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Three principal business lines: 1. Reservoir Description 2. Production Enhancement 3. Reservoir Management

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Presentation Walk-away Points: 1. How a Reservoir Actually Works 2. The Decline Curve Will Always Win 3. Cores Differentiating Technologies

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Our services and products focus on maximizing production rates and ultimate reserves to maximize our clients return on their investments. .

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Core Lab targets the more stable, less volatile, production and production enhancement component of the oil companies budget.

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Primary Business Drivers 1. Reservoir Description:

International & Oil Focus

2. Production Enhancement:
North America & Natural Gas Focus

3. Reservoir Management:
Global Focus

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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.

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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.

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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.

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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.

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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 coated sand grains leading to the ultimate demise of the field.

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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 increase the initial production rates as well as to lift and/or flatten the curve the purpose maximize cumulative production under the curve.

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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 producing nothing but water. Produced water has no economic value to the operator and must be dealt with in an environmentally-friendly manner by the operator all at a cost.

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The Decline Curve

Core Lab provides services through its three operating segments at points all along the decline curve: Reservoir Description Production Enhancement Reservoir Management

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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 fields reservoir optimization model. These measurements are invaluable in order to determine probable versus proven reserves in-place.

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Leaders in rock property analysis from the traditional perspective to

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the most advanced.

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Analyses of reservoir fluid properties gaining importance as the fluids (e.g. oil and gas) are indeed the economic driver in the reservoir.

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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 aimed at enhancing production Our new line of HEROTM charges and gun systems.

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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.

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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.

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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 approach is designed to help clients solve wide ranging production problems they may be incurring.

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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 reservoir temperatures and pressures, we can design optimum field floods.

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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.

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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 location of the injector wells, or perhaps, the location of new producing wells. In this example, previously undetectable faults were found to be stopping the flood from making a complete sweep through the field. Recommendations were made to change the location of several injector wells to enhance recoverables.

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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.

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Global distribution system; 70 offices in 50 countries.

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