Real-Time Decisions Using EVO ONE™

EVO One comparisonNew Style of MWD

  • Designed in 2011-13
  • Commercial launch in 2014
  • +75 Unified MWD kits ordered or operational
  • Multi-telemetry high speed robust tool
  • Higher EM data rate -> up to 16 bps (1 gamma every 0.5 sec)
  • High mud pulse data rate -> Up to 1.1 bps (toolface every 6 sec)
  • Data transmits simultaneous &independent on both channels
  • Configurable to be the same data or unique to each channel

Major Differences

  • Wider and shorter -> 2.5” & 13’ high voltage probe
  • Slick probe free of centralizers, same for all sizes
  • Full length stand alone fluid dampened centralization
  • Superior performance in high shock environments
  • Proprietary controlled collar system allowing for higher flow rates
  • Utilizes iOS app for display on wireless iPAD

Evo One

Evo One Decoder

Focused on Reliability

  • Interconnects eliminated, no free wires in air - Harness fatigue eliminated; cost and length savings
  • Reduced length and increased OD decrease susceptibility of drilling harmonics
  • Independent Mud Pulse and EM circuitry
  • Elimination of human factors (no internal offset)
  • Extreme strength mud pulse power and driveline
  • Full centralization, size on size, move as one with collar
  • Novel adaptive, high bypass pulse valve

Unified Telemetry Modes

  • EM Mode –Mud Pulse (“Pulsejet”) is inactive
  • Mud Pulse Mode –EVO EM is inactive
  • Dual Confirmation Mode –Simultaneous EM/ Pulsejet data streams (dual surface verification)
  • Dual Shared Mode –Simultaneous EM/Pulsejet different data streams and data rates
  • Parallel Mode –Simultaneous EM/Pulsejet, different data bits for same data set, ideal when EM/MP transmission rates match –time halved

Pulse-Jet Drive Highlights

Anti-Jam feature built with LCM in mind

  • Pulser detects obstruction and activates the anti-jam sequence and charges capacitor bank.
  • With capacitor bank fully charged the stored power is released and the rotor applies 120 in/lbs. of torque.
  • Anti-Jam sequence consists of rotor moving to open position while capacitor bank charges, then hits 3 times and returns to the open position and repeats till obstruction is clear.

Why is This System Applicable?

Reliability increase, twin engine plane

  • Single telemetry has no backup,
  • EVO ONE: provides redundancy which increases reliability

Coming out of casing for lateral section

  • EM tools must clear casing to work, therefore drill blind
  • EVO ONE: mud pulse is used to slide out of casing

Drilling through an anhydrite layer and losing EM signal

  • Cannot drill blind, must trip out, lay down EM and trip in pulse
  • EVO ONE: drill ahead using pulse, EM typically resumes once through the layer

Using pulse tool, waiting time for surveys after connection

  • Drillers must wait for surveys from pulse
  • EVO ONE: even in tough formations it is usually possible to provide EM surveys

Pulse stops decoding (i.e. LCM or pump noise)

  • Troubleshoot, no-go, trip out of hole
  • EVO ONE: drill ahead with EM while troubleshooting pulse issue

Decoding issues on either telemetry

  • EVO ONE: the alternate telemetry can be used

Boost baud rate

  • EVO ONE: 2nd channel boosts the baud rate, data decodes at separate times which means very high quality Gamma logs and data density

Eliminate piggybacking of a 2nd MWD tool

  • EVO ONE: piggybacking places sensors too far back to be effective and lost in hole cost with piggybacking are very high

Economics of EVO

  • Cost of low reliability (Tangible)
  • Savings from surveys during connection (Tangible)
  • Production $$ from being in zone with better data (Intangible)

Evo Cost Analysis Chart

EVOi: iPad Surface System

  • Real time updates for rig floor display
  • iOS app on iPAD connected wireless
  • Portable, customizable, and user appealing
  • New age, video game style interface

Evo One Module Value Added by Bandwidth/Sensors

Value Added Bandwitdth Sensors EVO One EVO ONE Standard Logging Data

EVO One Standard Logging Data EM Decoding Performance –V14

EM Decoding Performance EM Decoding Performance –V15

EM Decoding Performance Signal Strength MP Decoding Performance

MP Decoding Performance Signal Strength EVO One Continuous Inclination EVO One Continuous Inclination

EVO One Continuous Inclination Gamma Quality vs ROP

Pulse Tool vs EVO ONE™ Gamma Quality

Depth correlated offset well comparison DJ Basin

Evo One Gamma Quality vs ROP

Commercial Run Metrics –All Basins

EVO One Commercial Run Metrics

EVO One Commercial Run Metrics EVO Average Uptime EVO ONE Recent Highlights

  • Eclipsed the 100,000 downhole hour mark in June 2016
  • Permian MD record to 22,157’MD (12,100+ TVD) utilizing EM Surveys and MP logging to TD
  • Two of Inpetro’s clients have recently been awarded multi-year contracts with a super-major oil company based on EVO ONE capabilities
  • Deepest MD .5 sec pulse width - EVO-ONE Pulser decoded nearly flawlessly to TD at 19,225’ using the .5 sec pulse width (1.09 bits/sec) for the entire lateral section in the Permian.

EVO ONE Recent Highlights

  • New rig site electrical testing and noise mitigation has proven to aid in EM signal detection on multiple pads.
  • 12,400 TVD EM decoding – Recently in Loving county the EVO ONE tool reached a record depth of 12,408 ft TVD (17,000+MD) with perfect decoding of EM surveys while in Unified mode for the entire lateral.
  • 1.7 bits/sec pulser decoding – The EVO ONE pulser was recently tested in the foothills in Alberta operating at a pulse rate of 1.7 bits/sec. The tool performed and decoded the entire surface hole without issue and the 1.7 bit/sec pulse option is currently available for use with the current commercial configurations.

Commercial Run Metrics –All Basins

EVO Commercial Run Metrics EVO Commercial Runs

West Texas Operations

EVO West Texas Operations

Example of Delaware Basin Lateral Data

  • Wolfcamp target formation, OBM
  • Gamma RT in yellow, recorded in green
  • EM consistently decoding through lateral

EVO Delaware Basin Lateral Data

Example of Midland Basin Curve Data

  • Lower Spraberry target formation, OBM
  • Gamma RT in yellow, recorded in green
  • Many high resistance zones through curve, EM consistently decoding

EVO Midland County Lateral Data

EM Telemetry Details –Permian

  • Total of 14,455 EM Telemetry hours to June 1st 2016, one vertical well section with Pioneer
  • Includes Midland and Delaware basin work
  • Frequencies generally correlate to bit rate –our 4Hz give 4 bits/s, 1Hz gives 1bit/s.
  • Midland work tends to be shallower and can allow for higher frequencies
  • Typical profile would be Full EM for vertical and curve, Full EM for horizontals with OBM, and EM survey only with Full MP for horizontals with WBM/Brine

EM Telemetry Details MP Telemetry Details –Permian

  • We don’t currently track MP speeds by hour, but we have a summary configuration plan for Permian.
  • Two current MP telemetry speeds in operation –1.1 bit/s sec and 0.6 bit/s
  • 1.1 bit/s is typically used down to 17,000ft MD, with maximum MD of 19,500ft in Permian.
  • 0.6 bit/s is typically used below 17,000ft MD
  • For Midland County work 1.1 bit/s has been used to TD
  • 1.7 bit/s MP telemetry is now in use in Canada and is available for Permian work(expect this to be usable to at least 10,000ft MD).
  • 2 bit/s MP telemetry anticipated in Q4 2016.

Real Time Telemetry Data Example

EVO Real Time Telemetry Data Example EVO One Unified Telemetry Specifications