Three world records in one job

When E&P Yemen needed to log across an 3,087 ft (941 m) challenging, open hole section in an 81.54° deviated water injection well they called on Welltec for a reliable solution that would reach target depth. This operation marked three world records: longest distanced tractored in one job with the 218 Well Tractor, longest distance tractored in an open hole well and longest distance tractored with tandem tractors. An impressive 46,801 ft (14,265.3 m) were tractored during this operation, which was also the first e-line, tractor- based open hole logging job in Yemen.

The well is located in the Kharir Basement in Yemen and was completed in July 2011 to support pressure of neighboring oil producers. It had been injecting water at a rate of ~8,000 BWPD since August 2011 and was experiencing issues with carbonate scale build-ups that had led to decreased injectivity. Due to previous experiences, Total E&P Yemen tasked Welltec with removing the scale bridges prior to the PLT operation and the Well Miller® 218 configured for scale removal milled out 46 ft (14 m) of scale bridges before returning to surface.

The Well Tractor® 218 was selected for the following logging job in a tandem configuration for open hole PLT logging. The Well Tractors were first activated at 9,918 ft (3,023 m) to tractor out of the casing shoe and down to TD. 15 logging passes were conducted. Continuously switching between the two tractors allowed the toolstring to pass through the open hole section despite its challenges and length.

This first horizontal logging operation was of high importance to Total E&P Yemen and proved that there are definite time savings from the e-line conveyance method, due to the fast mobilization, easy rig up / down and the data quality achieved.

To learn more about the solutions applied, please see the Clean-out Solutions brochure or the Conveyance Solutions brochure, or read more about the two operations in the two case stories:

New world record: 46,801 ft tractored in one run in open hole well

Removing carbonate scale to ensure wellbore access in Yemen


Unconventional acid stimulation in the Permian

Recently, an operator in the Permian Basin in Texas engaged Welltec to perform a complicated 18 stage, sliding sleeve, acid stimulation operation in a horizontal well. Our solution was significantly less expensive and much more time efficient than the jointed pipe or coiled tubing alternatives.

This operation required the opening of a number of 4 1/2” sliding sleeves to acid frac through them individually. So open, stimulate, close and move on to open the next sequential sleeve in this 18 stage completion while remaining in the wellbore.

An extensive System Integration Testing proved the capability of the tools and the operation commenced by opening the toe sleeve and then tractoring past it. Acid frac stimulation was done through the opened sleeve while the toolstring remained in the wellbore. Once stimulated, the sleeve was closed and the toolstring moved on to open the next – a procedure which was repeated 17 times more. Before pulling out of hole, all 18 sleeves were re-opened for production.

Because Welltec was able to stay in the wellbore during acid stimulation, the operator saved considerably in terms of time and money. The job was completed in just five days, as compared to ~10 days using coiled tubing or ~20 days with a workover rig.

To read more about this operation, please see the full case story, or read more on Welltec’s Mechanical Solutions in our brochure.


412 Well Tractor receives praise on Angola job

Welltec was called upon when an operator in Angola needed to perform cement bond logging in a 14” OD casing, offshore Angola. Due to the large casing, our 412 Well Tractor was the only conveyance solution which could accomplish the job on e-line.

A System Integration Test was successfully conducted prior to load out. The toolstring, consisting of the 412 Well Tractor and bond logging tools, was run into the well. At the kick-off point at 9,711 ft. (2,960 m) the Well Tractor was activated and successfully tractored to the total depth at 11,903 ft. (3,628 m). Here the logging tools were activated and data acquired for cement integrity evaluation. Both the Well Tractor 412 and CBL tools worked flawlessly and the operation was accomplished in ~18 hours.

“Please extend my compliments to your team for an excellent job on the bond logging. I was very impressed with their motivation / participation in all aspects of the job from safety to execution. I have great faith in your guys’ abilities after seeing this well and will pass on to our completions guys here,” said Philip Neff, BP Ops Petro physicist, Luanda, Angola.

To read more about this operation, please see the full case story, or read more on Welltec’s Conveyance Solutions in our brochure.


Welltec India applauded for commitment to safety

During a recent intervention campaign for BG India, Welltec helped to build and maintain the team effort of achieving ‘Safety 101’. This is BG’s internal safety mantra and signifies ‘One Team, One Goal, Zero Injuries’. BG’s program is a good fit with Welltec’s own global safety culture resulting in the program being easily embraced by the Welltec personnel.

Thorough pre-job planning prior, along with continuous monitoring during the campaign laid the groundwork for delivering on the ‘zero injury’ goal. To ensure optimal cooperation between the three participating companies, the campaign was initiated by a team building exercise addressing the HSE Standards, a technical walkthrough of Welltec’s technologies, and creating a joint safety culture. In addition, a successful SIT was conducted in Gandhinagar, including key personnel from BG, Welltec and HLSA and KPIs were assigned based on HSE parameters ensuring that One Team had a single purpose “to safely deliver the plans on time”.

During the campaign, Welltec completed 25,132 man hours of operations along with 34 km of tractoring on a number of platforms with numerous rig-ups, lifts, transfers and jobs. This was accomplished with zero injuries and was applauded by BG India for our commitment to their safety mantra. Welltec was originally selected as a partner for this campaign based on technical capabilities and also for an outstanding global Q and HSE performance.


First operational run of new, high temperature, DC electronics

Welltec has recently completed the first logging job with the newly developed DC electronics for the Well Tractor.

An operator needed to perform a casing inspection log for scale build-up across the perforations of a high temperature, cased hole, horizontal well, in the Haynesville Shale. They selected Welltec for the job due to our existing, AC e-line capabilities. During job planning it was suggested to try the new HT, DC Well Tractor, to which the client agreed.

Prior to load out a thorough System Integration Test was successfully conducted to test the compatibility with the e-line provider’s equipment and cable.
The toolstring was run in hole with the Well Tractor and logging tool to the kick-off point at about 11,581 ft. (3,530 m), at which point the operator began pumping well fluid at ~1 bpm to help keep the temperature within limits. The Well Tractor was engaged and conveyed the toolstring ~1000 ft. (~300 m) further before activating the ultrasonic tool for the caliper and bond information required around the perforations. A temperature strip in the electronics’ housing recorded the maximum temperature reached in the well, 335°F (160°C).

The Well Tractor and DC electronics handled the high temperatures with no complications, proving its applicability to extreme environments. The operator achieved their objective and acquired data across the perforations to gain a better understanding of the downhole conditions and the scale buildup levels.

To read more about this operation, please see the full case story, or read more on Welltec’s Conveyance Solutions in our brochure.


Interim Report Q1 – 2013

INTERIM REPORT Q1 – 2013

Welltec’s revenue growth eased in the first quarter following the exceptional performance in the third and fourth quarters of 2012. EBITDA was reduced due to a combination of lower quarterly revenues and the significant investments in operational capacity in order to deliver the continued growth. As seen in previous quarters, this front-loading of additional costs has a short-term impact on margins and is a consequence of the continued growth cycle. Accordingly, Welltec® upholds its revenue and earnings forecast for the full-year.
Revenue increased by 18% year on year to DKK 428 million with all regions again contributing:
In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 12% to DKK 220 million
Revenues in the Americas rose by 18% to DKK 152 million
Asia Pacific recorded a revenue increase of 46% to DKK 56 million
Welltec® posted an 11% decrease in EBITDA to DKK 154 million, equating to an EBITDA margin of 36% (48% in 2012)
Operating profit (EBIT) decreased to DKK 79 million (DKK 108 million)
Welltec® maintains its full-year revenue forecast in the range of DKK 2.1-2.3 billion (24%-35% growth) and holds expectations of an EBITDA margin at or around recent historic levels.
Jørgen Hallundbæk, CEO: “During the first quarter we have continued to see many positive developments around the world. In India, our e-line technologies are increasing production without the need for a rig or coiled tubing unit, proving our value proposition in the early stages of our partnerships there. Also in the Middle East, with another successful deployment of our award winning Well CutterTM tool. With the investments made in recent quarters, Welltec® is well positioned to deliver the growth planned for 2013 and beyond.”

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”. A Danish version of these key highlights can also be downloaded. The conference call can be accessed by dialling in a few minutes before the 5 pm CET start and informing the operator that you are dialling in for Welltec’s investor conference call, conference ID 53914435.

Conference access numbers
Denmark: +45 32 72 80 18
UK: +44 8445 718 957
US: +1 866 682 8490
The presentation and a web-cast recording of the investor conference call will be available online following today’s live transmission.

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

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 the Company 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 the Company’s control, and which could cause the Company’s actual results to be materially different from these forward-looking statements. While the Company 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 the Company’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. The Company 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..


Jørgen Hallundbæk cuts the ribbon on new Houston facility

The Grand Opening of Welltec’s new Houston facility in Katy was attended by a number of clients and business partners. Jørgen Hallundbæk, founder and CEO of Welltec, welcomed guests and employees before cutting the ribbon and welcoming all inside for a reception and tour.

“Our growth in the US, Canada and Latin America has created the need for expansion to accommodate increases to our staff as well as improve our maintenance facilities. I’m proud to open this new base, which will be our Headquarters for the America’s going forward. From this facility we have the work space and facilities to continue delivering world class service for our North and South American clients,” said Jørgen Hallundbæk.

Attending the opening were representatives from the Danish American Chamber of Commerce, the Danish consulate, the Katy Area Economic Development Council, EastGroup Properties and a Danish delegation representing Esbjerg City, Port and Business Development Center (DK), in addition to a number of clients and Welltec employees from around the globe.

The new base, situated in the new West Energy Corridor at the Grand Parkway and West Katy Freeway, includes space for management, sales, operations, administration, maintenance and training.


Q1-2013 Report and Investor Conference Call announcement.

Welltec will disclose its interim quarterly financial report for Q1-2013 on Thursday 16 May 2013 and will discuss the results during an investor conference call.

The investor conference call will take place on Thursday 16 May 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 Centre” before the teleconference.

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 53914435.

Conference Call Access Numbers:
Denmark: +45-32728018
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.


Removing lock mandrel to return well to production

An operator, offshore India’s East Coast, needed to remove a thru tubing sand screen (TTSS) in a well that was being converted to injector. The TTSS was placed thru a 3.5″ QX Lock Mandrel which was set on a 3.5″ SSD nipple.

A slickline operation had been unable to remove the TTSS even after more than 300 attempts of jarring. After thorough risk assessment and testing at the Welltec® yard, Welltec® mobilized to the well site. This was a platform, which in addition to crane and space limitations, had daylight only restrictions. It was Welltecs first operation of releasing a Lock Mandrel in the Asia Pacific region. The first run revealed debris on top of the sand screen and a clean-out run was performed with a Well Cleaner® PST High Volume. The subsequent run with the Well Stroker® successfully retrieved the TTSS and the operation was completed in a single day.

Downtime was reduced to just five days and the operator avoided having to mobilize heavy equipment with a much larger footprint. During subsequent well testing, well injection of 22,000 bwpd was achieved compared to 0 with TTSS in the well. The well is now ready for the operator to convert to an injector which will facilitate an increase in production from the depleting field.

To learn more about the technology applied please view the Clean-out Solutions brochure or Mechanical Solutions brochure or read the full case story: Removing lock mandrel to return the well to production.


Welltec popular in Kazakhstan

The Welltec booth was popular at the recent Atyrau Oil & Gas show in Kazakhstan, 16-18 April, 2013. Many visitors dropped by to discuss our technologies and they were keen to learn more about our inherently safer intervention solutions. Specifically, our Clean-out and Conveyance Solutions were of particular interest. The visitors represented a broad selection of the industry: from operators and logging companies, to pipeline services and training centers. This event also marked the introduction of our new, Russian brochure.

Please click here to download the Russian brochure.