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January 29, 2008 - Houston

Schlumberger and the Alberta Research Council Inc. (ARC) have launched a research initiative in unconventional gas resource recovery and technology development. The initial research program will focus on improving gas production from immature shale reservoirs by applying advanced rock characterization and non-damaging fluids fracturing technology.

Alberta is Canada’s powerhouse of natural gas production, but very little of that gas comes from unconventional reserves. As the opportunities in conventional gas reservoirs decrease, the oil and gas industry will need to turn more to unconventional gas to meet market demands. Immature shale reservoirs pose some technical challenges, which is why Schlumberger, through its TerraTek Geomechanics Laboratory Center of Excellence, will work with ARC to find solutions to these challenges.

“The future for Alberta’s gas production lies in unconventional gas resources. Estimates of shale gas in the Western Canada Sedimentary Basin vary from 86 to 1,000 trillion cubic feet (Tcf). ARC’s role in working with government and industry to develop, adapt and deploy technologies is strategic to ensuring these resources can be produced in an economical and sustainable manner,” said Ian Potter, vice-president, energy at ARC. “Schlumberger’s field service presence in Alberta and desire for innovation will help ARC develop these technologies, thereby ensuring the long-term viability of Alberta’s gas industry.”

“Our expansion into the Alberta unconventional gas sector is strategic as we seek to develop new services to tap unconventional gas. This research collaboration will grow Alberta’s unconventional gas play and is a natural fit for Schlumberger,” said Derek Normore, president of Schlumberger Canada Limited. “Additionally, Schlumberger will provide field and laboratory operations in Canada for core analysis related to unconventional gas recovery from shale and coal bed plays. This provides our clients with extended services related to the production optimization of unconventional gas.”

About the organizations
The Alberta Research Council Inc. delivers innovative science and technology solutions that meet the priorities of industry and government in Alberta and beyond. Established in 1921, ARC is wholly-owned by the Government of Alberta and incorporated as a not-for-profit corporation. ARC operates in five facilities throughout Alberta, serving the energy; life sciences, including agriculture, environment, forestry, and health and wellness; and manufacturing sectors.

Schlumberger is the world’s leading oilfield services company supplying technology, information solutions and integrated project management that optimize reservoir performance for customers working in the oil and gas industry. The company employs more than 80,000 people of over 140 nationalities working in approximately 80 countries. Schlumberger supplies a wide range of products and services from seismic acquisition and processing; formation evaluation; well testing and directional drilling to well cementing and stimulation; artificial lift and well completions; and consulting, software, and information management. In 2007, Schlumberger revenue was $23.28 billion. For more information, visit SLB.com.

For more information, contact:

Ian Potter
Vice-President, Energy
Alberta Research Council Inc.
250 Karl Clark Road
Edmonton, AB, T6N 1E4
Phone: (780) 450-5401

Susan Ganz
Media Relations Manager
Schlumberger
Phone: (281) 285-8245