Benefits nn Saved 7.3 rig days per well compared to nearby competitor offsets

nn Drilled back-to-back wells from spud to TD in under 10 days

nn Curve drilling efficiency improved by 50% based on reduction in drilling time

nn Pulled out of hole in less than 24 hours with no issues

Background and Challenges nn Two development wells in Eagle Ford shale

nn Drill 8½-in hole section, consisting of vertical, curve, and lateral sections

nn Reduce time drilling curve section and eliminate BHA trips to change/adjust drilling assemblies

nn Efficiently drill horizontal section by making inclination adjustments as needed to stay in zone

Baker Hughes Solutionnn Deployed AutoTrak Curve RSS, combined with Navi-Drill Ultra XL motor

nn Deployed Baker Hughes AT505 PDC bit

Venado Oil and Gas contacted Baker Hughes to drill two development wells in the Eagle Ford shale in Lee County, Texas. The wells were planned with a kick off point in the Austin Chalk formation, which is much thicker in area compared to other wells in the basin. Previous wells proved to be challenging while drilling the curve section. Slow rates of penetration (ROP) and inability to deliver the required build up rates (BUR) are also a concern for this formation.

Baker Hughes was challenged to drill the 8½-in hole section, which consisted of a vertical, curve (planned with 8°/100 ft build rate) and lateral sections averaging 9,900 ft per well. In addition, Venado wanted Baker Hughes to reduce the drilling time for the curve section from 2.5 days, as experienced on offset wells, and eliminate bottom-hole assembly (BHA) trips to change or adjust the drilling assemblies.

Another issue experienced on previous wells drilled was extended time pulling out of hole. Competitor rotary steerable pads and ribs hung up on the formation, creating numerous tight spots when pulling out at total depth. The previous two wells prior to the Baker Hughes project took 3-4 days to pull out of hole.

To address the challenges presented on these two wells, Baker Hughes used the AutoTrak™ Curve high build rate rotary steerable system (RSS), combined with the Baker Hughes

Navi-Drill™ Ultra™ XL motor and a Baker Hughes AT505 PDC bit. The RSS and drill bit were developed as a system in order maximize efficiencies.

The AutoTrak Curve RSS provided the ability to drill the entire production hole section from surface casing to TD with one drilling tool and one bit. The AutoTrak Curve closed loop system’s ability to downlink commands while drilling allowed the curve sections to be drilled with greater confidence and efficiency and its inclination hold mode proved improved consistency in the lateral than the competitor RSS. Curve drilling times were reduced to 23.5 hours and 37.0 hours, respectively–an efficiency improvement of over 50% compared to previous wells.

The fully retractable steering pads on the AutoTrak Curve RSS helped avoid potential tight spots while pulling out of hole. On both wells, the AutoTrak Curve RSS was pulled out of hole in less than 24 hours.

Because of its ability to successfully meet the drilling challenges presented, Baker Hughes was able to deliver an average savings of 7.3 days drilling time to Venado. The customer was very pleased with Baker Hughes’ performance and is looking to add more rigs to their program based on the success of these wells. Venado wants to work together with Baker Hughes in developing multi-well pad projects designed around the successful operations and experience.

Baker Hughes Drilling Solution Saved Average of 7 Days Per WellLocation: Lee County, TX

CASE HISTORY| bakerhughes.com

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© 2014 Baker Hughes Incorporated. All rights reserved. 40630 04/2014

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AutoTrak Curve vs. Competitor RSS + Conventional

Zoch Unit 1H Zoch Unit 2H Woelfel Unit 1H Competitor Offset 1 Competitor Offset 2

Depth vs Rig Days chart compares Baker Hughes AutoTrak Curve system’s performance to competitor’s conventional RSS.

CASE HISTORY