led to the dissolution of the joint venture with Hess, whereby ZaZa focused primarily on Texas plays Hess Joint Venture As a result, ZaZa…
ZaZa Energy Leadership Transformation Team has over 25 years Founder of Neuhaus Investments, LLC, a company making strategic energy investments average experience Todd Brooks across multiple geographic regions including with majors…
ZaZa Energy Technology Evaluation Setting Trends in Technology ZaZa drilled and completed 28 proof-of- concept well from 2011-2012 Cut and analyzed over 2000 of conventional core Recovered over 800 rotary sidewall cores Tested…
Upper Cretaceous Shales Transition of Play Types Woodbine Group Woodbine Group Eagle Ford Group Boquillas Tuscaloosa Group Eagle Ford East/Eaglebine Eagle Ford Lateral equivalents of upper Cretaceous shale across the…
Eagle Ford Trend at Night Key Points The shale play trends across Texas from the Mexican border up into East Texas, Fort Worth / Dallas roughly 50 miles wide and 400 miles long with an average thickness of 250 feet. It is…
Eagle Ford Permits Core and Eastern Expansion Area Eastern Extension (Eaglebine) Finding the Next Industry Growth Area Austin County Milam County Brazos County Polk County Burleson County San Jacinto County Grimes County Trinity…
Eagle Ford/Eaglebine Trend Key Points Isopach Base Austin Chalk to Top of Lower Cretaceous The Eagle Ford East/Eaglebine area of Dallam Sherman Hansford Ochiltree Lipscomb East Texas Basin Hartley Moore Hutchinson interest…
Eagle Ford and Eaglebine Areas Offer Multiple Stacked Targets Eagle Ford East / Eaglebine Regional Cross Section (Flattened on Base of Austin Chalk) Area Woodbine sand/silt horizontal play kicked off activity in the Eaglebine in…
Proof-of-Concept Drilling - Measuring the Value of Information DUG Eagle Ford - September 2013 11
Proof-Of-Concept Drilling It is not all about getting the best well right off the bat. Design a well to get producible hydrocarbons and to get the technical information you need to access commerciality. The first wells are…
Mud Logging Program In addition to standard hotwire, chromatograph, and sample description services Vertical Well Collect Isotube gas samples as follows: Sample every 100 from surface to TD Sample every 50 if good gas shows are…
Monitor Well Coring Program Acquire 4 conventional core in Eagle Ford Target Approximately 400-480 of core Coring point picked on location Start at the base of the Austin Chalk (20) Core entire Eagle Ford section Core top 20…
Conventional Core DUG Eagle Ford - September 2013 15
Formation Drilling Program NGT-NEUT to surface PEX) 3500 Platform Express Triple Combo (AIT/CNL-FDC/PE) LWD (GR-RES) GR-Acoustic to surface (DSI) Dipole Sonic/Sonic Scanner Dual Oil-Base Micro-Imager Elemental…
Customized Petrophysical Analysis WELL 1 DUG Eagle Ford - September 2013 18
Schlumberger EFS - Using ADT Dielectric ADT Sw This well is the first test of the low resistivity organic Eagle Ford which is similar in composition to the Eaglebine in East Texas 264 BOPD and 2,434 MCFGPD DUG Eagle Ford -…
Real Time FLAIR Fluid Logging and Analysis FLAIR fluid logging and analysis in real time is a premium gas service focused on fluid facies characterization and early information about formation fluid composition. The interpretation…
Optimized Stimulation Design (Pilot to Lateral Rock Properties) DUG Eagle Ford - September 2013 21
Optimized Stimulation Design (FRAC Procedure) Initial Design 16 stages optimized using 2D and 3D stresses derived from vertical log and using horizontal gamma ray correlation Based on length of like stresses Range of 3-5 clusters…
Microseismic Overview InterAC Offic T e FracCAT Wireline Treatment Well Geophysicist Monitoring Pumping Well DUG Eagle Ford - September 2013 23
Compare & Contrast Rock Layer Properties Using Microseismic 2H 3H Well No.2 and No.3 Production Well No. 2H Well No. 3H Porosity 6-14% Porosity 15-23% YM (Static) 3.4 - 4.6 E6 YM (Static) 2.8 - 3.2 E6 Poision Ratio 0.25…
Geologic Overview Eagle Ford East / Eaglebine Play DUG Eagle Ford - September 2013 25
Eagle Ford East / Eaglebine (Multi-Play) Cross Section Key Points The cross section represents the Woodbine sand / silt play, the Upper Eaglebine play and the Lower Eaglebine organic rich sand / shale section below Harris Delta…
Eagle Ford East / Eaglebine Trend Transition of Play Types Woodbine Sand Play Laminate Play Actual Tests Weber Lewis Pay Halcon and Crimson Exploration ZaZa Energy ZaZa Energy Cheaglebine Play (Woodbine Sand and (Eagle…
Eagle Ford East / Eaglebine Geology & Stratigraphy Geologic Backdrop Stratigraphic Column East Texas Basin Eaglebine Log Section The Upper Cretaceous Eaglebine is an organic rich section situated between the Austin Chalk and the…
Eagle Ford East / Eaglebine Typical Mudlog Response (ZaZa Acreage) Eagle Ford East/Eaglebine Mudlogs Historical mudlogs across the area have significant oil and gas shows in both the Upper and Lower Eaglebine section…
Eagle Ford East / Eaglebine Pilot vs. Horizontal Effective Stress Original Hole (MW 9.5 ppg) Initial Horizontal (MW 10.2 ppg) Mudlog total gas and C1-C5 components show significant increase in horizontal portion of well DUG…
Eagle Ford East / Eaglebine Horizontal Well Activity Key Points Horizontal wellbores are drilled and completed in the Upper or Lower Eaglebine Initial wells encountered casing Highest Mudlog Shows problems when drilling out…
Eagle Ford East / Eaglebine Optimized Drilling Plan Drilling Assumptions Typical Upper/Lower Eaglebine Wellbore Diagram All horizontal Eaglebine wells assumed to be drilled on WELL: Typical Eaglebine Well SURF LOC: TBD approximately…
Summary and Observations Integration of basic geology, physical rock properties, and micro-seismic data significantly improve our ability to characterize features in the horizontal reservoir that directly impact well placement,…