Reelwell Drilling Method HOLE CLEANING CONTROLLED PRESSURE HYDRAULIC WOB - drilling beyond boundaries OTC Spotlight Award winner 2009, 2010 and 2011 and ONS Innovator Award winner 2010 2 The solution for challenging wells The Reelwell Drilling Method (RDM) is a new solution for drilling exploration and production wells. RDM enables drilling of well sections with challenging pressure conditions, hole cleaning issues and for drilling to targets beyond conventional reach. 3 EXTENDED REACH DRILLING (ERD) HORIZONTAL DRILLING MANAGED PRESSURE DRILLING (MPD) UNDER BALANCED DRILLING (UBD) >> >> >> Conventional drilling Major benefts from RDM 10 km 20 km Start 4 FLOW CONTROL UNIT (FCU) MUD RETURN MUD SUPPLY ROTARY CONTROL DEVICE (RCD) BLOW OUT PREVENTER (BOP) CASING BOTTOM HOLE ASSEMBLY (BHA) DUAL DRILL STRING (DDS) Return of cuttings through inner string TOP DRIVE RDM Technology RDM - BASIC SYSTEM The RDM is based on the use of a Dual Drill String where the drill string annulus carries the drilling fuid to the bit, and the return fow to surface is through a concentric inner string. HOLE CLEANING The cuttings are removed above the BHA leaving a clean hole. PRESSURE CONTROL A small active fuid system volume reduces ECD spikes and loss of drilling fuid. The system uses MPD. FLOW CONTROL UNIT (FCU) Control valve arrangement, operates DFV TOP DRIVE ADAPTER (TDA) Swivel for drill fuid in and out DUAL FLOAT VALVE (DFV) Double barrier on both channels, entry holes 5 PISTON ISOLATED ANNULAR FLUID HEAVY ANNULAR FLUID FLUID PARTITION UNIT LINER COUPLINGS & LINER MWD/LWD TOOLS 2-WAY DATA Future option: HYDRAULIC WOB The sliding piston is inserted as part of the drill string, isolating well bore fuids. Hydraulic pressure behind the piston pushes the bit forward. The solution is independent of gravity, and allows for extended horizontal reach. Future option: HEAVY OVER LIGHT The Reelwell Multi Gradient Drilling System allows for use of a high density passive fuid in the wellbore annulus and a lighter active circulating fuid - heavy over light. Benefts include safer drilling operation, fewer casing strings and increased horizontal reach. Future option: LINER DRILLING The liner is transported to the end of the section by means of the drill string. Simultaneous drilling and insertion of liner enables isolation of problem zones. Future option: TELEMETRY SYSTEM Using the dual drill string as a coaxial cable, the system enables two-way high speed data communication to downhole MWD/LWD tools. Real time downhole data is important for safe and precise drilling and provides the opportunity for geosteering. >> >> >> >> 6 Conventional drilling With RDMs unique well control, lost circulation is reduced. Ef cient removal of cuttings near the bit greatly reduces the potential for stuck pipe. 6 The optional piston provides hydraulic WOB. Conventional drilling 7 Questions & Answers FUNCTIONALITY It is the only return fow path for the system. The well annulus is sealed of with a 1. Rotating Control Device (RCD) on top of the BOP. The pipe-in-pipe system requires a lower drilling fuid circulation volume to remove 2. cuttings - RDM uses approximately 50 % of the volume used by conventional drilling. Typical fow rates for RDM are 600-1200 l/min. The holes can be backfushed by pumping down the inner pipe. 3. The active fuid can be a underbalanced fuid. The passive fuid in the well annulus 4. could have a diferent density than the active fuid, e.g. a kill fuid. This depends on the well depth but a rule of thumb is that cuttings transport takes 5. 5-7 min per 1000 m. F ETY Well control is handled conventionally by circulating the kick up the annulus and 6. having the ability to pump down both channels in the dual drill string. The dual drill string can be cut of by the BOP shear ram and this has been verifed by 7. tests. EQIPMENT The Dual Drill String is a conventional 6 5/8 drill pipe where each joint is equipped 8. with 3 innerpipe (ID=3). The DDS is handled according to normal procedure on the drillfoor. The BHA is made up of standard conventional components, but motor and bit need 9. to be optimized for the lower fowrates. Both tri-cone and PDC bits can be used. However, it is important to select bits and 10. nozzle confgurations that suit the actual fow rate. Yes, the system can use either a RSS or mud motor optimized for lower fowrates. 11. Yes, the system has been used with diferent brands of MWD tools. 12. FUNCTIONALITY What makes the mud with rock 1. cuttings go up the inner pipe? RDM uses a small inner pipe. Does 2. that make the ECD higher? What if the fow X-over (entrance) 3. holes in the DFV get plugged? Can the passive well annulus fuid 4. have a diferent density than the active, circulating fuid? How long does it take to clean out 5. the well when you stop drilling - bottoms up? SAFETY How is well control handled? 6. Can the Dual Drill String be sheared 7. by the BOP shear ram? EQUIPMENT Are there any diferences in the 8. handling of Dual Drill String compared to conventional drill strings? Is the Bottom Hole Assembly diferent 9. from conventional solutions? Is it possible to use tri-cone and PDC 10. bits? Can the system use either RSS or 11. mud motors for directional drilling? Can standard MWD tools be used? 12. 8 Dual Drill String - same handling as normal Piston is part of Dual Drill String Flow Control Unit with control panel Top Drive and Top Drive Adapter Dual Float Valve is inserted right above BHA EXPERIENCE AND INVENTORY: The Reelwell Drilling Method (RDM) has successfully been feld tested in a shale gas production well for Shell Canada. 99 10 km 20 km Conventional reach RDM more than doubles the reach, thereby quadruples the potential drainage area Extended Reach Drilling beyond 20km A JIP DEMO 2000 PROJECT Reelwell continues to innovate and has together with international partners embarked on an Joint Industry Project (JIP) on Extended Reach Drilling (ERD), ultimately aiming for a drilling reach beyond 20 km. The main goal is to verify the RDM capability of safely and ef ciently drilling ERD wells for improved recovery of petroleum resources, compared to conventional drilling methods. Outstanding ERD performance is expected due to: Signifcant reduction of torque and drag Improved downhole pressure and ECD control Reduced buckling including downhole traction The project is funded in a JIP by several international oil companies and the Demo2000 program of the Research Council of Norway. The project duration is 2 years, starting from January 2011. >> >> >> 10 ABOUT THE COMPANY Reelwell was established to develop and provide the Reelwell Drilling Method (RDM). RDM originates from R&D on coiled tubing drilling performed by the founder Dr. Ola M. Vestavik. The vision is drilling beyond boundaries. Reelwell ofers a specialist service adding value beyond conventional drilling. The head of ce is located in Stavanger, Norway. Reelwell BOARD OF DIRECTORS Trevor Burgess Chairman of the Board Jostein Aleksandersen - Director Thomas Bates - Director Geir Jssang Director Dr. John L. Thorogood Director Entering the operational phase through commercial well with Shell Canada RTS receives OTC Spotlight Award Lime Rock Partners invest to facilitate growth RDM with RTS receives ONS 2010 Innovation Award Developing equipment and verifying main principles, validation testing. R&D supported by The Research Council of Norway, Statoil and Shell. 2005 - 2008 RDM successfully used for drilling an onshore well RDM receives OTC (Ofshore Technology Conference) Spotlight On New Technology Award 2009 >> >> >> >> 2004 Reelwell founded >> >> 2011 Reelwell Multi Gradient Systems (RMGS) receives OTC Spotlight Award JIP on ERD beyond 20 km commences QA certifed through ISO 9001-2008 Planning and drilling of commercial wells 2010 >> >> >> >> >> >> MANAGEMENT TEAM Ola M. Vestavik CTO Jostein Aleksandersen CEO Harald Syse Engineering Manager Ove Hole Sales & Marketing Manager Einar G. Christensen CFO TIMELINE 11 Copyright Reelwell 2011. Computer renderings by Yellowflm, illustrations, layout and text by Reelwell. Content may not be reproduced without a written permission issued by Reelwell. RDM KEY FEATURES 12 Drilling beyond boundaries To Reelwell, drilling beyond boundaries means adding value beyond conventional drilling. Reelwell intends to expand the existing boundaries of drilling processes, with the ultimate aim of recovering more hydrocarbons in a safe, eco-friendly and cost ef cient manner. www.reelwell.com