Oil & Money 2015 Chair: Andrew Gould - Chairman BG Group Panel: Ashok Belani - Executive Vice President, Technology Schlumberger Kevin A. Neveu - President and Chief Executive Officer Precision Drilling Mark Papa - Partner Riverstone Holdings LLC

1. #OM2015
 Abundant Tight hydrocarbon geology
 Technical innovation
 2010 catalyst event
 Strong financial macro environment
and sunk cost infrastructure
 Industrialization Development
North American Tight Oil De-risking and Development
De-risking

2. #OM2015
Industrialized Process
A process that achieves the same result and always making sure to get a higher quality and precision in
much shorter terms and lower costs.
 Process designed to produce an
optimized, lowest cost repeatable
outcome
 Every step is improved, measurable and
benchmarked
 Lean concepts applied
 Result is predictable, consistent,
repeatable and cost efficient
 Scale enables industrialization

3. #OM2015
Drilling Industrialization and Technical Innovation
2,000
3,000
4,000
5,000
6,000
5
10
15
20
25
30
2008 2009 2010 2011 2012 2013
-39%
20152014
+28%
Depth(meters)
DrillingDays
Case Study 2008 – 2015
• North East BC: Montney Deep Gas Basin
• 1200HP AC Super Triple Rigs
• 161 Wells
• Decreased drilling days by 39%
• Increased in hole depth by 28%
• Highly accurate and repeatable digital control of the rig systems
(top drive, draw works, mud pumps, downhole tools) –
mechanized pipe handling, closed loop drilling software
• Real time integrated downhole data
• Predictable, repeatable large scale drilling programs
• Optimized well design and optimized pad configuration
• Reduced non productive time
• Rapid, efficient rig mobility – walking/moving
#OM2015
Industrialization
Technical
Innovation
Note: Completion & Technical Innovation not included in above assessment

4. #OM2015
Reading The Tea Leaves – E&P Investor Messaging
#OM2015Slides courtesy of Encana, ConocoPhillips, Pioneer and Anadarko Corporate Investor presentations at September Barclays CEO Energy-Power Conference, New York.

5. #OM2015
Globalization of Tight Oil Development?
 Tight hydrocarbon geology
 Technical capability for drilling and completion processes
 Catalyst event
 Strong financial macro environment + sunk cost infrastructure
Will global tight Oil resources achieve de-risking ?
Will industrialization and full commercialization be possible ?