THERMATEK SERVICE SPE Alaska Luncheon 17th January 2006

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THERMATEK SERVICESPE Alaska Luncheon17th
January 2006

• Presented by Bruce Robertson

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Presentation Overview

• Thermatek Service General Overview.
• Thermatek Service Drilling Applications.
• Thermatek Service Conformance Applications.
• Case Historys.
• Operations to-date summary.
• Questions and Answers.

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THERMATEK SERVICE General Overview
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Introduction Thermatek was invented and
patented several years ago by a mud engineer
based in Kazakhstan The technology was
licensed by Halliburton in Jan 04 and purchased
outright in April 2005. It has a successful
and developing track record in the North Sea,
Middle East, Mexico and Malaysia. Halliburton
has initially selected 5 market areas to support
in the commercialisation of the Thermatek
Service. North Sea Middle East Mexico M
alaysia Alaska
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• What is THERMATEK ?
• Thermatek is a temperature activated family
  of non-invasive rigid setting fluid
  compositions that are used to provide a range of
  near-wellbore SOLUTIONS!
• Main Applications Severe Lost Circulation
• Water / Gas Shut Offs
• Annular Plugs
• Consolidation Plugs
• ALL Thermatek Fluids are characterised by a
  controlled right angle set followed by rapid
  development of compressive strength.
• The fluids right angle set is a reaction to
  exposure to a specified temperature for a
  specified period of time. The higher the
  temperature the shorter the set time. Unaffected
  by pressure applied to the slurry.
• The temperature activation results from a
  combination of exothermic reaction from the fluid
  chemistry temperature transfer from the
  formation.
• The short set time, followed by rapid
  development of compressive strength, is the key
  to designing Thermatek interventions.

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Key Properties of Thermatek Rigid Setting Fluids
Once set, Thermatek has mechanical
characteristics similar to cement - but it is
definitely not cement.

• Predictable and consistent right angle set.
• Rapid build up of compressive strength.
• Slight expansion on setting (1 - 2).
• Zero static gel generation.
• Will not invade formation.
• 100 Acid Soluble with 15 HCl.
• 100 return permeability.
• Immiscible in oil.
• H2S and CO2 resistant.
• Tolerates up to 50 contamination with water /
  drilling muds.

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THERMATEK SERVICE Drilling Applications
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Primary Applications in Drilling

• Thermatek Thru-bit Lost Circulation Material.
• Thermatek to Consolidate Formation.
• Thermatek Thru-bit Kick-Off Plug. (under
  development)
• Thermatek as Zonal Isolation Material.

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Thermatek LCM

• Thermatek as a Lost Circulation Material comes
  in 2 different forms and is generally used when
  no other avenue is available to the operator, or
  when high rate (100bbl/hr) losses are
  anticipated prior to drilling an interval.
• Thermatek LC (Lost Circulation)
• Thermatek low or high temperature fluid can be
  pumped through the drilling BHA and is designed
  to set up soon (5 20 min) after entering the
  loss zone, bringing the well back under control.
• Thermatek RSP (Rapid Setting Plug)
• Thermatek RSP is pumped in a similar manner to
  Flex-plug, with an active slurry pumped down the
  drill string to react with an aqueous based fluid
  pumped down the back-side of the drill string.
  The two fluids meet and mix below the BHA
  resulting in a gunking material which will
  quickly stem flow to the loss zone and then
  develop compressive strength for permanent zone
  sealing.
• Thermatek RSP is not temperature sensitive.

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Thermatek - LC

• Thermatek LC has been used successfully in
  several geographic regions to control losses in
  excess of 600 bbl/hr. The success of an
  application relies as much on obtaining quality
  data from the customer as it does on the
  predictability of the fluids set time.
• Key Points
• Placed safely through the drilling BHA.
• Material is used as a lost circulation treatment
  for major fracture losses, typically gt
  100 bbl/hr. Below this conventional LCMs may be
  sufficient.
• It is non-invasive and acid soluble allowing it
  to be used safely in producing formations.
• Thermatek is used to shut off losses quickly and
  effectively in highly deviated and horizontal
  sections as well as vertical wells.
• Typical treatment sizes are 15 35 bbl.
• The challenge is to pre-engineer the Lost
  Circulation plan so that drilling operations can
  re-commence within 8-12 hours of hitting initial
  losses.

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Thermatek LC

• Highest Up-side for Successful Shut Off
• Very small particle size allows Thermatek to be
  Pumped thru the bit to eliminate time
  consuming and costly trips in and out hole.
• Treatments are designed with very short set time
  after exiting the BHA (5 20 mins)
• Thermatek has a right angle set transition
  from fluid to solid.
• Rapid generation of compressive strength follows
  the initial right angle set. (Reducing WOC times)
• Even with high compressive strength Thermatek is
  easily drilled out from well-bore.
• Thermatek is non-invasive to the producing
  formation. Its temperature activated set
  prevents fluid from entering the formation.
• Acid soluble with a solution of 15 HCl
• Surface equipment and lines are easily cleaned
  with water.

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Thermatek LCPLACEMENT PROCEDURE
Thermatek LCPLACEMENT PROCEDURE

• Thermatek Placement

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Thermatek - Rapid Setting Plug

• Thermatek RSP has been developed in response to
  specific well-bore conditions where Thermatek-LC
  cannot be used due to temperature restrictions,
  or where static loss rates are so high that the
  standard Thermatek-LC treatment is less
  effective.
• Thermatek-RSP is a newly developed Thermatek
  formulation and we are actively seeking field
  application opportunities that fit some or all of
  the following criteria
• Wellbore temperatures during losses in excess of
  2500F.
• Water based drilling fluids.
• Static loss rates in excess of 100 Bbls/hr.
• Thermatek RSP can only be used with water based
  drilling fluids.

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Thermatek - RSPHOW DOES IT WORK?

• The Thermatek-RSP treatment is split into an
  active fluid and a reactive fluid PUMPED IN
  A RATIO OF 4 1
• The active (Thermatek) fluid is pumped to the
  loss zone down the drill string and through the
  drilling BHA.
• The reactive fluid (aqueous drilling fluid) is
  pumped down the drill string annulus to the loss
  zone.
• The two fluids meet and mix below the drilling
  BHA as the Thermatek exits the BHA into the
  wellbore.
• A strong gunk is formed within 60 secs of the
  fluids mixing and this quickly and effectively
  shuts off flow to the loss zone.
• Thereafter, the heat from the formation causes
  the Thermatek to set, with compressive strength
  up to 1000 psi developing within 2-3 hrs to
  provide a permanent isolation plug that will not
  wash away or be extruded into the loss zone.
• Thermatek RSP is un-restricted by bottom-hole
  temperature.
• It is non-invasive and acid soluble - allowing
  it to be used safely in producing formations.
• Typical treatment sizes are 15 35 bbl.

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Thermatek - Formation Consolidation
Thermatek can be used as a Formation
Consolidation (FC) treatment to consolidate
specific well sections prior to changing mud
weights up or down to drill lower well sections.

• The Thermatek - FC Treatment can prevent the
  occurrence of the following well problems
• Induced fracture losses as a result of drilling
  lower sections with the high mud weights required
  to prevent collapse of upper sections into the
  wellbore.
• Sloughing of upper well sections and stuck pipe
  as a result of reducing mud weights to levels
  that are required to drill lower well sections.

Thermatek is pumped through the drilling BHA and
used to squeeze off loose or unconsolidated sand
or shale sections. If the section cannot be
squeezed off consolidation may still be achieved
by under-reaming and squeezing a Thermatek plug
over the section. After set the original wellbore
diameter is drilled through the Thermatek plug.
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Thermatek - Kick Off Plug

• This application is currently under development.
  
• Test projects using various additives are
  on-going to attempt to reduce the drillability
  of Thermatek to attain a slurry design which can
  be pumped through the BHA, set quickly and have
  suitable mechanical properties to allow kick-off
  from the plug.

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Thermatek - Zonal Isolation Plug

• Thermatek has been used successfully to protect
  the producing formation from impairment damage
  during cementing / completion operations.
• Deployed through the drill string / BHA after
  the well is TDd, the plug is left over the top
  of the producing formation for removal by
  drilling / milling with coiled tubing after the
  well has been completed.
• A cross linked K-max pill is pumped ahead of the
  treatment to provide support to the Thermatek
  fluid until the set time is reached.

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THERMATEK SERVICE Conformance Applications
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Thermatek Primary Applications in Conformance

• Zonal Isolation Water / Gas Shut-Off.
• Temporary production formation protection.
• Gravel pack / Sand screen selective shut-offs.
• Remedial Casing Repairs

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Thermatek - Water / Gas Shut Off

• Mixed and pumped from surface with standard
  cementing equipment.
• Very small volumes can be placed accurately.
• Placed through work-string, coiled tubing or dump
  bailed. Can be pumped through drilling / milling
  assemblies or lubricated into B-annulus if oil
  based fluid.
• Near well-bore solution, if there is a
  requirement to seal off in formation matrix,
  additional, polymer based gels are usually
  required.
• Used to seal off fracture communication between
  water injectors and oil / gas producers.
• In applications where we do not wish Thermatek to
  pass through sand screens, we use a bridging
  agent which prevents slurry from re-entering
  annulus.

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Thermatek - Production Formation Protection.

• Due to the low depth of penetration and the acid
  solubility nature of the set product Thermatek
  has been used to protect reservoir intervals to
  allow intervention to be carried out in other
  intervals. Once removed via milling and
  acidizing, full production was restored.
• Suitable for most formations, however is
  dependant on permeability and presence of natural
  fractures to ensure product can be contacted with
  acid to remove.

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Thermatek -Remedial Casing Repair.

• Controlled right angled set is the most important
  characteristic when designing jobs to rectify
  flow or pressure emanating from secondary
  annulus.
• As the fluid is immiscible in oil based fluids it
  can be lubricated into B-Annulus to sink to leak
  zone or designed to set up in the annulus if no
  injection rate can be established.
• As with any setting fluid placed in an annulus, a
  full work-over including cutting / milling the
  tubing would be required should the completion
  need to be replaced in future.

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Thermatek - Gravel Pack / Sand Screen Selective
Shut-Off

• Laboratory testing confirm Thermatek can be
  pumped through a 16/30 sand gravel pack, however
  cannot be pumped through 20/40 sand gravel pack.
• Results on each test above shows the 16/30 pack
  to be completely consolidated, with the filtrate
  setting up with considerable compressive strength
  (gt 1500 psi), however whilst the test with 20/40
  sand did consolidate the pack, the filtrate did
  not contain enough solids to develop compressive
  strength.
• In applications where we do not wish Thermatek to
  pass through sand screens, we use a bridging
  agent called Delta P which prevents slurry from
  re-entering annulus

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THERMATEK SERVICE Case Historys
Water Shut Off Shell Gannet Field in the UK
North Sea. ICOTA Presentation SPE Water Shut
Off Centrica Resources Limited Rose Field in UK
Southern North Sea. SPE 94175 Water Shut Off
BP Amethyst Field in UK Southern North Sea.
Lost Circulation Shell F6 Wells in Sarawak
Field in Malaysia (SPE paper once campaign
complete) Lost Circulation PDO in Fahud Field
in Oman
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Thermatek-WS Case Study

• North Sea Operator has a field which was 85
  100 watered out and considered to be nearing the
  end of its economic life.
• Logs acquired in March 2002 showed the oil rim
  had been displaced upward into the gas cap.
• Oil rim could be significantly drained from the
  heel of these wells
• The wells chosen were watered out
• Opportunity to learn more about the reservoir and
  prove fluids efficiency.
• Engineered designs, selectively placing small
  quantities of Thermatek to shut-off water
  producing zones and re-perforating above the oil
  rim has rejuvenated the field and extended its
  life.
• Interventions typically paid for themselves
  within 70 days.

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GA-14S1

• Run 1 Drift on CT
• Run 2 MPNN
• Run 3 Bridge Plug
• Run 4 Tubing Punch
• Run 5 Cement retainer
• Run 6 ThermatekTM ZIM
• Run 7 Perforating
• Run 8 Retrieve SSSV Protector from
  Nipple

TUBING HANGER
GROUND LEVEL
5-1/2", 17lb/ft, L80, 13
10-3/4", 55.5lb/ft,
Cr, Tubing _at_ 2183'
L80 XO 2021'
AHBDF (2176' TVBDF)
AHBDF (2017'
TVBDF)
13-3/8", 68lb/ft, N80 Casing
Shoe _at_ 4411' AHBDF
(4347' TVBDF)
4", 9.5lb/ft, L80, 13 Cr,
Tubing _at_ 7828' AHBDF
(7328' TVBDF)
9-5/8", 47lb/ft, L80, Casing Shoe _at_ 7894' AHBDF
(7356' TVBDF)
Perforations at 7955ft AHBDF
Cement retainer set at 7962ft AHBDF
Holes punched in 4 liner
ThermatekTM ZIM Squeezed away
Bridge plug set at 8117ft AHBDF
7", 29lb/ft, 13Cr, Liner Shoe 7446' TVBDF (8491'
AHBDF)
Pre-packed screens
4" Liner Shoe 7446' TVBDF (11460' AHBDF)
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Gannett Field Results
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Thermatek-LC Case Study

• F6 Area in Sarawak, Malaysia consistently
  incurred high-rate losses (gt11 bpm) while
  drilling through the Carbonate reservoir
  interval.
• Previous experience of pumping multiple cement
  plugs proved unsuccessful, time consuming and
  potentially damaging to the reservoir.
• A revised drilling schedule and method was
  engineered to cure losses rapidly and allow
  completion to be run.

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• Losses in excess of 660 bbl/hr incurred in 6 OH
  reservoir interval.
• Drilled well to TD using dynamic mud-cap method
  while on losses
• Intended to place plug inside 7 Liner to allow
  completion to be run prior to CT removal.
• 1 x 15 bbl Thermatek treatment actually entered
  loss zone and cured the losses. Allowing
  completion to be run.
• CT RIH and tagged plug, acidized and brought
  well onto production.
• Down-Hole temperatures were lower than
  anticipated, which delayed the set time allowing
  the plug to travel further than expected.
• Well Sounder technology was invaluable for
  determining loss rates and fluid level drop-off.
• Trial continuing in February 2006.

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THERMATEK SERVICE Operations to Date Summary
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Operations to Date Summary

• Water / Gas Shut-Off
• 17 operations performed to date with 94
  success rate.
• 6 for Shell and 2 for BP in the UK.
• 6 for Pemex in Mexico.
• Temporary Isolations
• 1 operation successfully performed for Pentex
  oil UK Ltd. Removed with 15 HCl, full production
  regained.
• Permanent Isolation
• 6 operations performed to date with 80 success
  rate.
• 1 for Shell in UK, 1 for Maersk in Denmark and 3
  for BP in Alaska.

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Operations to Date Summary

• Lost Circulation
• 3 successful operations performed in Oman for
  PDO where total losses gt10 bpm were cured with
  single 25 bbl treatments.
• 1 successful operation performed in Sarawak,
  Malaysia for Shell where total losses were cured
  with single 15 bbl treatment to allow completion
  to be RIH prior to removal with 15 HCl on CT.
• Dump Bailer Operations
• 3 successfully placed operations have been
  completed to date.

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Major operators Who Have approved use of
Thermatek

• Shell UK.
• Chevron USA.
• PDO Oman.
• Talisman Energy Resources Ltd.
• Gaz de France.
• Total (Pau).
• BP (Aberdeen).
• Centrica.
• Pemex.

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THERMATEK SERVICE Questions and Answers