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Making the Marcellus Attractiveat Todays Economics

Martin Craighead

President and Chief Operating Officer

Baker Hughes

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Marcellus Asset Life Cycle

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Exploration

Appraisal

Development

Production

Rejuvenation

Plug andAbandon

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Extent of Devonian ShaleMarcellus Shale

Clarksburg Facility

Mountaintop Facility

Fairmount City Facility

New Stanton Facility

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TARGET

Shale Gas Evaluation SuiteMcKean County, Pennsylvania

Exploration

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Reservoir Navigation ServicesArmstrong County, Pennsylvania

Appraisal

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2010 Baker Hughes Incorporated. All Rights Reserved.6

6000.00

7000.00

8000.00

9000.00

10000.00

11000.00

12000.00

13000.00

0 1 2 3 4 5 6 7 8

MeasuredDepth

(ft)

Days on Well

Drilled with conventionalmotor

Motor in the curve andAutoTrak rotarysteerable system inlateral

Next generationAutoTrakrotarysteerable system with

high build up capability

Drilling OptimizationGreen County, Pennsylvania

Appraisal

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Natural Fractures Offset Fractures Fault

Image Data

Appraisal

Fault DrillingInducedFracture

OffsetInducedFracture

Bedding

PlaneBeddingOffset

Fault

OffsetInduced

Fracture

FaultPartiallyOpen

Fracture

BeddingOffset

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8/8/2019 002.Martin Craighead

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Plug and Perf Completion Systems

Development

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Single Run Multizone Completion Systems

Baker Hughes FracPointTM System

Development

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Annular FracBHA

EasyTag CCLPacker

Baker Hughes Ported Collar and Custom Pup Joints

Coiled Tubing Annular FractureCompletion Systems

Development

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Fracture Stimulation Modeling

Development

0 200 400 600 800 1000 1200

Length (ft)

Width Contours

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0

200000

400000

600000

800000

1000000

1200000

0 1000 2000 3000 4000 5000 6000 7000NORALIZED

6MO

GASCUMP

RO

D

APPROX HORIZ LENGTH

NORMALIZED 6 MO GAS CUM VS LENGTH

Key Learnings

Development

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0

200000

400000

600000

800000

1000000

1200000

82 84 86 88 90 92 94 96NORMAL

IZED

6MO

GASCUMP

RO

D

AVG DRIFT ANGLE

NORMALIZED 6 MO GAS CUM VS AVG DRIFT ANGLE

Development

Key Learnings

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Total Production Solutions

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Production

Design productionsystems

Maximizesaleable gas

Reduceenvironmental risk

Decline Curve

Time

Production

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Rejuvenation

Rejuvenation

Reduce production decline

Remediate sub-economic

wells Determine a recompletion

and workover strategy

Refracture

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Environment Minimize surface impact

SmartCare: Environmentally responsibleoilfield chemicals

Water management

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Making the Marcellus Attractiveat Todays Economics

Martin Craighead

President and Chief Operating Officer

Baker Hughes