Cutting 5-1/2″ Tubing on Deepwater Drill Ship with Pipe in 30,000 lbs Compression, September 2014

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

Recently the Well Cutter’s ability to cut in compression ensured a very time-efficient job execution offshore Nigeria. Further challenges included limited rig-up height as the operation was performed from a drill ship. 

The well was drilled and completed in July 2013, but due to regulations the operator was required to recomplete the well as a dual pro¬ducer. This entailed pulling the upper completion. The operator considered cutting the main packer but was concerned about the serious problems a partial cut could lead to. Therefore they elected to cut the tubing above the packer instead. The program called for cutting the 5-1/2” 20#, 13Cr pipe in order to retrieve the tubing.

During operations it was decided that cutting the tubing would be sufficient for the recompletion requirement. This would avoid the need to locate the string in the selective nipple below the packer, which contributed to an efficient operation. The Well Cutter blades were positioned in the tubing cut¬ting zone above the packer at 6,480 ft. Once correlation was duly con¬firmed the cutting operation commenced and a flawless cut was produced in ~ 4 ½ hours.

Two days of rig time were saved compared to the alternative cutting technologies because of the Well Cutter’s ability to cut in compression. This saved the operator from having to remove the subsea tree in order for the tubing to be put in tension by a rig.

Client quote
“We are very pleased with the outcome. It came out as expected and we do not plan any dressing at this time.”
Completion Engineer – Deepwater Drilling Team


Eight Years of Safe Operations in Asia Pacific, October 2014

Our team in Asia Pacific has accomplished an impressive HSE performance record by reaching seven years with no injury, no accident and no spill.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

“Welltec Asia Pacific has set an impressive HSE record for the past eight years. We can be very proud of ourselves in front of clients and other service companies in the Asia Pacific region” said Ronan Le Gloahec, Senior Vice President of the Middle East and Australia. He adds: “The HSE journey will now continue so we reach ten consecutive years with no injuries, accidents or spill”.

At the beginning of 2014, our Asia Pacific team renewed its HSE objectives commitment by introducing initiatives that focused on reporting hazardous situations via SCOP cards. The still increasing number of SCOP cards clearly indicates a positive growth in the HSE culture.

“The APAC team would not be here today celebrating yet another achievement in HSE performance if it wasn’t for the great support from Field Engineers, Service Delivery Managers as well as support functions from all APAC locations” said Mohd Harris Saleh after receiving a diploma handed over by CEO Jørgen Hallundbæk.


Recognition from Sakhalin Energy, October 2014

September 24 our team in Russia was honored with a plaque from Sakhalin Energy for our involvement in the Sakhalin-2 project. The plaque expressed their gratitude for contributing with new technologies and unique technical solutions for the challenges Sakhalin Energy has faced during the last 20 years of operations.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

Rick Schafers, AVP Russia & CIS, was very grateful to receive the letter of gratitude:

“I really appreciate this honor that we have received today by a valued client in the region. We have enjoyed a rewarding corporation with Sakhalin Energy and achieved many impressive results together. I look forward to another 20 years of operations where I believe we will set further records.”

The very first operations with our Well Cutter were performed for Sakhalin Energy on the Piltun Platform. In 2012, the Well Cutter was applied for the first time to cut a 4½” 12.6 #/ft tubular, which was accomplished in only 90 minutes. Sakhalin Energy estimated that saved about one week of rig time by not having to go in and polish or ‘dress’ the cut prior to fishing the cut pipe out of the well. If you would like to read the full story, please click here.

The Well Cutter has also cut a Super 13Cr mandrel of a 9 5/8” x 4 1/2” packer for Sakhalin Energy. To read that case, please click here.


Interim Report Q2 – 2014

Company announcement no. 8/2014: Welltec® achieved record levels of revenue and EBITDA in the second quarter of 2014 as it continued to gain traction with its high-value intervention services and deliver on its key initiatives for the year. EBITDA continued to improve through the development in the sales mix, higher levels of utilization and operational efficiencies. Accordingly, Welltec® adjusts upward its guidance 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 97 million with varied regional contributions:
    • In Europe, Middle East, Africa and Russia CIS (EMEAR), revenues increased by 23% to USD 55 million.
    • Revenues in the Americas grew 18% to USD 33 million.
    • Asia Pacific revenues decreased 24% to USD 8 million.
  • Welltec® posted a 21% increase in EBITDA to USD 47 million, representing an EBITDA margin of 49% (47% in Q2 2013).
  • Operating profit (EBIT) increased to USD 28 million (USD 25 million in Q2 2013).
  • Management adjusts its full-year revenue forecast to be around USD 350 million (9% growth), with EBITDA of USD 150 million, representing an EBITDA margin of around 44%. This compares to earlier expectations of full-year revenue of around USD 340 million and EBITDA of USD 140 million, with an EBITDA margin of around 42%.

Jørgen Hallundbæk, CEO: “Our results this quarter illustrate how our game-changing solutions continue to help our clients meet their objectives on well optimization and recovery. It also reflects continued progress on the strategic initiatives geared towards enabling the organization to have a wider impact and realize more of the total addressable market. It is satisfying to see double-digit growth again and the transformation work will continue in our quest to help the industry supply the world’s energy in a safer, more sustainable way.”

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 “Investors” section of 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 are dialing in for Welltec’s investor conference call, conference ID 68010099.
Conference access numbers

Denmark: +45 32 72 80 18
UK: +44 8445 718 957
US: +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 announces payment of interest, July 2014

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 2014.

CONTACT

Jesper Helmuth Larsen, CFO,
Cell: +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 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 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, respectively.


Novel Well Cutter 414 Successfully Cuts 7” Tubing Offshore Norway, July 2014

The operator was looking for a lighter alternative to coiled tubing and contacted Welltec®. They decided to use the Well Cleaner® PST to remove the sand to surface with exact measurement of volume due to the advantages provided by this e-line solution. Initially, it was suspected that the sand was caused by a bridge instead of a full column of sand. The Well Cleaner® PST cleared 4,777 ft. (1,456 m.) of sand bridges and recovered a total of 861 liters of sand to surface.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

The theory that the well was suffering from sand bridging was confirmed by the intervention. Thanks to the clean-out job, full flow path was re-established and the well was returned to full production. Choke size was adjusted to flow the well at 500 bbl of liquid (400 bwpd and 100 bopd) per day instead of 1,000 bbl to control sand production. confirmed by the intervention. Thanks to the clean-out job, full flow path was re-established and the well was returned to full production. Choke size was adjusted to flow the well at 500 bbl of liquid (400 bwpd and 100 bopd) per day instead of 1,000 bbl to control sand production.

This operation is testament to the value of the Well Cutter 414; no NPT, no misruns and a significantly safer operation with lower impact than alternatives. The operator was so pleased with the outcome that they decided to keep Well Cutters available offshore for an upcoming operation on an adjacent rig.

To learn more about the award-winning Well Cutter, please download our Mechanical Solutions brochure, or read the full case story.


Direct Contract Awarded by Petronas Carigali Sdn Bhd, July 2014

We are pleased to announce that we have received a direct contract for the provision of Well Tractor and mechanical intervention services for PETRONAS Carigali Sdn Bhd in Malaysia. The scope of the work is for rig support and well interventions as required for 70 wells in the east region assets group, including Sabah and Sarawak.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

We will be providing a broad range of our e-line based technologies such as the Well Tractor, Well Cutter, Well Stroker, Well Miller, Well Key and Well Cleaner. With this portfolio we will help Petronas Carigali increase safety and efficiency on rig operations as well as perform, remediate and improve production from platform wells.

‘This is an exciting award for Welltec. This successful tender award will enable Petronas Carigali Sdn Bhd to capitalize on our new technology for supporting its rig operations on development wells in addition to making use of our unique services to realize the full production potential of their existing wells. Our e-line based solutions provide them a portfolio of services capable of transforming how they conduct their well work.’ says Ronan Le Gloahec, Senior Vice President, Welltec. Welltec has been operating in Malaysia since 2002 where we opened our first office. Today we have three offices in the country from where we have performed some spectacular e-line operations like milling of a faulty lubricator valve, scale milling and tractoring 81,000 ft on a logging job in a well with 91°deviation.

Read more about these case stories here.


Well Miller and Core Bit Retrieves Faulty Lubricator Valve in Malaysia, July 2014

During a re-activation campaign an operator encountered a faulty lubricator valve preventing re-perforation and future interventions. They turned to Welltec due to our track record and proven service quality. A Well Miller with custom-made, core milling bit removed the malfunctioning valve.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

Both upper and lower valve coupons were retrieved in two successive runs with the aid of a special ‘catcher design’ in the inner core of the bit. Having restored access to the well, the operator could then continue with their re-activation campaign estimated to increase production by eight mmscf per day.

Welltec’s solution saved more than a week compared to coiled tubing, which generated substantial cost savings. The milling job itself took a day with an actual milling time of just around two hours. Being able to perform the operation on e-line offered a lightweight solution, reducing operational risks.

To learn more about the Well Miller and bits, please download our Milling Solutions brochure, or read the full case story.


Cutting Edge Mechanical Solutions, June 2014

Welltec continues to increase the capabilities of what can be done with mechanical cutting. In Q1 of 2014 we accomplished a series of successes that pushed the boundaries even further for what can be done on e-line.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

Cutting under compression Several jobs have been performed in 2014 where the tubular was in compression. In the Middle East, the Well Cutter was deployed rigless in four 4-1/2 in. (3.958 in. ID) ERD wells in order to reduce rig time during workover operations. Five cuts were successfully performed in 4-1/2 in. tubing in 20,000 lbs of compression. Moving further south we have recently carried out the first operation in India where a 5-1/2 in. 20# 13Cr L80 tubing was cut under natural compression to increase the safety aspect of the job. At 3,832 ft water depth this was also the deepest water depth well in which the Well Cutter has been operated. Wide range of materials We now offer the ability to cut standard carbon steel, chrome and super chrome. On an operation offshore Azerbaijan the Well Cutter 358 was applied to cut a 5-1/2 in. OD 26# Super 13Cr 110KSI tubing in one run. The larger Well Cutter 414 has also demonstrated the ability to cut the hardest materials. In the North Sea the tool made a cut in a 7 in. 29 lb/ft Super 13Cr tubing in 1:20 hours. Collar, casing, drill pipe cutting Recently, the Well Cutter 358 demonstrated the ability to cut through both the 5-1/2in. tubing and the associated 6.2” OD collar on a job in Norway. After 30 hours of operations, a smooth, conical profile of the cut was confirmed.

We have also added drill pipe cutting to the repertoire. The Well Cutter has cut a 5-½ in. drill pipe offshore Norway in order to perform a side-track. The precision cut needed to be made below the upper collar of the last stand, just above the x-over from the 5-1/2 in. to 5 in. section. Wide range of tool sizes Today we offer tool sizes ranging from 3-1/8 in. to 4-1/4 in. OD. The latest development, the 4-1/4 in. Well Cutter, has been applied recently on a number of jobs offshore Russia and Norway where 7 in. OD, L80, L80 13Cr as well as Super 13Cr casings received ‘the perfect cut.’ Increased safety and efficiency for operators The Well Cutter is an innovative tool that enables efficient and safe drill pipe, liner, tubing and casing recovery operations without the use for explosives. In 2013 it won the OTC Spotlight on Technology award plus the ICoTA Intervention Technology award. Operators around the globe have embraced the technology and benefitted from increased safety and efficiency through application of the Well Cutter. Please click here for more information about this cutting-edge tool.


Welltec Russia wins 2-year Well Tractor contract

Following a successful pilot project in February, Welltec Russia has successfully secured a 2-year tender award for a major Russian operator. Contract value is expected to exceed $2M USD.

The project scope includes 19 wells located across northern Russia land and involves arctic challenges for which Welltec’s solutions are exceptionally well suited and qualified for.

Lars Mangal, Welltec Chief Commercial Officer & Senior Vice President of UK, Russia/CIS and Continental Europe, explains “This is a key award giving Welltec the opportunity to further demonstrate our unique, inherently safer robotic electric line deployed well intervention technologies in the Russian market. Compared to traditional pipe based intervention methods, Welltec enables well intervention operations to be mobilized at short notice and with significantly reduced operational risk. Our Well Tractor conveyance systems enable production logging campaigns to be conducted with much improved data quality and greater flexibility for mobilizing in Arctic environments. This award also confirms the high degree of confidence operators in the Russian market have in our Welltec Russia team working in their field operations and the associated high levels of outstanding service delivery performance being realized as a result. ”

Contact: Rick Schafers, Welltec Area Vice President, Russia & CIS