Performance Update 8.75" DP606X Drills Record Extended Lateral Run COG OPERATING LLC, Permian Basin, BoneSprings, Lea County, NM Q1 2015 Well Background and Challenges Drill from EOC (End Of Curve) and complete extended lateral interval in 1-bit Increase average ROP & reduce overall well time by drilling the lateral section in one, fast run Baker Hughes Solution Baker Hughes Premium Talon PDC products Cutting Efficiency - Advanced diamond technology stays sharper longer to increase ROP and durability Results The DP606X drilled the section that typically requires two to three bits to complete a similar well profile, saving the customer time by cutting out one to two trips. Record Extended Lateral Interval in Southern Lea County, New Mexico HCC's 8.75" DP606X completed COG's aggressive extended reach lateral in one bit and with record time. Subject bit drilled 9448ft with an interval ROP average of 75.1ft/hr. Total time of the interval is 125.75hrs. The bit was run on a bent PDM assembly. Saved customer money by drilling the interval at 50% the cost of competitor offsets. The closest competitor offset to this subject run and well profile is on a nearby well. This offset utilized two Ulterra 7.875” U516Ms to achieve the same interval. Utilizing the two Ulterra bits, the offset’s overall interval time was doubled to 202.2hrs. Also, a slower ROP interval average was recorded at 51.9ft/hr. www.bakerhughes.com BY ACCEPTING THIS DOCUMENT, THE RECIPIENT AGREES THAT THE DOCUMENT TOGETHER WITH ALL INFORMATION INCLUDED THEREIN IS THE CONFIDENTIAL AND PROPRIETARY PROPERTY OF BAKER HUGHES INCORPORATED AND INCLUDES VALUABLE TRADE SECRETS AND/OR PROPRIETARY INFORMATION OF BAKER HUGHES (COLLECTIVELY ''INFORMATION''). Disclaimer of Liability: This information is provided for general information purposes only and is believed to be accurate as of the date hereof; however, Baker Hughes Incorporated and its affiliates do not make any warranties or representations of any kind regarding the information and disclaim all express and implied warranties or representations to the fullest extent permissible by law, including those of merchantability, fitness for a particular purpose or use, title, non-infringement, accuracy, correctness or completeness of the information provided herein. All information is furnished ''as is'' and without any license to distribute. The user agrees to assume all liabilities related to the use of or reliance on such information. BAKER HUGHES INCORPORATED AND ITS AFFILIATES SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES FROM ANY CAUSE WHATSOEVER INCLUDING BUT NOT LIMITED TO ITS NEGLIGENCE.