Drilling Fluids & Services

A Newpark Company

Avapolyoil / DeepDrill System

Presentation to Company Name

Drilling Fluids & Services

A Newpark Company

What Is Avapolyoil / DeepDrill?

The Avapolyoil / DeepDrill fluid system represents our response to the drilling industries need for a high performance water-based alternative to oil- and synthetic-based fluids.

Drilling Fluids & Services

A Newpark Company

What Is Avapolyoil / DeepDrill?

 DeepDrill/Avapolyoil system is an innovative, fieldproven drilling fluid used effectively throughout North America, including deep-water gulf of Mexico drilling programs; It comprises a number of benefits derived from its unique membrane forming water-based chemistry  DeepDrill/Avapolyoil can be used as an oil-based fluid replacement where overall drilling costs must be controlled and disposal costs minimized  DeepDrill/Avapolyoil system is an environmentally friendly, inhibitive water-based fluid using basic fluid system technology to provide a stable well bore and enhance penetration rates and return permeability 2

Drilling Fluids & Services

A Newpark Company

What Is Avapolyoil / DeepDrill?

 This system can be modified to accommodate almost any well bore application on land or offshore  It has been successfully utilized in deep, cold-water applications and under conditions of high temperature and density  Gauge or near gauge holes, as seen from caliper logs, are typical for this fluid system  Torque and drag are significantly reduced, even in deviated well bores  Shale stability is enhanced and BHA and bit balling are significantly reduced 3

Drilling Fluids & Services

A Newpark Company

What Is Avapolyoil / DeepDrill?

 Methyl glucoside (MeG) and polyglycerol, together with the remaining constituents of the formulation, have demonstrated
Excellent Shale Stability Superb Lubricity Enhanced Drill Rates, and Exceptional Contaminant Resistance

Drilling Fluids & Services

A Newpark Company

Where Has It Been Used?

 United States / Canada / North Africa / Mediterranean

Onshore Offshore Deepwater

>90 wells >50 wells >15 wells

 Highest Mud Weight 18.2 ppg (2.18 s.g.) in 6 hole size  Smallest Hole Size 4.5 hole with 16.1 ppg (1.9 s.g.) mud weight  Hottest Hole 385F (196C) with 17.6 ppg mud in 6.5 hole
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Drilling Fluids & Services

A Newpark Company

What are the Advantages?

1. Minimizes Torque & Drag
Acts as a lubricating agent on metal to metal boundaries and metal to formation interactions Polyglycerols give significant improvements in lubricity; the resultant decrease in torque and drag has been achieved by adding the product to conventional WBM

2. Enhances Inhibitive Qualities & Improves ROP

Delivers the active properties of a shale inhibitor by decreasing shale sloughing and reducing the hydration of reactive formations. Producing a thin, tough filter cake Prevents bit balling and increases daily footage drilled. Typically equal or exceed those of oil or synthetic-based fluids.
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Drilling Fluids & Services

A Newpark Company

What are the Advantages?

3. Increases Wellbore Stability
Due to formulation, DeepDrill / Avapolyoil can be used when drilling through water sensitive shale formations, increasing well bore stability

4. Increases Return Permeability

Enhances formation return permeability by developing a semipermeable membrane between the formation and the drilling fluid. This membrane, in effect, permits the flow of formation connate water molecules into the mud while retarding movement of other ions into the fluid. This results in reduced pore space clay hydration and enhanced permeability
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Drilling Fluids & Services

A Newpark Company

What are the Advantages?

5. Disposal Operations
This system, including all of its components are safe for offshore applications and passes ecotoxicological tests. Environmentally compatible, typically having an LC50 exceeding 300,000ppm HSE risks are significantly reduced. Being a water-based fluid, disposal and cleanup costs are reduced. Waste disposal is simplified with increased options for waste handling

6. Gas Hydrate Suppression

Independent studies have shown the effectiveness of the major DeepDrill / Avapolyoil components, polyglycerol and methyl glucoside, as hydrate suppressors
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Drilling Fluids & Services

A Newpark Company

Science Behind Avapolyoil / DeepDrill

Goal:
Create an effective semi-permeable membrane in order to minimize the transfer of ions between the drilling fluid and the formation Even if the activity of the drilling fluid is lower than the formation, the exchange of ions tends to destabilize the shale Destabilizing ionic reactions within a shale can be minimized if a suitable nonionic polyol is used to reduce the activity of a freshwater drilling fluid so that water is extracted from a shale by chemical osmosis

Drilling Fluids & Services

A Newpark Company

Diffusion Osmosis
No Membrane Water Based Fluid / Sand Interface adf > as
(Fewer total Ions in drilling fluid) Water diffuses from drilling fluid to sand formation

adf < as
(More total Ions in drilling fluid) Water diffuses from sand formation to drilling fluid

Water

Hydrated ions from each species diffuse from high to low concentration

Water

Ions

Ions

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Drilling Fluids & Services

A Newpark Company

Diffusion Osmosis
Ideal Semi-Permeable Membrane Hydrocarbon Based Drilling Fluid / Shale Interface adf > as
(Fewer total Ions in drilling fluid) Chemical osmosis transfers water from drilling fluid to shale formation

adf < as
(More total Ions in drilling fluid) Chemical osmosis transfers water from shale formation to drilling fluid

Water

Ideal membrane prevents diffusion of ions

Water

Ions

Ions

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Drilling Fluids & Services

A Newpark Company

Diffusion Osmosis
Non-Ideal Semi-permeable Membrane Water Based Fluid / Shale Interface adf > as
(Fewer total Ions in drilling fluid) Chemical osmosis tends to transfer water from drilling fluid to shale formation

adf < as
(More total Ions in drilling fluid) Chemical osmosis tends to transfer water from shale formation to drilling fluid

Water

Ions

Diffusion osmosis transfers ions and associated water for each species from high to low concentration even if adf = as

Water

Ions

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Drilling Fluids & Services

A Newpark Company

Calcium Chloride - 0.54 Aw -0.025 mL/hr

Oil Emulsion - Calcium Chloride Internal Phase - 0.89 Aw -0.064 mL/hr

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70% Methyl Glucoside / Ester Lubricant / Lignite adf = 0.80

Drilling Fluids & Services

A Newpark Company

Typical System Makeup

 Avapolyoil / DeepDrill 5 20% Primary Shale Inhibitor  Avaperm 0.5 1.0% Supplemental Shale Inhibition (Depending on shale type being drilled)  Avagreenlube 1 2% Lubricant / Emulsifier  AvaLig NE 20 25 kg/m3 Humalite Based Rheological Control  Visco XC 84 Primary Viscosifier
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1 2 kg/m3

Drilling Fluids & Services

A Newpark Company

Case Histories

 Albania  Green Canyon Gulf of Mexico, USA

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Drilling Fluids & Services

A Newpark Company

Albania Project
 Located near the Adriatic coast of Albania above the city of Vlora  First DeepDrill / Avapolyoil well drilled in Europe  Drilled to 5360m (17,585 ft)  1 year project completed March 2005
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Drilling Fluids & Services

A Newpark Company

Past Experience
The operator previously drilled an offshore well in the same block using a KCl-Polymer system While drilling the Miocene section, rheological problems and hole stability were encountered At elevated mud weights, dispersants were necessary to control mud properties Apart from expecting high mud weights and reactive shale, very little was known about the area

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Drilling Fluids & Services

A Newpark Company

Operator Objectives
From past experience, it was realized that a highly inhibitive system would be needed For environmental reasons, OBM could not be used A system capable of reaching high mud densities, while maintaining rheological properties and hole stability
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Drilling Fluids & Services

A Newpark Company

Albania Project
 16 Section

Initially drilled to TD depth in 28 days with ROPs averaging 5-10m/hr Hole remained stable throughout the interval (44 days) with no indications of swelling or sticky gumbo shale in the hole or at the shakers Lab results showed clay to be highly reactive 28.5 CEC meq/100g (washed) 29.2 CEC meq/100g (unwashed)
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Drilling Fluids & Services

A Newpark Company

Albania Project
 16 Section

Dilution rate came in below programmed 5.2 vs 5.9 programmed Volume built was 300m3 less than programmed with MBT values never exceeding 45 kg/m3 (16 ppbe) No logging or casing problems were experienced

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Drilling Fluids & Services

A Newpark Company

Albania Project
 12 1/4 Section

Provided a well inhibited hole throughout the interval, despite the extended time the hole was left open (over 100 days) No problems experienced while maintaining fluid properties with mud weights of 2.05 s.g. (17.1 ppg) The only major hole problem was 1 incident of stuck pipe which pulled free when a stuck pipe pill was spotted after 4 days of being stuck
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Drilling Fluids & Services

A Newpark Company

Albania Project
 12 1/4 Section

Overall system requirements were met. A stable, well inhibited well bore was provided allowing the formation to be left uncased for an extended length of time No environmental risk or disposal costs normally associated with an oilbase mud system

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Drilling Fluids & Services

A Newpark Company

Green Canyon
Gulf of Mexico

1800 WD

9 5/8 Set @ 9650

Original hole and 2 sidetracks were drilled with conventional SW/PHPA muds. Swabbing, lost returns & packing off were encountered continuously throughout the 8 1/2 interval. Rates of penetration were hampered by hole instability. Based on previous LOTs and other WBM problems (severe swabbing, ballooning, packing off, unable to stabilize the hole) operator desired SBM for next sidetrack. Modeling commenced to determine feasibility of using SBM
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Drilling Fluids & Services

Newpark Drilling Fluids, Inc.
Hydraulics Analysis Report
Synthetic Based Mud (SBM) Mud Weight= 600 rpm= 00 rpm= rpm= 10 Sec Gel= GPM= Surface Losses= Stndpipe PSI= Gauge Reading= Bit Size= TVD= Calculated MD= Calc. PSI Drop= Diff (Calc-Gauge)= Add't PSI Loss=

A Newpark Company

Bit Hydraulics
Bit Jets (max=12) 18 18 18 18

Cuttings/Hole Cleaning Analysis

Diameter= 0. R P= 0 Thickness= 0. Corrected Bottom Hole SBM Properties for Temp/PSI SD= 1 .7 PV= 9 600rpm= 96 YP= 18 00rpm= 7 CD= 16. 1 rpm= 8 SD at shoe 1 .7 CD @ Shoe= 16. 16.23 Ka= na= 0. 9 0. 6

Annular Hydraulics
Interval DP in Riser DP in 9 /8" Csg DP/HWDP in H BHA in H

(feet) 12,289

(inches)

(inches)

(ft/min)

(centipoise)

Total Annular PSI Loss=

(feet) 12,289

(inches)

(ft/sec)

(centipoise)

Total Drillstring PSI Loss= With additional Losses=

6 7 1, 97

24

 

 

 

.76 .000 .000

6,0 9 , 9 1 , 7

 

   

    

   





Interval " DP " HWDP 6 / " BHA

Length 11, 9 887 1

Pipe ID

ID Vel 7.19 6. 18.1

ff. Viscosity 78.0 80.8 .

Rep

Drillstring Hydraulics

np=

0.7

Kp=

.68

RepL=

Formula AA= 0.076120151 Formula BB= 0.26771321 RepT= , 0 , 0 anning riction actors PSI low Type Lam Trans Turb Loss Turb 0.007 977 1.1 Turb 0.007 667 .9 Turb 0.00 960 61.0

 

 

06 07 67

608 1, 6 1, 0 , 0

    

 

   

   

  

   

Length 1, 6 8,1 6 , 6 1

ff. Viscosity 71 96 11 6

Rea

Riser Booster Pump GPM= Hole Size Pipe Size 19.7 0 .000 8. 1 .000 8. 00 .000 8. 00 6.7 0

0 Ann Vel

0.071196 low Type Lam Lam Lam Lam

anning riction actors Lam Trans Turb 0.0 9 0.01 0.0178 0.0100

PSI Loss .1 . 90. 0.0

 

  



  

1 , 89 1 , 89 , -1, 76 8 0

,800 8. 00

I /in = .1 % of PSI= 10.6 Tot. sys HHP= 19 % HHP at bit= 10.6 Trip Data Stand Length= 9 ft Seconds/Stand= 90 sec Surge CD= 16.17 ReaL=

Jet # = 7 Jet #8= 8 Jet # = 7 Jet #9= Jet # = 7 Jet #10= Jet # = 7 Jet #11= Jet #6= 8 Jet #1 = (minimum Jets calculated) 17.2 Swab CD= 1 .18 17. Frac Grad= 15.4 orm B= 0.3028844 Pore Psi= 1 . ReaT= ,686

 

1 ,800

0.96 0

"

400 00 125

    

" !

BHT= 162 Solids%= 1.0 % Water%= 14.0 % il %= .0 %

/L Temp= 70 Amb. Temp= 80 Test Temp= 1 0

An= Vn= (PSI (bit)= HHPb= HHPb/in = Imp. rce=

(Jets above) 0.9940 128.8

ptimization of Jets Max PSI for bit= 1,810 # of Jets req'd?= 8 Max H.H.P./I. ./B TH? b ptimum Constant= 0. 9 0. 18 Optimum T A= Jet #1= 7 Jet #7=

INPUT INFORMATION (blue values only) 15.6 ppg 1 .6 ppg PV= 26 64 64 YP= 12

 

 

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Drilling Fluids & Services

A Newpark Company

Green Canyon
Drilling with SBM
Drilled out bottom of 9 5/8 and found little or no cement Obtained L.O.T. of 16.8 EMW (Offsets had 17.2-19.2 EMW) Based on modeling, decided to displace to 15.6 ppg SBM Drilled out with directional assembly for 350 while attempting to kick off to 35 Lost returns with 16.1 EMW recorded on PWD (inline with model predictions) Spotted various LCM pills with no success at regaining circulation Set RTTS and cemented shoe and rat-hole
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Drilling Fluids & Services

A Newpark Company

Green Canyon
Drilling with Complex Polyol Fluid
Displace to 15.1 ppg complex polyol fluid, obtained a

L.O.T. of 16.3 EMW (0.5 ppg LESS than original L.O.T. for this sidetrack) Used the same drilling assembly as the SBM interval Reclaimed cemented rat-hole, control drilled at 50-80 ft/hour Drilled to 11,300, set packer and evacuated (Hurricane) for a total of 6 days

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Drilling Fluids & Services

A Newpark Company

Green Canyon
Drilling with Complex Polyol Fluid
Tripped to bottom, after evacuation and raised MW to

15.6 ppg Drilled to TD with the same MW that the SBM had when losses were encountered without losing any mud Exhibited lower ECDs while pumping at rates as much as 40% higher than SBM Logged hole (gauge) and ran 7 liner without incident or losses

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Drilling Fluids & Services

P D Data

A Newpark Company
%

9500

D is p la c e to 10000 C o mp le x P o ly o l 10250
9750 10500 10750 Dept (MD)

Lo s t re tu rns w/S BM
PWD Data-CyberDrill PWD Data-DeepDrill Surf MW-CyberDrill Surf MW- DeepDrill

P W D 1 6 .1 @3 5 0 gp m

11000 11250 11500

Evacuate for Tropical Storm (Left ole for 6 days)

11750 12000 12250

C o mp le x P o ly o l

flo w ra te s = 4 4 0 to 4 9 0 gp m
15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 16.0 16.1 16.2 16.3 EMW (ppg)

12500 15.0

'

&

Calculated EMW-NDF Models

S a me M W a s S BM tha t lo s t re tu rns

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Drilling Fluids & Services

A Newpark Company

Green Canyon
Summary
Established ability to reclaim hole that had been invaded with SBM and

NOT lose returns, despite a lower shoe test Matched ROP of SBM while drilling and sliding with same PDC bit and BHA Left hole uncirculated for 6 days and maintained superior hole stability, demonstrated by tripping to bottom Demonstrated lower ECDs, even while pumping at 40% higher flow rates Drilled gauge hole No signs of gumbo, distinct cuttings returned throughout the interval Drilled hole that same density SBM could not without severe losses!
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Drilling Fluids & Services

A Newpark Company

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