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Introduction to Air Drilling AirComp LLC A Division of Allis-Chalmers Energy AirComp LLC A Division of Allis-Chalmers Energy

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Page 1: air drilling

Introduction to Air Drilling

AirComp LLC A Division of Allis-Chalmers Energy AirComp LLC A Division of Allis-Chalmers Energy

Page 2: air drilling

Introduction to Air Drilling

Section 1: Air Drilling ApplicationsSection 2: Dust DrillingSection 3: Mist DrillingSection 4: Foam DrillingSection 5: Aerated DrillingSection 6: NitrogenSection 7: Air Hammer & BitsSection 8: Performance / Results

Page 3: air drilling

Section 1 -- Air Drilling Applications

What describes an Ideal Candidate for Air Drilling?

Page 4: air drilling

Ideal Candidate for Air Drilling• Long wellbore sections with Minimal Formation Pressures

• Medium - Hard Formations w/ Low ROP

• Deviation Problems due to High Formation Dip Angles

• Lost Circulation Problems

• Formations that have Minimum Water Influx

• Water Sensitive Formations (Shales) are time sensitive to sloughing.

• Hydrocarbon zones are typically Gas bearing.

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Advantages of Air Drilling• Faster R.O.P. (2-5 times faster than on Mud)

• Improved Deviation Control (light WOB)

• Minimal Formation Damage in Production section

• Effective Pressure Control thru Lost Circulation Zones

• Detection of Low Pressure Zones

• Faster return of drilled cuttings (formation evaluation)

• Overall Lower Cost per Foot

Page 6: air drilling

Most Common Air Drilling Applications

• Hard Rock Drilling where ROP is less than15 ft/hr using mud.

• Areas that have Deviation Problems with conventional BHA’s and use light WOB.

• Lost Circulation Problems

• Pay-Zones that are sensitive to Formation Damage w/mud.

Page 7: air drilling

Disadvantages of Air Drilling• Large amount of Air Volume High Annular Velocity is required to carry

cuttings up the hole;– 3000 ft/min Minimum Annular Velocity required for Hole Cleaning as per

Angel’s Curves in 1957– 5000 ft/min Annular Velocity suggested for Optimum Hole Cleaning

• Formation Pressure Control is minimal;

• Can Not drill when H2 S zones are present

• Danger of Down-hole fires:– Use Nitrogen– Use Fire Float / Stop– Use Mist

• Limited Applications: geological regions with mature, stable and relatively dry formations (water influx limitations);

• Problems with Down-hole motors (high speeds) & EM-MWD (high vibrations) but improvements are being made and performance has improved with Mist Drilling

Page 8: air drilling

Section 2 Section 2 ---- Dust DrillingDust Drilling

What is Dust Drilling ?

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What is Dust Drilling?What is Dust Drilling?

• Compressed air is used as the sole circulating medium.

• No fluid (Water / Soap) injection means the annular returns are “Dust”.

• Cuttings are carried to surface by High Annular Velocity and routed to a pit through a Blooie-Line.

Page 10: air drilling

AirComp LLC A Division of Allis-Chalmers Energy AirComp LLC A Division of Allis-Chalmers Energy

Page 11: air drilling

Rig Floor Manifold Set UpG u a g e

G u a g e B a l l V a lv eC h e c k V a lv e

S t d P ip e

B a l l V a lv eB a l l V a lv e

B y - P a s s T o P r im a r y J e t

B y - P a s s t o B lo o ie L i n e

M a in A i r F e e d F / C o m p r e s s o r s

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Advantages of Dust Drilling System

• Optimum environment for use with Air Hammers

• Least Expensive operations

• No fluid system to clean up or Disposal at the surface.

• Maximum Penetration Rates.

• Extended bit life.

Page 13: air drilling

Dust Drilling Limitations• Wellbore fluid influxes cannot be handled

effectively with Dust drilling.

• Influxes will wet cuttings resulting in mud rings in the annulus, restricting hole cleaning.

• Switching to Mist or Foam allows continued Air Drilling in the presence of water.

• Chance of Down-Hole Fire if Mud Rings are not eliminated.

Page 14: air drilling

Section 3 -- Mist Drilling

When and Why should you Mist Drill ?

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What is Mist Drilling?

• Air Drilling with the addition of liquids usually water, soap and chemical inhibitors.

• Mixture of water and soap is added to the air stream at surface at a controlled rate to improve annular hole cleaning.

• Misting can use many different mediums (water, surfactant, etc.)

• When Misting the Annular Pressure increases so the ROP will typically drop VS Dusting applications– Additional Air Volume can help improve ROP

Page 16: air drilling

When should you Mist Drill ?• Wellbore becomes wet due to fluid influx.

• Annular cleaning problems lead to inconsistent flow at the Blooie line / pressure increase.

• Wellbore fluid influx is up to 100+ gpm / 150 Bbls/Hr but is dependent upon Air Volume.

• Reservoir produces large amount of Gas / Condensate which creates hole cleaning problem.

• Hole showing fill after connections suggesting “Sloughing problems”……. caution Mist could increase sloughing if shales are sensitive.

Page 17: air drilling

AirComp LLC A Division of Allis-Chalmers Energy AirComp LLC A Division of Allis-Chalmers Energy

Page 18: air drilling

Advantages of Mist Drilling

• Higher ROP than with conventional mud.

• Enables drilling to proceed while producing fluids.

• Improves Hole Cleaning capacity

• Reduces risk of downhole fires.

• Eliminates need for Nitrogen

Page 19: air drilling

Mist Drilling Limitations• Slower penetration rate than Dust drilling due

to increased annular hydrostatic pressure. – ROP = 30 – 50% less than Dusting

• Limited tolerance to water influx.– High amounts of Water influx typically makes Mist

Drilling uneconomical.– When large liquid influxes are encountered; options

• Switch to Foam • Switch to Aerated Mud

Page 20: air drilling

Extra Costs for Air Drilling

• Air Package = $ 4800 / day + Fuel (30 gal/hr)– 4 - 1200 CFM x 1150 psi Compressors / Boosters– 1 - Mist Pump (40 Bbls/hr; 28 gpm)– 2 Operators (12 hour tour) + 1 Supervisor

• Rig Modifications = $ 25,000 estimate– Blooey Line Fabrication – 9 5/8” Casing x 150 feet– Standpipe Fabrication / Modification

Page 21: air drilling

Section 4: Foam Drilling

What is Foam Drilling ?

Page 22: air drilling

What is Foam Drilling ?• Foam is created by combining water,

surfactants and air.

• Foam (stiff; like shaving cream) is circulated as the drilling fluid.

• Cuttings carrying capacity is 6-7 times grater than Air / Dust.

• Required annular velocity for optimum hole cleaning is significantly lower Air / Mist Drilling.– AV = 1000 – 1500 ft/ min

Page 23: air drilling

AirComp LLC A Division of Allis-Chalmers Energy AirComp LLC A Division of Allis-Chalmers Energy

Page 24: air drilling

Advantages of Foam Drilling

• Foam has excellent cuttings carrying capacity.

• Lower Air Volume requirements can mean less Air Compression equipment required than Dust or Mist drilling.

• During connections (break in circulation) the cuttings will remain suspended in the annulus.

• Holding Back Pressure on Annulus can help reduce water influx and/or maintain hole wall stability.

Page 25: air drilling

Limitations for Foam Drilling• Surface requirements (pits) for Foam

can become a problem.

• Large pits have to be built to contain the Foam and allow time for settling.

• Chemical cost to break down Foam can become expensive.

• Large influx of Fluids can break down Foam and thus reduce hole cleaning.

Page 26: air drilling

Section 5: Aerated Drilling Fluids

What is an Aerated Drilling Fluid ?

Page 27: air drilling

What is an Aerated Drilling Fluid ?

• Air or Nitrogen is added to the liquid phase of the drilling fluid.

• This will lower the effective mud weight.

– This can be accomplished by injecting air/nitrogen directly into the standpipe.

– This can also be achieved using parasite string or concentric casing strings.

Page 28: air drilling

AirComp LLC A Division of Allis-Chalmers Energy AirComp LLC A Division of Allis-Chalmers Energy

Page 29: air drilling

Standpipe Injection Option 1Standpipe Injection Option 1 Parasite StringParasite String

• Air or Nitrogen can be injected using a parasite string.

• Parasite string is attached to casing and cemented in place.

• Pieance Basin in CO

Page 30: air drilling

Standpipe Injection Option 2 Concentric Casing

• Air or Nitrogen can be injected by using a concentric casing string.

• Concentric casing is uncemented casing run to the insertion point.

Page 31: air drilling

Aerated Drilling Fluids Guideline for using Air or N2

• Air can be used in water based drilling fluids.– Corrosion inhibitors are highly recommended

• N2 must be used with oil based mud • N2 are highly recommended when Oil or

condensate influx is anticipated.• N2 must be used, when working with a

Closed Loop System (closed separator).

Page 32: air drilling

Advantages of Aerated Fluids• Can be utilized with most types of

drilling fluids.

• Allows for the adjustment of bottomhole pressures by changing the gas injection rates.

• Increases Penetration Rates by Lowering the annular pressure on the formation.

Page 33: air drilling

Section 6: How the Nitrogen Section 6: How the Nitrogen Membrane worksMembrane works

Page 34: air drilling

Nitrogen Membrane AdvantagesNitrogen Membrane Advantages

• Minimizes chance of Downhole Fire

• Membrane Units typically will reduce operating costs VS cryogenic (liquid) nitrogen.

• Not limited by liquid N2 transportation problems.

• US Patent owned by Weatherford

Page 35: air drilling

Other Options to prevent Downhole Fires

• Misting– Minimizes chances of spark ignition– prevents mud rings (pressure

ignition• Fire Stop

– Stops Air / Oxygen Flow which extinguishes Fire

Page 36: air drilling

Fire Float / Fire Stop

Page 37: air drilling

Improved Drilling Performancewith Air / Hammer Applications• Val Verde Basin (West Texas)• San Juan Basin (Farmington, NM)• Arkoma Basin (S E Oklahoma)• Barnett Shale (Fort Worth Basin)

AirComp LLC A Division of Allis-Chalmers Energy AirComp LLC A Division of Allis-Chalmers Energy

Page 38: air drilling

Improved Drilling Performance with Air / Hammer Applications

Air Hammers & BitsHammer Designs -- How does it work?Bit Designs -- Diamond Enhanced !!!

Drilling ApplicationsVal Verde Basin (West Texas)San Juan Basin (Farmington, NM)Pieance Basin (Southern Rockies)Arkoma Basin (Oklahoma / Arkansas)Appalachian Basin (WV, PA, NY, KY, VA) Fort Worth Basin (Barnett Shale)

Page 39: air drilling

Faster R.O.P. (Rate of Penetration)

Page 40: air drilling

Air Hammers & Bits

• Hammer Designs– Conventional Air Hammers– New Oilfield Air Hammer -- FAM-Us

• Hammer Bit Design– Diamond Enhanced Inserts– Bit Retainer Assembly

Page 41: air drilling

Foot Valve (Plastic)

Page 42: air drilling

Bit is off-bottomAir CirculatesBottoms Up

Bit is On-BottomAir fills bottom

Chamber which lifts piston upward

Bit is On-BottomAir now fills top chamber forcing piston downward

Piston strikes the top of the bit

With high energy300,000 lbs force

Conventional Air Hammer Operation

Page 43: air drilling

FAM-Us (Oilfield Designed) Air Hammers Foam Air Mist - Underbalanced Series

Developed in 2003; Commercialized in 2004

Fishable Length Top Sub with Float

API Reg. Pin Connection

Small-Nose Piston* Eliminates possible

Foot Valve Failures* Improves ROP

especially when Misting

Air Feed Tube With By-Pass Choke* Increases Hole Cleaning

Capability

Double SleeveRetainer System(Patent Pending)

Pin-Drive Spline* Eliminates Metal-to-Metal

Contact / Galling

New Bit Cutting Structures* Designed to Improve

Toughness & Footage

Page 44: air drilling

FAM-Us Air Hammers Improved Lower Chamber Exhausting

Conventional Air Hammer FAM-Us Air Hammer

Page 45: air drilling

FAM-Us Air Hammer Lower Compression Ratio

Yields Higher Impact Energy

FAM-Us Air Hammer Conventional Air Hammer

Page 46: air drilling

Diamond Enhanced Hammer Bits

• Footage per bit is increased by 3-4 fold over Carbide bits

• Medium strength formations can be drilled 80+ feet/hour for 100+ hours

• Hard formations require Higher Energy levels (i.e. High Pressure compressors) which require improved hammer and/or bit metallurgy, bit designs, and tougher diamond inserts.

• Double-Sleeve Retaining System (Patent Pending) allows diamond cutting structure to be fully utilized without fear of bit body fatigue.

Page 47: air drilling

8 ¾” C783G Hammer Bit Face Design

Gage Row12 – 15/16” DEI @40 Degree Angle

Adj. Gage Row6 – 13/16” DEI @20 Degree Angle

3 Exhaust PortsOptimizedFace Cleaning

Flat Bottom Row 3 – 13/16” DEInear Shank DiameterImproves Energy Dist.

Concave FaceStabilizes C/S and Improves DirectionalControl

Page 48: air drilling

• Manufacturer of polycrystalline diamond inserts used in oil and gas drilling

• Proprietary interface technology– Enhances diamond/carbide attachment strength– FEA improved designs favorably manage residual stresses

inherent to diamond inserts for longer life

• Application-specific percussion insert properties:– Highly impact resistant – Resistant to wear (long life)

• ISO 9001 Certified Quality Goals – Deliver defect free products– Ship directly to customer inventory

• Development capabilities– In-house testing necessary to develop impact resistant diamond

inserts. – U S Synthetic facilities allow testing of multiple designs quickly

to improve product performance for its customers

– Diamond Air has Exclusive Rights to inserts developed together– 15/16” Gage inserts

Diamond Insert Technology

FEA DESIGN CAPABILITY

2600 TON CUBIC PRESS

New Technology

Page 49: air drilling

Bit DesignWith Double-Sleeve Retainer System

Page 50: air drilling

Diamond Air / Marquis Bits Bit Retaining System (Patent Pending)

Protective Outer Sleeve(keeps inner sleeve together)

Large Solid BitRetaining Shoulder(No Thread unscrewing)

Positive Locking Split Sleeve(locks bit head to hammer)

Page 51: air drilling

Marquis Hammer Bit Nomenclature087 - C683G

087 -- Size of hammer bit diameter in inches (8.750”)

• C -- Face Profile (Shape)– C = Concave D = Drop Center– CV = Convex F = Flat Bottom

• 6 -- Second number designates the Dominate (Gage) Insert Size– 2 = 1/2” Semi Round Diamond Insert– 3 = 5/8” Semi Round Diamond Insert– 4 = 3/4” Semi-Round Diamond Insert– 5 = 13 /16” Semi Round Diamond Insert– 6 = 7/8” Semi round Diamond Insert– 7 = 15/16” Semi Round Diamond Insert– 8= 1” Semi Round Diamond Insert– 9 = ??” Semi Round Diamond Insert

• 8 -- Designates Hammer Size/Spline Type– 4 = Halco Dominator 400 Hammer w/ IR-340 spline– 6 = Halco Dominator 600 Hammer w/ IR-360 spline– 7 = Halco Dominator 750 Hammer w/ SD-8 spline– 8 = Halco Mach 88 Hammer w/ IR-380 spline– 9 = Halco Dominator 1000 Hammer w/ SD-10 spline– 2 = Halco Dominator 132 w/ IR112 spline– 15 = Mission SD-15 Hammer w/ SD-15 spline

• 3 -- Number of Air Holes in Bit Head• G -- Extra Gage Protection Inserts placed on the side of bit to prevent reaming.

Page 52: air drilling

Marquis Hammer Bits Standard Product List

Size . Type – Feature Bit Description Hammer Spline• 046.CV342 - G 4 ¾ Convex IR-340• 060.CV462 - G 6” Convex IR-360• 061.CV462 - G 6 1/8” Convex IR-360• 062.CV462 - G 6 ¼” Convex IR-360• 065.CV462 - G 6 ½” Convex IR-360• 067.CV463 - G 6 ¾” Convex IR-360• 078.C673 - G 7 7/8 Concave SD-8 • 078.C683 - G 7 7/8” Concave IR-380 • 084.C683 - G 8 ½” Concave IR-380• 087.C683 - G 8 ¾” Concave IR-380• 088.C683 - G 8 7/8” Concave IR-380• 098.C693 - G 9 7/8” Concave SD-10• 110.C693 - G 11” Concave SD-10 or IR-111• 122.C623 - G 12 ¼” Concave IR-112• 123.C623 - G 12 3/8” Concave IR-112• 147.C623 - G 14 ¾” Concave IR-112• 175.C6153 - G 17 ½” Concave SD-15 or IR-112

Page 53: air drilling

Superior Hammer Repair & Maintenance Quality

Hammer Parts are micrometer inspected and are actually heldto tighter tolerances than theManufacturer’s Specifications.

Hammer Bits go through additional QC processes including Black Light Inspection as well as being tracked by Hours as well as Footage and are then specifically chosen for each application.

Black Light Inspection of ALL hammer Parts minimizes the chance of Down-Hole failures.

Put in Black LightInspection Photo

Page 54: air drilling

Air Drilling / Hammer Supervision

• Similar to Directional Drillers• Train / Supervisor Drillers on how to operate Air

Hammers / Bits• Optimize Bit Life and ROP • Monitor Hole Cleaning

– Keeps rig/drillers out of trouble– Determine when / if Mist Drilling is required– Lower chance of Burn Offs

Page 55: air drilling

Best Drilling Practices for Air Hammer Drilling

• Air Volumes VS Annular Velocity– Minimum A.V. of 3000 feet/min. (Angel’s curves)

– Optimum A.V. of 5000+ feet/min. (Field experience)

– 30% additional air volume suggested for Misting and/or Directional applications.

• Hammer Configuration– Choke size should be determined to operate 350psi

differential across the hammer.– Hammer with heavy piston has been found to be faster in

misting and/or Hard-Rock applications– Hammer with lighter piston but higher frequency has

been found to be faster in medium to soft rock while dusting.

Page 56: air drilling

Best Drilling Practices for Air Hammer Drilling

• WOB & RPM– Weight-On-Bit should be minimized but must maintain

a “closed” hammer.– Typically 500 lbs or less per inch of hole diameter is

found to be sufficient. (i.e. 3-4k lbs WOB for 8 3/4” hole)

– RPM should depend upon formation, hole size and frequency of the hammer.

– RPM with high frequency hammer in soft formation would utilize higher RPM (i.e. 40-60 RPM for 8 3/4” hole in shale)

– RPM for hard abrasive formations in large (12 1/4” - 17 1/2”) hole sizes should be as low as possible (i.e. 10-20 RPM).

Page 57: air drilling

Operations Comparison8 3/4” Roller Cone VS DEI Hammer Bit

• Rotary: 70 - 100 rpm VS 20 - 50 rpm

• WOB: 30-40 klbs VS 2- 6 klbs

• ROP: 20-40 VS 60-100 ft/hr

• Deviation: 2 – 8+ deg. VS 0 – 2+ degrees

• Lost Cone Concerns VS Fixed Head Bit

• Gage Wear Concern VS Diamond Gage

Page 58: air drilling

Best Drilling Practices for Air Hammer Drilling

• Undergage Hole– Use of the G feature minimizes need for reaming– Dropping Hole size (8 7/8” – 8 ¾” - 8 5/8”) with

consecutive bits will eliminate reaming but is NOT necessary with “G” feature.

• BHA Configurations– Slick is typically suggested, even in most deviated

areas.– Pendulum is utilized to drop angle at a faster rate

than slick.– Packed BHA is utilized in most “Extreme” deviation

areas with the use of Tri-Collars but can cause torque problems if not run under-gage.

Page 59: air drilling

Directional Drilling Applications• No “True” Directional Control

– We can NOT “Steer” an Air Hammer– Surveying Options

• Single Shot used most of the time• Steering Tool ? Can be used but must pull out

wireline/electronics• EM-MWD ? Not on Dust; maybe on Mist

• BHA Options --– Build Assembly -- Stabilized Hammer – Maintain Assembly -- Packed BHA– Drop Assembly -- Slick or Pendulum BHA

• Applications --– CBM -- Packed BHA in Horizontal sections -- NEUS– Near Horizontal -- Packed BHA in Texas (Pan Handle)– Hammer below a Motor -- Can it be done?

Page 60: air drilling

Air Hammer Drilling -- Arkoma Basin What has be done?

• 17 1/2” Intermediate (TVD 60’ – 600’):– BP (Red Oak) -- Arkoma Basin– Year 2001 using Rig Air (2400 SCFM)

• Average ROP = 30 - 40 ft/hr for hammer; • 20 ft/hr on Mud with RC bits

– Year 2002 - 2004 using 3400 SCFM of Air Volume• Air Hammer with Diamond Hammer Bit drills to Casing Point• Average ROP = 75 ft/hr.• World Record = 104 ft/hr by H & P # 189 (Top Drive)

• Cost Savings 3/4 days = $ 10k – $ 15k

Page 61: air drilling

Air Hammer Drilling -- Arkoma Basin What has be done?

• 12 1/4” Intermediate (TVD 500’ – 3500’):– BP (Red Oak) -- Arkoma Basin– Year 2001 using Rig Air (2400 SCFM)

• Air / Hammer to top of Hartshorne Sandstone • then Roller Cone Bit on Mud • Average ROP = 50 - 60 ft/hr for hammer; 20 ft/hr on Mud

– Year 2002 - 2004 using 3300 SCFM of Air Volume• Air Hammer with Diamond Hammer Bit drills to TD (200 feet

into Atoka Shale)• 1 trip; ROP = 120 ft/hr by H & P # 158• World Record = 243 ft/hr by H & P # 189 (Top Drive)

• Improved Bits and Higher Air Pressures yield reduced # of trips and ROP increase.

• Cost Savings 3 - 4 days = $ 45k – $ 60k • Recent Test with 2700 SCFM of Air on Nabors # 981 drilled only 65 ft/hr

instead of 120+ ft/hr.

Page 62: air drilling

Red Oak Spiro 12-1/4" Air HammerPerformance History

50.4

37.4

49.840.3 37.4

56.7 52.144.7

58.5

91.8 88.695.5

117.8

145.9

123.1

143.5136.0

127.1

102.5107.9

97.8

130.3

161.4

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

CECIL 6

RIDER 8

GEORGE 9REED A6

GEORGE 10REED 7

IDA H

OLLIE

3MAXEY 6

NAN 1DYE 9

HESTON MARTIN

8FORD 8

LOWREY 5

GEORGE 12JO

E 1MUSIC

2BLA

IR 10

LEW

IS 9

HENRY HILL

9

MCFERRAN 9SIM

ON 1HILL

A 7

BLAIR

11

Well

Rat

e of

Pen

etra

tion

(ft/h

r)

0

1000

2000

3000

4000

5000

6000

Foot

age

(ft)

ROP Footage

Published World Record 97.9 ft/hr

Page 63: air drilling

Air Hammer Drilling -- Barnett Shale What has been Done ?

• 8 3/4 Production Hole (Vertical Section) – Objective: Drill Production Hole from 1500’ to KOP @

6500’– 2003 -- using Mud and Roller Cone Bits (some on motors)

• 3 - 4 trips for bits; ROP = 40 - 50 ft/hr average• 6 - 8 days depending upon deviation problems

– 2004 -- using Air Hammer with 2400 - 3000 SCFM of Air• 1 bit / 1 trip; 80% of jobs; 3 days; Avg. ROP = 85+ ft/hr• 2 bit / 2 trip; 20% of jobs; 4 days; Avg. ROP = 100+ ft/hr

– Increased Air Volumes and Pressures increases ROP but Bit life has been lowered.

– Performance Drilling = Cost Per Foot (Guarantee)– Cost Savings 2 - 4 days = $ 30k – $60k– Deviation issues are also being overcome

Page 64: air drilling

Air Hammer Drilling -- San Juan Basin What has been Done ?

• 6 1/4 Production Hole (Vertical Section) – Objective: Drill Production Hole from 3500’ to TD @ 8000’– 1998 -- using Air and Roller Cone Bits

• 2 RC Bits (5.1.7. + 5.4.7) ; • ROP = 40 - 50 ft/hr average• Hole problems due to time with open hole and fluid influx

– 2004 -- using Air Hammer with 1800 - 2200 SCFM of Air• 1 bit / 1 trip; 90+% of jobs; • 2 days; Avg. ROP = 110 ft/hr• Bit Rerunable for Mesa Verde well 80+% of the time

– Increased Air Volumes and Pressures increases ROP but Bit life can be sacrificed in Dakota sands.

– Cost Savings 2 - 3 days = $ 30k – $60k

Page 65: air drilling

2005 World Records Set by Diamond Air & Marquis Bits

Size Type Footage Hours ROP Customer / Well # County, State

20” C45 1060 31.25 33.9 Nuevo Energy Terrell, TX

18 ¼” C45 346 6.0 57.7 BP America / Golds. 7 Laflore, OK

17 ½” C624G 314 3.0 104.6 BP America / Hills # 7 Latimer, OK

14 ¾” C623G 4983 134.3 37.1 Nuevo Energy Terrell, TX

12 3/8” C623 3228 20.0 161.4 BP America / Blair # 10 Latimer, OK

12 ¼” H42 3709 25.5 145.5 BP America / Lowery 5-34 Leflore, OK

9 7/8” C693G 7380 97.0 76.1 Newfield Edwards, TX

8 7/8” C683G 7746 120.0 64.6 Southwestern Energy LeFlore, OK

8 ¾” C683G 12,480 167.0 74.7 Newfield Val Verde, TX

8 ¼” C683G 1020 8.75 116.5 BP America San Juan, NM

6 ¾” CV462 3968 28.25 140.5 Williams /Bobdad # 7A Rio Arriba, NM

6 ¼” CV462 5003 46.0 108.8 Pure Res. / Rincon # 133R Rio Arriba, NM

* Bold Face = Specific World Record Category

Page 66: air drilling

Air Hammer Drilling - Val Verde Basin What can be done?

• 17 ½” Surface Holes (TVD = 1300 feet):– Year 2001 – 2002

• Carbide hammer bit • ROP = 20 - 25 feet per hour• 2400 - 3000 CFM of Air/Mist.

– Year 2002 – 2004 • Footage Price using Diamond Hammer Bit used for 2 - 4 holes• ROP = 50 - 60 feet per hour while “Misting”• 3600+ SCFM air and 18 - 20 Bbls of water & 4-6 gallons of soap.

• Increased in Air Volume / Pressures help improve hole cleaning and thus ROP– 3600 – 4800 CFM @ 400 - 500 psi.– Minimal problems getting casing to bottom

• Cost Savings 1+ day = $15k - $20k

Page 67: air drilling

Air Hammer Drilling - Val Verde Basin What can been done?

• 12 1/4” Intermediate Hole (from 1300 feet -- 7000 feet):– Year 2001 – 2002

• 2 – 3 Hammer bits• ROP = 30 - 40 feet per hour• 3000 - 3600 CFM of Air Dust.

– Year 2002 – 2004 • Fully Diamond Hammer Bit could drill entire section with 1 bit ?• ROP = 50 - 60 feet per hour while “Dusting”• 3600 - 4800 CFM air will be required.

• Increased in Air Volume / Pressures help improve hole cleaning and thus ROP– 4800 CFM @ 500 - 600 psi.– Minimal problems getting casing to bottom

• Cost Savings 3 - 4 days = $50+k

Page 68: air drilling

Air Hammer Drilling - Val Verde Basin What can been done?

• 8 3/4” Production Hole (from 7000 feet – 13,500 feet):– 2 – 3 Fully Diamond Hammer bits– 3000 – 3600+ CFM of Air Dust.– ROP = 60 - 70 feet per hour– Increased in Air Volume / Pressures help improve hole cleaning and

thus ROP– Production Zones will be encountered

• Nitrogen is being considered ?• Fire Stops may be utilized ?• Misting will be last option ?

• Cost Savings 3 - 4 days = $50+k

Page 69: air drilling

Diamond Air Drilling Services Contact List

• Houston --Terry Keane -- PresidentJohn Meyers – VP of Percussion Drilling

– Office 281-951-4043– Cell 281-380-6466– E-Mail [email protected]– E-Mail [email protected]

• San Angelo, TX --Kevin Haby - Operations Manager

– Phone 915-651-3110– Fax 915-651-3011– E-Mail [email protected]

• Fort Stockton, TX --Clif Lemons (Regional Manager)

– Phone 432-336-3932– Cell 432-290-0743– E-Mail [email protected]

• Midland, TX --– Bill Butler -- VP of Sales– Office 432-552-7034– Cell 432-559-5262– E-Mail [email protected]

• Wilburton, OK --Pat Hannigan (District Manager)

– Phone 325-277-2314– E-Mail [email protected]

• Farmington, NM --Rick Coffman (Regional Manager)

– Office 505-564-4873; 505-325-8144– E-Mail [email protected]

• Grand Junction, CO --Burke Dailey -- Regional ManagerRon Bond -- Technical Services Manager

– Office 970-640-2776– E-Mail [email protected]– E-Mail [email protected]

• Healdsburg, CA --Robert Bryant -- Product Manager

– Cell 707-480-0800– E-Mail [email protected]