1. A Noble Drilling Corporation Subsidiary TT00-381 April 19, 2001 Coiled-Tubing High Pressure Jet Drilling System Dr. William C. Maurer

2. TT00-382 Exxon HP Field Test

3. TT00-383 Exxon Jet Bit

4. TT00-384 Exxon HP Field Test

5. TT00-385 HP Pump HP Line HP Rotary Hose HP Swivel High Strength Drill Pipe HP Seal Tool-Joint Seal HP Bit Exxon High Pressure Drill Rig

6. TT00-386

7. 7

8. 8

9. 9

10. 10 Comparison of Drilling Methods RotaryMotor

11. TT00-3811

12. TT00-3812 CT Reel Injector Head Single-Flow HP Bit LP & HP Pumps HP Flow High Pressure CT Drilling System (Single Flow) Single Flow HP Motor (Solid Rotor) Conventional Coiled Tubing

13. TT00-3813 Project Participants u Maurer Engineering - Motors and Bits u Quality Tubing - HP Coiled Tubing u Stewart & Stevenson - CT Rig u BJ Services - Field Operations u Marathon - Operator Requirements u ARCO - Operator Requirements

14. A Noble Drilling Corporation Subsidiary TT00-3814 HP Motor Design Curtis Leitko

15. TT00-3815 High Pressure CT Motor (Single Flow) Titanium Drive Shaft PDC Thrust Bearings Titanium Flexshaft High Pressure Jet Bit Filter PDM Multilobe Rotor/Stator (3 1/8”) 2 3/8” CT Solid Titanium Flexshaft Radial Bearings/ Flow Restrictors High Pressure Low Pressure Solid Rotor

16. TT00-3816 Thrust Load on Bearing 10,000 PSI 34,000 lb Force Seal Housing Thrust Bearing Bit

17. TT00-3817 Candidate Bearings Ball BearingPDC Bearing

18. TT00-3818 Bearing Load Comparison 100 Hours @ 300 rpm

19. TT00-3819 Motor Labyrinth Seals Upper Restrictor 5” Fluid Flow Lower Restrictor Shaft Housing } }

20. TT00-3820 Motor Labyrinth Leakage w Four 5” Labyrinths 10,000 psi

21. TT00-3821 Advanced Geothermal Turbodrill (AGT) Bearing PackSpeed ReducerTurbine

22. TT00-3822 Planet Gears Sun Gear Ring Gear Planetary Gears

23. TT00-3823 (RPM)(ft-lbs) Turbodrill Performance

24. TT00-3824 HP Bit Design

25. TT00-3825 High Pressure Jets High Pressure Jet Bit

26. TT00-3826

27. A Noble Drilling Corporation Subsidiary TT00-3827 HP Coiled-Tubing Design John H. Cohen

28. TT00-3828 Coiled Tubing Burst Pressure (100,000 psi yield) CT Diameter (in.) 1.00 1.25 1.50 1.75 2.00 2.375 2.875 3.500 Wall Thk. (in.) 0.109 0.156 0.175 0.188 0.203 Burst Pressure (psi) 20,800 24,160 22,670 20,910 19,800 16,670 13,770 11,310

29. TT00-3829 CT FATIGUE LIFE Fatigue Life (trips) Internal Pressure (psi) QT-1000 (based on MEI CTLIFE model)

30. TT00-3830 Fiberspar Spoolable Products u Production Tubing - FS PT u Line Pipe - FS LP u Coiled Tubing -FS CT (for Well Servicing)

31. TT00-3831 First FS CT Field String 6500 Ft. Length, 1.5” OD

32. TT00-3832 0 10000 20000 30000 40000 QT-1000Incoloy-625Composite Burst Pressure (psi) CT Burst Pressure 2.00 inch OD

33. TT00-3833 Composite CT Hybrid Coiled Tubing Steel CT

34. A Noble Drilling Corporation Subsidiary TT00-3834 High Pressure Motor Tests John H. Cohen

35. TT00-3835 Mud Motor Dynamometer Test Stand

36. TT00-3836

37. TT00-3837

38. TT00-3838 2000 psi

39. TT00-3839 10,000 psi

40. TT00-3840

41. TT00-3841

42. TT00-3842 CT High Pressure Jet Drilling Rate Motor Leauder Limestone 3-1/8 ” Bit

43. A Noble Drilling Corporation Subsidiary TT00-3843 DOE High-Pressure Coiled Tubing Drilling System Phase III Commercialization William C. Maurer August 8, 2000

44. TT00-3844 Objective: Field test and demonstrate prototype CT Drilling System Sub Contractors:BJ Services Quality Tubing Phase III Commercialization u Start DateOct. 1, 2000 u Phase III Budget$3,152,498 u DOE Phase III Funding$1,585,556

45. TT00-3845 Phase III Tasks u 1. Conduct shallow field test u 2. Modify system u 3. Conduct deep field test u 4. Develop Commercialization Plan u 5. Write Final Report

46. TT00-3846 Phase III Plans u Shallow field tests- Catoosa u Deeper field tests- Marathon Oil u Commercial tests- BJ Services

47. TT00-3847 High Pressure Bit HP Flow Conventional Coiled Tubing High Pressure Motor Drilling (Vertical)

48. TT00-3848 High Pressure Jets Slots Formation Damage Jet Slotting Stimulation

49. TT00-3849 Formation Damage Mechanism (Timmerman, 1982) Pressure profile in the formation Dp skin = Pressure drop across the damaged zone Skin or zone of damage

50. TT00-3850 “ In must homogeneous matrix situations, the physical depth of solids invasion tends to be shallow (1-2 cm into the formation)” (Bennion et al., 2000)

51. TT00-3851 Glacier Bluff Dolomite 10,000 psi Jet Well Bore Helical Slotting

52. TT00-3852 Texas Cream Limestone 10,000 psi Jet

53. TT00-3853 Cement Tubing High Pressure Jets Drilling Cement

54. TT00-3854

55. TT00-3855

56. TT00-3856 CT Cement Cleanout Rates

57. TT00-3857 Cement Cleanout Assumptions u Conventional ROP= 60 ft/hr u Jet ROP = 600 ft/hr u Conv. CT Rig= $10,000/day u Jet CT Rig = $20,000/day u Land Rig = $5,000/day u Offshore Rig = $200,000/day u Well Depth = 10,000 ft. Conv. Land Cost = ($10,000 + $5,000) x 10,000 60 x 24 = $104,000

58. TT00-3858 Cement Cleanout Costs (Land Well)

59. TT00-3859 Cement Cleanout Costs (Offshore Well)

60. TT00-3860 Barite Scale High Pressure Jets Tubing Barite Scale Removal

61. TT00-3861 High Pressure Jets Tubing Open slots Plugged slots Jetting slots Cleaning Slotted Liners

62. TT00-3862 Predrilled Hole Reamed Hole High Pressure Jets Hole Guide Hole Reaming/Cleaning

63. TT00-3863 High Pressure Jets Casing Under Reaming

64. TT00-3864 Drilling (Horizontal)

65. TT00-3865 Phase III Commercialization u BJ Services  CT field operations u Quality Tubing  High Pressure CT u Marathon Oil  Field test sites u Maurer Engineering  HP motor/bit development

66. TT00-3866

67. TT00-3867 Potential Market Drilling 500$100,000$50 Million Number Wells Income Per Well Annual Income Open-Hole Slotting 1000$30,000$30 Million Cement Cleanout 100$50,000$5 Million Total Income = $85 million/year Applications