One Trax Where do I get mud report

One. Trax Where do I get mud report data? 1 2/14/2018

International Association of Drilling Contractors 2 2/14/2018

IADC – Standard Daily Drilling Report Form • One of the most important sources of oil industry information. • A legal document signed by Driller and Toolpusher, showing compliance with Operator’s drilling contract, Federal and State laws, and legal rules controlling drilling practices. • An accounting document from which the contractor prepares his invoice to the Operator’s representative shows approval by his signature. • Source of data, such as ROP (rate of penetration), costs, depth measurement, well completion records and equipment performance; used by engineers in the preparation of reports 3 2/14/2018

Heading • Note the number in the upper left hand corner. The number assigned to this report is not used by any other rig, company or IADC report. • All information is filled in by the driller daily. • Signatures of Operator’s Representative and Contractor’s Toolpusher certify the information is accurate and complete. • Drill Pipe information, size, weight, grade, TJ OD, thread type – operating limits and hydraulics • Pump Information , manufacturer, type, stroke length – hydraulics and volumes 2/14/2018 4

Heading • Field or District, County, State/Country is filled out the same time as the previous information on the previous slide. • Casing record shows the “last” string run. • Information will provide casing size, minimum inside diameter (I. D. ), length, RKB to Casing head and setting depth. • Wire Line Record provides a cumulative history of usage. 5 2/14/2018

Drilling Assembly • A description of all downhole tools. • the complete current drill string at the end of his tour, whether in or out of the hole. • Stands? Singles? Kelly down? • Drill String Weight • This section provides billing info for rental tools. • When fishing, top / bottom of the fish should be shown in the “Details of Operations in Sequence and Remarks” 6 2/14/2018

Bit Record 7 2/14/2018 • All bit information at the end of each tour, for each bit run, used or pulled during that tour. • Bit number is assigned to the bit by counting consecutively from the bit used to spud the well regardless of the bit size. • Jets • TFA (Total Flow Area) • Depth Out / Depth In • Total (footage) Drilled • Total Hours (Drilled) • Grading

Mud Record • Time • Weight • Pressure Gradient • Funnel Viscosity • PV / YP • Gel Strength • Fluid Loss • Solids • Blank Space? LCM? LSRYP? • Mud and Chemicals Added 8 2/14/2018

Drilling Information • This information shows compliance with contract terms and regulatory body rules. • Surveys are listed with depth, deviation (angle), direction (azimuth), TVD (true vertical depth), and horizontal displacement. 9 2/14/2018

Drilling Information • The Time Log is usually kept in ¼ hour increments • Elapsed Time • Code No. is based on time distribution codes. (next slide) • Details of operations in sequence and remarks • Driller’s Signature • The Number!!! 10 2/14/2018

Time Distribution - Drilling Each tour has twenty standard codes listed, and three blanks for operations not covered, e. g. , W. O. W. 11 2/14/2018

Time Distribution Summarized 12 2/14/2018

Time Distribution Summarized 13 2/14/2018

Time Distribution - Completion • Perforating • Tubing Trips • Treating • Swabbing • Testing • Three Blank Spaces • Hourly totals 14 2/14/2018

Time Distribution – Day Work Summary and Costs Daywork Time Summary (Office Use Only) 15 2/14/2018 No. of Days from Spud Cumulative Rotating Hours Daily Mud Cost Total Mud Cost

Time Distribution Summarized 16 2/14/2018

Payroll Data Driller completes this section for each tour Employee ID No. (SS# in USA) Name (Printed or signed) Hours worked Initials to indicate Yes or No / “Injured on this tour? ” Space provided for description of ALL injuries or accidents 17 2/14/2018 Cumulative record of the supervision and safety practices on each Driller’s tour.

What have you learned? • IADC Daily Drilling Report is a legal document • IADC report is individually numbered with each of three sections containing the corresponding number. • IADC is a wealth of information • IADC should be checked daily for potential errors 18 2/14/2018

Drilling Mud Report • The daily completion of an accurate Drilling mud report is one of your primary responsibilities. • A mud report is a legal document – your signature at the bottom attests the information is true and correct to the best of your knowledge • If it is hand written, make it neat and legible. 20 2/14/2018

Header Information Does this look familiar? IADC could be a source. • API approved • Chronologically numbered • Date / Depth • Spud Date • Current Activity 2/14/2018 21

Drilling Assembly, Casing Info, Volumes, & Circulation Data • Bit Information • Drill Pipe information • Drill Collars • Casing information • Volumes, pits (where do you get this? ) • Mud type • Circulation Data – Pump info? 22 2/14/2018

Mud Properties from your mud check Sample from Time taken FL temp Depth (TVD) Weight (ppg, S. G. ) Funnel Viscosity (Temp? ) Rheology (Temp? ) Solids (Calculated or Retort) Methylene Blue Capacity p. H (strip or meter @ Temp) Alkalinities Chlorides Total Harness Blanks? 23 2/14/2018

Specifications, Treatments and Remarks • Specifications from where? • Recommended Tour Treatment • Remarks, rig activities in relation to the drilling fluids 24 2/14/2018

Product Inventory Starting inventory What about Engineering Received Services? Used last 24 hours Closing inventory Cost $$$ Used (from IADC) why? 25 2/14/2018

Waste Management (Solids Control) Equipment Record mesh sizes and hours the equipment was operated 26 2/14/2018

Time Distribution Looks familiar? IADC report has many of the same descriptions for the Time breakdown. 27 2/14/2018

Volume Accounting How important is it? Why? 28 2/14/2018

SOLIDS ANALYSIS • Low gravity? • Bentonite? • Drill Solids? • Shale CEC? • D/B Ratio? • High Gravity? 29 2/14/2018

Mud Rheology and Hydraulics Zero Gel (10 sec? ) Average ROP ECD where? Leak off, where? n’s and k’s Bit Hydraulics Annular Sections - from the top down Hole size (csg ID or OD? ) Pipe OD Critical Velocity Annular Pressure 30 2/14/2018

Your name and reputation here!!! M-I Swaco Representative Contact information Daily cost Cumulative cost Boiler housing? Dog house check? Pencil it in? The disclaimer……………… 31 2/14/2018

Disclaimer • THIS REPORT AND ANY OPINION AND/OR RECOMMENDATION HEREIN, AND/OR ORAL STATEMENTS MADE BY AN M-I SWACO EMPLOYEE IN CONNECTION WITH THE REPORT (THE “INFORMATION”) ARE ADVISORY ONLY AND MAY BE REJECTED BY THE USER. ALL PARTIES RECEIVING SAME RECOGNIZE THAT M-I SWACO DOES NOT HAVE ANY CONTROL OF THE WELL AND HAS NO SUPERVISION OVER ANY OF THE OPERATIONS PERFORMED IN OR ABOUT THE WELL. THEREFORE, M-I SWACO IS NOT RESPONSIBLE OR LIABLE FOR CLAIMS FOR INJURY OR DEATH OR FOR LOSS OR DAMAGE TO ANY WELL OR OTHER PROPERTY ALLEGED TO HAVE BEEN CAUSED BY, OR TO HAVE ARISEN OUT OF, ANY INFORMATION CONTAINED IN THIS REPORT. THE OWNER OF THE WELL AND THE DRILLING CONTRACTOR, IN CONSIDERATION OF THE INFORMATION CONTAINED IN THE REPORT, AGREE TO INDEMNIFY AND HOLD M-I SWACO HARMLESS FROM AND AGAINST ALL CLAIMS AND ACTIONS DESCRIBED BASED ON OR ARISING OUT OF INFORMATION CONTAINED IN THIS REPORT, REGARDLESS OF WHETHER SUCH CLAIMS AND ACTIONS 32 2/14/2018 ARE BASED UPON THE ALLEGED NEGLIGENCE OF M-I SWACO.

Tally Book • Examples of what you may need to fill out a One. Trax Report 33 2/14/2018

Your Tally Book • Yes, it is considered a legal document • Some operators will not allow them to leave the rig • Some will ask that they be turned in at the end of a well 34 2/14/2018

Questions? 35 2/14/2018