Haynesville Drilling Challenges Addressed with MPD application in Red River Parish

By: Jim Crenshaw NAM PLM Managed Pressure Drilling

Overview

2

Haynesville Shale Play Area Drilling Challenges Project Objectives and Deliverables MFCS components Well Events and Operational Challenges Project Results Conclusions

Haynesville Shale Play

One of the Largest Natural Gas Shales Globally Located in Ark-La-Tex HP/HT (up to 0.9 psi/ft and up to 400 F) High Pressure-Low Volume Natural Fractures and faulted regime Horizontally Drilled w/ Frac Completion Challenging Economics

Area of Interest
Field Activity

Operator Drilled 10 Wells in Area Microflux MPD Used on last 4 Wells

Area Drilling Challenges

Safety hazards Low ROP Performance Low Drilling Efficiency High Bottom Hole Temperature and Pressure Rapid Hydrocarbon Depletion from Natural Fractures Entrained / Nuisance Gas while Drilling / Tripping Difficulties differentiating between Background Gas, Ballooning-Breathing, and Sustained Influx, and management of these events
5

Project Objectives for use of MFCS

Improvement of Overall Drilling Performance and Efficiency Maximizing Time On-bottom drilling by reducing drilling flat time Increasing ROP without compromising safety and well integrity Managing unforeseen events in an HPHT environment by early identifications of events and application of precise corrective actions
6

Project Well Design Performance

Conventionally Drilled Wells: Mud Weights of 16.5 ppg at TD Planned days to drill 8 hole section and lateral section: 31 days 45 days from spud to TD

Project Well Design Performance Objectives

MPD Drilled Wells
Maintain Planned MW=14.8 to 14.9 ppg to TD Increase average ROP from 15-20 ft/hr to 40-50 ft/hr Determine PP and FG Improve ease and safety of surface gas handling On Line at 7 Intermediate casing at 10500 MD/TVD Use of MPD thru 6 1/8 open hole 10,500 to 12,100 vertical, 12,100 to 13,000 directional (8 deg/100 ft), 13,000 to 17,200 horizontal.

Project Deliverables:
Safely reduce drilling time using

Early Influx/Loss Detection

Controlled depletion of high pressure/low volume natural fractures

Improved ROP thru Dynamic Mud Weight Managment

Talk with the Well by monitoring well pressure and flow properties and adjusting MW (Note: CBHP was not an operational
objective)

Improve Days vs. Depth

Less flat time dealing with gas events Maintain lower mud weights Improved data allows flexible operational decisions as based on well conditions Optimize Well site operations in Gas Handling Scenarios

MFCS Components

Rotating Control Device

MPD Choke Manifold

MFC ICU Data Acquisition Control Display

10

Well Design
Initiate MPD Operations

Transition Zone

Key Well Events

Connection/background nuisance gas handling -Apply 150-200 SBP to avoid expansion effect -Keep SPP constant and compensate SPP pressure reduction Rapid depletion from high pressure-low volume natural fractures -Identify Influx, rapid depletion -Keep SPP constant Kick and depletion - Identification, kick control, circulate out, deplete
12

Verifying mass balance

A normal connection
A normal connection showing Flow in = Flow out

Flow in = Flow out

Pumps off as Standpipe Pressure drops

Surface gas handling

14

Natural Microfracture drilled with a Quick Depletion of 97 gallons

Drilling into a natural microfracture with Immediate Influx detection

Quick depletionpressure drop about 300 psi.

When gas hit the choke, it created 400 psi and we applied 200 psi on SBP to circulate in a controlled manner.

Influx Detected
Drilling into a natural microfracture. Influx at the bottom & gas at surface from connection coincides

Connection Gas

Influx Detected

SBP at high limit Well Shut In

Circulated Out and Depleted Influx

Decision is made to close in the annular and Circulate to Deplete the
Transition Zone Gas SICP and SIDPP reading taken on Choke Panel. 1st Circulation performed at SPR (Slow Pump Rate) of 30 spm No Depletion Observed on Pressure Readings 2nd Circulation performed at drilling pump rate of 60 spm No Depletion Observed on Pressure Readings Options? Increase Mud Weight? 4 Cycles of Circulation at Drilling Pump Rate Clear Pressure Reduction / Depletion after each Circulation Began drilling ahead with no change in Mud Weight

Managing the Influx

Circulated influx out at full drilling rate, enabled by precise choke control capability of Microflux manifold. Allowed quicker depletion of influx Required 4 cycles to deplete the influx and return to drilling well (shown on next chart) Depleted successfully over 11 hours
Resumed drilling ahead with no change in mud weight

Kick Identification/Depletion/Circulation
Influx Depletion Cycles with Microflux MPD
1000 900 4100

Stand Pipe Pressure

4000
3850

4500

4000 3600
3400 3200 3500 3000

800

800

942 892 825 580 616

700 600 500 400 300 200

SICP 580 2500

SIDPP 2000
ICP 315 350
No Shut In Taken Here

1500 1000 500 0 25 0 0

100
0 Rig Manifold
19

MPD 1st

MPD 2nd

MPD 3rd

MPD 4th

MPD Final

Initial Circulating Pressure

Shut in Pressure

After Influx, pressure held on subsequent 5 connections for verification of depletion

Surface back pressure held on connection to avoid drop in BHP and eliminate pressure cycle on formation

Actual Field Data (Remote View)

Actual Field Data (Well Site Panel)

Example of
Connection Gas then Survey Gas Signatures at Surface

Actual Field Data (Remote View)

Project Results

Drilling Performance: Microflux MPD vs. Conventional Mud Weight: 15.0 vs. 16.5 ppg at TD Planned Days to Drill 6 1/8 Vertical hole section and Lateral section: 16 vs. 31 Days Spud to TD: 31 vs. 45 Days

$800,000

ACTUAL MUD COST

$700,000

Conventionally Drilled Wells

MUD AFE AMOUNT

$600,000

25% Average Cost Reduction in MUD COST

$500,000

Avg Mud Cost $405k

$400,000

MPD Wells

$300,000

Avg Mud Cost $304k

$200,000

$100,000

$0 Well #1 Well #2 Well #3 Well #4 Well #5 Well #6 Well #7 Well #8 Well #9 Well #10

Haynesville Red River Horizontals

$8,000 100
90

$7,000

80 $6,000
70

$5,000

60
50

$4,000

$3,000

40 30

$2,000

MPD Wells
20

$1,000

10
0

$0

10/29/2008 4/7/2009 Well #1 Well #2

8/1/2009 10/9/2009 2/19/2010 2/24/2010 4/21/2010 4/26/2010 6/19/2010 7/10/2010 Well #3 Well #4 Well #5
AFE $M

Well #6

Well #7

Well #8

Well #9

Well #10
TLL

Trouble Free Cost

DH Cost

Actual Days

Trouble Free Dys

Days/ Lateral Length (100')

M Dollars

Actual Results Depth vs. Days

10000

Plan vs. Actual

11000

12000

48% Improvement
in Depth vs. Days Against Planned # of Days

DEPTH in FEET

13000

14000

15000

16000
15 Days Ahead of Plan

17000
5/23 5/24 5/25 5/26 5/27 5/28 5/29 5/30 5/31 6/10 6/11 6/12 6/13 6/14 6/15 6/16 6/17 6/18 6/19 6/20 6/21 6/22 6/1 6/2 6/3 6/4 6/5 6/6 6/7 6/8 6/9

28

DATE

Actual Results
10000 10500 11000 11500 12000 12500

Depth vs Days 10 Well Campaign (Last 4 With MPD)

Measured Depth, feet

13000 13500

With Microflux MPD

14000
14500 15000 15500 16000 16500 17000

17500

23

13

15

17

19

21

25

27

29

31

33

35

37

39

41

43

45

29

Days From 7" Shoe to TD

47

11

Conclusions
Safety was improved with Microflux MPD Influxes were detected early MFCS system enabled safe circulation of influx at full drilling pump rate vs. slow pump rate. Drilled gas at surface was identified and safely managed MFCS instrumentation supplements operators well control processes and augments existing well control equipment ROP was enhanced through curve and lateral
MPD technique was proven to increase ROP and enable drilling to TD with a reduced mud weight

Drilling time in lower hole section was reduced by 48%

Conclusions
SAVED $2.4MM OVER 4 WELLS ENABLED MORE TIME ON BOTTOM DRILLING

THANK YOU Weatherford and FOREST OIL QUESTIONS?