Best Practice in CBM Drilling - ATLAS COPCO Indonesia Presentation

Indo CBM 2014, Jakarta

Best Practices in CBM DrillingShane A. Lein, Product Manager

Shallow Oil, Gas and CBM Drilling Equipment

Garland, Texas

Best Practices in CBM Drilling

� The key to a successful CBM Drilling Program is Safety,

the Ability to “Quick Turn” the Wells, Quick Set up,

Mobility and small Environmental Footprint

– Safety = good reputation as a Contractor and Employer

– More wells = more revenue– More wells = more revenue

– Quick Set Up = more actual drilling time

– Mobility = more actual drilling time

– Small Environmental Footprint = “Green” Contractor, less $$ spent

on location preparation

Best Practices in CBM Drilling

� Drilling Method requirements are also a consideration

– Amount of equipment required

� Mud System

– Mud Pits, Water Tanks, Mud Pumps, Mud Cleaning Equipment, Mud and – Mud Pits, Water Tanks, Mud Pumps, Mud Cleaning Equipment, Mud and

Mud Treatment Chemicals

� Air System

– Auxiliary Compressor, High Pressure Booster, A Few polymers/additives

Unconventional Rigs vs. Conventional Rigs

� Overall Operating Cost Advantage of Unconventional Rigs

– Less Crew

– Fewer Loads to Move

– Fast Rig Up-Hours, not Days

– Reduces Non Drilling Time/Cost

– Increases Drilling Performance

– Higher Efficiency than Conventional Rigs designed to drill much deeper

– Physical Size of Drilling Location

– Less complicated to rig up providing for a safer environment

CBM DRILLING

Safety, Speed, Mobility, Footage Production, Less Environmental Impact

MOBILE RIG

DOG HOUSE

MUD TANK

MUD PUMP(NOT SHOWN)

GEN

Average Location Size40m x 40m or smaller

TYPICAL CBM LOCATION

SUB STRUCTURE PIPE TUBS & PIPE RACKS

VAC TRUCK

MUD TANKGEN SET

TYPICAL CBM LOCATION

SLUDGE ROLL-BACK TRUCK

LOCATION OFFICE

MUD TANK

MUD PUMP

Average Location Size40m x 40m or smaller

SLUDGE TANK

TRUCK TANK

Conventional Oilfield Land Rigs

� Many Loads (average 15-25, costing tens of thousands of $$ per rig move)

� More components to assemble, set and rig up

� Larger drilling location required

� Standard crew of 5 (per shift) x 2-12 hour shifts or 3 x 8 hour shifts

– 10-15 Crewmembers per shift plus supervisory personnel on site– 10-15 Crewmembers per shift plus supervisory personnel on site

– Driller

– Derrick Hand

– Motor Hand

– 2 Floor Hands

� + Rig Supervisor/Tool Pusher

Conventional Drilling Rig Package

PitRig-Mast, sub,draw works

BOP’sChoke ManifoldDegasser

Mud SystemPits/Cleaning

Change HouseTool House

Large LocationPad 107m x 107m

Pipe RacksPipe,Collars,Casing

Living Quarters and offices

Pits/Cleaning

Diesel EnginesGen Sets

Water TankDiesel Tank

Mud PumpsMud Mixing House

Mud/Chemicals

ReservePit

Unconventional Rigs, Moving on to a Location

EXCELLENT MOBILITY SAVES TIME & MONEY

� Quick rig moves from location to location

Unconventional Rigs, Moving on to a Location

EXCELLENT MOBILITY SAVES TIME & MONEY

� Quick rig moves from location to location

� Quick rig up– Usually a 1-4 hour rig up, depending on drilling methods and auxiliary equipment requirements

– Spud sooner– Spud sooner

Unconventional Rigs, Moving on to a Location

EXCELLENT MOBILITY SAVES TIME & MONEY

� Quick rig moves from location to location

� Quick rig up– Usually a 1-4 hour rig up, depending on drilling methods and auxiliary equipment requirements

– Spud sooner– Spud sooner

� High footage production– Top Drive, better pipe control

– Down Hole Hammer-Air or PDC Rotary-Water/Mud Flush

– Less time on the well

Unconventional Rigs, Moving on to a Location

EXCELLENT MOBILITY SAVES TIME & MONEY

� Quick rig moves from location to location

� Quick rig up– Usually a 1-4 hour rig up, depending on drilling methods and auxiliary equipment requirements

– Spud sooner– Spud sooner

� High footage production– Top Drive

– Down Hole Hammer-Air or PDC Rotary-Water/Mud Flush

– Less time on the well

� Quick rig down

Unconventional Rigs, Moving on to a Location

EXCELLENT MOBILITY SAVES TIME & MONEY

� Quick rig moves from location to location

� Quick rig up– Usually a 1-4 hour rig up, depending on drilling methods and auxiliary equipment requirements

– Spud sooner– Spud sooner

� High footage production– Top Drive

– Down Hole Hammer-Air or PDC Rotary-Water/Mud Flush

– Less time on the well

� Quick rig down

� Few loads to move– Saves time and money

Unconventional Rigs, Moving on to a Location

EXCELLENT MOBILITY SAVES TIME & MONEY

� Quick rig moves from location to location

� Quick rig up– Usually a 1-4 hour rig up, depending on drilling methods and auxiliary equipment requirements

– Spud sooner

� High footage production– Top Drive – Top Drive

– Down Hole Hammer-Air or PDC Rotary-Water/Mud Flush

– Less time on the well

� Quick rig down

� Few loads to move– Saves time and money

– Smaller Environmental Impact-Drilling Location

� Fewer Crewmembers– 3 Per shift typical

Reduced Non Drilling Activity = More Rotating Hours

Unconventional Rigs, Moving on to a Location

SAFE RIG MOVES and DRILLING OPERATIONS

� Less complicated equipment to rig up/rig down– No awkward positions to pin equipment

Unconventional Rigs, Moving on to a Location

SAFE RIG MOVES and DRILLING OPERATIONS

� Less complicated equipment to rig up/rig down– No awkward positions to pin equipment

� No Climbing Mast

Unconventional Rigs, Moving on to a Location

SAFE RIG MOVES and DRILLING OPERATIONS

� Less complicated equipment to rig up/rig down– No awkward positions to pin equipment

� No Climbing Mast

� No High Rig Floors� No High Rig Floors

Unconventional Rigs, Moving on to a Location

SAFE RIG MOVES and DRILLING OPERATIONS

� Less complicated equipment to rig up/rig down– No awkward positions to pin equipment

� No Climbing Mast

� No High Rig Floors� No High Rig Floors

� Smaller scale equipment– More keen awareness of the Crew as to the whereabouts of others

– Fewer Crew Members required to operate the rig

Unconventional Rigs, Moving on to a Location

SAFE RIG MOVES and DRILLING OPERATIONS

� Less complicated equipment to rig up/rig down– No awkward positions to pin equipment

� No Climbing Mast

� No High Rig Floors� No High Rig Floors

� Smaller scale equipment– More keen awareness of the Crew as to the whereabouts of others

– Fewer Crew Members required to operate the rig

� Hands Free Pipe Handling– Safer working environment for Crew Members

� Remain clear of Rotating Pipe

SETTING UP TO DRILL

RAPID SET UP SAVES TIME & MONEY

Information from Actual Rig Moves

� AIR DRILLING - NO SUBSTRUCTURE

5 TRAILER LOADS - 4 PEOPLE

1/2 - 1 1/2 HR SET UP UNTIL DRILLING

AIR ON BOARD TO BEGIN DRILLING IMMEDIATELY

SETTING UP TO DRILL

RAPID SET UP SAVES TIME & MONEY

Information from Actual Rig Moves

� AIR DRILLING - NO SUBSTRUCTURE

5 TRAILER LOADS - 4 PEOPLE

1/2 - 1 1/2 HR SET UP UNTIL DRILLING

AIR ON BOARD TO BEGIN DRILLING IMMEDIATELY

� MUD DRILLING - FULL HEIGHT SUBSTRUCTURE

7 TRAILER LOADS - 6 PEOPLE

2 1/2 - 4 HR SET UP UNTIL DRILLING

QUICK HOOK UP TO ON-BOARD MUD PIPING

Drilling Methods Mud/Air Rotary

Down Hole Hammer

AIR VS. MUD DRILLING

AIR

FASTER & MORE ECONOMICAL IF

– ROCK FORMATIONS

MUD

FASTER & MORE ECONOMICAL IF

– UNCONSOLIDATED FORMATIONS

– LESS WATER INFLUX

– SMALLER HOLES

– LOST CIRCULATION ZONES NOT A

PROBLEM

– LOW PRESSURE GAS DEPOSITS

– LARGER WATER INFLUX

– LARGER HOLES

– NO LOST CIRCULATION ZONES

– HIGH PRESSURE GAS DEPOSITS

MUD ROTARY - AIR ROTARY - DTH

� SELECTION CRITERIA

THE FORMATIONS TO BE DRILLED

THE HOLE SIZES REQUIRED

THE HYDRAULICS (WATER) IN THE FORMATIONS

ECONOMICS

FORMATIONS - DRILLING METHODS

FORMATION

TYPES

MEDIUM HARD

EXAMPLES OF SCHIST QUARTZITE

FORMATIONS

IGNEOUS ROCKS

UNCONSOLIDATED SOFT

UNCONSOLIDATED

SEDIMENTARY ROCKS

METAMORPHIC ROCKS

MASSIVE BASALT

VERY HARD GRANITE

VERY HARD

SAND, CLAY, GRAVEL SOFT SHALE

MED. LIMESTOME

SOFT SANDSTONE

MED. SHALE

GNEISS

GRANITE

SOFT LIMESTONE

SOFT DOLOMITE MED. SANDSTONE

AQUIFER

CHARACTERISTICS

OPTIMUM

DRILLING FOAM &

METHODS ADDITIVES

FOAM &

ADDITIVES

LARGE WATER INFLUX

WHILE DRILLING

MODERATE TO LOW

WATER INFLUX

DRILLING

AIR ROTARY

DRILLING

MUD

VERY LOW WATER INFLUX OR NO WATER

WHILE DRILLING

DRILLING

AIR DHD

WHILE DRILLING

HOLE SIZE

� GENERALLY, AS HOLE SIZE INCREASES BEYOND A CERTAIN

POINT, AIR DRILLING WILL BECOME LESS ECONOMICAL

– CLEANING THE BIT AND HOLE BECOMES A PROBLEM

� DRILLING SLOWS DOWN

– ADDITIONAL AIR COMPRESSORS ARE REQUIRED– ADDITIONAL AIR COMPRESSORS ARE REQUIRED

� COSTS GO UP

FORMATION HYDRAULICS

WHEN FORMATIONS ARE SATURATED WITH WATER, AIR

DRILLING WILL BECOME TOO SLOW TO BE ECONOMICAL

– WHEN MORE WATER COMES INTO THE HOLE THAN THE AIR LIFT

SYSTEM CAN EVACUATE, DRILLING RATE SLOWS DOWN AND

EVENTUALLY STOPS

– ADDING ANOTHER COMPRESSOR AND A BOOSTER

COMPRESSOR WILL OVERCOME THE WATER PRESSURE BUT

WILL ADD OPERATING COST

ECONOMICS

WHEN SUB SURFACE CONDITIONS SLOW DOWN THE DRILLING RATE

WHEN ADDITIONAL EQUIPMENT REQUIREMENTS ADD COST

AIR DRILLING WILL NOT BE ECONOMICALLY FEASIBLEAIR DRILLING WILL NOT BE ECONOMICALLY FEASIBLE

TYPICAL AIR ROTARY

OR DTH-PERCUSSION

DRILLING SET UP

Mud

Drilling

ACTUAL CASE STORIES

RAPID SET UP SAVES TIME & MONEY

Actual Case Example (Alberta, CA)

� 800m Depth CBM Well (Water/Bentonite Flush)– Move on Location and Rig Up

� 4 Hours

– Drill 100m of 9 7/8” Surface hole and set 7” Surface Casing

� 10 Hours

– Drill 700m of 6 1/8“ Production hole and set 4 ½” Production Casing

� 18 Hours

– Rig Down

� 2 Hours

� Total Well, 34 Hours (Excludes BOP Test at Rig Up and Logging Production Hole)

MUD DRILLING LOCATION, ALBERTA CANADA

ACTUAL CASE STORIES

RAPID SET UP SAVES TIME & MONEY

Actual Case Example (Other Areas)

� China

– Mud Drill 12 ¼” to 40m, set 9 5/8” casing

– Air Drilling (DTH) to 350m set 5 ½” casing

– Total Time-5 days

CBM Location in China

CBM Location in China

ACTUAL CASE STORIES

RAPID SET UP SAVES TIME & MONEY

Actual Case Example (Other Areas)

� India - Air Drilling

– Conductor - Drill 17 ½” to 15m, set 13 3/8” casing

– Surface - Drill 12 ¼” to 150m, set 9 5/8” casing

– Production - 7” to 1000 m, set 5 ½” casing

– Total Time-5 days

Compact CBM Location in

West Bengal, India

Compact CBM Location in

West Bengal, India

Compact CBM Location in

West Bengal, India

ACTUAL CASE STORIES

RAPID SET UP SAVES TIME & MONEY

Actual Case Example (Other Areas)

� Australia

– Water Flush Drill and set 9 5/8” surface casing to 120m

– Water Flush Drill to TD at 1000m and set 8 ½” production casing

– Total Time-3 days

CBM Location in Queensland, Australia

CBM Location in Queensland, Australia

CBM Location in Queensland, Australia

Additional Photographs of Unconventional Rigs in CBM Application

Safe, Mobile Equipment, Quick Moving, Quick Rig Up/Down

Small Environmental Footprint

CBM WELL IN WESTERN VIRGINIA

CBM WELL IN WESTERN VIRGINIA

GAS WELL LOCATION SOUTHERN ARKANSAS

FLARING OFF THE GAS – AIR DRILLING WITH LOTS OF WATER IN THE HOLE

GROUND LEVEL LOCATIONAIR DRILLING - CBM - PENNSYLVANIA

MOUNTAIN TOP LOCATIONNARROW MOUNTAIN TOP LOCATION IN VIRGINIA

CBM Location in Botswana, South Africa

Rigging up two rigs in Arkansas.Drilling in Fayetteville Shale

Questions?

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