Surface read-out enables progress confirmation during GLV change-outs

A gas lift valve (GLV) in an oil producer needed change out and simulations showed that a Well Tractor was needed to reach target depth. The GLV was installed in a side-pocket mandrel, at 3,795.77 m MD RKB with a deviation of 76.9°. The well had been shut down for maintenance and when started back up the max gas lift was reduced from 7,500 to 2,000 m3/h. It appeared that the GLV was plugged and as there was a risk of slugging at low gas rates, the well was shut-in pending a solution. This complex intervention was further complicated by limited rig-up height on the platform.

A System Integration Test (SIT) was carried out prior to the operation to ensure compatibility between the Well Tractor®, Well Stroker® and the third party kickover tool (KOT), as this was the first run in a live well using this combination.

First a drift run confirmed that the toolstring would be able to reach target depth. When the GLV had successfully been pulled, the new GLV was then installed using the same toolstring with a running tool added. The surface read-out allowed the team to make direct real-time observations of the downhole parameters during the operation and provided confirmation that the GLV was set. Later the GLV was positively inflow tested by production.

The operator was especially pleased with the live data from the surface read-out and internally recommends using the Well Tractor® on all similar operations, independent of deviation, just to get indications of the pulling and setting sequences.

A month after the well was returned to production it produced 12,000 bpd, making it the third best producer in the field.


Welltec to establish a facility in Esbjerg, Denmark

Welltec has today entered into an agreement to establish a purpose-built manufacturing facility in Denmark’s energy capital Esbjerg. The facility is expected to be operational at the end of 2014 with a staff of 25-35 employees.

The new facility will increase Welltec’s manufacturing capacity within the completions solution segment and ensure high quality and uniform production as volumes grow. In addition, the facility will be used as an offshore supply base and a hub for Welltec’s operations in the Danish, German and Dutch parts of the North Sea as well as land-based operations in Central Europe.

“We are continuously expanding our business with the major operators in the oil and gas industry to create a stronger and more resilient company. It is important for us to be represented in Esbjerg, allowing us to further develop our relations to clients and partners in the North Sea directly out of Denmark’s energy capital. At the same time, the facility in Esbjerg will be central to the development, manufacturing and delivery of Welltec’s revolutionizing technologies for the oil and gas industry,” said Jørgen Hallundbæk, CEO of Welltec.

The facility comprises approximately 65,000 square feet of manufacturing area and 13,500 square feet of office area at a prime location in Esbjerg with close proximity to the harbor and highway.


Novel Completion Solution attracts attention at OTC Brasil

At the OTC Brasil, which took place the last week of October in Rio de Janeiro, the Welltec stand featured the Welltec Annular Barrier, or WAB™. This novel Completion Solution attracted a lot of attention for its unique capabilities providing cement assurance, zonal isolation and cementless completions in a wide range of environments. The WAB™ has been engineered to enable maximum reservoir drainage and flexibility of operations through-out the life of the well as part of the Flex-Well® concept and is the first step in future proofing the well.

During the conference Welltec presented two papers. The first, Regaining Wellbore Access and Enhancing Safety Devices Operation by Removing Obstructions Using E-line Conveyed Technology, describes in detail a number of scale clean-out interventions in Mexico that has allowed the operator to save significantly on rig and deferred production. The second paper, Improved Recovery Rate in Brownfield Subsea Wells Using Riserless Light Well Intervention, discusses the advantages of using the RLWI method to improve recovery rates from existing wells enabling operators to realize potential of up to 50% recovery.

To learn more about the WAB™ please download the Completion Solutions Brochure or contact Pedro Maciel, Well Completion Solutions Manager, Latin America.

For information on scale removal and other clean-out methods, please download the Clean-out Solutions brochure.

For information about Welltec’s RLWI capabilities, please contact Eddie Karlsen.


High latitude case stories spurred great interest

Last week Welltec presented an SPE paper to the audience at the Artic & Extreme Environments conference in Moscow. The presentation shared findings and lessons learned from an international array of high latitude intervention operations and presented best practice recommendations for e-line workovers in such extreme environments as the Arctic.

Working in high latitude environments pose a number of challenges like freezing temperatures, high winds, heavy down pours, extreme darkness and often isolated locations with logistical restrictions. These extreme conditions demands a lot from the personnel and equipment involved in the operations and specific precautions are necessary.

The paper, entitled “Case Studies: E-line ‘Heavy’ Workovers in High Latitude Environments”, can be downloaded from OnePetro.

Please contact Christian Krüger, VP Well Intervention Solutions, (Email: ckruger@welltec.com, P: +45 26 34 00 70) to learn more about our high latitude capabilities.


Myths and misperceptions on RLWI

Offshore Engineer is currently featuring an article by two of our subsea experts, Eddie Karlsen & Bevan Morrison, in which they discuss the various myths and misperceptions that surround riserless light well interventions (RLWI) and prevents operators from performing thus type of cost-efficient, production enhancing maintenance operations on their subsea wells.

Please go to OEdigital.com to read the full article.


Welltec presentations well received at ATCE 2013

Last week Welltec had the pleasure of sharing two exciting papers with the audience at the ATCE in New Orleans. The first paper describes the field trial of our new Completion Solution, the Well Annular Barrier, and its origins. The second paper presented a world’s first operation that set a new water depth record for RLWI as well as milled asphaltenes on e-line for the first time.

16 WABs were deployed for Zonal Isolation in a horizontal section of a completion in the North Sea. Within 30 minutes all WABs were fully expanded, effectively sealing off 8 individual zones, enabling the acid stimulation job to take place. To read more about the WAB™ please download the Completions Brochure or read the full case story High pressure cementless zonal acid stimulation.

Anadarko was experiencing problems with a subsea well in the Gulf of Mexico. The well conditions were unknown and a gauge run had indicated a blockage. The Well Cleaner RCB was selected to attempt to mill through this unknown blockage. The toolstring became stuck but was worked free and at surface it was discovered that the milling bit and bailer sections were filled with asphaltenes – a substance that had not been anticipated in this well. To learn more about our RLWI capabilities, please visit our website, or download the full case story Retrieving asphaltenes, RLWI water depth record.

Welltec would like to thank all guests who stopped by for a chat, and we look forward to seeing you again soon.


Welltec® announces closing of DKK 257 million private placement with PFA

Welltec International ApS (Welltec®) has completed a private placement with PFA, Denmark’s largest pensions fund with more than DKK 350 billion under management and administering the pensions of 9,300 corporate and 500,000 individual customers.

Gross proceeds from the private placement amount to DKK 257 million, securing PFA a minor interest in Welltec®. As a result hereof, the shareholders of Welltec International ApS today resolved at an extraordinary general assembly, to increase the share capital of Welltec International ApS with DKK 150,000. The implied valuation of Welltec® cannot be derived from the published information including the number of newly issued shares as details concerning the company’s existing warrant program are not disclosed.

The proceeds strengthen Welltec’s capital structure and can be used for further development of the company’s business within robotic intervention services and completion solutions to the oil and gas industry.

“We are pleased to welcome PFA as an investor in Welltec®, and we look forward to continue our journey of growth with this high-caliber investor onboard. During the last five years, we have doubled our headcount and transformed Welltec® into a truly global company – and we continue our efforts to grow the business in a controlled and professional manner,” says Jørgen Hallundbæk, CEO of Welltec®.

Welltec® has recorded annual double-digit revenue growth for 3 consecutive years and maintained EBITDA margins of 47-53%. The company’s DKK 1.9-2.1 billion revenue guidance for 2013 represents an expected annual growth rate of 12-24%, and its EBITDA margin is expected to be at or around recent historical levels.

“Welltec® is a high-quality company and an exciting investment case with strong growth prospects within the company’s advanced robotic well intervention services and its promising well completions solutions. The company’s pioneering technology has revolutionized its industry, and Welltec® continues to outgrow competition. The recent induction into the Hall of Fame for Danish Exports is another testament to the quality of Welltec’s services and its ability to transform technological expertise into profitable business,” says Jesper Langmack, Managing Director at PFA Asset Management.

For further information:
Jørgen Hallundbæk, Chief Executive Officer, Welltec®
Søren Jørgensen, Chairman of the Board of Directors, Welltec®
Jesper Langmack, Managing Director, PFA Asset Management

Please contact:
Morten Græsbøll Ottesen, Investor Relations Director, Welltec®,
tel.: +45 22 33 73 08

Company Profile
Welltec® is a leading provider of robotic intervention services and completion solutions to the oil and gas industry. Our pioneering technology enables operators to optimize their use of oil and gas resources throughout the life-cycle of their wells. We address the factors that maximize value creation, continuously innovating to reduce well construction time, speed up access to the hydrocarbons and reduce the capital expenditure burden of more conventional methods. The effect is one of maximizing oil and gas production while minimizing operating down-time.

This is the essence of Welltec’s philosophy; to challenge existing practices and think laterally in order to develop products and services which increase oil and gas recovery while improving the economic, environmental and safety aspects of our industry. In practice we develop, test and manufacture state- of-the- art technology to enhance the recovery and production rates for our clients, thereby improving their profitability through a longer term revenue stream.

Our intervention solutions allow our customers, some of the world’s largest national and independent oil companies, to pursue fields that would not otherwise be economically viable. Our lightweight technology delivers more efficient, more effective, more productive and safer interventions in environments that are becoming increasingly complex, remote and hostile.

In an industry characterized by maturing fields and increasing depletion rates, the premium attached to technology which aids in reversing these trends is continuing to gain momentum. Our value proposition is compelling; our technology enables clients to unlock more production from their assets and to address reservoir complexities and uncertainties with a greater number of options.

Important Notices
Any statement in this announcement that is not a historical fact is a “forward-looking statement”. Such statements may include opinions and expectations regarding Welltec® and its future business, management’s confidence and strategies as well as details of management’s expectations of new and existing programs, technology and market conditions. These forward-looking statements rely on assumptions concerning future events that are subject to a number of risks and uncertainties, many of which are outside Welltec’s control, and which could cause Welltec’s actual results to be materially different from these forward-looking statements. While Welltec® believes that its assumptions concerning future events are reasonable, there are inherent difficulties in predicting certain important factors that could impact the future performance or results of Welltec’s business. Accordingly, such statements should not be regarded as representations as to whether such anticipated events will occur nor that expected objectives will be achieved. Welltec® expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise.


Scale clean-out enables fast access to production increase

During perforation preparations a well offshore Indonesia indicated a wellbore obstruction in the top of the existing producing zone. The wellbore ID was decreased to 3.37” and as the perforation gun’s possible swelling OD was up to 3.45” the operator needed to address the unknown obstruction.

Welltec provided a swift solution. The Well Tractor®, Well Stroker® and Well Miller® were mobilized with a variety of bit types and sizes to address contingencies. As the obstruction was first thought to be slightly damaged casing, the first run was made with an NPR bit to remove metal. However, recovered debris indicated scale build-up rather than damaged casing and the toolstring was reconfigured, ending up with a 3.7″ tapered scale removal bit and standoff.

Several runs were then made to accomplish the scale clean-out and once achieved a confirmation run was made with a 3.7″ scale removal bit, run in hole by gravity, which easily passed the problematic area, thus proving successful removal of the troublesome scale bridges.

Access to the perforation intervals had been restored and the perforation operation was then begun.

The operation provided faster access to increased production, which went from 1.5 mmscfd to 12 mmscfd, saving both time and the cost of mobilizing a CT unit: estimated at two weeks to arrive. It is testament to Welltec’s responsiveness and capabilities to deliver a viable solution when faced with an unknown well environment.

To learn more about the technology applied please view the Clean-out Solutions brochure or read the full case story Scale clean-out aids production through perforating accessibility.


The WAB and Well Cutter once again attracted attention

At the four-day Offshore Europe conference last week, Welltec had a fully expanded WAB™ and a Well Cutter on display at the stand. These tools attracted a lot of interest from the audience.
Especially the all-metal expandable features of the WAB™ intrigued the visitors, proving a great interest from the market for a simple, yet intelligent completion solution that can last the full lifetime of a well. Its cement assurance and zonal isolation capabilities are sought after and we are experiencing an increased interest in cementless completion solutions.

Safety is as important as ever and the ability to cut pipe mechanically without explosives is something the market requests. The non-explosive design of the Well Cutter allows for simops and reduces logistic requirements making this an inherently safer choice. The added bonus of the smooth, beveled surface that eases fishing operations and the diminishes debris in the well made this tool a star at the exhibition.

The Welltec stand stood out in the crowd and received a lot of praise for its clean, Scandinavian look, which underlines the corporate identity of Welltec and gives the visitors a holistic impression of quality.
Welltec would like to thank all guests who stopped by for a chat, and we look forward to seeing you again soon.


Welltec honored by induction into the Hall of Fame for Danish Export

On September 4, 2013 Welltec was officially inducted into the Hall of Fame for Danish Exports. This elite group comprises only 30 companies that have been judged to have contributed significantly to Danish export since 1989. The purpose of the Hall of Fame is to serve as inspiration to other firms who either export now or are considering exporting. As well, these esteemed companies contribute their learnings on how to achieve success in markets abroad.

“Welltec is a very interesting case. Welltec shows that even the most genius technology needs to be delivered in the right way. The ability to manage your distribution channels and have local presence are key factors of differentiation,” says Philipp Schröder who is a professor of economics at Aarhus University and who also had the honor of presenting the prize to Welltec.