© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

Emerging Trends and Technologies for

UNCONVENTIONAL RESOURCES

Brady Murphy

Senior Vice President

Business Development & Marketing

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

TAKE RISKS

EXPERIMENT

INNOVATE

WORK Make It

Economic Evolution Of

UNCONVENTIONALS

ACQUIRE ACREAGE

DEPLOY HORSEPOWER

DEVELOP SUPPLY CHAINS

BIG Make It

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

Millio

n B

arr

els

a d

ay

in O

il E

qu

iva

len

t Oil and Natural Gas Production

0

2

4

6

8

10

12

14

2007 2008 2009 2010 2011 2012 2013 2014

In the Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian and Utica fields

Source: Energy Information Administration

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

The Commercial And Economic Imperative

-10%

-5%

0%

5%

10%

15%

Average NA Independents

Cost of Capital

North American Independent Operators

Return on Capital Employed

EOY 2013

Sources: Thomson One, NYC Stern School of Business, Internal Analysis

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

OPERATIONAL EFFICIENCY

WELL PRODUCTIVITY

= COST PER BOE (PRODUCTION UNIT COST)

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

Integrated Portfolio

of Technologies

Superior

Delivery Platform

Environmental

Leadership

Reservoir

Focused Strategy

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

TAKE RISKS

EXPERIMENT

INNOVATE

WORK Make It

ACQUIRE ACREAGE

DEPLOY HORSEPOWER

DEVELOP SUPPLY CHAINS

BIG Make It

INTEGRATE

OPTIMIZE

EXECUTE

CALIBRATE

SMART Make It

Economic Evolution Of

UNCONVENTIONALS

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

RESERVOIR

CHARACTERIZATION

WELL PLANNING

AND PLACEMENT

COMPLEX FRAC MODEL/

COMPLETION DESIGN

PRODUCTION MATCHING/

OPTIMIZE MODEL

CYPHERSM Seismic-to-Stimulation Service

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

BASIN

SPE 165585-PA

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

FIELD BASIN

SPE 165585-PA

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

WELL

FIELD BASIN

SPE 165585-PA

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

SPE 165585-PA

ROCK WELL

FIELD BASIN

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

Greatly Reduce Planning Cycle Times

Maximize Reservoir Contact and Site Utilization Enhance Well Safety

DecisionSpace® Well Planning

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

RESERVOIR

CHARACTERIZATION

WELL PLANNING

AND PLACEMENT

COMPLEX FRAC MODEL/

COMPLETION DESIGN

PRODUCTION MATCHING/

OPTIMIZE MODEL

CYPHERSM Seismic-to-Stimulation Service

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

REDUCE UNCERTAINTY

INCREASE MARGINS

DECREASE CYCLE TIMES

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

RESERVOIR

CHARACTERIZATION

WELL PLANNING

AND PLACEMENT

COMPLEX FRAC MODEL/

COMPLETION DESIGN

PRODUCTION MATCHING/

OPTIMIZE MODEL

CYPHERSM Seismic-to-Stimulation Service

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

ELIMINATE WASTED PERFORATIONS

MAXIMIZE PRODUCTION

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

RESERVOIR

CHARACTERIZATION

WELL PLANNING

AND PLACEMENT

COMPLEX FRAC MODEL/

COMPLETION DESIGN

PRODUCTION MATCHING/

OPTIMIZE MODEL

CYPHERSM Seismic-to-Stimulation Service

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

Complex Fracture Modeling

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

Complex Fracture Modeling

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

PREDICTED

Production

AC

TU

AL

Pro

du

cti

on

Correlation 93%

Eliminating Uncertainty – Marcellus Shale, Pa

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

RESERVOIR

CHARACTERIZATION

WELL PLANNING

AND PLACEMENT

COMPLEX FRAC MODEL/

COMPLETION DESIGN

PRODUCTION MATCHING/

OPTIMIZE MODEL

CYPHERSM Seismic-to-Stimulation Service

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

OPERATIONAL EFFICIENCY

WELL PRODUCTIVITY

= COST PER BOE (PRODUCTION UNIT COST)

CYPHERSM Seismic-to-Stimulation Service

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

CASE STUDY

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

Pre-CYPHER

Pro

ba

bil

ity

Normalized EUR

CYPHER

Reduction In Variability

50%

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

124%

Increase in

Average EUR

Ave

rag

e E

UR

(1,0

00

BO

E)

CASE STUDY

0

50

100

150

200

250

300

350

400

450

500

Pre-Cypher Cypher