Case Study – Reducing Drilling hours by up to 54% in the Barnett Shale Douglas Gust P.Eng., Q’Max Solutions Inc. Scott Marquess, Q’Max Solutions Inc. Lane Dunham, Savanna Drilling USA March 31, 2009 Barnett Shale Drilling Optimization Project • • • • Introduction Project Scope Achievements Conclusions 2 Project Overview • GOAL – Reduce well construction cost - $/ft • Scope of Project – Build on what others had done – bits/directional etc. – Optimization of Drilling Fluid • “Solids Free Drilling Fluid” – “SFDF” • Solids Control • Waste Management – Reduction of hole sizes – “New Technology Drilling Rigs” – NTDRs • Time Frame – 20 month project 3Q 2006 to 1Q 2008 3 SFDF • Solids Free <1% suspended solids • Density up to 10.5 ppg in solution – Typically 8.8 – 9.5 ppg – averaged 9.2 ppg on this project • Inhibitive – Used Calcium Nitrate or Production Brine • Easily converted to Polymer fluid when necessary – Well control – densities > 10.5 ppg • Low rheology – Low ECD – Viscosity = 28 to 31 – YP = 1 to 3 • 100% reusable 4 Solids Control – MudStripper™ Designed for SFDF • Remove 99.5% drill solids • Footprint = 15’ x 60’ • Operates as “Closed Loop” • Sludge density range: – 14.5 to 17.5 ppg Shaker Cuttings MudStripper™ Sludge 5 Cuttings Handling Old Style Pit 150’ x 100’ x 6’ 14,000 bbls Sludge Pit 30’ x 12’ x 8’ 500 bbls Auger Tank Solids collection / Dump truck disposal 6 Well Construction • Hole size Reduction • Benefits – Surface hole – – – – • Reduced from 12 ¼” to 8 ¾” • Reduced Casing from 9 5/8” to 7” – Main Hole Reduced cuttings volume Reduced cement volume Lower cost casing Increased casing availability • Concerns • Reduced from 7 7/8 – 8 ¾” to 6 1/8” • Reduced Casing from 7” to 4 ½” – ROP – Tool Reliability – Cement quality 7 NTDR Benefits • Safety – reduced risk for crews • Improved ROP NTDR – “New Technology Drilling Rig” • Integrated top drive / pipe handling system – Drill with Coil – Some rigs drill with coil tubing • No connections – Drill with Range 3 pipe • Small footprint • Fast moving (12 to 15 loads) • Smaller location sizes • Fast Rig up/Tear down • Shorter move times 8 Accomplishments • 41% reduction in average Drilling Hours – 226 hours/well to 133 hours/well • 41% reduction in average Well Days – 20 days/well to 12.5 days/well • 83% reduction in average Fluid Volume – 10,000 bbls/well to 1,729 bbls/well • 100% reduction in Dilution Volume – Dilution was eliminated • 75% reduction in surface area of drilling site – 400 ft x 400 ft to 200 ft x 200 ft 9 Average Drilling Hours Average Drilling Hours • Project Start 250 – 226 hours/well SFDF Drilling Hours 200 • Conventional Rig – 44 wells – 155 hours/well • NTDR – 96 wells 150 100 50 – 123 hours/well 0 Project Start • Best 2 rigs – 34 wells – 103 hours/well Conv Rig NTDR Best 2 Rigs NTDR Drilling Hours (31 wells with SFDF & 7 wells w/o SFDF) 155 • One NTDR w/ & w/o SFDF 150 Drilling Hours – 31 wells w/SFDF • 131 hours/well – 7 wells w/o SFDF 145 140 135 130 125 • 153 hours/well 120 Non SFDF 10 SFDF Average Days / Well – 149 wells 11.9 days/well – 97 wells NTDR 10.5 days/well – 77% of wells < 15 days Number of Wells by Days 16 NTDR SFDF 14 Number of Wells • Project Start 20 days/well • 157 wells 12.5 days/well • SFDF Conv Rig SFDF 12 NTDR w/o SFDF 10 Conv Rig w/o SFDF 8 6 4 2 0 5 10 11 15 20 Well Days 25 30 35 Average Drilling Performance • SFDF 700 ft/day • Best 2 Rigs 848 ft/day Drilling Performance in the Barnett Shale 900 800 Drilling Performance (ft/day) • Average Performance based upon “well days” 670 ft/day Op #1 Well days Op #2 Spud to TD Op #3 This Project Well days SFDF Best 2 rigs 700 600 500 400 300 200 100 0 2005 2006 2007 2005 2006 2007 2007 2007 2006 2007 2006 2007 2007 NOTE: Op #2 calculated from assumed 10,000 ft well depth and days from Spud to TD 12 Drilling Performance by Bit Diameter # SFDF 6 1/8” to 6 ¾” 7 7/8” to 8 ¾” 125 32 692 577 719 613 800 700 Drilling Performance (ft/day) Bit (in) Drilling Performance Average Drilling Performance Non-SFDF 600 500 400 300 200 100 157 670 700 0 6 1/8 to 6 3/4 7 7/8 to 8 3/4 Main Hole Diameter (in) 13 SFDF Fluid Volume Reduction • SFDF & MudStripper™ is a “Closed Loop” system • SFDF is 100% reusable • Reduced hole sizes reduces volumes Average Volume Used / well Elimination of Dilution Change in Hole Size Elimination of Sump 1,000 bbls Fluid Volume Reduction 2,000 bbls 8,000 bbls 1,729 bbls 5,000 bbls – Seepage loss – Fluid on cuttings 14 Reduced Location Size • Location reduced from 400’ x 400’ to 200’ x 200’ 400 – 75% reduction in surface area 350 • NTDR Original Location Size 400 ft x 400 ft 300 – Small footprint 250 • MudStripper™ 200 – “Closed Loop” system with small footprint 150 Reduced Location Size 200 ft x 200 ft 100 50 0 0 15 50 100 150 200 250 300 350 400 Conclusion • KEY Success Factors – – – – Project Integration & Execution SFDF NTDR Hole Size Reduction • Significant reduction in $/ft achieved – Some individual costs (product and services) increased – Variable cost – time related decreased – Some costs (casing) decreased 16 Conclusion – Project Milestones 2.3 % average suspended solids (<1% typical) 4.6 days – Spud to TD on fastest well (8,400 ft) 6 1/8 inch bit used to drill main hole (97 wells) 7 “one bit” runs from surface casing to TD 8 counties in project 11.9 days/well average using SFDF (149 wells) 31 157 700 1,729 wells with average footage > 1,000 ft/day wells in the dataset ft/day average with SFDF bbls/well average fluid volume 4,240 ft – most footage drilled in one 24 hour period 17