1. Tim Loser
VP US Operations, Energy Navigator
The Evolution of the Red Folder:
AFE Workflow
January 13, 2015

2. Agenda
• About Tim and Energy Navigator
• General AFE Process Overview
• Evolution of the AFE system
• Considering a System
• What does the future hold?
AFE Nav Product Demonstration

3. Tim Loser, Background
• 23 Years in the Industry
– With 22 with focus on technology
• Reservoir Engineer, Texas A&M University
• Background with
– The Production Analyst (PA), OFM
– Reservoir Simulation (Eclipse)
– Spotfire
– Value Navigator, AFE Navigator
• 8 Years at Schlumberger (SIS), 9 Yrs at Spotfire, 6 yrs at
Energy Navigator
AFE Nav Product Demonstration

4. Energy Navigator
• Founded in 1998
• 3 Offices with 65 employees
– HQ: Calgary, AB
– Houston, TX (2008)
– Denver, CO (2009)
• 350+ E&P Clients

5. Our Solutions
• AFE Navigator
– All-in-one, integrated solution for AFE workflow and capital
tracking
• Value Navigator
– A fully integrated, scalable and complete evaluation system
for forecasting, economic analysis, reporting, reserves
management, budgeting and risk analysis

6. What is an AFE
AFE Nav Product Demonstration

7. What is an AFE
• Authorization for Expenditure
• Documents the Capital Expenses on a Project
• Follows a set of business rules
• Circulated for approval based on business rules
AFE Nav Product Demonstration

8. Why Have an AFE?
• Control, Control, Control
– Money goes where you want it
– Proper eyes see the numbers
– Sarbanes Oxley
– Required by JOA, Working Interest Partners
• Budget
– Project Budget
– Tracking costs to a project
• Communication
• Justification
AFE Nav Product Demonstration

9. Classic AFE Workflow
AFE Nav Product Demonstration
AFE
ACCT
LAND
30 Days
Approved
Ops

10. Trends Influencing AFE Processes
• Distributed workforce
– Multiple worksites
– Increased mobility
• Increased regulatory environment
• Rapidly growing companies
• Unconventional Resources – manufacturing approach
– Get efficient
– Reduce Costs
• And now commodity prices
– Increased scrutiny
AFE Nav Product Demonstration

11. The System
AFE Nav Product Demonstration

12. Why have a System
• Risk Reduction
• Efficiency
• High Volume
• Consistency
• Demonstrable Control
• Becomes more than just an approval system
AFE Nav Product Demonstration

13. The Evolution of the System
• The Red Folder
• Travels Via the
Sneakernet
• Problem:
“Where is the AFE”
AFE Nav Product Demonstration

14. The Evolution of the AFE – Improvements on
the Folder
• Introduction of Spreadsheet
– Largely still on the Sneakernet
– Physical signatures still needed
– Attachments are still physically attached
• Email and the Network Drive
– Manual routing
• Electronic Signatures
AFE Nav Product Demonstration

15. The Evolution of the AFE – The Software 1.0
• Automatically Route to the right people
– Email notifications
• Database storage of AFE inputs
– Reporting
– Easy duplication
• Visability
– Where is the AFE at anytime
• Integration
– Land, Accounting
• Links to Attachments
– No more paper, well until we send it to partners
AFE Nav Product Demonstration

16. The Evolution of the AFE – The Software
Where did it come from
• Commercially Available
• Written by consultants
• Internally Developed
• Adapted from other systems
– Well Management System
– Accounting
– Document Management
AFE Nav Product Demonstration

17. The Evolution of the AFE – The Software 2.0
• Embracing Mobility
– Anytime, Anywhere
• Automatic event awareness
– Alerts to overspending
– Nagging emails
• Not just email alerts
• The Cloud
AFE Nav Product Demonstration

18. A System for You
AFE Nav Product Demonstration

19. When does and AFE System Add Value
• Improved Efficiency
– Time for valuable employees
• Hunting stuck or lost AFEs
• Preparing partner packets
– AFE approval time
• To partners faster
• Projects started on time
• Reduction in Errors
• Auditability
• Instant visibility to the costs of the project
– Are we about to overspend
– Do we need a supplement

20. When Considering a System
• Its more than just an approval system
• What happens after approval?
– How do you track performance against the AFE?
– Do you need to supplement
• How can I demonstrate the right process was followed?
• Is it adaptable beyond the well?
• Where does the data need to flow?
AFE Nav Product Demonstration

21. AFE Dataflow
AFE Nav Product Demonstration
AFE
Land
Acct
AFE
Acct WMS
Wellview
WellEZ
AFE
Acct WMS
Econ Econ
Pre-Approval On-Approval Project Started

22. What is Next
AFE Nav Product Demonstration

23. The Evolution of the AFE – The Software 3.0
The Next Phase Maybe
• Sharing with partners
– No more faxing, mailing, couriering
• Going Social
• Other Devices
• Not Just for AFEs?
– Other Workflows
AFE Nav Product Demonstration

24. Questions
AFE Nav Product Demonstration