Blockade Histories

8/9/2019 Blockade Histories

1/49

Apache Corporation

Ms. Tiffany Clifton

OCS-G 02825 E-7

West Cameron Block 65

Offshore, LA

BLOCKADE

CASE HISTORY

Problem Depth: 12,130 MD (11,814 TVD) Hole Size: 10-5/8

Mud Vendor: Ambar/ Lonestar Mud Wt: 17.2 ppg

DrillChem Engineer: Walter Slaughter Mud Type: Water Base

Problem: After drilling to interval TD, a wiper trip was made to the shoe. Whilewashing and reaming back to bottom to condition the hole for running logs and casing,

complete returns were lost. A total of 36 bbl of water was added to the annulus before

the hole became static. An LCM pill containing F.I.T.TM

, Drill-SealTM

Medium, and

Calcium Carbonate was spotted and full circulation was established. After circulating

the water out of the annulus, washing and reaming was resumed. After reaming

another 5 feet full returns were lost again. A decision was made to pump BlockadeTM

.

Application: Upon arrival of the Drillchem engineer on location, the rig was currently

mixing 200 bbl of 17.2 ppg BlockadeTM

slurry which would allow 170 bbls of pump-

able slurry. The bit was placed 59 bbl above the casing shoe and all of the 170 bbl ofslurry was loaded into the pipe within 2 bbl of the bit. After closing the annular

preventers, began bullheading BlockadeTM

slurry at 0.5 bpm using the BJ cement

pumping unit. A total of 127.5 bbl of slurry had exited the bit before a maximum

squeeze pressure of 400 psi was achieved. The annular preventers were opened and the

remaining 42.5 bbl of slurry was circulated out at 8 bpm with no losses. The annular

preventers were again closed and an additional 3.5 bbl were pumped to achieve a final

squeeze pressure of SICP = 400 psi and SIDPP = 400 psi. Pressure was held for 8

hours to allow for dewatering.

Results: After the 8 hour wait, SIDDP = 390 psi and SICP 380 psi. The well wasopened up and observed to be static. While washing and reaming to bottom sweeps

containing 15 ppb F.I.T.TM

, 10 ppb Drill-SealTM

Medium, and 10 ppb Calcium

Carbonate were pumped. The hole was conditioned for logging, and logs and casing

were run without any further problems.


2/49

Apache Corporation

Mr. Brian Logan/ Mr. Vic Socier

OCS-G 21685 #A-5South Timbalier Block 308

Offshore, LA

BLOCKADE

CASE HISTORY

Problem Depth: 17,261 MD (14,890 TVD) Hole Size: 8-1/2

Mud Vendor: Ambar Lonestar Mud Wt: 16.6 #/gal

DrillChem Engineers: Mel Melder/Dale Shank Mud Type: Water Base

Problem: While drilling at 17,261, the hole began taking mud at rates of up to 33%.

The pump rate was reduced from 128 SPM to as low as 60 SPM with no sustained

improvement. Conventional LCM pills failed to stop the losses.

Recommendation: Apache requested DrillChem personnel to perform a

BLOCKADE squeeze. Pipe was pulled, the bottom hole assembly was set back, and

950 of 2 7/8 stinger on drill pipe was tripped to bottom. A BLOCKADE slurry

was spotted on bottom as a balanced plug.

Application: One hundred fourteen barrels of 16.6 #/gal BLOCKADE slurry were

built, but only 93 barrels could be pumped to the Halliburton unit due to the transfer

pump losing prime. Ninety barrels of slurry were displaced into the annulus with 3

barrels remaining inside the tubing. Fifteen stands were pulled, placing the bottom ofthe stinger at 15,867, or 516 above the liner shoe at 16,383 MD. With 61.5 bbls of

slurry in the open hole and 31.5 bbls in the liner, the hesitation squeeze sequence was

initiated. The procedure was completed in ten stages as follows:

Results: After obtaining desirable squeeze pressure, this final squeeze pressure was

held for eight hours. SICP was monitored on the rig-floor choke console gauge and

documented every fifteen minutes. Over this eight-hour period, SICP dropped from

800 psi to 593 psi as the BLOCKADE de-watered to form its terminal integrity

matrix.

Pressure was bled off slowly to zero psi. The pipe was pulled and the drilling assembly

picked up and used to wash and ream from the casing shoe to TD. The residual

BLOCKADE slurry was washed through with no problems. A schedule of 20 bbl

F.I.T. sweeps was implemented to minimize seepage losses as deeper sands were

drilled. The hole was drilled to a total depth of 20,239 with no further loss of mud.


3/49

Apache Corporation

Mr. Brian Logan/ Mr. Vic Socier

OCS-G 21685 #A-5South Timbalier Block 308

Offshore, LA

BLOCKADE Squeeze Sequence

0

100

200

300

400

500

600

700

800

900

1000

0 100 200 300 400 500 600 700

Minutes

Pressu

re

(PSI)

STANDPIPE PRESSURE

CASING PRESSURE

Discontinue pump-in, hold

pressure for 8 hours

Pump-in pressure not to exceed

860 psi (Halliburton gauge), 800

psi (Rig floor gauge) BLOCKADE de-watering

process- Pressure drop from

800 psi to 593 psi

Injection and De-watering Pressure Profile vs Time


4/49

Caskids Operating

Mr. Mike Caswell

A. Jumonville #1Laurel Ridge Field

Iberville Parish, LA

BLOCKADE

CASE HISTORY

Problem Depth: 10,656 MD/TVD (9-5/8 shoe) Hole Size: 8 1/2

Mud Vendor: Haliburton Mud Wt: 13.3 ppg

DrillChem Engineer: Gus Rodriguez Mud Type: Water Base

Problem: After setting the 9-5/8 casing, an attempt to get a shoe test failed. After thefailed shoe test the well went on vacuum and the annulus had to be filled with 80 bbls

of water before the well went static.

Recommendation: Drillchem recommended performing a Blockade squeeze on the

shoe to stop the losses and obtain a sound shoe test.

Application: A 100 bbl 13.3 ppg Blockade slurry was spotted balanced plug style at

the shoe. As soon as the Blockade slurry began to exit the bit full returns were

established. After spotting the slurry the bit was positioned 150 above the top of the

slurry and bottoms up was circulated with full returns, circulating all of the water out

of the hole. After closing the annular preventers, a hesitation squeeze was performedresulting in a final pressure of SIDPP= 2,025 psi and SICP= 2,050 psi equaling a 17.0

ppg equivalent mud weight. Pressure was held for 6 hours. After the 6 hour wait the

annular preventers were opened circulation was established with full returns.

Results: After washing to bottom and cleaning out the Blockade, the shoe was

successfully jug tested to a 16.9 ppg equivalent mud weight. The 8-1/2 interval was

successfully drilled without any further complication with the shoe.


5/49

Denbury Onshore, LLC

Mr. Merlin Keown

S/L 18380

Terrebonne Parish, LA

BLOCKADETMand DRILL-SEALTMare trademarks of Drillchem Drilling Solutions, LLC. SWELL CM, E Z SQUEEZE

,and SYN-SEAL

are

trademarks of Turbo-Chem International, Inc.

BLOCKADECASE HISTORY

Problem Interval: 11,125-15,400 MD/TVD DrillChem Engrs: T. Leblanc/B. BroussardLast csg size: 13 5/8 Mud Vendor: Halliburton/Baroid

Last csg depth: 11,125 Mud Wt: 16.2 ppg

Hole Size: 12.25 x 14.5 Mud Type: Diesel OBM

Background: Lost circulation at 14,119 with 16.0 ppg OBM. Performed two E Z SQUEEZE

hesitation squeezes, but mud losses continued. Performed a cement hesitation squeeze. Drilled out

cement, conducted an FIT to 17.0 ppg EMW. W/R to 13,383, then re-drilled hole to 14,119. Drilled

with 16.2 ppg OBM and full returns to casing point at 15,400 where the well was logged with noproblems. Lost circulationagain while U/R 12.25 hole to 14.5 at 11,210. A third E Z SQUEEZE

hesitation squeeze was applied, lead by a SWELL CMpill, but mud losses continued. A second cement

hesitation squeeze was then performed. After drilling out cement, added 7 ppb SYN-SEALto the mudsystem while W/R with a 12.25 bit to 15,340. Lost circulationagain at 15,340. Stuck pipe with the

bit at 15,010 while attempting to POOH into casing. Backed off drill string at 14,803. Pulled open-end

drill pipe up inside the 13.625casing while filling the annulus with water to keep hole full. Applied fivehesitation squeezes and lost approximately 6,500 bbls in this interval, prior to requesting Drillchems

assistance.

Application: Operator suspected that mud losses were occurring around 13.625 casing shoe and

behind casing due to compromised cement bond, but decided to conduct a Blockade squeeze beforeproceeding with another cement squeeze. Positioned open-end drill string 200 above casing shoe.

Mixed 400 barrels of water-based BLOCKADETM slurry at 16.2 ppg in reserve pit. PumpedBLOCKADETMslurry down drill string with rig pump, bull-heading 350 bbls past the shoe, leaving 30

bbls inside casing (380 bbls net volume pumped). Maximum pressures observed were 448 psi on DP and

50 psi on casing during injection. Shut pump down and observed 0 psi SIDPP and 0 psi SICP. Drillchemrecommended filling annulus and letting pill de-water for 10 hours. Opened Hydril and filled backside

with 16 bbls of mud initially, then with 13 bbls of water over the next hour. Annulus then remained

static while monitoring well for next 10 hours.

Results: After 10 hours wait time, engaged mud pump and circulated with full returns at 3 bpm with

open-end drill string 200 above shoe . Staged pump up to 5 bpm, then 8 bpm with full returns. Mixed a50 bbl pill containing 50 ppb BLOCKADETM

and 5 ppb DRILL-SEALTM

in OBM. Spotted 40 bbls netvolume of the pill around open-end drill string. Pulled up above pill to 10,467 (658 above casing shoe).

CCM at 5 bpm, cutting mud weight from 16.2 to 16.0 ppg. Shut pump off, closed Hydril, and conducted

FIT as per operator to 295 psi CP (16.51 EMW) while pumping into annulus. Pressure bled back to 210

psi SICP (16.36 EMW) over next 10 minutes with pump off. Released pressure, opened Hydril andcirculated with full returns. POOH to pick up bit and make clean out run. W/R to TOF, made wiper trip,

CCM for casingwith full returns.


6/49

Denbury Onnshore, LLC

Mr. Merlin Keown

S/L 18380 #1 BP1Terrebonne Parish, LA

BLOCKADETMand DRILL-SEALTMare trademarks of Drillchem Drilling Solutions, LLC. SWELL CM, E Z SQUEEZE

,and SYN-SEAL

are

trademarks of Turbo-Chem International, Inc.

BLOCKADETM

CASE HISTORY

Problem Interval: 14,641- 16,225 MD/TVD DrillChem Engrs: D. Shank/T. LeBlanc

Last Casing Size: 11 5/8 Mud Vendor: Halliburton/Baroid

Last Casing Depth: 14,641 (window) Mud Wt: 17.3 ppg

Hole Size: 10 5/8 Mud Type: Diesel OBM

Background: At 16,225, while increasing mud weight from 17.0 #/gal to 17.3 #/gal, pump pressurefell abruptly. The annulus was filled with a total of 295 barrels of water before losses stopped. Withoutattempting to spot an LCM pill, the pipe was pulled into the casing and the #3 reserve pit was cleaned in

preparation to mix a BLOCKADEslurry.

Application: Operator suspected that the losses had around the window at 14,641, but requested aminimum 250-barrel slurry to repair other potential loss zones in the wellbore. The bit was pulled to

13,735, leaving 100 barrels of volume between the bit and the window. The slurry was built andweighted to 17.3 #/gal. Rig pump was used to pump the slurry into the drill string. While pumping, a

cut valve allowed 75 barrels of slurry to flow into the active pits. Pumping was halted for approximately

four hours while 140 additional barrels of slurry were built. A total of 258 barrels of slurry weredisplaced into the hole during the initial injection, leaving163 barrels in the open hole and 95 barrels in

the casing. The first pressure increase was detected after eighty-five barrels had been pumped into the

open hole. During the initial injection, maximum pressures were recorded at 920 psi SIDPP and 700 psi

SICP. Following the first one-hour wait, the squeeze sequence was completed in 8 stages withmaximum pressures reaching 875 SIDPP, 760 psi SICP. A total of 35 bbls of slurry were injected

following the initial injection of 163 barrels.

Results: After 8 hours of dewatering, a further integrity test was made to ensure that the shoe and

formation could withstand 900 psi (18.45 #/gal EMW). This test was held for 10 minutes after which

the mud pump was engaged and the hole was circulated with full returns, ramping the pump rate up to 5bbls/min. After a complete system circulation, pumping was halted and preparations were made to

displace to water base mud.

Conclusions: Following the displacement, the casing was washed to the shoe. Bit weight at the

window suggested the presence of a BLOCKADEmatrix plug. Washing and reaming continued into the

open hole, during which time BLOCKADE residue returned over the shakers. At 14,909 a secondBLOCKADEplug was encountered and drilled, again evidenced by slurry solids over the shakers. Thesetwo separated matrix plugs would indicate that at least two zones were successfully squeezed in a single

operation. This case clearly demonstrates the necessity of providing enough slurry to seal multiple thief

zones


7/49

Denbury Onshore, LLC

Mr. Merlin Keown

S/L 18380 #1 BP1Terrebonne Parish, LA

BLOCKADETM

CASE HISTORY

Problem Interval: 14,641- 16,235 MD/TVD DrillChem Engrs: Dale Shank

Last Casing Size: 11 5/8 Mud Vendor: Halliburton/Baroid

Last Casing Depth: 14,641 (window) Mud Wt: 17.7 ppg

Hole Size: 10 5/8 Mud Type: WBM

Background: Following previous squeeze in this interval, the hole had been cleaned out, the OBMsystem had been displaced to WBM, and 10 feet of new hole had been drilled. An underreamer had

been picked up and the 10 5/8 hole was being opened. While reaming at 14,925, the drill string

torqued severely, the well packed off, and complete returns were lost. Returns were regained andmassive amounts of large-sized shale cavings were pumped from the hole each time the underreamerwas run to or past the obstruction. Surveys indicated that the new wellbore was only five feet from the

original, that the wall separating the two holes had collapsed, and that the underreamer was tagging the

fish left in the original hole. In addition to this problem, a slow, steady influx of gas necessitatedweighting the system from 17.5 to 17.7 #/gal. It was during this weight-up that complete loss of returns

occurred.

Application: Two hundred sixty-seven barrels of 17.7 #/gal BLOCKADEslurry were spotted 20 bblsbelow the bit, leaving 80 barrels in the casing, 36 bbls in the open hole between the window and the

problem formation, and 151 bbls injected. After waiting one hour following the initial injection, thehole was tested to 480 psi SICP, the choke was opened, and excess water was circulated out of the

annulus. The choke was closed and the squeeze sequence was completed in eight stages, during which atotal of 215.5 barrels of slurry were injected.

Results: After the 5th

stage, the hole was circulated with full returns as the mud weight was increased to17.7 #/gal, after which, pressure was once again applied and held for 6 hours. Pipe was pulled to lay

down the BHA and underreamer. A bit was picked up and run in the hole. As washing proceeded

between 14,733 and 15,000, large quantities of 25 shale slabs were seen at each bottoms up. Below15,000, there was less evidence of wellbore damage. Wash-down to 16,235 continued at a cautious

pace over three days. Two short trips were made and the mud weight was increased to 17.9 #/gal prior

to pulling out of the hole to run liner. No mud losses occurred during any of these operations.

Conclusions: The collapse of formation between the sidetrack wellbore and original hole presented anunusual dimension to stopping the mud losses. It could not be determined at what depth or in which

wellbore the losses were occurring, but supervisory personnel recognized the need for a large volume ofBLOCKADEslurry to maximize coverage of one or more possible thief zones. It was this volume, in

conjunction with the amount of time the slurry remained in place following the injection sequence thatwas crucial in stopping persistent losses. The degree of wellbore strengthening following the squeeze

was clearly indicated as the hole withstood the subsequent weight-up to 17.9 #/gal and corresponding

ECD levels as high as 18.1 #/gal.


8/49

September 13, 2002

Re: Dynamic Exploration

Graugnard #1 WellLost ciruculation remedy with Blockade LCM Squeeze

This overview outlines the progression of events following our being called to

resolve the lost circulation problems on the above-referenced well. During the course of

our involvement from September 7 13, 2002, two Drillchem engineers worked on a 24hour basis with the Dynamic Exploration drilling foremen, Ambar Lonestar mud

engineers, and Nabors rig crews. All recommendations, application procedures and

related processes were discussed among the drilling foremen (Bobby McLemore and Ken

Bryant), the Drillchem engineers (Mel Melder and Walter Slaughter), and Drillchems

office (Jim Hayes) before actually proceeding with each application.

Lost circulation was encountered while drilling a 9 7/8 hole at 11,502 feet with a14.0 ppg water based mud. Attempts were made to regain circulation with Amseal

(cellulose fiber) and calcium carbonate without success.

We received a call from Bobby McLemore at 6:15 am on September 7, 2002. Our

engineers and products arrived on location midday. A plan-of-atttack was discussed

between Mel Melder and Mr. McLemore. We recommended applying a Blockade pillnear TD and a second pill at the surface casing shoe at 4,507 feet. Permission was given

to proceed accordingly.

The bit had a plugged jet. The mud in the surface pits was thick, heavy, and in bad

need of treatment after being contaminated with CO2 gas. Before mixing the first

Blockade pill, we recommended the surface mud undergo conditioning. The surface mudwas conditioned at the direction of the Ambar/Lonestar mud engineer.

A 100 barrel Blockade pill (#1) was mixed and a net volume of 85 barrels wasspotted in the open hole at 11,003 feet (499 feet off bottom). This was done in order to

leave about 50 barrels of pill in the open hole available to be applied in a hesitation

squeeze method for a loss zone located at TD.

The drill string was then pulled out of the hole to 4,222 feet. A 100 barrel

Blockade pill (#2) was mixed in the slugging pit. While attempting to displace the #2 pilland squeeze it into the formation below the casing shoe, the pill was diluted more than

50% with whole mud from the active mud system through a leaking valve. Partial mud

returns at the flowline were noted. The Hydril was closed and pumping continued in an

effort to conduct a hesitation squeeze. Maximum shut in casing pressure achieved was200 psi with a final SICP of 20 psi. After the Hydril was opened, the mud was circulated

with partial returns.


9/49

The drill string was then pulled out of the hole and the partially-plugged bit waschanged. The pipe was tripped back in the hole to 4,250 feet. A 75 barrel Blockade pill

(#3) was mixed and a net volume of 60 barrels was displaced to the bit. The Hydril was

closed and a hesitation procedure was followed. No shut in casing pressures were noted.

The pill was then over-displaced by 66 barrels with the pills lead at 5,562 feet and thetail at 5,204 feet.

The pipe was then tripped into hole to 11,057 feet. An 84 barrel Blockade pill(#4) was mixed and a net of 69 barrels was displaced down the drill string to the bit. The

Hydril was closed and a hesitation procedure was conducted. This procedure was halted

with 38 barrels of pill #4 left on bottom of the open hole. No shut in casing pressureswere noted.

The drill string was pulled out of the hole very slowly due to swabbing while

pulling the first 16 stands. Once out of the hole, an RTTS was run to the casing shoe and

set. The casing was tested to 1,000 psi successfully. The RTTS was then pulled out of thehole.

The drill string was then tripped in the hole open-ended to 4,468 feet where full

circulation was established. The mud was conditioned while the mud weight was reduced

from 14.0 to 13.8 ppg. The open-ended drilll string was staged in the hole about 10 standsat a time to 11,387 feet, with the mud being conditioned to 13.8 ppg at each stage. The

mud weight was then increased to 14.0 ppg due to gas cut mud.

Full circulationwas maintained throughout the staging and conditioning process,

indicating a successful seal by the Blockade pills.

The mud weight was subsequently increased to 14.2 ppg and drilling was resumed

to 11,572 with no mud losses.


10/49

Energy XXI Corporation

Mr. Mark Magner/ Mr. Bobby Dale

SL 19515 #1 Venus ProspectCameron Parish, LA

BLOCKADE

Application Recap

Problem Depth: 11,592 MD/ 11,286 TVD Hole Size: 12 1/4

Mud Vendor: Halliburton Mud Wt: 11.45 ppg

DrillChem Engineer: Tim LeBlanc Mud Type: Water Base

PROBLEM: Lost circulation after encountering a drilling break at 11,592 feet MD. A total

of 314 barrels of drill water was required to fill annulas (10.5 EMW).

APPLICATION: Mixed 110 barrels of 14.4+ ppg Blockade

TM slurry. Positioned bit at

11,476 feet MD. Displaced 100 barrels (pumpable volume) in balanced plug fashion across

suspected loss zone. Pulled bit to 4,047 feet MD (60 feet above casing shoe). Closed annual

preventer and conducted hesitation squeeze (See graph below).

RESULTS:Obtained a 14.0 ppg EMW squeeze pressure (SIDPP) and held same for 8 hours.

After 8 hours, released pressure and began cutting back mud weight to 10.5 ppg with full

returns. Circulated out water from the annulus, tripped in the hole to bottom, and drilled

ahead with full returns.


11/49

Energy XXI Corporation

Mr. Mark Magner/ Mr. Bobby Dale

SL 19515 #1 Venus ProspectCameron Parish, LA

BLOCKADE

Application Recap

Problem Depth: 12,375 MD/ 12,167 TVD Hole Size: 8-1/2

Mud Vendor: Halliburton Mud Wt: 15.0 ppg

DrillChem Engineer: James Hayes Mud Type: Diesel OBM

PROBLEM: Lost circulation after encountering a drilling break at 12,375 feet MD. A total

of 454 barrels of mud was lost before shutting down pumps. Upon shutting down pumps, the

well flowed back 54 barrels of mud (appeared to be ballooning).

APPLICATION: Mixed 75 barrels of 15.0 ppg BlockadeTM

slurry. Positioned bit at 12,370

feet MD. Displaced 65 barrels (pumpable volume) in balanced plug fashion across suspected

loss zone. Pulled bit to 11,385 feet MD (557 feet above casing shoe). Closed annual preventer

and conducted hesitation squeeze (See graph below).

RESULTS:Obtained a 16.0 ppg EMW squeeze pressure (SIDPP) and held same for 4 hours.

After 4 hours, released pressure and made trip to change out BHA. After picking up new

BHA, washed and reamed to bottom pumping sweeps containing 15 ppb F.I.T.TM

with no

losses.


12/49

Helix ERT

Mr. Robert Lovell/ Mr. Lary Broussard

OCS-G 01023 #E-18Ship Shoal Block 224

Offshore, LA

1

BLOCKADE

CASE HISTORY

Problem Depth: 16,586 MD/ 14,053 TVD Hole Size: 6-1/2

Mud Vendor: Halliburton Mud Wt: 18.5 ppgDrillChem Engineer: Mel Melder Mud Type: Water Base

PROBLEM: Lost circulation after taking a gas kick. Unable to kill well due to loss ofcirculation.

APPLICATION: Mixed a 100 barrel pill with mud containing 25 ppb Blockade and 25 ppb

F.I.T. The pill was then chased with kill weight mud and bull-headed into open hole past

casing shoe. With the F.I.T./Blockade/WBM pill in place, the well was killed while

circulating with partial losses. Operator elected to follow-up with a Blockade squeeze in order

to increase formation integrity.

Mixed 110 bbls of 18.5 ppg BLOCKADE slurry. Pulled bit to 15,253 (1,333 above casing

shoe). Displaced 100 bbls (pumpable volume) of Blockade slurry into drill string, then chasedsame with mud until the Blockade slurry was within 5 bbls of the bit. Stopped pumping and

closed Hydril. Conducted hesitation squeeze (see table and graph below).

Before beginning the squeeze procedure, the slurry was allowed to set in the open hole for 60minutes. Pressures had stabilized to 285 psi SIDPP and 200 psi SICP. The squeeze sequence was

completed in ten stages as follows:

Beginning

PressureDP/CSG

Pump-inVolume

Pump-inRate (bpm)

Maximum

Pump-inPressure DP

Maximum

Pump-inPressure CSG

Waiting Period(minutes)

Bleed-off PressureDP/CSG

285/200 5 0.4 443 240 15 325/250

325/250 2 0.4 508 300 15 345/300345/300 1 0.4 556 320 40 372/310

372/310 1 0.4 566 320 15 391/320

391/320 2 0.5 663 420 15 441/400

441/400 2 0.5 737 500 15 534/490

534/490 1.5 0.5 650 300 60 95/90

95/90 2 0.5 560 120 15 196/130

196/130 1.5 0.25 715 220 15 302/240

302/240 0.75 0.25 788 280 495 371/310


13/49

Helix ERT

Mr. Robert Lovell/ Mr. Lary Broussard

OCS-G 01023 #E-18Ship Shoal Block 224

Offshore, LA

2

Note: All EMW were calculated at the casing shoe. Notice divergence between SIDPP and SICPonce squeeze pressure exceeded 19.2 ppg EMW, indicating opening of a new fracture. Subsequent

squeeze pressure was limited to about 19.0 ppg EMW.

RESULTS: Obtained a 19.0+ ppg EMW squeeze pressure (SIDPP) and held same for 8

hours. After eight hours, washed and reamed as needed to TD. Drilled ahead with returns.


14/49

Hunt Oil Company

OCS-G 31277 #1

West Cameron Block 99Rig: Lester Pettus

Offshore, LA

BLOCKADE

CASE HISTORY

Hole Depth: 14,120 MD (13,036 TVD) Hole Size: 6

Casing Depth: 11,890 MD (11,104 TVD) Casing Size: 7

Mud Vendor: Baroid Mud Wt: 16.5 ppg

DrillChem Engineer: Walter Slaughter Mud Type: Water Base

Problem: After multiple cement squeezes a shoe test of 17.4 ppg EMW was achieved.

Drilling proceeded to 14,120 MD where the well kicked. While weighting up from

16.2 to 16.6 ppg to kill the well, full returns were lost. Four 100 bbl pills containing 40

ppb Steel Seal were mixed and pumped by the mud company without regaining

circulation. A decision was made to pump BlockadeTM

.

Application: A total of 160 bbl of 16.5 ppg BlockadeTM

slurry was mixed, giving 150

bbls of pump-able slurry. The bit was placed at 10,790 MD (40 bbl above the casing

shoe) and all of the 150 bbl of slurry was loaded into the pipe within 2 bbl of the bit.

After closing the annular preventers, began bullheading BlockadeTMslurry at 0.5 bpm

using the BJ cement pumping unit. A total of 98 bbl of slurry had exited the bit before

a maximum squeeze pressure of 650 psi was achieved. The annular preventers were

opened and the remaining 52 bbl of slurry was circulated out with no losses. The

annular preventers were again closed and an additional 3.25 bbl were pumped to

achieve a final squeeze pressure of SICP = 575 psi and SIDPP = 650 psi. Pressure was

held for 8 hours to allow for dewatering.

Results: After the 8 hour wait, SIDDP = 575 psi and SICP 650 psi. The well was

opened up and observed to be static. While washing and reaming to bottom sweepscontaining 20 ppb F.I.T.

TM were pumped. Drilling resumed and the well was

successfully drilled to TD, utilizing a maximum mud weight of 16.9 ppg.


15/49

Hunt Oil Company

Mr. Jerry Gilley

West Cameron 289 #2Offshore, LA

BLOCKADE

CASE HISTORY

Problem Depth: 10,030 MD Hole Size: 8-1/2Mud Vendor: Halliburton Mud Wt: 11.6 ppgDrillChem Engineer: Chuck Duke Mud Type: Water Base

PROBLEM: Operator anticipated not getting a sound shoe test after setting a 9-5/8

drilling liner.

APPLICATION: Mixed a 25 bbl pill containing 25 ppb F.I.T.TM

and 25 ppb

BlockadeTM

and spotted in the open hole and across the shoe. The bit was then pulled up

above the pill and the mud was circulated at full drill strokes for 1 hour. A dynamic shoe

test was then attempted. The test produced an equivalent mud weight of 16.6 ppg, short

of the 17.2 ppg EMW required.

Mixed 40 bbls of 11.6 ppg BlockadeTM

slurry. Spotted pill balanced plug style at the

shoe and pulled bit 150 above top of slurry to 9,363 (667 above casing shoe). Closed

Hydril and conducted hesitation squeeze.

RESULTS: Obtained a 17.2 ppg EMW squeeze pressure (SIDPP) and held same for 8

hours. After eight hours, the shoe was successfully tested to 17.2 ppg EMW.


16/49

Hunt Petroleum Corporation

Lowe #7

Joaquin FieldShelby County, TX

BLOCKADE

CASE HISTORY

Trouble Depth: 6,791 OpenHole: 6 1/8 at 7,219

Mud Vendor: Baroid Mud Wt: 10 ppg

DrillChem Engineers: Barry Broussard Mud Type: Water Base

Problem:Lost circulation while drilling ahead at 7,219. Spotted a 60 bbl

conventional Baroid LCM pill on bottom and filled annulus with water while POOH to7 liner shoe at 5,158' to let hole heal. The decision was made to call Drillchem to

perform a Blockade squeeze.

Application:Mixed and pumped a 105 bbl 10.0 ppg Blockade slurry. The slurry was

loaded into the pipe using rig pumps and chased with mud to within 2 bbls of the bit.

With annulus full, closed hydril and lined up to monitor annular pressures on choke

console while squeezing. Bull-headed 100 bbls (net volume) of Blockade slurry,

obtaining 250 psi SIDPP and 250 psi SICP. Calculated final volumes of slurry = 2 bbls

in casing, 75 bbls in open hole, and 23 bbls injected into formation. After holding shut-

in pressure for 8 hours, SIDPP = 98 psi SICP = 50 psi. Bled pressures off slowly and

opened Hydril. Engaged mud pumps slowly and CCM with full returns. Began staging

in the hole while washing and reaming. At 7,000, circulated with full returns while

increasing F.I.T. system concentration from 2.5 to 5.0 ppb. Washed and reamed from

7,000 pumping a 5 bbl Drillchem LCM sweep every 1,000 strokes. While washing

and reaming to bottom had seepage losses. Once LCM sweep reached theft zone

seepage losses were eliminated. After washing to 7,427, pumps were staged up to

drilling rate and the decision was made to drill ahead pumping 10 bbl sweeps

consisting of 25 ppb F.I.T., 14 ppb Blockade, 5 ppb Drill-Seal (M) every 1,000 strokes.

Result:Drilled ahead while pumping 10 bbls sweeps containing 25 ppb F.I.T., 14 ppb

Blockade, 5 ppb Drill-Seal (M) with full returns throughout interval.


17/49


18/49

Justiss Oil Company

Mr. Harold Heathcock

Odom #1Gum Cove Field

Cameron Parish, LA


Problem Depth: 10,930 MD Hole Size: 8 1/2


DrillChem Engineer: Mel Melder Mud Type: Water Base

Problem: Lost circulation at 10,930 with 15.2 ppg mud. Pumped several BaroidLCM pills. Cut mud weight back to 14.6 ppg. Still unable to circulate.

Application: Mixed and pumped a 100 bbl Blockade slurry through the bit. As

Blockade entered the open hole, returns were evident at bell nipple. Hydril was closed

and Blockade was squeezed to 530 psi casing pressure and held for 4 hours.

Results: After squeeze was held for 4 hours, pressure was bled off and mud was

circulated with full returns. Drill pipe was then staged in hole to TD where the mud

was conditioned and weighted up to 15.0 ppg. Drilling resumed with 15.0 ppg mud

with 90 spm and 2,750 psi pump pressure. Mud weight was gradually increased to16.5 ppg as drilling was resumed to liner depth.


19/49

Justiss Oil Company

Mr. Harold Heathcock

Odom #1Gum Cove Field

Cameron Parish, LA




DrillChem Engineer: Mel Melder Mud Type: Water Base

Problem: Lost Circulation At 11,668 (liner depth) with 16.5 ppg mud. Attempted tostop losses with several Baroid LCM pills without success.

Application: Mixed and pumped a 200 barrel Blockade slurry through the bit. When

Blockade started entering the open, mud returns were evident at bell nipple. Hydrill

was closed, and Blockade was squeezed to 100psi casing pressure and held for four

hours.

Results: After obtaining a squeeze, drill pipe was pulled out of the hole to 6,500 ft,

then staged back in the hole to TD (11,668), conditioning mud and cutting the mud

weight to 16.25 ppg with no mud loss. At 11,668 (TD) with mud well conditioned a200 barrel 18.0 ppg pill was spotted on bottom to control gas - no mud losses. Drill

pipe was then pulled out of the hole with no problems and no mud losses. Logs were

run with no problems. The 200 barrels of 18.0 ppg pill was then circulated out and the

liner was cemented in place with 17.0 ppg cement without any mud losses.


20/49

KCS Resources

Mr. Gary Arnold

J.W. Hanson GU #6Joaquin Field

Shelby County, TX

BLOCKADE

CASE HISTORY

Problem Depth: 4,900 5,100 MD Hole Size: 8 1/2Mud Vendor: Energy Fluids Mud Wt: 10.2 ppgDrillChem Engineer: Mel Melder Mud Type: Water Base

Problems Encountered:prior wells drilled resulted in massive mud losses in the Jittersand at + 4,900 MD and also the Gloyde sand at + 5,100 MD. These sands weredrilled with no returns (resulting in stuck pipe in some cases) and a liner was run inorder to weight up mud for higher pressures down hole.

Goal:To eliminate the cost of running a liner (+$150,000.00).

Action:Drill the Jetter & the Gloyde sands with water, while sweeping the hole withDrillchem LCM pills to assure good hole cleaning and to prevent differential stickingof the drill string. Ounce through the sands, seal off both sands with BLOCKADE and

drill to TD with 10.2 #/gal mud.

Results: Drilled through both sands with water. Lost all returns at 5,059. Regaincirculation by pumping Drillchem LCM sweeps. Drilled to 5,094 MD (with partiallosses). Build, pump & squeeze 75 barrels BLOCKADE at loss zone. Drill to TD(8.680 MD) pumping 5 barrels Drillchem LCM pills every connection with no furthermud losses. Log well, run 4.5 production liner to bottom and cement same with fullreturns.


21/49

Louisiana Gas Development Corporation

Full Sail #1

Halletsville FieldLavaca County, TX

BLOCKADE

CASE HISTORY

Problem Depth: 11,329 MD/TVD DrillChem Engs: Melder

Mud Vendor: Newpark Mud Wt: 14.4 ppg

Hole Size: 8 Mud Type: WBM

Background: After overcoming lost circulation at 10,335 and 10,433, partial returns were

again lost while drilling at 11,329. The annulus was filled with 100 bbls of water and a sequence

of attempts were made over a two-day period to regain circulation with spots and sweeps usingconventional LCM as well as DrillChems F.I.T and DRILL-SEAL(M). Operators personnel

were initially resistant to a proposed BLOCKADE squeeze, but after DrillChem offered a

conditional guarantee of performance, agreed to proceed with the recommendation.

Application: While the loss zone was thought to be on or near bottom, DrillChemrecommended that the squeeze be performed with a split slurry to cover any weak formations in

the upper hole interval as well as at the bottom of the hole. Two hundred total bbls of 14.4 #/galslurry were mixed. Sixty-five bbls were spotted on bottom, the pipe was pulled into the liner, and

the remaining 135 bbls were displaced to just below the bit. The squeeze was performed in the

traditional manner and completed in six stages with maximum injection pressures reaching 580

psi SIDPP and 600 psi SICP.

Results:After the 6th

stage, the injection sequence was suspended for 12 hours. During that time,pressures bled to 165 psi SIDPP and 190 psi SICP as the slurry de-watered. At the end of the 12-

hour period, the integrity of the de-watered BLOCKADEmatrix was confirmed by injecting a

further 2.5 bbls with maximum pressures of 640 psi SIDPP and 680 psi SICP.

While washing back to bottom following the squeeze operation, the bit took 50K lbs of weight

when theBLOCKADEmatrix was tagged at 10,402, in the area of previous losses, nearly 900

above bottom. The remainder of the hole was washed with no obstructions or mud loss. Thehole was logged and casing was run with no mud losses.

Conclusions: This squeeze was successful on several fronts. As expected, and in this caseguaranteed, BLOCKADEdemonstrated its superiority as a solution to persistent mud losses. In

addition, the thief zone in this case was not on bottom as suspected, but approximately half way

between the shoe and TD.DrillChems recommendation that the 200-bbl slurry be spotted as asplit pill ensured that a thief zone at any depth in the open hole could be squeezed while keeping

the shoe protected with slurry.


22/49

LLOG Explration Company

OCS-G 31435 #1

Main Pass Block #107Offshore, LA

BLOCKADE

CASE HISTORY

Problem Depth: 13,332 MD/ 12,700 TVD Hole Size:9.5

Mud Vendor: Newpark Mud Wt: 17.2 ppg

DrillChem Engineer: Mel Melder Mud Type: Oil Base

Shoe Depth: 10,635 MD/ 10,498 TVD Casing Size:9-5/8

PROBLEM: Lost circulation while weighting up from 17.2 ppg to 17.3 ppg to kill

background gas. Well began to kick upon losing returns.

APPLICATION: After killing the well the bit was pulled up into the liner shoe in

preparation of pumping a BlockadeTM

squeeze. Mixed 174 barrels of 17.2 ppg BlockadeTM

slurry. Displaced 153 barrels (pumpable volume) of BlockadeTM

slurry into drill string, then

chased same with mud until the BlockadeTM

slurry was within 3 barrels of the bit. Stopped

pumping and closed hydril. Conducted hesitation squeeze, pumping a total of 85.75 barrels to

obtain the desired squeeze pressure of 350 psi on drill pipe. Pressure was held for 8 hours,

having to pump an additional 7.75 barrels to maintain 350 psi on drill pipe. Pressure was bled

off and circulation was established with full returns. Wash and ream to 13,320 MD and lost

returns. Spotted a 50 barrels pill containing 25 ppb F.I.T.TM

and 25 ppb BlockadeTM

on bottom

and pulled up into the liner shoe.Mixed 174 barrels of 17.0 ppg Blockade

TMslurry. Displaced 153 barrels (pumpable volume)

of BlockadeTM

slurry into drill string, then chased same with mud until the BlockadeTM

slurry

was within 6 barrels of the bit. Stopped pumping, closed hydril, and began bull heading

slurry. Prior to slurry exiting the bit, drill pipe pressure reached 2,200 psi and casing pressure

built to 440 psi, exceeding maximum allowable squeeze pressure. Pressure was bled off and

the slurry was circulated out of the hole with full returns. Wash and ream to 13,200 MD with

no losses. Mixed 87 barrels of 17.0 ppg BlockadeTM

slurry. Spotted 77 barrels (pumpable

volume) out of drill string and pulled out of hole 11 stands to 12,191 MD. Circulated on top

of pill with full returns. Wash and ream to 13,075 MD and started having seepage losses.

Mixed 87 barrels of 17.0 ppg BlockadeTM

slurry. Pull up to 12,957 MD and circulated pillout of drill string with choke closed 50%, forcing 32 barrels of slurry down hole. Pulled bit to

11,816 MD and circulated on top of slurry for 6 hours with full returns. Wash and ream to

13,200 MD and started having seepage losses. Mixed and spotted 30 barrel pill containing 25

ppb F.I.T.TM

and 25 ppb BlockadeTM

in open hole. After observing the hole to be static, a

decision was made to pull out of the hole to log the well.

Result:The hole was logged and casing run successfully.


23/49

ORX Resources

White Castle Lumber & Shingle #1

White Castle FieldIberville Parish, LA

Prepared by Dale Shank

ORX RESOURCESWhite Castle Lumber & Shingle #1

White Castle Field

Iberville Parish, LA

PARAMETERS:

Hole Depth: 13,540 MD/ 13,360 TVD

Open Hole Size: 6 , 680 length

Casing

11 x 10.682 Casing @: 11,140 MD

9 5/8 x 8.563 Liner @: 11,720 MD7 5/8 x 6.625 Liner @: 12,860 MD / 12,711 TVD

Drill String Tapered string, MWD, Mud Motor, 5 3 (BLOCKADE squeeze conducted with slick string)

5 x 4.276 DP: (7,969)3 x 2.7 DP: (2,852)

3 x 2.25 HW: (917)

Last Shoe Test: 17.8 #/gal EMW

Hole Deviation: 17.7Mud Type: 17.5 #/gal WBM

Mud Vendor: Halliburton

BLOCKADE SQUEEZE RECAP

A 27-bbl mud loss occurred while circulating bottoms up at 13,540 prior to tripping for a

new bit. The hole stayed full with the pumps off, but attempts to circulate failed. The bit was

pulled to the top of the 7 5/8 liner but circulation was not possible from there. The pipe wasslugged with partial returns and pulled. The last 70 feet of the BHA were balled with gumbo. A

new bit, mud motor, and MWD tool were run back in the hole. Circulation was successful at

6,746, 11,140, 11,720, and 12,190. Eighteen singles were laid down and pipe run to 12,931.

The hole was circulated with full returns while a DrillChem sweep was built consisting of 19

#/bbl F.I.T. and 7 #/bbl of BLOCKADE. Higher concentrations were not possible due to the

inability of the hopper to take more product. Washing and reaming began with no losses and

proceeded to 13,100, pumping 5-bbl sweeps each connection. At that depth, the hole broke

down resulting in the complete loss of returns. To avoid losing additional mud volume


24/49

ORX Resources




attempting to spot a pill on bottom, pipe was pulled, 12,910and 11,126, but circulation was not

possible at either point. The MWD tool, mud motor, and collars were laid down and the drill

string was run back in the hole slick to 11,804, from where the BLOCKADE squeeze would beconducted.

A 92-bbl, 17.5 #/bbl BLOCKADE slurry was built and pumped using BJ mixing and

pumping units. The tail of the slurry was displaced to 5 bbls below the bit, having injected 19

barrels in excess of hole volume at that point. The initial injection was begun at 1.0 BPM. A

check-up was seen with 10.5 bbls of slurry in the open hole when the pressure increased from 640

to 730 psi in less than one minute. Pressure climbed quickly to 750 psi and the pump rate was

reduced to 0.75 BPM. The 750 psi pressure reading represented the highest pressure seen during

the injection. Once the slurry cleared the bit by five barrels, pumping was halted for two hours.

Pressure had dropped to 430 psi when pumping was stopped, and dropped to 165 psi one minute

later. A total of 21 barrels in excess of open hole volume were injected into the formation during

the initial injection. At the end of two hours, drill pipe pressure had climbed back to 306 psi. Thesqueeze sequence was begun at that point and completed in 6 stages as shown in the chart below.

Ten and one-half barrels of slurry remained in the liner. It is noted that on every stage, SIDP at

the end of the wait was greater than the pump off pressure at the beginning.

Stage #BeginningPressureDP/CSG

Pump-inVolume

Pump-inRate (bpm)

MaximumPump-in

Pressure DP

MaximumPump-inPressure

CSG

WaitingPeriod

(minutes)

Bleed-offPressure DP/CSG

1

Initial

Inject

306/0 5.0 0.5 700 40 120 235/40

2 345/50 5.0 0.35 905 40 60 245/40

3 341/50 5.0 0.25 916 50 120 275/504 381/50 5.0 0.28 985 60 60 350/60

5 378/60 5.0 0.25 893 75 480 450/75

Open Hydril after 8 hours, circulate/condition mud 5 hours, applying ECD to slurry. Performed FITwith BJ,

6 442/125 2.25 .25 422 422 10 390/390

After waiting eight hours, pressure was bled off and the Hydril was opened. The mud

system was circulated and conditioned at 65 SPM with full returns for 6 hours. BJ was lined up

and an FIT test was performed. Pressure was brought to 400 psi with one barrel of mud,

and held at 390 psi (18.1 #/gal EMW) for 10 minutes.


25/49

ORX Resources




Graphic depiction of squeeze job on following page.

ORX Resources


Blockade Squeeze #1 (April 21-22, 2007)

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300

Minutes

PSI

PSI Standpipe

PSI Casing

Discontinue injection. Open Hydril to circulate after 8

hours. BLOCKADE remained undisturb ed for 13.5

hours, after which FIT test was applied t o 392 psi (DP

& ANN) for 10 minutes.

Initial injection

Six stands of pipe were run in the hole to the estimated top of the BLOCKADE

slurry in the liner. The liner was cleaned out and after the second connection in the open

hole, 5-barrel sweeps of 25 #/bbl F.I.T. were pumped per joint reamed. The hole waswashed and reamed with no problems to 13,540. After circulating bottoms up, pipe was

pulled to pick up the drilling assembly (mud motor, two 4 steel collars, no MWD

tool).

Pipe was tripped back in the hole to the top of the 7 5/8 liner to break circulation.A 90-bbl LCM pill consisting of 25 #/bbl F.I.T. and vendors fiber and graphite was built. On the

second connection in open hole, 20 bbls of this sweep were pumped. Five-barrel sweeps werepumped each connection as drilling proceeded at 25-30 ft/hr.

Drilling progressed with no problems and no losses. Penetration rate was controlled at an

average of 20 ft/hr with very little weight (0 5Klbs) on bit. At 13,931 the bit was short tripped

to the top of the 7 5/8 liner, where the brake was serviced while circulating six hours. Drilling

resumed to 13,965, where five feet of very hard formation was encountered. After drilling

through this stringer, the hole began taking mud. A 10-barrel pill was pumped and as the LCM

exited the bit, losses stopped. Further drilling was attempted, but with the bit on bottom, losses

continued. An attempt to spot 30 barrels on bottom failed when a valve between the slugging pit

and active pits was left open. The LCM pill was rebuilt consisting of 10 #/bbl DRILL-SEAL


26/49

ORX Resources




(M), 10 #/bbl F.I.T., 12 #/bbl Steel Seal, 6 #/bbl BaroFibre. Drilling continued to 13,969 with

losses. Thirty barrels of the pill were pumped and as the LCM was being pumped out of the bit,

four feet of hole were drilled in five minutes without losses. With the 30-bbl pill in plae,preparations were made to wet trip to the 7 5/8 shoe. As the first two stands were pulled, the

hole gave back 15 bbls. With the two stands out of the hole, bottoms up was circulated with full

returns, producing 260 maximum units of gas and mud cut to 16.6 #/gal. The gas levels rose and

fell during most of a day and mud weight at the flowline remained cut.

While circulating gas-cut mud, a 100-bbl LCM pill was built consisting of 21 #/bbl

F.I.T., 16 #/bbl DRILL-SEAL (M), 5 #/bbl BaroFibre, and 26 #/bbl Steel Seal. Since no volume

increase was seen on surface, ballooning shale was not suspected. After circulating nearly 12

hours, gas dropped 13 units and the two stands of pipe were run to bottom. Bottoms up was

circulated from 13,988 with maximum gas of 202 units and mud cut to 16.6 #/gal. When gas

again dropped to 13 units, a connection was made and a sequence of 8 bbls of sweep/27 bbls of

mud was pumped repeatedly until the first sweep was 27 bbls above the bit. At that point, the bitwas run to bottom and drilling began. The first foot or two drilled fairly quickly, but then the bit

drilled into a hard 10-foot stringer that required 18-20Klbs to cut. After drilling through the

stringer, the ROP increased to as high as 50 ft/hr and the kelly was drilled down at 14,012. A

total of nine 8-bbl sweeps were pumped and less than 20 bbls of volume were lost while drilling

the single joint down over a period of 94 minutes and 4,000 strokes. Bottoms up from 14,012

produced 114 units of gas and mud cut to 17.1 #/gal.

A second 100-bbl pill was built consisting of 12.5 #/bbl F.I.T., 6 #/bbl Steel Seal, 3 #/bbl

BaroFibre, and 3 #/bbl DRILL-SEAL (M). The same 8 bbls of sweep/27 bbls of mud pumping

procedure as before was used to drill another joint down, this time with no mud losses. Two feet

of fill were encountered as the bit was lowered to begin drilling. Bit weights of up to 20Klbs

indicated two hard stringers between 14,012 and 14,043.

The slugging pit was refilled with 100 bbls of mud and the same four components were

used to mix another sweep pill, 12.5 #/bbl F.I.T., 12.5 #/bbl DRILL-SEAL (M), 6.6 #/bbl Steel

Seal, and 5.5 #/bbl BaroFibre (M). A connection was made and 8 barrels of the sweep were

picked up, followed by 100 bbls of mud. This was repeated 3 times as the single was drilled to

14,075. No mud losses were seen and while circulating bottoms up, 65 units of gas and a mud

cut of 17.1 #/gal were recorded. Pipe was pulled wet to the top of the 7 5/8 liner where bottoms

up was once again circulated. After gas fell below 20 units, pipe was run back to bottom with no

problems, and the remaining sweep volume was pumped surface to surface to empty the slugging

pit. Maximum gas from the short trip was 250 units with mud cut to 17.1 #/gal. Once mud

weight returned to 17.5 #/gal, pipe was pulled to log.

One logging run was made with no evidence of hole problems. The mud motor was laid

down, and pipe was run back in the hole. At 8,600 the hole stopped giving back mud. Pipe was

run further to 9,550, and pumps were brought up slowly, finally yielding returns. Mud weight in

the pits was 17.7 #/gal and returns were also over a point heavy, so a full circulation was made to

trim the weight back before proceeding in the hole. Mud was circulated and conditioned at the

top of the 9 5/8 liner, the top of the 7 5/8 liner, and at the shoe. Heavy mud was seen at each of

these stages, as high as 17.9 #/gal.


27/49

ORX Resources




Before entering the open hole, 90 barrels of sweep volume were built consisting of 14

#/bbl F.I.T., 10 #/bbl DRILL-SEAL (M), 5.5 #/bbl BaroFibre, and 8 #/bbl Steel Seal. Twenty-

five barrels of sweep were pumped into the drill pipe and displaced to within 25 barrels of the bit.Seven stands of pipe were then run in the hole, half way to bottom. Pumps were brought on line

slowly and the sweep was circulated up the hole into the 11 casing. A second 25-bbl pill was

pumped and again displaced to within 25 barrels of the bit. The remaining 6 stands were run to

tag bottom. One joint was laid down, and the hole was circulated surface to surface. Maximum

gas was 250 units. No losses occurred during the entire circulation. A 10-bbl sweep was pumped

and drilling began, controlled at 15-20 ft/hr.

At approximately 14,100 the mud weight was increased to 17.6 #/gal. Drilling

progressed to 14,375, the hole was circulated clean, and an 84-bbl pill was spotted in the open

hole and up into the 7 5/8 liner. Pipe was pulled in preparation to spot cement plug at shoe and

run a 7 5/8 tie-back string.

DrillChem engineer released April 30, 2007. The costs of materials, engineering, and

incidentals provided byDRILLCHEMfor ORX Resources, White Castle Lumber & Shingle #1,

are as follows:

PRODUCT/SERVICE UNIT WT UNIT PRICE DELIVERED USED COSTBLOCKADE 25# sx 70.00 700 261 18,270.00

F.I.T 25# sx 35.00 1200 1000 35,000.00

DRILL-SEAL (M) 25# sx 35.00 432 288 10,080.00

DEFOAMER 5 gal 165.00 6 2 330.00

Pallets 20.00 25 18 360.00

Shrink Wraps (double-wrap) 20.00 50 42 840.00

Engineer ea 800.00 12 9,600.00*

Per Diem ea 35.00 12 420.00*

Mileage per mile 1.50 188 282.00*

Freight 669.60*8% TAX 5,190.40

TOTAL $ 81,042.00

* Non-taxable items

DrillChem returned to the rig on May 12, thirteen days later. Tie-back operations had

been completed and the rig was in the process of drilling 947 of cement plug from 11,808 to

12,755. While washing below the plug at 12,813, the hole began taking mud. The pump rate

was reduced, but losses continued. Two more stands were run, placing the bit at 12,964.

Circulation was attempted there but failed to produce returns. The decision was made to perform

a second BLOCKADE squeeze, and pipe was immediately pulled to 11,923. The hole remained

static while waiting on BJ mixing and pumping equipment.


28/49

ORX Resources




BLOCKADE SQUEEZE #2

PARAMETERS:

Hole Depth: 14,375 MD/ 14,156 TVD

Open Hole Size: 6 , 1,515 length

Casing

11 x 10.682 Casing @: 11,140 MD (behind tie-back)

9 5/8 x 8.563 Liner @: 11,720 MD (behind tie-back)7 5/8 x 6.625 Liner @: 12,860 MD / 12,711 TVD

Drill String D.P. 3.5 x 2.764HWT 3.5 x 2.25 (870)

D.C. 4.5 x 2.25 (92)

Last Shoe Test: 18.1 #/gal EMW

Hole Deviation: 17.7 (at 7 5/8 shoe)

Mud Type: 17.6 #/gal WBM

Mud Vendor: Halliburton

The BJ mixing unit and pump truck were rigged up and the first two 50-bblbatches of BLOCKADE slurry were mixed and weighted to 17.7 #/gal. Thirty barrels of

slurry were pumped into the drill string to make room in the mixing tank for the final 30

bbls of slurry to be built. The thirty barrels in the pipe were static for three hours with nosettling or other negative effects.

A safety meeting was held on the rig floor, and the slurry was pumped to within

five bbls of the bit. Very little returns were seen while pumping. The Hydril was closedand pumping continued at 2 BPM until the lead of the slurry was at the shoe. The pump

rate was reduced to 1.0 BPM until the tail of the slurry was 10 bbls out of the bit. At that

point 38 bbls of slurry in excess of hole volume had been injected into the formation.Total slurry pumped was 130 bbls of 132 built. The pump was shut down for two hours

and twenty minutes. Pump-off pressures were 372 psi DP, 230 psi CSG. After the one-

hour wait, the injection sequence resumed and was completed in four additional stages asshown in the chart and graph on the following page. As seen on each injection, as the

pump was started, pressure spiked sharply to break circulation, then fell back to much

lower levels as slurry was injected. On the third, fourth, and fifth injections, pressuresquickly climbed back to critical levels following the initial spike. Only 2.75 bbls of

slurry were injected during the final three stages.


29/49

ORX Resources




Stage #BeginningPressure

DP/CSG

Pump-inVolume

Pump-inRate (bpm)

MaximumPump-in

Pressure DP

MaximumPump-inPressure

CSG

WaitingPeriod

(minutes)

Bleed-offPressure DP/CSG

1

Initial

Inject

0/0 38.0 1.0 575 250 150 362/100

2 362/100 7.0 0.5 570 275 60 275/100

3 275/100 5.0 0.5 660 350 120 295/100

4 295/100 2.0 0.3 990 550 60 490/345

5 490/345 0.75 0.3 940 575 30 590/450

6 590/450 0.25 0.3 980 625 540 425/250

ORX Resources


Iberville Parish, LABLOCKADE Squeeze Sequence #2 (May 15, 2007)

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

0 100 200 300 400 500 600 700 800 900 1000 1100

Minutes

PSI

PSI Standpipe

PSI Casing

Complete initial

injection, pumps

off

Final injection, pumps off to

allow de-watering for 8 hours

The well remained closed in for nine hours, during which time pressure dropped

from 780 psi to 425 psi DP and from 650 psi to 250 psi CSG as the slurry went throughthe de-watering process. Following the nine-hour wait, the Hydril was opened and seven

stands of pipe were run in the hole to 12,624, where the mud system was circulated andconditioned. Prior to running into the open hole to wash and ream through the

BLOCKADE slurry, a 90-bbl sweep pill was built consisting of 27.8 #/bbl F.I.T., 5.5

#/bbl BLOCKADE, and a nominal (1.4 #/bbl) concentration of DRILL-SEAL (M).


30/49

ORX Resources




After circulating the entire system, pipe was run in the hole to 12,970 and

bottoms up was circulated prior to washing and reaming. Wash-down proceeded at avery deliberate, slow pace, as 5-barrel sweeps were pumped each joint. The bit tooksmall amounts of weight at various points through the open hole, but nothing significant

enough to define a bridge of de-watered slurry.

While washing at bit depth of 13,783, the hole suddenly took 25 bbls of volume.

A brief attempt to regain circulation was made, but failed, and the bit was pulled into the

casing. The decision was made to conduct a third BLOCKADE squeeze, this timepumping 150 barrels of slurry and leaving 10 bbls inside the casing. Instead of

performing hesitation squeezes, the slurry would be left undisturbed for 24 hours.

The BJ blending unit consisted of two 50-barrel canisters with screw mixers. Thefirst 50 barrels were mixed and weighted to 17.7 #/gal. The second batch was in the

process of being weighted up when the transmission housing cracked and hydraulic fluid

began leaking badly, putting the unit out of commission. Without the mixing unit, thefirst 50 barrels were pumped into the drill pipe and displaced to within five barrels of the

bit. No returns were seen during the displacement. The Hydril was closed and 45 bbls of

the slurry were bullheaded into the open hole, leaving 10 bbls inside the casing. Afterfour hours, pressures had risen to 265 psi DP, and 100 psi CSG.

A second mixing unit (single 50-bbl tank) arrived on location five hours later, and

mixing immediately continued. The first batch was pumped into the drillstring with the

Hydril open and with full returns. The third batch was mixed, weighted, and displaced tofive barrels above the bit. The Hydril was closed and bullheading continued until five

barrels of slurry were left in the casing. At total of 157 bbls of slurry were pumped andsomewhere between 33 and 57 barrels were injected into the formation, precise depth(s)

unknown.

The slurry was allowed to sit 12 hours undisturbed, during which time pressure on

the CSG bled to zero. The Hydril was opened and the hole was circulated as mud weight

was reduced from 17.7 #/gal to 7.5 #/gal. After 10 hours of circulating, four stands

were run to 90 above the shoe. Bottoms up was pumped, and wash-down began.

The hole was washed with full returns to 13,250, 390 below the shoe, wherereturns stopped. The drill pipe went dry and the mud column fell on the backside. Thebit was pulled to 12,266 and the annulus was filled with 7 barrels of water.

A 90-bbl pill consisting of 27.5 #/bbl F.I.T., 33 #/bbl Steel Seal, 12 #/bbl DRILL-

SEAL (M), and 27.5 #/bbl Barofibre was mixed. Pipe was run back to the point of loss at

13,250 and 60 bbls of the pill were spotted, 55 bbls in annulus, 5 in pipe. While spottingthe pill, one joint was reamed with bit weight of 8-10K between 13,257 and 13,287, a

likely indicator of de-watered BLOCKADE matrix at that depth. Approximately 20 bbls


31/49

ORX Resources




of mud were lost initially, but before the pill reached the bit, the hole was circulating withfull returns. Pipe was pulled to 12,058 and the mud weight was cut from 17.5 to 17.3

#/gal.

With 17.3 #/gal around, pipe was run back to the shoe, and singles were picked up

as washing and reaming continued into the open hole. The hole was reamed with

occasional insignificant bobbles on the weight indicator, however at 13,287 bit weightagain increased back to the 8-10K range and remained there with few exceptions to

13,558, where it fell off to 2-4K. The remainder of the open hole was washed and

reamed with no problems and no mud losses to original TD at 14,375. After circulatingbottoms up, a short trip was made to 12,579. Excess pipe was laid down before running

back in the hole to bottom. During the short trip, no drag, swabbing, or other problems

were encountered.

Drilling resumed at a controlled rate of 9 ft/hr. One hundred barrels of sweep

volume were built, composed of 25 #/bbl F.I.T., 7.5 #/bbl DRILL-SEAL (M), 25 #/bbl

Steel Seal, 7.5 #/bbl Barofibre (C), and 15 #/bbl Barocarb. Ten barrels of this sweepwere pumped at the first connection below 14,375, and 5 bbls per connection below that.

Drilling proceeded to 14,444, where the bit suddenly torqued up. Bottoms up was

circulated and the bit was pulled. The trip out of the hole was problem-free. The bit wasexamined and found to be in relatively good shape, which indicated that the torque at

14,444 likely occurred as a result of formation change.

A new bit was run back in the hole. Pumps were turned on for 30 minutes at two

stands above the shoe before continuing in the hole. With the bit one joint off bottom,pumps were ramped up slowly to 30 SPM. Ninety barrels of high-concentration sweep

volume was built, consisting of 30 #/bbl F.I.T., 12 #/bbl DRILL-SEAL (M), and 6.5 #/bblBLOCKADE. Just as the pill was being finished, the hole began taking fluid. Eighty

barrels of pill were spotted on bottom with 13 bbls still in the pipe. Pipe was pulled to

12,976, where over three stands, the hole swabbed. The kelly was picked up and twentybarrels were pumped with apparently full returns to clear whatever was obstructing the

annulus. The bit was then pulled into the casing to 12,514 and the hole was circulated

for approximately 6 hours with full returns. A second heavy-concentration 90-bbl LCM

pill was built consisting of 27.7 #/bbl F.I.T., 27.7 #/bbl Steel Seal, 4.5 #/bbl DRILL-SEAL (M), and 1.4 #/bbl BLOCKADE. This pill was built on top of approximately 15

bbls of the earlier pill, and the hopper choked on the higher cumulative viscosity.

The bit was run to the shoe and circulation was broken with 250 bbls pumped.

Twenty barrels of the LCM pill were pumped into the drill string, followed by 50 bbls ofmud to place the pill 20 bbls from the bit. While chasing the pill, gas at the flowline

began to rise rapidly, preventing shut-down of the pump. Gas climbed to a maximum of

474 units, producing a mud cut of 15.7 #/gal. By the time gas fell low enough to runfurther in the hole, the pill had been pumped around. A second 20-bbl pill was pumped

into the pipe and six stands were run in the hole to 13,405. Circulation was begun at that


32/49

ORX Resources




point with full returns, but prior to reaching bottoms up, gas again increased rapidly andflow-out increased. The well was observed to be flowing and was put on choke. The gas

buster was plugged with barite and had to be cleaned before circulation could continue.Maximum gas reached 860 units and gas was cut to 14.9 #/gal. While some mud was lost,especially while cleaning out the gas buster, the formation did not take a large amount.

The well was opened and circulated as gas began to drop. Gas fell to the 130 range and

held for nearly an hour, then to 50 units. At that point, a steady 80-bbl gain in volumeagain made it necessary to shut the well in, this time with 375 psi on CSG.

The well stayed on choke for most of the day. At one point, as gas fell to under100 units, the Hydril was opened with the intention of running two more stands in the

hole. The well flowed at 40% with the pump off and was immediately closed. Maximum

gas seen reached 1148 units with mud cut from 17.3 to 13.5 #/gal. While on choke, back

pressure caused steady mud losses with nearly 300 bbls of volume lost as circulationcontinued. The slugging pit was kept full of sweep volume of varying concentrations of

LCM products, and 20-bbl sweeps were pumped at scheduled intervals.

Gas was brought under control and 19 singles were run in the hole to 13,960.

After circulating gas out and observing well in static condition, 5 stands were run and

tagged bottom. Without circulating, pipe was pulled slowly out of the hole with noswabbing.

DrillChem engineer was released from rig on May 23.


33/49

Petrohawk Energy

Mr. Gary Arnold

Albritton Cattle #1Bull Bayou Field

Red River Parish, LA

BLOCKADE

CASE HISTORY

Problem Depth: 10,287 MD (7 Casing Shoe) Hole Size: 6-1/8

Mud Vendor: Acacia Mud Wt: 13.2 ppg

DrillChem Engineer: Mel Melder Mud Type: Oil Base

Problem: While drilling, took a gas kick and lost circulation. After two weeks ofattempting to cure losses with mud company LCM, a decision was made to call

Drillchem to perform a Blockade squeeze. Upon arriving on location an attempt was

being made to circulate out gas at the 7 casing shoe while losing 60 bbl per hour of

mud.

Application: The bit was positioned at 9,287 (1,000 above the 7 casing shoe) while

building a Blockade slurry. 100 barrels of 16.2 ppg water based Blockade slurry was

mixed and pumped to within 5 bbls of the bit. The annular preventers were closed and

the slurry was bullheaded with 47 bbl of 16.2 ppg oil base mud to allow tail end of

slurry to be 2 bbls below the bit, 37 bbls in casing and 63 bbls in formation (assuming

losses at shoe). Waited 1 hr and pumped a total of bbl to build SIDPP= 200 psi and

SICP= 200 psi (giving an EMW of 16.6 ppg, equaling 0.1 ppg greater than the original

shoe test). Pressure was held for 8 hrs to allow the Blockade slurry to dewater and

harden.

Results: After the 8 hour wait the well was opened and circulation was established

with full returns. After washing and reaming to bottom drilling was resumed with no

further losses were experienced to TD.


34/49

SOUTHERN BAY ENERGYJ.F. Welder #7-SB

Odem FieldSan Patricio County, Texas

JOB RECAP

After setting 9 5/8 surface casing at 1,526, the shoe and formation were tested and drilling began inthe 8 intermediate interval. DrillChem engineer arrived on location November 20, 2006 as drilling was inprogress at approximately 5,000. With the aim of preventing lost circulation in the Massive Frio Sandsbetween 5,700 and 6,400, DrillChems proposal called for a 10-ppb system treatment of F.I.T., supplementedwith 5-barrel sweeps of 25 ppb F.I.T./25 ppb DRILL-SEAL (M) which were to be pumped once per connection,beginning at 5,700 and continuing through 7,500 or interval TD.

As recommended, shakers were dressed with 84-mesh screens and the system treatment was begun at5,500. The system mud weight at that point was 9.6 ppg. Three hundred seventy-five sacks of F.I.T. were

added to the 930-barrel system over approximately two circulations. Fifty-five barrels of sweep volume werebuilt in the slugging pit and the recommended sweep schedule was begun at 5,699.

At about 6,100, penetration rate slowed significantly to below 9 ft/hr. Drilling continued at this rate to6,124, where the decision was made to pull the PDC bit. Thirty-four barrels of sweep volume were pumpeddownhole to empty the slugging pit. The bit was badly damaged, with10 discs missing and deep circulargrooving on the face.

While running in the hole with the new bit, the hole stopped giving back displacement returns atapproximately 5,750. The remaining pipe was run to bottom at a slower running speed, but with no returns.With the bit on bottom, the pipe was rotated and reciprocated slowly prior to turning the pump on. The drillstring was filled and the hole began to circulate. Pumps were staged up to drilling speed and the hole was

circulated. A high of 840 units of gas were recorded at bottoms up and the mud weight was cut from 9.8 to 8.4ppg.

As drilling proceeded, 40 barrels of sweep volume were rebuilt in the slugging pit and the sweepschedule was continued. At 6,855, the mud was weighted up from 9.8 to 10.2 ppg. Sweep volume wasweighted up to 10.5 ppg in anticipation of further weight increase of the system. At 7,300, the mud weight wasincreased to 10.8 ppg and that density was maintained to interval TD of 7,525.

After reaching 7,525, 35 barrels of remaining sweep volume were pumped downhole and a 25-standshort trip was made with no problems out or in. The hole was circulated clean and pipe was pulled. At thatpoint, the DrillChem engineer was released. The hole was logged and 7 casing was run to 7,525 with noproblems. No mud losses were recorded while running or cementing the casing string.

The mud system was weighted up to 13.0 ppg prior to testing the 7 casing shoe and formation to 16.3ppg EMW. Following the test, the system was further weighted to 14.3 ppg EMW. While drilling at 7,652,returns were lost in the upper Vicksburg Sand. The fluid column dropped approximately 20 feet to just belowthe wear bushing. A 35-barrel spot was mixed consisting of 25 ppb F.I.T. and 25 ppb DRILL-SEAL (M).Fifteen barrels of this pill were spotted on bottom and six stands of pipe were pulled to place the bit above thetop of the pill. The hole was circulated for one-half hour, after which the Hydril was closed and a soft squeezewas applied. Numerous attempts were made to achieve and hold 200 psi on the formation, but pressure


35/49

repeatedly fell to approximately 100 psi. The Hydril was opened and circulation was attempted, but could notbe established. The bit was run back to bottom and the remaining 19 barrels of F.I.T./DRILL-SEAL (M) pillwere spotted. The bit was again pulled into casing and the mud weight was reduced to 13.8 ppg. Forty barrelsof 16 ppb F.I.T./16 ppb BLOCKADE pill were built (the rig hopper would not take more). With the entiresystem replenished with liquid mud and the weight at 13.8 ppg, the bit was run back to bottom. A five-barrel

sweep of the F.I.T./BLOCKADE pill was pumped half-way down the pipe before resuming drilling. Withlosses averaging 8-10 bbls per joint drilled, five-barrel sweeps were pumped twice per stand to 7,794. Mudloss from 7,652 to 7,794 totaled approximately 30 barrels, although over the final two joints, no losses wereseen. Fifteen barrels of the F.I.T./BLOCKADE pill were spotted on bottom and the bit was pulled to 7,312.Another attempt was made to pressure test the formation, but the maximum pressure achieved was 340 psi,which over several attempts, bled off to 250 psi. The bit was run to 7,514, just above the shoe, where a 12-barrel pill was spotted. Again the bit was pulled above the pill and several more efforts were made to test theformation. Pressure held at 310 psi for roughly 10 minutes before bleeding back to 250 psi, or to an equivalentmud weight of 14.4 ppg.

The decision was made to perform a BLOCKADE squeeze, and the bit was pulled to 6,498. A 62-barrelMcAda mixing tank and Schlumberger pumping unit were ordered. A fifty-barrel BLOCKADE slurry was

mixed and weighted up to 13.8 #/gal. Materials used to build this slurry were 206 sacks of BLOCKADE, 150sacks of bagged barite, and one defoamer. The final volume of this slurry was 52 barrels, of which a total of 50barrels were pumped.

Forty barrels of slurry were pumped into the drill string to within 5 barrels of the bit. The Hydril wasclosed. The remaining 10 barrels were picked up and the entire 50 barrels were bullheaded downhole at 2barrels per minute pump rate. With the lead of the slurry at the shoe, the pump rate was reduced to 1 barrel perminute and pumping continued until the tail of the slurry was five barrels below the bit. Displacement of theslurry proceeded until 10 barrels had been injected into the formation, 10 barrels remained in the open hole, and30 barrels of working volume were left in the casing. The pump pressures during displacement fluctuatedbetween 600 and 800 psi and rose to the 800-850 range as the initial 10 barrels of slurry were injected into theformation. At that time the displacement was halted for one hour. Pressures fell to 484 psi with the pumps off.

After the one-hour wait, pressure on the Schlumberger gauge had risen to 535 psi. The squeeze sequencewas completed in 7 stages as follows:

BLOCKADE SQUEEZE #1 INJECTION SEQUENCE

Stage#

BeginningPressure

BarrelsInjected

InjectionRate

(BPM)

MaximumInjectionPressure

Pumps-offPressure

WaitPeriod

(Minutes)

Bleed-off

Pressure

TotalVolumeInjected

SlurryRemainingin Casing

1A 535 2.0 0.5 680 12* 28

1B 3.0 1.0 850 827 60 510 15 25

2 510 3.0 0.5 715 510 30 595 18 22

3 595 5.0 0.5 800 575 50 510 23 17

4 510 1.0 0.33 994 500 15 484 24 16

5 484 4.0 0.5 848 545 25 510 28 126 510 3.0 0.5 858 555 10 595 31 9

7 595 0.5 0.25 989 792 480 868 31.5 8.5

* Includes 10-barrel initialinjection


36/49

PSI Standpipe

0

100

200

300

400

500

600

700

800

900

1000

0 5 10 15 20 25 30 35

Bbls Injected

PSI

Discontinue injection

sequence for dewatering

period of 8 hours

Initial injection, 10 barrels

Stage 1, 5 barrels

Stage 2, 3 barrels

Stage 3, 5 barrels

Southern Bay Energy

J.F. Welder #7-SB

Blockade Squeeze #1 at 7,956'

Stage 4, 1 barrel

Stage 5, 4 barrelsStage 6, 3 barrels

Stage 7, 1/2 barrel

Southern Bay Energy

J.F. Welder #7-SB


0

100

200

300

400

500

600

700

800

900

1000

1100

1200

0 100 200 300 400 500 600 700 800

Minutes

PSI

PSI Standpipe

PSI Casing

Discontinue injection s equence

for dewatering period of 8 hours


37/49


38/49

0

100

200

300

400

500

600

700

800

900

1000

0 5 10 15 20 25 30 35

Bbls Injected

PSI

PSI Standpipe

PSI Casing



period of 8 hours

Initial injection, 15 barrels

Stage 1, 11 barrels

Stage 2, 5 barrels

Stage 3, 1/2 barrel

Stop injection, wait

8 hours for

dewatering

Southern Bay Energy

J.F. Welder #7-SB

Blockad e Squeeze #2 at 7,978'

Southern Bay Energy

J.F. Welder #7-SB


0

100

200

300

400

500

600

700

800

900

1000

0 100 200 300 400 500 600 700 800

Minutes

PSI

PSI Standpipe

PSI Casing

Discontinue injection sequence

for dewatering period of 8 hours


39/49

After the 8-hour dewatering period, pressure was released from the wellbore. The bit was run to the shoe andbottoms up circulated. With 3-barrel sweeps pumped each connection, fourteen joints were washed to TD andthe hole was circulated clean. The bit was pulled back to the shoe and the hole was pressure tested with rigpumps to 15.3 ppg equivalent mud weight (430 psi) at the shoe. The bit was run back to bottom and drillingcontinued as the mud weight was increased to 14.5 ppg. Five-barrel, 25 ppb F.I.T. sweeps were pumped every

connection. At 8,190, 840 units of gas were detected. The mud weight was increased to 14.7 ppg as drillingprogressed. At 8,207 the bit torqued as a drilling break was penetrated. At that point, the hole once againbegan taking mud at a slow but steady rate. A 20-bbl, 25 ppb F.I.T. pill was spotted in the open hole and the bitwas pulled to the shoe. The hole was circulated as mud weight was reduced from 14.7ppg to 14.6 ppg. Whilecirculating, mud losses persisted at approximately 20%. Sixty barrels of 22 ppb F.I.T./22 ppb BLOCKADE pillwere built and transferred to the slugging pit. The bit was run to 7,833 and 59.5 barrels of the pill were spottedas a balanced column. Full returns were seen as the pill was being spotted. Twenty-four stands were pulled to6,319 to place the bit above the pill. An attempt was made to soft-squeeze the pill into the formation bymanual stroking the rig pump. A total of 866 strokes (45 bbls) were pumped. The highest pressure seen duringthis soft-squeeze was 270 psi, but this bled back to 90 psi after 30 minutes. A third BLOCKADE squeeze wasrequested.

Sixty-six barrels of BLOCKADE slurry were mixed and weighted to 14.6 ppg. Sixty-four barrels ofslurry were transferred to Schlumberger and spotted with an initial injection of 15 bbls into the formation. Apressure limit of 550 psi pumps-off pressure (16.0 ppb equivalent mud weight) was set. Maximum pump-inpressure recorded during the injection was 560 psi. With pumps off, pressure was 330 psi. After a one-hourwait, pressure dropped to 188 psi. The 4-stage injection sequence was conducted as follows:

BLOCKADE SQUEEZE #3 INJECTION SEQUENCE

Stage#

BeginningPressure

BarrelsInjected

InjectionRate

(BPM)

MaximumInjectionPressure

Pumps-offPressure

WaitPeriod

(Minutes)

Bleed-off

Pressure

TotalVolumeInjected

SlurryRemainingin Casing

1 188 8.0 0.5 460 360 60 490 25* 14

2 426 1.5 0.33 655 411 30 500 26.5 12.5

3 421 5.0 0.35 560 432 90 381 31.5 7.5

4 381 2.5 0.25 575 457 720 289 34 5

* Includes 17-barrel initial injection


40/49

Southern Bay Energy

J.F. Welder #7-SB

Blockad e Squeeze #3 at 8,210'

0

100

200

300

400

500

600

700

800

0 5 10 15 20 25 30 35

Bbls Injected

PSI

PSI Standpipe

PSI Casing



period of 8 hours

Initial injection, 17 barrels Stage 1, 8 barrels

Stage 2, 1.5

barrels

Stage 3, 5

barrels

Stage 4, 2 1/2

barrels

Southern Bay Energy

J.F. Welder #7-SB

Block ade Squeeze #3 at 8,210'

0

100

200

300

400

500

600

700

800

0 100 200 300 400 500 600 700 800 900 1000 1100 1200

Minutes

PSI

PSI Standpipe

PSI Casing

Discontinue injection sequence

for dewatering period of 12

hours


41/49

Following the 12-hour dewatering period, the Hydril remained closed and the wellbore was tested withthe Schlumberger pump unit. Pump-in of less than bbl produced a spike of 620 psi, which fell to 554 psi(16.0 ppg equivalent). Pressure remained at 554 for ten minutes, but began to fall slowly as the dewateringprocess resumed. The final pressure after one hour had dropped to 458 psi.

Pressure was bled off, the hole was circulated clean, and the bit was run to the shoe, as 21 joints of pipewere laid down for washing and reaming the open hole. Prior to entering the open hole, five pounds per barrelof F.I.T. were added to the entire system. Three-barrel sweeps were pumped each connection while wash-downwas in progress. The bit took approximately 10K# of weight on the seventh joint below the shoe. Minor dragwas also recorded at 8,066 and 8,080, but disappeared with reaming. Bottoms up from 8,000 produced 4,000units of gas with a maximum mud cut to 13.1 ppg. Once gas levels decreased, the hole began taking mud at arate of 25 bbls in 40 minutes. The pipe was slugged and pulled to the shoe. Drag was seen in several places,the most notable of which reached 50-60K# at 7,698. As before, reaming eliminated the tightness. Whilecirculating at the shoe, a further 30 barrels of volume were lost to the hole over a 3-hour period. A 40-barrel,16.5 ppg pill was built, consisting of 25 ppb F.I.T., 25 ppb BLOCKADE, and 5 ppb DRILL-SEAL (M). The bitwas run back to bottom where 25 barrels of the pill were spotted. Pipe was then pulled out of the hole to log.

Logging was completed with no problems and the bit was staged back in the hole, circulating first at5,000, then at the shoe. Bottoms up from the shoe produced 4,000 units gas (saturated gas detector) and a mudcut of 12.8 ppg. The open hole was washed and reamed to TD with gas climbing to and staying at or above4,000 units for most of one hour. The maximum mud cut was to 10.6 ppg. After gas fell back to normal levels,a 30-bbl pill of 14.6 ppg, 25 ppb F.I.T./25 ppb BLOCKADE was spotted on bottom and pipe was pulled to run5 liner.

DrillChem engineer released at 5 P.M., December 8, 2006.


42/49

SOUTHERN BAY ENERGYJ.F. WELDER #7-SB

DRILLCHEM COST SUMMARY

The breakdown in the cost of products, engineering, freight, taxes, and incidentals incurred in theimplementation of DrillChems proactive/preventive measures, and three BLOCKADE squeezes is as follows:

PRODUCT/SERVICE/

ITEM

UNITSIZE

PRICE DELIVEREDUSED/

CHARGEDFINAL

INVENTORYTOTALCOST

F.I.T. 25# sx $ 35.00 1,600 1,347 253 $ 47,145.00

DRILL-SEAL (M) 25# sx $ 35.00 576 457 119 $ 15,995.00

BLOCKADE 25# sx $ 70.00 1,300 885 415 $ 61,950.00

DEFOAMER 5 gal $ 165.00 6 2 4 $ 330.00

PALLETS Ea $ 18.00 37 37 - $ 666.00

WRAPS Ea $ 18.00 37 37 - $ 666.00

Net Cost of Taxable Items $ 126,752.00

Taxes @ 6.25% $ 7,922.00

Subtotal $ 134,674.00

FREIGHT 1,030 $ 1,030.00

ENGINEERING @ 50% Per day $ 375.00 5 $ 1,875.00

ENGINEERING @ 100% Per day $ 750.00 10 $ 7,500.00

MILEAGE Per mile $ 1.50 1,744 $ 2,616.00

PER DIEM Per day $ 35.00 15 $ 525.00

Total Cost $ 148,220.00


43/49

Apache Corporation

OCS-G 00133 #9

Grand Isle Block 47Offshore, LA

BLOCKADE

& F.I.T.

CASE HISTORY


Mud Vendor: Miller and Associates Mud Wt: 14.6 ppg

DrillChem Engineer: Tim Leblanc Mud Type: Oil Base

Problem: Upon arrival of DrillChem engineer on rig (10/27/2006), the well was on choke

and the OBM system was in the process of being weighted up from 13.0 to 14.0 ppg. With

14.0 ppg fluid in the hole, the kick was controlled, and drilling resumed from 14,743 MD,

12,906 TVD. Sixty barrels of sweep volume were built containing 4 ppb ExCal, 8 ppb

F.I.T., 4 ppb Del Tone, and 4 ppb Del Fiber. It is noted that an attempt was made to add 4

ppb Tee Plug to the sweep, but the product was damaged, damp and unusable and F.I.T.was

substituted in its place. Thirty barrels of this sweep were pumped every second stand drilled,

and a 20-ppb concentration of calcium carbonate was maintained in the system. Drilling

progressed at 50-60 ft/hour to 14,869 MD, where the mud system was further weighted up to

14.2 ppg. No mud losses were recorded while drilling.

A 10-stand short trip was made at 15,168. Tightness was encountered while pulling out of

the hole and the wellbore had to be reamed while running back to bottom. The remaining 60

bbls of the above described sweep volume were used while drilling to 15,362, where themud weight was increased to 14.6 ppg. The yield point and low-end rheology were lowered

to reduce the ECD which had increased to 16.1 ppg EMW, approaching the shoe test of 16.3

ppg EMW. Seventy barrels of sweep volume were built containing 15 ppb F.I.T.and 5 ppb

BLOCKADE. Once the ECD had been reduced, 30 bbls of this sweep volume were pumped

every second stand. Drilling progressed with no mud losses to 15,954 MD. The hole was

swept and circulated clean and a 10-stand short trip was made. Following the short trip, ten

feet of hole were drilled and complete returns were lost.

Application: A 75-bbl pill containing 25 ppb F.I.T.and 25 ppb BLOCKADEwas spotted on

bottom and the bit was pulled into the shoe at 14,131. Preparations were made to mix and

spot BLOCKADEslurry. One hundred ten barrels of 14.6 ppg BLOCKADEslurry were builtand ninety bbls were spotted in the hole. A total of 680 bbls of mud were lost up to that

point. The BLOCKADEsqueeze sequence was performed in fourteen stages with squeeze

pressures reaching 1,240 psi DP and 1,025 psi CSG.

Result:After holding pressure for 8 hours, pressures were completely bled off and the hole

was opened up and observed to be static. Circulation was

Documents

Blockade Histories