N-SQUEEZE™ and N-PLEX™ Acid Soluble Lost Circulation Materials © 2012 HALLIBURTON. ALL RIGHTS RESERVED. customer CHALLENGE Fluid losses when drilling into fractured formations © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 2 customer CHALLENGE Risks associated with fluid losses: High costs associated with replacing drilling fluids Formation damage associated with remedial treatments Loss in hydrostatic pressure can cause influx of gas or fluid, resulting in blowout of well (extreme cases) © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 3 Types of Lost Circulation Lost Circulation Classification Typical Loss Rate Seepage <10 bbl/hr Partial Severe Total © 2012 HALLIBURTON. ALL RIGHTS RESERVED. Typical Formation Characteristics Sands, sandstones, silt 10-50 bbl/hr Unconsolidated sand and gravel, small natural or induced fractures 50-100 bbl/hr Long sections of unconsolidated sand and gravel, larger natural or induced fractures >100 bbl/hr Cavernous formations, large, and/or numerous natural or induced fractures 4 Preventative Solutions Mitigation Solutions Particulate blend in whole mud N/A Particulate blend in whole mud Particulate blend in pill application N/A Particulate and/or fibrous blend in pill application Cross-linkable polymeric pills (N-SQUEEZE / N-PLEX) None Cross-linkable polymeric pills (N-SQUEEZE / N-PLEX) Baroid’s SOLUTION N-SQUEEZETM lost circulation material is a non-damaging crosslinkable water soluble polymer that helps cure lost circulation in many different applications. N-PLEXTM cross-linker contains a retarding agent to achieve a crosslinking time of approximately 2-4 hours, allowing time to place the N-SQUEEZE slurry across the loss zone. © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 5 Applications N-SQUEEZE / N-PLEX Lost Circulation Material Applications: Helps cure lost circulation in vugular or fractured formations Temporary plug to run in front of cement squeezes Improve casing shoe integrity Seal unconsolidated formations © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 6 key FEATURES Acid soluble Single sack product Adjustable, time-delayed cross-linking capabilities Biodegradable, nondamaging to production zones © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 7 N-SQUEEZE / N-PLEX Data Reaction is a pH/temperature dependent mechanism Higher temperatures require a higher pH for cross-linking The figure above depicts the relationship of concentration of available cross-linking agent with pH and temperature in 5% KCl brine. © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 8 N-SQUEEZE / N-PLEX Data Must be pH-balanced to set the conditions for the optimal cross-linking at a given temperature. Can be tuned to react and thermally degrade at desired rates based on temperature by altering the concentration of cross-linker in the formula. © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 9 customer BENEFITS Cost-efficient – Low cost solution – Less risk of fluid losses – No need for costly cement equipment – Can be pumped through existing bottom hole assembly, reducing rig time associated with tripping and mixing conventional LCM treatments – Remains flexible, mitigating risk of kick-off / sidetracking Operational advantages over conventional reactive and temperature activated methods – Adjustable reaction time Non-damaging to the formation © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 10 BAROID’S N-FLOWTM Filter Cake Breakers Baroid’s N-SQUEEZE™ & N-PLEX™ acid soluble lost circulation materials are an efficient, low cost solution for treating lost circulation in the reservoir. Non-damaging to the formation! © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 11 CASE STUDY: Lost Circulation Treatment Helped Cure Lost Circulation in Deepwater Malaysia Location: Kuala Lampur, Malaysia CHALLENGE Severe downhole losses observed after attempting to pull completion packer out of production casing Initial losses – 138-300 bbl/hr Fluid densities were reduced, but severe downhole losses continued Total of 400 bbls of viscosifer pills pumped over 3 day period, but proved ineffective SOLUTION Baroid recommended spotting N-SQUEEZE™/N-PLEX™ acid soluble cross-linking pill A 75 bbl N-SQUEEZE / N-PLEX pill was prepared with the cement unit and pumped downhole Once the pill cleared the completion packer, the pill was allowed to set for 4 hours Pressure was monitored and circulation was re-established Operations resumed and the upper completion string and packer were retrieved from the well RESULTS The N-SQUEEZE/N-PLEX pill helped the operator save 2 days of rig time and additional fluid losses estimated at $252,000 The ability to retrieve the completion packer without having to plug and abandon also resulted in significant cost savings As the upper 9 5/8” casing profile would have been lost, it would not have been possible to sidetrack and re-complete the well, preventing the operator from achieving target production © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 12 related DOCUMENTS Product Data Sheets Case Histories © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 13 BAROID Laboratory Support Baroid scientists and engineers work with state of the art equipment and an extensive global database in order to perform comprehensive testing analysis on a global scale. Baroid’s Laboratory Services include: © 2012 HALLIBURTON. ALL RIGHTS RESERVED. Analytical technical support Bioassay technical support Reservoir fluids technical services Drilling fluids technical services Industrial drilling products lab Quality assurance Research and development 14 BAROID RESERVOIR FLUID SOLUTIONS Reservoir Drilling Fluids Breaker Systems Completion Fluids Wellbore Clean-Up and Displacement Packages Breaker Systems for Polymer and Solids Removal Lost Circulation in Pay Zones Solutions © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 15 discover BAROID ecosystem Click on image above to launch ecosystem, then click on Launch Interactive ► Where people, processes, and technology are brought together to build customized solutions, optimize performance and deliver distinctive service quality. www.halliburton.com/baroid © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 16