Nov Inc. · NYSE:NOV
Nov — AADE Mid-Continent Symposium 2012
19 slides from Nov's conference presentation, Jan 18, 2012
Slide 1: 4" Wired Drill Pipe in the Granite Wash
4” Wired Drill Pipe in the Granite Wash AADE Mid-Continent Symposium 18Jan12 Tulsa, OK Dan Melcher
Slide 2: Outline
Outline Background Area / Geology overview Basis for Wired DP Project Wellbore Schematic Wired DP Major Components Topdrive modification kit Wired DP Project Initial 3 well trial with Wired DP & Nitrified OBM Next 6 well with just Wired DP Summary Plan forward 2
Slide 3: Area Map
Area Map Elk City, OK Weatherford, OK Oklahoma City Anadarko Division TX Panhandle Granite Wash Area Wheeler, TX 3
Slide 4: Granite Wash Deposition
Granite Wash Deposition Large Gathering of sediment Cobbles, boulders, eroded Granite, etc. Mass wasting event Debris / Turbidite flow into submarine canyon Fan out / channels 4
Slide 5: Granite Wash Deposition
Granite Wash Deposition Wired DP OKLAHOMA TEXAS Project Area ROGER MILLS Short travel distances from source 10’s of miles for GW Sharp, angular, not well sorted BECKHAM Porosity / localized perm Lateral variability 5
Slide 6: TXPH Lost OBM
TXPH Lost OBM Lost OBM •Total Average – 1667 bbls •Allison Area – 2426 bbls •Stateline / Stiles Ranch – 347 bbls 6
Slide 7: Typical WBS
Typical WBS Water String 13-3/8” 48# H-40 STC to cover water protect depth Surface 9-5/8”36# J-55 LTC @ 1500’ Intermediate 8-3/4” hole to 100’ above KOP (between 10,500’ to 13,000’) WBM, 25-30 ppb LCM 7” 26# P-110 LTC DV Tool @ 6600’ to isolate Brown Dolomite (SWD zone) Production 6-1/8” hole to TD
Slide 8: Intelliserv Wired DP Components
Intelliserv Wired DP Components 4 Data Swivel for Topdrive Extracts signal from drillstring and transmits to MWD surface computer 3 Wired Drill Pipe Conveys the Telemetry Signal 2 Booster / Measurement Subs Boosts the Signal, Takes Measurements along string 1 Interface Sub / Intelliserv Crossover (I
Slide 9: Intelliserv Wired DP
Intelliserv Wired DP Cable under tension in tubular interior Coil in Box End Coil in Pin End No Orientation Required Stabbing Guide Required No Impact on Thru-String Operations 9
Slide 10: Intelliserv Wired DP
Intelliserv Wired DP Armored coax D = 0.2 inches // 5.08mm 10
Slide 11: Data Swivel on TDS-11
Data Swivel on TDS-11 apeake —_—_ fu UNK ADAPTER ASSEMBLY Ae OO A» —© 15 PI 4 (Freuuserv DATA SWIVEL SUB IT (PISTON END TO A4) i— 16) (ROD END TO 84) 17.75" = 232425 VOINT CLAMPS 4 B TO 1112113) 2x 83-1/2" REF IBOP CRANK ASSY 18 CLAMP POSITION FOR BREAKING Upper IBOP assembly 22.50" OUT UPPER IBOP I
Slide 12: Intelliserv Wired DP
Intelliserv Wired DP Wired Components Drill Pipe and HWDP Drill Collars and Monels Jars Shock Subs IBS’s and Roller Reamers Saver Subs Float Subs Crossovers IBOP’s ETC. No Agitator currently available Booster Subs Along string Temp, Annular Pressure, and Internal Pressure Only temp available in 4” D
Slide 13: Project Overview
Project Overview Wired DP and nitrified OBM – Why? Lost OBM while drlg lateral ― 1667 bbl/well average for 2010 and 2011 for Wheeler, Hemphill, and OK stateline ― 2426 bb/well average in Allison area ― $250K overall average // $364K Allison area @ $150/bbl Minimal tolerance of LCM for 4-3/4” MWD’s T
Slide 14: Initial 3 well trial
Initial 3 well trial Wired DP w/ Nitrified OBM on 3 wells Observations 1st lateral BHA noticed high stick slip, ended up cutting off N2, tightened up jetting on subsequent BHA’s (150 psi) C/O Weatherford’s membrane unit to high pressure kit. 0.3 to 0.5 ppg ECD reduction when injecting N2 ~200 to 750
Slide 15: Next 6 wells
Next 6 wells Wired DP only Observations Get rid of N2 unit and surf equipment // can call out in event of significant loss If losses encountered get aggressive w/ LCM (cedar fiber) Faster Telemetry Total Estimated Additional Pricing increase over trial Time Saved Tripping Speed less Extra Trip Time
Slide 16: Wired DP DVD
Wired DP DVD craste NERGY Curve and Lateral Performance of Wired DP wells 41000 r v i i v 1 6-1/8" Production Hole Section Performance DEPTH'S NORMALIZED TO 11,000' and operations start when we begin drig w/ curve BHA 1800 4 — Lee 507H ses — — Alexander 205H — —Zybach 163H Lott 17 4H TA Greenhouse 3
Slide 17: Summary
Summary Benefits Other Considerations Enable telemetry transmission in high Extra Personnel on location LCM or aerated mud with 4-3/4” tools Slight decrease in trip speed ~265 fph Need to save 1133 bbls OBM to break 4 to 5 days of Intelliserv electrical even at 2011 pricing (4th thru 9th qualificati
Slide 18: Plan Forward
Plan Forward 2012 Continue with Wired DP on current rig Additional IXO’s and backups being manufactured Planning to pick up 2nd wired DP rig Schedule Wired DP wells in areas of high OBM losses, depletion, etc. 18
Slide 19: Questions
( Chesapeake Questions