Completion Solutions Inc. - PDF Free Download

Completion Solutions Inc. Simple Designs That Simply Work! Company Introduction Dec 2012 1

Who is Completions Solutions Inc? Founded in 2012 Focused on efficient and economical well bore stimulation (both Open and Cased Hole) Owner is Paul Lee, founder and developer of the PBL sub. Senior leadership all with 25 plus years of industry experience in both drilling and completions

The World Today (Well at least in North America which currently accounts for > than 80 of stimulations world wide) 60 to 70% of Wells are Horizontal 50 to 60% Stimulated with Multistage Fracturing Cost are always an Issue! Growing requirement to be Environmentally sensitive.

Pros and Cons: Open Hole Packers Pros Speed of Use Typically Open Hole provides better inflow Lower Breakdown pressures Proven in Canada Cons Limited to 1/16 Ball Increments (~40 stages) Excess Fluid Required to Land Balls and Clean Liner Balls and Ball Seats May Need to be drilled out (Extra fluid on zone, coil rental) High Cost for equipment Require Dedicated Reamer Run Limited Rubber Volume Installed with Drilling Rig (expensive and slow to pick up) Pressure Drop On Ball Seats No Stage Flexibility once installed Require a full liner and liner hanger 4

Pros and Cons: Cement Plug and Perf Pros Simple Liner installation with cement Unlimited number of stages Forgiving Flexibility on Fracture / Perf location after install Cons Coil tubing required on first stage Excess Fluid to pump Perf guns and Bridge Plugs Composite Bridge Plugs need to be drilled out. (Extra Water on Zone) Quality of Cement in Horizontal? Lots of Trips Slow Limited Entry due to time (how well does this work?) Sealing Potential Producing Formation behind cement and casing 5

Pros and Cons: Cement with Shifting Sleeves and Pros Simple Liner installation Unlimited number of stages Able to use Hydra Jetting to create additional stages Currently one of the Lowest Cost Solution Abrasive Jetting Cons Require Coil Tubing on site Requires predetermined planning on location of Shifting Sleeves Hydra Jetting results in additional fluid on zone Coil Depth and Stimulation rates constrained Requires cemented in liner(?) Complex system Fast(est) Grown Segment in Western Canada? 6

Pros and Cons: Inflates Pros True open hole don t need liner Flexible stage location Unlimited number of stages Flexibility for future well development / intervention Cons Pressure Limitation on Rubber Rubber Elements break and cause hole sticking issues Limited flexibility on stage spacing Control line issues Max flow rate issues 7

What Do the Operators Want? Lower Cost per stage (Price of Oil / Gas ) Higher Stage Count (25 40 stages) More Focused Fracs(Not as Large) Less Water Usage (Both overall usage and into formation) Efficient Fracture Stimulations 20+ in 12 hours Repeatability / Operational Performance Well Bore with Options in the Future (Re-Frac, Water Injections, Water Shut Off, Others?) Overall: Better Wells at a Lower Cost with more options down the road!

Open Hole vs. Cement Liner? Both Proven to work in Western Canada How to Decide? Client Experience Formation Optimization and Response Economics Time Future Well bore plans?

UltraFXMulti-Stage Completions System Surgical in it s Fracture Placement whether Open Hole or Cased Hole 10

Well Bore Construction UltraFX Open Hole UltraFX Cased Hole Multi-Stage Fracture Service Tools Casing Perforating And Fracturing Stimulation Well Bore Enlargement / Clean Up Open Hole Solution Low Cost and Future Flexibility Horizontal Cemented Liner Perforating Offshore Perforating Piston Bully Ripper Reamer Expandable Drive Reamer Supports all Multi-Stage

Multi-Stage Fracturing Innovation Unlimited Stages Flexible Stage Location No Drill Out No Hardware Left down hole Reduced Fluid on Formation More Economical UltraFX Open Hole System No Liner Barefoot completion UltraFX Cased Hole System No Explosives Smooth Full ID liner 12

Key Technology Development Use of Hydraulic Energy and Innovative Design Stacked Piston design on both retrievable Packers and Cutting tool in a cost effective manor. Patent Pending

UltraFXOpen Hole MSS Getting the most of your well.. today and tomorrow 14

System Overview Over 60 Stages on single trip Hydraulic Pressure sets packers and hold during stimulation Max Enlargement ~8 open hole Nothing left downholeafter the stimulation

UltraFXOpen Hole Simple yet Robust Design Hydro Mechanical Compression Packer (PPS) Multiple Chamber Multiple PPS to provide redundancy in Open Hole Isolation

Tool Design Simple, Less than 20 parts per UtraFxPPS Principle Of Operation Multiple Chambers generate a large cumulative force on packers resulting in high sealing force on packers While Fracing Elements remain energizes Drop Pressure and Pull to release Packer

UltraFX OH BHA Set Up Tubing/Coil to Surface Circulation Sub 2 x Pressure Packer System Nozzle Stimulation Sub 2 x Pressure Packer System Ball Value Sub Sub (float) Open Hole Bull Nose

Run UltraFX BHA to desired Stimulation Depth Stage Spacing Variable After TD with drilling rig, activate Piston Bully and back ream horizontal on the trip out of the hole to condition and gauge bore hole, Release Drilling Rig. With Service Rig or Coil Tubing Unit pick up UltraFX BHA and RIH to Stimulation Depth

UltraFX Packers Activated and Stimulation Performed Begin Pumping Pressure Drop across Nozzle Stim Sub activates Pressure Packer System (PPS) creating stimulation Chamber Stimulation is Performed

UltraFX Packers Activated and Stimulation Performed Stop Pumping Removal of Pressure Drop across Nozzle Stim Sub de-activates Pressure Packer System (PPS) BHA is moved to next stimulation depth

Sample Stimulation Less than 20minutes between stimulation 5 m 3 of Acid placed

UltraFX Screen Out in During Stimulation Stop Pumping Reduction in pressure will de-activate packers Pull on Tubing will Open Circulation Sub Pumping can either occur down the drill string or reverse circulate down the annulus to clean out screen out

Hole Conditioning before running equipment: Piston Bully The Piston Bully is Hydro- Mechanically activated by dropping a Steel Activation Ball / Dart Once the ball is seated the tool is pressured up Brass parting pins are sheared Inner Mandrel moves down Allowing Fluid to fill the piston chamber Forcing the PDC Cutter Pistons out with Pressure Drop across the tool

UltraFXCH Cased Hole Multi-Stage Fracturing When Cement and Casing is Required.. 26

UltraFXCased Hole Overview Perforate and stimulate cased wellbores on same trip. Two Main Application: Able to stimulate down backside of tubing / coil Able to isolate single perforation and stimulate down tubing / coil. Able to anchor in open casing

UltraFXCased Hole Operates 100% with hydraulic pressure No tubing movement required to cut casing No Explosives / Perforation Damage Surface Pressure Indication of downhole cut Resets downhole after each cut Up to 40 cuts (safely) on a single trip Conserves fluids as opposed to Abrasivejetting techniques

UltraFXCased Hole Open Hole Packer Liner: Run blank pipe in between packers. Cut and annular fracmultiple stages on a single run with coil tubing. Replaces: Ball & Seats, Sliding Sleeves and Abrasive-jetting Cemented Liner: Cut and annular fracmultiple stages on a single run with coil tubing. Replaces: Abrasive Jetting Technology. Cemented Liner (Perforated): PPT tool can be run without cups or packer to replace conventional perforating prior to selective straddle frac. Can be run on 1.5 or 1.75 coil tubing. Replaces: e-coil, Time Delay and T.C.P. Plug & Perf(Coil Tubing): PPT can be run in conjunction with hydraulic setting tool. Replaces: e-coil, Time Delay, all explosives.

Casing Grades Perforated 114.3 mm, 14.14 kg/m, J-55 114.3 mm, 17.26 kg/m, L-80 114.3 mm, 17.26 kg/m, L-80

Close up of Perforation

Casing Distortion/Roundness Casing Drift Integrity Maintained Smooth cut on ID of Casing Drift maintained

UltraFX CH: Cased Hole Multi-Stage Stimulations Coil Tubing to Surface Coil Connector Blast Joint Circulation Sub Pressure Perforating Tool (PPT) Pressure Packer System (PPS) Pressure Anchor Tool (PAT) Collar Locator Ball Valve Seat Bull Nose 33

UltraFX CH: Cased Hole Multi-Stage Stimulations Run in 15 m past depth of first perforation, Pull up slowly to Locate Collar with Collar Locator Pull up 5 meters and move down 2 meters to close circulation sub Slowly increase pressure to cut casing, dump sub at base of PPT will release pressure providing surface indication of full stroke and casing perforated 34

UltraFX CH: Cased Hole Multi-Stage Stimulations Pull 2 meters up on tubing to release cutter tool and re-set dump sub Move down 4 meters closing circulations sub Slowly increase pressure on coil (no higher than 500 psi) setting Packer and Anchor Slowly increase pressure on annulus opening Circulation Sub Perform stimulation pumping down the annulus, maintain slight flow down tubing during stimulation 35

A Case for Efficiencies 4 Stages per Hour: 45 Stage in <14 Hours Pumping Time Opportunity: Reduce the overall completions cost and increase the well productivity by stimulating the entire length of the horizontal lateral Area: Central Alberta Formation: Banff Stimulation: 15% HCL 5m 3 per stage Rate: 3.36 m 3 /min Challenge: Low Bottom Hole Pressures (15.8MPa) and 156mm Open Hole Result: Utilizing the UltraFXOpen Hole Stimulation system the operator was able to complete his well in record time will keeping his overall completions cost to less than $1 million dollars. One trip and five Pressure Packers System was able to isolate 45 stages. Down hole pressure data confirms diversion on every stage. Well Productivity: Well ranked number 6 for Top IP wells brought on throughout October 2012. 1,126 boe/d on 168 hours with 24% Gas. As reported by AltaCorp Capital Inc.

A Case for Economics 14 Stages < $50,000 for Isolation Opportunity: Reduce the overall completions cost and increase the well productivity by stimulating the entire length of the horizontal lateral Area: South Eastern Saskatchewan Formation: Midale Stimulation: 15% HCL 5m 3 per stage Rate: 2.6 m3/min Challenge: Re-entry previously attempted stimulated with inflates diversion Result: Utilizing the UltraFXOpen Hole Stimulation system the operator was able to complete his well in record time and the lowest possible cost. No cement, no casing and no coil tubing reduced over-all costs allowing 20 stage to be stimulated in less than 12 hours of pumping time while using a service rig. Well Productivity: Increased production 2.5 times from 20 boe/day to 70 boe/day

A Case for Simplicity One Trip: 43 Stages with 4 Packers Opportunity: Re-stimulate a bare foot well that was previously un-successfully stimulated with inflate packers to increase productivity Area: SouthCentral Alberta Formation: Banff Stimulation: 15% HCL 5m 3 per stage Rate: 3.6 m 3 /min Challenge: 156mm Open Hole previously Acid Stimulated, Breakdown at 28MPa Result: Utilizing the UltraFXOpen Hole Stimulation system the operator was able to re-stimulate the well and achieve pressure isolation in the open hole. complete his well in record time will keeping his overall completions cost to less than $1 million dollars. One trip and four Pressure Packers System was able to isolate 43 stages. Down hole pressure data confirms diversion on every stage. Well Productivity: Data not yet available, second well planned

A Case for Low Rate Acid One Trip: 7 Stages Opportunity: Stimulate a bare foot horizontal well in Steen River North Eastern Alberta Area: North Eastern Alberta Formation: Slave Point Stimulation: Synthetic Acid low rate squeeze (Mud Master) Rate: 0.5 m3/min Challenge: 156mm Open Hole with rates of 400 liters / min Result: Utilizing the UltraFXOpen Hole Stimulation system the operator was able to stimulate a new well and achieve acid diversion in the open hole. Down hole pressure data confirms diversion on every stage. Well Productivity: Not Yet Available