Scuola Enrico Mattei Master Medea year 2003-2004

1. Alessandro Di Nisio Marco Gazzola Jeremias Guitarte Cristian Masini Marina Muratore Mariangela Perna Scuola Enrico Mattei Master Medea year 2003-2004 Expandable Technologies –Economic evaluation of the installations Students: Tutors: Domenico Di Renzo Alberto Marsala Giorgio Vicini San Donato Milanese, 28th June 2004

2. Agenda • Technological introduction • Reference scenario • Case A – Expandable Technologies: dual zone application • Case B – Expandable Screen in horizontal well • Case C – Expandable Casing • Technological introduction • Reference scenario • Case A – Expandable Technologies: dual zone application • Case B – Expandable Screen in horizontal well • Case C – Expandable Casing • Conclusions

3. SOLID CASING EXPANSION • Cased hole remediation system for casing repair, perforation shut-off, corroded casing, …... • Blank pipes coupled with expandable screens

4. SOLID CASING EXPANSION • Cased hole remediation system for casing repair, perforation shut-off, corroded casing, …... • Blank pipes coupled with expandable screens

5. SOLID CASING EXPANSION • Cased hole remediation system for casing repair, perforation shut-off, corroded casing, …... • Blank pipes coupled with expandable screens

6. Perforated base pipe Courtesy: Baker Courtesy: Weatherford Slotted base pipe EXPANDABLE SCREENS TECHNOLOGY • Effective sand control • Formation support (eliminate/reduce annulus) • Larger ID for easier well intervention access • Expandable screens provide: • Effective sand control • Formation support (eliminate/reduce annulus) • Larger ID for easier well intervention access • Enables accurate production logging

7. SCENARIOS’ HYPOTHESIS

8. Case A – Expandable Technologies in dual zone application • Insufficient gravel quantity • Abandonment of main well and side-tracking • Expandable Technologies as alternative to Gravel Pack

9. Worst Case Case A – Economic Evaluations

10. Case B – Expandable Screen in horizontal well • Horizontal well with OHGP • Bad event: swelling shales • Side-tracking with expandable screen

11. Case B – Economic Evaluations

12. Case C – Solid Casing Expansion • Need for insulating the upper interval (cladding) • No production increase • Need for insulating the upper interval (cladding) • No production increase • Unique differentialCash flow is cost saving of 850,000$

13. Adoption of Expandable Technologies at 10 years

14. Synthesys within Eni group

15. Synthesys within Eni group This conclusion might be conservative. A major E&P company announced a double value creation (320 M€) with almost the same number of installations

16. Conclusions Main features of Expandable Technologies: • Increase in production due to larger ID downhole • Cost savings in comparison with alternative solutions • Though, need to confirm technology’s longevity • Anyway, Expandables are already considered a breakthrough technology • The most ambitious application – in drilling – is the development of the monodiameter well-bore • Increase in production due to larger ID downhole • Cost savings in comparison with alternative solutions • Though, need to confirm technology’s longevity • Anyway, Expandables are already considered a breakthrough technology

17. Thank you for your attention