European award program celebrates Welltec for innovation and excellence

The largest business awards program in Europe, European Business Awards 2015/2016, announces Welltec as a National Champion.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

The European Business Awards is an independent European awards programme that celebrates innovation and excellence, aiming to draw attention to Europe’s best businesses and what they are doing.

In this first stage of the competition, judges have selected the best 33 companies, the National Champions, from thousands of entries. The second judging phase will begin in December 2015.

Adrian Tripp, CEO of the European Business Awards says, “Now, more than ever … we need brave enterprising businesses who invest in innovation and excellence to lead the way”,

and he continues to state that the programme “is an opportunity for Europe’s brightest businesses to gain the recognition they deserve on a global stage”.

We are very proud to have received this honour, and are humble to compete with the best and most succesful companies from across Europe.

Read more about European Business Awards


Rethink your completion strategy

New technology addresses two of the industry’s biggest challenges; cementing and sustained surface annular pressure. A specialist in completion technology, Johnny Bårdsen encourages operators to rethink and apply a more holistic approach considering the entire life-of-the-well during the planning phase.

CONTACT

Johnny Bårdsen
Sales Director for Well Completion Solutions in Scandinavia
+47 51 64 06 50

It has been said that the Welltec® Annular Barrier (WAB®) can revolutionize the industry. How is that?

The WAB can simply eliminate the need for cement. Likely, this is the most revolutionary thing you can do in today’s oil and gas industry. Cement has been around from day one. But today the operators are basically saying that a least 40% – 50% percent of the wells that uses cement as the primary barrier have challenges with sustained annular pressure (SAP).

Typically, this is due to the pressure / temp cycle of cement. Over time it becomes brittle. Channels are then created in the cement, which the pressures and the accompanying HC’s (gas) can migrate between zones or come back up to surface.

 

Well integrity: A cementless barrier

The WAB can be applied as a cementless primary barrier. Will the industry embrace this new piece of technology?

Yes, I believe so. It has been run as such already, following the ISO14310 V0 leak criteria qualification. While developing the product we saw that the WAB could also support well integrity applications. As I see it, it is a really disruptive change in the industry. It’s simply a fundamental change.

We take a reliable, mechanical solution, that is engineered for the specific well application and verify it as a barrier. It will likely change the industry’s thinking about using a complex fluid/cement solution to run the barrier envelope in the well, in the construction phase.

You can now construct and complete your wells for a barrier that is designed for your well in the construction phase, which can function effectively throughout the operational phase . And it can also be an enabler for an easier or a planned P&A operation.

Can you clarify?

By positioning the WABs in the correct place in the open hole, you will have a pressure barrier for your P&A operations.  You do not to have to challenge yourself anymore to guess reservoir pressures from surface, faced with the uncertainty of whether or not your downhole barriers are ‘leaky’.

 

Avoid expensive surface control equipment

In what ways do you think the industry can improve its procedures?

Today, I think a big challenge is the enormous complexity of the wells. Also, the kind of information that the operators think they need for the production phase of the life.

Let me clarify. Today operators complete these wells with all kinds of surface control equipment on the well. As soon as any of this surface control equipment fails, you either have to live without the information or you have to recomplete the wells, because it’s part of the completion.

Another tendency is that a lot of engineers within the industry think they are really dependent on this information at surface – in order to be able to act on the production profiles of the wells. However, in real life, a lot of the time, many are so afraid of actually operating these solutions that they basically end up just monitoring them.

But why are they so careful? 

Because the equipment keeps failing after a time. Also, by including all these components in the well you also complicate the plug and abandonment side of the well. You have all the control ends. You have all the components that you put down the well, and you have to capture coming back out, to try and plug and abandon the well.

 

Optimize with low-risk interventions

What would be a better and more cost-efficient approach?

Go back to the beginning where you construct and complete the wells.  A completion concept, in which you have a reliable, mechanical barrier as the main component, is much simpler but yet with the capability of zonal isolation and inflow control (edt. Read about zonal isolation and inflow control in the second part of the interview). This can be accomplished by the use of intervention methods instead of working with control line. This is an efficient way to significantly reduce the initial cost of the well. At the same time it enables the well to be maintained by interventions, and with intervention equipment that doesn’t have to be reconstructed to fit these over-complex wells.

In the end, if you want to optimize the well through the life, you have to do some intervention.  So why don’t you construct the wells with a much more robust and easy solution to actually run and to maintain the well? And you now have a solution you can actually compare to time for running it, setting it up, and getting it down there.

What I mean is, that if you’re running a full-bore solution, you have access with all your intervention tools. You can optimize, you can do clean-outs, you can maintain the production flow clean, and you’re actually able to do the work that is needed. You don’t have to design specific intervention tools to go through a valve or a pick-up scenario, which is not in the design in the first place. Now you have a well that is designed for maintaining and being optimized for intervention in the future.

 

Full-bore, optimized for maintaining the well

So it’s basically a matter of increasing recovery?

Exactly. And maintaining a life-of-well concept on the wells. Compared to the smart well solutions and intelligent well solutions, which are typically very costly with surface control, this Flex-Well® concept offers a much simpler solution with greater potential.

My point is, if you have to do anything intervention-wise, for example, if this well starts to produce sand or scale it’s a challenging intervention job to perform. So instead, why don’t you go back and put the finger in the ground and say: okay, we will have sand, we will have scale; we need to optimize this well; we need to intervene this well at some point!

With the Flex-Well® solution we will have a well flow valves solution that is full-bore, optimized for maintaining the well of life and potentially also to go down there, clean out the well or position plugs, or isolate the valves by closing the sleeves etc. You will maintain an optimized well for the life of the well and you won’t have to do all the particularly challenging intervention work. Instead, you will reduce the risk of intervention work significantly because you have optimized the well for that, already in the construction phase.

 

Data: Back up your decision-making base

How can you monitor the well?

The data monitoring is basically a solution that you can download with the intervention tools. When operators know their reservoirs and production profiles, they will see if anything  changes at surface. Based on that you can order an intervention job to do some sort of investigation. During the investigation you can download the pressure and temperature profile of the well external to the completion and then act on it. If you compare this to the intelligent wells today, with this information potentially available at surface, you won’t be able to operate, for example, the downhole valves, because they are scaled up or you have lost communication to the valves, etc. You would still have to mobilize intervention, but then it is a challenging intervention job, because you have all the restrictions and problems in the well.

Instead, by looking at the life-of-well concept again, i.e. the Flex-Well® concept, you’ll have full bore, you’ll have set up the well for future potential intervention and optimizing the well. Also, you’ll have zonal isolation, you’ll have inflow control, and you have the data to back up your decision making base for how you’ll act on the challenges in the well.  Finally, you can intervene and fix without having to recomplete the well. And again, you are also prepared for the permanent P&A of the reservoir. You don’t have to be facing bad cement jobs that need to be fixed up. You can basically just go ahead, plug back, isolate, go back to the next part you have to isolate and then go from there.

So all in all, you are set for life. You just need to take a decision to reconfigure, to rethink a little bit, and see the benefits of constructing your wells in a way that enable interventions to optimize the well if needed.

JOHNNY BÅRDSEN

Johnny has extensive experience within the oil and gas industry. Among others, he has worked several years for Baker Hughes and Statoil before joining Welltec in 2012 as Sales director for Well Completion Solutions in Scandinavia. Recently, Johnny won the Best Presentation Award at SPE Bergen, focusing on the WAB® and the Flex-Well® concept.


Interim Report Q2 – 2015

Company announcement no.8/2015:In the second quarter of 2015, Welltec’s revenues stabilized at the first quarter level as industry fundamentals continued to be challenging. The stabilization was driven by growth across select geomarkets coupled with penetration of new clients, partly offset by the negative impact from the continued industry downturn.

EBITDA increased sequentially as a result of proactive decisions to adjust the global organization to the prevailing demand levels. Welltec® continuously aligns its spend in order to ensure margins and cash flow resilience ensuring adequate financial flexibility through challenging times.

In the second quarter, the solid operating cash flow was driven by the sequential margin improvement combined with strict working capital management. Furthermore, balanced investment levels coupled with the disbursement of the EIB loan paved the way for a significant increase in cash and cash equivalents.

CONTACT

Michael Krabbe, Chief Financial Officer,
Cell: +45 3034 3000
Simon Stadil, Director, Treasury and Investor Relations
Cell: +45 5213 8944

Outlook

Despite the continued challenging market backdrop and limited visibility, Welltec® expects stabilization towards the latter part of the year with performance in H2 expected to be around the same level as H1 in terms of revenue and EBITDA margin.

Jørgen Hallundbæk, CEO: “As expected, our second quarter reflects the prevailing industry dynamics as operators continue to adjust their activities amid the industry downturn. The prolonged uncertainty coupled with weak supply and demand fundamentals underpins the importance of promoting production optimization in order to improve corporate cash flows and enhance return on investment. Moreover, the industry needs to adapt to the low oil price environment by rethinking their operational setup and implement new game changing technologies.

We continue to develop and deliver our industry leading technology to our clients, allowing them to reduce capex and cost, without jeopardizing safety. This was demonstrated in the second quarter as we saw clients adopting our complementary completion and intervention technology, benefiting from reduced lifting cost, ultimately improving financial performance in this low oil price environment.”

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 “Investor” section of Welltec’s website at 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, ID 4646971.

Conference Call Access Numbers:
Denmark: +45 3271 1659
United Kingdom: +44 (0)20 3427 1914
USA: +1 646 254 3362

The call will be webcast simultaneously and available online following today’s live transmission.

Company Profile

Welltec® is a leading provider of intervention and completion solutions to the oil and gas industry. Our pioneering technology challenges conventions to increase recovery in a safer and more sustainable way, enabling operators to optimize the management and development of their assets throughout the life cycle.

We address the factors that maximize value creation, disruptively innovating to increase reservoir contact over an extended life cycle, in a fraction of the time, energy and logistical effort of the conventional alternatives. The effect is one of increased net present value through higher returns and reduced risks. Our Flex-Well® approach serves to maximize production and increase total recovery while lowering operational and total development costs. Our game-changing solutions extend the productive life of wells and enable clients to pursue fields that would not otherwise be economically viable.

Our unique approach provides for safer operations, removing considerable infrastructure costs and operational effort. Our lightweight technology lowers the complexity and hazard potential of operations, reducing the risk to personnel and allowing smaller work crews, fewer lifts and lighter loads. We reduce dependency on rigs, significantly reducing the industry’s energy consumption and carbon emissions. The ability to operate in extended reach and horizontal wells allows operators to drill multiple wells from the same topside location, thereby further reducing the environmental footprint.

Our technology created the market for robotic well intervention and continued market leadership is the result of constant innovation, rigorous IP protection and a commitment to completely addressing our clients’ challenges. Our completion concept represents the next paradigm shift for the industry, with a simple yet revolutionary approach that allows operators to tap into the full value of their reservoirs at a much lower level of invested capital and with an unprecedented degree of flexibility. As an example, the simple application of expandable metallic well annual barriers (WAB®) overcomes the traditional shortfalls of cementing to enable a lower completion as minimal or intricate as the reservoir characterization itself. Fields can be developed and maintained from fewer topside locations and brought on line faster, for longer.

In an industry characterized by maturing fields and increasing depletion, the premium attached to technology which aids in reversing these trends will continue to gain momentum. Our technology safeguards people and returns on investment, enabling clients to unlock more value 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.


Q2-2015 Report and Investor Conference Call announcement

Company announcement no.7/2015: Welltec® will disclose its interim quarterly financial report for Q2-2015 on Thursday, August 20, 2015 and will discuss the results during an investor conference call at 5pm CET.

CONTACT

Michael Krabbe, Acting CFO,
Cell: +45 3034 3000
Simon Stadil, Director, Treasury and Investor Relations
Cell: +45 5213 8944

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 conference call can be accessed by dialing in a few minutes before the start and informing the operator that you would like to participate in Welltec’s investor conference call, conference ID 4646971.

The conference 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 3271 1659
United Kingdom: +44(0)20 3427 1914
USA: +1646 254 3362

Company Profile

Welltec® develops and delivers technology and solutions intended to transform the oil and gas industry. Our game-changing solutions are dedicated to optimizing the management and development of clients’ assets, both in the form of well completion technology and intervention services required to ensure performance and integrity. We operate in all types of onshore and offshore well environments, including the most extreme and hostile, such as deepwater, subsea, extended reach, heavy oil and unconventional gas and oil wells. Our lightweight solutions are based on a vision to improve safety while reducing environmental risks, fuel consumption and carbon footprints.


Welltec Announces Payment of Interest

31 July 2015
Company announcement no. 6/2015

Pursuant to the Rules and Regulations of the Luxembourg Stock Exchange (edition 2012/07), section 903 and section 904(vi) it is noted that Welltec A/S has paid interest on the bonds per 31 July 2015.

CONTACT

Michael Krabbe, Acting CFO
+(45)-3034-3000

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 in 2014 and average of 1,013 dedicated employees across 29 countries. For the twelve months ended December 31, 2014, we had revenues and EBITDA of approximately USD 345 million and USD 155 million, respectively.


Well Cleaner® Maintains High Rate Gas Production Offshore Without a Rig

Offshore UK in the North Sea, a high rate gas producer could not actuate the downhole safety valve (DHSV) due to scale build-up. Welltec carefully planned and mobilized to the platform with the right equipment and procedures to rectify the problem based on prior, practical experience in solving this type of challenge.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

Without the need for a rig, the e-line was rapidly rigged up on a mast unit and used to deploy the toolstring. On the first run into the well, the Well Miller® ran a special bit which cut through multiple bridges of sodium bromide scale encountered above the DHSV. This was followed by a run with the Well Cleaner® WBH (Wishbone Honer) which cleaned the internal profiles of the upper, sealing portion of the DHSV, removing the residual scale deposits and restoring full functionality.

The DHSV remains in the open position while the well is flowing. If scale deposits form, they frequently can occur across the sealing portion of the DHSV, preventing it from sealing completely when shifted to the closed position.

‘This was a “must do” job for the customer,’ says Nelo Aracena, BDM for Welltec, UK. ‘Value for the client was very high due to the lack of functionality of the safety valve which was not able to be operated.’

Following the successful scale clean-out the client commented ‘Overall the job went very well…, everything was a success.’ ‘In the end, we went out and did what we do for a living; fixing wells,’ summarizes Aracena.

Welltec® is the world’s largest provider of e-line intervention solutions, including the Well Tractor® and a full portfolio of innovative technology for milling, clean-out and mechanical solutions.


Well Design For Today: Welltec® event puts spotlight on innovation in completions market

Advanced wells solutions took centre stage at a successful showcase event hosted by Welltec®, the company challenging the low oil price through innovation.

CONTACT

Area Vice President, UK
Kevin Giles
+44 7837 094788

Senior well operations personnel from a range of offshore operators and contractors took the opportunity to hear more about Welltec’s portfolio of award-winning technologies – and also to discuss wider well design issues in the modern industry.

The Well Design for Today event placed the spotlight on the market specialist’s latest completions solution, Flex-Well®, which cuts construction costs, tackles production issues, increases total recovery and allows for easier plug and abandonment.

It also featured the Welltec® Annular Barrier (WAB®), winner of the 2015 OTC Spotlight on New Technology Award. The WAB® is designed to drive the sector forward in a safer and more sustainable fashion by eliminating cement from well construction.

Kevin Giles, Welltec® Area Vice-President UK, said: “The Well Design For Today event highlighted why our business has an established reputation for introducing innovative solutions. Specifically, it illustrated how we can contribute to client strategies formulated to address the prevailing industry conditions.

“The current focus is on finding ways to work more efficiently, while trying to maintain productivity and sustainable operations. That’s where our solutions come into their own.”

Other technologies featured at the gathering at Aberdeen’s Norwood Hall Hotel included Welltec® Flow Valves (WFV) which, in various configurations, allows for simple manipulation of reservoir injection / production without the need for control lines. Furthermore, the Welltec® Data Monitoring (WDM) technology enhances the ‘smart but simple’ approach to optimising reservoir performance in an efficient, accurate and cost-effective solution.

Established 21 years ago, Welltec® has operations in 59 countries. The company’s solutions are used across all types of onshore and offshore environments including deepwater, subsea and extended reach, high-yield, heavy oil and unconventional gas well programmes.


Interim Report Q1 – 2015

Company announcement no.5/2015: Welltec’s revenues reduced in the first quarter of 2015 as market activity contracted sharply in response to the lower oil price. This overshadowed growth in some geomarkets and the decline in revenue was accentuated by strong currency headwinds. EBITDA reduced accordingly, with margin impacted by lower levels of utilization and increased redeployment of fleet and personnel to match the local demand. Proactive cost management and working capital discipline allowed for improved cash flows in the period.

CONTACT

Michael Krabbe, Acting CFO,
Cell: +45 3034 3000
Simon Stadil, Director, Treasury and Investor Relations
Cell: +45 5213 8944

  • Revenues of USD 68 million were 14% lower compared to the same period last year. On an adjusted currency basis revenues were 7% lower.
    • In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues decreased by 22% to USD 33 million
    • Revenues in the Americas fell 8% to USD 25 million
    • Asia Pacific revenues were level at USD 10 million
  • Welltec® posted a 27% decrease in EBITDA to USD 26 million, representing an EBITDA margin of 38% (44% in Q1 2014)
  • Operating profit (EBIT) before special items decreased to USD 11 million (USD 17 million in Q1 2014)
  • Currency fluctuations impacted revenue negatively by USD 6 million and EBITDA negatively by USD 1 million
  • Due to the current environment and significant uncertainty prevailing in the market, Welltec® remains unable to offer a qualified guidance for the full year 2015.

 

Jørgen Hallundbæk, CEO: “As expected, the first quarter was tough for the oilfield service industry as many operators scaled back activity and delayed investments, creating a vacuum as they decide on how best to sustain production and adjust operations in the low oil price environment. Our complementary completion and intervention technology provides the perfect solution. Clients that have fully embraced our approach are already benefitting, proactively intervening for barrels at a much lower cost and risk to improve their cash flows and return on investments. The prevailing market is difficult, however, and we will continue to push the adoption of new technology to meet the industry challenges.”

Investor conference call
Welltec® will discuss its results during an investor conference call today 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 informing the operator that you would like to participate in Welltec’s investor conference call, conference code 3263982.

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 3271 1660
United Kingdom: +44 (0)20 3427 1903
USA: +1 646 254 3363

Company Profile

Welltec® develops and delivers technology and solutions intended to transform the oil and gas industry. Our game-changing solutions are dedicated to optimizing the management and development of clients’ assets, both in the form of well completion technology and intervention services required to ensure performance and integrity. We operate in all types of onshore and offshore well environments, including the most extreme and hostile, such as deepwater, subsea, extended reach, heavy oil and unconventional gas and oil wells. Our lightweight solutions are based on a vision to improve safety while reducing environmental risks, fuel consumption and carbon footprints.

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.


Welltec® Signs Technology Collaboration Framework Agreement With Shell

Welltec A/S has entered into a technology collaboration framework agreement with Shell Global Solutions International B.V., an affiliate of Royal Dutch Shell plc, to improve existing or develop new technologies for global application in the energy industry.

CONTACT

Martin Skovbjerg
+45-88-53-82-35

“Shell has been using our technology since our inception nearly two decades ago,” says Welltec’s founder and CEO Jorgen Hallundbaek.

“We are proud to engage in this collaboration agreement with Shell, a well-known, well-respected developer and early adapter of technology for the oil and gas industry. It aligns and extends our ability to do for Shell what is at Welltec’s core; delivering game-changing technologies that truly impact our industry.”

Welltec is the world’s largest provider of e-line intervention solutions, including the Well Tractor® and a full portfolio of innovative technology for milling, clean-out and mechanical solutions.

In well construction and lower completions, Welltec’s novel, expandable metal products continue to evolve and now provide an alternative to cement as a primary well barrier.


Interim Report Q1 – 2015 and Investor Conference Call

Company announcement no.4/2015: Welltec® will disclose its interim quarterly financial report for Q1-2015 on Thursday, May 21, 2015 and will discuss the results during an investor conference call at 5 pm CET.

CONTACT

Michael Krabbe, Acting CFO,
Cell: +45 3034 3000
Simon Stadil, Director, Treasury and Investor Relations
Cell: +45 5213 8944

The Interim Report and 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 conference call can be accessed by dialing in a few minutes before the start and informing the operator that you would like to participate in Welltec’s investor conference call, ID 3263982.

The conference 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 3271 1660
United Kingdom: +44 (0)20 3427 1903
USA: +1 646 254 3363

Company Profile

Welltec® develops and delivers technology and solutions intended to transform the oil and gas industry. Our game-changing solutions are dedicated to optimizing the management and development of clients’ assets, both in the form of well completion technology and intervention services required to ensure performance and integrity. We operate in all types of onshore and offshore well environments, including the most extreme and hostile, such as deepwater, subsea, extended reach, heavy oil and unconventional gas and oil wells. Our lightweight solutions are based on a vision to improve safety while reducing environmental risks, fuel consumption and carbon footprints.