GFE Controls

They are how a company interprets internal contol laws

Based on SOX, makes it a law that if a financial statement is wrong, jail time could be spent. Financial statements are to be made public every quarter

Segregation of duties - splitting up duties so more than one person is responsible

Proper authorization - a manager can only approve or expense so much before it needs to move up the food chain.

Physical safeguards (FP24) - safeguards in place so assets cannot be sold or money stolen i.e fuel cards and laptops (asset stamped on laptop)

Audits of ICQ and balance sheet - make sure they are correct and everything is being done correctly

Delegation of authority - One person can purchase it but someone else must approve it

Company cash flow since its capital is used to offer a service until its returned with ot without profit

***Flow of cash in - through - and out of company***

It was a law passed after the Enron incident, and it says that the company is liable for their financial statements and must be made public every quarter

There must be a PO, what is ordered is what I got is what I was billed for....then the PO matches up and can be sent for invoice

Over $1000 3 quotes must be submitted

Are they able to pay (credit), signed contract, do the service, and have ticket signed

• Need 3 quotes on purchases over $1000
• Enter competitve bidding on purchases bw 5K and 100K
• Supply chain organization must be involved in purchases over $100K

Its a SLB financial guide

Service, product, and reimbursable

The invoice matches what we got and what we were told

We also need to recognize cost in the period they were incurred.

(We cant make a provision for the xmas party in August just bc that was a really good month)

Cash flow, NIS, Balance sheet

Cash in- cash out

NIS is the bottom line (a snapshot of a certain time frame)

Revenue, and costs

• A company's net worth
• Assets-liabilities

Compensation, Depreciation, and M&S

4 years

2 years

10 years

5 years

• What "worth" it loses every month due to age, etc.
• in SLB all fixed asstes are depreciated

• GBV/USeful life in months
• or
• GBV-NBV

>$5K, serial number, and more than a 2 year lifespan

Apartments, printer up front

Hotel rooms for a job, hotels for SOS hands (its in relation to revenue)

Visas or if we get sued

Gloves, harhats, safety glasses, H2S class

Junking of tools

Management and so forth up to Groody

Up to Catherine

Drummond to the CEO

• Resevoir - Tex Burraco
• Petrophysicst - Peter Hook
• WI - Bob Whelty
• Acoustics
• Geoogy?

RPG, RCG, and Drilling

HSE, Quality, Supply chain, IT, Legal, Marketing

SLR, MEA, EAF, NAM, LAM, China, Shale Gas, IP

Engineering, manufacturing, and sustaining

IBT is income before taxes and its the best way to compare revenue bw districts and countries. Its % is calc by IBT/Revenue

Equipment plan update - it is forecasted for 8 quarters (CAPEX) and is a list on everything thats needed, updated every 2 quarters, and is sent way up the Food chain (Catherine) she will allocate for NAL, Groody will allocate then for the basins, and then Will allocate for his districts

Capital expenditure, good indicator on investment and growth

• How much money will we get for Fixed assets
• usually around 10% of revenue
• 8 quarters, update every 2, allocated funds

Older ur tools get, more M&S u may need to fix, new toold, and M&S goes down

DIR is days invoice and its how long it takes for as soon as job ends to the ticket being invoiced.

DSO - days sales outstanding, how long it takes to pay (Invoice, client sends back, we send back) get paid

NBV/GBV (20% is a good #) we are at 30 due to FMI-HD, Lithoscanner, ADT, etc

Too high, too much new tech, too low, might need some new tech

• GT is Revenue/GBV and should be >1
• ROA  and that we have atleast $1 revenue for every $GBV

TT - Jobs/tool/month

Age profile (NBV/GBV)

• Management by objectives - FEW and SMART
• SMART - Specific, measurable, attainable, relaistic, time bound

FEW -Focused, Eight as optimum, written down

Field tech equipment (Anything used to generate revenue)

NFTE - Non-field tech equip - Laptops, pickup trucks, etc

Return on investment - How the investment is doing

or

ROI - inventory days (according to speedia)

Business ethics policies - We are big on trust and repsect and it takes awhile to build that up with our clients - one ethical mishpa and that trust could be gone

Anticorruption - no bribes, no gifts given or received over $200

Competition law policy - no monopoly, no abuse of market share, do not withhold services

Confidentiality and Information security policy - do not give competitiros crucial info, do no leak logs to other competitors, etc

Smalled division of the organization - Each cell has a leader, and is in cahrge of them (training, maintaining equip, discipline, etc)

It can operate independantly

basic unit that performs a serviced to generate revenue

Me - Barbara-Jennifer-Will-Groody-Catheirne-Aaron Floridia-Satish-Paal

• Will support - Srikant, Jorge, David Fairhurst
• Groody - Chuck Catchings (Sales), Peter Brenner (Asset manager), Jeff Jacket (Maintainance), Satoshi (Personnel), Tom Pullick (HSE), Stephen Richmond (Quality safety)

So we have the groups heirarchy then it branches out to OFS

Ex) Brian Groody reports to Catherine (WL) and to Robert Drummond (OFS)

Shared costs is what a certain group splits cost (i.e Wills salary split bw his districts)

Direct cost is what is directly your own cost

RAMP and CAPEX

RAMP = Revenue*Activity*Marketshare*Price

Assets-Liabilities = Equity

The ability to have the cash to keep going

is good when NI is up, DSO under control, fixed assets at optimum, inventory as low as possible

Pain and gain at same time

i.e We lost a tool in hole - we accrued that money but first we have to pay for it

or we make provisions for tax that we accrue for the year

Money owed to us by clients

DSO

Oxy, Energen, Pioneer, BHP, Apache

Oxy, Energen, Pioneer, Apache, COG

Shell, Oxy, Chevron, Energen, Pioneer

OXY - Mark jones is sales, and in dallas

Drilling and geo report ro resevoir group

• 13.2% Gross market share (Includes wells not logged)
• 28.2% net market share

• SW Basin Gross - 12.3% and Net - 29.7%
• NAL Gross - 14.3% and Net - 31.3%

Weatherford, Halliburton, Baker Hughes, Allied, Cased hole services,

Unique business value - its like if it werent for SLB's quality service and for a certain tool, then their company wouldnt be where it was at today

Anaylsis of competition - gives competitive advantage, but can also can hurt us in that we might not have what market favors

Competitors service assesment matrix - assesment of competitors technology, strengths and weaknesses

Certain deals we can give clients - i.e if they log 20 wells with us 5% discount....

Customer relationship manager - manages customer accounts, sales, relationships, etc

TAS - Target account selling - a sales plan for achieving success - business profile, opportunities, competitor analysis

HRLA parting, cable parting during fishing, and TLD unrecoverable data

3

less than 10K, and less than 4 hours

• 10K-100K
• 4hrs-24hrs
• multiple lights
• truck replacement

• 100K to 1 Mil
• 24-48hrs LT
• Multiple serious
• loss of primary data

• NPT rate, JBI, CMS, Runs/misruns, closures on all reports
• DFP/DFR - ours is approx 4.6%
• Crosscheck - 9.1

• Field equipment cell
• Cable
• Maintainence Efficiency
• Electronics
• Others
• Sonde
• Well head equip

• They are tadpoles telling you direction of a dip
• The head part is magnitude and the tail part is downdip direction

• To see where layers are going
• To Drill up dip
• Find the trends

It could cause to get wrong angles on dip

• Cluster every 100 ft on dip log
• 4x1 is less filtered - general structure
• 12x2 more filtered better overall pic

The strike would intersect all the faults its opposite of a fault

Looking at very small intervals (0.5 ft) and if you want to produce a river and therefore log several FMI wells and pick pts

We have high res. and high salinity wells, the other FMI easier to get saturated

FMI and UBI

Always run SS as well

Source, trap, resevoir, migration path, seal, T,P, and Time

• Trap - Structural and sedimentary
• Seal - Rock, no perm, cant pass through

Fold comes from ripping the rock apart, and fold comes from compression overtime

Carbonate is very well sorted, and claustic has decreased perm due to poorly sorted

• Carbonate - Reef
• Claustic - River fishing

Percipitation buildup and then dissolution

SS is characterized, more trans, more receivers, chirp freq, can measure all freq at once

Arenite

Parameters that can be change din ECS related to feldspars

Throium/Uranium

15

High poro, low res - carbonates and sands are water wet before they come into contact with crude oil

High poro, high res, clean

Pore size distribution

Lg pore size is better than small

Find a clean zone on log and get Rt from there Rw = Rt. Then go back to zone of interest and find Rt and use the previous Rt for Rw. Cross plot porosity

Wet clay porosity

Swb= Poro(Wb)/Poro(Total)

• This derivation of the Dual Water equations is valid for any rock with any mixture of fluids
• It is possible to use the Dual Water Model to make a manual computation of a shaly zone.
• However computer programs are best equipped to handle the calculations.

• Sw that is in free fluids
• Swf = poro (free water)/poro(effective)

• Calc Rwf from RWA (Rwf = Rwa)
• Calc Rwb from nearby shale using Rwa method
• Get poro of cross plot
• Determine Vs from Gr
• Compute Swb from Vshale and WCLP
• Calc Swt and Swf

• Mechanical property - how fat will a marshmellow get if u squish it
• Stress on a rock --> fractures

• Times are different in slow and fast shear
• Left to right is different form north to south

• Directionally dependant (not the same)
• Same in all directions

• Homo Iso - Natural Rock
• Homo Aniso - Fractures parallel
• Inhomo Iso - damaged BH
• Inhomo Aniso - Crossover stress induced

Bc its direction of max/min stress and stonely waves can due to flowing up the BH (vertical wave)

False, only SS can correct for it

• Illite and chlorite
• Dolomite and calcite

need it to do mechanical properties bc static young modulus gives pressure needed to make fracture compress but wont grow back

Interacts with water molecule only

8 of them and each a diff pore size

If effective poro is >8% then maybe

ELAN density due to kerogen

When heavier minerals are there like Chlorine

Its like a crayone at the Igneous model and then more u use it the more i breaks down (Sedimentary), then melts down into ME rock, and back to IG

• RES just takes into account poto
• Pay is perm, % HC, poro