1. Long Term Integrity of Cement Systems June 19, 2003

2. Agenda Participants/Financials Project Focus/Management Project Tasks Summary Action Items API Test Data Seal Tite Test Results

3. Participants Commitments –MMS, Petrobas, Unocal, BP, ExxonMobil –Saudi Aramco, ONGC, Conoco, AGIP –DOE, *PDVSA, HES, Dominion Potentials –Marathon, Stat Oil, Devon,

4. Financials Commitments - $50k each –$650k 13 Companies –Potential additional $100 to 150k –To date - $450 Project Timing – 18 months

5. Management of Project Fred Sabins – Project Manager Bryan Simmons – Operations Manager Lab support –CSI –Westport Rock Mechanics Mathematical Analysis – University of Houston Rock Properties Instruments - Chandler

6. Project Communications Steering Committee – Voting Members –Meeting notes/ voting privileges Quarterly Progress Report/Meeting –June 2003 –October 2003

7. Project Objective Determine the cement system properties that effect the ability of cements to seal fluids –Primarily in Deep Water –General application Develop a correlation of the cement properties to performance Determine laboratory methods to determine key properties

8. Tasks Task 1 – Problem Analysis Task 2 – Property Determination Task 3 – Mathematical Analysis Task 4 – Testing Baseline Task 5 – Refine Procedures Task 6 – Composition Matrix Task 7 – Conduct Tests Task 8 – Analyze Results Task 9 – Decision Matrix

9. Testing Program Deep Water/All Conditions Cement Slurries –Class A –Foamed Cement –Bead Cement –Class H –Latex Cement –Fibers, Expansion additives

10. Performance Issues Flow of fluids –Around the cement Bonding, microannulus, deformation –Through the cement matrix Cracking, permeability changes –Under stress Pressure, temperature Cycling conditions

11. Testing Program Cement design performance Mathematical modeling Mechanical properties Performance

12. Cement Design Performance Standard cement design testing –Thickening time –Compressive strength –Rheology –Free water

13. Mathematical Modeling University of Houston Numerical Model Stress states with thermal and pressure cycling Tensile stresses of 1,000 to 2,000 psi possible Formation strength governs failure

14. Mechanical Properties Tensile strength Young’s modulus Poisson's ratio Hydrostatic pressure cycling Fatigue/anelastic strain

15. Tensile Strength Brazilian Test Method Tensile Strength Young’s Modulus Maximum Yield

16. Testing Device Samples are oriented on side for tensile strength tests. Force is applied by constant displacement of bottom plate.

17. Tensile Strength and Young’s Modulus SlurryTensile Strength(psi)Young’s Modulus Foam(12ppg)2533.23 E 4 Type I394/21319.15/8.16 E 4 Type I with Fibers10719.6 E 4 Latex5395.32 E 4 Latex with Fibers9028.5 E 4

18. C Young’s Modulus Compressional Tests Confining Loads – Defined by 0psi break –Base line 14 day cure Acoustic Data Poisson’s Ratio

19. Young’s Modulus Results

20. Correction Recently discovered correction factor accounts for instrument strain Next report will have corrected information

21. Poisson’s Ratio Results Variable depending on: –Stress Rate –Slurry Type –Air Entrainment

22. Poisson Ratio, 50 psi 250 psi/min SlurryFailure psi V Radial Foam31000.000* Bead4100-0.01* Class H64500.0012 SMS9200.005 Type 165000.1

23. Strain Amounts/Cycling Slurry1000 psi2000 psi3000 psi4700 psi Foam 0.002610.00167------- Bead 0.001910.001580.00115 Class H 0.001610.001500.00102 Type 1 0.001080.000800.00069

24. Acoustic Measurements Chandler’s New Mechanical Properties Device

25. Anelastic Strain Procedure Measure failure stress. Apply stress equal to 25%, 50%, or 75% of failure. Measure deformation.

26. Anelastic Strain Results Bead Slurry, Confining Pressure = 0 psi, 250 psi/min, cycle 25% of failure stress

27. Performance Tests Shear Bond Measurements (Cycling conditions) –Soft Formations –Intermediate Formations –Hard Formations Annular Seal/Hassler Sleeve (Cycling Conditions) –Soft Formations –Intermediate Formations –Hard Formations

28. Shear Bond Molds Each sample is cured in a simulated hard, intermediate, and soft formation configuration. A steel external pipe is used to simulate a hard formation; PVC to simulate an intermediate formation. Simulated Hard or Intermediate Formation Simulated Soft Formation

29. Old Temperature Cycling Procedure After curing, entire sample heated and cooled in water baths from 45 to 180 and back. Testing after 5 cycles

30. Pressure Cycling Shear Bond Cure specimens for 7 days at 80°F. Apply 5,000 psi hydraulic pressure to the inner pipe and maintain for 10 minutes. Release the pressure and wait 10 minutes. Repeat the cycle four times. Perform the shear bond test.

31. Shear Bonds SystemType 1FoamBeadsLatex Base P1194127/98109/78---- Base S198233143223 Temp P165299/215191/269---- Temp S72756149 Press P194/106276/228294/170----- Press S2322 C23 C11

32. New Temperature Cycling Procedures Samples are then cured at 80°F for 7 days. Samples are then temperature cycled from 80°F to 180°F to 80°F as described below: –Internal pipe heated to test temperature in 8 hours –Held static for one hour –Cooled to 80 F

33. Annular Seal Testing Three molds are used to prepare samples. –Soft Formation—a soft gel mold provides a semi-restricting force on the outside of the core during curing –Intermediate Formation—a 3-in. diameter Schedule 40 PVC pipe contains the slurry –Hard Formation—a 3-in. diameter Schedule 40 steel pipe provides a restricting force outside of the core during curing

34. Annular Seal Test Configurations Simulated soft formation Plastisol Sleeve Steel or PVC Pipe Simulated hard or intermediate formation

35. Annular Seal Test Procedure Mix cements and pour into molds. Cure for 7 days in an 80°F water bath. Apply hydraulic pressure to the inner pipe or heat the inner pipe to simulate thermal/pressure cycling. Test flow after each specified cycle Test three specimens from each test composition/formation scenario. –Different procedures are used to test each of the mold types.

36. Soft Annular Seal Test Model N 2 In N 2 Out Confining Pressure Seal for Confining Pressure Rubber Sleeve

37. Annular Seal Test Results Annular Seal TestClass AFoamedBead Initial Flow, Hard 0 Flow Initial Flow, Soft 0 Flow0.5 md0 Flow Temp-Cycled, Hard 0 Flow Temp-Cycled, Intermediate Temp-Cycled, Soft 0 Flow123 md/(2200 md)43 md (cracked during cycling) Pressure-Cycled, Hard 0 Flow Pressure-Cycled, Soft27 md0.19 md (cracked during cycling) 3 md

38. Pipe in Pipe Testing 10’ models of 2” pipe Pressurized to 1000 psi Cured for 8 days 100 to 500 psi Measured Flow rates for months

39. Future Work Complete Annular Seal and Shear bond testing Complete Anelastic Strain Testing Begin Decision Tree