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The Reelwell drilling method g

- MPD applications
Ove Hole - Sales and Marketing Manager g g

THE REELWELL MPD METHOD | PRESENTATION OCT. 08 | OVE OVE THE REELWELL MPD METHOD | PRESENTATION SPESPE OCT. 08 | HOLE HOLE

REELWELL BUSINESS IDEA

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>> REELWELL & TECHNOLOGY >> FOCUS: MPD APPLICATIONS

To T provide a new d illi id drilling method for improved recovery of hydrocarbon resources

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

TECHNOLOGY DEVELOPMENT
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COMMERCIALLY AVAILABLE 2009 Onshore and Offshore pilot well* Validitation test at Ullrigg* Full scale prototype verification at Ullrigg* Critical components built and tested* Feasibility study* Reelwell established

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2009 2008 2007 2006 2005 2004

* Financial support from Research Council of Norway, StatoilHydro and Shell Norway Shell.

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

REELWELL TECHNOLOGY
DUAL DRILL STRING: CLICK__ ____ _____ ____ ______ ____ TO EDIT MASTER TEXT STYLES
Reverse circulation; upwards flow through inner drill string Wellbore annulus free of cuttings

>> REELWELL & TECHNOLOGY >> FOCUS: MPD APPLICATIONS

TOP TOP TOP DRIVE DRIVE DRIVE ADAPTER ADAPTER ADAPTER

TOP DRIVE ADAPTER:

Swivel for drill fluid in and out

DUAL FLOAT VALVE:

Enables downhole isolation and internal circulation

HYDRAULIC PISTON:
Pushes the bit f forward Barrier between well bore and hydraulic fluid

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

VALIDATION TESTING OF METHOD

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GOAL:

>> REELWELL & TECHNOLOGY >> FOCUS: MPD APPLICATIONS

Validation test of REELWELL drilling method plain drilling and liner drilling Ullrigg testing centre in Stavanger May 08 Vertical well, 300 meter depth 100 m concrete column 103/8 casing

LOCATION:

CONCLUSION:
WHEN: WELL STRUCTURE:

The REELWELL drilling method is validated

SYSTEM/COMPONENTS: Dual Drill String for reverse circulation Dual Float Valve Piston Pi Top Drive Adapter Liner expander Control system (pressure and flow)

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

SYSTEM BENEFITS
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MPD: Improved pressure- and well control Horizontal drilling: effective hole cleaning Hydraulic WOB allows for Extreme Reach Drilling (ERD) The technology provides access to previously inaccessible reservoirs

Reduced costs; less active mud volume required, faster operations Using existing facilities to reach previously inaccesible reservoirs Less active mud volume required Downhole isolation for improved HSE ERD making reservoirs acessible from land

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

APPLICATIONS
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>> REELWELL & TECHNOLOGY >> FOCUS: MPD APPLICATIONS

The method is especially suitable for: 1. 2. 3. 4. Mature fields with depleted reservoirs (MPD) Horizontal drilling (hole cleaning) Extended Reach Wells (ERD) Deep water fields Focus areas for 2009!

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

Application: Application: DEPLETED RESERVOIRS

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>> REELWELL & TECHNOLOGY >> FOCUS: MPD APPLICATIONS

CONVENTIONAL DRILLING: l t circulation DRILLING: lost i l ti

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

Application: Application: DEPLETED RESERVOIRS

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>> REELWELL & TECHNOLOGY >> FOCUS: MPD APPLICATIONS

REELWELL: improved d REELWELL: i d downhole pressure control h l t l

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

Application: HORIZONTAL DRILLING

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>> REELWELL & TECHNOLOGY >> FOCUS: MPD APPLICATIONS

CONVENTIONAL DRILLING: cuttings accumulation DRILLING: tti l ti

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

Application: HORIZONTAL DRILLING

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>> REELWELL & TECHNOLOGY >> FOCUS: MPD APPLICATIONS

REELWELL: tti REELWELL: cuttings removed d

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

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THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE [ NEXT SLIDE]

MANAGED PRESSURE DRILLING

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CONVENTIONAL DRILLING
Problems zones are depleted areas, where pressure is reduced reduced.

MPD
Facilitating access to depleted areas Light fluid steep gradient Reduced casing program

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

REELWELL MPD METHOD

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SET UP
1. 2. 3. 3 Two separated fluid systems Reelwell Piston sealing well bore Reelwell Dual Float Valve keeping pressure downhole

>> REELWELL & TECHNOLOGY >> FOCUS: MPD APPLICATIONS

TOP DRIVE ADAPTER

KEY FEATURES
1. 2. 3. Controlled Equivalent Circulation Density (ECD) No pressure at surface whilst drilling or during connection Hole cleaning

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

EXISTING MPD vs REELWELL MPD

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>> REELWELL & TECHNOLOGY >> FOCUS: MPD APPLICATIONS

1) PIPE CONNECTION - REELWELL: no pressure at surface

EXISTING MPD METHOD

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

REELWELL MPD METHOD

EXISTING MPD vs REELWELL MPD

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2) START UP - REELWELL: internal circulation before downhole (dual float) valve opens

EXISTING MPD METHOD

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

REELWELL MPD METHOD

EXISTING MPD vs REELWELL MPD

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>> REELWELL & TECHNOLOGY >> FOCUS: MPD APPLICATIONS

3) DRILLING - REELWELL: the friction pressure loss in return line balance the pore pressure

EXISTING MPD METHOD

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

REELWELL MPD METHOD

REELWELL MPD ADVANTAGES

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SAVINGS IN TIME AND COST
Use of existing rigs and systems Reduced casing program

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SAFER OPERATIONS
Piston and Dual Float Valve provides downhole isolation Unique p q pressure and volume control

ENVIRONMENTAL FRIENDLY
Less active drilling fluid and chemicals required Low pump rate L t

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

WAY FORWARD
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2008 Q4: Certification
Tools and procedures, DNV participating

>> REELWELL & TECHNOLOGY >> FOCUS: MPD APPLICATIONS

2009 Q1: Onshore Pilot Well

Plain drilling with MWD/directional tools out of 95/8 casing

2009 Q3: Offshore Pilot Well 2009: COMMERCIALLY AVAILABLE

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

ACKNOWLEDGEMENTS
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>> REELWELL & TECHNOLOGY >> FOCUS: MPD APPLICATIONS

For supporting and funding of the Reelwell development program, thanks to:

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE

>> REELWELL & TECHNOLOGY >> FOCUS: MPD APPLICATIONS

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The Reelwell drilling method

THE REELWELL MPD METHOD | PRESENTATION SPE OCT. 08 | OVE HOLE