NYSE :"LPI""|"" www.laredopetro.com- 1" 

# About*the*Speaker*

! Facili-es"Engineer"at"Laredo"Petroleum," Inc.""

! 

## Emphasis"on"development"and" engineering"water"infrastructure"and" recycle"facility"projects" ! Patent"holder"for"an"onBline"con-nuous" water"sampling"skid"for"reservoir" surveillance"and"integrity"management"" ! University"of"Tulsa"graduate"with"a" Master’s"and"Bachelor’s"in"Chemical" Engineering"NYSE :"LPI""|"" www.laredopetro.com- 2" 

# ! Explore"the"design"and"opera-onal"similari-es" between"historic" waterflooding ," steamflooding ," and"offshore"overboard"produced"water"treatment" ! Review"EOR"and"offshore"facility"case"studies"to" demonstrate"the"ease"of"operators"to"design"and" build"recycle"facili-es"by"applying"the"same" technologies" ! Review"Laredo’s"process"for"developing"water" infrastructure"and"recycle"facility" 

# Overview*NYSE :"LPI""|"" www.laredopetro.com- 3" 

# Laredo*Petroleum,*Inc.*

20+*miles* *LPI*acreage** Mitchell*

Reagan* Sterling*

Tom*Green*

Irion* Howard*

Glasscock*85+*miles* 

# ! Midland*Basin* 

# ! ~139,960*Net*Acres 1* 

# ! ~91%*Average*Working* Interest 2* 

# ! Headquarters:*Tulsa,*OK* ! Office%Loca)ons:% ! 

## Midland,*TX* ! 

## Dallas,*TX* 

# ! CEO:*Randy* Fouch

1 "As"of"6/30/2013" 2 "Working"interest"in"wells"drilled"as"of"6/30/2013"NYSE :"LPI""|"" www.laredopetro.com- 4" 

# Trivia*Game*NYSE :"LPI""|"" www.laredopetro.com- 5" 

# Steamflood *Facility*PFD*

MiYal," Arun "and" Sarkar,Ajanta ."“ An*Overview*of*Produced*Water*Treatment*for*Recycle*for*Enhanced*Oil*Recovery”.*<h_p:// www.oilasia.com/IORS/PDF/24.pdf>NYSE :"LPI""|"" www.laredopetro.com- 6" 

# Recycle*Water*Facility*PFD*

<hYp://www.desalina-on.com/wdr/48/35/mvcBevaporatorsBrecycleBoilfieldBwastes>"NYSE :"LPI""|"" www.laredopetro.com- 7" 

# Why*Recycle?*NYSE :"LPI""|"" www.laredopetro.com- 8" 

# Water*Resource*Example*
! Average*Drill*Time*(per*well):**20g25*days*
! Average*Frac*Rate*(per*well):**100*bbl/min*
! Water*Need*(per*well):**300,000* bbl
! Number*of*Wells*(per*pad):**4* ! Simultaneously*completed*


## ! Total*4*Stack*Lateral*Water*Need:**1.2*MM* bbl /pad/month* Over%14%MM% bbl /pad,%annuallyNYSE :"LPI""|"" www.laredopetro.com- 9" 

# Simplifying*the*Design...*NYSE :"LPI""|"" www.laredopetro.com- 10" 

# Waterflood *History* ! Development:""1930’s" ! 1865"in"Pennsylvania 1

# "" 

# ! Facility"Primary"Func-on:" ! Produced"Water"Reinjec-on" ! Used"as"EOR"technique" ! Reduce"Water"Disposal"Fees" ! API"Produced"Water"Survey"

1 hYp://www.npc.org/Prudent_DevelopmentBTopic_Papers/2B17_Management_of_Produced_Water_Paper.pdfNYSE :"LPI""|"" www.laredopetro.com- 11" 

# Waterflood *Facility*PFD*

Badami "Facility."“ North*Slope*of*Alaska*Facility*Sharing*Study:*Prepared*for*Division*of*Oil*&*Gas*Alaska*Department*of*Natural* Resources”.*<h_p://www.petroak.com/NorthSlope_Facility_Sharing_Study.pdf>NYSE :"LPI""|"" www.laredopetro.com- 12" 

# Steamflood *History* ! Development:"1950’s"" ! Facility"Primary"Func-on:" ! Produced"Water"Treatment" ! Used"as"EOR"Technique" ! Reduce"Water"Disposal"Fees"NYSE :"LPI""|"" www.laredopetro.com- 13" 

# Steamflood *Facility*PFD*

<hYp://petrowiki.org/PEH%3AWaterBTrea-ng_Facili-es_in_Oil_and_Gas_Opera-ons?rel=1>"NYSE :"LPI""|"" www.laredopetro.com- 14" 

# Offshore*Produced*Water*History* ! Development:"1940’s" ! By"1972:""~48"mg/L"oil"and"grease" ! By"1993:"~39"mg/L"oil"and"grease" 

# ! Facility"Primary"Func-on:" ! Condi-on"Produced"Water"for"Overboard" Discharge" ! Removal"of"solids" ! Removal"of"hydrocarbons" ! Capable"of"Produced"Water"Reinjec-on"NYSE :"LPI""|"" www.laredopetro.com- 15" 

# Offshore*Produced*Water*Facility*PFD*

hYp://www.alderleygroup.com/ThumbAsp/generate_thumb.asp?FileName=pwt%20diagram.jpg&Width=630NYSE :"LPI""|"" www.laredopetro.com- 16" Produced* Water** Reginjecmon* Facilimes* Steam* Flooding* Facilimes* Offshore* Overboard*

Produced* Water* Facilimes** Recycle* Frac*Water*

Facilimes* Separamon* Equipment* Solids* Removal* Chemical* Treatment* Bacteria* Control* Scaling* Control* 

# Facility*Similarimes*NYSE :"LPI""|"" www.laredopetro.com- 17" 

# Laredo’s*Approach*to* Minimizing*Fresh*Water* Usage*NYSE :"LPI""|"" www.laredopetro.com

# Pad"Drilling"Program" B"64"Wells"per"sec-on" 

# Corridor*Development*NYSE :"LPI""|"" www.laredopetro.com- 19" 

# 4*Stack*Pad*and*Facility*Layout*

Water" LP"Gas"

Oil" 3"Phase" FWKO" 3"Phase" Heater"Treater" LP"Gas" Oil" Water" LP"Gas" HP"Gas"for"GL"~1100"psig" LP"Fuel"Gas"~150"psig" Well" Well" Future" Well" Future" Well" Future" Well" Well" Well" Future" Well"

Metered"GL"gas" Well"Pad" LP"Fuel"Gas"to"Rig"~150"psig" Metered"GL"gas" LP"Fuel"Gas"to" "Rig"~150"psig" Well"Pad"Oil" Intermediate"Pad"NYSE :"LPI""|"" www.laredopetro.com- 20" 

# Typical*Pipeline*Corridor*NYSE :"LPI""|"" www.laredopetro.com- 21" 

## 75,000*BPD*at*Capacity* ! 34"Acres" ! 75,000"BPD"via"12”" pipeline"and"truck" unloading" ! 825"HP"pumping" capability" ! Qty."3"–"300,000"bbl" double"lined"pits"with" leak"detec-on" ! SCADA"connected" ! Water"treatment"to"slick" water"frac"standards" 

# Recycle*Plant*Treatment*Facility*NYSE :"LPI""|"" www.laredopetro.com- 22" 

# Recycle*Facility*PFD*
DeBsander" Oil"Skim"Tank" Water"Storage" Slop"Tank" LACT" Oil"Sales" Produced" Water"

SWD" Chemical" Treatment"

Filtra-on" Frac"Pits" To"Frac"NYSE :"LPI""|"" www.laredopetro.com- 23" 

### Water*Sources :* ! Flowback "water" ! Produced"Water" ! Brackish"Waters" 

# Recycle*Water*Availability*

0" 200,000" 400,000" 600,000" 800,000" 1,000,000" 1,200,000" 1,400,000"

0" 4" 8" 12" 16" 20" 24" 28" 32" 36" 40" 44" 48"BBL*of*Frac*Water*

Month* 4*Drilling*Rigs*–*4* Fracs *per*Month**

Flowback"Water"Recovery" Other"Water"Sources"NYSE :"LPI""|"" www.laredopetro.com- 24" 

# Closing*Thoughts* Laredo"is"striving"towards"the"goal"of"100%"use"of"flowback"and" produced"water"for"drilling"and"comple-ng"opera-ons." To"achieve"a"sustainable"water"supply"system"to"support" explora-on"and"produc-on"efforts,"water"resources"must"be" viewed"in"an"integrated"fashion,"including" ! Development"of"water"pipelines"in"produc-on"corridors" ! Recycle"facility"connec-vity"to"produc-on"corridors" ! Development"of"nonBpotable"water"resources"NYSE :"LPI""|"" www.laredopetro.com- 25" 

# Quesmons* 

# ? ? ?"