Drilling Fluids, Inc. TECHNICAL SERVICES NEWSLETTER Volume X, Number 6 November 1, 2006 WHAT DO YOU WANT IT TO BE? MUD SCHOOL By Michael Anderson T he opportunity that was been presented to me by Geo Drilling Fluids to become a “Mud Engineer” was nothing short of unbelievable. At first, my wife thought it was some kind of gimmick. She was apprehensive about the whole job. “They are going to pay you what, to do what, and they are going to give you what?” was the first line of defense from her. She thought I was going into a shady business venture with some undesirables. From what I have gathered during my time in Mud School, the only undesirables are the strange creatures walking up and down Union Avenue. After some long hours of deliberation, I found myself Mud School 1. Add 30 bbls of water to 200 bbl of 9.2 ppg mud. How much Barite is needed to end up with 9.4 ppg mud? a) 26 sacks, b) 18 sacks, c) 41 sacks, d) 23 sacks. 2. The most effective product for raising Gel Strengths is: a) GEO ZAN, b) GEO Gel, c) HEC, d) Benex. 3. I am going to drill out 1000’ of cement in 8 3/4” hole. What should I add? a) SAPP, b) Omnipol, c) Desco, d) Bicarb. ANSWERS ON PAGE 4 MATERIAL SAFETY DATA SHEETS (MSDS) M any hazards exist in the workplace. We try to mitigate these by using procedures that prevent contact with these hazards. On the rig floor pinch points and getting between a moving pipe and an immovable object are discussed in safety meetings so that they may be avoided. These hazards are obvious and the consequences of failing to stay out of harms way immediate. (Continued on page 2) Hey!! Wake UP!! This is the most dangerous time of year. More accidents occur during November and December then any other part of the year. Make sure that your MSDS book and the rig MSDS book contains information about all the products that are on location. On the mud pits some of the hazards are less obvious. In particular some of the chemicals used to make mud can be harmful. Most of the chemicals MSDS (Continued on page 6) TECHNICAL SERVICES NEWSLETTER Mud School (Continued from page 1) VOLUME X NUMBER 6 November 1, 2006 accomplish and I moved on with the frustrating problems. More often than not, I figured out the problem, with some simple insight from Andy. I often found my fellow mud students were more than willing to share their insights into the drilling process. They always made me feel comfortable and I never felt like I was asking a stupid question. This is a tradition that I will continue after I learn what I’m really doing. I am glad to be working for GEO where fellowship is a big part of the company and its employees. So, now that I am leaving Mud School, I find myself scared out of my wits, and hoping I soaked up enough information to venture out onto the rigs and not look or act like a complete worm. However, I know that Andy and the rest of my new brothers are only a phone call away and no matter what, I am not alone out there. I would like to give a special thanks to Jim Clifford, Tom Needham, Bob French, Ken Beas, Travis Adams, Bucket head (Steve James), Eric (Ed, Kevin) Fjeldsted, Billy Landreth, Dave Tatman, Mitch Simmons, Tracy Langley, all the ladies in the office, and of course Andy Philips. Thank you for a great five weeks! Thank you GEO Drilling Fluids for making all this happen for my family and me. Look out Rockies here I come! two-and- half weeks later in Mud School, far from home. It was hard to believe how the company took care of all my accommodations. I was flown down to Bakersfield from my home in Mont ana, put up in a hotel for five weeks, provided with food and a vehicle to get to school and drive around town. On top of all that I was being paid for going to school. The only thing I had to worry about was going to Mud School and learning something new and exciting. “Am I dreaming?” I asked myself on several occasions. I remember a time in my life when I was working full-time, going to school full-time, being a father full-time, and paying for school out of my own pocket. I was truly being taken care of now. I was set up for success in the company right off the bat. I had no excuse to fail, no excuse to give anything less than 110%. Mud School offered a chance to tap into that education I had paid for in the past. The use of Algebra, Chemistry, Geology, problem solving, and good old fashioned common sense was par for the course. Luckily, I had enjoyed the se subjects in the past and was able to use what I had learned while in Mud School. Little did I know while I was taking those courses in school that I would be using them much later and being paid handsomely for it. Those of you with kids, make sure you help them learn and understand these subjects. Who knows, they might use them to get a job in the future that will help support a family with a spouse and three children. The first week of school turned out to be a cha llenging experience as I racked my brain to remember all the scholastic knowledge of my past. Whenever I could not remember a simple formula, Andy was more than willing to force me to dig deeper into the dark cavities of my brain, almost to a point of pure frustration. Usually, I found myself having two choices when it came to that point, figure out the problem, or choke Andy. I did favor the later on Latest Mud School: Michael Anderson—now some occasions (I believe a few other mud students before me favored that on all occasions). working in the Rockies, Billy Landreth—now Nevertheless, I knew what Andy was trying to working in Northern California, and Trevor Lan- caster—now working in Southern California. PAGE 2 TECHNICAL SERVICES NEWSLETTER VOLUME X NUMBER 6 HEAVY OIL PROCEDURES By Ken Beas I wrote this article to help inform all GEO employees about the procedures of the AERA Energy LLC Heavy Oil drilling process. Heavy Oil is a high density and very high viscosity crude oil, so thick it barely flows at room temperature. This type of oil is a major part of the production in the Midway-Sunset and Kern River oil fields in Kern County. The drilling process has many similarities to drilling in Light Oil, but with a few exceptions. For example mud weight, which controls hydrostatic pressure in the wellbore and prevents unwanted flow in the well, is usually between 8.8 ppg and 9.2 ppg. Occasionally mud weights as high as 12.0 ppg may be needed if Bitumen is encountered. November 1, 2006 the Light Oil drilling process. DMA (Cypan type polyacrylate-polyacrylamide polymer) is used to help reduce water loss as well as to provide lubricity. If drilling through a high clay formation, Citric acid or SAPP may be used to help reduce the pH to help control the reactivity of the clays. Omnipol should be used as a viscosity reducer. In an elevated pH or high chloride environment the use of Desco is recommended as a viscosity reducer. Desco and Omnipol also aid in fluid loss reduction. The insert and shoe are drilled out with water. Once this is complete the first change over to Potassium Chloride (KCl) is completed. Potassium muds are the most widely accepted water based mud systems for drilling dirty sands, those con- BELRIDGE FIELD — PART OF MIDWAY-SUNSET FIELD IN WESTERN KERN COUNTY. Heavy Oil wells alongside Light Oil Diatomite wells Funnel viscosity can range from as low as 36 sec/qt to as high as 50 sec/qt. If drilling through air sands a high viscosity must be used to help reduce the problem of lost circulation. Once through the air sands, a viscosity of 40 to 44 sec/qt. seems to wo rk well unless drilling through high clay formations when a lower viscosity is needed. As far as chemicals go, the Heavy Oil drilling process uses many of the same chemicals used in taining a significant portion of swelling clays. KCl is the most widely used Potassium source. 3% KCl is used in the hole-opening process to inhibit swelling of any clay in the producing sand as well as preventing swelling of any interlayer shales. Clarizan is added to the 3% KCl solution before opening the hole. Clarizan biopolymer is a PAGE 3 Drilling Heavy Oil Wells (Continued on page 4) VOLUME X NUMBER 6 Drilling Heavy Oil Wells (Continued from page 3) clarified, high- viscosity xanthan gum that can be used in most types of water-based fluids. It provides excellent carrying capacity as well as some suspending characteristics. Xanthans are extremely shear thinning providing an excellent fluid for removing cuttings with a minimum of pressure loss. Upon the completion of the first change over the drill string is pulled out of the hole and an under reamer is connected. The drill string is run back into the hole to the casing shoe. Mud pressure extends the hole opener’s arms allowing the teeth to cut a “shoulder” and the hole opening process begins. Once the hole has been opened through the producing formation, the tools are pulled to the shoe and the pit is dumped and cleaned for the final change over. This last change over should be as clean as possible. For this reason, the mud pit must be thoroughly cleaned before mixing 5 % KCl. No viscosifier is used in this fluid. At times Brine water may be needed to provide sufficient hydrostatic pressure to control formation pressures. Injected steam is often the source of elevated formation pressures. Brine is preferred because it has a higher densiy than 5% KCl and lacks the contaminating solids that would be found in a fluid weighted with Barite. SDIC is added to the completion fluid to help break any residual Clarizan which may be in the well bore. Once this change over is complete, a liner is run to bottom to prepare for the gravel packing process. The gravel is packed between the well bore and the liner. This works as a filter during the production of the oil. I hope this article has added to the understanding of the Heavy Oil drilling process for all the GEO mud engineers who have only worked in Light Oil. Remember, these are just the general guidelines when drilling Heavy Oil wells. There are many variations to the general process that I have outlined above. Different circumstances and different preferences by the rig supervisor can change the procedure. Good luck in your future drilling practices and always remember WORK SAFELY! November 1, 2006 Ken Beas has worked for GEO as a mud engineer drilling at AERA Energy, LLC for a year doing Heavy Oil wells. He is a graduate of GEO Drilling Fluids mud school and is pleased to share his acquired knowledge in the hopes that it will help others “get up to speed” more quickly when they first start working the west-side Heavy Oil areas. CALIFORIA’S FIRST GAS WELL T he earliest production from a well drilled in California was not from an oil well. A water well, drilled in the City of Stockton (San Joaquin County) between 1854 and 1858, reached a depth of 1,002 feet and produced natural gas with the water. The gas was burned at the Stockton courthouse for many years, even before Drake drilled his Pennsylvania oil well. CALIFORIA’S FIRST OIL WELL M ajor production of oil in California began with oil mines. In 1861 in Humboldt County, the first well was drilled in California specifically for oil production. The well was unsuccessful, like numerous other Humboldt County wells drilled between 1861 and 1864. However, drilling activity soon began in earnest, and in 1865 and 1866 wells were drilled from Humboldt County southward to Ventura. 65 companies were drilling for oil in California in 1865. The Union Mattole Oil Company completed a well in the summer of 1865 in Humbolt County.. The well was not commercial, although it produced some oil for a time. Reports conflict as to the exact month of completion and the amount of the first oil shipment, but by one account “Thirty barrels of oil were shipped to San Francisco.” An by another “Six, 20 gallon casks of crude oil” was the first shipment of oil. Stanford Brothers refined and sold the first shipment of oil from the Mattole well. They reportedly sold the refined “burning oil” for $1.40 per gallon. 1. c) 41 sacks with a final volume of 233 bbls 2. b) GEO Gel 3. c) Desco TECHNICAL SERVICES NEWSLETTER ANSWERS TO WHAT DO YOU WANT IT TO BE? PAGE 4 TECHNICAL SERVICES NEWSLETTER VOLUME X NUMBER 6 HYDROSTATIC LOSS CAUSED BY GAS-CUT MUD November 1, 2006 GRAPHICAL APPLICATION To find BHP loss due to gas cut mud: A graphical approach for determining loss of hydrostatic pressure due to gas cutting of drilling fluids has been developed to simplify and interpret the severity of gas shows on the surface. The graph at the back of this newsletter provides a matrix for calculating the actual effect of gas cut mud. What follows is a simple solutions to Bottom Hole Pressure (BHP) losses due to gas cutting. Close tolerances between fracture gradient and formation pressure requires an accurate knowledge of BHP. Concerns about well control when mud weights are cut by 10%-20% can drive mud weight increases on even the shallowest wells. Using calculations based on the compression of gas under pressure it can be shown that even moderate gas cutting which reduces measured mud weights on the surface, produces little effect on the effective hydrostatic head at depth. Moderate cutting usually offers no threat to drilling safety, but does indicate that gas is entering the mud stream. When minimum overbalances are being used, or gas cutting becomes severe, an accurate method of determining the BHP reduction is needed. This graphical solution disregards the effect of gas density and thus provides a tool useful for either gas or air. As such, it becomes useful for determining air injection vo lumes required for a desired reduction of hydrostatic pressure as well. 1. Calculate the hydrostatic pressure of uncut mud. Although the weight of uncut return mud is normally known, if necessary the weight of uncut mud returning from the annulus can be calculated using a sample of gas-cut mud: Dilute gas-cut mud with an equal volume of water. Being careful not to let the solids settle, weigh the diluted mud. Calculate uncut mud weight as follows: Wu = (Wc) (Wd) Wc + 8.3 - Wd where: Wc = density of gas- cut mud, ppg Wd = density of diluted mud, ppg Wu = density of uncut mud, ppg 2. Find the hydrostatic pressure of uncut mud at the bottom of the chart. Calculate hydrostatic head of uncut mud (BHP) at depth as follows: BHP = (MW in ppg x 0.052) x (depth in feet) 3. Proceed up to intersect the proper “percent gas in mud” line. Gas content (percent) is calculated as follows: SOLIDS CONTENT OF GAS CUT MUD Percent gas in mud = ((Wu-Wc)/Wu) x 100 Gas cut mud not only has a lower apparent density, it also has a higher apparent solids content. Neither of these is useful in evaluating the situation. Before running the retort, gas cut mud can be diluted to break out the gas as long as a mathematical adjustment is made. A 10% drink of water before filling the retort cell means a 10% reduction in solids. Thus a 12.0 ppg mud with 18% solids after dilution would only have 16% solids. To correct the result multiply 16% by 1.1. 4. Read across to the right hand scale to find the BHP loss due to gas content. 5. Subtract pressure lost from original BHP to find the new effective head (BHP) of gas- cut mud. PAGE 5 TECHNICAL SERVICES NEWSLETTER MSDS (Continued from page 1) are environmentally friendly, but even the most seemingly innocuous, like Gel, contains silica dust which, if inhaled in sufficient quantities for a long period can be hazardous. To prevent injuries, some of which may only result from very long term exposure, we provide our mud engineers, the rig crews, and our customers with a Material Safety Data Sheet (MSDS) for each of our products on the location. These documents contain detailed lists of the hazards associated with the use of the product as well as the procedures and Personal Protective Equipment (PPE) that is required when using the product. Make sure that your MSDS book and the rig MSDS book contains information about all of our products that are on location. SAFETY GLASSES SIGN AND RETURN THE ATTACHED FORM VEHICLE SAFETY M W e covered the issue of wearing safety glasses in this Newsletter a few months ago. As you will recall the hazards are present both at work and at home. Almost all of our customers have a policy that requires all personnel to wear safety glasses on the rig. This includes work on the lease such as loading and unloading trucks, driving forklift, and spotting for truck drivers. A recent incident was brought to my attention. Both the driver and the spotter (a mud engineer) were not wearing safety glasses and the driver was not wearing the provided seatbelt on the fork lift. These lapses can result in injuries and serious consequences from our customer’s safety department. BE CAREFUL AND FOLLOW ALL THE RULES HEAT RELATED ILLNESS A VOLUME X NUMBER 6 November 1, 2006 access to water and shade. Please read this document and place it in your employee handbook. We are required to have a record of your receipt of the program so please fill out the last page and return it to the Bakersfield office. The program contains a lot of good information about avoiding heat related illness and how to treat a person who is suffering from the heat. This may be more applicable to your home life then your work life. PLEASE CAREFULLY READ THE ATTACHED POLICY AND PLACE IT IN YOUR EMPLOYEE HANDBOOK new section has been added to the Injury and Illness Prevention Program. This section deals with heat related illnesses and is mandated by the state of California. This new regulation follows several deaths of workers this past summer who were exposed to high heat conditions and had inadequate ost GEO employees are good drivers with a record of no accidents. Over the years some have had a single incident where they ran into something or were hit while driving along minding their own business. And a few have had multiple accidents, primarily involving lack of attention. GEO employees who drive company vehicles will find attached to this Newsletter a new policy regarding accidents, otherwise known as Motor Vehicle Accident, Moving Vehicle Accidents or Motor Vehicle Incidents. The variation in wording from accident to incident and motor vehicles to moving vehicles illustrates the attempts by the safety community to identify the problem and get people to take responsibility for their actions. Good defensive driving techniques can help you avoid most incidents, even when they are not your fault. Looking both ways when you cross an intersection on a green light is a good example. You have the right of way and if anyone were to hit you it would be their fault. However, many intersection broadside accidents would be prevented if the driver with the right of way saw and yielded to the red light running driver. PAGE 6 PLEASE CAREFULLY READ THE ATTACHED POLICY AND PLACE IT IN YOUR EMPLOYEE HANDBOOK TECHNICAL SERVICES NEWSLETTER VOLUME X NUMBER 6 November 1, 2006 Percent Loss in Mud Weight from Gas Cutting HYDROSTATIC PRESSURE LOSS CAUSED BY GAS CUT MUD LOSS IN HYDROSTATIC (PSI) 10,000 100,000 To find bottom hole pressure loss due to gas cut mud: 1. Calculate hydrostatic pressure of uncut mud. MW x 0.052 x depth . 2 Start with hydrostatic pressure at the bottom of the chart. 3. Proceed up to intersect the Percent Loss in Mud Weight. 1 - (cut weight/uncut weight) 4. Read on right the loss in bottom hole pressure due to gas cutting. 5. Subrtract loss from original 100% 10,000 95% 90% 85% 1,000 1,000 70% 60% 50% 100 40% 30% 100 20% 10% 10 10 5% 1 1 10 100 1,000 10,000 HYDROSTATIC OF UNCUT MUD PAGE 7 100,000 LOSS IN HYDROSTATIC (PSI) 100,000