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Microsoft Customer Solution
                                               Manufacturing Industry Case Study




                                               Oil and Gas Company Standardizes
                                               Workflows, Saves Millions of Dollars




Overview                                       “We use E&P Net as a single repository for projects to
Country or Region: United States
Industry: Oil and gas                          efficiently manage the flux in our drilling schedules.
                                               Now the organization can stay abreast of changes and
Customer Profile
Samson Investment Company is a                 react in as expedient a manner as possible.”
privately held oil and gas exploration and
                                                                    D.J. Ponville, Executive Vice President, Drilling and Operations,
production company headquartered in
                                                                                                      Samson Investment Company
Tulsa, Oklahoma. It operates more than
4,000 wells and employs 1,200 people.          Samson Investment Company is an upstream oil and gas
                                               company. Employees have to manage a large volume of data
Business Situation
Samson employees invested significant          generated from evaluating well prospects, and it was difficult for
time in accessing information housed in        them to find information in third-party solutions and data silos.
data silos, impeding the enterprisewide
collaboration that is required for efficient   Teams approached pre-drill workflows differently, and
well development activities.                   management had difficulty assessing global operations and
Solution                                       coordinating drilling schedules. Samson addressed most of
Samson deployed E&P Net, a portal              these issues with a knowledge management and collaboration
solution based on Microsoft
technologies. Staff use it to access           solution based on Microsoft Office SharePoint Server 2007 and
consolidated data and follow                   Microsoft SQL Server 2008 R2. With streamlined access to
standardized, collaborative activities for
well development and drilling.                 consolidated data, Samson employees no longer spend a
                                               significant amount of time looking for information. Staff uses
Benefits
 More efficient operations                    built-in scheduling logic to maximize efficiency to prepare the
 Faster access to information
                                               surface for rig move in and materials acquisition. Field labor
 Reduced costs
 Improved business intelligence               costs are reduced by avoiding expedited location preparations.
 Extensible well life cycle platform
“With information                        Situation                                       date on rapidly changing developments in
                                         Samson Investment Company was founded           the field.
changing in the                          in Tulsa, Oklahoma, in 1971 by Charles
                                         Schusterman. It began operations with 20        “Each asset team maintained its drilling
spreadsheets daily, we                   employees and 30 wells. Today, it is the        opportunities in a spreadsheet that
were constantly juggling                 largest privately held producer of natural      contained information about each
                                         gas in the United States, employing more        prospect,” explains Tom Koscelny, Quality
the drilling schedules.”                 than 1,200 people and operating                 Control Manager at Samson Investment
                                         approximately 4,000 wells throughout the        Company. “A prospect begins when a
Tom Koscelny, Quality Control Manager,
         Samson Investment Company       country.                                        geologist decides to explore a geographic
                                                                                         area to determine if it‟s viable to acquire oil
                                         Upstream oil and gas companies focus on         and gas leases to drill a well. We want to
                                         finding and developing new reserves, with       manage the process from conception,
                                         operations that cover exploration to            through negotiating leaseholds, through
                                         drilling. Samson attributes its profitable      scientific and economic analyses of the
                                         pursuit of natural gas and crude oil to a       opportunity, right up to the point when we
                                         highly motivated workforce, an abundance        schedule a rig to spud the well.”
                                         of in-house expertise and business acumen,
                                         and the innovative use of technology.           Volatile Rig Schedules
                                                                                         It is the asset teams‟ goal to ensure that
                                         High Data Volume                                rigs are scheduled to drill the most
                                         Fifteen asset management teams at               profitable opportunities first and as soon as
                                         Samson work to evaluate prospects,              they are ready. The logistics associated with
                                         perform pre-drill activities, and schedule      drilling a well are complex. Regulatory
                                         rigs to “spud” or drill, a well. However, the   permits have to be obtained. Locations
                                         sheer volume of information generated by        have to be physically ready for a rig to
                                         the teams had become a bottleneck in            move in, and materials for well construction
                                         efficient operations. While the company         have to be ordered and delivered in sync
                                         had invested in sophisticated third-party       with rig movements. Significant costs are
                                         petrotechnical and seismic analysis             incurred if anything is out of sync. To
                                         solutions that generated large volumes of       schedule rigs and avoid cost overruns,
                                         data, it had yet to find the right technology   Samson employees require an enterprise
                                         solution for its geologists, geophysicists,     view of all the prospects under
                                         land managers, and engineers to take            investigation by the 15 asset teams.
                                         control of this information, including          However, because each team maintained its
                                         additional documents, maps, surveys, and        own spreadsheets and data silos, it was
                                         contracts.                                      difficult to efficiently schedule all the rigs to
                                                                                         work at optimal profitability.
                                         Samson needed an information
                                         management and collaboration solution           “With information changing in the
                                         that would be flexible enough to                spreadsheets daily, we were constantly
                                         standardize and automate the asset teams‟       juggling the drilling schedules,” says
                                         different workflows, as well as to gather       Koscelny. “We would see some promising
                                         and consolidate data from various sources.      results come in for one prospect and move
                                         The company also wanted to enable real-         that up the schedule, and then the next day
                                         time collaboration to keep everyone up-to-      something would change and we would
                                                                                         move another prospect up. We‟ve had 25
versions of our drill schedule in different     and find the information you need,” says
“We didn‟t want our                      spreadsheets at a single time.”                 Phillip Robinson, Land Manager at Samson
business to adapt to the                                                                 Investment Company. “Some asset teams
                                         To complicate matters, the asset teams          had a technical assistant who would help
software; we wanted the                  worked with other Samson departments to         gather the information, but we wanted
                                         acquire leases, ensure environmental            more of a self-serve environment for our
software to adapt to our                 regulatory compliance, and order materials      professionals.”
needs. Microsoft                         for well construction. “One challenge the
                                         industry faces is managing the change           Limited Business Intelligence
technologies offered the                 associated with a dynamic drilling schedule     Without a centralized data store and an
                                         that is inevitable given the nature of the      enterprise content management solution
flexibility and                          business,” says D.J. Ponville, Executive Vice   complete with standard taxonomy, Samson
interoperability that we                 President, Drilling and Operations at           management had a limited view into the
                                         Samson Investment Company. “While we            business. It was difficult to compare
needed.”                                 are fortunate in that we have a dedicated       progress status across asset teams and to
                                         workforce that is committed to doing            archive pre-drill project information. With
Phillip Robinson, Land Manager, Samson
                    Investment Company   whatever is necessary to adapt to the           so much information hidden in personal
                                         changes, this is an area we have long           computers or remaining locked inside
                                         targeted for improvement. This is because       people‟s heads, the company couldn‟t take
                                         the compressed planning cycles and              full advantage of the collective expertise of
                                         potential communication lapses could            its professionals.
                                         compromise our ability to execute
                                         effectively and at the very least put undue     All business units agreed that the company
                                         pressure on the organization.”                  needed to find a better way to manage its
                                                                                         pre-drill work processes and inventory of
                                         Productivity Impact                             prospects to reduce costs and accelerate
                                         When highly compensated professionals           drilling time. To accomplish these goals, the
                                         have to spend time searching for data, they     company focused on an enterprise
                                         are not being productive. Yet to gather the     knowledge management and collaboration
                                         information they needed, Samson                 solution to build standardization and
                                         professionals could spend up to 20 percent      efficiency into each important stage of a
                                         of their time looking for information locked    well‟s life cycle.
                                         inside email messages, shared folders, and
                                         hard drives on individual‟s computers. They     Solution
                                         had to search through 12 line-of-business       Samson Investment Company recognized
                                         applications and third-party products,          that a solution built on Microsoft
                                         including finance, drilling, well               technologies would interoperate with its
                                         management, land management,                    existing infrastructure. “We looked at off-
                                         geophysical analysis, risk management, and      the-shelf solutions, but none were dynamic
                                         oil and gas economic evaluation software        or flexible enough to address our specific
                                         packages. They also had to consider data        problems,” says Robinson. “We didn‟t want
                                         from a lease broker system and a land           our business to adapt to the software; we
                                         surface cost analysis solution.                 wanted the software to adapt to our needs.
                                                                                         Microsoft technologies offered the
                                         “Because of the complex nature of the           flexibility and interoperability that we
                                         third-party applications, you almost had to     needed.”
                                         be a trained expert in the software to go in
document repository and currently houses
                                                                                      2,500 documents. E&P Net also uses SQL
                                                                                      Server 2008 R2, including SQL Server 2008
                                                                                      Integration Services to pull data from 12
                                                                                      different line-of-business applications and
                                                                                      SQL Server 2008 Reporting Services for
                                                                                      reporting. E&P Net was built using the
                                                                                      Microsoft .NET Framework 3.5.

                                                                                      E&P Net showcases the Microsoft
                                                                                      Silverlight 2 browser plug-in—a powerful
                                                                                      development environment for creating
                                                                                      engaging, interactive user experiences for
                                                                                      the web. “To encourage user adoption, we
                                                                                      wanted our knowledge management and
                                                                                      collaboration solution to have an intuitive
                                                                                      graphic user interface,” says Koscelny. “Idea
                                                                                      Integration has expertise working with
                                                                                      Silverlight as an application development
                                                                                      framework, and when they demonstrated
                                                                                      Silverlight in action, we were convinced by
Figure 1. With E&P Net, Samson        Samson had deployed an intranet based on        its speed, flexibility, and rich functionality.”
  staff gained instant access to      Microsoft Office SharePoint Server 2007
  information on all prospecting      that a few asset teams used to collaborate      E&P Net uses Silverlight for all functionality,
  and well development                on individual prospects. The company also       including interoperating with a GIS map
  activities. The browser-based,      used Microsoft SQL Server 2008 data             interface that relates structured data and
  collaborative portal is built on    management software to build a data             documents to a well‟s geographic location
  Microsoft Office SharePoint         warehouse. “We had the key components           using ArcGIS Server 9.3 from Microsoft
  Server technologies and             in place, so we needed a partner that could     Gold Certified Partner ESRI (Figure 1). “With
  delivers a rich, interactive user   help us build a solution to extrapolate the     E&P Net, we have gained a master system
  interface based on Microsoft        benefits of our existing IT investments,”       of records for all prospecting and well
  Silverlight.                        says Koscelny. “When our GIS [geographic        development activities, including geospatial
                                      information system] vendor, ESRI,               document management, rig scheduling,
                                      recommended Idea Integration, we invited        approval processes, electronic notifications,
                                      them to demonstrate a Microsoft-based           and enterprise reporting,” says Koscelny.
                                      solution that they had built for another        “All that integrated functionality delivered
                                      company.”                                       through a fast, engaging Silverlight-based
                                                                                      user interface is what gives E&P Net its
                                      Impressed by what Idea Integration had to       power.”
                                      offer, Samson began working with the
                                      Microsoft Gold Certified Partner in January     E&P Net helps to streamline common
                                      2009 to build and deploy a composite            workflows. For example, to examine a
                                      application that would streamline all pre-      prospect that is going to be drilled, an
                                      drill activities. Samson and Idea Integration   employee can open E&P Net and choose
                                      developed E&P Net, a browser-based,             from a series of tabs. The map tab uses the
                                      collaborative portal that is built on Office    Deep Zoom feature within Silverlight to
                                      SharePoint Server, which acts as a central      zoom to a standard scale around the well
site. By using the document tab, an            environmental, land, accounting, and
employee can view all documents                purchasing, use it to support the asset
associated with a particular well or           teams as they move rigs into production.”
geographical area. To schedule a rig, an
employee can drag wells to associate them      Benefits
with different rigs. The solution uses a       As a result of deploying E&P Net, Samson
sophisticated set of business rules to         Investment Company has streamlined
import current information about the well      operations, simplified data access, reduced
and calculate where it should be in the        operating costs, and improved business
overall drilling schedule.                     intelligence. And because E&P Net is built
                                               on interoperable Microsoft technologies,
The team publicized E&P Net on the             Samson has gained an extensible platform
Samson intranet, performed a demo for          to cover all stages of a well‟s life cycle.
company engineers, and released a video        “Drilling wells is the core function of
that featured screenshots of the graphical,    Samson, and since deploying E&P Net to
map-driven user interface to drive interest.   manage our well life cycle, we‟ve enhanced
Samson launched the solution in March          productivity and efficiency,” says Robinson.
2010. “We use E&P Net as a single
repository for projects to efficiently         More Efficient Operations
manage the flux in our drilling schedules.     Samson employees can now work more
Now the organization can stay abreast of       efficiently through a coordinated,
changes and react in as expedient a            automated, and streamlined series of steps.
manner as possible,” says Ponville. “I have    These steps promote collaboration among
been surprised by how quickly the              Samson departments and greater
organization has implemented the system        collaboration means that Samson can move
and view that as a testimony to the need       a well into production and start earning
that was present. “                            revenue faster.

Adds Robinson, “Having our Chief               One of the biggest timesavers for Samson
Operations Officer on board from the start     employees is the drilling scheduler that
helped to build awareness of the solution.     maintains an up-to-the-minute drilling
He knew our pain points and wanted to          schedule based on data gleaned from all
make E&P Net a success.”                       prospects. Employees use built-in alerts
                                               and electronic notifications within E&P Net
In the six months since Samson deployed        to ensure that unforeseen mishaps and
its knowledge management and                   delays do not affect the forward
collaboration solution, employees have         momentum of pre-drill activities. “If we
adopted it almost universally. “The            have a permit specification that says we
importance of this solution can be             can‟t drill a well because of local wildlife
measured by how many people depend on          issues, we can surface that information in
it. Our technical staff uses E&P Net every     E&P Net so that everyone knows about it,
day,” says Robinson. “Every member of the      and we can make appropriate adjustments
asset team—the land man, the geologist,        to our rig schedule,” explains Robinson.
the engineer, the geophysicist, the team       “Or, if we have to spud a well before a
manager—all use E&P Net as they collect,       critical lease expiry date, the system will
analyze, and share data. Other                 flash a red light to keep everyone aware of
departments, including marketing,              the impending deadline.”
“Instead of people                       With everyone following a normalized           Reduced Costs
                                         workflow, employees can transition             Staff uses E&P Net to avoid costly mistakes
building reports                         between asset teams without having to          so that Samson can maintain healthy profit
                                         relearn how things are done at each new        margins in a volatile business. For example,
manually from                            location. “We like to tout employee            missing a critical date to get a well drilled
spreadsheets every                       portability within our organization because    could cost the company tens of thousands
                                         it‟s a very dynamic work environment, and      of dollars in leasehold payments. Relying
week, we are using SQL                   if people can be productive everywhere, it     on built-in alerts in E&P Net, staff can
                                         helps to promote business agility,” says       ensure that everything is done on time.
Server Reporting                         Koscelny. “Now when we hire a
Services to generate                     professional, they get up-to-speed really      Using Microsoft technologies to turn pre-
                                         quickly with E&P Net because everything        drilling activities into a standard, routine
enterprise reports that                  they need to know is in one place.”            process eliminates the costs associated
                                                                                        with suddenly shifting wells up to a higher
have been extremely well                 Using document-versioning capabilities         priority position on the drill schedule. “Our
received by the                          within Office SharePoint Server, employees     Executive Vice President for Drilling
                                         can ensure that all documents that are         estimated that for every well that we fast
organization.”                           checked in and out of E&P Net are kept up-     tracked, we probably incurred an additional
                                         to-date. “Now everyone can stay on the         20 percent of costs to prepare locations
Phillip Robinson, Land Manager, Samson
                    Investment Company   same page with the most current                and acquire materials to make things
                                         information,” says Koscelny. “There‟s no       happen at an accelerated rate. That adds
                                         „churn‟ while some people wait for others      up to millions of dollars,” says Robinson.
                                         to find what they need and to confirm that     “Now we are saving those dollars because
                                         everyone has the latest data so they can act   we aren‟t scrambling to accommodate as
                                         upon it.”                                      many last-minute changes. For example, if
                                                                                        a well got moved from number eight to
                                         Faster Access to Information                   number two in the schedule and
                                         With a single entry point to 12 line-of-       procurement wasn‟t notified right away,
                                         business applications, 2,500 stored            then we would have to buy the right pipe
                                         documents, and a host of unstructured          for that rig at whatever the cost, and the
                                         information, including email messages,         money we spent on a different sized pipe
                                         Samson employees are enjoying easy             for the rig that got bumped down the
                                         access to the company‟s rich data stores.      schedule is not going to be recouped for
                                         This benefit has reduced the time they used    some time. The costs associated with these
                                         to spend searching for information. “E&P       inefficiencies are now avoided.”
                                         Net has removed a lot of the complexity of
                                         the individual applications and data sources   Improved Business Intelligence
                                         by surfacing what our professionals need to    Samson employees use Microsoft database
                                         know in an uncomplicated way,” says            technologies within E&P Net to analyze
                                         Koscelny. “Now they don‟t have to be           copious amounts of data that was
                                         experts in querying individual systems, they   previously unattainable for enterprise
                                         can use E&P Net to get the information         reporting. The result is better insight into
                                         they need in a way that‟s meaningful to        all aspects of pre-drill activities. “Instead of
                                         them.”                                         people building reports manually from
                                                                                        spreadsheets every week, we are using SQL
                                                                                        Server Reporting Services to generate
                                                                                        enterprise reports that have been extremely
“We wanted more                          well received by the organization,” says       “We wanted more efficient upstream
                                         Robinson. “Now they just hit a button and      operations, but were years away,”
efficient upstream                       we have up-to-date data in real time.”         concludes Robinson. “Microsoft technology
                                                                                        allowed us to jump start the project. With
operations, but were                     Employees in the drilling, land service, and   Microsoft, you get the value without the
years away. Microsoft                    gas marketing departments are also using       learning curve. We now have an extensible
                                         reporting services in E&P Net to track their   platform to deliver more value across all
technology allowed us to                 assets. They can generate reports for team     areas of well asset management.”
                                         meetings in seconds, rather than spending
jump start the project.                  hours manually crunching numbers.
With Microsoft, you get
                                         Not only is the company making better use
the value without the                    of its information assets, but as more and
                                         more data is entered into the system,
learning curve.”                         Samson is building a rich source of
Phillip Robinson, Land Manager, Samson   historical information that can be used to
                    Investment Company   uncover best practices that can then be
                                         introduced across the organization. “One of
                                         our goals is to show at a granular level
                                         where our cost estimates are accurate and
                                         where they deviate from actual accounts to
                                         help us predict costs more accurately,” says
                                         Koscelny. “The more data we have in the
                                         solution, the better we can look back and
                                         see where we were spending too much
                                         money and fix that going forward.”

                                         Extensible Well Life Cycle Platform
                                         Now that Samson has experienced the
                                         benefits of Microsoft technologies
                                         combined with the technical expertise of an
                                         industry partner like Idea Integration, the
                                         company is eager to expand E&P Net to
                                         cover the entire well life cycle, from
                                         prospect to shut down. Already, the
                                         company is exploring the benefits of
                                         upgrading E&P Net to Silverlight 4 and
                                         SharePoint Server 2010 to expand the
                                         solution to help capture field data once a
                                         well is in production.
For More Information                                  Microsoft Solutions for the
For more information about Microsoft                  Manufacturing Industry
products and services, call the Microsoft             Manufacturing enterprises must compete in
Sales Information Center at (800) 426-                an increasingly global environment.
9400. In Canada, call the Microsoft                   Success depends on finding ever-greater
Canada Information Centre at (877) 568-               efficiencies throughout the enterprise,
2495. Customers in the United States and              while developing a greater agility to react
Canada who are deaf or hard-of-hearing                to local and global market opportunities.
can reach Microsoft text telephone                    These challenges are best answered with
(TTY/TDD) services at (800) 892-5234.                 technology from Microsoft and its partners.
Outside the 50 United States and                      Microsoft-based solutions offer much
Canada, please contact your local                     needed value to manufacturers who are
Microsoft subsidiary. To access                       under increasing pressure to generate
information using the World Wide Web,                 greater returns on the assets that they have
go to:                                                employed. This focus on efficiency scales
www.microsoft.com                                     across all the critical functional areas—from
                                                      getting products to market faster, to
For more information about Idea                       streamlining the supply chain, optimizing
Integration products and services, call               the manufacturing operations, and
(904) 360-2700 or visit the website at:               generating new revenue streams.
www.idea.com
                                                      For more information about Microsoft
For more information about Samson                     solutions for the manufacturing industry,
Investment Company products and                       go to:
services, call (918) 591-1791 or visit the            www.microsoft.com/resources/manufacturi
website at:                                           ng
www.samson.com



                                                       Software and Services                          Partners
                                                        Microsoft Office                       Idea Integration
                                                         − Microsoft Office SharePoint Server
                                                           2007                                Hardware
                                                        Microsoft Server Product Portfolio     Servers
                                                         − Microsoft SQL Server 2008             − Dell Poweredge, 2-4 CPU Intel Xeon
                                                         − Microsoft SQL Server 2008 R2            processors 2.93 GHz, Memory 4-16
                                                        Technologies                              gigabytes
                                                         − Microsoft .NET Framework 3.5         Desktop
                                                         − Microsoft Silverlight 2               − Dell OptiPlex 380, dual processors, 2.6
                                                         − Microsoft SQL Server 2008               gigahertz, 160 gigabyte hard drive
                                                           Integration Services
                                                         − Microsoft SQL Server 2008 Reporting
                                                           Services




This case study is for informational purposes only.
MICROSOFT MAKES NO WARRANTIES, EXPRESS OR
IMPLIED, IN THIS SUMMARY.

Document published December 2010

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Oil and Gas Company Standardizes Workflows, Saves Millions of Dollars

  • 1. Microsoft Customer Solution Manufacturing Industry Case Study Oil and Gas Company Standardizes Workflows, Saves Millions of Dollars Overview “We use E&P Net as a single repository for projects to Country or Region: United States Industry: Oil and gas efficiently manage the flux in our drilling schedules. Now the organization can stay abreast of changes and Customer Profile Samson Investment Company is a react in as expedient a manner as possible.” privately held oil and gas exploration and D.J. Ponville, Executive Vice President, Drilling and Operations, production company headquartered in Samson Investment Company Tulsa, Oklahoma. It operates more than 4,000 wells and employs 1,200 people. Samson Investment Company is an upstream oil and gas company. Employees have to manage a large volume of data Business Situation Samson employees invested significant generated from evaluating well prospects, and it was difficult for time in accessing information housed in them to find information in third-party solutions and data silos. data silos, impeding the enterprisewide collaboration that is required for efficient Teams approached pre-drill workflows differently, and well development activities. management had difficulty assessing global operations and Solution coordinating drilling schedules. Samson addressed most of Samson deployed E&P Net, a portal these issues with a knowledge management and collaboration solution based on Microsoft technologies. Staff use it to access solution based on Microsoft Office SharePoint Server 2007 and consolidated data and follow Microsoft SQL Server 2008 R2. With streamlined access to standardized, collaborative activities for well development and drilling. consolidated data, Samson employees no longer spend a significant amount of time looking for information. Staff uses Benefits  More efficient operations built-in scheduling logic to maximize efficiency to prepare the  Faster access to information surface for rig move in and materials acquisition. Field labor  Reduced costs  Improved business intelligence costs are reduced by avoiding expedited location preparations.  Extensible well life cycle platform
  • 2. “With information Situation date on rapidly changing developments in Samson Investment Company was founded the field. changing in the in Tulsa, Oklahoma, in 1971 by Charles Schusterman. It began operations with 20 “Each asset team maintained its drilling spreadsheets daily, we employees and 30 wells. Today, it is the opportunities in a spreadsheet that were constantly juggling largest privately held producer of natural contained information about each gas in the United States, employing more prospect,” explains Tom Koscelny, Quality the drilling schedules.” than 1,200 people and operating Control Manager at Samson Investment approximately 4,000 wells throughout the Company. “A prospect begins when a Tom Koscelny, Quality Control Manager, Samson Investment Company country. geologist decides to explore a geographic area to determine if it‟s viable to acquire oil Upstream oil and gas companies focus on and gas leases to drill a well. We want to finding and developing new reserves, with manage the process from conception, operations that cover exploration to through negotiating leaseholds, through drilling. Samson attributes its profitable scientific and economic analyses of the pursuit of natural gas and crude oil to a opportunity, right up to the point when we highly motivated workforce, an abundance schedule a rig to spud the well.” of in-house expertise and business acumen, and the innovative use of technology. Volatile Rig Schedules It is the asset teams‟ goal to ensure that High Data Volume rigs are scheduled to drill the most Fifteen asset management teams at profitable opportunities first and as soon as Samson work to evaluate prospects, they are ready. The logistics associated with perform pre-drill activities, and schedule drilling a well are complex. Regulatory rigs to “spud” or drill, a well. However, the permits have to be obtained. Locations sheer volume of information generated by have to be physically ready for a rig to the teams had become a bottleneck in move in, and materials for well construction efficient operations. While the company have to be ordered and delivered in sync had invested in sophisticated third-party with rig movements. Significant costs are petrotechnical and seismic analysis incurred if anything is out of sync. To solutions that generated large volumes of schedule rigs and avoid cost overruns, data, it had yet to find the right technology Samson employees require an enterprise solution for its geologists, geophysicists, view of all the prospects under land managers, and engineers to take investigation by the 15 asset teams. control of this information, including However, because each team maintained its additional documents, maps, surveys, and own spreadsheets and data silos, it was contracts. difficult to efficiently schedule all the rigs to work at optimal profitability. Samson needed an information management and collaboration solution “With information changing in the that would be flexible enough to spreadsheets daily, we were constantly standardize and automate the asset teams‟ juggling the drilling schedules,” says different workflows, as well as to gather Koscelny. “We would see some promising and consolidate data from various sources. results come in for one prospect and move The company also wanted to enable real- that up the schedule, and then the next day time collaboration to keep everyone up-to- something would change and we would move another prospect up. We‟ve had 25
  • 3. versions of our drill schedule in different and find the information you need,” says “We didn‟t want our spreadsheets at a single time.” Phillip Robinson, Land Manager at Samson business to adapt to the Investment Company. “Some asset teams To complicate matters, the asset teams had a technical assistant who would help software; we wanted the worked with other Samson departments to gather the information, but we wanted acquire leases, ensure environmental more of a self-serve environment for our software to adapt to our regulatory compliance, and order materials professionals.” needs. Microsoft for well construction. “One challenge the industry faces is managing the change Limited Business Intelligence technologies offered the associated with a dynamic drilling schedule Without a centralized data store and an that is inevitable given the nature of the enterprise content management solution flexibility and business,” says D.J. Ponville, Executive Vice complete with standard taxonomy, Samson interoperability that we President, Drilling and Operations at management had a limited view into the Samson Investment Company. “While we business. It was difficult to compare needed.” are fortunate in that we have a dedicated progress status across asset teams and to workforce that is committed to doing archive pre-drill project information. With Phillip Robinson, Land Manager, Samson Investment Company whatever is necessary to adapt to the so much information hidden in personal changes, this is an area we have long computers or remaining locked inside targeted for improvement. This is because people‟s heads, the company couldn‟t take the compressed planning cycles and full advantage of the collective expertise of potential communication lapses could its professionals. compromise our ability to execute effectively and at the very least put undue All business units agreed that the company pressure on the organization.” needed to find a better way to manage its pre-drill work processes and inventory of Productivity Impact prospects to reduce costs and accelerate When highly compensated professionals drilling time. To accomplish these goals, the have to spend time searching for data, they company focused on an enterprise are not being productive. Yet to gather the knowledge management and collaboration information they needed, Samson solution to build standardization and professionals could spend up to 20 percent efficiency into each important stage of a of their time looking for information locked well‟s life cycle. inside email messages, shared folders, and hard drives on individual‟s computers. They Solution had to search through 12 line-of-business Samson Investment Company recognized applications and third-party products, that a solution built on Microsoft including finance, drilling, well technologies would interoperate with its management, land management, existing infrastructure. “We looked at off- geophysical analysis, risk management, and the-shelf solutions, but none were dynamic oil and gas economic evaluation software or flexible enough to address our specific packages. They also had to consider data problems,” says Robinson. “We didn‟t want from a lease broker system and a land our business to adapt to the software; we surface cost analysis solution. wanted the software to adapt to our needs. Microsoft technologies offered the “Because of the complex nature of the flexibility and interoperability that we third-party applications, you almost had to needed.” be a trained expert in the software to go in
  • 4. document repository and currently houses 2,500 documents. E&P Net also uses SQL Server 2008 R2, including SQL Server 2008 Integration Services to pull data from 12 different line-of-business applications and SQL Server 2008 Reporting Services for reporting. E&P Net was built using the Microsoft .NET Framework 3.5. E&P Net showcases the Microsoft Silverlight 2 browser plug-in—a powerful development environment for creating engaging, interactive user experiences for the web. “To encourage user adoption, we wanted our knowledge management and collaboration solution to have an intuitive graphic user interface,” says Koscelny. “Idea Integration has expertise working with Silverlight as an application development framework, and when they demonstrated Silverlight in action, we were convinced by Figure 1. With E&P Net, Samson Samson had deployed an intranet based on its speed, flexibility, and rich functionality.” staff gained instant access to Microsoft Office SharePoint Server 2007 information on all prospecting that a few asset teams used to collaborate E&P Net uses Silverlight for all functionality, and well development on individual prospects. The company also including interoperating with a GIS map activities. The browser-based, used Microsoft SQL Server 2008 data interface that relates structured data and collaborative portal is built on management software to build a data documents to a well‟s geographic location Microsoft Office SharePoint warehouse. “We had the key components using ArcGIS Server 9.3 from Microsoft Server technologies and in place, so we needed a partner that could Gold Certified Partner ESRI (Figure 1). “With delivers a rich, interactive user help us build a solution to extrapolate the E&P Net, we have gained a master system interface based on Microsoft benefits of our existing IT investments,” of records for all prospecting and well Silverlight. says Koscelny. “When our GIS [geographic development activities, including geospatial information system] vendor, ESRI, document management, rig scheduling, recommended Idea Integration, we invited approval processes, electronic notifications, them to demonstrate a Microsoft-based and enterprise reporting,” says Koscelny. solution that they had built for another “All that integrated functionality delivered company.” through a fast, engaging Silverlight-based user interface is what gives E&P Net its Impressed by what Idea Integration had to power.” offer, Samson began working with the Microsoft Gold Certified Partner in January E&P Net helps to streamline common 2009 to build and deploy a composite workflows. For example, to examine a application that would streamline all pre- prospect that is going to be drilled, an drill activities. Samson and Idea Integration employee can open E&P Net and choose developed E&P Net, a browser-based, from a series of tabs. The map tab uses the collaborative portal that is built on Office Deep Zoom feature within Silverlight to SharePoint Server, which acts as a central zoom to a standard scale around the well
  • 5. site. By using the document tab, an environmental, land, accounting, and employee can view all documents purchasing, use it to support the asset associated with a particular well or teams as they move rigs into production.” geographical area. To schedule a rig, an employee can drag wells to associate them Benefits with different rigs. The solution uses a As a result of deploying E&P Net, Samson sophisticated set of business rules to Investment Company has streamlined import current information about the well operations, simplified data access, reduced and calculate where it should be in the operating costs, and improved business overall drilling schedule. intelligence. And because E&P Net is built on interoperable Microsoft technologies, The team publicized E&P Net on the Samson has gained an extensible platform Samson intranet, performed a demo for to cover all stages of a well‟s life cycle. company engineers, and released a video “Drilling wells is the core function of that featured screenshots of the graphical, Samson, and since deploying E&P Net to map-driven user interface to drive interest. manage our well life cycle, we‟ve enhanced Samson launched the solution in March productivity and efficiency,” says Robinson. 2010. “We use E&P Net as a single repository for projects to efficiently More Efficient Operations manage the flux in our drilling schedules. Samson employees can now work more Now the organization can stay abreast of efficiently through a coordinated, changes and react in as expedient a automated, and streamlined series of steps. manner as possible,” says Ponville. “I have These steps promote collaboration among been surprised by how quickly the Samson departments and greater organization has implemented the system collaboration means that Samson can move and view that as a testimony to the need a well into production and start earning that was present. “ revenue faster. Adds Robinson, “Having our Chief One of the biggest timesavers for Samson Operations Officer on board from the start employees is the drilling scheduler that helped to build awareness of the solution. maintains an up-to-the-minute drilling He knew our pain points and wanted to schedule based on data gleaned from all make E&P Net a success.” prospects. Employees use built-in alerts and electronic notifications within E&P Net In the six months since Samson deployed to ensure that unforeseen mishaps and its knowledge management and delays do not affect the forward collaboration solution, employees have momentum of pre-drill activities. “If we adopted it almost universally. “The have a permit specification that says we importance of this solution can be can‟t drill a well because of local wildlife measured by how many people depend on issues, we can surface that information in it. Our technical staff uses E&P Net every E&P Net so that everyone knows about it, day,” says Robinson. “Every member of the and we can make appropriate adjustments asset team—the land man, the geologist, to our rig schedule,” explains Robinson. the engineer, the geophysicist, the team “Or, if we have to spud a well before a manager—all use E&P Net as they collect, critical lease expiry date, the system will analyze, and share data. Other flash a red light to keep everyone aware of departments, including marketing, the impending deadline.”
  • 6. “Instead of people With everyone following a normalized Reduced Costs workflow, employees can transition Staff uses E&P Net to avoid costly mistakes building reports between asset teams without having to so that Samson can maintain healthy profit relearn how things are done at each new margins in a volatile business. For example, manually from location. “We like to tout employee missing a critical date to get a well drilled spreadsheets every portability within our organization because could cost the company tens of thousands it‟s a very dynamic work environment, and of dollars in leasehold payments. Relying week, we are using SQL if people can be productive everywhere, it on built-in alerts in E&P Net, staff can helps to promote business agility,” says ensure that everything is done on time. Server Reporting Koscelny. “Now when we hire a Services to generate professional, they get up-to-speed really Using Microsoft technologies to turn pre- quickly with E&P Net because everything drilling activities into a standard, routine enterprise reports that they need to know is in one place.” process eliminates the costs associated with suddenly shifting wells up to a higher have been extremely well Using document-versioning capabilities priority position on the drill schedule. “Our received by the within Office SharePoint Server, employees Executive Vice President for Drilling can ensure that all documents that are estimated that for every well that we fast organization.” checked in and out of E&P Net are kept up- tracked, we probably incurred an additional to-date. “Now everyone can stay on the 20 percent of costs to prepare locations Phillip Robinson, Land Manager, Samson Investment Company same page with the most current and acquire materials to make things information,” says Koscelny. “There‟s no happen at an accelerated rate. That adds „churn‟ while some people wait for others up to millions of dollars,” says Robinson. to find what they need and to confirm that “Now we are saving those dollars because everyone has the latest data so they can act we aren‟t scrambling to accommodate as upon it.” many last-minute changes. For example, if a well got moved from number eight to Faster Access to Information number two in the schedule and With a single entry point to 12 line-of- procurement wasn‟t notified right away, business applications, 2,500 stored then we would have to buy the right pipe documents, and a host of unstructured for that rig at whatever the cost, and the information, including email messages, money we spent on a different sized pipe Samson employees are enjoying easy for the rig that got bumped down the access to the company‟s rich data stores. schedule is not going to be recouped for This benefit has reduced the time they used some time. The costs associated with these to spend searching for information. “E&P inefficiencies are now avoided.” Net has removed a lot of the complexity of the individual applications and data sources Improved Business Intelligence by surfacing what our professionals need to Samson employees use Microsoft database know in an uncomplicated way,” says technologies within E&P Net to analyze Koscelny. “Now they don‟t have to be copious amounts of data that was experts in querying individual systems, they previously unattainable for enterprise can use E&P Net to get the information reporting. The result is better insight into they need in a way that‟s meaningful to all aspects of pre-drill activities. “Instead of them.” people building reports manually from spreadsheets every week, we are using SQL Server Reporting Services to generate enterprise reports that have been extremely
  • 7. “We wanted more well received by the organization,” says “We wanted more efficient upstream Robinson. “Now they just hit a button and operations, but were years away,” efficient upstream we have up-to-date data in real time.” concludes Robinson. “Microsoft technology allowed us to jump start the project. With operations, but were Employees in the drilling, land service, and Microsoft, you get the value without the years away. Microsoft gas marketing departments are also using learning curve. We now have an extensible reporting services in E&P Net to track their platform to deliver more value across all technology allowed us to assets. They can generate reports for team areas of well asset management.” meetings in seconds, rather than spending jump start the project. hours manually crunching numbers. With Microsoft, you get Not only is the company making better use the value without the of its information assets, but as more and more data is entered into the system, learning curve.” Samson is building a rich source of Phillip Robinson, Land Manager, Samson historical information that can be used to Investment Company uncover best practices that can then be introduced across the organization. “One of our goals is to show at a granular level where our cost estimates are accurate and where they deviate from actual accounts to help us predict costs more accurately,” says Koscelny. “The more data we have in the solution, the better we can look back and see where we were spending too much money and fix that going forward.” Extensible Well Life Cycle Platform Now that Samson has experienced the benefits of Microsoft technologies combined with the technical expertise of an industry partner like Idea Integration, the company is eager to expand E&P Net to cover the entire well life cycle, from prospect to shut down. Already, the company is exploring the benefits of upgrading E&P Net to Silverlight 4 and SharePoint Server 2010 to expand the solution to help capture field data once a well is in production.
  • 8. For More Information Microsoft Solutions for the For more information about Microsoft Manufacturing Industry products and services, call the Microsoft Manufacturing enterprises must compete in Sales Information Center at (800) 426- an increasingly global environment. 9400. In Canada, call the Microsoft Success depends on finding ever-greater Canada Information Centre at (877) 568- efficiencies throughout the enterprise, 2495. Customers in the United States and while developing a greater agility to react Canada who are deaf or hard-of-hearing to local and global market opportunities. can reach Microsoft text telephone These challenges are best answered with (TTY/TDD) services at (800) 892-5234. technology from Microsoft and its partners. Outside the 50 United States and Microsoft-based solutions offer much Canada, please contact your local needed value to manufacturers who are Microsoft subsidiary. To access under increasing pressure to generate information using the World Wide Web, greater returns on the assets that they have go to: employed. This focus on efficiency scales www.microsoft.com across all the critical functional areas—from getting products to market faster, to For more information about Idea streamlining the supply chain, optimizing Integration products and services, call the manufacturing operations, and (904) 360-2700 or visit the website at: generating new revenue streams. www.idea.com For more information about Microsoft For more information about Samson solutions for the manufacturing industry, Investment Company products and go to: services, call (918) 591-1791 or visit the www.microsoft.com/resources/manufacturi website at: ng www.samson.com Software and Services Partners  Microsoft Office  Idea Integration − Microsoft Office SharePoint Server 2007 Hardware  Microsoft Server Product Portfolio  Servers − Microsoft SQL Server 2008 − Dell Poweredge, 2-4 CPU Intel Xeon − Microsoft SQL Server 2008 R2 processors 2.93 GHz, Memory 4-16  Technologies gigabytes − Microsoft .NET Framework 3.5  Desktop − Microsoft Silverlight 2 − Dell OptiPlex 380, dual processors, 2.6 − Microsoft SQL Server 2008 gigahertz, 160 gigabyte hard drive Integration Services − Microsoft SQL Server 2008 Reporting Services This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Document published December 2010