Core Laboratories Inc. · NYSE:CLB
Core Laboratories — Investor Presentation (March 2006)
28 slides from Core Laboratories's investor presentation, March 2006
Slide 1: Core Lab Reservoir Optimization
Core Lab RESERVOIR OPTIMIZATION
Slide 2: Three principal business lines
Slide 2 Three principal business lines: 1. Reservoir Description 2. Production Enhancement 3. Reservoir Management 2
Slide 3: Presentation Walk-away Points
Slide 3 Presentation Walk-away Points: 1. How a Reservoir Actually Works 2. The Decline Curve Will Always Win 3. Core’s Differentiating Technologies 3
Slide 4: Services and products focus on maximizing production rates and ultimate reserves
Slide 4 Our services and products focus on maximizing production rates and ultimate reserves to maximize our clients’ return on their investments. . 4
Slide 5: Core Lab targets stable production and production enhancement budgets
Slide 5 Core Lab targets the more stable, less volatile, production and production enhancement component of the oil companies’ budget. 5
Slide 6: Primary Business Drivers
Slide 6 Primary Business Drivers 1. Reservoir Description: International & Oil Focus 2. Production Enhancement: North America & Natural Gas Focus 3. Reservoir Management: Global Focus 6
Slide 7: Life of a Reservoir
Slide 7 Life of a Reservoir Expanded View of the Reservoir – Note that the sand grains are coated with a thin layer of water – called a “water wet” reservoir. The oil flows over that thin layer of water, and in this condition, preferentially wants to produce hydrocarbons. 7
Slide 8: Life of a Reservoir
Slide 8 Life of a Reservoir Initial production phase – in many cases, oil moves to the well bore due to expansion of the gas cap from above the oil zone along with a water drive mechanism from below. 8
Slide 9: Life of a Reservoir
Slide 9 Life of a Reservoir Early production phase – The gas cap expands while the encroaching water provides additional drive during this phase creating optimum natural flow rates. The GOR – gas-to-oil ratio – begins to increase in this phase. 9
Slide 10: Life of a Reservoir
Slide 10 Life of a Reservoir Aging reservoir phase – The oil zone is becoming depleted through production. The gas cap has expanded almost to its fullest extent while water has encroached into the production flows. The gas-to-oil ratio is at its highest. 10
Slide 11: Life of a Reservoir
Slide 11 Life of a Reservoir Abandonment phase – virtually no further oil production and limited gas production. Note that the sand grains are now coated with a thin layer of oil – called an “oil wet” reservoir. Now the tendency of the reservoir is to flow increasing amounts of water over the oil co
Slide 12: The Decline Curve
Slide 12 The Decline Curve Every field has a decline curve – Production is greatest on initial flow and as pressure in the field decreases, production begins to decline. Expected decline curves can be developed to assist the operator in planning how best to utilize technologies that are designed to
Slide 13: The Decline Curve
Slide 13 The Decline Curve As fields age, production rates of oil and natural gas decline – but oftentimes in conjunction with ever increasing volumes of water. If improperly produced, this increasing water production begins replacing the production of hydrocarbons – over time the field will begin p
Slide 14: The Decline Curve
Slide 14 The Decline Curve Core Lab provides services through its three operating segments at points all along the decline curve: ¾ Reservoir Description ¾ Production Enhancement ¾ Reservoir Management 14
Slide 15: Reservoir Description
Slide 15 Reservoir Description Our first business unit – Reservoir Description – analyzes actual reservoir rocks and fluids to provide data sets that accurately characterize the reservoir. These precise measurements create the “base truth” from which to build the field’s reservoir optimization model
Slide 16: Leaders in rock property analysis from the traditional perspective to …
Slide 16 Leaders in rock property analysis from the traditional perspective to … 16
Slide 17: … the most advanced.
Slide 17 … the most advanced. 17
Slide 18: Analyses of reservoir fluid properties gaining importance
Slide 18 Analyses of reservoir fluid properties gaining importance as the fluids (e.g. – oil and gas) are indeed the economic driver in the reservoir. 18
Slide 19: Production Enhancement
Slide 19 Production Enhancement Our next business unit – Production Enhancement – provides products and services designed to minimize formation damage and maximize production flow rates. The Goal - optimizing reservoir value. Following is a case study of the application of our services and products
Slide 20: Production Enhancement
Slide 20 Production Enhancement High Efficiency Reservoir Optimization charges and gun systems – our new line called HEROTM. These products are designed to minimize damage to the formation while providing maximum penetration into the producing zone. 20
Slide 21: Production Enhancement
Slide 21 Production Enhancement The HEROTM charge is designed to create Effective Communication with the producing zone by creating a flow channel well beyond any damaged zone in the near well-bore environment. 21
Slide 22: Reservoir Management
Slide 22 Reservoir Management Our third unit – Reservoir Management – focuses on leveraging the knowledge gained from the data sets we created in our Reservoir Description unit along with our Production Enhancement projects to solve reservoir-wide issues which a client may have. Our integrated appro
Slide 23: Reservoir Management
Slide 23 Reservoir Management Maximizing production and recoverables oftentimes can be increased by designing and implementing a field flood. Effective field floods can be done using water as the flooding agent, or even by using carbon dioxide or nitrogen. Under laboratory conditions, simulating res
Slide 24: Reservoir Management
Slide 24 Reservoir Management After a field flood is designed, we can monitor the progress of the flood and analyze the results through our inter-well diagnostics. 24
Slide 25: Reservoir Management
Slide 25 Reservoir Management Based on the results of our inter-well analysis, we can make recommendations on how to improve the results of the flood. Recommendations designed to increase incremental production can range from changing the flooding agent, the rate of injection of those agents, the lo
Slide 26: Operating margins have continued to expand
Slide 26 Our operating margins have continued to expand as we have been able to develop new technologies - which we then strive to offer our clients throughout our existing international platform. These three growth strategies have been essential ingredients to our improving performance. 26
Slide 27: Global distribution system; offices in countries
Slide 27 Global distribution system; 70 offices in 50 countries. 27
Slide 28: Core Lab Reservoir Optimization
Core Lab RESERVOIR OPTIMIZATION This presentation may include forward-looking statements which should be reviewed in conjunction with important cautionary factors contained in our 2004 10-K and other security filings. 28
Core Laboratories — Investor Presentation (March 2006) on 6ix