World’s First Hydrate Milling from RLWI Vessel

Building on an innovative reputation, Welltec has performed another unique, world’s first operation; milling and removal of a hydrate plug using wireline in open water (Riserless) off a Light Well Intervention vessel (RLWI).

In offshore UK, during start-up of an injection well, it was impossible to begin injection.

When the primary solution was not able to achieve any visible results after three days of attempts, Welltec rigged up a solution to be carried out from a RLWI vessel. The Well Tractor and Well Cleaner RCB successfully removed 173 ft (53 m) of hydrates from the well in less than 20 hours of actual milling time. At that time a well path had been established down to 1,997 ft (608 m) of depth, which enabled the client to re-establish functionality to the downhole safety valve.

This was the world’s first milling of hydrate on e-line, proving yet another application of Welltec’s unique milling and cleaning solutions. This capability has widespread application for operators around the world as a remedial approach for this complex problem.

Please click here to read more about this operation.


Rigless SSSV Profile Cleaning with Well Flowing

Given the option to enact a repair on a malfunctioning SSSV without replacing the completion or shutting in production, one of our clients in Mexico chose to do just that.

The operation took place in September 2012 in the southeast portion of the Gulf of Mexico. The operator was experiencing a malfunctioning SSSV on an oil producer. It was anticipated that debris had accumulated over the profile of the SSSV, preventing it from fully closing.

After careful job planning with the client, Welltec mobilized a Well Tractor and Well Cleaner WBH to remove the debris that had settled in the top area of the flow tube.

The entire inner profile of the SSSV was cleaned after one hour of cleaning time while the well was still flowing at 2,100 BOPD. Upon the successful cleaning operation, the SSSV was tested three times and proved to open and close normally.

For more information about this breakthrough job please contact General Manager, Mexico, Jose G. Carillo. You can also read more about the job by clicking here.


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