First Drill Pipe Cut Performed with the Well Cutter 358, August 2014

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” to 5” section. The toolstring tagged the x-over and correlated against the drill pipe tally to locate the cutter pads precisely on depth.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

The cutting operation went on for 10 hours at which point a number of different SRO indicators proved a successful cut. The driller cautiously pulled the drill pipe up 3.28 ft. for confirmation of the effective cut.

The operator was extremely pleased with the result of the operation. Tools and personnel were mobilized at short notice and the operation took just over 30 hours from rig up to rig down. Once the drill pipe was recovered to surface, the smooth, conical profile of the cut was confirmed.

This operation was testament to the Well Cutter’s applicability for drill pipe cutting, and it is now considered a viable and safer alternative for operations where traditional explosive methods may cause too much damage.

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


First We Take Esbjerg… and then We Transform the Industry, September 2014

The Transformation Center is one more step on the path towards achieving our vision of transforming the upstream oil and gas industry such that it becomes safer and more sustainable while achieving higher recovery. Our CEO, Jørgen Hallundbæk, took the stage and started the event by explaining Welltec’s vision, our ambitions in Esbjerg and how the new facilities will enable those items. He was followed by the mayor who presented us with a bonsai tree to symbolize the deep roots he hopes Welltec will grow in his city.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

The 77,500 square foot facilities will be producing our expanding fleet of unique completion products, including the Welltec Annular Barrier (WAB). The WAB is a fundamental part of our Flex-Well concept which opens up a whole new way of integrating well design and interventions. With the Flex-Well concept it is possible for operators to design their wells to achieve optimal maintenance and production for the life of the well. In short, Flex-Well enables operators to produce oil and gas safer, more sustainable and with higher recovery.

To illustrate the Flex-Well concept our VP Well Completion Solutions, Paul Hazel, presented a hands-on demonstration of a lower completion with Welltec components. Alongside were the intervention tools which would enable the maintenance and optimization of the reservoir through data gathering and manipulation of the components.

We also treated the visitors to a wide array of tool demonstrations, including a sneak peak at our new software Omnificent. This latest innovation from Welltec offers the industry a fully interactive and integrated real time representation of well schematics, survey data, toolstring position and diagnostics data.

2014 actually marks the 20th anniversary for Welltec as a company and we could not think of a better way to celebrate than opening a Transformation Center to embody our vision for the industry. We look forward to new adventures and we are very excited about what will come!


Still Growing – We Are Now Established in the Netherlands, September 2014

Due to the growth of Continental Europe and increased demand of clients in Continental Europe for technical support, Welltec has opened an office in The Hague since 1st of August 2014 to be strategically positioned for the clients operating on the Dutch continental shelf offshore and onshore in The Netherlands.

CONTACT

VP Marketing
Brian Sidle
bsidle@welltec.com

The Hague has the highest concentration of E&P companies in any given city in Continental Europe which made it a natural choice to open an office to support the clients in Europe.

Located near the central station of The Hague it is easy to reach for visitors with public transport. Further to this, it is only 30 min away from Schiphol airport which connects to all airports in European cities with a single flight, from which our clients are managing their operations.

For information or support on Welltec services in Continental Europe please contact:

Lambert Dilling Mail
Sales Director Continental Europe


Well Miller Quickly Removes 689 ft of Hard Scale, October 2014

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.


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.