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Drillinginfo Strategy —Creating an Effective Partnership

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Drillinginfo’s Executive Solutions Series Going Deeper with Intelligent DataDrillinginfo Strategy — Creating an Effective Partnership

Also view this case study online: http://info.drillinginfo.com/tour/creating-effective-partnership/

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About Drillinginfo’s Executive Solutions for StrategyLead the industry and outpace the market 

Drillinginfo’s Executive Solutions combine comprehensive data, and advanced predictive and prescriptive analytics to provide complete views of the industry, your organization, and opportunities and risks that need to be top of mind.

Drillinginfo delivers: Answers you need to complex drilling challenges Insights that deliver greater and faster ROI Platform to lead you beyond competition and ahead of market expectations

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DI Strategy — Creating an Effective Partnership

Who Small independent producer with vertical success What Expand into more-lucrative horizontal drilling Goal Drill unconventional well in same formation as already-

producing vertical well Challenges No horizontal experience and limited financial resources for

investment

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DI Strategy — Creating an Effective Partnership

Step 1 – Drilling for Data Step 2 – Generate and Review Type Curves Step 3 – Analyze the Economic Landscape Step 4 – Locate Potential Partner, Negotiate Interests Step 5 – Optimally Plan, Drill and Complete the Well

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DI Strategy — Creating an Effective PartnershipStep 1 — Drilling for Data

Goal Compare the estimated reserves of producing assets with nearby horizontal wells.

Discovery Within minutes, discovered several operators with horizontal wells producing up to 4x amount of oil company’s vertical Bakken wells.

With Drillinginfo vs. Without Drillinginfo

Instantly access data on all producing assets of operations, including Estimated Ultimate Recoveries (EURs) and production volumes

Contact state regulatory agencies Request well data for competitors’ assetsManually perform thorough, time-intensive, and costly vetting process

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DI Strategy — Creating an Effective PartnershipStep 2 — Generate and Review Type Curves

Goal Create production scenario to analyzed type curves and estimated recovery for subsurface formation contained within lease.

Discovery Within minutes, confirmed that shale formation within lease could generate comparable production results.

With Drillinginfo vs. Without Drillinginfo

Zoom in on lease area with Production Scenarios AnalysisPull Production Volume bubbles Create visual comparative analysis with refined data sets

Access array of data sets from state regulatory agencies Reformat data to create uniformityPerform rigorous manual calculations to analyze and compare cumulative production results and decline curves

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DI Strategy — Creating an Effective PartnershipStep 3 — Analyze the Economic Landscape

Goal Analyze economics of forming partnership with nearby producer.

Discovery Quickly determined an appropriate net revenue interest for prospect based on up-to-the minute data for royalty-shared negotiation with potential partner.

With Drillinginfo vs. Without Drillinginfo

Access well-level Economic Analysis to analyze with production streams, commodity pricing, and appropriate net revenue and royalty sharing interestAccess Production Forecast Model to generate rate of return, sensitivity analysis, projected payout, and net present value for well

Locate any available dataImport the data into less intuitive software platform Or manually calculate potential costs for drilling horizontal well

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DI Strategy — Creating an Effective PartnershipStep 4 — Locate Potential Partner, Negotiate Interests

Goal Define small set of seasoned operators of unconventional wells in close proximity to company’s Bakken asset.

Discovery Located prominent producer with optimal well performances in area and negotiated revenue sharing interests.

With Drillinginfo

vs. Without Drillinginfo

Quickly zoom in on digital, color-coded map of areas surrounding field with refined data setsLocate nearby unconventional well producers by well production efficiency

Ask around about local producersResearch local newspaper articles Do drive-bysAcquire state regulatory agency dataReview and vet production data through rigorous analysisPresent partnership offer with limited knowledge and potentially flawed data sets

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DI Strategy — Creating an Effective PartnershipStep 5 — Optimally Plan, Drill and Complete the Well

Goal Plan for optimal production and efficiency of horizontal wellbore in area using well information from producers in region.

With Drillinginfo vs. Without Drillinginfo

Quickly determine most optimal # of perforation stages, spacing, and lateral length for drilling with integrated analyticsDetermine prime number of completion stages with Completions dataDetermine how much proppant and fluid went into each frack stage with Graded Acreage ReCreate detailed 3D visualization of drilling horizon to avoid geo-hazards with Geosteeringports

Ask around about local producersResearch local newspaper articles Present partnership offer with limited knowledge and potentially flawed data sets

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DI Strategy — Creating an Effective PartnershipOptimized Results

New horizontal well produced over 450 barrels of oil per day shortly after going online — thanks to research that helped create optimal wellbore, remained in the sweet spot, and incorporated best completion tactics for formation.

Formed productive new partnership Successfully drilled organization’s first unconventional well More than quadrupled oil production volume of company’s Bakken field Attained unconventional spotlight status Created landmark asset for company Generated immense profits to bankroll another prospect

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