CASING

DRILLING
A Revolutionary Approach
to Reducing Well Costs

February, 2000
What is Casing Drilling?

Drilling and casing wells simultaneously

where the casing is used to transmit
mechanical and hydraulic energy to the bit.

Elimination of drill pipe and drill collars.

Elimination of tubular tripping.
Reduction of unscheduled events.
Increased drilling safety.
Reduced rig costs.
Reduced overall well costs.
Casing Drilling- A Complete Solution

Use Casing Drilling Process for Entire Well

Conductor/Surface
Intermediate
Long String

Reduced Costs

Improved Performance

Improved Safety
Rotary Drilling vs. Casing Drilling

HOLE PROBLEMS WHICH RESULT IN EXCESSIVE ROTARY DRILLING COSTS - AND THE CASING DRILLING SOLUTIONS
1. SWELLING FORMATIONS 2. SLOUGHING FORMATIONS 3. WASHOUT
4. SWAB OIL & GAS 5. HOLE IN CASING OR KEYSEAT 6. RUNNING LOGS & CASING DIFFICULTIES
Industry Flat Time Lost
(as percentage of total well time)

Non-scheduled Events 12-25%

Casing Installation 12-21%

Tripping 10-12%

Formation Evaluation 5-18%

Completions 5-10%

Range Total Flat Time 44-86%

(From DEA Flat Time Reduction Opportunities Houston, 21-Sept-99)

Casing Drilling Applications

Large Diameter Hole

No need for large drill collars or drilling tools

Significantly improved hydraulics & hole cleaning

Reduced risk of hole problems from tripping

Eliminate risk of getting stuck running casing

Improved safety and efficiency

Casing Drilling Applications- contd.

Offshore

Reduced deck loading through eliminating pipe and

collars- save space and weight

Flexibility for contingency strings

Improved well control

Time saved = significant economic advantage

Casing Drilling Applications- contd.

Jungle/Helicopter Rigs
No drillpipe/collars to fly in and out

Casing goes one-way only

Rig is smaller and lighter for same depth rating

Reduced fuel consumption and transportation costs

Casing Drilling Applications- contd.

Unstable or Sensitive Lithology

Casing is always on bottom

Excellent hydraulics for superior hole cleaning

No reaming/backreaming on trips- NO TRIPS

Time saved = significant economic advantage

Casing Drilling Applications- contd.

Directional or Slant Wells

Fully steerable- use conventional directional assembly

Less torque and drag while drilling- increased reach?

Fewer hole cleaning problems

Casing Drilling Applications- contd.

Shallow Gas
Drilling rate is competitive
Total drilling time improved over straight rotary
Better well control- reduced risk from shallow kicks,
especially while tripping
No tripping pipe and collars
Can use a smaller, lighter, faster moving rig
Reduced moving costs
Casing Drilling Applications- contd.

High-mobility Rigs; Revamping

Reduced capital cost

Smaller footprint, lower lease prep costs

Reduced moving costs

Empower older rigs with new technology

Reduced fuel and maintenance costs

Casing Drilling Technical Challenges

Changing the Bit & Bottom Hole Assembly

Casing Connection

Bit Cutting Structure

Formation Evaluation

Cementing & Drilling Out the Shoe

Tescos Total Solution for Casing Drilling

Factors to be Considered in the Design of a Casing

Drilling Wellbore:
Casing Loading
fatigue limits, tension, compression, critical buckling

Connection Design (what level of service?)

Cutting Structure (bit program)
Well Control Issues
Directional Drilling (steering and/or correcting)
Logging, Testing, Coring, Cementing
Hole Integrity Issues
Tescos Total Solution for Casing Drilling

Tesco Provides the Only Total Solution:

Complete Drilling Engineering

Complete Technology Capabilities

Programming

Tools and Equipment

Fully Integrated Project Management Services

Complete Daywork, Lumpsum or Turnkey Capabilities

Casing Drilling Technical Challenges

Changing the Bit & Bottom Hole Assembly

Run/retrieve tools and accessories without pulling casing
Casing Connection
Handle drilling loads, minimize fatigue, competitive cost
Bit Cutting Structure
Destroy rock with low torque, low RPM using PDC cutters- no
stick/slip
Underreamer engineered for hard rock and continuous service- short
arm extension, robust
Formation Evaluation
Log, test, core
Cementing & Drilling Out the Shoe
Cement with pump-down float
Drill out and drill ahead to next casing point with next casing string
Casing Drilling Downhole Tools

Wireline BHA- Drill Lock Assembly

Anchor & Seal Assembly
Running & (Incorporates by-pass)
Retrieving Add Mud Motor Bit
Axial Dogs Stop Dogs Torque Anchor as required
Tool (Lock into (Locate at (Locks into
Lock Collar) No Go shoulder) torque collar) Underreamer

Casing Assembly- Casing Landing Assembly

Centralizers Casing Lock Casing Torque
Casing as reqd Collar Collar Casing Shoe
Running & Setting BHA
Lower BHA (while circulating and
reciprocating) until stop dogs
locate at No Go shoulders
Stop pump and jar down to close
by-pass and lock axial dogs into
lock collar
Continue to jar down to release
running tool
Retrieve running tool while
circulating and reciprocating
Drilling Surface Casing
Bottom Hole Assembly

Bit (must pass through casing drill

string and drill pilot hole)

Underreamer (must pass through

casing drill string and
underream pilot hole out to
desired diameter)
Retrieving BHA

Latch running tool into BHA

Jar up to open bypass and
release axial dogs
Circulate through by-pass to
allow underreaming arms to
retract

Hoist tool out of casing while

circulating and reciprocating
Cement Surface Casing
Drilling Out Cement Plug

Options
-Bit/Underreamer
-Bit/ Drilling Casing Shoe
-Drilling Casing Shoe /
Flat Bottom Mill
Drilling Below A
Cemented Casing String
Bottom Hole Assembly:
-Bit (must pass through casing drill
string and drill pilot hole)

-Underreamer (must pass through

casing drill string and underream
pilot hole out to the inside diameter
of the last casing string set)

Note: Underreamer arms can be

enlarged to underream the last
casing string set if required
Drilling Directionally

Bottom Hole Assembly

-Bit
-Underreamer
-PDM with bent housing
-MWD
-NMDC
-Anchor & Seal Assembly
(Locked into casing)
 Coring
Conventional coring 30-60
feet per run.
Core/underream as a
continuous operation.
Retrieve coring assembly
on wireline.
Logging

Retrieve BHA, pull casing from

section of interest, log
conventionally in open hole.
Log through steel casing
(cased hole logs)
Log while drilling:
Suspend BHA below casing shoe
and LWD as currently done and
demonstrated here.
Casing Drilling Tools Being
Assembled on Catwalk
Making-up DLA
Lowering DLA Into
First Joint of Casing
DLA Latched Into
First Joint of Casing

Second Joint
Picked Up, About to
be Stabbed
Full Casing Drilling Assy
- Drilling Ahead
BHA
Bit
Underreamer
 REED
HYCALOG
DS74H
98mm (3 7/8)
25 X 8mm
Cutters
Tesco - RBI 3 Blade 98mm PDC Bit
Underreamer (3 nozzles), Pilot bit (5 nozzles) @ 0.45m3/min
PDC Cutters - 155.6mm (6-1/8) hole
with 114.3mm (4-1/2) Casing

MODIFIED CUTTERS FORMER CUTTER DESIGN

PDC Cutters - 215.9mm (8-1/2) hole with 177.8mm (7)
casing; two runs, 1200 ft, Wyoming
4.5 Hunting Interlock Coupling with Torque Ring
Grant Prideco Integral Upset Coupling with Torque
Shoulder
SPIR-O-LIZERS
Zinc Alloy
Rotating Steel (Hard Banded) 7 Centralizers - Wyoming
Tesco Pump Down Float Plug
Pump down while circulating prior to
cement job. Lands in CLA. Burst out
disc with pressure.
Retains cement after standard
wiper plug is bumped.
Seven Loads
Stiff Mast Range III Single
100 Ton Nominal Rating
Rating With 139.7mm
(51/2) Casing
3000m (10,000ft)
25.3kg/m (17lb/ft)
Rating With 114.3mm
(4-1/2) Casing
3960m (13,000ft)
20.08kg/m(13.5lb/ft)
Moving On and Rigging Up
Pipe Handling System in Operation
Innovative Casing
Saver Drive System
Elevator
Circulating Head
Non-threaded Drive
Fully Automated Controls
 Test Well Schematics
Test Well # 1
Conductor Casing
9-5/8 43.5 lb/ft P-110 WT- IPC
12-1/4 Open Hole to 130 ft
Surface Casing
7-5/8 26.4 lb/ft N-80 WT-IPC
10 Open Hole to 565 ft
Production Casing
5-1/2 17 lb/ft PZ- 50
WT-IPC / Buttress CNV-SC-BTC
7 Open Hole to 3040 ft
Plugged back and directionally
drilled to 86deg. Plugged back
and open hole side tracked to
60deg.
Note: All Casing is ERW
Test Well # 2
Surface Casing
9-5/8 36 lb/ft
Buttress-CNV K-55
12-1/4 Open Hole to 689 ft
Intermediate Casing
7 23 lb/ft
Buttress CNV-SC-K-55
8 1/2 Hole to horizontal @ 2900 ft
Plug back, drill S profile and
cement @ 2200 ft (vertical)
Production Casing (Long String)
4-1/2 11.6 lb/ft
Buttress CNV-SC PS-80
6 1/4 Open Hole to 3000 ft
 First Shallow Wells in Canada

520m vertical wells (Cessford)

177.8mm conductor pre-set
Drilled in and cemented 114.1mm casing
Hours from spud to rig release

60 59.5

50

40
31
30
25
20 19.25

10

0
1st Well 2nd Well 3rd Well 4th Well
Operational Improvements-Countess Project
800m+ vertical wells (Countess)
177.8mm conductor pre-set
Utilized Integral Buttress 114.1mm casing

UNDEREAMER - New Cutter Design with

Nozzles

TOP DRIVE ALIGNMENT - Better

Counterbalance, New Torgue Bushing

CASING CONNECTION - Integral Upset

Shouldered Buttress

CASING SHOE - 152mm OD, strengthened

perimeter, reaming pads

CEMENTING - Pumpdown Float Plug, Plug

Loading Head

DRILLING DATA - Full Electronic Pason

recorder and displays
Wyoming Depths for Casing Drilling
Surface Casing
9-5/8 36 lb/ft
Buttress-CNV L80 @ 803 ft
Production Casing
7 23 lb/ft
Buttress - CNV L80 @ 6,480 ft

Rotating hours to surface casing depth

35 (RC)
30
25 (RC) (RC)
803 ft

20 (PDC)
Hours

814 ft
786 ft

15
846 ft

10
5
0
1st Well 2nd Well 3rd Well 4th Well
Surface Hole Learning Curve in Wyoming

250m+/-, 12 1/4 Surface Hole

9 5/8 x 36ppf K-55 Surface Casing
Wells one and two with Hunting Interlock Convertible Buttress
Wells three and four used API Buttress Couplings

70
62
60
50 45
Hrs From Spud 40 38 38
to Plug Down 30 29.5

20
10
0
Best 1st Well 2nd Well 3rd Well 4th Well
Offset
Conclusions

Commercially available casing and connections can handle

the required torsional and compressive loads while drilling
with casing if drilling parameters are controlled and annular
clearance is minimal
Equivalent penetration rates were observed as compared to
conventional rotary drilling (through alternating siltstone,
shales, coal, sandstone)
Significant time can be saved for tripping with wireline
compared to conventional tripping with pipe
Tesco Casing Drilling Advantages

Rig Efficiencies
Reduced capital and logistics costs due to lighter
substructures and single derricks
Reduced personnel and increased safety by eliminating
extensive pipe handling
Separate strings of drill collars and drill pipe need not be
acquired, transported and maintained
Lower horsepower from reduced circulating pressure and
elimination of drawworks tripping
Tesco Casing Drilling Advantages

Operational Efficiencies
Elimination of backreaming and reaming to bottom
following trips

Lower prime mover fuel consumption

Increased bit hydraulics

Lower mud and cementing costs

Elimination of casing handling and drill string running time

Tesco Casing Drilling Advantages

Unscheduled events eliminated

Taking a kick while tripping the drill string

Unintentional sidetracks while reaming back into the hole

Hole problems caused by swab and surge pressures

Key seats and wearing holes in previously set casing

Built-in washover capabilities if BHA becomes stuck

 INNOVATIVE TECHNOLOGY WITH AN INTERNATIONAL FOCUS

Tesco Corporation is a global provider of innovative, technology

based solutions to the upstream energy industry. Tesco designs,
manufactures and services equipment that reduces the cost of
drilling for and producing oil and gas and, is a supplier of value-
added products and services to heavy industry.

Tesco is growth oriented and committed to an ongoing, in-house

research and development program that leads to the practical
application of new technologies.
 CASING
DRILLING
A Revolutionary Approach
to Reducing Well Costs

February, 2000