Potassium formate brine has been produced by Addcon in Norway since 1994

Production Site ADDCON NORDIC AS

Storage tanks for raw materials

Potassium formate production by Addcon

• The first and largest producer of potassium formate

- Brine production capacity : 800,000 bbl/year

- Non-caking powder capacity: 8,400 MT/year

• Direct production from HCOOH and KOH

• High purity product

• Large stocks on quayside location

• Fast service – by truck, rail and sea

• Supplier to the oil industry since 1994

50 % KOH4,500 m3

6,300 MT

94 % Formic acid5,000 m3

Feedstock storage tanks in Norway

Cesium formate produced by Cabot in Canada from pollucite ore

Pollucite ore

Cs0.7Na0.2Rb0.04Al0.9Si2.1O6·(H20)

• Mined at Bernic Lake, Manitoba

• Processed on site to Cs formate brine

• Cs formate brine production 700 bbl/month

W-Cluster

15000'

Z2

Z6

Z5Z7

Z4

5000'

10000'

15000'

18000'

Potassium formate brine has been used to drill deep HPHT gas wells since 1995

First use : ExxonMobil’s Walsrode field, onshore northern Germany - high-angle deep HPHT slim hole low perm gas wells

TVD : 4,450-5,547 metres Reservoir: Sandstone 0.1-125 mDBHST : 157o C Section length: 345-650 mDrilling fluid: SG 1.45-1.55 K formate brine

Potassium formate from Addcon used in 15 deep HPHT gas well constructions in Germany ,1995-99

Well Name Application Fluid Type Density s.g. (ppg)Horizontal Length(m)

Angle (°) BHST (°F) BHCT (°F) TVD (metres) MD (metres)Permeability

(mD)

Walsrode Z5 W/C K Formate 1.55 (12.93) 345 26 315 na 4450 - 4632 4815 - 5151 0.1 - 125 mD

Wasrode Z6 W/C K Formate 1.55 (12.93) 420 40 315 na 4450 - 4632 4815 - 5151 0.1 - 125 mD

Walsrode Z7 Drill-In K Formate 1.53 (12.77) 690 59 315 295 4541 - 4777 5136 - 5547 0.1 - 125 mD

Söhlingen Z3A Drill-In Formix 1.38 (11.52) 855 89 300 270 4908 5600 na

Söhlingen Z3a Drill-In Na Formate 1.30 (10.85) 855 89 300 270 4908 5600 na

Volkersen Z3 W/C Formix 1.40 (11.68) 512 52 320 na na na na

Kalle S108 Drill-In Formix 1.45 (12.10) 431 60 220 na 6000-6500 6200-6600 na

Weißenmoor Z1 W/C Formix 1.35 (11.27) 634 31 300 na na na na

Idsingen Z1a Drill-In K Formate 1.55 (12.93) 645 61 321 290 4632 - 4800 5257 - 5821 0.1 - 125 mD

Söhlingen Z12 Drill-InNa

Formate/Formix1.35 (11.27) 452 28 313 285 4736 - 4937 4846 - 5166 1.0 - 75 mD

Simonswolde Z1 Drill-In K Formate/Formix 1.52 (12.68) 567 35 293 275 4267 - 4572 4236 - 4648 0.1 - 25 mD

Walsrode NZ1 Drill-In Formix 1.51 (12.60) 460 34 290 265 4632 - 4815 4541 - 4693 0.1 - 125 mD

Idzingen Z2 W/C Formix 1.40 (11.68) na na 320 na 4632 - 4800 5257 - 5821 0.1 - 125 mD

Voelkersen NZ2 W/C Formix 1.40 (11.680 na na 320 na na na na

Söhlingen Z13 Drill-In/Frac K Formate/Formix 1.30 (-1.56)(10.85) 1200 90 300 285 4724 5486 - 6400 0,1 - 150 mD

Fluids service provided by M-I and Baroid

Summary of potassium formate brine use in HPHT gas wells in Germany,1995-99

Formate brines – Some further important milestones : 1999-2004

19991999 20002000 20012001 20022002 20032003 2004 2004

First production of non-caking

crystalline K formate by

Addcon

First drilling jobs with

K/Cs formate brine:

Huldra and Devenick HPHT

Formate brines used as packer fluids for HPHT wells in GOM. First well : ExxonMobil’s MO 822#7 (215oC BHST) in 2001

Use of Cs-weighted oil-based completion fluids for oil reservoirs : Visund, Statfjord, Njord, Gullfaks, Snorre , Oseberg, Rimfaks 2001 – present

First use of Cs-weighted LSOBM as perforating completion

fluid (Visund)

First use of K/Cs formate

brine : Completion

job in Shearwater well (Shell

UK)

Cs-weighted LSOBM used as OH screen completion

fluid (Statfjord)

First use of K/Cs

formate brine as

HPHT well suspension

fluid (Elgin)

Individual Draugen oil wells (1993) and Visund oil wells (2003) have similar flow rates of around 50,000 bbl oil/day

First of 14 Kvitebjørn HPHT wells drilled and completed with K/Cs formate brines

The first sustained use of K/Cs formate brine was in the world’s largest HPHT gas field development

190oC1100bar

5300m

Water Depth 90m

SIWHPFWHT

830bar180oC

::

GASCONDENSATE

3-4% C0230-40 ppm H2S

320barDEWPOINT

30% O1 Darcy K

Cesium formate brine used by TOTAL in 34 well construction operations in 8 deep gas fields in period 1999-2010

Elgin/Franklin field – UK North Sea

Formate brines – Some published milestones 2005 -2010

20052005 20062006 20072007 20082008 20092009 2010 2010

OMV Pakistan

start using K formate to drill and

complete (with ESS) in

HPHT gas wells

K/Cs formate brines used as well perforating fluids in 11 HPHT gas fields in UK North Sea : Dunbar, Shearwater, Elgin, Devenick , Braemar , Rhum, Judy , Glenelg , Kessog , Jura and West Franklin1999-2011

Saudi Aramco start using K

formate to drill and complete (with ESS) in

HPHT gas wells

Gravel pack with K

formate brine in

Statfjord B

First MPD operation in Kvitebjørn with K/Cs formate

“designer fluid”

First of 12 completions

in the Kashagan field with

K/Cs formate

Total’s West Franklin F9 well (204oC) perforated in K/Cs formate

brine

Petrobras use K

formate brine for

open hole gravel packs

in Manati field

Saudi Aramco have been drilling HPHT gas wells with potassium formate brine since 2003