iRAVE : i ntegrated R eservoir A nalysis & V iz E nvironment

1. 2010 TIBCO Spotfire Energy Forum March 25, 2010 iRAVE: integrated Reservoir Analysis & VizEnvironment Project Collaborators: Jeff Mathews, Chevron Perry Dobson, Chevron John Pederson, Chevron Troy Ruths, Chevron Contractor

2. Agenda • What is iRAVE? • Demo Project Overview • How  iRAVE is used by Chevron NOJV Team for : • Pre Drill well package review/approval • Post Drill analysis • Current Year Drill Well Results • Reservoir Surveillance and Management • Summary • Conclusions • Lessons Learned • Best Practices • Future Work

3. What is iRAVE? • iRAVE • Is an acronym for integrated Reservoir Analysis & Visualization Environment • Created in the Spotfire environment

4. iRAVE Data Sources Current focus is static/dynamic reservoir and production data (no financials) • Files from Operator • Monthly via DVD • Oil Field Manager (MS Access) – production & downtime • WellView (MS Access) – well schematics and activities • Sporadic • Completion Schematics (Adobe PDF) • Production Logging (MS Word) • MDT Runs (MS Excel) • Proposed Drill Production Forecasts (MS Excel) • Weekly Well Test Report (MS Excel) • Files We Generate (as needed) • Well table including proposed drills and other well-specific data not supplied by Operator • Log images (Petrel workflow)

5. iRAVE Data Upload • MS Access-based data uploading tool • Can specify which data to be updated (reduces wait time) • Full upload takes ~30 minutes • Data is copied to SQL Server, and new tables are created for use in Spotfire • All done by our Geo Tech

6. Mars Oilfield Development N • Aram Project Lake Basin Fields • 3D Seismic 2099 • 1st oil 2111 • NOJV project • Operator: DXP (Delta Exploration Prospectors) 50 Km 3D Seismic Survey There may not be Life on Mars but there is Oil. Who Knew? http://themis.asu.edu/features/aramchaos

7. Mars Oilfield Development • Aram Project • Lake Basin Primary Fields • Bebob • Nigel • Kohnen • Montalva Bebob Kohnen Nigel Montalva

8. Mars Oilfield Development • Aram Project • Lake Basin Fields Geology • Similar to Earth • Sand Shale Sequence • Large Lake Basin • Lacustrine Oil Y series – Yogi M series – Mars A series - Ares

9. Mars Confidential MDP-422SW Bebob, Aram • Requesting approval for 6 wells in SW Bebob Field: Be303, Be304, Be305, Be441, Be445 and Be447. • SW Bebob Development • Currently 23 producers , 4 injectors • Oil Recovery thru YE 2117 = 10.2 MMBO • Estimated current SW Bebob EUR (decline curve) = 21.14 MMBO • Forecasted incremental capture reserves from MDP-422 wells = 6.1 MMBO • Planned Development (18 acre pattern infill) • Multiple YO sands in area • All wells to have M1-10 perfs • All wells to have M1-20 perfs • Tie in to Manifold Be152 SW Bebob Surface Map Producers Injectors New Wells

10. How Does the Chevron Team use iRAVE? • The Chevron Team uses iRAVE for : • Pre Drill well package review/approval • Post Drill analysis & Current Year Results

11. Before we go live… • We use the library function as opposed to WebEx or InfoLinks • It can be easily saved on a laptop for portability at offsite meetings • We will now go through the basic screens to show how we use iRAVE

12. Go Live

13. Well Package Proposal Example (MDP-422) Issues: Are well locations acceptable? Completion intervals okay?

14. Conclusions • iRAVE is an emerging technology which enables us to keep up with Operator. • Six rigs total • 100+ new completions per year • ~1,000 stims per year • $500 MM - $1,000 MM annual Capex and Opex budget • Only one geo and one engineer on Chevron team! • Team activities in 2009 generated over $50 MM in NPV utilizing iRAVE and independent mapping to identify project opportunities • iRAVE can be applied to other assets with minimal effort

15. Lessons Learned • Integrated platform allows improved decision-making, in some cases, better than the Operator • Splitting the process to compile data to a central server separate from the application allows easier adoption to other assets and easily integrate new data • This process has helped us influence the Operator by challenging their analysis methods (i.e., IP rates were always optimistic) • Plan for due diligence, that is, data clean-up, and influence Operator to improve data sources

16. Best Practices • 2009 Drilling Results plot – recognized by Chevron’s Internal Reserves Advisory Committee as best practice (type curves and comparison to actual new drills) • MDP post-drill analysis – has helped to influence Operator to review their proposals in more detail Early 2118 Package Mid 2117 Package

17. Future Work • Integrating other data elements • Stimulation Results • Pump Replacements • Production Attribute Background Maps • Well Pay Summaries • Simulation History-Match Data • Application windows • Stimulation Uplift Tracker & Predictor • Areal Bubble Maps • Waterflood Analysis • After-Before Compare (ABC) Plots • Downtime Analysis • Artificial Lift Analysis • Front-end to Business Plan and Reserves Documentation

18. Questions?Thank You!

19. Backup

20. iRAVE (integrated Reservoir and Visualization Environment) • Mars Rock Names* • Rock Name Mission • Bebob Mars Pathfinder • Tigger Mars Pathfinder • Nigel Mars Pathfinder • Kohnen Mars Rover Spirit • Macquarie Mars Rover Spirit • Montalva Mars Rover Spirit • Mackinac Mars Rover Opportunity • * from Wikepedia

21. iRAVE • Mars Rock Names* • Rock Name Mission • Yogi Mars Pathfinder