Peak Well Systems Steve Moir

Well Abandonment Offline Preparation via Slickline February 2013

Introduction

Established in 2002

Specialist in the design, testing, and manufacture of downhole well systems

Growing patent portfolio

World class lean manufacturing

ISO 9001 certified

Working towards certified OHS&E Management System – ISO 18001 and 14001

SME Technology Exporter of the Year (2010)

Field well intervention capability

Small, independent, focused, and very committed

Perth, Australia Headquarters & Main Manufacturing Facilities

Aberdeen, Scotland Office & Workshop Kuala Lumpur, Malaysia

Technical Sales Office

Peak Well Systems

Simplicity - User friendly designs mean our products are easy to deploy as well as being field redress-able

Improved Functionality - Products with more functionality and interchange-ability can reduce inventory whilst still improving well performance

Strength - Superior designs coupled with the latest materials technology enables Peak products to withstand the harshest environments

Reliability - Peak tools have an unrivalled track record of dependability, even in the most challenging wells

Cost Effectiveness - Peak products consistently deliver the best long-term returns for clients

Product Portfolio

Our Products

Flow Control – SIM System

Fishing Tools

Debris Recovery/Removal System

Toolstring Utility Slickline Tools

Flow Control SIM System

Flow Control SIM System

Slickline set nipple-less flow control system that can be used to set a suite of tools at any position within a given tubing size

Deployed via SIM System running tool

SIM = Slickline Installed Mechanical Set

Standard Slickline package deployment means easier logistics in remote locations,

Advanced mechanical setting mechanism eliminates the need for complex setting tools, batteries, motors, pyrotechnics, or explosives

Modular & Multi-Functional – Straddles, Gauge Hangers, etc With Same Base Assemblies & Same Setting Tool

User friendly – Easily redressed in remote locations

Cost effective – Low overall operational cost, easy deployment, and safe setting method

SIM System Applications

Retrievable Plug and

Prong

LBGH / SIM Hanger Straddle Permanent

Plug

Mechanical Leak

Detection Tool

Collision barrier during drilling

ops

Wellhead isolation

Water or gas

shut-off

Packer setting and tubing

testing

Anchoring device for

gauges, stack-up perf guns

Pin-point data

acquisition

Barrier to prevent

unwanted movement of abandoned

equipment in flowing wells

Isolate water

zones or unwanted gas

flow

Isolate a hole in tubing

Isolate a leaking device within the

tubing (SPM, SSD, etc.)

Permanent zonal

isolation

Barrier for P&A

Squeeze and fracturing work

Leak detection device, which can be reset a

number of times without the need

to pull back to surface

SIM System Applications

SIM System Running Tool

Collet Fingers Latch into SIM device

Radial Indexing Mechanism

Drag Spring Assembly Interfaces with tubing to allow indexing

Serrated Slips Bite into tubing wall and provide anchor for setting Adjustment

Sleeve Secures running tool

to SIM device

SIM System Technical Specifications

Base material

Elastomer material

Max. temperature rating

Max. pressure rating

Thru-bore of plug

Min. restriction tool can pass

17/4 PH Stainless Steel (NACE MR0175 Spec)

HNBR

Std. 350˚F (400˚F under trial)

7500 psi - 5,000 psi

2 3/8” N/A 2 7/8” 50/64ths 3 1/2” 1.26” 4 1/2” 2.00” 5” 2.00” 5 1/2” 2.360”

2 3/8” 1.840” 2 7/8” 2.250” 3 1/2” 2.750” 4 1/2” 3.680” 5” 4.080” 5 1/2” 4.560”

SIM System Technical Specifications (continued)

Nominal setting ID

Straddle lengths

Special treatments

Equalising options

2 3/8” 4.6 ppf 2 7/8” 6.4 ppf 3 1/2” 9.2 ppf 4 1/2” 11.6 - 15.1 ppf 5” 15.0 - 18.0 ppf 5 1/2” 15.5 - 20 ppf

5ft, 7.5ft, and 10ft

Electroless nickel plating (ENP)

Prong, bi-directional, debris tolerant Melon, bi-directional, clean environment Pump Out Plug, uni-directional, debris tolerant

When the SIM Plug is fitted with an elastomeric element and run with a prong, it will then act as a bi-directional plug

Applications

Collision barrier during drilling operations

Wellhead isolation

Zonal isolation for water shut-off

Zonal isolation to prevent cross flow or comingling

Packer setting and tubing testing during completions

Tubing integrity testing

SIM System Retrievable Plug and Prong

Old zone to be isolated

Retrievable plug set as barrier

Flowing zone

SIM System Large Bore Gauge Hanger (LBGH)

In its simplest form the SIM Lock can be used as a carrier for downhole tools. In such applications it maybe used for carrying pressure / temperature gauges . The advantage of the SIM Lock in all cases is that it allows the tool being conveyed by the SIM Lock to be placed as close as is desired to the area for pin-point data acquisition.

SIM System - SIM Hanger

Setting options; Mechanically on slickline (SIM Running Tool), coiled tubing, or E-line

Extreme high load capacity, ideal for high flow rate wells or high weight stack-up applications

Large through bore for increased flow rate

Compact design, ideal in height restricted rig-ups

Lower connection options to suit customer’s needs

Applications

To pin-point real time and memory data acquisition

Anchoring device to provide a platform for suspension of stack-up perf guns, swellable packers, sampling gauges, etc.

As a barrier to prevent unwanted movement of abandoned equipment in flowing wells

LBGH

Gauges suspended directly above zone

of interest

Producing zone

Nipple positioned above zone of interest

SIM System Large Bore Gauge Hanger

SIM System Choke

In its simplest form the SIM Lock can be used as a carrier for downhole tools. In such applications it maybe used for carrying pressure / temperature gauges . The advantage of the SIM Lock in all cases is that it allows the tool being conveyed by the SIM Lock to be placed as close as is desired to the area for pin-point data acquisition.

SIM System - SIM Hanger

The SIM Plug body when set, is able to receive an independently recoverable Downhole Choke thus allowing the SIM Plug to be used to choke back well fluids as desired

The downhole choke can be recovered to surface without recovering the plug body

The choke can be recovered and resized to meet flow requirements without the added runs required to pull and re-set the plug – reducing further runs / time and also removing plug redress cost

Applications Control oil or gas flow between two or more sands to control

cross flow and improve overall reservoir performance

To control gas flow from a gas reservoir below an existing oil reservoir and provide natural gas lift

To control fluid flow from differing reservoirs to give a controlled fluid mix from the well, i.e., to balance gas dilutions between high and low CO2 content gases

Lower gas producing or high

CO2 producing zone

Retrievable plug set as barrier

Upper oil producing

zone Interchangeable

choke

Seal

SIM System Straddle

SIM Plug can be fitted with straddle tubes between an upper and lower packer to provide isolation across the straddled zone

No requirement for a different SIM device

Has a unique selective latch mechanism on each straddle connector to allow the tubes to be recovered one at a time should the straddle needs to be retrieved – critical for safety purposes when trying to recover the straddle section back into the lubricator

Applications

Isolate water zones or unwanted gas flow

Isolate a hole in tubing

Isolate a leaking device within the tubing, i.e., SPM, SSD, etc.

Lower producing sand

Upper producing sand

Zone to be isolated

Seal

Seal

SIM System Gas Lift Straddle

Incorporates a Gas Lift Choke Sub / Connector within the straddle system providing controlled gas flow from the gas zone straddled behind

The choke can be resized by recovering the upper straddle tube, if required

Has a unique selective latch mechanism on each straddle connector to allow the tubes to be recovered one at a time should the straddle needs to be retrieved – critical for safety purposes when trying to recover the straddle section back into the lubricator

If more than one straddle tube are recovered, it may not be possible to function the Xmas Tree valves, thus creating a safety hazard

Lower producing sand

Upper producing sand

Gas producing

zone

Seal

Seal

Integral Gas Lift Sub

SIM System Leak Detection Tool

The SIM Leak Detection Tool is designed to create a temporary sealing barrier to enable a surface pressure test to ascertain a potential leak path between the tubing and annulus.

■ Features & Benefits

■ Leak Detection device which can be reset a number of times without the need to pull back to surface

■ Multiple setting capability reduces NPT by allowing the leak to be pinpointed quickly, minimising wireline runs

■ Holds pressures of 1500 psi @ 350F from above

■ The integral self-equalising device allows the pressure to equalise across the elastomer cup before moving the elastomer into the fully retracted position)

■ Currently available for 2 7/8”, 3 ½” & 4 ½” tubing, however various sizes available on request to suit customer requirements

Serrated Slips

J-Mechanism

Drag Spring Assembly

Elastomer

Self-equalising ports

SIM System Permanent Plug

Set using standard slickline SIM Running Tool

No requirement for explosives or special setting tools

Cast iron construction, readily millable

5,000 psi pressure rating (10,000 psi available upon request), 350˚F temperature rating

Short overall length

Running tool allows a check-pull to be taken against the set plug prior to shearing-off

Cost effective

Applications

Permanent zonal isolation

Barrier for plug and abandonment

Squeeze and fracturing work

SIM System – Operational History

■ To date, the SIM System has been run in over 1,000 varied applications around the world

■ Successful applications in:

– Highly deviated wells (72deg) – Depths in excess of 18,000ft – High concentrations of CO2 > 60% – High debris environments – Differential pressures up to 7,500psi at 250degF or

5,000psi at 350degF

■ 98% of SIM RBP devices have been recovered successfully with slickline

Case Study - Introduction

Peak requested at the start stage of an well abandonment project to develop a permanent bridge plug which could be set on slickline. This would allow all the offline plugging operations to be carried out on slickline without the need for any E-line equipment.

Tooling Information: 3 ½” SIM Permanent Bridge Plug & SIM Running Tool

■ Location: Australia

■ Well Type: 3 ½” Oil Producer

■ Max. Deviation: 61 degrees

■ Temperature: 220degF

Case Study 1 – Pre-requisites & Challenges

The well files confirmed that all the wireline nipple profiles were damaged by sand production and wire tracking from multiple slickline runs through the nipple profiles. The following key requirements and concerns were highlighted by the client:

■ History of Scale & Sand

■ High pick-up weights expected

■ Small setting window – adequate depth control required

■ First choice to utilise the onsite slickline crew

■ E-Line setting option required as a back-up to slickline if excessive pick-up weights encountered

Case Study 1 - Deliverables

In addition to the 3 ½” Peak SIM Permanent Bridge Plug & SIM Running Tool, Peak supplied:

■ Simulated drift deployed on actual R/Tool (weight, length & bypass)

■ Dual deployment options - Slickline & E-Line

■ Slickline personnel were trained to use all equipment.

Case Study 1 – Results

Well successfully plugged, well killed & tubing cut ready for arrival of jack up.

■ SIM drift simulation carried out successfully

■ All Plugs successfully set on slickline & tested

■ Slickline set SIM Plugs ensured efficient operations and reduced POB/Logistics issues