Welltec Expands Hi Tech Manufacturing Capabilities

To further support the strong, continued demand for Welltec’s services globally, Welltec is pleased to announce expansion of its manufacturing capabilities at the company’s headquarters near Copenhagen, Denmark.

This week saw the order of state-of-the-art, world class, OKUMA machine centers to complement our existing fleet. Through this increased capacity and the planned, additional manpower, Welltec will expand its fleet significantly to meet growing client demand for our robotic, well intervention tools and solutions.

Q2-2012 Report and Investor Conference Call and home member state announcement

Welltec will disclose its interim quarterly financial report for Q2-2012 on Thursday 23 August 2012 and will discuss the results during an investor conference call.

The investor conference call will take place on Thursday 23 August 2012 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 telling the operator that you are dialing in for Welltec’s investor conference call, conference ID 22065564.

Conference Call Access Numbers:
Denmark: +45-3272-7625, toll free +45-8088-8464
United Kingdom: +44-8444-933-800, toll free +44-8006-940-257
USA: +1-631-510-7498, toll free +1-866-966-9439

Pursuant to the Rules and Regulations of the Luxembourg Stock Exchange (edition 2009/08), section 903 and section 904(vi) it is noted that Welltec has paid interest on the bonds per 1 August 2012.

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 performance and increase the amount of recoverable oil and gas reserves in reservoirs. We provide our services and solutions for onshore and offshore oil and gas wells and operate in deepwater, subsea, Arctic, high-yield, heavy oil, geothermal and unconventional environments as well as conventional environments. We operate in all hydrocarbon producing areas and had, as of December 31, 2011, 793 dedicated employees in 24 countries. For the twelve months ended December 31, 2011, we had revenues and EBITDA of approximately DKK 1,220 million and DKK 593 million, respectively (or approximately US$ 212 million and US$ 103 million, respectively).

Important Notices
This press release contains forward-looking statements. These statements reflect current beliefs, as well as assumptions made by, and information available to, Welltec. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual future results and developments could differ materially from those set forth in these statements due to various factors.

E-line Milling of Stubborn Frac Sleeve Avoids Rig Work Over

Responsiveness and ingenuity were key elements when Welltec was asked to assist with removing a protective frac sleeve which had been stuck in a subsurface safety valve for 22 years.

Attempts made with conventional methods including slick line, coiled tubing and even pulling 110k lbs with a rig were all unsuccessful. Nevertheless, the well was kept on production until a tubing leak was detected below the sleeve and the well labeled as inoperable until the sleeve could be removed and the tubing patched.

Because of the depth control required for the re-entry, coiled tubing was ruled out. The operator’s options were reduced to either a work-over rig to remove and replace the entire string or an innovative, last attempt to remove the sleeve on e-line. Welltec’s e-line milling technology was preferred by the client as a cost-efficient alternative to the costly rig work over.

Welltec worked closely with the client to find the best possible solution. The answer was a 3.9” (98 mm) MMC core drill bit with a centralizer fitted on the Well Miller. At the well site, the sleeve was tagged at 2,081 ft (634 m) and after four and a half hours, the sleeve was milled out. Shortly after, it was pushed to the bottom of the well and retrieved with slickline.

Welltec’s e-line solution resulted in significant (~ 96%) cost savings including about six days of time savings compared to a rig work over. The client consistently considers Welltec’s solutions when planning their interventions and once again, they have reaped the rewards.

Click here to read more about this unique milling operation or contact Jeremy Albright, Account Manager Alaska at: JAlbright@welltec.com

Welltec Nigeria Receives Safety Award from ExxonMobil

Our strong commitment to safety has been recognized by ExxonMobil with the “Catch of The Week” award given to Welltec in Nigeria July 2012. This award reflects our focus as a company to be safe and keep others safe in every situation we encounter.

During an operation at the Percy Johns installation offshore Nigeria, Welltec observed an unsafe action that could have resulted in personal injury to another person and reacted promptly to prevent it.

Active participation in internal and external safety programs is the responsibility of every Welltec employee and demonstrates our motivation and dedication to our core values. As a company, we believe that prevention is better than correction and work according to that principle every day.

Exceptional Service Quality Delivered in Sakhalin, Russia

Welltec Oilfield Services Russia has delivered outstanding service on jobs performed for Sakhalin Energy Investment Company Ltd. (SEIC) from September 2011 to July 2012.

During that period Welltec had zero misruns. This is a result of thorough job planning, solid client communication and excellent accountability on the part of our local and Denmark based work force.

Service quality has reached an impressive 99.74% for all operations executed for SEIC during these 11 months.

Welltec Oilfield Services Russia has a direct contract with Sakhalin Energy Investment Company Ltd. This contract has been effective since early 2009 and was recently extended thru the end of 2013.

Fast, Efficient and Reliable Logging in Nigeria

The Well Tractor has demonstrated its value to Shell in Nigeria by successfully conveying a cement bond logging operation more than four times faster than the available, alternative conveyance option.

The Well Tractor 318 XR conveyed the cement bond logging tool to total depth 10,730 ft (3,270 m) for the main pass as well as a repeat pass without any incidents. The entire tractor operation was completed in eight hours versus the estimated 36 hours pipe conveyed logging would have taken, providing Shell with an approximate gain of $270,000 in rig time savings alone as a result of applying this e-line solution.

Area VP Sub Sahara Africa, ‘Gbenga Onadeko comments: “This was an extremely important job which has given us a good foundation to spring from and to develop our business even further in Nigeria. To highlight our commitment to our clients in Nigeria, we have brought in the right people and established tool maintenance processes to ensure the highest service delivery possible.”

Shell has now adopted the Well Tractor for all cased hole conveyance in Nigeria as a result of the improved operational efficiency they experienced with the Well Tractor.

Client quote
“Good job done by Welltec. The tool demonstrated excellent performance that clearly shows differentiation from the alternatives”, John Ramalho, Well Delivery Manager, Shell.

Please click here for more details about this operation.

Ecopetrol Increases Contract Value due to High Service Delivery

The largest and leading oil company in Colombia, and one of the top five in Latin America, Ecopetrol, has increased Welltec’s total contract value in excess of 300%. This increase is a result of the high service quality and additional value delivered by Welltec. Over the course of the current contract, Welltec has increased infrastructure, added resources and improved processes to demonstrate commitment to sustained operations in Colombia.

Subsequently, our Service Quality Indicator has been improving steadily, from 75% to 87%; led by a strong attention to detail and skilled personnel.

“We appreciate Welltec’s commitment to our operations and recognize the good work, demonstrated by Welltec, which has facilitated this project,” states the Superintendent of interventions, Ecopetrol.

Welltec Participation at SPE ‘Water Flooding’ Workshop in Angola

Welltec participated in the two day SPE workshop “Water Flooding Offshore West Africa” with contributions that demonstrated our e-line capabilities and commitment to Angola.

The General Manager of Welltec Angola delivered a presentation entitled “Water Flooding: E-Line Conveyed Interventions” that highlighted the importance of quick remedies when it comes to early water breakthrough.
“The best strategy is to constantly intervene in order to prevent or correct the issues relating to water flooding. Welltec offers a suite of intervention tools to isolate water producing zones and ultimately increase production.” Said Simeon Tor-Agbidye, GM Welltec Angola.

The presentation and Welltec’s presence on both days of the workshop were very well received and appreciated by the high level audience, including the minister of petroleum and senior managers from both oil companies and service companies. It clearly showed Welltec’s commitment to doing business in Angola by bringing in local, experienced people to drive our business further and contribute to the training of Angolans for the oil sector.

The workshop took place in Luanda, Angola 11-12th of July.

For further information about our service offerings in West Africa please contact Simeon Tor-Agbidye at sagbidye@welltec.com

Ball Seat Milling on Wireline Saves the Reservoir

With an effective milling campaign in Canada, Welltec has turned a risky, high cost operation into an economical, non-intrusive solution for optimization of a sensitive reservoir.

An operator working in the Bakken formation in Saskatchewan needed to remove a series of ball seat restrictions in order to set a bridge plug near the toe of the well. They had been using jointed pipe and coiled tubing, which resulted in some formation damage as a consequence of pumping large amounts of fluid to power the mud-motors. The costs were high and the results were not ideal.

The client was therefore looking for a cost-effective solution that would not require introducing more fluids into the reservoir. They decided that Welltec’s milling capabilities on e-line was an attractive alternative based on the technical advantage of an electrically powered milling tool.

Once on location, the Well Tractor was used to convey the toolstring down the horizontal well path to the exact location of every ball seat. Once there, the Well Miller, equipped with a 2.845” ball seat milling bit, was activated and milled out the ports for further accessibility below.

To date, Welltec has removed 11 ball seats for this operator with milling times typically less than one hour per ball seat. This has been achieved without adding significant fluid to the formation or requiring large amounts of surface equipment. Improved production is anticipated from these low pressure, fluid sensitive formations.

New Base in Indonesia Commemorated by Safety Achievement

Capitalizing on strong growth in the area Welltec recently opened a new base in Indonesia. The base is located in Balikpapan where experienced personnel are fully equipped to perform Welltec’s full range of services to clients.
The base was opened in style with attendance from key clients and top level management. During the grand opening it was demonstrated that the spacious size of the base can easily handle the current activities as well as the projected growth. With this expansion, Welltec has both the process and location in place to receive, prepare and package for shipping of multiple tools simultaneously for the benefit of our clients in the area.

“Our commitment to our Indonesian clients is underpinned with these new and improved service facilities. We are even better positioned to increase the value of our activities and meet our ambitious development goals,” says Antonius Aji, General Manager, Indonesia.

A perfect HSE record
The base opening also celebrated another important accomplishment in Indonesia: five years without any incidents. This has been achieved through a dedicated effort to quality, health, safety, the environment (QHSE) as well as meticulous job planning.

QHSE is a strong focal point throughout the entire Welltec organization by both management and employees. This is how we reach our objective of delivering unsurpassed service quality to all our clients.

Since opening the first base in Balikpapan in 2009, Welltec Oilfield Services Indonesia has secured direct contracts and performed a series of remarkable jobs. These include the world’s first nipple profile milling on e-line and the first gas lift change outside of the USA.

For more information about our service offerings in Indonesia please contact General Manager Antonius Aji on phone +62 21 719 8750 or email aaji@welltec.com