Due to problems such as drag, high torque, bit balling and low ROP in the 12- 1/4" section in the Ceuta Field Block VII, Area 8, and the elimination of the use of the VASSA LP-90 Mineral Oil from the formulation because of environmental concerns, MI and Foramer de Venezuela (Pride) decided to use the product called Thuslick™ in conjunction with the liquid lubricants (VEN-LUBE + LUBE 100) in the 12 1/4 phase of the VLG-3854 and VLG-3857. All problems previously exposed were reduced utilizing a concentration between 4 and 5 ppb of Thuslick™ and 1.7% to 2.28% (6-8 ppb) of the liquid lubricants in the system.

DESCRIPTION OF THE PRODUCT

ENHANCES LUBRICITY

1. Minimizes downhole friction forces
2. Enhances directional drilling operations
3. Optimizes rates of penetration and effective weight on bit.
4. Minimizes rotary torque
5. Optimizes tripping
6. Eliminates balling
7. Minimizes casing and tubular wear
8. Near gauge borehole
9. Improves logging operations

RECOMMENDED TREATMENT

LOWERS SURFACE TENSION:

• Diamond and PDC bits can be used in water based muds
• Maximizes air and gas breakout
• Eliminates de-Foamers
• Optimizes solids separation
• Minimizes dilution requirements
• Excellent lubricity in oil base muds
• Extends temperature stability of polymers in water base muds

FORMATION COATING

• Mechanically stabilizes shales
• Repels water
• Lowers HP-HT
• Reduces seepage losses
• Good cuttings quality
• Good core quality
• Enhances lift-off in testing/completion operations
• Reduces rates of corrosion

ENVIRONMENTAL

• Totally inert material
• 100% environmentally safe/non-toxic
• Compatible with all mud systems

       Following is the data obtained during the drilling of the 12 1/4" in the 4500' to 10,500 interval using the following formulations.

• Well VLG-3854, The 12 1/4" section was started using concentrations of the liquid lubricants 2.28% to 5.14% (8 to 18 ppb) of LUBE 100 + VEN LUBE) in the interval of 4500 ft to 10,500 ft, VASSA LP-90 MINERAL OIL was eliminated for environmental concerns. During this section very low ROP and hole instability was observed. For these reasons the use of the solid lubricant Thuslick™ was recommended in concentrations of 4 to 5 ppb from 11,182 ft. The results were increased on ROP and well bore stability.
• In comparing the 12 1/4" section of the VLG-3844 and VLG-3854 wells against VLG - 3857 the effective drilling time was lowered due to the following:

       It is important to note that the synergy of the products (VEN LUBE + LUBE 100) associated with the addition of the cellulose fibers (MIXII F/M) and the Micronized siliconized graphite (Thuslick™) provided a stable well bore and offered a very significant savings in the interval time. Total drilling days estimated at 53 days, actual drilling days were 36, reducing total drilling time by 17 days.

Compania Occidental de Hidrocarburos, Inc. Venezuela

By James Saxon July 25, 1996

       Thuslick™ was added to the mud system on July 6, 1996 in the initial concentration of 5ppb. This stared at approximately 10,360’ measured depth. The hole angle was approximately 23 degrees at this time. Prior to this, the mud was using Lubra Bids for lubrication and Soltex for shale stabilization. These two items ceased to be used after the addition of Thuslick™. 13-3/8" casing had been set at 2025’. In the two days prior to adding Thuslick™, slide drilling was taking place and the average ROP was between 7 and 12 ft/hr. Torque had been very high with the motor stalling out sometimes. There were numerous tight spots bellow 9700’ and there were shale carvings in returns while circulating bottoms up.

       The next day after the initial addition of Thuslick™, a trip was made from 10,413 ft with no excessive overpull. On the trip back in, the last stand was washed and reamed to bottom with no fill.

       Drilling over the next few days averaged between 9 and 20 ft/hr. with bits being pulled that were out of gauge and the hole consequently had to be reamed. On the 14th of July, eight days after the initial addition of Thuslick™, Baranex was added in the approximate amount of 4 ppb. In order to control the HT-HP, which was increasing due to the lack of any addition of a primary filtration control additive. There seems to have been a misunderstanding that Thuslick™ was a one-product system and that no other additives were necessary. This is not the case. When Baranex was added to control the HT-HP, it soon stabilized the fluid loss.

       During the last two weeks of the well, there were not great changes in the flow properties or other characteristics of the mud. The angle was built to 59.9 degrees and there seemed to be somewhat of a dogleg problem near the bottom of the hole. However, the well was drilled to TD with little time lost due to hole problems except for the reaming associated with out of gauge bits.

       At the TD of this well, there was over 10,000 feet of open hole. Considering the amount of open hole, the angle, the angle, the stressed coal section, the dogleg at the bottom and the amount of time that some of the hole had been open, it seem that " Thuslick™ " must have done a formidable job in order for the well to reach the proposed TD without any major problems. Also there was the saving of one string of intermediate casing.

At the TD of this well, there was over 10,000 feet of open hole. Considering the amount of open hole, the angle, the stressed coal section, the dogleg at the bottom and the amount of time that some of the hole had been open, it seem that Thuslick™ must have done a formidable job in order for the well to reach the proposed TD without any major problems. Also there was the saving of one string of intermediate casing.

       It was a pleasure to have had the opportunity to service the well for Oxy, Venezuela and we look forward to being able to help with any future drilling plans that you may have in the coming years.