DRILSMOOTH FLUID SYSTEM 1 FEATURES AND APPLICATIONS Applications Features Highly shear thinning Exceptional hole cleaning and suspension Improved solids removal efficiency vs. competitive systems Zero flow at wellbore face Low reservoir damage and easy cleanup System stable to ~400°F Viscosity easily destroyed (e.g., for displacement procedures) Cost effective vs. polymer muds High LC50 numbers Unconsolidated formations Loss zones (porous and fractured) Milling Horizontal open hole completions Stabilizing surface holds against collapse Coiled tubing drilling Deepwater High ROPs 2 WHAT THE DRILSMOOTH SYSTEM IS: The DrilSmooth system is a unique, water-based drilling fluid developed for fractured and stabilizing mechanically weak or poorly consolidated formations and drilling high-angle or horizontal wells Complementary Additives Basic makeup ID-MMH FL fluid loss control additive Non-treated bentonite Temperature stabilizers (ID-PTS) MMO mixed metal oxide AS-Y Shale inhibitor Water Selected ancillary products Soda ash Weight material Caustic soda 3 SYSTEM DESCRIPTION What is MMO? A small cationic crystal . . . A dimension smaller than a bentonite platelet (face dimension ~0.05 m) Flat with high specific surface area (narrow edge of ~0.0008 m) Charge density 6 to 7 times that of a bentonite platelet Acid soluble “Synthesized Structure” 4 SYSTEM DESCRIPTION • Attachment of the MMO crystal to the bentonite platelet produces an entirely new chemical structure PV is very low YP, Fann 6 and 3, and gels are abnormally high New Adduct Formed by Chemical Reaction • The gels are formed by electrostatic attraction - which is why they are instant, but fragile 5 WHAT DOES DRILSMOOTH OFFER? Instantaneous and very effective suspension Excellent hole cleaning Resistance to movement along fractures Totally external filter cake if properly treated Minimal washout due to dead zone at wellbore wall Environmental peace of mind Temperature stability 6 MMO SYSTEM INHIBITION IMPROVEMENT PROJECT 7 BACKGROUND Challenge: • To improve MMO system’s inhibition and expand its applications Solution: • IDEC received cuttings from different troublesome formations in North Iraq region and sent to our R&D Center in Houston for testing • Several tests were done comparing different inhibitors and their impact on system’s rheology and inhibition performance • Lab test matrix was set for the project 8 BACKGROUND Project # Lab Tests XRD-Minerology HOU-0092 HOU-0103 Shale Control TT-27Z Cuttings Additives for MMO HOU-0109 Gasplus Cuttings ✓ ✓ CST Linear Swelling Clay Recovery Bulk Hardness ✓ ✓ ✓ ✓ HOU-0107 Shale Inhibition Using Silicate Fluids ✓ On-going ✓ ✓ ✓ 9 TT-27Z CUTTINGS 10 GASPLUS CUTTINGS SHEWSHAW-2A well in Tanjero SH-2A well in Kolosh 11 MINERALOGY: TT-27Z WELL IN KOLOSH T3 12 MINERALOGY: SHEWSHAW-2A WELL IN TANJERO 13 MINERALOGY: SH-2A WELL IN KOLOSH 14 MINERALOGY Formation0 Well Depth (m) NON-CLAYS Quartz Feldspar Plagioclase Calcite Dolomite Siderite Halite Pyrite Total non-clays CLAYS Kaolinite Smectite Illite Chlorite Muscovite Total clays TOTAL Kolosh T3 TT-27Z Tanjero SHEWSHAW-2A 1800237523851805 2380 2390 13641370 14001405 Kolosh SH-2A 17451800 17801785 17851790 Sample #1 Sample #2 2.2 7.3 5.9 9.3 4.4 1.9 0.1 0.9 32.1 0.1 6.8 7.5 5.5 2.6 2.2 0.0 1.1 25.8 0.8 12.3 8.5 5.8 2.9 2.8 1.4 1.5 35.9 2.6 7.3 9.6 9.9 3.1 2.2 1.9 1.3 37.8 2.8 8.2 11.0 9.3 3.1 1.7 2.2 1.3 39.7 1.6 8.1 10.2 3.8 3.1 2.2 2.1 1.4 32.6 4.2 7.7 11.6 6.9 3.6 1.7 0.9 1.5 38.1 0.9 6.9 15.7 3.3 2.7 1.8 0.9 1.2 33.4 1.6 6.4 10.5 3.2 2.7 2.2 1.0 1.3 28.9 1.3 8.1 14.2 3.0 2.2 1.7 0.9 1.4 32.9 3.2 15.5 7.0 40.5 1.6 67.9 100.0 5.6 17.1 11.0 40.6 0.0 74.2 100.0 4.9 20.1 3.5 35.6 0.0 64.1 100.0 3.5 13.5 1.3 40.6 3.2 62.2 100.0 3.2 13.6 1.8 40.8 0.9 60.3 100.0 4.0 19.5 3.8 40.1 0.0 67.4 100.0 3.9 14.0 2.0 42.0 0.0 61.9 100.0 4.8 16.3 3.9 41.7 0.0 66.6 100.0 5.0 20.4 2.8 42.9 0.0 71.1 100.0 4.8 20.1 3.0 39.3 0.0 67.1 100.0 15 BULK HARDNESS: TT-27Z Fluid Bulk hardness, in-lb Unexposed DI Water MMO 3% MMO-AS 3% Glymax 4 1 1 1 2 16 CST: GASPLUS CUTTINGS Sample Tanjero Kolosh Fluid CST #1 (s) CST #2 (s) CST #3 (s) Avg. CST (s) DI water 73.9 57.0 84.1 71.7 MMO + 1 lb/bbl MMO-AS 2734.7 2973.3 >3000 >3000 1 lb/bbl MMO-AS in DI water 21.6 21.3 21.1 21.3 2 wt% QmaxDrill 17.8 18.2 18.8 18.3 55 lb/bbl sodium silicate 127 153.8 134.2 138.3 DI water 32.8 35.4 37.2 35.1 MMO + 1 lb/bbl MMO-AS 3187.3 3146.5 >3000 >3000 1 lb/bbl MMO-AS in DI water 15.0 16.1 15.8 15.6 2 wt% QmaxDrill 15.7 15.8 13.4 15.0 55 lb/bbl sodium silicate 54.7 64.9 49.2 56.3 17 LINEAR SWELLING: GASPLUS CUTTINGS SH-2A well in Kolosh SHEWSHAW-2A well in Tanjero 18 FLUID RHEOLOGY Fluid MMO Water, bbl Bentonite, lb Soda Ash, lb PAL FC, lb PRIMO MMO-D, lb PRIMO MMO-AS, lb KCl, lb Glymax, lb Liquid Gilsonite, lb Mud weight, lb/gal 0.9899 5.5 0.5 2 0.55 ----------------8.46 MMO+3% MMO-AS 0.9899 5.5 0.5 2 0.55 10.8 ------------8.46 θ 600 / θ 300 @ 120°F 31/25 62/49 MMO+1 lb/bbl MMO-AS 0.9899 5.5 0.5 2 0.55 1 ------------8.46 Rheology 23/16 θ 200 / θ 100 θ6/θ3 Plastic viscosity, cP Yield point, lb/100 ft² 10-sec Gel, lb/100 ft² 10-min Gel, lb/100 ft² 30-min Gel, lb/100 ft² 22/18 11/11 6 19 12 11 12 42/34 20/20 13 36 20 21 20 14/12 6/6 7 9 7 8 10 MMO+3% KCl 0.9899 5.5 0.5 2 0.55 ----10.8 --------8.46 MMO+3% Glymax 0.9899 5.5 0.5 2 0.55 --------10.8 ----8.46 MMO+3% Liquid Gilsonite 0.9899 5.5 0.5 2 0.55 ------------10.8 8.46 22/18 35/33 20/21 17/14 6/3 4 14 3 3 4 32/30 17/16 2 31 15 14 16 20/16 3/2 -1 22 2 1 1 19 CLAY RECOVERY TEST Fluid DI Water MMO MMO+3% MMO-AS MMO+1 lb/bbl MMO-AS MMO+3% KCl MMO+3% Glymax MMO+3% Liquid Gilsonite 55 lb/bbl Na silicate 55 lb/bbl Na silicate+3% K2CO3 55 lb/bbl Na silicate+0.5 lb/bbl IDCAP Original weigh, g 20.87 21.05 20.55 20.23 20.49 20.64 20.38 20.99 20.1 20.44 Recovered weight, g <0.01 <0.01 8.45 0.03 5.78 1.01 <0.01 13.53 10.56 16.66 Amount recovered <0.05 wt% <MMO+0.05 wt% 41.1 wt% 0.15 wt% 28.2 wt% 4.9 wt% <0.05 wt% 64.5 wt% 52.5 wt% 81.5 wt% MMO-based Silicate-based 20 LINEAR SWELLING: BENTONITE PELLETS 21 MMO INHIBITION IMPROVEMENT – EAST AFRICA • DrilSmooth was used on one well in East Africa to drill the top-hole section since previous wells in the same field have experienced severe lost of circulation. • The section was drilled successfully with no losses and the casing was set at the bottom. • Due to the presence of highly reactive clays, it was decided to work on boosting the system’s inhibition to be able to use it on future wells. 22 MMO INHIBITION IMPROVEMENT – FURTHER STUDIES Due to the continued success of the DrilSmooth system in other areas, further tests were performed in Houston to boost system’s inhibition using a combination of regular and new inhibitors Cuttings samples from East Africa were sent to the lab in Houston to check on the best combination of inhibitors to use in the field and stabilize these formations 23 XRD AND CED RESULTS Mineralogy (wt%) Ngamia-3: 790 – 800 ft Etom-2: 150 – 160 ft Etom-2: 160 – 170 ft Etom-2: 460 – 465 ft Amosing-5: 560 – 570 ft Amosing-5: 570 – 580 ft NON-CLAYS Sample CEC (meq/100 g) Ngamia-3: 790 – 800 ft 14 Etom-2: 150 – 160 ft 29 Etom-2: 160 – 170 ft 32 Quartz 2.6 0.5 1.1 4.1 8.2 5.2 Feldspar 15.6 12.2 16.5 19.3 17.9 19.8 Plagioclase 6.0 9.6 10.2 8.7 14.3 8.1 Calcite 4.9 5.6 7.5 4.7 3.0 1.9 Etom-2: 460 – 465 ft 21 Dolomite 4.4 3.0 3.1 3.2 2.6 2.6 Siderite Amosing-5: 560 – 570 ft 17 1.6 1.7 1.7 1.1 1.3 1.1 Halite 0.2 0.1 0.2 0.3 0.2 0.2 Amosing-5: 570 – 580 ft 16 Pyrite 0.9 0.9 0.9 0.6 0.7 0.9 Total non-clays 36.0 33.7 41.4 42.0 48.1 39.8 CLAYS Kaolinite 5.2 4.9 5.0 4.2 3.4 6.5 Smectite 9.9 14.2 13.5 14.4 11.7 11.1 Illite 3.2 5.4 3.2 4.4 3.3 2.1 Chlorite 42.0 39.4 36.7 35.0 33.2 36.9 Muscovite 3.7 2.5 0.3 0.0 0.3 3.5 Total clays 64.0 66.3 58.6 58.0 51.9 60.2 TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 24 Shale Inhibition with shale cuttings for 14 ppg fluid at 250°F with ID-MMO HIB and ID- MMO THERM 14 ppg Base Mud with MMO- HIB, PRIMO THERM, and 10 ppb Shale Cuttings Materials Base Mud Sample 14 Sample 14* Fresh Water, bbl 0.509 0.507 0.507 Soda Ash, ppb 0.25 0.25 GEL, ppb 8.0 MMO - D, ppb 14 ppg fluid rheologies before and after hot roll at 250°F. Hot Roll at 250°F Rheology at 120°F Base Mud BHR AHR Sample 14 BHR AHR Sample 14* BHR AHR 600 157 268 272 142 228 153 0.25 300 108 191 223 87 205 90 8.0 8.0 6 20 47 78 17 73 19 0.8 0.8 0.8 3 20 46 77 16 72 18 THERM, ppb 2.0 2.0 2.0 PV 49 77 49 55 23 63 MMO - HIB, ppb - 0.5 0.5 YP 59 114 174 32 182 27 MMO - AS, ppb - 1.0 1.0 10’ gel 22 38 51 13 50 17 Drill Cuttings GS# 31458, ppb 10.0 10.0 10.0 10” gel 44 121 70 52 83 83 Barite, ppb 298.11 297.52 297.52 Initial pH 11.66 9.82 11.28 9.53 11.56 9.57 Caustic Soda, ppb 0.3 0.3 0.3 Adjusted pH - 11.19 - 11.29 - 11.9 Mud Weight, ppg 14.0 14.0 14.0 API Fluid Loss - 6.4 - 6.6 - 9.0 Seawater, % v/v - - 10% HTHP Fluid Loss@ 250°F - 27.0 - 26.0 - 35.2 Shale Inhibition with shale cuttings for 14 ppg fluid at 250°F with ID-MMO HIB and ID- MMO THERM Remarks: 1. Low temp and high temp fluid loss look very good with only 2 ppb ID-THEM in the system. 2. Significant increase in rheology of the base mud with powdered shale cuttings added to the fluid. 3. With the inclusion of MMO-HIB and AMMO-AS in Sample 14, a significant drop in AND rheology is noticed, indicative of inhibition of shale. 4. Even with the contamination of 10% seawater by volume in Sample 14*, the rheological profile appears fairly similar to that of Sample 14. Conclusion: The MMO - HIB and the MMO-AS definitely inhibit the swelling of the drilled solids (cuttings). The base mud AHR showed the low end and YP doubled and the Gels almost tripled. The fluid losses are also acceptable at 250°F. With seawater, the mud was still stable AHR at 250°F for 96 hours. Shale Erosion with shale cuttings for 14 ppg fluid at 250°F with MMO – HIB and ID-THERM . Base Mud plus Shale Cuttings Materials Rheologies before and after hot roll at Hot Roll at 250°F Base Mud Sample 15 150°F . BHR AHR BHR Rheology at 120°F Base Mud Sample 15 Fresh Water, bbl 0.514 0.507 Soda Ash, ppb 0.25 0.25 8.0 8.0 PRIMO MMO - D, ppb 0.8 0.8 PRIMO THERM, ppb 2.0 2.0 - 0.5 PRIMO MMO - AS, ppb - 1.0 Barite, ppb 306.33 297.52 Caustic Soda, ppb 0.3 0.3 Weight of Cuttings, grams Mud Weight, ppg 14.0 14.0 % Erosion PRIMO MMO - GEL, ppb PRIMO MMO - HIB, ppb 600 185 300 129 TTTM AHR 230 280 233 163 196 6 28 103 33 65 3 27 102 32 64 PV 56 - 67 84 YP 73 - 96 10’ gel 24 104 32 10” gel 45 116 42 11.85 Initial pH 9.5 11.35 Adjusted pH 20.33 - 0.37 98.18 11.69 112 60 114 9.6 - 11.66 20.08 0.69 - 96.6 Remarks: 1. The +10-mesh shale cuttings were very fragile to touch and appeared to be dried gumbo in granular form. 2. 98% of the cuttings in the base mud eroded away through a 10-mesh screen and significantly increased mud viscosity. 3. 97% of the cuttings in Sample 15 also eroded away, however the rheology was significantly lower with the incorporation of MMO-HIB and MMO-AS, which is indicative of significant shale inhibition. KURDISTAN CASE HISTORY 28 KURDISTAN CASE HISTORY-1: GULF KEYSTONE WELL (2014-15) Witnessing very significant success of DRILSMOOTH (MMO) system in drilling 26’’ and 17 ½’’ sections of the well, 12 ¼” hole was also drilled through, Sarmond, Garagu, Chia Gara and Barsarin up to the 9 5/8” casing point 1965m / 1610m TVD with 56º inclination. There was significant control of formation losses (as depicted in following slides) and absolutely no hole cleaning issues. Several runs of well Logging over a long time, enhanced the well exposure time and the casing running faced obstructions in Garagu shales which needed higher inhibition levels. In MMO system the inhibition level could be attained with 2-3% KCl (< 20,000 chloride limit to use it) and with up to 3% ID-FURY. Seeing the inhibition limitations of the MMO system, the whole system was easily broken down to KClPolymer system and re-conditioned the well for successful running of the casing. KURDISTAN CASE HISTORY-1: GULF KEYSTONE WELL (2014-15) Advantages recorded using MMO mud in SH-11 vis-à-vis SH-10 drilled from the same pad • Overall losses were 33% less using MMO mud in 26’’, 17 ½’’ and 12 ¼’’ holes. • Total well mud cost was 18% less vis-à-vis previous well drilled. • For SH-11, planned well depth was 2157 with 43.41º inclination, actual was 2348m with 62.9º, an 8 % longer well bore with higher inclination. • Planned drilling-cum-completion days were 75 whereas the well was completed in 65 days, saving 13% rig time and money. • Incurred 18% less mud and Engineering cost. KURDISTAN CASE HISTORY-1: GULF KEYSTONE WELL (2014-15) Pictorial presentation of the comparison of three wells drilled by the same client in the same block: SH-10 VS. SH-11 (MMO) SH-10 SH-11 98940 65 1 700 650 148 051 90 2 077 784 2348 2255 DEPTH (M) LOSSES(BBL) DAYS COST KURDISTAN CASE HISTORY-2: TOTAL E&P WELL (2014-15) TOTAL planned to use the MMO system for first two intervals (26” and 17 ½”) only, then due to its excellent performance and trouble-free operations, decided to use it on the 12 ¼” and 8 ½” hole sections as well. The 7” liner was just set and drilling resumed with KCl/Polymer mud just for one reason, to reduce the ECD due to low fracture gradient. Inhibition to the MMO system was provided by using 0.5% v/v AS-Y and 2% v/v ID-FURY. Lubricity provided by using Graphite powder, ID-FURY and ID-LUBE XL. KURDISTAN CASE HISTORY-2: TOTAL E&P WELL (2014-15) Interval 1 Bit Size (inches) Interval 2 Interval 3 Interval 4 Interval 5 Interval 5 26” 17.5” 12.25” 12.25” S.T. 8.5” 6” MMO Mud MMO Mud MMO Mud MMO Mud MMO Mud KCl/Glycol/Poly mer mud Top of Interval (m) 30 m 777 m 1548 m 1548 m 3000 m 3740 m Bottom of Interval (m) 782 m 1548 m 2214 m 3000 m 3740 m 4435 m 1.08 1.21 1.50 1.55 1.79 1.74 8 14 9 19 12 13 1285.10 219.2 520.8 839.7 946.2 527.7 0 6 11.2 9 65 396.6 Mud Type Maximum Mud Weight (SG) Drilling Days Vol. Mud Built (m3) Formation Losses (m3) KURDISTAN CASE HISTORY-2: TOTAL E&P WELL (2014-15) Drilling curve is ahead of planned, and if not for the many rig equipment failure and geological side-track, more time could have been saved: Spud Baranan-1 Baranan-1 Planned Baranan-1.G1 Realized Baranan-1.G1_6'' Deepening_Planned Geological Side Track 0 2.5d TDS electrical fault 250 26'' Drilling 2.1d Over-torqued Drill string 500 20'' Casing 750 Geological side-track 1000 17 1/2'' Drilling 1.2d Generator failure 1250 1.9d Downhole motor failure #01 1500 Motor failure #02 no NPT (Early TD) 1750 1.8d Waiting on geological sidetrack approvals 2000 Measured Depth (m) 13 3/8 '' Casing 12 1/4'' Drilling 2250 0.9d Troubleshoot Drawwork 2500 2750 9 7/8'' x 9 5/8'' Casing 0.7d POOH due to wash pipe 8 1/2'' Drilling 3000 2d Full Inspection BHA due to drill string early wear 3250 1.4d Flowline connexion to RCD 3500 0.8d TDS electrical fault 3750 2.1d Downhole motor failure 7'' Liner 6'' Drilling 4000 0.7d Drawworks electrical failure 4250 4500 0 10 20 30 40 50 60 70 80 90 100 110 Duration (Days) 120 130 140 150 160 170 180 190 200 210 220 KURDISTAN CASE HISTORY-2: TOTAL E&P WELL (2014-15)