Trac ID

Enabling Operational Excellence in drilling operations

Statoil- Oiltech Technology Showcase

13.11.2012

Drilling Operations Tracking System

1 Confidential 14.12.2012

www.trac-id.com

Company information

o Founded 2005

o Owned by:

Statoil Venture AS 44,4%

Local entrepreneurs

Employees

o Located in Stavanger, Norway

o Head Count 19

o Leading player on RFID technology for the oil & gas industry

Confidential 2

Stavanger

www.trac-id.com

Proven RFID technology for downhole application

- more than 10 years of successful use in operation

- ~20000 tags deployed worldwide (Statoil, Shell,Petrobras, ConocoPhillips, Weatherford)

www.trac-id.com

Well centre RFID reading system

- only commercially available system with a proven track-record

www.trac-id.com

Fully automated and correct drill string Tally

- tested to handle all drilling situations

- advanced failover algorithms to manage un-tagged equipment

www.trac-id.com

Drill string verification before entering the well

- prevents wrong or non-compliant equipment to enter the well

www.trac-id.com

Accumulation of usage data and real-time fatigue calulcation for each individual element in the string - accumulation of usage data per operation and over total lifetime of each drill string element

- visual notification when pre-configured thresholds are reached

- prevention of drill pipe failure

www.trac-id.com

Confidential 14.12.2012 8

Function Benefits

o Reduces probability of NPT and loss of equipment

o Enables condition based inspection DOTS Pro_Active

o Provides complete usage history documentation

o Allows for optimized drillstring design

o Reduces risk of drillstring failure in well

o Prevents equipment out of spec entering the well

o Allows for efficient quarantining of drillstring elements

o Prevents non-compatible equipment to enter well

o Eliminates tally errors

o Improves depth control

o Simplifies and improves tally management

o 100% drillstring inventory control and traceability

o Reduces risk in fishing operations

o Enables further automation

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DOTS Tally

DOTS Alert

Drill pipe logistics and Supply Chain tracking supported by TAM

Potential cost saving

4

6 m

ill

USD

* 2

- 4

mill

U

SD*

2 -

4 m

ill U

SD*

* Figures for the projected cost saving from installing a DOTS system on a North Sea drilling installation, in total 8 12 mill USD per year

www.trac-id.com

o Qualified technology Frame agreement with Statoil

for roll-out on NCS (ongoing)

o Mobilization and commissioning: 6 -8 weeks

o Easy installation on rig with minimum impact on drilling

operations

o No need for service personnel on board after

commissioning

o RFID tags installed on all new drill pipe in Statoil drill

pipe pool

o Retrofit tagging with proven and efficient methods

during DP Inspection

o Full back-up system on rig

o 24/7 system and engineering support

14.12.2012 Confidential 9

Enabling Operational Excellence in drilling operations

Confidential 10 14.12.2012