CASING DRILLING

A Revolutionary Approach to Reducing Well Costs

February, 2000

What is Casing Drilling? Drilling and casing wells simultaneously where the casing is used to transmit mechanical and hydraulic energy to the bit.
Elimination of drill pipe and drill collars. Elimination of tubular tripping. Reduction of unscheduled events. Increased drilling safety. Reduced rig costs. Reduced overall well costs.

Casing Drilling- A Complete Solution

Use

Casing Drilling Process for Entire Well

Conductor/Surface Intermediate Long String

Reduced Improved Improved

Costs Performance Safety

Rotary Drilling vs. Casing Drilling

HOLE PROBLEMS WHICH RESULT IN EXCESSIVE ROTARY DRILLING COSTS - AND THE CASING DRILLING SOLUTIONS 1. SWELLING FORMATIONS 4. SWAB OIL & GAS 2. SLOUGHING FORMATIONS 5. HOLE IN CASING OR KEYSEAT 3. WASHOUT 6. RUNNING LOGS & CASING DIFFICULTIES

Industry Flat Time Lost

(as percentage of total well time)
Non-scheduled Casing

Events

12-25%

Installation

12-21%
10-12%

Tripping Formation

Evaluation

5-18%
5-10%

Completions Range

Total Flat Time

44-86%

(From DEA Flat Time Reduction Opportunities Houston, 21-Sept-99)

Casing Drilling Applications

Large

Diameter Hole

No need for large drill collars or drilling tools Significantly improved hydraulics & hole cleaning Reduced risk of hole problems from tripping Eliminate risk of getting stuck running casing Improved safety and efficiency

Casing Drilling Applications- contd.

Offshore

Reduced deck loading through eliminating pipe and collars- save space and weight Flexibility for contingency strings Improved well control

Time saved = significant economic advantage

Casing Drilling Applications- contd.

Jungle/Helicopter

Rigs

No drillpipe/collars to fly in and out Casing goes one-way only Rig is smaller and lighter for same depth rating Reduced fuel consumption and transportation costs

Casing Drilling Applications- contd.

Unstable

or Sensitive Lithology

Casing is always on bottom Excellent hydraulics for superior hole cleaning No reaming/backreaming on trips- NO TRIPS Time saved = significant economic advantage

Casing Drilling Applications- contd.

Directional

or Slant Wells

Fully steerable- use conventional directional assembly Less torque and drag while drilling- increased reach? Fewer hole cleaning problems

Casing Drilling Applications- contd.

Shallow

Gas

Drilling rate is competitive Total drilling time improved over straight rotary Better well control- reduced risk from shallow kicks, especially while tripping

No tripping pipe and collars

Can use a smaller, lighter, faster moving rig Reduced moving costs

Casing Drilling Applications- contd.

High-mobility

Rigs; Revamping

Reduced capital cost Smaller footprint, lower lease prep costs Reduced moving costs Empower older rigs with new technology Reduced fuel and maintenance costs

Casing Drilling Technical Challenges

Changing Casing Bit

the Bit & Bottom Hole Assembly

Connection

Cutting Structure
Evaluation

Formation

Cementing

& Drilling Out the Shoe

Tescos Total Solution for Casing Drilling

Factors

to be Considered in the Design of a Casing

Drilling Wellbore:
Casing Loading
fatigue limits, tension, compression, critical buckling

Connection Design (what level of service?)

Cutting Structure (bit program) Well Control Issues Directional Drilling (steering and/or correcting) Logging, Testing, Coring, Cementing

Hole Integrity Issues

Tescos Total Solution for Casing Drilling

Tesco

Provides the Only Total Solution:

Complete Drilling Engineering

Complete Technology Capabilities Programming Tools and Equipment Fully Integrated Project Management Services

Complete Daywork, Lumpsum or Turnkey Capabilities

Casing Drilling Technical Challenges

Changing the Bit & Bottom Hole Assembly

Run/retrieve tools and accessories without pulling casing

Casing Connection Handle drilling loads, minimize fatigue, competitive cost

Bit Cutting Structure

Destroy rock with low torque, low RPM using PDC cutters- no stick/slip Underreamer engineered for hard rock and continuous service- short arm extension, robust

Formation Evaluation
Log, test, core

Cementing & Drilling Out the Shoe

Cement with pump-down float Drill out and drill ahead to next casing point with next casing string

Casing Drilling Downhole Tools

Wireline BHA- Drill Lock Assembly
Running & (Incorporates by-pass) Retrieving Torque Anchor Axial Dogs Stop Dogs (Locks into Tool (Lock into (Locate at
Lock Collar) No Go shoulder) torque collar)

Anchor & Seal Assembly

Add Mud Motor

as required

Bit

Underreamer

Casing Assembly- Casing Landing Assembly

Casing
Centralizers as reqd Casing Lock Collar Casing Torque Collar

Casing Shoe

Running & Setting BHA

Lower BHA (while circulating and reciprocating) until stop dogs locate at No Go shoulders Stop pump and jar down to close by-pass and lock axial dogs into lock collar Continue to jar down to release running tool Retrieve running tool while circulating and reciprocating

Drilling Surface Casing

Bottom Hole Assembly

Bit (must pass through casing drill string and drill pilot hole)

Underreamer (must pass through casing drill string and

underream pilot hole out to

desired diameter)

Retrieving BHA

Latch running tool into BHA

Jar up to open bypass and release axial dogs

Circulate through by-pass to

allow underreaming arms to

retract

Hoist tool out of casing while circulating and reciprocating

Cement Surface Casing

Drilling Out Cement Plug

Options -Bit/Underreamer -Bit/ Drilling Casing Shoe -Drilling Casing Shoe / Flat Bottom Mill

Drilling Below A Cemented Casing String

Bottom Hole Assembly: -Bit (must pass through casing drill string and drill pilot hole) -Underreamer (must pass through casing drill string and underream pilot hole out to the inside diameter of the last casing string set) Note: Underreamer arms can be enlarged to underream the last casing string set if required

Drilling Directionally

Bottom Hole Assembly -Bit -Underreamer -PDM with bent housing -MWD -NMDC -Anchor & Seal Assembly
(Locked into casing)

Coring

Conventional coring 30-60 feet per run.

Core/underream as a continuous operation.

Retrieve coring assembly on wireline.

Logging

Retrieve BHA, pull casing from

section of interest, log

conventionally in open hole.

Log through steel casing

(cased hole logs)

Log while drilling:

Suspend BHA below casing shoe

and LWD as currently done and

demonstrated here.

Casing Drilling Tools Being Assembled on Catwalk

Making-up DLA

Lowering DLA Into First Joint of Casing

DLA Latched Into First Joint of Casing

Second Joint Picked Up, About to be Stabbed

Full Casing Drilling Assy - Drilling Ahead

BHA
Bit
Underreamer

REED HYCALOG DS74H 98mm (3 7/8) 25 X 8mm Cutters

Tesco - RBI 3 Blade 98mm PDC Bit

Underreamer (3 nozzles), Pilot bit (5 nozzles) @ 0.45m3/min

PDC Cutters - 155.6mm (6-1/8) hole with 114.3mm (4-1/2) Casing

MODIFIED CUTTERS

FORMER CUTTER DESIGN

PDC Cutters - 215.9mm (8-1/2) hole with 177.8mm (7) casing; two runs, 1200 ft, Wyoming

4.5 Hunting Interlock Coupling with Torque Ring

Grant Prideco Integral Upset Coupling with Torque Shoulder

SPIR-O-LIZERS Zinc Alloy

Rotating Steel (Hard Banded) 7 Centralizers - Wyoming

Tesco Pump Down Float Plug

Pump down while circulating prior to

cement job. Lands in CLA. Burst out disc with pressure.

Retains cement after standard wiper plug is bumped.

Seven Loads

Stiff Mast Range III Single

100 Ton Nominal Rating Rating With 139.7mm (51/2) Casing 3000m (10,000ft) 25.3kg/m (17lb/ft)

Rating With 114.3mm (4-1/2) Casing

3960m (13,000ft) 20.08kg/m(13.5lb/ft)

Moving On and Rigging Up

Pipe Handling System in Operation

Innovative Casing Saver Drive System Elevator Circulating Head Non-threaded Drive

Fully Automated Controls

Test Well Schematics

Test Well # 1

Test Well # 2

Conductor Casing
9-5/8 43.5 lb/ft P-110 WT- IPC 12-1/4 Open Hole to 130 ft 7-5/8 26.4 lb/ft N-80 WT-IPC 10 Open Hole to 565 ft 5-1/2 17 lb/ft PZ- 50 WT-IPC / Buttress CNV-SC-BTC 7 Open Hole to 3040 ft Plugged back and directionally drilled to 86deg. Plugged back and open hole side tracked to 60deg.

Surface Casing
9-5/8 36 lb/ft Buttress-CNV K-55 12-1/4 Open Hole to 689 ft 7 23 lb/ft Buttress CNV-SC-K-55 8 1/2 Hole to horizontal @ 2900 ft Plug back, drill S profile and cement @ 2200 ft (vertical) 4-1/2 11.6 lb/ft Buttress CNV-SC PS-80 6 1/4 Open Hole to 3000 ft

Surface Casing

Intermediate Casing

Production Casing

Production Casing (Long String)

Note: All Casing is ERW

First Shallow Wells in Canada

520m vertical wells (Cessford) 177.8mm conductor pre-set Drilled in and cemented 114.1mm casing Hours from spud to rig release
59.5

60 50 40 30 20 10 0

31 25 19.25

1st Well

2nd Well

3rd Well

4th Well

Operational Improvements-Countess Project

800m+ vertical wells (Countess) 177.8mm conductor pre-set Utilized Integral Buttress 114.1mm casing
UNDEREAMER - New Cutter Design with Nozzles
TOP DRIVE ALIGNMENT - Better Counterbalance, New Torgue Bushing CASING CONNECTION - Integral Upset Shouldered Buttress CASING SHOE - 152mm OD, strengthened perimeter, reaming pads CEMENTING - Pumpdown Float Plug, Plug Loading Head DRILLING DATA - Full Electronic Pason recorder and displays

Wyoming Depths for Casing Drilling

Surface Casing 9-5/8 36 lb/ft Buttress-CNV L80 @ 803 ft Production Casing 7 23 lb/ft Buttress - CNV L80 @ 6,480 ft
Rotating hours to surface casing depth
35 30 25

(RC) (RC) (RC)

Hours

20 15 10 5 0

803 ft

(PDC)

786 ft

814 ft

1st Well

2nd Well

3rd Well

4th Well

846 ft

Surface Hole Learning Curve in Wyoming

250m+/-, 12 1/4 Surface Hole 9 5/8 x 36ppf K-55 Surface Casing Wells one and two with Hunting Interlock Convertible Buttress Wells three and four used API Buttress Couplings

70 60 50 Hrs From Spud 40 to Plug Down 30 20 10 0 Best Offset 38

62 45 38 29.5

1st Well

2nd Well

3rd Well

4th Well

Conclusions

Commercially available casing and connections can handle the required torsional and compressive loads while drilling with casing if drilling parameters are controlled and annular clearance is minimal
Equivalent penetration rates were observed as compared to conventional rotary drilling (through alternating siltstone, shales, coal, sandstone) Significant time can be saved for tripping with wireline compared to conventional tripping with pipe

Tesco Casing Drilling Advantages

Rig Efficiencies
Reduced capital and logistics costs due to lighter
substructures and single derricks Reduced personnel and increased safety by eliminating extensive pipe handling Separate strings of drill collars and drill pipe need not be acquired, transported and maintained Lower horsepower from reduced circulating pressure and elimination of drawworks tripping

Tesco Casing Drilling Advantages

Operational

Efficiencies

Elimination of backreaming and reaming to bottom

following trips Lower prime mover fuel consumption Increased bit hydraulics Lower mud and cementing costs Elimination of casing handling and drill string running time

Tesco Casing Drilling Advantages

Unscheduled

events eliminated

Taking a kick while tripping the drill string Unintentional sidetracks while reaming back into the hole Hole problems caused by swab and surge pressures Key seats and wearing holes in previously set casing

Built-in washover capabilities if BHA becomes stuck

INNOVATIVE TECHNOLOGY WITH AN INTERNATIONAL FOCUS Tesco Corporation is a global provider of innovative, technology based solutions to the upstream energy industry. Tesco designs, manufactures and services equipment that reduces the cost of drilling for and producing oil and gas and, is a supplier of valueadded products and services to heavy industry. Tesco is growth oriented and committed to an ongoing, in-house research and development program that leads to the practical application of new technologies.

CASING DRILLING
A Revolutionary Approach to Reducing Well Costs

February, 2000