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.


Well Stroker XXS – A Strong Finalist for the ICoTA Intervention Technology Award

We are proud to announce that our Well Stroker® XXS is selected a finalist for the ICoTA Intervention Technology Award. This industry award recognizes outstanding technical innovations that demonstrate reduced risk, increased production, improved safety or minimized environmental impact. The e-line Well Stroker XXS changes the game of technology by promoting safety, efficiency and significant cost reductions.

CONTACT

Brian Sidle, VP Marketing
bsidle@welltec.com
+45 48143514

“We are honored to be a finalist for this important industry award”, says Jørgen Hallundbæk. “We believe that the Well Stroker XXS truly has the potential to change how the industry operates by replacing much larger equipment with a nimble e-line tool. In fact, an 18 ft Well Stroker XXS is able to perform the same work as a work-over rig, which has incredible prospects for how we plan and execute operations.”

The Well Stroker XXS offers the first surface controlled, e-line tool with the capability to latch and pull or push objects in the well with up to 60,000 lbs of force. Being e-line deployed, the tool can deliver the force exactly where needed and with surface control. The Well Stroker XXS is able to latch multiple times should it slip free from the object during the operation and it can both pull and push in the same descent multiple times.

This is the fifth time we are selected as a finalist for the ICoTA Intervention Technology Award. We have won it the last two years for our WellLIT and Well Cutter.

Read more about our achievements in the field in these case stories:

 

The award will be formally presented to the winning technology at a Keynote Luncheon, which takes place on Tuesday, 24 March at the Waterway Marriot, The Woodlands, Texas.

If you are planning to attend the ICoTA, please visit us a stand #205 and let us explain how the Well Stroker XXS will change the game for what can be accomplished using e-line tools.


The Welltec Annular Barrier Wins OTC 2015 Spotlight on New Technology Award

Our latest development, the Welltec® Annular Barrier (WAB®), has won the OTC Spotlight on New Technology award as one of the latest, most advanced technologies that are leading the industry into the future.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

“We pride ourselves on being a transformational company, one that develops technology with real, immediate impact” says CEO Jørgen Hallundbæk. “The WAB is another perfect example of our vision. Its universal application can significantly improve safety and efficiency in our industry, providing a reliable, effective annular barrier while eliminating the need and cost of cement.”

The Welltec Annular Barrier is a unique, metal expandable barrier with a large expansion ratio and high delta P capability. As a qualified, stand-alone barrier element, it precludes the need for cement in the construction phase for many applications. Its novel capabilities allow it to be expanded from surface, with no waiting times and conform to the surrounding open (or cased) hole environment.

Following on successful ISO V0 leak criteria qualifications in Denmark, the 9 5/8” V0 WAB was subsequently approved to meet a client’s Internal Barrier Policy based upon NORSOK D010 Rev 4, enabling them to apply this unique technology without the need for dispensation in the North Sea. The WAB was installed without cement to prevent surface annular pressure (SAP) buildup within the B annulus.

“Being recognized as an OTC Spotlight Technology Award winner is fantastic,” declares Paul Hazel, VP of Well Completions. “It’s the culmination of lots and lots of hard work by a great team at Welltec.”

Recently the capabilities of the WAB have accelerated rapidly, which is reflected in winning this award. The WAB now provides benefits for operators globally for safer wells with lower capex while providing higher productivity.

This is the fourth time we have won this prestigious award. Last time was in 2013 with the Well Cutter; in 2009 the Cleaner PST won whereas the Well Cleaner RCB was announced the winner in 2008. We will be awarded the trophy at a ceremony on May 4 during the Offshore Technology Conference (OTC) at 1530 to 1600 hours in Room 208 on level 2 in NRG Center.

For more information about the Welltec Annular Barrier please click here: http://www.welltec.com/solutions/completion-solutions


Change in Management

Our CFO for the last 6 years, Jesper Helmuth Larsen, has decided to leave Welltec on March 31, 2015, for personal reasons. Jesper will move back home to Jutland to be closer to his family. Group Finance Director, Michael Krabbe has taken over as acting CFO, as of March 2, 2015. Jesper has been Michael’s mentor for quite a number years, enabling a smooth transition. We take the opportunity to thank Jesper for his valuable contribution to Welltec and wish him all the best in the future.

Best regards,
Jørgen Hallundbæk, CEO

CONTACT

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


Annual Report 2014

The Board of Directors of Welltec International ApS (“Welltec®”) has today approved the Annual Report for 2014.

Key highlights
Welltec® achieved continued revenue growth and improved earnings in 2014 through the execution of key strategic initiatives planned for the year. Revenues and earnings were in line with full year expectations. Strong activity growth and improvements in the sales mix reflected an increased focus on promoting the strength of our value proposition, although the US dollar appreciation provided a stern headwind. Continued operational success increased activity with our largest clients and underpinned the further expansion of our global footprint.

CONTACT

Michael Krabbe, Acting CFO
Cell: +45 30 34 30 00
Simon Stadil, Director, Treasury and Investor Relations
Cell: +45 52 13 89 44

  • Revenues increased by 7% year on year to USD 345 million with varied regional contributions:
    • In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 13% to USD 191 million
    • Revenues in the Americas grew 9% to USD 122 million
    • Asia Pacific revenues decreased 19% to USD 32 million
  • Welltec® posted a 15% increase in EBITDA to USD 155 million, representing an EBITDA margin of 45% (42% in 2013)
  • Operating profit (EBIT) increased by 12% to USD 76 million
  • Net profit increased by 3% at USD 21 million
  • Due to the current environment and significant market uncertainty looking into the year ahead, Welltec® is not able to offer a qualified guidance for the full year 2015.

 

Jørgen Hallundbæk, CEO: “2014 marked Welltec’s 20th anniversary and two decades of disruptive innovation that has challenged industry practice and provides the answer to many of the questions it is faced with today. Lower lifting costs, higher recovery and improved safety are not a contradiction but a reality with our technology. We are tried, tested and trusted to increase production from existing wells at a substantially lower cost than conventional methods. Our intervention solutions simply allow our clients to do much more with far less. It was also the year where we really announced our arrival in the completions arena with the launch of our transformation center in Esbjerg and a remarkable industry breakthrough in the first deployment of our WAB® as a cementless primary well barrier. Our completion solution’s capabilities have been accelerating and now allow operators to tap into the full value of their wells through a truly adaptable completion that brings fields online faster, for longer and from fewer topside locations. The prevailing market may or may not act as a catalyst but with the production supply from the majority of wells in continual decline; our Flex-Well® approach is the long term solution.”

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, ID 81527107.

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: +45-3272-8018
United Kingdom: +44-8445-718-957
USA: +1-866-682-8490

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.


Latest Downhole Innovation Presented at the ICoTA UK

We proudly showcased our latest version of the Well Stroker yesterday during a lunch and learn presentation at the Intervention & Coiled Tubing Association (ICoTA). This Well Stroker XXS is a groundbreaking downhole intervention technology as it is able to provide up to 60,000 lbs of focused force downhole, which enables faster and safer operations.

CONTACT

Kevin Giles, AVP UK
kgiles@welltec.com
+44 1224 708705

Our local Business Development Manager, Andy Jessiman, presented several recent case stories from the region where the Well Stroker XXS was applied and was instrumental in securing a safe operation. A few accomplishments include pulling by 45,000 lbs of force to free an upper completion in just 20 minutes, which eliminated a serious HSE risk, and also saving five days of rig time by fishing a stuck setting tool.

To read more about these particular operations, please click on the links below:

New Well Stroker XXS Restores Well Barriers
The New Well Stroker XXS saves five days of rig time by fishing a setting tool

Ease of operations enables higher returns
The Well Stroker XXS was first used in the North Sea but internationally it has transformed the approach to downhole solutions by replacing much larger and heavier methods. Run on e-line this 18 ft short tool is able to provide such a high force that it can actually perform the same work as coiled tubing and drill-pipe. The benefits are reduced total operational times, higher returns and increased safety for both people and assets by requiring significantly reduced equipment.

Kevin Giles, Welltec’s Aberdeen-based Area Vice-President said: “Today it is more important than ever for the energy industry to operate cost-effectively and this is just another example of Welltec’s ability to develop concepts and technologies that solve problems and deliver value.”

If you would like to read more about the Well Stroker and our other mechanical solutions please click here.


New Technology Increases Safety and Cuts Cost

The development of a unique mechanical cutting tool makes it possible to eliminate explosives from many operations which require tubulars to be recovered during workovers, drilling operations or recompletions.

CONTACT

Brian Sidle
bsidle@welltec.com
+45-4814-3514 / +45-52138346

Welltec® has created the Well Cutter® which makes it possible to perform several cuts of drill pipe, casing and liner, without explosives, in the same trip in the well and make the cut regardless of whether the pipe is in tension or compression. This achievement leads to instant time and cost savings while increasing safety for both people and assets.

The world’s first operation demonstrating two cuts in the same run recently took place offshore. Two cuts were required in order to reduce the risk of pulling the tubing in one piece through a restriction; two sections creating smaller lengths of continuous pipe and reducing the risk.

The operational time was reduced significantly and the unique ability to cut under tension or compression provided a key benefit as it overcomes uncertainty sometimes posed by the environment.

In another example, the Well Cutter again demonstrated its ability to overcome uncertainty, reduce risk and optimize operational efficiency by cutting through both scale and tubing in the same run. A large build-up of BaSO4 restricted the ID of the 7″ tubing to just 5.45″. In this example the operator saved approximately 75% of the costs by performing the entire operation on e-line compared to a rig-based operation.

The Well Cutter is another example of our ability to help our clients reduce costs and deployment times while enabling increased cash flow without compromise to the safety of people and assets.

Welltec® is the pioneer and the world’s leading provider of downhole robotic solutions for deployment, milling, clean-out and mechanical solutions. For more examples of innovative ways to solve your workover challenges through lower lifting costs, reduced capex and maintained production – http://www.welltec.com/reducecost