1 PetroMar Technologies, Inc. Confidential

Image is Worth a Thousand Words …

Long history and mature workflows

Broad range of applications Geology

Lithofacies

Drilling, well placement

Completions

Part of complex Petrophysical workflows including other information sources

In most cases accompanied by Caliper

Electrical methods dominated ….

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New Imaging Challenges

Borehole Imaging Difficult

Costly & Risky

Electrically Nonconductive

Mud

Heavy Mud

Highly Deviated or

Horizontal Well

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How is the Industry Coping?

Using wireline oil based imagers on very few wells Very expensive (rig time +

service) Risk of LIH Wireline Casing wear in Deep

Water Imaging quality severely

challenged in horizontal wells and with poor borehole quality

Until FracView….

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Image courtesy of LOGICOM E&P

Solving a Long Standing Challenge

FracView™ acquires high resolution borehole images in any mud, including heavy Oil Based Mud

Compatible with any service provider and BHA

Vertical, deviated and horizontal wells No disruption to the drilling process Affordable Easily integrated into the petro-physical

interpretation workflow

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About FracView

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FracView is the winner of the 2017 Shale Gas Innovation Contest

• The first tool on the market to image horizontal wells while drilling with heavy OBM

• Applications for both conventional and unconventional reservoirs

• Proven in multiple long horizontal wells

PetroMar’s FracView Deployment – BHA assembly in progress

FracView Characteristics

High resolution LWD borehole imager Acoustic impedance images Caliper Drilling dynamics information Two independent transducers Better than 0.25” image resolution 360 degrees coverage Down to 1 ms sampling rate, insensitive to

high RPM Engineered for robustness and reliability DLIS output compatible with petro-

physical interpretation software Hooks in place for integration with RT

communication

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FracView Characteristics

Dynamically focused transducer Acquisition sequences

optimized for specific applications

Autonomous operation Internal batteries and memory

for 200 hours + of continuous operation

Internal orientation and drilling dynamics system

Total tool length 5ft 2in in the 6.5 inch size

Standard API connections, fits any BHA

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Ultrasonic Beam Focal Distance Controlled by DSP

Sensitivity to Rock Properties

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CLAY Formation rocks F(matrix & porosity)

Contrast in signal

Contrast in rock

impedance

Sensitivity to Fractures and Texture

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Laboratory Testing

Carbonate sample photograph Acoustic Image, 1.3” distance

0.5in

Sample holder

Sensitivity to Fractures and Texture

0.5in

Sample holder

Focus Effect on Image and Caliper

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Focused TX, Unfocused RX Focused TX and RX Unfocused TX and RX

Reduced sensitivity to

angle of incidence

Mea

sure

d Ca

liper

Angle of Incidence

Heavy Mud Impact

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14 lbs/gal mud

Sample located 1.3 inch from transducer

18 lbs/gal mud

0.5in

Applications

Geology Petrophysics Well and field engineering Advantages

While drilling imaging in any mud system Eliminating the cost and risk of wireline runs When used for engineered completion lowering the cost and

environmental footprint of fracking Benefitting from reduced circulating temperature when imaging in high

temperature reservoirs

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Example Applications

Fracture and breakout characterization Like interval identification Cross-well fracture detection Hydraulic fracture optimization

Fine layers and vugs detection Formation stress analysis Borehole stability Dip measurement Lithology and facies identification Advanced formation evaluation in combination with other data, ex.

Resistivity, NMR, density (improved permeability estimations, carbonate interpretation, laminated formations)

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Field Examples

Field : Marcellus

8.5 in borehole

SOBM 12.5 lbs/gal

120 RPM

16 De

pth

inte

rval

7.7

ft

Field Test #2 – Long Lateral

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Time [s]

Field Test #2 – Long Lateral

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Processing Workflow

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Job Planning

•Well information •Customer objectives •Mud testing • FracView Configuration

Logging

•Tool verification • Logging •Tool readout and verification

Pre-processing

•Generation of images •QC •Conversion to DLIS

Petrophysical interpretation

• Fracture ID and classification •Dip picking •Geological interpretation

Compatibility with Image Interpretation Software

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Borehole Caliper

FracView provides high resolution borehole caliper

High precision mean borehole diameter logs can also be generated

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Depth =XX32 ft

Image Repeatability

Multiple passes over ~ 100 ft section

Zoom into a fracture and breakout

Raw data, no dynamic normalization or other image enhancements

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2ft

Caliper Repeatability

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10 ft/division 10 ft/division

Product Specifications

Nominal Collar OD [in] 4-3/4* 6-1/2 8 ** Tool length [ft.] 5ft 5in 5ft 2in 5ft 2in Top connection - box NC38 NC50 6-5/8 Reg. Bottom connection - box NC38 NC50 6-5/8 Reg. Make-up torque [ft-lbs] 10,000 28,000 56,000 Maximum dogleg severity, rotating [°per 100 ft.]

15* 10* 8*

Maximum dogleg severity, sliding [°per 100 ft.] 30 21 15

Maximum mud flow rate [GPM] 250 700 800

Maximum operating temperature [°C] 150 and 165 versions available

Maximum survival temperature [°C] 155 and 175 respectively

Maximum operating pressure [KSI] 20 and 25 versions available

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M E C H A N I C A L A N D E N V I R O N M E N T A L

* 4-3/4” tool in manufacturing ** 8” tool on roadmap. Sensor and electronics designed to be shared among all 3 tool sizes. Larger sizes possible.

Product Specifications

Size [in] 4-3/4 6-1/2 8 Borehole size range [in] 5.875 … 7.75 7.875 … 9.875 9.5 … 12.25

Max mud weight [lbs/gal] 14 (18 with reduced standoff)

Range of transceiver focus 0.75…2.5” (dynamically adjusting to environment)

Imaging resolution ~0.2”

Sampling rate User configurable, down to 1ms

Recommended stabilizer 0.25” under gauge recommended

Power source Internal batteries

Battery endurance Dependent on acquisition configuration, min 190 hours of continuous operation on high capacity batteries

Real time communication On the roadmap, hooks in place

Internal memory Sufficient for >200 hours of continuous imaging in downhole processing mode. Typical readout time of 200 hrs of processed image <10 minutes (acquisition configuration dependent). Rich data modes require longer

readout time.

High speed readout port 80 Mbps high speed sustained read rate (GBit in development)

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P E R F O R M A N C E *

* Performance shown in commercial mode, rich data field test and experimental acquisition modes available

Q&A

THANK YOU !

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