IES - Global

Development of
Training material

Well Operations
Chestnut Field
Venture Production UK

Knowledge Transfer Systems

Proposal – KTS 03/03/07

20TH March 2007

INNOVATIVE ENGINEERING SYSTEMS LIMITED

14 RUBISLAW TERRACE LANE ABERDEEN AB10 1XF UK
TEL: +44 (0)1224 658695 FAX:+44 (0)1224 658696
E-MAIL INFO@IESL-GLOBAL.COM
APPROVAL & DISTRIBUTION

Internal Proposal Approval

Client Venture Production

Field Chesnut
Well Producer/Injector

Proposal Title Well Operating Procedures training material

Proposal Number GCO – 03/3/07
Proposal Rev FINAL

Prepared by Juan Tovar Date 20/3/07

Reviewed by J. Callander Date 20/3/07
Approved by Jeff Callander Date 20/3/07

Distribution List

Name Company Format Date Revision

B. Holland Venture Production Electronic (PDF) 20/3/07 FINAL
J. Tovar IESL – Aberdeen Electronic (PDF) 20/3/07 FINAL
A. Salazar IESL – Aberdeen Electronic (PDF) 20/3/07 FINAL

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of Innovative Engineering Systems Limited (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2006

FINAL Well Operating Procedures Training for the Chesnut Field 20/3/07 2
TABLE OF CONTENT
1. Introduction ............................................................................................. 4
1.1 Background.................................................................................................. 4
1.2 Objectives .................................................................................................... 4
1.3 IES-Global ................................................................................................... 4
2. Scope of Work ........................................................................................ 5

3. Investment & Deliverables...................................................................... 6

3.1 Investment ................................................................................................... 6
3.2 Duration ....................................................................................................... 6
4. Track Record .......................................................................................... 7
4.1 Track Record – Geomechanics & Completion ............................................. 7
4.2 Publications – Completion & sand Control................................................... 9
5. Personnel.............................................................................................. 10
5.1 IESL Project Team..................................................................................... 10

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of Innovative Engineering Systems Limited (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2006

FINAL Well Operating Procedures Training for the Chesnut Field 20/3/07 3
 1
Section 1

INTRODUCTION
1. INTRODUCTION
This proposal has been developed following discussions between Brian Holland (Venture
Production) and Juan Tovar (IES-Global).

1.1 BACKGROUND
Innovative Engineering Systems Ltd. Has carried out the development of the Well operating
guidelines including the well start up and shut down procedures for both the Producer and
Injector in the Chestnut field. Based on these procedures it is required to training the personnel
that is going to operate the field. It is important to highlight that both wells have sand control
equipment but the producer appears to have very high skins and will require special care to
maximise production and minimise the risk of collapsing the pre-perforated liner.

1.2 OBJECTIVES
The key objective of this work includes the following tasks:

 Familiarize the participants with the basic engineering concepts related to the
conditions and operating of the wells
 Describe the current field and well conditions and equipment configuration
 Introduce the production / injection strategy for the field
 Introduce the proposed operational guidelines for each of the wells

1.3 IES-GLOBAL
We have included a list of previous projects that provide an insight into the depth and breadth of
IES-Global’s experience in a wide variety of reservoir types and geographical locations. Terms
and conditions can be provided upon request.
All calculations and reporting are thoroughly Quality Controlled by the senior management team
as well as internal peer review prior to release to the client.

The IES-Global difference? IES-Global prides itself on being responsive

and in providing our clients with the solutions that they are looking for. Our
dedication to quality ensures that we will continue validate and calibrate all
work we do, always striving to add value to our clients requests.

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of Innovative Engineering Systems Limited (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2006

FINAL Well Operating Procedures Training for the Chesnut Field 20/3/07 4
 2
Section 2

SCOPE OF WORK
2. SCOPE OF WORK
Based on discussions with Venture engineers, IES-Global offer the following scope of work for
your consideration:

 Develop material structure and proposed program for 1 day course

 Select topics and support material, graphics, animations required
 Develop the material in Powerpoint format
 Review and finalize material

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of Innovative Engineering Systems Limited (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2006

FINAL Well Operating Procedures Training for the Chesnut Field 20/3/07 5
 3
Section 3
INVESTMENT & DELIVERABLES

3. INVESTMENT & DELIVERABLES

Based on the objectives and scope of work outlined in previous sections, deliverables will be
teaching material in Powerpoint format to accompany the actual guidelines. The material will
cover

 Operating manual for both wells

 Knowledge transfer session and material for the operating personnel

3.1 INVESTMENT
Based on the scope of work and the deliverables, the cost of the work is £ 4500 GBP ex-VAT
and third party expenses.

3.2 DURATION
The development of this material is to be ready by the 15/04/07

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of Innovative Engineering Systems Limited (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2006

FINAL Well Operating Procedures Training for the Chesnut Field 20/3/07 6
 4
Section 4

TRACK RECORD
4. TRACK RECORD
Juan Tovar and Jeffrey Callander founded Innovative Engineering Systems Ltd in 1994. The
company objective is to provide technical innovation and cost effective solutions in well
engineering and systems development. Areas of excellence include:

 Well Completion
 Intervention & Rehabilitation
 Drilling & Environmental (Drill Cuttings Disposal)
 Sand Production Management
 Mechanical Design
 Fluid Dynamics
 Coiled Tubing Applications

IESL currently have offices in Aberdeen, UK and Houston, Texas.

4.1 TRACK RECORD – GEOMECHANICS & COMPLETION

The following table details some of the geomechanically related projects carried out by IESL
over the years. We have experience in a wide variety of environments, working with a large
number of operators on a global basis.

Project
Client Field
Comments
Hudson
Amerada (UKCS)
Sand Production
Hess Hudson Wellbore Stability
(UKCS) Optimisation of mud weights and casing depths for well stabilization
Kessog Wellbore Stability
BP (UKCS) High pressure & temperature
UTG Development of sand control completions manual
Espoir Wellbore Stability
(Ivory Coast) Multi layer reservoir with producing and injection wells
Espoir Sand Production
(Ivory Coast) Re-calibration with improved reservoir and logging data
Baobab Wellbore Stability
(Ivory Coast) Deep water development well
CNR Baobab Completion feasibility study for producers and injectors (ESS v.
(Ivory Coast) OHGP)
Espoir
Sand Production and Completion Feasibility
(Offshore
Field re-development
Ivory Coast)
Espoir Thermal Induced Fracturing
(Ivory Coast) Assessment of injection well for thermally induced fracturing
Enterprise Nelson Wellbore Stability
Oil (UKCS) Depleted reservoir with interbedded shales
Otter
Fina Equipment benchmark, screens v. gravel pack.
(UKCS)

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of Innovative Engineering Systems Limited (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2006

FINAL Well Operating Procedures Training for the Chesnut Field 20/3/07 7
 4
Track Record

Project
Client Field
Comments
Leadon Conceptual completion design for sand producing reservoir
(UKCS) formations.
Leadon Sand Production
Kerr McGee
(UKCS) Inter-bedded clay reservoir
Leadon
Wellbore Stability
(UKCS)
Ninian
Oryx Energy Drill Cuttings Re-Injection Study
(UKCS)
Ceuta Re-Completion Design
PDVSA
(Venezuela) High anisotropy
Yanayacu Completion design for sand management operations and
Pluspetrol
(Peru) productivity analysis.
Yetagun
Sand Production
Premier Oil (Offshore
Multi-layer offshore gas reservoir
Myanmar)
Seven Heads
Ramco Sand Production
(Celtic Sea)
Hannay Sand Production Analysis for Water Shut off operations
(UKCS) High Water cut multi-layered reservoir
Gyda Sand Production Prediction and Wellbore Stability
(Norway) HPHT wells
Orion Chalk Wellbore integrity and solids production assessment for a
(UKCS) carbonate formation with slotted liner
Orion Mey
Talisman Sand Production prediction and transport simulations
(UKCS)
Tartan Formation stress and strength assessment for fracture modelling
(UKCS operations
Galley Sand production prediction for perforation through a ssand screen
(UKCS) and volumetric calculations for anticipated sanding
Varg HPHT depleted reservoir sand production prediction and sand
(Norway) transport for oil and gas reservoir sections
Point Ligoure Sand Production
(Trinidad) High stress anisotropy
Brighton
Sand Production
Marine
High stress anisotropy, highly depleted reservoir
(Trinidad)
Forest
Sand Production
Reserve
Venture Highly depleted, multi-layered
(Trinidad)
Chestnut Sand production prediction and lower completion design for
(UKCS) expandable completion
Mallard
Sand production prediction for cleanup operations
(UKCS)
Gadwall
Wellbore stability analysis for upper and lower formations.
(UKCS)
Weatherford Preparation and Delivery of Sand Production and Completion
Completion - Design courses for WCS sand control products (sand screens /
Systems ESS)

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of Innovative engineering Systems Limited (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

FINAL Well Operating Procedures for the Chesnut Field 1/3/06 8

 4
Track Record

4.2 PUBLICATIONS – COMPLETION & SAND CONTROL

This section presents a selection of relevant papers that have been published over the years. A
complete set of papers can be provided upon request.
IESL are also actively involved in the European Sand Management Network, having a place on
the committee for the 1st European Sand Management Forum as well as presenting at their
workshops and forums.

Paper IESL Author Title

Recent Advances in Granular Based Sand Control –
SPE 97956 Juan Tovar
Design Operations & their Performance
North Sea Hannay Field Case History: Perforating
SPE 95325 Craig Webster through a Cased Hole Gravel Pack to Significantly
Increase Oil Production.
SMN 1st
Geomechanical Performance of the Espoir Field – A Case
European Juan Tovar
History
Forum
SPE 81034 Juan Tovar Integrated Approach to Sand Control Delivers Zero Sand
Wellbore stability issues when drilling and producing
SPE 74510 Juan Tovar
horizontal wells in the Hudson field. A Case history
Solving Sanding Problems using a Sand Production
SPE 56948 Craig Webster
Management System. Case Histories
Impact of Formation Damage on Sand Production in Deep
SPE 54757 Juan Tovar Eocene Reservoirs, Lake Maracaibo, Venezuela: A Case
History

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of Innovative engineering Systems Limited (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

FINAL Well Operating Procedures for the Chesnut Field 1/3/06 9

 6
Section 6

PERSONNEL
5. PERSONNEL

5.1 IESL PROJECT TEAM

The following subsections identify the key team members for the proposed work. A brief history
is included for each.

5.1.1 Jeff Callander – Managing Director

Jeff Callander, born American but a long-term resident of the UK, is a founding
shareholder and director of IESL. Although Jeff was born in the USA, he grew up in
Latin America (primarily Brazil) and only returned to the USA for university where he
obtained a BSc in Mechanical Engineering from North Carolina State University. Jeff
began his working carrier with Dowell Schlumberger working in the Amazon, North Sea
and West Africa. He also worked for a period at one of Schlumberger's manufacturing
and research facilities in France. Following Schlumberger, Jeff completed and MBA at
the London Business School and subsequently took over a division of Abbott
Laboratories, a pharmaceutical firm, in the UK. He then returned to the oil industry to set
up IESL with Juan Tovar as both shared a vision of potential improvements that could
be offered to the industry of better engineering and innovative thought. Jeff also runs a
successful management consultancy, is a director of IESL's sister company Innovative Knowledge and has recently
launched a consumer healthcare product which he invented.

5.1.2 Juan Tovar – Technical Director

Juan J. Tovar D. born in Venezuela, is founding member and director of IESL. A
mechanical engineer from the UCV in Venezuela he worked for Schlumberger Dowell in
Libya, UAE, Algeria, Norway and the UK in operations, technical and management
positions for 10 years. While at Schlumberger, he returned to University in Edinburgh to
get an M.Sc. in Petroleum Engineering from Heriot-Watt working on sand production and
associated completion problems. Spent two years in Italy where he was R & D and
technical services manager for Italog, a subsidiary of the Geoservices group. In 1993
returned to the UK to found IESL with Jeff Callander and implement joint ideas for
innovation and technologies that were shared since their time in the field. Have contributed
to build IESL with a number of patents and other IPR that today form the core portfolio of
IESL technologies. Also a director of Innovative Knowledge Ltd, he specialise in well completion, rehabilitation and
intervention particularly for sandstone reservoir. Juan lectures to a variety of commercial clients and MSc courses on
sand production and management strategies, and is favoured due to his ability to breakdown complex problems into
practical solutions. Currently the director for the USA subsidiary IES Incorporated, based in Houston.

5.1.3 Abraham Salazar – Senior Petroleum Engineer

Abraham joined IESL in 2005 having spent 10 years at Intevep, the R&D and technical
support arm of Petroleos de Venezuela S. A. A Mechanical Engineer from the
Universidad Simon Bolivar in Caracas, Venezuela and with Master degrees in
Mechanical Engineering and Reservoir and Well management from Robert Gordon
University in Aberdeen, Scotland. Abraham has extensive technical and field experience
in production engineering, artificial lift(particularly pumping) and sand production. At IESL
has is the Senior Petroleum Engineer looking at all aspects of well performance and
completion for conventional reservoirs and also in the area of heavy crude production.

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of Innovative Engineering Systems Limited (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2006

FINAL Well Operating Procedures Training for the Chesnut Field 20/3/07 10