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


Well Stroker® Saves $15 Million USD While Boosting Oil Production Multifold

LUANDA, Angola: Offshore West Africa, a deepwater well, was suffering from excessive gas breakthrough, limiting oil production. The gas was coning and producing from the top of an open hole gravel pack completion, bypassing the oil it was intended to energize.

CONTACT

Brian Sidle
bsidle@welltec.com
+(45)-4814-3514 / +(45)-5213-8346

To overcome this problem, the operator had been shutting the well in to allow the gas to re-saturate the oil in the reservoir. After some time the well was put back on line until the Gas-Oil Ratio (GOR) again became too high for the floating production storage and offloading (FPSO) facilities to accommodate. This cycle had been repeated numerous times while the operator searched for viable options to overcome this challenge.

The solution arrived in the form of a 525 foot (160m) long straddle isolation assembly which overcame the coning. Installation of this hardware was accomplished in sections and necessitated precise control of both depth and force; the former to ensure proper position downhole and the latter to avoid seal damage whilst stabbing and latching the individual segments, joint by joint.

The Well Tractor® and Well Stroker® provided the best solution for the operator; a combination which delivers precise, accurate depth and force control irrespective of distance in the well. Over a period of 15 days, multiple runs were made to ‘build’ the straddle assembly up, piece by piece in this live well.

The job was completed safely, 30 days faster than originally planned. This first of its kind operation in West Africa effectively shut off the gas breakthrough and increased oil production multifold. The efficient operations resulted in more than $15M saved in rig costs while the higher oil production generated more cash flow and improved overall efficiency of the FPSO asset.

Welltec® is the pioneer and the world’s largest 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


Welltec Announces Payment of Interest

30 January 2015
Company announcement no. 1/2015

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 January 2015.

CONTACT

Jesper Helmuth Larsen, CFO
+(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 per-formance and increase the amount of recoverable oil and gas reserves in reservoirs. We provide our services and solu-tions for onshore and offshore oil and gas wells and operate in deepwater, subsea, Arctic, high-yield, heavy oil, geo-thermal and unconventional environments as well as conventional environments. We operate in all hydrocarbon pro-ducing areas and had in 2013 and average of 1,055 dedicated employees across 28 countries. For the twelve months ended December 31, 2013, we had revenues and EBITDA of approximately USD 321 million and USD 135 million, re-spectively.


Welltec® Annular Barrier (WAB®) Replaces Cement as a Primary Well Barrier

Welltec®, the world leader in cost effective well solutions, is pleased to announce that its Welltec® Annular Barrier has been successfully utilized to replace cement as a standalone, primary well barrier for the mitigation of surface annular pressure build-up.

CONTACT

Johnny Bårdsen
Sales Director, Well Completion, Scandinavia
jbaardsen@welltec.com

Following on successful ISO 14310 V0 leak criteria qualifications in Denmark in November 2014, the 9 5/8” V0 WAB® was subsequently approved, deployed, successfully expanded and subsequently verified in a field which has historically been challenged by B surface annular pressure buildup.

Pressure build-up in the B annulus can potentially result in catastrophic well failures, lost production, high costs for remediation, extensive monitoring and control requirements.

“Approximately 40% of the global well stock suffers from failed barriers, cement contributing to a majority of these failures” states Paul Hazel, VP of Well Completions. “This product provides a new solution for operators to capitalize on.”

Prior to this operation, cement has been the main approved well barrier qualified to ISO/API and other industry standards for the use of mitigating annular pressure build-up.

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, it precludes the need for cement.

A brief description of the levels of ISOstandards for packers can be found at Petrowiki® – http:/petrowiki.org/packer_standards_and_classifications.

Welltec® is the pioneer and the world’s largest provider of downhole robotic solutions for deployment, milling, clean-out and mechanical solutions. And our novel, expandable metal annular barrier’s (WAB’s) capabilities have been accelerating and can now provide an alternative to cement as a primary well barrier.


Welltec® Restores 100 MMSCFD Production While Reducing Costs

Offshore East Timor, an inflatable packer had released and migrated up the wellbore, passing through a flapper valve where it then got stuck. To complicate things, a hold-open sleeve dislodged during the migration and landed on top of the valve.

CONTACT

Brian Sidle
bsidle@welltec.com
+(45)-4814-3514 / +(45)-5213-8346

Utilizing a fleet of patented technology including the Well Tractor®, Well Miller® and Well Stroker®, the well was cleared of the inflatable elements and other debris. The series of operations took place in half of the anticipated time and without the need for a workover rig; significantly reducing costs versus budget.

“This was a job well planned and executed. What a great performance by Welltec, which resulted in the well being brought back on-line at 100 MMSCFD flow rate after two years of inactivity. 17 runs were conducted with zero misruns and no HSE or quality incidents, which is an outstanding achievement.” Completions and Well Intervention Coordinator, ConocoPhillips.

At Welltec® we are actively engaging with our clients to mitigate industry challenges and increase cash flow through production optimization, risk reduction, increased sustainability, improved safety and reduced costs. For more details regarding this or other examples of substantial value delivered with significant cost savings, please visit www.welltec.com/reducecost

Welltec® is the pioneer and world’s largest provider of downhole robotic solutions. Our game-changing technology leads the way in milling, clean-out and mechanical solutions for safe and cost effective well optimization to ensure maximum recovery while lowering lifting costs.


Welltec® Annular Barrier (WAB®) Installed as a Primary Well Barrier

16 January, 2015

We have achieved a breakthrough in the industry with our Welltec® Annular Barrier (WAB®). For the first time in the world it has been run as a standalone, primary well barrier element. This is a truly exceptional accomplishment as the WAB® hereby has delivered a solution to a challenge that affects an estimated 40% of global wells: mitigation of pressure within the B annulus.

CONTACT

Johnny Bårdsen
Sales Director, Well Completion, Scandinavia
jbaardsen@welltec.com

When pressure migrates within the B annulus the effects can be catastrophic, costing lives and causing wells to be shut in. The WAB® solves these issues by providing a tight seal, thus preventing pressure build-up in wells. Further advantages include avoiding remedial work to establish cement barriers when the primary cement operation has failed and offering daily monitoring of the B annulus within wells to maintain production.

This world’s first achievement took place in the North Sea for Statoil where the 9 5/8” ISO14310 V0 WAB® was deployed; successfully expanded and subsequently verified on a well in a field which has historically been challenged by B surface annulus pressure buildup.

“It’s a milestone for the industry that this technology has become available,” states Øystein Eikeskog, Principal Engineer of Well Technology, Statoil. “Not only will this save us significant time during well construction, it provides significant mitigation of future B annulus pressure issues where other methods have failed.”

Following on successful ISO V0 leak criteria qualifications in Denmark in November 2014, the 9 5/8” ISO14310 V0 WAB® was subsequently approved to meet Statoil’s Internal Barrier Policy based upon NORSOK D010 Rev 4, enabling Statoil to apply this unique technology without the need for dispensation for this particular well.

“This is truly an outstanding achievement and demonstrates our continued efforts to provide disruptive innovation in the marketplace,” states Paul Hazel, VP of Well Completions for Welltec®. “The natural progression of this product continues at a steady pace, enabling a new perspective for well integrity considerations.”

The Welltec® Annular Barrier is a unique, expandable metal 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.

The novel, expandable metal well annular barrier’s capabilities have been accelerating over the past four years and now provide an alternative to cement as a primary well barrier element.

Please click here to read more about our completion solutions.


1,500 lbs of Sand Removed on E-line

We have set another record with our powerful clean-out solution. During an operation in the North Sea the Well Cleaner PST retrieved a total of 1,500 lbs of sand with up to >300 lbs in two of the runs. The operation actually started as a drift run but owing to the remarkable efforts by the Well Cleaner the job went from drift to world record performance.

CONTACT

Terje Skeie
Senior Vice President Scandinavia
tskeie@welltec.com

The well had a history of sand production, but at the time of the operation the operator was not certain of the hold-up depth (HUD). As they now wanted to inspect the integrity and add more perforations it became important to establish the exact HUD. First they wanted to run the Well Cleaner RCB as a drift run for debris removal and determination of the HUD. However, this plan changed quickly as our clean-out solutions demonstrated just how effective they are.

A broad range of e-line clean-out technologies executed nine successful runs. On two of these runs we sat a record by removing >300 lbs of sand – in each run.

In total over 1,552 lbs of sand was successfully collected over a distance of ~ 1,735 ft. This enabled the operator to perform the logging run and make an informed decision on the perforations.

Our outstanding execution demonstrated how light, e-line clean-out solutions can deliver many of the objectives that the operator has for other wells without a workover rig or coiled tubing unit.

You can read the full story here.