A NEW VISION IN OIL AND GAS DRILLING

HWDHORIZONTAL WELL DRILLERS

HORIZONTAL WELL DRILLERS

Introduction from the President

Horizontal Well Drillers is an oil and gas drilling contractor specializing in the drilling of oil and gas wells across the United States. Here at HWD we strive to be a leader in the oil and gas drilling industry and with our rigs we deliver safe and efficient drilling practices that save our clients time and money. With HWD manufacturing its own rigs and having its own trucking fleet we can reduce many third party charges thus saving the operators 10-15% right from the start. Here at HWD we understand and will deliver what it takes to provide complete, reliable, accurate and cost effective drilling services. We also encourage and reward the creativity, teamwork and enthusiasm of our employees all while setting the highest of safety standards to follow. Remember, if you can’t do it safely, don’t do it at all.

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Jeremy J. Klein, President, HWD

Leading The Industry With Innovation Three of many aspects Horizontal Well Drillers brings to the industry are automation, safety, and innovation. These state of the art rigs are almost fully automated. Whether it is the pipe handler, the hydraulic pipe racks, or the custom hydraulic iron roughneck, the automation of these rigs decrease floor hand involvement in normal drilling operations while also increasing the speed of tripping pipe.

HWD strives to provide top-notch safety training and promote the safest working environment. This starts with the advances that the company has brought to the industry. The automation of the rigs works to keep hands from dangerous situations found on conventional rigs. It continues with the hiring and training of each and every employee. Every rig hand is required to take and pass several safety courses like PEC SafeLand, forklift operation and first aid/CPR. HWD also supplies to each employee all the necessary tools to facilitate safety, including coveralls, impact gloves, climbing harnesses, safety glasses, respirators, and hard hats.

Automatic Pipe Handler State Of The Art Drilling Console

Iron Roughneck

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Whether the client’s needs are water-based mud, oil-based mud, or air drilling as shown here, Horizontal Well Drillers is equipped to handle each setup.

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Benefits of HWD Technological Advances

Horizontal Well Drillers (HWD) is a provider in contract drilling services. Whatever the client may need, whether that be deep or shallow wells with long laterals, or conventional vertical wells, HWD has a perfect drilling solution. Even though these innovative rigs can drill vertical wells easily and efficiently, HWD puts a major focus in horizontal drilling. By bringing patent-pending technology to the industry, clients are drilling laterals of over 3,000 ft to 10,000 ft, at depths as shallow as 250 ft all the way to 10,000 ft deep.

• Major increase in pay zone

• Long horizontal laterals at shallow depths (500 ft)

• Laterals have been successfully drilled out to over 10,000 ft

• ROP (Rate Of Penetration) remains as high as 80% while drilling long laterals

• Top drive - best in class performance - 24,000 ft-lbs of torque

• Wiggle steer technology - allows curves & laterals to be drilled faster

• Range 3 drill pipe with joint length of 45 ft allows for faster trip time (1000 ft - 1400 ft per hour)

• Casing can be run with or without casing crews

• No lay down machines needed

• Can rotate & circulate the hole while tripping pipe or running casing

• No cranes needed for rig up or rig down

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HWD 1000 Top Drive Drilling Rig

• 107 Ft. Free-standing telescopic derrick mounted on 50 ft. 4-Axle trailer

• 500,000 lb. hook load capacity

• 250 Ton top drive with 24,000 lbs of torque and 125 rpm

• Drill cabin is 25 ft, heavily insulated, and climate controlled

• State of the art drill console with proprietary wiggle steer

• Features 6 rig cameras to observe vital systems from rig cabin

• Powered by two 14 liter detroit engines for a total of 1,300 hp

• Dual 48” lewis brakebands

• Kobelt 54” water circulated disc assist brake system

• 20,000 ft combined drilling depth

• Very mobile: one day rig up, one day rig down with low moving cost

• No lay down machines needed

• BOP trolley system

• Rotary table beam capacity of 1,000,000 lbs

• The ability to rotate drill pipe while tripping pipe or running casing

• Safety - minimized roughneck assistance - 99% self automated

• One rig from start to completion

• No rat/mouse hole needed

• No cranes needed for rig up or rig down

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HWD First Generation VR 330 Rack and Pinion Drilling Rigs

Below are key features that separate the VR 330 from other drill rigs.

• Long horizontal laterals at shallow depths (500 ft)

• Laterals have been successfully drilled out to over 9,000 ft. ROP (Rate of Penetration) remains as high as high as 80% while drilling long laterals

• Pushes and pulls 330,000 Ibs.

• Wiggle steer technology

• Allows curves and laterals to be drilled faster

• Drilling shallow laterals at depths conventional rigs can not.

• Very mobile - one day rig up - one day rig down with low moving cost

• No lay down machines needed

• Tool joints are less likely to be caught in keyseats downhole do to the ability to rotate drill pipe while tripping

• Safety - minimized roughneck assistance - 99% self automated when tripping pipe or making a connection

• One rig from start to completion

• No rat/mouse hole needed

• No cranes needed to rig up or rig down

• Built in autodrill feature using 3PS torque tension sub

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Only 18 total loads to move the entire rig plus drill pipe. Only 8 of those loads require permits.

The climate controlled drill cab features state of the art, proprietary Wiggle Steer.

Self-leveling pipe handler can lift various sizes of pipe and casing without making any changes to the system.HWD 1000

Drilling Rig Location

Proprietary 50/70k hydraulic iron roughneck increases safety and speed.

Fully self contained drilling system including 650 barrel mud pit with 2-derrick FL504 4 panel linear shakers.

Each rig is supplied with 2 custom mud pump skids ranging from 1000 hp to 1600 hp Triplex pumps.

Generator house can be left on trailer during drilling or offloaded as needed.

A HWD Rig can be rigged up or down in 1 day.

Location needed is 200 ft x 200 ft, which is 1/4th the size of a conventional rig. This makes it perfect for environmentally sensitive areas.

200 ft

200 ft

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With a 70,000 lbs breakout, the iron roughneck increases safety while still maintaining a small footprint on a surprisingly large rig floor.

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HWD’s automatic pipe handler has the ability to use different sizes of drill pipe, weighted collars and casing without making any adjustments to the system.

HWD Triplex Pumps

In addition to technologically advanced drilling rigs, HWD strives to put in the field the most capable support equipment for each and every rig. This includes custom mud pump skids ranging from 1000hp to 1600hp Triplex pumps. These pumps can be run in a single or double configuration.

These pump skids are easy to hookup and are mounted with camera systems which can be viewed from the state of the art drilling cabin. This ensures full time monitoring of the pumps to ensure minimal downtime. Whatever the need of the client may be, HWD has the right pumps to match the right rig to be successful.

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HWD 650 Barrel Mud Pits

HWD rigs come with top of the line 650 barrel mud pits built on a ground bearing trailer, these pits are fitted with 2 Derrick scalper shakers, Derrick desanders and desilters, and four 50hp 5x6 centrifugal pumps. Combining these with HWD’s triplex pumps produces a powerful closed or open loop mud circulating system perfect for any drilling situation.

HWD Truck Fleet

HWD employs its own truck fleet with drivers who are familiar with the compact location and experienced in moving all of HWD’s rigs. This makes for a quick and efficient rig up and rig down. Employing a full line of trucks, whether it is winch trucks, triple axle, or double axle, along with a full fleet of trailers and support equipment, HWD is equipped for efficient and quick rig moves.

With only 8 permitted loads required for a rig move, rigging up and rigging down can be completed in 1 day. This is also accomplished on the industries smallest rig footprint, which is 200’ x 200’.

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Safety

Horizontal Well Drillers (HWD) strives to be a leader in the Oil and Gas industry for safety performance. HWD believes that through continuous training, proper all-inclusive Safety Department oversight, routine safety inspections, comprehensive management participation, and constant employee involvement that exceptional safety performance can and will be obtained. Below is an outline of HWD’s current safety statistics and the steps we take to ensure employees safety:

1. TRIR (2014): 1.71 2. Total OSHA Recordable Injuries (2014): 6 3. Lost Time Injuries (2014): 2 4. LTIR (2014): .57 5. EMR (2014): 1.06

All HWD employees are required to complete the following training:

1. Certified in PEC/ETC Safeland USA 2. Certified in forklift and manlift operation 3. Certified in First Aid, CPR, AED, and Blood borne Pathogens 4. Drillers, Toolpushers, Superintendents, and Safety Representatives are certified in

Well Control Training by Wild Well 5. Any other necessary training required (i.e. H2S, Confined Space, Driver Training, etc.)

is available

All members of the Safety Department have completed a four-year bachelor’s degree from an accredited university in Industrial Safety or Safety and Environmental Management.

HWD is an active compliant member of ISNet and PEC Premier. Both programs allow clients to monitor the company’s safety performance.

The HWD Safety Department has drafted an all-inclusive Standard Operating Procedures Manual that is continuously updated. All safety related documents are available online for review upon request.

HWD has a state of the art training facility for all employees located in house at our Safety Department headquarters in Dubois, PA and has an in house training facility in Purcell, OK.

Weekly safety inspections are performed on each rig by a Safety Representative and a Superintendent. Monthly safety checklist inspections, utilizing OSHA’s outline, are performed by a Safety Representative. All incidents are investigated completely by a Safety Representative and casual factors, root cause, and corrective actions are established.

HWD Safety awards the “Rig of the Month” to the rig that has the best overall safety performance based off inspections, incident rates, non-productive time, cleanliness, organization, as well as other criteria.

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Safety Professionals responsibilities include:

• Ensure compliance with all local, state, and federal regulations

• Conduct weekly inspections on each rig • Conduct safety training • Investigate all incidents • Maintain and continuously update HWD’s all-inclusive

Standard Operating Procedure Manual • Maintain all aspects of HWD’s Safety Program

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2011 2012 2013 2014

$ 1,200,000

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$ 800,000

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2011 2012 2013 2014

$ 1,500,000

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$ 500,000

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Claims Cost Reduction Over Last 4 Years:Injury Insurance Claims Cost Reduction

HWD’s Injury claims costs have reduced by 80% over the last four years due to our exceptional dedication to safety education, training, and department oversight.

2915 STATE HIGHWAY 74 SOUTH

PURCELL, OKLAHOMA 73080

TEL: (405) 527-1232 FAX: (405) 527-0192

INFO@HWDRILLERS.COM

WWW.HWDRILLERS.COM

HWDHORIZONTAL WELL DRILLERS

HORIZONTAL WELL DRILLERS