An Overview of Horizontal Multi-Stage. Kenneth Stevens, Jim Hill Halliburton

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An Overview of Horizontal Multi-Stage Perforating Kenneth Stevens, Jim Hill Halliburton

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History of Shale Developments 1980 1990 2000 2010 Barnett Discover Develop Mature Woodford First Horizontal well Discover Develop drilled in Barnett Fayetteville Discover / Develop 4 years Haynesville Eagleford Woodford Haynesville Bakken Marcellus Depth (ft) 5,000-13,000 6,000-14,000 10,000-13,500 4,000-11,000 4,000-8,000 Discover/Develop 3 years Thickness (ft) 50-200 100-220 60-300 10-60 50-250 Hydrocarbon Type Oil - Gas Oil-Gas Gas Oil Gas 3 Eagleford 2 years

USA Drilling Activity by Type 1400 Horizontal Vertical 1200 1000 800 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 2010 2011 2012 From Spears & Associates, Inc 4

Measured Depth by Well Type 14000 13500 13000 Horizontal Vertical 12500 12000 11500 11000 10500 10000 9500 9000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 From Spears & Associates, Inc 5

Why Pump Down Perforating? Horizontal Drilling became practical and economical about 2000 Initial completions were time consuming and expensive Each stage required tractor conveyed E-Line guns or Coil Tubing TCP type guns. One two 90000 stages per day considered acceptable 80000 Stimulation 70000 equipment idle between perforation stages 60000 Work in the 50000 Barnett Shale proved Pump Down economic viability 40000 30000 Eliminated 20000 added conveyance methods 10000 Multiple stages 0 per day became practical wireline - 2 stages Tractor - includes Coil Tbg - includes per day wireline costs gun/plug costs 6

Pump Down Services (PDS) offers quick, efficient and cost effective deployment of multi-gun/plug runs for multiple stage completions PDS is a common deployment method used in the USA and Canada primarily for guns and plugs but also for other e-line services method is expanding globally Efficient PDS, depending on depths, now allow up to 5 stages per 24 hour day A typical single E-Line stage consists of Multiple guns (3 foot - 6 spf carriers) Explosive setting tool Composite plug 7

Well directional data should be available and a Cerberus pre-job well model run to review successful tool deployment and recovery PDS requires continuous coordination between E-Line operator and Stimulation providers during the operation Inadequate communication during the pump down service can result in tool string pump off and fishing operations Inadequate flush can allow proppant accumulations in a trough. The proppant can stall and stop the tool string, resulting in a fishing job It is recommended that E-Line units have real time pump pressure and pump rate displays allowing the hoist operator to adjust running speeds (best practice) 8

Most PDS completions are perforated in a geometrical spacing The toe perforated by TCP, provides first PDS capability Each stage is segregated by a composite plug for easy drill out after the well stimulation program is complete 9

Standard E-Line cable longevity can be poor. New mono-conductor cables incorporating improved torque balanced armor packages have greatly improved cable life in long lateral wells PDS produce very loose cable armor packages when total depth is reached. There is no means to stop during the pump down and apply tension for cable conditioning as in vertical wells. Hoisting cable to surface with heavy tool strings across long laterals produces high torque buildup as the cable transitions through the heel E-Line Swivels are recommended when possible 10

Pre-Job planning (Stuck tool strings) In longer lateral wellbores, application of sufficient tension to release the cable from the cablehead may not be possible. Releasable cablehead devices, controlled by surface telemetry or similar methods should always be a consideration when Cerberus indicates cable release through applied cable tension may not be possible 11

Perforating reliability Pump down operations produce continuous vibration to the gun string during the pump down and subject the gun string to greater repeated shock, transmitted axially along the gun string, as each gun is fired Gun to gun wiring practices and select fire reliability, based on normal vertical perforating practices, were poor in the beginning Applied best practices and equipment standardization greatly improved NPT. 12

Window allows access for gun-gun wiring & arming at the wellsite Improved downhole reliability requires multi-gun strings have on-site pre-run wiring inspection capability. Window tandem subs facilitate quick troubleshooting in the event problems are found before arming and allow rapid arming of each gun. 13

Gun to gun knuckles capable of surviving ballistic concussions have been developed for gun strings requiring greater flexibility to pass Crossover Gun Sub Ballistic Knuckle 11" Detonator Window Sub 14

Roller Subs help reduce friction of the tool string when being pumped downhole Can reduce pump rate and pressure needed by up to 50% Cerberus modeling should always be used before adding roller subs 15

Well deviation showed toe up at 108 degrees. Addition of roller subs would have allowed roll back (down slope) of tool string with possible cable severance when perforating. 16

Setting tools. PDS typically require multiple explosive setting tools to be available at the well site. There has not been any tool brand or model which performs better than others Segregation of tool assemblies and regular inspection of all components has become a best practice. Higher pressure rated setting tools now available to meet the demands for high pressure PDS 20 k psi (1379 bar) 25 k psi (1724 bar) 17

The Caged Ball Frac Plug was developed specifically for horizontal wells. Full Composite Plugs are the only type used in PDS. Addition of a Pump Down Ring assists in efficient pump down 18

THANK YOU Questions and Answers 19