Newpark

Dr. Luminita Ionescu Vasii

NANOTECHNOLOGY,

POSSIBLE SOLUTIONS

FOR DRILLING FLUIDS

2008 ALBERTA NANOTECH SHOWCASE

Newpark Drilling Fluids, Canada

R&D Manager

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NEWPARK RESOURCES INC.

Head Office Houston, TX

Newpark Drilling Fluids

Newpark Mats &

Integrated Solutions

Environmental

Services

Excalibar Minerals

Satellite Offices

Rio Dejaneiro

Rome

Calgary

Denver Lafayette

OK City

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NEWPARK RESOURCES

THIRD QUARTER 2008/2007

• Total revenues:$211.6 million/$153.8 million

• Income from continuing operations:$11.7 million/$7.6 million

• Net income: $10.4 million/$7.4 million

The Fluids Systems and Engineering Segment

• Generated revenue: $189.0 million/ $130.0 million• Strong growth in both the North American and

Mediterranean regions. Brazil also contributed to the revenue growth.

- North American (U.S. and Canadian) marketsincreased 43% over the third quarter of 2007

- Mediterranean region increased 27%

- Brazil generated a $4.7 million increase

• Operating margin: 13.5%/11.9%

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DRILLING FLUIDS

Definition: Any of a number of liquids and

gaseous fluids and mixtures of fluids and solids

(as solid suspensions, mixtures and emulsions

of liquids, gases and solids) used in operations

to drill boreholes into the earth.

Synonymous with "drilling mud" in general usage,

although some prefer to reserve the term "drilling

fluid" for more sophisticated and well-defined

"muds."

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VERTICAL DRILLING

A pump circulates drilling mud down the drill pipe, out of the bit and up the hole

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HORIZONTAL DRILLING

A SUBSET OF “DIRECTIONAL

DRILLING”

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CLASSIFICATION OF

DRILLING FLUIDS

Classifications of drilling fluids has been

attempted in many ways.

Each category has a variety of subcategories that overlap each other considerably.

Based only on the fluid composition, by singling out the component that defines their function and performance, the drilling fluids (“muds”) can be classified in: • water-base (WBM),• non aqueous, or oil base (OBM); this also

includes synthetic oils (SBM) • gaseous (pneumatic)

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FUNCTIONS OF DRILLING FLUIDS

• Remove cuttings from well

• Suspend and release cuttings

• Control formation pressures

• Seal permeable formations

• Maintain wellbore stability

• Minimizing formation damage

• Cool, lubricate and support the bit and drilling assembly

• Transmit hydraulic energy to tools and bit

• Ensure adequate formation evaluation

• Control corrosion (in acceptable level)

• Minimize impact on environment

• Facilitate cementing and completion

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SOME ISSUES ASSOCIATED

WITH WBM & OBMWBM� Slow rate of penetration (high viscosity, bit balling)

� Differential pressure sticking (thick filter cake)

� High torque, drag, fill and stuck pipe (shale hydration and borehole instability)

� Mud instability at temperatures above 250F

� Permeability damage in shale sands

� Control corrosion, etc.

OBM

• Kick detection may be impeded as a result of gas

solubility in base fluid

• Well control due to compressibility and/or thermal

expansion of base fluid

• Possible productivity damage in dry-gas reservoirs

• Cementing failures caused by mud contamination

• Environmental considerations, etc.

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NEWPARK DRILLING

FLUIDS LABORATORIES IN

NORTH AMERICA

� Operations

� Analytical Services (Houston)

� R&D

- Development of high performance

drilling fluids while avoiding harm to the

environment

- Enhance proven technology

- Seek real-world solutions to specific

operational challenges

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ACHIEVMENTS, R&D

• Proprietary components provide unequaled performance: DeepDrill Inhibitor, NewEase 203, NewEase HT, LST-Md, HiPerm, New100, New 100N, NewEdge, FlexThin HTZ, FlexFirm

• Versatility of formulation for specific applications: FlexDrill Drilling Fluid System

• DeepDrill Drilling Fluid System

• Proprietary OBMs

• Downhole Simulation Cell

Newpark Drilling Fluids has introduced an effective group of proprietary products and fluid systems incorporating original new components designed to advance the science of drilling demanding wells

under harsh conditions.

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NEWPARK DRILLING FLUIDS

APPROACH

- Developing totally new approaches in

mud chemistry

Our approach is two-fold:

- Achieving new synergies of performance

by combining existing technologies into a

single package

and

Newpark fluid systems rank among the

industry’s most innovative.

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ONSHORE AND OFFSHORE

DRILLING

Land rigOffshore rig

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NANOTECHNOLOGY

SOLUTIONS FOR DRILLING

• Designing nanofluids for the increasingly

demanding conditions of high temperature

and pressure for deep drilling and extend the

reach of horizontal wells

• Enhanced stability against sedimentation

• Wettability alteration, shale stabilization

• Lubrication, reduction of the friction coefficient

• Drag reduction

• Corrosion control

• Gas sensing

• Measurement while drilling (MWD) tools

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THANK YOU