Royal visit creates stronger tie between Pemex and Welltec

Last week a Danish delegation incl. Jørgen Hallundbæk and HRH Crown Prince Frederik of Denmark participated in a workshop at the Pemex office in Mexico. The meeting was part of an export promotion initiative taken by the Danish Ministry of Foreign Affairs and the Trade Council to further Danish – Mexican trade relations and promote Danish know-how within health and welfare, agriculture and food products, as well as energy and clean tech.

During the meeting, CEO of Pemex, Lozoya Austin, said that the visit will strengthen the collaboration between Pemex and Danish O&G companies and His Royal Highness stressed the importance of such summits to generate stronger ties between Pemex and Danish companies and said that this was one of the most important aspects of the visit to Mexico.

From a Welltec perspective this meeting and the following workshop was a good opportunity to further strengthen the partnership with Pemex and show how technologies like ours can improve recovery rates and the economics involved in well maintenance through ie. efficient scale clean-outs with lower risks than conventional methods.

To learn more about the technologies applied in Mexico, please view the Clean-out Solutions brochure or contact our General Manager in Mexico Jose Guadalupe Carrillo Osorio.


Well Cutter cases applauded at ADIPEC

This week the O&G community gathered in Abu Dhabi for the annual ADIPEC show. Welltec presented a paper based on a number of highly interesting local cases in which the novel Well Cutter was used to cut 4-1/2” production tubing in compression in several high deviation wells prior to a tubing change-out campaign. The Well Cutter was selected in order to reduce rig time during the workover operations due its non-explosive design, ability to cut pipe under compressions and the smooth beveled surface it produces, which precludes the need for a polishing trip. The paper discusses the operational sequence and lessons learned from the operations and includes a discussion of the design features of this novel tool.

During the show visitors to our booth had the opportunity to examine an expanded, all-metal WAB™ which was on display. The WAB comprises an integral part of our Flex-Well® completion concept, providing an all-metal barrier for zonal isolation or cement assurance

To learn more about the solutions described above, please see the Mechanical Solutions brochure or the Completion Solutions brochure or contact Rob MacFarlane or Paul Matthews respectively.


Welltec’s force-with-finesse technology enables significant time saving on straddle packer installation

When a deepwater well, offshore West Africa, was experiencing high GOR the operator initially chose to cycle the well production on and off to allow the reservoir to re-saturate with oil while shut-in, and then re-open the oil flow to the FPSO until the GOR became unacceptably high for the facilities. However, this temporary solution had caused a significant decrease in production.

Diagnostic surveys showed gas entry from the top of the open hole gravel pack completion. The operator, working with multiple service companies, engineered a solution, which required installing retrievable straddle isolation assemblies.

Installation and assembly of this straddle necessitated accurate depth control and “force-with-finesse”. Welltec’s combination of Well Tractor® and Well Stroker® offered the best solution, as it could exert the required force at the specific depth.

The first run was a drift run, then the lower packer was run with the Well Tractor® and set. The next run was the first joint of the assembly and the Well Tractor® was run to ensure the toolstring was seated into position and to compress the Well Stroker® piston. The Well Stroker® stroked down to ensure the RS2 latch had been fully seated and then sheared the GS running tool pin to release the toolstring from the assembly. The subsequent runs involved conveying and stroking the various joints and packers into position, resulting in a complete; sixteen successful runs.

The operation took only 15 days, which was 30 says less than originally anticipated by the operator. As a result of the intervention, gas production was reduced and oil production increased multifold.

To learn more about the technology applied please view the Mechanical Solutions brochure or read the full case story: Installation of straddle packer saves 30 days.


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.