Slide 1

MEARSK CONVINCERMANAGED PRESSURE DRILLING TRAININGLEVEL 1 RIG CREW

#4/2/2013Confidential Information 2011 M-I SWACOAwareness TrainingDynamicAnnularPressureControl

#4/2/2013Confidential Information 2011 M-I SWACOAGENDAExplain what Managed Pressure Drilling is.Explain what Dynamic Annular Pressure Control is.What the DAPC System does?How DAPC can be used on different wells.How DAPC will affect the daily drilling activity.How DAPC will not affect daily drilling activity.What the Driller and Crew need to know.What the @Balance Crew need to know.#4/2/2013Confidential Information 2011 M-I SWACOWHAT IS MANAGED PRESSURE DRILLING? Some means of controlling BHPMud Cap DrillingAir DrillingPressurised Mud Cap DrillingDual Gradient DrillingFoam DrillingUnderbalanced DrillingDynamic Annular Pressure Control (DAPC)

These are all forms of Managed Pressure Drilling (MPD) #4/2/2013Confidential Information 2011 M-I SWACO Conventional DrillingAnnularPipe RamsMud CrossShakersRiser with a a flow line to the shakersWell bore open to to the atmosphere#4/2/2013Confidential Information 2011 M-I SWACO5 RCD and Primary Flow LineAnnularPipe RamsMud CrossRotating ControlDevice installedon the AnnularCuttings and Mud return to the shakervia the DAPC choke

RCD with rubber element sealing around the drillpipeThe riser is removed andreplaced with a RCD andhigh pressure flow lineto the DAPC choke#4/2/2013Confidential Information 2011 M-I SWACO6 How DAPC works.By closing the DAPC choke on the returning mud, the well head pressure increases. This causes the Bottom Hole Pressure to increase.By opening the DAPC choke, the well head pressure reduces, and the Bottom Hole Pressure reduces.DAPC has a control system that operates the choke and pump, and maintains the Bottom Hole Pressure at the required value.If flow from the well is not enough, the DAPC pump starts pumping, and this allows the DAPC system to keep the required bottom hole pressure.#4/2/2013Confidential Information 2011 M-I SWACO7 What is the DAPC system?A Drilling Choke with two drilling legs. This will be referred to as the DAPC Choke

A back pressure pump to supply mud when flow from the well is not enough. This is the DAPC Pump.

A Control Cabin in which the control system is kept. This controls the choke and pump.

A flow meter manifold which measures the flow rate out of the Well. Often called the Coriolis meter or Micro Motion

#4/2/2013Confidential Information 2011 M-I SWACO8

Equipment Layout#4/2/2013Confidential Information 2011 M-I SWACOMPD Mud Flow

DRILLINGSHAKERSMGSRIG PUMPMPD CHOKEMPD PUMPMPD FLOWMETER#4/2/2013Confidential Information 2011 M-I SWACOMPD Mud Flow

CONNECTIONMGSRIG PUMPSHAKERSMPD FLOWMETERMPD PUMPMPD CHOKE#4/2/2013Confidential Information 2011 M-I SWACO 2006 At Balance Americas LLC All Rights Reserved

Other Chokes and Pumps

#4/2/2013Confidential Information 2011 M-I SWACO12RCD STACK UP

#4/2/2013Confidential Information 2011 M-I SWACORCD SPOOL / BEARING

#4/2/2013Confidential Information 2011 M-I SWACORCD ELEMENTS. SINGLE / DSEA

#4/2/2013Confidential Information 2011 M-I SWACO

Hydraulics model(determines back pressure set-point) Operator GUI + commsPLC

DAPC Control

Choke, PumpSensors DATA & CONTROL SYSTEM

RIG DATAFlowrateStandpipe PressPWDString RPMBit DepthOtherRig data System Data commExisting rig instrumentation#4/2/2013Confidential Information 2011 M-I SWACO1616DAPC control system uses data from the rig system. Critical that this is reliable and fast!Hydraulics model runs continuously.If downhole pressure is available the hydraulics model uses it for calibration purposes, either average density change or average viscosity change. Other variables are also consideredHydraulics program and interface provides set point to PLC either as a pressure or positionPLC adjusts choke position to correct surface pressure for required bottomhole pressure. Adjustments usually occur every few seconds. What the DAPC system can doCan maintain a constant bottom hole pressure while drilling

Can hold a constant bottom hole pressure during a connection when the pumps are off

Can provide an instant increase in the effective mud weight, by increasing the back pressure.

Can provide an instant decrease in effective mud weight by decreasing the back pressure. #4/2/2013Confidential Information 2011 M-I SWACO17 Why are we using DAPC?There are many reasons why an Oil Company would want to use DAPC / Managed Pressure Drilling on their well.Drill through a narrow margin between formation pressure and fracture gradient.Keep Wellbore stability by adding BP when pumps offAvoid problems with connection gasHaving control over the BHP, they can drill further.Accurate kick detection for narrow kick margins. Avoid ballooning the formation.Reduce the BHP, and possibly improve ROP and reduce formation damage.Eliminate the Swab (negative ECD) effect.#4/2/2013Confidential Information 2011 M-I SWACO1810000105001100011500120001250013000135001414.51515.51616.51717.51818.519BHP Operating Window - Higher Pore Pressure - Conventional DrlgLOSSESFrac PressureHydrostaticECDPore Pressure-Well Bore StabilityDepthMW#4/2/2013Confidential Information 2011 M-I SWACO1910000105001100011500120001250013000 135001414.51515.51616.5 1717.51818.519BHP Operating Window - Using BackPressure (MPD)ADD 250 psi BP on Connections Pore Pressure or Stability Frac PressureHydrostaticECDDepthMW#4/2/2013Confidential Information 2011 M-I SWACO20Level 1 DAPC training, 2005 At Balance-Houston Slide 21 of 21 .1 Cubic ft @ 10,000psi680 Cubic ft @ 14.7 psi1 Cubic ft @ 10,000psi20 Cubic ft @ 500 psiConventionalMPD Gas Expansion#4/2/2013Confidential Information 2011 M-I SWACO21 Who are the @Balance CrewOn each tour there will always be:

An MPD Supervisor: Main person to deal with in regards to forward plans, drilling issues etc. He will manage all procedures related to DAPC

A Control Systems Tech: Monitors the control system and ensures it is performing as required.

RCD Supervisor: Monitors the RCD system and main focal point for RCD element change outs.

#4/2/2013Confidential Information 2011 M-I SWACO22 The safest way to drill MPDIdentify potential hazards before they happen. This may be done prior to start up as well as during drilling. Do not hesitate to bring possible problems / hazards to the attention of the Co Man and MPD Supervisor.

Follow the DAPC specific procedures in a steady and logical manner. It is not a race!

Plan ahead and hold frequent tool box talks prior to starting new or different procedures.

Establish, Understand, and Follow the lines of communications. Who gives direction, who takes direction and who monitors the process.

Communicate clearly and confirm you have been understood.#4/2/2013Confidential Information 2011 M-I SWACO23 OrganizationThese will be the most common lines of Communication duringMPD proceduresInclude MPD Supervisorin forward planning forMPD issues#4/2/2013Confidential Information 2011 M-I SWACO24 What affects DAPC OperationsDAPC controls the flow out of the well, and therefore controls pressure in the well.

Any activity involving altering or pumping mud around the well should be done in collaboration with @Balance.

If MW, properties or related equipment is faulty, failing or about to be shut down, then @Balance need to know.

Any DATA or MWD tool changes during MPD operations

Any changes or interruption to the mud, rig air , or power supply to @Balance should be brought to the attention of @Balance.

Please notify the @Balance MPD Supervisor on any of the above issues#4/2/2013Confidential Information 2011 M-I SWACO25 Independent of DAPCAll changes to drilling parameters such as WOB, RPM, which bit to run etc, are not DAPC related. These remain normal drilling issues between the rig and Co Man.

The Driller should continue with Good Drilling Practice when in DAPC mode. This includes issues like working the pipe, etc .

Well Control remains the responsibility of the Co Man / Tool Pusher. The MPD Supervisor is not a Well Control Expert.#4/2/2013Confidential Information 2011 M-I SWACO26 Procedures @Balance have a series of instructions for conducting Operational and Contingency procedures.These are understood by the MPD Supervisor, and need to be directed to the Driller where necessary.The MPD Supervisor will coordinate the DAPC procedures.Procedures include:Making a Connection.POOH with pressure in the well bore.Drill string float valve failure.Rig pump failure.etc

#4/2/2013Confidential Information 2011 M-I SWACO27 Drillers ResponsibilityGood teamwork and communication between the Driller and the Control System Technician is critical

Bringing the mud pumps up and down in a steady and controlled manner will allow the Chokes to react and DAPC system maintain a constant BHP.

To inform the MPD Supervisor of any changes in or failures of the equipment.

Be aware of the RCD element {keep lubricated} #4/2/2013Confidential Information 2011 M-I SWACO28 RCD AwarenessDo not look down onto the RCD. Trapped pressure could release from it at any point.

Be aware that the RCD affects the string weight, and this is exaggerated when a tool joint is passing through.

Should the RCD fail catastrophically, the Driller must shut in the pumps and close the BOPs. The situation can be dealt with once secured.

#4/2/2013Confidential Information 2011 M-I SWACO29 Additional Safety PointsThe flow lines will be under pressure; for this reason, no heavy lifts should occur above the lines, choke and pump, while operational.

The choke valves are remotely controlled, and thus move without anybody turning the handles. Be aware of this when in the area.

The DAPC pump starts up remotely, and always needs a fluid supply from rig tanks available to it. Do not isolate its fluid supply just because it is not pumping at the time.

There are several cables and hydraulic/Air hoses required to run the system. Avoid damaging them.#4/2/2013Confidential Information 2011 M-I SWACO30Thank You&Please ask questions if you are unsure#4/2/2013Confidential Information 2011 M-I SWACO