BSP And Enventure Global Technology Install World's First Horizontal Cased-Hole Solid Expandable Tubular System; Workover Perforated Well Across Three Separate Oil Producing Zones.

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--Sept. 17, 2002

Brunei Shell Petroleum (BSP) and Enventure Global Technology have installed the world's first horizontal cased-hole Solid Expandable Tubular (SET(TM)) System in a 1,000-foot-plus workover project that has produced USD $12 million in additional oil recovery.

The expanded liner -- a 5 1/2-in.Cased-Hole Liner (CHL(TM)) inside 7-in. casing in a well located in Brunei -- has now been perforated across three separate oil producing zones between pairs of seals while leaving the gas zones shut-off behind the expandable liner. Before this workover, the whole section had been isolated by means of a plug, due to the gas production.

"BSP is leading the industry in the use of this new technology with the installation of Shell's second SET System in the Australasia region," said Michael Ruggier, Global Implementation Team Regional Engineer Australasia, Shell. "SET Technology has proven its value as a cost-effective method to workover wells."

Deep & Complex

"This job was one of our most complex jobs to date and significantly stretched the operating envelope of our system," said Lance Cook, president and CEO of Enventure. "The elastomer seals had to be positioned within a tolerance of +/- 6.6 ft. due to the proximity of the gas to oil-bearing zones. This was quite a feat at a long hole depth of almost 13,123 ft.

"Also to get to depth the liner had to be run 'uphill' in an inclination of 105 degrees," Cook added.

Smedvig's West Menang rig was used to run the 1,043-ft 5 1/2-in. X 7-in. Enventure Expandable Cased-Hole Liner in an offshore oil well located in the Iron Duke Field off the northwest coast of the island of Borneo. The Expandable Liner was set in 7-in. 29 ppf liner, with three pairs of strategically placed elastomer sealing joints set in each section that will isolate gas production from the oil producing zones. Setting depth of the liner was approximately 12,972 feet. The CHL System was expanded 11.6% using a propagation force of approximately 94,000 lbs. Post-expansion ID of the 5 1/2-in. Expandable Liner was 5.460 in. (compared to a pre-expansion diameter of 4.892 in.), while post-expansion yield and burst were estimated at 6,774 psi and 9,402 psi, respectively. The 6-in.Cased-Hole Liner, after being expanded into the 7-in. base casing, exhibited a reduction of approximately 2.3% in overall length -- from 1,068 feet to 1,043 feet.

As of Sept. 16, 2002, Enventure has performed 84 installations and expanded 78,370 feet of pipe for 30 operators globally. Enventure Global Technology, L.L.C., the world's leading provider of solid expandable tubular solutions, is a limited liability company organized and owned by Halliburton Energy Services Inc. and Shell Technology Ventures Inc. For more information go to www.EnventureGT.com.