VIRTUAL HYDRAULICS. Now your window on the downhole behavior of high-performance fluids is even clearer

VIRTUAL HYDRAULICS Now your window on the downhole behavior of high-performance fluids is even clearer F L U I D S E N G I N E E R I N G

The VIRTUAL HYDRAULICS* package allows M-I SWACO* engineers to generate realistic, top-to-bottom snapshots of the well at any point in time and for different operations precisely the kind of information essential for assessing downhole conditions during the well s planning stages and later during drilling operations. The system makes it possible to use a gamepad or keyboard to interactively navigate through a virtual well and allows the user to critically examine and analyze downhole hydraulics calculated by VRDH and VH RHECON modules. Features Sophisticated planning and re-planning tools for effective Equivalent Circulating Density (ECD) management and hydraulics optimization Robust steady-state and transient hydraulics models developed and validated using field measurements for conventional rotary and coiled-tubing drilling applications Trademark snapshot-style graphics including downhole profiles of ECD, Equivalent Static Density (ESD), circulating temperature, rheological properties and holecleaning efficiency Innovative data cube method for maximum use of conventional and High-Temperature, High- Pressure (HTHP) rheological properties Optimum tripping/casing schedules including provisions for complex auto-fill equipment Interactive 3-D visualization to critically examine steadystate and transient downhole hydraulics while navigating a virtual well on a field-issue PC Benefits Guiding decision-making during planning and drilling phases by providing realistic hydraulics assessments and projections based on real-world conditions Reducing rig time and well costs by optimizing operating conditions and providing a quality wellbore Minimizing rig time and mitigating loss circulation while running casing, especially when clearances are tight and drilling windows are narrow Maximizing performance and minimizing costs of premium water, synthetic- and oil-base systems Maximizing multi-disciplinary collaboration through effective graphics and 3-D visualization Enhancing QHSE by providing safe operating guidelines and sophisticated parametric analyses

VIRTUAL HYDRAULICS delivers the power to know more, see more, do more A P P L I C A T I O N S All types of critical wells, especially deepwater, HTHP, extended reach and those drilled with synthetic- or oil-base muds. P R O B L E M S Narrow drilling windows, lost circulation, wellbore instability, extreme temperatures, temperature- and pressure-sensitive drilling fluids, hole cleaning, barite sag, complex displacements, poor bit hydraulics, tight casing clearances and high rig rates. S O L U T I O N S Effective ECD management, optimized well planning and tripping/casing schedules, dynamic reconnaissance ahead of the bit, interactive 3-D visualization and accurate downhole profiles for drilling, tripping and casing operations. E C O N O M I C S Reduced NPT, lower drilling and mud costs, fewer drilling problems, optimum drilling efficiency, improved wellbore quality and enhanced multi-disciplinary collaboration. E N V I R O N M E N T A L Maximum well control and safety and reduced environmental concerns. Today s critical wells simply cannot be drilled efficiently, economically and safely without proper engineering of downhole hydraulics. Narrow drilling windows, wellbore instability, extreme temperatures (high and low), temperature- and pressure-sensitive drilling fluids, tight casing/hole clearances, hole cleaning and barite sag are among the most serious concerns. Premium, fit-for-purpose M-I SWACO drilling fluids and equipment run by experienced wellsite and project engineers are essential basic tools for contending with these drilling issues. However, harsh downhole conditions and aggressive drilling operations invariably dictate the need for an additional tool powerful, hydraulics software for planning, monitoring, evaluating and optimizing the drilling program. No hydraulics software available in the industry does this better than the VIRTUAL HYDRAULICS package, an integral part of the world-class service offered by M-I SWACO. Global application of VIRTUAL HYDRAULICS software is a testament to its ability to accurately model downhole conditions during drilling, tripping and casing operations. ECD and ESD calculations are continually validated by Annular Pressure-While- Drilling (APWD) tools in a wide range of critical drilling applications. The VIRTUAL HYDRAULICS package also makes it possible to successfully run casing in wells that otherwise could expect massive losses. With its introduction in 1995, VIRTUAL HYDRAULICS software quickly became the standard against which all industry hydraulics programs are compared. It still is despite concerted attempts by many to match its capabilities and added value. No other software suite delivers better models and parametric analyses for effective ECD management, optimized well planning and intervention and accurate downhole profiles for drilling, tripping and casing operations. And no other package provides the dynamic reconnaissance simulations involving complex scenarios that are readily available for optimizing hydraulics ahead of the bit. Moreover, only the VIRTUAL HYDRAULICS suite of programs provides the stunning, patent-pending 3-D visualization graphics of downhole hydraulics that allow multidisciplinary teams the power to know more, see more and do more clear evidence that M-I SWACO continues to raise the bar.

Rock-solid from top to bottom and beginning to end Many attributes characterize worldclass software, and the VIRTUAL HYDRAULICS package has them all technical competence, reliability, usability, scalability, expandability and availability. It truly is rock-solid from top to bottom and beginning to end. The underlying strength of VIRTUAL HYDRAULICS is its efficient use of finite difference methods, which involves subdividing the well into short segments, each with its own unique set of properties. The segmented data are integrated into all VIRTUALHYDRAULICS modules through software libraries and a relational database. Combining data for these segments allows M-I SWACO engineers to generate realistic, topto-bottom snapshots of the well at any point in time and for different operations precisely the kind of information essential for assessing downhole conditions during the well s planning stages and later during drilling operations. For example, imagine lowering a viscometer into a well to measure the rheological behavior of fluid under Depth 1 2 3 4 5 6 7 Geometry MD/TVD Csg OD/ID (in) 25 25 2. 19.124 1995-25 M-I L.L.C. Angle ( ) 45 9 *Mark of M-I L.L.C. VIRTUAL HYDRAULICS* SnapShot* Density (lb/gal) 12. 12.4 12.8 RHELIANT Gulf of Mexico Drilling 1.5-in hole at 12,' PV (cp) YP, LSYP (lb/1ft²) 12 24 36 48 downhole shear rates, temperatures and pressures as drilling progresses. The VIRTUAL RHEOLOGY* module allows just that. It combines data from both laboratory and field viscometers to accurately estimate fluid Temperature ( F) 8 12 16 VIRTUAL HYDRAULICS and PRESSPRO RT a unique, win-win combination MD: 12 TVD: 8391 Bit Size: 1.5 Date: 2/1/26 VIRTUAL HYDRAULICS (Planning) Va (ft/min) ft ft in 3 6 VRDH VH PLAN TRIPPRO The true power and breadth of the M-I SWACO hydraulics software suite is crystallized in the combination of VIRTUAL HYDRAULICS and the PRESSPRO* RT wellsite engineering service. PRESSPRO RT software is essentially a real-time version of the VIRTUAL HYDRAULICS software that uses surface measurements at the wellsite rather than manually input data to calculate downhole pressure profiles and fluid behavior during drilling and tripping operations. Operator: Sample Oil Company Well Name: Offshore Well #1 Location: Gulf of Mexico Country: US Hole Clean Index VG G F P Pressure Distribution (%) Bit = 23 Ann = 4.9 DS = 72.1 Drilling Fluid RHELIANT Weight 12 Mud lb/gal Test Temp 9 F System Data Flow Rate 8 gal/min Riser Flow 2 gal/min Penetration 125 ft/hr Rate Rotary Speed 5 rpm Weight on Bit 4 1 lb Bit Nozzles 16-16-16-16-16 - - - - VH RHECON (Bridge) NAVIGATOR (Visual link) PRESSPRO RT (Real time) DRILLPRO RT SNAPSHOT RT TRIPPRO RT The VH RHECON component, which uses input data in transient settings, is the effective bridge between the two major applications. And the NAVIGATOR module is the visual link. This incomparable suite of programs is ideal for the planning, monitoring, evaluating, optimization and collaboration required to successfully tackle today s critical wells. And it is only available from M-I SWACO. rheology and to provide a downhole window on the behavior of highperformance drilling fluids. If needed, adjustments can be made quickly on fluid properties, surface-control equipment, and/or drilling practices to optimize fluid system performance. The VRDH* (Virtual Rotary Drilling Hydraulics) module is the workhorse. Its function is to orchestrate calculation of all the profiles and produce the ubiquitous, strip-chart-like SNAPSHOT* graph that is the template for most VIRTUAL HYDRAULICS graphics. Downhole ECD, ESD, fluid temperature, rheology, annular velocity and hole-cleaning efficiency are among the more critical SNAPSHOT profiles. Pressure Losses 8 8 749 13.375 12.347 Modified Power Law String 234 psi Drill MWD 359 psi 9 Motor 288 psi Bit 736 psi Bit On/Off psi 1 1 834 11.75 L 1.625 Annulus 156 psi Surface Equip 95 psi U-Tube Effect 48 psi 11 12 13 12 8391 1.5 ESD ECD ECD+Cut PV YP LSYP Annulus Drill String Top Btm Top Turb Lam Turb HCI Bed Ht % Bed Vol % 1 Total System 3986 psi ESD ECD +Cut Csg Shoe 12.5 12.26 12.37 TD 12.6 12.41 12.52 VRDH - Version 3. File - Sample.MDB VIRTUAL HYDRAULICS software generates a veritable SNAPSHOT of downhole parameters as ECD, ESD, hole cleaning, temperature and downhole rheology, making analysis quick and easy.

The hole-cleaning index and annular velocity profiles are enhanced by superimposing cuttings bed height and 3-D flow regimes, respectively. Finally, typical pressure calculations are displayed numerically for easy access. Casing program, well inclination and formation lithology complete the SNAPSHOT profile and put everything into proper perspective. The VH PLAN* module is a constant reminder that good well performance starts with good hydraulics planning. Relevant critical parameters are considered individually and with regard to other parameters, and final results are presented graphically to provide a clear picture of criteria, options and interactions. These graphics are perfect for sharing information among the entire drilling team. The OPTIPRO* module takes hydraulics optimization a step further. Fluid rheology can be considered part of the optimization scheme, rather than part of the input data. The OPTIPRO software scans a wide spectrum of rheological properties generated from a large database of field data and recommends rheological properties that are fit-for-purpose within the well constraints. As expected, it also generates optimum flow rates and recommends bit nozzles for the designed fluid to ensure proper hole cleaning and bit hydraulics. The TRIPPRO* module is used to analyze and generate optimum tripping and casing schedules. Used in both the well planning and drilling phases, the module easily handles transient analyses based on the effects of acceleration, velocity and deceleration. It also accounts for depth- and time-dependent downhole temperature and the resulting effects on pressure, density, rheology and gel strength. These capabilities, combined with provisions for complex auto-fill equipment, make TRIPPRO software an indispensable tool for optimizing casing-liner operations in deepwater projects. Depth 111 112 113 114 115 116 117 118 119 12 121 Flow Rate (gal/min) 2 4 Qopt Qmin Qmax Qrec TFA (in²).2.4 1995-25 M-I L.L.C. *Mark of M-I L.L.C. VIRTUAL HYDRAULICS* VH PLAN* ROP (ft/hr) 1 11 12 13 Desired Controlled Desired Parameters Pump Pressure: 5 psi ROP: 1 ft/hr ECD @Shoe (lb/gal) ECD @TD (lb/gal) Pump Pressure(psi) 12.64 12.56 12.48 12.4 12.32 12.24 4 6 8 1 12 12.64 12.56 12.48 ROP 25 ft/hr 12.4 ROP 5 ft/hr ROP 75 ft/hr 12.32 ROP 1 ft/hr ROP 125 ft/hr Fracture Grad 12.24 4 6 8 1 12 8 6 RHELIANT Example Gulf of Mexico Sample SnapShot ECD @Shoe ECD @TD Pump Pressure 4 ROP 25 ft/hr ROP 5 ft/hr ROP 75 ft/hr 2 ROP 1 ft/hr ROP 125 ft/hr Max Pump 4 6 8 1 12 Total Depth: 12 TVD: 8391 Bit Size: 1.5 Date: 2/2/26 ROP 25 ft/hr ROP 5 ft/hr ROP 75 ft/hr ROP 1 ft/hr ROP 125 ft/hr Fracture Grad ROP (ft/hr) Hole Clean Index Hydraulic Horsepower (hhp) 16 12 8 4 1..75.5.25 4 6 8 1 12 16 12 8 4 ft ft in Operator: Super Oil Company Well Name: Deep Sea Offshore Project Location: Garden Banks Country: US Critical Hole-Cleaning Flow Rate 2 4 6 8 1 12 Critical Hole Clean Index Bit HHP and Impact Force Hydraulic Horsepower Impact Force 2 4 6 8 1 12 The VH PLAN module facilitates good hydraulics planning by graphically presenting relevant critical parameters to provide a clear picture of criteria, options and interactions. VIRTUAL HYDRAULICS* SurgePro* Depth Well Geometry MD/TVD Csg OD/ID (in) 2 4 6 8 1 12 14 16 18 2 22 4845 4844 17368 14889 265 1731 1.72 9.72 1.75 9.56 11. 1995-25 M-I L.L.C. Casing/Liner Mud Weight: 13.6 lb/gal *Mark of M-I L.L.C. NOVAPLUS Temperature: @68 F Liner@265'closed PV: 48 cp Casing Shoe: 17368 ft YP: 15 lb/1ft² Total Depth: 265 ft LSYP: 7 lb/1ft² Angle PV (cp) Temperature Minutes / Joint ( ) YP, LSYP (lb/1ft²) ( F) 3 6 9 4 8 12 PV YP LSYP 6 12 18 Start End 2 4 13.4 13.6 13.8 Start End 13.6 14. 14.4 14.8 Shoe TD ROP 25 ft/hr ROP 5 ft/hr ROP 75 ft/hr ROP 1 ft/hr ROP 125 ft/hr Trip Time: 17.77 hr Operator: Super Oil Company Maximum LOT: 14.5 lb/gal Well Name: Deep Sea Offshore Project Max ECD @Shoe: 14.55 lb/gal Max ECD @TD: 14.48 lb/gal Location: GARDEN BANKS Max ECD OH: 14.55 lb/gal Country: US ESD Fixed Gauge Dyn Gauge Depth (lb/gal) (lb/gal) (lb/gal) 12 16 2 24 Many operators will not run drill pipe or casing until they see the data and recommended running speeds generated with the TRIPPRO module. Bit ft ft 72 54 36 18 Impact Force (lb) 2 4 6 8 1 12 14 16 18 2 22

The VH RHECON* module is a powerful transient version of the VRDH component that uses many of the complex models also required for the TRIPPRO module. While the well is being drilled, VH RHECON software can execute dynamic reconnaissance simulations to optimize hydraulics ahead of the bit. This allows changes in fluid properties and drilling operations to be made to improve performance and/or mitigate expected problems. Originally available in realtime ECD management software offered by M-I SWACO, this module provides animated displays and hardcopy printouts to facilitate detailed analysis. The VH RHECON module can simulate a wide range of complex operational sequences, including drilling, sliding, circulating, tripping and sweep operations designed to remove excess cuttings or beds from the wellbore. The VH RHECON module executes dynamic reconnaissance simulations while drilling is under way to show what the bit is going to encounter as the drilling program progresses. VH PLAN VH RHECON VIRTUAL HYDRAULICS VRDH TRIPPRO DRILLPRO RT NAVIGATOR SNAPSHOT RT PRESSPRO RT TRIPPRO RT The innovative VIRTUAL HYDRAULICS NAVIGATOR* 3-D visualization system was developed by M-I SWACO to create a virtual window into downhole hydraulics and related issues. The concept is the perfect marriage between advanced drilling technology and the magical world

of 3-D computer graphics. The VH NAVIGATOR module makes it possible to interactively navigate through a virtual well and critically examine and analyze downhole hydraulics calculated by VRDH (snapshot case) and VH RHECON (transient case) modules on a standard-issue laptop or PC using a gamepad or keyboard. Invaluable as an analysis tool, the VIRTUALHYDRAULICS NAVIGATOR module is also a great training tool for office-based and field personnel, as well as non-drillers. Numerous other modules are available in the VIRTUAL HYDRAULICS suite to handle specific issues for targeted wells or to facilitate the understanding of downhole hydraulics. Among the basic functions are: Static density profiles based on unique PVT characteristics and downhole temperatures Measured ECD vs Calculated ECD Depth 1, 2, 3, 4, 5, 6, 7, 9 1 11 12 13 14 15 Equivalent Density (lb/gal) Mud weight in Measured ECD by PWD Calculated ECD at PWD In wells worldwide, the calculated ECDs obtained with VIRTUAL HYDRAULICS software are consistently close to the measured values recorded with PWD tools. Fully transient drilling-fluid temperature profiles under dynamic and static conditions Sensitivity analyses of hole-cleaning parameters based on comprehensive hole-cleaning models that combine effects of drillstring rotation and eccentricity with variable downhole fluid density and rheologies. Models are based on both laboratory and field measurements, with synergistic coupling among fuzzy logic, semiempirical and analytical methods. Volume requirements, leak-off pressures and equivalent densities while accounting for temperature- and pressure-dependent fluid density Fluid volume changes and trapped annular pressures based on temperature and pressure changes in highand low-temperature environments For case histories and well reports that show how VIRTUAL HYDRAULICS software and high-performance fluids, equipment and services are helping operators achieve success in the face of challenging conditions, please contact your local M-I SWACO representative. To find out how our revolutionary software and real-time monitoring service are benefiting operators the world over, contact your local M-I SWACO representative.

P.O. Box 42842 Houston, Texas 77242-2842 Tel: 281 561 13 Fax: 281 561 1441 www.miswaco.com E-mail: questions@miswaco.com Technology Centers: HOUSTON, TEXAS Tel: 281 561 13 Fax: 281 561 1441 ABERDEEN, SCOTLAND Tel: 44 1224 334634 Fax: 44 1224 33465 STAVANGER, NORWAY Tel: 47 51 5773 Fax: 47 51 5765 This information is supplied solely for informational purposes and M-I SWACO makes no guarantees or warranties, either expressed or implied, with respect to the accuracy and use of this data. All product warranties and guarantees shall be governed by the Standard Terms of Sale. Nothing in this document is legal advice or is a substitute for competent legal advice. 26 M-I L.L.C. All rights reserved. *Mark of M-I L.L.C. FBR.223.68.R1 (E) 2M Litho in U.S.A.