TECHNICAL UNIT DAVIS-LYNCH INC. TYPE 778-MC & 777-HY STAGE COLLAR JCE 02/17/03. FILE: 778-MC TECH NEW.doc REV. 1 Page 1 of 6 DAVIS

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FILE: 778-MC TECH NEW.doc REV. 1 Page 1 of 6 DAVIS

FILE: 778-MC TECH NEW.doc REV. 1 Page 2 of 6 DESCRIPTION In the process of cementing a casing string of an oil or gas well, it may be desirable or necessary to pump the cement in two stages. In order to do this, a mechanical or hydraulic stage collar is necessary to allow access to the casing annulus at some point in the middle section of the casing string. The type 778-MC stage Collar allows access to the annulus by dropping or pumping down an opening device. This device seats in the opening sleeve and with application of pressure, the sleeve shifts downward exposing the ports to allow cement circulation. Cement can then be displaced out the ports with a closing plug, which will land on a seat in the closing sleeve. With application of pressure, this sleeve shifts downward, sealing off the cementing ports. The tool now has pressure integrity. The type 777-HY hydraulic stage collar requires no opening device; merely the application of internal casing pressure activates the differential-piston opening sleeve shifting it downward exposing the cementing ports. Cement can then be displaced out the ports with a closing plug, which will land on a seat in the closing sleeve. With application of pressure, this sleeve shifts downward, sealing off the cementing ports. The tool now has pressure integrity. Both tools can be drilled out after completion of the cementing operations, leaving no I.D. restriction.

FILE: 778-MC TECH NEW.doc REV. 1 Page 3 of 6 Fig. 1: Running In Hole Fig. 2: Opened Position Fig. 3: Closed Position TYPE 778-MC STAGE COLLAR OPERATIONAL SEQUENCE Fig. 1: Running In Hole Pin and Box threads are identical to the casing threads. Stage collar integral connection is designed for gas tightness. Seal on opening sleeve provide internal and external pressure integrity across the fluid ports. Fig. 2: Opened Position Opening device has landed and, after pressure is applied, the lower set of shear balls is broken and the sleeve shifts downward to uncover the fluid ports. Pumping operations can now be conducted through the stage collar. Fig. 3: Closed Position The closing plug has landed and, after pressure is applied, the other set of shear balls is broken and the sleeve shifts downward, shutting off the fluid ports. Double seals above and below the ports provide pressure integrity, and a lock ring secures the sleeve in the permanently closed position.

FILE: 778-MC TECH NEW.doc REV. 1 Page 4 of 6 Fig. 1: Running In Hole Fig. 2: Opened Position Fig. 3: Closed Position TYPE 777-HY STAGE COLLAR OPERATIONAL SEQUENCE Fig. 1: Running In Hole Pin and Box threads are identical to the casing threads. Stage collar integral connection is designed for gas tightness. Seal on opening sleeve provide internal and external pressure integrity across the fluid ports. Fig. 2: Opened Position Pressure is applied against the landed and sealed first-stage plug, breaking the lower set of shear balls to allow the sleeve to shift downward and uncover the ports. Pumping operations can now be conducted through the stage collar. Fig. 3: Closed Position The closing plug has landed and, after pressure is applied, the other set of shear balls is broken and the sleeve shifts downward, shutting off the fluid ports. Double seals above and below the ports provide pressure integrity, and a lock ring secures the sleeve in the permanently closed position.

FILE: 778-MC TECH NEW.doc REV. 1 Page 5 of 6 DAVIS STAGE COLLAR STRESS ANALYSIS (1) BODY (1) BURST (1) COLLAPSE (3) MAX. SIZE MAT'L YIELD STR. RESISTANCE RESISTANCE TORQUE (LBS.) (PSI) (PSI) (FT-LBS.) 3 1/2 C-95 325,059 14,250 14,890 5,526 3 1/2 L-80 273,734 12,000 12,539 4,653 3 1/2 P-110 376,384 16,500 17,241 6,399 4 1/2 C-95 469,477 13,874 12,808 7,981 4 1/2 L-80 395,349 11,683 10,786 6,721 4 1/2 P-110 543,605 16,065 14,830 9,241 5 C-95 675,326 15,356 11,728 11,481 5 L-80 568,696 12,931 9,876 9,668 5 P-110 781,956 16,065 13,580 13,293 5 1/2 C-95 579,388 12,513 11,535 9,850 5 1/2 L-80 487,906 10,537 9,714 8,294 5 1/2 P-110 670,870 14,489 13,356 11,405 6 5/8 C-95 737,109 12,266 9,059 11,057 6 5/8 L-80 620,723 10,329 7,629 9,311 6 5/8 P-110 853,495 14,203 10,489 12,802 7 C-95 822,371 13,151 10,653 12,336 7 L-80 692,523 11,075 8,971 10,388 7 P-110 952,219 15,227 12,335 14,283 7 5/8 C-95 902,422 12,808 10,421 13,536 7 5/8 L-80 759,934 10,786 8,776 11,399 7 5/8 P-110 1,044,910 14,830 12,066 15,674 8 5/8 C-95 1,182,443 10,832 9,893 17,737 8 5/8 L-80 995,741 9,122 8,331 14,936 8 5/8 P-110 1,369,144 12,542 11,455 20,537 9 5/8 C-95 1,374,801 10,237 9,232 20,622 9 5/8 L-80 1,157,727 8,621 7,774 17,366 9 5/8 P-110 1,591,875 11,853 10,690 23,878 10 3/4 C-95 1,840,613 9,266 8,529 27,609 10 3/4 L-80 1,549,990 7,803 7,182 23,250 10 3/4 P-110 2,131,236 10,729 9,876 31,969 11 3/4 C-95 1,978,468 8,480 7,150 29,677 11 3/4 L-80 1,666,078 7,141 6,021 24,991 11 3/4 P-110 2,290,858 9,819 8,279 34,363 13 3/8 C-95 2,338,287 7,758 7,188 35,074 13 3/8 L-80 1,969,084 6,533 6,053 29,536 13 3/8 P-110 2,707,491 8,983 8,323 40,612 16 K-55 1,707,956 5,307 3,511 25,619 16 L-80 2,484,300 7,719 5,107 37,265 18 5/8 K-55 2,240,437 4,165 3,435 33,607 18 5/8 A-106 1,833,085 3,408 2,810 27,496 18 5/8 N-80 3,258,818 6,058 4,996 48,882 20 K-55 2,787,567 4,342 3,253 41,814 20 A-106 2,280,737 3,553 2,662 34,211 (1) USING FORMULAS FROM API BULLETIN 5C3 (3) STD. HANDBOOK FOR MECH. ENGINEERS TABLE 5.2.11 "TORSION OF SHAFTS" * ACTUAL MINIMUM YIELD STRENGTH WILL BE EITHER THE BODY YIELD STRENGTH OR THREAD MANUFACTURED ON CUSTOMER'S END. WHICHEVER IS LESS. *BURST OR COLLAPSE PRESSURES ARE LIMITED BY SEAL CAPABILITIES, FOR PRESSURE RESISTANCE ABOVE 9,000 psi CUSTOM-ORDERED SEALS ARE REQUIRED

FILE: 778-MC TECH NEW.doc REV. 1 Page 6 of 6 TYPE 778-MC STAGE COLLAR OPERATIONAL DATA Type 778 MC Type 778 MC-3S Nominal Maximum Weight Drillout Overall Opening Closing Opening Closing Opening Closing Casing Size Diameter Range I.D. Length Pressure Force Pressure Force Seat I.D. Seat I.D. Seat I.D. Seat I.D. (Inches) (Inches) (Lbs.) (Inches) (Inches) (PSI) (Lbs.) (PSI) (Lbs.) (Inches) (Inches) (Inches) (Inches) 2-7/8 3.660 6.4-7.8 2.440 24.75 1000 4676 1500 9,636 1.750 2.125 --- --- 3-1/2 4.380 7.7-14.1 2.930 24.75 1200 8107 1500 15,481 1.750 2.125 --- --- 4-1/2 5.562 9.5-13.5 3.950 27.25 1200 21,000 1500 25,000 2.750 3.062 2.250 2.500 5 6.090 11.5-15.0 4.300 27.25 1200 26,000 1500 33,000 2.750 3.250 2.250 2.500 5-1/2 6.625 14.0-17.0 4.892 27.38 1200 32,000 1500 39,000 3.750 4.062 2.750 3.062 20.0-23.0 4.810 6-5/8 7.875 20.0-28.0 5.030 28.50 1200 45,000 1500 57,000 4.625 5.000 3.750 4.187 7 8.275 17.0-23.0 26.0-29.0 32.0-38.0 6.276 6.200 6.004 28.50 1200 49,000 1500 62,000 4.625 5.125 3.750 4.250 7-5/8 8.937 26.4-33.7 6.825 28.88 1200 59,000 1500 74,000 4.750 5.500 3.750 4.250 8-5/8 10.125 24.0-32.0 8.000 29.00 1000 71,000 1200 85,000 5.750 6.750 4.750 5.250 9-5/8 11.125 32.3-40.0 8.921 29.50 1000 78,000 1200 94,000 7.000 7.750 5.750 6.500 43.5-53.5 8.600 10-3/4 12.375 40.5-55.5 9.950 30.88 1000 100,000 1200 120,000 8.000 8.750 7.000 7.500 11-3/4 13.375 42.0-54.0 10.825 30.88 1000 114,000 1200 137,000 8.000 8.750 7.000 7.500 13-3/8 15.000 54.5-61.0 12.515 30.88 900 133,000 1000 148,000 10.500 11.250 8.000 9.750 68.0-72.0 12.415 16 18.000 65.0 15.125 32.38 500 90,000 700 126,000 13.125 14.000 --- --- 75.0-84.0 14.880 18-5/8 20.800 87.50 17.755 32.88 400 99,000 600 149,000 14.500 16.000 --- --- 20 22.000 94.0-133 18.73 32.88 400 110,000 600 165,000 16.000 17.500 Note: 4-1/2 thru 6-5/8 have 4-1 Ports. 7 thru 13/38 have 6-1-1/8 Ports. 16 thru 20 have 10-1-1/8 Ports. TYPE 777-HY HYDRAULIC STAGE COLLAR OPERATIONAL DATA Nominal Maximum Weight Drillout Overall Opening* Closing Opening Closing Opening Pressure Casing Size Diameter Range I.D. Length Pressure Force Pressure Force Seat I.D. Seat I.D. w/ Free-Fall Device (Inches) (Inches) (Lbs.) (Inches) (Inches) (PSI) (Lbs.) (PSI) (Lbs.) (Inches) (Inches) (PSI) 3-1/2 4.380 7.7-14.1 2.930 24.75 2000 6,716 1500 15,481 1.375 2.125 1200 4-1/2 5.562 9.5-13.5 3.950 27.25 3000 14,000 1500 25,000 2.500 3.125 1100 5 6.090 11.5-15.0 4.300 27.25 3000 18,000 1500 33,000 2.625 3.250 1100 5-1/2 6.625 14.0-17.0 4.892 27.38 3000 23,000 1500 37,000 3.060 4.062 1200 20.0-23.0 4.810 7 8.275 17.0-23.0 6.276 28.50 2600 28,000 1500 57,000 4.250 5.125 1000 26.0-29.0 32.0-38.0 6.200 6.004 7-5/8 8.937 26.4-33.7 6.825 28.88 2600 41,000 1500 68,000 4.250 5.500 1000 8-5/8 10.125 24.0-32.0 8.000 29.00 2500 48,000 1500 84,000 5.375 6.750 1000 9-5/8 11.125 32.3-40.0 8.921 29.50 2400 50,000 1500 111,000 6.300 7.750 1000 43.5-53.5 8.600 10-3/4 12.375 40.5-55.5 9.950 30.88 2300 63,000 1500 130,000 7.000 8.750 1000 11-3/4 13.375 42.0-54.0 10.825 30.88 2300 94,000 1500 156,000 7.000 8.750 1000 13-3/8 15.000 54.5-61.0 68.0-72.0 12.515 12.415 30.88 2000 96,000 1200 161,000 8.000 11.250 900 *Standard Opening Pressure. Other pressures available on special order. Note: 4-1/2 thru 6-5/8 have 4-1 Ports. 7 thru 13/38 have 6-1-1/8 Ports. 16 thru 20 have 10-1-1/8 Ports.