MegaForce™

Presenter Name

Agenda ▌ Welcome and Introductions

▌ MegaForceTM Advantages ▌ Local Applications

▌ Differentiators and Technology ▌ Case Studies ▌ DatCITM ▌ Summary ▌ Questions & Answers

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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Advantages ▌ Higher Rate of Penetration ▌ More Robust Cutting Structure ▌ Lower Cost per Foot ▌ Application Specific Design

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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MegaForceTM Drill Bit Differentiators FEATURES

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

BENEFITS

SelectCutter™ PDC Technology

Stays sharper, drills faster and further • - Faster ROP • - More footage drilled • - H Cutter for tough applications

Improved Matrix Material

Optimized Tungsten Carbide Blend - - Reduced erosion and wear - - Maintains better cutter support

Multilevel Force Balancing

Optimizes cutter placement - - Increases bit stability - - Increases cutting structure efficiency

Enhanced Hydraulics

Optimizes fluid flow across bit face - - Better placement of nozzles - - More control of fluid movement

Optimized Shank Length

Reduced bit length for directional control - - Reduces bit-to-bend distance - - Consistent make up torque

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SelectCutter™ PDC Technology ▌ Abrasion Resistance  The capability of a cutter to shear formation and minimize the loss of diamond  Improvements in diamond abrasion resistance maintains the sharp cutting edge longer for a higher rate of penetration ▌ Impact Resistance  The ability of a cutter to manage a dynamic force

Cutters stay sharper longer and once they begin to wear, they wear slower. This means that the bit will drill farther faster, and reduce the cost per foot drilled.

 Improvements in cutter impact resistance inhibit chipping and breaking to retain a sharp drilling edge for a higher rate of penetration ▌ (TMI) Thermal Mechanical Integrity™  The increased capacity of a cutter to endure frictional heat generated during the drilling process.  Improving TMI means the diamond-to-diamond bonds can survive elevated temperatures prior to separating resulting in premature cutter wear © 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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SelectCutter™ PDC Technology

Cutter Performance Characteristics 100

Impact Resistance

90

201

80 70 2009

2010

60

2011

2003 50 40 30 20

30

40

50

60

70

Abrasion Resistance

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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80

90

100

Advanced Tungsten Carbide Matrix ▌ 20% improvement in erosion resistance  Less Cutting structure loss  Ensures higher ROP

Relative Volume Loss 100 90

100

80

▌ 20% improvement in wear resistance  Less Bit body damage  Ensures longer intervals drilled

70 60

71

50

63

40 30 20 10 0

Pre-FXP90 Matrix

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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FXD63 Matrix

MegaForce Pre300Matrix

Advanced Tungsten Carbide Matrix

MegaForce Matrix Material

FX Matrix Material

Green = zero material loss Red = material loss (erosion) according to scale

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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Multilevel Force Balancing ▌ Modified Cutter placement layout  Even cutter loading during Transitional Drilling ▌ Layout increases drilling efficiency

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Multi Level Force Balanced

Standard Force Balanced

 Optimizes the depth of cut on adjacent cutters

2 1

High Imbalance Force created by uneven distribution of cutting force as bit enters formation transition

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

2 1

3

Low Imbalance Force created by even distribution of cutting force as bit enters formation transition 9

Enhanced Hydraulics ▌ Micro Nozzle Advantages ▌ Improved placement optimizes cleaning and minimizes erosion

Standard Nozzles

▌ Additional nozzles allow for more TFA flexibility

▌ Micro nozzles permit significant increases in junk slot volume to  Improve cleaning at high ROP

 Reduce chances of bit balling

Micro Nozzles

 Offer additional design flexibility for minimizing erosion

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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Bottom Hole Velocity Vectors

Standard Nozzles

Micro Nozzles

ft/sec © 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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Optimized Shank Length ▌ Minimized Shank length (14%) 12

 Maintains fatigue life in Connection

10 In & In2

 Reduces Bit-to-Bend distance

▌ Maximized bit breaker slot (57%)  Ensures proper make-up torque can be achieved

8 6 4 2 0

 Reduces bit breaker malfunctions

Makeup Length FX

MegaForce

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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Breaker Area

Rockies: 20% Faster ROP and increased interval drilled ▌ HDBS 7 7/8” MM65H vs FX65 ▌ Uintah County Utah ▌ Drilled 31% more footage at 20% increase in ROP over the same section. Improved dull condition to 1-1-WT

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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East Texas: 18% more footage with 25% faster ROP ▌ HDBS 8 ¾” MM75RH ▌ Leon County Texas ▌ Drilled in the Cotton Valley with 18% increase in footage on best offset and 25% higher ROP on that offset

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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Texas Panhandle: Increased interval in Granite Wash ▌ HDBS 6 1/8 MM64DH ▌ Wheeler County Texas

MM64 DH

▌ 18% increase in footage over best offset while drilling in the Granite Wash

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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Permian Basin: Higher ROP with one run to TD ▌ HDBS 7 7/8” MM65DMH ▌ Upton County Texas ▌ Drilled entire interval at a ROP 37% higher than only other offset to reach TD in one run

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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MegaForce™ Nomenclature

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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DatCISM Process ▌ Direction by Design® ▌ iBits™ ▌ SPARTA ™ ▌ PBR

▌ Customized drill bits to match specific applications and directional drilling requirements

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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Summary ▌ MegaForce™ stands for:  Higher Rate of Penetration  More Robust Cutting Structure  Lower Cost per Foot

 Application Specific Design

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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MegaForce™ ▌ Questions?

© 2014 HALLIBURTON. ALL RIGHTS RESERVED.

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