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    Copyright 2006 by ConocoPhillips Company. All rights

    reserved. No part of this publication may be reproduced in any formwithout the express permission of ConocoPhillips Company.

    Advanced Drilling: A Technology FocusArea for ConocoPhillips

    Michael Wheatall

    Drilling Engineering and Operations Manager,

    Upstream Technology

    ConocoPhillips, Inc.

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    Advanced Drilling: COP Focus AreasAdvanced Drilling: COP Focus Areas

    Drilling with Casing

    Coiled Tubing Drilling Extended Reach/Multi-Lateral/Designer Wells

    HPHT Drilling Managed Pressure Drilling

    Wellbore Strengthening

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    Drilling with CasingDrilling with Casing

    Worlds 1st DWC

    and Surface BOPfrom floating rig

    Conventional time:

    91 hrs With CWD and

    Surface BOP: 29

    hrs

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    Types of Casing Drilling

    2000+ Casing Sections

    Types of Casing Drilling2000+ Casing Sections

    51%

    31%

    18%

    Non-RetrievableBHA Liner Drilling

    (surface liners andtrouble zones)

    Non-Retrievable BHA

    Casing Drilling(conductors, vertical wells,and drillable bits)

    Retrievable BHACasing Drilling

    (directional, multiple bit runs and

    formation evaluation)

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    Why Drill With Casing?Why Drill With Casing?

    CONVENTIONALDRILLING PROCESS

    Since 1901

    CASING DRILLINGPROCESS

    1998 Future

    CABLE TOOLPROCESS

    1850 1930

    Rock Destroying slow FAST FAST

    Hole Cleaning slow FAST FAST

    Tripping FAST slow FAST

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    Stabilizer

    Underreamer

    Stabilizer

    ponycollar

    PDC

    Bit

    External BHA

    Crimp-onStabilizer

    Crimp-on

    Stabilizer

    Crimp-onStabilizer

    CasingStabilization

    Profile

    Nipple

    Casing

    Internal BHA

    DLA

    Stabilizer

    Spacer

    Collar

    How Do You Drill With Casing?How Do You Drill With Casing?

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    Lobo TrendLobo Trend

    Casing Drilling began in 2001 to reducetrouble time

    120 wells (1.6 million feet of hole) have beendrilled with casing

    Lost circulation was almost completely

    eliminated Zero stuck pipe incidents

    An active drilling program continues where

    casing drilling candidates are selected basedon expected problems.

    The need to drill directionally is increasing.

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    BMT EastBMT East

    Spud to Cementing of Intermediate Casing

    200 - 300 sack balanced cement plug

    7

    Csg.

    May 2002

    10 days

    8,103

    Casing Drilled

    9 5/8

    Csg.

    4 1/2Csg.

    5 1/2

    Liner

    5,145

    7Csg.

    9,400

    Conv. Offset 2

    9 5/8

    Csg.

    3 1/2Csg.

    Sept 2001

    19 days

    5 1/2

    Liner

    7

    Csg.

    6,917

    8,162

    Conv. Offset 1

    9 5/8

    Csg.

    3 1/2Csg.

    7Csg.

    7,985

    5,272

    8,185

    Conv. Offset 3

    9 5/8

    Csg.

    4 1/2Csg.

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    BMT East C2 WellBMT East C2 Well

    7

    Csg.

    $7,000 Trouble

    8,143

    Casing Drilled

    9 5/8Csg.

    4 1/2Csg.

    Conventional

    9 5/8Csg.

    $184,000 Trouble

    4,380

    Conventional Rig Drilled & set surface csg

    Lost circ at 4,380 ft Could not cure lost circ.

    Temp. abandoned well

    Casing Drilling Rig Moved over well

    Drilled out plugs

    Cured lost circ. by drilling ahead

    Well completed

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    Casing Drilling CuttingsCasing Drilling Cuttings

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    Smear EffectSmear Effect

    Whole Mud Sieve Analysis

    0

    10

    20

    30

    40

    50

    8 20 50 100

    140

    200

    >20

    0

    API Sieve Size

    %S

    olidsRetained

    Casing Drilled

    Conventional Drilled

    Fine

    UltraFine

    Co

    arse M

    edium

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    Casing Drilling BenefitsCasing Drilling Benefits

    Safer operations well control, pipe handling

    Reduced trip time

    Reduced open hole trouble time 50% (Lobo)

    Reduced drilling time - 15% (Lobo)

    Reduced Cost

    Uses conventional bits, BHAs and casing

    Enhances UB and Managed Pressure Drillingtechniques

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    Less Subtle BenefitsLess Subtle Benefits

    Dont fight problems, case them off instead

    Rig loads smaller Hydraulics needs are less No overpull needed

    No setback area

    Drill pipe (casing) is always new

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    Retrievable Casing DrillingBottom Hole Assembly

    7 Casing SectionVertical Wells

    DLA(Drill Lock

    Assembly)

    8 jts7 5/8-in.

    casing

    7-in.23 lbm

    casingto surf

    TandemCasing

    (internal)Stabilizer

    SpacerDrill CollarCasing

    shoe

    Under reamer(6 1/8 to 8 7/8)

    Tandem(external)Stabilizer

    6 1/8 PDC bit

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    ConocoPhillipsWell 83

    Casing Directional DrillingBottom Hole Assembly

    with Steerable Motor

    Under reamer(6 1/4 to 8 7/8-in.)

    Bent Housing Motor4 -in. then 5 -in.(1.5 deg bend)

    casingshoe

    TandemCasingStabilizer

    Drill Lock

    Assembly(DLA)

    7-in.23 lbmcasingto surf

    non-magdrill collar

    VibrationsMonitoring

    sub

    MWD

    Float sub

    6 -in. PDC bit(3x15 nozzles)

    Conoco Phillips

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    Under reamer(6 1/8 to 8 7/8)

    TandemCasingStabilizer

    DLA(Drill LockAssembly)

    7 23 lb

    Casingto surf

    Casingshoe

    Tandem(external)Stabilizer

    Drill Collar

    Filter sub

    4 -in. RotarySteerable System

    94 ft

    67

    5200 lbs

    3 IF

    Conoco PhillipsWell 89

    Casing Directional Drilling

    BHA w/ Rotary Steerablefor Verticality

    Total Length

    Stick-out Length

    Hanging weight(in mud)

    connections

    Spacer

    Drill Collar

    6 1/8-in. PDC bit(4x10 nozzles)

    Well 91: Full Directional Test

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    Well 91: Full Directional Test

    -1200

    -1000

    -800

    -600

    -400

    -200

    0

    200

    -600 -400 -200 0 200

    Easting (E/-W), ft

    N

    orthing

    (N/-

    S),

    ft

    0

    1000

    2000

    3000

    4000

    5000

    6000

    7000

    0 1000 2000

    Displacement, ft

    TVD,

    ft

    Horizontal PlotVertical Plot

    target

    Well 91Well 91

    Well 79

    Well 79

    Surf

    Loc

    SurfLocTD

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    Conoco PhillipsWell 91

    Casing Directional DrillingBottom Hole Assembly

    With Rotary Steerable Syste

    Jet Sub

    (1x10 nozzle)

    Under reamer(6 1/8 to 8 7/8)

    6-in. StraightMotor

    TandemCasing(internal)Stabilizer

    DLA(Drill LockAssembly)

    8 jts7 5/8-in.casing

    7-in.23 lbmcasingto surf

    Tandem(external)Stabilizer

    MWD system

    Filter sub

    4 RotarySteerable System

    6 1/8 PDC bit(4x10 nozzles)

    Total LengthStick-out Length

    Hanging weight(in mud)

    112 ft85

    6200 lbm

    Casingshoe

    RSS Drilling EfficiencyRSS Drilling Efficiency

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    RSS Drilling EfficiencyRSS Drilling Efficiency

    ROP was within 10% of offset vertical well

    Casing drilling benefits captured: No lost circulation events

    Minimal reaming time No difficulties in setting casing

    OBM not required

    Eliminated difficulty of Casing Drilling with steerablemotor No sliding problems

    No motor stalling problems

    However Vibrations were significant

    Multiple RSS washouts

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    Key QuestionKey Question

    Can the straight hole benefits and initial

    directional successes realized in the Lobo Fieldbe transferred to directional casing drilling in ahigher cost offshore environment, such as

    Norway?

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    2005 Field Test Objectives2005 Field Test Objectives

    Directionally drill with larger casing

    sizes used at Eldfisk (10-3/4 & 7-5/8) Identify and correct any problems withnew tools

    Provide information required to qualifyequipment and tools for use in Norway

    Perform directional casing drilling on aconventional rig similar to Norwayplatform rig

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    Split Block

    Swivel with space forWireline BOP

    Top Drive System

    Casing Drive System

    10 -in. casing

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    7 5/8 T t S7 5/8 T t S

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    7-5/8 Test Summary7-5/8 Test SummaryDisplacement (ft)

    TrueVerticalDepth

    (ft)

    Previously drilled wellw/10 casing to 3769ft

    600ft HZdrill 844 ft

    w/7 5/8 csg

    TD 4884 ft

    DLA/UR set/retrieval tests

    planned at 0, 45, and 90 deg

    0

    500

    1000

    1500

    2000

    2500

    0 600 1200 1800 2400 3000 3600

    10 3/4 T t S10 3/4 T t S

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    10-3/4 Test Summary10-3/4 Test Summary

    0

    500

    1000

    1500

    2000

    2500

    3000

    3500

    4000

    4500

    -500 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500

    Displacement

    TrueVertica

    lDepth

    (ft)

    13 3/8 csg @2003ft

    KOP: Build to 50 deg testing different rates (planned)

    TD 5000ft

    Actual Total Depth of the test was 2966 ft, with 15degrees of inclination built.

    (planned depth)

    ConclusionsConclusions

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    ConclusionsConclusions

    Both Directional Casing Drilling tests were a cost

    effective dress rehearsal for Eldfisk Norway Directional Casing Drilling technology was

    successfully transferred to new casing sizes

    Rotary steerable system in the pilot holeprovides effective directional control

    Vibrations in the BHA are better understood,their effects have been reduced

    O t N !On to Norway!

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    On to Norway!On to Norway!

    Two Eldfisk wells will be casing drilled in

    May 2006

    50 degree maximum angle

    10-3/4 to 5100 ft (md)

    7-5/8 to 10800 ft (md)

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    Coiled Tubing Drilling

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    Coiled Tubing Drilling

    CTD is Drilling with

    One Long Joint

    Still Need All DrillingEquipment

    Shelter

    Solids Control

    Pumps, Tanks,

    Mast... Etc Combined CT/Rig

    1st Generation Alaska CTD OperatioWith Drilling Platform

    Courtesy ConocoPhillips

    2nd Generation CTD in Alaska

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    Courtesy BP and ConocoPhillips

    Coiled Tubing Drilling UnitCoiled Tubing Drilling Unit

    Conventional Drilling packageConventional Drilling package

    Arctic Coiled Tubing UnitArctic Coiled Tubing Unit

    2nd Generation CTD in Alaska

    Work Over UnitWork Over Unit

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    3rd Generation CTD Unit: Alaska

    Courtesy BP, ConocoPhillips and Schlumberger

    Workover Rig in Grey

    CTU in Orange

    Unitized and Self-Powered

    Sister Rig Added toCTD Fleet

    CTD: Why all the Interest?

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    CTD: Why all the Interest?

    0

    27.52%

    55.04%

    82.56%

    110.07%

    137.59%

    165.11%

    192.63%

    NewWe

    ll

    NewWe

    ll

    NewWe

    ll

    NewWe

    ll

    NewWe

    ll

    NewWe

    ll

    Sidetra

    ck

    Sidetra

    ck

    Sidetra

    ck

    Sidetra

    ck

    Sidetra

    ck

    Sidetra

    ck

    Sidetra

    ck

    Sidetra

    ck

    Sidetra

    ck

    Sidetra

    ck

    Sidetra

    ck

    CTDS

    /T

    CTDS

    /T

    CTDS

    /T

    CTDS

    /T

    CTDS

    /T

    CTDS

    /T

    CTDS

    /T

    CTDS

    /T

    CTDS

    /T

    CTDS

    /T

    CTDS

    /T

    CTDS

    /T

    CTDS

    /T

    WellCostPe

    rcentage

    100%

    73%

    31%

    Program Dev. Costs - $/bbl

    New Wells - 100% $/BblSidetracks - 113% $/Bbl

    CTD S/Ts - 69% $/Bbl

    Reserves Development Costs

    Greater Kuparuk AreaGreater Kuparuk Area

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    Greater Kuparuk Areap

    CTD Historical Well Count(includes incomplete wells)

    0

    5

    10

    15

    20

    25

    30

    1998 1999 2000 2001 2002 2003 2004 2005

    # Wells

    # Laterals

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    High Rate 1D-11High Rate 1D-11

    Multi-lat C sand lateral

    & maintained motherbore

    First Two-window/two-lateral design allowsfuture isolation and re-

    entry into each lateral

    Longest KRU CTDLateral on record:

    Lat 1 : 2,202 / 2,015Lat 2 : 2,812 / 2,584

    Initial well tests >5,500 bopd!

    2005 CTD Accomplishments at GKA2005 CTD Accomplishments at GKA

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    2005 CTD Accomplishments at GKA2005 CTD Accomplishments at GKA

    Extended Reach Records for 2 CT (1D-34)

    Drilled depth 18350 md (2.2:1)

    Lateral length 2630 md

    Window milling depth 15721 md OH sidetrack depth 17935 md

    Pushing the Envelope: 1Q 04 Quad LateralPushing the Envelope: 1Q-04 Quad Lateral

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    Pushing the Envelope: 1Q-04 Quad LateralPushing the Envelope: 1Q-04 Quad Lateral

    5224 drilled footage Lower quality A-sand

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    Casing Drilling and CTD:

    Proven Yet Still Evolving

    Technologies

    Whats Next?

    Casing Drilling and CTD:

    Proven Yet Still Evolving

    Technologies

    Whats Next?

    Remote Land Based Exploration WellsRemote Land Based Exploration Wells

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    Remote Land-Based Exploration WellsRemote Land-Based Exploration Wells

    Challenged Economics for Rotary Drilling:

    Market driven drilling cost inflation

    Mature basins: smaller structures/reserves Shorter drilling seasons (Canada/Alaska)

    Tighter environmental restrictions Difficult logistics is major cost driver

    O r ChallengeOur Challenge

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    Our ChallengeOur Challenge

    Reduce cost of remote land-based exploration drilling by

    50% while meeting formationevaluation requirements.

    Plan of Attack: Think SmallPlan of Attack: Think Small

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    Plan of Attack: Think SmallPlan of Attack: Think Small

    Smallest hole sizes possible Reduce materials and logistics cost

    Existing technologies and equipment

    Leverage ConocoPhillips expertise

    Casing drilling Coiled tubing drilling

    Requirements 10,000 depth capability Formation evaluation

    Rig Options StudiedRig Options Studied

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    Rig Options StudiedRig Options Studied

    Mining Industry Coring Rigs Depth limitations

    Slow drilling in overburden

    Major modifications to mud system and well control 1990s Vintage Slim Hole Rigs (4-3/4 min hole size)

    Small footprint

    Rolligon, truck or heli-transportable

    Lengthy move and set-up

    Inefficient drilling (lacks automation)

    Automated Small Conventional Rig

    Swift move and set-up Drill efficiently

    Reduced personnel exposure

    Large, heavy load while moving

    Western Canada Shallow GasWestern Canada Shallow Gas

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    Western Canada Shallow Gas

    Fit for Purpose Hybrid Coil/Rotary Rig

    Hybrid CT/Rotary Drilling UnitsHybrid CT/Rotary Drilling Units

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    yb d C ota y g U tsy y g

    Wells drilled and cased in about one day

    Two wells per day possible

    Typical 3000 Well:

    7 inch surface casing 8-1/2 hole drilled with 3-1/2 CT or DP

    4- inch production casing

    6 hole size drilled with 3-1/2 CT

    Western CanadaWestern Canada

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    Western CanadaWestern Canada

    Coil Tubing Drilling Rigs

    15 1722 25

    36

    67

    0

    20

    40

    6080

    2000 2001 2002 2003 2004 2005Year

    Hybrid Rig Count

    CanadaCanada

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    Wells Drilled by Rig Type

    0

    5000

    10000

    15000

    20000

    25000

    2000 2001 2002 2003 2004 2005

    Numbe

    rofWells

    Hybrid Drilled Wells Conventionally Drilled Wells

    Small FootprintSmall Footprint

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    pp

    Drilling with CT - Mast Down DesignDrilling with CT - Mast Down Design

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    Automated Pipe Handling SystemAutomated Pipe Handling System

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    p g y

    Automated Pipe Tub TrailerAutomated Pipe Tub Trailer

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    pp

    Touch Screen Control PanelTouch Screen Control Panel

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    Drilling with CT - Mast Up DesignDrilling with CT - Mast Up Design

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    Automated Rig ControlsAutomated Rig Controls

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    Automated Pipe Rack with SkateAutomated Pipe Rack with Skate

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    Top DriveTop Drive

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    Zero Discharge Mud SystemZero Discharge Mud System

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    MovingMoving

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    MovingMoving

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    But Can these Rigs Drill aBut Can these Rigs Drill a

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    g

    10,000 Exploration Well?10,000 Exploration Well?

    4500 maximum depth with 3-1/2 CT

    6000 maximum depth with 2-7/8 CT

    Low capacity mast (150-200 klb)

    Small mud pump (650-850 hp)

    Approach: Think Small & Work WellDesign from the Bottom Up

    Approach: Think Small & Work WellDesign from the Bottom Up

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    Design from the Bottom UpDesign from the Bottom Up

    4-1/8 final hole size 3-3/4 bi-center bit (helps with ECD)

    Contingency liner option (3-3/16) Extensive experience with this hole size to 18,000 md

    Drilling Tools: proven and available

    Wireline telemetry Bent housing mud motors

    MWD/GR/Resistivity

    2-1/4 wireline logging tools Conventional coring equipment

    Complete with 2-3/8 or 2-7/8 SL tubing

    Slim HoleSlim Hole

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    Slim Hole

    Design

    No Intermediate

    Casing4-1/2 x 2-3/8

    Final Hole Size:4-1/8

    Slim Hole

    Design

    No IntermediateCasing

    4-1/2 x 2-3/8

    Final Hole Size:4-1/8

    Slim HoleDesign

    Slim HoleDesign

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    Design

    Intermediate

    Casing

    7 x 4-1/2 x 2-3/8

    Final Hole Size:4-1/8

    Design

    Intermediate

    Casing

    7 x 4-1/2 x 2-3/8

    Final Hole Size:4-1/8

    Main Issue: Hybrid Rig LimitationsMain Issue: Hybrid Rig Limitations

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    4500 depth limitation based on 3-1/2 CTD to TD

    3- CT marginal for 8-1/2 surface hole drilling

    10,000 of 3- CT too much for current hybridrigs and difficult to move

    Increases final hole size beyond needed 4-1/8

    Solution: Casing/Coil HybridSolution: Casing/Coil Hybrid

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    Integrate casing drilling technology

    Casing drill surface hole and intermediate hole Eliminates need for large diameter CT

    Casing drilling plus slim hole design greatly extends

    depth range for mast and pumps Retrievable BHA not needed for straight hole sections

    2-3/8 coil tubing to drill final 4-1/8 hole Extends rig capacity 10,000 depth

    Formation Evaluation OptionsFormation Evaluation Options

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    2-1/4 Wireline Logging Tools Array induction

    Dual Laterolog

    Compensated neutron

    Compensated photo-density with PE

    Compensated sonic

    Standard gamma ray

    MFT (pressure tester only) on wireline

    High Resolution Micro Imager

    Conventional Coring

    Well Test through Tubing

    Summary: Casing/Coil Hybrid Advantages(over conventional rotary drilling)

    Summary: Casing/Coil Hybrid Advantages(over conventional rotary drilling)

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    Automated Rig Benefits Reduced personnel exposure

    Fast move and rig-up Small location size

    Top drive

    Slim Hole Well Design Benefits Reduced tangible costs

    Reduced mud and cement volumes Reduced cuttings and waste fluid disposal

    Reduced hauling

    Facilitates zero discharge

    Casing/Coil Hybrid AdvantagesCasing/Coil Hybrid Advantages

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    Casing Drilling Benefits Smaller rig, less fuel, reduced emissions Reduced trip time

    Reduced trouble time (smear effect and notripping)

    No drill string reduced hauling

    Coiled Tubing Drilling Benefits

    Faster drilling (no connections)

    Reduced trip time

    Managed Pressure Drilling/Underbalanced Drilling

    Facilitates use of Oil Based Mud

    ConclusionsConclusions

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    Cost reduction goal is achievable

    Casing/Coil Hybrid Drilling Concept isfeasible using current technology andavailable equipment

    Other Applications Possible

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    QUESTIONS?