MANAGED PRESSURE DRILLING PRESENTATION ______________________________________________________________________ A Continuous Circulating Concentric Casing System for Friction Controlled Drilling

The Gardes Energy Services MPD System Provides: The down hole control of critical high-pressure, high-temperature wells while drilling using a combination of both standpipe and concentric annulus fluid injection to create frictional pressures on the return annulus and establish a desired equivalent circulating density (ECD) at depth to drill near balance, at balance or under balance in the formation. During connections, the established standpipe injection volume used while drilling is added to the normal annulus injection volume on the back side, so the ECD remains constant, thus eliminating the bottom hole pressure surges associated with connections and minimizing connection gas influx. This system overcomes the problems associated with shallow geotechnical hazards, well bore instability, lost circulation and narrow margins between formation pore pressure and fracture gradient.

High Temp., High Pressure MPD System with the patented dual fluid friction circulation. Increased Concentric Casing circulating rate creates instantaneous control of reservoir inflow without the need for surface pressures or modification of drilling fluid densities.

Managed pressure drilling can overcome a variety of problems including shallow geotechnical hazards, well bore instability, lost circulation, and narrow margins between formation pore pressure and fracture gradient.

ECD management by planning and monitoring a Managed Pressure window. Narrow ECD window between pore pressure and bore hole collapse that can be maintained with Managed Pressure Drilling and the Gardes Continuous Circulation dual string technology

ADVANTAGES OF GARDES ENERGY SERVICES MPD CONCENTRIC CASING CONTINOUS CIRCULATION SYSTEM Expands operating window between ECD and Frac Gradient. Reduces excessive cost of circulating out connection gas. Creates near constant and controllable ECD pressures. Added well control during trips. Continuous circulation during connections. Can be run with all down hole deployment casing valves. Contains all working pressures below rotary table not on rig floor. System has an attached whip stock (up stock) for multi lateral deviation or re entry. System can be run in open or cased holes System can be stripped out of hole to keep UB environment at TD. System can be run in straight, deviated or horizontal configured well bores. System is designed for all MPD situations, Under balanced or tight ECD environments.

The purpose of MPD is to both ascertain the down hole pressure environment limits and manage the annular hydraulic pressure profile to fit within that window.

9500 9000 8500 Frac Gradient 8000 7500 7000 Pore Pressure 6500 Bore Hole Collapse 6000 5500

The Gardes Energy Services MPD System Includes Neo Tech 7 Flow Modeling: Through Pre planned flow modeling, Down Hole Pressure while drilling tools (PWD) and Real Time on location Flow Modeling we are able to manage the Annular Hydraulic pressure profile to fit within any window.

Bottom Hole Circulating Pressure (BHCP) vs. Liquid Injection Rates Bottom Hole Circulating Pressure (BHCP) vs. Liquid Injection Rates. Actual Case History Showing BHCP Control with Minimal Pressure Oscillations 4750 4625 4500 4375 4250 4125 4000 3875 3750 3625 3500 3375 3250 Vs Inj 0 25 50 75 100 125 150 175 200 2250 250

The Gardes Energy Services MPD 4 Phase Surface System Real Time: _______________________________________________

MPD may be accomplished by many means including combinations of backpressure, variable fluid density, fluid rheology, circulating friction, and hole geometry

Wellhead for Continuous Circulation BOP Secondary Seal Test Port VR Threads Surface Casing Intermediate Casing

Wellhead for Continuous Circulation Run in Lockscrews BOP Running Tool with Acme Thread Carrier String Hanger Micro-Annulus Carrier String Test to Working Pressure Surface Casing Intermediate Casing Production Casing

Wellhead for Continuous Circulation Injection Down Drill Pipe Drill Pipe Fluid Returns Co-mingle Injection Into Micro Annulus

Wellhead for Continuous Circulation Injection Down Drill Pipe Drill Pipe Fluid Returns Co-mingle Injection Into Micro Annulus

Click for each Operation Drilling Operation 1. Drill Surface Hole 2. Set Surface Casing Protective and Tieback casing designed for production 3. Drill Protective Hole 4. Set Protective Casing 5. Drill Liner Hole 6. Set liner 7. Run Tieback with Down Hole Deployment Valve with Ports above the DHDV Ports 8. Rig up RBOP, Programmable Choke, Surface Equipment, and test. DHDV 9. Drill to Zone of Interest 10. Run Carrier String with DHDV with or without Upstock Not necessary to drill out from the liner or the carrier string to go underbalanced. 11. Drill out 12. Run Drill String with BHP Tools and Float Subs 13. Go underbalance with mud weight light enough to be 600 to 800 psi below BHP but with annular friction to maintain surface pressure less than 2,000 psi. Inject down the backside and inside of the tieback string taking returns inside of the carrier string. DHDV Carrier String

Robert Gardes phone # 337/234-6544 email: rgardes@gardesenergy.com