Presented by Todd Bush of Energent Group at Texas Eagle Ford Shale EXPO 2014 in Corpus Christi, Texas. A look at the top operators and wells. Who are the top operators drilling and completing? What counties are companies focusing on now? What operator’s are the most efficient? What completion designs and techniques are those companies using?

1. THE EAGLE FORD COMPLETION TRENDS
YOU NEED TO KNOW
Todd Bush
todd.bush@energentgroup.com
http://www.energentgroup.com
@EnergentGroup

2. OBSERVATIONS
• Drilling “productivity” highest in Eagle Ford
• Top operators focus on field development
and efficiency improvements
• Choke management attention increases
• Evidence of completion standard operating
procedures for casing
• Cost per foot in Eagle Ford
2

3. EAGLE FORD DRILLING PRODUCTIVITY
3
Source: EIA, April 2014

4. ‘UNCOMPLETED’ REDUCED BY 667
4
800
700
600
500
400
300
200
100
0
Drilling & Completion Activity for 2013
Permits
Completions
Rigs
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: EIA, Texas RRC, Energent Group Jan – Dec 2013

5. OBSERVATIONS
• Drilling “productivity” highest in Eagle Ford
• Top operators focus on field development
and efficiency improvements
• Choke management increases
• Evidence of completion standard operating
procedures for casing
• Cost per foot in Eagle Ford
5

6. TOP OPERATORS BY WELL STARTS
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Rank 1 2 3 4 5
% of Total 12.75% 9.27% 8.09% 6.62% 4.65%
Count 356 259 226 185 130
Min Days 2 7 3 1 0
Max Days 115 381 121 303 124
Std.
Deviation
12 56 26 48 25
Avg Days 16 38 30 67 35
Source: Texas RRC, Energent Group Jan – Dec 2013

7. EOG INVESTING HEAVILY
7
Source: Texas RRC, Energent Group Jan – Dec 2013
EOG 2014 drilling plan:
520 Net Wells
26 Rig program

8. MURPHY FOCUSING ON KEY FIELDS
Murphy 2014 budget:
$1.395B to Eagle Ford
Piloting 20-acre spacing
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9. TOP 5 OUTPERFORM OTHERS BY 31%
9
30
25
20
15
10
5
0
Days to Complete Timeframes for 2013
All Operators
Top 5 Operators
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: Texas RRC, Energent Group Jan – Dec 2013

10. OBSERVATIONS
• Drilling “productivity” highest in Eagle Ford
• Top operators focus on field development
and efficiency improvements
• Choke management attention increases
• Evidence of completion standard operating
procedures for casing
• Cost per foot in Eagle Ford
10

11. CHOKE OPERATING PROCEDURES
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Distribution of Choke Size
68% - Marathon, Comstock, & Chesapeake at 16/64
96% - EOG Resources at 32/64
Source: Texas RRC, Energent Group Jan – Dec 2013

12. IP TO CHOKE SIZE
12
EOG Resources
Marathon
Chesapeake
Source: Texas RRC, Energent Group Jan – Dec 2013

13. OBSERVATIONS
• Drilling “productivity” highest in Eagle Ford
• More pad drilling, less emphasis on rig count
• Top operators focus on field development
and efficiency improvements
• Choke management attention increases
• Evidence of well completion standard
operating procedures
• Cost per foot in Eagle Ford
13

14. CONFIRMING ANECDOTAL EVIDENCE
Considerations
• Only 19% of wells use
intermediate casing
• Does 10 3/4” and 13 3/8”
indicate trial well
completion designs?
• Is there evidence of a
standard well construction
in certain areas?
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Top 10 Casing Sizes by Count
Source: Texas RRC, Energent Group Jan – Dec 2013

15. PROPPANTS VARY BY PLAY
• Water continues to be key issue
• White sand at a premium but suppliers may
lean towards resin coated sand
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Source: Texas RRC, FracFocus, Energent Group Jan – Mar 2013

16. FRAC JOBS ACROSS EAGLE FORD
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Source: Texas RRC, FracFocus, Energent Group Jan – Mar 2013

17. FRAC JOBS AROUND DE WITT
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Source: Texas RRC, FracFocus, Energent Group Jan – Mar 2013

18. OBSERVATIONS
• Drilling “productivity” highest in Eagle Ford
• Top operators focus on field development
and efficiency improvements
• Choke management attention increases
• Evidence of well completion standard
operating procedures
• Cost per foot in Eagle Ford
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19. ESTIMATED D&C COSTS
Play Lateral Length Drilling costs Cost per foot
Bakken 8000 ft $8.2 - 10 mm $512 - 555
Eagle Ford 5000 ft $5.5 - 8.5 mm $458 - 556
Granite Wash 5000 ft $5.3 - 7.0 mm $331 - 378
Haynesville 5000 ft $8.0 - 11 mm $516 - 594
Permian 4000 ft $2.5 - 4.0 mm $304 - 363
Source: Shale Technology Study 2013 19

20. BREAKDOWN OF WELL COSTS
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21. CLOSING THOUGHTS
• Consider the productivity of the Eagle Ford
compared to other shale plays
• Identify who is pad drilling for benchmarking
or sales opportunities
• Understand the asset team’s standard
operating procedure
• Stay informed of regional news and market
conditions
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