Advanced Well Construction Techniques Utilizing Solid Expandable Technologies (SET®) Extreme Stents for Oil & Gas wells Pumps & Pipes 1 12 Nov 2007 Mark Holland NA Sales Mgr

Overview Intro Expandable casing statistics Case Histories What’s new

Intro

Expandable casing statistics

Case Histories

What’s new

On January 10, 1901 the famous Lucas Gusher blew in. Oil sprayed over 100 feet above the derrick for nine days until the well was capped.

Conventional Well Design Several to many casing strings in a “tapered” configuration Each one decreases “diametric efficiency” by ~20%

Several to many casing strings in a “tapered” configuration

What and Where is Solid Expandable Technology? (SET®)

Operating Envelope for Expandable Casing Inclination: 100 o from vertical Temperature: 400 o F Mud Weight: 19.8# / gallon Depth: 28,750 ft Hydrostatic: 23,300 psi Length: 6, 867 ft

Inclination: 100 o from vertical

Temperature: 400 o F

Mud Weight: 19.8# / gallon

Depth: 28,750 ft

Hydrostatic: 23,300 psi

Length: 6, 867 ft

Cumulative Installation Footage As of November 10, 2007 798 Installations 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Nov-99 Mar-00 Aug-00 Jan-01 Jun-01 Nov-01 Apr-02 Sep-02 Feb-03 Jul-03 Dec-03 May-04 Oct-04 Mar-05 Aug-05 Dec-05 May-06 Oct-06 Mar-07 Length (in feet) 238,535 m 775,120 ft

775,000 ft equals … Traveling from Houston to Goliad

Opportunity vs. Need 9-5/8 " 7-5/8 " Decision Point Hole Size Preservation Hole Size Survival Opportunity Need

Economics Planned Expandable Key Offsets Measured Depth 3000 7000 11000 15000 19000 23000 27000 Tech Limit Reduced drilling time from 140 to 48 days Opportunity (planned) Need (contingency)

Case Histories HPHT Well – Deep Shelf GOM UD High Pressure – DW GOM

HP/HT Well in GOM – 20’ Water Depth Trouble Zone Major pressure regression - Losses Solution Installed 9-5/8" x 11-3/4" expandable Value Drilled and evaluated virgin formation with sufficient hole size

Trouble Zone

Major pressure regression - Losses

Solution

Installed 9-5/8" x 11-3/4" expandable

Value

Drilled and evaluated virgin formation with sufficient hole size

High Pressure Well in GOM – 3400’ Water Depth Trouble Zone Low Margin Drilling in a DW GOM well Solution Installed 7-5/8” x 9-3/8” Preserve hole size to TD Value Drilled and evaluated new formations in a frontier environment

Trouble Zone

Low Margin Drilling in a DW GOM well

Solution

Installed 7-5/8” x 9-3/8”

Preserve hole size to TD

Value

Drilled and evaluated new formations in a frontier environment

MonoDiameter™ and What is it? The industry demands it: More challenging drilling environments Current available technology is limited Improved ROI Advanced well construction

The industry demands it:

More challenging drilling environments

Current available technology is limited

Improved ROI

Advanced well construction

MonoDiameter™ Defined Provide successive uniform ID over multiple liners MonoDiameter ™ 10.4" ID

Provide successive uniform ID over multiple liners

Successful Field Appraisal Well Enventure was operator Safely completed drilling program Followed standard operating procedures Well information Drilled in Oklahoma Real-life well Completed April 2007 Successful installation First of its kind Continuation possible DNV Certification

Enventure was operator

Safely completed drilling program

Followed standard operating procedures

Well information

Drilled in Oklahoma

Real-life well

Completed April 2007

Successful installation

First of its kind

Continuation possible

DNV Certification

Classic Vertical Design

Conclusions – What does this mean to us all? ERD applications “ One size fits all” Reduces the Carbon Footprint of Drilling Ops Drill a more efficient well Less cuttings, mud, cement, steel, rig size, etc Is there a “Depth Limit”?

ERD applications

“ One size fits all”

Reduces the Carbon Footprint of Drilling Ops

Drill a more efficient well

Less cuttings, mud, cement, steel, rig size, etc

Is there a “Depth Limit”?