© 2014 BAKER HUGHES INCORPORATED. ALL RIGHTS RESERVED. TERMS AND CONDITIONS OF USE: BY ACCEPTING THIS DOCUMENT, THE RECIPIENT AGREES THAT THE DOCUMENT TOGETHER WITH ALL INFORMATION INCLUDED THEREIN IS THE CONFIDENTIAL AND PROPRIETARY PROPERTY OF BAKER HUGHES INCORPORATED AND INCLUDES VALUABLE TRADE SECRETS AND/OR PROPRIETARY INF ORMATION OF BAKER HUGHES (COLLECTIVELY " INFORMATION"). BAKER HUGHES RETAINS ALL RIGHTS UNDER COPYRIGHT LAWS AND TRADE SECRET LAWS OF THE UNITED STATES OF AMERICA AND OTHER COUNTRIES. THE RECIPIENT FURTHER AGREES THAT THE DOCUMENT MAY NOT BE DISTRIBUTED, TRANSMITTED, COPIED OR REPRODUCED IN WHOLE OR IN PART BY ANY MEANS, ELECTRONIC, MECHANICAL, OR OTHERWISE, WITHOUT THE EXPRESS PRIOR WRITTEN CONSENT OF BAKER HUGHES, AND MAY N OT BE USED DIRECTLY OR INDIRECTLY IN ANY WAY DETRIMENTAL TO BAKER HUGHES’ INTEREST.

AccuTrak™ Passive Magnetic Ranging Service

Robert Estes, Mgr, R&D – Sensor Physics June 4, 2015, Halliburton office – 3000 N. Belt, Houston

Drilling Engineering Committee 2015 Q2 Technology Forum

SPE/IADC-173135-MS High Speed, Continuous Single Well Magnetic

Ranging

Chad Hanak, Intuitive Machines and Robert Estes, Baker Hughes

PRESENTATION OVERVIEW

• Problem Description

• Implementation Considerations

• Solution Method

• Accuracy Assessment

• Field Testing

Slide 3

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging

PROBLEM DESCRIPTION

Slide 4

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging

Magnetometer Drill collar

N S Target Casing

Residual magnetism

S N

IMPLEMENTATION CONSIDERATIONS: Casing Residual Magnetism

Slide 5

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging

IMPLEMENTATION CONSIDERATIONS: Casing Residual Magnetism

Slide 6

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging

Total Magnetic Charge per Joint of

Casing:

IMPLEMENTATION CONSIDERATIONS: Other Uncertainties

Slide 7

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging

Sensing and Reference Field:

Orientation and BUR:

N N N s s s

SOLUTION DESCRIPTION Slide 8

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging

True Trajectory

B_total

MD Assumed Trajectory

Update

SOLUTION DESCRIPTION: Operational Implementation Slide 9

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging

Downhole Measurements from Directional Sub Mud Pulse Telemetry

Surface Software

Casing Residual Magnetism Info. Ranging Display

N N N s s s

RANGING DISPLAY

ACCURACY ASSESSMENT

Slide 11

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging

Simulation Results: • Two horizontal wells • Displaced vertically by 5 meters • Monte Carlo simulation

FIELD TESTING: Above Ground, 3 m Sep. (1 of 2)

Slide 12

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging

FIELD TESTING: Above Ground, 3 m Sep. (2 of 2)

Slide 13

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging

FIELD TESTING: Above Ground, 5 m Sep. (1 of 2)

Slide 14

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging • Chad Hanak

FIELD TESTING: Above Ground, 5 m Sep. (2 of 2)

Slide 15

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging • Chad Hanak

FIELD TESTING: Drilling a Vertical Well (1 of 3)

Slide 16

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging

FIELD TESTING: Drilling a Vertical Well (2 of 3)

Slide 17

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging

Near-Field (< 6 m) Range Accuracy:

Far-Field (> 6 m) Range Accuracy:

FIELD TESTING: Drilling a Vertical Well (3 of 3)

Slide 18

SPE/IACD-173135-MS • High Speed, Continuous Single Well Magnetic Ranging

Near-Field (< 6 m) Lateral Pos. Accuracy:

Far-Field (> 6 m) Lateral Pos. Accuracy:

• At the BETA test facility, we have successfully demonstrated ranging against a very weak magnetic anomaly.

• This test demonstrated

ranging capability initializing at 18m range, and successfully navigated with 10% accuracy out to 25m.

FIELD TESTING: Weak Signal Capability

AccuTrak PMR vs. Active ranging “shots” AccuTrak Real-Time Bit Position AccuTrak Survey Position

Section View Section View

Plan View Plan View

FIELD TESTING: MAD Pass through a SAGD Injector Well

© 2014 BAKER HUGHES INCORPORATED. ALL RIGHTS RESERVED. TERMS AND CONDITIONS OF USE: BY ACCEPTING THIS DOCUMENT, THE RECIPIENT AGREES THAT THE DOCUMENT TOGETHER WITH ALL INFORMATION INCLUDED THEREIN IS THE CONFIDENTIAL AND PROPRIETARY PROPERTY OF BAKER HUGHES INCORPORATED AND INCLUDES VALUABLE TRADE SECRETS AND/OR PROPRIETARY INF ORMATION OF BAKER HUGHES (COLLECTIVELY " INFORMATION"). BAKER HUGHES RETAINS ALL RIGHTS UNDER COPYRIGHT LAWS AND TRADE SECRET LAWS OF THE UNITED STATES OF AMERICA AND OTHER COUNTRIES. THE RECIPIENT FURTHER AGREES THAT THE DOCUMENT MAY NOT BE DISTRIBUTED, TRANSMITTED, COPIED OR REPRODUCED IN WHOLE OR IN PART BY ANY MEANS, ELECTRONIC, MECHANICAL, OR OTHERWISE, WITHOUT THE EXPRESS PRIOR WRITTEN CONSENT OF BAKER HUGHES, AND MAY N OT BE USED DIRECTLY OR INDIRECTLY IN ANY WAY DETRIMENTAL TO BAKER HUGHES’ INTEREST.

Questions?

Robert Estes robert.estes@bakerhughes.com

Drilling Engineering Committee 2015 Q2 Technology Forum