This document contains confidential information about Shear FRAC Group, LLC. It discusses ShearFRAC's real-time intelligent fracturing technology, which provides second-by-second fracture measurements and active fracture guidance to optimize fracture surface area. The technology aims to improve completion effectiveness, increase production, access more hydrocarbons, and save money on water and pumping costs by providing a link between geology, drilling, and reservoir engineering through completions optimization. Recent research on hydraulic fracturing indicates that rejuvenating natural fractures and bedding planes dominates fractured surface area creation.

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Shear FRAC Group, LLC. The information is intended for the sole use
of the individual or entity. Distribution of this information to third
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FRAC Group, LLC. Shear FRAC Group, LLC accepts no liability for any
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REAL-TIME INTELLIGENT FRACTURING:
Optimizing fracture surface area
Delivering Second-by-second fracture measurements and active
fracture guidance to visualize rock response and optimize fracture
surface area
Providing world class completion and reservoir engineering technology
to provide further insight into unconventional asset development

2. 2
Why ShearFRAC®?
Blanket Recipe
Rock properties
change from stage
to stage. The
application of rate
and proppant
should too.
Expensive Data
Turn low cost
surface pressure
data into high
value actionable
decision making.
Energy Transfer
Execution mindset
away from sand
disposal mentality.
Working proppant
vs. conductive
proppant.
Improved proppant
transport.
Digital
Transformation
Real-time rock
response for
interactive
fracturing.
More attention on
your biggest spend.
Quality control.
Data Quality
Historical frac data
missing/repeating
values from filtered
data. Sensors used
to control
equipment.

3. 3
FracBRAIN® - Live Streamed
During Field Operations
**FSA measurement
**Real-time FDI visualization and
analytics
**Active Guidance (AG)
Phase 1
Stage Fall Off Pressure
Transient Analysis (PTA)
** Flow regime and PI analysis
**Hydraulicly connected surface
area
ResBRAIN® 90/180-day
Production Report – Rate
Transient Analysis (RTA) or
Decline Curve Analysis
(DCA)
**Producing surface area
**EUR calculations
Phase 3
We deliver fracture surface area measurements from stage level to well level
0 50 100
Pad
HC
Rate
per
1000',
BOE/d
Time, days
Technology Workflow – Link between Geology and Reservoir Engineering
Phase 2

4. 4
FracBRAIN® displays active well rock response, fracture surface area, and FDI visualization
FracBRAIN® is a completions manufacturing visualization dashboard that measures how the formation is fracturing
each second and how the active well is interacting with offset wells, providing intelligent recommendations for
adjustments to increase fracture surface area and decrease FDI’s
Live stream fracture surface area measurements to the field which are used to make second-
by-second, real-time adjustments to improve completion effectiveness of each stage
a real-time, web based, completions platform

5. 5
Variations in Geology
Jo Mill:
- fine sandstone
- more permeable
- thicker bedding
- low fracture
intensity
- low magnitude
breaks
Wolfcamp A:
- organic-rich shale
- high concentration of
micro-fractures
- highly laminated
- high fracture
intensity
- high magnitude
breaks
BEG Reservoir Characterization
CoreLab Depositional Systems
We measure how the rock is breaking, results impacted by geology & geomechanical stresses

6. 6
• Ensure casing pressure transducer is installed as close to the wellhead as possible
Goat Head
Upper and Lower Master Valves
Tubing Head
Pump-Down Valves
Flowback Valves
Casing Pressure
transducer
Production Casing Wing valves
Top View
Please confirm with FracBRAIN® operator
which output channel is recording
Non-intrusive, Easy Adoption
2” 1502 Tee with 2” wing
2” 1502 ShearFRAC®
pressure gauge

7. 7
Active Guidance (AG)
Case Study: Midland Basin
Improve frac energy efficiency focused on breaking new rock

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 Real-time completions improve created
fracture surface area using Active Guidance
 Visualization dashboard used to actively
manage fracture driven interactions (FDI’s)
 Cost savings in fluid and pump time
Proven correlation between EUR and shear fractures per barrel pumped –
correlations strong in geological horizons
Greater than 30%
improvement in BOE/Stage
0
500
1000
1500
2000
2500
3000
3500
4000
0 10 20 30 40 50 60 70 80 90
BOE/Stage
Time, d
Charger 130LS
Charger 145LS
0
500
1000
1500
2000
2500
3000
3500
4000
0 10 20 30 40 50 60 70 80 90
BOE/Stage
Time, d
Charger 125WA
Charger 135WA
Charger 145WA
Offsets ShearFRAC

12. 12
Post Stage PTA
Case Study: Delaware Basin
Measurement constrained reservoir engineering

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Real-time FDI monitoring
Case Study: Optimized Well Spacing
Real-time FDI mitigation with Active Guidance

17. 17
Real-time FDI Example – Eagle Ford
Stage Chart: Well C Stage 47
- Pressure
- Rate
- Proppant Concentration
- Fracture Surface Area
- Complexity / block size
Pressure Derivative:
- Change of slope in Well O1
pressure
- Differentiate between
pumping and FDI
Relative Pressure:
- Absolute pressure increase
in Well O1
- Total magnitude of FDI
Working proppant concentration
increases FSA – no FDI detected
FDI detected in
change of slope
flagging VFR and
magnitude
Active FDI mitigation:
rate, proppant, HVFR
FDI reduced and FSA
creation increases

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FDI Dashboard Overview Plots to display FDI Metrics on the most recent stages
Shows the active or the most
recent stage
Shows the active or the most
recent stage
Can be expanded to show the entire well

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What Can ShearFRAC® Do for You?
Real Time Fracture Guidance – FracBRAIN® provides completion engineers with
a new lens to change input variables and improve how the rock is breaking.
 Increase Production
 Access more hydrocarbon in Reservoir
 Save Money on Water & Pumping Costs
Provide the missing link – between geology, drilling & reservoir engineering
through completions.
 Optimize landing depth & well spacing
 Optimize proppant schedule & Prevent Screen Outs

24. Increase Well
Productivity (EUR)
Unify
Geoscience-Completions-Reservoir
Thank You!
Save On Water Costs

25. 25
Recent Research and
Publication Update
Fracture Theory Evolution – if time allows

26. 26
Geology and Fracture Understanding
More Shear fracture created in a stage = more propped fracture surface area
• Rejuvenation of natural
fractures and bedding
planes dominate
fractured surface area
*University of Toronto - Stimulated rock volume consortium:
June 2022 - mr.adam@utoronto.ca *formation specific

27. 27
Learning from HFTS1 & HFTS2 Core
Variable Morphology complex breaks and irregular patterns, stepping planes, and smooth features
*GTI Energy – HFTS Overview & Summary of Selected Results
Jordan Ciezobka - Wed(NSI)day - 5/25/22

28. 28
Fracture Clusters and Intensity (Midland)
Note upper Wolfcamp fracture swarming and voids, not related to perforation geometry
*GTI Energy – HFTS Overview & Summary of Selected Results
Jordan Ciezobka - Wed(NSI)day - 5/25/22

29. 29
Fracture Clusters and Intensity (Delaware)
Note upper Wolfcamp fracture swarming and voids, not related to perforation geometry
*GTI Energy – HFTS Overview & Summary of Selected Results
Jordan Ciezobka - Wed(NSI)day - 5/25/22

30. 30
Fracture Clusters and Intensity (Delaware)
More fracture Observed 40’ above producer, notice location of proppant
*GTI Energy – HFTS Overview & Summary of Selected Results
Jordan Ciezobka - Wed(NSI)day - 5/25/22

31. Increase Well
Productivity (EUR)
Unify
Geoscience-Completions-Reservoir
Thank You!
Save On Water Costs