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KINGDOM Unconventional InterpretationGlobal Market Share Leader For Geoscience Software

Used for Primary Interpretation by 75% of US Onshore (Unconventional) E&P

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Geology Geophysics Engineering

© 2010 Seismic Micro-Technology, Inc. – Confidential and Proprietary www.seismicmicro.com2

SMT Overview• Established Company: Global market share leader for interpretation

– In business since 1984. 3000 customers in over 100 countries– Used by 85% of 150 largest E&P companies– Used by over 75% of US on-shore unconventional players

• Fast Growing: Double digit growth in 2010 – International sales 65+% of total – growing faster than domestic

• Technology Focused: 80% of employees work in technology– 33% are Geoscientists– 33% of subject matter experts are PhDs

• Technology Partners:

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SMT Offices – In 7 CountriesSMT Agents – In 17 CountriesSMT Customers – In 100 Countries

Specialized Geoscience For The Generalist

The Business Model For Unconventional Exploitation

• Exploitation of Shales Often Requires New Techniques• Horizontal drilling and fracturing• Real time optimization of drilling

• Economic Viability Can Change Quickly• Pay zones, though numerous, can be small• Gas markets subject to the whims of local market• Economic modeling throughout the life of the field

• Engineering Is More Integrated With The Interpretation Process

• Field evaluation no longer “where is it” but “how do we get it out”• Engineering collected info now flowing back to the geoscience teams

Requirements For Success

• Detailed Fracture Evaluation• Attribute Analysis• AVO Analysis• Microseismic Analysis

• Clear Understanding Of Economic Viability• Volumetric analysis of hydrocarbons in place• Decline rate calculations• Economic modeling

• Tight Asset Team Collaboration• Geologists, Geophysicists, & Engineers

Detailed Fracture Evaluation

• Running Attributes• Curvature attributes in particular have

been used with success• May be co-blended with other attributes

• Conducting AVO Analysis• Azimuthal pre-stack gathers can aid in

the determination of fracture trends • Interpretation of AVO and NMO velocity

variations can help identify anisotropy and fracture trends

• Evaluating Microseismic Data• Useful in determining the orientation,

density (volume) and extent of fractures induced by the frac job

Determining Economic Viability

• Volumetrics• Estimated hydrocarbons in place• Uncertainty and sensitivity using Monte

Carlo analysis

• Decline Curve Analysis• Production history• Production forecasts• Production modeling

• Economic Modeling• Scenario analysis• Cash flow, NPV, ROR of modeled

scenarios

Improving Asset Team Collaboration

• Enhanced Reservoir Knowledge• Understanding of natural fracture trends and patterns• Enabled by integrated desktop tools for each discipline

• Induced Fracture Analysis and Interpretation• Hundreds of wells per year – drill and treat• Frac job results analysis – rapid turnaround• Real- and near-time data impacts well treatment efforts and planning

• Effective Field Development• Integrated analysis of geological, geophysical, and engineering data• Volumetrics, production analysis, and economic modeling using all

available data• All disciplines working together optimizes field development

© 2010 Seismic Micro-Technology, Inc. – Confidential and Proprietary www.seismicmicro.com

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