WARP Fluids TechnologyTreated micronized weighting agents are

your assurance of reduced drilling risk and lower well costs

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Features WARP* Fluids Technology

particles are 10 times smallerthan drilling-grade barite

Low-viscosity fluids with lowplastic viscosities and yield pointand low-shear-rate viscosity,with no risk of barite sag

Lower friction factors: up to 10% incased hole and 25% in openhole

WARP micron-sized weightingagents pass more efficientlythrough shaker screens andopenhole-completion screens

Non-damaging to producing formations and completion hardware

Lower dynamic and static fluidloss with thinner filter cakes andlower breakthrough pressures

Benefits Reduces risk of static

and dynamic sag

Lower ECD values

Lower swab and surge pressures

Lower pump pressures

Improves cement-job quality

Faster pipe-running and tripping speeds

Improves MWD/LWD data quality

Lowers rotary torque and friction factors

Increases solids-removal efficiencyand lower dilution/maintenance

Reduces risk of completion-screen plugging

Lower downhole fluid losses

WARP Fluids Technology gives youhigh fluid weights and low rheologieswith no barite sag

A P P L I C A T I O N SExtended-reach wells, reservoir dril -ling fluids, through-tubing drilling,managed-pressure drilling, slim-holeand coiled-tubing drilling, high- temperature and high-pressure wells,casing-pressure-remediation fluids,packer fluids, logging and testing fluids,casing drilling, screen-running fluids,and cement-displacement fluids.

P R O B L E M SIn a conventionally weighted fluids,it is difficult to program the rheologi-cal properties sufficiently low enoughfor effective ECD management in narrow-mud-weight drilling windowsbut high enough to prevent baritesag and settlement.

S O L U T I O N SThe micron-size particles used in WARPFluids Technology from M-I SWACO*for increasing fluid density have excep-tionally low settlement rates thatenable low-rheology fluids to be pro-grammed. Now drilling-fluid rheologyis uncoupled from barite sag for allwater- and oil-base drilling- and completion-fluid systems.

E C O N O M I C SThe micron-size particles improvesolids-removal efficiencies and reduceproduct consumption. Reduced surfacelosses, combined with lower ECD val-ues and reduced downhole lossesmeans fluid costs are significantlyreduced. Overall well costs are reducedthrough improved drilling efficiencyand reduced non-productive time.WARP Fluids Technology offers cost-effective alternatives to high-densitycompletion brines.

E N V I R O N M E N T A LThe micron-size particles of WARPFluids Technology require less main -tenance, further enhancing its envi-ronmental performance. Completionfluids formulated with WARP FluidsTechnology are environmentally moreacceptable than many high-density,clear-brine systems.

Every manual on drilling-fluid engineering tells us that micron-size particlesare detrimental to drilling fluids. With too many fines in the fluid, the rheologyincreases, often with detrimental effects. The technology behind WARP FluidsTechnology lies in grinding the weighting material to extremely fine particlesizes from 0.1 to 10 microns, with the majority measuring 1 micron. By treatingthese extremely fine particles, there is no rheology increase.

The treated micronizedweighting agents of WARPFluids Technology a newconcept in drilling-fluid designHere are just a few examples of howthe micronized weighting agents ofWARP Fluids Technology can solvetodays drilling problems:

Low-rheology drilling and completion fluids forextended-reach drilling

Weight materials that do not settle,even with very low rheologies

Better management of ECD anddownhole losses while drillingand cementing

The specially treated micron-size weighting materials unique to WARP Fluids Technologyare 10 times smaller than drilling-grade barite. Their ultra-small size, combined with their proprietary treatment, ensures that fluids formulated with WARP Fluids Technology have exceptionally stable properties.

API barite 75 m top size

1-micron colloidal

WARP particle

API barite d50 ~25 m

Comparison of barite and WARP particles

Lower torque and friction factorsfor long reach wells

Ultra-fine shaker screens thatimprove solids-removal efficiencywithout sacrificing valuable productsfor environmental performance

Oil-base completion fluids forwater-sensitive hydrocarbons

Compared to conventionallyweighted drilling andcompletion fluids, there is no comparisonWhen evaluated against convention-ally weighted fluids, both water-baseand invert systems formulated withWARP Fluids Technology deliver moreadded-value benefits:

Reduced sag tendencies make fluidsusing WARP Fluids Technology idealfor horizontal and extended-reachwells. With dramatically reducedparticle diameters, compared to conventional weighting agents, settling velocities are reduced by afactor of 10,000. This makes WARPFluids Technology an excellentoption for all lower and intermedi-ate portions of long-reach-horizontalsections and for completion andworkover fluids.

Lower plastic viscosity is anotheradvantage of WARP Fluids Technologyover a conventionally weighted fluidwith the same yield point. Thiseffectively reduces ECD for drillingnarrow mud-weight windows.Owing to higher allowable pump

rates and non-laminar flow regimes,fluids formulated with WARP FluidsTechnology enhance bit hydraulics,thereby improving hole cleaning,with associated increases in ROPand tripping and casing speeds.

Improved filtration properties arethe result of the ultra-fine particlesizes of WARP Fluids Technology contributing to enhanced filtrationcontrol, minimizing the risk of differential sticking.

Improved solids-separation effi-ciency results in less dilution, opti-mum product performance andreduced costs. The fine particlesize of the weighting agent in WARPFluids Technology allows weightmaterial to easily pass through500-mesh shaker screens, removingvirtually 100% of drilled cuttingson the first pass.

The lower fluid viscosities at theshakers improve screening efficiencywhile reducing fluid discharge asso -ciated with cuttings. The improvedsolids-separation efficiency alsoimproves the tolerance of the fluidto low-gravity solids.

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10 Volume fraction

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Particle diameter (micron)

Typical Particle-Size Distribution

WARP

d100.6

API barite

d501.6

d903.8

The average size of particles in WARP Fluids Technology are less than 2 microns and nearly all the particles are less than 5 microns about the same size as human red blood cells. For the firsttime since weighting agents were first used in drilling fluids more than 80 years ago, WARP FluidsTechnology overcomes many of the deficiencies of barite. It is the weighting agent for solving21st-century drilling problems.

Improved pressure drops in narrowannuli allow greater flexibilityfor optimizing flow rates andpump pressures

Improved torque in open and casedhole by as much as 25% comparedto offset wells drilled with conven-tional weighting agents. Lower friction factors allow for greaterhorsepower at the bit, betterdrilling rates and less drag whilerunning pipe.

Non-damaging to production formations. Of the sections drilledusing WARP fluids, 66% are in 8-in.and smaller sections. With correctlysized bridging materials, WARP fluidsare non-damaging to the producingformation and deliver full flowbackthrough completion screens.

When the stakes are high,WARP Fluids Technologykeeps rheologies andproblems downThe low rheological profile of afluid enhanced with WARP FluidsTechnology actually improves holecleaning by effectively removingany cuttings buildup on the lowerside of the hole.

In addition, the low rheologies ofWARP Fluids Technology clear the wayfor better control and management ofequivalent circulating density, whichis especially critical when a very nar-row margin exists between the poreand fracture pressure. In fact, ECD values are actually reduced andpump pressures are lower withWARP Fluids Technology, also reducing pressure spikes while tripping and running casing.

These and other advantages makeWARP Fluids Technology the ultimatechoice for reducing drilling risk andwell costs for a wide array of criticaldrilling applications, including:

Horizontal and extended-reach wells

Coiled-tubing and through-tubing rotary drilling

Managed-pressure drilling

Reservoir drill-in fluids

Wells with narrow operating windows

HTHP wells

Casing drilling

Inhibitive fluids

Wells with risk of barite sag

Drilling waste management

Critical cementing operations

The boundaries of extended-reachand horizontal drilling in greenand brown field development areextending outward. API-grade barite

has served the industry well for thelast 80 years or more as the naturalproduct of choice to increase the den-sity of fluids. In practice, drilling-fluidviscosity was controlled to ensurethat the barite remained suspended,preventing it from settling out in thewellbore. That was fine in the past,but now well trajectories are becom-ing increasingly complex, forcingan inevitable compromise betweenthe rheological requirements forbarite suspension and hydraulicsfor well control.

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Fann 35 Rheometer speed (rpm)

Conventional oil-base drilling fluids

Plastic viscosity = 35 cps

Yield po

int = 17

lb/100

ft2

Yield poin

t = 7 lb/100

ft2

WARP* Fluids Technology

Lower Rheology of WARP Fluids Technology

Mud weight: 12.8 to 13 lb/gal (1.5 to 1.6 kg/L)

OWR 80:20

Plastic viscosity = 25 cps

WARP Fluids Technology success stories from around the worldWARP Fluids Technology has been successfully applied worldwide in a wide variety of critical drilling,

kill/barrier-fluid, extended-reach and horizontal drilling and HTHP applications.

Reduced ECD, torque, drag and a world record

A world-record extended-reach well was drilledoffshore eastern Russia to a final depth of38,320 ft (11,680 m) using a WARP/VERSACLEAN*system with reductions in ECD up to 0.56 lb/gal(0.07 kg/L) and significant reductions in torqueand drag. The liner was successfully run toplanned depth without incident.

An oil-base reservoir drill-in and completion fluid

A client in Malaysia required an oil-base reser-voir drill-in and completion fluid at 10.6-lb/gal(1.27-kg/L) density that had to be compatiblewith a crude oil that had strong emulsificationtendencies with water-base systems and thatallowed flowback through 150 expandablescreens. A WARP/ VERSACLEAN system successfully performed the job.

Preventing well-control incidents in a narrow pressure window

After two well-control incidents in the UK sectorof the North Sea, a challenging pressure windowof 0.6 lb/gal (16.6 to 17.2 lb/gal) was set to drill thefinal 6-in. section. A WARP/VERSACLEAN system wasselected and the section was drilled without inci-dent with the yield point as low as 1 lb/100 ft2

and plastic viscosity as low as 28 cP. In combina-tion with PRESSPRO* RT software, the fluid systemsECD never exceeded 17.1 lb/gal (2.05 kg/L) and the4-in. liner was run to bottom and cemented without incident.

Boosting cement-pumping rate by 4X

A client in the Caspian Sea had a problematiccementing operation to undertake. Using a con-ventionally weighted fluid, pump rates of only1 bbl/min were predicted without exceedingthe fracture gradient. Displacing to a 1.93 SGWARP/VERSACLEAN system prior to running cas-ing enabled a success ful cementing operationto be under taken at a flow rate of over 4 bbl/minwith negligible losses.

Even after a week in the hole, no barite sag

An extended-reach well drilled in the NorthSea had a low fracture gradient and a potentialfor barite sag. A 15.4 lb/gal (1.8 kg/L) WARP/VERSACLEAN system successfully drilled thewell within the ECD requirements. Torqueand drag were reduced, and no barite sagwas observed after 7 days static.

Client sees a 30% boost in drilling performance

For the redevelopment program of a mature reservoir in the North Sea, the 8-in. horizontal section required non-damaging reservoir drill-influids that could operate within a narrow-mud-weight window: the WARP/ VERSACLEAN system.Instantaneous rates of penetration exceeding400 ft/hr (122 m/hr) in a claystone sectionwhich had averaged 120 ft/hr (37 m/hr) washigher than any of the delineation wells. Over20,924 ft (6,378 m) were drilled in 7 sections.Despite two unplanned geological sidetracks,the project cost remained on-budget, and dril -ling performance was 30% better comparedto previous wells drilled in 2005, based on theclients drilling metrics.

Not just the longest well but the highest producer

As part of the Statoil Late Life Project, a hori -zontal extended-reach well was drilled usingWARP Fluids Technology to accelerate drillingand prolong production. The well was success-fully drilled to TD at 26,745 ft (8,152 m), witha TVD 8,064 ft (2,458 m) and recording thelongest section drilled from the Statfjord C platform. Production rates were 12,600 bbl/d,making this well the highest producer in theentire Statfjord field.

Speeding up the cement job in a fragile formation

In a well drilled offshore UK in the North Sea,it was calculated that the cementing operationduring the 5-in. liner run would exceed the fracture pressure, leading to total losses withan ECD of 2 lb/gal (0.24 kg/L) greater than the12.8 lb/gal (1.5 kg/L) density at the surface. Thereduction in ECD provided by the low rheologyWARP/VERSACLEAN fluid allowed the cement displacement to proceed at 5 bbl/min rather thanthe 3 bbl/min calculated using a conventionallyweighted fluid; the plug was pumped withintwo strokes of the anticipated volume.

Start: 10 days behind schedule Finish: 18 days ahead

Offshore Holland, an 8-in. intermediate sectionwas drilled with a 14.3 lb/gal (1.7 kg/L) WARP/VERSACLEAN system, through the Zechstein saltsequence at 61 inclination. The 8,248 ft (2,514 m)was drilled in 8 days: 28 days ahead of the AFEwith no underreaming. At the start of the section,the well was 10 days behind schedule and finished18 days ahead. In 24 hrs, the well drilled ahead2,657 ft (810 m), establishing a new drillingrecord for an 8-in. section drilled in the NorthSea, and the 7- x 758-in. liner was the thirdlongest run by the client. Using 400- and500-mesh XR* screens, dilution was 25% that ofa conventional fluid. The WARP/ VERSACLEAN sys-tem was formulated with a yield point between0 and 1 lb/100 ft2 and a 6-RPM dial reading of1 unit, surpassing all client expectations.

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Dilution cut by half and torque reduced by 28%

An extended-reach 8-in. section was drilled off-shore Norway in the reservoir using a 13-lb/gal(1.6-kg/L) WARP/VERSATEC* oil-base system andWARP Fluids Technology. Dilution rates wereabout half of those in offset wells, and torque inthe openhole was 28% lower than the offsets. A bitchange necessitated leaving the fluid static in thewell for five days, but the WARP/VERSATEC fluidexperienced no fluctuations in mud weight,despite 6- and 3-RPM readings of only 3 and 2,respectively, when circulation resumed.

Lower torque and dilution factors despite high heat

A 12-in. section of HTHP well was drilled in theNorth Sea, using a 15-lb/gal (1.8-kg/L) oil-basePARATHERM* system incorporating WARP FluidsTechnology; it proved stable to 330 F (166 C).The low-shear-rate rheologies measured less than3 Fann units at 3 RPM and ensured ECD valueswere within 0.25 lb/gal (0.03 kg/L) of the surfacemud weight. Torque was reduced by 25%, and dilution factors were three times lower than theNorth Sea average.

Sustaining high casing pressure with zero surface pressure

Sustained casing pressure is an ongoing issuein the Gulf of Mexico. High-density, 20.5-lb/gal(2.5-kg/L) water-base fluids using WARP FluidsTechnology were pumped between the casingannuli, and the surface pressure was reduced tozero, enabling increased production pressures.Several casing annuli have been treated usingWARP Fluids Technology since.

Coiled-tubing intervention succeeds despite high pressures

In the Caspian Sea area, a high-pressure wellrequired a 17.5-lb/gal (2.1-kg/L) drilling fluid for acoiled-tubing-well intervention. Using WARP FluidsTechnology, a neat oil-base fluid was formulatedwith a plastic viscosity of 17 cP (mPa/sec) and ayield point of 1 lb/100 ft2; the system successfully completed the job without incident.

High-density packer fluid: Another role for WARP technology

Another application in the Caspian Sea arearequired high-density, stable, oil-base packer fluidsas an additional hydraulic barrier fluid. This waseasily accomplished using high-density WARPFluids Technology which delivered low viscositywith no gelation and no particle settlement.

Exceeding expected ROP, keeping below fracture pressure

Offshore Norway, a 3,189-ft (972-m), 578-in.through-tubing rotary-drilling section was direc-tionally drilled at 78 from the 7-in. liner usinga VERSATEC oil-base system that incorporatedWARP Fluids Technology to 16,630 ft (5,068.8 m).The low-shear-rate rheol ogy (3 RPM Fann readingof

WARP Fluids Technology achievementsRecognized with prestigious award

WARP Fluids Technology receives the Offshore EnergyAchievement Award inDecember 2005.

Southern North Sea record

WARP Fluids Technology drills810 m in a 24-hr period on an8-in. interval offshore Holland a client record for Southern NorthSea. The 7- x 758-in. liner was thethird-longest run by the clientand reached TD without incident.Overall drilling performancewas regarded as the best in theZechstein salt formation.

World record ERD in East Russia

WARP Fluids Technology drilled aworld-record ERD in East Russiareaching a measured depth of38,320 ft (11,680 m) and 8,530 ft(2,600 m) TVD.

Highest producer in Statfjord field

WARP Fluids Technology drills arecord 8-in. extended-reach welloffshore Norway on Statfjord Cplatform and was categorizedas one of the most difficult wellsto drill and complete. The dailyproduction rate of 12,600-bbl/d,making it the highest producerin the entire Statfjord field.

WARP Fluids Technology keeps your drilling waste management and environmental programs clean, tooWARP Fluids Technology allows solids-control equipment to be run muchmore aggressively than with conven-tionally weighted fluids because theweighting-agent particles are so muchsmaller than the drilled solids. For flu-ids formulated with conventional API-grade barite, the particle size is veryclose to that of the drilled solids whichinvariably become incorporated intothe drilling-fluid system. In theseinstances, reducing the screen sizeto 250-mesh or finer removes barite aswell as unwanted low-gravity drilledsolids, resulting in higher fluid costs.

The small particle size of WARP FluidsTechnology ensures that extremelyfine-mesh screens may be employedon the primary shaker. Meshes asfine as 500 have been used success-fully, removing the majority of the drillsolids on the first pass. Not only doesthe very thin viscosity of these fluidsaid screening, it also reduces environ-mental impact and fluid volumes lostover the shakers, which in turn resultsin dilution rates as much as 35% lowerthan conventionally weighted systems.

Conventional Weighting Materials

API Barite

Higher rheologies to control baritesettlement and sag

Problematic ECD management in sec-tions with narrow pressure windows

Horsepower limitations in extreme,horizontal wells

WARP Fluids Technology

Near-zero sag and settlement ininclined and horizontal sections

Fluid rheology may be low and independent of sag. No mud-weightvariation.

Better management of ECD and control of losses

Lower drillstring torque for superior bit horsepower

Lower dilution factors and lowerwell costs

Reduced discharge volumes andenvironmental impacted factors and cost AFT

Dri

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Sized Calcium Carbonate

Mud weights limited at higher densities

Limited ECD management andrheology control at higher densities

All-in-one drilling and completion fluid

Lower rheologies for the same density

Better management of ECD andcontrol of losses

Complete flowback throughsand screens

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ervo

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Dri

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High-Density, Solids-Free Brines

High costs

Personnel safety and handling concerns

Disposal issues

Environmental concerns

No heavy metals

No environmental concerns

No particle settlement or sag

No personnel safety or handling issues

Easy cleanup and disposal

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The Clear Advantages of WARP Fluids Technology Over Conventional Weighting Materials

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Maximum density, lb/gal (kg/L)

15(1.8)

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Water-base WARP Fluids Technology (barite)

Oil-base WARP Fluids Technology (barite)

ZnBr2/CaBr2

K/CsCOOH

Water-base WARP Fluids Technology (CaCO3)

Oil-base WARP Fluids Technology (CaCO3)

CaBr2

KCOOH

NaBr

CaCl2

NaCOOH

NaCl

KCl

Maximum density of WARP Fluids Technology to common completion brines

WARP Fluids Technology factsWARP Fluids Technology is field-proven in over 190sections worldwide:

Maximum angle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

Highest density. . . . . . . . . . . . . 18.4 lb/gal (2,200 kg/m3)

Lowest density . . . . . . . . . . . . . . . 8.4 lb/gal (1,010 kg/m3)

Maximum BHT . . . . . . . . . . . . . . . . . . . . . . . . 405 F (207 C)

Longest 12-in. interval . . . . . . . . . . . . 9,839 ft (2,999 m)

Longest 8-in. interval . . . . . . . . . . . . 12,011 ft (3,661 m)

Longest 6-in. interval . . . . . . . . . . . . . . . 5,128 ft (1,563 m)

Longest measured depth well . . . . . . . . . . . . . . . . . . . . . . . 38,320 ft (11,680 m)

Smallest sand- screen completion . . . . . . . . . . . . . . . 150 m expandable

Number of horizontal sections. . . . . . . . . . . . . . . . . . . . . 64

Number of sections 8 in. . . . . . . . . . . . . . . . . . . . . . . . 53

Completion fluids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

1-micron WARP particle compared to human blood cells10 m

This is the one technology you should know aboutWe would welcome the opportunityto talk with you face-to-face aboutthis technological developmentthat could save you a lot of timeand money. Just call your localM-I SWACO representative andask for information and proofsabout WARP Fluids Technology.

For completion fluids, WARP Fluids Technology wins out over conventional weighting agentsAbove 13 lb/gal (1.6 kg/L), solids-free com-pletion and workover fluids are limited tomixed calcium chloride, calcium bromideand zinc bromide, or mixed potassiumand cesium formate brines. These areinherently expensive and environmentallyhazardous, carry the potential for scaling,and require special corrosion products.

The only other alternatives are speciallyformulated barite- or calcium- carbonate-weighted fluids that are prone to sagand settlement.

In WARP Fluids Technology, themicron-sized particles behave as solids-free fluids with no settlement, no reser-voir damage and complete flowback

through gravel-pack and sand-screencompletions all with no environmentalor disposal hazards. In addition, you nowhave the option of high-density oil-basecompletion fluids for a complete oil-basedrilling and completion fluid train, mini-mizing spacers and the potential foremulsion blocks.

Casing pressure control

Cementdisplacement

fluids

Coiled-tubing drilling

Replacing orcomplimenting MPD

High-density spacers

Extended-reachdrilling

Slim-hole andsmall-bore drilling

Horizontaldrilling

Through tubingrotary drilling

Openholescreened completions

Multilateral drilling

Reservoir fluid drill-inand completion fluids

Kill fluidsand

barrier fluids

Reservoir fluiddrill-in fluids

Loggingand

testing fluids

High-density

ZnBr2 brine

alternatives

Casingdrilling

Packerfluids

Casing pressureremediation

High temperature and high pressure

Applications for WARP Fluids Technology

P.O. Box 42842Houston, Texas 77242-2842

Tel: 2815611300Fax: 2815611441

www.miswaco.comE-mail: questions@miswaco.com

Technology Centers:

HOUSTON, TEXASTel: 2815611300 Fax: 2815611441

ABERDEEN, SCOTLANDTel: 441224334634 Fax: 441224334650

STAVANGER, NORWAYTel: 4751577300 Fax: 4751576503

2010 M-I L.L.C. All rights reserved. *Mark of M-I L.L.C.FBR.2301.1003.R2 (E) 2.5M Litho in U.S.A.

This information is supplied solely for informational purposes and M-I SWACO makes noguarantees or warranties, either expressed or implied, with respect to the accuracy and useof this data. All product warranties and guarantees shall be governed by the Standard Termsof Sale. Nothing in this document is legal advice or is a substitute for competent legal advice.