DI-82 – STEERABLE DRILLING TOOL FROM THE POINT OF FIRST FIELD TRIALS THROUGH TO PRODUCTION AND COMMERCIALISATION

Date Submitted: 31st January, 1999

Technical Area: Exploration

Sponsor:

Title: STEERABLE DRILLING TOOL FROM THE POINT OF FIRST FIELD TRIALS THROUGH TO PRODUCTION AND COMMERCIALISATION

Submitted by: ROTARY STEERABLE TOOLS, 13700 VETERANS MEMORIAL DRIVE, STE 410, HOUSTON, TEXAS 77014

Principal Investigator(s): STEVE MCLOUGHLIN/ s.mcloughlin@gte.net JACK P. CHANCE/ jch2384832@aol.com

Business Impact: To date, commercial developments and applications of Rotary Steerable Tools have focussed on the advantages of rotary steerable drilling (better hole cleaning, lower hole tortuosity, ERD programs, improved drilling hydraulics, higher range of available weight on bit ) and failed to address the issue of the development of a rotary steerable tool which has the economic efficiency to be adopted and applied to all types of directional and horizontal wells, whether conventional or ERD. The current proposal concerns the development of a production tool from the existing prototypes; funding of the beta prototype and the ability of ROTARY STEERABLE TOOLS to fill the needs of operators through the provision of tools: this will require significant fleet development. However, with a length of approximately 10ft and a very low capital cost, we believe the economic advantage will encourage industry participation in our development phase.

Technical Objectives: The development of a LOW COST, easily maintained, RELIABLE, Rotary Steerable Tool, through innovative and continually improving design. We have, at the moment, constructed two 12-1/4″ section tools for testing. We are in need of funding to hire further design engineers, buy computers and software, to begin downsizing the tools for 9-7/8″, 8-1/2″ and 6″ hole sizes. [Note; the electronics package is already downsized to an OD of 1.25″]
Methodology: We will be using a combination of conventional design methods and accelerated field testing to prove out the components in our Rotary Steerable Tool design. We have identified several major parts suppliers and have already entered into dialogue with them concerning the hostility of the environment and the requirement for reliability, with a high degree of cooperation to date.

Deliverables: A low cost Rotary Steerable Tool which is equally at home on a deep offshore rig or on a land rig. At the end of the project there will be available 12 units ( 6 rig capacity )of 12-1/4″ tools, and 2 units each ( 1 rig capacity ) of 9-7/8″, 8-1/2″ and 6″ tools. The 12-1/4″ tools will be on rental and will enable the development of a fleet of the smaller tools using debt money.

Startup Date: 1994

Project Duration: All 3 phases within 1 year

Project Cost: Phase 1: Testing Prototype 1 $100,000: Phase 2: Building “improved” beta Prototype – $125,000: Phase 3A: Building a fleet of 10 production 12-1/4″ Rotary Steerable

Tools – $1,200,000: Phase 3B: Development of smaller tool sizes – $1,105,000: Infrastructure Cost $500,000. Phases 3A and 3B to run concurrently.

Cost per Participant:

Comments: ROTARY STEERABLE TOOLS is located in North West Houston, within 30 minutes drive of downtown. Plese feel free to call our workshop on (713) 896 1212 and arrange an appointment to visit us and see the two 12-1/4″ tools operating. We can also be found on the web at www.rotarysteerable.com.