Trican Well Service - Unconventional Resources Presentation

Company Overview

International pressure pumping company headquartered in Calgary, Alberta, Canada

Operating bases on five continents

Largest pressure pumping company in Canada and a leading fracturing company in Russia, with growing operations in the United States, Kazakhstan, Algeria, Saudi Arabia, Colombia, Norway and Australia

Trican Well Service Ltd.

History

Formed as a Canadian public company

1996

2000

Entered the Russian market

Formed Industrial Cleaning and Pipeline Services group

2002

Expanded operations into Eagle Ford shale in USA

Entered the Australian market

2011

2007

Entered U.S. and Algeria

Formed JV in Saudi Arabia

Expanded operations into Marcellus Shale in the USA

2010

2012

Opened R&D Centres in Moscow and Houston

Expanded into the U.S. Bakken

Formed JV in Colombia

Formed an alliance with Emerald Surf Sciences for Water Management

Formed a Completion Systems and Downhole Tools group and acquired i-TEC Well Solutions

Formed JV with GeoTomo for microseismic interpretation and application

Global Core Services

Fracturing Cementing Coiled Tubing Acidizing Nitrogen Industrial Cleaning & Pipeline Services Microseismic Fracture Mapping Geological Solutions Completion Systems and Downhole Tool

Services

With a recognized commitment to training, safety, quality and R&D, Trican is a technical leader in each of our service lines.

Safety

At Trican, we make health and safety a top priority and have developed a comprehensive safety program.

Audited Safety Program New Employee Orientation and

long-term training After consulting with employees in 2006,

Trican introduced Target Zero as an ongoing safety initiative, encouraging safety in the workplace

Experience

800 Mt Frac

Helicopter FracHorizontal CT Logging Helicopter Frac

800 Mt Frac40,000 HP Frac

Canada Geographic Coverage

Canada geographic equipment distribution

Current Canadian fleet

·414,000 fracturing HP

·56 Cementing units

·38 N2 Pumpers

·19 Acid Units

·20 Coil Units

US Geographic Coverage - Fracturing

Trican’s eight operational bases provide fracturing services supported by 17 frac fleets and 573,500 HHP.

Base Equipment

Longview:2 frac fleets; 22 pumps each; 44 total; 88,000 HHP

Mathis:2 frac fleets; 15 pumps each; 30 total; 75,000 HHP

Mill Hall:3 frac fleets; 18 pumps each; 54 total; 135,000 HHP

Minot: 1 frac fleet; 9 pumps; 22,500 HHP

Odessa: 3 frac fleets; 31 pumps; 75,000 HHP

Searcy: Non-operational, administrative base

Shawnee:2 frac fleets; 13 pumps each; + 1 foam frac fleet; 28 total; 56,000 HHP

Springtown:2 frac fleets; 14 pumps each; 1 spare; 29 total; 58,000 HHP

Woodward:2 frac fleets; 16 pumps each; 32 total; 64,000 HHP

Frac Equipment

Technology and Innovation

With a comprehensive and integrated approach to innovation, our technical teams share expertise, knowledge and ideas across geographic borders. This enables us to be nimble, responding to our customers quickly to provide effective solutions in any location. Some of our technological innovations include:

MVP Frac™ FlowRider BPS (Burst Port System)® EcoClean-XB™ Novum TriFrac-C™ Polar Frac™ GNE-1 Divertsol TriFrac-MLT Friction Reducers AccuLite™ Green Chemistry

MVP Frac

MVP Frac

Slickwater system that increases production from the well.

Patented chemical solution that reduces proppant settling in slick water fracs

Over 1600 fracs completed with this technology in the Cardium, Montney and Deep Basin

20% increased production from wells based on initial case history

Strong market acceptance in Canada; introducing to U.S. in Q3 2013

Test Results – Sand – Water

Proppant bed height of greater than 40%Maximum wellbore proppant pack

Sand and Water at 60 gal/min

20% of the proppantflowed out of the model

Sand and Water and FlowRider™ at 60 gal/min

10% of the proppant flowed out of the model

Test Results – Sand – Water – Gas

Test shows excellent proppant transport and floating sand

Floating Proppant

Gas Porosity

Test Results – Sand – Water – Gas

Gas breakthrough creates flow channels

Gas

Gas Breakthrough

Economical

Works with conventional frac sands

Eliminates the need for expensive gelled fluid used for higher sand concentrations

43 g of settled proppant following agitationConventional slick water slurry

(left) and MVP frac slurry (rihgt)

TriFrac MLT System

“Money and Fresh Water are Terrible Things to Waste”

TriFrac-MLT Frac System

TriFrac-MLT is an innovative, high performance hydraulic fracturing fluid system that enables operators to use 100% flowback or produced water. It is a Patent Pending system exclusive to Trican. Trican currently maintains a competitive advantage with this fluid system and have a Customer interest.

1. To simplify the logistics associated with produced water reuse programs

2. To reduce the secondary waste streams created by treatment processes that concentrate the waste and minerals present in the produced water

Water Resource Issues

Eliminate the use of Fresh Water Resources

Cost on Water Well drilling Costs associated with Purchase Transportation Piping to location

Costs associated with treating flowback or produced water Numerous technologies for treating water No need for additional treatment equipment

on location other than simple filtration

Eliminate Disposal Costs

TriFrac-MLT Frac System

Fluid Systems • TriFrac-MLT – CMHPG polymer

w/Zr crosslinker

• Linear and crosslinked fluids

TriFrac Fluids at 150°F - 250°F

Produced Water

Produced water from North Dakota

UntreatedProduced Water

25 micron filterProduced Water

5 micron filterProduced Water

Removing suspended solids

Water Analysis

5 micron Filtered fluid

Untreated Water

pH 6.65

SG 1.046

Na 65,580

K 522.9

Ca 30,360

Mg 1,333

B 367.7

Mn 15

Sr 1,763

Fe 95.72

Ba 20

F- ND

Cl- 192,072

NO3- 26.5

HCO3- 524

PO4 ND

SO42- 211.9

Produced Water with TriFrac-MLT

25 micron Filter for the job

Produced Water with TriFrac-MLT

Produced water from North Dakota

Economics on Water Management

Conventional $8.00 bbl. Fresh Water Cost plus transportation Disposal Cost plus transportation

100% Recycle Costs Fresh Water Cost $ 0 bbl. 100% Recycle Water Cost w/ transportation $ 2.00 bbl. Filtration $ 0.50 bbl.

Savings $ 5.50 bbl.

Total per 500 bbl tank $ 2,750.00 per tank

~1,050,000 gallons is 50 tanks - $ 137,500.00 savings

Trican developed an innovative fracturing fluid (CMHPG linear and crosslinked gel systems) formulated in 100% untreated produced water that unlocks the code for recycle water designed to conserve fresh water aquifers and use recycle produced and flow-back waters.

This process will save millions of gallons of fresh water per well and save $$$

Economics on Water Management

BROKEN CMHPG AND GUAR CROSSLINKED GELS

CMHPG exhibited much smaller polymer fragments than Guar at the microscopic scale as well as the macroscopic scale.

20 lb/1000 gal Guar in fresh

water

25 lb/1000 gal Guar in fresh

water

30 lb/1000 gal Guar in fresh water

20 lb/1000 gal CMHPG in produced

water


water


water

EcoClean Fluids

SUSTAINABLE INNOVATION

EcoClean Fluids Continuing to expand our line

of environmentally friendly fracturing fluids

Completed close to 2,000 treatments in 2012

R and D focus on drinkable fluids that use less fresh water

i-TEC Well SolutionsA Trican Well Service Company

i-Frac CEM Cemented SleevesBPS Toe Initiation Sub

Completion Tools

• Operations in Norway, USA and Canada

• Offer Multistage Frac Tools, Completion and Intervention tools for both open hole and cemented installations

• Innovative design team with 10 patents granted or pending

• Competitive advantage with patented completion systems that has capacity for 440 open hole stages (240 cemented)

• Good market acceptance of tools so far in 2013

Trican acquired i-TEC in January 2013

Completion Tools

i-TEC Lower completion solutions

Open Hole

Cemented

Screened

i-Frac / i-Valve completions

i-Frac CEM / i-Valve CEM completions

Open/Close ICD Sandscreen completions

i-Frac CEM Sleeves

Cemented & OH Completions:

Available in 4-1/2”, 5” & 5-1/2” Multiple sleeves per stage (Mimic plug & perf)

Frac in half the time Less water usage

Dissolv-a-ball – Dissolvable Frac Balls Eliminate drill outs

Drillable cast iron ball seats. Variety of seat increments to increase stage count

1/6”, 1/8”, 1/10”, 1/12”, 1/16”

BPS Flow Initiation Sub

Eliminate TCP:

No ID Restrictions Match Casing Size No Moving Parts

Trican Reservoir Solutions

TRICAN RESERVOIR SOLUTIONS

Microseismic Solutions Trican partnered with GeoTomo to

offer leading edge microseismic analysis

Used to optimize frac designs

Geological Solutions Offer unconventional rock

analysis, core testing and rock mechanics

Reservoir Solutions Reservoir model that integrates

geological, microseismic and frac data to optimize long-term reservoir recoverability

Trican GeoTomo Microseismic

Strategy Statement

Trican and GeoTomo (TGM) is a strategic partnership primary focus is servicing the needs of its customers to understand the effectiveness of well stimulation.

GeoTomo develops high-end geophysical software products that help geophysicists around the world to image beneath the subsurface

Developed New Innovative processing software

Services

Pre-survey Modeling & Design Project Management On-site Data Acquisition Field QC Data Processing Interpretation Final Report and Presentation Integrate with the Fracture Model

providing direct measurement of the fracture geometry

Integrate with core analysis from TGS Reprocess previous microseismic

surveys performed by competition Evaluating Software sales to key

customers

Integrating Microseismic Data

Trican Geological Solutions

Trican Geological Solutions

Reservoir characterization: techniques and developments

Field services

Core profiling and geochemistry

Routine and special core analyses

Geomechanics

Petrophysical modeling, data integration

Integrated reservoir evaluation case study from North America

Basin-scale evaluation

Reservoir sweet spots

Stimulation strategy development

Trican Geological Solutions’ operations

Focus on unconventional plays: Resource evaluation and characterization with field operations in Canada, USA, UK, India & Turkey.

Plus analytical projects from countries all around the world: Europe, Asia, Australia, Africa, South America, Middle East

Goal

Unconventional methods for unconventional reservoirs:Most reported analysis of gas shales are based on over-simplified or non-applicable analytical methods. For example:

GRI methods of K and φ coal desorption methods for shale OGIP conventional reservoir analyses for Sw isotropic mechanical properties assume infinite conductivity fractures

Our goal is improved log calibration, OGIP, mechanical stratigraphy and

completion design through appropriate rock and log analysis

Typical Shale Gas Frac Spread

24x 2500 Horsepower pumping units, 6 sand Hogs, 2 Chem. vans, 3 Data Vans, 1 Mechanics Truck, 1 Putzmeister,1 Twin cementer, 4 Iron trucks and 80 men.

Horn River – Project Perspective

• Customer 1. – Horn River• Project was made up of 346 fracs of either 5000m3 or 4000m3 200t

slick water Fracs over a six month period.

• Customer 2 - Horn River• Project was made up of 164 Fracs of either 4000m3 200t or 3000m3

150t slick water over two month period

Project Perspective

For Customer 1, we pumped 1,500,000 m3 of Water; the equivalent of 600 Olympic sized swimming pools into the ground. And will produce back no more than 20% to 50% of that.

For Customer 2, it was 238 pools.

During Customer 1 project, we pumped 61,000 tonnes of sand, the weight of 377 Jumbo Jets.

For Customer 2 , was another 189 jets

Pad Based Work The Evolution of Frac Treatments

HoursDaysMonths

Thank You

Trican Well Service - Unconventional Resources Presentation

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