1. New Gas Lift Products & Technology Roger Stinson Product Manager - Gas Lift Schlumberger Artificial Lift Systems Spring 2002 Gas Lift Worksop February 5, 2002

2. Recent Gas Lift Developments • R-20H 3000 psi IPO Gas Lift Valve • WRFC-H(hydraulic) & WRFC-E (electric) Surface Controlled Flow Control • Automated Surface Gas Injection Equipment • RIPC Normally Open Gas Lift Valve • Begin Development of High Performance Gas Lift Valve (Q1-2002) • Begin Development of Single Integrated Software Package for Artificial Lift Analysis and Design based on recent Baker Jardine acquisition (Q1-2002)

3. R-20H 3000 psi IPO Gas Lift Valve • Based on current gas lift valve technology & geometry • Conducted load rate tests, flow tests, & bellows cycling tests • High load rate as compared to R-20 • Proper gas lift design considerations required to assure well will unload • Improved bellows life cycle at high valve set pressures • Currently in field test/evaluation • Interim Solution

4. Surface Controlled Subsurface Gas Lift Valves • WRFC-H -Hydraulically Controlled • Variable orifice ( 6 incremental control positions) • Considerably more costly than tradiional gas lift equipment • Primary application as a reservoir management tool • Slickline retrievable valve section • WRFC-E - Electrically Controlled • Variable orifice (infinite over entire range) • Pressure monitoring • Reservoir Management tool • Slickline retrievable valve section

5. Recent Gas Lift Developments • Automated Surface Gas Injection Control • Utilizes Camco/Merla FCV • Jordon Electronic Actuators • Remote monitoring and control capabilities • RIPC Normally Open Gas Lift Valve • Limited applications • Closes with increase in gas injection pressure • Undergoing modifications

6. Future Development- High Performance Gas Lift Valve • 5000 psi Subsurface Controlled Gas Lift Valve • Required to allow for operational flexibility • True Research and Development Project • Not constrained to current bellows technology • Not constrained to current geometry requirements • Reliability and durability will be primary design objectives • Development funded in R & E budget • Two year project • Possible basis for next generation gas lift equipment

7. Future Development- Integrated Artificial Lift Software • Single package for AL design, and analysis (PipeSim (Baker Jardine)) • Tool for evaluation and selection among artificial lift options • Seamless use of input data from evaluation and analysis to design to troubleshooting to optimization • Gas Lift Nodal Analysis Enhancements • Evaluate based on deepest point of injection with available injection pressure • Evaluate based on mandrels in place • Gas Lift Design Enhancements • Improve IPO and PPO gas lift design capabilities • Interactive design process to allow user adjustments

8. Questions & Discussion