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LV03 StageFRAC* Operating Procedure and Treatment Design

Schlumberger - Well Production Services v1.4


Prepared for: Alexandru Dragomir Warwick Hughes Romania Black Sea Offshore Tomislav Bukovac - WPS DTE, Ploiesti, RO tbukovac@slb.com +40 727 277 199 July 7th , 2008

Location: Prepared by:

Date:

LV03 StageFRAC* - Operating Procedure

Introduction ........................................................................................................................................ 2 1. Scope of Work ............................................................................................................................. 3 2. Operational Strategy Overview ...................................................................................................... 4 3. Well Trajectory ............................................................................................................................ 5 4. StageFRAC* Completion Design .................................................................................................... 6 5. Completion - Proposed 3 Stage StageFRAC* System Installation and Operational Procedures ............. 7 5.1. Procedure: Well preparation .................................................................................................. 7 5.2. Procedure: StageFRAC* Liner component space out considerations.......................................... 8 5.3. Procedure: Opening the Hydraulic FracPort & Preparing for Frac Job ...................................... 12 6. Equipment Lay-out and Rig-up ..................................................................................................... 13 6.1. Wellhead Rig Up ................................................................................................................. 13 6.2. Supply Vessel Active KingRig-up .................................................................................... 14 6.3. Platform Jupiter Rig-up.................................................................................................. 15 7. Fracture Design and Proppant Placement .................................................................................... 16 8. Pre Job Preparation ................................................................................................................... 20 8.1. Pre-job HP Rig-up ............................................................................................................... 20 8.2. Fluid Preparation on Vessel ................................................................................................. 20 8.3. Vessel Hookup to the Rig ..................................................................................................... 20 8.4. Pressure Test ..................................................................................................................... 20 9. Pumping Procedure ................................................................................................................... 22 9.1. DataFRAC .......................................................................................................................... 22 9.2. Main Fracturing Treatments................................................................................................. 25 10. Flowback ............................................................................................................................... 30 11. On Site QA/QC Lab Testing Procedure for ClearFRAC XT Fluid..................................................... 31 11.1. Introduction - ClearFRAC XT Reference Rheology .................................................................. 31 11.2. On Site Fracturing Fluid QA/QC ............................................................................................. 33 12. Screen Out Contingencies ....................................................................................................... 36 12.1. Frac Screens Out (A) ........................................................................................................... 37 12.2. Wellbore Free of Proppant (B) .............................................................................................. 37 12.3. Frac Next Stage (C) ............................................................................................................. 38 12.4. Proppant in Wellbore (D) ..................................................................................................... 38 12.5. Push Top Ball to Seat (E) ..................................................................................................... 39 12.6. FracPort Shifts Open (F)....................................................................................................... 39 12.7. FracPort Open, Frac Well (G) ............................................................................................... 40 12.8. Drop Another Top Ball (H) .................................................................................................... 40 12.9. Coiled Tubing Wash (I) ........................................................................................................ 40 13. CT Cleanout Program .............................................................................................................. 42 13.1. Tubing Forces Results ......................................................................................................... 46 13.2. Procedure .......................................................................................................................... 50 13.3. Equipment .......................................................................................................................... 56 13.4. Prevention and Mitigation Measures on Location .................................................................. 57 14. Decision Tree ........................................................................................................................ 58 15. Appendix 1 - Lab Testing Report .............................................................................................. 59 16. Appendix 2 - Frac Design Stage 1 ............................................................................................. 59 17. Appendix 3 - Frac Design Stage 2 ............................................................................................. 59 18. Appendix 4 - Frac Design Stage 3 ............................................................................................. 59

LV03 StageFRAC* - Operating Procedure

Introduction
StageFRAC* is a trademarked name of Schlumberger for providing multi-staged propped fracturing stimulation using down hole completion hardware provided by Packers Plus Energy Services. Schlumberger is a minority owner of this company and has exclusive rights to market and supply services of this hardware outside of the United States and Canada. As of this writing, Packers Plus is supplying and running 90-100 systems per month. This popularity of the system is being driven by the un-paralleled production results that this system is able to deliver. The demand for this system is increasing each month. Schlumberger is now running systems in Africa, South America, Asia, Middle East and there is very strong interest and planned placement in other oil production areas where it has not been applied to date. This quantity of jobs has generated a significant amount of experience in running the systems into extreme conditions and executing stimulation treatments. The document that is provided here is a collaboration of information from Packers Plus Energy Services and Schlumberger.

Current StageFRAC* Condition Extremes to Date:


Well conditions 340o F Surface tested in oven at 320o F and 10,000 psi for 24 hours to qualify packer elements. Well depths to 15,000 feet. Longest Open Hole Lateral to date 7,200 feet Maximum proppant through the system is 3.5 million pounds Maximum pump rate of 140 bpm Maximum pumping time of continuous injection of 26 hours

LV03 StageFRAC* - Operating Procedure

1.

Scope of Work

The horizontal well LV03 will be drilled in order to establish production from not drained part of Lebada Vest reservoir. This part of the reservoir has permeability which ranges from 0.1 mD to 2 mD. The well will be drilled and open-hole interval will be completed with the 3 stage StageFRAC* completion. Upon the completion while still jack up platform Jupiter will be on LV03 position 3 consecutive fracturing treatments will be pumped from Active King supply vessel by land based frac equipment placed on the deck.

LV03 StageFRAC* - Operating Procedure

2.

Operational Strategy Overview


Jack Up platform Jupiter will stay on well position after finalizing StageFRAC* completion for frac operation support SLB frac equipment will be placed on Active King supply vessel equipped with dynamic positioning system Treatment will be pumped from equipment based on Active King, Coflex up to jack up deck then through 3 piping to the drilling floor and then down to the wellhead Fracturing fluid ClearFRAC XT will be prepared with sea water and pumped on the fly Proppant will be stored in 2 x 50 tone gravity silo placed on the deck and additionally in 2 sub deck cement p-silos For Stage #1 and Stage #2 and 80% of Stage#3 necessary proppant will be transferred before the job in gravity silo on the deck by built in boat compressors. All RC proppant (compatible with CF XT if will be possible to source, if not, J501 PropNET additive will be pumped during last stages) will be placed before the operation in one of gravity silos Sea water will be sucked from the sea to sub deck tanks (6x80m3) with the max rate of 4 m3/min by boat pumps. Sea water than will be transferred by 4 boat c-pumps to the 28 m3 header tank with the max transfer rate of 3.6 m3/min Header tank will ensure necessary hydrostatic pressure for phase 3 POD blender which will blend the fluid Additives will be pumped with 3 LAS units (6 LAS pumps in total). Max theoretical additive rate will be 195 l/min for J590 J590 will be stored in 50 m3 batch tank placed on boat deck The rest of the chemical additive (J589, L064, W054) will be placed on the boat deck in 1 m3 tote tanks and during the job will be transferred by Wilden pumps to 1 m3 volume LAS tanks J567 breaker will be run as dry additive on the pod during proppant stages and M275 biocide will be added in boat tanks during the treatment. Proppant concentration will be measured with 2 NRD densitometers Fluid will be pumped by 2 x SPF 343 pumps through 3 treating line on the boat deck, QD and coflex, 3 treating iron placed on Jupiter platform to the 10K wellhead Max treating pressure will be 8500 psi and max rate 3m3/min. Design strategy: Perform DataFRAC before first stage and perform first 2 stages with conservative approach, last stage design will be more aggressive with the respect to proximity of gas cap Pressure in annulus will be maintained by rig electric HP pump Two StageFRAC* balls will be launched from Jupiter platform deck through permanently based SLB pump CPS 361 Plan is to perform all 3 fracs in single treatment; however upon ongoing proppant rate transfer rates test we might wait between each stage for few hours to transfer proppant on the deck and transfer additives.

LV03 StageFRAC* - Operating Procedure

3.
=== Seq # === 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42

Well Trajectory
======== Measured depth (m) ======== 1136.9 1185.29 1204.89 1233.78 1262.95 1292.23 1320.67 1349.52 1377.82 1407.12 1435.72 1464.59 1493.55 1522.39 1551.51 1580.09 1609.27 1637.3 1666.6 1694.81 1723.88 1753.28 1781.85 1810.4 1839.3 1868.41 1897.04 1905.01 1950.16 1979.18 2008.47 2037.33 2066.19 2095.26 2124.43 2152.59 2181.9 2211.3 2240.07 2268.31 2297.92 2308.84 ====== Incl angle (deg) ====== 22.65 22.63 23.14 23.19 23.26 23.24 23.11 23.2 23.22 23.13 23.12 23.2 23.16 23.19 23.26 23.25 23.26 23.26 24.73 28.34 30.85 33.8 36.76 39.34 41.26 44.03 47.36 48.28 51.11 53.25 56.12 59.83 61.28 64.67 66.89 69.09 72.44 76.64 79.11 80.18 81.34 81.75 ======= Azimuth angle (deg) ======= 46.05 44.78 44.43 44.74 44.74 42.34 39.82 39.85 39.31 39.33 39.3 39.44 41.27 42.77 43.95 43.97 44.28 43.48 42.62 39.13 36.64 34.97 35.64 36.64 36.4 36.56 36.02 35.75 37.35 36.53 36.49 36.77 35.01 33.15 32.95 32.36 32.31 32.76 33 33.61 33.59 33.28 ====== Course length (m) ====== 0 48.39 19.6 28.89 29.17 29.28 28.44 28.85 28.3 29.3 28.6 28.87 28.96 28.84 29.12 28.58 29.18 28.03 29.3 28.21 29.07 29.4 28.57 28.55 28.9 29.11 28.63 7.97 45.15 29.02 29.29 28.86 28.86 29.07 29.17 28.16 29.31 29.4 28.77 28.24 29.61 10.92 ======== TVD depth (m) ======== 1100.46 1145.12 1163.18 1189.74 1216.55 1243.45 1269.59 1296.12 1322.13 1349.07 1375.37 1401.91 1428.53 1455.05 1481.81 1508.06 1534.87 1560.63 1587.39 1612.63 1637.91 1662.75 1686.07 1708.55 1730.59 1752 1771.99 1777.34 1806.55 1824.34 1841.27 1856.57 1870.76 1883.97 1895.93 1906.49 1916.14 1923.98 1930.02 1935.1 1939.85 1941.46 ======== Vertical section (m) ======== 203.8 222.27 229.85 241.14 252.56 264.06 275.24 286.58 297.73 309.25 320.48 331.84 343.22 354.55 365.98 377.2 388.66 399.67 411.54 424.12 438.47 454.18 470.66 488.24 506.93 526.64 547.12 553.02 587.43 610.35 634.24 658.7 683.81 709.64 736.14 762.13 789.66 817.86 845.87 873.56 902.69 913.46 ================ =============== ===== Displ Displ Total +N/S+E/Wdispl (m) (m) (m) ================ =============== ===== 153.02 135.16 204.16 166.09 148.43 222.75 171.52 153.78 230.36 179.62 161.76 241.72 187.79 169.85 253.21 196.16 204.6 213.31 221.9 230.83 239.52 248.29 256.98 265.41 273.76 281.88 290.15 298.13 306.84 316.38 327.71 340.47 353.93 368.13 383.16 399.01 415.52 420.31 447.96 466.28 485.49 505.12 525.48 546.93 569.23 591.21 614.59 638.47 662.09 685.31 709.65 718.66 177.81 185.17 192.43 199.54 206.85 213.96 221.17 228.55 236.14 244.03 251.86 259.88 267.55 275.68 283.91 292.71 301.9 311.44 321.82 332.94 344.67 356.79 360.25 380.76 394.53 408.75 423.35 438.08 452.58 467.09 481.17 495.97 511.21 526.48 541.73 557.91 563.86 264.76 275.95 287.28 298.43 309.94 321.17 332.51 343.91 355.25 366.73 378.01 389.52 400.58 412.49 425.09 439.4 455.04 471.44 488.97 507.6 527.26 547.69 553.57 587.92 610.8 634.65 659.07 684.14 709.9 736.34 762.27 789.75 817.91 845.9 873.57 902.7 913.46 ===== At Azim (deg) ===== 41.45 41.78 41.88 42.01 42.13 42.19 42.15 42.05 41.96 41.86 41.77 41.69 41.65 41.66 41.71 41.78 41.85 41.91 41.94 41.9 41.77 41.56 41.35 41.16 40.99 40.82 40.65 40.6 40.36 40.24 40.1 39.97 39.82 39.61 39.37 39.14 38.9 38.68 38.49 38.33 38.17 38.12 ====== DLS (deg/ 10m) ====== 0 0.1 0.27 0.05 0.02 0.32 0.35 0.03 0.08 0.03 0.01 0.03 0.25 0.2 0.16 0 0.04 0.11 0.52 1.39 0.96 1.05 1.04 0.93 0.67 0.95 1.17 1.18 0.68 0.77 0.98 1.29 0.73 1.3 0.76 0.81 1.14 1.44 0.86 0.43

Srvy tool type TIP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP PUP IMP IMP IMP IMP IMP IMP IMP IMP IMP IMP IMP IMP

Tool Corr (deg) None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None

0.39 IMP 0.47 IMP

LV03 StageFRAC* - Operating Procedure

4.
Depth

StageFRAC* Completion Design


Drawing Description OD (in) ID(in) Length (m)

Perma-Plus Recommend Set less than Packer Set 40 Degree Inclination 1858.1m MD 1790m TVD 3 1/2" PH-6 Hyd.TRSSSV 10K Safety Valve c/w 2.562" OTIS 'R' Profile ID c/w 1/4" Control Line 3 1/2" PH-6 Hydril 12.95ppf L-80 Hydril Tubing Joints as Required 3 1/2 PH-6 x 2.562" OTIS 'R' Selective Profile ID Nipple Handling Pup - 3-1/2" PH-6 Hydril 12.95ppf BxP x 6' Long L-80 Pup Joint 3 1/2" PH-6 Hydril Box Up x 4.00" OD x 10' Long One Piece 'HSN' Bonded Seal Ass. (P-110) 7" (23-32ppf) Type 'CB' Perma-Plus Packer c/w 4.00" Seal Bore ID x 10' Long (P-110) 7" Perma-Plus Seal Bore to 4 1/2" LTC 15.10ppf L-80 Tailpipe X-Over Sub Casing 7" 29 #/ft N-80 (Drift ID=6.059") Liner - 4-1/2" LTC 15.10ppf N-80 (Drift ID=3.701") 5.875" 5.875" 5.938" 2.562" R Profile 2.75" ID 2.562" R Profile 2.75" 2.75" 4.00" 3.826"

3.04m .384m

21 JTS 7" Shoe @ MD=1924m TVD=1829m 2132 m

257.82m

Confidential Information - Not to be disclosed outside PETROM


BHP- 3200PSI & BHT-86C
Packers Plus 7" x 4-1/2" Special Clearance RockSeal II Dual Element open hole packer system with 6ft & 3ft 15.10ppf LTC pup joints on top and bottom (L-80) Rock Seal Centralizer - Special Clearance Liner 4 1/2" LTC 15.10ppf N-80 Packers Plus 4-1/2" LTC Re-Closable S.C. FracPort Tool c/w 2.25" Seat ID activated with 2.50" OD opening ball and 2000psi Open Pressure w/ 6ft & 3 ft 15.10ppf LTC pup joints on top and bottom (L-80) (Note-Alternative Drillable Seat/Non-Closable Type Frac Port Tool Available c/w Max 3.70" Drill Out ID) Liner 4 1/2" LTC 15.10ppf N-80 Packers Plus 7" x 4-1/2" Special Clearance RockSeal II Dual Element open hole packer system with 6ft & 3ft 15.10ppf LTC pup joints on top and bottom (L-80) Rock Seal Centralizer- Special Clearance 5.675" 3.750" 4.69m

5.750" 23.51m 5.675" 2.25" Seat ID 3.72m

2 JTS STAGE 3 2151.52m 57 bbl 1 JT 2167.07m

11.83m 5.675" 3.750" 4.69m

5.750" 23.45m 5.675" 2.00" Seat ID 3.72m

2 JTS STAGE 2 2195.21m 59 bbl 1 JT 2210.64m

Liner 4 1/2" LTC 15.10ppf N-80 Packers Plus 4-1/2" LTC Re-Closable S.C. FracPort Tool c/w 2.00" Seat ID activated with 2.25" OD opening ball and 2000psi Open Pressure w/ 6ft & 3 ft 15.10ppf LTC pup joints on top and bottom (L-80) (Note-Alternative Drillable Seat/Non-Closable Type Frac Port Tool Available c/w Max 3.70" Drill Out ID) Liner 4 1/2" LTC 15.10ppf N-80 Packers Plus 7" x 4-1/2" Special Clearance RockSeal II Dual Element open hole packer system with 6ft & 3ft 15.10ppf LTC pup joints on top and bottom (L-80) 5.675" 3.750"

11.71m 4.69m

Rock Seal Centralizer- Special Clearance 1 JT Liner 4 1/2" LTC 15.10ppf N-80

5.750" 11.62m

2226.95m

Packers Plus 7" x 4-1/2" Special Clearance RockSeal IIS open hole Rock Anchor System with 6ft & 3ft 15.10ppf LTC pup joints on top and bottom (L-80)

5.630"

2.900" Min. I.D.

4.48m

Rock Seal Centralizer- Special Clearance 1 JT Liner 4 1/2" LTC 15.10ppf N-80 Rock Seal Centralizer- Special Clearance STAGE 1 2243.04 61 bbl 4-1/2" LTC Special Clearance Hyd. Activated DEH FracPORT Tool c/w with 6 ft and 3 ft LTC 15.10ppf pup joints on top and bottom (L-80) Non-Closable Rock Seal Centralizer- Special Clearance

5.750" 11.30m 5.750" 5.630" 5.750" 4.74m

1 JT 62 bbl

Liner 4 1/2" LTC 15.10ppf N-80 4 1/2" Toe Circulating Sub with 1.00" seat for 1.25" ceramic closing ball Rock Seal Centralizer- Special Clearance 4-1/2" LTC Single Valve Float Collar 5.500" 5.750" 5.500" NA

11.68m 5.93m

4-1/2" LTC Single Valve Float Collar 2263.20m Well Total Depth 2319m MD 1943mTVD 4 1/2" LTC Packers Plus Guide Shoe

5.500" 5.500"

6" Open Hole (Total Open Hole Length = 395m)

LV03 StageFRAC* - Operating Procedure

5.

Completion - Proposed 3 Stage StageFRAC* System Installation and


Operational Procedures

Well Data: 9 5/8 69.95kg/m (47ppf) Intermediate Casing 7 43.17kg/m (29ppf) Production Casing 4 22.47kg/m (15.10ppf) StageFRAC* Open Hole Liner 6 Open Hole

5.1.

Procedure: Well preparation

RIH w/ Casing Clean Out Assembly a. Pick up 3 IF Drill Pipe c/w 6 Drill Bit (jets inserts removed) & 7 Casing Scraper to Clean out casing string. b. RIH to just above Casing Shoe & Circulate at a minimum of (4-5BBL/Min) to ensure all solids & scale is removed from the casing (Hi-Vis Sweeps can be beneficial to assist in carrying solids & scale from the well bore if available) c. POOH with casing clean up assembly RIH w/ Open Hole Clean Out & Prep Assembly a. 6 drill bit (jet inserts removed) b. X-Over from Drill Bit to 3 IF c. 2 Joints of 3 1/2 IF Drill Pipe d. Packers Plus 5.875 OD open hole RockSEAL Spiral Clean-Out Reamer e. 2 Joints 3 1/2 IF Drill Pipe (Heavy Weight Optional for stiff assembly) f. Packers Plus 5.875 OD open hole RockSEAL Spiral Clean-Out Reamer g. 3 1/2 IF Drill Pipe as required h. Optional- 3 Heavy Weight Drill Pipe & X-Overs if Required (Vertical Section if Required for additional weight to push BHA to TD) i. 3 1/2 IF Drill Pipe as Required to Surface j. RIH with Bit & Reamers to Perma-Plus Liner Setting Depth and Establish Up & Down Weights as well as Rotating String weight plus torque required to turn the string slowly and Record for future reference. k. Continue to RIH with Bit & Reamers and enter open hole section and Slide Only to Bottom thru the Open Hole Section (No Rotation) l. If Bit and Reamers hang up or hit a tight spot then the Reamer should be rotated thru the tight spot until no drag is noticed going up or down with the string m. Continue to RIH with Bit & Reamer to +or- 30m past the end of the StageFRAC* Liner Setting Depth MD if room allows for it n. Recommend to circulate (4-5BBL/Min) the well bore to clean any cuttings or solids in the open hole and to push any solids or cuttings 30m +or- deeper in the well bore than the end of the StageFRAC* Liner TD (Hi-Vis + Low Vis Sweep Combinations can be beneficial to assist in carrying solids & scale from the well bore if available) o. Pull Bit back to StageFRAC* Liner TD and again establish up & down weights for future reference

LV03 StageFRAC* - Operating Procedure

p.

q.

r. s.

Pull back Bit & Reamers just into casing and recommend to circulate (4-5BBL/Min) to clean any cuttings or solids in the build section (Hi-Vis + Low Vis Sweep Combinations can be beneficial to assist in carrying solids & scale from the well bore if available) At Perma-Plus Packer Setting Depth establish both up & down string weights plus rotating string weight and torque required to slowly turn the string. This is baseline information required for future reference when time to release Hydraulic Setting Tool from Perma-Plus Liner Hanger Packer. POOH and Stand back the 3 Drill Pipe and recover Bit & Reamer Gauge & Caliper Bit & Reamer to check for wear. Ensure recovered Reamer ODs are still larger than RockSEAL Centralizer & RockSEAL Packer OD to be run into well.

5.2.
1.

Procedure: StageFRAC* Liner component space out considerations

Compare all of the positions of the RockSeal packers to the actual drilled directional survey to ensure that at no time 2 or more RockSeals are not entering or passing thru any of the more severe dog legs at the same time during run into TD. Adjust Packer space out as required to ensure this does not happen. Check open hole caliper logs to ensure good packer seats and adjust space out of Packers as required. Lower RockSEAL IIS Packer Seat critical to ensure set in good gauge hole and competent hard rock section to provide good anchoring points for the StageFRAC* Liner at the bottom. Check StageFRAC* Liner Maximum Hook Load Weights and Drag from Torque & Drag Modeling to ensure Hydraulic Setting Tool will be in safe Operating Range

2. 3. 4.

Procedure: Running and Setting StageFRAC* Assembly 5. Recommend consideration that each joint of 4 casing/liner below the Perma-Plus Liner Hanger Packer that will be in the open hole could have a SpiraGlide (Weatherford) Centralizer (or equivalent) secured to the middle of each joint. This helps in reducing Liner Friction while RIH as well aids in preventing getting differentially stuck while running in hole with the liner. 6. 7. 8. All Frac Port Tool Seats should be Drift Checked on Location with both the ball size required to pass thru each of the Frac Port Tool seats plus the actual ball size required to land out on its own specific seat. Hydraulic Setting Tool should be Drift Checked on Location with both the ball size required for the Toe Circulating Sub to pass thru the seat plus the ball size required to land out on its own specific seat. NOTE- CARE MUST BE TAKEN IN PICKING UP AND HANDLING ALL STAGEFRAC* EQUIPMENT PLUS CARE IN LOWERING DOWN & CENTERING ALL EQUIPMENT GOING THRU BOP STACK ESPECIALLY ALL PACKERS. Pick up and RIH with StageFRAC* Sub Assemblies & Liner as follows: follows: a. b. c. d. 4 1/2 Guide Shoe, Float Equipment and Toe Circulating Sub Assembly with 1.00 seat for a 1.25 ceramic closing ball set to close with 1,100psi +or- closing shear pressure. 4 15.10ppf LTC J-55 liner as required (minimum 1-2 joints) 4 1/2 Special Specia l Clearance DualDual-Hydraulic FracPort Tool (Non(Non- Closable) Sub Assembly 4000psi +or+or- (Stage 1) 4 liner as required (minimum 1-2 joints) (Rig up and break circulation 10 BBLS +or- thru floats to ensure opening properly at 1BBL/Min)

9.

LV03 StageFRAC* - Operating Procedure

e. f. g. h. i. j. k. l. m. n. o. p. q.

7 x 4 1/2 Special Clearance Clear ance RockSeal IIS Open Hole Anchor/Packer Sub Assembly (2268PSI +or- Initiating Setting Pressure) 4 15.10ppf LTC J-55 liner as required (minimum 2 joints) 7 x 4 1/2 Special Clearance RockSeal II Open Hole Packer Sub Assembly (2268PSI +orInitiating Setting Pressure) 4 15.10ppf LTC J-55 liner as required 4 1/2 Special Clearance FracPort Tool (Re(Re- Closable) Sub Assembly with 2 ball seat for 2.25 high pressure ball shear pinned to 1884 psi (Stage 2) 4 15.10ppf LTC J-55 liner as required 7 x 4 1/2 Special; Clearance RockSeal II Open Hole Packer Sub Assembly (2268PSI +orInitiating Setting Pressure) 4 15.10ppf LTC J-55 liner as required 4 1/2 Special Clearance FracPort Tool (Re(Re-Closable) Sub Assembly with 2.25seat for 2.50 high pressure ball shear pinned to 1884 psi (Stage 3) 4 15.10ppf LTC J-55 liner as required 7 x 4 1/2 Special Clearance RockSeal II Open Hole Packer Sub Assembly (2268PSI +orInitiating Setting Pressure) 4 15.10ppf LTC J-55 liner as required 7 x 4.00 x 10-? Long (Seal Bore Length TBD) Seal Bore Type Perma-Plus Liner Hanger Packer Assembly (Note- Liner Hanger Packer should be spaced out to set in the casing and in a hole angle of 30 Degrees or less and in a section where doglegs are nor irregular) 3 IF Hydraulic Setting Tool f/ Perma-Plus Liner Hanger Packer (1587PSI +or- Initiating Pressure) Rig up and break circulation 10 BBLS +or- slowly thru floats to ensure opening properly at 1BBL/Min Pick up & RIH w/ 3 IF Drill Pipe to Surface

r. s. t.

10. Use a fill hose (Not Tied in as a Close Loop) only to fill Liner with Clean Fluid or Clean Mud (Min Solids) every 15-20 Joints. Ensure the clean Fluid or Clean Mud that is used to fill the Liner & DP is the same weight of fluid or slightly less than the fluid or mud weight that is in the Annulus (CANNOT BE HEAVIER FLUID) 11. Do not rotate the assembly while RIH. 12. The Pipe Running Speed of the StageFRAC* Liner should be set at maximum 40 Sec/30 Joint in the Vertical Section and 50 Sec/30 Joint in the Build Section of the Casing. 13. RIH the end of the StageFRAC* Liner Assembly to just above the 7 Casing Shoe. 14. Establish up & down weights prior to entering Open Hole 15. Break circulation only by starting slow at 1 bbl/min and pump about 10 BBLS +or- do not exceed either 2bbls/min or 300psi DP differential which ever comes first. 16. Run assembly to setting depth not exceeding 60 sec/joint in the Open Hole Section (or specified running speed Packers Plus service technician)

LV03 StageFRAC* - Operating Procedure

17. Do not circulate again until at TD If difficulties are encountered while running StageFRAC* Assembly into the horizontal open hole operations must stop & consider all possibilities to why the BHA is stick. Recommend to discuss the situation first with PP StageFRAC* Tech Service Support Personnel prior to attempting anything on location. 18. Once StageFRAC* Liner is at desired TD establish up & down weights and then get the Liner positioned on desired depth and the 4 Frac String sitting in Neutral Position. Space out the Frac String to install Tubing Hanger plus Handling Pup to position the liner as required as well as adjustment for compression required on string to do the Frac. (20,000lbs +or- Compression TBD Verify on Packers Plus Force Analysis Program) 19. Establish & Break Circulation starting slow at 1 BPM and do not exceed a recommended safe rate (not to exceed 2 bpm or 300psi differential which ever comes first) 20. Optional - Circulate open hole section over to clean fluid if required prior to setting Packers

Setting and testing the PermaPerma-Plus Packer 21. Drop 1.25 Toe Circulation shut off ball provided by Packers Plus 22. Circulate setting ball onto seat with clean KCL fluid not to exceed 2bpm or 300psi DP differential which ever comes first 23. When the ball is on seat pressure up to 1,200psi (Toe Circulation Sub is set to shear closed at 1100 psi). 24. Pressure up slowly to 1750psi and hold for 10 Minutes to stroke Hydraulic Setting Tool and start setting Perma-Plus Liner Hanger Packer 25. Maintain 1750 PSI on DP & pull 20,000lbs Tension into Perma-Plus & hold 5 Min. Pull 30,000lbs Tension and hold for 5 Min. Pull 40,000lbs Tension and hold 10 Min. 26. Maintain 1750 PSI on DP and slack-off 30,000lbs compression on Perma-Plus Packer. Pull to neutral and bleed off DP pressure to Zero. 27. Take Final Pull of 50,000lbs Tension into Packer & Hold 5 Min. Lower DP String into 30,000lbs Compression & Hold 5 Min. 28. Pick up DP String to neutral and Pressure Test Annulus to 3000PSI

Setting the RockSEAL II & IIS Packers 29. Pressure up DP slowly to 2400psi to stroke the (4) RockSEAL II & IIS Packers. (2268PSI +or- Initiating Setting Pressure) Hold 5Minutes 30. Stage Pressure up to 2700 psi to continue setting Packers. Hold 5 Minutes 31. Stage Final Pressure up to 3000 PSI to finalize packer setting. Hold 15 Minutes

Releasing the Running Tool 32. Bleed Off DP Pressure & place Drill pipe in 2-3000lbs tension over Rotating String Weight previously established on Bit & Reamer Clean out Trip. Note- Reference Up & Down Weights plus Rotating String Weights & Torque Required to turn the drill string established on clean out trip with Reamer Assembly at Perma-Plus Packer Setting Depth. 33. Rotate 10-12 to the right while maintaining the tension and then slowly pull away from Packer 10-12 minimal with the Hyd. Setting Tool

10

LV03 StageFRAC* - Operating Procedure

34. Stop & Circulate rest of well bore over to desired fluid to be left in annulus and to displace Mud System out of hole if applicable 35. POOH and lay out Drill Pipe & Hydraulic Setting Tool and Inspect

Procedure: Running and Spacing out TieTie -Back Seal Assembly 1. 2. 3. 4. 5. 6. Pick up the PP 3 EUE x 10 Long (Seal Assembly Length TBD) x 4.00 OD Tie Back Seal Assembly Sub Assembly Pick up the PP 2.562 OTIS R Nipple Sub Assembly RIH with the 3 PH-6 12.95ppf Hydril Frac/Production Tubing string. Stop 3 joints above the Perma-Plus Packer. Establish up & down string weights plus torque required to turn the string. RIH slowly to tag the Perma-Plus Packer while watching for any Seal Drag entering the 10 Long Packer Seal Bore.(Correlate DP tally with Tubing tally) Pick up 1m and Pressure Test down the annulus to double check if the Seals are actually Stung in to the Perma-Plus or just hung up on top of the Perma-Plus Packer. If 3000 PSI Annular Pressure Test is successful bleed off annulus pressure to zero. Slack-off 20,000 lbs of compression (TBD) string weight on the Perma-Plus Packer. Mark the pipe to allow for space out of the Frac String. Pull the Seal Assembly back out as required to space out the tubing string for desired compression plus adding in the SLB SSSV Assembly with (a) pup joint(s) to be able to land out the string with the tubing hanger. Install Schlumberger Tubing Retrievable Sub Surface Safety Valve Sub Assembly c/w 2CAMCO 2.562'' D.S. Profile''Selective Profile ID

7. 8.

9.

10. Install the Hydraulic Control Line to SSSV and Function SSSV & Pressure Test Line & Fittings to Safe Working Test Pressures 11. Band Control Line as Required just above SSSV on Upper Flow Coupling 12. RIH with Tubing Joints and Install Control Line Protectors over each Hydril Connection. 13. Install Tubing Hanger & Terminate or FeedThru Hydraulic Control Line into Hanger as required. 14. Pressure Test Hydraulic Control Line after Termination 15. Install Hydraulic Jumper Line to the top of the Tubing Hanger to all for the SSSV to be kept in the open position when stinging into the Perma-Plus Packer & Landing out the Tubing Hanger in the Bowl. Pressure Test Jumper Line. 16. Lower the tubing slowly while maintaining Pressure on the Hyd. Jumper Line to sting the 10 Long Seal Assembly back into the Perma-Plus Packer 17. Ensure RISER & BOP Stack is drained to ensure Hanger is Centralized while lower down to land out in the tubing head flange. 18. Ensure Casing Valve is open to allow fluid to displace out so that hanger can fully & properly bottom out. 19. The weight should show 20,000 lbs compression as the Tubing Hanger lands out in the Tubing Head Spool.

11

LV03 StageFRAC* - Operating Procedure

20. Install Tubing Hanger Lag Screws. Recommend remove 1 Lag Screw to do visual to ensure hanger positioned properly prior to install lag screws to lock in the hanger. 21. Pressure Test the annulus to 3,000psi. Hold for 15minutes. 22. Bleed off annulus pressure. 23. Pressure up the tubing to 3000 psi to verify seal integrity from inside. Hold for 15 minutes. Bleed Off Tubing Pressure 24. Install Back Pressure Valve as Required. 25. Nipple down BOP Stack & Nipple up Frac/Well Head as required. 26. Ensure Frac Head/Tree Saver is pre-drifted with largest Frac Ball to be pumped to ensure will pass thru. 27. Pressure Test Frac Head. 28. Remove Back Pressure Valve 29. Mobilize SLB for StageFRAC* Notes: If the assembly becomes stuck while RIH STOP Operations. The PackersPlus Service Specialist on location will provide safe tension and compression limits for every 1000 feet of assembly in the open hole. If it is determined that the assembly is differentially stuck, options for releasing the assembly should be explored. Excessive pulling and compressing the assembly if differentially stuck could result in fatiguing components and should be avoided. Reducing Mud or Fluid Weights in the well if determined to be differentially stuck without constantly working the string will help maintain Liner & Running String Integrity until the formation lets go of the liner once fluid weights reduced to balance formation pressure.

5.3.

Procedure: Opening the Hydraulic FracPort & Preparing for Frac Job

30. Install Tree Saver if Required & Nipple up both Frac Lines & Flow Line thru Testers c/w Ball Catcher in line prior to testers equipment. (Drift Tree Saver with largest ball plus ball launch lines & return test line plumbing to ball catcher to ensure largest Frac Ball will pass thru prior to rigging up on well head) 31. Apply +/- 2000 psi on the annulus 32. After the surface frac equipment has been installed and tested, apply +/- 2000 psi on the tubing 33. Apply 3000 psi on the tubing 34. Increase tubing pressure to +/- 4000 psi to open the Hydraulic FracPort 35. If able establish an injection rate and injection pressure 36. Ready to commence 1st stage frac job 37. Ensure adequate back pressure is maintained on the annulus for the entire Frac Job. Note- Verify required amount of pressure to be held with Packers Plus Force Analysis Program. 38. Proceed with Frac Job as per Schlumberger Frac Engineer

12

LV03 StageFRAC* - Operating Procedure

6.

Equipment LayLay- out and RigRig-up


6.1. Wellhead Rig Up

General Recommendations Be very aware of the ID clearance of the entire system to accept the StageFRAC* balls This may be a very long lead item and specialty import if new to the area Tubing and BOP configuration must be carefully analyzed before being used o System is less robust to high pressures or sudden increases of screen out pressure Rabbit all Frac Iron to be used for placement of the frac balls o Max ball size for 3 1502 iron is 2.5 Rabbit the Frac Tree with the largest ball Rabbit any crossovers that have been added to the system

Wellhead RigRig -Up on Jupiter Platform

13

LV03 StageFRAC* - Operating Procedure

6.2.

KingRigSupply Vessel Active KingRig -up

Supply Vessel - Active King Rig Up

14

LV03 StageFRAC* - Operating Procedure

6.3.

RigPlatform Jupiter Rig -up

Jupiter Platform Rig Up

Jupiter Platform Rig Up - Detail

15

LV03 StageFRAC* - Operating Procedure

7.

Fracture Design and Proppant Placement

Well Lebada Vest 03 is the first Petrom S.A. horizontal well where multiple hydraulic fracturing treatments will be performed offshore Black Sea. Previously performed fracturing treatments on Lebada Vest field (8) were performed in single stage by using 35# or 40 #/1000 gal Guar or HPG polymer based fracturing fluid. The design of those jobs was based on 20-30 % total clean fluid volume as PAD stage, 3.0 m3/min pump rate, up to 100 tones of 20/40 or 16/20 Carbo Lite proppant with resin coated proppant run in final proppant stage. Total fluid pumped per job was 200-250 m3 and the maximum slurry proppant concentration was up to 1200 KgPA. Maximum wellhead treating pressure was bellow 400 bar. The fracturing gradient in the offset well in the same zone of interest was 0.68 0.75 psi/ft and the reservoir pressure at TVD is expected to have value of 210 to 220 bar, bottom hole static temperature is ~90 degC. The zone of interest is 50 to 60% dirty limestone which is laminated with the streaks of different permeability ranging from 0.1 to 2.0 mD, mostly in the range around 0.8 mD and porosity ranges between 15 to 22 %. No screen out occurred during the previous fracturing treatments and no significant net pressure after the job was recorded. It was discovered that post job production per well in early treatments that is strongly related to mass and size of proppant pumped and it was ranging from 30 tones oil per day in early treatments up to 70 tones of oil per day in most recent well treated which had reservoir pressure value very close to virgin reservoir pressure. Petrom geologists indicated that there is no water zone in proximity of targeted zone and the gas/oil contact (gas cap) is expected on 1840m TVDSS. The designs presented as attachment are based on conservative job design approach where PAD% is ranging from 41% to 48% and maximum proppant concentration planned is up 5 or 6 PPA respectively in order to minimize risk of premature screenout and capital retained fracture conductivity gains enabled by ClearFRAC XT non damaging fluid chemistry. The desired pump rate will be up to 3.0 m3/min and the total proppant mass per stage will range from 60 tones in early conservative stages up to ~80 tones of 20/40 Carbo Lite in more aggressive final treatment.

16

LV03 StageFRAC* - Operating Procedure

LV 03 Well - Geological Section

Lebada West - Seismic Map

Approximate LV03 window

Lebada West Structural Map

Offset Well - LV 81 Log with respect to LV03

Note* Job designs for each stage are splayed in separate attachments.

17

LV03 StageFRAC* - Operating Procedure

LV03 Composite Log

18

LV03 StageFRAC* - Operating Procedure

Conductive fractures Maximum density

Micro-faults Maximum density

Structural cross section displayed with a NENE- SW orientation. Blue boxes represent conductive fractures corridors, pink boxes faults corridors.

19

LV03 StageFRAC* - Operating Procedure

8.

Pre Job Preparation Prep aration


8.1. PreRigPre -job HP Rig -up

Prior to the vessel arriving on location at the jack-up rig GSP Jupiter, ensure sufficient 2 and 3 treating iron. and a rig-up crew of 4 personnel have been dispatched to the Jupiter to cover the initial rig-up operation of the 3 frac line from the vessel Coflex hanger area ( port side ) up to the rig floor, this line can be pressure tested to 690 bar with the SLB cement unit before the vessel arrives on location. Install a pressure transducer in the main treating line and one in the annulus, an annular PRV should also be installed.

8.2.

Fluid Preparation on Vessel

1. 2.

3.

Ensure sufficient seawater volume ( non treated ) is added to the POD Blender header tank for pre-job flushing lines, priming pumps and pressure testing. Pre-load the 6 x 81m3 vessel liquid mud tanks with (filtered) seawater treated with M275 Biocide, Have all liquid additives (ClearFRAC Surfactant J590, Rheology Modifier J589, Clay Stabilizer L064 and Non Emulsifying Agent W054) readily prepared in the LAS tanks. Set up the LAS pumps for the following liquid additives, J590, J589, L064 & W54, to be injected into the relative injection points in the POD suction system, J567 (Encapsulated Breaker) will be added via the dry additive screw feeder on the POD blender only during slurry stages. Perform LAS bucket tests and base fluid QA/QA tests with samples from the liquid additive tanks.

8.3.

Vessel Hookup to the Rig

1. 2. 3.

Confirm with the vessel bridge that the captain is satisfied with vessel dynamic positioning prior to deploying the Coflex hose. Establish good radio communication with SLB rig-up supervisor on the Jupiter and GSP crane operator, follow Coflex hose deployment procedure. Once the Coflex hose is secured in the Coflex hanger return the crane hook to the aft deck of the vessel to pick up the 2 x pressure transducer cables ( tied together for a one lift operation ) the cables should be secured to the hand-rail of the rig, the remaining length of cables will be run from the Coflex hanger area up to the rig-floor to connect to the pressure transducers.

8.4.
1.

Pressure Test

Hold a pre-job safety meeting on the Active king and Jupiter rig and discuss job assignments.

20

LV03 StageFRAC* - Operating Procedure

2.

Flush and prime each SPF 343 pump with seawater through the bleed off line on the rig-floor. Close the main line PRV isolation valve. Pressure test the lines to 690 bar in three equal increments against the SLB Master isolation valve. Inspect the lines. Observe the pressure record for 5 minutes at each increment. Hold for 10 minutes at 690 bar. bar Ensure wellhead master valve is closed, bleed off the pressure to approx 70 bar and open the SLB Master valve. Open the 3 actuated valve from the cement unit and perform the same test, up to 610 bar as above with the cement pump against the client master valve to ensure integrity of this section of treating line as well as the integrity of the wellhead master valve. Bleed off to 70 bar and open the GORV isolation valves, GORV set at 580 bar (Confirm N2 set pressure = 589 bar ) NOTE; GORV discharge line to run to over-board vessel. Set the vessel trip at 565 bar and re-pressure the lines to observe the vessel trip and hold the pressure for 10 minutes to test the GORV seat. Install the 2 annulus PRV ( set for 170 bar ) and isolate, pressure test the Annulus to 200 20 0 bar hold for 10min, bleed the pressure down to approx 70 bar and open PRV isolation valve, increase the pressure to 160 bar to test annulus PRV seat. Bleed off the pressure to 10 bar over the calculated WHP to equalize over the X-mass tree. Open the Xmass tree valves and record the WHP.

3.

4.

5.

6.

7.

8.

Note:

The Packers Plus Supervisor will notify the stimulation vessel engineer regarding the exact depths of the 3 frac ports and annulus pressure to be applied prior to pumping. SLB engineer to calculate exact flush volume from vessel pumps to each frac port in the StageFRAC assembly, taking into account the volume of all 3 treating lines between HP pump discharge ports and wellhead, confirm volumes with client representative.

Prior to pumping into the well the Drilling Supervisor and Production operator are to confirm the following valve status; SLB Master valve Swab valve Service wing Production wing Upper master valve Lower master valve SLB SSSV - open, control line pressure of 690 bar applied - open - open - closed - closed - hydraulically locked open - open

21

LV03 StageFRAC* - Operating Procedure

9.

Pumping Procedure

9.1.

DataFRAC

Since it is newly drilled well and limited number information are available on the formation characteristics, it is important to confirm some formation data related to transmissibility, closure pressure and fluid leakoff. Those data can be gathered through series of the tests which are also part of DataFRAC* service. DataFRAC Pumping Pumping Sequence:

22

LV03 StageFRAC* - Operating Procedure

9.1.1. DataFRAC - Injection Test

An Injection Test will be performed pumping treated seawater to breakdown the formation and initiate the fracture. The steps to be followed on the injection test are: 1. Pressure up annulus to 140 bar. 2. If no pressure was seen on surface, start pumping the treated sea water to fill the well through tubing. 3. Once the well is full after pumping aprox. 10 m3, after short shut in, start the injection test as recommended and agreed on the pumping schedule (10 m3 of treated sea water which composition is described in job design attachments) and then and hard shut in. Note: Note : The proposed pumping schedule is preliminary and will be subject to some modification on location based on the observed pressure and the formation response. Monitor the annulus pressures during pumping operations. 4. After formation breakdown is observed, shut in and monitor the pressure decline and perform a Mini Fall Off (MFO) analysis

Note: Do not exceed 8,500 psi pump pressure. If breakdown has not occurred at 8,500 psi shutdown pumps and reconsider options. Monitor annulus pressures throughout the pumping operation.

9.1.2. DataFRAC - Step Rate/Step Down Test


1. After closure is observed and MFO analysis completed resume the Injection Test and perform a Step Rate Test and Step Down Test with the stages length upon on site engineer recommendation (steps should be isochronal and volume will depend on pump rate aprox 15 m3 of treated sea water will be pumped in this stage). After completion of the last step stage during Step Down Test Shut In and monitor pressure decline.

2.

Note: Monitor annulus pressures throughout the pumping operation

9.1.3. DataFRAC - PreFlush


Prior the Calibration Injection pumped by using ClearFRAC XT fluid a Pre-Flush Stage (15 m3 of Pre-Flush fluid which composition is described in job design attachments) will be pumped with Preflush Fluid at the same pump rate. The objective of this stage is to inject into formation chemical additives which will enhance post job

23

LV03 StageFRAC* - Operating Procedure

viscosity degradation (breaking) of ClearFRAC XT fluid. After the planned volume of Pre-Flush fluid will be pumped DataFRAC calibration Injection stage will start.

9.1.4. DataFRAC - Calibration Injection


The DataFRAC* Calibration Injection will be performed using 60 m3 of ClearFRAC XT fluid at 3.0 m3/min pump rate followed by displacement stage when treated sea water will be pumped. After hard Shut In pressure decline will be monitored.

Prior to carrying out the Calibration Injection the on site fracturing QA/QC will be performed as per Appendix 1 and real time samples must be taken during all treatments. Note: Note : Displacement volume should be adjusted on-site to take into account actual surface line volumes. Once the DataFRAC treatment has been pumped shut down and monitor pressure fall off. This data will be used to measure closure pressure, calculate fluid efficiency and redesign main frac program if necessary. The pressure decline will be observed until clear fracture closure is observed or wellhead pressure will reach 0 bar.

24

LV03 StageFRAC* - Operating Procedure

9.2.

Main Fracturing Treatments

The main fracture treatment will adjusted based on the observed parameters from the Injection Test, Step Rate Test, Step Down Test and the DataFRAC Calibration Injection. The pumping schedule is based on the previous operation experience and StageFRAC* and published ClearFRAC XT documentation recommendations since the actual well data are not available at this moment.

9.2.1. Main fracturing Treatment Stage #1

Main Frac Pump Schedule Stage #1 (actual design will be determined after DataFRAC)

Ahead of each Main Fracturing Treatment a Pre-Flush will be pumped with Preflush Fluid at the same pump rate. The objective of this stage is to inject into formation additives which will enhance post job viscosity degradation (breaking) of ClearFRAC XT fluid. After the planned volume of Pre-Flush fluid will be pumped Main Fracturing Treatment -PAD stage will start. Note: Prior to carrying out the Main Fracturing Treatment QA/QC will be performed as per procedure mentioned further in the test and real time samples must be taken. Displacement volume should be adjusted on-site to take into account actual surface line volumes.

25

LV03 StageFRAC* - Operating Procedure

Flushing and Ball Lunching Procedure Stage #1 1. Once that designed proppant amount is pumped, proppant gate will be closed on POD blender and st flush procedure will start. (Assuming that 1 StageFRAC* ball (2.25) is pre-loaded into the 3 ball launching manifold) End of proppant stage Ensure NRD is reading zero PPA , flush volume will be the calculated volume from this point ( NOTE Total Slurry Volume pumped ) Reduce treating pump rate from 3.0 m3/min to 2 m3/min bpm, pumping same gelled fluid, note treating pressure once the rate at 2 m3/min and inform cement operator to apply same pressure to cement treating line, After ~1 m3 of flush fluid pumped ( treating line volume from vessel to Y ball launcher and to wellhead clean of proppant to be calculated after rig up) up reduce the pump rate to 1.5 m3/min, inform rig-floor manifold operator as soon as pump rate is reading 10bpm to open 3 HP actuated valve, Once rig-floor manifold operator has confirmed that the 3 HP actuated valve is in the open position, inform cement operator to begin pumping at 0.8 m3/min to launch the ball, the ball should immediately be launched into the main treating line ( can be heard by manifold operator ) Manifold operator then confirms to Frac Master that the ball has been launched Cement operator instructed by Frac Master to take his pump out of gear Manifold operator instructed by Frac Master to close 3 HP actuated valve, manifold operator confirms when valve is closed Treating pump rate is brought back up to 3.0 m3/min Frac Master to confirm with cement operator the volume of fluid that he pumped with his unit, this volume is added to Total Slurry Volume to have an accurate account of flush volume pumped Use the ball landing prediction excel spreadsheet, this will predict the ball arrival time at the StageFRAC* tool seat, treatment pump rate will be reduced down to 1.6 m3/min or otherwise noted. Once the ball has seated ( pressure spike indication ) the port will now be open, increase pump rate nd to 3.0 m3/min to initiate fracture of 2 zone Stop pumping if the proppant silos or additive tanks need reload, if not continue pumping.

2. 3.

4.

5.

6. 7. 8. 9. 10. 11. 12. 13.

nd ReRe -load ball launcher with 2 StageFRAC* ball

nd

1. 2. 3. 4. 5.

Manifold operator to communicate with cement operator to find out what pressure remains on the cement line Manifold operator to slowly bleed-off the pressure in the cement line ( between 3 actuated ULT and 2 check valve ) Once pressure is bled off, close bleed off valves immediately ( to keep line full of fluid ) nd Slowly open the 3 ULT valve and load the 2 StageFRAC* (2.5) ball ( confirm ball size prior to loading ) Close 3 ULT valve, StageFRAC* ball is now loaded and ready to launch.

26

LV03 StageFRAC* - Operating Procedure

9.2.2. Main fracturing Treatment Stage #2

According to pressure behavior while pumping Stage#1 pumps schedule for the Stage#2 might be modified in order to prevent screen-out and ensure maximum frac performance. The preliminary design for the Stage #2 represent slightly more aggressive design upper stated for the Stage #1.

Main Frac Pump Schedule Stage #2 (actual design will be determined after DataFRAC)

Flushing and Ball Lunching Procedure Stage #2 1. Once that designed proppant amount is pumped, proppant gate will be closed on POD blender and flush procedure will start. (Assuming that 2nd StageFRAC* ball (2.5) is pre-loaded into the 3 ball launching manifold) End of proppant stage Ensure NRD is reading zero PPA , flush volume will be the calculated volume from this point ( NOTE Total Slurry Volume pumped ) Reduce treating pump rate from 3.0 m3/min to 2 m3/min bpm, pumping same gelled fluid, note treating pressure once the rate at 2 m3/min and inform cement operator to apply same pressure to cement treating line, After ~1 m3 of flush fluid pumped (treating treating line volume from vessel to Y ball launcher and to wellhead clean of proppant to be calculated after rig up) up reduce the pump rate to 1.5 m3/min, inform rig-floor manifold operator as soon as pump rate is reading 10bpm to open 3 HP actuated valve, Once rig-floor manifold operator has confirmed that the 3 HP actuated valve is in the open position, inform cement operator to begin pumping at 0.8 m3/min to launch the ball, the ball should immediately be launched into the main treating line ( can be heard by manifold operator ) Manifold operator then confirms to Frac Master that the ball has been launched Cement operator instructed by Frac Master to take his pump out of gear Manifold operator instructed by Frac Master to close 3 HP actuated valve, manifold operator confirms when valve is closed

2. 3.

4.

5.

6. 7. 8.

27

LV03 StageFRAC* - Operating Procedure

9. Treating pump rate is brought back up to 3.0 m3/min 10. Frac Master to confirm with cement operator the volume of fluid that he pumped with his unit, this volume is added to Total Slurry Volume to have an accurate account of flush volume pumped 11. Use the ball landing prediction excel spreadsheet, this will predict the ball arrival time at the StageFRAC* tool seat, treatment pump rate will be reduced down to 1.6 m3/min or otherwise noted. 12. Once the ball has seated ( pressure spike indication ) the port will now be open, increase pump rate to 3.0 m3/min to initiate fracture of 3rd zone 13. Stop pumping if the proppant silos or additive tanks need reload, if not continue pumping.

28

LV03 StageFRAC* - Operating Procedure

Main fracturing Treatment Stage #3

According to pressure behavior while pumping Stages #1 and Stage #2 pump schedule for the Stage#2 might be modified in order to prevent screen-out and ensure maximum frac performance. The preliminary design for the Stage #3 represent even more aggressive design prepared for previous stages.

Main Frac Pump Schedule Stage #3 (actual design will be determined after DataFRAC)

Once that designed volume of flush stage has been pumped stop pumping under flashing the well for 4 bbl and monitor pressure decline.

29

LV03 StageFRAC* - Operating Procedure

10.

Flowback

The time required for the fracture to close should be closely monitored after the treatment. If pressure decline data do not indicate the fracture is going to close before the fluid is scheduled to break, then pressure should be bled off to the fracture closure pressure by flowing the well on a 2/64 inch to 4/64 inch at a rate of 5-10 gal/min. Once fracture closure is achieved, the well can be shut in to allow the fluid to break. If the well has the capacity to flow on its own after the treatment, then it should be kept on small chokes (6/64 to 8/64 inch) during the initial cleanup. Back pressure against the formation should be maximized. Start flow backing thro small choke (6/64 to 8/64 inch) at rate of 5-10 gal/min until full tubing volume is retrieved, if no proppant flowback is occurred gradually step like increase choke size crosschecking proppant flowback on the surface . A shut-in well or producing well should never be opened on a large choke instantaneously. Gradual choke increases in 2/64 inch increments are recommended. If necessary, these increases should be spread out over several days or weeks. Stop flowback until full volume of fracturing fluid is retrieved or oil production is at acceptable level.

If no Coiled Tubing cleanout after the job will be performed (not recommended): The difference between conventional well and well with stage frac completion is that it would be best to be able to flow the well back quickly, thus some of the balls should be returned to the surface. The ball catcher should be configured into the flow-back line to allow fluid recovery without shutting down. Ball Catcher and flow back lines should already be rigged up Ensure the smallest ID through the wellhead, and flow line to the rock / ball catcher is LARGER than the largest ball dropped during the stimulation. Downstream of Ball Catcher should be Service testing company flow back iron Schlumberger Well Services connections to tie on to a 3" 1502 Weco thread. Open Well, and Flow back at the smallest choke if well flows by itself, if not follow the CT Well Cleanout and Lifting Procedure Monitor for any Hydrocarbons to surface Monitor Ball(s) returns. Stop flowback until full volume of fracturing fluid is retrieved or oil production is at acceptable level.

30

LV03 StageFRAC* - Operating Procedure

11.

On Site QA/QC Lab Testing Procedure for ClearFRAC XT Fluid


11.1. Rheology Introduction - ClearFRAC XT Reference Rheolog y

Example of typical rheological properties of ClearFRAC XT 60, 40 and 20 straight fluids with 2 galUS/1,000 galUS L064 prepared in laboratory condition with fresh water:

31

LV03 StageFRAC* - Operating Procedure

Example of Fann 50 viscosity vs. temperature of 45 galUS/1,000 galUS J590 J59 0

32

LV03 StageFRAC* - Operating Procedure

11.2.

On Site Fracturing Fluid QA/QC

Sampling of water and additives


Sampling of water Obtain a water sample of ~500 ml from each fracturing tank at the middle valve; Ensure the water samples are representative of the tank by draining a few liters before catching the sample. Sampling of additives Get a sample of ~200 ml of both J590 and J589 from each lot on location and record the lot number; Circulation of J590 or J589 prior the job is not required. Testing of water Record pH for each water sample; Record temperature from all tanks. It should be above 20C for each tank; If KCl is mixed in the water, test and record the KCl% for each water sample. Fluid mixing and QA/QC testing procedures Add 200 ml fracturing tank water to a 1 liter Warring blender cup; Using syringes, measure out volumes of J590 and J589 necessary; Start blender spinning at low speed, add J590 and J589 **. Increase blender speed to 40% and blend for 2 minutes, increase blender speed to 70% and blend for 30 to 60 seconds; Stop blender, immediately start timer and slowly pour fluid between blender cup and sample cup. Record the time it takes to form a lip. This time is the shear recovery time; The shear recovery time should be less than 10 sec; Report this time in the lab QA/QC report; Repeat for other water samples.

Note:
When adding the chemicals to the blender cup, one must ensure that chemicals do not contact the blender walls or the center of the vortex. Chemicals contacting the blender cup wall and blade nut will not be completely mixed into the solution and poor performance will result.

Proppant Settling Test Procedure


Preheat a water bath to the minimum of BHST and 180 degF (82 degC). The water bath must be deep enough to cover the 500 ml mark of a 500 ml graduated beaker; Prepare 500 ml of ClearFRAC XT fluid using the procedures outlined above; In separate containers, preheat the proppant and carrier fluid to the test temperature; Calculate the volume of RCP VG from equations below to make a total slurry volume of VT at a proppant concentration of

C PPA using the 500 ml of ClearFRAC XT fluid (carrier fluid);

VCF =

VT SGG 8.34 (SGG 8.34) + C

33

LV03 StageFRAC* - Operating Procedure

VG =

1.6667 VT C (SGG 8.34) + C

Where: VCF = Carrier fluid volume [ml];

VG = Bulk volume of proppant [ml];

VT = Total slurry volume [ml]; SGG = Specific gravity of proppant; C = Proppant concentration [ppa].
Add the proppant ( VG ) into the bottle containing the 500 ml of ClearFRAC XT fluid ( VCF ); Cap the bottle and shake vigorously until the gravel is evenly dispersed; Pour the slurry into the graduated beaker to the 500 ml mark; Set the graduated beaker into the preheated water bath; Record the clear-fluid volume in ml in 1 to 5 minute intervals up to 60 minutes; After complete settling, remove the fluid (without proppant), cool to room temperature, and measure shear recovery following the procedure below.

Shear Recovery Test Procedure


Prepare of ClearFRAC XT fluid and expose to RCP as described above; Mix 200 ml of the remaining sample after rheology testing at 8000 rpm for 2 minutes; Stop mixing, and then pour the sheared fluid back and forth between the blender cup and a beaker. The fluid should start regaining viscosity at around 10 to 15 seconds and recover completely (hang-lip) in less than 25 seconds; If fluids take more than 25 seconds to recover completely (hang-lip) at room temperature, do not use the fluid for treatment, it has failed the test.

ClearFRAC XT Crude Oil Compatibility Test


When ClearFRAC XT fluids are mixed with some crude oils, an emulsion may form that can inhibit cleanup of the formation and proppant pack. Therefore, before introducing ClearFRAC XT to a new field, compatibility testing with a sample of the crude oil is essential.

Procedure to determine whether crude oil is compatible with ClearFRAC XT Preheat the ClearFRAC XT fluid and crude oil in a water bath to the desired temperature; Mix 50 ml ClearFRAC XT fluid with 50 ml crude oil in a test bottle. Cap the bottle and shake vigorously for 30 seconds; Place the bottle in the preheated water bath and start the stopwatch; Record the volume of the bottom layer and the volume of emulsion at 5, 10, 15, 30, 45 and 60 minutes; Calculate the percentage of emulsion break using the following equation:

% _ Emulsion _ break =

Volume _ of _ bottom _ layer 100 Volume _ of _ ClearFRAC _ XT _ fluid

If the emulsion does not break (>90%) in 60 minutes, a pre-flush treatment using

34

LV03 StageFRAC* - Operating Procedure

F105 or W054 is recommended.

Procedure to design treatment fluid composition and optimum crude oil/treatment fluid ratio Preheat ClearFRAC XT, crude oil and Pre-Flush fluid to the test temperature; Mix the crude and Pre-Flush fluid; Add ClearFRAC XT fluid; Place the mixture in a preheated water bath and watch for emulsion break; Record volume of bottom layer fluid at BHST:

% _ Emulsion _ break =

Volume _ of _ bottom _ layer 100 Volume _ of _ ClearFRAC _ XT + Volume _ of _ treatment _ fluid

The volume of treatment fluid required for the job can now be calculated. Select the most effective crude oil/treatment fluid ratio (if, for example, the best Treatment Fluid Vol% is 20%, then the volume of treatment fluid to be pumped during the job is 20% of the ClearFRAC XT pad volume).

ClearFRAC XT Fluid Viscosity Breaking Testing Procedure


The purpose of this test is to determine the effect of breaker on the viscosity of the carrying fluid with the focus on the integrity of the coating. The procedure covers the preparation and viscosity measurement of the fluid with and without breaker. Procedure for Fann 35 viscometer Place the fluid in a capped bottle; Add the J567 breaker into the fluid and slowly shake and swirl until the breaker is evenly distributed in the mixture; Place the capped bottle in a water bath at the BHST of the well to be treated. If the BHST is higher than 180 degF (82 degC), then 180 degF (82 degC) is the temperature used ; s-1 Wait for about 30 minutes and then measure the viscosity of the fluid with the Fann 35 at 100 rpm (170 ).

35

LV03 StageFRAC* - Operating Procedure

12.

Screen Out Contingencies

The best preventative measure to avoid a screenout is to design the fracture stimulations treatments conservatively. The flow chart below details the process in the event of a fracture stimulation treatment screenout. A detailed summary is provided below of events (A) through (G) is provided on the following pages.

36

LV03 StageFRAC* - Operating Procedure

12.1.

Frac Screens Out (A)

In the event of a screenout, the immediate step is to flow the well back in a controlled environment (do not surge the well). This will assist in immediately removing stimulation fluids from the formation, remove proppant from the wellbore and remove the upper ball from the wellbore (if already dropped). At this point either the well has cleaned up and removed the stimulation fluid and proppant from the wellbore or the well has stopped flowing leaving some stimulation fluid and proppant in the wellbore.

12.2.

Wellbore Free of Proppant (B)

In this scenario the fracture stimulation treatment screens out and the well is immediately flowed back. The well cleans up the proppant and stimulation fluid left in the wellbore leaving the well relatively full of hydrocarbons. Even though the well cleans up, it is still possible for a solids bed of proppant to lie on the low side of the wellbore in horizontal wells. This proppant may be enough to prevent the top ball from reaching the seat to shift the FracPort open. In addition, even if we are able to pump the top ball to the seat and shift the FracPort open, any proppant in the wellbore will be collected in the viscous pad fluid as we pump the pad down the wellbore. All of this proppant will now reach the formation at the start of the pad stage. This could result in immediate screenout and/or diversion of frac from best areas of reservoir. In the worst case, this stage of the wellbore will not be fracture stimulated. Therefore, it is recommended to treat the wellbore as if proppant is still in the wellbore. However, there may be situations where considerable time, effort and cost (e.g. offshore rig) will be required to mobilize a coiled tubing unit to clean the proppant out of the well. In these instances, the operator may prefer to assume the wellbore is free of proppant and continue. If this is the case, the operator must be made aware of the concerns noted above and that in the worst case the stage may not be fracture stimulated. At this point a decision must be made to either move forward assuming there is no proppant in the wellbore or to move forward assuming there is a proppant bed on the low side in the horizontal section of the wellbore.

37

LV03 StageFRAC* - Operating Procedure

12.3.

Frac Next Stage (C)

In this scenario the well is free of stimulation fluid and proppant. If the top ball either was not dropped when the well screened out or flowed out of the well, there will be no top ball in the wellbore. If the top ball was dropped prior to screen out, there is a possibility it may not come out while cleaning the well up. In either scenario, the operations below are valid as having two top balls of the same size in the wellbore will not affect the operation. Drop another top ball required to open the desired FracPort regardless if the same sized ball is already in the wellbore. Let the ball gravity drop into the horizontal section of the wellbore (minimum one hour). Start pumping pad fluid into the well at matrix rates (generally two to five BPM) displacing the ball to the desired FracPort. Displacing the ball to the FracPort will require pushing fluids in the wellbore into the previously fracture stimulated zone. Pumping at matrix rates will prevent the proppant in the previously stimulated stage from moving. When the ball reaches the seat of the FracPort, pressure up and shift the sleeve open. Resume pumping the fracture stimulation treatment as per program.

12.4.

Proppant in Wellbore (D)

In this scenario there is proppant and/or stimulation fluid in the wellbore because either well stopped during cleanup or there is a proppant bed on the low side in the horizontal section of the wellbore. At this point either two scenarios are possible depending on whether the top ball is in the wellbore or not in the wellbore. The top ball is in the wellbore if it was dropped prior to screenout and did not flow out of the well during cleanup. The top ball is not in the wellbore if either the top ball was not dropped prior to screenout or flowed out of the well during cleanup.

38

LV03 StageFRAC* - Operating Procedure

12.5.

Push Top Ball to Seat (E)

In this scenario there is proppant and/or stimulation fluid in the wellbore and the top ball is also in the wellbore. Coiled tubing is required to both clean the proppant and/or stimulation fluid out of the wellbore and push the ball to the seat of the FracPort. The coiled tubing bottomhole assembly to both wash and push the top ball is found under Coiled Tubing Design Push Top Ball to Seat. Follow best practices for cleaning proppant out of the wellbore.

12.6.

FracPort Shifts Open (F)

In this scenario coiled tubing has been used to wash proppant from the wellbore and push the top ball onto the seat of the FracPort. The following steps are recommended to shift the FracPort open: With the top ball pushed to the desired seat ensure all remaining proppant is removed from the wellbore. Pull up and re-tag the ball with the coiled tubing while pumping to ensure the restriction in the wellbore is the seat of the FracPort and not a proppant bridge. Stop pumping down the coiled tubing and shut in the coiled tubing return line on surface in preparation of pressuring up the wellbore. Push the top ball onto the seat of the FracPort and pump down the coiled tubing to pressure up the wellbore and shift the FracPort open.

At this point we will either be able to pressure up and shift the FracPort open or we will not be able to pressure up due to the integrity of the top ball being compromised. The integrity may be compromised while pushing and washing the top ball to the seat of the FracPort.

39

LV03 StageFRAC* - Operating Procedure

12.7.

FracPort Open, Frac Well (G)

In this scenario the top ball has been pushed with coiled tubing to the seat of the FracPort. We have pressured up on the wellbore and shifted the FracPort open. The following steps are now recommended: Perform an injection test into the formation to confirm that the FracPort is open. With the FracPort open, open the coiled tubing return line keeping the well in pressure balance. Displace the well to a relatively non-damaging low viscosity fluid (e.g. brine) and pull out of hole with the coiled tubing. While pulling out of hole, ensure a slight overbalance is maintained to prevent solids from entering the wellbore from the formation. With the coiled tubing on surface, start pumping pad into well and resume fracture stimulation treatment operations.

12.8.

Drop Another Top Ball (H)

In this scenario the top ball has been pushed with coiled tubing to the seat of the FracPort. However, we are unable to pressure up the wellbore and shift the FracPort open. The following steps are recommended if the FracPort does not open: Pull up and re-tag the ball with the coiled tubing and attempt to pressure up and shift the FracPort open again. If unable to pressure up and shift the FracPort open, open the coiled tubing return line keeping the well in pressure balance. Displace the well to a relatively non-damaging low viscosity fluid (e.g. brine) and pull out of hole with the coiled tubing. While pulling out of hole, ensure a slight overbalance is maintained to prevent solids from entering the wellbore from the formation. With the coiled tubing on surface, drop another top ball required to open the desired FracPort regardless if the same sized ball is already in the wellbore. Let the ball gravity drop into the horizontal section of the wellbore (minimum one hour). Start pumping pad fluid into the well at matrix rates (generally two to five BPM) displacing the ball to the desired FracPort. Displacing the ball to the FracPort will require pushing fluids in the wellbore into the previously fracture stimulated zone. Pumping at matrix rates will prevent the proppant in the previously stimulated stage from moving. When the ball reaches the seat of the FracPort, pressure up and shift the sleeve open. Resume pumping the fracture stimulation treatment as per program. If we are unable to pressure up and shift the FracPort open there is likely ball debris lodged in the FracPort preventing the ball from seating. In this case there are two options: Run in hole with coiled tubing and a motor mill bottomhole assembly to mill out the debris in the seat. The entire bottomhole assembly must be able to pass through the seat. Skip this stage a drop the next ball to fracture stimulate the next stage.

12.9.

Coiled Tubing Wash (I)

In this scenario there is proppant and/or stimulation fluid in the wellbore because either well stopped during cleanup or there is a proppant bed on the low side in the horizontal section of the wellbore. In addition, the top

40

LV03 StageFRAC* - Operating Procedure

ball is not in the wellbore as either the top ball was not dropped prior to screenout or flowed out of the well during cleanup. Coiled tubing is required to clean the proppant and/or stimulation fluid out of the wellbore. The recommended coiled tubing bottomhole assembly to wash is found under Coiled Tubing Design Coiled Tubing Cleanout. Follow best practices for cleaning proppant out of the wellbore. The following steps are recommended to resume the fracture stimulation treatment: Run in with coiled tubing and remove the proppant from the wellbore. If possible, clean the tubulars to the bottom of the well. At minimum, the well must be cleaned out to smallest FracPort seat possible. Displace the well to a relatively non-damaging low viscosity fluid (e.g. brine) and pull out of hole with the coiled tubing. While pulling out of hole, ensure a slight overbalance is maintained to prevent solids from entering the wellbore from the formation. With the coiled tubing on surface, drop a top ball required to open the desired FracPort. Let the ball gravity drop into the horizontal section of the wellbore (minimum one hour). Start pumping pad fluid into the well at matrix rates (generally two to five BPM) displacing the ball to the desired FracPort. Displacing the ball to the FracPort will require pushing fluids in the wellbore into the previously fracture stimulated zone. Pumping at matrix rates will prevent the proppant in the previously stimulated stage from moving. When the ball reaches the seat of the FracPort, pressure up and shift the sleeve open. Resume pumping the fracture stimulation treatment as per program.

41

LV03 StageFRAC* - Operating Procedure

13.

CT Cleanout Program

Post Frac Well Cleanout using Coiled Tubing

Operator Country Location


Prepared for

: PETROM S.A : Romania : : : 18-Jun-2008

Well Field Rig Location Phone:

: LV03 : Levada West : Jupiter : :

Date

Prepared by Reviewed by Revision No. Phone E-Mail Reviewed by Revision No. Phone E-Mail

: : : : :

Antonio Cevallos (CT & N2 Engineer) Giuseppe Ambrosi (Technical Engineer CT) A.0 +39 334 6401114 anavarrete2@pescara.oilfield.slb.com

Matthias Heil (GMTE CTS NCE) : 3 : +49 4441 9530 : mheil@vechta.oilfield.slb.com

42

LV03 StageFRAC* - Operating Procedure

OBJECTIVE Post Frac well cleanout with Coiled Tubing using a jetting nozzle BHA for the proppant cleanout and an Impact-Hammer assembly for removal of the StageFRAC balls if required. SCOPE Client is fully aware of all the risk involved on this operation, a HARC with all prevention and mitigation measures on place must be done and completely comprehended by the client. To avoid settling of the fill particles the fluid must be kept in movement at the designed pump rates at all times during the cleanout. We will perform frequently pull tests for confirmation of free movement of the CT, and return fluids at surface will be constantly monitored. Due to the higher rates which can be pumped through the jetting nozzle BHA Schlumberger proposes to use this system as the main tool for the proppant cleanout. The Impact-Hammer BHA will be prepared as a contingency in order to remove the StageFrac balls if required. The plan is to clean out the well to the first StageFrac ball, then pull out of hole, change the BHA and run in hole to destroy the first StageFrac ball. In order to avoid another BHA change back to the PowerClean-Nozzle it can be evaluated if the Impact- Hammer BHA can be used to clean out the well to the next StageFrac ball. Once the second ball is removed Schlumberger proposed to change the BHA back to the Power Clean BHA to complete the cleanout if necessary. Max CT depth is the 4 Toe Circulating Sub with a 1 Seat for 1.25 Ceramic closing ball. Depth: 2259 m MD As a contingency the well platform was checked to verify if CT can be rigged up on the platform for a possible N2 lift job with CT in case the Jupiter Jack up needs to leave location after the frac operation. The following is a summary of the findings: a) The well is right on the edge of the platform. There is no way to tie down the injector head at the back to provide stability for the CT rig up when the reel is pulling during operation. b) Only 1 crane can reach the wellhead. During the operation the crane can not be unhooked. In case of contingency operations the crane can not be removed from the injector head. The capacity of the crane is limited above the well. Minimum crane capacity required: 10 to for IH and BOP stack plus 5 to overpull once the Injector Head is connected to countereffect the weight of the CT hanging in the well to prevent the wellhead from buckling.Beacuse of the above SLB suggests not to rig up CT on the platform. Total hookload required above Injector Head = 15 to!

43

LV03 StageFRAC* - Operating Procedure

WELL INFORMATION

GENERAL INFORMATION INFOR MATION ABOUT THE WELL Well: LV03 Type of well Deviated producer well Max. Deviation 87 deg BHP 205 to 220 bar BHST 90 deg C MPWP (Calculated) 180 bar/2570psi Category I (0 3500 psi) Wellhead Work. Press 10,000 psi Well Fluid Fluid after StageFrac (Brine , ClearFrac XT 4%) Minimum restriction 2.0 at FracPort Tool 2

Deviated Hole Treat Down

YES TUBING

Tubing Data OD (in) 3.500 Weight (lb/ft) 13.0 ID (in) 2.750 Depth (m) 1978.0

Casing Data OD (in) 7.000 4.500 Weight (lb/ft) 23.0 11.6 ID (in) 6.366 4.000 Depth (m) 1978.0 2305.0

44

LV03 StageFRAC* - Operating Procedure

Hole Survey
MD (m) 0.0 450.0 500.0 510.0 540.0 570.0 600.0 630.0 660.0 690.0 702.5 924.3 1142.6 1678.9 1680.0 1710.0 1740.0 1770.0 1800.0 1830.0 1860.0 1890.0 1920.0 1928.0 1968.6 1978.4 1988.6 2010.0 2040.0 2070.0 2099.9 2100.0 2130.0 2160.0 2190.0 2220.0 2250.0 2280.0 2305.8 TVD (m) 0.0 450.0 500.0 510.0 540.0 569.8 599.3 628.5 657.2 685.3 696.8 900.0 1100.0 1591.5 1592.4 1619.5 1645.7 1671.1 1695.3 1718.5 1740.5 1761.2 1780.5 1785.4 1810.0 1816.0 1822.2 1834.9 1851.4 1866.5 1880.0 1880.1 1892.1 1902.6 1911.4 1918.7 1924.2 1928.1 1930.0 Deviation Angle (deg) 0.0 0.0 0.0 1.2 4.7 8.2 11.7 15.2 18.7 22.2 23.6 23.6 23.6 23.6 23.8 27.2 30.7 34.2 37.7 41.2 44.7 48.1 51.6 52.6 52.6 52.6 52.6 54.9 58.2 61.4 64.7 64.7 67.9 71.2 74.5 77.7 81.0 84.2 87.0 Deviation Build Rate (deg/30m) 0.0 0.0 0.0 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 0.0 0.0 0.0 3.7 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.6 0.0 0.0 0.0 3.2 3.2 3.2 3.3 3.0 3.3 3.3 3.3 3.3 3.3 3.3 3.3 Azimuth Angle (deg) 41.0 41.0 41.0 41.0 41.0 41.0 41.0 41.0 41.0 41.0 41.0 41.0 41.0 41.0 41.0 40.0 39.3 38.7 38.1 37.7 37.3 37.0 36.7 36.6 36.6 36.6 36.6 35.9 35.0 34.1 33.3 33.3 33.3 33.3 33.3 33.3 33.3 33.3 33.3 Azimuth Build Rate (deg/30m) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -1.1 -1.0 -0.8 -0.6 -0.5 -0.4 -0.4 -0.3 -0.3 -0.3 0.0 0.0 0.0 -1.0 -0.9 -0.9 -0.8 0.0 0.0 0.0 0.0 0.0 -0.0 0.0 0.0 Dogleg Severity (deg/30m) 0.0 0.0 0.0 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 0.0 0.0 0.0 3.7 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.6 0.0 0.0 0.0 3.3 3.3 3.3 3.3 3.0 3.3 3.3 3.3 3.3 3.3 3.3 3.3

45

LV03 StageFRAC* - Operating Procedure

DESIGN
TFM* (Tubing Forces Module) The TFM analysis predicts the Coiled tubing stress behavior during the CT operation such us: - Maximum allowed weight that can be applied to the BHA. - CT Weight during the operation. - Maximum stress in the CT during the operation.

13.1.

Tubing Forces Results

Output Summary
Lockup Did Not Occur Maximum Percent Yield Maximum Pickup Tension Minimum Slackoff Tension Maximum % Helical Buckling Load Available WOB Summary Maximum Allowable WOB at TD = 2796.45 lbf

= = = =

25.29 17335.93 -2800.00 3.31

% lbf lbf %

NOTE: Maximum Allowable WOB represents maximum WOB before lockup occurs at TD of 2300m. Maximum Allowable Pull = 30977.83 lbf

NOTE: Maximum Allowable Pull represents maximum pull before reaching yield ratio of 80% with the BHA at TD of 2300m

Coiled Tubing Data


Length ft 10901.80 2735.00 O.D. in 1.50 1.50 Thickness in 0.175 0.194 I.D. in 1.15 1.12 Wt/Length lb/ft 2.48 2.66 Volume bbl 14.01 3.33 Weight lb 27021.49 7276.78

46

LV03 StageFRAC* - Operating Procedure

Fluid Data
No flowing fluid effects. Density of Fluid in CT Density of Fluid in Well Fluid Level in Well Well Head Pressure Coiled Tubing Circ. Pressure = = = = = 8.5300 8.5300 0.0000 0.0000 4000.0000 lb/gal lb/gal ft psi psi

CoilCADE*
Coiled Tubing Weight Indicator Load
Stripper Friction Load - 2500 lbf Well Head Pressure - 0 bars Coiled Tubing Circ. Pressure - 276 bars Tensile Load on Tool at Max Depth - 0 lbf Compressiv e Load on Tool at Max Depth - 0 lbf
Pickup Slackoff

PETROM LVO3 Cleanout_1_5inCT_SW_PC 05-10-2008

20000

17500

15000

12500 Weight Indicator Load - lbf

10000

7500

5000

2500

-2500

-5000 0 250 500 750 1000 1250 1500 1750 2000 2250 2500 Measured Depth of Tool String - m

*Mark of Schlumberger

Figure 1. CT weight indicator load during the operation

The plot No. 1 shows the expected weight during the CT trip into the hole. The results show a weight of 17500 lbs while the CT is pulled up from bottom depth (2300m). With CT at max depth a maximum of 2800lbf WOB can be achieved and a total overpull at the tool of 31000lbf with a maximum yield of 80%.

47

LV03 StageFRAC* - Operating Procedure

Liquid Circulation
CoilCADE*
Design Aids - Liquid Circulation - Circulation Pressure v s Liquid Rate for v arious Liquids
PETROM 1 Seawater 2 8.53 3 0.5 4 1.0% LVO3 Cleanout_1_5inCT_SW_PC 05-10-2008

400 375 350 325 300 275 Circulation Pressure - bars 250 225 200 175 150 125 100 75 50 25 0 20 40 60 80 100 120 140 Liquid Rate - l/min 160 180 200 220 240 260
This plot can be used to determine the maximum circulation rate f or each liquid in order to remain within pressure limits of the CT and other equipment. Also, f or a giv en circulation rate, the liquids can be compared to see which one giv es the lowest pressure. *** To edit/erase text, double click on text to bring up edit box *** To mov e text box, drag with mouse Well Name - LVO3 WHP - 27.58 bars CT Tool MD - 2000.00 m CT OD - 1.500 in CT Total Length - 4156.498 m

*Mark of Schlumberger

Figure 2. Circulation pressure pres sure for different treatment fluids Note: Maximum recommended Pumping rate through the selected 1.5 CT string = 180 l/min at 300bar with seawater.

PowerCLEAN* and Wellbore Simulator Design


Fill Properties: 20/40 or 16/20 Carbolite with tail of 16/20 resin coated Carbolite; NOTE: The larger and heavier 16/20 proppant has been used for the simulations as worst case scenario. Particle Size..................................... 0.041 in Particle specific gravity......................... 2.73 Fill top MD....................................... 1810.0 m Fill bottom MD.................................... 2000.0 m Job Design Parameters: Wellhead Pressure During Cleanout................. 3.0 bars Maximum CT Cleanout Speed......................... 15.0 m/min Minimum CT Cleanout Speed......................... 1.5 m/min Maximum Circulation Pressure...................... 300.0 bars Maximum Bottom Hole Pressure...................... 220.0 bars Max Solids Pick-up Concentration.................. 3.0 %

48

LV03 StageFRAC* - Operating Procedure

Fluid Selection
The fluids selected for the cleanout are either KCl 2% or 3% or treated Seawater and ClearFrac gel at low concentration ( 1%) as a viscous pill in order to keep the solids in suspension.
CoilCADE*
Wellbore Simulator - Percent Solids to Surface; Cleanout w ith Seaw ater and sw eeps of 1% ClearFrac gel
PETROM LVO3 Cleanout_1_5inCT_Clearfrac 05-10-2008

100

90

Percent Solids to Surface Return Fluid Quality Liquid Interface(s)

80

70

60 Percent - %

50

40

30

20

10

0 0 60 120 180 240 Treatment T ime - min 300 360 420 480

*Mark of Schlumberger

Figure 3. Percentage of solids at surface during cleanout

49

LV03 StageFRAC* - Operating Procedure

13.2.

Procedure

WELLBORE CLEANOUT WITH JETTING NOZZLE


1. 2. 3. Perform permit to work and hold a pre rig up safety meeting with C-man, CT crew and third party companies. Discuss risks of the operation and review risks. Spot surface equipment (CT unit, CT string 1 ). Connect well adaptor 3 1/16 10,000 psi x 4 1/16 10k on frac-head and install Well Controll Stack for CAT I Operations for returns taken through the wellhead. Note: Verify the handling of the return fluids during the cleanout (Seawater mixed with Clearfrac gel and proppant). The following options have been discussed during the pre job planning: a) b) c) 4. 5. 6. Use the production piping connected to the side outlet on the wellhead, then flow the returns to the production facility. (Normal procedure as during normal flowback) Connect High Pressure Return line from side outlet on frac-head to rig choke. Then flow the returns over the shaker into the rig tanks. Connect High Pressure Return line from side outlet on frac-head to rig choke. Then flow the returns over the shaker overboard

Function Test BOP rams (Test tobe monitored and authorized by Supervisor). Perform function test injector head (chain movement and stripper). Make sure the entire CTSI network is properly connected according to the layout in the cabin and check if the acquisition is ok for all the sensors, including pump rate for fluid pump. Verify that load cell locking nuts have been released and that the load cell is working properly. Stab pipe and examine the first 5 - 10 feet of coiled tubing for distortion or damage. Cut off the offending length and make up internal connector with 1-11/16 OD. Install Pull/Pressure test plate at CT connector. Pull test CT-Connector to 15,000 lbs.

7. 8. 9.

movement ReNote: Check for mo vement of CTC using a light file mark. Re -Tighten CTC.
10. Flush treating lines, well control stack and CT string with water and perform Line Pressure Test & PT1 as listed below under Op era ti ng Pr es s ure P lan n in g (as per WS Safety Standards 5 & 22). Test CT string against CTC with Line Pressure Test Pressure. NOTE: Check pressure test for installation of FracHead. If pressure test against wellhead can be verified we test our stack against top valve on frac head. If no pressure test for frac-head and riser connection can be verified we test against wellhead master valve during PT1 (CT BOP Blind rams closed against close master valve, pumping through kill port on CT BOP). NOTE: Check pressure test of return lines from wellhead to choke. If no pressure test to a min. of expected MPWHP can be verified, include pressure test of these lines in Line Pressure Test.

Ope rating Pre s s ure P lan n ing (as per WS Safety Standards 5 & 22)
1. 2. 3. 4. Line Pressure Test (Reel, Treating Line, CTC etc.): 400 bar Maximum Potential Wellhead Pressure Pres sure (MPWHP) : 180 bar (2570psi) CoilLimit Operating Pressure (collapse): 1100 bar Equipment Working Pressure (Wellhead/BOP): 690 bar

50

LV03 StageFRAC* - Operating Procedure

5. 6. 7.

Maximum Well Control Pressure (MWCP): Pressure Test for PT 1 (Blinds/BOP Body/Wellhead): Pressure Test for PT2 (Pipes, Check valve, Stripper): Term Line Pressure Test

270 bar (3900 psi) 270 bar (3900 (3900 psi) 270 bar (3900 psi)

Definition All treating lines including the CT-Reel (CT string against connector and pressure test plate and return lines. Highest wellhead pressure possible, given the reservoir pressure. This is reservoir pressure less the hydrostatic head of the reservoir fluid, extending from the reservoir to the wellhead. Maximum pressure for well control only. This must be determined in advance, and may NOT exceed any of these thresholds: Category pressure limit + 1,500 psi PT-2 test pressure Working pressure of any equipment item 300 psi to 500 psi applied pressure to verify correct equipment assembly. Lesser of 1.5 times the MPWHP or the working pressure of the lowest-rated component. (Lines, Body, Blinds) Lesser of PT-1 pressure, Coil LIMIT pipe-collapse (Stripper, Pipes, CT, DFCV)

Maximum Potential Wellhead Pressure (MPWHP)

Maximum Well Control Pressure (MWCP)

Low-Pressure Test (LPT)

Pressure Test One (PT-1)

Pressure Test Two (PT-2):

11. Release the pressure and make up CT BHA for Proppant Cleanout: 1 11/16 EZ connector, 1 11/16 MHA and 1 11/16 jetting nozzle. 12. Lift the stack and connect to the BOP. 13. Correlate deth. NOTE: Do not tag the the stripper with the slim BHA. Apply paint mark on CT to prevent pulling through stripper when coming out of hole. Have second mechnical counter set as another reference to verify CT is above wellhead master valve. If in doubt follow MLA Procedure to POOH with Slimline BHA which involves closing the master valve carefully to verify that the CT is above the valve. 14. Flush well control stack with water and perform pressure test PT-2 as listed above under Ope rat ing Pres s ur e P la nn in g (as per WS Safety Standards 5 & 22). 22). NOTE : Verify that we have enough room between closed valve on frac-head and Pipe/Slip rams to accommodate the BHA for PT 2. Do not tag the valve and do not close the BOP across the BHA. 15. Equalize the pressure, open master and wing valve, start running in hole at 6 m/min until 50 mts (170 ft), always pay attention to the weight indicator, then RIH maximum 20 m/min pumping brine at minimum rate 50 l/min reducing RIH speed to 6m/min when going through restrictions. Perform pull test every 500 m for the first run. Verify that the well is full by monitoring the returns while RIH. Note: Es ti ma te To p o f S an d (T OS) p r ior to run nin g in ho le (RI H). S top CT and star t C lea no ut a bo ut 30 m ( 10 0 ft ) a b o v e T O S . D o n o t ta g th e s a n d w it h th e n o z z le w ith o u t p u mp in g . .

51

LV03 StageFRAC* - Operating Procedure

16. Once the CT is at 30m above TOS the pumping schedule below should be followed for the proppant cleanout: a. b. c. Penetrate Fill with maximum 2 m/min for 25m (75ft) pumping Seawater @ 180 l/min or max. 350 bar. Stop CT and Circulate @ 180 l/min for 15 min Contine to penetrate fill for the next bite of 25m with a maximum speed of 2m/min puming at cleanout rate.

NOTE Important Considerations for Cleanout: Never exceed cleanout speed of 2m/min while penetrating fill Never stop pumping during cleanout PO O H im me d ia te ly if c le a n o u t p u m p r a te c a n n o t b e m a i n t a in e d Max pump pressure 350 bar Perform pull test at intervals of 100m during cleanout Have gel pills as per mixing instructions below ready in case the proppant does not return as expected.
3 Mix 1% (10gpt) Clearfrac Gel for gel pills. Volume per pill = 10bbl (1.6m ). The volume of J 590 and J589 need to be as per the table below. 3

i. ii.

3 10 gal J 590/1000gal >> 4.2 gal J590/10bbl (16 liter J590/1.6m ) 3 7.5 gal J589/1000gal >> 3.15 gal J589/10bbl (12 liter J589/1.6m ) 3

17. Contine cleanout until hard tag on top StageFrac ball is reached.

52

LV03 StageFRAC* - Operating Procedure

18. Mark CT with paint at tagging depth. 19. POOH with a maximum of 10m/min until 1200m pumping @ 180 l/min or maximum of 350 bar. 20. At depth of 1200m stop CT, maintain cleanout rate and check that returns are free from solids before continuing with next step. 21. Once returns are solid free reduce pumprate to 50 l/min and POOH with a safe speed. Ensure that the well is kept full of fluid. 22. Once the CT is on surface shut in the well. NOTE: Do not tag the stripper with the internall 1.69 OD connector. Follow safe procedure to correlate depth and close wellhead. 23. Rig down Injector head and prepare BHA change.

WELLBORE CLEANOUT WITH Impact Hammer BHA (Removal of StageFrac Balls) 24. Perform permit to work and hold a safety meeting with C-man, CT crew and third party companies. Discuss risks of the operation and review HARC. Document Safety Meeting on cabin report. Include BHA function test in Safety Meeting. 25. Verify that CTC has not moved and is still in good condition. Check for abrasion on the CT string (to about 10m above CTC). 26. Make up Impact Hammer BHA. 27. Perform and record pre job safety meeting for BHA test. 28. Function Test BHA (Set down BHA on wooden board and pump to activate the tool)

29. Make up IH and pressure test the broken connection at PT 2 test pressure against the closed master valve on the wellhead by pumping through the reel as listed above under Operating Pressure Planning (as per WS Safety Standards 5 & 22).
30. Correlate depth and update CCAT with new BHA length. NOTE: NOT E: Do not tag the stripper with the internal 1.69 OD connector. 31. Equalize pressure, open wellhead and RIH to tagging depth while pumping at minimum rate.. Reduce speed at all restrictions. Monitor Returns and check for paint mark on CT. Note: BHA length has changed! 32. Once tagging depth has been reached increase pump rate to 160 l/min (max rate through 1.69 Roto Hammer) and tag obstruction to activate hammer and remove the StageFrac balls.

Note: Adjust set down weight as per table below. Do not exceed 1500 lbs at the tool (WOB) without checking with the office. The max set down at the BHA (WOB) is 1800lbs for the Roto Hammer Tool.

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LV03 StageFRAC* - Operating Procedure

CT depth

Set down weight at depth. WOB lbf 500 1000 1500 1800 4000

Set down weigh at surface. (Delta Weight) lbf 500 1000 1500 1800 7500

m 2000 2000 2000 2000* 2000 * Max for tool

33. Work the Impact BHA on the obstruction as per the limits above and CoilLimit until the obstruction has been removed. Check with office if no progress after a max of 10 attempts or 1 hr of working the obstruction. 34. Once obstruction has been removed do not go deeper in the well! Pick up immediately and perform pull test with CT with pumprate of 160 l/min and cirulate a gel pill (1% Clear Frac gel, Pill Volume 1m3). 35. Pass through obstruction several times after pulltest while the pill is circulated to surface 36. Review next step of the operation with company man and SLB engineering. Depending on the cleanout performance the cleanout can be continued with the impact hammer BHA until the next StageFrac ball is reached. 37. If sand cleanout is continued with Impact BHA the below pumping schedule should be followed for the proppant cleanout: a. b. c. d. e. Penetrate Fill with maximum 1.5 m/min for 15m (45ft) pumping Seawater or KCL brine @ 160 l/min or max. 350 bar. Stop CT and Circulate 1.5m3 gel pill (1% ClearFrac) @ 160 l/min. Continue to Circulate @ 160 l/min until gel has exited the nozzle (Reelvolume 2.8m3, Pill Volume 1.5m3, Total pump volume = 4.3m3, 27 min duration @ 160 l/min) Contine to penetrate fill for the next bite of 15m with a maximum speed of 1.5m/min. Check for hard tag on FracPort Tool at Stage 2.

N O T E I m p o r t a n t C o n s i d e r a t i o n s f o r C le a n o u t :

N e v e r e x c e e d c l e a n o u t s p e e d o f 1 .5 m / m i n w i t h I m p a c t H a m m e r B H A N e v e r s t o p p u m p i n g d u r in g c le a n o u t PO O H im me d ia te ly if c le a n o u t p u m p r a te c a n n o t b e m a i n t a in e d

54

LV03 StageFRAC* - Operating Procedure

M a x p u mp p r e ss u r e 3 50 b a r P e r f o r m p u l l t e s t a t i n t e r v a l s o f 5 0 m d u r i n g c le a n o u t w i t h I m p a c t H a m m e r B H A

38. Remove Obstruction at FracPort Tool at Stage 2 using Impact Hammer operating procedure as listed above. 39. Once Obstruction is removed check with company man and SLB engineering about next steps. Options are to continue the cleanout with the Impact Hammer BHA or POOH and perform a finall sweep of the well with the power clean BHA. NOTE: Do not tag the stripper with the internal 1.69 OD connector.

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LV03 StageFRAC* - Operating Procedure

13.3.

Equipment

CT SURFACE EQUIPMENT CLIENT: DATE: COILED TUBING UNIT CT UNIT/ POWER PACK INJECTOR HEAD BOP/Stripper REEL/CT STRING CONTROL CABIN Cement pump with two fluid ends. One with 5 plungers (5000psi) and one with 3 plungers (10000psi). Use 3 plungers for cleanout. Second fluid end only suitable as contingency in order to pull ct out of the well during cleanout. Petrom S.A 08-June-2008 DETAILS High Pressure Open Loop 560,Max Pull: 60000 lb, Max Snub: 20,000lb Combi BOP 4 1/16 : 10000 psi Max, Side Door Stripper String 1.5 Tapered, HS 90; String # 15_13314; 4150m (0.175/0.190 WT) Transport from Vechta (Germany) UNIT NUMBER WELL : LV03

TUS 07360

Pump Unit

Wellhead Adapter Jetting BHA Impact Hammer BHA

3 1/16 10k x 4 1/16 10k 1.69 OD 1.69 Tool OD with 1.75 max bit OD

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LV03 StageFRAC* - Operating Procedure

13.4.

Prevention and Mitigation Measures on Location

Before handling chemicals, review the appropriate Material Safety Data Sheets (MSDS) regarding Personal Protective Equipment (PPE) and handling procedures. It is vital to have a good working knowledge of the following safety standards: Well Services Safety Standard 5 Pressure Pumping Standard 18 Chemical Hazard Communication (HAZCOM) and Material Handling Schlumberger Contingency Procedures for Coiled Tubing Operations (Appendix C), located in Well Services Safety Standard 22 Coiled Tubing Safety Standard Well Services Safety Standard 22 Coiled Tubing Safety Standard Level One Training

Personnel Safety
To ensure personnel safety: Follow the Schlumberger Well Services Safety Standard 22 Coiled Tubing Safety Standard Exercise proper stepping, handling, and lifting techniques to ensure personnel safety according to: o OFS QHSE 17, Injury Prevention Standard o OFS QHSE 13, Mechanical Lifting Standard Wear proper personal protective equipment (PPE), including safety glasses. For the personnel in charge of returnings, adecuate training, certifications and special PPE guidelines should be followed

Environmental Concerns
Refer to the appropriate Material Safety Data Sheets (MSDS) regarding the handling of chemicals and their environmental impact. Any chemical spill must be contained, cleaned up, and reported according to local procedures. Dispose of chemical waste in an environmentally acceptable way and in accordance with local regulations (the client in this case will decide how to dispose the fluids)

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LV03 StageFRAC* - Operating Procedure

14.

Decision Tree

In order to manage the changes and be prepared for any deviation from the initial program, a decision tree was adopted that cover most of the possible incident and the different alternative.

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LV03 StageFRAC* - Operating Procedure

15. 16. 17. 18.

Appendix 1 - Lab Testing Report Appendix 2 - Frac Design Stage 1 Appendix 3 - Frac Design Stage 2 Appendix 4 - Frac Design Stage 3

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