Drilling with Casing

“Reduces Cost and Risk”

OVERVIEW

TESCO CASING DRILLING™

Asia Pacific Business Unit

DOUG REID LONNIE WERCHOLUK ANDREW HARRIS

Casing Services Manager Casing Services CASING DRILLING™ Engineer

Office: +62 21725 5454 Office: +65 6333 7500 Office: +65 6333 7502

Mobile: +62 811841151 Mobile: +60 12 327 9612 Mobile: +65 8138 8710 Email: doug_reid@tescocorp.com Email: lonnie_wercholuk@tescocorp.com Email: andrew_harris@tescocorp.com

Outline

• Overview of Tesco Corporation

• What is and Why drill with Casing

• Definition of a good CASING DRILLING™ Candidate

• Available Systems, Commercial Experience

• Overview of Casing Drilling Equipment and operations

• CASING DRILLING™ Project planning

• Case Histories

• Summary / Conclusions

Who Is Tesco?

Tesco Corporation is a global leader in the design, manufacture and service of technology-based solutions for the upstream energy industry. With a strong commitment to creating exceptional value, Tesco is able to leverage in-house research and development to take innovative solutions from concept to commerciality.

Calgary Facility Houston Facility Machining Facility - Calgary

Defining features. . .

Tesco Corporation

• A Service Company with global infrastructure

• Over 1600 employees, operating in 23 Countries

• Pioneer and leader in portable Top Drives, CASING

DRILLING™ , Casing Running Services

• An award winning and strong technology based

organization

– Over 100 Patents/ Patents Pending

– 21 Technical Papers

– World Oil 2002 Next Generation Idea Award

• Unique combination of services that include the

power train from the Top Drive, to Casing Running to

drilling a well with Casing.

DRILLING WITH CASING - A Definition

A rotary drilling process:

• That “cases” the well as it is drilled

• Where the well “casing” is the drillstring

• Where the “casing” provides hydraulic energy and mechanical

force to the cutting structure

CASING DRILLING™

– All BHA’s are tripped through the casing without removing it.

– The BHA can be Rot. drilling assembly, Motor and RSS directional assembly, etc.

– At casing point the BHA is pulled and the casing cemented in place.

A rotary drilling Process…

The ‘Good Candidate’

Wells with Borehole Stability Problems

Wells with significant Lost Circulation

Wells where depleted/ normally pressured zones are encountered

Wells where CASING DRILLING® can eliminate a casing string through

slimming down well design

CASING DRILLING® eliminates problems related to tripping as BHA’s are

trip in/out of the hole inside casing

Utilising a small rig –Single mast, small pumps, Limited Horsepower

CASING DRILLING® Candidate Selection

Available Casing Drilling® Systems

PDC Pilot Bit

Rotary

Steerable

MWD / LWD

Roller Reamer

Under- Reamer

PD Motor

Casing Shoe

Casing Profile

Nipple

Drill Lock

Assembly

Internal

Stabilizers

Casing String

Non Retrievable – Drillable Casing Shoe

+ No rig modification, very easy to implement

+ Can drill out for subsequent casing strings

- Vertical holes only and 1 bit / hole section Directional Retrievable BHA’s –

Level 3 & 4

+ Allows for multiple bit/bha changes

+ Allows directional control, LWD

+ No Rig Modifications Required

- Requires up-front Eng. / planning.

Float Collar

Tesco XCD™ diamond enhanced

CASING DRILLING® Bit

Casing String

designed to drill soft to medium-soft

formations at high rates of penetration

7,500psi UCS

D-exp < 1.0

Levels of CASING DRILLING™ Systems

Complexity

Drilled with disposable bit

Drilled with drillable shoe. i.e. XCD2, EZ Case

Drilled with retrievable assembly

332

37

600

67

Drilled while Coring with Casing 7

26

Directional CASING DRILLING™

Casing Drilled with

Rotary Steerable Tools

CASING DRILLING® Experience

3,000,000 plus feet drilled

Updated May 2009

Reaming Tools – Level 1

Tesco’s Warthog

Casing Reamer

Tesco’s XCD™ 2

Casing Drill

TESCO can provide a selection of

tools best suited to the well bore

conditions to ensure that the

casing string can be run or drilled

to bottom.

XCD™ Drillshoe – Level 2 Drill-ins

• Body made from forged Steel

• Spiralled blades to minimise Vibration

• Premium PDC cutters lead / gauge of blades

• Nose set with TSP diamond cutters

• Coated with high density tungsten carbide

• Fitted with Nozzles for hydraulic optimisation

Formations of up to 7,500psi UCS

Features of the XCD2

5 1/2"Casing

PDC Pilot Bit

Under-Reamer

PD Motor (Bent Housing)

LWD

MWD

Jar

Drill Collar

Torque Anchor

Stop Dogs Axial Lock

Bypass Seal Assembly

Quick Release Connect Top Sub

l

Stabilizer Sub

Level 3

CASING DRILLING™ Retrievable Motor Assembly

Casing Profile Nipple

Casing Shoe

Drill Lock Assembly

Setting and retrieving Overview LEVEL 3 – Drillpipe conveyance

PDC Cutter Design

Type 5 – Dual 13mm Cutter

Type 5 – Underreamers – Design Considerations

• Bit Selection & Rock Strength analysis

• Match Bit / Underreamer cutter

• Include Premium cutters – 13mm / 16mm / 19mm

NOTE: Shell Rocky Mtns USA – 8 1/2” Type 5 formations up to 20,000psi

NOTE: Hess Indonesia – 17 1/2” Type 5 formations up to 30,000psi

Type 5 – 19mm Cutter

Casing Drive System™ Features & Benefits

• DESIGNED FOR CASING DRILLING™

• Fast rig up and rig down!

• Connects directly below the Top Drive

• Adapts to All Top Drives – rig survey req.

• WILL MAKE UP THE CASING – No Tongs!

• Eliminates conventional casing running equipment:

• Allows simultaneous rotation and circulation of casing

• CAN REAM & PERFORM WIPERTRIP WITH THE CASING

Performed 600 jobs in AP – 450 with Premium Conn.

North America extended reach liner record

6,790m (md) with a 1,696m(tvd)

10 ¾” x 9 5/8” L-80 Csg, c/w Hydril 563 connections

Key Success – Ability to rotate the csg to reduce

Frictions

HYDRAULIC ACTUATOR

API 6 5/8” REG RH CONNECTION

STABBING GUIDE

PACKER CUP

TRIP & TORQUE GRAPPLE

LENGTH 10’

Internal Drive Tool

7” – 20”

“Game Changing” technology that makes

Operations Safer

• Eliminates • Stabber in derrick

• Power Tongs

• Traveling Rig Elevators

• Elevated Work Platforms

• Casing Fill-up tools

• Rig Floor hands

• Circulating head

• Reduces

• Risk of Stuck Casing

• Risk of not getting casing to TD

• Well Control Incidents

Fewer Lifts to Rig Floor

- CDS w/ travel frame ready to

lift from the catwalk

- CDS on rotary table for rig up

. Running 9-5/8”Vam Top Casing .

1. Pick Up CDS.

2. Make up CDS to top drive.

3. Place joint in V-door with crane.

4. Hoist Joint with CDS.

1

4

3 2

. Running Casing .

5. Tail in joint.

6. Stab joint.

7. Stab CDS.

8. MU & Tq connection.

5 6

8 7

Uncluttered Floor While Running Casing

Project Selection / Engineering Overview

Project Selection and Planning

Identify fundamental driver

Economics

Review Conventional NPT times vs CASING DRILLING™ Time /

cost benefits

Technical

• Optimize the well plan for CASING DRILLING™

Curvature limitations

Torque and drag

Stress Analysis

Hydraulics

Drilling assembly selection

TESCO CASING DRILLING® ENGINEERING SOFTWARE

Provide complete Engineering review

of CASING DRILLING® well program:

– Casing Design

– Casing Connections

– Bits, Mud, Cementing Programs

– Directional Program

– Hydraulics – Sensitivities ECD/ AV

– Well Control

– Torque and Drag Analysis

– Fatigue

– Buckling and Wear

Overview Well Control – Level 3

CASING DRILLING™ Well Control

Five Scenarios in CDWC where potential for a Kick – Level 3

Drilling, 0n-bottom – BHA locked into casing

Tripping the Dir. BHA on DP – False rotary table

Handling the BHA on surface – False rotary table

Out of hole with BHA, open ended Casing String

Tripping the BHA, with the Casing Hung in wellhead

Detailed plan with all rig personnel as to the correct monitoring of the well,

Mitigations to prevent an influx and Actions to be taken in case of a

Kick.

CDWC - Scenario 1 – Drilling on bottom

Primary Barrier Drilling Mud wt.

Secondary Barrier BOP – Casing Rams Casing Drive System (CDS™) DLA Pack-offs

Float in BHA Competent Shoe

Action to Take (if a kick occurs) Risk Mitigation in Place (to prevent a Kick)

Stop pumps (unless on a connection and the pumps are already stopped) and space out to ensure that a casing

coupling is not across the rams in the BOP’s.

Drilling with sufficient mud wt to prevent an influx. Keep the annulus full, top up on the backside if required

Higher ECD available while CASING DRILLING™ Monitor drain back on every connection Crew to perform Kick Drills

Shut in Well with Annular BOP

Obtain SIDPP & SICP

Kill Well with the Driller’s Method. Note: Will have an SCR with the BHA off bottom

and the DLA engaged as flow goes thru the BHA.

An example…….

TESCO EXPERIENCE WITH

DIRECTIONAL CASING DRILLING

STEERABLE MOTOR FIELD OBSERVATIONS (~50+ directional motor sections drilled)

Directional control dependent on casing size.

•13-3/8” & 9-5/8” & 7” similar to conventional

•Directional control get more difficult with smaller sizes

Wells drilled with inclinations to 90o.

Motor assemblies have a natural build tendency

Dropping angle requires more sliding than building.

Motor selection more critical than for conventional well

• Conventional: 12 ¼” hole => 9-5/8” or 8” motor

• Casing Drilling: 12 ¼” hole => 6.75– 7” motor.

Orientations are achievable / Sliding may require rocking.

No

n-

Mag

MW

D

Mo

tor

Rotary Steerable CASING DRILLING® System

• Same surface equipment as conventional

• Same casing accessories.

• Rotary steerable tool run in pilot hole

below underreamer.

• Mud motor is used to get rpms to bit.

• Eliminates sliding problems, increases

ROP and drills smoother hole.

• Casing Drilled 10 ¾”, 9 5/8”, 7 ¾” and 7”

Motor

Under- reamer

Stabilizers

MWD

RSS

Bit

Casing

Shoe

CASE HISTORIES

Case Study – Offshore QATAR

TESCO’s CASING DRILLINGTM technology, implemented to drill Unstable Shale formation at high inclination. When Conventionally drilled :

• Shale unloads massive amount of cuttings

• Significant hole enlargement seen in caliper logs.

• Multiple incidents BHA’s lost in hole / not get casing to TD

CASING DRILLING™

•Successfully performed CD operations with no safety incidents or issues

•No rig modifications were required

•9-5/8” 47 lb/ft L-80 BTC with MLT™ Rings, casing drilled 2,025 feet

•Drilled with 9-5/8” casing from 28 to 75 - degrees inclination while

making a 26-degree turn utilizing RSS

•Eliminated losses and no stuck pipe

•Drill Pipe retrieval operation

•Drilled a gauged hole with no DHT failure

Mud

Motor

Under- reamer

Stabilizers

MWD

RSS

Bit

Casing

Shoe

Drill-

Lock

Assy.

Case Study – Offshore Indonesia

CASING DRILLINGTM Campaign (1st Two Wells)

• Objective – Eliminate a 20” Casing

• No incidents or accidents during CD campaign

• Drilled 4,206ft with 13 3/8” Casing, losses of 27kbbl/day

• No hole problems were encountered – T & D’s trended

• Directional CD BHA proves ability to steer 13-3/8” Casing

• Retrieved BHA on Drillpipe

• Cemented Csg, pressure test, FIT for 12 ¼” hole section

• Next Well to eliminate 20” Casing ($500k/well)

0

2000

4000

6000

8000

10000

12000

0 10 20 30 40

Drilling Days

Measu

red

Dep

th, ft

First Convent’l Attempt (4/02)

• Lost Well at TD ~ 11,500 ft

• Unable to Trip Out for Casing • Cemented Drill Pipe

• ($ > 1.0 MM) Lost

Second Convent’l Attempt

(11/02) • Lost Circ Caused 7.0” Set Early

• Required 5-1/2” Liner @ 7.0” CP

• Lost Returns at TD ~ 11,600 ft

• Stuck Pipe, Well Kicked, Cmt DP • ($ > 1.5 MM) Lost

CASING DRILLING®

• Slight Seepage Losses

• Set 7” at 8,085 ft • Set 4-1/2” at 11,574 ft

• Delivered Productive Well

Performance - CASING DRILLING®

Saves Well – Apache Tx

Lost Circulation

7” Csg Pt

5-1/2” Liner

Summary / Conclusion

CASING DRILLING® Retrievable System ACHIEVEMENTS

• Safer operations – Well Control , Pipe Handling, etc

• Drilled 500+ wells / 800+ intervals (onshore and offshore)

• 3,000,000+ feet drilled with Casing

• Technology applied fit for purpose on conventional rigs

• Casing sizes 5 1/2" to 13 3/8"

• 90 degrees maximum inclination

• Less stuck pipe with CASING DRILLING than conventional drlg

• Less losses with CASING DRILLING than conventional drlg

• Drilled formations from very soft to hard – PDC drillable

Casing Drilling Conclusion

• Casing Drilling has proven to be feasible.

• Reliability and ROP are essential for economic success

• Good candidates need a specific problem to be addressed by casing drilling.

• Typical 3 well learning curve to capture learnings & optimise

performance