April 2016

Innovative drilling fluid technology and global support for greater drilling productivity.

AMC Drilling
Fluids

Topics to be discussed
Blast hole rigs and BHS application.
BHS usage rates.
Feedback.
Costs and savings.
Future forecasts.
Future trials.

Innovative drilling fluid technology and global support for greater drilling productivity.

Innovative drilling fluid technology and global support for greater drilling productivity.

Blast Hole Rigs

Initial pump installation and

modification cost $2,000.

Innovative drilling fluid technology and global support for greater drilling productivity.

Innovative drilling fluid technology and global support for greater drilling productivity.

Innovative drilling fluid technology and global support for greater drilling productivity.

Innovative drilling fluid technology and global support for greater drilling productivity.

BHS usage rates

During the trials we wanted to see:
Would BHS work in an underground environment. Lots of moisture,
hyper saline
water and using rigs which are not traditionally
designed to pump any kind
of fluid.
Would BHS be cost effective depending on how much we needed to
use.
Neat Lead to product going off inside bit. Blocking it.
Using too much water diluted and made BHS ineffective.
Needle valve changed to ball valve to increase rate of injection
Mist used was the best scenario.
Maximum usage of BHS was set at 15L for 20M which would make it
$3 per hole more expensive.
This was refined and successful to 10L for 20M.

Innovative drilling fluid technology and global support for greater drilling productivity.

Innovative drilling fluid technology and global support for greater drilling productivity.

Innovative drilling fluid technology and global support for greater drilling productivity.

Innovative drilling fluid technology and global support for greater drilling productivity.

Innovative drilling fluid technology and global support for greater drilling productivity.

Feedback
15 holes drilled with BHS in total.
4 Camera sent up
8 No mud holes
2 PVC Casing
29th March - second camera footage was completed.
31st March - meetings with management team at Evolution.
11th April - Peter Keen, UG Drill Supervisor, will present to entire UG
crew. JB will be present.
11th April - 2nd rig timeframe will be announced and converted as
soon as possible.
22nd 25th April Trial with new formulation.

Innovative drilling fluid technology and global support for greater drilling productivity.

Cost Savings
Initial cost to resource
company
20M PVC @ $14.50
20M BHS @ 10LCube
20M BHS @ 10LPOD
350M Quota for 2 rigs
175M Converted Rig 24 hour
period
PVC
BHS Cube
BHS POD
Per Annum
BHS Cube
BHS POD
Redrills
2nd Vehicle Fuel
Labour time

Cost
$2,000
$96.66
$66.00
$59.40

$845.75
$577.50
$519.75

Innovative drilling fluid technology and global support for greater drilling productivity.

Saving
$30.66
$41.40

$268.25
$326.00
$97,911.25
$118,990.00

Total Annual Drilling Costs

800,000.00

700,000.00

600,000.00

500,000.00

Costs

400,000.00

300,000.00

200,000.00

100,000.00

PVC Full

BHS

No redrills

No Fuel

Innovative drilling fluid technology and global support for greater drilling productivity.

No Labour

No Driller time

Total Costs

Other benefits
Storage PVC
pallets BHS.
QHSE
personnel

1,700 3M lengths per month. As opposed to 2 bulkers or 3

No manual handling. No transport vehicle required. No additional

having to cart the PVC. Cutting lengths.

Drilling
More metres can be achieved because drillers do not need to
install casing.
Contractors Evolution have already stated that if the trials are successful then
they will
enforce contractors to use it in place of PVC. Evolution are
buying direct so
the fluid is already paid for.

Innovative drilling fluid technology and global support for greater drilling productivity.