VAREL INTERNATIONAL

April 20, 2004

VAREL INTERNATIONAL
NEW VAREL
Revenues: US$ 75 million
Headquarters: Dallas, Texas
4 Manufacturing sites : Matamoros, Dallas, Houston, France
Current production :
45,000 Roller Cone bits
600 Diamond products
Present Capacity:
60,000 Roller Cone bits
1,200 Diamond products
850 employees worldwide
VAREL INTERNATIONAL
ROLLER CONE TECHNOLOGY UPDATE

Recent
Accomplishments
Product Lines
Bearing Technology
Cutting Structure
Technology
Additional Features
New Carbide
Technology
PDC Products
 VAREL INTERNATIONAL
RECENT ACCOMPLISHMENTS
1998 - Changed Manufacturing Management

1998 - Added Metallurgical Engineering

1999 - Updated Steel Specifications and Heat Treat Processes

1999 ISO 9001 Certification for Matamoros Plant

2000 - Updated Tungsten Carbide Specifications and Processes

2000 Implemented New Blast Hole Bit Technology

2001 Implemented New Oilfield Bit Technology

2002 - Added Manufacturing Engineering Group

2003 - Reduced Manufacturing Cycle Time

2003 Developed New Carbide Insert and PDC Technology

 VAREL INTERNATIONAL
PRODUCT LINES
Product Bearing Type Size Range

Challenger Sealed Journal ST & TCI 3 7/8

13 3/4

Challenger Roller Sealed Roller ST & TCI 14 3/4 - 17 1/2

ETD Sealed Journal ST & TCI 3 7/8

12 1/4

ETR Sealed Roller ST & TCI 14 3/4 - 26

VAREL INTERNATIONAL
CHALLENGER
Motor Bearing Technology

Floating Bearing Elements

Silver Plated Frictional Surfaces

Welded Hard Metal Inlays

High Temperature Lubricant

High Aspect Ratio HSN Seal

Selectively Matched Components

VAREL INTERNATIONAL
CHALLENGER LUBRICATION SYSTEM

Designed for Reliability

Dome Venting Design

HSN Elastomer Diaphragm

Integral Pressure Relief

 VAREL INTERNATIONAL
CHALLENGER BEARING AND SEAL

Seal Wear Life Comparison

Challenger Seal Life is 60%+
180 greater than that for ETD
160
140
120
Challenger is suitable for motor
Hours

100
CH applications.
80
ETD
60
40
20
0
Actual seal life varies greatly
50 75 100 125 150 175 200 225 250 275 300 with operating environment and
also depends on bit weight and
RPM mud solids control
VAREL INTERNATIONAL
CHALLENGER ROLLER BEARING

Precision Bearing
Hard Metal Inlay on Thrust Surface
Floating Thrust Washer - Ag Plated
Opposing Tool Steel Wear Buttons
Roller-in-Cone
Crowned Rollers
Ball Retention
Radial HSN Elastomeric Seal
High Temperature Lubricant
VAREL INTERNATIONAL
CUTTING STRUCTURE DESIGN

Proprietary Drilling Model

Dimensionless Design Parameters

Design Reviews by Technical Staff

8 CH47
VAREL INTERNATIONAL
MAXIMUM GAGE PROTECTION

Semi-round Top Gage Protection

Maximum Carbide Density

8 CH47
VAREL INTERNATIONAL
D FEATURE - DIAMOND ENHANCED GAGE

Premium Non-planar Interface

SRT Cutters

High Diamond Density

8 CH47D
VAREL INTERNATIONAL
DD FEATURE MAXIMUM GAGE PROTECTION

Premium Non-Planar Interface

SRT Cutters in Back Row

Premium Shaped PDC Cutters in

Gage Row

8 CH47DD
VAREL INTERNATIONAL
CR1G GAGE PROTECTION

SRT Back Row Inserts

Dual Rows for Extra Gage Holding

Can Be Diamond Enhanced

17 CR1G
VAREL INTERNATIONAL
S FEATURE

The S feature consists of two rows of

SRT inserts along the leading edge of
the leg.

The S feature is recommended for bits

run on motor.

The S feature is suitable for standard

rotary applications also.
VAREL INTERNATIONAL
R FEATURE

The R feature is a pad of SRT

inserts at the top of the bit leg.

The R feature is recommended

for all non-vertical applications.

The R feature can be used on

vertical applications.
VAREL INTERNATIONAL
RS FEATURE

The R and S features can be

combined.

Bits with the RS feature are

suitable for all applications.
VAREL INTERNATIONAL
NEW TUNGSTEN CARBIDE TECHNOLOGY

HIGH ENERGY TUMBLING

 VAREL INTERNATIONAL
CARBIDE INSERT MANUFACTURING STEPS

Press from grade powder Tumble polish

Sinter HIP Precision grind OD

HET replaces the tumble polish operation.

VAREL INTERNATIONAL
DROP IMPACT TEST

Dropped HET inserts against

parts made with standard
process

Parts were manufactured from

same powder and press lot
VAREL INTERNATIONAL
IMPACT TEST RESULTS
Impact Test Results - Processed versus Unprocessed

4
Drop Height (Ft)

0
0 2 4 6 8 10 12
Test Number
 VAREL INTERNATIONAL
STATIC BEND TEST RESULTS
F
A static bend test was used to
characterize change in insert
strength.

Parts were subjected to a

static load until failure.
VAREL INTERNATIONAL
STATIC BEND TEST RESULTS
Load at Failure

30000 Processed parts

withstood 2 to 2
25000
times the load as
compared to
20000
standard parts.
Lbs.

15000
10% 11% 16%

10000

5000 10% 11% 16%

0
Std Parts HET Parts
 VAREL INTERNATIONAL
FIELD TEST
ANDREWS COUNTY, TEXAS

7 7/8 CH31 IADC 547Y

55/57 klbs, 65 rpm
58 Hours, 2,782 Feet
Broke inserts in Hard Dolomite Layer

7 7/8 ER5666 IADC 547Y

50/55 klbs, 75/70 rpm
85 3/4 Hours, 4,327 Feet
Drilled to TD
VAREL INTERNATIONAL
7 7/8 CH39S West Texas/New Mexico
CH39S ER5910 Change
# Runs 9 3
CH39S Breaks Up When It
Hits the Hard Dense Cap at
Depth In 1525 1336
Depth Out 4705 5515
4,700 feet
Feet 3419 3488 2.0%
Hours 136.5 97 -28.9%
ROP 29.3 34.4 17.4% ER5910 Drilled the Cap
and an Additional 800 Feet
DOC 0.090 0.125 38.9%

Dull O 3 1 66.7%
Dull I 4 2 50.0% Average ROP was 17%
Dull Mode LT BT
Faster
$/Ft $11.95 $10.15 -15.1%
Savings per Bit $6,278
VAREL INTERNATIONAL
7 7/8 CH39S Lea County, New Mexico

CH39S Dull Grade 4-3 BT ER5910 Dull Grade 2-1 BT

Depth Out 4,905 ROP 29.3 Depth Out 5,515 ROP 36.8
 VAREL INTERNATIONAL
SUMMARY AND CONCLUSIONS

Parts made using high energy tumbling were tested versus

conventional inserts. Significant improvements were seen in
near surface hardness, impact strength, and bending load
capacity.

Field tests show that bits with HET tumbling have

significantly improved ROP and resistance to insert breakage,
resulting in lower costs per foot.
VAREL INTERNATIONAL
World Class PDC Bit Technology
SPOT (Simulateur Pour l Optimisation des Trepans)
SPOT generates:
Net Imbalance Force
Predicted Cutter Wear
Specific Energy per Cutter
Engagement per Cutter
Volume Removed per Cutter
Bit Torque
 SPOT 3D

SPOT 3D Considers

Axial and Lateral displacement

Imbalance Force
Directional behavior (Steerability +
Passive gage
Walk)
Bit Behavior based on dynamic factors
Active gage

Nose / Shoulder

Cone
VAREL INTERNATIONAL

Premium Cutters

Standard Diamond Table - .080

Non Planar Interface
 Shock Studs

Customized positioning

Improve bit stability reducing

lateral and axial translations

Reduce impact damage

 VAREL INTERNATIONAL
Hydraulic Simulation Output

Mesh from CAD

Output File

Simulation Using
Analysis &
N3S-Hydrofor
Modifications
 HYDRAULIC ANALYSIS
Fluid Velocity
& Shear stress Fluid pressure
Particles trajectories
VAREL INTERNATIONAL

DISCUSSION