Meet Welltec at Stand #4075 during the OTC

We will be displaying our newest cutting-edge technology at the OTC this year: The Well Cutter. This is a brand new, e-line conveyed tool designed with a unique cutting mechanism, which means that it leaves a smooth, polished surface. The Well Cutter eliminates the need for explosives which can pose an operational risk, thus presenting an attractive alternative for pipe recovery operations.

See our new technologies
We will also be displaying and explaining a number of other technologies that demonstrate how we do things differently, including the Welltec Annular Barrier (WAB). You can experience a real-life model of this innovative equipment designed to block fluid migration behind the casing and provide cement assurance.

If you are attending the OTC this year, please stop by our stand and let us explain how we can take your interventions further.


Welltec Intervention at ICoTA

Welltec had an exceptional showing at this year’s ICoTA in the Woodlands with contributions that clearly demonstrate our value proposition and capabilities within e-line solutions.

2012 Award Finalist
Leading up to the show we were proud to see the new Welltec Dual KOT being selected as a finalist for the 6th ICoTA Intervention Technology Award. This is a prestigious award for which Welltec has been nominated four of the past six years.

The Welltec Dual KOT is a robotic intervention tool assembly that provides unparalleled capabilities for operators to improve production, save time and money as well as optimize their gas lift designs by being able to retrieve and install GLV’s in a single trip deeper into a highly deviated or horizontal well.

SPE Short Course on Tractors
Brian Schwanitz of Welltec and ICoTA Sr. Co-Chair taught the first ever SPE Short Course involving tractors entitled “Tractor Technologies for Well Interventions”. This lecture on cleaning and milling was facilitated by Alex Crabtree of Hess who opened with a presentation and content on how tractors have come of age and should be considered as a first option for well intervention.

Technical Content
Welltec was the technology behind three, client presentations of SPE papers that received interest from both operators and other service providers. Topics varied from milling to cleaning and the aforementioned gas lift valve operation:
SPE 154404: Milling of an Electric-Line Obstruction with Electric Line Conveyed Technology by Bruce McIninch, Mickey Mullin (Marathon) and Almir Dulic (Welltec).
SPE 154411: Rigless Debris Removal from a Subsea Safety Valve With a Wishbone Honer Brush on Electric Line by Rogelio Higa (PEMEX) and Percy Saavedra (Welltec).
SPE 154417: High-Angle Gas Lift Valve Removal and Replacement in a Single Run by Hayes Chow, Daniel Herrmann, John Condio (ConocoPhillips), Jeremy Albright, Leighton Burley and James Greenlee (Welltec).

The ICoTA Coiled Tubing and Well Intervention Conference takes place every year in the Woodlands. It is one of the global E&P industry’s foremost venues for the latest intervention technologies, electric line, slickline, hydraulic workover and coiled tubing used in the well servicing industry.


The Well Cutter Makes the Cut

Welltec’s newest innovation, the Well Cutter, has made its debut with a successful pipe cutter operation on a 4½” 12.6 #/ft tubular for a Russian operator.

The Well Cutter got the job done in a total tool operating time of 90 minutes with an effective cutting time of 80 minutes.

In addition to not having to mobilize and store explosives for the Well Cutter offshore, handle dangerous explosives on the drill floor or shut down for radio silence, the client estimated that they had saved about one week of rig time by not having to go in and polish or ‘dress’ the cut prior to fishing the cut pipe out of the well.

The operation took place in a low angle well (

The results of the cut can be seen below and were quoted by the client to be ‘the perfect cut.’

Cut Casing Perfect Casing Cut

Please click here for more information about this operation.


Welltec Secures $325M Senior Note Offering

Welltec announced February 2, 2012 the completion of its US$ 325 million aggregate, 8% Senior Secured Note offering (‘The Notes’). Due in 2019, the 144A/RegS offering drew significant demand from institutional investors in both Europe and the US.

The Notes have been assigned a (P)B1 rating by Moody’s (stable outlook) and a BB- rating by Standard & Poor’s (stable outlook) with equivalent corporate ratings. The Notes have been listed on the Official List and admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange.

The net proceeds of the offering of the Notes will be used to refinance existing credit facilities, pay a special shareholder distribution and for general corporate purposes.
The offering marks Welltec’s successful debut in the international capital markets. The offering strengthens Welltec’s capital base in support of Welltec’s continued high growth. The Notes, which carry interest at a fixed coupon, will mature in 2019 and extends Welltec’s funding significantly compared to previous facilities. The US dollar denomination of the Notes, moreover, creates a natural hedge of Welltec’s predominantly US dollar based revenue.

Jørgen Hallundbæk, the Founder and CEO of Welltec, said: “Our bond issuance will allow us to simplify our capital structure, extend our maturity profile and fix the vast majority of our interest costs. In a larger perspective, we have demonstrated our ability to access the international capital markets and diversify our funding sources. The transaction and the growth it will support will move Welltec to the large cap league. Our profile is now known among some of the largest asset managers in the world. We are grateful for their support and will do our best to deliver a healthy return on their investment. If additional funding will be needed, we would certainly be looking to tap the international capital markets again, and we may consider a listing of our equity in a couple of years.”

The offering was arranged by Goldman Sachs International and Credit Suisse as Joint Book Runners and DNB Markets as Co-Manager. DNB Bank has made available a new multicurrency working capital facility in an amount of US$ 20 million. Bruun & Hjejle acted as capital markets adviser and Danish legal counsel.

For further information, please contact Jesper Helmuth Larsen, CFO.


Welltec Canada Acquires Endeavor E-line Services

Welltec is pleased to announce that it has grown its Canadian operations with the acquisition of Endeavor E-line Services, the wireline portion of Essential Energy Services, Ltd. in Calgary, Alberta. A warm welcome to our new colleagues!

The increases to our asset base and service points results in Welltec Canada, Inc. becoming the 5th largest, cased hole eline provider in the country. This addition, bundled with Welltec’s unique portfolio of intervention technologies plus the standard cased hole offering, will provide superior value for our Canadian customers.


Welltec secures Ecopetrol Contract in Columbia

Welltec is proud to announce a recent contract award by Ecopetrol in Columbia for the conveyance services in one of their most challenging projects planned for 2012-13.

This award represents the first contract between Ecopetrol and Welltec and enables our innovative products to assist them in expanding their reservoir knowledge through increased Open Hole logging. Welltec’s unique, robotic conveyance solution has allowed operator’s to acquire hundreds of open hole data sets over the recent years.

Setting the tone for future business in Colombia and Latin America, both companies plan to commence a long term relationship in which Welltec will have the opportunity to demonstrate an ever increasing portfolio of innovative, robotic solutions. Already proven in many other parts of the world, the use of light weight, electric line conveyed equipment offers a safer, more environmentally friendly and cost effective alternative for optimizing hydrocarbon recovery over the life of the well.


New Welltec Annular Barrier Nets $7MM Contract

A major North Sea operator building on the successful qualification of open hole annular barriers has awarded further work to Welltec, bringing the accumulated value of work to approx. $7MM.

The scope of work covers both further qualification and commercial supply of the Welltec Annular Barriers (WAB) extending the range of solutions available. The WAB solution enables cementless well completions to be realized, providing a combination of cost savings and enhanced oil recovery for a large offshore field development program.

Please click here for more information about the Welltec Annular Barrier.


Outstanding Rigless Well Intervention Achievements in Malaysia

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Murphy Oil Malaysia recently completed a highly successful, rigless intervention campaign using Welltec services. Not only did these platform based operations allow immediate production from a well that was temporarily abandoned, but it also saved the time and cost of a rig based sidetrack. The end result is expected to add 20 MMscf/d into the production portfolio.

Murphy Oil Malaysia recently completed a highly successful, rigless intervention campaign using Welltec services. Not only did these platform based operations allow immediate production from a well that was temporarily abandoned, but it also saved the time and cost of a rig based sidetrack. The end result is expected to add 20 MMscf/d into the production portfolio.

In the first well, the drift run hung up at 945 ft MD when trying to perforate the well. Based on previous experience, the cause was suspected to be part of a cement wiper plug. This was pushed down to a nipple profile at 4,314 ft MD, leaving it still 1,690 ft above the perforation depth. After only minutes of milling, the Well Miller made it through the plug, which allowed the Well Tractor to push it down to 6,398 ft MD, approximately 380 ft below the target perforation interval. Thereafter the well was perforated and put on production.

In the second well, a poor cement job had made the primary target zone inaccessible and left an obstruction inside the tubing. With pressing rig commitments there was insufficient time to fix the problem, leaving the well temporarily abandoned and a candidate for future sidetracking. Based on the success of the first well, the Well Tractor and Well Miller were used to push the obstruction from 400 ft to 2,132 ft MD, meeting the objective to prepare the well for sidetracking.

However, it was decided to attempt to push the obstruction as far as possible. Using the Well Tractor and Well Miller the well was cleared well beyond the sidetrack target depth to an eventual Hold Up Depth of 8,743 ft MD. Getting this far down the production string allowed access to two of the three reservoirs in this well, which could now be completed for production rather than scheduled for a sidetrack workover.

Click here to read more about this rigless success.