Safety, Mobility, and Power Density: The Case for a 2-Rig Strategy

1. Safety, Mobility, and Power Density
The Case for a 2-Rig Strategy
DUG Permian-Fort Worth, TX USA
Mike Dynan, VP Portfolio and Strategy
April 4, 2017

2. 2
Precision,
Control &
Safety
We are Rig
Builders
SMALL is
Big
ConclusionIntroduction
2 Rig
Strategy
Savings
The Slow Road
Back: Oil & Gas
Industry Outlook for
2017…
Wall Street Keeps
Faith in Oil
Recovery
The Region
Leading the US Oil
Recovery: Permian
Basin Proving
Resilient…
We all have seen the headlines

3. However, costs remain top concern…
The question Schramm always gets: How does your equipment
deliver better value in today’s continued challenging environment?
– It is not just new technology, it is the application of that
technology
– Think different, think disruptive, drive out waste from every
aspect of operations
3
Precision,
Control, &
Safety
We are Rig
Builders
SMALL is
Big
ConclusionIntroduction
2 Rig
Strategy
Savings
Cost Reductions help
US Shale Industry Pass
First Real Test
Technology Remains
Essential Growth Driver for
Shale Plays

4. Founded in 1900, HQ in West Chester, Pennsylvania
• Markets served: Mining, Water Development and Energy
• Over 2000 drilling rigs delivered and commissioned
• Equipment operating in 50+ countries
• Core competencies…We are machine builders
• Control Systems, Hydraulics, Structures
4
Precision,
Control &
Safety
We are Rig
Builders
SMALL
is Big
ConclusionIntroduction
2 Rig
Strategy
Savings

5. Above the ground…SMALL leads to big savings
– Mobility: over the road loads & maneuverable
– Ease of setup: no cranes; one shift
– Walking systems: ideal for pad drilling
Below the ground… Drilling in cycle time sweet spot = reduced cost for total wellbore delivery
– Traditional: Horsepower vs. Applied Technology: Power Density
• Speed in the right places; performance without comprising the wellbore
5
Precision,
Control &
Safety
We are Rig
Builders
SMALL
is Big
ConclusionIntroduction
2 Rig
Strategy
Savings

6. • Power density and light weight hydraulics in the next generation of rigs…
– Digital control over mechanical devices using Schramm’s custom code
– Real time data feedback: Parameter driven functions for each wellbore
• Torque, speed, position, load handling…
• Transcending the “feel” of drilling with real time data
• Intermediate section capability
• Schramm designs have made rig operations safer…
– “The Loadsafe product takes human error out of the pipe handling process. Less workers
wrangling pipe equals fewer opportunities for injury”…Rowdy Bragg, Liberty Safety Consultants
6
Precision,
Control &
Safety
We are Rig
Builders
SMALL is
Big
ConclusionIntroduction
2 Rig
Strategy
Savings
After 2 years accident free, a
Schramm operator received a
significant insurance reduction!

7. 7
• Application of the Fit for Purpose Rig Strategy
• Different sections of well bore development
can utilize different equipment
• Proven in multiple basins
Case 1: Appalachia
Case 2: Bakken
Case 3: Permian
• Bottom Line Savings…
• Day rate spread between a Schramm and
a Tier 1 Conventional Rig
• Concurrent operation of Schramm rig &
setup of conventional allows drilling to start
sooner…
• Reduced number of drilling days (speed) to
complete surface & intermediate sections
Precision,
Control &
Safety
We are Rig
Builders
SMALL is
Big
ConclusionIntroduction
2 Rig
Strategy
Savings

8. • Excelling in a new commodity price environment requires cost savings and productivity
which come down to the Safety, Speed and Simplicity of a 2 Rig Strategy:
– Smaller crews
– Hands free pipe handling
– Power density providing similar results as complex AC electric systems
– Fit for purpose rig selection
• With over 117 years of experience, Schramm continues to innovate
8
Precision
and Control
We are Rig
Builders
SMALL is
Big
ConclusionIntroduction
Connectivity
and Safety

9. Thank you for your time!
Please visit us today in booth 412