About Core Laboratories

Core Laboratories N.V. (Core Lab) provides proprietary and patented reservoir description and production enhancement services and products to the oil and gas industry worldwide. These services and products can enable the company’s clients to improve reservoir performance and increase oil and gas recovery from their producing fields. The company has over 70 offices in more than 50 countries. Business Strategy The company’s business strategy is to provide advanced technologies that improve reservoir performance by continuing the development of proprietary technologies through client-driven research and development; expanding the services and products offered throughout its global network of offices; and acquiring complementary technologies that add key technologies or market presence and enhance existing services and products. Development of New Technologies, Services and Products The company conducts research and development to meet the needs of its clients who are continually seeking new services and technologies to lower their costs of finding, developing and producing oil and gas. The company intends to continue concentrating its efforts on services and technologies that improve reservoir performance, increase oil and gas recovery, CCS projects and other projects directed at the global objectives in reducing carbon emissions. International Expansion of Services and Products The company derives its revenue from services and product sales to clients primarily in the oil and gas industry. Operations The company operates through two segments, Reservoir Description and Production Enhancement. Reservoir Description Encompasses the characterization of petroleum reservoir rock, and reservoir fluids samples to increase production and improve recovery of crude oil and natural gas from the company’s clients' reservoirs. The company provides laboratory-based analytical and field services to characterize properties of crude oil and crude oil-derived products to the oil and gas industry. The company also provides proprietary and joint industry studies based on these types of analyses and manufacture associated laboratory equipment. In addition, the company provides reservoir description capabilities that support various activities associated with energy transition projects, including services that support carbon capture, utilization and storage, hydrogen storage, geothermal projects, and the evaluation and appraisal of mining activities around lithium and other elements necessary for energy storage. Production Enhancement Includes services and manufactured products associated with reservoir well completions, perforations, stimulation, production and well abandonment. The company provides integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions aimed at increasing the effectiveness of enhanced oil recovery projects. The company offers its services worldwide through a global network of offices. The company manufactures products primarily in five facilities for distribution on a global basis. Reservoir Description The company provides services that characterize the porous reservoir rock, all three reservoir fluids and their derived products. Services relating to these fluids include determining the quality and measuring the quantity of the reservoir fluids and their derived products, such as gasoline, diesel and biofuels. This includes determining the value of different crude oil and natural gases by analyzing the individual components of complex hydrocarbons. Reservoir fluid analyses contribute approximately 65% to 70% of Reservoir Description revenue. The company also provides more advanced laboratory analyses, which measure reservoir hydrocarbons at reservoir conditions to determine the changes in the hydrocarbon's physical properties with changing pressure and temperature. The company analyzes samples of reservoir rocks for their porosity, which determines reservoir storage capacity, and for their permeability, which defines the ability of the fluids to flow through the rock. These measurements are used to determine how much oil and gas are present in a reservoir and the rates at which the oil and gas can be produced. The company also uses its proprietary services and technologies to correlate the reservoir description data to wireline logs and other subsurface data. The combined use of both the reservoir rock and fluid data are invaluable to oil companies to determine the most efficient method and optimize the recovery, processing and refinement of these hydrocarbons. Early evaluations and key decisions about well performance and viability are important for optimizing a reservoir. This is accomplished by using proprietary and patented laboratory methods, including both traditional physical measurements and more recently introduced new technologies, such as Core Lab’s Non-Invasive Technologies for Reservoir Optimization (NITROSM) services. NITROSM services includes Dual Energy Computed Tomography (DECT), Micro Computed Tomography, high and low frequency nuclear magnetic resonance, high-resolution gamma logging and continuous high energy x-ray fluorescence, along with other Core Lab proprietary technologies. Core Lab's proprietary DECT scanner-based deliverables generate millimeter-scale three dimensional images and accompanying high-resolution petrophysical logs on cored intervals by calibrating DECT information to the vast library of physical measurements in Core Lab's proprietary database. The DECT deliverables from Core Lab are more detailed than down-hole logs and provide better bed resolution as well as accurate information on rock properties such as lithology, porosity, density, rock strength and acoustic velocities. DECT, when combined with Continuous Dual Gamma and Scanning X-ray Fluorescence (CS-XRF), allows Core Lab to assess continuous high-resolution elemental composition of the cored intervals. A proprietary formation-specific inversion technique can be used to convert the detailed elemental composition to a continuous mineral log enabling the company to generate detailed lithologic descriptions of the reservoir and to perform a comprehensive reservoir characterization. Core Lab conducts a wide variety of physical laboratory measurements to measure and evaluate fluid flow through the rock, often at in-situ reservoir temperatures and pressures. These are most commonly applied to conventional reservoirs. The company has also developed unique analytical processes to understand the flow characteristics and saturation profiles of unconventional reservoir systems including High Frequency Nuclear Magnetic Resonance measurements to gain insights into movable vs. non-movable fluid saturations of these complex systems; and Enhanced Oil Recovery of shale reservoirs by evaluating the effectiveness of gas cycling in nano-pore structures to significantly increase long-term production rates and volumes. Core Lab has been at the forefront of digital transformation technologies for more than two decades. Core Lab’s extensive, proprietary databases and analog technologies, coupled with artificial intelligence (AI) and machine learning, help the company’s clients improve efficiencies and lower operating costs throughout the upstream value chain. The analysis and integration, of these critical datasets is enhanced because of Core Lab’s proprietary RAPID database. Core Lab’s Digital Innovation Group works collaboratively with multiple international and national oil companies on projects that utilize several of Core Lab’s proprietary digital technologies and services. Core Lab’s proprietary Advanced Rock Typing technology combines Core Lab’s vast, comprehensive database of physical measurements, and World Wide Rock Catalog with its proprietary image acquisition technology and innovative AI image recognition. Core Lab’s proprietary World Wide Rock Catalog provides a database and analog reference set for predicting properties when physical measurements are unavailable. These technologies provide clients with analog data sets in situations where acquisition of new conventional core may not be possible. High-resolution images of wellbore cuttings and sidewall cores are quickly and efficiently matched with analogs from Core Lab’s proprietary database of samples from around the world. Physically measured data sets from the matching analogs are delivered to the company’s clients in time to make appraisal and development decisions. Core Lab’s proprietary legacy portfolio of geological studies and rock and fluid property datasets on conventional reservoirs and seals, accessible through Core Lab’s database platform, RAPIDTM, are being leveraged in energy transition projects as well, and are proving invaluable to operators evaluating potential CCS sites in onshore and offshore Miocene and Oligocene reservoirs along the U.S. Gulf Coast. These legacy studies, originally conducted to evaluate hydrocarbon reservoirs, provide critical data for reconnaissance, benchmarking, and risk reduction ahead of new coring projects for CCS site assessment. Core Lab’s Digital Innovation Group integrates results and interpretations into a comprehensive, web-enabled platform, RAPIDTM, for client access. This allows the company’s clients to gain insight into their core intervals at an accelerated pace, for both non-invasive technologies as well as time-honored physical laboratory measurements. Through this integrated visually interactive platform, key reservoir performance indicators are presented, evaluated and shared within client workgroups. Core Lab also applies its rock fluid and data analytical capabilities to CO2 and other gas and liquid projects. These projects may be for enhanced oil recovery in mature fields, or for CO2-CCS projects. Core Lab holds various patents, trade secrets, and proprietary designs for laboratory equipment required to analyze reservoir rocks, as well as the properties and phase behavior of reservoir fluids and derived products. The company manufactures a wide range of ambient and reservoir condition rock and fluid analysis laboratory equipment for its own use throughout its international laboratory network. The company also sells equipment of this type to universities, government institutes, and client company research labs. While recognizing the need to optimize the logistical chain of the company’s clients, from producing well to retail sales of petroleum products, a state-of-the-art IT platform CONNECT: was launched to efficiently acquire and optimize workflows of the company’s field data, laboratory analysis, and any other observations relevant to its client base. The system is designed for single data entry, and that data can be used for further analysis and, more importantly, be shared with the company’s clients by process flow dashboards with key performance indicators. The system can also share real-time data on mobile devices, enabling the company’s clients to make quick decisions. The company added new modules to its suite of IT platforms in 2021 that enhance the distribution chain of its customers, with similar structure of using dashboard technology, enabling the customer to monitor live progress, as well as operational data. The company conducts numerous large-scale, multi-company reservoir management projects, applying proprietary and state-of-the-art techniques from the earliest phases of a field development program until the last economic barrel of oil is recovered. The company initiates and delivers a group of international and the U.S. based consortium studies to evaluate both conventional and unconventional reservoirs. The company’s clients use this information, not only to improve their drilling and production activities, but also to evaluate potential acquisition and divestiture opportunities. The company’s data bases, technology and analytical methods also allow it to assist its clients in other ways. Many of the company’s clients have begun investing in and developing other sources of energy, including renewables. Some of these initiatives include deployment of technologies associated with the assessment of strata to establish strategies tied to hydrogen storage and mining of elements, such as lithium, which are critical components of batteries for energy storage. The company’s measuring and analytical techniques may also be used to assist its clients with reporting requirements associated with carbon emissions. Production Enhancement Core Lab's Production Enhancement group provides products and diagnostic services to help optimize well completions, reservoir operations and field development strategies, in order to increase recoverable reserves in the most efficient way. These product offerings include perforating technologies to establish communication between the wellbore and the reservoir. Diagnostic services are used to assess well completions and field floods. Two commonly used production enhancement methods are hydraulic fracturing of the reservoir rock to improve flow and flooding a reservoir with water, carbon dioxide, nitrogen or hydrocarbon gases to drive more oil and gas to the producing wellbores. Many oilfields today are hydraulically fractured and/or flooded to maximize oil and gas recovery. Although Core Lab is not a hydraulic fracturing company, Core Lab does provide services that are used by operators to develop and optimize hydraulic fracturing and field flood projects and to evaluate the success of those projects. These services, products and expertise play a key role in the success of both methodologies. The proprietary and patented ZERO WASH tracer technology is used to confirm optimum cluster efficiency, stage spacing, stimulated reservoir volume and increased ultimate recovery. SPECTRACHEM, a chemical frac water tracing service, is another proprietary and patented technology developed for optimizing hydraulic fracture performance. SPECTRACHEM is used to aid operators in determining the efficiency of the fracturing fluids used. SPECTRACHEM tracers enable operators to evaluate the quantity of fracturing fluid and reservoir fluid that returns to the wellbore after a hydraulic fracturing event. This technology also enables clients to evaluate load recovery, gas breakthrough, fluid leak-off and breaker efficiency, all of which are important factors for optimizing oil and/or natural gas production after the formation is hydraulically fractured. The SPECTRACHEM service is used for determining the effectiveness and efficiency of the hydraulic fracture stimulation of long, multi-stage horizontal wells in oil- and gas-shale plays in unconventional reservoirs. SPECTRACHEM data sets are used to determine if and how effectively each frac stage is flowing. Frac stages with ineffective flows may warrant further stimulation or remedial actions, while guiding improvements in future frac designs and flowback procedures. Core Lab's engineers have developed and implemented new applications for the proprietary SPECTRACHEM service to determine whether horizontal wells are unobstructed and flowing through the entire length of a horizontal well. Leveraged by operators in the Permian, Eagle Ford, Wolfcamp, Bakken and Haynesville plays, this technology can identify wellbore obstructions, often caused by inter-well communication, wellbore fill, or dissolvable plug remnants. By applying this technology, clients can identify and remediate well obstructions that can negatively impact well performance, reserve calculations and reserve-based lending. Another unique completion monitoring system, COMPLETION PROFILER, helps to determine flow rates from reservoir zones after they have been hydraulically fractured. This provides clients with a baseline of early production information that can be compared to subsequent data later in the life of the well to see how hydrocarbon production from different reservoir layers or different quality rock varies over time. The FLOWPROFILER service, a proprietary hydrocarbon-based tracer technology, which is a further development of the patented SPECTRACHEM technology quantifies the hydrocarbon production from discrete segments in multi-stage horizontal well completions in unconventional tight-oil or gas plays. This service incorporates both liquid and solid controlled-release, oil-soluble tracers for oil reservoirs which are different from gas tracers used for gas reservoirs. FLOWPROFILER technology and the analytical methodology for identifying the hydrocarbon-soluble tracers are the protected intellectual property of Core Lab. The FLOWPROFILER technology employs unique hydrocarbon-soluble tracers and water-soluble tracers introduced into specific, physically isolated stages via the stimulation proppant stream. The hydrocarbon-soluble tracers partition into the crude oil and gas associated with each stage, while the water-soluble tracers remain in the stimulation fluid. When the well is flowed, oil, gas and water samples are collected and analyzed in the laboratory to identify and quantify oil or gas flows from each stage, as well as the cleanup of the stimulation fluid. Stages not at optimum flow rates can be identified, precipitating remedial efforts to increase flow and recovery rates, and providing valuable insights for future wells. This service is used to monitor offset well interference by sampling offset well oil, gas and water production. The amount of tracer detected in offset wells is used to help clients optimize both horizontal and vertical well spacing and the optimum amount of fracturing fluids for each stage. There has been a broadening acceptance of FLOWPROFILERTMEDS, a proprietary technology, which is an engineered delivery system (EDS). The break-through EDS technology delivers time-released diagnostics for evaluating the crude-oil flow from each stage of a hydraulically fractured completion. This technology comprises proprietary 40/70 or 100 mesh particles, chemically engineered to bond specifically with proprietary oil tracers. This allows for precise placement of tracers in the propped fracture, thus providing accurate identification of oil production by stage. Crude-oil production by stage is determined using this Core Lab-developed technology that enables the diagnostic tracer to be absorbed and chemically bonded to durable, proppant-size particles that are injected with the frac sand. The tracer will release from the engineered particles once they contact the reservoir's crude oil, enabling Core Lab to assess which stages are contributing to crude-oil production. Core Lab also conducts dynamic flow tests of the reservoir fluids through reservoir rock, at actual reservoir pressure and temperature, to realistically simulate the flooding of a producing zone. Patented technologies, such as Saturation Monitoring by the Attenuation of X-rays (SMAX), help in designing the enhanced recovery projects. After a field flood is initiated, Core Lab is often involved in monitoring the progress of the flood to ensure that the maximum amount of incremental production is achieved using the SPECTRAFLOOD technology, which was developed to optimize sweep efficiency during field floods. Core Lab's patented PACKSCAN technology is used to evaluate gravel pack effectiveness in unconsolidated reservoirs. PACKSCAN measures density changes in the gravel pack annulus to verify the competency of the gravel pack without requiring any additional rig time. In addition to Core Lab's many patented reservoir diagnostic technologies, Production Enhancement has established itself as a global leader in the manufacturing and distribution of high-performance perforating products. Core Lab's unique understanding of complex reservoirs supports its ability to supply perforating systems engineered to maximize well productivity by reducing, eliminating and overcoming formation damage caused during the drilling and completion of oil and gas wells. This systems approach to the perforation of an oil or gas well has resulted in numerous patented products. SuperHERO (High Efficiency Reservoir Optimization) and HERO-HR (Hard Rock) are examples of the patented perforating systems. The SuperHERO charge evolved from the HERO charge technology and use a proprietary and patented design of powdered metal liners and explosives technology resulting in a deeper and cleaner perforating tunnel into the oil and gas reservoir. This allows greater flow of hydrocarbons to the wellbore and helps to maximize hydrocarbon recovery from the reservoir. The more recent charge development of the HERO-HR charges, resulted in Core Lab also having the deepest penetrating perforating charges on the market as certified by API testing. HEROTMPerFRAC leverages the HEROTM technology. In addition to the benefits of HEROTM technology, HEROTMPerFRAC charges are designed specifically for optimizing fracture stimulation well completions by providing low standard deviation which minimizes tortuosity effects. This results in less required surface horsepower and less time which both translate into lower costs needed to complete the fracturing operation. In addition to optimizing stimulation operations with faster, lower cost programs, well production is enhanced by not only the better well stimulations but the improved near debris free perforation tunnels as the well fluids come back into the casing from the rock. Core Lab's manufacturing operations in the United States and Canada continue to meet the global demand for the company’s perforating systems through facility expansion in addition to gains in efficiency and productivity. Consistent with the HEROTMPerFRAC uniform hole size option, the ReFRAC product line was also introduced and has experienced increasing client acceptance. The ReFRAC technology is utilized in mechanically isolated re-stimulation programs where the internal string is used to isolate older, depleted stages in previously under-stimulated wells. The ReFRAC technology creates a uniform hole size through two strings of casing. This re-completion method is gaining popularity because it allows operators to perforate, pump and stimulate new rock between the original stages of the well, increasing hydrocarbon recovery without the expense of drilling and completing a new well. Operators using Core Lab’s ReFRAC technology have reported they can complete twice as many stages per day compared to conventional perforating systems, reducing their operating costs and improving cash flow. The HERO line of perforating charges, HEROTMPerFRAC, SuperHERO, HERO-HR and ReFRAC charges can eliminate the ineffective perforations that would otherwise limit daily oil and natural gas production and hinder the optimal fracture stimulation programs needed for prolific production from the Permian Basin, Bakken, Eagle Ford, Marcellus, Niobrara and similar oil- and gas-shale formations. Core Lab’s proprietary downhole energetic solutions and instrumentation are designed to systemize, simplify, automate, and de-risk the deployment of perforating systems, which are utilized by international oil and gas operators for well completions. The Ballistics Delivery System (BDS) provides a unique range of perforating tools and equipment, which have been developed to provide a number of advantages over existing technology. The BDS tools facilitate perforation accuracy while addressing wellbore assurance concerns and optimizing safety, thus alleviating some of the challenges encountered when perforating. It also assists with issues incurred with high underbalanced perforating, running heavy/long assemblies, oriented perforating, depth control, reduction in fishing risk, and acquiring wellbore pressure data as guns fire. Core Lab’s BDS and the GoFire Addressable Switch are key differentiators of Core Lab’s preassembled GoGun Adaptive Perforating System. The GoGun Adaptive Perforating System provides an open architecture design. This allows for optimal utilization of perforating energetics and, importantly, the onsite flexibility of altering completion designs for greater wellsite efficiency and improved Stimulated Reservoir Volume. Core Lab's next generation, HEROTMPerFRAC energetic technology, is available in combination with the new, patent pending Oriented GoGun. This new offering provides the company’s clients with a technological solution for achieving: extreme limited entry perforating capability, precisely aligned perforations, and minimized connections and completion string length. Core Lab partnered with major U.S. operators to design custom, consistent-hole-size charges that can be aligned in a specific orientation in order to achieve uniform breakdown across each stage. Core Lab’s Production Enhancement operating segment commissioned a cutting-edge, Reservoir Optimized Completions Lab (ROC Lab) in Godley, Texas. The ROC Lab is designed to determine the best energetic solutions for a specific rock type, to maximize productivity of an operator’s reservoir. The ROC Lab features an industry-leading, Ultra High Pressure/High Temperature perforation test vessel. The test vessel is paired with a proprietary flow system that uses highly specialized, internally developed and manufactured pumps and flow controllers. Core Lab’s proprietary Plug and Abandonment Perforating System (PAC) is utilized to optimize a slot recovery process through a lean casing recovery program. PAC allows for reduced rig time and efficient recovery of the interior casing, while eliminating risks and creating opportunities for production from untapped reservoir sections. Core Lab's Production Enhancement team has experienced technical services personnel to support clients through the company’s global network of offices for the everyday use of its perforating systems and the rapid introduction of new products. The company’s personnel are capable of providing client training and on-site services in the completion of oil and gas wells. The patented X-SPAN and GTX-SPAN casing patches are supported by its technical services personnel. Marketing and Sales The company markets and sells its services and products through a combination of sales representatives, technical seminars, trade shows and print advertising. Direct sales and marketing are carried out by the company’s sales force, technical experts and operating managers, as well as by sales representatives and distributors in various markets. The company’s Business Development group manages a Large Account Management Program to better serve its largest and most active clients by meeting with key personnel within their organizations to ensure the quality of its services and products are meeting their expectations and addressing any issues or needs in a timely manner. International Operations The company operates facilities in more than 50 countries. The company’s non-U.S. operations accounted for 66% of its revenue from operations during the years ended December 31, 2022. Governmental Laws and Regulations The company’s operations in the United Sates are subject to stringent occupational safety and health laws and regulations, which are intended to protect worker health and safety, including the federal Occupational Safety and Health Act, which establishes requirements to protect the health and safety of workers. Consistent with its quality assurance and control principles, the company has established proactive worker safety policies in the United States and foreign countries, which meet or exceed applicable worker safety legal requirements. History Core Laboratories N.V. was founded in 1936.