RBC Capital Markets RBC Capital Markets Global Energy & Power - PDF document

RBC Capital Markets’ RBC Capital Markets’ Global Energy & Power Conference Global Energy & Power Conference June 2 June 2 - 3, 2014 3, 2014 The Ritz The Ritz-Carlton Carlton Battery Park, New York Battery Park, New York

Slid e 1 RBC Capital Markets’ RBC Capital Markets’ Global Energy & Global Energy & Power Conference Power Conference June 2 June 2 - 3, 2014 3, 2014 The Ritz The Ritz-Carlton Carlton Battery Park, New York Battery Park, New York Slid e 2 Three principal business lines: 1. Reservoir Description 2. Production Enhancement 3. Reservoir Management Slid e 3 Th e De e p w a t e r Er a The Deepwater Era Core Lab’s operational focus remains on crude oil- field development projects, with growing emphasis on delivering technology to our clients to assist in their efforts to maximize the return from their deepwater developments. 2

Slid e 4 Th e De e p w a t e r Er a Presentation Walk-away Points: • How a Reservoir Actually Works • The Decline Curve Will Always Win • Core’s Differentiating Technologies • Core’s Industry Leading Shareholder Returns Slid e 5 Th e De e p w a t e r Er a Our services and products focus on maximizing production rates and ultimate reserves to maximize our clients’ return on their investments. Slid e 6 Th e De e p w a t e r Er a Primary Business Drivers 1. Reservoir Description: Laboratory-based Services with International & Oil Focus 2. Production Enhancement: Products and Services for Wellbore Completions – 2/3 North America & 1/3 International 3. Reservoir Management: Global Focus 3

Slid e 7 Th e De e p w a t e r Er a Core Lab targets the more stable, less volatile, production and production enhancement component of the oil companies’ budget. Slid e 8 Th e De e p w a t e r Er a The Lower Tertiary in the deepwater Gulf of Mexico brings new technological challenges for operators. Our services and products are used to maximize recovery from these reservoirs where ultra high pressures and temperatures make exploitation a challenge. Slid e 9 Th e De e p w a t e r Er a The Decline Curve Core Lab provides services through its three operating segments at points all along the decline curve: � Reservoir Description � Production Enhancement � Reservoir Management 4

Slid e 1 0 Th e De e p w a t e r Er a Reservoir Description Our first business unit – Reservoir Description – analyzes actual reservoir rocks and fluids to provide data sets that accurately characterize the reservoir. These precise measurements create the “base truth” from which to build the field’s reservoir optimization model. These measurements are invaluable in order to determine probable versus proven reserves in-place. Slid e 1 1 Th e De e p w a t e r Er a Reservoir Description Leaders in rock property analysis from the traditional perspective to … Slid e 1 2 Th e De e p w a t e r Er a Reservoir Description … the most advanced. 5

Slid e 1 3 Th e De e p w a t e r Er a Reservoir Description Leaders in reservoir fluid analysis … Analyses of reservoir fluid properties are gaining in importance as the fluids (e.g. – oil and gas) are indeed the economic driver in the reservoir. Slid e 1 4 Th e De e p w a t e r Er a Reservoir Description The value of crude oil is directly related to the amount of gasoline that can be refined from the particular crude oil being produced. Our clients want to know the characteristics of their crude oil to better assess the economics that can be obtained from the crude oil and its derived products. Slid e 1 5 Th e De e p w a t e r Er a Reservoir Description Many developments in the deepwater plays will face the prospect of lower than average natural recovery rates. These fields are oftentimes undersaturated in natural gas – which reduces the drive mechanism for natural recovery. Ultimately, these fields will need secondary and tertiary field flood techniques to maximize their ultimate recovery. 6

Slid e 1 6 Th e De e p w a t e r Er a Production Enhancement Our next business unit – Production Enhancement – provides products and services designed to minimize formation damage and maximize production flow rates. The Goal - optimizing reservoir value. Following is a case study of the application of our services and products aimed at enhancing production from long- reach horizontal well bores being drilled to exploit shale reservoirs. Slid e 1 7 Th e De e p w a t e r Er a Production Enhancement The high pressures and temperatures encountered in these deepwater environments present challenges for the instrumentation and equipment that will be used in these hostile reservoir conditions. Our new HPHT TM Ultra High- Pressure-Ultra High Temperature perforating system was designed for the challenge. Slid e 1 8 Th e De e p w a t e r Er a Production Enhancement Our HPHT TM perforating system was recently developed to provide superior penetration into these reservoirs – our systems will work in conditions where temperatures can reach 350 • F and pressures can reach 25,000 psi. 7

Slid e 1 9 Th e De e p w a t e r Er a Production Enhancment The PackScan TM Imaging Tool Introducing our newest diagnostics application for completion evaluation in the deepwater environment… Slid e 2 0 Th e De e p w a t e r Er a Production Enhancement The PackScan TM Imaging Tool Gravel pack completions may be required in reservoirs that are friable as operators will seek to protect production equipment from damage caused by fine grain particles flowing up the wellbore with the produced hydrocarbons. Slid e 2 1 Th e De e p w a t e r Er a Production Enhancement The PackScan TM Imaging Tool Our imaging diagnostics is designed to evaluate the effectiveness of the gravel pack completion before production begins. Several of our proprietary services are used to determine the competency of the gravel pack. 8

Slid e 2 2 Th e De e p w a t e r Er a Production Enhancement The PackScan TM Imaging Tool After placing our tracers within the flow of the gravel down the wellbore to create the gravel pack completion, our proprietary SpectraScan TM tool will determine the extent of the gravel pack in the screen area at the reservoir face. Slid e 2 3 Th e De e p w a t e r Er a Production Enhancement The PackScan TM Imaging Tool Slid e 2 4 Th e De e p w a t e r Er a Production Enhancement The PackScan TM Imaging Log This is the end-product delivered to the client – a visual representation of the wellbore where the screen and the gravel pack were placed. Importantly, our diagnostics can show the operator whether the screen is effectively protected by the gravel pack or remedial work is needed to ensure an effective pack is in-place prior to commencing production. 9

Slid e 2 5 Th e De e p w a t e r Er a Reservoir Management Our third unit – Reservoir Management – focuses on leveraging the knowledge gained from the data sets we created in our Reservoir Description unit along with our Production Enhancement projects to solve reservoir-wide issues which a client may have. Our integrated approach is designed to help clients solve wide ranging production problems they may be incurring. Slid e 2 6 Th e De e p w a t e r Er a Reservoir Management Maximizing production and recoverables oftentimes can be increased by designing and implementing a field flood. Effective field floods can be done using water as the flooding agent, or even by using carbon dioxide or nitrogen. Or, let us design a miscible gas flood by reinjecting natural gas along with CO2 and Nitrogen. Under laboratory conditions, simulating reservoir temperatures and pressures, we can design optimum field floods. Slid e 2 7 Th e De e p w a t e r Er a Reservoir Management Core Lab has been developing high-pressure miscible gas injection technology to address the challenges of maximizing oil recovery in undersaturated deepwater fields. Reservoirs that are undersaturated in natural gas may produce fewer original barrels in-place. To optimize daily production and maximize ultimate recovery, the operator needs to keep the crude oil saturated with natural gas and keep that gas in solution by maintaining reservoir pressure above the bubble point. 10

Slid e 2 8 Th e De e p w a t e r Er a Reservoir Management Many deepwater fields are undersaturated in natural gas which can lead to lower ultimate hydrocarbon recovery that could lower an oil company’s return on investment. Here we start with a pressure maintenance program done by reinjecting natural gas into the oil field to enable maximum production at this point in the field’s life. Slid e 2 9 Th e De e p w a t e r Er a Reservoir Management Based on the results from our reservoir characterization analysis, we can make recommendations on how to improve the results of a flood. Recommendations designed to increase incremental production can range from changing the flood agent, the rate of injection of those agents, the location of the injector wells, or perhaps, the location of new producing wells. After a field flood is designed, we can monitor the progress of the flood and analyze the results through our inter-well diagnostics. Slid e 3 0 Our operating margins have continued to expand as we have been able to develop new technologies - which we then strive to offer our clients throughout our existing international platform. These three growth strategies have been essential ingredients to our improving performance. 11