Excellence In Coring

Market Map

Our History...In November of 2000, Corion Diamond Products was formed in Western Canada through the asset purchase of Security DBS (Halliburton Energy Services) North American coring equipment. At the same time Corion acquired Noralta Coring Ltd, a leader in coring unconventional formations such as heavy oil sands; and merged these two existing firms together form Corion Diamond Products Ltd. Corion expanded operations into the U.S. in January 2003.

In July 2005, Corion Diamond Products Ltd was acquired by REEDHycalog, a Grant Prideco Company, to form REEDHycalog Coring Services.
REEDHycalog Coring Services is the leader in both conventional and unconventional coring with one of the largest inventories of Core Bits and Core Barrels in North America.
7-Nov-05

Why REEDHycalog Coring Services?

REEDHycalog Coring Services is the largest coring company in North America

Presently serving over 100 clients
Cutting twice as much core than any other coring company

(approximately 70,000 feet of core in 2005)

Our professional staff of coring experts has a cumulative level of expertise that is second to none in the industry (over 150 years) We offer the latest in technological advancements in the coring industry to improve your efforts while saving you time and money.
Corion ExpressTM: Wireline retrievable coring, drilling, and

logging system for production-hole size or slim-hole applications 7-Nov-05

Coring Services
REEDHycalog Coring Services
provides a full range of coring services.

Conventional Coring Low Invasion Coring Plastic Lined Coring High Pressure Coring Oriented Coring Wireline Coring Heavy Oil Coring Shale Coring Coalbed Methane Coring

Additionally, we offer solutions for difficult coring situations such as:

Highly fractured core zones High pressure-high

temperature environments
7-Nov-05

Unconsolidated formations

Major Customers

EnCana Oil & Gas

ConocoPhillips Devon Energy Oxy Shell E&P

Red Willow Production

Talisman Energy
Husky Oil Burlington Kerr McGee Exxon Mobil

Samson Resources
Anadarko Williams Energy

Chevron
JAPEX

Presently servicing over 100 customers 7-Nov-05

Coring Services Profile

Total Amount of Core Cut
2002 Conventional Corion ExpressTM TOTAL (feet) 6,978 12,845 35,889 2003 (feet) 13,015 22,657 44,846 2004 (feet) 9,244 43,323 64,011 2005 (feet) 17,668 51,463 69,131

We cut twice as much core as any other coring company in North America.
7-Nov-05

Wireline Retrievable Coring/Drilling/Logging System

Evolution of Wellbore Construction with Corion ExpressTM

Rotary Drilling
TRIP TRIP TRIP TRIP TRIP

Rotary Drilling TRIP

Rotary Drilling
Conventional Coring

TRIP Rotary Drilling

Corion ExpressTM Corion ExpressTM

FEWER TRIPS
= MORE CORE = DECREASED COSTS

NO TRIPS
= EVEN MORE CORE = FURTHER DECREASED COSTS 7-Nov-05

Accomplishments
Oil Sands and Coalbed Methane (CBM)

High Speed Recovery Inner Tubes with 3 core Core and Drill in Hole Size ranging from 6 to 8

3 core diameter in as small as 6

800 Wells Cored and Drilled with Corion Express

Gas Hydrates

Japex Pilot Project for Hydrate Gas First well ever to recover intact hydrate core to surface Over 95% recovery of hydrates

Continuously cored 860 ft (262 m)

Completed the desired coring interval 4 days ahead of the time curve
7-Nov-05

Corion Express Advantages

Larger Core Diameter

3 - 3 diameter core

>7500ft 9% 50007500ft 16% <2000ft 36%

Conventional core quality via wireline Traditionally 1-2 diameter core

Deeper Depths
Overcoming limitations

20005000ft 39%

Depths greater than 10,000ft Off-shore capability

Based on USA 2006 projects

Oriented Wireline Coring System Under-balanced Wireline Coring System

7-Nov-05

How It Works Coring Assembly

1) P3 = P1 + P2 2) P2 (typically 400psi)
creates 2000 lbs thrust force

4 IF
P3 Stand Pipe Pressure

Rope Socket

3) Thrust force keeps

inner barrel in place until a jam occurs. The jam transfers the WOB to the inner tube and over comes the thrust force unseated

P2 Pressure developed ported pressure head

Pressure Ports Landing Seat Bearing Assembly Inner Tube Outer Tube

Fluid Diverter Ports

4) Tool becomes 5) P3 = P1 (~100psi) 6) Surface indication

P1 Typical system pressure seen at the bit

Stabilization

7-Nov-05

Catcher Assembly Core Bit

So What is a Hydraulically Seated Inner Barrel?

Inner barrel is dropped from surface
sails through the drill string and lands on the seating sub (metal to metal)

7-Nov-05

Fluid circulates from surface and

reaches the pressure head

F

Fluid pressure holds the seated barrel in place, by creating a thrust load on the pressure head Fluid is then diverted from the pressure head into the outer barrel feeding the bit
7-Nov-05

While coring, if a jam occurs,

there is a weight transfer

from the core bit to the inner barrel

2500

causing the inner barrel to

unseat, which is seen at surface by a pressure

decrease

7-Nov-05

How It Works Drilling Assembly

The drilling component works on the same principle a the coring component. 1) As the drilling collet lands, the fluid is forced through the top of the tool pushing a tapered plunger down. As the tapered plunger moves down the collet fingers are forced into the open position squeezing the drilling assembly into a locked position. When drilling is completed the wireline is attached to the drilling assembly and pulled up. The pulling action lifts the tapered plunger up allowing the collet fingers to relax and return to the closed position.

4 IF Rope Socket

Collets Pressure Ports Bearing Assembly Fluid Diverter Ports

2)

3)

Stabilization

4)

Insert Bit

Core Bit 7-Nov-05

Drilling Assembly
When the drill rod assembly is inserted the pins on the overshot are sheared the collets lock in place and overshot is wirelined to surface

7-Nov-05

How Our System Can Work For You

Trip in the Corion Express BHA to drill out shoe Drill to the target coring interval

Wireline the drilling assembly out of the hole

Drop the inner coring assembly from surface Core

Wireline the coring assembly out of the hole

Wireline in the drilling assembly Drill to TD

Trip the assembly out of the hole

One Trip Well Bore

7-Nov-05

Equipment
Corion ExpressTM Drill Pipe
18 degree standard slip & elevator bevel 10,000 ft-lb make up torque 60,000 ft-lb yield torque 240,000 Lbs tensile strength

Patented Technology

Increased string weight for coring and drilling ROP Zipped for slips No crossovers in string Reduced surface handling time

Corion ExpressTM Heavy Weight

7-Nov-05

Equipment
Corion ExpressTM Core Catcher
Combined the dual catcher into a

single system to improve recovery.

Increased recovery rate in coal,
Old Technology

shales, and Heavy Oil Cores

Corion Slotted Liner

core

ExpressTM

New Geometry

Removable slotted liner for core removal Cut 6 small tabs to display undisturbed Less than 90 seconds handling time
7-Nov-05

Core Recovery

Mobil Lab allows for samples to be processed in a Controlled Environment

Furnished with
fluoresce white lights and black lights

Accommodates 60
feet of core at a time

Provides a controlled
environment to work
7-Nov-05

2-Piece Bit Technology

Advanced Cutter Technology

Increased Efficiency Improved Core Recovery and Quality

Replaceable insert for longer PDC bit runs Open hole logging capabilities with out tripping

CSS 513

CFM 543

Reduced cost of cleanout trips and stabilizing well bores prior to logging Less risk of losing sources in the hole
7-Nov-05

Wireline Coring at Work

Equipment to the rig
Outer core barrel Inner barrel
components

1/8 slick wireline unit

or 5/16 braided line

Aluminum sleeves

Required amount of
drill pipe

Handling tools 7-Nov-05

Summary

Wireline system works on any Rotary Rig for added penetration rates while drilling or coring Anti-milling feature prevents loss of valuable core/data Drilling bit insert may be inserted via wireline to drill out surface casing, drill through transition zones, or drill to TD
7-Nov-05

New Technology
REEDHycalog Coring Services Setting a New Standard
At Fir 57-21W5 bridging problems prevented logging tools from reaching bottom. Corion Express reamed through the bridges, Reeves Wireline compact logging tools were extended through the two-piece bit and the targeted section of the hole was logged on the first attempt. Thanks to Talisman Energy representatives and the crew of 7-Nov-05 Phelps 23.

Excellence In Coring