Ball Seat Milling on Wireline Saves the Reservoir

With an effective milling campaign in Canada, Welltec has turned a risky, high cost operation into an economical, non-intrusive solution for optimization of a sensitive reservoir.

An operator working in the Bakken formation in Saskatchewan needed to remove a series of ball seat restrictions in order to set a bridge plug near the toe of the well. They had been using jointed pipe and coiled tubing, which resulted in some formation damage as a consequence of pumping large amounts of fluid to power the mud-motors. The costs were high and the results were not ideal.

The client was therefore looking for a cost-effective solution that would not require introducing more fluids into the reservoir. They decided that Welltec’s milling capabilities on e-line was an attractive alternative based on the technical advantage of an electrically powered milling tool.

Once on location, the Well Tractor was used to convey the toolstring down the horizontal well path to the exact location of every ball seat. Once there, the Well Miller, equipped with a 2.845” ball seat milling bit, was activated and milled out the ports for further accessibility below.

To date, Welltec has removed 11 ball seats for this operator with milling times typically less than one hour per ball seat. This has been achieved without adding significant fluid to the formation or requiring large amounts of surface equipment. Improved production is anticipated from these low pressure, fluid sensitive formations.

New Base in Indonesia Commemorated by Safety Achievement

Capitalizing on strong growth in the area Welltec recently opened a new base in Indonesia. The base is located in Balikpapan where experienced personnel are fully equipped to perform Welltec’s full range of services to clients.
The base was opened in style with attendance from key clients and top level management. During the grand opening it was demonstrated that the spacious size of the base can easily handle the current activities as well as the projected growth. With this expansion, Welltec has both the process and location in place to receive, prepare and package for shipping of multiple tools simultaneously for the benefit of our clients in the area.

“Our commitment to our Indonesian clients is underpinned with these new and improved service facilities. We are even better positioned to increase the value of our activities and meet our ambitious development goals,” says Antonius Aji, General Manager, Indonesia.

A perfect HSE record
The base opening also celebrated another important accomplishment in Indonesia: five years without any incidents. This has been achieved through a dedicated effort to quality, health, safety, the environment (QHSE) as well as meticulous job planning.

QHSE is a strong focal point throughout the entire Welltec organization by both management and employees. This is how we reach our objective of delivering unsurpassed service quality to all our clients.

Since opening the first base in Balikpapan in 2009, Welltec Oilfield Services Indonesia has secured direct contracts and performed a series of remarkable jobs. These include the world’s first nipple profile milling on e-line and the first gas lift change outside of the USA.

For more information about our service offerings in Indonesia please contact General Manager Antonius Aji on phone +62 21 719 8750 or email

E-Line Milling Increases Production by 150%

Faced with several wells becoming plugged by scale, an operator was looking for the ideal method to restore well productivity. Several reservoirs were sensitive to foreign fluid invasion and all the wells contained nipple profiles, limiting access further. After consideration they concluded that Welltec’s milling and cleaning solutions run on e-line provided the most flexibility and advantages.

On the first well, initially only a cleaning solution for scale milling was planned; however, it became apparent that running larger OD perforating guns would benefit the recompletion. Hence it also became necessary to remove the nipple profiles in order to gain the required minimum access of 3.5” in the well. Welltec delivered a complete solution that removed the nipple profiles, milled out the scale build up and removed all the debris from the wellbore.

The whole operation was completed in six days, offshore Indonesia. After Welltec’s successful interventions, the client was able to perforate the required zones and increase well production from 1.13 MMSCF to 3.8 MMSCF. Welltec’s milling and cleaning solutions also recovered scale samples, allowing the operator to analyze it for potential remediation. And finally, this robotic, e-line intervention did not require pumping large amounts of fluids into a sensitive reservoir.

Read more about these solutions by clicking here.

Recovering Damaged Straddle Packer

Our ability to quickly provide e-line solutions was put to the test when a simple replacement of straddle packers turned complicated. Combining the Well Stroker and Well Cleaner, we efficiently removed a damaged straddle through the DHSV and recovered all the elements left downhole by the damaged straddle.

The straddle packers were set across an area of parted tubing but after three months they had begun to leak. As part of the original, planned operation, a Well Stroker was applied to pull the first straddle packer which turned out to be missing a metal spring. When trying to pull the next straddle, it got stuck several places in the well. It was finally recovered but the Well Stroker had to be used through the downhole safety valve and side pocket mandrel. At surface, it was concluded that the lower section of the straddle was missing the entire rubber element.

In order to quickly amend the situation, a Well Cleaner PST was rushed to the rig for recovery of the lost elements at 17,303 ft (5,274 m) MD. The Well Cleaner PST made several runs where it recovered the rubber elements and the steel spring from the upper straddle packer along with several, unidentified items. These unidentified items were found to be the “arms” that keep the rubber element of the lower HEX straddle together.

The Well Cleaner PST also recovered several broken elements from the well, implying that the HEX straddle had gotten damaged and the loose parts had been produced through the higher placed straddles. With all the elements safely recovered and accounted for at surface the client was assured that the well was clean of debris down to the top straddle.

Welltec’s solution delivered vital information that allowed the client to plan the next step of the workover and return the well to production.

Read more about this achievement by clicking here.

Well Tractor NG Breaks World Record by 26 miles

Welltec’s new Well Tractor NG got off to an amazing start when it tractored an impressive 423,724 ft (80 miles) in a highly deviated well offshore Norway.

This achievement took place during a major intervention campaign in the Statoil operated field, Oseberg B, in the North Sea. The operator planned to re-perforate a series of existing intervals as well as add new zones. Oseberg B is notorious for its limited rig up height of only 41 ft, adding complexity and reducing tool lengths for all operations.

Following a successful e-line, scale milling operation performed with the Well Miller, the Well Tractor NG conveyed third party perforating guns for 17 descents. Over the course of the operation, the Well Tractor NG performed a total of 21 flawless runs, setting a new world record by tractoring a total distance of 423,723 ft (80 miles) in one trip to the wellsite. Also impressive for the operation was the average tractoring speed of 3,720 ft/hr.

The previous record for total distance tractored in a single well was 282,110 ft (53 miles), which the 318 Well Tractor NG exceeded by 141,614 ft (26.8 miles); a full 50% further.

Milling of Hard Scale One Week Faster than Alternative

Time was of the essence when an operator offshore Norway needed to remove scale on top of a downhole safety valve (DHSV). Welltec removed the scale in one week which was one week faster than broaching that was applied previously.

The DHSV had locked in the open position with no access from surface because of the scale that had settled on top of it. After two weeks of broaching, the well had been opened up to 4.6”. Due to pressing time issues coupled with very hard scale, the operator decided Welltec’s e-line scale milling solution was the better choice.

After four runs, the Well Miller had cleared the scale down to the DHSV, opening the well up to an ID of 4.7”. An attempt was made to pull the DHSV but the fishing neck was unable to be latched. The Well Miller was called into action again; this time fitted with a brush bit, and successfully cleaned the scale around the DHSV, allowing it to be retrieved. After Welltec had removed the scale, the client was able to pull the DHSV and replace it with a new one.

Client Quote
Onshore supervisor: “I would like to thank you and your team for the excellent effort so far. Although we have not yet retrieved the DHSV, the tractor/milling has performed beyond what I anticipated. Welltec mobilized for this job with very little advance notice and the support from the onshore staff in Tananger and Bergen has been first class. The equipment and contingency accessory items were called into action and performed well. You have set the standard for the future milling operations and expectations.”

Click here if you would like to read more about this operation.

Meet Welltec at Stand #4075 during the OTC

We will be displaying our newest cutting-edge technology at the OTC this year: The Well Cutter. This is a brand new, e-line conveyed tool designed with a unique cutting mechanism, which means that it leaves a smooth, polished surface. The Well Cutter eliminates the need for explosives which can pose an operational risk, thus presenting an attractive alternative for pipe recovery operations.

See our new technologies
We will also be displaying and explaining a number of other technologies that demonstrate how we do things differently, including the Welltec Annular Barrier (WAB). You can experience a real-life model of this innovative equipment designed to block fluid migration behind the casing and provide cement assurance.

If you are attending the OTC this year, please stop by our stand and let us explain how we can take your interventions further.

Welltec Intervention at ICoTA

Welltec had an exceptional showing at this year’s ICoTA in the Woodlands with contributions that clearly demonstrate our value proposition and capabilities within e-line solutions.

2012 Award Finalist
Leading up to the show we were proud to see the new Welltec Dual KOT being selected as a finalist for the 6th ICoTA Intervention Technology Award. This is a prestigious award for which Welltec has been nominated four of the past six years.

The Welltec Dual KOT is a robotic intervention tool assembly that provides unparalleled capabilities for operators to improve production, save time and money as well as optimize their gas lift designs by being able to retrieve and install GLV’s in a single trip deeper into a highly deviated or horizontal well.

SPE Short Course on Tractors
Brian Schwanitz of Welltec and ICoTA Sr. Co-Chair taught the first ever SPE Short Course involving tractors entitled “Tractor Technologies for Well Interventions”. This lecture on cleaning and milling was facilitated by Alex Crabtree of Hess who opened with a presentation and content on how tractors have come of age and should be considered as a first option for well intervention.

Technical Content
Welltec was the technology behind three, client presentations of SPE papers that received interest from both operators and other service providers. Topics varied from milling to cleaning and the aforementioned gas lift valve operation:
SPE 154404: Milling of an Electric-Line Obstruction with Electric Line Conveyed Technology by Bruce McIninch, Mickey Mullin (Marathon) and Almir Dulic (Welltec).
SPE 154411: Rigless Debris Removal from a Subsea Safety Valve With a Wishbone Honer Brush on Electric Line by Rogelio Higa (PEMEX) and Percy Saavedra (Welltec).
SPE 154417: High-Angle Gas Lift Valve Removal and Replacement in a Single Run by Hayes Chow, Daniel Herrmann, John Condio (ConocoPhillips), Jeremy Albright, Leighton Burley and James Greenlee (Welltec).

The ICoTA Coiled Tubing and Well Intervention Conference takes place every year in the Woodlands. It is one of the global E&P industry’s foremost venues for the latest intervention technologies, electric line, slickline, hydraulic workover and coiled tubing used in the well servicing industry.

The Well Cutter Makes the Cut

Welltec’s newest innovation, the Well Cutter, has made its debut with a successful pipe cutter operation on a 4½” 12.6 #/ft tubular for a Russian operator.

The Well Cutter got the job done in a total tool operating time of 90 minutes with an effective cutting time of 80 minutes.

In addition to not having to mobilize and store explosives for the Well Cutter offshore, handle dangerous explosives on the drill floor or shut down for radio silence, the client estimated that they had 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.

The operation took place in a low angle well (

The results of the cut can be seen below and were quoted by the client to be ‘the perfect cut.’

Cut Casing Perfect Casing Cut

Please click here for more information about this operation.

Welltec Secures $325M Senior Note Offering

Welltec announced February 2, 2012 the completion of its US$ 325 million aggregate, 8% Senior Secured Note offering (‘The Notes’). Due in 2019, the 144A/RegS offering drew significant demand from institutional investors in both Europe and the US.

The Notes have been assigned a (P)B1 rating by Moody’s (stable outlook) and a BB- rating by Standard & Poor’s (stable outlook) with equivalent corporate ratings. The Notes have been listed on the Official List and admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange.

The net proceeds of the offering of the Notes will be used to refinance existing credit facilities, pay a special shareholder distribution and for general corporate purposes.
The offering marks Welltec’s successful debut in the international capital markets. The offering strengthens Welltec’s capital base in support of Welltec’s continued high growth. The Notes, which carry interest at a fixed coupon, will mature in 2019 and extends Welltec’s funding significantly compared to previous facilities. The US dollar denomination of the Notes, moreover, creates a natural hedge of Welltec’s predominantly US dollar based revenue.

Jørgen Hallundbæk, the Founder and CEO of Welltec, said: “Our bond issuance will allow us to simplify our capital structure, extend our maturity profile and fix the vast majority of our interest costs. In a larger perspective, we have demonstrated our ability to access the international capital markets and diversify our funding sources. The transaction and the growth it will support will move Welltec to the large cap league. Our profile is now known among some of the largest asset managers in the world. We are grateful for their support and will do our best to deliver a healthy return on their investment. If additional funding will be needed, we would certainly be looking to tap the international capital markets again, and we may consider a listing of our equity in a couple of years.”

The offering was arranged by Goldman Sachs International and Credit Suisse as Joint Book Runners and DNB Markets as Co-Manager. DNB Bank has made available a new multicurrency working capital facility in an amount of US$ 20 million. Bruun & Hjejle acted as capital markets adviser and Danish legal counsel.

For further information, please contact Jesper Helmuth Larsen, CFO.