HAYNESVILLERegional Field Study

Field Study Introduction

NUTECH has combined its expertise with the emerging interest in North American shale plays in order to develop the most detailed regional field studies available to the E&P industry. These studies have been developed through NUTECH’s experience and analysis of several thousand wells with core and production data.

Each of NUTECH ’s studies provides insight into the connectivity across the area by simulating geological and petrophysical property distributions. The results confirm the stratigraphic variability as well as identify and quantify hydrocarbon columns per well and across the study area.

NUTECH ’s management team will provide geological-based input to assist you in decision making on each well, including working closely with your technical personnel in connection with well evaluations and listings.

Field Study Deliverables

1) Individual NULOOK Shale Analysis of each well in the study. Includes core calibrated calculations of permeability, effective porosity, water saturation, TOC, and lithology identification. Presented in pdf and tif format

2) Individual NuList Engineering Summary providing reservoir parameters in tabular form and additional calculations of Net Permeability, Hydrocarbon Pore Volume, and Free and Adsorbed GIP (BCF/sec) or OIP(MMBO/sec). Presented in .xls format

3) .las file for each well including the original open hole data going into the petrophysical model, and the curves

generated through NULOOK analysis

Field Study Deliverables

A sampling of wells taken from the regional study has been selected for NUSTIM horizontal completion optimization. NUSTIM evaluation builds on the Petrophysical & GeoTextural analysis by incorporating completion & economic data to deliver an optimized completion design for the reservoir of interest. Using a 30 scenario frac simulation model, NUSTIM will investigate various completion parameters including lateral landing point, rate, size, concentration, fluid, prop, and cluster spacing in the horizontal. Comparisons of created frac geometry, predicted production & decline, and ultimately Net Present Value will provide the client with an optimized completion design for the reservoir in this area. A recommended landing lateral target & pump schedule for the selected completion design is included. Deliverables for each of the NUSTIM wells will include pdf of the NUSTIM report & also an Executive Summary in PowerPoint format that steps through the NUSTIM process and results.

Fracture Geometry Comparison Production Prediction Comparison

Net Present Value Optimization

Field Study Deliverables

1. 3D Structural Model using well picks for the top and base of the objectives (although faults exist throughout the

trend they were not included in this project due to the regional scope, a lack of seismic data and the stratigraphic nature of the play)

2. Stratigraphic Cross Sections per project area using NuLook presentation

3. 3D Petrophysical Property Distribution Model

4. Multiple Realizations of property distributions for each project area

5. CSIM (Composite Stratigraphic Image Maps) created

6. Printed Scaled Plots of CSIMs, one each (i.e. Average Porosity (PHIE), Clay Volume, Free Fluid porosity (PHIE-BVI), Average Permeability (PERMSH Avg) and KH (PERMSH Net), VClay, TOC (Total Organic Carbon), HCPV (Hydrocarbon Pore Volume), Structure and Thickness maps (below are some examples of the maps included)

7. Maps can also be delivered electronically in a zmap plus format (maps can be uploaded into different software

packages & overlay maps can be created)

8. Executive Report, Project Binder, and CD

9. NUVIEW PDFs for all wells used in the project (paper copies are available for an additional fee*)

Field Study Deliverables

A sampling of wells taken from the regional study has been selected for NUSTIM horizontal completion optimization. NUSTIM evaluation builds on the Petrophysical & GeoTextural analysis by incorporating completion & economic data to deliver an optimized completion design for the reservoir of interest. Using a 30 scenario frac simulation model, NUSTIM will investigate various completion parameters including lateral landing point, rate, size, concentration, fluid, prop, and cluster spacing in the horizontal. Comparisons of created frac geometry, predicted production & decline, and ultimately Net Present Value will provide the client with an optimized completion design for the reservoir in this area. A recommended landing lateral target & pump schedule for the selected completion design is included. Deliverables for each of the NUSTIM wells will include pdf of the NUSTIM report & also an Executive Summary in PowerPoint format that steps through the NUSTIM process and results.

Fracture Geometry Comparison Production Prediction Comparison

Net Present Value Optimization

Field Study Deliverables Geomechanical Analysis

Rock Properties such as, Poisson’s ratio, Young’s modulus, Biot’s constant, pore pressure, overburden pressure, in-situ stress profile descriptions, and brittleness

1. Young’s Modulus is a measure of the stiffness of the rock. It can be obtained from the measurement of dynamic modulus using sonic log measurements. Calculations of Young’s Modulus based on the petrophysical properties of an interval are correlated to core or sonic log measurements, allowing for good predictions in intervals where sonic and core data are not available. This property impacts both the NuStim fracture and production models. Typical Young’s Moduli range from 100,000 to 10,000,000 psi

2. Poisson’s ratio is a rock property which governs the NuStim fracture growth model. It is a component of the stress profile. Poisson’s ratio is defined as the ratio of lateral strain to longitudinal strain. It can be obtained from core measurements or indirectly obtained from sonic log measurements. Calculations of Poisson’s ratio based on the petrophysical properties of an interval are correlated to core or sonic log measurements, allowing for good predictions in intervals where sonic and core data are not available. Poisson’s ratio values typically range from 0.15 to 0.4

3. Brittleness coefficient (%) - Lower values indicate a ductile zone, while higher values indicate a more brittle interval. A brittle zone is more likely to be naturally fractured and to respond positively to waterfrac stimulation techniques

Bossier Co

Webster Co

COUNTY

Bienville

De Soto Co

Natc

Sabine Co

Upshur Co

Marion Co

Harrison Co

Gregg Co

kee Co

Shelby Co

Caddo Co

Panola CoRusk Co

Red River Co

PETRA 1/17/2014 11:22:38 AM

 

Haynesville  Regional  Field  Study    

The  Haynesville  is  a  complex  stratigraphic  sequence  that  was  deposited  during  the  Upper  Jurassic  within  a  limited  and  stratigraphically  variable  area  in  the  Northeast  Texas  /  North  Louisiana  section  of  the  Gulf  Coast  Mesozoic  Basin.  The  thickness  and  quality  of  this  highly  prospective  interval  is  directly  related  to  its  depositional  position  with  respect  to  basement  rifting  and  salt  thickness  as  well  as  its  presence  within  restricted  euxinic  areas.  This  reservoir  is  further  impacted  by  several  transgressive  /  regressive  events  plus  turbiditic  influxes  that  serve  to  impact  the  original  development  of  this  complex  carbonate  /  siliceous  mudstone  sequence.  This  project  focuses  on  the  core  area  of  the  Haynesville  play  along  the  Texas–Louisiana  state  line  and  extends  outward  toward  the  known  limits  of  this  unconventional  play.  The  heterogeneity  of  this  sequence,  when  combined  with  its  thermal  history  and  geopressure,  has  a  direct  impact  on  the  reservoir  quality  of  the  Haynesville  both  with  respect  to  its  matrix  qualities  as  well  as  its  fracture  stimulation  compatibility.  

This  study  provides  a  petrophysical  and  geological  analysis  of  41  Haynesville  wells  that  allows  insight  into  the  connectivity  of  textural  attributes  of  the  wells  with  NULOOK  Shale  Analysis  and  attribute  mapping  from  NUVIEW.  Also  available  to  coincide  with  the  study  is  NUSTIM  Geomechanical  Analysis  that  depicts  formation  brittleness  and  fracability  identification.  

Pricing  Guide  

Haynesville 41 wells $75,000 GeoMechanical $25,000

Wellname State County APIBAKER #1 LOUISIANA BIENVILLE 17013201640000SUSTAINABLE FOREST #1 LOUISIANA BIENVILLE 17013216490000USA 74 #6 LOUISIANA BOSSIER 17015236330000ELM GROVE PLANTATION #15-ALT. LOUISIANA BOSSIER 17015234780000EGP #63H LOUISIANA BOSSIER 17015243920000D. L. GISH ETAL #1-23 LOUISIANA CADDO 17017228480000E & L DEVELOPMENT INC. #1 LOUISIANA CADDO 17017344440000SENTELL #1-34 LOUISIANA CADDO 17017246960000HALL 9 #1 LOUISIANA CADDO 17017345970000CLD 23 #1 LOUISIANA CADDO 17017345330000BRAY 27-1 LOUISIANA CADDO 17017343140000CHIGGERO ETAL 14-1 LOUISIANA CADDO 17017342970000WILLIAMS 22 #3 LOUISIANA CADDO 17017342780000RONNIE BOZMAN 35 #1 LOUISIANA DE SOTO 17031243110000WEYERHAEUSER LA #1 LOUISIANA DE SOTO 17031243680000ROBERT CREWS #3-ALT LOUISIANA DE SOTO 17031243710000PARKER #1 TEXAS HARRISON 42203336490000SOHIO R. S. TERRY ESTATE #1 TEXAS MARION 42315301590000TRAWICK GAS UNIT #2-3 TEXAS NACOGDOCHES 42347301150000SANDBAR UNIT #1 TEXAS NACOGDOCHES 42347316740000MARTIN B #1-32 LOUISIANA NATCHITOCHES 17069200730000JANETTE MESSENGER 8 1 LOUISIANA NATCHITOCHES 17069204080000FITE UNIT #14 TEXAS PANOLA 42365344100000ROY S. MANGHAM #2 TEXAS PANOLA 42365306940000ROLAND ANDERSON GAS UNIT #1 TEXAS PANOLA 42365351030000MORGAN GAS #1-14 LOUISIANA RED RIVER 17081204430000A&F WALKER LTD. PART., ET AL #1-28 LOUISIANA RED RIVER 17081208540000MARTIN TIMBER COLLC #1-10 LOUISIANA RED RIVER 17081208550000J.W. ADCOCK #1 LOUISIANA RED RIVER 17081208570000CV RA SUO; LA WILDLIFE NO.1 LOUISIANA RED RIVER 17081209130000J.W. ADCOCK #2 LOUISIANA RED RIVER 17081208750000THOMPSON GU #3 #1 TEXAS RUSK 42401308770000DELAFIELD #1 TEXAS RUSK 42401301730000MOTLEY #1 TEXAS RUSK 42401306300000PONE #1 TEXAS RUSK 42401335530000C.E. WILLIAMSON HEIRS #1 TEXAS RUSK 42401300820000CRIM #8 TEXAS RUSK 42401337640000NO.1 WILKERSON GAS UNIT TEXAS RUSK 42401329170000CATES #1-25 LOUISIANA SABINE 17085205500000TEMPLE-EASTEX #1 TEXAS SHELBY 42419302740000ANNIE IRISH #1 TEXAS SHELBY 42419301620000

Haynesville Regional Field StudyNuTech Energy Alliance