2. Supply Chain and Procurement, John Cramer, Superior Well Services

Utica Shale Oil and Gas Business Development Seminar Supply Chain and Procurement April 11, 2012

Who are we?

SWS is a oil & gas well services company ď ľ Providing technical pumping and downhole surveying services to the industry since 1997 ď ľ Offering Cementing, Stimulation, Nitrogen, Wireline, Pipeline and Coiled Tubing services from more than 20 service centers in 16 states. ď ľ Actively developing innovative, award winning and patent pending Chemicals and Procedures

2

Geographic Footprint

3

SWS in the Marcellus and Utica

Superior’s backyard • Extensive Appalachia footprint • Expanding from 2 large crews at the beginning of 2011 to 5 large crews in 2012 • Long history of working with Vendors when servicing conventional wells • Multiple established product lines

4

GammaFRac System

5

SWS Purchasing Structure  Vehicle Maintenance Items  

Typically the service centers Head of Maintenance requests any needed tools, parts needed to repair and or service our equipment.

Also requests and oversees service work preformed by outside vendors rather than by SWS mechanics.

 Electronic Maintenance Items 

Electronics Techs request parts and supplies needed for maintaining sensitive electronic equipment.

 Service Centers Materials Managers  

Requests materials needed to perform the service work offered by the crews operating from that yard.

Generally handles other orders for Facility Operation & Maintenance.

 Operations ( Operations Manager, Department Heads )  

Generally request other needed parts, tools & equipment or services not handled by the Materials or Maintenance Departments.

Are the first step in approval of all purchases made for their service center.

 Requests 

Any SWS employee may make a request for a needed item or service

6

New Vendor Forms Sample of the required forms to be completed and available at the Service Center you are interested in doing business with

7

Stimulation Key Items

8

Cementing Key Items

9

Sand & Ceramics Vendors

10

Cement & Flyash Vendors

11

HCL Acid Vendors

12

Chemical Vendors

13

Equipment & Flow Control Vendors

14

Electronics & Parts Vendors

15

Maintenance & Parts Vendors

16

Fuel & Oil Vendors

17

Trucking Vendors

18

Safety Vendors

19

Lab Services & Supplies Vendors

20

Material Handling & Parts Vendors

21

Oilfield Supply Vendors

22

Nitrogen Vendors

23

Looking for vendors like you !  Quality Products?  Innovative Design?  Unmatched Service? Find additional information regarding Superior Well Services and Service Location information at our website www.swsi.com

24

Just a few random products and services we use PRODUCTS ABSORBENT BOOMS AND PADS CALCIUM CHLORIDE DRINKS ELECTRONIC GADGETS FIRE EXTINGUISHERS FUELS GLOVES GREASE HAND TOOLS HIGH PRESSURE PIPING AND FITTINGS HYDRAULIC HOSES ICE LUBRICANTS OFFICE SUPPLIES RAGS SAFETY SUPPLIES SALT SUGAR TRAVEL RELATED GOODS VALVES

SERVICES CAR WASHES CATERING ENTERTAINMENT FIRE RESISTANT CLOTHING HOT SHOT DELIVERY SERVICES HOTELS ON SITE FUELING PORTABLE LIGHTING PORTABLE TOILETS RENTAL EQUIPMENT RENTAL PROPERTIES RESTURANTS SECURITY SERVICES TRAFFIC CONTROL SERVICES VEHICLE REPAIRS AND MAINTENANCE VEHICLES WATER SAMPLING WATER TESTING WORK CLOTHING WORK FOOTWEAR 25

Thank You Questions?

26