PerformanceStepChange: NewApproachtoBakkenField Development

HaniIbrahim,SmithBits,ASchlumbergerCompany ValentinVisinescu,MISWACO,ASchlumbergerCompany

Agenda
BackgroundInformation TraditionalApproach NewApproach Results

BackgroundInformation
BakkenShaleisahugeFieldspanningacross2 statesandovertoCanada Extractioncostandcomplexityhampered activity MultipleSwellPackersrunoncompletion necessitategaugedwellboreandfreeofdebris

AreaMap

Lithology

TypicalWell Schematic

TypicalWellboreDesign

TraditionalApproach
Eachcomponentinthedrillingstringis handledseparately Effectonotherelementsinthedrillstringis oftenignoredornotconsidered

NewApproach
Holisticapproachwhereeverycomponentin thedrillingenvironmentisvettedforthe purposeandexaminedinrelationtoallother componentsorwellborecondition. Proprietarysoftwaresimulatedrilling environmentandcorrectplacementto minimizeShock&Vibrationsandprovidebest Drillingenvironment.

OptimizationFlowProcess
SELECT CANDIDATE Well/Client PROPOSE PROCESS& PRICINGto SelectedClient COLLECTDATA &Benchmark Offsetwells ESTABLISHKPIs WithCustomer ASSIGN OPTIMIZATION TEAM

FINALIZEPLAN ReviewwithClient ReviewLogistics

POSTWELL ANALYSIS MODELWELL WellPath,BHAs, Fluids,Hydraulics, Etc.

EXECUTE PLAN

OffsetWellGeologicalAnalysis

BitSelectionfor8section
DRILL INTERVAL
Dakota, Kibbey Lime Marker, Charles Salt, Charles Base, Base of Last Salt, Ratcliffe, Mission Canyon, Lodgepole, False Bakken, Kinderhook Lime, Middle Bakken Target

Lithology
Well Name: Strand 16-9 1H Depth: 2140.00 to 10888.00 by 1.0 feet Total Depth Steps: 8749 1.0
511 75 5.8% 0.9% 6083 69.5%

Mill Tooth
Well Name: Strand 16-9 1H Depth: 2140.00 to 10888.00 by 1.0 feet Total values: 8634 Skewness: -0.2604 Within range: 8634 Variance: 8.556 Geom. mean: 4.06 Kurtosis: -1.437 Standard deviation: 2.925 Min. of data: 0.3 Arith. mean: 5.304 Median: 5.936 Mode: 8.500 Max. of data: 9.73
100

TCI
Well Name: Strand 16-9 1H Depth: 2140.00 to 10888.00 by 1.0 feet Total values: 8634 Skewness: 2.119 Within range: 8596 Variance: 14.13 Geom. mean: 2.015 Kurtosis: 5.262 Standard deviation: 3.759 Min. of data: 0.1371 Arith. mean: 3.383 Median: 1.837 Mode: 0.500 Max. of data: 29.63
100

Abrasion

Impact

Depth Steps: Count Dominant Rock Type: % of Interval

1413 16.2% 358 307 4.1% 3.5%

Key 95%
Up. quartile

3660.7

2977.8

Median
Lo. quartile

5% 0.5

25.9
32.6
Cumulative Frequency % Cumulative Frequency %

Low

Moderate

High

V. High

Low

Moderate

High

V. High

Cumulative Formation Abrasion

Cumulative Formation Impact

19.4

13.0 10.2 7.64 0.0

CLYST
CHALK

12.3 8.21 6.61 4.91 2.47 8.69

11.7 6.67 6.03 6.88 5.22

MARL

CNGL

COAL

CHRT

META

CLAY

VOLC

PYRT

IGNE

SILT

DOL

AN

SH

HL

SS

LS

2.05 1.49 1.16 1.04 1.21 1.14 1.08 0.65 0.57 0.47 0.33 0.19 0.12
00 10 20 30
T CI_BIT [DBOS];1 (none) -

Normal
0

Moderate Formation Abrasion

Heavy

V. Heavy

Normal

Moderate Formation Impact

Heavy

V. Heavy

DSJ

XR+

G MT _BIT [DBOS];1 (none) Mill Tooth

VH

Not recommended

40

50

60

70

80

90

TCI

Unconfined Compressive Strength

Well Name: Strand 16-9 1H Depth: 2140.00 to 10888.00 by 1.0 feet Total values: 8634 Skewness: 0.6542 Within range: 8622 Variance: 47702792 Geom. mean: 4611.1 Kurtosis: -0.7441 Standard deviation: 6906.721 Min. of data: 89.99 Arith. mean: 8065.8 Median: 5869.4 Mode: 1500.000 Max. of data: 34377
100

PDC Blades
Well Name: Strand 16-9 1H Depth: 2140.00 to 10888.00 by 1.0 feet Total values: 8632 Skewness: 0.7359 Within range: 8632 Variance: 7.387 Geom. mean: 1.726 Kurtosis: -0.9276 Standard deviation: 2.718 Min. of data: 0.2352 41.4 Arith. mean: 2.937 Median: 1.497 Mode: 0.500 Max. of data: 9.472
100

PDC Cutter
Well Name: Strand 16-9 1H Depth: 2140.00 to 10888.00 by 1.0 feet Total values: 8632 Skewness: 0.9035 Within range: 8632 Variance: 5.322 Geom. mean: 0.9533 Kurtosis: -0.2863 Standard deviation: 2.307 Min. of data: 0.2 Arith. mean: 2.18 Median: 1.032 Mode: 0.500 Max. of data: 9.707
100

Roller Cones Gage Protection

PDC Profile
Well Name: Strand 16-9 1H Depth: 2140.00 to 10888.00 by 1.0 feet Total values: 8632 Skewness: 0.8203 Within range: 8632 Variance: 3.256 Geom. mean: 1.38 Kurtosis: -0.7955 Standard deviation: 1.804 Min. of data: 0.3904 Arith. mean: 2.085 Median: 1.192 Mode: 0.500 Max. of data: 6.26
100

4.0

8.75 In
12.1

49.6
C umulative Frequency % C umulative Frequency % C umulative Frequency %

SD

SD1 Gage Protection

D2

BD 45.0
C umulative Frequency %

7.92

7.82

5.71

13.3
3.13 2.74 2.73 2.44 3.25 2.69 2.18 1.94 2.18 2.12 1.67 1.57 1.51 1.90 1.97 2.15 2.17 1.99 2.10 1.86 1.45 1.87 2.05 2.08 1.69 1.59 1.59 1.31 1.24 0.50 0.41 0.29 0.28 0.22 0.12 0.17 0.08 0.05 0.03

1.8 9.21 5.83 5.63 6.24 7.04 6.77 3.22 1.36

0

15.7 11.6 8.53 7.80 8.34 6.75 3.19

22 mm 19 mm 16 mm 13 mm 11 mmT[DBOS];1 (none) 9 mm PDC_CUT TSD Coarse IMPREG

9.72 2.97 0.85

Fine

8.99

8.62

11.3

1.66 1.70 1.70

0.02 0.07 0.02

0.39

H
0

OD Heel Protection

OD1
Long Medium
PDC_PROF[DBOS];1 (none) -

0.67
0

UCMPS[DBOS];1 (psi) -

PDC_DEN[DBOS];1 (none) -

10 - 12

13+

Short

Flat

Blades

PDC

Fixed Cutter Profile

LN Porosity
Well Name: Strand 16-9 1H Depth: 2140.00 to 10888.00 by 1.0 feet Total values: 8749 Skewness: 5.225 Within range: 8749 Variance: 0.00055 Geom. mean: 0 Kurtosis: 35.52 Standard deviation: 0.024 Min. of data: 0 Arith. mean: 0.00726 Median: 0 Mode: 0.013 Max. of data: 0.2949
100

Turbo Drill Blades

Well Name: Strand 16-9 1H Depth: 2140.00 to 10888.00 by 1.0 feet Total values: 8632 Skewness: 0.835 Within range: 8632 Variance: 7.825 Geom. mean: 2.374 Kurtosis: -0.6948 Standard deviation: 2.797 Min. of data: 0.2695 Arith. mean: 3.407 Median: 2.244 Mode: 1.500 Max. of data: 9.579
100

Turbo Drill Cutter

Well Name: Strand 16-9 1H Depth: 2140.00 to 10888.00 by 1.0 feet Total values: 8632 Skewness: 1.218 Within range: 8632 Variance: 6.546 Geom. mean: 1.5 Kurtosis: 0.3438 Standard deviation: 2.559 Min. of data: 0.2428 Arith. mean: 2.526 Median: 1.288 Mode: 0.500 Max. of data: 9.873
100

Fixed Cutter Gage Protection

Turbo Drill Bond Material

Well Name: Strand 16-9 1H Depth: 2140.00 to 10888.00 by 1.0 feet Total values: 167 Skewness: 0.9134 Within range: 167 Variance: 4.124 Geom. mean: 16.75 Kurtosis: 2.196 Standard deviation: 2.031 Min. of data: 11.86 Arith. mean: 16.87 Median: 16.83 Mode: 17.000 Max. of data: 23.73
100

Standard

PX PDC Gage Protection

PXX

90.8

27.2 54.4 44.9

Cumulative Frequency % Cumulative Frequency % Cumulative Frequency % Cumulative Frequency %

63.5

20.4

Standard

PX Turbo Drill Gage Protection

PXX

10.7 7.14 5.87 6.19 7.07 4.74 4.84 15.4 5.79 7.80
0

15.6 6.49
13 mm

7.19

5.77

4.74

1.62 1.20 0.67 0.38 0.27 0.14 0.06 0.02 0.02 0.06
LN PO R[DBOS];1 (frac) -

3.28
Coarse

2.78
IMPREG

3.99
Fine

2.42
0

6.59 0.60
Soft

3.59

7.19 2.99
0

T UR_BLDS[DBOS];1 (none) -

10 - 12

13+

22 mm

19 mm

16 mm

11 mm[DBOS];19 mm T UR_CUT (none) TSD

Medium T UR_BIND[DBOS];1 (none) Bond Material

Hard

Blades

PDC

ProprietaryBHAModelingSoftware

ProprietaryHydraulicsModelingSoftware
1995-2011 M-I L.L.C. *Mark of M-I L.L.C.

Operation: Circulating @ 83.00 hr Rotary Speed: 60 rpm Penetration Rate: 0 ft/hr Flow Rate: 550 gal/min

MD: TVD: Bit Size: Date:

XXXXX ft XXXXX ft 8.75 in XX/XX/XXXX

Operator: Well Name: Location: Country:

Shale Gas Operator Well #1 Williams County, ND USA

VIRTUAL HYDRAULICS*

RHECON*
80

Depth (ft) MD/TVD

(ft)

Geometry

Csg OD/ID
(in)

Schedule

24

ROP

Rotary Speed

Rotary Speed (rpm)

0 20 40 60 80 100

ROP (ft/hr)

Operation

1000

Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Drilling Sliding Circulating

60

16

40

2000

9.625 8.921

20

3000
0 20 40 60 80 100

20

40

60

80

100

Time (hr)
4000
560

Time (hr)
10.00

Time (hr)
2800

Flow Rate

ECD @TD Pump Pressure (psi)

Pump Pressure

ECD @TD (lb/gal)

5000

Flow Rate (gal/min)

540

2600

520

9.92

6000

2400

500

7000
480 0 20 40 60 80 100 9.84 0 20 40 60 80 100 2200 0 20 40 60 80 100

8000
9.92

Time (hr) ECD @Shoe

2.00

Time (hr) Min and Max ECD Profiles Hole Cleaning Index
1.00

Time (hr) Hole Cleaning

ECD @Shoe (lb/gal)

9000

10000

Depth (1000ft)

9.88

4.25

0.75

9.84

6.50

0.50

11000

8.750

9.80

8.75

0.25

9.76

20

40

60

80

100

11.00 9.76

9.84

9.92

10.00

20

40

60

80

100

12000

Time (hr)

ECD (lb/gal)

Time (hr)

ProprietaryHydraulicsModelingSoftware

OperationMonitoring
Wellismonitored24/7byspecialized personneltoprovideguidanceand recommendationsthroughoutthedrilling operation Compliancetothesuggestedparametersis electronicallymonitored LessonsLearntcapturedandappliedina ContinuousImprovement(CI)cycle.

Parameters&WellMonitoring

ParametersComplianceResults

Compliance > 90%

Compliance > 90%

0
0

10

15

20

25

30

35

5000

10000

15000

20000

Planned
25000

Actual

OptimizationCycleforContinuous Improvements

HolisticOptimization

RESULTS

Questions

QUESTIONS