An innovative Canadian technology company is commercializing a nanoparticle technology platform to develop drilling fluid additives. Laboratory tests show the company's first product, nForcer, can reduce drilling fluid losses by up to 90%, increase wellbore fracture pressure resistance by up to 60%, and reduce friction by up to 50%. Field tests in Alberta demonstrated up to 30% reduction in mud volume losses. The nanoparticles form stronger, thinner filter cakes and seals in fractures and pores to strengthen the wellbore.
2. CONFIDENTIAL
A Canadian Technology Company
– Commercializing a leading edge Nanoparticle (NP) Technology Platform
– 4 filed patent applications
Target Market: Chemical additives for Oil & Gas drilling fluid
nForcerTM – nFluids’ 1st commercial product
– Improves packing, produces a thinner, stronger, smoother and less permeable filter cake1
– Seals micro-fractures and creates pressure barrier preventing further formation breakdown
– Fills in surface roughness, reduces asperity and keeps moisture out
– Reduces oil on cuttings
Integrated Solution - 4 Cost Saving Benefits:
Other potential applications: lubricants, catalysts, re-fracking, cements, composites, electronics,
medical devices, ferromagnetic fluids, surface coatings, etc.
nFluids Explained
2
1. Jiao, D. & Sharma, M. “Mechanism of Cake
Buildup in Crossflow Filtration of Colloidal
Suspensions.” Journal of Colloid and
Interface Science, 162, 454–462, (1994).
Drilling Fluid
Loss Reduction
Wellbore Strengthening Lubrication /
Friction Reduction
Oil on Cuttings
Reduction
3. CONFIDENTIAL
Drilling Challenge nFluids Benefit Potential Cost Savings
Costly drilling fluid losses
• Thinner, stronger filter cake
Resulting in:
30 – 90% reduction in drilling fluid
loss
• Less formation damage
• Reduced rig downtime
• Typical well 3,500 m3, 3-5 m3 lost / 100 m
drilled
• Assume HPHT FLR = 60%
• Drilling fluid cost: $1,000-1,500 m3 (WTI $80+
/bbl)
• Drilling fluid cost: $700 (WTI $30-40 /bbl)
Potential cost savings: $45-150k per well
Weakened wellbore while
drilling
• Strengthened core, increase in
fracture pressure resistance up to
60%
Resulting in:
• Reduction of rig downtime
Potential Cost Savings: $42k per/day
Increase ROP and Hz reach
• Enhanced lubrication up to 50%
reduction in friction (metal-on-
metal)
Resulting in:
• Faster drilling and longer reach
Potential Cost Savings: $42k per/day
Improve environmental
performance
• 10-15% reduction of oil on cuttings
Resulting in:
• Less trucking , remediation &
disposal costs
• Drilling fluid losses to cuttings: 10 m3 per well
Potential cost saving per well = $10k - $15k
Drilling Challenges & the nFluids Benefit
3
4. CONFIDENTIAL
nFluids Nanoparticles
4
Synthesized calcium- and iron-based NPs (CNP and INP)
Patented bottom-up process, successfully scaled to 1,000 kg per batch
Compatible with all types of mud systems and additives
Readily dispersed in oil or water under low shear conditions
Effective at a low concentration (0.5 wt%)
Non-reactive, non-toxic, aerosol-free, non-polluting & acid-soluble
60 wt% INP20 wt% INP in carrier oil 0.5 wt% INP in mineral oil
8. CONFIDENTIAL
Lubricity – Observations
OFI Lubricity Tester, 60 rpm, 150 lbf·in
8
0.05
0.06
0.07
0.08
0.09
0.1
0.11
0.12
0.13
Control 0.5 wt% nForcer™ 1.0 wt% nForcer™ Control Post-NP
MudLubricityCoefficient
• Coefficient of friction reduced with nForcer™
• Reduction observed in subsequent control sample
• Deposition of NPs observed on the instrument
• Indicates interaction between NPs and metal surface
9. CONFIDENTIAL
Lab Results – Wellbore Strengthening
Roubidoux sandstone cores, 90/10 Diesel OBM2
9
39%
41%
55%
58%
1400
1600
1800
2000
2200
2400
2600
2800
3000
FractureBreakdownPressure(psi)
Control
INP 0.5%, Graphite 0.5%
INP 2.5%, Graphite 0.5%
CNP 0.5%, Graphite 2%
CNP 2.5%, Graphite 2%
CONTROL CORE FRACTURE
BREAKDOWN PRESSURE, Pfb1
FRACTURE
BREAKDOWN PRESSURE
WITH ADDITIVE, Pfb1
2. Contreras, O.; Hareland, G.; Husein, M.; Nygaard, R.
& Alsaba, M. “Wellbore Strengthening in Sandstones
by Means of Nanoparticle-Based Drilling Fluids.” SPE
Deepwater Drilling and Completions Conference,
Galveston, Texas, 10-11 September (2014). SPE-
170263-MS.
10. CONFIDENTIAL
Wellbore Strengthening – Observations
Catoosa shale cores, 0.5 wt% CNP, SEM
10
At fracture end:
At fracture mouth:
Shale core showing two
vertical fractures3
NPs form a continuous seal along the fracture3 3. Contreras, O.; Hareland, G.; Husein, M.; Nygaard, R.
& Alsaba, M. “Experimental Investigation on Wellbore
Strengthening in Shales by Means of Nanoparticle-
Based Drilling Fluids.” SPE Annual Technical
Conference and Exhibition, Amsterdam, The
Netherlands, 27-29 October (2014). SPE-170589-MS.
11. CONFIDENTIAL
Field Testing – Overview
11
9 total tests completed in Alberta
– 6 field tests completed4 near RMH
1st gen nForcer™ (CNP) at 0.5 wt%
12 offset wells for comparison
Horizontal wells, ~4,000 m TD
Shale and coal zones in build section
Cardium sandstone pay zone
Focus on mud loss reduction
Cutter-D 90/10 to 85/15 OBM system
Mud weight: 1,030 to 1,150 kg/m3 (361
to 403 lb/bbl)
Group D – different lithology, no offset
data, not shown herein
4. Borisov, A. S.; Husein, M. & Hareland, G. “A Field
Application of Nanoparticle-based Invert Emulsion Drilling
Fluids.” Journal of Nanoparticle Research, 17, 340, (2015).
12. CONFIDENTIAL
Field Results – Total Mud Losses
1st gen nForcer™ (CNP) 0.5 wt%
12
-29% -24%
-28%
-21%
0
10
20
30
40
50
60
70
80
90
Control A Test A Control B Test B1 Test B2 Control C Test C
TotalMudLossesatTD,m3
NOTE: Total mud losses include final surface and subsurface losses calculated between surface casing and TD
13. CONFIDENTIAL
Field Results – Total Mud Losses
1st gen nForcer™ (CNP) 0.5 wt%
13
-34%
-29%
-30%
-23%
0
0.5
1
1.5
2
2.5
3
3.5
Control A Test A Control B Test B1 Test B2 Control C Test C
AverageMudLossesper100mDrilled,m3/100m
NOTE: Average mud losses per 100 m drilled account for variations in TD between wells - final mud losses at TD
divided by the interval drilled and multiplied by 100
14. CONFIDENTIAL
nFluids Technology Summary
14
nFluids nanoparticle (NPs) products:
– Iron-based nanoparticle (INP)
– Calcium-based nanoparticle (CNP)
Lab work focusses on three properties of drilling fluids:
– Fluid loss reduction (HTHP with paper and ceramic disks)
– Inhibited pressure communication in the formation (sandstone, shale, and cement core fracturing)
– Lubrication (OFI metal-on-metal lubricity tester)
Fracture pressure lab tests:
– Up to 60% increase in fracture initiation pressure in sandstone cores with CNP (Diesel OBM)
– Up to 40% increase in fracture initiation pressure in sandstone cores with INP (Diesel OBM)
Lubricity lab tests:
– Up to 37% reduction in coefficient of friction with CNP (metal-on-metal, Diesel OBM)
– Up to 48% reduction in coefficient of friction with INP (metal-on-metal, Diesel OBM)
Recent field tests:
– Six full-scale field tests completed in Alberta (RMH) in 2015
– Up to 30% reduction in mud volume losses while drilling with CNP
– Field results consistent with lab HPHT observations
15. CONFIDENTIAL
Formation Damage Prevention
15
Reduced filter cake thickness and permeability
– HPHT/LPLT fluid loss tests, WBM and OBM, 0.5 wt% INP
Acid-soluble product
– Soluble in 10% HCl
Shallow depth of penetration
– From SEM and EDX experiments on filter cakes
Up to 90% reduction in spurt loss
– WBM formulation, LPLT fluid loss, 0.5 wt% INP
Up to 55% reduction in 30 min fluid loss
– WBM formulation, LPLT fluid loss, 0.5 wt% INP
16. CONFIDENTIAL
O&G Production Applications
16
Fracturing/Re-Fracturing:
– Creating a pressure barrier that prevents further formation breakdown (permeability reduction)
– Mono-bore design
Conformance control:
– Creating a fluid barrier via permeability reduction would improve conformity of the flood front in EOR
Cementing:
– Reducing the permeability, increasing the strength and improving the bond with metal & rock
Lubrication:
– Drilling-Coil Tubing
– Coatings
Wellbore Integrity:
– Reducing the permeability and increasing the strength of shale zones etc.
Corrosion Control:
– Nanoparticles can be capped with hydrophobic materials-preventing water from migrating into the asperities
of the material
Oil & Water treatment:
– Utilizing magnetic nanoparticles to remove oil from water bodies & solid materials
– Removal of Arsenic etc.
17. www.nfluids.com
Jeffrey Forsyth, CEO jforsyth@nfluids.com
Jeremy Krol, VP jkrol@nfluids.com
Alex Borisov, R&D aborisov@nfluids.com
Hai Wang, R&D hwang@nfluids.com
19. CONFIDENTIAL
Filter Cake With and Without NPs: SEM Characterization
Filter cakes produced by HPHT fluid loss test at 250 °F
Cryo-SEM performed on the profile
Control OBM shows many cracks and fractures that form filtrate flow channels
OBM with INP do not contain any visible fractures – consistent with reduction of filtrate
volume
19
Control OBM OBM with 0.5 wt% INP
20. CONFIDENTIAL
Wellbore Strengthening – Roubidoux Sandstone
20
Graphite, INP and CNP at
different concentrations were
added to OBM to study their
effect on the fracture
breakdown pressure, Pfb1
21. CONFIDENTIAL
Wellbore Strengthening – Sandstone2 – Diesel OBM
21
2. Contreras, O.; Hareland, G.; Husein, M.; Nygaard, R.
& Alsaba, M. “Wellbore Strengthening in Sandstones
by Means of Nanoparticle-Based Drilling Fluids.” SPE
Deepwater Drilling and Completions Conference,
Galveston, Texas, 10-11 September (2014). SPE-
170263-MS.
22. CONFIDENTIAL
Wellbore Strengthening – Catoosa shale
22
Graphite, INP and CNP at
different concentrations were
added to OBM to study their
effect on the fracture
reopening pressure, Pfb2
23. CONFIDENTIAL
Wellbore Strengthening – Catoosa shale
23
0
100
200
300
400
500
600
700
800
0 10 20 30 40 50 60
Pressure,psi
Time, min
Effect of CNP and INP on Fracturing Pressure in Shale Cores
Control CNP 0.5wt%+Graph 2wt%
CNP 2.5wt%+Graph 2wt% INP 0.5wt%+Graph 0.5wt%
INP 2.5wt%+Graph 0.5wt%
27%
24. CONFIDENTIAL
Wellbore Strengthening – Shale3 – Diesel OBM
24
3. Contreras, O.; Hareland, G.; Husein, M.;
Nygaard, R. & Alsaba, M. “Experimental
Investigation on Wellbore Strengthening in
Shales by Means of Nanoparticle-Based
Drilling Fluids.” SPE Annual Technical
Conference and Exhibition, Amsterdam, The
Netherlands, 27-29 October (2014). SPE-
170589-MS.