ULTRADRIL

High Performance Water-Based Mud

HPWBM Development Drivers (Examples)

Legislation Allows cuttings discharge with SBM but not OBM Does not permit high KCl content in WBM Stricter controls on SBM

Other factors
Very high rig rates Existing WBMs did not match SBM drilling performance WBM offers potential advantages Lower fracture propagation pressure Lower ECDs Lower bbl cost

HPWBM - Design Objectives

Inhibition Improved wellbore stability and drilling performance Clay dispersion/ hydration / accretion / bit balling Does not need KCl

HSE profile
North Sea regulations + ease of handling

Logistics Recyclability + brine phase requirements

Improved performance cf. Glycols and Silicates

Lubricity
Compatibility with elastomers and downhole tools Temperature and density restrictions

Evolution and Components

Evolution of Glycol fluids

glycol Clay

Polyglycerols Polyalkalene Glycols (PAGs) Cloud Point (TAME) glycols Novel chemistry HPWBM

potassium

glycol glycol

ULTRADRIL - Components
Inhibitor (ULTRAHIB): 2-4% v/v Encapsulator (ULTRACAP): 1-2 lb/bbl ROP Enhancer (ULTRAFREE): 2-4% v/v Brine phase FW, SW, KCl, NaCl etc. Others Xanthan, PAC, starch, etc.

ULTRADRIL - Cuttings Recovery

Dispersion Results
100 95 90 85 80 75 70 65 60 55 50 FW Polymer FW Glycol KCl PHPA FW Silicate SW Ultradril HPWBM (SW) KCl Ultradril HPWBM (KCl)

Recovery (%)

ULTRADRIL - Shale Swelling Swellmeter

40 35

30

% Volume Expansion

25

20

Fresh Water FW/Lime KCl/Glycol KCl/Glydril/Hibtrol/IdcapD KCl/PHPA KCl/PHPA FW/K-Silicate FW/Sildril K KCl/Silicate KCl/Sildril HPWBM (KCl) KCl/Ultradril

15

10

0 0 2 4 6 8 Hours 10 12 14 16

Accretion and ROP Enhancement

49.1 18.2

17.8

18.9

39.6

14.1

7.1

32.7

110.5

HPWBM 20% NaCl

Glycol/ PHPA20% NaCl

CaCl2/polymer

91.3

17-inch Bit

Field Trials ECD Simulations

12-inch hole, 16,700ft, 120 rpm, 100 ft/hr, Large shale cuttings
Flow Rate HPWBF (gpm) ESD ECD ECD+C ESD 600 0.11 0.48 0.52 0.14 900 0.11 0.56 0.59 0.14 1200 0.11 0.63 0.65 0.14 SBM ECD ECD+C 0.51 0.55 0.59 0.64 0.66 0.68

8-inch hole, 19,810ft, 120 rpm, 50 ft/hr

Flow Rate HPWBF (gpm) ESD ECD ECD+C ESD 250 0.04 0.30 0.40 0.06 400 0.04 0.35 0.41 0.06 550 0.04 0.40 0.44 0.06 SBM ECD ECD+C 0.44 0.52 0.49 0.54 0.54 0.58

ULTRADRIL vs Silicate in Vietnam ROPs

HPWBM

Silicate

ULTRADRIL vs Silicate in Vietnam Torque

Silicate

HPWBM

Liverpool Bay - Friction Coefficients

Lubricity Comparison - SILDRIL vs. ULTRADRIL Silicate vs HPWBF
0.45 0.4
Coefficient of Friction

Casing Open Hole

0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 12.25-in SILDRIL Silicate 8.5-in SILDRIL Silicate 12.25-in ULTRADRIL HP WBM 8.5-in ULTRADRIL HP WBM

ULTRADRIL Application Analysis

LTOBM vs. HPWBM
Well Name / Field: Operator: Water Depth (ft):

Fluid Cost
Interval Number Open Hole Size (in) Open Hole Length (ft) Drilling Days Surface Volume (bbl) Hole Volume (bbl) Dilution (bbl mud /bbl cuttings) Dilution (bbl/ft) Subsurface Losses (bbl) Total Volume Backloaded/Carried Forward Cost per bbl Total Fluid Cost

LTOBM
1 12 1/4 0 0 0 0 1.5 0.2187 0 0 0 x #VALUE! 2 8 1/2 11500 25 1000 807 1.5 0.1053 0 3018 1807 x #VALUE!

HPWBM
1 12 1/4 0 0 0 0 2.0 0.2916 0 0 0 y #VALUE! 2 8 1/2 11500 25 1000 807 2.0 0.1404 0 3421 #REF! y #REF!

Drilling Time NPT Risk (stuck pipe etc) Offset data Mud cost Clean up cost Containment cost Rig day rate

OBM vs WBM

Cuttings Containment Cost

Cutting Collection Equipment Cost Cutting Collection Engineering Cost Skips Hire Cost Onshore Transport Cost Onshore Disposal Cost Boat Spot Hire Cost Total Cuttings Containment Cost Well Clean Up Additional Rig Time Cost Well Clean Up Chemical Cost Onshore Oily Slops Disposal Cost #REF! #REF! #REF! #REF! #REF! Y Z ? x y z a b c X

Total Cost
Total Well Fluid Related Cost

#VALUE!
LTOBM

#VALUE!
HPWBM

OBM Zero Discharge vs ULTRADRIL

Where does the balance lie on HSE? Safety issues with cranes etc. Working environment vapours and oil mists Disposal of wellbore clean up fluids for OBM

Emissions from boats and thermal treatment plants

Landfill issues special waste sites etc. Potential long term liability issues

Questions?

Cuttings from 8.5-inch hole UKCNS Well 1