Speaker:David F. Martineau,Exploration Manager forPitts Oil Company andDallas Production, Inc.

Texas Interstate DrillingCompany LP - Rig #2

Barnett ShaleBarnett ShaleFrac Frac GradientGradient

VariancesVariances

Data courtesy of the Bureau of Economic Geology

Ft. Worth Basin

NEWARK EAST FIELD - NUMBER PRODUCING WELLS VS. TIME (Through August 31, 2002)

1 2 8 19 27 31 3847 67 85

99 126168

244300

374446

523

702

1199

1646

0

200

400

600

800

1000

1200

1400

1600

1800

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Time - Years

No

. P

rod

uc

ing

W

ell

s

Number of Wells Current Production 18,020,381 Mcf/Mo. or 600 MMcf/D

Regional dip on the Barnett Shale is about one-half degree to the north. It thickens as it dips to thenorth, reaching a maximum thickness of almost 1,000 feet and a maximum depth of 8,500 feet near theTexas-Oklahoma border. There are two parallel high-angle reverse faults along the northern margin ofthe Ft. Worth basin that mark the northeastern limit of preserved Barnett Shale.

Ft. WorthGas Well

DallasDry Hole

DecaturGas Well

Western Limit of

Viola & Simpson

Limestone

Nickname for the Newark, East (Barnett Shale) Field

“Brute Strength and Ignorance”

Who’s riding on thebacks of whom?

Pitts Oil

Devon Energy

Barnett Shale requires massive hydraulicfracture treatments.

• The original frac treatments in the 1980’s was 300,000gallons of gel and 300,000# of sand. Over the years thevolume increased to 1,000,000 gallons of gel and1,000,000# of sand. In 1997 a company changed the fracmethod to a “slick water frac” or “light sand frac.” Thismethod used only fresh water with a very small amount ofsand. Example: 1,000,000 gallons of fresh water (no gel)and only 100,000# sand.

Courtesy of Schlumberger

2

3

45

67 8

12

910 11

BC

D

2

34

567 8

12

910 11

B C D

They look alike, but sure don’t act alike,

or should I say they don’t FRAC alike!

The Barnett Shale has been compared to twins.

Baker Hughes – Prism Log

Denton County Well

Zone A

Zone B

Zone CZone D

Zone E

SONIC-DIPOLE WITH FRACCADE ADVISOR BY SCHLUMBERGER

SCHLUMBERGER PRODUCTION LOGS

Original completion in 1995

produced 742,784 MCF.

Refraced in March 2000.

Has produced 668,990 MCF

to 9/02 and currently making

12,803 MCF/month.

Courtesy of Schlumberger

Don’t sit on the sideline!The Barnett Shale is a great play.

Get your company involved.

Join theplay.

It’s in yourbackyard.

The watersfine!