F l u i d s a n d C h e m i c a l s

PERFORMAX High-performance water-based fluid system

PERFORMAX System Products and Functions

Component Function Description

MAX-SHIELD™ Reduces pore pressure transmission by sealing pore throats and micro fractures Deformable, sealing polymer

MAX-PLEX™ Borehole and cuttings stability; prevent pore pressure transmission Aluminum/sulfonated resin complex

MAX-GUARD™ Suppresses clay hydration and swelling Polyamine derivative

NEW-DRILL™ Inhibits disintegration and dispersion of shales High-molecular-weight, partially-hydrolyzed polyacrylamide

PENETREX™ Increased penetration rates / torque and drag reduction / minimize bit bailing and accretion Hydrophobic coating on bit, tubulars and formation

The PERFORMAX™ system from Baker Hughes is a patented (US Patent 6,703,351) high-performance water-based mud designed to close the significant drilling performance gap between conventional water-base and emulsion-base drilling fluids without sacrificing environmental compliance.

The oil and gas industry is drilling more difficult wells — in deep shelf, extended reach, horizontal and deepwater applications — that are expensive, technically challenging, and inherently risky. To reduce the potential for failure, operators often select conventional emulsion-base drilling fluids, despite their high cost and strict environmental constraints.

Environmental legislation is increasingly restricting the discharge of cuttings drilled with emulsion muds. Operators are challenged with accomplishing a balance between achieving drilling objectives and minimizing the potential environmental impact of the drilling fluid. The performance advantages of emulsion muds are progressively being offset by environmental compliance restrictions. To address this problem, the drilling industry has identified the need for high-performance water-based alternatives to emulsion systems. Baker Hughes developed the PERFORMAX water-based mud system to achieve the perfect balance between superior drilling performance and environmental compliance.

A pioneer in water-based fluid technologyAs a leader in water-based fluid technology, Baker Hughes pioneered the use of cloud-point glycol and aluminum complex chemistries that greatly enhance the inhibitive properties of water-based mud systems. The PERFORMAX system is the latest example of superior water-base technology developed, field tested and commercially introduced by Baker Hughes.

Total inhibition approachThe PERFORMAX system takes the total inhibition approach to control problem clays and shales using components that deliver drilling performance similar to emulsion-base systems.

Competitive systems have focused on either reducing pore pressure transmission or minimizing swelling pressure in shale. However, these mechanisms of shale stability cannot be treated in isolation from one another. A strategy of shale stabilization based solely on pore pressure transmission or swelling pressure reduction alone is only partially effective. To achieve total inhibition, both problems must be controlled simultaneously.

The PERFORMAX system combines membrane-forming agents, hydration suppressants, and a polymeric encapsulator to achieve inhibition of shales, clays and cuttings in a manner similar to emulsion-base drilling fluids.

We developed the PERFORMAX system during an intensive three-year program. The program’s goal was to design the most technically advanced and environmentally acceptable water-based mud for drilling the industry’s most challenging wells. The PERFORMAX system underwent an extensive, controlled field testing program that included onshore US, continental shelf and deepwater wells in the Gulf of Mexico. During these tests, the development team continually improved the system by applying lessons learned and best practices to make engineering modifications. Based on the system’s success, the use of the PERFORMAX system has grown in both the US and internationally.

Benefits � Increased drilling efficiency through:• Improved wellbore stability• Increased rates-of-penetration• Reduced bit balling and accretion• Minimized differential sticking• Reduced torque & drag

� Reduced environmental impact with:• Greater compliance with world-wide standards• Higher solids removal efficiency• Lower dilution rates

The PERFORMAX system:The perfect balance of high-performance drilling and environmental compliance

The PERFORMAX system is designed for use with water salinities ranging from freshwater to saturated monovalent brine. Sodium chloride is typically used to create an osmotic driving force that reduces the water content of shale. The system is also compatible with monovalent salts such as KCl and formate brines.

The PERFORMAX system achieves shale stability through the combination of MAX-SHIELD™ and MAX-PLEX™ additives, both of which increase the membrane efficiency of shales in a manner similar to emulsion-base fluids.

Clay inhibition is achieved through the use of the MAX-GUARD™ additive, a water-soluble clay hydration suppressant. The MAX-GUARD additive prevents clay hydration by limiting the clay’s uptake of water and electrostatically binding the clay mineral lattice. By suppressing clay hydration, the additive also reduces clay plasticity to lower the tendency towards bit balling.

The PENETREX™ additive is a patented (U.S. Patent No. 5,851,958) blend of environmentally compliant base fluids and surfactants that preferentially wets the surfaces of metals, drilled cuttings and formations. This effectively provides a hydrophobic boundary, preventing cuttings and formation materials from adhering to metal surfaces, reducing accretion and torque and drag and increasing rates of penetration.

The NEW-DRILL™ component encapsulates drilled cuttings and facilitates their removal by the rig’s solids control equipment. This additive works in combination with the MAX-GUARD component to maintain cuttings integrity and reduce dispersion, decrease dilution rates and lower mud maintenance costs.

Clean bottom hole assembly after drilling highly reactive gumbo in the Gulf of Mexico using PERFORMAX.

Advanced System Components

Superior environmental performancePERFORMAX fully satisfies global environmental requirements and, in conjunction with satisfying regulatory and well-specific criteria, is permitted for discharge of both whole mud and drilled cuttings.

US Bioassay Pass Criteria PERFORMAX Field Muds

Mysidopsis bahia LC50 > 30,000 ppm 248,700 ppm

Mysidopsis bahia LC50 > 30,000 ppm > 500,000 ppm

Mysidopsis bahia LC50 > 30,000 ppm 465,000 ppm

UK Bioassay MAX-SHIELD

HQ Band Gold. No substitution warning

72-hr EC50 Skeletonema costatum, mg/L > 2,000

48-hr LC50 Acartia tonsa, mg/L 110

96-hr LC50 Scophthalamus maximus > 1,800

28 day Inherent Biodegradation OECD 302A 82%

Octonal/Water Partition Co-efficient (log Pow) OECD 117 > 6

UK Bioassay MAX-PLEX

HQ Band Gold. No substitution warning

72-hr EC50 Skeletonema costatum, mg/L 380

48-hr LC50 Acartia tonsa, mg/L 484

96-hr LC50 Scophthalamus maximus > 1,800

28 day Aerobic Biodegradation OECD 306 25-77%

Octonal/Water Partition Co-efficient (log Pow) OECD 117 < 0-2.4

Technical PublicationsAADE-04-DF-HO-14

� Design Considerations for High-performance Water-base Muds

� 2004 Drilling Fluids Conference, Houston, Texas

SPE/IADC SPE 92367 � New Water-base Mud Balances High-performance Drilling and Environmental Compliance

� 2005 SPE/IADC Drilling Conference Amsterdam, The Netherlands

AADE-05-NTCE-31 � Development and Learning Process Using a New HPWBM on Gulf of Mexico Shelf Wells

� 2005 National Technical Conference, Houston, Texas

PERFORMAX SystemBased on the total systems approach, the PERFORMAX system combines advanced components to systematically provide the benefits of emulsion systems through shale and clay inhibition, increased rates-of-penetration, reduced torque and drag and minimized bit balling and accretion (as seen in the photos below taken while tripping out of the hole).

PERFORMAX is a high-performance, environmentally compliant alternative to emulsion-based systems for drilling technically challenging, inherently costly wells.

PERFORMAX friction factors

Hole Size, inches

Maximum Angle, °

Azimuth Change, °

Dogleg Severity, °⁄100 ft

Average Friction Factors

8½” 40° 31.0° 8.0 0.15

12¼” 46° 98.1° 8.2 0.30

5.92” 95° 81.7° 8.8 0.20

97⁄8” 49° 101.4° 5.3 0.26

12¼” 48° 14° 6.0 0.17

12¼” 51° 24° 6.0 0.17

Friction factors calculated based on surface torque measurements.

Common Friction Factor Ranges

Emulsion Muds 0.16 to 0.55

Water-base muds 0.21 to 0.67

Features Benefits

Total inhibitionStable wellbores, low dilution rates,

stable fluid properties

Environmental complianceReduced environmental risks,

elimination of waste management costs, reduce crane lifts, increased deck space

Ease-of-use Easy to build and maintian

Increased penetration rates Reduced drilling costs

Minimized bit balling and accretion

Increased ROP, reduced ECD and mud losses,

reduced drag on trips

Hole Caliper 12¼“ Interval

120

100

80

60

40

20

0% Wash Out

14 14

116

OBM WBM PERFORMAX

Average washout from caliper logs in 12¼” hole intervals.

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Disclaimer of Liability: This information is provided for general information purposes only and is believed to be accurate as of the date hereof; however, Baker Hughes Incorporated and its affiliates do not make any warranties or representations of any kind regarding the information and disclaim all express and implied warranties or representations to the fullest extent permissible by law, including those of merchantability, fitness for a particular purpose or use, title, non-infringement, accuracy, correctness or completeness of the information provided herein. All information is furnished “as is” and without any license to distribute. The user agrees to assume all liabilities related to the use of or reliance on such information. BAKER HUGHES INCORPORATED AND ITS AFFILIATES SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES FROM ANY CAUSE WHATSOEVER INCLUDING BUT NOT LIMITED TO ITS NEGLIGENCE.