Case Study – Foothills Region, Canada2008 CASING DRILLINGTM Plastering Success

• 9-5/8” casing x 12-1/4” EZCase drilled from 850 M to 1,250 M

• CD effectively reduced lost circulation while drilling

• NPT reduction > 50%

Days from Drill-out of Previous Casing

Mea

sure

d de

pth,

met

ers

0 2 4 6 8 10 12

860

960

1060

1160

1260

100%

50%

0%

2008 Results from Canadian Foothills:Circulation Improved while Drilling Ahead

Me

asu

red

de

pth

, met

ers

Partial Loss

Stop drillingDrilling

Artic Permafrost ApplicationMackenzie Delta –Canada

Conventional Drilling Issues• Keeping Permafrost frozen is critical to wellbore stability.• Hydrates and borehole erosion.• Mud cooling is required.• Conventional drilling requires high flow rates for hole cleaning.• Lots of problems with high flow rate coolers.• Difficult to keep hole stabile while tripping to run casing.• Small pumps dictated by ice road limits.

SPE paper 111806

Artic Permafrost ApplicationMackenzie Delta –Canada

Casing Drilling Solution

• Drilling with casing:• eliminated need to trip.• allowed good cleaning at low flow rates.• minimized pressure losses (heating).• implemented with small pumps• BHA: 17-1/2 EZCase bit, stab, float collar, joint of casing, float collar, stab, 4 jts casing, stab, csg

• Mud cooling.• KCl polymer mud (8-10% KCl depresses freezing)

• Spiral heat exchanger, ammonia refrigerant, glycol heat exchanger fluid• Spiral exchanger minimized plugging but gave adequate contact surface and time.

Conclusions/Observations

• Minimized flat time.

• No borehole stability issues.

• Cooling system & CD prevented permafrost from degrading.

• Extended casing setting depth well below base of permafrost.

•Kept ROP below 15m/hr to minimize need to stop drilling and circulate for hydraulic lift.

• Walnut hull sweeps used to control balling.

• EZCase drilled out with TCI bit.

CASING DRILLINGCASING DRILLING®® Project Summary Project SummaryPan American ENERGY, ArgentinaPan American ENERGY, Argentina

PAE received approval from government to extend its Cerro Dragon concession (4000 Km2) to 2017. They will drill approximately 300 wells /year.

At least 10% of these well will benefit from CwD, due to problems associated to Water Injection/ depletion problems (High Losses).

CwD project initiated as Enhanced Productivity Project (rather than Drilling)

A typical well is cased with 9 5/8” @ 300m & 5 ½” @ 2,400m.

Tesco® Project: Evaluate a 5 well Project with 5½” BRT®

OBJECTIVE: To be able to drill the production hole with minimum NPT OBJECTIVE: To be able to drill the production hole with minimum NPT associated to losses, trips, allowing a positive impact on the productivity associated to losses, trips, allowing a positive impact on the productivity of the well of the well

Pan American ENERGY Project SummaryPan American ENERGY Project Summary

Successfully drilled both areas: Averaged 14 days/well. Reduce NPT related to loss circulation and highly damaged reservoirs. Reduced production hole from 13 to 11 days. Good quality wells: Better CBL’s and one well did not require fracturing. C Grande previously considered not accessible. Value: Less Completion Costs & possibly better productivity .

CURRENT CUSTOMER STATUS: CURRENT CUSTOMER STATUS: PAE Evaluating production results. PAE requesting fiscal leverage from government related to technology deployment, in order to start back in Jan 09

C Dragon C Grande

Conv. CD1 CD2 CD3 Conv. CD4 CD5

• Casing Size: 9-5/8 - 47Lbs/ft, L80, BTC c/w MLT™ Rings

• CASING DRILLING™ footage drilled 1,416 ft• Job Date: September, 2008

What: 2nd OFFSHORE DIRECTIONAL CASING DRILLING™ from a SIDETRACK

Where: QATAR – MIDDLE EAST

Job Details:

Objective:

• Drill a directional section through unstable shale formation with 9 5/8” casing.

Results: • Used CDS™ to make up and run 9 5/8” casing, then drilled with the casing• CASING DRILLING™ successfully drilled the

12 ¼” hole section into the reservoir

SUCCESS IN THE ARABIAN GULF

• Lost 2 BHA’s drilling conventionally thru the unstable shale formation.

Challenge:

• BHA: PDC Bit/Rotary Steerable/MWD/RR/UR/Motor/DLA

• No issues tripping / drilling casing thru openhole sidetrack

• Used 1 BHA to drill the entire hole section at 38 ft/hr

• Successfully set / retrieved BHA using drill pipe (Level 3)

• Built from 65° to 86.4°, turning the azimuth from 272° to a 292°

• Unstable shale, pack-off csg near TD in the top of the reservoir

• BHA, tripped thru casing to surface, leaving shale behind casing

• No QHSE incident occurred during the Job

• No rig modifications were required

• Tesco’s CDE™ torque modeling proved reliable

• No loss circulation, Torque and Drag trended well

• Achieved desired directional trajectory

• Provided cased wellbore into reservoir.

Highlights:

Operations:

9 5/8" DLA - 3 550 #

2.72 '

4 1/2 XH Pin Down

4 1/2 XH Box Up

40.17 '

Internal Tandem 900 #Stabilizer

4 1/2 XH Pin Down

4 1/2 XH Box up

CrossoverTESCO 4 1/2 IF Pin Down 300 #CRIMP ON 4 1/2 IF Box up

STABILISER

Mud Motor 3000 #

5 1/2" FH Box Down

Crossover 300 #5.92 ' 4 1/2 REG Box Down

Underreamer 860 #

4 1/2 REG Box Down

Crossover 325 #4 1/2 IF Pin Down

4 1/2 IF Box Up

Redback Roller 700 #Reamer

4 1/2 IF Pin Down

4 1/2 IF Box Up

Stickout Crossover 325 #80.70 ' 5 1/2" FH Pin Down

Filter Sub 400 #4 1/2 IF Pin Down

4 1/2 IF Box Up

3100 #

4 1/2 IF Pin Down

4 1/2 IF Box Up

Xceed675 RSS 3000 #

74.78 ' 4 1/2 Reg Box Down

4 1/2 Reg Pin Up

8 1/2" PDC Bit 100 #

Directional

9 5/8" Shoe Joint

ReamingShoe

10' Pick-Up Joint

9 5/8" Profile Nipple (CPN)

RSS CD-BHA

SUCCESS IN THE ARABIAN GULF