SERVICE OFFERINGS BEST IN CLASS MILLING SOLUTIONS LOWER COST, REDUCED CAPEX, HIGHER PRODUCTION ABSOLUTELY.

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1 MILLING SOLUTIONS

2 LOWER COST, REDUCED CAPEX, HIGHER PRODUCTION ABSOLUTELY. SERVICE OFFERINGS BEST IN CLASS MILLING SOLUTIONS Deferred or reduced production is never welcome. When the cause is scale build-up or downhole obstructions, Welltec s milling solutions can bring wells back on-line fast and efficiently. Deployed on e-line, these modular tools have proven to be robust and effective in removing obstructions with robotic precision across diverse environments including horizontal wells. Range of services: Scale milling Flapper valve milling Glass plug milling Nipple profile milling Enlargement of buckled tubing Isolation valve milling Bridge plug removing EXPLORE YOUR OPTIONS! 3

3 TOOLS MILLING SOLUTIONS SPECIFICATIONS WELL MILLER FOR SCALE REMOVAL FULL BORE BIT CORE BIT WIRE BIT WELL MILLER FOR SCALE REMOVAL 2 1/8 BODY TOOL OD 3 1/2 The Well Miller for Scale Removal transforms the power of the Well Miller into a solution for removal of accumulations which can t be removed effectively with brushing. The Full Bore Bit is ideal for attacking layers of scale that are severely reducing the wellbore ID and impacting production. It is designed to mill through substantial amounts of build-up and restore the tubular to full bore. The Wire Bit is developed specifically for milling scale that has settled on or inside valves within the wellbore. It is built to attack scale in irregular holes, depressions and upsets. Scale milling with the Well Miller is run in combination with the Well Tractor to apply weight-on-bit as necessary and to counter reactive torque. Types of jobs Removal of Scale Cement Salt Sulfates Hydrates Calcite 10 ft LENGTH 12.2 ft 70 lbs WEIGHT IN AIR 95 lbs 2.25 BIT SIZES 7 20 kpsi MAX. WELL PRESSURE 25 kpsi 302 F MAX. TEMPERATURE, UP TO 338 F The Scale Core Bit is designed for shaving scale sheathes from inner walls with diamond tipped finesse. With a tighter tolerance to fit the ID, it is a perfect solution for removing scale patches over long intervals. 36,000 lbs TENSILE STRENGTH 42,000 lbs 30,000 lbs COMPRESSIVE STRENGTH 50,000 lbs 4 5

4 TOOLS MILLING SOLUTIONS SPECIFICATIONS WELL MILLER FOR HARDWARE MILLING NPR PR WELL MILLER FOR HARDWARE MILLING 2 1/8 BODY TOOL OD 3 1/2 The Well Miller for Hardware Milling provides operators with a better way to repair wells with mechanical problems. Historically, interventions to remove plugs or mill through nipples had been limited to the use of heavy, expensive equipment. Now there is a lightweight, e-line conveyed, reliable alternative. The Well Miller Nipple Profile Removal (NPR) tool increases the ID of a nipple profile, providing increased production and access to the wellbore below for tools with larger diameters. The tool can also be applied to open up pipe or tubulars which have partially collapsed. Operations have been successfully performed on nipples of high tensile steel, chrome, and super chrome. The Well Miller Plug Removal (PR) tool is a powerful solution for removing faulty or temporary, cast iron or composite plugs in the wellbore. Hardware milling with the Well Miller is run in combination with the Well Tractor to apply weight-on-bit as necessary and to counter reactive torque. Types of jobs Nipple profile milling Cement plug milling Bridge plug milling Enlargement of buck tubing Glass plug milling 10 ft LENGTH 12.2 ft 70 lbs WEIGHT IN AIR 95 lbs 2.25 BIT SIZES kpsi MAX. WELL PRESSURE 25 kpsi 302 F MAX. TEMPERATURE, UP TO 338 F 36,000 lbs TENSILE STRENGTH 42,000 lbs 30,000 lbs COMPRESSIVE STRENGTH 50,000 lbs 6 7

5 ADVANTAGES HEAVY INTERVENTIONS WITH A LIGHT TOUCH KEYHOLE SURGERY A main feature of Welltec s solutions is the ability to deliver heavy duty results with robotic precision. This enables operators to apply surface-monitored and controlled applications to a specific and predetermined part of the well, reducing the risk of damaging the wellbore, providing safer operations and enabling future interventions. As a result, reservoir drainage is optimized and the economic lifespan of wells and fields is prolonged. ENVIRONMENTAL BENEFITS One of Welltec s key values is to provide solutions that minimize negative impacts on the environment. This is achieved by building small equipment for performing interventions, resulting in less emissions and a reduced carbon footprint. Welltec s solutions can even be transported by helicopter minimizing both impact on the environment and mobilization time. INHERENTLY SAFER OPERATIONS As a company, Welltec continuously strives to increase safety. During operations, this translates into using fewer people, requiring a reduced number of lifts and eliminating the need for explosives. At locations with limited space, such as small off-shore platforms, between decks, and Light Intervention Vessels, Welltec s e-line solutions offer improved logistics and reduced safety risks. FEATURES E-line conveyed milling system Weight on bit control Control of reactive torque No circulating systems required Very low risk of reservoir damage Improved depth determination Passive fail-safe system BENEFITS Reduced personnel Reduced heavy lifts Cost-effective Minimum logistics Returns well to production faster Reduced risk of damaged tubulars Reduced risk of fishing Increased flexibility 8 9

6 TOOLS MILLING SOLUTIONS SPECIFICATIONS WELL MILLER FOR VALVE OPENING VR BSR WELL MILLER FOR VALVE OPENING 2 1/8 BODY TOOL OD 3 1/2 The Well Miller for Valve Opening restores production to wells with malfunctioning valves. When a control line fails or a valve doesn t open, it affects both production and wellbore access below the valve. Welltec offers a solution to restore the flow path. The Well Miller Valve Removal (VR) tool can rapidly mill through flapper valves, half and full-ball valves and isolation valves made of high tensile steel, chrome, super chrome, and incoloy and inconel to establish or increase production. The Well Miller Ball Seat Removal (BSR) tool has been designed especially for milling out balls and ball seats to increase flow and allow access to lower completions. Welltec has successfully milled out balls and ball seats made of cast iron and composite materials. Valve opening operations with the Well Miller are run in combination with the Well Tractor to apply weight-on-bit as necessary and to counter reactive torque. Types of jobs Milling of Flapper valves Isolation valves Half-ball valves Full-ball valves Balls and ball seats Glass plugs 10 ft LENGTH 12.2 ft 70 lbs WEIGHT IN AIR 95 lbs 2.25 BIT SIZES kpsi MAX. WELL PRESSURE 25 kpsi 302 F MAX. TEMPERATURE, UP TO 338 F 36,000 lbs TENSILE STRENGTH 42,000 lbs 30,000 lbs COMPRESSIVE STRENGTH 50,000 lbs 10 11

7 YOU CAN HAVE THE MOST DIFFICULT OBSTRUCTIONS WE LL REMOVE IT WITH A DOWNHOLE MACHINE SHOP 12 13

8 CUSTOMIZED SOLUTIONS ADAPTED TO THE SPECIFIC WELL ENVIRONMENT Each and every well is unique. Perhaps the hardware which goes into the well is the same, but the reservoir encountered, the forces put on the completion during installation, the variation in the drilling and completion fluids, and so forth combine so that each well has a unique nature. Welltec recognizes this and proudly compensates for it by providing the capability to tailor solutions to fit the characteristics of each specific well. Each job is pre-planned using custom software to model the potential environment and then the results are used to ensure proper tool design. For milling solutions, system integration tests (SITs) are a standard part of ensuring that the designed solution will be effective upon implementation. Perhaps the most important aspect is Welltec s experience. For years Welltec has been successfully applying milling solutions to clean scale, open faulty or malfunctioning valves, and remove plugs and obstructions. Experience combined with flexibility and a drive to excel ensures success

9 CASE STORIES FOR MILLING SOLUTIONS WITH PROVEN RESULTS IN A WIDE VARIETY OF ENVIRONMENTS AND THE ABILITY TO TAILOR SOLUTIONS TO YOUR NEEDS, WELLTEC OFFERS A FAST, EFFICIENT OPTION FOR ENABLING INITIAL PRODUCTION OR RETURNING WELLS TO FULL POTENTIAL AS ILLUSTRATED BY THE FOLLOWING CASE STORIES. BALL CATCHER SUB MILLING ON E-LINE In Canada a dual lateral, open hole, multi-stage well was experiencing problems with a ball catcher sub suspected of restricting production. Capitalizing on our track record, Welltec was contacted for a swift resolution that would not damage the fluid sensitive formation. The Well Tractor 218 and a Well Miller 212 Ball Seat Removal (BSR) milled out the ball catcher sub in one fourth of the time it would have taken alternatve solutions. The operator also asked to mill out the ball seat, which was done in the same run using the same toolstring. MIL.ON.CA V1 MILLING FLAPPER VALVE IN 20 MINUTES SUBSEA In Equatorial Guinea, an aluminum flapper valve needed to be opened, but despite multiple pressure cycles, the valve remained closed. Due to the estimated volume required, the operator did not want to use acid to disintegrate the valve. Thus a Well Miller fitted with a custom tungsten carbide bit was mobilized. The bit was designed to prevent the flapper valve from opening when pulling back. After just 20 minutes the flapper valve was successfully milled through. MIL.SUB.AF V1 WORLD S FIRST NIPPLE PROFILE MILLING WITH 218 E-LINE TOOLS Offshore Norway, an operator needed to remove a restricting nipple profile to run an inflatable plug. Welltec was selected due to our track record of precision milling. Thorough pre-job planning was done before mobilizing the Well Tractor and Well Miller NPR. Two custom bits were manufactured and the toolstring passed successfully through the nipple profile using only the first. Using e-line equipment, the operator removed the restriction, set a straddle packer and restored the well to production in just a few short days. MIL.OFF.NO V1 MILLING DEEP-SET PLUG BULLNOSE ON E-LINE, RLWI An operator wanted to regain communication with the lower zone to increase production in a North Sea subsea well. It was shut off by a retrievable bridge plug that was elected not to be retrieved to surface due to risk of sticking. After the original plan to release it failed, the team decided to mill through the bridge plug and Welltec delivered a swift, tailored solution. The operation was a world s first, performed as RLWI, successfully reestablishing communication with the lower zone and increasing oil production significantly. MIL.ON.US.12.5.V

10 WELL MILLER REPLACES RIG WORK OVER When a well was deemed inoperable due to a leak below a frac sleeve, innovative thinking was required. The sleeve had been stuck in the SSSV for 22 years despite attempts by CT and slickline to remove. Different solutions for the Well Miller were tested before settling on a core drill bit with a built-in centralizer. After 4 1/2 hours of milling, the frac sleeve retaining material was completely removed and it was successfully pulled. The effectiveness and small footprint saved about 96% in costs and six days of time compared to a rig workover. MIL.ON.US.12.5.V1 RIGLESS INTERVENTION ACCELERATES PRODUCTION For two wells, offshore Malaysia, the operator called Welltec to overcome downhole challenges. In the first well a cement wiper plug obstructed the ability to perforate. The Well Stroker pushed it through a nipple and then the Well Miller freed it in order to push it to the bottom, accessing the required zone. On the second well, a poor cement job made the primary target zone inaccessible. Using the Well Tractor and Well Miller the obstruction was pushed down allowing for sidetracking and further reservoir access. MIL.OFF.MA V1 AN UNUSUAL CATCH: FISHING CABLE WITH THE WELL MILLER NORTH AFRICA FLAPPER VALVE MILLING A 54 deviated, dry, gas well experienced a malfunctioning downhole flapper valve. Intervention was complicated by limited access, temperatures up to 303 F, 4% H2S and 4 mol% CO2 content in addition to low reservoir pressure. The operator turned to Welltec to open the flow path. Welltec mobilized a Well Tractor 318 and a Well Miller 318, which successfully milled through the flapper valve in ~ 40 minutes without introducing fluids. Then, a Welltec Access Sleeve (WAS) was set in the milled out flapper to ensure easy entry/reentry. MIL.OFF.TN V1 An operator offshore Equatorial Guinea had to recover a dropped toolstring and about 2,600 ft. of cable from a well. Slickline had recovered approximately half of the cable but had been unable to make any further progress or getting below 9,500 ft due to a plug of cable and some fine sandy emulsion. The Well Miller drilled out some of the cable and sand plug, capturing it as well as breaking it up. The well was cleared down to 12,700 ft and returned to production. MIL.OFF.AF V

11 MILLING IRON SULFIDE SCALE An operator needed to set a retrievable bridge plug to perform well head maintenance in a well with high levels of H2S. Iron sulfide scale buildup prevented the plug from reaching target depth. Welltec dispatched a Well Tractor, Well Miller for Scale Removal and several, custom milling bits. Working in a dry environment, the Well Miller and the Well Tractor removed 1,700 ft of iron sulfide scale in one day. The same e-line unit was used to set the bridge plug, reducing costs and carbon footprint versus conventional operations. MIL.ON.CA V1 IN-SITU BALL SEAT MILLING A ball seat (3.5 ball with seat) was run in a completion in the North Sea. The ball and seat required removal after the stimulation job for which the Well Tractor and Well Miller were deemed the best solution. As this was the first time a ball seat of this type was to be removed by e-line milling, the operation was carefully tested onshore. The ball and ball seat, which was located at 12,647 ft MD, were successfully removed in one run with a total milling time of only 15 minutes. MIL.SUB.NO V1 SIX MINUTE NIPPLE MILLING Welltec was tasked by a major operator to mill a nipple profile from 3.75 ID to 3.80 ID. After weeks of planning, the first field profile milling was performed in Alaska. After only six minutes of downhole milling with the Well Miller NPR, the milling bit had successfully broken through the nipple profile. The milled out spot was then drifted with the same toolstring, passing 10 ft of tool through the nipple, before recovering it to surface. MIL.ON.US V1 MORE CASE STORIES CAN BE FOUND AT SOLUTIONS 20 21

12 SPE PAPERS ON MILLING SOLUTIONS SPE New Method for Milling Flapper Valves on E-line in Dry Environments by Almir Dulic, Welltec, presented at SPE/ICOTA in Houston, TX, SPE Downhole Machining with Electric Wireline Technology by Irwin Bermawan, Indah Primasari, Risal Rahman and Ramadhani Rachman, Total E&P Indonesia, Vera Carolina and Rigel Aldebaren, Welltec, presented at SPE/ICOTA in Houston, TX SPE Milling Faulty Lubricator Valve Using Innovative E-Line Conveyed Core Bit by Wong Chun Seng, Bryan Maitland, Jagdish Singh, Joint Development Area Operating Company; Mohamed Ibrahim Elnaeim, Welltec presented at the SPE/ICoTA held in Woodlands, Texas, SPE E-line Heavy Workovers in High Latitude Environments by Brian Sidle, SPE, Rick Crist, Kirill Kir sanov, Igor Novikov, Jeremy Albright, SPE, Jeremy Ray, Welltec presented at the SPE Arctic and Extreme Environments Conference & Exhibition held in Moscow, SPE Electric-Line Milling System Removes Stuck Frac Sleeve without Damaging the Subsurface Safety Valve Landing Nipple by Josiah Igwe, BP; Carl Diller and Robert (Bob) Harris, Northern Solutions; and Jeremy Albright and Jesper Lykkebo, Welltec, presented at the SPE/ICoTA, The Woodlands, TX, SPE PP Recent Achievements within Electric Line Milling by Anthony MacLeod; James Greenlee, SPE, Kristine Henriques, SPE, all Welltec, presented at SPE Canadian Unconventional Resources Conference held in Calgary, Alberta, SPE Milling of an Electric Line Obstruction with Electric Line Conveyed Technology by Almir Dulic, Welltec, Bruce McIninch and Mickey Mullin, Marathon Oil Corp presented at the SPE/ICoTA, The Woodlands, TX, IPTC A Pragmatic Approach to Enhanced Performance of Slim Mono-Bore Wells by Lam Fei Shiong, Welltec, presented at the IPTC, Bangkok, SPE Light Well Intervention Scale Milling Enables Reservoir Access By Bronson Larkins (BP) and Donald Mitchell, Welltec, presented at the SPE/ICoTA, The Woodlands, TX, SPE Practical Aspects of In-Situ Ball Seat Milling by Helge Halvorsen and Michael Macdonald Arnskov, Welltec, presented at SPE/ATCE, Denver, CO, SPE Riser Less Well Intervention for Subsea Work Over by Terje Skeie, Øyvind Hjorteland and Michael Macdonald Arnskov, Welltec, presented at the Brazil Offshore, Macaé, SPE Nipple Profile Milling with Electric Wireline by Brian Schwanitz, Antonius Aji and Joe Collins, Welltec, presented at the SPE/ICoTA, The Woodlands, TX, SPE Successful Milling and Removal of a Permanent Bridge Plug with Electric Line Tractor Conveyed Technology by Stephen Stragiotti (StatoilHydro) and Ole Edvin Karlsen, Welltec, presented at the SPE/ICoTA, The Woodlands, TX, SPE Electric Wireline Milling - New Solutions for New Challenges by Bob Joyce, Welltec, presented at the SPE/IADC, Amsterdam,

13 Copyright 2017 Welltec A/S All rights reserved. No part of this publication may be reproduced in any form without the written permission of Welltec A/S. Welltec, Well Tractor, Well Stroker, Well Key, Well Cleaner, Well Miller, Welltec Release Device, Well Cutter, Welltec Puncher, Welltec Flow Valve, Welltec Data Monitoring and Welltec Annular Barrier are trademarks of Welltec A/S and may be registered in Denmark and/or in other countries. All products are protected by patents or patent pending.

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