RedNews Issue No.1

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Expanded Product Fleetto Improve Production TimeRed Spider has invested heavily in expanding oursuite of game-changing completion productsin response to growing customer demand.

As well as increasing the range of products, we havealso added significantly to the overall product fleet inthe last quarter in response to customer feedback andmarket research. By manufacturing and holding a suiteof completion tools in-house, Red Spider can helpspeed up the offshore production process by havingthe ability to service operator demand in the NorthSea, North and South America and Asia Pacific.

Our first product, eRED®, has been used widely acrossthe North Sea by a host of operators and has broughtthem multi-million pound savings. The valve has builta reputation for reliability and has allowed North Seaoperators to save up to $900,000 during a single

operation by reducing wireline runs from eight to one.The eRED routinely removes 24 hours from operations;the removal of 10 wireline runs providing the greatestsaving so far of 36 hours from a single subsea job.

It quickly became apparent from the eRED’scontinuing success that there were other potentialapplications for Remote Open Close Technology in thecompletion of wells. Further customer requestsfollowed by investment in extensive research anddevelopment work has resulted in two new products,eRED-FB and PowerBall®.

eRED is fast becoming the industry standard solutionfor a range of downhole applications and we areconfident the new additions to the product line will bewidely welcomed for subsea operations thanks to thesavings and reduced risk they offer. ■

ISSUE NO. 1

Insidethis issue

> PowerBall® and eRED® –Success Stories> New Faces join the Team> Team Awards Recognise Standards> Sporting Success> Win an iPad 2

RS REDNEWS EDIT:Layout 1 13/4/11 10:05 Page 3

Red Spider worked with ITF, the oil and gasIndustry Technology Facilitator, on productdevelopment and commercialisation. A totalof $800,000 was invested in thedevelopment of the technology by fouroperator members, including BG Group, BP,Chevron and Maersk Oil, while Red Spidercommitted in excess of $11,200,000 to theproject.

UK Region Manager, Andy Skinner said:“PowerBall will offer reliability and hugesavings to the global energy industry. Crucialto delivering this product in such a short timeframe has been commitment from the fouroperator sponsors brought together by ITF.

Through the ITF process we were able topool the knowledge from the projectsponsors, which allowed us to draw on theirindustry experience to close-out potentialproblems that may have delayeddevelopment of the technology.”

Well-documented challenges exist within theindustry during well completion activities asthe technologies utilised are often exposedto large amounts of debris, leading tooperational failure and costly shutdown time.

PowerBall- Engineered forMaximum Reliability PowerBall is a pioneering reservoir isolation barrier that prevents fluidloss during the upper completion phase of well construction. Its increasedreliability will differentiate it from its competitors, and could potentiallysave operators up to $800,000 per operation by delivering major timereductions in subsea operations and significantly enhancing safety.

WelcomeAfter a very challenging timefor many companies in the oiland gas sector, Red Spider isable to look back on 2010 as ayear of record levels of workand very successful in terms ofdevelopment work carried outand completed. 2011 is on track to surpass this with60% growth forecast for the currentyear. There are several reasons for this:

• existing products attracting newcustomers as well as winningfurther business from existingcustomers, including BP, Shelland Statoil

• expanding into new internationalmarkets

• introducing new spin-off productsoffering reliable completionssolutions that will save hours ofrig time and improve safety performance

Impetus for our growth and ability toinvest in new product developmentcame through investment of $12 millionfrom Energy Ventures and SimmonsParallel Energy Fund last year, which ishelping Red Spider to acceleratecommercialisation and roll-out of ourROCT technology.

It is also supporting a comprehensiveinternationalisation plan, mostimmediately covering Asia-Pacific andNorth and South America, two regionswith enormous scope for our specialistproducts.

We have a real feeling of Red Spidermoving to the next level in our growthstrategy. Since the investment, we havechanged our strategy to be moreaggressive and confident. There is a bigmarket in Asia Pacific and North andSouth America and we have nowbeen able to develop theproduct pool we need tocover these regionsproperly and forthe long term.

Steve NicolChief ExecutiveOfficer

By moving the mechanical parts of the ballmechanism below the closed ball area of thetool, and as a result, protecting them fromdebris, Red Spider has turned traditionalreservoir isolation barrier technology on itshead with PowerBall.

Set to give added reliability and save oil andgas operators time and money, PowerBallcan operate in any type of well, includingcased and open-hole wells.

PowerBall has been tested extensively toensure reliability at our dedicated test facilityin Aberdeen. Well completions technologychallenges include optimising lowercompletions, which PowerBall successfullyachieves by using electronic logic in itsprimary opening mechanism. This offersthe user increased flexibility during theopening sequence; which is another benefitas the tool set-up can be changed, ifrequired, on the well site.

Another unique element to the PowerBalltechnology is that it has separate modules tohouse components including the sensors,electronics and secondary back-up systems,all of which can be operated remotely withoutshutting down a well.

Keith Mackie, ITF’s technology manager said:“Effectively tackling industry wide challengessuch as well completions is a prime focus forITF and its membership. When a ground-breaking technology like PowerBall issuccessfully delivered into the market place itprovides benefits for the entire internationalcommunity.’’

eRED-FB is a completion placement valve thatcan save around 32 hours rig-time byeliminating the need for any interventionsduring the operation. It is essentially a tubingmounted eRED, permanently deployed as partof the tubing string which when open,provides a full through-bore for well fluids. TheeRED-FB is particularly suited to completionplacement operations.

Red Spider again worked with ITF, the oil andgas Industry Technology Facilitator, on productdevelopment and commercialisation on thisnew product to ensure alignment with the newproduct and the client requirements. A total of$580,000 was invested in the developmentof the technology by operator members, whileRed Spider committed in excess of $960,000to the project. ■

“Ground-breaking technologylike PowerBall provides benefitsfor the entire internationalcommunity.”


Team Awards RecogniseHighest StandardsIt’s important to all of us at Red Spider to uphold the company values ofteamwork, honesty, trust, respect and openness in all we do within the teamand when dealing externally with our customers, contacts and suppliers.

To recognise the dedication of the team tomeet these goals, we decided to hold our firstinternal awards this year with all the winnersvoted for by their colleagues.

This year’s winners are as follows: Teamwork Martin Davidson, AssemblyWell Services Technician

We create opportunities in a supportiveenvironment within the organisation toovercome challenges through innovation andpositive energy allowing us to meet deadlines.We overcome barriers and challenges by havingan enthusiastic, ego-free, can-do attitude thatis flexible and allows us to be competitive anddeliver where others cannot.

Honesty Graham Pirie, Assembly and TestTeam LeaderTrust Lorraine McCracken, Well ServicesPersonnel Co-ordinator Respect Willie Burnett, Senior Design EngineerOpenness Willie Burnett

Most Nominations – (Joint Winners) MartinDavidson and Lorraine McCracken.

Chief Executive Steve Nicol: “A huge welldone to the award winners and to the wholeRed Spider Team. Last year was a very busyone for us with a number of big changes inthe business. We would not have achievedwhat we have without the dedication andhard work of our team.’’ ■

“

New Faces Join the TeamRed Spider’s strategy for growthhinges not only on the success ofour products, but also on havingthe right people in place to make ithappen.

Sales Engineer Euan Fraserand Senior Sales EngineerRichard McKimmie havejoined the UK sales team tohelp strengthen customerrelations and developbusiness opportunities.Each has more than 17years’ experience in the oiland gas industry. Euan hasworked with HydrafitSubsea and Baker Oil Tools,while Robert GordonUniversity graduate Richardwas latterly a ServiceManager at HalliburtonEnergy Services, workingwith Schlumberger prior tothat. ■

David Allan, ChiefOperating Officer, comesfrom a background ofmore than 17 years in theoil chemicals sector, latterlyas operations manager atIntertek Testing Services.In the role, he was involvedin the significant growth of

the Aberdeen business over a six year periodwith the company. A Robert Gordon Universitygraduate with a young family, he has alsorecently qualified as a Chartered Chemist.

Europe and Africa SalesManager Barry Kilohjoins us from BakerHughes where he held anumber of senior salespositions across Europe,latterly as BusinessDevelopment Manager forthe company’s intelligent

production systems (IPS) product line. Hehas worked in the oil and gas industry foraround 15 years in total, including atSchlumberger and Expro in operational roles.

At our Norwegian division,Red Spider AS, sales andwell services engineer PerArnfinn Monge hasmore than 20 yearsexperience working in theoil and gas industry. Hismost recent position waswith Wellbore as Senior

Project Engineer and he has workedpreviously with Halliburton and Petroleum

Engineering Services. He joins OddvarDalane, Red Spider AS’s Sales Manager,and the rest of the team in Norwaysupporting existing customers anddeveloping new business opportunities.

Meet the RedSpider Team

Red Spider isexhibiting at theSPE/ICoTA Tubing

& Well Intervention Conference & Exhibitionin Woodlands, Texas, from April 5 – 6.

“There is enormous potential for ourproducts in the US and South America andwe have had high levels of interest resultingin ground-breaking project work in thisregion. The conference is an excellent forumfor us to show our new completionstechnology to a highly-relevant audience,’’says US Sales Manager John O'Hara.

April also sees RedSpider taking part inthe Next Generation

NGO&G Summit in South Africa on April 5– 7. A paper detailing a project that usedeRED, Red Spider’s first tool, resulting insignificant rig time savings, will be deliveredat the summit. Chief Executive Officer SteveNicol is attending along with Africa SalesManager Barry Killoh.

“Despite being newcomers to the market, weare extremely positive about the scope for usto work in the region based on the amountof inquiries for our products,'' says Steve.

Society of PetroleumEngineers' AnnualTechnical Conferenceand Exhibition

(ATCE), Denver. 30th October – 2nd November

Red Spider will be among 300 companiesexhibiting at the event which will see morethan 400 peer-selected technical paperscovering current applications and futuretechnologies. ■

“


eRED– A Success StoryDual eREDs save at least 10 wireline runsfrom subsea completion...BackgroundThe Eastern Trough Area Project (ETAP) is an integrateddevelopment of seven different reservoirs. Four separate fieldsare operated by BP: Marnock, Mungo, Monan and Machar.The Machar well in this case study is asubsea producer (tied back to theETAP platform). The de-completion,sidetrack and two stage re-completionwas performed from a semi-submersible rig in the lastquarter of 2009.The Red Spider eRED intelligentdownhole equalising devicewas previously usedsuccessfully in severalplatform and subseaoperations for BP in theUK and Norwegian sectors. The programmableelectronics and sensors enable the eRED tobe repeatedly instructed to open and closeusing pressure and time commands. Thisparticular operation was the first time twoeREDs had been used in series in onecompletion, with each tool programmed torespond to its own unique command,specifically applied pressure over a giventime period.

OperationThe Lower CompletionFollowing the de-completion and side track,the lower completion and liner hanger wereRIH (run-in-hole) to depth in the newlydrilled 6" open-hole section. A ball was thendropped and circulated to depth. Thecompletion was then pressured up to set theopen hole packers. The pressure wasincreased to set the liner hanger and releasethe running tool.

The Upper CompletionIn this particular operation, the twotraditional plugs were replaced with eREDs;primarily for the benefits of improved safetyand removal of risk by removing wirelineruns. Both eREDs were pre-installedonshore, one as a deep-set barrier below theproduction packer (on a standard 4.313"lock) and the second in the tubing hanger(on a standard 4.875" lock). Both eREDswere fully tested from above and belowbefore shipping as normal.

Offshore, a laptop was connected to theeREDs and diagnostic checks were made toensure they were operating correctly. Theupper completion was then RIH with botheREDs fully open allowing fluid to bypassand allowing pressure to access the lowercompletion for well control. With thecompletion at depth, the tubing hanger waslanded and locked in place.

The deep-set eRED was then instructed toclose with a pre-programmed pressure andtime command of 750 psi (500-1,000 psiwindow) applied to the tubing for 10minutes. A delay of five minutes wasincluded to allow for bleeding-off of appliedpressure prior to the ball closing.

The production packer was then sethydraullically by pressuring up against thedeep-set eRED. The first attempt topressure test the production packer wasunsuccessful. As the eRED was set up withrepeating triggers, the instruction to re-openthe ball was given with the same pressureand time command of 750 psi (500-1,000psi window) applied to tubing for 10 minutes(but no time delay). Following trouble-shooting, the eRED was then given theinstruction to close again with the same pre-programmed pressure and time command.The production packer then pressured testedsuccessfully on the second attempt.

The tubing hanger eRED was theninstructed to close with its different pre-

programmed pressure and time commandof 1,750 psi (1,500-2,000 psi window)applied to tubing for 10 minutes. A delay offive minutes was also included.

With both eREDs now closed providing afully testable dual barrier, the drilling BOPwas nippled down and the subsea tree wasinstalled and tested. Still without any formof intervention, the tubing hanger eRED wasopened remotely with its command trigger.Positive feedback that eRED had openedwas observed at surface by a tubing pressuredrop. The deep-set eRED was then openedremotely with its command trigger. Onceagain positive feedback that the eRED hadopened was observed at surface by a tubingpressure drop.

Measure of SuccessBoth eREDs functioned as designed,enabling BP to remotely open and close andthen perform multiple tests against them.A total of six deep and four shallow wirelineruns were eliminated from this particularoperation resulting in a significant reductionin HSE exposure.

Highlights – ROI• Reduced exposure to potential WoW

(waiting-on-weather) to rig up slicklineand general risks associated withinterventions - potentially very significantfor winter operations

• Reduced POB requirements (four manwireline crew required later in theprogramme and for shorter duration)

• Reduced slickline service costs for bothpersonnel and equipment

• Operator confidence to remotely open andclose eRED

• Pre-installed eREDs and annulus filter subreduced slickline runs from twelve to two

eRED will simplifysubsea operations andsave 10 wireline runs per job


Andy Skinner, UK Region Sales Manager ofRed Spider, explains developing apartnership that involves more thandisplaying the company’s logo on the team’sshirts and kit is a two-way process: “Whenwe decided to sponsor a local team, theopportunity to have an active role in thechosen club by getting staff, partners andclients involved was a high priority.

“Deveronvale football club was looking for acompany to sponsor their youth teams butthey were looking for more than financialinvestment – the coaches were keen to havea corporate sponsor that was interested intaking a hands-on approach to supportingthe club. Therefore sponsoring Deveronvale’sHighland League Youth developmentprogramme is the perfect partnership forboth Red Spider and Deveronvale.”

Red Spider has held company days out atthe football ground where staff have takenon players in five-a-side matches andorganised regular corporate days for clients.

The Deveronvale Highland League youthteams and their coaching academy, knownlocally as ‘youth at the vale’, is well respected

SportingSponsorsRed Spider and DeveronvaleHighland League Youth developmentsigned a three year sponsorshiparrangement in 2010 to benefit boththe Highland League youth squadsand Red Spider’s staff.

for its approach to coaching talented youngplayers who aspire to play first teamprofessional football – many of the youngstersthat train with Deveronvale becomesuccessful footballers. And although theHighland League club is based in the costaltown of Banff, boys from across the North-East join the youth team, which coachesplayers between the ages of 12 to 19.

“Deveronvale has an excellent record fordeveloping young players, and producing andgiving first team opportunities for its junior

squads. The quality of youngsters comingup through youth at the vale is very highquality and it is undoubtedly due to thecoaching standards and commitment fromall involved in youth development at the club.We are very excited to have the opportunityto be part of their team.” said Mr Skinner.

Graeme Burnett, head of youth developmentfor the Vale, said: “Red Spider has beengreat to deal with and we are looking forwardto a successful working partnership in theyears ahead.” ■

Red Spider has agreedto help Scots bob-sleigher Gillian Cookwith much-needed

technical tools tokeep her on track.Gillian has swappedpushing for driving

as she competes inEurope and World Cup

events this year.

Stayingon track

Win an iPad 2We have an amazing 32GB ipad 2 with Wifi to give away. For your chance to win, visitwww.redspiders.com/ipad2 and answer the following question:

What is the greatest number of hours saved on a single subseaeRED job?a. 12 b. 24 c. 36

Hint: the answer can be found at www.redspiders.comThe winner will be drawn from the first1000 entries received.


Asia Pacific& Middle EastRed Spider TechnologyFZEPO Box 18738Jebel Ali Free ZoneDubai

t +971 (0) 4 8873267f +971 (0) 4 8873268e [email protected]

North & South AmericaRed Spider Technology Inc9595 Six Pines DriveSuite 8210The WoodlandsTX 77380USA

t +1 832-631-6081f +1 832-631-6001e [email protected]

UK, Europe & AfricaRed Spider TechnologyPeregrine RoadWesthillAberdeenshireAB32 6JL

t +44 1224 275000f +44 1224 275001e [email protected]

NorwayRed Spider Technology ASKoppholen 194313 SandnesNorway

t +47 40 00 69 13e [email protected]

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RedNews Issue No.1