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www.MerlinERD.com Innovative Drilling Technologies To Maximise Recovery Iain Hutchison CEng FIMechE MD Merlin ERD Ltd OGTC Aug 2017 2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

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www.MerlinERD.com

Innovative Drilling Technologies

To Maximise Recovery

Iain Hutchison CEng FIMechE

MD Merlin ERD Ltd

OGTC Aug 2017

2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

www.MerlinERD.com

Insanity:

“Doing the Same thing & expecting

different results”

Albert Einstein

Change or Die

2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

www.MerlinERD.com

Be a Champion

• Aspiration

• Belief

• Perseverance

• Leverage

• Better never ends

2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

www.MerlinERD.com

Drilling is Everything

YOU can drill…

• FURTHER than you think

• FASTER than you believe

• At lower RISK, TIME & COST

People are brilliant!

2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

www.MerlinERD.com

ERD Applications

Viable? How to tell / prove it?

2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

www.MerlinERD.com

Encana Germain 15A-36

Apache STAG 12H

Maersk Qatar Persian Gulf BD-04A

ExxonMobil Russia Sakhalin Island OP-11

ExxonMobil Russia Sakhalin Offshore O-14

Statoil Norway North Sea B-47

ExxonMobil Canada Newfoundland and Labrador B-16 56 OPA2

Shell USA Gulf of Mexico - Mississippi Canyon A10 S1Shell USA Gulf of Mexico - Mississippi Canyon A10

Shell USA Gulf of Mexico - Garden Banks GB 472 #2 ST3Shell USA Gulf of Mexico - Mississippi Canyon MC 766 #1

Shell USA Gulf of Mexico - Garden Banks GB 426 A-16 ST3

BP USA Gulf of Mexico - Mississippi Canyon MC725 # 1

Devon Energy USA Gulf of Mexico - Walker Ridge WR 278

Chevron USA Gulf of Mexico - Green Canyon GC 512 #1 BP2

GNPP Nedra Russian Kola Peninsula SG-3

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

TVD

(M

etre

s)

Departure (Metres)

Envelope All Well Data

Industry Achievements

2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

www.MerlinERD.com

Behave Like a 3 Year Old

UK & Norway North Sea ERD Wells

2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

www.MerlinERD.com11

10 km

15 km

Industry Capabilities

Thistle Area

NWFB

Murchison

Dunlin

Statfjord A

Thistle

Drilling Reach:

10 km Achieved

13 km World Record

15 km Tech Capability

Statfjord B2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

www.MerlinERD.com

Transformational change

2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

www.MerlinERD.com

10,000

15,000

20,000

20 30 40 50 60 70 80 90 100

Me

asu

red

De

pth

(ft

)

Days

Pre-1993

Conventional vertical well drilling practices:

• Packing off/stuck pipe

• Reaming

• Wiper trips

10,000

15,000

20,000

20 30 40 50 60 70 80 90 100

Measure

d D

epth

(ft

)

Days

Technology Transfer

2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

www.MerlinERD.com

10,000

15,000

20,000

20 30 40 50 60 70 80 90 100

Me

asu

red

De

pth

(ft

)

Days

Pre-1993

1993-1994

ERD practices implemented

20 30 40 50 60 70 80 90 100

10,000

15,000

20,000

Measure

d D

epth

(ft

)

Days

Standard Deviated Wells

2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

www.MerlinERD.com

Standard Deviated Wells

ERD practices + additional

experience = record wells

ERD evolution

2007 (Australia)

Days

10,000

15,000

20,000

Measure

d D

epth

(ft

)

20 30 40 50 60 70 80 90 100

ERD practices + additional

experience = record wells

ERD evolution

2007 (Australia)

Cut well times and costs by

engineering the details

2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

www.MerlinERD.com

Your “End”

NPV (net present value)Drill Further, Faster at Lower Cost & Risk

2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

www.MerlinERD.com

Today’s Talk

YOU can drill…

• FURTHER than you think

• FASTER than you believe

• At lower RISK, TIME & COST

People are brilliant!

2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.

www.MerlinERD.com

Transformational Change

Merlin ERD LimitedTel +44 1738 627922

Email: [email protected]

If we always do what we’ve always done, we’ll only get what we’ve always had!

• It’s all about drilling• Others have done it• It starts with You!

2017-08 OGTC Copyright © 2017 Merlin ERD Ltd. All rights reserved. Please contact for license to use.