CASE HISTORY

NORTH SEA – THREE WELLS ANALYSIS

This case history showcases NeoTork’s utilization in a well (N05-01x) that was side-tracked from an
existing well (N05-01) following a discovery, to better ascertain the size of the geological structure.
After about 1,000 meters (m) drilled, N05-01x had to be abandoned because of a pressure incident
forcing the operator to cement the whole BHA downhole. A third well was then drilled (N05-01xx),
this time without NeoTork. Those three very similar wells, one drilled using NeoTork and the two
others without, allow a clear comparison of the impact of NeoTork on drilling performance.

Application Description
N05-01 was targeting a specific geologic structure in the Top Findorf sand. The well was drilled using
a RSS powered by a PDM and the bit was a TK66 from NOV (IADC M222). At a depth of 2744m the 8
½ section was completed and the well extended by a 6” drain. That drain hit a hydrocarbon bearing
zone and tests identified good potential. To better define the size of the pay, a side-track well, kicking
off from N05-01 9” 5/8 casing was decided.
N05-01x was drilled using a RSS system. NeoTork was located at approximately 40m from the bit
which was a PDC type TD506X from Baker Hughes (IADC M223). After 962m drilled and at the depth
of 2832m, an inflow was observed. While trying to control the well, a crack occurred in the upper
formation and the well started to lose mud from that level, while still producing water from the
bottom. After a few attempts to solve this issue, it was decided to cement the whole BHA downhole
and abandon that well for a second side-track.
N05-01xx was side-tracked from 1860m depth. The side-track assembly drilled down to 2150m where
a new RSS assembly, powering a PDC bit TD506X from Baker Hughes (IADC M223), was run. This new
assembly completed the 8 ½ section.
The lithology drilled on those three wells was identical however N05-01x was not vertical but had a
small deviation, from 6° to 18° with a total TVD difference of 19m. N05-01xx had a hole angle ranging
from 5° to 10°. The drilled rocks consisted mostly of salt, clay and at the bottom of the section a hard
level of anhydrite and carbonate, which will be one of the focus of this case study. All three wells were
drilled consecutively using the same contractors, and both N05-01x and N05-01xx used the same drill
bit.

ROP Difference N05-01 vs. N05-01x

70 Despite the fact that N05-01x was a side-
AVG ROP track and was kicked off with controlled
36.1 m/hr parameters it delivered a much better
60 ROP than that achieved drilling N05-
01. The daily progress report on the
left clearly highlights the difference in
50 progression between both wells.
The improvement in performance
40 was made possible as, due to NeoTork
downhole action, superior drilling
parameters could be set when drilling
30 N05-01x as surface sensors showed
a steady torque and downhole
measurements were exhibiting shock
20 level 0 and stick-slip 3 to 10%,.
The overall improvement in ROP when
AVG ROP
comparing both wells was approximately
10 26.1 m/hr
40%, however ROP was improved
38 % ROP threefold at specific points during drilling
Improvement (see chart).
0
1,990 2,260 2,540 2,790
Depth (m)
www.neo-oiltools.com Page 1 of 4
 Comparative Analysis N05-01x and N05-01xx
Bit Wear
After the side-track was completed, the third well - N05-01xx - was drilled with an identical BHA and
drill bit than N05-01x. A run of 543m was completed in 37.72 hrs (average ROP 14.4 m/hr). However,
NO5-01x did not benefit as much from the easier salt and clay drilling conditions at the top of the
section. In order to present the most unbiased comparison, this case study will focus on the bottom
part of both runs where they crossed the Zechstein Group/Z2, predominantly composed of anhydrites
and carbonates that are a notorious cause of lower ROP (as they tend to increase downhole vibrations
and stick-slip).

The chart on the left is a screenshot

of the driller monitoring panel whilst
crossing that interval on N05-01xx.
A WOB of 10 tons and RPM of 170
ERRATIC delivered a 5 to 7m/hr ROP but with
TORQUE highly erratic surface torque. Both
the erratic torque, but also the need
to control parameters to reduce stick-
slip, are mentioned throughout the
drilling report related to this interval.

The chart on the right represents

the same interval when drilled
using NeoTork on N05-01x. Due to STEADY
the steadiness in the surface and TORQUE
downhole sensors, parameters could
be optimised and WOB was pushed
to 18 tons while RPM were increased
to 200. As a result this section was
drilled with an average ROP of 28
to 36m/hr; a fivefold improvement
on what was achieved when drilling
the same interval using same bit /
assembly on N05-01xx.

Page 2 of 4 www.neo-oiltools.com Case History - Three Wells Analysis

 ROP
Below are the results of drill-off tests done whilst drilling N05-01x upper anhydrite layer. These
illustrate further NeoTork’s ability to work at higher parameters.

The tests show that NeoTork proved highly efficient under enhanced drilling parameters: stick-slip
remained almost negligible and vibrations were at level 0 (see chart below). It is worth noting that a
drastic drop in RPM had an immediate detrimental effect on stick-slip, as would be expected. Both
RPM and WOB need to be balanced to secure smooth drilling conditions.

Case History - Three Wells Analysis www.neo-oiltools.com Page 3 of 4

 Summary and Conclusion
While this analysis is incomplete, as for obvious reasons bit wear could not be compared, it can be seen
that the performance delivered by the NeoTork BHA on the N05-01x well was a marked improvement
on the results achieved with similar or equal bits/BHA on the two reference wells.

As all other conditions were equal, this improvement in performance can be entirely attributed to
NeoTork and its ability to allow optimised drilling parameters. This was particularly evident when
drilling tougher formations (anhydrite) where an 80% increase in WOB and 20% on RPM resulted in
ROP multiplying up to fivefold through the same interval.

Statistics aside, the strongest argument for utilizing a new technology remains the positive feedback
from third party users. Below, is an extract from the directional drilling contractor’s report, highlighting
the obvious benefits of using NeoTork.

BHA PERFORMANCE REPORT - DIRECTIONAL DRILLING BHA # 4

COMPANY RIG BHA Type: Rotary Steerable(RSS)
WELL FIELD Date Depth Inc. Azi. TVD
Client Rep. Location In 1870 m 2.7° 312.0° 1865 m

Directional Driller: M. Boonen/J.Noordhoek Job # Out 2832 m 18.0° 232.0° 2813 m

BHA Objective: Reason for POOH: Drilling Problems Low = x High = xxxxx
Kick of from a whipstock in a direction of 232.deg and building from vertical to 10deg Unable to get the well under controll by Well Control xxxxx
inclination. Hold inclination and azimuth untill a depth of 2752m and continue building from increasing the MW to the max. Well was still
there to 27.9 deg inclination in the same direction. At 27.9deg hold inclination and azimuth flowing w/o circulation. Decision was made in
and drill tangent to section TD of approx.4188m town to cement in the BHA, cut and POOH
DP.
Run Details Bit Details PowerDrive Details BHA Component Length Size (OD) Bit to
BHA Number #4 Bit Number #2 Run Number #1 8 1/2" PDC Bit TD506X 0.27 8 1/2" 0
DepthIn 1,870 Size 8 1/2" Size 6 3/4'' PD 675 w/ 8-3/8" Stab 4.09 8 3/8" 3.47
Depth Out 2,832 Type PDC, TD506X Type PD X6 PD SRX Slick 1.70
Total Ftg. made 962 Manufacturer Baker Huges Control Stab 8 3/8" TeleScope 675 NF 8.38
Drilling m. (Rotary) 962 100% Serial Number 6013880 Flex Collar s/n n/a 6.75" X-Over Sub 0.72
Drilling m. (Orient) 0% Gauge Length 4'' Control Unit s/n 4011 8-3/8" NM Stabilizer 2.07 8 3/8" 16.02
Total Drlg. Hrs 27.85 Jets/TFA in2 6x12 / 0.663 Bais Unit s/n 52923 2 x 6-3/4" NMDC 18.33
Rotary Drlg. Hrs 27.85 ROP (R) m/hr 34.54 GunDRILL Reamer 1.94 8 3/8" 36.42
Orient Drlg. Hrs 0.00 ROP (O)m/hr #DIV/0! Drilling Hrs 27.58 NeoTork 5.45
Reaming Hrs 61.68 ROP (Avg.) m/hr 34.54 Operating Hrs 96.28 10 x 6.75" Spiral Collar 92.93
Drilling Cmt. Hrs 0.00 Bit Grading Rerun Hrs 0.00 2 x Tri-Spiral HWDP 18.72
Circulate Hrs 96.28 n/a n/a n/a n/a Cum. Hrs 96.28 6 1/2" Jar 9.87
Total Circ/Op. Hrs 96.28 n/a n/a n/a n/a 5 x Tri-Spiral HWDP 46.80
Mud Details Drilling Parameters (Range over the run) 6 1/2" Accelerator 10.01

During the
Type Glydrill (Rotary) (Orient) String Wt 3 x Tri-Spiral HWDP 28.08
Wt. (sg-lbs/gal) 1.91 WOB 8-18 n/a mT 5" DPS for OH 2115.96

whole section so far

Vis 56 RPM 60-190 n/a Up Wt. 103 t X-over 1.12
PV 47 Flow LPM 1950 n/a Down Wt. 93 t 5-1/2" DPS (26.44 ppf)
YP Pressure Bar Press Δ: Rot Wt.
seen no stick slip and
52 141-169 30 98 t
pH 8.7 Torque Kft/lbs 8-19 Reactive: n/a
Solids % 34 % Calculated BHA Weights Inc. @ 0.0°
Torque been a flat line the
Sand %
Oil %
0.1%
% BHA Weight
In Air
28 T
In Mud
28 T
Wt (Inc & Mud)
28 T
run been a test for NeoTork
Chlorides
Temp (Sur/ MWD)
191000 k
51 65
Wt Below jars
Wt Above Jars
21 T
8T
21 T
8T
21 T
8T Total Length 2366.44

tool that seemed to help

Operation Summary:

smoothing
Before this run a whipstockout
was set torque
at 232 azimuth at a depth of 1867.5m. The window was milled successfully and a second window elongation run been done. The bottom of the

fluctuations and therefore

window was at 1865m and the rathole was drilled to 1870m with the second milling run.

The BHA was picked up as listed above. The MWD & PowerDrive were tested on surface and the PowerDrive was set into GTF mode 100% steering ratio 0 deg TF. To make sure the
helping
tool started straightto optimize
away in
milling to plug the tools.
the correct setting. The pipe got filled every 300m and circulated for 6 minutes with 1950lpm to prevent the crystalized salt and metal filings from the

Went through theROP.shoe with 400lpm and w/o rotation. Brought the flow up to drilling flow rate of 1950 lpm when through the window. Initiated drilling the kick off with 1950lpm,
141bar, 80 rpm, 8-12 Knm TQ and 5T WOB. Brought the rpm down when stabilizers and reamers went through the window. The parameters were gently increased in order to
optimize the ROP. At a depth of 1890m was the kickoff confirmed and the steering ratio reduced to minimize DLS.

The NeoTork
At the tangent angle of 10 deg at 1964m the PowerDrive was set into inclination hold mode. The ROP significantly increased in the Zechstein salt to 50-60 m/hr. The well was
circulated clean at a depth of 2395m and pulled back to the shoe in order to pick up the remaining 5in DP. Ran in hole again and continued drilling the tangent.

tool that was used

The client and drilling engineer agreed the DD’s proposal to optimize the trajectory by start building earlier and therefore reducing DLS in the trajectory. Went successfully through
the first drillers target. During the whole section so far seen no stick slip and Torque been a flat line the run been a test for Neotorq tool that seemed to help smoothing out torque
as field test run did
fluctuations and therefore helping to optimize ROP. The formation behavior changed at a depth of 2805m and the PowerDrive started dropping even though steering up. A little
deeper at a depth of 2832m a sudden pressure increase of 60 bar, increase of WOB and increase in active mud volume was observed. The well was shut in immediately. Circulated

a very good job,

out the influx using drillers method. Influx confirmed as Brine. Tried to kill the well with 1.84sg mud unsuccessful shut in pressure 14 bars due to logistics tried dynamic kill that
succeeded. The day after a boat with new mud and chemicals arrived and started to increase the mud weight to 1.91 sg. The shut in pressure was 6 bar and the well was flowing
without circulation. The decision in town was made to cement in the BHA and use wireline to cut of the 5in DP. Plug back with cement to 2100m.
reducing the stick-
Conclusions and Recommendations: slip.
The kick off from the whipstock was performed with the PowerDrive in GTF mode, 0 deg TF 100 steering ratio. The whipstock it self gave enough inclination for the PowerDrive in
order to see his reference piont, highside and kicked off succesfully. The BHA behaviour was really good, there were no left or right tendencies seen and PowerDrive was steering as
required.

The NeoTorq tool that was used as field test run did a very good job, reducing the stick slip. In this scenario the tool started working optimum from a WOB of 12 ton.

Page 4 of 4 www.neo-oiltools.com Case History - Three Wells Analysis