MANAGED PRESSURE DRILLING PRESENTATION

______________________________________________________________________

A Continuous Circulating Concentric Casing System for Friction Controlled Drilling

The Gardes Energy Services MPD System Provides:

The down hole control of critical high-pressure, high-temperature wells while drilling using a combination of both standpipe and concentric annulus fluid injection to create frictional pressures on the return annulus and establish a desired equivalent circulating density (ECD) at depth to drill near balance, at balance or under balance in the formation.

During connections, the established standpipe injection volume used while drilling is added to the normal annulus injection volume on the back side, so the ECD remains constant, thus eliminating the bottom hole pressure surges associated with connections and minimizing connection gas influx.

This system overcomes the problems associated with shallow geotechnical hazards, well bore instability, lost circulation and narrow margins between formation pore pressure and fracture gradient.

High Temp., High Pressure MPD System with the patented dual fluid friction circulation.

Increased Concentric Casing circulating rate creates instantaneous control of reservoir inflow without the need for surface pressures or modification of drilling fluid densities.

Managed pressure drilling can overcome a variety of problems including shallow geotechnical

hazards, well bore instability, lost circulation, and narrow margins

between formation pore pressure and fracture gradient.

ECD management by planning and monitoring a Managed Pressure

window.

Narrow ECD window between pore pressure and bore hole collapse that can be maintained with Managed Pressure Drilling and the Gardes Continuous Circulation dual string technology

TVD

psi

STATICBHP = HH(MW)

AFP

CONTINUOUS CIRCULATING CONCENTRIC CASING

DYNAMICBHP = HH(MW) + AFP

Note: Using less-than-conventional mud density, well will be dynamically dead, but may be statically under-balanced

TVD

psipsi

STATICBHP = HH(MW)

AFP

CONTINUOUS CIRCULATING CONCENTRIC CASING

DYNAMICBHP = HH(MW) + AFP

Note: Using less-than-conventional mud density, well will be dynamically dead, but may be statically under-balanced

ADVANTAGES OF GARDES ENERGY SERVICES MPD CONCENTRIC

CASING CONTINOUS CIRCULATION SYSTEM

• Expands operating window between ECD and Frac Gradient.• Reduces excessive cost of circulating out connection gas.• Creates near constant and controllable ECD pressures.• Added well control during trips.• Continuous circulation during connections.• Can be run with all down hole deployment casing valves.• Contains all working pressures below rotary table not on rig floor.• System has an attached whip stock (up stock) for multi lateral

deviation or re entry.• System can be run in open or cased holes• System can be stripped out of hole to keep UB environment at

TD.• System can be run in straight, deviated or horizontal configured

well bores.• System is designed for all MPD situations, Under balanced or tight

ECD environments.

The purpose of MPD is to both ascertain the down hole pressure environment limits and manage the annular hydraulic pressure profile to fit within that window.

5500

6000

6500

7000

7500

8000

8500

9000

9500

Bore Hole Collapse

Pore Pressure

Frac Gradient

Figure 2: Bottom Hole Circulating Pressure (BHCP) vs. Liquid Injection Rates

3000

3100

3200

3300

3400

3500

3600

3700

3800

3900

4000

4100

4200

4300

4400

4500

0 50 100 150 200 250 300

Concentric Casing Fluid Injection (gpm)

Bot

tom

Hol

e C

ircul

atin

g P

ress

ure

(psi

)

100 gpm

120 gpm

140 gpm

160 gpm

Reservoir Pressure

Min. Target BHCP

Max. Target BHCP

Fluid Phase: Water Gas Phase: N/A

Casing Size: 5 1/2" O.H. Size: 4 3/4" D.P. Size: 2 7/8"

Min. Vel.: N/A

Min.PDM Vol.: 100 gpm Max PDM Vol.: 160 gpm

BackPressure: 30 psia Correlations: OLGAS

The Gardes Energy Services MPD System Includes Neo Tech 7 Flow Modeling:

Through Pre planned flow modeling, Down Hole Pressure while drilling tools (PWD) and Real Time on location Flow Modeling we are able to manage the Annular Hydraulic pressure profile to fit within any window.

Bottom Hole Circulating Pressure (BHCP) vs. Liquid Injection Rates. Actual Case History Showing BHCP Control with Minimal Pressure Oscillations

4750

4625

4500

4375

4250

4125

4000

3875

3750

3625

3500

3375

3250Vs

Inj 0 25 50 75 100 125 150 175 200 2250 250

The Gardes Energy Services MPD 4 Phase Surface System Real Time:_______________________________________________

MPD may be accomplished by many means including

combinations of backpressure, variable fluid density, fluid

rheology, circulating friction, and hole geometry

Wellhead for Continuous Circulation

BOP

Secondary Seal

Surface Casing

Intermediate Casing

Test Port

VR Threads

Wellhead for Continuous Circulation

BOP

Running Tool withAcme Thread

Carrier String HangerMicro-Annulus

Production Casing

Run inLockscrews

Carrier String

Test to Working Pressure

Surface Casing

Intermediate Casing

Wellhead for Continuous Circulation

Drill Pipe

Injection Down Drill Pipe

Injection IntoMicro Annulus

Fluid ReturnsCo-mingle

Wellhead for Continuous Circulation

Drill Pipe

Injection Down Drill Pipe

Injection IntoMicro Annulus

Fluid ReturnsCo-mingle

1. Drill Surface Hole2. Set Surface Casing3. Drill Protective Hole4. Set Protective Casing

5. Drill Liner Hole

6. Set liner

7. Run Tieback with Down Hole Deployment Valve with Ports above the DHDV

9. Drill to Zone of Interest

10. Run Carrier String with DHDV with or without Upstock 11. Drill out

12. Run Drill String with BHP Tools and Float Subs

13. Go underbalance with mud weight light enough to be 600 to 800 psi below BHP but with annular friction to maintain surface pressure less than 2,000 psi. Inject down the backside and inside of the tieback string taking returns inside of the carrier string.

8. Rig up RBOP, Programmable Choke, Surface Equipment, and test.

DHDV

DHDV

Carrier String

Ports

Click for each Operation

Drilling Operation

Protective and Tieback casing designed for production

Not necessary to drill out from the liner or the carrier string to go underbalanced.

Robert Gardesphone # 337/234-6544email: rgardes@gardesenergy.com