Merrick Systems Inc' Drilling Products

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Rapid Component Identification System
Merrick Systems Inc. Drilling Products
Covered by one or more of the following U.S.
patent Nos 5,142,128 5,360,967 6,347,292
6,480,811 and 6,604,063. (Additional patents
pending)
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Presentation

• Typical Drilling Rig Information Collection
• Drilling Products for RFID
• Tool-Hand and Rig-Hand
• How they work / What they do
• Business Values
• Equipment Life Cycle Cradle to Grave
• Operations

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1899-2006 Rig Measurement Technology
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The Rig-Hand System
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Features
Tool-Hand
Rig-Hand

• Inspections
• Certifications
• Rental Use
• Pick Lists
• Use Reports
• Location (Ver 2)
• Tool Schematics
• (Maintenance)

• Tool-Hand Features PLUS
• Operations Focused
• Runs
• Strings
• Plans
• Field Use
• String Schematic

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Applications of Tool-Hand Rig-Hand

• Safety Equipment
• Drilling Production Chemicals
• Drill Pipe, HWDP
• Drill Bits, Hole Openers
• Chicksans / Pressure Vessels
• Casing and Production Tubing
• Packers, Bridge Plugs, Pumps

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Software Screen Shots
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We Have RFID Tags for Surface Downhole
Oilfield Equipment
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Both Thick Thin Walled Components
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Just Say NO to Viruses on RFID Tags

• We have a secure read algorithm
• Our system can perform check-sum confirmation of
  a valid tag read
• We use special tags and frequencies appropriate
  for downhole equipment rather then mass-market
  retail
• Our tags only carry an identifier
  data is in the database
• - AND Finally-
• Our Tags are READ-ONLY

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Unique Identifier, Coupled With Information
RFID

• Dimensions
• Materials
• Ownership
• Certification
• Use History
• Location

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Components are easily tracked from manufacture
through use
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Cradle to Grave Value
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Value Propositions

• Asset Management / Operations / Safety
• Reduced Drill String Failures
• Increased Probability of Fish Recovery
• Procurement
• Availability
• Suitability (proper application of materials)
• Location
• Inspection Maintenance
• Regulatory Compliance

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Drilling Operations

• Reduced Drilling Costs
• Changes Inspection Frequency Results
• Reduces Risk
• Improved Engineering Optimizations
• Automatic Schematics
• Real-Time and Cumulative Fatigue Indicators
• Faster, Better, Safer, Cheaper

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Partners Strategies (Operators)

• WITSML Industry Standard Data Integration
• OEM Tagging of Oilfield Tubulars and Equipment
• Royalty and license arrangement for standard
• String Information Integration to
• Geological and Geophysical
• Materials Location and Status
• Cementing Operations
• Mug Logging
• Directional Drilling
• Optimized Operations (BHHP, TD)
• Asset Management
• Real-Time Pipe Fatigue Display
• Regulatory Compliance

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Partners Strategies

• WITSML Industry Standard Data Integration
• Royalty and license arrangements
• OEM Manufacturing Service Companies
• Installation Services OEM and Retro-Fit
• Internal Use
• Inspections
• Field Services Integration

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Pricing Model

• Components
• Handheld / portable devices
• RCID software (handhelds and workstation)
• Tags (15-40 installed)
• Fixed reader
• Services (implementation, training, support)
• In order to more accurately quantify for
  budgeting, a requirements analysis will be
  necessary to provide a system price proposal.

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Questions?