High Rate Drill Stem Test (DST)

Deepwater Ghana
17th June 2009

2008 Results 1
Contents
• Key Points
• Background Information
- Location
- Timeline
- Sub-surface Objectives
- DST Objectives
• Summary of Planning
- DST String Design
- Technical Planning
- Rig related
- Logistics
- Operational Support
• Test Results
• Summary and Conclusion

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 2

 Key Points
• Tullow Ghana Ltd and it’s partners required the capability to perform a
high rate DST in a deep water environment in a very short time frame
• DSTs for 25,000 BOPD & 25 MMSCF/D are uncommon and very few
packages of equipment were in available at the time
• The downhole equipment required for the high rate DST was large bore ID
(3.5”)
• Large surface well test equipment packages were required to achieve the
flowrate objectives
• The DST was to be performed on an upgraded 2nd generation semi-
submersible with limited deck space
• The rig (Blackford Dolphin) performed the test after drilling a single well,
immediately after leaving the shipyard
• Significant cooling water packages were required due to the high flow rates
planned
• Deck management was critical to the success of the DST

• Management system integration was a key requirement to ensure the

desired high flow rates could be achieved safely
High Rate Drill Stem Test (DST) Deepwater Ghana Slide 3
Background: Location

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 4

 Background: Timeline
• June 2007: First deepwater field discovered offshore Ghana with well Mahogany-1 using
the Belford Dolphin
• August 2007: Appraisal well Hyedua-1 confirmed the major JUBILEE field accumulation
using the Belford Dolphin
• October 2007: Decision made to carry out a high rate DST on Hydeua-2 planned for spud
in Q3/4 2008 with the Blackford Dolphin
• Feb 2008: Awards made for DST tools and well test package
• June 2008: Appraisal well Mahogany-2 reached TD tested two zones using the Songa
Saturn with standard equipment
- Data analysed indicated highly permeable prolific formations
- Capable of producing at 25,000 BOPD and 1,000 SCF/bbl
- UM flowed at 4.5 BOPD
- LM flowed at 5.0 BOPD

• October 2008: Scheduled equipment load out

• at the time of the DST contract award
• January 2009: J-08 DST successfully performed

Mahogany-2 DST from the Songa Saturn

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 5

 Background: Sub-Surface Objectives

INSERT GEOLOGICAL COLUMN TO SHOW OBJECTIVES YOU REFER TO IN THE NEXT SLIDE

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 6

Background: DST objectives – field map

J-08 (H-2) M-2

J-09 (M-1)

J-10 (H-1)

Water Depth: 1326 m

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 7

 Background: DST objectives for J-08 (H-2)
• Appraise the Upper Mahogany sands North West of the NE-SW axis of discovery wells
formed by H1-M1-M2
- Evaluate the connected STOIIP in the UM sands.

• Establish the productivity of the UM sands.

- Test tendency for sand production at higher rates
- Equipment sized to achieve high flow rates (>20,000 bpd)

• Collect a range of bottom hole and surface samples for PVT analysis as follows:
- Uncontaminated bottom hole samples collected above bubble point
- Uncontaminated surface samples (without chemical injection in operation)
- An adequate volume of dead oil samples for commercial/assay purposes
- An adequate volume of separator PVT samples for PVT and Production chemistry studies

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 8

 Summary of Planning
• The planning of the DST was covered in five broad categories:

- DST String Design

- Technical Challenges
- Rig Related Challenges
- Logistics Challenges
- Operational support

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 9

DST String Design (1)
Baker SC-2 packer

Perforated Pup Joint

Ported Flow Sub

Auto Gun release with mechanical firing head

4-5/8” TCP guns

Dual TDF firing Systems

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 10

DST String Design (2)

Sample Carrier

Sample carrier

Gauge carrier

Tubing String Tester Valve

Snap latch (latch removed)

Seal Assembly

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DST String Design (3)

Tubing c/w relay stations

Gauge carrier

RA Marker
Circulating Valve

OMNI Circulating Valve

Drain Valve

SELECT Tester Valve

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 12

DST String Design (4)
Gauge carrier

Retainer Valve

Chemical Injection sub

Metrol Clamp On sub

Shear Joint

BRIT Latch Section

Upper BRIT Valve

Integral Slick Joint

Lower BRIT Valve

Fluted Hanger

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 13

DST String Design (5)

Surface Flowhead

Lubricator Valve

Chemical Injection Sub

Lubricator Valve

Fluted Hanger

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 14

 Rig Related Challenges
• Blackford Dolphin was in dry dock in Rotterdam under going a major refurbishment
prior to mobilisation to Ghana
- J-08 was the first well drilled with the BD post refurbishment
- J-08 DST was the first well test operation performed by the refurnished rig

• Due to the anticipated high flow rates there were issues regarding:
- Heat radiation / rig cooling
- Temperatures of up to 85°C at the base of the burner booms expected
- Rig pumps would not be capable of providing sufficient quantities of water to cool the rig and associated
equipment
- Specialised sea-chest pumps and surface booster pumps (with 100% redundancy) would pump water to a
dedicated deluge system delivering 3,500 gpm

- Air Supply
- To burn the hydrocarbons with minimal environmental impact,
- large quantities of air would be required (10 compressors)

- Noise radiation

• Deck loading and management (equipment layout)

• POB
- Average POB: 126 (maximum rig POB: 130)
- Total dedicated DST crew complement: 46
- SWT: 20, Compressor/Generator: 4, Subsea: 4, DST/TCP Services: 7
- Completion/WBCU: 3, gauges: 4, cooling: 4

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 15

 Deck Management: Equipment Layout

• Deck loading: 1.5 tonnes/m2

• Total boat movements from
Takoradi and Abidjan and return:
15
• Number of lifts on to boats from
both bases, lifts from boats to the
rig, inter deck rig lifts, lifts from
rig to boats and lifts from boats to
both bases: 326
• Sizes of equipment lifted ranging
from 1 to 25 ton
• Longest pieces of equipment 90
ft long
• Total weight lifted and placed on
decks 672 ton

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 16

 Deck Management: Equipment Layout – Port Aft

100 bbl surge

tanks

Hydro-cyclone Separator

Gauge tank

Steam
Exchanger

Multi Phase Flow

Meter

Transfer Pumps Choke manifold

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 17

Deck Management: Equipment Layout – Port Aft

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 18

Deck Management: Equipment Layout – Starboard Aft

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 19

 Logistics Challenges
• Service Providers were flat out to meet demand:
- Deadlines were extremely tight
- Oil prices were very high
- Commodities, including rigs, at record highs

• There was no established infrastructure in Ghana

- Tullow and service providers had to set up bases and also used established bases in nearby
countries (Cote D’Ivoire, Equatorial Guinea, Cameroon) with the usual logistical problems

• Due to the high flowrate objective large bore DST tools (non-standard) had to be
identified and sourced
• Size and weight of equipment required considerable planning & co-ordination
- Equipment sourced from diverse international locations

• Some equipment was new build

- Steam generator, hydro-cyclone, offshore lab/workshop, back up subsea
equipment, various crossovers and pipework

• Conducted onshore surface package rig up

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 20

Service providers: Point of Origin and Support Bases

Support base
Equipment Point of Origin

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 21

 Operational Support
• London based: Completion and Testing Manager and Engineer
• Accra based: DST Operational Engineer
• Offshore: DST Supervisors

Offshore Onshore

Well
Dolphin Dolphin Engineering
Rig OIM Rig Manager Manager Ghana
Deepwater

In-Country
Tullow Drilling Tullow Drilling Drilling
Supervisor Superintendent Manager

Tullow Senior DST Completions

Drilling Operational and Testing
Engineer Engineer Manager

DST
Supervisor Completion
& Testing
Engineer

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 22

 Test results: Highlights (1)
• October 2008: All surface well test, subsea and DST equipment arrived and cleared
customs in Ivory Coast. Equipment went through an onshore rig up and QA/QC
process
• December 2008: Equipment loaded out on 3 supply boats
• 6th Jan 2009: Well flowed during high rate test at approximately 16,700 stb/d on a
88/64" inch choke with a THP of 1,375 psig and a GOR at 1,291 scf/stb. This rate was
not limited by equipment.

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 23

 Test results: Highlights (2)
• Main Highlights:
- Zero LTI’s
- Head injury to Expro well test supervisor (restricted work case)
- No spills or discharges
- AFE 24.9 days (incl 25% NPT)
- Actual 26.2 days (21% NPT)
- NPT 5.5 days First Tullow Oil operated deep water well test

• Achieved all well test objectives

• World First: Metrol data successfully recovered remotely by secondary means (ADR)
• Surface well test equipment functioned correctly
• Issues & NPT Events:
- Downhole test tools (DST, subsea) functioned correctly (except Metrol & SELECT)
- Misfire of perforating guns required R/U of slickline to activate mechanical firing head

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 24

 Test results: Highlights (3)
• J-09 DST
- Learning from this test was subsequently applied to the next DST (of J-09) in May 2009 on the
Blackford Dolphin
- Record Breaking Deepwater Flow through a DST string via a test separator of ~22,700 bopd
- Frac pack lower completion installed
- Modular pumping package installed on the back of a Tullow managed PSV. Subsequently this
vessel was leased to Hess for a one off operation in EG
- Interface testing performed via 2 wells in the field with long term gauges installed

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 25

Summary & Conclusions
• It was a remarkable achievement to deliver the demanding objectives of the DST in
the timeframe
• All DST deliverables were met
• There were no accidents or incidents during the DST
• The DSTs were performed within AFE
• All company, drilling contractor and service personnel were fully engaged in delivering
success

High Rate Drill Stem Test (DST) Deepwater Ghana Slide 26

 Tullow Oil plc
3rd Floor, Building 11
Chiswick Park, 566 Chiswick High Road
London, W4 5YS
Tel: +44 20 8996 1000
Fax+44 20 8994 5332

Investor Relations Contact

Chris Perry: chris.perry@tullowoil.com
High Rate Drill Stem Test (DST) Deepwater Ghana Slide 27