Coiled-Tubing High Pressure Jet Drilling System

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A Noble Drilling Corporation Subsidiary Coiled-Tubing High Pressure Jet Drilling System April 19, 2001 Dr. William C. Maurer TT00-38 1

Exxon High Pressure Drill Rig HP Pump HP Rotary Hose HP Swivel HP Seal HP Line High Strength Drill Pipe Tool-Joint Seal HP Bit TT00-38 2

TT00-38 3

TT00-38 4

TT00-38 5

TT00-38 6

Comparison of Drilling Methods 1200 Drilling Rate (ft/hr) 1000 800 600 400 200 0 Conventional Drilling Motor/Jet Bit Rotary Motor TT00-38 7

TT00-38 8

High Pressure CT Drilling System (Single Flow) CT Reel Injector Head LP & HP Pumps Conventional Coiled Tubing HP Flow Single Flow HP Motor (Solid Rotor) Single-Flow HP Bit TT00-38 9

Project Participants Maurer Engineering - Motors and Bits Quality Tubing - HP Coiled Tubing Stewart & Stevenson - CT Rig BJ Services - Field Operations Marathon - Operator Requirements ARCO - Operator Requirements TT00-38 10

A Noble Drilling Corporation Subsidiary HP Motor Design Curtis Leitko TT00-38 11

High Pressure CT Motor (Single Flow) Titanium Drive Shaft PDC Thrust Bearings PDM Multilobe Rotor/Stator (3 1/8 ) 2 3/8 CT Solid Rotor High Pressure Jet Bit Radial Bearings/ Flow Restrictors Solid Titanium Flexshaft Titanium Flexshaft Filter High Pressure Low Pressure TT00-38 12

Thrust Load on Bearing 10,000 PSI Seal Housing 34,000 lb Force Thrust Bearing Bit TT00-38 13

Candidate Bearings Ball Bearing PDC Bearing TT00-38 14

Bearing Load Comparison 20000 100 Hours @ 300 rpm 16,800 Load Capacity 15000 10000 5000 5600 0 Ball Bearing PDC Bearing TT00-38 15

Motor Labyrinth Seals 5 } Upper Restrictor Housing 5 Fluid Flow Shaft } Lower Restrictor TT00-38 16

Motor Labyrinth Leakage Flow Rate (gpm) 16 14 12 10 8 6 4 Four 5 Labyrinths 10,000 psi 8.1 w 12.1 2 0 0.004" 0.006" Leakage Clearance (w) TT00-38 17

Advanced Geothermal Turbodrill (AGT) Bearing Pack Speed Reducer Turbine TT00-38 18

Planetary Gears Sun Gear Planet Gears Ring Gear TT00-38 19

Turbodrill Performance With Gear Box Without Gear Box 7500 1100 85 900 Rotary Speed (RPM) Torque (ft-lbs) TT00-38 20

HP Bit Design TT00-38 21

High Pressure Jet Bit High Pressure Jets TT00-38 22

TT00-38 23

A Noble Drilling Corporation Subsidiary HP Coiled-Tubing Design John H. Cohen TT00-38 24

Coiled Tubing Burst Pressure (100,000 psi yield) CT Diameter (in.) 1.00 1.25 1.50 1.75 2.00 2.375 2.875 3.500 Wall Thk. (in.) 0.109 0.156 0.175 0.188 0.203 0.203 0.203 0.203 Burst Pressure (psi) 20,800 24,160 22,670 20,910 19,800 16,670 13,770 11,310 TT00-38 25

Fatigue Life (trips) 200 150 100 CT FATIGUE LIFE (based on MEI CTLIFE model) 1.75" 2.00" QT-1000 50 0 6,000 9,000 12,000 Internal Pressure (psi) TT00-38 26

Fiberspar Spoolable Products Production Tubing - FS PT Line Pipe - FS LP Coiled Tubing -FS CT (for Well Servicing) TT00-38 27

First FS CT Field String 6500 Ft. Length, 1.5 OD TT00-38 28

Burst Pressure (psi) 40000 2.00 inch OD CT Burst Pressure 30000 20000 10000 0 QT-1000 Incoloy-625 Composite TT00-38 29

Hybrid Coiled Tubing Composite CT Steel CT TT00-38 30

A Noble Drilling Corporation Subsidiary High Pressure Motor Tests John H. Cohen TT00-38 31

Mud Motor Dynamometer Test Stand Dynamometer Flex Shaft Leak Tank Fluid Inlet Motor TT00-38 32

TT00-38 33

TT00-38 34

2000 psi TT00-38 35

10,000 psi TT00-38 36

TT00-38 37

TT00-38 38

CT High Pressure Jet Drilling Rate Drilling Rate 1800 1600 1400 1200 1000 800 600 400 200 0 Leauder Limestone 3-1/8 Bit 150 300 1600 Rotary Conventional High Pressure Motor Motor TT00-38 39

A Noble Drilling Corporation Subsidiary DOE High-Pressure Coiled Tubing Drilling System Phase III Commercialization William C. Maurer August 8, 2000 TT00-38 40

Phase III Commercialization Start Date Oct. 1, 2000 Phase III Budget $3,152,498 DOE Phase III Funding $1,585,556 Objective: Field test and demonstrate prototype CT Drilling System Sub Contractors: BJ Services Quality Tubing TT00-38 41

Phase III Tasks 1. Conduct shallow field test 2. Modify system 3. Conduct deep field test 4. Develop Commercialization Plan 5. Write Final Report TT00-38 42

Phase III Plans Shallow field tests Deeper field tests Commercial tests - Catoosa - Marathon Oil - BJ Services TT00-38 43

Drilling (Vertical) Conventional Coiled Tubing HP Flow High Pressure Motor High Pressure Bit TT00-38 44

Jet Slotting Stimulation Slots Formation Damage High Pressure Jets TT00-38 45

Formation Damage Mechanism (Timmerman, 1982) Pressure profile in the formation Dp skin = Pressure drop across the damaged zone Skin or zone of damage TT00-38 46

In must homogeneous matrix situations, the physical depth of solids invasion tends to be shallow (1-2 cm into the formation) (Bennion et al., 2000) TT00-38 47

Well Bore Helical Slotting Glacier Bluff Dolomite 10,000 psi Jet TT00-38 48

Texas Cream Limestone 10,000 psi Jet TT00-38 49

Tubing Drilling Cement High Pressure Jets Cement TT00-38 50

TT00-38 51

TT00-38 52

CT Cement Cleanout Rates 1200 1000 1000 ROP (ft/hr) 800 600 400 200 0 60 Low Pressure 10,000 psi TT00-38 53

Cement Cleanout Assumptions Conventional ROP = 60 ft/hr Jet ROP = 600 ft/hr Conv. CT Rig = $10,000/day Jet CT Rig = $20,000/day Land Rig = $5,000/day Offshore Rig = $200,000/day Well Depth = 10,000 ft. Conv. Land Cost = ($10,000 + $5,000) x 10,000 60 x 24 = $104,000 TT00-38 54

Cement Cleanout Costs (Land Well) Cleanout Costs ($ 1000's) 120 100 80 60 40 20 0 104 Conventional Jet 21 Cost TT00-38 55

Cement Cleanout Costs (Offshore Well) Cleanout Costs ($Millions) 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 1.46 Conventional Jet 0.15 Cost TT00-38 56

Tubing Barite Scale Removal High Pressure Jets Barite Scale TT00-38 57

Open slots Jetting slots Tubing Cleaning Slotted Liners High Pressure Jets Plugged slots TT00-38 58

Hole Reaming/Cleaning Reamed Hole Hole Guide High Pressure Jets Predrilled Hole TT00-38 59

Under Reaming Casing High Pressure Jets TT00-38 60

Drilling (Horizontal) TT00-38 61

Phase III Commercialization BJ Services CT field operations Quality Tubing High Pressure CT Marathon Oil Field test sites Maurer Engineering HP motor/bit development TT00-38 62

TT00-38 63

Potential Market Applications Number Wells Income Per Well Annual Income Drilling 500 $100,000 $50 Million Open-Hole Slotting 1000 $30,000 $30 Million Cement Cleanout 100 $50,000 $5 Million Total Income = $85 million/year TT00-38 64