Western Energy Products & Services (WEPS) … PDC...design • Lateral BHA design with stabilized lower BHA (MWD stability) • Increasing lateral lengths • 10,000 to 15000+ ft •

Western Energy Products & Services (WEPS)

Challenger PDC Reamers

Who We Are…

At Western Energy Products and Services, we are not new to the oil industry. Owned and operated by Alaskan Energy Resources, Inc., Alaska’s “point of contact” for services and technologies for more than 10 years, we have “history” as a premier provider.

Western Energy Products and Services (WEPS) was formed in early 2011 to expand and provide PDC reamer services to the lower 48 states.

With office and support facilities located in Anchorage, Alaska; Roosevelt, Utah; Denver, Colorado; Dickinson, North Dakota, WEPS has a complete engineering support team to offer our customers both in-house and on-site support engineering. Our employees have an average of more than 20-plus years in the Oil Industry, with a full understanding of and excellence in drilling operations.

Challenge for Operators in Williston Basin Wells

• Eliminate dedicated reamer run in Bakken wells

with ream-while-drilling (RWD) application

• Introduction of 5 7/8” OD PDC reamer for use in 6” lateral section: non-mag and steel body tools

• Successful installation of multiple swellable packers – up to 40 per well

• Deliver significant savings per well (up to 3 days rig time)

Hazards of Bakken Slide 4

• 30+ formations from surface to target

• Potential aquifers • Sticking salt,

bentonite beds • Sloughing shales • Known H2S

Williston Basin Well Design

• 8 ¾-inch vertical hole and build section in target formation at 9,000’ to 10,000’ TVD

• 6-inch hole lateral section in Bakken at around 11,000’ TVD

• Lateral up to 9000’ – 10,000’

• Multiple swell packers to TD

Slide 5

BAKKENWELLBORE SCHEMATIC

,

4 ½” 11.6# HCP-110 LTC @ 20,430’ MD6” Diam. Hole

7” 29&32# P-110/HCP-110 LTC @ 11,059’ MD8 ¾” Diam. Hole

9 5/8” 36# J-55 LTC @ 2,322’13 ½ “ Diam. Hole

Top of 4 ½“ Liner @ 10,198’ MD

KOP @ 10,297’ MD

TD @ 20,434’ MDTVD = 10,713’

7” 29# P-110 LTC (0’-7191’)7” 32# HCP-110 LTC (7191’-9462’)7” 29# P-110 LTC (9462’-11059’)

Hybrid: 35 oil swell pkrs w/ 15 sleeves in toe; 36 stage P&P/sleeve hybrid

ROD DETAIL AS OF Description Length MD

Total MDTUBING DETAIL AS OF

Description Length MD

Total MD

9 5/8” Cement JobLead: 250 BBLS (441SX) 11.2# CLASS CTail: 60 BBLS (225 SX) 14.2# CLASS Cbumped plug; cmt returns

7” Cement JobLead: 70 BBLS @ 11.6# = 161 SKS CLASS G:POZ W/ 100 LBS CEMNETTail: 182 BBLS @ 15.5# = 573 SKS CLASS G W/ 300 LBS CEMNETbumped plug; full returns

Top of Cement @ 2,920’ MD

Swellable Packers

• 4-1/2” base pipe • 5.5” – 5.75” element

OD • 3-7ft element length • 20-40 packers per

10,000’ 6” lateral section.

Slide 6

What is the cost of not getting liner / packers to TD?

Slide 7

Which is better? A dedicated clean out reamer run or ream while drilling ?

Could you go in and renovate the house below (located in Ward County)?

Dedicated clean out run is an after the fact situation – ideally we would like that

nice smooth lateral to start with ie the new home – skip the renovation

Slide 13

The Importance of Hole Quality Slide 9

The Impact of Poor Hole Quality Slide 10

An Innovative Solution

• Incorporate PDC Reamer to drill/ream in 6” hole

• Eliminates need for dedicated reamer run

• Delivers high quality wellbore for multiple packer completion

Slide 11

Are All Reamers Created Equal? Slide 12

Ream-While-Drill (RWD) Tool Design Requirements

• Design a PDC reamer tool with low manageable torque

• Design a PDC reamer tool with enhanced sliding / steerability features

• Insure successful packer installation at well TD (eliminate any clean out runs)

• Offer both steel and non-mag tools for optimal BHA Design

• Offer specific well / rig tool connections to eliminate need for x-overs.

Slide 13

Slide 14

WEPS Challenger PDC Reamer Low / Manageable Torque

• PDC cutters set slightly lower than tool

OD

• No-go Gauge ring passes over PDC cutters and stops on TCI cutters

• Reduces torque by having PDC cutters smooth ledges but not drilling new formation

• Ability to drill out of casing and only have flat / mesa top TCI cutters in contact with inside of casing during drill-out.

Slide 15

WEPS Challenger PDC Reamer Improved Sliding / Steerability

• Flat / mesa top TCI profile cutters –

improved sliding operations

• Wider blade profile – improved sliding operations

• Decrease in blade spiral for increased junk slots / flow channels and to improve sliding operations.

WEPS Challenger PDC Reamers Specialized Equipment for Getting Swelling Packers to Bottom

Slide 16

WEPS Challenger PDC Reamer Tool

Reamer with Drilling Functionality • Reduce back reaming time • Removal of Irregularities for

smoother POOH • Better hole quality

Removes hole irregularities by: • Scraping • Cutting (Shearing)

Dual cutting mode ideal for transition drilling

32 PDC cutters (redundant) for

optimal hole cleaning 152 flat / mesa profile type TCI cutters

for optimal gauge protection – TCI cutter height 1/8”

Slide 17

Slide 18

WEPS Challenger PDC Reamer Features

• PDC cutters on leading edges of blades

• Allow re-opening holes to avoid having stuck pipe during POOH

• Reduce torque and drag in highly irregular holes

• Improve hole gauge and shape by removing ledges and irregularities

• Allow opening key-seats & ledges

• Acts as backup hole opener when bit gets under-gauge

• Cutter design and distribution to match application severity

Conclusions: Use of WEPS Challenger PDC Reamers

• 100% successful swellable packer installations • No issues with steerability • Increase in rotary ROP – smooth well bore,

greater on bottom WOB • Low / manageable torque • Versatile RWD BHA using both non-mag and

steel body PDC reamer tools • Eliminates dedicated reamer run • 3 days rig time savings per well

Slide 19

Impact of Use of New Technology

• Evolution of Williston Basin well design

• Lateral BHA design with stabilized lower BHA (MWD stability)

• Increasing lateral lengths • 10,000 to 15000+ ft

• Increasing number of swell packers installed • From 8 to 40+ swell packers

per well • Poised to respond to future

changes…

Slide 20

Rockin’ (Reaming) in the Bakken • Innovative solution using PDC Reamer proven in multiple wells • Reamed-while-drilling (RWD) in excess 3,000,000’ of hole / over 300 wells in ND/MT • Eliminates need for dedicated reamer run • Saves average of 3 days/well • $225K savings per well • Established ‘best practice’ for Williston Basin wells

Slide 21

WEPS Optional Challenger PDC Reamer Tool Designs

• WEPS strives to improve on current PDC reamer design with feedback from operators and DD companies.

• WEPS manufactures all of our Challenger reamers in the US

• We have the ability to react very quickly to customers needs and can design and manufacture new designs / sizes in about 6 weeks.

• WEPS currently has 8-5/8”, 6”, 5-7/8” and 5-3/4” OD tools available for use in 8-3/4”, 6-1/8”, 6” and 5-7/8” hole sizes.

WEPS Optional Flush Mount Challenger PDC Reamer Tool

WEPS New Twin Blade Challenger PDC Reamer Tool

WEPS 8-5/8” Challenger PDC Reamer Tool

WEPS New Designs / Sizes 9-3/4” OD Challenger PDC Reamer

Tool


Tool


Tool

Acknowledgements/Thank You/Questions

Through combined efforts of proven North Dakota operations groups, rig and service companies, application of this new technology in Bakken wells: has eliminated the dedicated reamer run at TD while delivering good wellbore condition that enables multiple swellable packers to be run in a single, fast trip. Those operators, drilling contractors and service contractors are gratefully acknowledged for their support in moving this project forward, along with WEPS / AER field service personnel.

Documents

Western Energy Products & Services (WEPS) … PDC...design • Lateral BHA design with stabilized lower BHA (MWD stability) • Increasing lateral lengths • 10,000 to 15000+ ft •