SPE Presentation via Web 06 May 2019 SPE

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Remarks on Petroleum Engineering — Past, Present, and Future Tom BLASINGAME Petroleum Engineering Texas A&M University College Station, TX 77843 -3116 (USA) SPE GCS Reservoir Study Group +1. 979. 845. 2292 — t-blasingame@tamu. edu 2017 Reservoir Technology Forum T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 1

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Brief Biography — Tom Blasingame ● Who am I? ■ Professor, Texas A&M U. ■ B. S. , M. S. , & Ph. D. from Texas A&M U. ● Counts: (May 2019) ■ 14 Ph. D. Graduates ■ 67 M. S. (thesis)/34 M. Eng. (report) Graduates ■ Over 160 Technical Articles [2012] [2019] (visa photo) ● Historical Technical Contributions: ■ (1990's) Material Balance DCA ("Rate Transient Analysis" (or RTA)) ■ (1990's) Analysis of Water-Oil-Ratio (WOR) Behavior ■ (1990's) Direct Estimation of pavg from Pressure Buildup Tests ■ (2000's) Pressure Integral and "Beta" Derivative ■ (2010's) Diagnostic Analysis of Time-Rate Data (i. e. , the q. Db-plot) ■ (career) Correlations for Rock and Fluid Properties ■ (career) Deconvolution Methods (approximate, direct, and numerical) ● Research Interests: (2019) ■ Time-Rate Analysis (Models & Diagnostics) ■ Early-Time "Flowback" Analysis/Interpretation ■ Interpretation/Analysis of Time-Rate-Pressure Performance ■ Parametric/Non-Parametric Correlation of Well Performance Data ■ Numerical Analysis/Interpretation Techniques for Data T. Blasingame (Texas A&M) | t-blasingame@tamu. edu [self image] [how others see me] [the [led to PTA and RT [e [rg & mg are [unconve [var Slide — 2

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Remarks on Petroleum Engineering — Past, Present, and Future The Past. . . Tom BLASINGAME Petroleum Engineering Texas A&M University College Station, TX 77843 -3116 (USA) SPE GCS Reservoir Study Group +1. 979. 845. 2292 — t-blasingame@tamu. edu 2017 Reservoir Technology Forum T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 3

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter 1972 -2018 1957 -1968 Discussion: ● (1957 -1968) First spike (post World War II U. S. oil boom). ● (1972 -2018) Note that the enrollment spike has happened before. ● (1952 -2018) Enrollments mimic oil price, but are lagged 4 years. T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 4

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Discussion: ● (1997) Lack of young talent coming in. . . ● (2008) Good influx of young talent, retaining senior talent. ● (2018) Significant loss of senior talent, loss will continue. T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 5

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Discussion: 2001 SPE Forum Summary ● Perception was that non-engineers and non-petroleum engineers would be the norm. ● Expectations of high pay and heavy emphasis of training and feedback. ● Young talent will accept job flexibility in lieu of job security, but insist on a work-life balance. T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 6

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter What a Difference 10 Years Makes: ● 2008 ■ Professional Members: 66, 084 ■ Student Members: 22, 455 ■ Student Chapters: ≈200 ■ U. S. PETE Faculty: ≈100 -150 ● 2018 ■ Professional Members: ■ Student Chapters: ■ U. S. PETE Faculty: 84, 100 72, 009 382 ≈300 [old membership report] [my guess] [www. spe. org] [available data] Discussion: ● Transition of student members to professional status is an issue outside of North America. ● Significant increase in student chapters implies significant growth in young talent/interest. ● Bottom-line — young talent numbers are increasing, senior talent is decreasing. T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 7

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Remarks on Petroleum Engineering — Past, Present, and Future The Present. . . Tom BLASINGAME Petroleum Engineering Texas A&M University College Station, TX 77843 -3116 (USA) SPE GCS Reservoir Study Group +1. 979. 845. 2292 — t-blasingame@tamu. edu 2017 Reservoir Technology Forum T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 8

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Technical Knowledge: ●Skills that Define a Petroleum Engineer: ■ General Knowledge/Skills (Math, Engineering Science, etc. ) ■ Oil and Gas Drilling Systems ■ Production Engineering and Operations ■ Reservoir Fluids ■ Petrophysics, Formation Evaluation, and Geology ■ Reservoir and Well Performance ■ Petroleum Project Evaluation (Reserves and Economics) ■ Integrated/Multidisciplinary Teams ●Emerging Needs that Need to be Emphasized: ■ Unconventional Reservoir Technologies ■ Statistics/Data Manipulation (i. e. , "Data Analytics") ■ Facilities ■ HSE (including the so-called "Sustainability" aspects) ●Standardization: ■ Traditional Areas: U. S. /Western Europe ■ Emerging Areas: FSU/Africa/S. E. Asia/Middle East ■ COMPANIES need to help us to establish standards. T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 9

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter SPE Technical Knowledge Matrix: (2011) ●Motivation: ■ Technical Knowledge Matrix (SPE Talent Council 2009 -2011). ■ Provides a broad inventory of Petroleum Engineering skills. ■ Document serves as a guidance/reference document. ●Method: ■ Used a blind survey for "required, " "valued, " or "not required" assessment. ■ SPE staff coalesced the results into a comprehensive report. ■ SPE published the results in the September 2011 edition of the JPT (p. 94). ■ (https: //www. spe. org/training/docs/graduating_matrix. pdf) ●Results: ■ Mathematics & problem-solving viewed as critical. (90 -98% of reviewers) ■ Communications skills viewed as essential. (>75% of reviewers) ■ Basic petroleum engineering skills viewed as critical. (60 -90% of reviewers) ■ Drilling skills seen as essential. (65 -75% of reviewers) ■ Well completions skills viewed as essential. (>75% of reviewers) ■ Basic rock properties seen as important. (55 -85% of reviewers) ■ Well logging skills seen as relevant. (52 -66% of reviewers) ■ Well performance skills seen as important. (66 -85% of reviewers) ■ Production operations skills seen as important. (69 -77% of reviewers) ■ Cash flow/economics seen as essential. (76 -86% of reviewers) ■ Petroleum reserves seen as important. (62 -66% of reviewers) T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 10

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter SPE Strategic Plan: (2018) ●Mission: To collect, disseminate, and exchange technical knowledge concerning the exploration, development and production of oil and gas resources, and related technologies for the public benefit; and to provide opportunities for professionals to enhance their technical and professional competence. ●Core Values: ■ Technical excellence ■ Thinking globally (One. SPE — Philosophical Principles) ■ Providing value to members ■ Volunteerism ■ Stewardship for the long-term ●Strategic Priorities: ■ Life-long Learning: SPE provides a robust selection of cross-disciplinary, ■ ■ ■ life-long learning opportunities that are well respected and sought after by oil and gas industry technical professionals) Knowledge Transfer: SPE content and community are seamlessly accessible online. Membership: SPE membership and engagement is valued by oil and gas industry professionals from diverse technical specialties. Professional Pride: SPE members understand are inspired by our industry's contributions to society and represent the industry positively to the public. T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 11

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Remarks on Petroleum Engineering — Past, Present, and Future The Future. . . Tom BLASINGAME Petroleum Engineering Texas A&M University College Station, TX 77843 -3116 (USA) SPE GCS Reservoir Study Group +1. 979. 845. 2292 — t-blasingame@tamu. edu 2017 Reservoir Technology Forum T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 12

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter It's About YOU: ●Your Education… ■ Is being an engineer what you are best at? (. . . maybe? ) ■ What more do I need to know? (. . . we all evolve) ●Your Future… ■ Short Term… (. . . right now!) ■ Near-Term… (. . . a year or so from now) ■ Long-Term… (. . . when you start losing your hair) ■ The End… (. . . what have you really accomplished? ) ●Short/Near-Term… ■ Your value is your skills set… (. . . harsh, but true) ■ Concrete goals… (. . . experience, exposure, excitement!) ■ Your limitation is your inexperience… (. . . listen/learn/lead) ●Long-Term… ■ 70% of young engineers want management. . . (. . . 3% get it) ■ Are you fit for command… (. . . yes … no … maybe? ) ■ Are you NOT fit for command… (. . . then adapt) Lead me, follow me, or get out of my way. — George S. Patton, American General (1895 -1945) T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 13

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Where are You Now? : ●Starting Your Career… ■ Choices? (… there are no "wrong" choices) ■ Commitments? (. . . you are only as good as your word) ●Your Roles… ■ On the job? (. . . your job is to LEARN to do your job) ■ Off the job? (. . . have a hobby, but be a role model) ■ "It's not the job I wanted…" (. . . then change jobs) ■ "It's not the job they promised…" (. . . then adapt) ●Points to Consider. . . ■ Activities ≠ Productivity (. . . success = tasks completed!) ■ Achieve what you plan… (. . . failure to plan = plan to fail!) ●STEP: (Strategy-Tactics-Execution-Perspective) ■ STRATEGY (. . . planning — be complete) ■ TACTICS (. . . tasks — be concise) ■ EXECUTION (. . . action — focus on achieving results) ■ PERSPECTIVE (. . . review — feedback is essential) The reason a lot of people do not recognize opportunity is because it usually goes around wearing overalls looking like hard work. — Thomas A. Edison, American Inventor (1847 -1931) T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 14

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter The Difference Between Good and Great: ●Good. . . ■ Good MANAGERS do things right… (… your strengths) ■ Good LEADERS do the right things… (… your values) ●Great. . . ■ Great achievements = desire to succeed. . . (… fact of life) ■ Great achievers make great sacrifices… (… e. g. , family) ●Ambition. . . ■ Ambition is fine, but know your limitations (… trust me) ●Learn How to Work. . . ■ You are paid to complete tasks… (… don't waste time) ■ You are paid to make decisions… (… don't be afraid) ■ You will make mistakes… (… never put others at risk) ■ You will get your hand slapped… (… it happens) ■ You are only as good as your last time at bat… (… sorry) ■ You are no longer in school…(… you are not being "graded") ■ You work with incomplete data… (… analyze, don't guess) The enemy of art is the absence of limitations. — Orson Welles, American Actor (1915 -1985) T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 15

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Life Balance/Life Choices/etc. : ●Life Balance. . . ■ Family must come first in your career… (… trust me) ■ You get vacation, take it… (… trust me) ■ Always ask your family… (… they will tell you the truth) ●Life Choices. . . ■ You can achieve anything, not everything… (… sorry) ■ You have the strength to change, use it… (… trust me) ■ You can manage misery, you can’t eliminate it… (… reality) ●Knowing Who You Are. . . ■ People rarely change… (… know who you are) ●Knowing What You DO Want. . . ■ Be prepared to sacrifice for what you want… (… sorry) ■ Goals change… (… money… kids… golf… boat. . . ) ●Knowing What You DON'T Want. . . ■ Keep your "idiots quotient" low… (. . . you can thank me later) ■ The only evidence of life is growth … (. . . don't stagnate) No one would have crossed the ocean if he could have gotten off the ship in the storm. — Charles Kettering, American Inventor (1876 -1958) T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 16

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Remarks on Petroleum Engineering — Past, Present, and Future End of Presentation Tom BLASINGAME Petroleum Engineering Texas A&M University College Station, TX 77843 -3116 (USA) SPE GCS Reservoir Study Group +1. 979. 845. 2292 — t-blasingame@tamu. edu 2017 Reservoir Technology Forum T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 17

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Remarks on Petroleum Engineering — Past, Present, and Future Personal Perspectives Tom BLASINGAME Petroleum Engineering Texas A&M University College Station, TX 77843 -3116 (USA) SPE GCS Reservoir Study Group +1. 979. 845. 2292 — t-blasingame@tamu. edu 2017 Reservoir Technology Forum T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 18

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Personal Mementos — Tom Blasingame Napkin Art (drawn on recent flights) Marriage Counseling (New Zealand) My Other Job (as a Potato Picker (NZ)) My Proudest Professional Achievement T. Blasingame (Texas A&M) | t-blasingame@tamu. edu December in College Station Family in "Hobbiton" My Favorite Place/My Best Friends View from Our NZ Home Slide — 19

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Professional Biography — Tom Blasingame ● Tom Blasingame is a Professor and is the holder of the Robert L. Whiting Professorship in the Department of Petroleum Engineering at Texas A&M University in College Station Texas. He holds B. S. , M. S. , and Ph. D. degrees from Texas A&M University — all in Petroleum Engineering. In teaching and research activities Blasingame focuses on petrophysics, reservoir engineering, analysis/interpretation of well performance, unconventional resources, and technical mathematics. ● Blasingame's research efforts deal with topics in applied reservoir engineering, reservoir modeling, and production engineering. Blasingame has made numerous contributions to the petroleum literature in well test analysis, analysis of production data, reservoir management, evaluation of low/ultra-low permeability reservoirs, and general reservoir engineering (e. g. , hydrocarbon phase behavior, natural gas engineering, inflow performance relations, material balance methods, and field studies). To date (May 2019), Blasingame has graduated 67 M. S. (thesis), 34 M. Eng. (report, non-thesis), and 14 Ph. D. students, and he has performed several major field studies involving geology, petrophysics, and engineering tasks. ● Blasingame is a member of the Society of Petroleum Engineers (SPE), the Society for Exploration Geophysicists (SEG) and the American Association of Petroleum Geologists (AAPG). Blasingame is a Distinguished Member of the Society of Petroleum Engineers (2000) and he is a recipient of the SPE Distinguished Service Award (2005), the SPE Uren Award (for technology contributions before age 45) (2006), the SPE Lucas Medal (SPE's preeminent technical award) (2012), the SPE De. Golyer Distinguished Service Medal (2013), the SPE Distinguished Achievement Award for Petroleum Engineering Faculty (2014), and SPE Honorary Membership (2015). Blasingame has served as an SPE Distinguished Lecturer (2005 -2006) and was the SPE Technical Director for Reservoir (2015 -2018). Blasingame has prepared approximately 160 technical articles; and he has chaired numerous technical committees and technical meetings. Blasingame also served as Assistant Department Head (Graduate Programs) for the Department of Petroleum Engineering at Texas A&M from 1997 to 2003, and Blasingame has been recognized with several teaching and service awards from Texas A&M University. T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 20

SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Current Students — Tom Blasingame ● M. S. Projects: (start-up/active/closure) ■ Anatraksakul ■ Anno ■ Bryan ■ Chingulprasan ■ Fonseca ■ Fulford ■ Gorditsa ■ Jin ■ Nguyen ■ Pradhan Transformational Decomposition Model for MF Horizontal Wells Project TBD Mechanistic Model Validation for DCA in Uncon. Reservoirs Laplace Transform Data Methods Non-Parametric Correlation of Well Performance Data Deconvolution using Bayesian Graphical Models Mechanistic Model Validation for DCA in Unconventional Reservoirs Rate Transient Analysis in Unconventional Tight-Oil Reservoirs Pressure Transient Analysis in Shales Well Spacing Optimization using Production & Pressure Data ● Ph. D. Projects: (start-up/active/closure) ■ Garcia ■ Kou ■ Moridis ■ Perez-Valdez Mechanistic Behavior for GOR in Unconventional Reservoirs Dynamic Modeling of Proppant Transport in Fractures Reserves, A&D, and Assessment of Unconventional Reservoirs Fractured Horizontal Wells in Fractal Reservoirs ● M. Eng. Students: (those actively engaged and/or working on projects) ■ Newberry ■ Pinmentel ■ White Regional Evaluation of Delaware Basin (Wolfcamp) Extraction of Elemental Lithium from Produced Waters Completion Aspects of Well Performance (Delaware Basin) T. Blasingame (Texas A&M) | t-blasingame@tamu. edu Slide — 21