VIP visit at the Welltec stand at ONS Norway 2013

The Norwegian Minister of Trade and Industry, Trond Giske, visited the Welltec stand at ONS Norway to learn more about our products and services. The key themes of ONS Norway were innovation and renewal; a perfect match for Welltec, and the minister found our company very interesting.

ONS Norway is a newly established midway conference focusing on the O&G industry on the Norwegian Continental Shelf. It is associated with the biannual ONS conference, which takes place next year. Offshore Northern Sea’s Innovation Jury came to learn more about our novel WAB™ and encouraged us to submit this unique completion technology for the ONS award 2014.

In addition, a group from the International Research Institute of Stavanger visited our stand to learn more about Welltec’s experiences being a Danish company in Norway.

To learn more about our activities on the Norwegian Continental Shelf, please read our selected case stories in the Virtual Library.


Welltec receives praise from Nexen Petroleum UK Ltd. on well completion operation

When Nexen Petroleum UK Ltd. recently experienced problems during a slickline run, Welltec stepped in to finish the job.

Nexen Petroleum UK Ltd. was carrying out the completion of a well, offshore UK. Originally, Welltec was engaged to enable the installation of a bridge plug to facilitate packer setting and protect the Fluid Loss Control Valve from prematurely shearing. The junk catcher and the plug were planned to be retrieved using slickline. However, when this proved impossible, Welltec successfully completed the operation using the Well Stroker and Well Tractor together with the slickline retrieval assemblies; fishing the junk basket in the first run and the bridge plug on the second run. Both runs were completed without incident.

To learn more please download our Mechanical Solutions brochure or read the full case story.


Interim Report Q2-2013

Key highlights
Welltec’s revenue growth increased in the second quarter of 2013 and its EBITDA margin returned to expected levels, as the business began to leverage on the significant investments made earlier in the year. Based on the pace of progress and the outlook for the remainder of the year, however, Welltec® adjusts its revenue forecast for 2013.
Revenue increased by 20% year on year to DKK 481 million with all regions continuing to contribute:
In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 23% to DKK 256 million
Revenues in the Americas rose by 12% to DKK 161 million
Asia Pacific recorded a revenue increase of 35% to DKK 63 million
Welltec® posted a 21% increase in EBITDA to DKK 224 million, equating to an EBITDA margin of 47% (47% in 2012)
Operating profit (EBIT) increased to DKK 140 million (DKK 117 million)
Welltec® adjusts its full-year revenue forecast to a range of DKK 1.9-2.1 billion (12%-24% growth), against earlier expectations of DKK 2.1-2.3 billion, and maintains expectations of an EBITDA margin at or around recent historical levels.
Jørgen Hallundbæk, CEO: “We were pleased to see a return to familiar levels of profitability in the second quarter, although we are yet to see the expected acceleration in growth. The development underlines the importance of continuously improving the ability to realize our plans. While we deliver excellent service quality and uncompromised safety, it is also vital that we continue to execute on a strong opportunity pipeline. This will ensure that we fully utilize our expanded capacity, accelerate growth and capture the considerable potential we see in our markets and with our clients.”

Investor conference call
Welltec® will discuss its results during an investor conference call today at 5 pm CET. An accompanying slide presentation is available on the “Investors” section of www.welltec.com under the subheading “Download Center”. The conference call can be accessed by dialing in a few minutes before the 5 pm CET start and informing the operator that you are dialing in for Welltec’s investor conference call, conference ID 88510694.

Conference access numbers
Denmark: +45 32 72 80 18
UK: +44 8445 718 957
US: +1 866 682 8490

The call will also be webcast simultaneously on a listen-only basis. Please log in via the “Investor” section of the website in due time to test your browser. A replay of the webcast will then be available following the transmission.

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.

For further information, please contact:
Jesper Helmuth Larsen, Chief Financial Officer,
mobile: +45 23 29 26 00

Morten Græsbøll Ottesen, Investor Relations Director,
mobile: +45 22 33 73 08


Q2-2013 Report and Investor Conference Call announcement

Welltec® will disclose its interim quarterly financial report for Q2-2013 on Thursday 22 August 2013 and will discuss the results during an investor conference call.

The investor conference call will take place on Thursday 22 August 2013 at 5 pm CET.

An accompanying slide presentation will be available on the “Investor” section of Welltec’s website at www.welltec.com under the subheading “Download Center”.

The teleconference can be accessed by dialing in a few minutes before start and telling the operator that you would like to participate in Welltec’s investor conference call, conference ID 88510694.

The call will also be webcast simultaneously on a listen-only basis. Please log in via the “Investor” section of the website in due time to test your browser. A replay of the webcast will then be available following the transmission.

Conference Call Access Numbers:
Denmark: +45-3272-8018
United Kingdom: +44-8445-718-957
USA: +1-866-682-8490

For further information, please contact:
Jesper Helmuth Larsen, CFO, Cell: +45 2329 2600

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.


Optimized multi-stage ‘Plug & Perf’ in the Rockies

A restriction, a severe dogleg and a pressing deadline were just some of the obstacles Welltec’s team recently overcame to successfully service a well in the Rocky Mountains.

When an operator needed to perform a 26 stage ‘plug & perf’ fracing operation, they called Welltec due to previous successes where our readily available tools and reliability had helped them in the past. Time was of the essence and over the course of just 14 days, 26 runs were made covering an impressive 146,608 ft. (44,686 m) with zero misruns and no lost time. The challenges were easily overcome and the Well Tractor conveyance solution provided several added HSE benefits to the operation due to the low footprint, the reduced personnel requirements and less heavy lifting.

Upon completion the operator said: “This job went very smoothly. We were under the gun to get this well on production ASAP, and the Well Tractors enabled us to do this in a timely manner.”

To learn more please download our Conveyance Solutions brochure or read the full case story.


Welltec Increases Revolving Credit Facility

Welltec A/S “Welltec” increases the 2017 Revolving Credit Facility “RCF”.
Welltec has today increased the existing USD20m RCF by incremental USD20m. The new USD40m facility, maturing in February 2017, has been arranged by Welltec and will be used for general corporate purposes.

With the new facility, Welltec’s liquidity reserves comprising cash and committed credit facilities will be appropriately sized in order to support future growth and ensure sufficient financial flexibility for Welltec in the coming years.
The general terms and conditions of the facility will remain unchanged.

For further information, please contact:
Jesper Helmuth Larsen, CFO, Cell: +45 2329 2600

About Welltec
Welltec is a leading provider of well intervention services to the oil and gas industry using robotic technology. We are also expanding into well completion products and solutions. Our services and solutions enhance well production per-formance and increase the amount of recoverable oil and gas reserves in reservoirs. We provide our services and solu-tions for onshore and offshore oil and gas wells and operate in deepwater, subsea, Arctic, high-yield, heavy oil, geo-thermal and unconventional environments as well as conventional environments. We operate in all hydrocarbon pro-ducing areas and had, as of December 31, 2012, 916 dedicated employees in 25 countries. For the twelve months ended December 31, 2012, we had revenues and EBITDA of approximately DKK 1,701 million and DKK 802 million, respectively (or approximately US$ 301 million and US$ 142 million, respectively).


Double nipple profile removal in one run – a world’s first

Two nipple profiles were obstructing the wellbore preventing an operator offshore Indonesia from installing a tubing patch in a producing well. Welltec was called to assist and within less than 15 hours and 30 minutes including rig up / down the obstruction was removed; a highly efficient operation with no non-productive time. This was the first time two nipple profiles have been machined away in a single run and demonstrates the capabilities of this technology to accomplish workovers on e-line.

A Well Stroker® and a Well Miller® NPR was run in hole, the latter fitted with a custom bit for nipple profile removal. The first nipple profile was tagged and milled through in just 18 minutes; then the toolstring continued to the second nipple profile. After 3 hours and 46 minutes the profile was completely removed. The success of the operation was confirmed by passing through the nipple profile area with the tool.

To learn more about the technology applied please view the Milling Solutions brochure or read the full case story Two nipple profiles removed in one run – a world’s first.


Extended reach microseismic deployment

An operator in Alberta approached Welltec® for a reliable conveyance solution to gather microseismic data from adjacent wells in connection with a frac operation. The operator needed to deploy Pinnacle microseismic measuring equipment (MSM) in two wells and chose Welltec based on proven capabilities and Pinnacle’s recommendation.

The Well Tractor® 318 was selected for the operations and a System Integration Test (SIT) was conducted at the shop prior to mobilization to ensure perfect compatibility between the tools.

On location, the toolstrings were run in hole and tractored to TD. The Pinnacle MSM equipment was pulled up hole sequentially to match the stages being frac’d in the adjacent well and then returned to surface upon completion.

For the operator it was key to find a conveyance tool that would enable them to quickly and reliably reach the desired depth for data acquisition and the Well Tractor® proved the best tool for the job.

To learn more about the technology applied please view the Conveyance Solutions brochure or read the full case story Record depth for microseismic acquisition.


Another successful cementless completion delivered

Thirteen Welltec Annular Barriers (WAB™) were successfully installed during the recent, second field deployment of this innovative, new Completion Solutions. The result is a cementless lower completion with seven pressure isolated zones that will last the full lifespan of the well.

This unique zonal isolation capability is enabled through surface-controlled, hydraulic expansion of the metal WABs that consequently contact and conform to the formation, effectively sealing off the zones. The WAB™ has been developed in cooperation with a number of operators to meet even harsh well environments, sealing in non-uniform and in-gauge boreholes, thus eliminating the shortcoming of traditional packers while maintaining the qualities.

This operation took place in the North Sea, offshore Norway, where a total of thirteen 5m long WAB’s were mounted on the exterior of a 7 5/8” liner. This allowed a maximum diameter, full-bore liner with rotational capability to be deployed in the 10” hole. Once the liner hanger was set, the WABs were hydraulically expanded under surface control, while simultaneously work hardening the alloy, within the 2,134 m (7,000 ft.) horizontal section of the 5,486 m MD (18,000 ft.) well.

All WAB’s were successfully expanded resulting in a cementless lower completion with seven pressure isolated zones.

Read more about the WAB™ and our Completions Solution on our website.


Welltec preparing for a busy fall season

Welltec can look back at an impressive first half of 2013 with exhibitions in North America, Europe, Middle East, Asia, Africa, and South America, nine technical papers, 18 presentations, and two product awards, but we are by no means resting on laurels. During the fall season we will be exhibiting at SPE NAICE (Nigeria), Deepwater Intervention forum (USA), Offshore Europe (UK), ATCE (USA), KIOGE (Kazakhstan), IADC Middle East Drilling (UAE), Kiev O&G (Ukraine), APOGCE (Indonesia), OTC Brasil, Deepwater Angola, ADIPEC (UAE), and ICoTA Roundtable in Aberdeen (UK). We are currently preparing another five papers and have been invited to give a number of presentations on e.g. Subsea Interventions. We look forward to seeing you in the fall!