Well Cutter® Provides 75% Cost Reduction

“A cut worthy of a king!”

Those were the words by the company representative after the Well Cutter® had cut through hard scale and tubing – in the same run.

This accomplishment took place offshore Norway where a large build-up of BaSO4 had restricted the ID of the 7” tubing to just 5.45”. The overall objective was to cut the casing, but in order to reach it the Well Cutter® would have to cut through the hard scale first.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

At 6,717 ft depth the Well Cutter® successfully broke through the scale and cut the tubing, all in the same trip downhole. This took only three hours in total.

It was the first time we used the Well Cutter® to both cut through scale and tubing, but the operation clearly demonstrates the value of the tool. Significant rig time was saved and costs reduced considerably as a consequence. In total, the operator saved approximately 75% of the costs by performing the entire operation on e-line compared to a rig-based operation.

Please click here to read the full case story.


Welltec Oilfield Services Indonesia Receives Safety Certificate

Client Dedication and Performance are inherent Welltec values. Our team in Indonesia has demonstrated this brilliantly by delivering excellent safety performance for ConocoPhillips. They have operated 4,404 man hours without any recordable incidents and for this achievement they received a Safety Certificate on November 20.

CONTACT

Kiki Darwahjudi
Account Manager, Welltec Oilfield Services (Indonesia)
kdarwahjudi@welltec.com
+62 21 2966 0404

As part of our contract we have delivered conveyance services with our Well Tractors and also a broad range of our downhole mechanical tools with our Well Miller, Well Stroker and Well Cleaner.

The certificate is given as recognition for the period September 2013 – July 2014. During this time we have successfully delivered scale milling, gas lift changes and clean-outs for ConocoPhillips, to mention just a few types of our operations. With these interventions and certificate we underline our dedication to transform the industry such that it becomes safer, more sustainable while also achieving higher recovery.


41 Perforation Runs Increases Efficiency, Oman

Our ability to conduct operations safer and more sustainably were made evident when we enabled an operator in Oman to optimize the intervention strategy. And not only did our e-line solution ensure safer interventions, it also generated valuable time savings on these horizontal perforations.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

Previously, the operator had been conducting perforations using coiled tubing conveyance. Although successful this method was also time-consuming as the rig-up procedure was lengthy and the operating times extended. Therefore the operator decided to apply Welltec’s e-line Well Tractor® as the preferred conveyance solution.

In total, a 1,916 ft long total interval was successfully perforated using the 2 1/8” Well Tractor. This was accomplished over four phases in order to test the flow between the different perforation stages.

Being able to conduct all the perforations on e-line secured a much more efficient operation both in terms of time and costs compared to the alternatives. Noticeably fewer people were required on location which, combined with the lightweight nature of our e-line technology, reduced risks and also eliminated heavy lifts.

Please click here to read the full case story.


Welltec’s innovations secure first Danish EIB loan under the InnovFin MidCap Growth Finance

Welltec recognized as a fast growing, highly innovative company with significant ongoing investments in innovative development and engineering.

CONTACT

Chief Financial Officer
Jesper Helmuth Larsen
jhlarsen@welltec.com
+45 23 29 26 00

The European Investment Bank (EIB) has signed a EUR 25 million agreement with Welltec A/S, a highly innovative Danish oilfield services company, for its innovative development and engineering activities to help operators optimize the management and development of their assets throughout the life-cycle of their wells.

This is the first EIB transaction in Denmark supported by the new generation of financial instruments for innovative and growth companies “InnovFin – EU Finance for Innovators”, with the financial backing of the European Union under Horizon 2020.

“InnovFin MidCap Growth Finance” is specifically dedicated to improving access to risk finance for research and innovation projects of midcap and SME companies in the European Union. For the full press release please go here: EIB / Welltec press release.


Extended Unconventionals? Extended Efficiency!

Clean-outs can be performed in extended, deviated wells with great efficiency. We know because we just did it and we have a long track record of efficient e-line clean-outs.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

This operator in Eagle Ford, Texas, had been attempting to convey a production logging string on coiled tubing (CT) in their extended horizontals. After numerous unsuccessful efforts they approached us to provide an alternative on e-line. There were a few operational challenges: a 4,681 ft long horizontal section plus a well deviation of 89°, which made the Well Tractor the perfect conveyance solution.

In addition, it was believed that a specific type of debris from a previous frac plug milling operation had not been picked up on the CT clean-out run. This was causing CT to reach early lock-up. To remove the debris the Well Cleaner Power Suction Tool High Flow (PST HF) was requested due to previous achievements for the same operator.

After two runs the Well Cleaner PST HF conveyed by the Well Tractor had retrieved all the mixed materi­al composite buttons from the frac plugs. This cleared the way for the Well Tractor to convey the PLT to total depth as planned. The successful operation demonstrated how efficient the Well Tractor is for performing logging runs in extended unconventionals.

By retrieving the debris to surface instead of dispersing it downhole, our clean-out solution allowed the operator to analyze the recovered material. This will provide valuable information when planning future interventions in the well.

The e-line intervention improved logistics and avoided the need to mobilize tanks of fluids as the Well Cleaner PST drags the debris into built-in bailer sections rather than injecting fluids into well. A further benefit of the Well Cleaner PST is the ability to operate in producing wells, which increases efficiency and allows for continued production.


Welltec APAC celebrates 7 years with no accidents

The end of 2013 marks an impressive record for Welltec Asia Pacific: seven years with no incidents. This is testament to Welltec’s worldwide safety culture and QHSE focus – “Safety is where I am”.

The Welltec safety culture reaches far beyond the legal requirements. Our approach puts safety first and incorporates behavioural programs, thorough risk assessment and tolerates no compromises on safety aspects. The culture embraces this approach through managerial systems and the Incident Reporting System, as well as through soft values like being an attentive colleague and watching out for each other. Programs like the buddy system help ensure that new employees are never faced with situations alone, SCOP cards provide an opportunity to report safe and unsafe situations to improve safety aspects on all levels and HSE audits ensure compliance with company policies. In February 2013 Welltec Asia Pacific was appointed an HSE manager to support the existing HSE initiatives.

“Welltec Asia Pacific proudly set an industry record by way of this seven consecutive years accident free operations performance,” said Ronan Le Gloahec, Senior Vice President, APAC, and continues: “This outstanding record results for a very visible 24/7 commitment from all APAC team members to comply not only with our customers’ HSE standards and guidelines, but also to the Welltec Global HSE management system without any compromise.”

“I want to praise all in the team for their outstanding dedication and drive to safely deliver our ever growing portfolio of environment friendly, innovative, robotic solutions from the deep waters of India to the jungle of Papua New Guinea,” said Ronan.

Incidents are divided by severity: Medical treatment only (MTO), restricted work case (RWC), lost time incidents (LTI) and fatalities (FTL). All these statistics are analysed by our QHSE department to ensure implementation and improvement of best practices protecting the health and safety of individuals.


Interim Report Q3 – 2014

Company announcement no. 10/2014: Welltec® maintained its growth rate in the third quarter of 2014 with the continued uptake of its advanced intervention solutions by major operators around the world. The EBITDA margin remained high and improved on last year, albeit slightly lower following the record second quarter. In absolute terms EBITDA grew 26%. Accordingly, Welltec® adjusts upward its guidance on earnings for 2014.

CONTACT

Jesper Helmuth Larsen, CFO,
Cell: +45 23 29 26 00
Morten Græsbøll Ottesen, Investor Relations Director
Cell: +45 22 33 73 08

  • Revenues increased by 15% year on year to USD 89 million with varied regional contributions:
    • In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 29% to USD 50 million
    • Revenues in the Americas grew 8% to USD 32 million
    • Asia Pacific revenues decreased 24% to USD 7 million
  • Welltec® posted a 26% increase in EBITDA to USD 41 million, representing an EBITDA margin of 46% (42% in Q3 2013)
  • Operating profit (EBIT) increased to USD 24 million (USD 14 million in Q3 2013)
  • Management maintains its expectations on full-year revenues to be around USD 350 million (9% growth), but adjusts upward its guidance on EBITDA to USD 155 million, representing an EBITDA margin of around 44%. This compares to earlier expectations on EBITDA of USD 150 million

 

Jørgen Hallundbæk, CEO: “It is pleasing to see a continuation of the growth trend as we continue to evolve as an organization and deliver on our plans and our guidance for the year. This quarter we launched our new transformation center in Esbjerg, home to our revolutionary Flex-Well® completion concept. In what is our 20th year, this marks the start of another paradigm shift for both Welltec® and the industry. Our simple yet game-changing approach to completions provides a step change in recovery, safety and sustainability. Our supply chain is in place and we are developing a pipeline of operational activity for a host of key clients. It will take time, however, as was the case for adoption of our pioneering robotic well intervention services, but the potential benefits are vast.”

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 ID 20547361.
Conference access numbers

Denmark: +45 32 72 80 18+45 32 72 80 18
UK: +44 8445 718 957+44 8445 718 957
US: +1 866 682 8490+1 866 682 8490

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

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® Annular Barrier (WAB®) passes V0 leak criteria qualification

COPENHAGEN, Denmark – Welltec®, a Danish based oil and gas service provider, is pleased to announce that its Welltec® Annular Barrier has successfully passed ISO/API V0 leak criteria qualification testing.

CONTACT

WP Well Completion Solutions
Paul Hazel
phazel@welltec.com
+44 779 1312943

The Welltec® Annular Barrier is a unique, all metal expandable barrier with a large expansion ratio and high delta P capability. It can be used to prevent flow between casings or between casing and open hole to provide cement assurance, to prevent build-up of surface annular pressure or to create compartmentalization within the reservoir or isolation between reservoirs.

For the test, a 9 5/8” version of the WAB® was expanded into a 13 3/8” casing within a test cell. There it was exposed to pressured nitrogen while undergoing axial loads and temperature cycles without experiencing any leaks. Witnessed by a number of representatives from global operators as well as Welltec staff and management, the test was successfully completed in accordance with ISO/API standards.

“This qualification is the next significant step in a series of successes for the WAB®,” says Paul Hazel, VP of Well Completions. “These have included being incorporated as part of the primary well barrier and being installed for zonal isolation in wells capitalizing on cementless completions.”

Ricardo Reves Vasques, VP Engineering, states “Of course the testing wasn’t easy. It has taken almost three years of research, but we’ve always believed that this technology could achieve this high standard and we wouldn’t give up until we had accomplished it.”

A brief description of the levels of ISO/API standards for packers can be found at Petrowiki®.

Welltec® is the largest provider of tractor technology for conveyance solutions as well as the foremost supplier of milling, clean-out and mechanical solutions for e-line interventions. Our novel, expandable metal annular barrier’s (WAB’s) capabilities have been accelerating for the past four years and comprise the foundation of the Flex-Well® completion concept.


Well Miller Quickly Removes 689 ft of Hard Scale

About 689 ft of CaCO3 scale bridges had decreased the ID of a wellbore from surface to the safety valve in a water producer located offshore Spain. The scale prevented the operator from cutting the tubing and a quick resolution was needed.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

Always responsive to client demands, we were able to mobilize a suite of e-line equipment and crew in just four days. Another 19 hours later, the Well Miller had eliminated the problem by efficiently removing the scale down to a depth of 3,510 ft. this enabled the operator to continue with their planned operation.

The operator was very pleased with the results, pro-activeness and good crew performance of Welltec.

Please click here to read the full case story.


Exceptional Service Quality in Gas and Water Shut Off Operations, August 2014

Building on a track record of previous gas shut off (GSO) successes Welltec Angola recently completed another GSO along with separate water shut off (WSO) operation. The purpose of the recent operation was to install a multi-segmented straddle packer isolation system in the same well but over a completely different interval. The GSO system, consisting of five packers and 13 straddles, was 482 ft long whereas the WSO system had a length of 295 ft and was made up of three packers and eight straddles.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

This most recent operation required 30 consecutive runs in the hole to build the two straddle packer isolation systems. The first and deeper isolation system was installed across the water entry zone; the second and shallower isolation system was installed across the gas entry zone of this high profile well. Each operation saved the operator a potential side track, costing in the range of $50 to 60 million.

To date, Welltec Angola, working with our service partners, has performed four GSO installations for this operator with a combined total of 80 runs. The stellar production results and outstanding service quality have led the operator to commit to another six to eight similar GSO/WSO operations over the next 12 months.

The successes of these operations has become paramount to both the operator and the National Oil Company. They have created substantial production increases, huge cost savings and dramatic decreases in deferred production. Another benefit is the OPEX cost savings from the facilities to handle the produced gas and water only to have to re-inject them into another well.
A complete case story of the first well intervention is available here .