Client Chemical and BHP information

Methanol, CaCl, KCl, Propane, Butane, Methane, 15% HCI Acid, 50% HCR Synthetic Acid, Norman Wells crude oil (Oil – 815 Kg/m, Produced Water – 1005 Kg/m, Gas – 0.864 Kg/m), Nalco 9217 Inhibitor, Nalco 6222 Biocide, Kill Mud Consisting Of -Barite, Aquagel, Pac – Rd, Berezan D+ Bottom hole pressure in the field ranges from between 7,000 KPA and 10,000 KPA. Bottom hole temperature in field range from cryogenic to 30°C.

The temperature range on the seal stack provided by Oil Rebel Innovations for these three wells with 73mm EUE tubing were in the range of, cryogenic to 40°c compatible for the above chemicals.

Well #1 Install Date: April 8, 2015

The Company Representative and rig crew (assisted with an Oil Rebel Innovations Rep for training purposes) installed a re-entry guide to the bottom of the ALII Tool to be run. The purpose of the re-entry guide was to be used as a lower tread protector only. Other equipment could be installed at the client’s request such as a tubing pup-joint for tagging PBTD or pressure/temperature recorders etc.. The Oil Rebel Innovation’s Rep then explained to the Company Representative and rig crew the items to inspect prior to running the ALII Tool into the wellbore. The rig crew then ran in the hole with the ALII Tool attached to the tubing directly below the PSN. The Company Rep stopped at the halfway point and filled the tubing with production fluid to reduce the buoyancy factor and continued in with the production string and landed the PSN @ 892 MKB.

The rig crew then attached the ALII Actuator to the bottom of the new pump. The Oil Rebel Innovation’s Rep assisted and explained the items to inspect prior to running the ALII Actuator. Once this was complete the rig crew proceeded to run in the hole with the rod string. The rig crew then spaced out the rod pump and installed the polish rod and stuffing box. The wellbore was 100% secure at this time with the ALII Tool closed. The Company Representative requested that a negative pressure test be conducted for 10 minutes (solid test). The rig crew then filled the rest of the tubing with production fluid and pressure tested the tubing and ALII Tool to 5 MPA for 10 minutes (solid test) as per the client’s request. The Client then requested the rig crew to function the ALII Tool open and closed 6 times. After that we completed a second pressure test on the ALII Tool to 5 MPA for 10 minutes (solid test). The Company Rep had the rig crew bleed off the pressure and conduct a second negative pressure test for 10 minutes (solid test). The Client requested that we stroke test the pump to verify pump integrity and that the ALII Tool was indeed open. The rig crew stroke tested the pump with a 2 MPA gain in the up stroke and 2 MPA gain in the down stroke. The rig crew stroked back 1 m³ of production fluid proving that the ALII Tool was open and functioning correctly.

Well #2 Install Date: May 29th, 2015

After the successful installation on well #1 and training of the rig crew the Client chose to have rig crew along with the Company Rep install the ALII Tool for this well.

The rig crew ran in the hole with the ALII Tool attached to the tubing directly below the PSN and landed the PSN @ 461 MKB. The rig crew then attached the ALII Actuator to the bottom of the new pump and ran in the rod string. They then spaced out the pump and installed the polish rod and stuffing box. The Client requested that the same set of tests be conducted on this well that were done on well #1. A negative pressure test was conducted for 10 minutes (solid test). The rig crew then filled the tubing with production fluid and pressure tested the tubing and the ALII Tool to 5 MPA for 10 minutes (solid test). The Client then requested the rig crew to function the ALII Tool open and closed 6 times and to complete a second pressure test on ALII Tool to 5 MPA for 10 minutes (solid test). The Company Rep had the rig crew bleed off the pressure and conduct a second negative pressure test for 10 minutes (solid test). The Client requested a stroke test of the pump to verify pump integrity and that the ALII Tool was indeed open. The rig crew stroke tested the pump with a gain in the up stroke and a gain in the down stroke. The rig crew stroked back 1 m³ of production fluid proving that the ALII Tool was open and functioning correctly.

Well #3 Install Date: September 10th, 2015

After the successful installation on well #1 & 2 the Client chose to have rig crew along with the Company Rep install the ALII Tool for this well.

The rig crew ran in the hole with the ALII Tool attached to the tubing directly below the PSN. The Company Rep stopped at the halfway point and filled the tubing with production fluid to reduce the buoyancy factor and continued in with the production string and landed the PSN @ 961 MKB.

The rig crew then attached the ALII Actuator to the bottom of the new pump and ran in the hole with the rod string. The rig crew then spaced out the rod pump and installed the polish rod and stuffing box. The wellbore was 100% secure at this time with the ALII Tool closed. The Client requested that the same set of tests that were done on wells 1 & 2 be conducted on this well. A negative pressure test was conducted for 10 minutes (solid test). The rig crew then filled the remainder tubing with production fluid and pressure tested the tubing and ALII Tool to 5 MPA for 10 minutes (solid test). The Client then requested the rig crew to function the ALII Tool open and closed 6 times and complete a second pressure test on ALII Tool to 5 MPA for 10 minutes (solid test). The Company Rep had the rig crew bleed off the pressure and conduct a second negative pressure test for 10 minutes (solid test). The Client requested a stroke test of the pump to verify pump integrity and that the ALII Tool was indeed open. The rig crew stroke tested the pump with a gain in the up stroke and a gain in the down stroke. The rig crew stroked back 1 m³ of production fluid proving that the ALII Tool was open and functioning correctly.

March 30th, 2016 on Well #1

The rod string on this well prematurely failed. The rod string had a parted pin at the transition string connection.

The Client decided to move in a service rig. They had less than 14 days to complete the repair due to the closing date on the ice road on the river to the islands. If they failed to complete the job it would have had to be suspended until mid-June when a rig could be barged to the island or trap the rig on the island until then.

The rig crew rigged up the rig and pulled up on the polish rod and found that the rod string was weighing light. The tubing was then pressure tested to 5 MPA for 10 minutes (solid test). The pressure was then bleed off to zero and negative 10 minute test was also conducted (solid test). The rig crew then removed the stuffing box and polish rod and started to trip the rod string out of the hole. When they reached the point of the transition in the rod string they found that the pin had failed on the 63rd rod. The rig crew then ran in the hole with sucker rod overshot and latched onto the parted rod string. They pulled up and unseated the rod pump and closed the ALII Tool. They conducted a 5 MPA pressure test against the ALII Tool for 10 minutes (solid test). The pressure was then bled off and a 10 minute negative pressure test was conducted (solid test). The rig crew then began to trip out of the hole with the fish and pump. Once the pump was surfaced the decision was made to run a new pump into the well. The rig crew then removed the ALII Actuator from the old pump and reinstalled it onto the new pump. They picked up the new pump and ran it and the rod string back into the well. The rig crew installed the polish rod and stuffing box and seated the pump which opened the ALII Tool. The Client then had the rig crew open and close the ALII Tool 2 times. They also conducted another 5 MPA pressure test to confirm the pump was seated (solid test). The Company Rep also stroke tested the pump to verify pump integrity and that the ALII Tool was indeed open recovering 1m³ of production fluid. The well was then put back online.

Savings on this well:

- 3 days rig time (10hrs/day)........................................................................................................................................$23,000

- 3 days P-Tank rental and flare stack............................................................................................................................. $4,400

- Trucking for P-Tank......................................................................................................................................................$3,500

- 1370kg/m Calcium 20m³............................................................................................................................................$21,000

- Trucking of Calcium to Well........................................................................................................................................$1,500

- Trucking of Used calcium and production fluids to storage tanks...................................................................................$8,400

- 3 days lost production...................................................................................................................................................$18,800

- Cost to dispose of calcium (Unknown due to fact that fluids must be barged out).........................................................?

Total known savings..........................................................................................................................................................$80,600