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*Acres1*

! ~91%*Average*Working*

Interest2*

! 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,%annually
NYSE:"LPI""|""www.laredopetro.com- 9"

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

Waterflood*History*

! Development:""1930’s"

! 1865"in"Pennsylvania1""

! 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.pdf
NYSE:"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=630
NYSE:"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.comPad"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" Well"Pad" "Rig"~150"psig"

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- 2

Recycle*Facility*PFD*

DeBsander" Oil"Skim"Tank" Water"Storage"

Slop"Tank" LACT"

Oil"Sales"

Produced"

Water"

SWD"

Chemical"

Treatment"

Filtra-on"

To"Frac" Frac"Pits"
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*

???"