World Oil webcast presents: Artificial Lift: The ESP Forum. During this 60-minute live webcast, moderator Joe D. Woods will lead discussion on these topics: 1) ESPs: the good, the bad and the ugly, with Mark Garett, production engineering advisor for EOG Resources 2) Gas guidelines on ESPs, with Kyle King, senior application engineer with GE Oil & Gas Artificial Lift 3) ESPs vs. Long-stroke Pumping Units: an economical comparison in lower-volume wells, with Roman Molotkov, technical marketing and sales manager for Weatherford’s Production Systems 4) ESPs in unconventional applications, with Alex Vilcinskas, senior applications engineering advisor for the U.S. Land Artificial Lift Systems group at Baker Hughes ESPs in Unconventional Applications. Unconventional resource plays are being produced efficiently and economically using ESP solutions. These unconventional wells present unique challenges for ESP technology due to rapid production declines, high gas-to-oil ratios, deviated wellbores, and the presence of solids from the formation or proppant flowback. Accordingly, they require a flexible artificial lift solution designed to reduce operating expenses and minimize HSE risks, while meeting specific production parameters. Visit our website for more information: http://www.bakerhughes.com/news-and-media/events/new-world-oil-webcast-event Launch the recorded webcast: http://event.on24.com/r.htm?e=761757&s=1&k=32BCE0FD49E666BB646753BEEAD8473F

1. Second level
Third level
Fourth level
Fifth level

2. 0
500
1,000
1,500
2,000
2,500
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Conventional USL (Million bbl)
Unconventional USL (Million bbl)
US Oil Production Dominated by
Unconventional Oil Segment

3. Unconventional Well Architecture
• Majority are produced with horizontal wells
• All are fractured
– Length of horizontal section drives number
of fracture stages
• Vertical depths to 13,000 ft
• Kick-off point typically from about 5,000 to
over 10,000 ft TVD
• Casing sizes impact artificial lift recovery
methods
– Casing as large as 7 inches
– Liner as small as 4½ inches

4. Key Issues
• Production profile
– Managing the decline
• Gas control technology
– Gas and efficiency-induced temperature issues
– Impact of gas interference
• Solids / scale
– Frac sand production
– Scale and paraffin / asphaltenes
• Economics
– Benefits of an ESP in unconventional applications
– Other potential issues

5. 1. Maximize post frac production
2. Accelerate pay back
3. Manage draw down
4. Extend time to first intervention
Eliminate the need to change artificial
lift type
Extend ESP range
Legacy rod lift change
Manage the Decline

6. • Most unconventional
plays produce some gas
• Production problems
– Gas locking
– Gas blocking
– Slugging (biggest issue)
• Results in:
– Lower production
– Equipment failure
– Higher cost
Trapped Gas Slug
ESP Set in Tangent Section
Unconventional Production Challenges: Gas

7. Gas
Avoiding
Gas
Separating
Pump Charging Gas Handling Lifting
Gas Control
Technology
Gas Solutions

8. Sand-Handling Solutions
• Abrasion-resistant technology
– Rapid temperature changes
– Thermal growth allowances
– Lack of lubricity
• Stage coating
– Protects against sand, scale,
and asphaltenes
– 100% coverage
• Completion tools
– Sand screen
– Chemical injection
Abrasion-resistant pump stage designs
Coated stage Sand screen

9. ESP Rod Lift
Operating depth (TVD) 1,000 ft - 15,000 ft 100 ft - 12,000 ft
Operating rate (BPD) 50 - >25,000 / 7 in. casing 5 – 5,000
Gas handling Good Fair
Solids handling Fair to Good Fair to Good
Well deviation Good Poor
Overall efficiency Up to 60% Up to 60%
HSE risk Low Moderate to High
Cash flow High Low
Unconventional Artificial Lift Comparison

10. ESP Economics
• Accelerated cash flow
• Faster payback
• Fewer equipment
changeouts