Primary funding is provided by The SPE Foundation through member donations

1. Primary funding is provided by The SPE Foundation through member donations and a contribution from Offshore Europe The Society is grateful to those companies that allow their professionals to serve as lecturers Additional support provided by AIME Society of Petroleum Engineers Distinguished Lecturer Program www.spe.org/dl

2. Improved Recovery and Reduced Cost with Intelligent Interventions (Make your wells intervention friendly) Brian Schwanitz Welltec Society of Petroleum Engineers Distinguished Lecturer Program www.spe.org/dl

3. Interventions Introduction: A case for regular interventions • Unconventional resource wells (shale gas, shale oil, coal gas, etc) • - Have steep declines. Few operators have planned workovers!! • Intelligent wells are designed to be Intervention-less. • - But is this realistic? They have no plans for workovers!!! • Why do Subsea wells have 25% – 35% less recovery than platform wells? • - Due to less interventions • - Wait for wells to die before doing anything BPD Normal Decline Years

4. Agenda • What is an “Intelligent Intervention” • The Industry Moves To Electric Line (E-Line) Mechanical Services • Examples of Intelligent Interventions • New Technologies to Watch

5. What are Intelligent Interventions? • Using Electric Line for surface monitor and control - diagnostics • Interventions that are faster, safer, with smaller footprint, performing more services, for less cost and risk • Performing interventions with the well still flowing, rigless, riserless • Four Companies Offer Electric Line Mechanical Services

6. Coiled Tubing Movement is from Heavy to Lighter, Faster, Interventions Snubbing/HWO Electric Line Any intelligent fool can make things bigger and more complex... It takes a touch of genius - and a lot of courage to move in the opposite direction. Albert Einstein

7. What problems can be solved with E-Line Tools Water shut off - hydraulic stroking tool Cleaning Fill - Vacuum Bailers Multilateral Locator Milling Scale

8. More interventions can happen on E-line Interventions by Type Number of interventions Mechanical Services on Tractors Introduced Down hole Tractors Introduced Source: Company analysis, Statoil, Norwegian Petroleum Directorate Note: Riserless Light Well Intervention (subsea well intervention) using tractor technology Source:

9. Down Hole Tractor 4 ½” OD – 17 “

10. Down Hole Tractor Sizes Open Hole 2 1/2” 3 1/8” 2 1/8” CT Tractor 4 1/2”

11. E-Line Hydraulic Stroking Tool StrokerTool Sizes Diameter: 2-1/8” 3-1/8” 3-1/8” XR 3-3/8” XS Length: 15.3 ft15 ft 22 ft 13.7 ft Weight: 180 lbs220 lbs 240 lbs 250 lbs Stroke Force12,000 lbs20,000 lbs 20,000 lbs 33,000 lbs Completion ID 2.2 – 3.2” 3.2 - 6.85” 3.2 - 6.85” 3.45 - 6.85”

12. An Intelligent Shifting Tool Closed Open Key Tool Sizes Diameter: 2-1/8” 3-1/8” 3-1/2” Length:12 ft 11 ft11ft Weight: 80 lbs 160 lbs 160 lbs Pressure:25 K psi 25 K psi 25 K psi Temp Rating: 400o F 400oF400oF Completion ID: 2.4 – 5.5” 3.2 – 5.7”3.6 – 6.2”

13. Surface read-out (position & force) Stroker arm fully extended Sleeve starts to move Shear pins break Key releasing sleeve Sleeve is moving

14. System Integration Test (SIT) to shift ICV Left to right: Tractor, Stroker, Key tools E-line tools inside ICV 14 Hydraulic key tool

15. Animation – Shifting a Sliding Sleeve 15

16. Vacuum cleaning in liquid filled pipe

17. Animation - Cleaning Fill Off a Ball Valve

18. Cleaning in a Dry Gas Well E-Line Tractor combined with cork screw bailer

19. E-Line Milling Tool Features • Always run in conjunction with a Tractor or Stroker • Removes scales, cement, valves, nipple profiles, plugs, etc • Near bit stabilizer may improve drilling rate • Involves much planning and often pre-job testing Milling ToolFeatures Diameter: 2-1/2” 3-1/2” * Length: 10 ft 10.4–12.2 ft Weight: 70 lbs 95 lbs Pressure: 25,000psi 25,000psi Temp Rating: 400°F 400°F Completion ID: 2.6 in 3.6 in* Tensile Strength: 36,000lbs 42,000 lbs Comp. Strength: 30,000 lbs 50,000 lbs *3-1/8” Well Miller and RCB also available

20. Animation – Milling Scale Tractor + Scale Miller well flowing

21. Animation – Milling and Cleaning – same run

22. Surface Test: Drill thru Cement Plug

23. Video – Cutting Pipe Pipe Sizes 4” – 5 ½”

24. 4.5” tubing retrieval for Sakhalin Energy Very fine debris

25. New Technologies to watch that will make a difference • Better measurements to assess problems • Fiber Optics data acquisitionwhenneeded • Simple wells can be made ‘smart’ at a later date • Set metal expandablepatches– E-line and CT • More mechanical services; stroke, clean and mill Fiber Optic cable E-Wireline operatedICV`s andfrac ports E-Line Setting of Internal Patch

27. Relative Cost of Interventions/Workovers • Subsea Interventions have biggest need for cost reductions • Riserless Light Well Interventions (RLWI) have large impact on subsea wells • Reduced operation cost • Reduced operating time • Reduced HSE risks • Enables more frequent • interventions Relative Cost Land Platform OffshoreRig RLWI Subsea Wells

28. Keeping up production through regular Interventions One North Sea platform production by source BBL/day Light Well Interventions gave a 39,000 bbls/day increase Source: Note: Year not disclosed for confidentiality reasons

29. Intervention Strategy with the Future in Mind • Design intervention friendly completions: - Minimize ID restrictions, which limit options to - Accommodate new technologies - Be aware of developments in the “pipeline” Fiber optics, metal to metal patches, wireless robotics, ICD’s when needed, etc. • Accurate diagnostic data is imperative • Must know the problem to solve the problem • Avoid “fixing” something that’s not broke • The Correct Intervention Strategy : • CT for handling pumping jobs • E-Line for data collecting, selective cleaning, shifting, milling • Riserlessworkovers (subsea) • Have contingencies planned and tested before completion

30. Thank you for your time Questions