The Original Drilling Fluids Company™

SYSTEM 360Total Fluid Management

System

Client Challenges

coring - slow ROP (Rate of Penetration)) - coring difficult formations - formation evaluation

working on high quality agricultural land – environmental concerns and perception of landholders

use exploration operations to demonstrate waste management to landholders

re-use of water and drilling fluids solids/waste control - removing cuttings and solids from drilling fluid low gravity solids removal - an effective and reliable system drilling waste management - handle and consolidate waste prior to

disposal high disposal and transport costs – slurry disposal levy increase - $35/t

to $150/t Jan 1st 2012 limited disposal facilities - re-use of drilling fluids environmentally friendly drilling fluids move away from settling pits

Presentation Goals

• Define nature of problem• Define Total Fluids Management

• Engineered fluid solutions customized to maximize borehole value

• Borehole stability• Drilling productivity/sample quality• Water usage

Nature of Problem

• Wire-line coring bits generate very small cuttings• 2-60 µm – clay/silt fraction• Unique to coring operations

• Fine solids accumulate/concentrate in the drill mud leading to:• Increased mud weight/density• Increased viscosity/circulating density• Reduced penetration rates• Increased formation damage • Reduced core recovery in poorly competent ground• Increased potential for mud rings/stuck tube• Increased water consumption to make new mud• Increased cartage/disposal costs for spent mud

Spent mud or slurry is over 90% water and typically contains less than 5-6% solids…..

So why dump it?

Nature of Problem

Nature of Problem (cont’d)

Conventional solids control

• Gravity settling

• Large site foot print, slow, ineffective in mudstone/siltstone geology

• Shale shakers/hydrocyclones• Inefficient for particle size range 2-60 µm

• Centrifuge• high capital cost, labour intensive

Total Fluids ManagementSYSTEM 360

• Patented technology designed specifically for wire-line coring

• Uses both chemical and mechanical solids removal technology

• Increase productive working life of drill mud• Actively manage mud weight by

complete removal of solids from treated fraction

• Overflow returned to active system lowering average mud weight of circulating fluid

• Underflow separated into solids and clear water

Total Fluids ManagementKey Features

• Small operational footprint • Two pallet spaces

• Lightweight modular design • Total dry weight182kg• Transportable by light vehicle or helicopter

Total Fluids ManagementKey Features

• Ease of equipment use• in less than 5 days an unskilled operator can

independently run the unit

• Power options• Petrol, Diesel, Hydraulic

• Standard fittings• Camlock 50mm & 75mm integrates with

existing equipment/hoses

• 4 point Mixing System• high performance mud mixing

Total Fluids ManagementKey Features

• Underflow – complete water/solids separation• Produces clear water• Reduces water consumption• Reduces water haulage costs• Re-use of water:

• mix additional drilling fluid• equipment wash-down• dust suppression

Total Fluids ManagementKey Features

• Removal of flocculated solids • solids collected in draw-string bags for

safe simple waste handling• bagged waste for easy off-site disposal• reduced slurry haulage/disposal costs

Total Fluids ManagementKey Features

• Manage mud weight (SG) = manage solids content• Ideal SG range 1.02-1.06• SG > 1.10 = 6% solids but mud is shot and should be replaced• 6% solids = paying for removal 90%+ water• SYSTEM 360 actively controls circulating mud weight

• Reduce pressure on formation• SG + Pressure loss = Actual pressure exerted on formation• Pressure loss is a function of solids content and viscosity

Total Fluids ManagementKey Features

• Increase penetration rates• Improve bore-hole stability• Improve core recovery

• Reduce loss of matrix and fines by reducing circulating pressures

This? or This?

Owner – Hampton Mining

Contractor – AK Drilling International

Location – Moquegua, Southern Peru

Date – November 2011 to present

• Drilling Challenges• 1500-2000 m HQ holes drilled with generally full returns• Fine grained pyrites causing:

• Increased mud weights >SG 1.05-1.06• Large earth sumps• High spent mud disposal rates• Reduced production• High SG = high solids

= reduced RPM

Case StudyLos Calatos – Copper Exploration Project

• Client Challenge• Water costs running at USD$53.00 per metre drilled• Upwards of 45,000 L water used per day per rig

• Total Fluids Management

– Baroid GOLD line products and SYSTEM 360• Drilling fluid

• Soda Ash, • QUIK-GEL GOLD, • QUIK-TROL GOLD LV, • QUIKMUD GOLD

• Flocculant • SYSTEM FLOC 360

Case StudyLos Calatos – Copper Exploration Project

Case StudyLos Calatos – Copper Exploration Project

• Summary of Results as of Dec 5th, 2011• Water consumption reduced to 15,000 L/day

• 66% reduction in water use

• Sump size reduced by 90%• Mud weight is being maintained at SG 1.02-1.03. • Increased drilling production by average of 20%• Equipment Training

• < 5 days for Peruvian offsiders• Offsiders operating unit independently

Total Fluids ManagementSummary

• Starts at first turn of the bit

• Baroid IDP – we engineer fluid solutions customized to maximise borehole value

• Using Baroid IDP Gold line products, SYSTEM 360 and our engineering services can:• Improve quality and longevity of drill mud• Reduce water consumption• Reduce site footprint• Improve drilling production rates• Reduce per metre costs of exploration drilling• Make a positive contribution to HSE

SYSTEM 350 Video

SYSTEM 350 video presentation

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The Original Drilling Fluids Company™

SYSTEM 360Total Fluid Management

System