Design Philosophy & Application 2018/5/27 Design Philosophy & Application of Sucker Rod Guide Invention Patent: 200610134063.1 Huludao Longyuan Oil Equipment Co., Ltd. Beijing Winland Energy Technology Co.,Ltd

2018/5/27

Oil Recovery by PCP Oil recovery depth increased by 1.5 times Oil recovery efficiency increased by 2.7 times

01 02 03 Related domestic patent retrieval 2018/5/27 Sucker rod guide Patent No.: ZL200420120732.6 PCP sucker rod guide Patent No.: ZL200720011843.7 Sucker rod universal guide Patent No.: ZL200920010261.6 02 03

Oil Recovery Pain Spots 2018/5/27 Oil Recovery Pain Spots Uneven wear of horizontal well CBM well Dog-legged well High polymer oil well Offshore directional well Highly deviated well Broken/fallen sucker rod caused by liquid hammer conditions High motor load Offshore platform horizontal well

7°travel angle, 360°universal Solutions 7°travel angle, 360°universal Preventing suck rod from falling off or uneven wearing, reducing friction resistance Eliminating additional bending moment of sucker rod Prolonging service life of sucker road & tubing Tensile and torsional property superior to sucker rod

2018/5/27

Patented Combination

Proprietary intellectual property right 9 invention patents 20 utility model patents

In order to determine the impact of uneven wear on sucker rod string, transient dynamics finite element software was applied to make mechanical analysis for sucker rod string to find out the force and deformation conditions of sucker rod inside tubing

Mean Contact Force (Well-Ⅰ) Offset 2m

Sucker Rod Deformation in An Ideal Vertical Well Excited by Horizontal Displacement

Contrast of Sucker Rod Deformation before and after Installing Guide No Guide Installed With Guide Installed

2018/5/27 Research Findings Eliminate additional bending moment of sucker rod 01 Mitigate uneven wear of sucker rod and tubing 06 02 Greatly improve oil well pump efficiency 05 03 Eliminate backoff torque of sucker rod Reduce friction resistance, save power consumption of oil pumping unit and PCP 04 Prevent liquid hammer in rod pumped well

Strength Patented Technology Patented Combination Unique Program 2018/5/27 Strength Patented Technology Patented Combination Unique Program Entire rod string system products employ our packaged patented products Unique swage technology is applied to manufacture process. Special material and special heat treatment contribute to unique quality. Based on well conditions, transient dynamics finite element software was applied to design of special running-in program

Allow. Tension-Torque, kN x N.m Little Device, Big Help Structure Diagram of Sucker Rod Guide Adapter connector 1 Guide shaft Barrel Guide shaft Adapter connector 2 Material & Mechanical Properties of Sucker Rod Guide Specification Allowable Tension, kN Allowable Torque, N.m Allow. Tension-Torque, kN x N.m Use For pumping unit use For PCP use

Matching Principle of Sucker Rod and Guide Item Description Specification, mm Min. ID, mm Allowable Tension, kN Allowable Torque, N.m Sucker rod, Class D φ25 402 1830 φ28 510 2500 φ36 418 4081 φ38 480 4621 Class H 488 2163 619 3055 508 4988 582.3 5240 Min. matching specification of guide φ55 684 4325 φ59 φ40 750 5158 φ62 5500 D H Difference value +282 +196 +2495 +2162 +240 +131 +2658 +2103 +332 +242 +1077 +170 +430 +167.7 +879 +260 During application, strength of the guide is higher than that of the rod body. Matched guide specification shall be selected based on well conditions. Take Φ25, 28, 36 and 38 as example.

Basis of Directional Downhole Guide The basis for running in guides are determined based on well depth and structure, especially the overall angle change rate (borehole curvature or dogleg angle). Overall Angle Change Rate Quantity of Cascaded Guides Remarks 3°≤ Overall Angle ≤7° 1 group Recommended 7°≤ Overall Angle 2 groups Cascaded guides

Basis of Directional Downhole Guide 1. Whole well centralizing, centralizing on both ends of guide required Vertical section: 1 centralizer is placed for each rod below the polish rod, and provided with limit coupling; Whipstocking section, deviated section: 2 centralizers are placed for each sucker rod (with 1 in the middle), and provided with limit coupling. Sucker rod Centralizer Guide Guide Centralizer Sucker rod 2. Precautions 1) For running in at site, depth shall be relatively accurate (measurement of sucker rod must be precise), and the max. error shall not exceed 3m; 2) Screw-on shall be in place to avoid rework caused by backoff.

Design Case: Application of Guide to Directional Well Lift (Schematic of Pipe String) Srl. No. Description OD, mm ID, mm Length, mm Well Depth, m Guide Qty. 1 Casing 2 Tubing 73 62 3 Centralizer 4 52 480-680 5 Sucker rod 28 6 Oil well pump, PCP

Horizontal Projection & Vertical Profile (Vertical Section Displacement） Well trajectory local enlargement Kickoff point 1: well depth, 305.69m Kickoff point 2: well depth, 334.52m Vertical Depth, m Kickoff point 3: well depth, 363.41m Kickoff point 4: well depth, 392.39m Pump setting depth: 708.6m Displacement, m

FL-EP16-S2 Continuous Well Inclination Data Overall Angle Change Rate, Depth, m Vertical Depth, m Deviation Angle, 。 True Azimuth, 。 Total H Displacement, m Total Orientation, Overall Angle Change Rate, 。/25m 200.00 0.24 225.68 0.12 251.58 0.00 225.00 224.95 6.44 238.22 1.36 235.64 6.24 250.00 249.66 10.73 238.99 5.15 238.91 4.30 275.00 274.04 14.85 232.16 10.66 237.41 4.38 300.00 298.03 17.91 232.58 17.64 235.09 3.06 325.00 321.64 21.13 233.57 25.86 234.33 3.24 350.00 344.56 26.10 234.48 35.82 234.13 4.98 375.00 366.81 27.52 235.02 47.21 234.39 1.44 400.00 388.49 31.84 59.64 234.54 4.33 425.00 409.26 35.84 236.42 73.54 234.87 4.03 450.00 429.04 40.45 235.57 88.80 235.05 4.64 475.00 447.12 46.35 233.11 106.05 234.94 6.14 500.00 464.25 46.19 231.40 124.24 1.24 525.00 481.92 44.92 229.97 141.89 234.04 1.63 550.00 499.68 44.84 230.55 159.45 233.62 0.42 575.00 517.40 45.05 231.01 177.06 233.39 0.38 600.00 535.46 41.64 231.24 194.33 233.17 3.42 625.00 554.57 38.65 231.56 210.45 233.02 2.99 650.00 574.56 35.24 232.38 225.45 232.95 3.44 675.00 595.26 32.16 232.21 239.46 232.91 3.09 Example of survey records

National Level (PetroChina Jianghan) Test Report 2018/5/27 National Level (PetroChina Jianghan) Test Report

Field Application Cases

Major Clients And their subsidiary enterprises

Supporting Oversea Oil Companies

Business Distribution 2018/5/27 Business Distribution Daqing Oilfield Shengli Oilfield Liaohe Oilfield Xinjiang Oilfield Changqing Oilfield Zhongyuan Oilfield

Oilfield Benefit Look at one oil production base 2018/5/27 Oilfield Benefit Look at one oil production base Saving operation cost Increasing production Prolong pump inspection interval to more than 300 days Annual production increase per well 68 tons Save individual well cost CNY 28,400 Annual benefit per well CNY 182,400 With the product applied to 300 wells in an oilfield for one year, CNY 8.5434 can be saved With the product applied to 300 wells in an oilfield for one year, CNY 63.2859 can be obtained from increased production

Asia Pacific Agent For 2018/5/27 Huludao Longyuan Oil Equipment Co., Ltd. Beijing Winland Energy Technology Co.,Ltd New Zealand : David Sale +64 (0) 211 546 855  david@goldingltd.com Australia : Richard Grattan+61 (0)467 788 145  Richard@goldingltd.com