Microseismic Work Group Teleconference, February 19, 2012

1. Microseismic Work GroupTeleconference, February 19, 2012 Presenters Jana Schey, Energistics David Heath, Transform Henry Bland, Pinnacle / Halliburton

2. Microseismic Workgroup Teleconference Objectives • Anti-Trust • Introduction to Energistics • Who is driving this effort? • Motivation for a standard • How is this different from SEG2-M? • Work complete to date • Where do we go from here?

3. Energistics Anti-Trust and IP Policies • Intellectual Property • Participation indicates agreement to abide • Do not disclose confidential • Disclosures are deemed public • Contributions are made with grant of rights to use, modify, etc. • Competitive Information • Do not disclose pricing, costs, sales, plans, schedules, etc. • Or your participation may be terminated • If you are uncomfortable regarding such legal matters, leave the meeting and report your concerns.

4. Introduction to Energistics • An open standards industry consortium • Twenty-one years serving the upstream industry • Over 100 active members… • Integrated, independent & national energy companies • Oilfield service and professional service companies • Software, hardware and integration vendors • Regulatory agencies, institutes and media partners

5. Energistics Microseismic Workshop Denver Feb 20th 2012Hosted by Transform

6. Why do we Need a Standard, or What is Wrong Today? • Microseismic Events • In the majority of cases the Events are transmitted via column formatted ASCII or Excel (including .csv) files X,Y,Z,Date,Time,Amp,LTA,SNR,ID,SEMB,F,Peak,N,RHOG,SEMBLTA,FOCMECH,DIP,STRIKE,RAKE,Trig,Thresh,DIST,Conf,DIST2,Conf2,Winner,ConfHi,Stage 2470814,572322,6848,08-12-2011,09:52:43.487,0.10884,0.03916,2.78,002,0.00784,26.4,+0.17654,22,0.00,0.00000,1,090,058,-95,0.10884,2.78,0678,157.0835,0000,0.0000,1,157.0835,3 2471728,573392,6942,08-12-2011,09:52:44.074,0.11289,0.03492,3.23,001,0.00814,25.1,+0.14603,59,0.00,0.00000,1,090,058,-95,0.11289,3.23,0744,194.7542,0000,0.0000,1,194.7542,3

7. Dates and Times • Is Date and Time relative? • What is it relative to? • What are the Units • Or is Data and Time Absolute? • Do we know the time-zone? • Are the date and time defined in the same columns or different columns? • What format are the data and time in?

8. Event Locations • Are Locations Relative? • Are they with respect to the treatment or observation well? • Are they in True North or Grid North!!! • What are the Units • Or are Locations Absolute • What Coordinate Reference System (CRS) are they defined in? • Do they use the CRS units or something else • Seen UTM CRS with Feet measurements

9. Event Vertical Locations • Are they TVD from Treatment Well? • Or are they TVD from Observation Well? • Or are they Elevation above MSL? • But what is MSL? • Or are they TVDSS? • Positive down or up? • Or are they Elevation above a given Datum?

10. Who is the Biggest Loser? • The Client • Time required to load the data • That is if the know all the missing information • Date/Time information can generally be implied • True North/Grid North can not • Units of measure must be known • End result – The can make wrong assumptions – which can lead to high cost mistakes!

11. How is it Fixed? • Build a Standard • We all Adhere to it

12. Energistics Microseismic Workshop First attempt at mapping the data flow

13. Actors In a Frac Monitoring Microseismic Job Field Frac Supervisor Field Seismic Acquisition Engineer Office Seismic Project Manager Office Frac Engineer Microseismic Interpreter or consultant • And others… • Data archivist • Data broker • Regulator • Researcher Seismic Data Processor Company Representative

14. Wellhead coordinates and deviation surveys Field Frac Supervisor Field Seismic Acquisition Engineer Office Seismic Project Manager Office Frac Engineer Microseismic Interpreter or consultant Seismic Data Processor Company Representative

15. Pre-job frac program Field Frac Supervisor Field Seismic Acquisition Engineer Office Seismic Project Manager Office Frac Engineer Microseismic Interpreter or consultant Seismic Data Processor Company Representative

16. Real-time treatment data Field Frac Supervisor Field Seismic Acquisition Engineer Office Seismic Project Manager Office Frac Engineer Microseismic Interpreter or consultant Seismic Data Processor Company Representative

17. Microseismic trace data Field Frac Supervisor Field Seismic Acquisition Engineer Office Seismic Project Manager Office Frac Engineer Microseismic Interpreter or consultant Post job Real time Seismic Data Processor Company Representative

18. Microseismic Event Locations Field Frac Supervisor Field Seismic Acquisition Engineer Office Seismic Project Manager Office Frac Engineer Microseismic Interpreter or consultant Seismic Data Processor Company Representative

19. Data exchange between participants • What do we see? • Data are frequently exchanged across company boundaries • Data exchange can be real-time or non real-time • Data exchange happens regularly, frequently, and with absolute necessity • Microseismic trace data accounts for just a few of these exchanges • Seismic trace-data formats are not suited to many of these non-seismic data exchanges

20. What do we need? • A standard data format for transmitting these data • On disk (probably XML) • Between computers via a network link in real time (possibly using SOAP or JSON over an internet link) • Implementation by microseismic providers, consumers, software and hardware manufacturers • An effort that tries to build on existing standards, when possible. • Participation, support and commitment by operators, regulators, service companies, and academia

21. Deliverables

22. The next steps Creation of a committee. It should include • Microseismic service providers (acquisition, processing, consulting) • Oil and gas operators who utilize microseismic services • Software and hardware manufacturers who work with microseismic data • Industrial users for non-oil and gas applications • Academic or regulatory bodies that research or utilize microseismic data The committee will work openly and inclusively to accept input from all stakeholders.

23. Formation of the committee • Send your nominations to ALL THREE email addresses below. Nominees should be members of the Energistics consortium. • Henry Bland henry.bland@pinntech.com • Julie Shemeta julie@meqgeo.com • Jana Schey jana.schey@energistics.org • Nominees will be notified, and asked if they want their name to stand. Nominees from the same company will be asked to consolidate participation to a singe representative. If the committee exceeds 15 people, a vote by nominees shall determine the makeup of the committee.

24. Committee tasks • Elect a chair set dates for future meetings • Consult with the special interest group members (both on and off the committee) to maximize the chance of acceptance of the standard. • Work directly, or through subcommittees, and with Energistics staff to complete and publish the standard.

25. Summary • Inaugural workshop meeting was an excellent first step • Our industry urgently needs a data exchange standard • We need to form a Microseismic Committee to direct the development of a standard • Email your committee nominations by March 26th, 2012 • Spread the word about the work being performed by this group. • Show this presentation to colleagues within your company