FOR INTERNAL USE ONLY

FOR INTERNAL USE ONLY 2015 HALLIBURTON. ALL RIGHTS RESERVED.

01: Value Proposition/Elevator Pitch

Progressive Cavity Pump (PCP)

Value Proposition: PCPs enable pressure-deficient, high solid, high viscosity content oil wells to optimize production by a high efficient positive displacement pump consisting of only two pieces: rotor and stator. Elevator Pitch: When a hydrocarbon-producing well does not have sufficient bottom hole pressure to lift fluids to the surface at an economical rate, a PCP can be applied as a means to provide that energy, with a simple structure, very few moving parts, low hydraulic losses and a high efficiency performance. PCPs can cover a wide range of fluid volumes and are less limited to well depths than most other methods. They are able to pump in a range of 5 - 3,500 bpd depending on casing size, setting depths, temperature, and pressure limitations. Halliburton PCPs can handle volumetric efficiency in the range of 75% - 95%. High viscosities over 30,000 cp, sand content up to 40% and water cut up to 100%.

02: Features and Benefits Features Simple structure (rotor + stator) High solid concentration High free gas, viscosity and water content Small surface footprint Gas handling/separation capabilities

Benefits High efficient artificial lift method Low operating cost, low profile, simple operation and maintenance Increased production in heavy oil and deviated wells Easy production control Energy savings Low capital cost

03: Customer Challenge and Halliburton Solution Main challenges Realize the economic potential of the well over its life cycle Select and install the optimal lift method, in such case as well does not flow naturally Overcome natural obstacles, including declining wellbore pressure, elevated temperatures and/or viscosities, free

gas, solids, and adverse chemistry. Achieve an equipment run life that maximizes economic performance of the well PCPs are found useful in both heavy and conventional oil production and are generally used in mature fields. It supports almost 70% of the global heavy oil crude production annually. Pump elastomer is the most critical component that must be able to handle aggressive environments and provide long run life and reliable operation. Halliburtons elastomer technology has the ability to develop deferent elastomer compounds to address several different conditions.

FOR INTERNAL USE ONLY

FOR INTERNAL USE ONLY 2015 HALLIBURTON. ALL RIGHTS RESERVED.

04: Competitive Analysis Weatherford: Major international competitor with manufacturing, selling and service capabilities worldwide. Viewed as technology leader and owner of several brands. Involved in all market segments. Schlumberger: Fully integrate artificial offering to provide life-of-well solutions. International market and technology leader. Involved in all market segments. New acquisitions (KUDU, Rod Lift)

General Electric: Move from equipment supplier to a solution provider focused on optimizing well production through the complete well

life cycle. New acquisitions (Lufkin, Zenith), R&D Center (Oklahoma, Calgary), Strong HPS. Not known as a technology leader, but GE has announced intention to elevate its position.

Baker Hughes: Extending ESP flow range into PCP applications creating a differentiator. Their manufacturing and sales base is mostly in the Middle East and Venezuela, but trying to gain an international

foothold.

06: Pump Performance Single Lobe PC Pump 098 HEX 1950

Primary Audience: Production engineers Well Supervisors Secondary Audience: Production engineering managers Production Superintendents Reservoir Engineers PCP and Additional Sale Opportunities: PCP can be an attractive alternative to ESP when volumes are below 500 bfpd and ESP operating cost turns high. PCPs are very competitive when fluid come with high concentrations of: Sand, Water, Viscosity, Emulsion, Gas. Mature field production with secondary and tertiary recovery rely heavily on PCPs PCPs becoming more visible in unconventional liquid/gas plays and heavy oil production.

05: Selling Strategy/Target Audience

PCP performance is described by its unique curve, as shown above for the 098HEX1950. The 098 refers to fluid rate in cubic meters at 100 rpm. The 1950 is related to lifting capacity in meters of water. H means high volume pump. E means 5 pump OD. X refers to female thread. There are different geometries and configurations: Single Lobe, Multi Lobe, Even Wall, Insert Pump, Meta / Metal. Also different elastomer compounds, Buna N, High Nitrile, Hydrogenated Nitrile, Viton, etc.

Specifications 098-HEX-1950 Single Lobe PUMP ASSEMBLY Metric Imperial Pump Pressure Rating 19500 kPa 2828 psi Pump Nominal Lift 1988 m 6522 ft Nominal Displacement per RPM 0.980 m3/d 6.164 bpd Volume at 100 RPM 98 m3/d 616.4 bpd O.D. 141.3 mm 5.6 in ROTOR Metric Imperial Rotor Length 11.2 m 36.75 ft Rotor Connection 28.580 mm 1.125 in STATOR Metric Imperial Stator Length 10.31 m 33.83 ft Stator Connection Box 139.7 mm LTC 5.5 in LTC COMPATIBILITY PUMP - ROD - TUBING Orbital Pup Joint Diameter 139.7 mm 5.5 in Orbital Pup Joint Length 1.82 m 6 ft

FOR INTERNAL USE ONLY

FOR INTERNAL USE ONLY 2015 HALLIBURTON. ALL RIGHTS RESERVED.

06: Pump Performance Single Lobe PC Pump 098 HEX 1950 (cont.)

07: Who to Contact, Where to Get More Information Gus Rojas Title: Business Development Manager Phone: 713-977-5900 E-Mail: Gus.Rojas@halliburton.com

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