Excellence In CoringExcellence In Coring

7-Nov-05

Market MapMarket Map Our History...In November of 2000, Corion Diamond Products was formed in Western Canada through the asset purchase of Security DBS (Halliburton Energy Services) North American coring equipment. At the same time Corion acquired Noralta Coring Ltd, a leader in coring unconventional formations such as heavy oil sands; and merged these two existing firms together form Corion Diamond Products Ltd. Corion expanded operations into the U.S. in January 2003.

In July 2005, Corion Diamond Products Ltd was acquired by REEDHycalog, a Grant Prideco Company, to form REEDHycalog Coring Services.

REEDHycalog Coring Services is the leader in both conventional and unconventional coring with one of the largest inventories of Core Bits and Core Barrels in North America.

7-Nov-05

Why REEDHycalog Coring Why REEDHycalog Coring Services?Services?

REEDHycalog Coring Services is the largest coring company in North America Presently serving over 100 clients Cutting twice as much core than any other coring

company (approximately 70,000 feet of core in 2005)

Our professional staff of coring experts has a cumulative level of expertise that is second to none in the industry (over 150 years)

We offer the latest in technological advancements in the coring industry to improve your efforts while saving you time and money. Corion ExpressTM: Wireline retrievable coring,

drilling, and logging system for production-hole size or slim-hole applications

7-Nov-05

Coring ServicesCoring Services

Conventional Coring

Low Invasion Coring

Plastic Lined Coring

High Pressure Coring

Oriented Coring

Wireline Coring

Heavy Oil Coring

Shale Coring

Coalbed Methane Coring

REEDHycalog Coring Services provides a full range of coring services.

Additionally, we offer solutions for difficult coring situations such as:

Highly fractured core zones

High pressure-high temperature environments

Unconsolidated formations

7-Nov-05

Major CustomersMajor Customers

EnCana Oil & Gas

ConocoPhillips

Devon Energy

Oxy

Shell E&P

Samson Resources

Anadarko

Williams Energy

Red Willow Production

Talisman Energy

Husky Oil

Burlington

Kerr McGee

Exxon Mobil

Chevron

JAPEX

Presently servicing over 100 customers

7-Nov-05

Coring Services ProfileCoring Services Profile

Total Amount of Core Cut

We cut twice as much core as any other coring company in North America.

2002

(feet)

2003

(feet)

2004

(feet)

2005

(feet)

Conventional 6,978 13,015 9,244 17,668

Corion ExpressTM 12,845 22,657 43,323 51,463

TOTAL 35,889 44,846 64,011 69,131

Wireline Retrievable Wireline Retrievable Coring/Drilling/Logging SystemCoring/Drilling/Logging System

7-Nov-05

Evolution of Wellbore Construction Evolution of Wellbore Construction with Corion Expresswith Corion ExpressTMTM

FEWER TRIPS = MORE CORE= DECREASED COSTS

Conventional

Coring

Rotary Drilling

Rotary Drilling

TRIP

TRIP

TRIP

TRIP

TRIP

NO TRIPS = EVEN MORE CORE= FURTHER DECREASED COSTS

Rotary Drilling

Rotary Drilling

TRIP

TRIP

Corion ExpressTMCorion ExpressTM

7-Nov-05

AccomplishmentsAccomplishments

Oil Sands and Coalbed Methane (CBM) High Speed Recovery Inner Tubes with 3” core Core and Drill in Hole Size ranging from 6 ¼” to 8 ¾” 3 ½” core diameter in as small as 6 ¼” 800 Wells Cored and Drilled with Corion Express

Gas Hydrates Japex Pilot Project for Hydrate Gas First well ever to recover intact hydrate core to surface Over 95% recovery of hydrates Continuously cored 860 ft (262 m) Completed the desired coring interval 4 days ahead of the

time curve

7-Nov-05

Corion Express AdvantagesCorion Express Advantages

Larger Core Diameter 3 - 3 ½” diameter core

Conventional core quality via wireline Traditionally 1-2” diameter core

Deeper Depths Overcoming limitations

Depths greater than 10,000ft Off-shore capability

Oriented Wireline Coring System

Under-balanced Wireline Coring System

Based on USA 2006 projects

7-Nov-05

Fluid Diverter Ports

Rope Socket

Landing Seat

Inner Tube

Core Bit

Stabilization

Outer Tube

Bearing Assembly

Catcher Assembly

4½ IF

Pressure Ports

How It Works – How It Works – Coring AssemblyCoring Assembly

P1 Typical system pressure seen at the bit

P2 Pressure developed ported pressure head

P3 Stand Pipe Pressure1) P3 = P1 + P2

2) P2 (typically 400psi) creates 2000 lbs thrust force

3) Thrust force keeps inner barrel in place until a jam occurs. The jam transfers the WOB to the inner tube and over comes the thrust force

4) Tool becomes unseated

5) P3 = P1 (~100psi)

6) Surface indication

7-Nov-05

Inner barrel is dropped from surface… …sails through the drill string and…

… lands on the seating sub (metal to metal)

So What is a So What is a Hydraulically Seated Hydraulically Seated Inner Barrel?Inner Barrel?

7-Nov-05

…Fluid is then diverted from

the pressure head into the

outer barrel feeding the bit

by

creating a thrust load on the

pressure head…

…Fluid pressure holds the

seated barrel in place,

Fluid circulates from surface

and reaches the pressure

head…F

7-Nov-05

While coring,

there is a weight transfer

from the core bit to the

inner barrel…

which is seen at

surface by a pressure

decrease

…causing the inner barrel to

unseat,

if a jam occurs,

0 2500

7-Nov-05

How It Works –How It Works –Drilling AssemblyDrilling Assembly

Fluid Diverter Ports

Rope Socket

Core Bit

Stabilization

Bearing Assembly

4½ IF

Pressure Ports

Collets

Insert Bit

The drilling component works on the same principle a the coring component. 1) As the drilling collet lands, the

fluid is forced through the top of the tool pushing a tapered plunger down.

2) As the tapered plunger moves down the collet fingers are forced into the open position “squeezing” the drilling assembly into a locked position.

3) When drilling is completed the wireline is attached to the drilling assembly and pulled up.

4) The pulling action lifts the tapered plunger up allowing the collet fingers to relax and return to the closed position.

7-Nov-05

When the drill rod assembly is inserted……the pins on the overshot are sheared……the collets lock in place and…

…overshot is wirelined to surface…

Drilling AssemblyDrilling Assembly

7-Nov-05

Core

Drill to TD

Drill to the target coring interval

Trip the assembly out of the hole

Wireline the drilling assembly out of the hole

Drop the inner coring assembly from surface

Wireline the coring assembly out of the hole

How Our System Can Work For You

Wireline in the drilling assembly

Trip in the Corion Express BHA to drill out shoe

One Trip Well Bore

7-Nov-05

• 18 degree standard slip & elevator bevel

• 10,000 ft-lb make up torque

Patented Technology

Corion ExpressCorion ExpressTMTM Drill Pipe Drill Pipe

• Increased string weight for coring and drilling ROP

• No crossovers in string

• Zipped for slips

• Reduced surface handling time

Corion ExpressCorion ExpressTMTM Heavy Weight Heavy Weight

EquipmentEquipment

• 60,000 ft-lb yield torque

• 240,000 Lbs tensile strength

7-Nov-05

Removable slotted liner for core removal Cut 6 small tabs to display undisturbed

core Less than 90 seconds handling time

EquipmentEquipment

Combined the dual catcher into a single system to improve recovery.

Increased recovery rate in coal, shales, and Heavy Oil Cores

Corion ExpressCorion ExpressTMTM Core CatcherCore Catcher

Corion ExpressCorion ExpressTMTM Slotted LinerSlotted Liner

New Geometry

Old Technology

7-Nov-05

Core RecoveryCore Recovery

Mobil Lab allows for samples to be processed in a Controlled Environment

• Furnished with fluoresce white lights and black lights

• Accommodates 60 feet of core at a time

• Provides a controlled environment to work

7-Nov-05

Advanced Cutter Technology

• Increased Efficiency

• Improved Core Recovery and Quality

Replaceable insert for longer PDC bit runs

Open hole logging capabilities with out tripping

• Reduced cost of cleanout trips and stabilizing well bores prior to logging

• Less risk of losing sources in the hole

2-Piece Bit Technology2-Piece Bit Technology

CSS 513

CFM 543

7-Nov-05

Wireline Coring at WorkWireline Coring at Work

Equipment to the rig

Outer core barrel

Inner barrel components

1/8” slick wireline unit or 5/16” braided line

Aluminum sleeves

Required amount of drill pipe

Handling tools

7-Nov-05

SummarySummary

Wireline system works on any Rotary Rig for added penetration rates while drilling or coring

Anti-milling feature prevents loss of valuable core/data

Drilling bit insert may be inserted via wireline to drill out surface casing, drill through transition zones, or drill to TD

7-Nov-05

REEDHycalog Coring REEDHycalog Coring Services Setting a New Services Setting a New StandardStandardAt Fir 57-21W5bridging problems prevented logging tools from reachingbottom.

Corion Express ™ reamed through the bridges, Reeves Wireline compact logging tools were extended through the two-piece bit and the targeted section of the hole was logged on the first attempt.

Thanks to Talisman Energy representatives and the crew of Phelps 23.

New TechnologyNew Technology

Excellence In CoringExcellence In Coring