SunStone SUMMARY OF INTELLECTUAL PROPERTY The mission of SunStone Technologies is to develop tools and procedures that are required to employ “non-damaging reservoir drilling” as a completion technology for oil and gas wells. The effort within the company is primarily focused on new technology to improve the process of using multilateral underbalanced short radius horizontal drilling as a completion method in conventional and unconventional reservoirs. The following is a list and a brief description of the intellectual property, trademarks and hardware. U.S. Patent 5,950,744 • METHOD AND APPARATUS FOR ALIGNING DRILL PIPE AND TUBING • 1999 » This patent describes a new way to build an imaginary scribe line in drill pipe to orient downhole tools. The splined connection first plugs together in only one orientation and is held together with an independent coupling. When manufactured a reference point on the box (splined) end is aligned with the same reference point on the pin (slotted) end of the connection thus creating an imaginary straight line. When a string of pipe is run into a well the reference point on the connection can be viewed from the rig floor after the string has been reciprocated to remove any torque allowing the driller to determine which direction the bottomhole drilling assembly is pointed. This simple manual technique eliminates the need to run a gyro to orient the BHA or whipstock. A 3½” connection has been successfully tested for torque, tensile, pressure and fatigue. Other advantages to this connection include being able to rotate left and replacement of the coupling when it begins to show wear. U.S. PATENT APPLICATION 12/695,569 ● TAPERED SPLINE CONNECTION FOR DRILL PIPE, CASING, AND TUBING ● 2010 » This patent claims a new tool joint that has numerous advantages over conventional pipe connections. It can be described as a splined union connection. Like patent the above patent it uses an independent coupling to secure the two tapered splined ends after they have been plugged together. Torque is now transmitted through splines and not through threads making the connection 30% stronger than the pipe body itself. The splines also transmit the same torque when rotating to the left. One spline can of a different size to create a drill string that can orient downhole tools as described in the above patent. The coupling can also be a centralizer that can be replaced thus extending the life of the drill pipe. It is also safer SunStone to run because only the coupling is turned during make-up, not the entire stand of drill pipe. U.S. PATENT 5,941,321 • METHOD AND APPARATUS FOR DRILLING A PLANAR CURVED BOREHOLE • 1999 » This patent describes a new “point the bit” low cost short radius (75°/ 100’) rotary steerable bottom hole drilling assembly for both jointed pipe and coiled tubing. It is able to steer a roller cone, PDC or hammer bit from vertical to horizontal. The BHA is able to drill in a single plane without any steering corrections because tool face is independent from reactive torque. U.S. PATENT 7,373,995 • METHOD AND APPARATUS FOR DRILLING CURVED BOEHOLES • 2008 » This application provides for several improvements to the short radius rotary steerable patent 5,941,321 which is described above. The primary change involves a different design for the internal sliding tube. Instead of using a reduced internal dimension that allows fluid to push the tube to the disengagement position, instead a seal has been added to the outside dimension of the sliding tube making it a piston that shifts from an increase in pressure. The benefit to the tool is an increased internal dimension through the tube. Two bottom hole assemblies (BHA”s) have been designed and manufactured by TIW Corporation and are ready for field testing. U.S. PATENT 6,877,571 • DOWNHOLE DRILLING ASSEMBLY WITH INDEPENDENT JET PUMP • 2005 » This patent describes a new technique to induce underbalanced drilling conditions without using compressors and nitrogen membrane units. The method dramatically lowers the cost of drilling underbalanced because the underbalanced condition is created by using artificial lift technology to lower the hydrostatic weight in a well using a jet pump to pump return fluid from a well while drilling. (see SPE paper # 91595) The jet pump can also be used as a dual gradient system to manipulate ECD in a managed pressure drilling operation. A jet pump assembly and running gear has been designed and is ready to be manufactured. SunStone U.S. PATENT APPLICATION 12/778,342 • EXTERNAL JET PUMP FOR DUAL GRADIENT DRILLING • 2010 » This patent claims the use of a jet pump while drilling that is mounted externally to a riser to manipulate equivalent circulating density (ECD). The use of the jet pump in this application creates a dual gradient drilling system. Unlike the patent described above it is not used to induce an underbalanced condition. It is employed as a managed pressure drilling (MPD) technique to maintain slightly overbalanced conditions. U.S. PATENT 6,745,842 • CONCENTRIC CASING JACK • 2004 » This patent describes a device that can raise and lower a string of casing such as a tie-back liner or concentric string to actuate downhole tools such as a “sub-surface safety control” valve. The ability to shut-in a live well downhole during underbalanced drilling operations is important for safety reasons and will lower the cost of underbalanced drilling. The casing jack and sub-surface control valve together eliminate snubbing which is a costly and dangerous procedure to remove drill pipe from a flowing well. U.S. PATENT 6,666,274 • TUBING CONTAINING ELECTRICAL WIRING INSERT • 2003 » This patent describes a means to install wires for data and/or power on the inside of pipe. This has lead to three individual products such Smart Drillpipe with a single wire for data transmission, Power Smart Drillpipe which contains power wires to drill with an electric motor and a data wire and Power Production Tubing that contains power wires to run an ESP without an external cable. The connection can be plugged together in multiple orientations thereby allowing more than one wire to be installed. There is no signal loss or power loss across the connection since the wires are plugged together. U.S. PATENT 7,226,090 • ROD AND TUBING JOINT OF MULTIPLE ORIENTATIONS CONTAINING ELECTRICAL WIRING • 2007 » This patent describes an alternate way to install wires in tubing and drill pipe using the splined differential connection that is claimed in patent 6,666,274. It also claims a splined differential connection for sucker rods making the connection 30% stronger. This is advantageous for rotating progressive cavity pumps by allowing them to work at greater depths. SunStone U.S. PATENT 6,769,498 • METHOD AND APPARATUS FOR INDUCING UNDERBALANCED DRILLING CONDITIONS USING AN INJECTION TOOL ATTACHED TO A CONCENTRIC STRING OF CASING • 2004 » This patent describes an injection tool that is attached to concentric string of casing that is commonly used in underbalanced drilling. The tool allows nitrogen to pass from the outer (injection) annulus to the inner (return) annulus. The compressed nitrogen travels through the tool and exits at an angle thereby inducing a vortex with the return fluids. The swirling action reduces friction and improves hole cleaning by organizing multiphase fluids thereby reducing compression costs. Two vortex generators have been built and are ready for field testing. U.S. PATENT 7,380,590 • ROTATING PRESSURE CONTROL HEAD • 2008 » This patent describes a new design for a rotating blowout preventer that is expected to achieve a working pressure rating of 5000 psi. It is also half the height and cost much less to manufacture compared to the other rotating pressure control devices. It should become the rotating head of choice for “managed pressure drilling” (MPD) applications because of the increased safety factor due to its higher pressure rating for the same rental day rate. U.S. PATENT • 2010 7,743,823 • FORCE BALANCED ROTATING PRESSURE CONTROL DEVICE » This divisional patent is an improved version of the above described rotating pressure control device. This new design uses external hydraulic pressure that is applied to the top section of the RCD to reduce the pressure differential across the element and bearings. Pressure balancing the bearings will reduce heat and eliminate the need for a separate hydraulic cooling system. Hydraulic pressure can be acquired from the BOP accumulator. U.S. PATENT 7,537,062 • FLAPPER VALVE AND ACTUATOR • 2006 » This patent describes a new sub surface safety control valve that is actuated with the earlier described “casing jack”. Using the casing jack to raise and lower a concentric string or tie-back liner makes the opening and closing of the valve “worm proof”. The unique design of the flapper also allows for some differential pressure to exist across the flapper while opening. This feature is important because other sub surface safety valves cannot open with any differential pressure across the flapper. SunStone U.S. PATENT 7,468,173 • METHOD FOR PRODUCING NITROGEN TO USE IN UNDERBALANCED DRILLING, SECONDARY RECOVERY PRODUCTION OPERATIONS AND PIPELINE MAINTENANCE • 2008 » This patent claims a new way to generate 99.9999% nitrogen on location that does not use membrane, pressure swing absorption or cryogenic technology. It is a rather simple process that uses no new technology. The process requires a source of hydrogen such as an electrolysis machine that splits the water molecule into hydrogen and oxygen. The oxygen can be shipped to sales and the hydrogen (≈10%) is mixed with air (≈90%) before it passes into a catalytic converter where the hydrogen reacts with the oxygen in the air to form water leaving nitrogen as the by-product. Its potentially biggest application is in field pressure maintenance and coalbed methane EGR projects because the nitrogen is generated on-site eliminating the need for a pipeline. Another benefit of nitrogen is the gas is inert and does not cause corrosion like carbon dioxide. U.S. PATENT 7,137,945 • UNDERGROUND TREATMENT OF BIOWASTE • 2006 » This patent describes how to properly drill a biowaste injection well and how to prepare the biowaste for injection. Over the years there have been a number of patents issued regarding the injection of biowaste into sub surface formations. None of the patents addressed how to drill the injection well or how to prepare the waste for injection so that the target formation will continue to accept the biowaste for many years to come. This patent claims the use of underbalanced drilling techniques to protect the formation from plugging and comminuting the waste material to a size that is smaller than the pore throats or fracture apertures in the receiving formation. U.S. TRADEMARK “RPCH” • ROTATING PRESSURE CONTROL HEAD • 2005 U.S. TRADEMARK “UBHD” • UNDER BALANCED HORIZONTAL DRILLING • 2005