eagle ford fact book final

7/30/2019 Eagle Ford Fact Book Final

1/20

EAGLE FORDOil and Natural Gas Fact Book


2/20

Major Phases in an Oil and Natural Gas Development

Liecycle o an OnshoreOil and Natural Gas Project

Drill PadConstruction

Production

DrillingCompletion & Testing

Abandonment &Reclamation

Seismic Testing

PRODUCTIONAPPRAISALEXPLORATION


3/20

Eagle Ford Oil and Natural Gas Fact Book 1

EAGLE FORDOil and Natural Gas Fact Book

Production 13I wells are deemed economic, theproduction phase could last or severaldecades

Drilling 10-11A drilling rig moves on site and careullydrills deep into the earth over severalweeks

Drill Pad Construction 10Preparing the land or the arrival o thedrilling rig is an important part o a project

Abandonment & Reclamation 14Once a feld has been depleted, the goal is

to leave the land the way it was ound

Modern Oil and Gas Exploration 3-4Finding new reservoirs o oil and naturalgas has become more challenging andcomplex

Health & Safety 5Saety is embedded into every aspect oMarathon Oils business across the globe

Why Eagle Ford? 2The Eagle Ford Shale in Texas has becomea world-class resource play or oil and

natural gas

Completion & Testing 12Hydraulic racturing is the stimulationprocess required to make shale playseconomic

Environmental Stewardship 6-7Marathon strives to reduce itsenvironmental impact across all o itsoperations

Seismic Testing 8-9Companies use waves o energy toprovide pictures o the subsuracegeology to help determine where to drill


4/20

2 Eagle Ford Oil and Natural Gas Fact Book

As oil and gas companies continue to search or additional resources to address the countrys energy needsthe Eagle Ford Shale in Texas has become a ocus o exploration and production activity in North America.The Eagle Ford Shale ormation is considered by many to be the most signiicant new opportunity or

unconventional hydrocarbons both oil and natural gas in the United States. According to the Texas

Railroad Commission, 2010 production in the Eagle Ford Shale exceeded 3.5 million barrels o oil and will

increase over the next ew years.

Those potential resources are classiied as unconventional because the hydrocarbons are trapped in

ormations o shale a ine-grained, sedimentary rock and require innovative technologies to extract.

Advancements in two o those technologies horizontal drilling and hydraulic racturing have made

production o hydrocarbons rom these unconventional resources commercially viable in some areas and

greatly increased U.S. energy supplies.

The Eagle Ford Shale has been identiied as a premier play in North America and is expected to provide energy

resources or decades to come. Geologic studies in the Eagle Ford, which spans over 400 miles in south Texas,

have revealed the potential or large quantities o hydrocarbons; and energy companies have obtained the

rights to explore or and produce hydrocarbons on signiicant amounts o acreage stretching across the area.

The ull extent o the Eagle Ford Shales possible role as a major hydrocarbon resource is not yet known, andull-scale production could be several years away. Many challenges remain, including environmental concerns

and the lack o inrastructure to support production. However, the successul development o the Eagle Ford,

and other shale plays across the U.S., presents many beneits, including potentially reducing oil and gas

imports rom oreign sources.

The oil and gas drilling in the Eagle Ford Shale will not only help the U.S. on its path to energy security, but

will also create tens o thousands o jobs in the region.

Why Eagle Ford?The Eagle Ford Shale in Texas has become a world-class resource play or oil and natural gas

~75,000 net area

Marathon


5/20


Modern Oil and Gas ExplorationFinding new reservoirs o oil and natural gas has become more challenging and complex

The potential o the Eagle Ford Shales naturalresources has created considerable interest in thearea. The Eagle Ford has an abundance o oil and

natural gas trapped within the shale ormation, making

these resources unconventional. Extracting these

unconventional resources saely requires both technologyand experience.

Oil rom conventional ormations is easier to produce

because its typically trapped in more permeable reservoir

rocks such as sandstone or limestone that allow it to

low more reely. Conversely, unconventional reservoirs,

like those in the Eagle Ford Shale, are characterized by

tight ormations that trap the hydrocarbons and require

stimulation techniques to allow them to low. This

typically makes production rom unconventional reservoirs

more costly and technologically challenging.

Shale oil is the terminology used simply to indicate thatthe reservoir rock containing the oil is shale. The oil itsel

is the same as oil ound in conventional ormations.

Likewise, the term shale gas is commonly used to

identiy natural gas produced rom shale reservoirs.

Again, there is no dierence between this natural gas and

natural gas produced rom conventional reservoirs.

Finding Hydrocarbons

Exploration and production companies explore or

hydrocarbon deposits by using complex technologies to

identiy prospective drilling locations. Teams o geologists

geophysicists and engineers methodically identiy,

characterize and examine geologic prospects that hold

the promise o yielding commercial quantities o oil and

natural gas. Beore a drill touches the earth, a variety o

advanced technologies are used to pinpoint with a high

degree o certainty exactly where that drill should go.

Modern drilling is less intrusive and more precise, and

the entire process is designed to minimize disturbances

to land, vegetation, water, air, natural habitats and

surrounding communities.

The actual process o inding hydrocarbons consists o

three phases.

The exploration phase involves drilling wells

to evaluate whether a reservoir has suicient

hydrocarbons to make development economically

viable.

In the second phase, additional wells are drilled in

smaller, more contained areas to appraise the reservoir

and try to conirm the assumption that hydrocarbons

can be extracted economically.

Looking at rocks at the surace to understand what they look like in the subsurace

Geologists using the latest technology to review seismic data

KEY POINTS

nMany companies are now producing oil and natural gas rom shale, a rock

composed o mud and tiny ragments o other minerals including organic

materials

nHydraulic racturing is an important well stimulation technology used since

the 1940s to saely produce oil and natural gas

nThis advancement has allowed the move rom conventional to

unconventional reservoirs

nAdvancements in horizontal drilling and multi-stage hydraulic racturing

now make it possible to economically develop oil and natural gas rom

shales


6/20


If the appraisal program indicates the project is

viable, it moves to the third phase production.

This would entail a much higher level o drilling

activity, and production rom these wells could last

or several decades, providing clean energy to the

marketplace.

Hydraulic Fracturing and Horizontal DrillingProduction rom hydrocarbon-rich shale ormations is

one o the most rapidly expanding trends in oil and gas

exploration and production.

The term shale reers to the sedimentary rock thats

predominantly comprised o mud, stones and organic

material. Its low permeability means that hydrocarbons

trapped in shale cannot move easily within the rock

except over geologic expanses o time (millions o

years).

A key element in the emergence o shale production

has been the cost-eective reinement o twotechnologies horizontal drilling and a process known

as hydraulic racturing.

Horizontal drilling provides more contact to a reservoir

ormation than a vertical well and allows more

hydrocarbons to be produced rom a given wellbore.

For example, six to eight horizontal wells drilled

rom one location, or well pad, can access the same

reservoir volume as 16 vertical wells. Using multi-well

pads can signiicantly reduce the overall number o

well pads, access roads, pipeline routes and production

acilities, minimizing habitat disturbance, impacts to the

public and the overall environmental ootprint.

The other key to economically developing shaleormations is hydraulic racturing, which involves

pumping a mixture o mostly water and sand, and a

small percentage o additives, under high pressure

into the reservoir to create ractures, or cracks, in the

target rock ormation. The main purpose o hydraulic

racturing is to increase both the production rate and

the ultimate recovery o oil and natural gas rom a

well.

During the past decade, both o these technologies

horizontal drilling and hydraulic racturing have been

saely applied in combination to allow the economic

development o oil and gas shale reservoirs.

Moving into the next decade, these concepts and

techniques are being applied around the world in

an attempt to produce more energy and help meet

growing global energy demand.

Magnication o a conventional

sandstone. Blue indicates space

available or hydrocarbons to be

stored and ow through.

0.1 mm

Similar magnication on anunconventional tight sandstone.

The reduction in blue indicates less

storage capacity and ow paths.

0.2 mm

Similar magnication on an

unconventional shale. At thislevel its dicult to observe any

blue present. This demonstrates

that the same volume o shale

has signicantly lower ow

potential than the other two rock

types and requires stimulation

to economically produce

hydrocarbons.

0.5 mm


7/20


Health & SafetySaety is embedded into every aspect o Marathons business across the globe

Marathons commitment to saety isstraightorward and a responsibility shared byour employees, executives, contractors and everyone

involved in our operations. Protecting the health and

saety o all workers and the surrounding community

is a core value or the Company. We will not moveorward with any job until we know it can be done

saely.

The Company recognizes that the ability to do business

in any community is a privilege. High standards o

health, environmental, saety and security (HES&S)

perormance underpin a culture o continuous

improvement, and includes:

A comprehensive HES&S policy and associated

perormance principles

A broad Corporate Social Responsibility (CSR) policythat airms a continuing commitment to our core

values and which promotes sustainable social,

environmental and economic beneits wherever

Marathon operates

Use of integrated HES&S Management Systems

to drive continuous improvement throughout the

Company.

Saety is embedded into everything the Company

does. Marathon is committed to creating a sae

work environment and works diligently to achieve

a 100 percent accident-ree workplace. Employees

strive or continuous improvement through near-

miss recognition and investigation, on-the-job

saety programs, health programs, saety training

and awareness, and programs designed to ensure

compliance with applicable regulations and industry

standards.

Preventing saety accidents involves designing

appropriate systems into both processes and

equipment, operating according to established

procedures, applying sae work controls and properly

maintaining equipment.

The Company systematically identiies potential

hazards, assesses their signiicance and develops

measures to make sure any risks are properly

addressed.

Management System Drives ContinuousImprovement

Marathon uses a management system aligned with

international standards to manage HES&S perormance,

and its eectiveness has been proven around the

world. Called the Global Perormance System, it

promotes a consistent approach or conducting

business across all global operations and provides the

ramework or setting targets, implementing actions to

achieve them, measuring perormance and reporting

results. The system is aligned with the basic continuous

improvement cycle o Plan-Do-Check/Adjust. The

elements are recognized as key components o best

practice management systems that drive business

excellence.

The Global Perormance System proactively identiies

and addresses potential impacts to people, the

environment and company assets. It also addresses

the ull lie cycle o any asset, rom project design toconstruction, operation and maintenance.

Regardless o size, location, range o issues or degree

o regulation, Marathon can then assess and manage

HES&S and social impacts within a common ramework

and integrate this stewardship into all aspects o

operations.

KEY POINTS

nProtecting the health

and saety o all

workers and the

community is a corevalue

nThe ability to do

business in any

community is a

privilege that must be

earned

nWe have a system

in place that strives

to drive continuous

improvement in health

and saety perormance

nPotential hazards

are systematically

identiied and

measures are taken to

address the risk

Monitoring & Measurement;

Accidents & Incidents

Management ReviewPolicy & Leadership;

Risk Assessment;

Regulatory Compliance;

Goals & Action Plans

Roles & Responsibilities;

Training & Competency;

Stakeholder Engagement/Communication;

Operational Controls;

Change Management;

Security & Emergency Preparedness;

Contractors & Suppliers;

Product Stewardship;

Documentation & Records

Global Performance System


8/20


Across the globe, Marathon is striving to reduce its environmental impacts, while expanding its operationsto meet growing energy demand. Eorts include decreasing operational use o natural resources, reducingemissions through energy eiciency improvements and investing in new technologies and renewable energy

resources.

We implement our main initiatives to protect the environment.

We will live by our core principles:

Protecting the environment in which we work is a core value for Marathon. If a job cant be done in a safe and

environmentally conscious manner, we wont proceed until we can do so in a responsible way.

We will always implement the appropriate management systems:

Were committed to developing customized procedures, procuring equipment as necessary and using best

practices and lessons learned rom around the world. All workers will communicate daily about the operation

and identify potential hazards. If an unforeseen event occurs, we will report the incident, clean it up properly,

work diligently to determine why it happened and identiy what we will do to prevent re-occurrence. We will also

conduct baseline water testing as a best practice.

We will ensure that the wellbore is structurally sound and that no leaks exist:

Wellbore luids will be isolated rom groundwater by casing and cement, and the casing will be pressure-testedprior to any racture stimulation or hydrocarbon production. Casing integrity is ensured throughout the hydraulic

racturing process by continuous monitoring o annular pressure. Casing and cement also protect groundwater

rom oil and gas during the producing lie o the well. These procedures ensure reshwater aquiers are protected

rom wellbore luids.

We will implement surface fluid handling procedures at the wellsite:

Using lessons and procedures derived rom our management systems, we will implement measures to prevent

surace spills o luids or chemicals. For example, drip pots and catch pans will be used on mobile equipment to

prevent luids rom contacting the ground.

KEY POINTS

nRobust wellbore casing

procedures ensure

reshwater aquiers

are always protectedrom wellbore luids by

at least two barriers o

steel casing and cement

nChemical additives used

in hydraulic racturing

luid are similar to those

ound in household

products

nAny hydraulic racturing

luids or produced

water rom wells will

be reused or hydraulic

racturing or disposed

o in accordance

with environmental

regulations

Environmental StewardshipMarathon strives to reduce its environmental impact across all o its operations

Fracture treating the Eagle Ford ormation through several horizontal

stages. The depth o the Eagle Ford ormation, as can be seen,

ensures that the aquier is not afected.

Casing strings protect the aquier.

AQUIFER

16 in. Conductor Pipe

10.75 in. Surface Casing

5.5 in. Production Casing


9/20


COMPOUND PURPOSE COMMON APPLICATIONS

Acids Helps dissolve minerals and initiatessure in rock (pre-racture)

Swimming pool cleaner

Sodium Chloride Allows a delayed breakdown o thegel polymer chains

Table salt

Polyacrylamide Minimizes the riction between uid

and pipe

Water treatment, soil conditioner

Ethylene Glycol Prevents scale deposits inthe pipe

Automotive anti-reeze, deicingagent, household cleaners

Sodium/Potassium

Carbonate

Maintains efectiveness o othercomponents, such as crosslinkers

Washing soda, detergent, soap,water sotener, glass, ceramics

Glutaraldehyde Eliminates bacteria in the water Disinectant, sterilization o medical

and dental equipment

Guar Gum Thickens the water to suspend thesand

Thickener in cosmetics, baked goods,ice cream, toothpaste, sauces

Citric Acid Prevents precipitation o metaloxides

Food additive, ood and beverages,lemon juice

Isopropanol Used to increase the viscosity o the

racture uid

Glass cleaner, antiperspirant,

hair color

Typical Shale Fracturing

Mixture Makeup

90%

WATER

9.5%

SAND

0.5%

CHEMICAL

Typical Chemical Additives Used in Hydraulic Fracturing Water

There has been much debate about the luids used in hydraulic racturing. The table below indicates the additives

that are mixed with the sand and water in the hydraulic racturing process. Many o the additives are similar to

those ound in household chemicals.

All chemicals or additives used at a wellsite must have a corresponding material saety data sheet, or MSDS, or

use by both the workorce and emergency services personnel. We participate in a website (www.racocus.org)

that publicly discloses rack luid components in speciic wells.


10/20


Seismic testing, which has been perormed saelyby the oil and gas industry or decades, involvessending vibrations through the earth and recording

the relected waves as they come back to the surace.

Collecting the data requires equipment that includes a

vibration, or vibe, truck and recording devices knownas geophones. The data recorded will ultimately

provide inormation about the earths properties and

allow Marathon to create maps o major layers o the

subsurace.

The Process

In areas that require seismic, introductions with

landowners will be conducted and agreements signed

to grant access so crews can conduct the testing. A

team o surveyors will scout a targeted area and walk

the actual lines where the geophones will be placed.

Prior to testing, acquisition crews will lay out lines o

cables with geophones attached. The cables will be

connected to a recording truck, where technicians

with computers will record data during acquisition

operations.

To create the subsurace waves, three to our vibe

trucks will travel to a speciic location where the lines

o geophones have been installed. The trucks lower a

large plate to the ground that vibrates and creates the

waves o energy.

While the trucks generate some noise, the vibrations

are typically not enough to cause more than a ripple

in a container o water. Additionally, a monitoring

instrument called a peak particle velocity meter is used

to measure the amount o energy reaching a nearby

structure. This allows the energy output o the vibrators

to be adjusted to prevent any damage to existing

buildings. Seismic acquisition at any given location

typically takes only a ew hours.

The relected signals are recorded and reviewed or

completeness in the recording truck. The vibe truck

may move slightly and repeat the process i necessary.

Once a line has been completed, the crew will pickup the geophones and cables and move to the next

location.

Seismic TestingCompanies use waves o energy to provide pictures o the subsurace geology to help determine

where to drill

1 The equipment is set up such that the geophones are laid out on the surace and connected to the

recording truck. The vibe truck then lowers the plate to the ground and starts to vibrate.

2 Sound waves rom the vibrations pass through the earths layers.

3 The waves are reected at the interace o diferent rock types and return to the surace where they

are recorded on the geophones.

2

1

3

KEY POINTS

nAgreements must be signed between the seismic contractor and landowners

beore testing begins

nSurveying crews will visit sites in advance o testing

nDuring testing, large trucks will send vibrations into the ground to provide a

picture o the subsurace geology

nTypically, trucks are at each site or only a ew hours

nThe data is collected using small geophones placed in the ground and

removed when testing is completed


11/20


Seismic crew deploying the cables in the eld

Vibration plate lowered into position on groundThe vibration truck

Geophone recording device inserted into the groundGeophones are manually placed into the earth


12/20


Drill Pad ConstructionPreparing the land or the arrival o the drilling rig is an important part o the project

DrillingA drilling rig moves on site and careully drills deep into the earth over several weeks

Construction process

Once the wellsite has been identiied and an accessagreement has been signed, an area o land is

cleared so that drilling, construction and production

traic can enter the site. This may require upgrading

roads and, in some cases, erecting power lines to

connect the site to the local electrical supply. The

impacted area or drilling is typically less than 500 eet

by 500 eet. The drilling pad itsel is usually 350 eet by

400 eet.

As part o the clearing process, topsoil is removed and

typically stored on site or use in the reclamation o the

pad at a later date. Rocks may be removed and reused

elsewhere. As part o the construction phase, a number

o actors are taken into consideration, including

saety, proximity to water sources, buildings and

other public places. Additionally, measures are taken

during construction to ensure that surrounding land is

preserved and protected. This may include using rocks

or other material to control water runo rom the pad.

Typically, several large construction vehicles will clear and level the drill site

KEY POINTS

nAccess roads will be

upgraded i necessary

to accommodate

construction equipmentand traic

nConstruction vehicles

will clear land and

construct drill pad on

site

Once a site has been prepared, the drilling rig movesin, a process that will require numerous truckscarrying various parts o the rig. Once assembled, the

rig will be both visible and audible as drilling operations

take place around the clock or approximately three to

four weeks for each well. In some cases, more than one

well will be drilled at the same location. Noise-reduction

equipment will be used where possible, and lights will be

used at night to ensure the saety o the workers.

Drilling Process

Once the operation begins, the drill bit is lowered into

the hole by adding sections o drill pipe at the surace.

This pipe is pumped ull o drilling luid, or mud,

which travels down the pipe, through the bit, and back

to the surace, carrying rock pieces, called cuttings.

The mud has several unctions. As it passes out o the

drill bit, it lubricates the cutting surace, reduces riction

and wear and keeps the drill bit cooler. Additionally, it

carries rock cuttings away rom the drill bit and back to

the surace or separation and disposal. While traveling

back up the hole, the mud also provides pressure to

prevent the hole rom caving in on itsel.

KEY POINTS

nThe drill rig will be bothvisible and audible and

will typically be on site

or about three to our

weeks or each well

nThere will be an

increase in road traic

during this time

nA rigs primary unction

is to drill a hole in the

earth by lowering a drillbit on drill pipe

nAt depths approved

by governmental

regulators, drilling

will stop and steel

casing will be lowered

and cemented in

place beore drilling

continues

Drill bit


13/20


Drilling rig

Casing Creates Physical Barriers

Drilling will be stopped at certain depths to place steel

casing into the ground to protect the hole as well as

surrounding rock layers and underground aquiers. The

casing is ixed in place by pumping cement down theinside o the casing and up the outside between the steel

casing and the surrounding rock. Drilling operations are

halted until the cement hardens. The quality and integrity

o the cement job is then checked with a logging tool.

The casing and cement create a physical barrier between

the external ormation and the inside o the pipe to stop

external luids and rock rom entering the wellbore during

drilling. It also keeps production fluids and natural gas

rom escaping the wellbore in the production phase.

Once the hole has been drilled to the target depth,

workers remove the drill pipe and run tools into the well

to evaluate the target rock layer. Once that evaluation

is complete, a inal casing segment is installed and

cemented in place. Additional cement plugs are let inside

the casing or added protection.

To inish the drilling process, a stack o valves is placed

on top o the wellhead at the surace. These valves allow

access to the wellbore in the uture and will be the main

eature visible once the drilling rig leaves.


14/20


KEY POINTS

nHydraulic racturing is

the well stimulation

process required to

make shale reservoirseconomically viable

nThe luid used contains

99.5 percent sand and

water with 0.5 percent

additives, many o

which are ound in

household products

nFreshwater aquiers are

protected by at least

two barriers o steelcasing and cement

Completion & TestingHydraulic racturing is the stimulation process required to make shale plays economic

Ater the drilling rig has let the location, wellcompletion will start. The timing could vary romdays to months, but will again result in increased

activity.

The Process

The well completion process starts by removing any

temporary plugs that were placed in the wellbore. The

casing is pressure tested to ensure integrity, i.e., that

no leak paths exist. The wellbore is then peroratedby sending down a tool reerred to as a perorating

gun, which contains numerous individual shot charges

that are ired into the casing at the designed depth.

Once the charges go o, they create a hole through

the casing and cement into the rock ormation. This

will allow the oil and natural gas to low rom the rock

ormation into the well. The tool is used at such great

depths that nothing is heard or elt on the surace

when the gun is ired.

As noted previously, to enhance productivity, a well

stimulation process known as hydraulic racturing isused to create small cracks in the underground geologic

ormations that in turn allow luids and natural gas to

low more easily into the well and up to the surace.

The process involves pumping a stimulation luid (see

page 7) into the shale ormation at high pressures to

create the small ractures a ew millimeters wide, up

to 500 eet in height toward the surace, and up to

approximately 2,000 eet in length. When the pressure

is released, the ractures attempt to close but the sand

contained in the luid keeps the racture open, making

an easy path or oil and gas to low into the well.

The volume o water required or the stimulation luid

can only be determined once the data received rom

the drilling operation has been analyzed, but can be

estimated at up to 4 to 8 million gallons (or 100,000to 200,000 barrels) o water or a horizontal well.

Marathon is working to optimize the use o non-potable

brackish water on racking programs to limit use o

resh water.

During the hydraulic racturing process, the pressure on

the outside o the casing is continuously monitored and

i a problem occurs, the job is stopped immediately.

During the past 60 years, the oil and gas industry

has conducted racture stimulations in more than 1

million wells worldwide.

Once the stimulation is complete, production rom the

well typically will be monitored or a ew weeks to

evaluate its perormance. Once the testing has been

completed, all equipment will be removed and the only

thing remaining on the site will be the valves on top o

the wellbore itsel.

Schematic showing hydraulic racturing. This is conducted within the shale that is several thousand eet below any reshwater aquiers.


15/20


In the production phase, activity levels are initiallyvery high as the Company substantially increases thenumber of wells drilled. In any one region Marathon

may have multiple drilling and completion rigs in

operation simultaneously.

In some cases, drilling pads can be designed to house

multiple wells per pad. The well would be connected

to production acilities, which are then connected to

pipelines.

Most sites will have equipment to separate the oil, gas

and water produced rom the well into distinct low

paths. Separate storage tanks will be required to collect

oil and water until trucks can visit the site. The trucks

will then haul water to another site or re-use or proper

disposal, and the oil will be transported to a sales point.

Most surace equipment will have some orm o lined

secondary containment to protect the surroundingenvironment in the unlikely event o a leak. The most

notable will be containment walls placed around tanks

and catch pans or mobile equipment to prevent any

material rom getting osite.

Operators will monitor production sites on a routine

basis to check tank volumes and ensure everything is

operating correctly. In addition, electronic monitors

and alarms are designed to immediately notiy our

personnel o any irregularity.

Ultimately, the production phase may last up to 30

years. On occasion, Marathon will need to bringequipment to the site to perorm maintenance on the

wellbores and processing equipment.

ProductionThe production phase could last or several decades

KEY POINTS

nEconomic well rates

must be observed in

both the exploration

and appraisal phasesbeore moving into the

production phase

nThis phase could last

up to 30 years and

result in the drilling o

hundreds o wells

nEach well must be

racture stimulated;

some o the water

necessary or these

stimulations can be

used in multiple wells

n In some cases, drilling

pads can be designed

to house multiple wells

per pad

nProduction acilities,

storage tanks and

compressors may be

added to sites

n Trucks may be required

to collect any liquids

produced

Typical onshore well


16/20


Abandonment & ReclamationOnce a ield has been depleted, the goal is to leave the land the way it was ound

KEY POINTS

nReclamation will leave the site the way it was

originally ound

nAll surace equipment will be removed

nWells will be illed with cement and pipes cut-o

below plow level

nAll pads will be illed in with dirt or replanted

Once a ield has been deemed depleted or uneconomic, it will be shut in andabandoned.Again, vehicle activity will increase as crews move around the well site and

remove equipment. Permanent plugs and cement will be set in the wellbores, in

accordance with State and Federal regulations, to ensure ull isolation rom the

reservoir and to prevent any leaks. The wellheads will be physically cut o rom

below the surace. Cement will be placed on top o the cut pipe as a inal barrier

The well will then be buried with dirt. The pad will be illed and the land will be

turned back to the owner.

A Marathon well that was drilled in the Shoshone National Forest in Wyoming, (let

photo). All equipment was removed rom the site later the same year

(right photo).


17/20


Cementing To prepare and pump cement into

place in a wellbore. Cement is used or a variety o

uses such as creating physical barriers on the outside

o casing strings or inside the casing as a plug that

can be used in several ways.

Completion A generic term to describe the

preparation o a wellbore or sae and eicient

production.

Derrick A steel structure mounted over the

borehole to support the drill pipe and other

equipment that is lowered and raised during drilling

operations.

Directional Drilling A technique that enables

drilling at an angle to reach a particular underground

ormation.

Drillbit Tool used in drilling to break up rock

mechanically in order to penetrate the subsoil. The

bit drills a circular hole.

Drill Pad The area constructed on the surace

rom which a drilling rig will drill wells.

Drill Rig The derrick, pumps, tanks, hoisting

system and other equipment collectively utilized to

drill a wellbore.

Exploration The process o searching or minerals

such as oil and gas that enables an oil and gas

company to determine whether to proceed with

appraisal and production.Geophone A device used in surace seismic

acquisition that detects ground velocity produced

by seismic waves and transorms the motion into

electrical impulses.

Horizontal Drilling An advanced orm o

directional drilling in which the well is drilled

horizontally through the reservoir.

Hydraulic fracturing The pumping o water,

chemicals and a proppant into a reservoir with such

orce that the reservoir rock is cracked and results in

greater low o oil or gas rom the reservoir.

Land Professional The individual in an oil and

gas company or agent who negotiates leases with

surace owners.

Material Safety Data Sheet (MSDS) A document

that shows important physical and chemical

characteristics o a chemical or product to alert

a user, transporter or other interested party to

potential saety hazards that may be associated with

the material. The MSDS also contains treatments

or exposure or ingestion as well as the type o

equipment needed or sae handling. An MSDS is a

legal requirement in most countries or all aspects o

commerce involving chemicals.

Mud Fluid used in drilling operations to cool the

bit, lit drill cuttings to the surace, and balance the

pressure o exposed rock ormations. Mud typically

consists o a base-luid and chemical additives such

as clay.

Natural Gas A naturally occurring mixture o

hydrocarbon and non-hydrocarbon gases ound in

porous rock formations. Its principal component is

methane.

Operator The party responsible or exploration,

development and production o an oil or gas project.

Permeability A measure o the ease with which

water, oil or natural gas can move through a rock.

Pipeline A string o interconnected pipe providinga route or natural gas to travel rom the wellhead

to market.

Plug A barrier, usually cement or a purpose-built

mechanical device, set in a borehole to block the

low o luids, to isolate sections o the well or to

permanently abandon a dry hole or depleted well.

Porosity The open space within a rock, similar to

pores in a sponge.

Processing The separation o oil, gas and natural

gas liquids and the removal o impurities.

Production A generic industry term that reers

to operations and activities involved in bringing

oil and gas to the earths surace, as well as initial

processing.

Proppant Naturally-occurring or man-madeparticles similar to sand which are part o a hydraulic

racturing stimulation. The proppant is necessary to

prevent the racture, which has been created duringa stimulation treatment, rom closing when pump

pressure is removed. The proppant particles prop

the racture open.

Reservoir A subsurace volume o rock that storesthe oil and gas being targeted.

Seismic A computer-assisted process that maps

sedimentary structures to assist in planning drilling

programs. Acoustic waves are generated at the

Earths surace, and their relection rom subsurace

rock ormations are measured to generate the map.

Shales A type o sedimentary rock containing very

small particles o minerals. Because o this small particle

size, the permeability o shale is extremely low.

Glossary


18/20


Glossary

Shut In Well A well capable o producing but

that is not actively being produced at a given

time. Reasons or wells being shut in may be

lack o pipeline access to market or economically

unavorable market prices.

Sound Barrier A wall or other device sometimes

erected in order to reduce the noise emitted rom a

particular operation.

Stimulation Fluid A liquid pumped into the

reservoir rock in order to create a racture, which

enables hydrocarbons to low rom the reservoir into

the wellbore. The stimulation luid also transports the

proppant into the racture. Stimulation luid is water-

based with chemical additives.

Vibration Plate The metal plate that creates the

energy waves used in seismic operations. The plate

is lowered to the ground and is mechanically vibrated

which in turn send waves o energy into the earth.

Waste Water Water that has been used in theexploration and production process, has returned to

the surace rom the wellbore, and will be disposed o

according to relevant environmental regulations.

Well A hole drilled through rock and cased with

steel pipe, which is then cemented in place. The well

is the conduit or hydrocarbons to be produced rom

the reservoir to the surace.

Wellhead The control equipment itted to the top

o the well, consisting o outlets and valves.

Notes

Sources: American Petroleum Institute; U.S. Department of Energy, Oce of Fossil Energy, National Energy Technology Laboratory; Schlumberger Oileld Glossary


19/20

About Marathon Oil

Marathon Oil Corporation (NYSE: MRO) is an international energycompany engaged in exploration and production, oil sands mining

and integrated gas.

Based in Houston, Texas, the Company has a strong portolio o assets

delivering deined growth leveraged to crude oil production with

exploration upside. The Companys operations are located in the United

States, Angola, Canada, Equatorial Guinea, Iraqi Kurdistan Region,

Libya, Norway, Poland and the United Kingdom.

Exploration and Production

Marathons exploration activities are ocused on adding protable

production to existing core areas and developing potential new core

areas. Marathons production operations supply liquid hydrocarbonsand natural gas to the growing world energy markets. Worldwide

production operations are currently ocused in North America, Arica

and Europe. The Company also holds ownership interests in both

operated and outside-operated oil sands leases in Canada that could be

developed using in-situ methods o extraction.

Oil Sands MiningMarathon owns a 20 percent outside-operated interest in the Athabasca

Oil Sands Project (AOSP), which includes the existing Muskeg

River and Jackpine mines, the Scotord Upgrader, and additional

prospective acreage in Alberta, Canada. These assets give Marathon

access to stable, long-lie Organisation or Economic Cooperation and

Development (OECD) production.

Integrated Gas

Marathons integrated gas business adds value through the

development o opportunities created by demand or natural gas. This

business complements the Companys exploration and production

operations and opens a wide array o investment opportunities designedto add sustainable value growth.


20/20

Marathon Oil Corporation

5555 San Felipe Street

Houston, TX 77056-2723

www.marathonoil.com

eagle ford fact book final

Documents