Advanced High-Pressure

Coiled-Tubing Drilling System

Final Report
April 1, 2001 to December 21, 2004

by
John H. Cohen
Greg Deskins

June 2005

DE-FC26-97FT33063

Maurer Technology Inc.

13135 South Dairy Ashford, Suite 800
Sugar Land, TX 77478
 Disclaimer

This report was prepared as an account of work sponsored by an agency of the United States
Government. Neither the United States Government nor any agency thereof, nor any of their
employees, makes any warranty, express or implied, or assumes any legal liability or
responsibility for the accuracy, completeness, or usefulness of any information, apparatus,
product, or process disclosed, or represents that its use would not infringe privately owned
rights. Reference herein to any specific commercial product, process, or service by trade name,
trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement,
recommendation, or favoring by the United States Government or any agency thereof. The
views and opinions of authors expressed herein do not necessarily state or reflect those of the
United States Government or any agency thereof.

DE-FC26-97FT33063 - ii - Maurer Technology Inc.

Final Report
 Abstract

The majority of time and cost in drilling a gas or oil well is consumed by the actual drilling
process (“turning to the right”). The most effective approach to significantly reduce costs of
drilling wells is to increase penetration rates. Researchers have for many years investigated
means to drill rock faster, and jet-assisted drilling is one method that has been considered
several times. In most cases it was found that, while jet-assisted drilling was very effective in
increasing penetration rates, the implementation cost was too high because special equipment
and pumps were required. Research has shown that most formations can be drilled significantly
faster and that well depth is not a significant factor in the results.

This project was undertaken to develop and test a high-pressure (HP) drilling system that was
based on conventional equipment except for a special HP downhole motor and jet bit specially
designed to erode radial kerfs (grooves) in the rock which are then broken off by the cutters.
These items would be manufactured commercially once the concept was proven. Related past
R&D efforts reported significant problems with leaks at the tool joints in the drill string. This
project’s original concept was to employ coiled tubing (CT) to convey the BHA into the well.
Using CT would eliminate most of the pipe connections where leaks could occur from HP fluids.
CT operators also routinely use HP fluids for clean-outs and frac jobs. These factors would
reduce concerns about safety that are often raised regarding HP drilling.

The first series of field tests conducted during the project used CT to deploy the special HP
motor and jet kerf bit. A number of problems occurred that prevented CT jet kerf drilling from
being adequately tested. These problems, although deemed to be solvable, led to a loss of
interest by the CT company participating in the project. As a result, the second series of field
tests was performed using conventional rotary drilling. Another factor in the decision to switch to
conventional rotary drilling was the high cost of CT operations. Higher costs require even higher
drilling rates to achieve an economically viable operation.

The conventional rotary drilling tests

provided highly promising results that
exceeded the team’s expectations. Jet
kerf drilling was accomplished by
modifying a standard rig by adding off-
the-shelf equipment, including a HP
pump. The cost to modify the rig was
very reasonable. New drill pipe with
double-shoulder tool-joint connections
was used and found to eliminate leak
problems observed in previous HP drilling
operations. The only item specifically
fabricated for this test was the drill bit,
which only required slight modification
(smaller nozzles).

The second test sequence was Figure A-1. RMOTC’s Rig Used for Field Tests
conducted at the Rocky Mountain Oilfield
Test Center (RMOTC) in Wyoming. RMOTC’s rig (Figure A-1) is an older unit capable of pulling
doubles. The ease and modest cost of upgrading this rig to 10,000-psi service clearly
demonstrated that larger and newer rigs may also be upgraded for HP jetting service at

DE-FC26-97FT33063 - iii - Maurer Technology Inc.

Final Report
reasonable cost. Modifications consisted of new 10,000-psi piping and valves, a 15,000-psi
swivel, and a 15,000-psi rotary hose, all for a total cost of about $100,000. A HP pump was also
required for a cost of less than $500,000.

Figure A-2 compares penetration rates achieved with the HP jet kerf system (blue) to that in
offset wells drilled conventionally (red). The data show that jet kerf drilling was able to
significantly increase penetration rates.

Figure A-2. Comparison of Jet Kerf Drilling to Conventional Offset Wells

Figure A-3 shows the increase in drilling rate as a percentage of conventional rates. Rates over
500% above conventional were achieved. Typical rates were 100–200% faster than
conventional rates.

Figure A-3. ROP Increase with Rotary HP Jet Kerf Drilling

DE-FC26-97FT33063 - iv - Maurer Technology Inc.

Final Report
A simple economic model was prepared and is summarized in this report. The model indicates
that, based on a two-year payback period, jet kerf drilling can be commercially successful in
typical economic settings. Test data from this project also demonstrate that the concept is
clearly technically feasible. Work remains to extend the life of jet kerf bits. Premature erosion of
the steel body of the bit was observed. A proposed extended nozzle is described that will
significantly reduce erosion and extend the life of the bit. (This nozzle has not yet been tested
with the system.)

The only true impediment to commercialization of HP jet kerf drilling is that no single company
can by itself serve as a champion for the new technology. Commercialization requires a
combination of a motivated rig contractor, operator, and bit manufacturer, with each company
being properly educated to understand the overall benefits of the new technology. Assembling a
commercial consortium will not be easy because jet kerf drilling will reduce the number of days
to drill a well, potentially reducing the contractor’s revenue. Likewise, jet kerf bits may wear less
that conventional bits and drill more footage, resulting in lower revenue for the bit manufacturer.
Business practices and/or cost structures will need to be modified with the support of all
commercial parties involved.

HP jet kerf drilling will only become a reality through an evolutionary process of ever-increasing
pressures. Its acceptance, however, could be accelerated through a DOE-sponsored
demonstration project based on modifying conventional rotary equipment and procedures for
HP operation. A well-designed field demonstration would make a commercial rig ready for HP
operation and demonstrate to operators the value of paying a slightly higher day rate to have
wells completed in fewer days and brought onto production sooner. Contractors also need to be
presented with clear evidence that higher day rates will more than offset any lost revenue due to
fewer drilling days on each well.

DE-FC26-97FT33063 -v- Maurer Technology Inc.

Final Report
 Table of Contents

Disclaimer....................................................................................................................................ii
Abstract ......................................................................................................................................iii
List of Figures ..........................................................................................................................viii
List of Tables...............................................................................................................................x
1. Introduction ........................................................................................................................1
1.1 System Concept ..........................................................................................................1
1.2 Justification..................................................................................................................2
1.3 History of Jet-Assisted Drilling.....................................................................................3
2. Experimental.....................................................................................................................10
2.1 Objectives..................................................................................................................10
2.2 Scope of Work...........................................................................................................10
2.3 Advanced Drilling System Concepts .........................................................................11
2.3.1 Introduction....................................................................................................11
2.3.2 Dual-Flow CT System....................................................................................11
2.3.3 Single-Flow CT System .................................................................................13
2.4 Equipment Developed for HP Drilling........................................................................14
2.4.1 HP Motors......................................................................................................14
2.4.2 HP Jet Kerf Bits .............................................................................................15
2.4.3 CT String .......................................................................................................16
2.4.4 CT BHA Components ....................................................................................17
2.4.5 Fluid Swivel for CT Rig ..................................................................................17
2.4.6 HP Jointed-Pipe System................................................................................18
2.5 Equipment for Catoosa Field Tests ...........................................................................19
2.6 Equipment for RMOTC Field Tests ...........................................................................24
3. Results and Discussion...................................................................................................29
3.1 Summary of Project Activities....................................................................................29
3.2 Equipment Developed for HP Drilling........................................................................32
3.2.1 HP Motors......................................................................................................32
3.2.2 HP Jet Kerf Bits .............................................................................................43
3.2.3 CT String .......................................................................................................46
3.2.4 CT BHA Components ....................................................................................49
3.2.5 Fluid Swivel for CT Rig ..................................................................................50
3.3 GTI Catoosa Field Tests ...........................................................................................52
3.4 Cement Drilling Tests ................................................................................................55
3.5 RMOTC Field Tests...................................................................................................57
4. Economic Model...............................................................................................................65
4.1 Assumptions..............................................................................................................65
4.2 Base Case.................................................................................................................65
4.3 Increased Initial Equipment Cost...............................................................................68
4.4 Increase Pump Utilization..........................................................................................70
4.5 Increase in Daily Rig Rates .......................................................................................70

DE-FC26-97FT33063 - vi - Maurer Technology Inc.

Final Report
5. Implementation of HP Jet Kerf Drilling ..........................................................................72
6. Conclusions......................................................................................................................73
7. References........................................................................................................................75
8. Acronyms and Abbreviations .........................................................................................76

Appendix A: Engineered Test Plan; DOE High-Pressure Coiled-Tubing Jet-Assisted

Drilling; Topical Report TR01-24

Appendix B: Catoosa HP-CT Shallow Field Test Log

Appendix C: Joint Work Statement for CRADA No. 2004-046 between Rocky Mountain
Oilfield Testing Center and Maurer Technology Inc.; High-Pressure
Drilling Test

Appendix D: High-Pressure Jet-Assisted Drilling; Final Report, July 22, 2004, Rocky
Mountain Oilfield Testing Center (RMOTC), CRADA 2004-046

Appendix E: Drilling Prognosis, RMOTC & Maurer Technology Inc., February 17, 2004

Appendix F: Coiled-Tubing Equipment

Appendix G: Comments of Reviewers of this Report

DE-FC26-97FT33063 - vii - Maurer Technology Inc.

Final Report
 List of Figures

Figure 1. Jet Kerf Drilling Mechanism ...........................................................................................1

Figure 2. HP-CT Drilling Concepts................................................................................................2
Figure 3. Well Time Analysis (Andersen, 1990)............................................................................3
Figure 4. Exxon Jet-Only Bit (Deily et al., 1977) ...........................................................................4
Figure 5. Frac Trucks used for HP Drilling (Deily et al., 1977)......................................................4
Figure 6. Exxon HP Field Test Results (Deily et al., 1977)...........................................................5
Figure 7. FlowDril Dual-Flow HP Drill Pipe (Kolle et al., 1991) .....................................................5
Figure 8. FlowDril Jet-Drilling System (Kolle et al., 1991).............................................................6
Figure 9. FlowDril Field Data (Kolle et al., 1991) ..........................................................................7
Figure 10. MTI HP Motor ..............................................................................................................7
Figure 11. Comparison of Drilling Methods...................................................................................8
Figure 12. MTI’s 8-inch HP Bit (left) Cut Kerfs into Rock (right)....................................................8
Figure 13. Drilling Rates with MTI 8-inch HP Bit...........................................................................9
Figure 14. Dual-Flow CT Jet Kerf Drilling System ......................................................................12
Figure 15. Single-Flow CT Drilling System .................................................................................14
Figure 16. Design of HP Mud Motor ...........................................................................................15
Figure 17. HP Bit (8-in.) Previously Developed by MTI ..............................................................15
Figure 18. CT Fatigue Life with Internal Pressure ......................................................................16
Figure 19. Hydra-Rig HP-CT Swivel ...........................................................................................17
Figure 20. HP Rotary Swivel used on RMOTC Rig ....................................................................18
Figure 21. Gardner Denver HP Plunger Pump ...........................................................................18
Figure 22. Double-Shoulder Tool Joint for HP Tests ..................................................................19
Figure 23. MTI HP Mud Pump ....................................................................................................21
Figure 24. Make-Up Tongs for CT BHA......................................................................................21
Figure 25. Lifting BHA for Insertion into Well ..............................................................................22
Figure 26. Well Head Preparation at Catoosa ............................................................................22
Figure 27. HP-CT Equipment for Field Test................................................................................23
Figure 28. CT Reel......................................................................................................................23
Figure 29. CT Control Cabin .......................................................................................................23
Figure 30. Rigging up CT through Gooseneck ...........................................................................24
Figure 31. BJ Frac Pumps ..........................................................................................................24
Figure 32. RMOTC Field Test Site..............................................................................................25
Figure 33. RMOTC Drill Rig ........................................................................................................25
Figure 34. HP Rotary Hose.........................................................................................................27
Figure 35. Cleaning Mud Tanks..................................................................................................28
Figure 36. Bit Filter Screens .......................................................................................................28
Figure 37. HP Labyrinth Seal......................................................................................................33
Figure 38. Flow Rate through Labyrinth Spacing........................................................................34

DE-FC26-97FT33063 - viii - Maurer Technology Inc.

Final Report
Figure 39. Labyrinth Sleeve ........................................................................................................34
Figure 40. Titanium Flex Shaft....................................................................................................34
Figure 41. Bearing Types for HP Motor ......................................................................................35
Figure 42. PDC Thrust Bearings.................................................................................................36
Figure 43. Motor Bearing Load Limits.........................................................................................36
Figure 44. 4¾-in. Motor – (A) Speed; (B) Torque; and (C) Power and Efficiency.......................38
Figure 45. Difference in HP Motor Torque—Ball versus Diamond Bearings ..............................39
Figure 46. Broken Ball Bearings after HP Operation ..................................................................39
Figure 47. Theoretical Performance Curves for 3⅛-in. Power Section (R&M Energy Systems) 40
Figure 48. 3⅛-in. HP Motor – (A) Speed and Torque and (B) Power and Efficiency..................41
Figure 49. 111/16-in. Motor – Manufacturer’s Performance Curves (R&M Energy) .......................42
Figure 50. 111/16-in. Motor Performance Data (Measured) ...........................................................43
Figure 51. Helical Slots Jetted with 111/16-in. Motor ......................................................................43
Figure 52. Basic Nozzle Pattern for HP Bit .................................................................................44
Figure 53. Jet Kerfing Patterns of Original and Improved Nozzle Design...................................44
Figure 54. 6-inch HP Jet Kerf Bit used at RMOTC .....................................................................45
Figure 55. Measured Pressure versus Flow for Bit .....................................................................45
Figure 56. CT Fatigue Life with Internal Pressure ......................................................................46
Figure 57. Standard CT Fatigue Testing Machine ......................................................................47
Figure 58. Fatigue Test Data for New High-Strength CT (Quality Tubing, Inc.)..........................48
Figure 59. Composite CT (Fiberspar Spoolable Products) .........................................................48
Figure 60. Ballooning of CT Caused by Bending with Internal Pressure ....................................49
Figure 61. CT BHA for HP Drilling (6-in. Bit on 4¾-in. Motor).....................................................50
Figure 62. Hydra-Rig HP-CT Swivel ...........................................................................................51
Figure 63. Testing Hydra-Rig HP CT Swivel...............................................................................51
Figure 64. Pressure Drop through Hydra-Rig Swivel ..................................................................52
Figure 65. Worker Threading CT into Gooseneck ......................................................................53
Figure 66. Special Wrenches for Making Up CT BHA ................................................................53
Figure 67. Frac Sand Removed from Downhole Screen Sub .....................................................54
Figure 68. Drilling Cement with HP Jets ....................................................................................55
Figure 69. Cement Drilled from 4½-in. Tubing............................................................................56
Figure 70. Washed Nozzle on First Bit .......................................................................................58
Figure 71. First Bit After Nozzle Brazing .....................................................................................58
Figure 72. Epoxied Nozzles on Back-up Bit................................................................................58
Figure 73. Side Washout on New Jet Kerf Bit.............................................................................60
Figure 74. Drawing of Bit Showing Nozzle and Cutter Proximity ................................................60
Figure 75. New Bit with Missing PDC Cutters.............................................................................61
Figure 76. New Bit after Final Run..............................................................................................61
Figure 77. RMOTC Drilling Rate Comparison.............................................................................62
Figure 78. Sectioned HP Bit........................................................................................................63
Figure 79. Section of Damaged Bit .............................................................................................63

DE-FC26-97FT33063 - ix - Maurer Technology Inc.

Final Report
Figure 80. Anti-Erosion Nozzle ...................................................................................................64
Figure 81. Revenue Per Well Using HP Jet Kerf Drilling ............................................................66
Figure 82. Value of Well Including Capital Expense Recovery ...................................................67
Figure 83. Additional Revenue Per Well Based on Standard Charge of $280k..........................68
Figure 84. Increase in Daily Rig Rate for Higher Initial Investments...........................................69
Figure 85. Revenue Per Well with Increased Rates and Increased Initial Cost..........................69
Figure 86. Per Well and Yearly Payout with Pump Shared Between Two Rigs..........................70
Figure 87. Revenue Per Well for Rig Daily Rates of $15k and $20k ..........................................71

List of Tables

Table 1. RMOTC Formations......................................................................................................26

Table 2. Cost of Upgrades to RMOTC Rig for HP Operation .....................................................27
Table 3. Properties of QT-1200 High-Strength CT .....................................................................47
Table 4. Drilling Rate Comparison for Bit and Formation ...........................................................62
Table 5. Base Case for Economic Model....................................................................................66
Table 6. Initial Investment of $800k for HP Equipment ...............................................................68
Table 7. Initial Investment of $1000k for HP Equipment .............................................................68

DE-FC26-97FT33063 -x- Maurer Technology Inc.

Final Report
 1. Introduction

1.1 System Concept

The oil and gas drilling industries have always sought to develop technologies that drill rock
faster. There are substantial economic benefits to be gained by increasing the rate of rock
removal and hole construction. Drilling faster reduces overall field time, which directly translates
into reduced costs for producing oil and gas resources. Objectives of this project were to
develop a complete jet-assisted drilling system that uses high-pressure (HP) drilling fluid to
increase the rate of rock removal to three to five times above conventional rates. Jet-assisted
drilling combines HP fluid jets with rotating
mechanical cutters to remove the rock very
aggressively. HP fluid jets erode radial slots in Bit
the rock ahead of the bit and leave only thin
rock kerfs (ledges or grooves) for the
mechanical cutters to break off (Figure 1). A
variety of laboratory tests conducted at Maurer
Technology Inc. (MTI) (Maurer et al., 1986)
showed that this combination of rock-removal PDC
processes is capable of higher penetration Cutters HP Jets
rates than either jet erosion drilling or
mechanical cutters alone.

While the phrase “jet-assisted drilling” has been

used in the past, the use of HP fluid jets in the Kerfs
present effort was different from previous
Figure 1. Jet Kerf Drilling Mechanism
developments. There has typically been only a
single jet aimed at the gauge of the hole. This project used several jets carefully positioned and
aimed across the entire bottom of the hole to cut several radial kerfs ahead of the cutters to
reduce the work the cutters must do. A more descriptive term is used for the work reported
here—“jet kerf drilling.”

For this DOE project, an innovative HP drilling concept was initially pursued based on using
coiled tubing (CT) to transport the drilling assembly downhole and to deliver HP fluid to the bit.
Two system design concepts were proposed initially. The first approach uses a concentric dual-
tube system (Figure 2, left). HP fluid would be pumped down the center CT string and low-
pressure (LP) fluid simultaneously pumped down the larger CT string in the annular space
outside the smaller CT string. HP fluid would be channeled past the motor to the bit nozzles to
jet-drill the rock, while the LP fluid would supply power to the mud motor and clean cuttings from
the bit face and hole.
The second CT drilling system concept is more conventional and uses a single large CT string
to deliver HP fluid downhole to power the mud motor, jet the rock face and remove cuttings from
the well (Figure 2, right).

DE-FC26-97FT33063 -1- Maurer Technology Inc.

Final Report
 Dual-Flow CT Single-Flow CT

HP Fluid

LP Fluid

Returns

1¾” CT
2” CT

2⅞” CT
Figure 2. HP-CT Drilling Concepts

After analysis of the advantages/disadvantages of proposed equipment for both CT systems as

well as input from the Advisory Board of industry experts, it was determined that the single-flow
system was the best approach and presented the highest potential for success. New motors
and bits were developed and tested in the laboratory. In Phase III, a series of tests was
conducted of a single-string HP-CT system at the GTI Catoosa test facility in Tulsa, Oklahoma.
Results (see Section 3.3) indicated that equipment and economic factors are not yet favorable
for commercializing a CT-based system for jet kerf drilling.

Following field tests with the single-flow CT-based system, the project team determined that the
HP jet kerf drilling concept should also be tested on jointed drill pipe to prove the concept and
begin to establish a knowledge base regarding system limits (depths, formations, etc.). These
field tests were conducted at the Department of Energy Rocky Mountain Oilfield Testing Center
(RMOTC) in Casper, Wyoming (described in Section 3.4). These field operations demonstrated
that jet kerf drilling can substantially increase penetration rates in a variety of formations and at
depths applicable to a wide range of wells.

The rotary jet kerf drilling tests also showed what additional equipment and skills are needed for
a commercial HP drilling system. Somewhat surprisingly, the conventional rig was readily
upgraded for HP jetting using equipment that is currently available commercially. Project tests
showed that jet kerf drilling can be practical and that barriers are no longer related to
engineering, but only to economics. Costs and rig modifications for these operations are
described in Section 2.6.

1.2 Justification
Economic studies of oil and gas wells have repeatedly demonstrated that drilling efficiency is a
major factor in the overall economics of gas and oil exploitation. Figure 3 presents the time
break-down for drilling a group of wells from a survey study (Andersen, 1990) conducted by MTI
and sponsored by GRI. These data, representing 3111 wells, show that about one-third of the
time to construct a well was spent drilling. This is the single largest component in the entire
process of well construction. When Andersen reviewed data from only the deeper wells in this

DE-FC26-97FT33063 -2- Maurer Technology Inc.

Final Report
data set, the percentage of time spent drilling was even higher (over 50%). Therefore, to reduce
well construction costs substantially, drilling time must be reduced. Major reductions of time
spent in other activities or categories would not have an overall impact as significant as
reducing drilling time.

BOP, 3.8%
Wait Time, 5.4%

Test & Log, 13.2%

Drilling, 33.7%

Trouble Time,
5.2%

Running Casing,
12% Reaming, 3.2%

Condition Mud,
6.9%
Tripping, 16.7%
Figure 3. Well Time Analysis (Andersen, 1990)

Several approaches may be possible for reducing total drilling time; however, the most effective
way is to improve drilling efficiency. Moreover, an increase in drilling rate (ROP) must be
accompanied by equal (or greater) equipment reliability so that overall trip time is maintained.
Because benefits from relatively modest increases in ROP are quickly offset by increased
equipment costs or extra trip time, it is easy to demonstrate that significant increases in drilling
rate (100% and more) are necessary for a significant overall impact.

Jet-assisted drilling is highlighted as one technology that has the potential to increase
penetration rates significantly and achieve these goals. In past experience with jetting
technologies, the industry has shown that drilling rates can be markedly increased. However,
increases in costs due to HP equipment and operations have offset the benefits. The project
team believes that it is time to revisit this approach because current commercial equipment and
technology will allow increases in operating pressures that will enable jet-assisted drilling and
preserve the benefits and cost savings that accompany it.

1.3 History of Jet-Assisted Drilling

Jet-assisted drilling is not a new concept. During the 1950s, Russian teams conducted
extensive laboratory tests that showed that HP jet bits can effectively drill hard rocks. In the
1960s and 1970s, Exxon, Shell and Gulf conducted extensive full-scale field tests that
demonstrated that HP bits operating at pressures of 10,000–15,000 psi (69–103 MPa) can
increase drilling rates by two- to four-fold in many formations.

Exxon developed and tested jetting systems in the early 1960s. By extrapolating laboratory data
from previous work, Exxon determined that medium-strength rocks could be drilled at rates of

DE-FC26-97FT33063 -3- Maurer Technology Inc.

Final Report
70 to 280 ft/hr compared to 30 to 170 ft/hr for conventional drilling (Maurer et al., 1972). Based
on these predictions, Exxon conducted a number of laboratory and field tests using roller, drag
and jet-only bits. A jet-only bit (Figure 4) was constructed for which the only rock removal
mechanism was HP fluid jets (i.e., it had no mechanical cutters).

Figure 4. Exxon Jet-Only Bit (Deily et al., 1977)

The jet bit was used on several shallow field tests and found to drill significantly faster than
conventional bits in offset wells: 107–285 ft/hr compared to 10–20 ft/hr, respectively. Exxon
continued with tests using drag and roller bits with conventional and extended nozzles. These
tests also demonstrated that HP jets have the potential to substantially increase drilling rates.

Exxon conducted field drilling tests where four HP frac pumps were used to pump conventional
drilling mud at pressures up to 15,000 psi. HP flow lines, HP drill pipe, and special HP bits were
used. Exxon used conventional frac trucks (Figure 5) for their tests.

Figure 5. Frac Trucks used for HP Drilling (Deily et al., 1977)

In one test, Exxon’s HP jet bits drilled from a depth of 2400 to 6000 ft in an East Texas oil well in
24 hours, compared to a drilling time of 67 hours for conventional bits (Figure 6).

DE-FC26-97FT33063 -4- Maurer Technology Inc.

Final Report
 1000

2000

Depth (ft)
3000

4000
Conventional Bits
(2000 psi)
5000

6000
Erosion Bits
(10,000–15,000 psi)
7000
0 10 20 30 40 50 60 70
Rotating Time (hr)
Figure 6. Exxon HP Field Test Results (Deily et al., 1977)

In the 1980s and 1990s, FlowDril (Butler et al., 1990) developed a system with concentric drill
pipe to drill at high rates using ultra-HP (Figure 8). They reportedly drilled over 20,000 ft of hole
with their drilling system. Two streams of fluid were used, one at conventional pressures and a
second at very HP (30,000 to 40,000 psi). Only a small portion of the flow is HP, thereby
reducing overall horsepower requirements for the system so that they might remain
economically feasible.

Special roller bits were used that were outfitted with one extended nozzle for HP fluid and two
other nozzles for LP fluid. Dual-wall drill pipe was used; the inner string carried HP fluid and the
annulus between the strings carried LP fluid (Figure 7). FlowDrill’s work centered around
making the use of HP jet-assisted drilling safer, easier, and less dependent on the specialized
equipment that had been required on earlier attempts.

Figure 7. FlowDril Dual-Flow HP Drill Pipe (Kolle et al., 1991)

DE-FC26-97FT33063 -5- Maurer Technology Inc.

Final Report
 Figure 8. FlowDril Jet-Drilling System (Kolle et al., 1991)

FlowDril’s special concentric drillstring cost in excess of $1 million. Field trials showed that the
system increased drilling rates 2.2 to 3.6 times conventional rates. Although excellent drilling
performance was reported (Figure 9), the operator’s fear of losing the complex and expensive
drillstring in the well severely limited application of this system. They also reported that
operational and reliability problems with the concentric drillstring further hindered its use.

DE-FC26-97FT33063 -6- Maurer Technology Inc.

Final Report
 50

40 Ultra-HP Jet Assisted

ROP (ft/hr)
30

20

10

Conventional
0
5,000 6,000 7,000 8,000 9,000 10,000
Depth
Figure 9. FlowDril Field Data (Kolle et al., 1991)

In the 1980s, MTI developed a special high-speed drilling system to drill 8-in. holes in medium-
strength rocks (5000–10,000 psi strength) at rates of 500–1000 ft/hr. Based on the requirements
of MTI’s client, a new drilling system was investigated to achieve very high penetration rates.
MTI developed a new downhole drilling motor (Figure 10) that operates at HP (10,000 psi) and
uses high rotary speeds (400–1000 rpm).

Figure 10. MTI HP Motor

This 4¾-inch motor was tested in the laboratory. Based on the client’s typical formation
strengths, conventional rotary rigs drill similar rocks at rates of 50–100 ft/hr and standard
downhole motors improved performance to 100–300 ft/hr. The HP motor/jet-bit combination
drilled about 1000 ft/hr in rocks of medium strength (Figure 11).

DE-FC26-97FT33063 -7- Maurer Technology Inc.

Final Report
 1200

1000

Drilling Rate (ft/hr)

800

600

400

200

0
Conventional Drilling Motor/Jet Bit
Rotary Motor
Figure 11. Comparison of Drilling Methods

Development of this motor then led to MTI’s subsequent development of a matched 8-inch HP
jet bit (Figure 12) that used jets to cut kerfs to weaken the rock and dramatically increase drilling
rate. MTI analyzed parameters that impact cutting efficiency (rotary speed, depth of rock
removed per revolution, nozzle diameter, etc.) to minimize the hydraulic horsepower required to
drill. They found that the specific energy required to drill with these PDC jet bits decreased
significantly from 10,030 to 2,270 ft-lb/in3 as bit diameter was increased from 2.5 to 8 inches.

Figure 12. MTI’s 8-inch HP Bit (left) Cut Kerfs into Rock (right)

The combination of kerf-cutting by fluid jets and PDC cutters to break off the rock allowed the 8-
in. bit system to drill 650 ft/hr compared to 150 ft/hr for conventional bits (Figure 13).

DE-FC26-97FT33063 -8- Maurer Technology Inc.

Final Report
 700

Drilling Rate (ft/hr)

600

500

400

300

200

100

0
100 9500
Pressure (psi)
Figure 13. Drilling Rates with MTI 8-inch HP Bit

Laboratory and field tests by these and other researchers conclusively demonstrated that HP
jet-assisted bits have the potential to drill oil and gas wells two to four times faster than
conventional bits. The major limitation of these systems was reliability problems associated with
jointed drill pipe, since over 300 threaded connections (potential leak paths) are required in a
10,000-ft well. It is very difficult to prevent leaks and washouts from occurring with such a large
number of threaded connections, especially when operating at HP. Implementation of these
innovative jet-drilling systems has remained largely unutilized awaiting the development of a drill
string that would solve problems with threaded connections.

The development of large-diameter CT (2⅜- to 3½-in. OD) in the 1990s is one obvious answer
to HP drill-string problems since several thousand feet of continuous CT containing no threaded
connections can be placed on one reel and transported to the well. (CT reel capacity is reduced
for larger OD strings.) High tripping speed with CT further enhances its use in drilling.

Goals of this project included applying CT to HP jet technology developed earlier by Exxon,
Shell, Gulf, FlowDril and MTI and thereby solve leakage problems encountered with these
earlier systems. Results showed that this may be feasible by combining advanced jet kerf bits
with existing CT technology and equipment.

DE-FC26-97FT33063 -9- Maurer Technology Inc.

Final Report
 2. Experimental

2.1 Objectives
Objectives of the project, as originally proposed, are summarized below. The present report
includes results from Phases II and III. The project was also extended in scope and time beyond
the initial plan (see Section 3.1).

The objective of Phase I was to demonstrate the feasibility of the high-pressure (HP) coiled-
tubing (CT) drilling system. This included theoretical analyses, component design and review of
potential barriers in field applications through meetings held with subcontractors, service
companies, and operators.

The objective of Phase II was to manufacture and laboratory-test the drilling system
components. Detailed machine drawings were prepared and prototype components
manufactured. Reliability and performance of the system components, including tests for hard
rock drilling conditions, were to be tested individually (i.e., HP swivels, concentric CT, downhole
motors and downhole bits). Once reliability of system components is demonstrated, the total
system was assembled and laboratory tested in blocks of sandstone and limestone to measure
performance and reliability of the entire system.

The objective of Phase III was to field-test the prototype drilling system and demonstrate its
effectiveness (including effectiveness in hard rock drilling conditions) for increasing drilling rates
and reducing drilling costs in preparation for commercializing this system.

2.2 Scope of Work

Phase I consisted of performing a detailed analysis of the system to (1) identify potential
problems and barriers, (2) use computer analyses to calculate life and performance of the
system and (3) select the best candidate downhole motor (Moineau or turbine) for development
on the project. Once the system was specified, layout drawings and preliminary machine
drawings were made of all system components in preparation for compiling detailed drawings
and manufacturing the tools in Phase II.

Phase II consisted of: (1) making detailed manufacturing drawings of all system components
(e.g., HP swivels, CT strings, downhole motors, and jet bits); (2) manufacturing all system
components; (3) laboratory testing individual components on test stands; (4) assembling and
testing the total CT drilling system in blocks of sandstone and limestone; (5) modifying system
components to overcome any problems encountered during laboratory tests; and (6) retesting
the system including tests for hard-rock drilling conditions.

Phase III activities were to field-test the prototype HP jet kerf drilling system developed from the
components of Phases I and II. Effectiveness of the system(s) in increasing drilling rates while
reducing drilling costs was to be demonstrated, including effectiveness in hard-rock drilling
conditions. Phase III was envisioned to include at a minimum two field tests at specified
maximum depths.

DE-FC26-97FT33063 - 10 - Maurer Technology Inc.

Final Report
The first tests were conducted at the Catoosa test facility in Oklahoma to shake out or "field
harden" the equipment and develop the HP operating procedures needed for safe and effective
field application of the drilling system. After tests at Catoosa, additional shallow field tests of the
HP drilling system were to be conducted as appropriate. An overall reliability target of 100 hr
mean time between failures is the goal during the shallow field tests.

Based on the original plan, the project team was to conduct deeper tests at depths up to 10,000
ft. Various applications of the system were to be tested including drilling and scale clean-out
operations. The project team might also demonstrate the application of the system for wells
requiring clean out of cement.

2.3 Advanced Drilling System Concepts

2.3.1 Introduction
Previous attempts to develop HP drilling systems that employed jets to increase drilling rates
had extensive problems with fluid leaks from tool joints and tubulars (see Section 1.3). To avoid
this, the project team first proposed drilling systems based on CT (coiled tubing) so that the
number of joints (potential leak locations) could be minimized. CT technology made dramatic
strides in capability during the 1990s. CT is also well suited for pumping HP fluids; for example,
CT-based frac jobs are routine.

During the development, the project team changed the preferred design of the HP jet kerf
drilling system. These changes resulted from engineering design reviews, laboratory tests, and
performance of the systems during field testing. Concept and design reviews were conducted
on a regular basis so that the final system would best meet industry needs and have the
greatest potential for commercialization. The review team included MTI technical personnel
along with members of an industry Advisory Board comprised of expert personnel from BJ
Services Company (a major CT service company), ConocoPhillips, BP, and Quality Tubing, Inc.
(a leading manufacturer of CT).

Various aspects of the first concept systems were modified or eliminated based on design
reviews and results of field testing. At the end of the project phase, a relatively simple design
based on conventional jointed tubulars and rotary drilling was successfully used and achieved
excellent results. Each system considered and tested is described below along with changes
incorporated during the project.

2.3.2 Dual-Flow CT System

The first concept pursued during Phase I was a dual-flow system (Figure 14) that would pump
HP fluid down the center string of a double string of CT and low-pressure (LP) fluid down the
annulus between the strings. This concept included a special dual-flow mud motor and bit. The
motor would contain a swivel and flex sub at the top to allow HP fluid to pass through the center
of the rotor down through the drive shaft to the bit and exit through HP jets in the bit. These HP
jets would rapidly erode rock and increase ROP while drilling. The LP fluid would be used to
power the motor and then pass through the bearing pack and exit through LP jets in the bit. The
combined fluid streams would then carry the cuttings up the wellbore annulus to the surface.

DE-FC26-97FT33063 - 11 - Maurer Technology Inc.

Final Report
 CT Reel Injector

HP & LP Pumps
LP Flow

LP Flow
Returns

Returns
HP Flow

Dual-Flow HP Motor
(Hollow Rotor)

Concentric
Coiled Tubing

Dual-Flow HP Bit

Figure 14. Dual-Flow CT Jet Kerf Drilling System

This dual-flow system, although considered to be relatively complicated, offered several

benefits. It would minimize the volume of HP fluid required, and thereby reduce the overall
power required to generate high pressures. (Early in the effort, the team believed that
horsepower requirements would be a critical economic hurdle for jet kerf drilling. This had been
reported in previous efforts and failed field applications of the technology (see Section 1.3).) In
addition, providing LP fluid to run the motor and clean the bit assured that sufficient fluid flow
rates could be provided to adequately circulate cuttings from the wellbore.

A dual-flow system with reduced volume requirements for HP drilling fluid also allowed the use
of smaller diameter CT strings. Engineering analysis showed that smaller CT would provide
significantly longer life before fatigue failure. (CT is plastically bent on/off the reel and over the
gooseneck during standard operations. Fatigue failure from this plastic bending, always a
serious concern for CT, is much more rapid when internal pressures are high.) While larger CT
can be specified to safely pump 10,000-psi fluid, it would have a substantially shorter service life
when run in/out of the well with pressure inside the tubing. To mitigate this problem, typical CT
applications avoid moving the CT back and forth across the gooseneck (i.e., bending it) when
high pressures are applied. That approach would not be practical for the HP-CT drilling system,
that is, movement of the string with HP would be required as the bit advances.

DE-FC26-97FT33063 - 12 - Maurer Technology Inc.

Final Report
The dual-flow system was not pursued beyond the concept phase during Phase I. During early
design review meetings, the Advisory Board determined that several critical weaknesses existed
and that the system would be unreliable. Primary issues included:

1. The swivel that would be required downhole to direct HP fluid into the center of
the motor would present major challenges. Designing a positive seal would be
very difficult, and if a labyrinth-type seal were used, the high rotary speed and
eccentric motion would make seal construction and maintenance very difficult.
This requirement would likely result in a short service life for the motor.

2. Within a double string of CT, an internal slip joint would be required to

compensate for variations in lengths of the inner CT string relative to the outer
CT string (i.e., slack of the internal string). Changes in relative lengths in
concentric CT strings are expected and can be caused by various factors
including internal pressure and geometry of the strings as they are spooled on
and off the reel. Field experience with concentric CT strings has demonstrated
that this effect can be significant. A required telescoping slip joint would
dramatically increase the complexity of the swivel as well as the joint between
the motor and end of the CT string.

3. It would be very difficult to monitor the service condition of the inner string of CT.
It is not well established how the inner string would age with respect to stress
and fatigue. There is no convenient method to accurately monitor the inner string
or measure it to determine its useful remaining service life.

4. The team also foresaw challenges with the LP fluid, which would need to be
routed through the bearing pack and into LP nozzles on the bit. This would
require a complicated dual-flow system within the bit.

While the dual-flow CT system was analyzed and deemed to be technically feasible, the
Advisory Board concluded that the disadvantages outweighed the advantages, and
recommended that this concept not be pursued at this time.

2.3.3 Single-Flow CT System

The second concept considered by the project team in Phase I was a single-flow CT-based
system (Figure 15). This approach uses a conventional design with a single string of CT to
pump HP fluid down through a mud motor and out the bit. This system has the important
advantage of eliminating problems associated with a swivel above the mud motor and a bit with
dual flow paths. However, challenges with this single-string approach include:
1. Requires a motor that can operate at 10,000 psi
2. Imposes limits on the total volume of fluid that can be pumped due to CT ID
3. Requires large-OD CT to be run across the gooseneck under HP (thereby greatly
accelerating fatigue damage to the CT string and shortening its service life)

DE-FC26-97FT33063 - 13 - Maurer Technology Inc.

Final Report
 CT Reel
Injector

HP Pump
Returns

Returns
HP Flow

Single-Flow HP Motor
(Solid Rotor)

Conventional
Coiled Tubing

Single-Flow HP Bit

Figure 15. Single-Flow CT Drilling System

After the single-flow design was reviewed by the Advisory Board, it was selected as the
preferred system for detailed development in the project. At the outset, CT service life was
foreseen as a critical issue. Calculations from MTI’s proprietary CT engineering software and
data produced by Roderick Stanley of Quality Tubing indicated that conventional CT would fail
after only a few cycles in/out of the well. Consequently, improved material properties for CT
were identified as an area for investigation during Phase I along with HP mud motors and bits.

2.4 Equipment Developed for HP Drilling

2.4.1 HP Motors
During Phase I, HP motors were designed (Figure 16) for use with the single-flow CT drilling
system. Prototype motor seals and bearings were successfully tested. During Phase II, HP
motors were manufactured and used to drill rocks at rates of up to 1600 ft/hr compared to 300
ft/hr for conventional motors and 150 ft/hr for rotary drills.

DE-FC26-97FT33063 - 14 - Maurer Technology Inc.

Final Report
 Drive Shaft
PDC Thrust Bearings PDM Multilobe 2⅜” CT
Rotor/Stator

Titanium
HP Jet Bit Radial Bearings/ Flex Shaft Filter
Flow Restrictors
Figure 16. Design of HP Mud Motor

This HP drilling motor operates at pressures up to 10,000 psi and typically drills at penetration
rates of three to five times faster than rotary drills in most sedimentary rocks. It is capable of
delivering sufficient mechanical power to drill as fast as conventional motors in hard rocks that
cannot be eroded by HP jets.

Several special features and modifications were needed for mud motors for operation in a HP
environment (described in Section 3.2.1). HP mud motors were developed with modifications
required to operate with the CT deployed system (described in Section 2.3). These motors were
extensively tested in the laboratory to measure performance and reliability. Three different sizes
of tools were developed:

¾ 4¾-in. (121-mm) tool for use with 6-in. (152-mm) bits

¾ 3⅛-in. (79-mm) tool for use with 4¾-in. (121-mm) bits

¾ 111/16-in. (43-mm) tool for use with 2½-in. (64-mm) bits plus a modified version
with a gear box to slow the rotary speed for use with side-cutting and cleaning
jets

Performance data for these motors were measured at the Drilling Research Center using the
dynamometer motor test stand for a complete tool fitted with a bearing pack using diamond
thrust bearings.

2.4.2 HP Jet Kerf Bits

Special bits for HP jet kerf drilling were also
manufactured for use on this project. These were
developed based on MTI’s significant experience
gained through previous projects and R&D
efforts. Figure 17 shows an older HP bit
developed by MTI based on modifying a Reed
Tool PDC bit (see Section 1.3 for more
information).

Nozzle placement is critical for efficient drilling

action of these bits. For the modified Reed Tool
bit, it was not possible to reposition the nozzles;
Figure 17. HP Bit (8-in.) Previously
Developed by MTI
DE-FC26-97FT33063 - 15 - Maurer Technology Inc.
Final Report
existing nozzles were only resized to produce HP jets to erode the rock face. This bit included
sufficient existing LP nozzles to allow its conversion to a HP bit.

Two types of bits were manufactured for use on this DOE project—test bits that were intended
for drilling tests in the laboratory and field bits for drilling in wells. These results are described in
Section 3.2.2.

2.4.3 CT String
The initial design of the HP drilling system was based on the use of CT (coiled tubing) as the
deployment string. This technology offered many advantages at the onset of this project. (More
information is presented in Appendix F.) Previous developmental efforts for HP drilling systems
were plagued by problems with leaks at drill pipe connections. HP fluid flow caused erosion and
wash-outs at the joints. CT, now commercially available in sufficiently large diameters, would
eliminate the multiple joints in a conventional drill string. In addition, high pressures created for
jet drilling presents an important safety concern that must be addressed. CT rigs and crews
routinely deal with HP fluids during many operations that are typical for CT, such as fracing and
scale clean-out. Safety concerns and equipment to address them are already in place.

The fundamental disadvantage of using CT in HP operations is its limited fatigue life due to
plastic bending. As the tubing is spooled on and off the reel and across the guide arch
(“gooseneck”), it undergoes plastic yielding. This causes CT to fail from fatigue damage after a
relatively few cycles in/out of the well. In addition, high internal pressures cause fatigue damage
to accumulate much more rapidly than at lower internal pressures. For example, Figure 18
shows how the service life of 1¾- and 2-in. CT is reduced as internal pressure is increased.
These data show how CT life at pressures around 10,000 psi is dramatically reduced with this
particular CT material.

200
1¾” CT
Fatigue Life (trips)

2” CT
150

100
QT-1000
Yield = 100 ksi
50

0
6,000 9,000 12,000
Internal Pressure (psi)
Figure 18. CT Fatigue Life with Internal Pressure

In an effort to reduce the severity of this problem, a major manufacturer of CT (Quality Tubing,
Inc.) was enlisted to join the project and investigate new tubing materials for the conditions
foreseen for HP-CT drilling. They successfully developed and fabricated a string of CT based on

DE-FC26-97FT33063 - 16 - Maurer Technology Inc.

Final Report
a high-strength (120,000-psi yield strength) material. These developments are summarized in
Section 3.2.3.

2.4.4 CT BHA Components

The bottom-hole assembly (BHA) for drilling with CT is comprised of a number of components
that protect the assembly, allow operations in underbalanced conditions, and allow the CT to be
disconnected in an emergency. When this development was initially undertaken, none of the
motor BHA components available commercially were rated for operation at 10,000 psi. MTI
contracted with a supplier of these components to design and build special sets of required
components for use with the different motors being developed. However, the first company
failed to deliver designs or components as promised and the team was forced to seek an
alternative solution because a test using CT had been scheduled.

Several CT equipment suppliers were contacted for equipment rated at 10,000 psi. Only
Weatherford responded positively. They believed that their equipment, while rated at 5,000 psi,
could safely work at 10,000 psi. Weatherford also agreed to participate in the project by
providing, at no cost, the BHA components for testing at 10,000 psi. Their equipment was tested
at the Drilling Research Center at 10,000 psi. No failures occurred and inspection after the test
indicated no damage from high pressures. This same equipment was then used for the CT-
based field tests.

2.4.5 Fluid Swivel for CT Rig

A special HP swivel is another critical component needed to deliver the drilling fluid from the
pump to inside the CT through the reel as it rotates. At the beginning of this development
project, most CT swivels were only rated to 5,000 psi. During the course of the project Hydra-
Rig (Conroe, Texas) introduced a commercial 15,000-psi swivel (Figure 19).

Figure 19. Hydra-Rig HP-CT Swivel

Tests of this HP swivel for CT are described in Section 3.2.5.

DE-FC26-97FT33063 - 17 - Maurer Technology Inc.

Final Report
2.4.6 HP Jointed-Pipe System
After the project team conducted one field test of the CT-based drilling system, it was decided to
conduct further tests using jointed pipe. This testing was performed at the DOE’s Rocky
Mountain Oilfield Testing Center (RMOTC) in Wyoming at the Tea Pot Dome field. The first step
at RMOTC was to upgrade the rig so that it could be operated at 10,000-psi surface pressure.
Upgrading the rig required replacing the piping running from the pumps to the rig, including the
standpipe and rotary hose. This included a HP rotary swivel and a HP rotary hose. These were
obtained from commercial suppliers. The swivel (Figure 20) was manufactured by Western
Rubber (Texas) and the hose by Nephi Rubber Products (Nephi, Utah). Both of these items
were available commercially and were not special-order.

Figure 20. HP Rotary Swivel used on RMOTC Rig

A new HP pump was also added to the rig. This pump, the most expensive single item, was a
Gardner Denver 1100-hp model HD2000 plunger pump powered by a 2508 DI TA 1050-hp,
1800-rpm Caterpillar diesel engine (Figure 21).

Figure 21. Gardner Denver HP Plunger Pump

DE-FC26-97FT33063 - 18 - Maurer Technology Inc.

Final Report
Another critical area of concern was the drill pipe and tool joints. During previous HP drilling
operations the tool joints leaked and/or washed out (see Section 1.3). This problem had to be
prevented and was addressed by placing O-rings in the thread relief groove. A rental string was
used that incorporated recently developed double-shoulder tool joints manufactured by Grant
Prideco (Figure 22). (The pipe was rented from Weatherford and brought in from California.)
These advanced tool joints were designed to seal HP gas for use in underbalanced drilling. This
special drill pipe was used successfully on this test, with no leaks or washouts observed. The
drill pipe was 3½-in. OD, 13.3 lb/ft S-135 drill pipe with 3½-in. HT threaded connections.

Figure 22. Double-Shoulder Tool Joint for HP Tests

The original tests with the jointed-pipe drilling system incorporated the project’s 4¾-in. HP
downhole mud motor. Later, the motor failed and the project team decided to continue the
drilling tests in conventional rotary mode. This was very successful, which demonstrated that
HP jet kerf drilling can be accomplished with conventional modifications to a standard rotary rig.

2.5 Equipment for Catoosa Field Tests

Introduction

Two series of field tests of HP jet kerf drilling systems were completed. These were performed
at the:
1. Gas Technology Institute (GTI) Catoosa test facility in Tulsa, Oklahoma, in
February 2002 (described below)
2. Rocky Mountain Oilfield Testing Center (RMOTC) in Casper, Wyoming, in March,
April and May 2004 (three separate trips) (described in Section 2.6)

These facilities offer the essential ability to test equipment in actual drilling conditions. Without
the opportunity to test at these locations, this development could not have proceeded as far as it
did. Understandably, commercial drilling companies are reluctant to test new equipment or
systems in their ongoing field operations due to the high costs associated with any failure. Even
small problems added to normal operations by the testing protocol can be very costly if they
result in an unnecessary trip or any loss of efficiency.

DE-FC26-97FT33063 - 19 - Maurer Technology Inc.

Final Report
Tests at the GTI Catoosa facility used CT to convey the bottomhole assembly (BHA) and
highlighted problems with that method.

The RMOTC tests used conventional jointed pipe to convey the BHA downhole. At first, a HP
mud motor was run on jointed pipe. Then, after the motor failed, the operation was continued
using conventional rotary drilling. This test demonstrated that HP drilling can be performed by
most rigs with only a few modifications.

Field Test Plan

The first field test of the system was conducted at GTI Catoosa using CT to convey the BHA. BJ
Services Company was participating in the project as the ultimate commercializer of the new CT
drilling systems, and thus provided CT equipment and expertise at Catoosa. Tests were
conducted over a five-day period from February 11–15, 2002. A log of activities at Catoosa is
presented in Appendix B.

A detailed test plan was prepared prior to the test. The plan listed one primary and two
secondary objectives. The primary objective was to test the jet kerf drilling system starting with
the largest motor/bit (4¾-in. motor with 6-in. bit) and progressing down in size (3⅛-in. motor with
4¾-in. bit, 111/16-in. motor with 2-in. bit). Only after the primary objective had been completed
were the secondary objectives to be pursued—testing the side-cutting jet and the QT-1200 high-
strength CT string. BHA designs and equipment lists were provided in the test plan along with a
step-by-step procedure for conducting the test.

MTI Equipment

Maurer Technology Inc. (MTI) was responsible for providing BHA equipment including: (1) bit,
(2) HP mud motors, (3) CT motor head assembly, and (4) drill collars. The bits and motors were
developed under this project and the motor-head assembly consists of components typically run
with CT when a downhole motor is used. These components were proof-tested to 10,000 psi in
preparation for this field test. (Previously, these were only rated to 5,000 psi.) The drill collars
were provided as a back-up solution in the event that the CT injector could not provide enough
weight on bit to drill at substantial rates of penetration.

MTI also provided HP mud pumps (Figure 23) as a back-up to those supplied by BJ Services.
These MTI pumps were to be used as supplemental or emergency flow should the BJ pumps
fail or be unavailable.

DE-FC26-97FT33063 - 20 - Maurer Technology Inc.

Final Report
 Figure 23. MTI HP Mud Pump

MTI also supplied and tested a special set of tongs for making up the BHA components (Figure
24). One of the disadvantages of using CT is the absence of a standard rotary table and make-
up tongs for assembling the BHA. The special tongs worked well on items with identical
diameters; however, even small differences in diameter caused the tongs to slip. Although
making up the assembly with these tongs was a slow process, these tongs were essential to
this test procedure.

Figure 24. Make-Up Tongs for CT BHA

These experiences highlighted the need for an effective means to make up BHAs on CT.
Assembling the first BHA consumed almost the entire first day of testing. Even after the workers
had practiced using the tool, the fastest time for making up the BHA was a half day. If HP-CT
drilling is to be economic, this problem must be solved. A small rotary table and derrick with
lifting capacity are most likely needed.

Figure 25 shows the HP-CT BHA being lifted for insertion into the well. The crane at Catoosa
was very valuable for this process. This capability represents an additional crane as compared
to typical CT jobs (and an added expense). However, without a derrick, this was the only way to

DE-FC26-97FT33063 - 21 - Maurer Technology Inc.

Final Report
lift the BHA into place. Different procedures were tested during the operation. In Figure 25 the
BHA (motor and collars) was assembled on the ground and then lifted into the well. In other
tests all components were individually picked up and assembled in the well.

Figure 25. Lifting BHA for Insertion into Well

GTI Catoosa Equipment

The GTI Catoosa test site provided a well and wellhead, and support equipment such as a
forklift and crane. This equipment and office space are included in the daily rental charge.
Figure 26 shows the well head being prepared.

Figure 26. Well Head Preparation at Catoosa

BJ Services Equipment

BJ services provided all CT equipment required for these field tests. This equipment set-up
(Figure 27) was relatively elaborate due to the requirements for HP and high flow rates. The CT
unit includes the reel (Figure 28), control cabin (Figure 29), injector and blowout preventer
stack. Figure 30 shows the CT being rigged through the gooseneck and then into the injector.

DE-FC26-97FT33063 - 22 - Maurer Technology Inc.

Final Report
 Figure 27. HP-CT Equipment for Field Test

Figure 28. CT Reel

Figure 29. CT Control Cabin

DE-FC26-97FT33063 - 23 - Maurer Technology Inc.

Final Report
 Figure 30. Rigging up CT through Gooseneck

BJ provided two pumps (Figure 31)—a conventional frac pump (part of most CT jobs) and a
large frac pump. The standard pump could not supply the required fluid flow rate at HP for the
4¾-in. motor. Its capacity was adequate for the smaller HP motors; however, the 4¾-in. motor
required 200 gpm. At 10,000 psi, this equates to almost 1200 hydraulic horsepower, a value
beyond the limit of the conventional frac pump. BJ’s large (2000-hp) frac pump was capable of
providing HP fluid at high flow rates as required.

Figure 31. BJ Frac Pumps

2.6 Equipment for RMOTC Field Tests

The second series of field tests was conducted at the Rocky Mountain Oilfield Testing Center
(RMOTC) near Casper, Wyoming on the Navel Petroleum Reserve No. 3 (the infamous Teapot
Dome Field) (Figure 32). This DOE-run facility allows testing of oilfield equipment in actual
drilling conditions.

DE-FC26-97FT33063 - 24 - Maurer Technology Inc.

Final Report
 Figure 32. RMOTC Field Test Site

While similar to the GTI Catoosa test facility, RMOTC is much larger and provides the
opportunity to drill at much greater depths (up to 7,000 ft). A number of different lithologies are
encountered in a typical wellbore, as summarized in Table 1.

It was necessary to implement several modifications to the RMOTC drill rig (Figure 33) prior to
conducting tests of the HP drilling system. In addition, a HP mud pump had to be provided as
auxiliary equipment. RMOTC purchased a new pump to add HP capability to their facility and to
conduct this test. Modifications to the rig were to the mud-handling system and consisted of
three major items. These were:
1. Rig piping had to be obtained from the mud pump to the rotary hose
2. Rotary hose had to be upgraded to handle high pressures
3. Rig swivel had to be upgraded for operation at 10,000 psi

More discussion of these items is presented in Section 2.4.6.

Figure 33. RMOTC Drill Rig

DE-FC26-97FT33063 - 25 - Maurer Technology Inc.

Final Report
 Table 1. RMOTC Formations
KB Thick ASL
Formation Member
(ft) (ft) (ft)
Steele Shale Shannon A 247 80 4868
Steele Shale Shannon B 332 145 4783
Steele Shale Telegraph Creek 477 132 4638
Steele Shale Brittle 609 393 4506
Steele Shale Fishtooth 1002 516 4113
Steele Shale Grey Dust 1518 102 3597
Steele Shale Ardmore 1620 125 3495
Niobrara Shale White Specks 1745 244 3370
Niobrara Shale Smokey Gap 1989 219 3126
Carlisle Shale 2208 242 2907
Frontier 1 Wall Creek 2450 384 2665
Frontier 2 Wall Creek 2834 254 2281
Frontier 3 Wall Creek 3088 267 2027
Mowry Shale 3355 237 1760
Muddy Sand 3592 18 1523
Thermopolis Shale 3610 133 1505
Dakota Sand 3743 72 1372
Lakota Conglomerate 3815 7 1300
Morrison 3822 213 1293
Sundance 4035 82 1080
Sundance Lak 4117 95 998
Sundance Lak Evaporite 4212 12 903
Sundance Huelett Sand 4224 4 891
Sundance Stockdale Beaver Shale 4228 43 887
Sundance Canyon Springs Sand 4271 82 844
Chugwater/Crow Mtn 4353 86 762
Chugwater/Alcova 4439 22 676
Chugwater/Red Peaks 4461 590 654
Goose Egg 5051 167 64
Goose Egg Forelle 5218 73 -103
Goose Egg Minnekahta 5291 17 -176
Goose Egg Opeche 5308 34 -193
Tensleep 5342 11 -227
Tensleep Top A Sand 5353 50 -238
Tensleep Base A Sand 5403 29 -288
Tensleep Top B Sand 5432 66 -317
Tensleep Base B Sand 5498 47 -383
Tensleep Top C Sand 5545 20 -430
Tensleep Base C Sand 5565 95 -450
Amsden 5805 240 -690
KB Elev = 5115 ft ASL

The cost of these upgrades to the RMOTC rig was minimal (Table 2). It is noteworthy that these
upgrades were readily performed on an older rig, clearly indicating that adding HP capability is
not overly expensive nor are the costs an impediment to implementing HP drilling.

DE-FC26-97FT33063 - 26 - Maurer Technology Inc.

Final Report
 Table 2. Cost of Upgrades to RMOTC Rig for HP Operation
Description Cost
HP Kelly Hose rated at 10,000 psi $16,200
HP 150-ton Drilling Swivel $33,500
HP Swivel Joints (Chicksans) $10,600
Stand Pipe Master Valve 3 / " (15,000 psi)
1
16 $11,800
Stand Pipe Fill Up Valve 2 / " (15,000 psi)
1
16 $5,300
Gooseneck, unions, hardline, tees, and misc. $16,700
Welding and X-ray $1,650
Labor $10,000
TOTAL: $105,750

The new HP rotary hose (Figure 34) did present some problems. The first new hose leaked at
one fitting, and was returned to the manufacturer for repair. However, after the hose was re-
installed on the rig, the joint continued to leak. A complete new hose was then supplied and
worked well throughout the test sequence.

Figure 34. HP Rotary Hose

The swivel also had to be upgraded. A commercially available HP swivel (see Figure 20 on
page 18) was purchased and found to work well. The packing and wash pipe had to be replaced
at the beginning of the HP work because sand had collected at the edge of the packing during
conventional drilling and was being forced under the packing when HP was applied. While not
enough evidence was obtained to confirm it, the team theorized that this problem could have
been avoided by greasing the packing at regular and more frequent intervals.

In previous tests of HP drilling systems by various companies, leaks at the tool joints have been
a major problem. Leaking HP fluid quickly results in washouts that, at best, require stopping the
drilling process and tripping the drill string out of the hole. At worst, washouts result in lost
equipment downhole and a fishing job. For RMOTC, the team rented a string of pipe with Grant

DE-FC26-97FT33063 - 27 - Maurer Technology Inc.

Final Report
Prideco HT-38™ tool joints (see Figure 22 on page 19), which included double shoulders. The
tool joints performed well and did not leak during HP field operations.

No special equipment was ordered for the mud system. Primary cleaning was via the shale
shaker on the rig. The team was concerned that the small nozzles on the bit (0.080–0.100 in.)
would become plugged. Steps were taken to avoid problems. Prior to the start of HP drilling, the
mud tanks were cleaned (Figure 35) and fresh mud prepared for HP operations.

Figure 35. Cleaning Mud Tanks

Drill-pipe screens (filters) were placed in-line at the surface and immediately above the bit.
Figure 36 shows two bit screens. The upper screen broke open after the mud motor failed,
which caused the filter screen to be filled with rubber debris.

Figure 36. Bit Filter Screens

The most expensive piece of equipment obtained for these tests was a new HP pump. RMOTC
purchased a Gardner Denver HD 2000 pump (see Figure 21 on page 18) with 3.75-in. plungers.
The pump is powered by a 3508 Caterpillar Diesel Engine capable of producing 1100 hp. The
engine is coupled to the pump via an Allison 8962 five-speed transmission. The pump can
produce 192 gpm at 8800 psi. This flow rate is sufficient to achieve increased penetration rates
in many formations.

DE-FC26-97FT33063 - 28 - Maurer Technology Inc.

Final Report
 3. Results and Discussion

3.1 Summary of Project Activities

Accomplishments for this project can be categorized into three distinct areas:

1. Design and manufacture of specialized prototype HP jet kerf drilling equipment

based on the concepts developed in Phase I of the project

2. Laboratory testing of the prototype drilling system and confirmation of its

performance in Phase II of the project

3. Field testing the equipment performed in Phase III of the project and later in a
Phase II(B) effort.

Field testing of this equipment demonstrated that, unlike many other engineering developments,
tools for oil and gas drilling often require staged prototype development under field conditions. It
was found that laboratory testing was not as effective as field testing in shaking out system
performance. In recognition of these lessons (demonstrated clearly in Phase III), the DOE
allowed the project to continue by stepping back from Phase III field testing (considered the final
step prior to commercialization) to a Phase II(B) effort where prototype development and
laboratory testing were extended to encompass field testing conditions. This allowed the team to
operate the equipment under actual field conditions for extended periods, thereby revealing
areas that required further development. Various weaknesses in tool design were not (and
possibly could not be) observed in conventional laboratory tests. The project team found that
the field must be the final laboratory for these types of downhole drilling equipment and tools.

In addition to these efforts, an economic model was constructed to illustrate commercial

feasibility of developing a HP infrastructure to support HP jet kerf drilling. While simple, the
model showed the costs associated with such a development, potential savings, and how
service companies could recover their investments.

Phase I—Concept Development

The objective of Phase I was to demonstrate engineering feasibility of the HP-CT drilling
system. This included theoretical analyses, component design, and review of potential barriers
to field application through meetings with subcontractors, service companies, and operators.

A chronology of Phase I activities follows:

1. An industry Advisory Board was formed to guide the project. This was comprised
of experts from MTI, operators, a CT service provider, and a CT manufacturer.

2. Concepts for the deployment of HP drilling bits using CT were developed and
expanded.

3. Project engineers and the Advisory Board evaluated concepts for CT-based jet
kerf drilling system.

DE-FC26-97FT33063 - 29 - Maurer Technology Inc.

Final Report
 4. Mud motor designs were developed and analyzed for applications with HP fluids.
These included:
a. Motors for single-string CT deployment
b. Motors for dual-string (concentric) CT deployment
c. Special HP swivel for CT and mud motor for dual-string CT system
d. Expansion (slip) joint for inner CT string for dual-string CT system

5. The Advisory Board then evaluated program alternatives based on all

engineering studies. The system recommendation for development and testing
was a single-string CT running a HP motor and combination PDC/jet bit.

6. The Phase I Final Report was prepared and submitted to DOE. A proposal for
continuing to Phase II and III was also submitted and accepted by DOE.

Phase II(A)—Develop and Test HP Motors and Bits

The objective of the initial Phase II effort (referred to here as Phase II(A)) was to manufacture
and laboratory-test HP-CT drilling system components. Detailed machine drawings were
prepared and prototype components manufactured. Reliability and performance of the system
components, including use under hard rock drilling conditions, were to be tested. Next, the total
drilling system was to be assembled and laboratory-tested in blocks of sandstone and limestone
to measure performance and reliability.

A chronology of Phase II(A) activities follows:

1. A 3⅛-in. HP mud motor was designed and developed. Its target hole size was
4¾ inches. This was to be the principal size of tool for the project.

2. A 111/16-in. HP mud motor was designed and developed based on a target

application of through-tubing drilling. Its target hole size was 2 to 2⅞ inches.
Applications of this small system were later expanded to include:
a. Cleaning scale from casing and tubing
b. Drilling hardened cement out of drill pipe
c. Jetting slots into formation for production enhancement (by bypassing
skin damage)
A transmission was also added to the motor for operation at low rotation rates.

3. HP mud motors were tested in the laboratory. Dynamometer tests included basic
life tests (50 hours). Motors were modified to correct any problems and retested.

4. HP mud motors were tested in the laboratory for simulated drilling. Several types
of rock samples were drilled with various combinations of HP motors and jet bits.

5. Many tests were conducted with the HP 111/16-in. motor. The new and promising
system applications for cement clean-out and production enhancement
(bypassing skin damage) were pursued via multiple series of tests in the
laboratory and yard.

DE-FC26-97FT33063 - 30 - Maurer Technology Inc.

Final Report
 6. Discussions of the Advisory Board determined that successful commercialization
of HP jet kerf drilling technology depends on development of larger tools for use
with bit sizes that are more typical in the industry. A bit size of 6 in. was selected.
Consequently, a 4¾-in. mud motor was designed and developed. This motor was
designed, built, tested and modified.

7. The team tested and confirmed that CT “motor head” assemblies from at least
one manufacturer could be adapted for this system and would be available for
use in field tests.

8. Based on promising laboratory test results, the CT systems were deemed to be

ready to test in the field during Phase III.

Phase III—Field Testing

The initial objective of Phase III was to field-test the prototype CT drilling system and
demonstrate its performance for increasing drilling rates and reducing drilling costs in
preparation for commercializing this system.

A chronology of Phase III activities follows:

1. The project team conducted drilling tests with the system at the GRI Catoosa
facility. Various problems plagued the operation over the scheduled test period.
As a result, no open-hole drilling was successfully conducted.

2. Experiences at Catoosa clearly illustrated the difficulties with CT deployment and

the high costs of CT equipment and operations.

3. The test sequence was halted due to the inability to run CT to the bottom of the
well. The actual cause of this failure was significant ballooning (diametric growth)
of the CT string that prevented the string from passing through the stripper
elements. This condition was not discovered until the CT was inspected several
days after operations were halted.

4. MTI determined that the project effort could not continue due to (1) high cost-
share requirements and (2) lack of a commercialization partner for the HP-CT
system. MTI decided to end the project at this point (pending a change in project
design/focus).

Phase II(B)—Additional Prototype Development

Based on significant challenges encountered in Phase III field tests, the DOE and MTI agreed
that more development work and laboratory testing of components and subsystems were
needed. The project was accordingly returned to a Phase II status.

A chronology of Phase II(B) activities follows:

1. John Rogers (DOE Project Manager) worked with DOE’s RMOTC test facility to
conduct additional testing of HP drilling systems. This included funding of
equipment upgrades needed for HP drilling at RMOTC.

DE-FC26-97FT33063 - 31 - Maurer Technology Inc.

Final Report
 2. MTI worked with RMOTC personnel to develop specifications for the required
upgrades for HP operations and helped RMOTC obtain a HP pump.

3. MTI and RMOTC developed a Test Plan for testing the 4¾-in. motor and bit
developed in Phase II(A).

4. MTI and RMOTC signed a cooperative research and development agreement

(CRADA) for conducting high-pressure tests (see Appendix C).

5. RMOTC acquired a HP pump and upgraded its rig for HP operations.

6. MTI and RMOTC worked together to locate and rent a string of specialized drill
pipe that has double-shoulder connections for HP operation.

7. A series of tests was conducted at RMOTC. The initial test design was to drill
with HP motor on jointed pipe rather than CT.

8. After the HP motor failed, another approach was tested—conventional rotary

drilling with a HP bit. This test was very successful with high ROPs recorded.

9. During rotary drilling tests, HP bits exhibited short life due to erosion of the bit
body occurring near the point fluid enters the nozzle. The project team then
developed a concept to reduce erosion and increase bit life, but lack of
participation (and cost sharing) by commercial companies resulted in the project
being terminated.

10. A Final Report describing Phases II(A), III and II(B) was prepared for submission
to DOE (the present report).

3.2 Equipment Developed for HP Drilling

3.2.1 HP Motors
During Phase I, HP motors were designed for use with the single-string CT drilling system (see
Figure 16 on page 15). Prototype motor seals and bearings were successfully tested. During
Phase II, HP motors were manufactured and used to drill rocks at rates of up to 1,600 ft/hr
compared to 300 ft/hr for conventional motors and 150 ft/hr for rotary drills.

Several special features and modifications were needed to design mud motors for operation in a
HP environment. The fit between the rotor and stator is a critical parameter that must be
carefully adjusted. If there is too much interference, the rotor will compress the stator elastomer
too deeply, which will in turn cause excessive heat build-up and shorten the life of the
elastomer. Conversely, If the fit does not compress the stator rubber sufficiently, the pressure
drop of the seal between the rotor and stator will be reduced, and the motor will not be able to
develop rated power.

High pressures cause the stator housing diameter to increase and the stator elastomer to
compress. As a first step, the stator housing must be checked for excess stress. Some motor
housings can be used safely at HP; others must have their wall thickness increased to support

DE-FC26-97FT33063 - 32 - Maurer Technology Inc.

Final Report
the increased stress. The latter was the case for our 3⅛-in. motor. The stator configuration was
designed for a conventional 2⅞-in. motor housing. However, to maintain stresses in a safe
range, it was necessary to increase housing diameter to 3⅛ inches.

After the stress level is checked, the expansion of the housing dimensions is calculated at the
operating pressure (10,000 psi for this design). Fit between the rotor and stator is then adjusted
based on this expansion and the expected compression of the stator elastomer. The exact
adjustment factor used is based on previous experience of the motor designer after considering
all operational parameters.

The seal for mud motor bearing packs is a critical

component. For HP operations, the team decided that a
leaking bearing pack (i.e., uses a portion of the fluid to
cool and lubricate the bearings) was the best solution to Upper Restrictor
avoid the need to seal against 10,000 psi. Sealing against
pressures that high presents many challenges; for
example, elastomer seals work well statically but in a
dynamic environment exhibit drag on mating parts and
have short lives. Metal-to-metal face seals can overcome Housing
the drag problem but are very complicated and expensive. Fluid
Flow Shaft
The team determined that an effective labyrinth seal
(Figure 37) would be necessary to support the large
pressure drop. A number of laboratory tests were
conducted on carbide labyrinth seals with close tolerances
and optimized grooves to maximize pressure drop while Lower Restrictor
minimizing seal length. The appearance of the labyrinth
seal is deceptively simple. However, maintaining flow at
acceptable levels at 10,000 psi is difficult, and erosion
occurs very quickly, destroying the seal. Development and
successful testing of this HP labyrinth seal is one of
several major accomplishments of the project. Figure 37. HP Labyrinth Seal

Several different seals were produced with varying groove depths and spacings. These grooves
were to act as flow interrupters to cause turbulence in the flow, thereby increasing the pressure
drop across the seal. A series of laboratory experiments was conducted to determine the
optimal gap between the inner and outer labyrinth members and the spacing of flow interrupter
grooves (Figure 38). This optimization process provided the maximum pressure drop across the
shortest labyrinth possible. The grooves were placed on the inner member (Figure 39) because
it was less expensive to grind grooves on the outside of a sleeve.

DE-FC26-97FT33063 - 33 - Maurer Technology Inc.

Final Report
 16

14 Four 5” Labyrinths w
10,000 psi 12.1
12

Flow Rate (gpm) 10

8.1
8

0
0.004" 0.006"
Leakage Clearance (w)
Figure 38. Flow Rate through Labyrinth Spacing

Figure 39. Labyrinth Sleeve

The flex shaft is another important component of mud motors that requires adjustment for HP
operations. The power section of a standard Moineau mud motor rotates eccentrically. This
motion must be converted to regular (centered) circular motion at the bearing pack. A flexible
shaft is often used to connect the output of the power section to the input of the bearing pack
and convert eccentric to rotary motion. In HP motors, this process is complicated by the
pressure drop, which causes very high thrust loads that must be carried by the flex shaft. To
support these loads, titanium flex shafts (Figure 40) were incorporated into the HP motors built
under this project.

Figure 40. Titanium Flex Shaft

DE-FC26-97FT33063 - 34 - Maurer Technology Inc.

Final Report
Titanium flex shafts have important advantages as compared to conventional flex shafts, which
use mechanical components similar to a U-joint to allow the shaft to bend during rotation. These
conventional mechanical components can fail due to the high loads imposed when operating at
HP. In titanium flex shafts there are no moving parts to wear; as a consequence, reliability is
excellent. No seals are required in titanium shafts to prevent particles from damaging the
mechanical components used in conventional flex shafts. Although initial manufacturing costs
for titanium shafts are relatively high, overall operational cost is low because the shaft can be
used many times and will not limit or terminate a run. Care is needed in designing the shaft to
maintain stresses below the fatigue endurance limit. These stresses are controlled by adjusting
the length of the shaft. The need to reduce stresses can result in a slightly longer motor, but this
is normally not a concern (except in short-radius drilling). If the flex shaft is too stiff, it can
shorten stator life. It is very important that the shaft be as flexible as possible while maintaining
its length to a reasonable limit and that any buckling tendency be avoided.

The thrust bearings are another component subjected to increased loading under HP
operations. Conventional mud motors use ball thrust bearings (Figure 41). Several bearings are
often stacked using springs to form a parallel configuration to react to high drilling loads
encountered in mud motors. Two sets of bearings are needed—one set to absorb loads when
the tool is off bottom (or the bit weight is lower than the down thrust) and one set for on-bottom
loads when bit weight is higher than down-thrust loads. Ball bearings are normally used
because they are more tolerant to debris and solids than roller bearings. Roller bearings will
crack if they roll over a grain of sand while loaded. A ball bearing will either push the sand out of
the way or roll over it and continue functioning. Balls used in these motor bearings are very
tough compared to most applications. The races are usually custom-made and are carburized
so that the surface is very hard and wear-resistant.

Ball Bearing PDC Bearing

Figure 41. Bearing Types for HP Motor

A HP mud motor was tested with stacked ball bearings. The results showed that the balls crack
or were crushed after only a few operating hours (see Figure 46 on page 39). Diamond thrust
bearings were then used instead of the ball thrust bearings in the HP motors. These bearings
(Figure 42) are made using polycrystalline diamond compact (PDC) cutters and brazing them
into steel rings. Both an upper and a lower ring are needed for each bearing. The PDCs ride on
one another with very low friction.

DE-FC26-97FT33063 - 35 - Maurer Technology Inc.

Final Report
 Figure 42. PDC Thrust Bearings

Diamond-on-diamond has one of the lowest friction coefficients of any material: 0.1 clean and
dry and 0.05 lubricated. This type of bearing can support considerably higher loads than a ball
bearing (Figure 43). A PDC bearing is suitable for use in a leaking bearing pack. It can also
operate in an environment with high solids and not experience accelerated wear.

20000
100 Hours @ 300 rpm
16,800
Load Capacity (lb)

15000

10000

5600
5000

0
Ball Bearing PDC Bearing
Figure 43. Motor Bearing Load Limits

In the design process for the HP motors, proprietary data were used to adjust the relationship of
the size between the rotor and stator. These elements needed to be modified from conventional
designs to allow efficient operation at elevated pressures as well as deliver the power necessary
to drill HP jet erosion resistant rocks. In case these types of rocks are encountered the drilling
motors and bits need to be able to drill ahead conventionally.

Special HP mud motors were developed with these modifications to operate with the CT-
deployed system. These motors were extensively tested in the laboratory to measure
performance and reliability. Three different size tools were developed:

¾ 4¾-in. (121-mm) tool for use with 6-in. (152-mm) bits

¾ 3⅛-in. (79-mm) tool for use with 4¾-in. (121-mm) bits

DE-FC26-97FT33063 - 36 - Maurer Technology Inc.

Final Report
 ¾ 111/16-in. (43-mm) tool for use with 2½-in. (64-mm) bits plus a modified version
with a gear box to slow the rotary speed for use with side-cutting and cleaning
jets

4¾-in. HP Motor

The largest HP motor developed was a 4¾-in. motor for drilling 6- and 6½-in. holes. This motor
was added late in the project based on suggestions from the Advisory Board. Board members
believed that this range of hole sizes presents the greatest opportunity for use of the system in
the field. Only one 4¾-in. tool was built due to budgetary constraints.

The 4¾-in. power section is a 3:4 lobe design with five stages. Operating parameters for the
power section (according to the manufacturer’s specifications) are:
¾ flow = 100–250 gpm
¾ speed = 125–390 rpm
¾ operating torque = 1265 ft-lb

These performance parameters made it a good selection for use in the HP motor. Various
modifications from the standard product line were needed to accommodate the unique operating
conditions for the HP motor. The fit between the rotor and stator was modified to compensate
for compression of the rubber and expansion of the housing when operating under HP. Analysis
of the housing showed that, even at 10,000 psi internal pressure, stresses were in an
acceptable range.

Figure 44 shows power curves for the 4¾-in. tool as measured after integration with the bearing
pack designed for this project. This motor exhibited a very high starting pressure due to a
number of losses in the system including: (1) pressure losses due to high flows through the
small bore of the drive shaft, (2) increased friction between the rotor and stator due to a tight
rotor fit after being adjusted for HP operation (note: these data were recorded at low pressure),
and increased friction due to the stiffness of the titanium flex shaft.

This high starting pressure, while problematic, is not as important in HP drilling conditions as it
would be for conventional drilling since the system pressure will be 10,000–13,000 psi as
compared to typical pressures of 2,000–3,500 psi in oil drilling. This starting pressure does
result in lower efficiencies and will need to be addressed in future designs.

DE-FC26-97FT33063 - 37 - Maurer Technology Inc.

Final Report
 350

Flow Rate = 180 gpm

300

Motor Rotary Speed (rpm)

250

200

(A)
150

100

50

0
2000 2200 2400 2600 2800 3000 3200 3400
MotorDifferential Pressure (psi)

1800

1600 Flow Rate = 180 gpm

1400

1200
Motor Torque (psi)

(B) 1000

800

600

400

200

0
2000 2200 2400 2600 2800 3000 3200 3400
Motor Differential Pressure (psi)

80 40
Horsepower
70 35

60 30
Motor Horsepower

50 25
Efficiency (%)

(C) 40 20

30 Efficiency 15

20 10

10 5

0 0
2000 2200 2400 2600 2800 3000 3200 3400 3600 3800
Motor Differential Pressure (psi)

Figure 44. 4¾-in. Motor – (A) Speed; (B) Torque; and (C) Power and Efficiency

DE-FC26-97FT33063 - 38 - Maurer Technology Inc.

Final Report
Testing showed that drag from the diamond thrust bearings was negligible at low pressures.
Figure 45 shows the difference in torque with the different bearing types on a 2⅞-in. motor. The
drag from diamond thrust bearings increases to measurable levels under HP conditions.
Diamond thrust bearings are necessary for HP operations as testing showed that conventional
ball bearings fail after only a short time under HP (Figure 46). Differential pressure between
high-torque and low-torque operation of the motor is approximately 1000 psi (very similar to that
of a conventional motor).

900

800

700

600
Torque (ft-lbs)

500

400

300

200

100

0
0 200 400 600 800 1000 1200 1400 1600 1800 2000
Motor Differential Pressure (psi)

Ball Bearings Diamond Bearings

Figure 45. Difference in HP Motor Torque—Ball versus Diamond Bearings

Figure 46. Broken Ball Bearings after HP Operation

Demonstration and successful use of these diamond thrust bearings was another important
development on this project. Without diamond bearings, mud motors could not have functioned
in this application. Successful demonstration of diamond bearings also indicates that they could
be used in conventional motors. This would allow using shorter bearing packs that are less
reliant on seals without a significant loss of power.

Tests on this motor included a 20-hour life test in the laboratory. During the first test the stator
rubber was damaged at the bottom of the power section. This was caused by the titanium flex
shaft, which transfers eccentric rotary motion of the rotor to pure rotary at the drive shaft. The

DE-FC26-97FT33063 - 39 - Maurer Technology Inc.

Final Report
flex shaft based on the original design was too stiff because it had been designed assuming an
endurance limit of 40,000 psi for titanium. The manufacturer of the titanium was contacted; they
reported that a more accurate value is 80,000 psi. The new flex shaft design based on this value
was much more flexible. A second endurance test showed that the motor could operate for 20
hours with no signs of damage.

3⅛-in. HP Motor

The second motor size developed was 3⅛ in. OD and was based on a conventional 2⅞-in.
motor. The additional diameter was needed to thicken the housing so that it could support
higher stresses from high pressures. The 3⅛-in. motor was designed for through-tubing and
slim-hole CT drilling. Figure 47 shows theoretical performance curves for this power section.

Figure 47. Theoretical Performance Curves for 3⅛-in. Power Section (R&M Energy Systems)

Speed and torque curves (Figure 48 (A)) were measured for this motor on the Drilling Research
Center’s dynamometer test stand, as well as power and efficiency curves (Figure 48 (B)). Actual
speed of this tool was slightly faster than theoretical. This could have been due to less leakage
(due to a tighter fit between the rotor and stator), but no explanation was confirmed. The torque
curves show lower than expected torque at a given differential. This could be due to pressure
losses in the bearing pack not accounted for on the theoretical curves.

DE-FC26-97FT33063 - 40 - Maurer Technology Inc.

Final Report
 p q
50 & 80 gpm
500 1000

450 900
80 gpm
400 800

Motor Torque (ft-lbs)

350 700
Motor Speed (rpm) 50 gpm
300 600

250 500
(A)
200 400

150 300

100 200

50 100

0 0
0 250 500 750 1000 1250 1500 1750 2000 2250 2500
Motor Differential Pressure (psi)

40 80

80 gpm
35 Horsepower 70

30 60

25 50
Horsepower

(B) 20 Efficiency 40

15 30

10 20

5 10

0 0
0 250 500 750 1000 1250 1500 1750 2000 2250 2500 2750 3000
Motor Differential Pressure (psi)

Figure 48. 3⅛-in. HP Motor – (A) Speed and Torque and (B) Power and Efficiency

1 / -in. HP Motor
11
16

The smallest HP motor developed was 111/16-in. diameter and was developed for clean-outs and
production enhancement. Two versions of the motor were developed. The first was similar to
the larger tools described above and incorporated diamond thrust bearings and a titanium flex
shaft to transmit power from the power section (rotor and stator) to the bearing pack. The
second design of the 111/16-in. motor included a transmission fitted between the power section
and the bearing pack that reduced the rotation rate of the bit. This was thought to be of benefit
for several reasons:

1. The dwell time of the jets in the bit on the medium being drilled would be
increased. It was determined that this would be important for clean-out of scale,
which can be very hard and tenacious. The increased dwell time would allow the
HP jet to erode the scale and more thoroughly remove it from the pipe or screen.

DE-FC26-97FT33063 - 41 - Maurer Technology Inc.

Final Report
 2. A reduced rotation rate provided a means to cut a spiral groove in the formation
for enhancing production. With a slow-turning side jet, the pitch of the spiral could
be controlled by how fast the drill sting was advanced. This has two advantages:
(1) in tight formations the pitch can be made very small so more of the formation
is exposed to the borehole, increasing the area for production and (2) in hard
formations the dwell time of the jet against the rock can be increased by moving
the drill string slowly.

3. This allows the jet to cut a deeper groove. In softer, more productive formations,
the drill string can be moved quickly, creating a longer spiral and increasing
production, but minimizing the operation time.

The manufacturer’s published specifications and performance curves for the 111/16-in. motor are
presented in Figure 49.

Figure 49. 111/16-in. Motor – Manufacturer’s Performance Curves (R&M Energy)

Performance data were also measured at the Drilling Research Center using the dynamometer
motor test stand for a complete tool fitted with a bearing pack using diamond thrust bearings.
The data shown in Figure 50 are for lower pressure operation. The data indicate that, when
configured with diamond thrust bearings, speed of the motor is reduced slightly when compared
to the theoretical curves, and speed falls off very quickly as differential pressure is increased.
This indicates drag, which could be from the bearings or friction from the increased interference
between the rotor and stator. Increased interference is added to account for expansion of the
stator section and compression of the rubber when operated under HP conditions.

DE-FC26-97FT33063 - 42 - Maurer Technology Inc.

Final Report
 400 160

350 140

40 gpm
300 120

30 gpm
250 100

Torque (ft-lbs)
Speed (rpm)

200 80

20 gpm
150 60

100 40

50 20

0 0
0 100 200 300 400 500 600 700 800 900 1000
Motor Pressure Differential (psi)

Figure 50. 111/16-in. Motor Performance Data (Measured)

A block of Glacier Bluff dolomite was slotted using a HP side-directed jet and the slow-speed
111/16-in. motor (Figure 51). The jet can cut slots 1–2 in. deep into the formation to improve
production. This jet design can also be used to clean out tubing, screens, and perforations, as
well as for removing scale.

Glacier Bluff dolomite with slots cut by 10,000-psi jet

Figure 51. Helical Slots Jetted with 111/16-in. Motor

3.2.2 HP Jet Kerf Bits

Special bits for HP jet kerf drilling were manufactured for use on this project. These were
developed based on MTI’s significant experience gained through previous projects and R&D
efforts. Figure 17 shows an older HP bit developed by MTI based on modifying a Reed Tool
PDC bit. Nozzle placement is critical for efficient drilling action of these bits. For the modified
Reed Tool bit, it was not possible to reposition the nozzles; existing nozzles could only be
resized to produce HP jets to erode rock. This bit included sufficient existing LP nozzles to allow
its effective conversion to a HP bit.

DE-FC26-97FT33063 - 43 - Maurer Technology Inc.

Final Report
Two types of kerfing bits were manufactured for use on this DOE project—test bits that were
intended for drilling tests in the laboratory and field bits for drilling in wells. Nozzle patterns on
the field bits are the same as test bits. The
most effective method to ensure the jet
kerfing pattern covers the entire bottom of
the hole is to drill in the laboratory with a
prototype bit and then adjust the nozzles
(size and direction) as necessary. The
design process starts by laying out, in a PDC Cutters
single plane, the jet pattern desired
(Figure 52). Bit Head
Weld
Bit Body
Kerfs must be cut at regular intervals
across the entire bottom of the hole. In
addition, one nozzle near the center must
jet-cut the center of the hole or a stalk will
remain. The angle of this nozzle is critical
and is often not optimal. Laboratory drilling
tests are the best method to make sure Gauge Cutters
Bit Breaker Flat
the angle is correct. Nozzle Stand-off

Figure 53 shows jetting patterns produced Figure 52. Basic Nozzle Pattern for HP Bit
by test bits designed for this DOE project.
The photo on the left shows an early design where the nozzle spread pattern missed the center
of the hole and left a center stalk. After that jet was removed and welded over, a new jet was
placed at the correct angle and the bit tested again. The improved jetting pattern is shown in the
photo on the right.

Figure 53. Jet Kerfing Patterns of Original and Improved Nozzle Design

All of the field bits and most of the laboratory bits had replaceable nozzles. This is beneficial for
several reasons:
1. Allows the size and configuration to be customized for the flow that will be used
in each particular well. In this way, pressure drop (jet force) can be kept constant
for different drilling situations.

DE-FC26-97FT33063 - 44 - Maurer Technology Inc.

Final Report
 2. Allows larger nozzles to be placed at the outside diameter where more rock must
be cut and smaller nozzles toward the center
3. Allows nozzles that are eroded from fluid and/or solids to be easily replaced

The smaller bits shown in Figure 53 were fabricated for laboratory testing. Figure 54 shows one
of the larger bits that were fabricated for field tests. This bit was manufactured by DPI (now
owned by Grant Prideco). This 6-in. bit was used to drill at the Rocky Mountain Oilfield Testing
Center (RMOTC).

Figure 54. 6-inch HP Jet Kerf Bit used at RMOTC

This bit incorporated three different nozzle sizes. The four central nozzles were 0.082 in. (2.08
mm); the next three nozzles were 0.100 in. (2.54 mm); and the remaining nozzle was 0.125 in.
(3.18 mm). Larger nozzles were placed near the outside because more rock must be cut
(eroded) in this region. The total flow area (TFA) for this bit was 0.057 in2 (36.8 mm2).
Calculated pressure drop at 200 gpm with 8.6 lb/gal mud was 6,100 psi (42.0 MPa). These
values were confirmed with flow and pressure data recorded on the rig before drilling was
initiated (Figure 55). Theoretical and measured pressure drops were very similar.

7000
6000
5000
Pressure

4000
3000
2000
1000
0
0 25 50 75 100 125 150 175 200 225
GPM

Figure 55. Measured Pressure versus Flow for Bit

DE-FC26-97FT33063 - 45 - Maurer Technology Inc.

Final Report
3.2.3 CT String
The initial design of the HP drilling system was based on the use of coiled tubing (CT) as the
deployment string. This technology offered many advantages at the onset of this project. (More
information is presented in Appendix F.) Previous developmental efforts for HP drilling systems
were plagued by problems with leaks at drill pipe connections. HP fluid flow caused erosion and
wash-outs at the joints. CT, now commercially available in appropriately large ODs, would
eliminate the many joints in a conventional drill string. In addition, the high pressures created for
jet drilling present an important safety concern that must be addressed. CT rigs and crews
routinely deal with HP fluids during many typical CT operations, such as fracing and scale
clean-out. HP safety concerns and equipment to address them are already in place.

The fundamental disadvantage of using CT in HP operations is its limited fatigue life due to
plastic deformation during bending. As the tubing is spooled on and off the reel and across the
guide arch (“gooseneck”), it undergoes plastic yielding. This causes CT to fail from fatigue
damage after a relatively few cycles in/out of the well. In addition, high internal pressures cause
fatigue damage to accumulate more rapidly than at lower internal pressures. For example,
Figure 56 shows how the service life of CT is reduced as internal pressure is increased. These
data show how CT life, at pressures around 10,000 psi, is dramatically reduced with this
particular CT material and wall thickness.

200
1.75” CT
Fatigue Life (trips)

2.00” CT
150

100
QT-1000

50

0
6,000 9,000 12,000
Internal Pressure (psi)
Figure 56. CT Fatigue Life with Internal Pressure

In an effort to reduce the severity of this problem, a major manufacturer of CT, Quality Tubing,
Inc., was enlisted to join the project and investigate new tubing materials for the conditions
foreseen for HP-CT drilling. Quality Tubing developed QT-1200 (Table 3), a high-strength
material for use at elevated pressures when the CT must be spooled in/out of the well.

DE-FC26-97FT33063 - 46 - Maurer Technology Inc.

Final Report
 Table 3. Properties of QT-1200 High-Strength CT
Yield Strength 120,000 psi
Tensile Strength 130,000 psi
Wall Thickness 0.134 in. (and above)
N.D.E. Eddy-Current tested to ASTM E-309
String
Yield % Hardness
Mfg/Grade Mtr Tensile
0.2% FF Elongation Material Weld
Y/P120 E01128 130 133.5 19.5 27C 28C
Chemistry
C Mn P S Si Cr Cu Ni Mo V Nb
0.14 1.61 0.007 0.0008 0.34 0.61 0.23 0.09 0.20 0.066 0.05

Quality Tubing used their in-house CT fatigue test machine (Figure 57) to quantify the
performance of different types of steels as they developed QT-1200 tubing. Figure 58
summarizes the results of fatigue tests on three CT materials (QT-800 is 80-ksi steel; QT-1000
is 100-ksi steel; QT-1200 is 120-ksi steel). These tests verified that QT-1200 has significantly
more fatigue life than other conventional CT when spooled at high pressures. The number of
cycles prior to failure was increased from below 25 to over 150 cycles at 12,000 psi. While QT-
1200 did exhibit some brittle fracture problems when first developed, these have since been
overcome. This product is now offered by Quality Tubing as a standard commercial item.
(Unfortunately, QT-1200 was never adequately tested under this project. The only string
produced during the project was too small and too short for a meaningful test.)

CT Sample
Hydraulic
Actuator

Straight
Bending Form
Curved
Bending Form

Pump
Pressure
Controller

Figure 57. Standard CT Fatigue Testing Machine

DE-FC26-97FT33063 - 47 - Maurer Technology Inc.

Final Report
 500
Actual Cycles for QT-1200
450 Model Cycles for QT-1000
400 Model Cycles for QT-800
Fatigue Life (cycles)
350 (1.5” OD x 0.156” Wall)
300

250

200

150

100

50

0
1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 13000 14000

Internal Test Pressure (psi)

Figure 58. Fatigue Test Data for New High-Strength CT (Quality Tubing, Inc.)

In a parallel investigation to provide another option to high-strength steel CT, the project team
monitored progress in the development of composite CT (Figure 59). Initial results reported with
composite CT were very promising. However, after composite CT products were applied in the
field in various environments, reported burst strength and fatigue life data were revised
downward. This technology was not pursued further during the project.

Figure 59. Composite CT (Fiberspar Spoolable Products)

During the field test using high-strength CT, it was observed that the tubing ballooned (Figure
60) after only a few cycles. This occurred much earlier than the software models had predicted.
This experience suggests that current fatigue algorithms are not well calibrated for high internal
pressures. The models had predicted 10–12 in/out cycles prior to fatigue failure; the tubing
achieved approximately half that (5–6 cycles).

DE-FC26-97FT33063 - 48 - Maurer Technology Inc.

Final Report
 Ballooning from Plastic Bending
New CT Under Pressure

Figure 60. Ballooning of CT Caused by Bending with Internal Pressure

3.2.4 CT BHA Components

The bottom-hole assembly (BHA) for drilling with CT is comprised of a number of components
that protect the assembly, facilitate operations in underbalanced conditions, and allow the CT to
be disconnected in an emergency. Figure 61 shows the complete BHA designed by the project
team for running the HP motor and bit on CT. In addition to typical BHA components, a screen
sub was placed above the bit to collect any debris large enough to plug the bit nozzles. The HP
nozzles are relatively small, with diameters of 0.080–0.125 inches. This is much smaller than
conventional bit nozzles, making these HP nozzles more susceptible to plugging by what are
otherwise normal contaminants in the mud (cuttings, rust flakes, etc).

When this HP-CT development was initially undertaken, none of the motor BHA components
were rated for operation at pressures as high as 10,000 psi. MTI contracted with a supplier of
these components to design and build special versions of required components for use with the
HP motors being developed. However, the first company failed to deliver designs or
components and the team was forced to seek an alternative solution. Several CT equipment
suppliers were contacted for equipment rated to 10,000 psi. Only Weatherford responded
positively, stating that their equipment, while rated at 5,000 psi, could safely work at 10,000 psi.
Weatherford also agreed to participate in the project by providing, at no cost, the BHA
components for testing. Their equipment was tested at the Drilling Research Center at 10,000
psi. No failures occurred and inspection after the test indicated no damage from high pressures.
This same equipment was then used for the CT-based field tests.

DE-FC26-97FT33063 - 49 - Maurer Technology Inc.

Final Report
 Figure 61. CT BHA for HP Drilling (6-in. Bit on 4¾-in. Motor)

3.2.5 Fluid Swivel for CT Rig

A special HP swivel is another critical component needed to deliver the drilling fluid from the
pump to inside the CT on the reel as it rotates. At the beginning of this development, most CT
swivels were only rated to 5,000 psi. During the project, Hydra-Rig (Conroe, Texas) introduced
a commercial 15,000-psi swivel.

DE-FC26-97FT33063 - 50 - Maurer Technology Inc.

Final Report
 Figure 62. Hydra-Rig HP-CT Swivel

Hydra-Rig then provided a swivel for the project’s use at reduced cost. This was tested at the
Drilling Research Center (Figure 63) to measure torque, pressure drop, and leakage at different
flows and pressures. This swivel performed well and did not leak or fail during the tests.

Hydraulic Motor
Transducer

Swivel

Figure 63. Testing Hydra-Rig HP CT Swivel

The tests showed that as pressure was increased from 0–15,000 psi, swivel start-up torque
increased from 215–379 ft-lb and operating torque increased from 175–243 ft-lb. These levels
are acceptable for typical CT rigs. In addition, pressure drop through the swivel as flow
increased was minimal (Figure 64).

DE-FC26-97FT33063 - 51 - Maurer Technology Inc.

Final Report
 11
10

Swivel Pressure Drop (psi)

9
8
7
6
5
4
3
2
1
0
0 10 20 30 40 50 60 70 80 90 100 110 120 130 140
Flow Rate (GPM)
Figure 64. Pressure Drop through Hydra-Rig Swivel

3.3 GTI Catoosa Field Tests

The first series of field tests of HP jet kerf drilling systems was conducted at Gas Technology
Institute (GTI) Catoosa test facility in Tulsa, Oklahoma. The project team was on site over a five-
day period from February 11–15, 2002. Appendix B contains a log of the activities.

Tests at the GTI Catoosa facility used CT to convey the bottom hole assembly (BHA) and
highlighted problems with that method. Later, tests at RMOTC (see next section) used
conventional jointed pipe to convey the BHA downhole.

Testing was initiated on February 11, 2002. Each day of operations was begun with a safety
meeting of personnel from GTI Catoosa, BJ Services, and MTI. On the first day, Ron Bray
(Director at GTI Catoosa) presented safety regulations for use of the test facility. Contact
persons for each company were identified and introduced to the crews. John Cohen of MTI
summarized objectives of the test and described the inherent dangers of working with HP fluids.
Doug Freeman of BJ Services summarized safety rules for BJ’s equipment and identified areas
personnel were to avoid during operations.

BJ Services supplied the CT equipment, consisting of a CT unit, a crane, two HP pumps, and a
nitrogen truck. The location of the well was identified and a BJ supervisor spotted the equipment
in appropriate locations for servicing the well. Two pumps were used so that adequate flow
could be supplied for drilling with the 6-in. HP jetting bit. The nitrogen truck was used to blow
down (purge) the equipment and CT after each day’s tests since overnight temperatures fell
below freezing and it was undesirable to freeze liquids in the equipment.

While the CT equipment was being positioned and set up by BJ, Catoosa personnel began
preparing the well head. The well had been capped off with a metal plate. The cap was cut off
with a torch and a flange for mating to the BJ BOP stack was welded onto the casing. MTI
personnel unpacked the mud motors, bits and other support equipment for the test. The
wellhead was prepared and the CT equipment was in place by the end of the first day. Figure 65
shows the CT being threaded into the gooseneck (CT guide arch). The tubing was run into the
hole and blown down to confirm that the hole was open. The BHA was partially assembled on
the ground in preparation for pick up.

DE-FC26-97FT33063 - 52 - Maurer Technology Inc.

Final Report
 Figure 65. Worker Threading CT into Gooseneck

On the second day, the HP drilling BHA was picked up. Unfortunately, this proved to be a very
difficult operation, and the entire second day was consumed in attempting to make up the BHA.
Improvements in procedures for making up the BHA were implemented as testing continued,
but the fastest time the BHA could be rigged up during the test series was one-half day. This is
clearly too much time for a commercial operation. The major problem encountered was the lack
of either a derrick or a rotary table. Without these, two cranes were needed, one to support the
injector and one to pick up the BHA components. As the BHA is assembled, all connections
must be made up and pressure tested. Make up was accomplished with special wrenches
purchased for this job (Figure 66).

Figure 66. Special Wrenches for Making Up CT BHA

Testing the BHA assembly for pressure integrity proved to be very challenging. The motor head
assembly (the various valves, disconnects and other components that are placed above the
motor) was first made up and then capped while pressure was applied. Leaks were found
several times and the corresponding joints had to be tightened. After the motor head assembly
was tested, the HP motor was attached and its connection checked. For this equipment design,
the joint had to be checked dynamically (with flow) since the motor could not be blocked off.
Flow through the bit nozzles created back-pressure to check the joint seal.

DE-FC26-97FT33063 - 53 - Maurer Technology Inc.

Final Report
Two inline valves were used to block flow for pressure-checking the other BHA components for
operation at 10,000 psi. After each pressure test, pressure was released from the CT system.
Unfortunately, these inline valves could not be opened while under high pressure. Another joint
(a WECO hammer union) had to be broken to bleed pressure off at each stage of the pressure
test sequence. (This is not a desirable solution for field operations due to time it takes to break
the connection and the safety issues of loosening a connection to relieve HP fluid. For any
future application of this CT system, threaded connections that are well tested and known to be
reliable at 10,000 psi need to be employed. When the crew has basic confidence in the integrity
of the BHA connections (which was not the case in this field test), only one pressure test will be
needed, and this can be performed in an open condition flowing against the bit nozzles.) Finally,
at the end of the second day, the BHA was assembled, all joints pressure tested, and was
deemed ready to go into the hole.

The HP-CT drilling assembly was run into the hole on the third day. The crew started drilling at a
depth of 175 ft, and good penetration rates were achieved (about 300 ft/hr). Drilling was paused
after about 15 minutes to dump old mud and build new polymer mud. Drilling was then resumed.
After drilling another 45 minutes, a pressure spike was observed and the tool was pulled from
the well. Drilling was not able to be continued after this point.

The team first assumed that the motor had failed and that a piece of rubber from the stator had
been torn free and blocked the shaft. A smaller motor was made up to the BHA, but the flow
problem persisted. The downhole screen was then inspected and it was discovered that the
screen was full of frac sand (Figure 67). This was determined to be the source of the pressure
spike. (The sand had been present in the CT string from a previous field operation.) The
downhole screen was cleaned and the system checked for proper operation. A surface screen
was added to the flow path so that this problem could not recur. (The team noted that the
surface screen should have been in place from the start of the operation. It had been listed in
the test plan, but had been inadvertently left out.) This sand blockage had occurred even though
the entire system had been blown down on the first day after setting up the CT unit.

Figure 67. Frac Sand Removed from Downhole Screen Sub

The team decided to replace the BHA with the larger motor previously run and go back into the
hole. After being reassembled, the drilling BHA was placed in the well. However, it could not be
run to the bottom of the well. A blockage was encountered at a depth of 147 ft. The team
speculated that the casing had collapsed and was preventing the assembly from passing. The
BHA was pulled from the well and refitted with the smaller motor to confirm whether a smaller
assembly could bypass the blockage. It could not, so drilling was terminated.

DE-FC26-97FT33063 - 54 - Maurer Technology Inc.

Final Report
The well was inspected with a video camera. It was found the well was clear and that the casing
had not collapsed. Next, a sinker bar was run after the camera. It was determined that the well
was over 600 ft deep, not 175 ft as previously indicated by CT drilling operations. The short
interval where the tool had appeared to be drilling (cuttings were coming over the screen) must
have been washing a bridge or hole collapse that had occurred immediately below the casing.
Apparently, no drilling had been accomplished.

Why the assembly could not be run to bottom (past the apparent obstruction) remained a
mystery until the CT string was inspected after the conclusion of the field test sequence. The
inspection showed that the CT had ballooned. (For more discussion on CT ballooning, see
Section 3.2.3.) The enlarged section of the CT string could not pass through the injector and
had stopped the advance of the BHA assembly into the well. This substantial ballooning had
occurred after only a very few cycles over the gooseneck even though it had been predicted that
12 passes were possible before the CT would fail.

Conclusions

While the HP-CT drilling system was not effectively tested at

Catoosa, the team learned several valuable lessons. Make-up
of the CT BHA was very difficult due to the lack of a derrick or
rotary table. If CT drilling is to be feasible for the future, a
rotary table, tongs and derrick will be needed. Although this
adds cost to the operation, without this equipment BHA make- Drill Pipe
up may require days to complete instead of hours. or Casing

CT will need to be improved to allow more operating life

before the tubing fatigues or balloons beyond equipment
dimensional limitations. Software for predicting CT service life
needs to be improved for high internal pressure and low
cycles.

Another factor currently making CT drilling less attractive is

high cost. The bill for the five-day test at the Catoosa facility High-Pressure
would have been over $225,000 had the CT provider not
Jets
contributed a generous discount of 63%.

3.4 Cement Drilling Tests Cement

During wellbore cementing operations, cement can set up
prematurely in drill pipe and casing due to delays before or
during pumping, improper cement chemistry, contamination,
high temperatures, and other factors. This can cause
expensive delays in drilling operations or loss of equipment.
To recover the tubulars, the cement must be drilled out of the Figure 68. Drilling Cement
drill pipe or casing either in the well or in a pipe yard. with HP Jets

With conventional drilling technology, this is an expensive and time-consuming problem

because hard cement can be drilled at only about 60 ft/hr with rotary drills or conventional
motors. Cleaning a 10,000-ft string would therefore require about 167 hours of drilling time.

DE-FC26-97FT33063 - 55 - Maurer Technology Inc.

Final Report
HP jetting was considered as a potential alternative for cleaning cement from tubulars. During
Phase II, tests were conducted in MTI’s laboratory and yard facilities using 10,000-psi jets to
drill cement out of sections of tubing (Figure 68). These tests were very successful and showed
that HP jets can remove hard type H cement at up to 1420 ft/hr compared to about 60 ft/hr for
conventional motors. HP jetting could therefore reduce the time to drill cement out of tubulars by
over 90%. Results of a test of HP jetting in 4½-inch tubing containing hard type-H cement and
the clean tubing after the cement was drilled out are shown in Figure 69.

Cement Cuttings

Cement-Filled Tubing Tubing after HP Jetting

Figure 69. Cement Drilled from 4½-in. Tubing

HP jets drill cement at high rates because they erode channels and break the cement into large
pieces (see Figure 69), whereas conventional bits grind the cement into much smaller cuttings.
Because of the high clean-out rates possible, HP jetting of cement should have significant
commercial application.

These operations are ideal for the specialized markets that CT serves well. Drilling out cement
would not be an everyday service, but represents another tool for CT service companies that
could generate significant revenue. The high cost of cement removal operations justifies the use
of CT even when the additional cost is considered. In addition, assemblies that would be used
for this are small and easily assembled. Unlike larger tools, these small BHA assembles can be
assembled with chain tongs and pipe wrenches, eliminating the need for a rotary table and
derrick as described above. Cement cleanout using HP jet kerf drilling represents an excellent
market area for this technology.

The next logical step for this potential application would be to assemble the necessary
equipment, complete several small trial runs at a test facility such as GTI’s Catoosa test site,
and then announce the capability to the industry. This could be accomplished on a small scale
by limiting the initial market to one region, for example the Gulf Coast. This technology would be
ideal for offshore applications due to the high costs of shutting down an offshore rig when
cement is cleaned from a pipe. With jet kerf clean-out, the job could be completed in a few
hours rather than days.

DE-FC26-97FT33063 - 56 - Maurer Technology Inc.

Final Report
3.5 RMOTC Field Tests
While much was learned during the CT tests at the GTI Catoosa test site, one critical test was
not able to be conducted, namely, the effect of HP jets on drilling rate. An additional field test
location was sought. Due to the requirement for HP pumps and equipment, a location in the
commercial sector could not be found. However, RMOTC was willing to work with MTI and the
DOE Morgantown office to conduct this HP test. RMOTC, with assistance from MTI and DOE,
purchased a new HP Gardner Denver Pump (see Figure 21) and upgraded the rig with new
piping, swivel and rotary hose, all with ratings sufficient for working pressures up to 10,000 psi.
The cost to upgrade the rig is shown in Table 2. The pump cost was under $500,000.

After rig modifications were incorporated, only one key area remained to be addressed that had
caused problems in previous HP drilling projects—leaking tool joints. Leaks at tool joints often
resulted in washouts. This is a very dangerous and potentially costly problem. O-rings have
often been used to seal tool joints to prevent leakage of HP fluid. O-rings are placed in the
thread relief of the pin. In these cases, the thread relief and diameter of the top of the box must
be controlled to effect a seal; however, these tolerances are not typically found on strings in the
field. New tool joints have been developed that use a double-shouldered connection, and are
used where higher torques and/or pressures are expected. For the RMOTC tests, performance
specifications for the tool joints were developed and a search conducted for a rental string that
met those requirements. A tool joint manufacturer helped the team locate a company that
owned a string near the site. This string was rented for the HP tests.

A test plan was then written and a CRADA signed to conduct the testing (see Appendix C).
Several visits were made to RMOTC before testing was able to proceed. There were equipment
problems in early attempts, some related to the rig and some to the jet kerf bit. In hindsight, this
test could not have been performed as part of a commercial operation. The flexibility that
RMOTC could provide in starting and stopping operations for several hours, days or weeks was
essential for the team to complete the test successfully.

The first test sequence was conducted 22–26 March 2004. Unfortunately, no drilling was
completed during this period. The new HP kelly hose developed a leak at one of the end
connections. It was returned to the manufacturer for repair. After the hose was returned to the
rig, it was tested and still found to leak. The manufacturer then fabricated a new hose, which
was pressure-tested successfully on 20 April 2004. Drilling tests were then commenced by
running into the hole and conditioning the mud with the HP BHA assembly. After fluid was
pumped at high pressure for 1.5 hours, the pressure dropped off from over 6,000 psi to 4,800
psi. The assembly was tripped out of the hole and it was observed that one of the bit nozzles
had washed out (Figure 70). That bit was returned to Houston along with the back-up bit. The
nozzles were repaired by brazing them into the bit (previously threaded, Figure 71). Epoxy was
applied to the backup bit to support the nozzles and prevent erosion (Figure 72).

DE-FC26-97FT33063 - 57 - Maurer Technology Inc.

Final Report
 Figure 70. Washed Nozzle on First Bit

Figure 71. First Bit After Nozzle Brazing

Figure 72. Epoxied Nozzles on Back-up Bit

DE-FC26-97FT33063 - 58 - Maurer Technology Inc.

Final Report
Testing at RMOTC was resumed on 25–29 April 2004. After only a short time a pressure spike
occurred that ruptured the relief valve on the pump. The team checked the surface equipment,
found no problems, and determined that the problem was downhole. The BHA was then tripped
out of the well and inspected. The mud motor had a severely damaged stator (a “chunked”
rubber). The stator manufacturer believed (although is was not possible to confirm his
diagnosis) that the stator had aged prior to the field tests, which resulted in its failure. This stator
had been purchased two years previously. A back-up HP motor was not available and a new
stator could not be obtained for several weeks. Consequently, the team decided to continue the
test using rotary drilling.

Failure of the downhole motor had resulted in plugging of the nozzles in the bit. A review of the
drilling data revealed that, during the previous short run, pressure had dropped. The bit was
inspected and it was observed that nozzle erosion was still occurring. This had most likely
caused the drop in pressure. The back-up HP bit was used for the next run.

Rotary drilling began again after the new BHA was run into the hole. This test also only lasted a
short time at which time the new rig HP swivel packing burned up. The packing and wash pipe
assembly were removed and inspected. Sand had been deposited into the packing, resulting in
its burning up. It was decided that failure to regularly grease the packing was the prime
contributor to this problem. Several days were consumed waiting for new parts for the swivel,
after which the unit was repaired and drilling continued. Each of the first two short runs showed
good penetration rates higher than those from offset wells. However, drilling times were too brief
to allow any positive conclusions.

Drilling operations were resumed on April 27 using conventional rotary drilling and the back-up
HP bit. System performance was excellent using conventional drilling. The first run lasted about
5 hours and drilled 186 ft of new hole. Drilling rates over each joint ranged from 42 ft/hr to as
high as 166 ft/hr (corresponding to 1.2–3.8 times rates in offset wells). The assembly was then
pulled from the hole so that more drill collars could be added for additional bit weight. During
this first rotary drilling test, drilling rates in some formations were purposefully limited to ensure
that the hole was being cleaned adequately. It was also found that effective bit weight was being
reduced by the thrust from the HP jests. While drilling one formation, the Crow Mountain Sand,
drilling rate could have been maintained as high as 500 ft/hr. Maximum drilling rate was not
maintained for more than a few minutes so that the hole would not load up with cuttings.

A second run of rotary drilling with the back-up bit was begun on April 28. This run continued for
approximately 3.5 hours, after which pressure was lost. The team determined the problem was
downhole, and the bit was pulled out of the hole to reveal that a nozzle had washed out. Drilling
rates during this run ranged from 50 ft/hr to 90 ft/hr, or 3.4 to 7.8 times faster than in offset wells.

The first (primary) bit had been sent back to the manufacturer to be rebuilt during the run of the
backup bit and a new bit was ordered from the manufacturer at the same time. The rebuilt bit
was run back into the hole but only lasted 30 minutes before the nozzle washed out again.

Up to this point in the test, the team had operated under the premise that the nozzle material
was washing out or that the material (thread, braze, thread+epoxy) was leaking and thus
washing out. This assumption was proved wrong during drilling with the new bit that had been
manufactured most recently. The new bit was constructed rapidly due to time constraints.
Substandard cutters were the only available option and were included in the bit. After this new
bit was run, it was found that these substandard cutters, while not detrimental to the test, did
result in damage to the bit evident at the end of the next drilling cycle.

DE-FC26-97FT33063 - 59 - Maurer Technology Inc.

Final Report
After a pause of several days (waiting on completion of the new bit), drilling was continued on
May 2 with the new bit. The bit drilled for 5.5 hours before washing out. Penetration rate ranged
from 35 ft/hr to 92 ft/hr (2.5 to 7 times the rate in offset wells). Interestingly, the new bit did not
wash out at the nozzle as did the first two bits, but rather, on the side. Figure 73 shows the bit
after it was pulled from the well. To discover exactly why these bits were washing out, the team
carefully considered bit design, including proximity of the nozzle to the trim cutter (Figure 74).
This parameter proved to be the final clue for determining why the bits were washing out.

Figure 73. Side Washout on New Jet Kerf Bit

Figure 74. Drawing of Bit Showing Nozzle and Cutter Proximity

The team decided to field-repair the bit and continue drilling. The eroded hole in the side of the
bit was welded over and drilling resumed. Several PDC compacts had fallen off the low-quality
cutters (Figure 75). The repaired bit was run again on May 4 and drilled for another five hours
before washing out again. Penetration rates ranged from 34 to 47.5 ft/hr even with missing PDC
cutters (2.5 to 3.4 times faster than offset data).

DE-FC26-97FT33063 - 60 - Maurer Technology Inc.

Final Report
 Figure 75. New Bit with Missing PDC Cutters

Figure 76 shows the new bit at the end of its second HP drilling test. The damage was
considered to be the result of inferior cutters.

Figure 76. New Bit after Final Run

At the conclusion of this HP drilling sequence, a final run was conducted with a conventional bit
to provide data for direct comparison. The conventional bit drilled an interval of about 150 ft in
the Goose Egg formation at rates of 7 to 16 ft/hr. This can be directly compared to 35 ft/hr with
the HP bit at the end of the previous run when most of the cutters had been broken.

Table 4 compares each bit run to offset data for each formation drilled. Jet kerf drilling rates are
1.3 to 6 times conventional rate in offset wells. These data clearly document the benefit of jet
kerf drilling.

DE-FC26-97FT33063 - 61 - Maurer Technology Inc.

Final Report
 Table 4. Drilling Rate Comparison for Bit and Formation
Jet Kerf Conventional Ratio HP to
Formation
Drilling Rate Rate Conventional
Bit 2 – Run 1 Crow Mountain Sand 156 120 1.30
Crow Mountain Sand/
Bit 2 – Run 1 49.8 13.5 3.69
Alcova Limestone
Bit 2 – Run 1 Red Peaks Shale 55.1 14.8 3.72
Bit 2 – Run 2 Red Peaks Shale 77.7 12.9 6.02
Bit 1 – Run 2 Read Peaks Shale 61.9 13.3 4.65
Bit 3 – Run 1 Red Peaks Shale 66.0 13.8 4.78
Bit 3 – Run 2 Read Peaks Shale 39.8 14.1 2.82
Bit 3 – Run 2 Goose Egg 39.3 14.1 2.79
Conventional Bit Goose Egg 10.4

Drilling rate data from Table 4 are plotted in Figure 77. The graph shows that jet kerf drilling
rates were consistently much faster than in offset wells.

160 156.0 8

140 7

120.0
120 6
Drilling Rate (ft/hr)

Drilling Rate Ratio

100 5

77.7
80 4
66.0
61.9
60 55.1 3
49.8

39.8 39.3
40 2

20 13.5 14.8 12.9 13.3 13.8 14.1 14.1 1

0 0
Crow Crow Red Peaks Red Peaks Red Peaks Red Peaks Red Peaks Goose Egg
Mountain Mountain Shale Shale Shale Shale Shale
Sand Sand/Alcova
Limestone

Formation

Jet Assisted Drilling Rate Conventional Drilling Rate Rate Ratio

Figure 77. RMOTC Drilling Rate Comparison

As previously stated, the team originally believed that the jet kerf bits were eroding through the
nozzles or the material around the nozzles. During the final run with the new HP bit, a hole
formed in the side of the bit, presenting an obvious clue on the erosion process. That bit was
returned to the manufacturer for analysis. The bit head was sectioned (Figure 78) to view the
nozzles from the inside.

DE-FC26-97FT33063 - 62 - Maurer Technology Inc.

Final Report
 Figure 78. Sectioned HP Bit

Figure 79 shows the hole that was eroded in the bit from the inside. This hole corresponds to
the uppermost nozzle opening in Figure 78. This damage was noted by the manufacturer as
similar to what they had observed on rental bits. Their rental bits, whose profit is directly
impacted by the number of times the bit can be rebuilt and rerun, were exhibiting erosion of the
steel around the nozzle on the inside of the bit. If left unchecked, this erosion continues until the
supporting material is washed away and the nozzle is lost. This was found to be caused by
turbulence around the edges of the nozzle as fluid enters the nozzle. If, for example, the bit has
nine nozzles, holes in the bit to allow for these nozzles are 0.34 in. diameter, and flow rate
through the bit is 200 gpm; then the speed of the fluid through the nozzle holes is over 4,700
ft/min. Mud at this velocity will readily erode a steel head.

Figure 79. Section of Damaged Bit

DE-FC26-97FT33063 - 63 - Maurer Technology Inc.

Final Report
The bit manufacturer had developed and patented (US Patent no. 6,142,248) a nozzle to
minimize erosion from HP fluid (Figure 80). The body of the nozzle (typically made from erosion-
resistant carbide) is extended into the cavity of the bit
body. This moves the point of high-velocity fluid
entering the nozzle and the corresponding turbulence
away from the steel head, thereby minimizing erosion
of the steel bit body.

The next drilling test in the project test sequence

would be to test a HP bit fitted with this type of anti-
erosion nozzle. These tests are yet to be conducted
at RMOTC because no commercial partner has been
found to provide the cost sharing necessary to return
to RMOTC and conduct additional HP drilling tests.

Figure 80. Anti-Erosion Nozzle

DE-FC26-97FT33063 - 64 - Maurer Technology Inc.

Final Report
 4. Economic Model

4.1 Assumptions
The ultimate goal of the project is to develop a commercial jet kerf drilling system that reduces
overall costs to construct an oil or gas well. Laboratory and field testing provided valuable data
regarding technical potential for the system, but did not answer the second fundamental
question—can HP jet kerf drilling be accomplished economically? A model was constructed to
analyze economic potential of the system.

The following assumptions were part of the economic model:

¾ The mechanical process of drilling rock is complex, difficult to model, and entails
considerable uncertainty in assigning representative values to physical
parameters; consequently, the economic model was kept relatively simple.

¾ All aspects of the drilling process are lumped together into the rig time and
drilling time.

¾ Jet drilling is less practical for larger holes due to the expense of pumping HP
fluid at high flow rates. Accordingly, HP jet kerf drilling is assumed to be
conducted only in hole sizes 6½-in. and smaller.

¾ Jet kerf drilling is applied only to the final 1/3 of the drilling days (i.e., in the
deepest, smallest-OD sections) based on a typical well design.

¾ No additional maintenance costs are added.

¾ The internal rate of return is 12%.

¾ Bit life problems due to erosion that were observed during field testing are solved
with anti-erosion nozzles as described in Section 3.5.

¾ The drilling rig is always available to be contracted as needed (no scheduling

conflicts, no downtime for maintenance, etc.).

4.2 Base Case

A base-case drilling program was derived to place a fixed value on a typical well for the
economic model. The base-case well requires 28 days to complete inclusive of time to mobilize
and demobilize the rig; 24 days of the total are drilling days. The value of the base case well
(Table 5) is $280,000 based on 28 days using a rig that costs $10,000/day. In the remainder of
the development of the economic model, it is then assumed that $280,000 is the basic value of
this well to the operator and that he is willing to pay at least this amount to a contractor to have
the well constructed. The well delivered to the operator will not change in the analysis; only the
method to drill the well. The impact of these changes on the well cost will be compared to the
well’s value.

DE-FC26-97FT33063 - 65 - Maurer Technology Inc.

Final Report
 Table 5. Base Case for Economic Model
Base Case
Daily rig cost $10,000
Total days per well 28
Drilling days per well 24
Small hole drilling days (≤6½ in.) 8
Revenue per well $280,000
Wells per year 13.0

The basic economic impact of HP jet kerf drilling on the operation is to increase drilling rate (in
the smaller hole sections) and thereby reduce the number of days to complete the well. Figure
81 shows that the total cost (i.e., revenue to the contractor) would decrease as the penetration
rate multiplier increases if the rig were to continue charging the same daily rate. As stated in
Section 4.1, jet drilling is only applied to the final third of the drilling days. For this case, that
corresponds to eight of the 24 drilling days. Thus, if the rate over this interval is increased two-
fold (2X), the number of drilling days drops from eight to four days and the rig generates less
income per well. At a jet drilling rate 4X conventional, drilling days for the smaller sections of the
well decrease from eight to two so the well is completed in 22 days instead of 28.

Revenue for Jet-Assisted Drilling

Based on Constant Daily Rig Rate
$245
Thousands

Daily Rig Rate = $10,000

$240
$240

$235
Revenue per Well ($)

$232

$230
$227

$225

$220
$220

$215

$210
2X ROP 2.5X ROP 3X ROP 4X ROP
Drilling Rate

Figure 81. Revenue Per Well Using HP Jet Kerf Drilling

As stated, these results are based on the simplifying assumption that the rig contractor would
charge the same daily rate. The next critical factor to consider is that the contractor would need
to purchase HP equipment to upgrade the rig. These costs must be recovered by increasing the
daily rate for HP jet kerf drilling. The cost increment was calculated that would recover the initial

DE-FC26-97FT33063 - 66 - Maurer Technology Inc.

Final Report
investment at an internal rate of return of 12%. The initial investment was estimated based on
that reported by RMOTC to upgrade for the tests (as described in Table 2): $100k to modify the
rig and $500k to purchase a HP pump, for a total of $600k. An increase to the daily charge rate
of $1,754 would recover the upgrade costs in one year; an increase of $929 would recover the
costs in two years.

Figure 82 shows the value (cost to drill) the well if the daily rate increase listed above was
added to the original rate (for a new rate of $11,754/day for a one-year payback and $10,929 for
a two-year payback) and this new rate charged for each day the rig was on the well.

Cost Per Well with Jet Drilling

Based on Daily Rate of $10K Plus Increase Due to Payback
$290
Thousands

$282 1 Year Payback 2 Year Payback

$280
$273
$270 $266
$262
$259
$260
Cost Per Well ($)

$254

$250 $248

$240
$240

$230

$220

$210
2X ROP 2.5X ROP 3X ROP 4X ROP
Drilling Rate

Figure 82. Value of Well Including Capital Expense Recovery

From the operator’s perspective, he is obviously willing to pay as much as $280k for the well,
that is, the cost of the conventional base case (28 days at $10,000/day). If the contractor
charges a flat fee of $280k per well, then he will receive additional revenue per well as shown in
Figure 83. The graph shows that a one-year payback cannot be achieved if the ROP is only 2X
the conventional. For faster drilling rates or a two-year payback, significant additional revenues
can be earned. It is also important to note that, after the second year when capital payback is
complete, additional revenues will accrue directly as profit.

DE-FC26-97FT33063 - 67 - Maurer Technology Inc.

Final Report
 Revenue Change from Base for Jet Drilling
Assumes Operator Cost for Well Constant at $280K
Thousands $45
1 Year Payback 2 Year Payback
$40
$40
Revenue Per Well With Jet Assisted Drilling

$35
$32

$30
$26
$25
$21
$20 $18

$15 $14

$7
$10

$5

$0
2X ROP 2.5X ROP 3X ROP 4X ROP
($2)
($5)
Drilling Rate

Figure 83. Additional Revenue Per Well Based on Standard Charge of $280k

The operator also enjoys significant benefits with this business model. While his well costs
remain constant (at $280k), each well will be completed and put on production sooner. There
will also be an increase in the number of wells that are drilled each year. For example, at an
ROP of 2X, each well will be completed four days sooner, resulting in two more wells being
drilled each year. The contractor could in many cases afford to charge the operator less than
$280k per well and thereby become even more competitive in that area. HP jet kerf drilling
promises economic benefits for both operator and contractor.

4.3 Increased Initial Equipment Cost

Sensitivity of the economic model to equipment cost was investigated. Figure 84 shows the
increase in daily rig rate required to recover the initial investment if it were increased to $800k
and $1,000k. Table 6 and Table 7 summarize cost increases for each category for this example.

Table 6. Initial Investment of $800k for HP Equipment

Cost to Upgrade Rig $200,000
Cost of HP pump $600,000
Total $800,000

Table 7. Initial Investment of $1000k for HP Equipment

Cost to Upgrade Rig $200,000
Cost of HP pump $800,000
Total $1,000,000

DE-FC26-97FT33063 - 68 - Maurer Technology Inc.

Final Report
 $3,500
1 year $800K 2 Year $800K 1 Year $1,000K 2 Year $1,000K

$3,000 $2,923 $2,923 $2,923 $2,923

$2,500 $2,338 $2,338 $2,338 $2,338

Increase in Daily Rig Rate

$2,000

$1,548 $1,548 $1,548 $1,548

$1,500
$1,239 $1,239 $1,239 $1,239

$1,000

$500

$0
2X ROP 2.5X ROP 3X ROP 4X ROP
Drilling Rate Increase

Figure 84. Increase in Daily Rig Rate for Higher Initial Investments

If the above rate increments were added to the original day rate, additional per-well revenue
would be as shown in Figure 85. For equipment costs of $800k, payback is achieved in one
year for a 3X or faster drilling rate. The data show that payback is not possible in one year if the
initial investment in rig and pump costs is $1,000k. Even if a 4X rate could be maintained, it
would take two years to recover the initial investment.
p
$40
Thousands

1 Year $800K 2 Year $800K 1 Year $1,000K 2 Year $1,000K $33

$30 $26
$25

$19 $18
$20
$12
$10
$10 $9
Revenue per Well

$3
$0
$0
2X ROP 2.5X ROP 3X ROP 4X ROP
($4)
($10) ($6)

($13)
($20) ($16)
($20)

($30)
($30)

($40)
Drilling Rate Increase
Figure 85. Revenue Per Well with Increased Rates and Increased Initial Cost

DE-FC26-97FT33063 - 69 - Maurer Technology Inc.

Final Report
4.4 Increase Pump Utilization
The economic model shows relatively high sensitivity to initial equipment cost. One reason for
this is the low utilization of the HP pump. The HP equipment is relatively expensive and is only
employed for a few days near the end of the drilling operation. If the pump could be shared by
two rigs, the economics improve further. Figure 86 shows the per-well and yearly additional
revenue when effective pump cost is reduced to $250k per year (the pump is shared equally by
two rigs). For all these cases the rig has additional revenue and pays for its share of the pump if
the initial base case well value is used ($280k).

1 Year Payback (Per Well) 2 Year Payback (Per Well) 1 Year Payback (Yearly) 2 Year Payback (Yearly)
$60 $900
Thousands

Thousands
$800
$50 $48
$700
$41
Per Well Revenue Increase

Yearly Revenue Increase

$40 $37 $600
$35

$30 $500
$30 $27
$24 $400

$20 $300
$15
$200
$10
$100

$0 $0
2X ROP 2.5X ROP 3X ROP 4X ROP
Drilling Rate Increase
Figure 86. Per Well and Yearly Payout with Pump Shared Between Two Rigs

4.5 Increase in Daily Rig Rates

As the contractor’s daily rig rate is increased, a one-year payback period becomes very feasible.
Figure 87 shows per-well revenue for rig rates of $15k/day and $20k/day. (Rig contractors have
recently reported that rates in the current tight rig market have increased in many cases to
$15k/day.) At $20k/day, the upgrade to the rig not only can be paid out in one year, but the rig
has increased revenue of $13k per well for only doubling the penetration rate (2X). As test data
have shown, this is very conservative estimate. It is likely that in most wells HP jet kerf drilling
could achieve 2.5 to 3 times the rate consistently.

DE-FC26-97FT33063 - 70 - Maurer Technology Inc.

Final Report
 Revenue as a Function of Daily Rig Cost
and Payback Periods of 1 and 2 Years
$100
Thousands

1 Year (Rig Rate $15K) 2 Year (Rig Rate $15K) 1 Year (Rig Rate $20K) 2 Year (Rig Rate $20K) $93
$90

$79
$80

$67 $69
Per Well Revenue Increase

$70
$63
$60
$50 $52 $54
$50
$43 $42
$39
$40
$30
$30 $27
$24

$20 $18

$10
$4

$0
2X ROP 2.5X ROP 3X ROP 4X ROP
Increase in Penetration Rate
Figure 87. Revenue Per Well for Rig Daily Rates of $15k and $20k

DE-FC26-97FT33063 - 71 - Maurer Technology Inc.

Final Report
 5. Implementation of HP Jet Kerf Drilling
Implementation of HP jet kerf drilling tools and techniques within the USA gas and oil industry
will not be a simple process. Project developments and field testing showed that technology or
economics are no longer the predominant barrier; rather, it is the business environment. Jet kerf
drilling most likely cannot be implemented by any single business or company. Successfully
implementation will require a cooperating consortium of at least three companies—the drilling
contractor, the operator, and the bit manufacturer.

First, the drilling rig contractor must have a favorable attitude toward HP jet kerf drilling and
recognize its overall benefits for improving his efficiency and profits, even though it will reduce
the number of drilling days on a particular well. Under the current economic climate in the
drilling industry, this technology makes good sense because the current shortage of rigs means
that finding jobs is not the problem, but rather completing them efficiently with a good profit.
However, drilling contractors will immediately recognize that there is no benefit to completing a
drilling job faster if it means total revenue drops because day rates are fixed. Thus, new pricing
paradigms may need to be developed for areas where fixed daily rates are in widespread use.

Operators also play a critical role for implementation of this technology. They direct the market
and often insist on one or more technologies that a rig must incorporate before they will initiate a
contract with that rig contractor. These operator-imposed requirements often include
environmental and safety issues. In a tight rig market, operators may be inclined to demand less
because rig contractors can go elsewhere to find jobs. However, the operator still plays a key
role and must agree to special technology such as jet kerf drilling. Operators need to be
educated on the benefits to them of jet kerf drilling, specifically, faster completion and
production of each well and (in long-term contracts) more wells drilled per year.

Bit manufacturers must also be an active participant in developing this technology.

Unfortunately, without a change in industry attitudes, manufacturers have an existing
disincentive to pursue HP jet bits. Similar to the impact of PDC bits on bit sales, jet kerf drilling
has the potential to reduce the number of bits sold to drill a given section of formation. This
means less revenue for the bit company unless they are allowed to charge more for each bit.
That option has proven to be difficult to implement in the past, so the incentive of bit companies
to develop jet kerf bits is low. They will, of course, respond with enthusiasm if operators insist on
this technology.

It will be challenging to build a consortium of companies that will adopt HP jet kerf drilling and
make it into a commercial application. This project has clearly demonstrated, however, that
technology and economics are no longer the hurdles they were previously.

DE-FC26-97FT33063 - 72 - Maurer Technology Inc.

Final Report
 6. Conclusions
A number of important accomplishments were achieved during this project. Highlights include
development and testing of high-pressure (HP) motors and bits, a field test using a coiled-tubing
(CT) based drilling system, and a field test of jet kerf drilling using conventional rotary
equipment. Following are conclusions from work completed under this project:

1. HP jet kerf drilling can significantly increase penetration rates. During field tests,
the system drilled at 1.3 to 6 times faster than conventional rates recorded in
offset wells.

2. Jet kerf drilling was successful in a variety of formations.

3. Jet kerf drilling based can be accomplished using off-the-shelf equipment to

upgrade rotary drilling rigs for HP operation.

4. Jet kerf drill bits will require anti-erosion nozzles to ensure that bit life extends
beyond a few hours.

5. Jet kerf drilling was effective in field tests to a depth of 5100 ft with no indication
of slowing drilling rate with depth.

6. Safety issues for handling HP fluids were successfully addressed on all field tests
conducted under this project.

7. Increased drilling rate is a key factor in reducing overall well costs.

8. The project team demonstrated that HP jet kerf drilling can be accomplished
economically.

9. HP jet kerf drilling based on CT deployment will require special CT rigs that
include the capability to make up and test the BHA efficiently. Otherwise, CT
deployment will most likely not be economic.

10. CT strings now commercially available have significantly improved performance

with respect to ballooning (OD swelling) and fatigue when operated under HP.
However, better CT materials and improved operating methods will be needed to
improve the service life of CT for application in jet kerf drilling.

11. The high cost of CT rigs will increase the minimum penetration rates needed to
make jet kerf drilling an economic option unless savings from reduced trip time
are sufficient to offset the difference between CT and conventional operations.

12. HP motors (10,000 psi) were successfully manufactured for use in jet kerf drilling.

13. Laboratory tests showed that very high drilling rates are achievable in many
types of rock formations.

14. Practical issues, especially hole cleaning, will require that the maximum speed of
jet kerf drilling be limited in the field.

DE-FC26-97FT33063 - 73 - Maurer Technology Inc.

Final Report
 15. Small HP motors fitted with bits having side-cutting jets could be used to clean
scale out of tubing, or to improve production by cutting a spiral groove into the
rock, thereby exposing more surface area to the bore hole.

16. HP jet kerf drilling can be used to quickly clean out drill pipe or tubing in which
cement has set.

17. At least one motor manufacturer’s CT motor head assembly was found to
operate successfully at 10,000 psi.

18. In field tests, debris plugged the small jet kerf bit nozzles and halted progress.
Drill-pipe screens were then successfully implemented to prevent debris from
entering the bit.

19. Erosion of the internal bit body was observed to occur relatively rapidly near the
body of the HP nozzles. A possible solution to reduce erosion was found and
should be implemented in future applications of jet kerf drilling.

DE-FC26-97FT33063 - 74 - Maurer Technology Inc.

Final Report
 7. References
Andersen, Eric, 1990: “Deep Drilling Basic Research – Final Report,” TR90-7 GRI-90/0265.1,
Maurer Engineering Inc., June.

Butler T., Fontana, P. and Otta, R., 1990: “A Method For Combined Jet and Mechanical
Drilling,” presented at SPE 65th Annual Technical Conference and Exhibition, New Orleans, LA,
September 23–26.

Deily, F.H. et al., 1977: “Five Wells Test High-Pressure Drilling,” Oil & Gas Journal, July 4.

Killalea, M. (Editor), 1989: “High Pressure Drilling System Triples ROP, Stymies Bit Wear,”
Drilling, March–April.

Kolle, J.J., Otta, R. and Stang, D.L., 1991: “Laboratory and Field Testing of an Ultra-High
Pressure, Jet-Assisted Drilling System,” SPE/IADC 22000, presented at the 1991 SPE/IADC
Drilling Conference, Amsterdam, March 11–14.

Maurer, W.C.; Heilhecker, J.K. and Love, W.W., 1972: “High-Pressure Jet Drilling,” presented at
SPE-AIME 47th Annual Fall Meeting, San Antonio, Oct. 8–11.

Maurer, W.C., Heilhecker, J.K. and Love, W.W., 1973: “High-Pressure Drilling,” Journal of
Petroleum Technology, July 4.

Maurer, W.C., McDonald, W.J., Cohen, J.H., Nendecher, J.W. and Carroll, D.W., 1986:
“Laboratory Testing of High-Pressure, High-Speed PDC Bits,” SPE 15615, presented at 61st
Annual Technical Conference and Exhibition, New Orleans, LA, October 5–9.

Ostrovskii, N.P., 1960: “Deep-Hole Drilling With Explosives, Gostroptekhia `dat Moscow,” trans.
by Consultants Bureau Enterprises, Inc., New York.

Pols, A.C., 1977A: “Hard-Rock Jetting—1: Tests Show Jet-Drilling Hard-Rock Potential,” Oil &
Gas Journal, January 31.

Pols, A.C., 1977B: “Hard-Rock Jetting—Conclusion: Rock Type Decided Jetting Economics,” Oil
& Gas Journal, February 7.

Weber, 1971A: “New Gulf Method of Jetted Particle Drilling Promises Speed and Economy,” Oil
and Gas Journal, June 21.

Weber, 1971B: “Gulf’s New Abrasive Drill: Is it the Breakthrough?,” Oil and Gas Journal,
July 26.

DE-FC26-97FT33063 - 75 - Maurer Technology Inc.

Final Report
 8. Acronyms and Abbreviations
BHA = bottom-hole assembly
CRADA = cooperative research and development agreement
CT = coiled tubing
GRI = Gas Research Institute
HP = high pressure
hp (lower case) = horsepower
LP = low pressure
MTI = Maurer Technology Inc. (prime contractor)
RMOTC = Rocky Mountain Oilfield Testing Center (DOE-funded test facility)
ROP = rate of penetration (drilling rate)
WOB = weight on bit

DE-FC26-97FT33063 - 76 - Maurer Technology Inc.

Final Report
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

Appendix A

Engineered Test Plan

DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

Topical Report
TR01-24

Prepared for:

Dr. John Rogers

U.S. DEPARTMENT OF ENERGY
National Energy Technology Laboratory
3610 Collins Ferry Road
Morgantown, West Virginia 26507-0880

Prepared by:

John H. Cohen
MAURER TECHNOLOGY INC.
13135 South Dairy Ashford
Sugar Land, Texas 77478-3686

November 2001

DE-FC26-97FT33063 1 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

Table of Contents
Objective...................................................................................................................................... 3
Laboratory Tests......................................................................................................................... 3
Mobilization ................................................................................................................................. 5
Catoosa Test Site........................................................................................................................ 6
Safety ................................................................................................................................ 6
Cost................................................................................................................................... 7
Test Time .......................................................................................................................... 7
Well Head.......................................................................................................................... 7
Mud System ...................................................................................................................... 8
Formations ........................................................................................................................ 9
Test Sequence........................................................................................................................... 10
Test Conclusion ........................................................................................................................ 12
Data Analysis ............................................................................................................................ 12
Continued Shallow Field Tests ................................................................................................ 12
Bottom Hole Assembly (BHA) ................................................................................................. 13

Attachment A-1 – Catoosa Price List ...................................................................................... 14

Attachment A-2 – Bottom Hole Assemblies ........................................................................... 16
Attachment A-3 – MTI Equipment List .................................................................................... 20

DE-FC26-97FT33063 2 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

Objective
The first test of the DOE High-Pressure Coiled-Tubing Jet Kerf Drilling (HP-CT)
System will be in a shallow well approximately 2000–3000 ft TVD, conducted at the Catoosa
test site in Tulsa, Oklahoma. This test will have one primary and two secondary objectives. It
is important that the primary objective be completely satisfied and judged by the DOE COR,
John Rodgers, before any work is done on the secondary objectives. The three objectives
are stated below in decreasing order of importance.

1. To test the HP-CT jet kerf drilling system including bottom hole assembly (BHA)
components (motor, screen sub, bit, and tubing connectors) and the surface
components (coiled tubing, high-pressure pumps, and high-pressure swivel).
Test data will be taken to measure effectiveness of the HP-CT system and
determine which components need modifying to make the system commercially
viable and ready for the deep field tests. The shallow tests will have a minimum
target depth of 2000 ft so jet effectiveness as a function of depth can be
observed.

Three sizes of motors and four bit sizes will be tested. The small motor, a 111/16-
in. tool, has been designed for through tubing operations such as well
deepening, scale cleanout, and cement removal, and uses a 2 in. diameter bit.
The middle size is a 3⅛-in. diameter motor and is run with 3¾-in. and 4¾-in.
bits. The large tool is 4¾-in. diameter and will be used with 6 in. bits.

2. If all work is completed on the HP-CT jet kerf drilling system, further testing will
be conducted on the high-pressure side cutting production enhancement
system. This system consists of a 111/16-in. diameter motor that has been fitted
with a gearbox and side-jetting bit. The gearbox slows the rotation of the tool so
that the side jet can be used to cut a helical slot into formations in the borehole
wall. This system can also be used to clean out pipe scale, perforations, and
slotted liners. The tool has been laboratory tested, but field testing is needed to
determine which components need hardening for commercialization.

3. If funds remain and the first two objectives are met, tests will be run on coiled
tubing made from Quality Tubing’s QT 1200 material. A 1500 ft string of 1¼-in.
CT will be used to conduct fatigue tests while the tubing is cycled under
pressure.

Laboratory Tests
MTI will thoroughly test the mud motors and other components of the BHA for form,
fit, and function before going to the field. All threads will be checked to ensure that
components will screw together no matter what combination of tools is used. New threads
will be broken in at the laboratory to prevent galling in the field. Other BHA components will
also be inspected and assembled in the laboratory before going into the field.

The mud motors will be tested both on the dynamometer and drilling test stands.
Samples of rock that closely match the Catoosa formations will be used during the drilling

DE-FC26-97FT33063 3 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

tests. These data will be compared to actual rates so that predictive rates can be made
during the deep field tests.

Motors will also be run on the dynamometer stand after the field tests to document
any change in performance resulting from the test. The motors will then be disassembled
and critical components such as bearings and shafts inspected for wear and damage. If a
change in performance is recorded during the dynamometer tests, the cause of the change
will be identified and subjected to a post engineering analysis to determine what
improvements or changes are needed to keep the motors at peak performance. This
information will be documented and included in project reports. The goal is to provide a BHA
system that will provide 100 hours MTBF. The motors and other BHA components will be
modified if necessary after the shallow field tests to repair any problems observed.

During the dynamometer testing, each motor will be tested at three flow rates.
These rates will be selected to cover the operating range given by the power section
manufacturer. These rates, where appropriate, will match power data supplied by the
manufacturer for ease of comparison. (Power section manufacturers do not include losses
due to bearing packs so there is always some difference between published data and data
as recorded on the DRC test stand.) The flow rates (anticipated) for testing are given in the
table below.

Flow no. 1 Flow no. 2 Flow no. 3

Motor
(gpm) (gpm) (gpm)
111/16 10 20 30
3⅛ 50 65 80
4¾ 100 175 250

The drilling tests will be conducted in three different rock types. These three rocks
range in hardness from soft to medium hard, comparable to many of the Catoosa
formations. The test rocks will be Texas Cream Limestone, Leuders Limestone, and Glacier
Bluff Dolomite. The compressive strength of these rocks are 5000 psi, 10,000 psi, and
16,000 psi, respectively. Figure 1 below shows rock strength, as estimated from sonic log
data, at Catoosa.

DE-FC26-97FT33063 4 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

Figure 1. Rock Strength at Catoosa

The test samples selected are very representative except for the very hard
Mississippi Limestone rock known as “The Wall” at a depth of approximately 1300 ft.
Laboratory tests in rocks this hard could damage the bit, so drilling of this hard rock will only
be done during the field test.

Mobilization
MTI will mobilize from the Drilling Research Center in Houston, Texas. MTI will be
responsible for the components in BHAs 2 and 3 (list included in Attachment C). MTI will
also supply a set of tongs to make and break the BHA components plus two high-pressure
(10,000) psi mud pumps. This equipment will be shipped to Catoosa and will arrive the week
before the test. Catoosa has facilities where the BHA components can be uncrated and
checked before use in the wells. This will be done on the first day of testing while setting up
the coiled tubing rig. Figure 2 below shows how the mud pumps and other equipment will be
placed so that they can be plumbed together for the test. These pumps will be used in
conjunction with BJ pumps to supply the necessary flow for drilling.

BJ Services will mobilize out of their field office in Ardmore, Oklahoma. BJ will be
supplying a complete coiled-tubing rig and a high-pressure pumping unit capable of
supplying 180 gpm at 10,000 to 12,000 psi. A meeting is scheduled with BJ for November
26, 2001 to confirm the equipment that will be used. This equipment list will become an
attachment to this report when it is completed.

DE-FC26-97FT33063 5 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

Figure 2. Catoosa Test Layout

Catoosa Test Site

Safety
Catoosa will set the ground rules for safety while at the site. A safety meeting will be
held prior to beginning work. Catoosa will cover general safety procedures used at their test
site and MTI and BJ will cover safety specific to this test.

BJ will take the lead role in safety issues concerning high-pressure and CT
operations. Their daily use of this equipment at high-pressure makes them best qualified to
recognize potential hazards. BJ will cover high-pressure safety rules at the safety meeting.

The report “Sound Coiled-Tubing Drilling Practices” prepared by MTI for the U.S.
Department of the Interior Minerals Management Services was a part of this test plan. A
copy of the report can be obtained from MTI on request.

Anyone can stop the test for safety concerns. If a safety violation is observed, that
person should notify Ron Bray, John Cohen, or Jay Albrecht, who will stop operations. If this
occurs, a meeting will be held to correct the violation before work continues.

DE-FC26-97FT33063 6 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

Cost
The basic lease fee is $2,000/day. This includes support equipment and office
space during the test. Ron Bray suggests using $2,500/day as a budgetary number to cover
other incidentals. The wells that are used must be plugged back. The cost for this is
$5.75/ft plus ½ day rig time ($2,950 for small rig). Plug and abandon cost will be a major
expenditure ($10,000 to $18,000) depending on depth drilled.

Operating hours are from 7:00 am to 5:00 pm. Work can continue past 5:00 pm with
our own crews, but all loud equipment must be shut down by 8:00 pm.

Catoosa’s level of support for this project will be one to two technicians on an as
needed basis. If work takes place on weekends, one Catoosa technician will be required to
be at the site, and we will have to pay overtime charges. Attachment A contains a Catoosa
price list.

Test Time
The test of the large HP-CT system will take 5 to 10 days. Additional trips to Catoosa
will be used to test other sizes of bits and motors and the production enhancement tool. The
first run will use the large drilling system, which consists of a 6 in. bit and a 4¾-in. motor.
This large system provides the best assembly to demonstrate the advantages of jet kerf
drilling, and has the highest probability of success. After testing the large motor, the 3⅛-in.
motor will be tested with a 4¾-in. bit. Due to flow and cleaning concerns, the smaller BHA
will be tested in a second well (see Figure 3).

Well Head
There are a number of wellheads at the Catoosa facility that could be used for testing
the HP-CT systems. Three that appear to be best suited are AS-3, DM-30, and DM-20.
These wells are completed as follows:

1. AS-3 is completed with 9⅝-in. casing and 7-in casing, both set to 162 ft. This
is the first choice since it will require no work to start drilling in this well. There
is some cement at the well bottom that will be need to be drilled out, but this
should not be a problem for the HP-CT system as it is type H cement.

2. DM-30 has 9⅝-in. casing set at 162 feet, but the casing is not cemented in
place so it can be pulled and replaced with 7 in. casing which will supply the
necessary annular velocity to clean the well. A flow rate of 180 gpm with the
4¾-in. motor would produce an annular velocity of 60 ft/min in the current 9⅝-
in. casing with 2 in. coiled tubing, which is too slow for good hole cleaning. If
the 9⅝-in. casing is replaced with 7-in. casing, the velocity goes up to 124
ft/min., which is adequate to clean the hole.

3. DM-20 is completed with 9⅝-in. casing set at 162 ft and 7 in. casing at 800 ft.
However this well has a bridge plug, making it the lease desirable of the three
wells. If we want to use this well it would be advisable to have Catoosa drill
out the bridge plug with their small rig.

DE-FC26-97FT33063 7 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

The wellheads all have flanges on them, but BJ will need a 7-1/16 in., 5,000 lb flange
to make up to. Catoosa will either cut the current flange off and replace it with the
appropriate flange, or use a crossover sub will supply. The current flanges are 1 to 2 ft
above the ground. The height of the BOP stack will determine if we need to rent scaffolding
to make a platform for making up the BHA.

Site preparation is important to the success of any coiled-tubing job. Figure 2 shows
placement of equipment for this test. Although not carved in stone, the relative placement is
very important. The pumps and mud system need to be close together for easy manifolding
and connection to the coiled-tubing rig. Deviation from this basic plan needs to be discussed
so that the operation is optimized and the probability of success is increased.

Figure 3. Flow Rates and Annular Velocities

Mud System
Catoosa can supply the tanks, shale shakers and water for the mud system. They
also have a centrifuge that will clean up to 100 gpm of mud. The fine screens for the shaker
are 210 mesh which should be fine enough to clean the mud for the high-pressure nozzles
(0.060 in.). Water is supplied as part of the lease fee. A polymer friction reducer can be used
during the test to help lower overall pressure and to help keep cuttings suspended. BJ
typically uses Xan Vis. BJ will supply an MSDS sheet on this material for Catoosa to review.
Catoosa’s only concern is that some polymers use an oil carrier, making them difficult to
dispose of. Catoosa will check and make sure that this polymer is not using an oil-based
carrier.

DE-FC26-97FT33063 8 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

Sufficient annular velocity is critical to

achieve good hole cleaning. Figure 3 shows
the velocity in different parts of the proposed
well at different flow rates. The annular
velocities are such that the smaller assembly
can not be run in the same well as the larger
assembly without either using a parasite
string or putting smaller casing or a liner into
the well. Since neither of these solutions is
practical for this test, a second well will be
used to test the smaller tool and bit.

Formations
Figure 4 shows the lithology of the
formations at the Catoosa test site. Most
drilling tests are run in the formations from 0
to 2000 ft. Most of the upper formations drill
at high rates (50 to 100 ft/hr). The
Mississippi Lime at 1275 ft is very hard and
has a reputation of damaging PDC bits.
During our tests, drilling the Mississippi lime
with the HP-CT system will be attempted
even though it is not expected that the jets
will help in this formation. This formation will
be approached carefully to avoid damaging
the bit and, if necessary, the HP-CT BHA will
be pulled and a conventional low pressure
roller bit will be used to drill through this
formation. MTI will acquire a roller bit for this
purpose. During the test a low-pressure bit
will be used to obtain comparative data.
Which will mean tripping several times
during the test. The Red Fork Sandstone
and the Booch Sandstone would be good
formations for this comparison.

The formations at Catoosa are stable

and should present no wellbore stability Figure 4. Catoosa Lithology
problems. However, the Bartlesville
Sandstone can take water and it may be necessary to add some bentonite to control lost
circulation. Caution will be taken when drilling this formation. Also some of the shale
formations will sluff. This problem will be avoided by not leaving the assembly in the hole at
night. The short duration of the test will help solve this problem as well.

To maximize hours on the BHA, considering the high drilling rates expected, this test
will drill down to the granite basement at 3,000 ft. In addition the most uniform drilling
formation is the Arbuckle, a hard dolomite. This formation will be another good location to
get comparative rates between the HP-CT and conventional system.

DE-FC26-97FT33063 9 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

Test Sequence
1. BJ Services will mobilize on Monday and drive to Catoosa from Ardmore, Oklahoma
on Monday night or Tuesday morning.

2. BJ will rig up at Catoosa on the first wellhead. Which Catoosa will prepare prior to
test date.

3. BJ will put on a jet head and wash to the well bottom, making sure it is clean and to
test the mud system.

4. BJ will pump through the CT to clean the system.

5. The jet head will be pulled and the HP-CT BHA will be assembled in the well.
Attachment B has a diagram of the each BHA.

6. The 6 in. PDC jet bit will be made up to the 4¾-in. HP motor and the assembly lifted
into the well where, using a collar clamp, it will be suspended on the BOP stack.

7. Using portable tongs, the individual BHA comments will be added including drill
collars to provide 3,000 to 4,500 lb of bit weight (2 to 3 collars). Each BHA
component will be raised into position using a crane and a lifting sub. A swivel on the
crane hook will allow the components to be rotated during make up.

8. Once the BHA has been made up and attached to the coiled tubing, the pumps will
be started at low flow and low pressure and the BHA run to bottom. The low pressure
and low flow rates will keep the bit from plugging and mud from entering the motor
during the trip into the well.

9. Once on bottom, the flow will be increased to approximately 180 gpm or until the
proper pressure (10,000 psi) is reached. Drilling will then begin.

10. Drilling will continue down to 450 ft, into the Skinner Sand stone. Weight on bit
(WOB) will be varied which drilling and data taken to document the change in
performance.

11. Periodically while drilling, the driller will conduct on bottom and off bottom pressure
tests. If the motor is operating, there should be 300 to 1000 psi difference in the two
pressure readings. These tests are to make sure that the motor is operating and that
we are only jet drilling.

12. At 450 ft, the BHA will be tripped and a low-pressure bit will replace the high-
pressure bit. Simply replacing the nozzles in the bit will make this change. The bit
pressure drop minimum will be 1000 psi to ensure that enough cooling fluid passes
through the bearing pack and the diamond thrust bearings. Nozzle combinations, as
shown in the chart below, allow the bit to have pressure drops of 9000, 7000, and
1000 psi. Several different bit pressure drops will be used to measure the effect on
the penetration rate. After selecting the desired pressure and changing the nozzle
configuration the assembly will be run back into the well and drilling continued. A
minimum of three different pressures will be tested in the Skinner Sandstone (9,000,
7,000 and 1,000 psi). If 7,000 psi shows good results, then a test will be conducted

DE-FC26-97FT33063 10 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling
6 Inch High Pressure Bit Nozzle Set-up

Nozzle
Factor 0.97

Existing Nozzles Nozzles to be Added

(3) Gage (2) Center (1) Crossfeed 1 Nozzle 2 Nozzles 3 Nozzles
0.106 0.100 0.082

Bit Pressure Flow Total Operating Flow Flow Req'd.

9000 92.6 54.9 18.5 166.0 165 0.0

7000 81.7 48.4 16.3 146.4 165 18.6 0.088 0.062 0.051
5000 69.0 40.9 13.8 123.7 165 41.3 0.142 0.100 0.082
1000 30.9 18.3 6.2 55.3 165 109.7 0.346 0.245 0.200

Existing Nozzles
(Change (2)@.100 to (2)@.167)
(3) Gage (2) Center (1) Crossfeed 1 Nozzle 2 Nozzles 3 Nozzles
0.106 0.167 0.082

Bit Pressure Flow Total Operating Flow Flow Req'd.

1000 30.9 51.1 6.2 88.1 165 76.9 0.290 0.205 0.167

Color Code
Change Existing
Add to Existing
Not Available

at 5,000 psi in the Red Fork Sandstone. A major comparison between conventional
drilling (1,000 psi) and high-pressure drilling (9,000 psi) will be conducted in the
Booch Sandstone and in the Arbuckle dolomite.

13. After comparative data are gathered with a low-pressure bit in the Skinner, Red fork,
and Booch, the BHA will be tripped out again and high-pressure drilling resumed.

14. After drilling to a depth of 1800 ft, the BHA will again be tripped out and the bit
replaced with a low-pressure bit. The BHA will be tripped back into the well and data
collected to compare drilling performance with high and low bit pressure drops.

15. At a maximum depth of 2000 ft, the BHA will be tripped out and the well completed to
3000 ft with the high-pressure system.

16. ROP, pressure, flow, and formation data will be recorded throughout the test.

17. At 3000 ft, the BHA will be tripped and testing of the 6-in. system completed.

18. The CT rig will be moved to the second well and rigged up for testing the 4¾-in.
system consistency of the 3⅛-in. motor with a fluid by-pass nozzle in the rotor so that
adequate cleaning can be achieved with the 4¾-in. bit. The motor can be run at 100
gpm, over speeding the motor, with no nozzle. However, this is 25% more than the
rated flow, which will shorten the life of the motor significantly. The manufacturer’s
opinion will be solicited on this before the test.

19. The new BHA will be assembled in the same manner as the previous assembly.
Once made up, the assembly will be run to bottom and drilling begun.

DE-FC26-97FT33063 11 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

20. Bit weight and flow will be varied during the drilling and data taken to document the
change in performance as a function of these parameters.

21. Drilling will continue to a depth of 1000 ft (Booch sandstone). Where the BHA will be
tripped from the well and the high pressure bit replaced with a low-pressure bit.

22. After drilling proceeds to 1200 ft (or enough time to obtain comparative drilling data),
the BHA will be tripped and the high-pressure bit put back into the BHA.

23. Drilling will continue into the Arbuckle where a second test will be run to get
comparative data between high-pressure and low pressure drilling. Location and
duration of this test will be based on data taken from the test using the 6-in. bit and
the 4¾-in. motor.

24. After low-pressure drilling is complete, the well will be completed to 3000 ft using the
high-pressure assembly.

25. ROP flow, pressure, and formation data will be recorded throughout the test.

Test Conclusion
The test will be concluded on fulfillment of the test plan or when MTI, BJ, and DOE
mutually conclude that (1) enough data have been obtained or (2) continuing no longer
makes sense. Reasons for terminating the test may include equipment failure, better or
poorer than expected performance, completion of test objectives etc.

Data Analysis
After tests are completed, MTI will return to Houston and analyze the data and
present the results to BJ and DOE for comment. A topical report will be issued summarizing
the test results. Modification of the motor and/or bits will be based on these first shallow field
tests.

Continued Shallow Field Tests

At the conclusion of these tests, more shallow field tests will be run if necessary.
These tests may be run at the Catoosa facility or on actual wells. Items to be tested will
include the small 111/16-in. drilling and side-jetting system and fatigue tests on the QT 1200
CT string purchased by MTI in Phase II. If tests in actual wells are conducted, it is expected
that the operator will cost-share the test by paying for BJ’s services, motor rental, and bits.
The project will only supply engineers to observe and record data during drilling.

The shallow field tests will be followed by deep field tests (8,500 to 10,000 ft).

DE-FC26-97FT33063 12 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

Bottom Hole Assembly (BHA)

Three BHAs will drill in the shallow test wells. The first is a simple jetting assembly to
clean out the wells before drilling begins. This assembly is shown in Attachment B. The
second BHA will test the 4¾-in. motor and 6-in. bit, while BHA 3 will use the 3⅛-in. motor
and 3¾- and 4¾-in. bits.

Proper torquing of the tool joints in the BHA of the HPCT system is critical. Failure to
torque threads to appropriate levels could result in a washout from the high-pressure drilling
mud. This is not typically a problem in coiled tubing applications so the lack of tongs to aid
in this effort has not been addressed in conventional coil-tubing applications. Current
practices us pipe wrenches and cheater pipes to make up joints; this is unacceptable, so a
method to make up joints for these tests was needed. A system using manual tongs
energized with a hydraulic cylinder has been located. In Figure 5, the tongs are suspended
from wire rope passed through a pulley. This pulley is then suspended from a crane or other
support. The cable and pulley system allows the position (top to bottom) to be easily
adjusted. This allows the operator to quickly change from make up to breakout on any joint.

Since the weight of the tongs and

cylinder are supported, the system is
much safer than using pipe wrenches,
which can be dropped. The cylinder also
prevents injury to personnel by
eliminating the need to push or pull on
cheater pipes. Because of the
configuration of the well head and the
equipment that mounts on the well head,
such as the blow out preventer stack and
the injector, it may be necessary to make
up joints above ground level. This tong
system will make these operations much
safer and easier to accomplish. Correct
make-up of the joints is improved with
the tong system since a gauge on the
cylinder will give the exact load being Figure 5. Hydraulic Tongs
applied to the tongs.

DE-FC26-97FT33063 13 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

Attachment A-1 – Catoosa Price List

DE-FC26-97FT33063 14 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

DE-FC26-97FT33063 15 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

Attachment A-2 – Bottom Hole Assemblies

DE-FC26-97FT33063 16 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

DE-FC26-97FT33063 17 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

DE-FC26-97FT33063 18 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

DE-FC26-97FT33063 19 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Engineered Test Plan—DOE High-Pressure Coiled-Tubing Jet Kerf Drilling

Attachment A-3 – MTI Equipment List

1. 2 – 440 horsepower Ellis Williams Mud pumps with high-pressure (10,000 psi) fluid
ends

2. Controller for mud pumps in item no. 1

3. High-pressure hose to hook pumps to coiled-tubing manifold

4. 1 set of hydraulically actuated tongs to make up BHA components (15,000 ft-lb)

5. 2 – 6 in. diameter PDC bits. Nozzle configuration will allow this bits to be used at high-
pressure (10,000 psi) or low-pressure (1,000 psi) operation

6. 2 – 4¾-in. diameter PDC bits. Same as item 5

7. 1 – 3¾-in. diameter PDC bits. Same as item 5

8. 1 – 4¾-in. diameter high-pressure Moineau motor

9. 2 – 3⅛-in. diameter high-pressure Moineau motors

10. 6 – 4¾-in. drill collars

11. 6 – 3.5 in. drill collars

12. 2 – 3.5 in. screen sub

13. 2 – 3.5 in. hydraulic disconnect sub

14. 2 – 3.5 in. double Check valve sub

15. 2 – 3.5 in slip connector sub

16. 1 –2⅜ Reg pin x 2⅜ IF box crossover sub

17. 1 – 2⅜ IF box x 3-1/3 IF pin crossover sub

DE-FC26-97FT33063 20 of 20 Maurer Technology Inc.

Final Report – Appendix A
 Appendix B
Catoosa HP-CT Shallow Field Test Log

February 11, 2002

7:30 AM
Arrived on site at GRI Catoosa facility.

8:00 AM
BJ arrived on site. Had meeting with GRI, BJ, and MTI to determine placement of CT
equipment including, HP pumps, pump charge line, return line. Decision is made to use main rig
tanks and mud systems.

8:55 AM
Held safety meeting, Ron Bray presided. He covered site regulations and passed out a
one-page flyer with rules. Contacts are Steve Andrews for GRI, Doug Freeman for BJ, and
John Cohen for MTI. BJ will hold a second meeting on high-pressure safety after rig-up is
completed.

9:10 AM
Began rig-up of CT unit and preparation of wellhead. A new flange will have to be
welded onto the current wellhead, as the flange in place is too large.

1:10 PM
CT rig is in place and tubing has been stabbed into the injector. BJ pump trucks are in
place and have plumbed HP lines to connect to coil rig. Working on supply and placing MTI
pumps. Using charge pump on Catoosa big rig water from the main tank will be feed through a
screen assembly supplied by MTI. Flow out of the screen assembly will be plumbed to BJ and
MTI pumps.

Ordered lunch for crew to keep progress on set up moving forward. Curtis Leitko has set
up nozzles on 6-in. bit to start test. Charles Evans is concentrating on supply lines to the pumps.

Catoosa welder is setting up wellhead by welding on a nipple for a 7-1/16 in. flange. BJ
has flange x-over to go from this to 4-1/16 flange which is what is on the bottom of the injector
and BOP stack.

BJ brought out two pump trucks—one that goes with the rig and has approximately 1000
hp and a second out of the pump division that is much larger (V-16 diesel) and can supply 4
barrels at 15,000 psi.

3:51 PM
Rigged up flow system and injector assembly. Plan is to go to bottom with tube only to
make sure well is clear. If it is, we will make up BHA components so that we will be ready to
start drilling tomorrow morning.

DE-FC26-97FT33063 1 of 4 Maurer Technology Inc.

Final Report – Appendix B
 Catoosa HP-CT Shallow Field Test Log

4:15 PM
Rigged up to well preparing to run into hole.

4:33 PM
Running to bottom with bare coil. Ran in 200 ft and did not tag bottom. Well should have
been 165 ft. Made up BHA components. Have installed CT connector onto tubing and pull
tested.

6:16 PM
Have completed for the day. Will resume tomorrow completing BHA and start drilling.

February 12, 2002

7: 00 AM
Arrived on site starting equipment and beginning to complete BHA make up.

9:04 AM
All BHA components that can be made up on the bench have been completed. The CT
connector and motor head assembly have been installed onto the coil. The next step is to load
the coil with water and pressure test the assembly. Then the motor will be lifted into the well and
mated with a drill collar. This assembly will be pressure tested if the crane can lift the assembly
from the hole. Two drill collars will be used to help reduce vibration at the CT connector.

11:45 AM
Still trying to get a pressure test of the CT components. Had a bad valve on the coil truck
in the reel and plugged the needle valve on the pull plate with sand. Took off QC and plumbed
through unit and are now retesting to see if joints hold pressure. Had leak at QC joint, needed
larger O-ring to make up joint. This has been accomplished.

Talked to John Rogers about test sequence. Trying to explain the need to be flexible to
gain as much useful data as possible. John arrived on site this morning at 7:30 AM.

12:43 PM
Still trying to get good pressure test. Have removed MTI pumps from the line.

1:43 PM
Have completed pressure test. Making up BHA with two drill collars. After make up will
pressure test all joints up to the motor. The only joint that will not be tested is the one between
the motor and the Kelly valve.

2:51 PM
Making up last of joints on BHA.

4:09 PM
Still fighting with assembly. Trying to lower into hole, but cannot get onto upper small
components (motor head assembly). Will not be able to drill today, but hope to get pressure test
done.

4:25 PM
Have leaking joint on CT motor header assembly. Trying to tighten joint.

DE-FC26-97FT33063 2 of 4 Maurer Technology Inc.

Final Report – Appendix B
 Catoosa HP-CT Shallow Field Test Log

5:44 PM
Pressure tested motor and collar. Testing upper connection. If good, will set injector on
well and blow out motor and coil with nitrogen. Will start drilling tomorrow.

6:12 PM
Completed second pressure test. Have made injector up to wellhead. Plan to start
drilling tomorrow.

February 13, 2002

7:00 AM
Arrived on site. Will have safety meeting and then go into hole. Must first find bottom,
and begin drilling.

10:23 AM
Started drilling at a depth of 175 ft. Had good rates of 300 ft/hr. Continued until 10:43 AM
when we stopped to clean old mud and build polymer.

12:17 PM
Started drilling again. Pump pressure increased from 8500 psi to 9500 psi. Drilling at
very good rates. Unusual pressure spikes at 12:36. Slowed flow and pump pressure returned to
normal. Increased flow and pressure went up again. Decided to pull system from well at 1:00
PM to check screens, motor and bit.

3:35 PM
Found rubber in the bit screen. This must be from the stator. We will rig up the small
motors and go back into hole with those.

5:24 PM
BJ is pressure testing small assembly at this time. Will finish pressure test and button up
wellhead and start drilling in the morning.

John Rogers suggested having a lesson-learned meeting after this test. I believe this is a
good idea.

6:36 PM
Found screen sub above collars full of ceramic frac sand. This is what caused the
problem. We will go back in with the large motor in the morning.

February 14, 2002

7:00 AM
Arrived on site, held safety meeting and went over plans for day. We will come out of the
hole and remove the small assembly. While we are rigging up the large motor BJ will reattach to
the wellhead with open coil. A high-pressure inline filter will be added before the coil. While the
well is open, BJ will pump 5 barrels per minute and try to remove all the frac sand that we found
in the filter yesterday.

9:36 AM
Still cleaning out frac sand. Have found some in inline filter. Will start going back in with
larger motor assembly.

DE-FC26-97FT33063 3 of 4 Maurer Technology Inc.

Final Report – Appendix B
 Catoosa HP-CT Shallow Field Test Log

10:52 AM
A BJ worker was injured while making up large motor assembly. The MTI-supplied tongs
were used improperly. A keeper pin was not put into place before torquing up a joint. The
hydraulic cylinder that energizes the tongs slipped off the wrench and the stored energy in the
wrench caused it to swing and hit a worker in the arm. The worker is being taken to an area
hospital for an X-ray.

1:12 PM
Cannot get out of casing and pressure is lower than it should be. Will pull out to see if
circulation sub opened.

6:56 PM
Have prepared small tool for drilling tomorrow. Due to budget constraints tomorrow is the
last day of drilling. We are worried that the large tool could not go through the casing. It is
possible that the small tools could get stuck.

February 15, 2002

7:00 AM
Arrived on site and continued preparing for small motor test. Held safety meeting and
then rigged up MTI pumps.

9:00 AM
Started going to bottom, but hit constriction at 147 ft. Decided to pull tool from well and
blow hole dry and get camera shot of obstruction.

12:00 PM
Went in with CT and got stuck at 150 ft. Had to pull with 9,000 lb to free coil. Cleared
hole with nitrogen and ordered camera inspection.

DE-FC26-97FT33063 4 of 4 Maurer Technology Inc.

Final Report – Appendix B
 Joint Work Statement for CRADA No. 2004-046

Appendix C

Joint Work Statement

for
CRADA No. 2004-046
BETWEEN

U.S. Department of Energy

Naval Petroleum Reserve No. 3 (NPR-3)
Rocky Mountain Oilfield Testing Center

AND

Maurer Technology Inc.

High-Pressure Drilling Test

The purpose of this test is to determine the performance of a high-pressure jet kerf drilling
system. The drilling system, as developed by Maurer, uses high-pressure water jets to cut radial
slots in the rock ahead of the drill bit and PDC diamond cutters to break off rock ledges between
these slots.

1. Scope

The test will consist of drilling a new grass roots well at the Naval Petroleum Reserve 3. The
proposed location, 48-X-28, will target the Tensleep formation at an approximate depth of 5500
ft with additional footage drilled as needed to complete the test. The location will use the most
recent 3D seismic information and mapping interpretation.

The location for the rig will be constructed. Rat-hole/mouse-hole drillers will be used to prepare
the conductor, rat hole, and mouse hole for DOE #2 rig. RMOTC will construct a new reserve
pit. DOE Rig 2 will be moved to location and rigged up.

Surface casing (9-5/8”) will be set across the Shannon formation at approximately 500 ft. Note:
Seismic test with Idaho National Engineering and Environmental Laboratory (INEEL) will be
conducted for approximately 24 hours prior to setting casing and cementing.

RMOTC will drill out of surface pipe with a 8½” bit to approximately 4200 feet. The attached
drilling prognosis (Attachment C-1) details the specific operation. RMOTC will run a suite of
openhole logs before intermediate casing is set. Attachment C-2 details Maurer’s summary to
date of their technology development and proposal to work with RMOTC for this test of their
drilling system.

At depth, 7” 23# casing will be run and cemented. Smaller BOP equipment will be rigged up
after cement is set. The remaining high pressure equipment will be rigged up and pressure
tested to 10,000 psi. RMOTC will trip in with 3½” drill pipe and conventional bit and drill out the

DE-FC26-97FT33063 1 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

shoe and 5 feet of new formation. At this time, if conditions permit, a single trip test of Maurer’s
downhole sub will be communication tested. After this initial test is complete, the high-pressure
downhole drilling equipment will be run in the hole.

Prior to commencing high-pressure drilling operations, the mud tanks will be dumped and all
possible drillings solids removed from the system. High-pressure drilling will commence starting
at approximately 4200 feet down to an estimated TD of 6200 ft.

TASK 1: RMOTC will submit an Application for Permit to Drill (APD) with the Wyoming Oil and
Gas Conservation Commission (WOGCC). RMOTC will build the location for testing.
Rat hole/Mouse hole will be drilled and conductor set. DOE Rig N0 2 will be moved to
48-X-28 location. Surface casing will be set at approximately 500 ft.

TASK 2: RMOTC will deepen 48-X-28 to approximately 4200 feet. Open-hole logs will be run.
7” 23# intermediate casing will be set and cemented. The mud system will be cleaned
to remove solids from the system.

TASK 3 RMOTC will test the high pressure system to 10,000 psi. One trip communication test
of Maurer’s equipment will be completed. High pressure drilling will commence from
4200 to an estimated TD of 6200 ft.

TASK 4: At the end of the project, in accordance with Article XI of the CRADA, RMOTC and
Maurer will jointly prepare a final report summarizing the test results.

2. Personnel

RMOTC will provide the following personnel:

Drilling Crews
Tool pusher
Field Engineer
Project Engineer
Vac Truck Driver(s)
Heavy Equipment Operator(s)
Other field support personnel as needed

Maurer will provide the following personnel:

Test engineer
Technical Representative to work jointly on final report
Other outside personnel as required

3. Equipment and Material

RMOTC will provide the following equipment:

Drilling Rig with associated existing equipment
BOP equipment, if required
Vac Truck to haul fluids
Field Heavy equipment as needed
Forklift
Other field equipment as needed
Rat hole/mouse hole drillers

DE-FC26-97FT33063 2 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

Cementing services and equipment

Rental high pressure drill pipe
High pressure mud pump
High pressure drilling swivel
High pressure kelly hose
High pressure standpipe and surface lines
High pressure valves.
Casing 9-5/8” and 7”
Casing crew
Openhole loggers
Drill bits – 6-1/8”
Drilling mud
Mud logging services

Maurer will provide the following Equipment and Materials:

Specialized high pressure drilling equipment including bit, mud motor, and collars.

4. Milestones

Spud Date Estimated February 28, 2004

Start of Test: Estimated March 14 2004 (4200 ft)
Completion of Test: Estimated March 31, 2004
Report completion: Estimated June 30, 2004
CRADA expiration date: December 31, 2004

The test will be deemed complete upon meeting the objective as set forth in the JWS. If the
objective of the test is not met due to drilling problems, cost issues, Health, Safety and/or
Environmental issues, or other reasons, the project can be terminated by mutual agreement in
accordance with Article XXIII Termination.

5. Budget Considerations

RMOTC and Maurer will cost share in this test. Maurer cost share will be governed by their
agreement with National Energy Technology Laboratory (NETL). See Attachment C-2. Maurer’s
in-kind contribution is estimated at $184,350 based on their agreement with NETL.

NETL has also funded RMOTC $250,000 to perform this test. This funding will be used to offset
operational costs involved with the testing from 4200–6200 ft. Remaining funding will be used in
a systematic manner to offset costs to reach 4200 ft including rental of high pressure
equipment, casing, cementing, drilling operations, and other costs as identified.

RMOTC’s contribution includes approximately $500,000 toward the purchase of a new mud
pump. Additional costs include the purchase of a high pressure Kelly hose, drilling swivel,
surface valves, and hard line. RMOTC will also provide mud loggers, drilling mud, open-hole
loggers, etc.

DE-FC26-97FT33063 3 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

At the conclusion of testing operations, RMOTC will assume full responsibility for Plug and
Abandonment (P&A) operations.

RMOTC will provide equipment and materials as set forth in Section 3 above.

6. Environmental, Safety, and Health

Participant shall comply with all applicable Federal, State, and local environmental, safety and
health laws, rules and regulations. RMOTC will be responsible for all Plug and Abandonment.
The well will remain as completed until it is deemed necessary to plug and abandon the
Amsden/Madison.

7. Required Insurance

The Participant shall procure and maintain during the entire period of the CRADA the following
minimum insurance. Prior to commencement of work under this CRADA the Participant shall
furnish to the Contracting Officer a certificate or written statement of the required insurance. The
policies evidencing required insurance shall contain an endorsement to the effect that
cancellation or any material change in the policies adversely affecting the interests of the
Government in such insurance shall not be effective for such period as may be prescribed by
the laws of the State in which this CRADA is to be performed and in no event less than 30 days
after written notice thereof to the Contracting Officer.

TYPE AMOUNT
Worker’s Compensation &
Statutory
Occupational Disease
Employer’s Liability Insurance $100,000
Comprehensive General Bodily Injury
Liability $500,000 per occurrence
$200,000 per person
$500,000 per occurrence for
Automotive Liability bodily injury
$20,000 per occurrence for
property damage

The Participant shall procure and maintain during the entire period of the CRADA the required
minimum insurance. Prior to commencement of work under this CRADA the Participant shall
furnish to the Contracting Officer a certificate or written statement of the required insurance.

8. Budget Reporting

At the conclusion of the test, the Participant shall supply the Department of Energy a summary
of expenses involved in the testing operation including in-kind travel, labor, subsistence, etc.

DE-FC26-97FT33063 4 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

Attachment C-1
Drilling Prognosis

Rocky Mountain Oilfield Testing Center & Maurer Technology Inc

13135 South Dairy Ashford Rd. Suite 800
Sugar Land, Texas 77478
DRILLING PROGNOSIS
February 17, 2004
U.S. Naval Petroleum Reserve No. 3 Natrona County, Wyoming

Well Number: 48–X-28 CRADA No:

API well number: 49-025-TBA
Location: 490' FSL, 2,449' FWL, Sec. 28, T39N-R78W
Elevations: 5104.65' GL. 5114.65' K.B. Lat 43.314785 Long 106.221955
Estimated T.D.: 6200'
Objective: Test High Pressure Drilling System from 4200 – 6200 ft
Secondary Targets: Seismic Test with INEEL
Core Tensleep for CO2 Pilot Design

PROCEDURE
1. Survey and build location.
2. Prepare APD and forward to the WOGCC.
3. Drill rat hole, mouse hole, and conductor hole. Set 13-3/8" conductor pipe to 45'(+/-)
depth. Cement with ready mix concrete.
4. MIRU DOE Rig #2 with substructure. Revamp standpipe and surface valves.
5. Install 13-3/8" drilling nipple
6. Drill out conductor and drill 12-1/4" hole to ±500' with water.
7. During drilling, add KCL for 3% KCl mud to stabilize shale. Let water mud up as drilling
proceeds
8. Perform mud sweeps with polymer as needed to clean hole.
9. At depth, short trip to surface and back to depth to ensure hole is clean.
10. Rig Up Idaho National Labs (INEEL) for seismic test. Shut down rig for 24 hrs for minimal
noise. Complete seismic test. RD INEEL.
11. RIH with 12-1/4” bit to TD. Wash and ream as necessary. POOH.
12. RU casing crew to run 12 jt 9-5/8" 47# casing to TD. Set and cement casing.
13. WOC. If necessary, give crews time off.
14. Nipple up 9-5/8 casing head using 2-2" ball valves.
15. Nipple up 11" BOP and test to 500 psi with test plug. RU drilling nipple.
16. Rig up mud loggers.
17. Drill out surface casing with 8½" bit using LSND mud. Maintain good fluid loss.

DE-FC26-97FT33063 5 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

18. Drill through the Wall Creek zones slowly and with LCM to build good wall mud cake to
control lost circulation.
19. Drill to about ±4200 (top of the Crow Mountain). Short trip as necessary to maintain hole.
20. At depth, condition hole. POOH. RU loggers. Log intermediate hole from 500–4200 ft with
gr/density/neutron/ HRLA and sonic or other logs as directed. RD loggers.
21. TIH with 8½” bit. Circulate and condition hole. TOOH for casing. LD 4½” DP and 6” drill
collars.
22. RU casing crew. Run 7” 23# casing to depth. Set and cement casing.
23. WOC. If necessary, give crews time off.
24. Nipple up 7” casing head using 2-2" ball valves.
25. Nipple up 7-1/16”" BOP and test to 500 psi with test plug. RU drilling nipple.
26. RU rental equipment. Pressure test system to 10,000 psi using BOP testers. RIH with 3½”
XT drillpipe and 6⅛” bit. Drill out casing shoe and 5 ft of new formation. POOH. Dump and
clean mud tanks. Ensure no solids are contained in mud system. Build new mud system.
27. PU Maurer bit, mud motor, collars. RIH to 1000 ft. Perform rate/pressure calibration run.
RIH to depth. Begin drilling after mud system complete and equipment performing
satisfactorily.
24. Drill with Maurer system from 4200 to 6200 or as test results dictate.
25. POOH. RU openhole loggers. Log bottom interval of 4200–6200 ft.
26. If the Tensleep appears productive based on mud logs and openhole logs or possibly even
core, procedures will be developed to run a liner in the hole, cement, and complete.

At this point, the Maurer test will be complete. Several possibilities are possible prior to end of
the test. One possibility is that the Maurer test does not reach TD because of unknown reasons.
It is assumed that drilling will continue, in some manner, to reach the Tensleep core point for the
CO2 effort. At that point, procedures will be presented to govern the Tensleep coring operation.

DE-FC26-97FT33063 6 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

48-X-28 ESTIMATED LOG TOPS

KB Elev = 5115
FORMATION MEMBER KB Thick ASL
STEELE SH SHANNON A 247 80 4868
STEELE SH SHANNON B 332 145 4783
STEELE SH TELEGRAPH CREEK 477 132 4638
STEELE SH BRITTLE 609 393 4506
STEELE SH FISHTOOTH 1002 516 4113
STEELE SH GREY DUST 1518 102 3597
STEELE SH ARDMORE 1620 125 3495
NIOBRARA SH WHITE SPECKS 1745 244 3370
NIOBRARA SH SMOKEY GAP 1989 219 3126
CARLISLE SH 2208 242 2907
FRONTIER 1 WALL CREEK 2450 384 2665
FRONTIER 2 WALL CREEK 2834 254 2281
FRONTIER 3 WALL CREEK 3088 267 2027
MOWRY SH 3355 237 1760
MUDDY SS 3592 18 1523
THERMOPOLIS SH 3610 133 1505
DAKOTA SS 3743 72 1372
LAKOTA CGL 3815 7 1300
MORRISON 3822 213 1293
SUNDANCE 4035 82 1080
SUNDANCE LAK 4117 95 998
SUNDANCE LAK EVAPORITE 4212 12 903
SUNDANCE HUELETT SS 4224 4 891
SUNDANCE STOCKDALE BVR SHALE 4228 43 887
SUNDANCE CANYON SPRINGS SS 4271 82 844
CHUGWATER/CROW MTN 4353 86 762
CHUGWATER/ALCOVA 4439 22 676
CHUGWATER/RED PEAKS 4461 590 654
GOOSE EGG 5051 167 64
GOOSE EGG FORELLE 5218 73 -103
GOOSE EGG MINNEKAHTA 5291 17 -176
GOOSE EGG OPECHE 5308 34 -193
TENSLEEP 5342 11 -227
TENSLEEP TOP A SS 5353 50 -238
TENSLEEP BASE A SS 5403 29 -288
TENSLEEP TOP B SS 5432 66 -317
TENSLEEP BASE B SS 5498 47 -383
TENSLEEP TOP C SS 5545 20 -430
TENSLEEP BASE C SS 5565 95 -450
AMSDEN 5805 240 -690

MUD PROGRAM:

12-l/4"Hole to 500 ft -3% KCl Mud (per mud engineers direction)

8-1/2" Hole to 4200 ft LSND Mud with the fluid loss control to minimize shale sloughing and
promote hole stability for openhole logs. Fluid loss below 10 cm3. Lost Circulation Control as
needed with LCM. Cement squeeze of Second Wall Creek with fiberglass tail pipe to be
considered.

DE-FC26-97FT33063 7 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

6” Hole from 4200 to 6200. 6%KCl with NaCl for weight or as directed by mud engineer.

ELECTRIC LOGGING PROGRAM:

HRLA/ GR/ Cal/ CNL CDL from 500 to 4200 ft. Second run with sonic log.
Logging from 4200–6200 TBD. Other logging as requested.
Logging Subcontractor: Schlumberger Wireline Phone: (307) 234-8981

CASING PROGRAM:
Conductor Casing
1 joint of 13-3/8" 54.5# K-55 Cementing Hardware – None

Surface Casing
12 Joints of 9-5/8" 47# P-110 Cementing Hardware
1 - 9-5/8" Guide Shoe
1 - 9-5/8" Insert Float Collar
1 - 9-5/8" Stop Ring
1 - 9-5/8" Top Rubber Plug
6 - 9-5/8" Centralizers
1 - Threadlock Kit

Install centralizers on bottom 3 collars and alternating collars above

Production Casing:
About 100 joints - 7" , 23#, J55, LT&C
Cementing Hardware:
1 - 7" Float Shoe ( fill-up type)
1 - 7" Float Collar ( differential fill type)
1-7" Stop Ring (limit clamp)
1 - Top Rubber Plug
15 - 7" Centralizers
1 - Threadlock Kit

NOTES:
1. Production Casing program is approximate.
2. Install float shoe.
3. Use threadlock compound on float shoe and float collar.
4. Install centralizer 5 ft above float shoe and on alternate collars.

CEMENTING PROGRAM
Cementing Subcontractor: Rocky Mountain Cementers (307) 234-2212
Surface Casing: TBD
1. Preflush with 36 bbl. 3% KCl water containing 3 sacks KCl, 3 sacks gel, and 5 gallons
surfactant. Lost circulation material may also be added to preflush. Preflush may be varied
according to hole conditions.

If hole is drilled with non-dispersed mud, add an 18 bbl spacer containing KCl and
surfactant.

DE-FC26-97FT33063 8 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

If hole contains weighted mud, add a weighted mud sweep to avoid cement contamination.
At maximum anticipated density, the mud will be heavier than the cement slurry.

2. Cement with ___sx. Class "G" cement containing 2% CaCl and l/4#/sk celloflake. Cement
volume is based on annular volume + __ % excess.

Yield: ___cu ft/sk Density: ___ Ib/gal Water Req.: 5.0 gal/sk

Production Casing: TBD

1. Preflush with 36 bbl, 3% KCl water containing 3 sacks KCl, 3 sacks gel, and 5 gallons
surfactant. Lost circulation material may also be added to preflush. Preflush may be
varied according to hole conditions.
2. If hole is drilled with non-dispersed mud, add an 18 bbl. spacer containing KCl and
surfactant.
3. Cement with ___ sx. Class "G" cement containing 50% Pozlan, 2% CaCl. and l/4#/sk
celloflake and tail in 1st stage with 50sx of neat class "G". 1st stage is about ___ sacks
of 50-50 Poz and 2nd stage is about ___ sacks. Exact number of sacks will be
calculated from open hole caliper log.
Cement volume is based on annular volume + ___ % excess covering critical zones. Yield:
____ cu ft/sk Density: ____1bs/gal Water Req.: ____ gal/sk

Wall Creek or Crow Mountain Squeeze: To be determined.

REPORTS:
1. All pertinent data and operations such as DST's, coring and casing shall be recorded on
the IADC-API Daily Drilling report. The White, Yellow, and Pink copies shall be given
each morning to the RMOTC Project Manager, along with all delivery tickets signed and
received. The green copy shall remain with the tool pushers and the white copy will
remain in the book.
2. As of 7:00 a.m. each morning, a report by the tool pusher or the RMOTC Project
Engineer shall be e-mailed or faxed into the Casper Office and include all pertinent data
or operations.

MAILING LIST:

Department of Energy Director

Naval Petroleum Reserve #3
907 N. Poplar
Suite 150 Casper, Wyoming 82601
B.
DISTRIBUTION OF LOGS. REPORTS. ETC.:
1. Government
2. Field Office ( for State) 2
3. Field Files 2
4. RMOTC Project Engineer 1
5. Geologist 1
6. Misc.

DE-FC26-97FT33063 9 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

PHONE NUMBERS:

NAVAL PETROLEUM AND OIL SHALE RESERVES

COLORADO, UTAH AND WYOMING
907 North Poplar, Suite 150 Casper, Wyoming 82601
261-5000 / 1-888-599-2200
FIELD ADDRESS: 7290 Salt Creek Route, 40 miles north of Casper, Wyoming
E-Mail Address: [email protected]

CASPER OFFICE
FAX (Main Office) ..................... 261-5817

MILLIKEN, Mark............................... 5162

SCHULTE, Ralph............................. 5024
Cell phone……………..262-5106
SPAHR, Larry .................................. 5025
Cell phone ............... 262-7812
RECEPTION (Kari) .......... …………..5000
TAYLOR, Mike………………………….5071
TUNISON, Doug .............................. 5006
Cell………… ..... ...262-8675
RMOTC PRESENTATION ROOM... 5003

9. FIELD OFFICE
FAX (ES&H - Kiki)..................... 437-9623

CRNICH, Dave 437-9610

Cell 262-7883
DAVIS, Dee… ........................... 437-9620
Smith, Tom …………………….437-9607
Cell………….………….262-8674
FOOTE, Cecil………………………437-9631
Cell phone. .............. 262-7813
HARDY, Steve .......................... 437-9632
Cell phone……………...262-7808
HOYER, Dave........................... 437-9634
Cell phone ............... 262-7807
SMALLWOOD, Dan .................. 437-9637
Cell phone ......................... 262-7814
TAYLOR, Mike ……………………437-9606
Cell…………………….262-7033

ES&H TRAINING ROOM .......... 437-9672

DIALING 911: From the field, press tab marked local line, dial 911.

All other field phones: Pick up the receiver, press intercom button then 71 plus number. Local calls simply dial
number. FTS, dial area code then number.

DE-FC26-97FT33063 10 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

SUBCONTRACTORS

Schlumberger 234 8981

Rocky Mtn. Cementers 234- 2212
Rick Husk
WY. Casing Service
Anchor Drilling Fluids USA, Inc. 237-258 l
Mud Engineer
Rat Hole Driller. RMR
Notify WOGCC verbally (234-7147) within 24 hours of spud and prior to BOP testing.

PREPARED BY: Ralph Schulte

February 18, 2004

Draft Version 1.01

DE-FC26-97FT33063 11 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

Attachment C-2

ADVANCED HIGH-PRESSURE
COILED-TUBING DRILLING SYSTEMS
Continuation Application Phase IIB for Budget Period 4
Cooperative Agreement No. DE-FC26-97FT33063

TP03-10

Submitted to:

U.S. DEPARTMENT OF ENERGY

National Energy Technology Laboratory
Attn: Lisa Kuzniar, Contract Specialist
3610 Collins Ferry Road
PO Box 880
Morgantown, West Virginia 26507-0880

August 8, 2003

DE-FC26-97FT33063 12 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

Table of Contents

Page
INTRODUCTION ........................................................................................................................ 14
PHASE II-A ACCOMPLISHMENTS............................................................................................ 15
PHASE III FIELD TESTING ........................................................................................................ 19
PHASE II-B WORK STATEMENT .............................................................................................. 22
DELIVERABLES ......................................................................................................................... 23
PROJECT SCHEDULE............................................................................................................... 25
PHASE II-B BUDGET SUMMARY.............................................................................................. 26

DE-FC26-97FT33063 13 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

Introduction
High drilling costs limit the development of many marginal gas reservoirs in the USA. This
project consists of the development of a high-pressure jet kerf drilling system that can drill three
to five times faster than conventional drills and thereby reduce drilling costs by 25 to 50%.

This drill utilizes high-pressure water jets to cut slots in the rock ahead of the drill bit and
PDC diamond cutters to break off rock ledges between these slots (Figure 1).

During Phase II, high-pressure motors were designed and manufactured along with high-
pressure PDC bits for use with this drilling system. This system was laboratory tested, and
drilled rocks at rates up to 1,600 ft/hr compared to 300 ft/hr for conventional motors and 150
ft/hr for rotary drilling.

Field tests conducted during phase III at the GRI Catoosa test site proved inconclusive
due to numerous problems during the test not associated with the drilling system. Details of the
test are covered in the Phase III field testing section. However, the problems concerned the
coiled tubing delivery system and the condition of the test well. As a result, the effectiveness of
the jet drilling system was never tested. Based on these results, the project was moved to a
Phase II B where a test, using jointed pipe, could be conducted on the jet drilling system itself.
This test will be run at the Rock Mountain Oil Test Center (RMOTC) in Wyoming.

DE-FC26-97FT33063 14 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

Phase II-A Accomplishments

This project developed a high-pressure coiled drilling system to drill in difficult slow drilling
formations. The system was to be conveyed into the hole with high-pressure coiled tubing. A
major oil field coiled tubing manufacturer was part of the team and worked on the development
of new tubing that would have long life while operating at high pressures. Figure 2 shows the
initial configuration of the system.

A major component of the system is a specially designed downhole mud motor. This
motor is equipped with a modified power section, diamond thrust bearings, and a high-pressure
labyrinth seal system. Figure 3 shows the high-pressure (10,000 psi) motor that was
successfully developed during Phase II.

Polycrystalline diamond (PDC) motor thrust bearings were developed that utilize PDC
diamond cutters to carry the thrust loads instead of steel ball bearings (Figure 4).

DE-FC26-97FT33063 15 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

These PDC bearings allow much higher thrust loads than conventional ball bearings
(16,800 lbs vs. 5,800 lbs), thus significantly increasing motor life and reliability (Figure 5).

High-pressure labyrinth seals were developed that allow the drilling motors to operate
reliably at 10,000 psi pressure (Figure 6). About 10% of the high-pressure fluid is diverted
through the diamond bearings to cool and lubricate them, the remaining fluid passes through
jets in the drill bit.

DE-FC26-97FT33063 16 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

An early concern of this project was that standard 1.5-inch QT-800 coiled tubing operating
at 10,000 psi pressure failed in fatigue after only 51 cycles in/out of the well. As a result, Quality
Tubing, a major oil field coiled tubing manufacturer, developed QT-1200 coiled tubing which
theoretically can be cycled 238 times at 10,000 psi before failure. The first reel of QT-1200 CT
was developed for use on this DOE project. Subsequent field testing of the QT-1200 showed
problems with the mode of failure and the life. Quality is doing more work on the metallurgy, but
the tubing cannot be used for this project at this time. In addition composite coiled tubing that
was seen as a backup tubing for this project has failed to meet expectations as well. These set
backs have lead to the field test that is being proposed for a Phase IIA. This field test will use
jointed pipe to convey the system.

Laboratory drilling tests of the high-pressure jet kerf drilling system showed its ability to
increase penetration rates in a number of different rock types. Figure 7 shows the results of
these tests. Glacier Bluff Dolomite has a compressive strength of 20,000 psi. In this formation
the rate increased over 208%.

DE-FC26-97FT33063 17 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

DE-FC26-97FT33063 18 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

Phase III Field Testing

A field test of the coiled tubing deployed, high-pressure jet kerf drilling system was
conducted at the Catoosa test site in February of 2002 (Figure 8).

BJ, the systems commercializer at the time, set up a coiled tubing rig with a large frac pump
over one of the test wells at the Catoosa site (Figure 9 & 10). After the coiled

tubing (CT) unit was in place, the bottom hole assembly (BHA) was rigged and run into the hole
(RIH). The coil and piping was flushed with drilling fluid before rig up to remove any frac
material left in the lines. Drilling was commenced and continued at approximately 300 ft/hr for a
short time. The drill string pressure spiked and flow decreased. During this period, large
quantities of cutting were coming over the shaker. These appeared to be cement and/or shale.

DE-FC26-97FT33063 19 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

The BHA was pulled to inspect the mud motor to see if the rubber stator had been damaged
and was plugging the tool. A surface examination could not reveal any damage, but a smaller
tool was rigged anyway and preparations made to run this tool. During pressure tests of the
small tool, it was determined that the cause of the problem was not the mud motor but a
plugged downhole screen. Despite blowing the pump and iron down, frac material remained in

the lines until the flow was increased to run the tool. With the increased flow and pressure
trapped frac sand was loosened and pumped down hole. A surface screen-sub, that would
have caught this sand, had been left out of the system. This allowed the frac sand (Figure 11)
that should have been caught at the surface to plug the downhole screen.

Once this discovery was made, the larger 4-3/4 in. motor was rigged up again and RIH.
However, the tool encountered resistance before reaching bottom and could not be run. Maurer
Technology personnel asked BJ at the time if the problem could be swelled tubing. BJ indicated

DE-FC26-97FT33063 20 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

that this could not be the problem and stated that the injector would be strong enough to push
the tubing through the injector even if it was swelled. Since no other cause could be determined
it was assumed that the casing had collapsed and this was preventing the tool from reaching the
bottom. The small motor was again rigged to see if it could get by the collapsed casing. Since
it could not, the test was terminated.

The hole was camera inspected after the test and this showed that the casing was not
collapsed. Maurer Technology requested that BJ inspect the coiled tubing and it was then
discovered that the tubing had indeed swelled. The swelling was severe enough that there was
no way for the tubing to pass through the stuffing box no matter how strong the injector was. As
part of the camera inspection, a sinker bar was run as well. It was discovered at this time that
the well was not 275 ft deep as was thought, but 600 ft deep. There is no explanation as to why
so many cuttings were coming across the screen during the first drilling test, but clearly the tool
was not drilling new formation.

While many valuable lessons were learned about running the tool and rigging up, no
drilling data was gathered during this test. It was determined that another test was needed and
that jointed pipe be used to avoid the problems with fatigue on the coiled tubing.

DE-FC26-97FT33063 21 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

Phase II-B Work Statement

Task 1 Rebuild High-Pressure Mud Motors

Under this task Maurer Technology will disassemble, inspect, and reassemble the 3-1/8 in.
(two) and 4-3/4 in. (one) mud motors that make up the HP drilling system. Any parts that are
found to be out of specification will be replaced. Once completed all of the motors will be
prepared for the tests. The deliverable for this task will be three mud motors that have been
rebuilt and are ready for field operation.

Task 2 Modify Rig

Under this task, RMOTC will prepare the rig for high pressure drilling. These preparations
will include purchasing a new pump capable of operation at 10,000 psi, upgrading rig piping and
stand pipe to 10,000 psi working pressure, and purchasing a rotary hose that has 10,000 or
greater working pressure. RMOTC will also manufacture a swivel for use during the test. This
swivel will be designed to be stationary during high-pressure operations, but will rotate to
facilitate make up of tool joints on the drill pipe. RMOTC will also review safety issues with
Maurer Technology engineers and install any necessary blast shields or other safety equipment
to protect rig hands and technical personnel during the test. Together, Maurer and RMOTC will
develop a safety plan addressing the use of high pressure drilling fluids. The deliverable for this
task is an upgraded rig capable of 10,000 psi operating pressure, safety equipment and a safety
plan.

Task 3 Test Rig at High Pressure

Under this task, RMOTC will test all of the modifications made to the rig for high-pressure
operation. If any equipment is found to be inadequate, RMOTC will further modify or upgrade to
meet the necessary minimum specifications. They will compile a report of the tests and this will
be the deliverable under this task.

Task 4 Locate HP Drill String

RMOTC, working with Maurer Technology, will determine the specifications needed for a high-
pressure drill string. RMOTC will then locate and secure a suitable drill string for this test.
RMOTC will test the tool joints for leaks at 10,000 psi and demonstrate that the joints can be
repeatedly made up without leaking. Failure to do this could result in a downhole washout and
loss of the drilling string and BHA. RMOTC and Maurer will produce a report on the drill string
specifications and results of the pressure tests. This report and the drill string will be the
deliverable for this task.

DE-FC26-97FT33063 22 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

Task 5 Test Coordination

Under this task, Maurer will work with RMOTC to plan the test, arrange logistics, and
conduct safety and rig modifications. Maurer personnel will travel to the rig site prior to the test
and meet with RMOTC personnel to review test plans, well plan, rig safety, and rig
modifications. The deliverable under this task will be a complete test plan for the high-pressure
jet kerf drilling test.

Task 6 Field Testing

Under this task, Maurer and RMOTC will test the high-pressure jet kerf drilling system in
an RMOTC well. The test will be conducted in such a manner to determine and demonstrate
the potential of the system including improved drilling rates, ease of field deployment, and
commercial potential. During the test different formations will be drilled and the performance of
the system in each documented. In addition, weigh-on-bit and flow rate will be varied to
determine system performance under varying operationing conditions. Data of critical
parameters such as flow, pump pressure, penetration rate, formation, and others will be
recorded during the test.

Task 7 Test Analysis

Once the test has been completed, Maurer engineers will analyze the test data. This
analysis will include a comparison to drilling rates on offset wells. The data will be compiled and
prepared for presentation in the final report and for use in technical papers and talks.

Task 8 Final Report

Under this task, Maurer Technology will prepare the final report and presentation on the
preparation (including rig modifications and HP system development) test plan, and test results.
The data analysis conducted in Task 7 will be used and presented in this final report. In
addition, Maurer Technology will prepare a technical paper on the test results for presentation at
the spring SPE meeting or other major technical conference. Maurer personnel will present this
paper at the conference. The deliverable under this task will include the final report and
presentation at Morgantown, WV, and the technical paper.

Deliverables

Task 1
o 4-3/4 in. high-pressure mud motor rebuilt
o two 3-1/8 in. high-pressure mud motors rebuilt

DE-FC26-97FT33063 23 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

Task 2
o Upgraded rig with 10,000 psi working pressure capability
o High-pressure safety equipment
o Safety plan

Task 3
o Report on high pressure test of upgraded rig

Task 4
o High-pressure drill string suitable for use on the test
o Report on the string specifications and results of pressure proof tests
demonstrating that joints can consistently be made up without leaking

Task 5
o Completed test plan

Task 8
o Final report
o Final presentation at FETC in Morgantown, WV
o Technical paper for SPE spring meeting or other major conference
o Technical paper presentation at technical conference

DE-FC26-97FT33063 24 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

Project Schedule

DE-FC26-97FT33063 25 of 26 Maurer Technology Inc.

Final Report – Appendix C
 Joint Work Statement for CRADA No. 2004-046

Phase II-B Budget Summary

The entire cost of the project is $184,530, of this amount $130,950 is for labor including
overhead, $8,000 for direct costs (shipping), $10,458 for travel and $35,113 in G&A. The
project cost sharing is 25.08%, or $46,280. The Department of Energy cost is $138,251.

Cost sharing comes from three sources; (1) Maurer Technology Inc. is supplying a back
up high pressure pump for the project at a value or $15,000. (2) Maurer Technology Inc. is cost
sharing the time for one technician during the field test and Dr. William Maurer’s time on the
project., and (3) Smith international is supplying and engineer to monitor the project to
determine if they see any commercial possibility from the technology. If they do, Smith will
consider commercializing the system.

DE-FC26-97FT33063 26 of 26 Maurer Technology Inc.

Final Report – Appendix C
 DOE-RMOTC-71014

Appendix D

MAURER TECHNOLOGY INC.:

HIGH-PRESSURE JET KERF DRILLING

Final Report for the Period of February 1–May 15, 2004

Date Completed: July 22, 2004

By Ralph Schulte

Prepared for the United States Department of Energy

Office of Fossil Energy

Work performed under Rocky Mountain Oilfield Testing Center (RMOTC)

CRADA 2004-046

DE-FC26-97FT33063 1 of 45 Maurer Technology Inc.

Final Report – Appendix D
Abstract

An extensive high-pressure drilling test has been completed with Maurer Technology
Inc. of Houston, Texas. During the test, drilling pressures exceeded 8000 psi at mud
circulation rates of 200 gpm. The total interval drilled was from 4363 feet to 5156 ft over
a variety of formations ranging from clean, high-porosity sandstone to a limestone
interval, shales and siltstones. The majority of the formation drilled was the Red Peak
Shale. Significant increases in drilling rate were evident over specific intervals. Further
testing of this technology may be warranted to reduce drilling costs and increase ROP.

DE-FC26-97FT33063 2 of 45 Maurer Technology Inc.

Final Report – Appendix D
Disclaimer

This report was prepared as an account of work sponsored by an agency of the United
States Government. Neither the United States Government nor any agency thereof, nor
any of their employees, nor any of their contractors, subcontractors or their employees,
makes any warranty, expressed or implied, or assumes any legal liability or responsibility
for the accuracy, completeness, or any third party’s use or the results of such use of any
information, apparatus, product, or process disclosed, or represents that its use would
not infringe privately owned rights. Reference herein to any specific commercial product,
process, or service by trade name, trademark, manufacturer, or otherwise does not
necessarily constitute or imply its endorsement, recommendation, or favoring by the
United States Government or any agency thereof or its contractors or subcontractors.
The views and opinions of authors expressed herein do not necessarily state or reflect
those of the United States Government or any agency thereof.

DE-FC26-97FT33063 3 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Table of Contents
Summary.......................................................................................................................... 6
Background .............................................................................................................. 7
Historical Testing...................................................................................................... 8
Design of Test .......................................................................................................... 8
Well Selection.................................................................................................. 8
Equipment Design......................................................................................................... 11
High Pressure Mud Pump ...................................................................................... 11
Surface Equipment................................................................................................. 12
Drill String............................................................................................................... 12
Mud Cleaning System ............................................................................................ 12
High Pressure Mud Motor and Drill Bits ................................................................. 13
Well Site Selection - Well 48-X-28 ......................................................................... 14
Initial Mechanical Difficulties .................................................................................. 14
Performance of First High Pressure Bit while Circulating ........................................ 14
Drilling Performance of First Bit with HP Mud Motor .............................................. 15
Drilling Performance of Second Bit – Initial Run .................................................... 18
Unnamed Transition Zone – Second Bit Initial Run....................................... 20
Crow Mountain – Second Bit Initial Run ........................................................ 21
Alcova Limestone – Second Bit Initial Run.................................................... 21
Red Peaks Shale –Second Bit Initial Run ..................................................... 22
Red Peaks Shale –Second Bit Second Run .......................................................... 23
Red Peaks Shale –First Bit Second Run (After Mud Motor) .................................. 25
Red Peaks Shale –Third Bit (new) Initial Run ........................................................ 27
Red Peaks Shale/Goose Egg –Third Bit (new) Second Run ................................. 30
Goose Egg – Conventional Bit with Low Pressure Drilling..................................... 33
Conclusions................................................................................................................... 35
References..................................................................................................................... 36

Attachment D-1 – Drill Bit Photos

Attachment D-2 – Open-Hole Logs

DE-FC26-97FT33063 4 of 45 Maurer Technology Inc.

Final Report – Appendix D
 List of Figures

Figure 1. Location of Teapot Dome ................................................................................ 6

Figure 2. RMOTC Geologic Column............................................................................. 10
Figure 3. High Pressure Drilling Mechanism ................................................................ 13
Figure 4. Performance of First Bit While Circulating..................................................... 15
Figure 5. Pump Pressure and Strokes Per Minute in the 1st bit with High Pressure
Mud Motor ..................................................................................................... 17
Figure 6. Drilling Performance of 1st bit with High Pressure Mud Motor ....................... 18
Figure 7. Drilling Performance of 2nd Bit, Initial Run ..................................................... 19
Figure 8. Depth (uncorrected) and weight on 2nd Bit, Initial Run .................................. 20
Figure 9. Pump Pressure and Strokes per Minute, 2nd Bit, Initial Run.......................... 24
Figure 10. Drilling Performance of 2nd Bit, 2nd Run ......................................................... 25
Figure 11. Drilling Performance of 1st Bit, 2nd Run.......................................................... 26
Figure 12. Depth (uncorrected) and Weight on 1st Bit, 2nd Run ...................................... 27
Figure 13. Drilling Performance of 3rd Bit, Initial Run...................................................... 29
Figure 14. Depth and Weight on bit, 3rd Bit, Initial Run................................................... 30
Figure 15. Drilling Performance of 3rd Bit, 2nd Run.......................................................... 32
Figure 16. Depth and Weight on Bit, 3rd Bit, 2nd Run ...................................................... 33
Figure 17. Baseline Drilling Performance with Conventional Bit..................................... 34
Figure 18. Depth and Weight on Bit, Baseline Drilling Performance with
Conventional Bit ............................................................................................ 35

DE-FC26-97FT33063 5 of 45 Maurer Technology Inc.

Final Report – Appendix D
Summary
An extensive, high pressure drilling test has been completed with Maurer Technology of
Houston, Texas. During the test, drilling pressures exceeded 8000 pounds per square
inch (psi) at mud circulation rates of 200 gallons per minute (gpm). The total interval
drilled was from 4363 feet to 5156 feet over a variety of formations. The formations
ranged from clean, high porosity
sandstone to a limestone interval,
shales and siltstones. The majority of
the formation drilled was the Red
Peak Shale at the Rocky Mountain
Oilfield Testing Center located in the
Powder River Basin of Wyoming.

The Rocky Mountain Oilfield Testing

Center (RMOTC) is located at the
Naval Petroleum Reserve 3 (Teapot
Dome Field). The Teapot Dome oil
field (NPR-3) is located 35 miles
north of Casper, Wyoming (See
Figure 1).

The results of the test were

essentially two fold. Significant
increases in drilling rate were evident
over specific intervals resulting in 2–
7 times the normal historical drilling
rate in the field. Although the highest Figure 1. Location of Teapot Dome
rates of penetration (150 ft/hr) were
achieved in the clean, high porosity
sand of the Crow Mountain, the percentage of drilling rate increase (20–40% increase)
was the lowest achieved due to the high rate of even conventional drilling. The Alcova
limestone which is a typically harder formation had over a three fold increase in drilling
rate (50 ft/hr) over the baseline rate of 13.5 ft/hr (See Table 1).

The highest percentage or fold increase occurred in the Red Peak formation (shale,
siltstone, anhydrites) where drilling rates of 60–90 ft/hr were common with the high
pressure drilling bits (See Table 1). The baseline rate for the Red Peak Shale estimated
from offset data and deepening data of the well is 12–16 ft/hr.

The second aspect of the test was the limiting mechanical difficulties encountered with
the high pressure mud motor, jets and PDC drill bits. The high pressure mud motor’s
stator failed quickly while drilling and the remainder of the test was completed without

DE-FC26-97FT33063 6 of 45 Maurer Technology Inc.

Final Report – Appendix D
the downhole motor utilizing a mechanical rotary table, high pressure drilling swivel, high
pressure kelly hose, and high pressure mud pump. During this testing phase, multiple
drilling jets were lost or blown out from the bit body. As each jet was lost, the drilling
pressure would drop from 8000 psi to approximately 3000 psi and the bit would be
tripped out of the hole. The exact cause of this bit jet lost is being investigated with
detailed mechanical review.

Mechanical problems with the cutters on one bit were also evident during the test. This
bit (third bit) was a new bit which had been manufactured quickly at the end phase of
testing operations. It is believed that a bad bond existed between the PDC compacts
and the carbide studs. The suspect bad bonds resulted in a loss of cutter faces and
ultimately breakage of the some of the posts. The other two bits did not indicate the
same mechanical problem.

Initial mechanical problems with the surface equipment, including the high pressure kelly
hose and drilling swivel were corrected to allow full testing of the high pressure
downhole drilling equipment. The use of specialized drill pipe eliminated any leaks within
the drill string. Pressure testing, drilling and safety procedures allowed the operation to
proceed without incident.

Background
The Rocky Mountain Oilfield Testing Center has been involved with two major initiatives
within the past several years to dramatically increase drilling rates by the use of novel or
non-mainstream drilling procedures. The first series of drilling tests were completed with
Prodril Services, Inc. of Cody, Wyoming. The second series of tests were completed
Maurer Technology Inc. of Houston, Texas in May 2004.

The technology as demonstrated by ProDril relied on steel or metal “shot” in the drilling
mud to cut a groove or kerf in the bottom of the drilling wellbore to increase drilling rate.
The shot or small diameter metal spheres would then be recovered from the drilling mud
and re-used again. See Reference 1.

The technology developed by Maurer Technology Inc. under partnership to the National
Energy Technology Laboratory (NETL) was two fold utilizing high pressure drilling mud
to drive a high pressure mud motor along with a high pressure bit. The high pressure
drilling mud in conjunction with the small diameter drilling jets results in extreme velocity
fluid streams. The high velocity fluid streams have, in principle, a similar effect on the
bottom of the wellbore as the steel shot of ProDril, Inc. The high velocity streams kerf or
cut a groove in the bottom of the hole to increase drilling rates.

Maurer summarizes the technology and history of development in their report, “Coiled-
Tubing High Pressure Jet Drilling System” available on the NETL website. See
Reference 2.

DE-FC26-97FT33063 7 of 45 Maurer Technology Inc.

Final Report – Appendix D
Historical Testing
The use of high pressure jet bits operating between 10,000 and 15,000 psi dates back to
the early 1970s with Exxon, Shell, Gulf Oil and FlowDril case histories. The case history
presented by Maurer2 included an Exxon field test where conventional bits drilled a
3500-ft interval in approximately 65 hours of rotating time (54 ft/hr). The erosion bit or
high-pressure bit drilled the same interval in approximately 22 hours of rotating time (159
ft/hr) or approximately three times as fast. Maurer states however, “These systems were
not commercialized because of difficulties in pumping the high-pressure fluids to the hole
bottom through conventional threaded drill pipe.”

The concerns with threaded drill pipe connections resulted in the initial development of
the Maurer High Pressure mud motor and drill bits to be used on coiled tubing (CT). This
CT system was tested with masked results due to several mechanical surface issues
with the coiled tubing, mud system, and well conditions at a field test site. A conclusive
test of the system was not achieved because of the surface mechanical difficulties.

As a second option with conventional drill pipe, RMOTC was contacted in 2003 to
determine if the drilling system could be tested a second time with conventional threaded
drill pipe with the downhole mud motor and high pressure bits. General drilling objectives
were given for interval length (2000 ft), formation lithology (shales, sands, dolomites, etc)
and rock properties (competent rock with ROP not a factor for hole cleaning).

Design of Test
Well Selection

The geologic column of RMOTC is shown in Figure 2. The field, located in the Powder
River Basin of Wyoming has nine producing horizons ranging from approximately 500 ft
in depth to 5500 ft.. The deepest producing horizon is the Tensleep, a strong water drive
sandstone reservoir, at 5500 ft. The shallow formations (<3000 ft) are easily drilled with
mud or more often with air for underbalanced drilling. The high rates of penetration for
the shallow Steele and Niobrara shales are similar to the Exxon field test as presented
by Maurer. The shallow formations (Steele and Niobrara Shales) are naturally fractured
and are produced openhole from the fractures.

The shallow Upper Cretaceous Steele and Niobrara shales have been historically drilled
with either roller cone bits (such as a Hughes GT-1 or IADC code 116) or fishtail bits
using air. Rates of penetration (ROP) are often as high as 50–100 ft/hour using air.

Typically, the deeper horizons are harder and slower to drill. Recent RMOTC tests in the
Lower Tensleep/Amsden formation were drilled with a medium hard bit (Hughes STX-30
or IADC code 537). Tensleep and Amsden are Pennsylvanian age and are sandstones,
dolomites, and dolomitic sandstones. ROPs are generally 10 ft/hr using a light mud.

DE-FC26-97FT33063 8 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Table 1
Drilling Performance Summary
Time Depth Offset Well ROP Average Drilling
Date Start End Elapsed Time Begin End Interval ROP Drilling System Formation Comments 41-2-X-3 71-1-X-4 Offset Ratio
Hrs:Min:Seconds Feet Feet/hr ROP/Ave ROP
First Bit (repaired) Limited Run
Data. Dropping Pressure with
April 25, 2004 1:33 AM 1:54 AM 0:20:48 4363.0 4370.9 7.9 22.8 HP Mud Motor Lower Sundance Sands Spikes. 21.8 33.3 27.6 0.83
0:5:00 4364.0 4368.0 4 48 HP Mud Motor Lower Sundance Sands Data Subset - Estimate 27.6 1.74
0:5:00 4368.0 4370.0 2 24 HP Mud Motor Lower Sundance Sands Data Subset - Estimate 27.6 0.87
4370.0 4370.9 1 4 HP Mud Motor Lower Sundance Sands Curve Fit Estimate 27.6 0.15

DE-FC26-97FT33063
April 27, 2004 1:00 PM 1:46 PM 0:45:38 4371 4403 32 42.1 HP Rotary Unnamed Transition Second Bit - Initial run 20.0 17.1 18.6 2.27
2:07 PM 2:20 PM 0:13:16 4403 4435 32 144.7 HP Rotary Crow Mountain Sand Second Bit - Initial run 120.0 120.0 120.0 1.21
2:32 PM 2:44 PM 0:11:32 4435 4467 32 166.5 HP Rotary Crow Mountain Sand Second Bit - Initial run 120.0 120.0 120.0 1.39

Final Report – Appendix D

2:56 PM 3:34 PM 0:38:33 4467 4499 32 49.8 HP Rotary CM/Alcova Limestone Second Bit - Initial run 15.0 12.0 13.5 3.69
3:48 PM 4:38 PM 0:35:27 4493 4525 32 54.2 HP Rotary Red Peaks Shale Time adj. for downtime 17.6 12.0 14.8 3.65
4:45 PM 6:02 PM 0:34:18 4525 4557 32 56.0 HP Rotary Red Peaks Shale Time adj. for downtime 17.6 12.0 14.8 3.78

2nd Bit - Second Run. Change in

April 28, 2004 12:56 AM 1:22 AM 0:26:33 4557 4579 22 49.7 HP Rotary Red Peaks Shale BHA 17.6 12.0 14.8 3.36
1:37 AM 2:00 AM 0:22:08 4579 4611 32 86.7 HP Rotary Red Peaks Shale Second Bit -Second Run 17.6 12.0 14.8 5.86
2:13 AM 2:38 AM 0:24:47 4611 4643 32 77.5 HP Rotary Red Peaks Shale Second Bit -Second Run 13.3 12.0 12.7 6.12
2:51 AM 3:13 AM 0:22:19 4643 4675 32 86.0 HP Rotary Red Peaks Shale Second Bit -Second Run 13.3 10.0 11.7 7.38
3:30 AM 3:55 AM 0:25:24 4675 4707 32 75.6 HP Rotary Red Peaks Shale Second Bit -Second Run 13.3 10.0 11.7 6.49
4:08 AM 4:29 AM 0:21:10 4707 4739 32 90.7 HP Rotary Red Peaks Shale Second Bit -Second Run 13.3 10.0 11.7 7.79

9 of 45
April 29, 2004 6:03 AM 6:34 AM 0:31:01 4739 4771 32 61.9 HP Rotary Red Peaks Shale First Bit - Second Run 13.3 13.3 13.3 4.65

May 2, 2004 1:21 PM 1:50 PM 0:29:55 4772.0 4804.1 32.1 64.4 HP Rotary Red Peaks Shale Third Bit (New) 13.3 13.3 13.3 4.84
2:06 PM 2:28 PM 0:21:13 4804.1 4836.7 32.6 92.2 HP Rotary Red Peaks Shale Third Bit (New) 13.3 13.3 13.3 6.93
3:15 PM 3:46 PM 0:23:37 4837.0 4868.7 31.7 80.5 HP Rotary Red Peaks Shale Time adj. for downtime 13.3 13.3 13.3 6.06
3:56 PM 4:24 PM 27:53.0 4869.0 4899.1 30.1 64.8 HP Rotary Red Peaks Shale Third Bit (New) 15.0 13.3 14.2 4.58
4:37 PM 5:05 PM 27:34.0 4899.0 4931.6 32.6 71.0 HP Rotary Red Peaks Shale Third Bit (New) 15.0 13.3 14.2 5.01
5:16 PM 5:55 PM 0:35:16 4932.0 4964.4 32.4 54.4 HP Rotary Red Peaks Shale Time adj. for downtime 15.0 13.3 14.2 3.85
6:08 PM 7:06 PM 0:57:08 4964 4997.1 33.1 34.8 HP Rotary Red Peaks Shale Third Bit (New) 12.0 16.2 14.1 2.47

May 4, 2004 8:40 PM 9:33 PM 0:53:36 4999.2 5029.4 30.2 33.8 HP Rotary Red Peaks Shale Third Bit ( Repaired Second run) 12.0 16.2 14.1 2.40
9:45 PM 10:36 PM 0:51:12 5029.5 5062.1 32.6 38.2 HP Rotary Red Peaks Shale Third Bit ( Repaired Second run) 12.0 16.2 14.1 2.71
10:48 PM 11:29 PM 0:41:02 5062.1 5094.5 32.4 47.4 HP Rotary Red Peaks Shale Third Bit ( Repaired Second run) 12.0 16.2 14.1 3.36
May 5, 2004 11:42 PM 12:27 AM 0:45:27 5094.0 5127.0 33.0 43.6 HP Rotary R.P./Goose Egg Third Bit ( Repaired Second run) 12.0 16.2 14.1 3.09
12:36 AM 1:33 AM 0:57:01 5124.7 5157.9 33.2 34.9 HP Rotary Goose Egg Third Bit ( Repaired Second run) 12.0 16.2 14.1 2.48

May 6, 2004 2:16 PM 4:14 PM 1:58:41 5161.0 5192.8 31.8 16.1 Conventional Goose Egg Conventional Bit 12.0 16.2 14.1 1.14
4:31 PM 7:33 PM 3:02:27 5193.0 5224.9 31.9 10.5 Conventional Goose Egg Conventional Bit 12.0 16.2 14.1 0.74
7:42 PM 11:06 PM 3:24:33 5225.2 5257.1 31.9 9.4 Conventional Goose Egg Conventional Bit 12.0 16.2 14.1 0.66
May 7, 2004 11:20 PM 3:02 AM 3:41:31 5257.0 5289.6 32.6 8.8 Conventional Goose Egg Conventional Bit 12.0 16.2 14.1 0.63
3:11 AM 4:36 AM 1:25:16 5289.7 5300.0 10.3 7.2 Conventional Goose Egg Conventional Bit 12.0 16.2 14.1 0.51

Maurer Technology Inc.

 Figure 2. RMOTC Geologic Column

DE-FC26-97FT33063 10 of 45 Maurer Technology Inc.

Final Report – Appendix D
Lost circulation is often encountered in the Second Wall Creek at 3000 ft due to pressure
depletion. Based on the drilling objectives, reservoir and drilling histories, the interval
from 4300 ft to 6300 ft was selected. This interval avoided the majority of the problematic
fractured intervals and depleted zones and had a variety of formations including high
porosity sandstone, a hard limestone, a lengthy interval of mixed lithology, and a lower
porosity sandstones, and dolomites.

Based on desired casing size, depth requirements, operational objectives, a recent 3-D
seismic interpretation, a new well site was selected in the northern end of the field.

Equipment Design
The technical effort at RMOTC focused on two primary areas. The first area was the
geology and drilling aspects of the test and the second area was the surface and
downhole equipment to accomplish the high pressure drilling test.

Normal drilling pressures are generally 3000 psi or lower. Some of the deeper wells in
Wyoming (20,000 ft+) have drilling pressures of 4000 psi based on the personal drilling
experience from our crews. The use of high pressure drilling mud in the range of 8,000 –
10,000 psi greatly exceeds all normal operations. Several initial options were
investigated in the early stages to determine the best course of action for the high
pressure pumping services.

High Pressure Mud Pump

ProDril Services, Inc. due to their use of steel shot in the mud system utilized contracted
pumping services from Halliburton. Similar considerations were explored for the Maurer
test. One stumbling block appeared to be the use of a high pressure kelly hose required
for the drilling operation. The operational liability of utilizing a high pressure hose was a
hindrance in using contract pumping services. The use of steel hard line with swivel
joints was discussed to replace the kelly hose but was determined to be only a second
or third option.

National manufacturers of drilling equipment were contacted to determine if a high

pressure mud pump system rated for approximately 10,000 psi could be built or
developed to meet the test requirements. Mid-coast Diesel of Victoria, Texas responded
with an existing system which could be modified with a new fluid end to meet the stated
objectives. The existing system was developed for offshore use for pumping mud,
cement, or other services. The existing fluid end had 5 inch plungers which would be
replaced with 3¾-inch plungers to reach the desired objective. The modifications to the
pump package included the addition of a pulsation dampener rated at 10,000 psi.

DE-FC26-97FT33063 11 of 45 Maurer Technology Inc.

Final Report – Appendix D
Surface Equipment
Surface equipment such as standpipe, standpipe valves, gooseneck, and mud line were
replaced on the drilling rig (DOE#2) to meet testing specifications. The existing Kelly
hose was replaced with a new hose rated for 10,000 psi. The existing drilling swivel was
also replaced with a new unit specifically modified to handle 10,000 psi while rotating.
The new kelly hose and drilling swivel proved to be the most troublesome items of the
surface equipment.

The intent of the above modifications to the drilling rig was to allow maximum flexibility
during the test phase. The drilling rig was modified in such a manner to allow either high
pressure drilling with a mud motor (drill string non-rotating) or high pressure drilling
without a mud motor and using a mechanical rotary table. The combination of rotating
the drill string and using the downhole mud motor could also be performed with the
above system. This initial design selection turned out to be instrumental in completing
the Maurer test.

Drill String
As previously stated by Maurer, early high pressure systems developed in the 1970’s
were not commercialized due to difficulties with threaded drill pipe connections. This
problem was a major stated concern at a very early stage of test design. National pipe
manufacturers were contacted along with local oilfield service companies to determine
the best available technology to address possible leaks in the tool joint connections.
Based on technical discussions and possible pipe availability, Weatherford’s 3½” S-135
drill pipe with the HT tool joint connection was used. The HT connection is designed for
high pressure and high temperature work with primary and secondary sealing faces on
the pin and box.

During the entire drilling operation at 8000 psi, no leaks developed in the drill pipe. The
drill collars and some surface crossover subs had a more standard thread design, 3½ IF.
No leaks were detected in the IF connections either.

Although the HT thread is a better design for high pressure work, it may be possible to
use a more standard thread connection at this pressure range, 8000 – 10,000 psi. The
burst pressure of the S-135 pipe is almost twice the anticipated maximum working
pressure so there was little concern with pipe body strength. .

Mud Cleaning System

No significant capital investment was made to upgrade the solids removal system;
however, several operational changes were made to minimize the presence of drill solids
in the mud system. Due to the small jets in the high pressure PDC bit (~2/32 inch), there

DE-FC26-97FT33063 12 of 45 Maurer Technology Inc.

Final Report – Appendix D
was concern that any extraneous material or drill solids in the mud system would plug
the bit resulting in a quick high pressure spike in the system.

The first operational change was to completely empty and clean the mud tanks after the
7” 23# casing was set at 4300 ft above the Crow Mountain formation. At this point, the
tanks were refilled with clean water and an inhibited mud system was mixed. The
inhibited mud system was used to minimize clay swelling and hole sloughing while
drilling. The use of the inhibited mud system would therefore also lower wellbore risks.

Another operational change was the use of new, properly sized drill pipe screens to
catch any extraneous material and drill solids before going downhole. During testing
operations, the screen was checked regularly and was useful on several occasions in
preventing large pieces of material from entering the drill string. Another screen,
provided by Maurer, was present downhole to catch any debris of the drill pipe wall.

During testing operations, no problems or obstacles with the mud cleaning system were
identified.

The remaining downhole equipment was the high pressure mud motor and high
pressure drill bits.

High Pressure Mud Motor and Drill Bits

The technical features of the high
pressure mud motor and drill bits are
described in some detail elsewhere
(see Reference 2). Maurer states,
“This motor is equipped with a
modified power section, diamond
thrust bearings and a high pressure
labyrinth seal system.”

Figure 3 (after Maurer) shows a

generalized schematic of the high
pressure drill bit and the high
pressure drilling mechanism. Maurer Figure 3. High Pressure Drilling Mechanism.
states, “This drill uses high-pressure
water jets to cut slots in the rock ahead
of the drill bit and PDC diamond cutters to break off rock ledges between these slots.”

This system was originally planned to be used on coiled tubing; however, field testing
was discouraging due to surface equipment difficulties (swelled coil tubing, etc). No
usable data were gained by the initial field test utilizing coiled tubing.

DE-FC26-97FT33063 13 of 45 Maurer Technology Inc.

Final Report – Appendix D
Well Site Selection - Well 48-X-28
The well site was selected based on test objectives for depth, interval length, and rock
properties. In addition, a possible Tensleep target was identified based on recent 3D
seismic studies. Possible coring opportunities were also considered if the drilling test did
not reach the proposed core point.

The location for the test well, Well 48-X-28, was built in early 2004. The RMOTC drilling
rig was being utilized on a different test well until late January, 2004. The rig was
modified for high pressure during February 2004 and moved to location. The well was
spudded on March 2, 2004 with two short RMOTC tests on the upper portion of the hole.
Seven inch (7” 23lb/ft) casing was set mid March and cemented. Initial pressure testing
and mechanical break-in operations began during the latter part of March, 2004.

Initial Mechanical Difficulties

The initial pressure tests of the drilling system were not successful due to leaks present
in the end couplings of the new kelly hose. The hose was returned to the manufacturer
for repair. Prior to return, some limited rate and pressure data was collected on the high
pressure mud motor and drill bits. The pressure was estimated to be approximately 1000
psi low at the test rates. Although not apparent at that time, the lower pressure may have
been the first evidence for some of the mechanical difficulties to follow with the drill bits.

The repaired kelly hose was retested in early April with poor results. A new hose was
requested from the manufacturer under warranty. The second hose was delivered mid
April and pressure tested on April 20 with adequate results.

Other minor mechanical problems associated with throttle control of the new pump,
rupture disks on the nitrogen bladder of the pulsation dampener, and pressure bleed off
operations were corrected. Some other small mechanical problems would be evident as
the test progressed further and corrected at that time.

After successful testing of the second new kelly hose, the bit was tripped to 4200 ft to
circulate and condition the mud in the wellbore. The circulation operation utilized the
high pressure bit is described below.

Performance of First High Pressure Bit while Circulating

Figure 4 summarizes the pressure and rate data for the initial bit while circulating and
conditioning mud at 4200 ft in the 7” casing. Initial pressures exceeded 6000 psi at a
pump strokes per minute (spm) of 167. Over a period of an hour and a half, the pressure
continually dropped. The final test pressure was 4800 indicating a drop of over 1200 psi.

The bit was tripped out of the hole and inspected. Picture 1 shows the beginnings of
erosion around one of the jets present. At least several other jets were beginning to

DE-FC26-97FT33063 14 of 45 Maurer Technology Inc.

Final Report – Appendix D
 erode. The bit was returned to Houston for inspection along with a second bit that was to
be used only as a standby.

Upon inspection of the threaded jet connection, it was decided to weld or braze the jets
into the body of the bit. The second bit, which had not been used, was modified by using
epoxy to hold the jets in place and prevent fluid from eroding the small threaded
connections. Even though a temporary fix for both bits, it was anticipated that additional
test data could be collected without delaying the project.

Performance of First Bit while Circulating

(Pressure losses)
10000 200

Pressure
9000 Strokes per Minute 180

8000 160

7000 140

Pump Strokes per Minute

Pump Pressure, PSI

6000 120

5000 100

4000 Pressure Loss while 80

Circulating Mud

3000 60

2000 40

1000 20

0 0
12:00 AM

1:00 AM

2:00 AM

3:00 AM

4:00 AM

5:00 AM

6:00 AM

April 20, 2004

Figure 4. Performance of First Bit While Drilling.

Drilling Performance of First Bit with HP Mud Motor

After the bits were repaired and returned to Casper, Wyoming. The high pressure mud
motor and bit was tripped in the hole on April 25, 2004. The initial starting depth of the
well was 4363 feet at this time. Drilling began early morning with the mud motor at 1:33
AM and only lasted 21 minutes until a high pressure spike opened the pressure relief

DE-FC26-97FT33063 15 of 45 Maurer Technology Inc.

Final Report – Appendix D
valves. Table 1 summarizes the results of the motor run. Figure 5 and Figure 6 show the
real time drilling data.

From Figure 5, it is seen that the drilling pressure was continually dropping during the
short run with multiple short pressure spikes. The pressure drop indicated that the
temporary fix to the threaded jet erosion was not successful. The jets were still eroding
around the exterior of the jets. The pressure spikes probably indicated or were a
precursor to the final large pressure spike (10,500 psi). The large pressure spike which
ended drilling operations was the result of the elastomer of the high pressure mud motor
stator failing. After tripping the drill string, the bit was plugged with elastomer debris for
the motor. Since the jets of the drill bit are small (~2/32 inch), the jets are easily plugged.
The downhole drill pipe screen was also damaged with a split along its length allowing
the rubber particles to plug the bit.

From Table 1, the formation at the test depth was the sands of the Lower Sundance
which lie some 30 feet above the top of the Crow Mountain sandstone. The Sundance at
RMOTC is not an oil or gas producing interval so reservoir knowledge of the horizon is
limited. Based on the openhole porosity logs, the Lower Sundance sands appear to be
fairly clean and porous sands. See Attachment D-2 for the Openhole Logs. Shading has
been applied to the log display for density porosity above 10%.

Initial drilling rates were estimated at 48 ft/hr dropping to 24 ft/hr and finally 4 ft/hr. Curve
fit data was used to estimate the final drilling rate. See Table 1 and Figure 6. Offset
drilling data from two recent wells, 41-2-X-3 and 71-1-X-4, indicated a drilling rate of 22–
33 ft/hr or an average of 28 ft/hr. See Table 1. The initial drilling rate of 48 ft/hr over the
interval 4364 to 4368 compares favorably with the offsets; however, the interval is too
short to be of much statistical use. The dropping rate of penetration (ROP) from 4368 to
4371 may be the result of the continually dropping pressure, pressure spikes of the
failing stator elastomer, or a change in lithology.

Whatever the determining causes, the short interval drilled before elastomer failure limits
any significant comparative analyses.

DE-FC26-97FT33063 16 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Drilling Performance of First Bit
with HP Mud Motor

Pressure
12000 180
Strokes per Minute
11000 Bit Status Change 165

10000 150
Bit Plu gg ed . Pr essu r e
9000 Sp ike 135

8000 120
Pump Pressure, PSI

Strokes per Minute

7000 105

6000 90

5000 Dropping Pressure 75

4000 60

3000 45

2000 30

1000 15

0 0
12:00 AM

1:00 AM

2:00 AM

3:00 AM
April 25, 2004

Figure 5. Pump Pressure and Strokes per Minute, First Bit with HP Mud Motor.

DE-FC26-97FT33063 17 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Drilling Performance of First Bit
with HP Mud Motor

4380 100
4379 Depth
Curve Fit Data
4378 90
Weight on Bit
4377
Bit Status Change
4376 80
4375
4374 70
Bit Plugged
4373
Pressure Spike

Weight on Bit, Klbs

4372 60
4371
Depth

4370 50
4369
4368 40
4367
4364-4368 48 ft/hr
4366 4368 - 4370 24 ft/hr 30
4365 4370 - 4 ft/hr
4364 20
4363
4362 10
4361
4360 0
1:00 AM 2:00 AM
April 25, 2004

Figure 6. Drilling Performance of First Bit with High Pressure Mud Motor.

Drilling Performance of Second Bit – Initial Run

At this point in the testing operation, the failure of the high pressure mud motor, with no
replacement, resulted in a change of operation. As stated previously, the initial design of
the test included the capability of conventional high pressure drilling utilizing a
mechanical rotary table, high pressure kelly hose, and a new high pressure drilling
swivel modified for rotation at high pressure.

The initial run of the conventional high pressure system was on April 25, 2004. The
swivel had some bearing difficulties and required several days for replacement parts to
be ordered and arrive. After a rebuild of the swivel packing, no further mechanical
problems were evident with the swivel for the remainder of the test. The swivel was
greased and inspected regularly due to the high pressure (8000 psi) being applied
during rotating.

The backup high pressure drill bit (Second Bit) was run in the hole on April 27, 2004.
The starting depth of the well was 4371 feet at this time. Drilling began early afternoon

DE-FC26-97FT33063 18 of 45 Maurer Technology Inc.

Final Report – Appendix D
and the run lasted for approximately five hours when it was decided that additional collar
weight was required. Table 1 summarizes the results of this initial run of the second bit.
Figure 7 and Figure 8 show the real time drilling data.

DOE #2 utilizes a kelly and mechanical rotary table picking up single joints of drill pipe
as the well is drilled. This initial run resulted in six joints of drill pipe being picked up (six
kellys down) as shown in Figure 8. The detailed data record as stored by the electronic
data system was used to estimate the start and end times for each specific drilling
interval. The change in bit status as recorded by the software was utilized to delineate
the time intervals. Adjustments were made for mechanical or operational downtime. The
time intervals were correlated with hand written field notes to ensure validity.

For part of the testing operations, third party equipment was recording incorrect depth
measurements. The third party was under contract to RMOTC and not associated with
the testing partner. The depth measurements appeared to be about 12.5% high. i.e.: for
every 32 ft drill pipe joint used, the depth interval would advance 36 feet or more. The
depth correlation problem (hardware, calibration) would not be fixed until May 2. Tallies
of the drill pipe were used to track the current depth until the third party was able to
correct the problem.

Drilling Performance of Second Bit

Initial Run

10000 Pressure 200

Strokes per Minute
9000 Bit Status Change 180

8000 160

7000 140

Strokes per Minute(SPM)

Pump Pressure, PSI

6000 120

5000 100
Pump
4000 Problem 80

3000 60

Operation Circulate
2000 Review Wellbore 40

1000 20

0 0
2:00 PM

3:00 PM

4:00 PM

5:00 PM

6:00 PM

7:00 PM
12:00 PM

1:00 PM

8:00 PM

April 27, 2004

Figure 7. Drilling Performance of Second Bit, Initial Run

DE-FC26-97FT33063 19 of 45 Maurer Technology Inc.

Final Report – Appendix D
Unnamed Transition Zone – Second Bit Initial Run

The initial run of the second bit encompassed several different formations and
lithologies. From Table 1 and the openhole log section in Attachment D-2, the first kelly
down (4371–4403 ft), drilled an unnamed transition between the Lower Sundance sands
and the Crow Mountain sands. This unnamed transition has a much lower density
porosity than the sands and relatively low neutron porosity. The gamma ray would
indicate some shale content while the resistivity would indicate some dolomite or
limestone content with a high resistivity.

Drilling Performance of Second Bit

Initial Run

4660 Depth 75

4640 Bit Status Change 70

Weight on Bit
4620 65

4600 60

4580 55
Kelly down
4560 50
Depth (Uncorrected)

Weight on Bit, Klbs

4540 45

4520 Operation Review 40

4500 Pump Problem 35

(Brake)
4480 30

4460 25

4440 20

4420 15

4400 10

4380 5

4360 0
12:00 PM

1:00 PM

2:00 PM

3:00 PM

4:00 PM

5:00 PM

6:00 PM

7:00 PM

8:00 PM

April 27, 2004

Figure 8. Depth (uncorrected) and Weight on Second Bit

The time required was 45 minutes, based on the bit status change, to drill this 32-ft
interval or 42 ft/hr. Two recent offset wells drilled in the last few years were used for
comparison. The two wells were Well 41-2-X-3 and Well 71-1-X-4. Table 1 summarizes
the offset results for the entire test interval. The wells were drilled with roller cone bits
(HTC GT-30 and STC F-2H).

DE-FC26-97FT33063 20 of 45 Maurer Technology Inc.

Final Report – Appendix D
The offset ROP average was 18.6 ft/hr with a range of 17–20 ft/hr. The incremental
drilling rate increase utilizing the high pressure PDC bits was approximately 2¼ fold
increase (ROP/Avg ROP) or 125% increase in drilling rate. The last few feet of this first
Kelly (~4400 ft) showed a marked increase in drilling rate which would correspond well
with the top of the Crow Mountain based on the openhole log. Since the correlation is
close and repeats itself over other formation transitions, no depth corrections have been
used between the openhole logs and the drilling data recorded.

During this first kelly down, the weight on bit (WOB) was increased from approximately
5,000 lb to 15,000 lb to develop the expected drilling rate. This increase of WOB was
somewhat unexpected due to the envisioned drilling mechanism where the high
pressure jets would get groove or kerf the bottom of the wellbore, and the PDC cutters
would knock off the ledges. The use of WOB was inferred to be required due to the
impact force of the high velocity streams on the bottom of the wellbore essentially lifting
the bit off bottom. This requirement of WOB may be a critical factor if the drilling system
is once again considered for use on coiled tubing.
Crow Mountain – Second Bit Initial Run

The next two kellys (4403–4435 and 4435–4467 ft) spanned the majority of the high
porosity (~18%), clean sandstone of the Crow Mountain formation. See Attachment D-1.
Consequently, the drilling time required was the lowest seen over the entire test interval
(13 and 11½ minutes, respectively). See Table 1 . The short drilling times resulted in
high ROPs for the two kellys (145 and 167 ft/hr). The ROP of the high pressure drilling
system was controlled, at this early stage, by concern for hole cleaning. If the cuttings
weren’t properly transported, the bottom hole assembly (BHA) may have become stuck.

The offset ROP average was also high in this clean, high porosity sandstone at 120 ft/hr.
Even though the drilling rates of the high pressure system were high, the incremental
increase in drilling rate (21–39%) was the lowest achieved. The smaller increase in
drilling rate can be attributed to the relatively high ROP of even conventional drilling and
controlled drilling due to hole cleaning concerns.

Cutting size of the formations was significantly finer or smaller than the conventional bits
used above or below the drilling test. The size of the cuttings was of interest to see the
effects of the high pressure jets on the formations. The cutting size may indicate that the
high pressure jets were performing the majority of the work and that only a small amount
of work was being done by the PDC cutters. The small cutting size and high ROP may
also have aided sealing some of the smaller fractures or lost circulation zones present in
the offset well.
Alcova Limestone – Second Bit Initial Run

The next kelly (4467–4499 ft) spanned the lower porosity, hard Alcova limestone which
lies beneath the Crow Mountain sand. See Attachment D-2. The Alcova has low density

DE-FC26-97FT33063 21 of 45 Maurer Technology Inc.

Final Report – Appendix D
porosity along with low neutron porosity. The gamma ray is low indicating little shale
content and the resistivity is high reflecting the limestone content. The transition from
Alcova Limestone to the Red Peaks formation starts at approximately 4500 ft.

The drilling time to cover this relatively hard zone was 38 minutes in stark contrast to the
Crow Mountain sand. See Table 1. The ROP for the Alcova was estimated at 50 ft/hr.
The first few feet of the kelly (4470) drilled relatively fast because of the transition
between the Crow Mountain sands and the limestone. Once again, the depths between
the drilling data and the open hole logs seem to be very close.

The offset ROP average was also lower in this limestone interval at 13.5 ft/hr with a
range of 12 – 15 ft/hr. The incremental drilling rate increase utilizing the high pressure
PDC bits was approximately 3½ fold increase (ROP/avg ROP) or 270% increase in
drilling rate.
Red Peaks Shale –Second Bit Initial Run

The next two kelly downs (4493–4525 ft and 4525–4557 ft) were in the Read Peak
Shale. The Red Peak Shale, which is actually a mixed lithology, lies beneath the Alcova
limestone and is approximately 600 feet thick. The formation contains varying amounts
of shale, siltstone, sandstone, anhydrites. The gamma ray response is fairly high
reflecting the shale content; however, the gamma ray response does vary over the
interval.

The higher gamma ray generally corresponds to zones of higher neutron porosity and
lower resistivity as would be expected. The density porosity response, calculated on a
sandstone matrix, is oftentimes near zero or even negative. The negative response is
indicative that heavy minerals, such as anhydrite are present in significant quantities and
the matrix is not entirely quartz. The density porosity remains near zero for the interval
4500 – 4700 feet. From 4700, till the top of the Goose Egg at 5116, the density porosity
grows even more negative reflecting possibly an increasing content of anhydrite.

The drilling times to cover the two kellys were 35 and 34 minutes respectively. The
elapsed times were slightly higher than the hard Alcova limestone. The elapsed times
were adjusted for any downtime. The first downtime was a mechanical problem with a
brake on the mud pump transmission. The second downtime was to review the use of
additional collars to be added for more WOB. See Table 1. The ROP for the Red Peak
Shale was 54 and 56 ft/hr.

The offset ROP average was 15 ft/hr with a range of 12–18 ft/hr. The incremental
drilling rate increase utilizing the high pressure PDC bits was approximately 3¾-fold
increase (ROP/Avg ROP) or 278% increase in drilling rate. This rate of increase is
slightly higher than the Alcova interval.

DE-FC26-97FT33063 22 of 45 Maurer Technology Inc.

Final Report – Appendix D
Red Peaks Shale –Second Bit Second Run
The high pressure drill bit (Second Bit – Second Run) was run in the hole early morning
April 28, 2004 after tripping to the collars only. The bottomhole assembly (BHA) length
was changed with the addition of more drill collars. The additional collar weight was
necessary to maintain or increase the WOB without running the drill pipe in
compression. The starting depth of the well was 4557 feet. Drilling began early morning
and the run lasted for six kellys down or approximately 3½ hours before the first jet was
blown out of the drill bit body. The total time on the second drill bit was about 8½ hours.
Table 1 summarizes the results of this initial run of the second bit. Figure 9 and Figure
10 show the real time drilling data.

The first kelly down (4557 – 4579) was only twenty two feet in length due to the change
in bottomhole assembly and required 26 minutes to drill. WOB was gradually increased
during the drilling from lower than 5,000 lb to over 15,000 lb. The ROP for this first short
kelly down was 50 ft/hr.

The next five kelly downs (4579–4611, 4611–4643, 4643–4675, 4675–4707, and 4707–
4739) took place over a span of three hours. The times for each kelly ranged from 21 to
25 minutes. The calculated ROP were much higher than previous, except for the Crow
Mountain, ranging from 76 to 91 ft/hr. The WOB was generally held above 20,000 lb.
See Figure 10. The increase in WOB may have aided the drilling rate.

The offset ROP average, for comparable intervals, was 12 -15 ft/hr with a range of 10 –
18 ft/hr. The incremental drilling rate increase utilizing the high pressure PDC bits was
approximately a six or sevenfold increase (ROP/avg ROP) or 500–600% increase in
drilling rate. The increases of drilling rate were among the highest obtained during the
entire testing operation.

At the end of the last drilling interval, pump pressure dropped from over 8,000 to under
3,000 psi. Surface equipment was checked for leaks with none found. Upon tripping the
bit out, one jet was missing from the bit. This jet loss occurred several more times on
subsequent runs and was one of the major hindrances found with the drill bits. The loss
of jets was the major impetus for purchasing a new bit, slightly re-enforced, for later
runs. At the time of this writing, the bit redesign necessary for future testing is still being
reviewed.

DE-FC26-97FT33063 23 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Drilling Performance of Second Bit
Second Run

10,000 Pressure 200

Strokes per Minute
9,000 Bit Status change
180

8,000 160
Pressure Test
7,000 System 140

Strokes per Minute(SPM)

Pump Pressure, PSI

6,000 120

5,000 100

4,000 80

3,000 60
Lost
2,000 Pressure 40

1,000 20

0 0
12:00 AM

1:00 AM

2:00 AM

3:00 AM

4:00 AM

5:00 AM

6:00 AM
April 28, 2004

Figure 9. Pump Pressure and Strokes per Minute, Second Bit, Initial Run

DE-FC26-97FT33063 24 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Drilling Performance of Second Bit
Second Run

4800 75
Depth
4780 Weight on Bit 70
Bit Status Change
4760 65

4740 Kelly down 60

4720 Tally 55
Kelly
4700 Down 50

Weight on Bit, Klbs

4579
4680 45
4611
4660 4643 40
Depth

4675
4640 Depth Correction 35
4707
4739
4620 30

4600 25

4580 20

4560 15

4540 10

4520 5

4500 0
12:00 AM

1:00 AM

2:00 AM

3:00 AM

4:00 AM

5:00 AM

6:00 AM
April 28, 2004

Figure 10. Drilling Performance of Second Bit, Second Run

Red Peaks Shale –First Bit Second Run (After Mud Motor)
The original high pressure drill bit (First Bit – Second Run) was run in the hole early
morning April 29, 2004. This bit was the original bit, which had been repaired before
which was used on the first circulating run (April 20) where pressure losses were
noticed. This bit was also used on the first run with the mud motor (April 25). During this
run, pressure losses were also evident. The bit had been repaired and returned to
RMOTC as a backup.

The starting depth of the well was 4739 feet. Drilling began early morning and the run
lasted for less than one hour. No continual pressure losses were evident with the bit.
Pressure maintained at near 8000 psi for the entire first kelly down; however, at end of
the run, pressure dropped below 3000 psi indicating that a jet was lost Table 1
summarizes the results of this short run of the first bit. Figure 11 and Figure 12 show the
real time drilling data.

DE-FC26-97FT33063 25 of 45 Maurer Technology Inc.

Final Report – Appendix D
The only kelly down (4739 – 4771) required 31 minutes to drill. WOB was gradually
increased during the drilling from lower than 10,000 lb to over 20,000 lb. The ROP for
this kelly down was 62 ft/hr.

The calculated ROP was lower than the second run of the second bit (76 – 91 ft/hr). See
Table 1. The lower ROP may be related to a change in openhole logs. The interval has
a fairly high neutron porosity, a consistently high gamma ray, and a slightly more
negative density porosity. Of course, the change in ROP, may be related to the bit itself.

The offset ROP average, for comparable intervals, was 13 ft/hr. The incremental drilling
rate increase utilizing the high pressure PDC bits was approximately a 4½ fold increase
(ROP/avg ROP) or 350 % increase in drilling rate. The increases of drilling rate, even
though short-lived, was once again very encouraging.
Drilling Performance of First Bit
Second Run (After Mud Motor)

10000 200
Pressure
Strokes per Minute
9000 180

8000 160

7000 140

Strokes per Minute(SPM)

Lost
Pump Pressure, PSI

6000 Pressure 120

5000 100

4000 80

3000 60
Pressure Test
2000 40

1000 20

0 0
4:00 AM

5:00 AM

6:00 AM

7:00 AM

April 29, 2004

Figure 11. Drilling Performance of First Bit, Second Run

DE-FC26-97FT33063 26 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Drilling Performance of First Bit
Second Run (After Mud Motor)

4800 100
Depth
4790 Weight on Bit 90
Bit Status Change
4780 80

4770 70
Depth (Uncorrected)

Weight on Bit, Klbs

4760 60

4750 50

4740 40

4730 30

4720 20

4710 10

4700 0
4:00 AM

5:00 AM

6:00 AM

7:00 AM
April 29, 2004

Figure 12. Depth (uncorrected) and Weight on First Bit, Second Run

Red Peaks Shale –Third Bit (new) Initial Run

With the failure of the first two bits due to bit jet loss, it was decided to purchase a new
bit. The new bit was to be re-enforced around the exterior of the jets on the bit face. It
appeared that some erosion being caused by fluid “ricochet” off the bottom of the hole.

This fluid ricochet or rebound would direct fluid energy back to the bit face where fluid
erosion around the jets would occur; however, detailed inspection of the bits in Houston
indicated that the erosion that causes the majority of the failure is from inside the bit.
High velocity fluid entering the nozzle holes washes or erodes the body material around
the holes.

As the metal was eroded around the jets, the interior bit pressure (8000 psi would cause
the jets to be expulsed from the bit body. This same effect was not noted on earlier high
pressure drilling documented in the early 1970s. It is not known, at this time, the

DE-FC26-97FT33063 27 of 45 Maurer Technology Inc.

Final Report – Appendix D
difference between the earlier tests (1970s) and the recent test performed at RMOTC. It
is speculated the nozzle design may be different causing the loss of the jets.

The high pressure drill bit (Third Bit – Initial Run) was run in the hole the afternoon of
May 2, 2004. The starting depth of this interval was 4772 feet. Drilling began early
afternoon and the run lasted for seven kellys down or approximately 5¾ hours. The
pressure loss at the end of the run was due to a hole that developed behind one of the
cutters on the side of the bit. The hole may have been related to the position of a fluid
passageway to the bit face. See Picture 4 in Attachment D-1.

After tripping the bit out, it was also noted that six cutter faces were missing. See Picture
2 in Attachment D-1. The loss of the cutters was possibly due to the high pressure fluid
streams, drilling parameters such as WOB, or other unknown effects. Manufacturer
defect has not been ruled out either. It was also noted that the re-enforced areas around
the jets were being eroded presumably by the ricochet or rebound effect of the fluid
stream.

Table 1 summarizes the results of this initial run of the third bit. Figure 13 and Figure 14
show the real time drilling data. Depth data as recorded by the electronic system was
tracking well at this point after additional work and calibration.

The seven kelly downs (4772–4997 ft) took place over a span of 5¾ hours. The times for
each kelly ranged from 21 to 57 minutes. The calculated ROP were similar to the second
bit ranging from 35 to 92 ft/hr. The WOB was generally held above 25,000 lb. See Figure
14. The slowest ROP was for the last kelly down (4964–4997.1). Although it is not
known when, during the course of this run, that the cutter faces failed, there was a
significant change in drilling rate or slope of the drilling curve during the last kelly. See
Figure 14. The change in slope may indicate that the cutter faces were failing at this
point.

The offset ROP average, for comparable intervals, was 13–14 ft/hr with a range of 12–
16 ft/hr. With the exception of the last kelly, the incremental drilling rate increase utilizing
the high pressure PDC bits was between a four to sevenfold increase (ROP/avg ROP) or
285–593% increase in drilling rate. The increases of drilling rate were slightly lower than
second run of the second bit which may be due to a slight change in lithology or a
change in the bit itself.

The change in lithology is basically a decrease in density porosity evident from 4700–
5000 ft. The neutron porosity is also varying with higher, more blocky zones of projected
shale content.

DE-FC26-97FT33063 28 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Drilling Performance of Third Bit
Initial Run

Pressure
10000 Strokes per Minute 200
Clean Up
Drill to Btm Check Bit Status Change
9000 Screen 180

8000 160

7000 140

Strokes per Minute(SPM)

Pump Pressure, PSI

6000 120

5000 100
Throttle
4000 Problem 80

3000 60
Engine Lost Pressure.
2000 Overheat Six Cutter
40 Faces
Missing. Hole behind
side cutter
1000 20

0 0
12:00 PM

1:00 PM

2:00 PM

3:00 PM

4:00 PM

5:00 PM

6:00 PM

7:00 PM

8:00 PM
May 2, 2004

Figure 13. Drilling Performance of Third Bit, Initial Run

DE-FC26-97FT33063 29 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Drilling Performance of Third Bit
Initial Run

5100 100
5080 Depth
5060 Weight on Bit 90
5040 Bit Status Change
5020 80
5000
4980 Kelly down 70
4960

Weight on Bit, Klbs

4940 60
4920
Depth

4900 Engine Overheat 50

4880
4860 Lost Pressure 40
4840 Check Screen
4820 30
4800
4780 Throttle 20
4760 Problem
4740 10
4720
4700 0
12:00 PM

1:00 PM

2:00 PM

3:00 PM

4:00 PM

5:00 PM

6:00 PM

7:00 PM

8:00 PM
May 2, 2004

Figure 14. Depth and Weight on Bit, Third Bit, Initial Run

Red Peaks Shale/Goose Egg –Third Bit (new) Second Run

With the failure of the third bit, it was decided to perform a quick repair in Casper and
return the bit to service. This repair was intended to fill the hole behind the side cutter
and not to repair the cutter faces. It was anticipated that some additional data could be
gained before complete termination of the drilling test. See Picture 3 in Attachment D-1.

The high pressure drill bit (Third Bit – Second Run) was run in the hole the night of May
4, 2004. The starting depth of this interval was 4999 feet. Drilling began and lasted until
the early morning of May 5. Drilling spanned five kellys and the run lasted for five hours.
The pressure loss at the end of the run was due to a large hole that developed on top of
the bit adjacent to the previous failure which had been filled. See Picture 6 in
Attachment D-1.

DE-FC26-97FT33063 30 of 45 Maurer Technology Inc.

Final Report – Appendix D
After tripping the bit out, the bit was in very poor condition with several of the posts
completely sheared or broke off and additional cutters with severe damage. See Picture
5 in Attachment D-1. The additional damage to the bit was a continuation of the first run.

Table 1 summarizes the results of this second run of the third bit. Figure 15 and Figure
16 show the real time drilling data. Depth data as recorded by the electronic system
continued to track closely.

The five kelly downs (4999.2–5157.9) took place over a span of 5 hours. The times for
each kelly ranged from 41 to 57 minutes. The calculated ROP were similar to the last
kelly drilled previously (4964–4997) - ranging from 34 to 47 ft/hr. The WOB was held
close to 30,000 lb. See Figure 16.

The offset ROP average, for comparable intervals, was 14 ft/hr. The incremental drilling
rate increase utilizing the high pressure PDC bits was similar to the previous last kelly
between two and three fold increase (ROP/avg ROP) or 140–236 % increase in drilling
rate. Even with serious mechanical damage, the bit continued to perform indicating,
possibly, the positive effects of the high velocity mud streams.

The last two kelly (5094–5127 ft and 5127–5158 ft) penetrated the top of the Goose Egg
formation. The top of the Goose is typified by a drop in gamma ray, a lower neutron and
density porosity, and a high resistivity. The Goose Egg top has been described as a
limestone with anhydrite present which is reflective of the openhole logs. See
Attachment D-2.

The Goose Egg interval, although changing in lithology compared to the Red Peaks
shale, has a similar rate of penetration (ROP). This similar ROP afforded the opportunity
to establish a baseline within the same wellbore using a conventional bit to deepen the
well from 5161 to 5300 feet. The depth of 5300 feet was selected as the core point for
further RMOTC testing.

DE-FC26-97FT33063 31 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Drilling Performance of Third Bit
Second Run

10,000 Pressure 200

Lost Strokes per Minute
Pressure
9,000 Bit Status Change
180

8,000 160

7,000 140

Strokes per Minute(SPM)

Pressure Test
Pump Pressure, PSI

System
6,000 120

5,000 100

4,000 80

3,000 60
Circulate samples for
mud logger
2,000 40

1,000 20

0 0
10:00

11:00

12:00
7:00 PM

8:00 PM

9:00 PM

1:00 AM

2:00 AM

3:00 AM
PM

PM

AM

May 4, 5 2004

Figure 15. Drilling Performance of Third Bit, Second Run

DE-FC26-97FT33063 32 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Drilling Performance of Third Bit
Second Run Depth
Weight on Bit
5200 Bit Status change 100
5180
Kelly down
5160 90
5140
5120 80
5100 Lost Pressure
5080 70
5060

Weight on Bit, Klbs

5040 60
5020
Depth

5000 50
4980
Bit quit Drilling
4960 40
4940
4920 30
4900
4880 20
4860
4840 10
4820
4800 0
7:00 PM

8:00 PM

9:00 PM

1:00 AM

2:00 AM

3:00 AM
10:00

11:00

12:00
PM

PM

AM

May 4,5 2004

Figure 16. Depth and Weight on Bit, Third Bit, Second Run

Goose Egg – Conventional Bit with Low Pressure Drilling

To further validate some of the drilling rate increases demonstrated within Well 48-X-28,
a conventional bit was used to deepen the well from 5161 to 5300. The new
conventional bit selected was a modern Hughes 6⅛” STX-30. This drill bit was selected
based on its outstanding performance on a previous RMOTC in the Lower
Tensleep/Amsden formation. The pump pressure dropped from 8000 psi to around 1200
psi even at a higher pump rate. See Figure 17. Weight on bit (WOB) was held around
20,000 lb for comparative purposes on the first kelly .

The conventional drill bit was run in the hole the afternoon of May 6, 2004. The starting
depth of this interval was 5161 feet. Drilling began and lasted until the early morning of
May 7. Drilling spanned 4-1/3 kellys and stopped at the designed core point at 5300 feet.

Table 1 summarizes the results of this conventional run of the bit. Figure 17 and Figure
18 show the real time drilling data for May 6, 2004.

DE-FC26-97FT33063 33 of 45 Maurer Technology Inc.

Final Report – Appendix D
The first kelly down (5161 – 5192.8) is probably the best baseline comparison due to the
WOB and interval closest to the Red Peaks shale. The time for this kelly was almost two
hours. The calculated ROP was 16 ft/hr.

The offset ROP average, for comparable intervals, was 14 ft/hr. The demonstrated
drilling rate is close to the offsets (14 ft/hr) especially considering that a new bit was
used which may have aided the drilling rate. This comparison further validates the
argument that the demonstrated rates of 60 – 90 ft/hr in the Red Peak shale is a very
significant increase in drilling rate using a high pressure PDC bit over a modern
conventional roller cone bit.

Similar folds of increase were evident in softer formations based on the Exxon test of the
1970s.

Baseline Drilling Performance

with Conventional Bit
Pressure
Pressure
10000 Strokes per Minute 300
Bit Status Change
9000 SPM 270

8000 240

7000 210

Strokes per Minute(SPM)

Pump Pressure, PSI

6000 180

5000 150

4000 120

3000 90

2000 60

1000 30

0 0
12:00 PM

1:00 PM

2:00 PM

3:00 PM

4:00 PM

5:00 PM

6:00 PM

7:00 PM

8:00 PM

9:00 PM

10:00 PM

11:00 PM

12:00 AM

May 6, 2004

Figure 17. Baseline Drilling Performance with Conventional Bit

DE-FC26-97FT33063 34 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Baseline Drilling Performance
with Conventional Bit

5400 Depth 100

Depth
Weight on Bit 90
Bit Status Change
Weight on Bit 80
5300
Kelly down 70

Weight on Bit, Klbs

60
Depth

5200 50

40

30
5100
20

10

5000 0
12:00 PM

1:00 PM

2:00 PM

3:00 PM

4:00 PM

5:00 PM

6:00 PM

7:00 PM

8:00 PM

9:00 PM

10:00 PM

11:00 PM

12:00 AM
May 6 2004

Figure 18. Depth and Weight on Bit, Baseline Drilling Performance

with Conventional Bit

Conclusions
High pressure jet kerf drilling (8000 psi) has been successfully performed at the Rocky
Mountain Oilfield Testing Center (RMOTC).

Significant increases in drilling rate (2–7 times) were evident over a variety of formations.

Mechanical difficulties with loss of bit jets remain a technical challenge. Other
mechanical difficulties with PDC cutters and posts are being investigated.

Further testing of this technology may be warranted to reduce drilling costs and increase
ROP.

DE-FC26-97FT33063 35 of 45 Maurer Technology Inc.

Final Report – Appendix D
References
Meidinger, Brian, “RMOTC Internal Report – Prodril Services Incorporated,”
2003.

Maurer, W.C. and Leitko, C.E., “Coiled-Tubing High-Pressure Jet Drilling

System,” downloadable report from National Energy Technology Laboratory
NETL.DOE.GOV.

Cohen, John, “Advanced High-Pressure Coiled-Tubing Systems,” continuation

Application Phase II-B, August 2003.

DE-FC26-97FT33063 36 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Attachment D-1 – DRILL BIT PHOTOS

Picture 1

Picture 2

DE-FC26-97FT33063 37 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Picture 3

Picture 4

DE-FC26-97FT33063 38 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Picture 5

Picture 6

DE-FC26-97FT33063 39 of 45 Maurer Technology Inc.

Final Report – Appendix D
 Attachment D-2
OPENHOLE LOGS
WELL 48-X-28

DE-FC26-97FT33063 40 of 45 Maurer Technology Inc.

Final Report – Appendix D
DE-FC26-97FT33063 41 of 45 Maurer Technology Inc.
Final Report – Appendix D
DE-FC26-97FT33063 42 of 45 Maurer Technology Inc.
Final Report – Appendix D
DE-FC26-97FT33063 43 of 45 Maurer Technology Inc.
Final Report – Appendix D
DE-FC26-97FT33063 44 of 45 Maurer Technology Inc.
Final Report – Appendix D
DE-FC26-97FT33063 45 of 45 Maurer Technology Inc.
Final Report – Appendix D
 Appendix E

Rocky Mountain Oilfield Testing Center & Maurer Technology Inc.

13135 South Dairy Ashford Rd. Suite 800
Sugar Land, Texas 77478

DRILLING PROGNOSIS

February 17, 2004

U.S. Naval Petroleum Reserve No. 3 Natrona County, Wyoming

Well Number: 48–X-28

CRADA No: 2004-046
API well number: 49-025-TBA

Location: 490' FSL, 2,449' FWL, Sec. 28, T39N-R78W

Elevations: 5104.65' GL. 5114.65' K.B. Lat 43.314785 Long 106.221955

Estimated T.D.: 6200'

Objective: Test High Pressure Drilling System from 4200–6200 ft

Secondary Targets: Seismic Test with INEEL

Core Tensleep for CO2 Pilot Design

PROCEDURE
1. Survey and build location.

2. Prepare APD and forward to the WOGCC.

3. Drill rat hole, mouse hole, and conductor hole. Set 13-3/8" conductor pipe to 45'(±) depth.
Cement with ready mix concrete.

4. MIRU DOE Rig #2 with substructure. Revamp standpipe and surface valves.

5. Install 13-3/8" drilling nipple

6. Drill out conductor and drill 12-1/4" hole to ±500' with water.

7. During drilling, add KCL for 3% KCl mud to stabilize shale. Let water mud up as drilling
proceeds

DE-FC26-97FT33063 1 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

8. Perform mud sweeps with polymer as needed to clean hole.

9. At depth, short trip to surface and back to depth to ensure hole is clean.

10. Rig Up Idaho National Labs (INEEL) for seismic test. Shut down rig for 24 hrs for minimal
noise. Complete seismic test. RD INEEL.

11. RIH with 12-1/4” bit to TD. Wash and ream as necessary. POOH.

12. RU casing crew to run 12 jt 9-5/8" 47# casing to TD. Set and cement casing.

13. WOC. If necessary, give crews time off.

14. Nipple up 9-5/8 casing head using 2-2" ball valves.

15. Nipple up 11" BOP and test to 500 psi with test plug. RU drilling nipple.

16. Rig up mud loggers.

17. Drill out surface casing with 8-1/2" bit using LSND mud. Maintain good fluid loss.

18. Drill through the Wall Creek zones slowly and with LCM to build good wall mud cake to control lost
circulation.

19. Drill to about ±4200 (Top of the Crow Mountain). Short trip as necessary to maintain hole.

20. At depth, condition hole. POOH. RU loggers. Log intermediate hole from 500 – 4200 ft with
gr/density/neutron/ HRLA and sonic or other logs as directed. RD loggers.

21. TIH with 8-12” bit. Circulate and condition hole. TOOH for casing. LD 4-1/2” DP and 6” drill
collars.

22. RU casing crew. Run 7” 23# casing to depth. Set and cement casing.

23. WOC. If necessary, give crews time off.

24. Nipple up 7” casing head using 2-2" ball valves.

25. Nipple up 7-1/16”" BOP and test to 500 psi with test plug. RU drilling nipple.

26. RU rental equipment. Pressure test system to 10,000 psi using BOP testers. RIH with 3-
1/2” HT drill pipe and 6-1/8” bit. Drill out casing shoe and 5 ft of new formation. POOH.
Dump and clean mud tanks. Ensure no solids are contained in mud system. Build new mud system.

27. PU Maurer bit, mud motor, collars. RIH to 1000 ft. Perform rate/pressure calibration run.
RIH to depth. Begin drilling after mud system complete and equipment performing
satisfactorily.

28. Drill with Maurer system from 4200 to 6200 or as test results dictate.

29. POOH. RU openhole loggers. Log bottom interval of 4200–6200 ft.

DE-FC26-97FT33063 2 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

30. If the Tensleep appears productive based on mud logs and openhole logs or possibly even
core, procedures will be developed to run a liner in the hole, cement, and complete.

At this point, the Maurer test will be complete. Several possibilities are possible prior to end of
the test. One possibility is that the Maurer test does not reach TD because of unknown reasons.
It is assumed that drilling will continue, in some manner, to reach the Tensleep core point for the
CO2 effort. At that point, procedures will be presented to govern the Tensleep coring operation.

48-X-28 ESTIMATED LOG TOPS

FORMATION MEMBER KB thick ASL
STEELE SH SHANNON A 247 80 4868
STEELE SH SHANNON B 332 145 4783
STEELE SH TELEGRAPH CREEK 477 132 4638
STEELE SH BRITTLE 609 393 4506
STEELE SH FISHTOOTH 1002 516 4113
STEELE SH GREY DUST 1518 102 3597
STEELE SH ARDMORE 1620 125 3495
NIOBRARA SH WHITE SPECKS 1745 244 3370
NIOBRARA SH SMOKEY GAP 1989 219 3126
CARLISLE SH 2208 242 2907
FRONTIER 1 WALL CREEK 2450 384 2665
FRONTIER 2 WALL CREEK 2834 254 2281
FRONTIER 3 WALL CREEK 3088 267 2027
MOWRY SH 3355 237 1760
MUDDY SS 3592 18 1523
THERMOPOLIS SH 3610 133 1505
DAKOTA SS 3743 72 1372
LAKOTA CGL 3815 7 1300
MORRISON 3822 213 1293
SUNDANCE 4035 82 1080
SUNDANCE LAK 4117 95 998
SUNDANCE LAK EVAPORITE 4212 12 903
SUNDANCE HUELETT SS 4224 4 891
SUNDANCE STOCKDALE BVR SHALE 4228 43 887
SUNDANCE CANYON SPRINGS SS 4271 82 844
CHUGWATER/CROW MTN 4353 86 762
CHUGWATER/ALCOVA 4439 22 676
CHUGWATER/RED PEAKS 4461 590 654
GOOSE EGG 5051 167 64
GOOSE EGG FORELLE 5218 73 -103
GOOSE EGG MINNEKAHTA 5291 17 -176
GOOSE EGG OPECHE 5308 34 -193
TENSLEEP 5342 11 -227
TENSLEEP TOP A SS 5353 50 -238
TENSLEEP BASE A SS 5403 29 -288
TENSLEEP TOP B SS 5432 66 -317
TENSLEEP BASE B SS 5498 47 -383
TENSLEEP TOP C SS 5545 20 -430
TENSLEEP BASE C SS 5565 95 -450
AMSDEN 5805 240 -690

DE-FC26-97FT33063 3 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

MUD PROGRAM:
12-l/4"Hole to 500 ft -5% KCl/Polymer Mud (per mud engineer’s direction)

8-1/2" Hole to 4200 ft LSND Mud with the fluid loss control to minimize shale sloughing and
promote hole stability for openhole logs. Fluid loss below 10 cc. Lost Circulation Control as
needed with LCM. Cement squeeze of Second Wall Creek with fiberglass tail pipe to be
considered.

6” Hole from 4200 to 6200. 3% KCl/polymer or as directed by mud engineer.

See Attached Recommendation.

ELECTRIC LOGGING PROGRAM:

HRLA/GR/Cal/CNL CDL from 500 to 4200 ft. Second run with sonic log.

Logging from 4200–6200 TBD. Other logging as requested.

Logging Subcontractor: Schlumberger Wireline Phone: (307) 234-8981

CASING PROGRAM:

Conductor Casing
1 joint of 13-3/8" 54.5# K-55 Cementing Hardware – None

Surface Casing
12 Joints of 9⅝" 47# P-110 Cementing Hardware

1 – 9⅝" Guide Shoe

1 – 9⅝" Insert Float Collar

1 – 9⅝" Stop Ring

1 – 9⅝" Top Rubber Plug

6 – 9⅝" Centralizers

1 – Threadlock Kit

Install centralizers on bottom 3 collars and alternating collars above

Production Casing:
About 100 joints – 7" , 23#, J55, LT&C

DE-FC26-97FT33063 4 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

Cementing Hardware:

1 – 7" Float Shoe ( fill-up type)

1 – 7" Float Collar ( differential fill type)

1 – 7" Stop Ring (limit clamp)

1 – Top Rubber Plug

15 – 7" Centralizers

1 – Threadlock Kit

NOTES:
1. Production Casing program is approximate.

2. Install float shoe.

3. Use threadlock compound on float shoe and float collar.

4. Install centralizer 5 ft above float shoe and on alternate collars.

CEMENTING PROGRAM
Cementing Subcontractor: Rocky Mountain Cementers (307) 234-2212

Surface Casing: TBD

1. Preflush with 36 bbl. 3% KC1 water containing 3 sacks KC1, 3 sacks gel, and 5 gallons
surfactant. Lost circulation material may also be added to preflush. Preflush may be varied
according to hole conditions.

If hole is drilled with non-dispersed mud, add an 18 bbl. spacer containing KC1 and surfactant.

If hole contains weighted mud, add a weighted mud sweep to avoid cement contamination. At
maximum anticipated density, the mud will be heavier than the cement slurry.

2. Cement with ___sx. Class "G" cement containing 2% CaCL. and l/4#/sk celloflake.

Cement volume is based on annular volume + __ % excess.

Yield: ___cu ft/sk Density: ___ Ib/gal Water Req.: 5.0 gal/sk

DE-FC26-97FT33063 5 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

Production Casing: TBD

1. Preflush with 36 bbl, 3% KC1 water containing 3 sacks KC1, 3 sacks gel, and 5 gallons
surfactant. Lost circulation material may also be added to preflush. Preflush may be varied
according to hole conditions. If hole is drilled with non-dispersed mud, add an 18 bbl.
spacer containing KC1 and surfactant.

2. Cement with ___ sx. Class "G" cement containing 50% Pozlan, 2% CaCl. and l/4#/sk
celloflake and tail in 1st stage with 50sx of neat class "G". 1st stage is about ___ sacks of
50-50 Poz and 2nd stage is about ___ sacks. Exact number of sacks will be calculated
from open hole caliper log.

Cement volume is based on annular volume + ___ % excess covering critical zones. Yield:
____ cu ft/sk Density: ____1bs/gal Water Req.: ____ gal/sk

Wall Creek or Crow Mountain Squeeze: To be determined.

REPORTS:
1. All pertinent data and operations such as DST's, coring and casing shall be recorded on
the IADC-API Daily Drilling report. The White, Yellow, and Pink copies shall be given each
morning to the RMOTC Project Manager, along with all delivery tickets signed and
received. The green copy shall remain with the tool pushers and the white copy will
remain in the book.

2. As of 7:00 a.m. each morning, a report by the tool pusher or the RMOTC Project Engineer
shall be e-mailed or faxed into the Casper Office and include all pertinent data or
operations.

DE-FC26-97FT33063 6 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

Attachment E-1

DE-FC26-97FT33063 7 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

DE-FC26-97FT33063 8 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

DE-FC26-97FT33063 9 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

DE-FC26-97FT33063 10 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

DE-FC26-97FT33063 11 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

Attachment E-2

Drill Pipe Specifications

DE-FC26-97FT33063 12 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

Attachment E-3 – ENGINEERED TEST PLAN

DOE High-Pressure Jet Kerf Drilling
Test to be Conducted at RMOTC

Introduction

The following engineered plan is for conducting a test of the jet kerf drilling system developed by
Maurer Technology Inc. under contract to Federal Energy Technology Center (DE-FC26-
97FT33063). This document concentrates on the major elements needed to successfully test
the Maurer jet kerf drilling system at the Rocky Mountain Oil Technology Center (RMOTC) in
Wyoming.

Safety

Safety will be a critical item, as the surface fluid pressures will be at or near 10,000 psi. Any
failure of piping, hoses, or other equipment could cause serious injury or death to personnel in
the area. Even a small pin-hole leak at these pressures is dangerous. The stream will act like a
knife cutting flesh and bone. Every operation and modification will be examined with the above
in mind. Exposure of personnel will be limited as much as is possible.

A safety meeting covering the dangers of high-pressure fluids must be held and all personnel
need to be on the watch for potential failures or dangers.

Objective

The objectives of this test are three fold. They are: 1) Establish that high-pressure (8,000 to
10,000 psi) jet kerf drilling increases penetration rate in a different types of formations at depths
of 4,000 to 6,000 ft., 2) Measure and quantify the amount of increase in penetration rate
compared to conventional rotary drilling, and 3) Test the durability, reliability and functionality of
the high-pressure drilling motor and bit designed and built for this project.

These objectives will be met by drilling 2,000 ft of 6 in. diameter hole through formations
typically encountered during oil and gas drilling. The test will be conducted at the RMOTC in
Wyoming. The high-pressure jet kerf drilling will begin at a depth of approximately 4,300 ft
drilling out from 8-1/2 in. 20 or 23 lb/ft casing. Drilling rates will be compared to conventional
rates that have been recoded at the site on many wells drilled over several years and under
many conditions.

Preparation

RMOTC: RMOTC will prepare a drill site and set up their rig. After setting surface pipe 12-1/4
in. diameter hole will be drilled to a depth of approximately 4,300 ft. RMOTC will then set 8-5/8
in. 20 or 23 lb/ft casing. The casing shoe will be drilled out and the hole prepared for the test.

RMOTC will then modify their rig and mud system for pumping at high (10,000 psi). These
modifications will include the installation of a new pump with a high pressure fluid end, piping
and accumulator. The stand pipe and piping to the stand pipe will be replaced with high
pressure pipe, the rotary hose will be replaced with a high pressure hose and the swivel will be

DE-FC26-97FT33063 13 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

replaced with a high pressure swivel. Once the modifications have been made RMOTC will test
the system for proper operation.

Before the high pressure drilling assembly is run RMOTC will empty and clean the mud pits
replace the mud with clean water and add a centrifuge to the mud cleaning equipment. The
hole will be conditions and then the high pressure portion of the test begun.

Maurer will also supply a high pressure pump as an emergency back to the RMOTC pump.
This pump will have only 80 to 100 gpm capability, but is necessary in case the primary pump
fails and the test halted. This pump can also be used to add additional flow incase the primary
pump is horsepower limited.

Maurer: Maurer will disassemble, clean, lubricate, and reassemble the high pressure mud
motors in preparation for the test. Both the 3-1/8 in. and the 4-3/4 in. motors will be prepared.
Well hydraulic calculations will be done to determine the correct nozzle size based upon the well
parameters. The high pressure PDC bit will be fitted with the correct nozzles for the test.
Maurer will also supply drill collars for the test. A Special screen will be manufactured to place
into the bottom collar to keep any stray particles from plugging the high pressure nozzles in the
bit. A second screen will be run just above the bit as added insurance. This equipment will be
shipped to ROMTC before the test.

The drill collars will be run using o-rings that fit on the conventional oilfield pin and form a seal in
the thread relief on the box. This will help prevent was outs in the threads. Depending on the
drill string (tool joint type) selected o-rings may be used on these threads as well.

Test Plan Outline

RMOTC will after building a pad and moving a rig onto site will construct a well, using
conventional drilling techniques, to a depth of approximately 4,300 ft. A surface hole, 12-1/4 in.
dia., will be drilled to a depth of 300 to 400 ft were 9-5/8 in. casing will be set to isolate the
Shannon formation.

From this point the well will be drilled to a depth of 4,200 ft. using 8-3/4 in. bits, were 7 in. x
23lb/ft casing will be set. The shoe will be drilled out and then RMOTC will up grade the rig for
10,000 psi operation. Prior to drilling the hole will be conditioned and then the mud tanks
empted, cleaned and filled with fresh water for the high pressure test.

High-Pressure Drilling Plan

1. Rig up high-pressure bit, motor and a minimum of one drill collar.

2. Insert screen into drill collar

3. Test motor at flow 180 to 200 gpm to check pressure drop across tool

4. Total pressure drop during drilling should not exceed 10,000 psi or be below 8500
psi. If pressure drop across bit and motor will not allow this range adjust nozzles
in bit.

5. Once bit nozzles are correct rig up remainder of drill collars. Each tool joint should
receive o-ring before make up

DE-FC26-97FT33063 14 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

6. Run BHA into hole

7. Tag bottom, lift off start pumps.

8. Pressure up to 10,000 PSI (200 gpm) while rotating and stroking tool

9. Avoid holding tool in one location when pumps are running

10. Start drilling and record ROP every foot as often as possible (ROP can be given as
minutes/ft)

11. Continue drilling running sweeps or short tripping as necessary to clean well.

12. When not drilling rotate and stroke pipe to keep jets from washing out side wall.

13. Slow ROP down at each formation break during drilling to avoid damaging bit.

14. Continue drilling to TD

15. If test is going well flow may be varied to measure effect on ROP.

16. Monitor well for sticking if ROP becomes too high

17. After reaching TD pull BHA from well

18. Retest motor and bit at surface to determine pressure drop at same flow rate when
staring well

DE-FC26-97FT33063 15 of 16 Maurer Technology Inc.

Final Report – Appendix E
 RMOTC Field Tests – Drilling Prognosis

Attachment E-4

BHA

DE-FC26-97FT33063 16 of 16 Maurer Technology Inc.

Final Report – Appendix E
 Appendix F

Coiled-Tubing Equipment

History..........................................................................................................................................1
CT String......................................................................................................................................2
CT Injector ...................................................................................................................................3
CT Reel.........................................................................................................................................4
CT Power Pack ............................................................................................................................5
Crane and Substructure .............................................................................................................5
Well-Control Equipment .............................................................................................................6
CT Control Console ....................................................................................................................7

History

Since its introduction to the oilfield in

1963, CT has been heralded as a
technology that has the potential to
revolutionize gas and oil operations.
Unfortunately, early mechanical
failures, high oil prices, and the
industry’s reluctance to adopt change
limited the growth of CT technology.
During the 1990s, however, interest in
CT increased dramatically. The fall of
oil prices in the 1980s triggered
increased use of and interest in cost-
saving technologies such as CT.
Significant advances in tubing reliability
and increased equipment versatility
have transformed the industry. Figure 1. Basic CT Rig for Workovers

CT rigs (Figure 1) have found widespread use in the oil field for drilling, completion, and
workover operations. Reduced rig costs and trip times allowed CT rigs to reduce cost by as
much as 50–70% when compared to conventional workovers, especially in harsh environments
such as Arctic fields and offshore. In addition to cost savings, CT has also proven to be more
versatile than other competing systems. As shown in Table 1, CT has specific advantages and
disadvantages as compared to conventional systems.

DE-FC26-97FT33063 1 of 8 Maurer Technology Inc.

Final Report – Appendix F
 Table 1. Advantages/Disadvantages of CT
Coiled Tubing Jointed Pipe
Faster Trip Time Rotation from Surface
Continuous Pumping Low Pipe Fatigue
Low Mobilization Costs Greater Push/Pull
Operations in Live Wells Higher Torque
Workovers in Slim Holes Proven/Accepted

Due to the advantages of CT in the right applications, its use has continued to expand in the oil
field. Development of larger tubing (up to 3½ in. OD) and advanced downhole drilling tools in
the 1990s led to new applications, most notably drilling open hole. Drilling with CT has received
considerable interest from the industry during the past few years. With its ability to be tripped in
and out of the hole rapidly under pressure, CT holds great promise to reduce costs when
applied under appropriate conditions.

Basic CT equipment and systems as used for most drilling operations are shown in Figure 2. In
some cases, individual items may be modified to suit a specific application, but generally the
equipment is interchangeable between applications. The trend toward larger CT sizes for drilling
often results in larger equipment that is not easily compatible with well-intervention operations.
For example, 2-in. or 2⅜-in. CT strings are not commonly used for well-intervention operations.

Figure 2. Basic CT Equipment Subsystems

A brief overview of key components for CT operations is provided in the sections below.

CT String

CT is a continuous string of tubing loaded onto a spool. It is made from rolling strip material into
a tubular form and resistance welding along its length. After its manufacturing, the tubing is
rolled onto large spools with core diameters ranging from 8–12 feet. Quality Tubing developed

DE-FC26-97FT33063 2 of 8 Maurer Technology Inc.

Final Report – Appendix F
the continuous milling process that is
capable of producing a single tube over
30,000 ft (varies with wall thickness and
pipe size) in length. When milled into a
finished tube, the entire length is non-
destructively inspected, gauged and
hydrostatically tested to assure quality.

Even basic CT drilling operations can

require high performance from the CT
string. For example, if drilling operations
require multiple passes over the same hole
section (e.g., wiper trips), fatigue of the
string can quickly accumulate and lead to Figure 3. CT String
failure. In addition, the likelihood of stuck
pipe is greater during CT drilling than in most conventional well-intervention applications since
there is no ability to rotate the string. This not only means that performance characteristics of
the CT string must be optimum, but that operating limits of CT strings for drilling must be known
at all times.

CT of 2⅜ or 2⅞ in. OD is typically used for drilling new and directional wells. For some simple
well deepenings with limited hydraulic requirements, a 2-in. CT string may be sufficient. In
almost all applications, CT strings with wall thickness of at least 0.156 in. manufactured from
70,000- or 80,000-psi yield strength material are recommended. However, for deeper vertical
wells or longer step-out horizontal wells, a 100,000- or 110,000-psi yield strength material may
be required.

During the design phase of most CT drilling applications, the optimum size, wall thickness and
yield strength are determined using CT modeling software and design data from the intended
application. Some of the design data required are: (1) the well path; (2) open-hole diameter; (3)
drilling fluid weight and viscosity; (4) length and diameter of existing tubulars if drilled through
tubing; (5) length and diameter of the BHA; (6) maximum overpull allowed; and (7) required
weight on bit (WOB) at total depth.

In general, the size of CT selected for a given job will be a compromise based on tubing life
(smaller sizes have a longer fatigue cycle life, but provide lower strength and limited flow rates)
and flow area (larger CT sizes have greater strength and flow area, but shorter fatigue service
life). Consequently, CT drilling is usually done with 2⅜- or 2⅞-in. CT. Another critical
consideration is the amount of CT that can be reeled onto a given spool to achieve the desired
depth or the maximum weight the crane can support.

CT Injector

The CT injector head (Figure 4) provides the power and traction necessary to run and retrieve a
CT string into and out of the wellbore. Several hydraulic systems are used to enable the CT unit
operator to exercise control over any string movement.

DE-FC26-97FT33063 3 of 8 Maurer Technology Inc.

Final Report – Appendix F
 Figure 4. Typical CT Injector

For CT drilling operations, an injector with at least a 60,000-lb pull capacity is required. For
simple well deepenings, a 40,000-lb capacity injector may be adequate if conditions allow. A
minimum gooseneck radius of 72 in. is required for 1¾-in. and larger CT strings. While the
majority of drilling is done with standard CT injectors, special hybrid units have been developed
which allow running both continuous CT and jointed pipe. These units allow the CT unit to
complete more of the tasks associated with drilling, such as running and pulling completion
tubing. Key performance data and specifications of common CT injectors are listed in Table 2.

Table 2. CT Injector Specifications

Height Width Depth Weight Snub Pull CT Sizes
Injector Model
(in.) (in.) (in.) (lb) (x1000 lb) (in.)
HR440 80 52 55 6750 20 60 1 to 2⅜
HR480 109 60 60 11200 40 100 1¼ to 3½
SS 400 82 42 58 5700 20 40 ¾ to 2⅜
SS 800 82 42 58 6125 20 80 ¾ to 2⅜

CT Reel

The primary function of a CT reel (Figure 5) is to safely store and protect the CT string. This
must be achieved while avoiding excessive damage to the string through fatigue (bending) or
mechanical damage from spooling. The reel typically incorporates a swivel assembly which
allows fluids to be pumped through the tubing string while the reel drum rotates. For CT drilling
applications incorporating a CT string with wireline installed, a bulkhead and collector assembly
is required to enable the electrical conductors to pass from within the CT string (from a pressure
seal) and out of the rotating reel drum (electrical swivel/collector).

DE-FC26-97FT33063 4 of 8 Maurer Technology Inc.

Final Report – Appendix F
 Reel

Level Wind

Safety Guard

Fluid Swivel Circulating Fluid

Figure 5. CT Reel

In addition to the hydraulic connections required to operate the drive, braking and spooling
guide (level-wind) systems, reels used in CT drilling
operations are typically fitted with additional monitoring
equipment and connections (for example, pressure
monitoring sensors used with MWD mud-pulse technology, or
CT string monitoring equipment such as a diameter and
ovality monitoring device).

CT Power Pack

The function of the power pack is to provide hydraulic power

to operate the CT unit and primary/secondary pressure- Figure 6. CT Power Pack
control systems (e.g., stripper and BOP systems). In addition,
the power pack incorporates an accumulator facility to allow limited operation of pressure-
control equipment following engine shut-down. If nonstandard equipment or auxiliary equipment
is to be powered by the CT power pack during drilling operations, it should be confirmed that the
output of the power pack is adequate and that the pressures and flow rates are compatible.

Crane and Substructure

All CT drilling operations require lifting, moving and placing of equipment of tools (BHA). Local
conditions and configuration of the equipment will determine the size (height) and capacity of
the crane. The crane is often used to place the injector on top of the BOP and then to hold the
injector in place. The CT drilling engineer must determine if a substructure is needed and then
the size and type required for the given project parameters.

The substructure (Error! Reference source not found.) provides stability to the wellhead
equipment and can include additional features ranging from a simple platform to a complex
jacking frame capable of running and pulling wellbore tubulars.

DE-FC26-97FT33063 5 of 8 Maurer Technology Inc.

Final Report – Appendix F
 Figure 7. Multipurpose CT Support Structure

The key features of a drilling substructure are:

• Elevates the working area above the wellhead for easier access to the wellbore

• Allows supporting the injector head without the crane and provides a means for
raising/lowering the injector for make-up. Also allows skidding the injector on/off
the wellhead when rigging BHAs.

• Provides a safe working platform for personnel while handling the BHA and
injector hook-up

• Provides a means for supporting the BHA/tubulars during make-up using a “false
rotary” opening and use of spider and slips

Substructures are designed for use within a limited range of vertical adjustment, enabling the
substructure to be adjusted to suit the specific wellhead and surrounding conditions. Typically,
sub-structure legs are adjusted to an appropriate height and fixed (pinned) in place.

A more complex version of the CT drilling substructure is the hybrid unit, or jacking frame. This
structure is equipped with an upper platform mounted on hydraulic rams that can be raised and
lowered from the lower substructure base. By using power slips on the upper and lower platform
openings, tubulars can be run or pulled from the well by raising/lowering the upper platform.
Advantages of this type of substructure are flexibility in position adjustment, and a reduced
dependence on high-capacity cranes or derricks for running or pulling well tubulars.

Well-Control Equipment

The configuration of BOP equipment required for any CT drilling operation largely depends on
the type of application and the anticipated "worst case" conditions that may be encountered.

DE-FC26-97FT33063 6 of 8 Maurer Technology Inc.

Final Report – Appendix F
The configuration may change as work progresses, i.e., as the likelihood of higher pressures
increases, so must the operating capacity of equipment increase. There are several categories
of BOP systems which require significantly different approaches to equipment configuration.

CT well-control equipment used for the majority of CT drilling operations is very similar to that
used for CT well-intervention services. In some cases the individual items may be modified to
suit a specific application, but generally the equipment is interchangeable between applications.

Quad BOP

If the size (ID) allows, a standard 4-in. quad BOP (Figure 8) provides adequate functionality with
convenient rig-up and operation. Larger hole sizes typically require use of 71/16-in. BOPs.

Figure 8. Quad BOP for CT Operations

Single/Dual BOP

For applications requiring through-bore access greater than 5⅛ in., the BOP stack, or part
thereof, may be assembled for single or dual-ram BOPs in 6⅛- or 71/16-in. sizes.

Annular BOP

The annular BOP is an extremely flexible component enabling a wide variety of contingency
options over a range of tool/BHA sizes.

CT Control Console

All CT operations are controlled from the operator’s console (Figure 9) or control cabin area. In
some cases, it may also be desirable or necessary to include a repeat/remote control located in
a safe area for emergency operation, e.g., remote operation of shear/seal tertiary pressure
control equipment.

DE-FC26-97FT33063 7 of 8 Maurer Technology Inc.

Final Report – Appendix F
 Figure 9. CT Unit Control Console

DE-FC26-97FT33063 8 of 8 Maurer Technology Inc.

Final Report – Appendix F
 Appendix G

Reviewer’s Comments
“Advanced High-Pressure Coiled-Tubing Drilling System”

By
E. Lance Cole
Petroleum Technology Transfer Council
Registered Engineer in Oklahoma
June 9, 2005

Overall Comments:
Significant steps forward were made in this project, but I do believe stating it is clearly
“technically feasible” may be overstating the case. Performance of the jet-assisted bit was never
confirmed, although there is a new design that purportedly solves that problem. Other individual
components performed, but some not for long and testing was inadequate to determine if the
“system of components” would perform with the reliability required for commercialization. All of
the above said, the ability to achieve significantly improved penetration rates in a field
environment was confirmed – but that had been confirmed in earlier work by others. It’s the
performance of a “system” that remains the challenge. Comments on individual components
follow, ending with thoughts on an approach to bring about the additional field testing that is
definitely required before commercialization will be near.

Jointed Pipe
The double-shouldered drill pipe did perform satisfactorily in the RMOTC field test, but the tests
were only for a few days at a time. In my mind there is still a question about whether it would
continue to perform under continued “daily usage” conditions. Does this need to be confirmed in
a longer duration test, or is there performance data for the drill pipe in other applications that
would confirm its longer-term durability?

Coiled Tubing
Laboratory testing of Quality Tubing’s QT-1200 tubing did show an increase from below 25 to
over 150 cycles @ 12,000 psi. Although offered as a standard commercial item, it was
unfortunately never used in this project. Before rejecting the CT approach, is it worthwhile to test
a commercial string at RMOTC?

Bit Nozzle
Although an anti-erosion nozzle has been developed and patented, there was no data
presented to show it would perform any better. Until this problem is solved and performance in
field test conditions confirmed, the entire HP drilling approach is at risk. Further testing in a field
environment like RMOTC is essential.

4¾” HP Downhole Mud Motor

In testing on April 25–29, the mud motor failed after only a short time. Although the stator
manufacturer offered an explanation for the failure, there was no way to confirm the explanation
offered was really the culprit. No further testing with a HP downhole mud motor was attempted

DE-FC26-97FT33063 1 of 5 Maurer Technology Inc.

Final Report – Appendix G
in the RMOTC test. Although it is stated that HP motors were “extensively tested in the
laboratory,” there was no mention of any other field tests of the HP motor. Without further data,
it seems that the question of long-term field reliability of the HP downhole mud motor remains to
be confirmed. Again, further testing in a field environment like RMOTC is essential.

The Next Steps for Commercialization (two-step process)

First, there needs to be longer-duration testing at RMOTC to confirm (1) performance of
individual components and (2) performance of the system under field conditions. This testing will
likely require significant DOE funding – private industry does not have the incentive until the
“system” comes closer to demonstrating commercial reliability.

Then, given positive results from a second field test at RMOTC, one has the data to approach
an operator that has a very active drilling program regarding working with them and their drilling
contractor to test the “system” on a few holes. An operator that comes to mind is Williams – they
have a 10-yr supply of Piceance Basin drilling locations, as evidenced by their recent order for
10 new drilling rigs. They have the incentive to reduce their drilling times and the stroke with a
drilling contractor to push them to a test. Once one operator drills a few holes with the higher
penetration rates, technology acceptance and commercialization will accelerate.

DE-FC26-97FT33063 2 of 5 Maurer Technology Inc.

Final Report – Appendix G
 Reviewer’s Comments
“Advanced High-Pressure Coiled-Tubing Drilling System”

By
Ralph Schulte
Critique, Inc.
Project Manager
Rocky Mountain Oilfield Testing Center

Recommendations:
1. The use of high-pressure drilling or jet-assisted drilling has shown significant promise to
continue with further testing. It is believed that a constant, small-scale development
effort, similar to the Microhole Drilling initiative, is warranted.
2. Future testing might be on a small scale but should be sufficient to further the technology
or address the current problems areas already identified.
3. The problem areas include the loss of jets due to internal erosion of the steel adjacent to
the jets. The difficulties of the high pressure mud motor should also be further
researched.
4. Testing operations could be structured to allow for a compromise between laboratory
testing and a full-scale drilling test. Testing operations could be conducted in shallow
test wells with concrete targets of varying compressive strengths or actual rock targets.
5. It is believed that high pressure drilling will occupy a niche drilling market in the future.
This drilling market may include wells with drilling times measured in months instead of
days. If sufficient technology can be demonstrated then operators and possibly
contractors should be willing to adopt the technology based on economic incentives.

DE-FC26-97FT33063 3 of 5 Maurer Technology Inc.

Final Report – Appendix G
 Reviewer’s Comments
“Advanced High-Pressure Coiled-Tubing Drilling System”

By
Roy Long
Technology Manager, Oil Program
National Energy Technology Laboratory
United States Department of Energy

DOE's Advanced High-Pressure Coiled-Tubing Drilling System, developed by Maurer

Technology, was another of those excellent concepts / expertly-developed technologies that did
not reach commercialization primarily because of market forces which did not allow adequate
deployment and demonstration required to achieve market penetration. The concept of high
penetration rates achievable by cavitation to depths of at least 3,000 feet is well documented.
Based on the likelihood of additional abrasion effectiveness adequate to enhance kerfing effects
to augment positive displacement motors, drilling below cavitation depths is also soundly based
and demonstrated, at least on a limited basis, by this project. The problems encountered in this
project that prevented commercialization were as follows: (1) Industry pressure to drill at least 7-
7/8" boreholes resulted in surface pumping requirements which pushed the envelope of existing
pumping systems of "commercial interest". (2) The field demonstration CT drilling partner had
full utilization of its CT drilling rigs and had inadequate interest in deep drilling via CT.

Despite the lack of commercialization, the following concepts were established: (1) High
pressure (10,000 PSI) positive displacement (Moineau type) motors can successfully be
manufactured with existing technology (2) High penetration rates (over 1,000 ft/hr) are
achievable with this system in cavitation drilling environments. The effectiveness of this drilling
energy for kerfing at depths greater than cavitation depths is given further confidence based on
this performance. (3) The basis of high speed drilling via a similar system used with CT in
smaller boreholes is still a viable concept to enhance overall CT drilling efforts within the U.S.
This is the basis of award of a new proposal for DOE's Microhole Technologies Program where
rapid drilling of boreholes of 3½" diameter is expected to provide a basis for revitalization of U.S.
existing mature fields. This resource target less than 5,000' is in excess of 200 billion barrels of
known oil that will not be developed unless cost effective systems such as this are deployed.

Based on the above demonstrated concepts, this program was successful.

DE-FC26-97FT33063 4 of 5 Maurer Technology Inc.

Final Report – Appendix G
 Reviewer’s Comments
“Advanced High-Pressure Coiled-Tubing Drilling System”

By
Mladen Ruzic
Gulf Coast Region – Senior Region Engineer
Baker Oil Tools
Fluid Pumping Services
Houston, Texas

Dear John,

I reviewed your report and am attaching a list of observations for your reference. Let me say
that I am duly impressed by the depth of the scope of the project and your accomplishments as
there are many significant positive conclusions listed in the report. My comments are more or
less of the cosmetic nature. I appreciate the opportunity to review your report.

DE-FC26-97FT33063 5 of 5 Maurer Technology Inc.

Final Report – Appendix G