Shell and Enventure Global Technology Install World's First Corrosion-resistant Solid Expandable Tubular System.

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--Aug. 1, 2002

13% Chrome Expandable Tubulars Increase Production in

Highly-corrosive Environments

Nederlandse Aardolie Maatschappij B.V. (NAM), Western Europe's largest natural gas producer, and Enventure Global Technology have successfully installed the world's first corrosion-resistant alloy (CRA) Solid Expandable Tubular (SET(TM)) System in a well located in The Netherlands. The cooperative effort between Shell International Exploration and Production, B.V., NAM, Vallourec Mannesmann (VAM) and Enventure resulted in the expansion of a 6-in. 13% Chrome (Cr13) Cased-Hole Liner (CHL(TM)) inside 7-5/8 in. casing. Proprietary gas-tight, CRA expandable connections and tubulars, jointly developed by Shell and VAM, were also used for the first time in this extraordinary SET System installation.

"This is one of the biggest step changes the oil and gas industry has undergone in 40 years," said Hans Bouman, Groningen Asset Manager for NAM. "The research and development expertise of Shell and VAM, coupled with Enventure's SET experience, were responsible for this achievement. The increased durability of Cr13 tubulars in corrosive environments will dramatically reduce the limitations on how deep we can drill."

The 710-ft CRA Cased-hole System, installed in a gas well in the Wanneperveen field, was expanded in 7 5/8-in. 39 ppf, 33.7 ppf and 29.7 ppf casing, with elastomer seals in each section. Combined mechanical and hydraulic forces used to expand the chrome pipe by 9.8% averaged approximately 92,000 lbs. Post-expansion ID of the 6-in. 18.6 ppf CRA Liner was 5.92-in. (compared to a pre-expansion diameter of 5.39 in.), while post-expansion burst and collapse were estimated at 7,000 psi and 4,000 psi, respectively. Overall liner length was reduced from 730 feet to 710 feet as a natural result of the expansion process.

"This proof of concept test is in preparation for the installation of a 5,500-ft Expandable CRA System to re-line production casing so it can be used as the production conduit," said Lance Cook, president and CEO of Enventure. "The ability to expand Cr13 tubulars will allow far greater production deliverability from highly corrosive wells."

To date, Enventure has installed 73 solid expandable tubular systems and expanded a total of 56,458 feet of tubulars and 1,503 proprietary expandable connections. Enventure Global Technology, L.L.C., currently 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

Technological advances are enabling oil and gas producers to target reservoirs at greater depths below the earth's surface than ever before. According to the U.S. Department of Energy, more than 70 percent of the natural gas produced in the continental U.S. comes from wells deeper than 5,000 feet. "But in the not-too-distant future," said DOE, "as America's demand for clean-burning natural gas increases, drillers will likely be required to probe much deeper - perhaps 15,000 feet or more beneath the earth's surface, where an estimated 125 trillion cubic feet of unclaimed natural gas is thought to be trapped."

The high-pressure, high-temperature environments of these new ultra-deep wells will require new drilling materials. Enventure Global Technology has recently developed the ability to use its game-changing Solid Expandable Tubular Technology to expand the Corrosion Resistant Chrome tubulars that will be necessary to drill deeper and increase production in highly corrosive environments.

Reporters interested in speaking with Lance Cook, president and CEO of Enventure Global Technology, about SET and its potential impact on the industry can contact Melanie Fahey at Sommers & Associates, 713/222-1600.