Techincal Proposal - Drilling - Fluid - Program - EL JEFE 01

PetroMejor (PM).
Propietario: Global Operations Manager Documento #: TEM-GL-HAL-DF-102-L1

Aprobado por: Dennis Lynch Revisin: A Date: 26-Feb-14

1

PETROMEJOR COMPANY

DRILLING FLUID PROPOSAL

El Jefe-01

Latin America
Prepared by: Danny Castellanos
Baroid Field Supervisor
Signature:
Date:
18/07/2014
Prepared by : Luis Duran
Baroid Field Supervisor
Signature:
Date:
18/07/2014
Reviewed by:
Operations Manager
Signature:
Date:
18/07/2014
Approved by:
Drilling Engineer PetroMejor
Signature:
Date:
18/07/2014
Version No. 1 Version Date: 18/07/2014
PetroMejor (PM).


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Technical Proposal
El Jefe-01

Viking Reference: 252520, 226139, 180716, 177473, 97497, 92987, 297790.

Table of Contents

1. ............................................................................................................. PROJECT ABSTRACT 4
1.1. ....................................................................................................................... Proposal briefing 4
1.2. ....................................................................................................................... WELLPROFILE 5
1.3. ......................................................................................................... MECHANICAL STATUS 6
1.4. .................................................................................................................... CASING DESIGN 6
1.5. ................................................................................................... POTENTIAL WELL ISSUES 7
1.6. .................................................................................................................. FLUID PROGRAM 9
1.7. .................................................................................................... PROJECT SUPPORT TEAM 9
2. ............................................................................................................... FLUID PROPERTIES 10
2.1. .................................................................................................... Recommended Concentration 12
2.2. .................................................................................................................... Estimated volumes 13
3. ............................................................................... 16 SECTION INTERVAL DISCUSSION 14
3.1. ....................................................................................................................... Primary Products 15
3.2. .................................................................................................................... Potential Problems 15
3.3. .............................................................................................. Fluid maintenance and comments 16
3.4. ................................................................................................................... Mud quality control 16
3.5. .................................................................................................................... SCE Requirements 16
3.6. ..................................................................................................................... Recommendations 17
4. ........................................................................... 12 SECTION INTERVAL DISCUSSION 18
5. ............................................................................. 8 SECTION INTERVAL DISCUSSION 24
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6. ................................................................................................................ Terms and Conditions 29
7. ........................................................................................... PROPOSED WINDOW DENSITY 30
ANNEXES ...................................................................................................................................... 31
7.1. ......................................................................................................................... HYDRAULICS 31
7.2. .............................................. THREE DECISIONS FOR LOST CIRCULATION INCIDENTS 35
7.3. ..................................................................... LOST CIRCULATION PILLS FORMULATION 36
7.4. ............................................................................................... CAVINGS ANALYSIS CHART 37
7.5. ................................................................................................... PARTICLE DISTRIBUTION. 38
7.6. ........................................................................... STANDARD OPERATING PROCEDURES. 39

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1. PROJECT ABSTRACT
1.1. Proposal briefing

Enclosed is our recommended procedure for Drilling Fluid Services in the referenced
well. The information in this proposal includes well data, calculations and material
requirement.

This proposal is based on our experience in similar wells in the area and information
provided by PetroMejor.

Halliburton appreciates the opportunity to present this proposal for your consideration
and we look forward to being of service to you. Our Services for your well will be
coordinated through the Service Center listed below.

If you require any additional information or additional designs, please feel free to
contact myself or our field representatives listed below.

Prepared and Submitted by:
Danny Castellanos, Luis Duran
Technical Professional

OPERATIONS MANAGER: Lenin Tigrera
ACCOUNT REPRESENTATIVE: Daniel Barros
TECHNICAL MANAGER: Christian Bajuk
PHONE NUMBER: 593 - 23971700

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1.2. WELLPROFILE

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1.3. MECHANICAL STATUS

Hole diameter
Top MD
(ft)
End MD (ft) Bit Size (in) Length (ft)
Max. angle
16 0 5569 16 5569 20
12 5569 9307 12.25 3738 20
8 9307 11333 8.5 2026 10

1.4. CASING DESIGN

Description End MD (ft) CSG ID (in) CSG OD (in) Bit Size (in)
CSG 13 3/8 5569 12.347 13.375 16
CSG 9 5/8 9307 8.681 9.625 12.25
7 Liner 11333 6.276 7.000 8.5

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1.5. POTENTIAL WELL ISSUES

Note: hole cleaning and lost circulation cases ALLWAYS must be considered like a potential issue at
any well section. In appendix below you will find detailed information about it.

Depth
(ft)

Mud type

Exp.
Density
(ppg)

Exp.
Fracture
gradient

Potential issues

Baroid Solutions

0 / 5569

AQUAGEL
CALCIUM
NITRATE

8.6 /
10.7
Unknown
Hole cleaning.

Bombear
pldoras de alta
viscosidad

Bit balling / Clay
sticking / Gumbo

Running Casing
Problems

Pldora con
Tensioactivo

Aumentar
dilucin

Incrementar
densidad
Pump high viscosity
sweeps. Circulate to
ensure hole cleaning.

Pump sweep with high
concentration of AKTAFLO-
S. Increase surfactant
concentration in active
mud system.

Follow recommendations
of AFO Monitoring Services
related to running casing
speed, circulation stations,
higher pressure or tight
hole.

5569 /
9307

CLAYSEAL
9.6 /
11.8
Unkown
Seepage losses/
Severe lost circulation
cases

Hole cleaning

Hole instability

Increase bridging material
concentration LCM W/(20-
100 PPB). Add directly to
the active system LCM
material while drilling this
zone.

Pump high density sweeps
to improve hole cleaning.
Circulate periodically to
optimize annulus cleaning.

Increase mud density in
active system as required.
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Running Casing
Problems

STEEL SEAL, BAROTROL
additions.

hole.
9307
/11333
CLAYSEAL
9.6 /
10.0
Unknown

Seepage losses/
Severe lost circulation
cases

Hole instability

Hole cleaning

Oil/gas influx

Running liner
Problems

Increase concentration of
bridging material LCM
W/(20-100 PPB).

Increase sealant material
concentration: STEEL
SEAL. Increase mud
density in active system as
required

Circulate periodically in
order to ensure hole
cleaning. Pump high
density sweeps to improve
annulus cleaning.

Increase mud density in
active system as required.

hole.

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1.6. FLUID PROGRAM

1.7. PROJECT SUPPORT TEAM

Hole
diameter
Fluid Type
Density
(ppg)
Flow Rate (gpm)
BHT,
o
F
16 AQUAGEL 8.4 10.5 850
120
12 CLAYSEAL 9.6 11.5 700
200
8 CLAYSEAL 9.6 10.3 550
220
Title Name Cell Number Office Number Email address
Technical Professional Danny Castellanos +593994371732 3971700 Ext 2670 danny.castellanos@halliburton.com
Operations Leader Lenin Tigrera +593997745511 3971700 Ext 3344 lenin.tigrera@halliburton.com
Lead Field Rep. Ali Sotillo +584163184965 3971700 Ext 3342 ali.sotillo@halliburton.com
Lead Field Rep. Reinaldo Gomez +584249625690 3971700 Ext 3342 reinaldo.gomez@halliburton.com
Field Rep. Hector Salazar +584162869530 3971700 Ext 3342 hector.salazar@halliburton.com
Field Rep. Lenin Solorzano +593995364644 3971700 Ext 3342 lenin.solorzano@halliburton.com
Lab Technician Rodolfo Ponce +5731254482899 3971700 Ext 2911 rodolfomanuel.ponce@halliburton.com
Service Coordinator - Coca Diego Baldeon +593999045658 3971700 Ext 1652 diego.baldeon@halliburton.com
Business Development Daniel Barros +593994015849 3971700 Ext 2665 daniel.barros@halliburton.com
Technical Manager Christian Bajuk +593998272178 3971700 Ext 2653 christian.bajuk@halliburton.com
Country Manager Hector Cruz +593999909512 3971700 Ext 2651 hector.cruz@halliburton.com
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2. FLUID PROPERTIES

OBJECTIVES AND METHODS

Maintain a good hole cleaning during all sections.
No stuck pipe incidents.
No drilling or completion fluids spills that can cause environment damage.
To provide a fluid that minimize interactions between fluid and formations reducing problems such as
bit balling, hole instability, high torque, drag, washouts, etc.
To maintain enough stock of chemicals including contingence materials for covering any eventuality
during drilling.
To guaranties adequate conditions in order to perform cement jobs.
No lost time incidents related with drilling or completion fluids.
To promote HSE policies, especially PPE use.
To assure good communication in order to coordinate logistic.
To work as a team with solid control equipment, environmental management and with all companies
involved in the operation

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16 SECTION
Surface 5569 ft (MD).
AQUAGEL CALCIUM NITRATE MUD
Properties Units Min Max Properties Units Min Max
Density Ppg 8.6 10.7 3 / 6 rpm 6 / 8 14 / 19
Funnel Viscosity sec/qt 31 46 MBT ppb eq. N/C
Plastic Viscosity cP 8 12 pH 8.4 9.0
Yield Point lbf/100_ft
2
14 20 API Filtrate mL/30min N/C

12 SECTION
5569 ft - 9307 ft (MD)
EZ MUD DP CLAYSEAL
Density Ppg 9.6 11.8 3 / 6 rpm 6 / 7 17 / 19
Funnel Viscosity sec/qt 40 70 MBT ppb eq. 7.5 < 25.0
Plastic Viscosity cP 13 29 pH 8.5 9.1
Yield Point lbf/100_ft
2
18 33 API Filtrate mL/30min
< 8.0
< 5.5

8 SECTION
9307 ft 11333 ft (MD)
EZ MUD DP CLAYSEAL
Density Ppg 9.6 10.0 3 / 6 rpm 5 / 7 11 / 13
Funnel Viscosity sec/qt 46 51 MBT ppb eq. 2.0 < 7.5
Plastic Viscosity Cp 14 19 pH 8.5 9.4
Yield Point Lbf/100_ft
2
19 30 API Filtrate mL/30min
< 6.0
< 5.0

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LITHOLOGY PROGNOSIS

2.1. Recommended Concentration

Product
16"
Section
12-1/4"
Section
8-1/2"
Section
Conc.
Lb/BBl
Conc.
Lb/BBl
Conc.
Lb/BBl
AKTAFLO-S 0.50 1.00 0.50 1.00
AQUAGEL 2.00 4.00
ALDACIDE G 0.10 0.30 0.10 0.30
BARAZAN D PLUS 0.10 0.20 0.50 0.75 0.50 1.00
BAROFIBR FINO 0.20 0.40 0.30 1.00
BAROLUBE GOLD SEAL 3.00 4.00
BAROID 20.00 30.00 97.00 183.00
BAROTROL PLUS 0.50 1.00 2.00 3.00
CaCO3 - fine ( D50:10 mic) 5.00 10.00 50.00 70.00
CaCO3 - medium(D50:50 mic) 5.00 15.00 30.00 50.00
CARBONOX 0.50 0.50
Caustic Soda 0.05 0.20 0.30 0.40 0.30 0.50
CLAYSEAL PLUS 2.00 3.00 3.00 4.00 3.00 4.00
FILTER-CHEK 1.50 2.00 1.50 2.00
PAC L 0.50 1.50 0.75 1.50
PAC R 0.20 0.50 0.75 1.00
X-TEND 0.01 0.20
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2.2. Estimated volumes

5,569 5,569 9,307 9,307 11,333
5683 Ft 13 3/8 3738 Ft 9 5/8
5569 Ft 16 Pulg 3738 Ft 12 1/4 Pulg 2026 Ft 8 1/2 Pulg
500 500 500
842 12 1/3 ID 681 8.68
1385 16 Pulg 545 12 1/4 Pulg 142 8 1/2 Pulg
2134
8 1/2 Pulg.
2260
12 1/4 Pulg.
2134 Required volume, bbl 2999
9 5/8
CLAYSEAL Fluid system CLAYSEAL
13 3/8 LINER 7
2999 2260
810
Previous casing length, ft
Open hole length, ft
Previous casing volume, bbl
Interval 8 1/2 Interval 12 1/4
Surface volume, bbl
Total Volume, bbl:
Previous section volume, bbl
Interval 16
Dilution volume, bbl
Open hole volume, bbl
1114 374
16 Pulg.
AQUAGEL - CALCIUM
NITRATE
Hole size
Casing diameter
Depth
El Jefe 01
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3. 16 SECTION INTERVAL DISCUSSION

For the previous problems presented drilling on Sankofa PM-117 field this proposal include like solution the
implementation of the AQUAGEL Calcium Nittrate Fluid System to drill this interval.

The exelent response of the AQUAGEL Calcium Nittrate Fluid System reducing hidratation rate of the high
reative clays offer a exelent solution for running casing issues and foaming Gumbo.

For the firsts feet and previous the second BHA change, approximately to 500 ft depth or until be sure no more
fluid losses are showed, a short circuit system with AQUAGEL pre-hydrated.

For previous well experience, pills of 20 bls with 20 ppb to 40 ppb of LCM can be pumped every single drilled
from conductor to first BHA change in case of evidence of lost circulation. Like contingency can be prepared 160
bls of LCM with 60 ppb to 80 ppb of concentration ready to be pumped in case of severe loss of circulation.

AQUAGEL concentration will be diluted in order to reach programmed properties. AKTAFLO and SAPP to avoid
plugging of lines when Gumbo Clay is drilled will be added to the system.

Once directional BHA run in hole the AQUAGEL system will be changed for the AQUAGEL CALCIUM
NITRATE Drilling Fluid System to be used all the section long.

AQUAGEL (Bentonite) in a 10 15 ppb concentration will be mixed in reserve tanks in order to use it as viscous
pills, once directional BHA is working sweeping pills will be pumped every three stands. CALCIUM NITRATE
concentration will be diluted in order to reach programmed properties.

AQUAGEL CALCIUM NITRATE Drilling Fluid System helps to keep good rheological properties, to get an
adequate filter cake to stabilize wellbore and to minimize superficial loss circulation problems.

After 500 ft or until be sure no more fluid losses are showed, AQUAGEL CALCIUM NITRATE Drilling Fluid
System is characterized for initial low rheological values (YP: 3 - 5 [lb/100 ft
2
]), this minimizes flow line plugging
and bit balling problems and allows to reach good ROP.

Appropriate hole cleaning will be reached using a minimum recommended flow rate of 850 950 gpm and using
sweep pills (can be weighted and prepared with BAROLIFT) according to hole cleaning simulation provided for
DFG Plus Software.

AKTAFLO will be added constantly in order to minimize bit balling issues. AKTAFLO is a no-ionic surfactant
that reduces interfacial tension between water, solids and clay, in this way Gumbo problem will be minimized.
Dispersants like SAPP could be added for maintaining low rheological values and minimize flow line plugging.

It is important to clean flow line and possum belly during drilling time and during each connection, this minimizes
flow line plugging and clay accumulation. Add dispersants like CARBONOX to keep low rheological values in
the system 0.2 ppg, pump disperse pills with SAPP (2 4 ppb), to help to clean the system.

Before running 13 3/8 casing it is recommended to increase the mud weight to compensate the ECD and to
spot a higher lubricity and viscous pill with bridging material to cover Orteguaza Formation at bottom.

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3.1. Primary Products

3.2. Potential Problems

Lost Circulation: Total lost circulation problems at the beginning of the section can be reduced through a pill
containing: 15 ppb AQUAGEL, 15 ppb WALL NUT, 15 ppb KWIK SEAL, 60 ppb CaCO3 40-100/200. This pill
has to be pumped and left on bottom hole about 3 hours. Once drill string is on bottom hole again, drilling should be
begun with controlled parameters until to go deeper and to check if fracture has been sealed. Products and
concentrations can be changed depending on circumstances, refer to 7.2 LOST CIRCULATION PILLS
FORMULATION section.

Bit Balling: It is important to prevent this problem with HSI optimization and adequate hydraulic. In the case
of bit balling it should be treated using dispersed pill as following: 50% mud, 50% water, 10 ppb SAPP, 3-5%
volume of AKTAFLO, 15 ppb WALL NUT, trying to increase pill effectiveness, once the pill achieves bottom
increase RPM of the string and flow rate during the time pill pass through the bit. Recommended volume is
about 30 bbl. AKTAFLO - S concentration is determinate from accretion test performed with several
formations.

Hole Cleaning: Hole cleaning must be optimized pumping sweep pills every two stands or according DFG
simulation.

Product Function Description
AKTAFLO-S Surfactant Alquil fenol oxietilenado
AQUAGEL Viscosifier Montmorillonita sdic modified
BARAZAN D PLUS Viscosifier Biopolmer Xnthic
BAROID Densifier Agent Barium Sulfate
CARBONOX Dispersant Leonardite
CAUSTIC SODA Alkalinity source Sodium Hidroxide
BARO-TROL PLUS Shale Estabilizer Sulfonated Asfalt
Clayseal Plus Shale Inhibitor Exfoliated Poliamine
X-TEND II Extendedor de bentonita Copolmero de poliacrilato/poliacrilamida
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3.3. Fluid maintenance and comments

Bentonite must be premixed in fresh water in order to improve its efficiency, if necessary add ash soda
to mix water to precipitate hardness excess and thus optimize gel performance.

pH values must be maintained between 9.0 9.5 through Caustic soda or lime additions as required.

Maintain an adequate SCE performance in order to prevent excessive dilution rates.

Fluid Density must be as low as possible according to well behavior. In case a mud weight increase is
needed, it will be agreed with the customer representative; on location will have enough contingency
material available.

Prior to run Surface casing, it is recommended to circulate until ensuring hole cleaning and if needed,
pump high viscosity sweep in order to optimize annulus cleaning.

3.4. Mud quality control

During normal drilling operations one complete mud check should be run every 8 hours with a lagged sample
tested. This is a total of four complete checks made over a 24-hour period. Timing for mud checks and cost
cut-off should be worked out with the drilling foreman. Unusual circumstances and/or non-circulating periods
should dictate deviations from this schedule.

All rheological properties (i.e. 6-speed readings and gel strengths, including 30-minute gels) should be taken at
-speed readings from latest mud check on daily report.

3.5. SCE Requirements

Multiple, linear motion shale shakers are recommended in order to maximize the system solids removal
efficiency. Run all available solids control equipment to prevent solids build-up.

All shale shakers should be "screened up" with finer mesh screens whenever possible without the loss of
drilling fluid off the end of the shakers.

The shale shakers should be continuously monitored for the proper distribution of drilling fluid across the
screens to fully utilize the entire surface area of the screens. The drilling fluid should cover 2/3 to 3/4 of the
length of the screens. Damaged screens should be promptly changed.

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If near size particle blinding occurs, an attempt should be made to "screen-up to alleviate this problem. If
"screening-up" does not solve this situation, then coarser mesh screens must be installed until past this
formation.

Mud Conditioner or Mud Cleaner
It is recommended to use a mud cleaner to accomplish the maximum removal of drill solids. The screen should
be as fine as possible while utilizing the mud cleaner for this purpose. This will maximize the drill solids
removal efficiency while maintaining drilling fluid properties within the prescribed parameters.

3.6. Recommendations

Flow rate for 16 section about 900 - 1000 gpm
First 500 ft drilled or until have no more fluid losses to drill with controlled parameters < 500 gpm, to
minimize superficial fractures.
After finish to drill every stand reciprocate the pipe cleaning the hole for at least 12 minutes to ensure
the hole cleaning specially having lower flow rates.
Ensure good jet cellar operation.
After each drilled stand, ream it twice using maximum flow rate and RPM in order to smooth drilled
hole
Pump viscous, heavy or sweeping pills with BAROLIFT according DFG Software simulations.
Before wiper trip it is necessary to circulate viscous or sweeping pills with BAROLIFT during the
recommended period of time according to DFG Software or until shakers are clean.
Spot a heavy and viscous pill before casing run.
Use screens with mesh as fine as possible.
Before running casing increase mud weight to ECD.
It is important that all mud engineers, rig personnel, mud logging people and supervisor check pits
level and flow rate in case an influx or lost present.

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Halliburton Baroid recommends using CLAYSEAL system that it is design with the necessary requirements to
drill this section.

In addition to the problems related to shale is recommended for this interval, EZ-MUD DP borehole
stabilizing dry synthetic polymer contains high molecular weight partially hydrolyzed
polyacrylamide/polyacrylate (PHPA) copolymer

The use of EZ-MUD DP dry polymer assists and promotes the following:
Stabilize reactive clay and shale formations
Keep trench excavation open during the construction
Produce high viscosity solids-free slurry
Enhance rheological properties of a low-solids drilling mud
Enhance core recovery in continous wireline coring operations
Flocculate non-reactive solids in reserve pit at low concentrations
Reduce torque and drag.

In addition like advantages with the use of EZ-MUD DP are:
Can disperse easily with minimal shear
Efficient shale/clay stabilizer and viscosifier
Helps impart high degree of lubricity
Compatible with other drilling fluid additives when added in proper sequence
Non-fermenting
No petroleum distillates involved
Breaks down chemically with bleach (sodium hypochlorite)
NSF/ANSI Standard 60 Certified

Using CLAYSEAL allows to capsulate and to inhibit clay and shale which minimizes dilution, material use
and tight hole and reaming problems during trips. This system provides wellbore stability, inhibition for drilled
shale and good conditions during trips and casing runs.

Basically CLAYSEAL is a non dispersed system that combines capsulation and inhibition properties of EZ
MUD DP with stabilization and inhibition provided for CLAYSEAL. EZ MUD DP is highly effective stopping
clay minerals dispersion, hydration and swelling in this way it provides excellent shale stability. EZ MUD DP
combats superficial swelling of drilled clays directly.

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CLAYSEAL system has all the advantages of a system with low solids content. Drilled solids keep their
integrity due to capsulation and they are easily removed through primary solids control equipment. This low
solids content system provides higher ROP and minimizes mechanical parts wear.

It is necessary to add constantly EZ MUD DP and CLAYSEAL as shale inhibitor in order to maintain good
inhibition and encapsulation properties. At the beginning of the section EZ MUD DP concentration should not
exceed 0.2 ppb in order to avoid mud losses through shakers then concentration must be increased to
programmed concentration. This product will be used before Napo formation, in order to control Tiyuyacu and
Tena plastics and reactive clays.

Initial CLAYSEAL concentration will be recommended concentration and it will be maintained while drilling.

BAROTROL, BAROFIBRE & STEEL SEAL were included in the mud formulation to provide sealing
capacity to the system to help in hole stability. The hole stability problems observed in the drilling of shale
show the importance of maintaining enough quantity of sealing agents which along with the mud density will
provide hole stability by sealing shale micro-fractures.
Additionally use Sized Calcium Carbonate (40-100, 200) as complement of BAROTROL, BAROFIBRE &
STEEL SEAL. Calcium Carbonate particles will bridge in shale micro fractures or sandstone porous helping
in Wellbore stability, reducing fluid loss and creating an good quality filter cake that minimize stuck pipe
possibilities.

These additions also will help in minimizing differential sticking possibilities in addition with BAROLUBE
G.S. additions, while helping in hole stability.

Before running 9 5/8 casing it is recommended to increase the mud weight to compensate the ECD and to
spot 60 bls of a higher lubricity and viscous pill with bridging material to cover the bottom.

Sweeps Program

Pump Viscous and/or Heavy Pills with mud from the active system with minimum 40 bbl and monitoring
cuttings return. BAROLIFT can be used as a complement in these pills. DFG Hole Cleaning Simulations will
be run daily to determine pills schedule, evaluate any change in mud properties or drilling parameters.

It is very important to monitor constantly shape, size and quantity of cavings in conjunction with Mud
Logging. Right interpretation of these parameters could help us to take decisions about mud weight, sealing
and bridging agents concentrations.

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Producto Funcin Descripcin
AKTAFLO-S Surfactant Alquil fenol oxietilenated
BARAZAN D PLUS Viscosificifier Xanthic Biopolmer
ALDACEDE G Biocide Glutaraldehide
Barofibre Fine LCM Additive Celuloce fibre
BARO-LUBE GOLD
SEAL
Liquid lubricant Mixture of lubricants and surfactants
BAROID Densifier Agent Barium Sulfate
CALCIUM CARBONATE Densifier Agent Calcium Carbonate
BARO-TROL PLUS Shale Estabilizer Sulfonated Asfalt
CLAYSEAL PLUS Shale Inhibitor Exfoliated Poliamine
FILTER-CHEK Filtration Control Agent Modified starch
PAC L Filtration Control Agent Polianionic Celulose
PAC R Filtration Control Agent / Viscosifier Polianionic Celulose

Lost circulation: It is necessary to use bridging material as CaCO
3
and to pump plugging pills if it is necessary,
refer to 7.2 LOST CIRCULATION section.
Hole instability: this problem is reduced using an adequate density program and sealing agents as STEEL SEAL as
required.
Stuck pipe: this problem could be reduced using bridging, sealing and lubricants agents.
Inhibition: CLAYSEAL PLUS addition will provide enough inhibition for reactive clays and shale. EZ MUD DP
(PHPA) and CLAYSEAL PLUS concentration was optimized by Linear Swell Meter Test.
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Tight hole: this issue is solved using an adequate mud density, besides to improve filtration rate control adding at
the same time sealing and bridging materials for this formation.
Formation damage: this mud system provides a unique environment which has been designed to protect reservoir.
Used products have been proved as reservoir friendly.
Hole Cleaning: It is important to monitor returns and to run DFG simulation in order to optimize sweep pills
frequency.


If cutting sticking on shakers is observed Clayseal Plus concentrations will be increased.

If hole cleaning needs to be optimized, by increasing low rpm readings and Tau zero, small amounts
of Barazan D Plus should be added to the active system.

In case of formation instability symptoms are detected, add Barotrol Plus directly into active system in
order to seal micro fractures.

Optimize SCE performance in order to keep LGS concentration and fluid properties according mud
program during the interval.

At the beginning of section it is recommended to use on shale shakers 84 mesh screens since drilling
fluid is cold and may have a high and unusual viscosity, once mud temperature increase, programmed
shaker screens will be placed to minimize solid incorporation.

It will be used DFG drill ahead softwareand AFO Monitoring recomendations to monitor hole
cleaning and predicting rheology and density profiles in function of bottom hole temperature.

If formation instability is detected while drilling this interval, it is recommended to add sealant
material (Barotrol Plus). Minimum concentration to be used will be 2 ppb of asphalt and sized
calcium carbonate, if these concentrations need to be increased it will be decided depending on hole
conditions in agreement with costumer representative.

Fluid displacement

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Activities to be performed prior to fluid displacement:

1) A complete equipment cleaning (pits, shakers, SCE, flow line, trip tank, suction lines and mixing devices)
must be performed.

2) Perform a safety meeting prior to mud discharge/preparation. Assign roles.

3) Build Clauseal fluid system according to mud program.

4) Build spacers I, II and III.

Procedures during fluid displacement:

1) RIH until to the top of cement. Pump spacers I,II and III.

2) Perform suction pit change and starting pumping Clayseal system, rotate drill string while displacement is
performed, keeping pump rate constant. Suction pit level will be maintained constant transferring in first place
OBM from auxiliary pits. Fluid displaced will be transferred to storage tanks, when diesel returns will be
transferred by ditch to slug pit.

3) In case of having a mud logging unit, this will control together with driller total pump strokes, informing to
mud engineer and derrick man in order to be prepared to Clayseal mud returns.

4) Once Clayseal fluid returns to surface will be enabled all mud active circuit until normalize in/out mud
weight.



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formation.


Before tripping, running casing, etc. we recommend that the shaker screens be cleaned with a high- pressure
water spray after circulation has stopped. This will greatly increase screen life and prevent dried drilling fluid
and cuttings from blinding the screens when drilling resumes.


Minimum flow rate 850 [gpm].
After each drilled stand, ream twice using maximum flow rate and RPM in order to smoothen drilled hole.
Pump viscous weighted sweep pills with BAROLIFT every 300 ft or according DFG Software
simulations.
Previous to trip it is necessary to circulate a weighted pill with BAROLIFT during recommend time
according to DFG Software simulation.
Perform wiper trips maximum every 30 drilling hours.
After each trip in clays zone before reaching the bottom of the hole (30 ft previous bottom) pump an anti-
bit balling pill in order to clean bit before drilling. This pill can be prepared using 15 ppb WALL NUT.
Increase the mud weight to compensate the ECD.
To spot a higher lubricity and heavy weighted pill reaching casing point and if extra loggings run is
programmed.

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For these section Clayseal will be used, it is design for reservoir zones due to its low solids content and
friendly formation products characteristics. Furthermore its bridging design allows a minimum invasion.

Right Sizing CALCIUM CARBONATE with adequate hardness and good quantity will ensure minimum
invasion and cake deposition on external well face.

The selective calcium carbonate micron size will be used to bridge the porous reservoir formation. It is
important to maintain the concentration of a defined range of bridging solids; as a result, continuous additions
will be made while drilling.

Filtrate value must be below 6 cc, other way to control filtrate value will be constant addition of Calcium
Carbonate from different screen size (200 and 40-100). A Cleaning Sweeps program will be prepared previous
beginning of this interval.

Clayseal rheology will guarantee hole cleaning and reduce washout occurrence. System helps to maintain low
filtrate values, too.

Clayseal should be prepared as a new system, free of drilled solids. At the same time invasion volumes are
reduced due to high rheological values that reduce filtrate flow tendency.

The DRIL-N system recommended to drill this interval is formulated with BARAZAN, FILTERCHECK,
Calcium Carbonate, Caustic Soda, ALDACIDE-G is used as preservative. This mud system provides an
environment which has been designed to improve reservoir protection. PAC could be added if mud conditions
are required.

Additionally, filtration rate and seal quality are controlled through right CARBONATE distribution inside
system (Carbonate particles are deteriorated on shakers and bit nozzles).
It is recommendable to add Carbonates mesh 40-100 and 200 periodically (every hour) in order to have a great
quality bridging.

CLAYSEAL PLUS is used to treat shale; it provides shale stabilization and inhibition.
Before running 4 1/2 liner it is recommended to increase the mud weight to compensate the ECD and to spot
60 bls of a higher lubricity and viscous pill with bridging material to cover the bottom.

Sweeps Program

Pump tandem pills of heavy or sweeping pills with mud from the active system and monitoring cuttings return.
DFG Hole Cleaning Simulations will be run daily to determine pills schedule, evaluate any change in mud
properties or drilling parameters.

It is very important to monitor constantly shape, size and quantity of caving in conjunction with Mud Logging.
Right interpretation of these parameters could help us to take decisions about mud weight and bridging agents
concentrations.

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Producto Funcin Descripcin
ALDACEDE G Biocide Glutaraldehide
BARAZAN D PLUS Viscosificifier Xanthic Biopolmer
Barofibre Fine LCM Additive Celuloce fibre
CALCIUM CARBONATE Densifier Agent Calcium Carbonate
CLAYSEAL PLUS Shale Inhibitor Exfoliated Poliamine
FILTER-CHEK Filtration Control Agent Modified starch
PAC L Filtration Control Agent Polianionic Celulose
PAC R Filtration Control Agent / Viscosifier Polianionic Celulose


Lost circulation: It is necessary to use bridging material as CaCO
3
and to pump plugging pills if it is necessary.
Hole instability: this problem is reduced using an adequate density program and sealing agents as STEEL SEAL as
required.
Stuck pipe: this problem could be reduced using bridging, sealing and lubricants agents.
Inhibition: CLAYSEAL PLUS addition will provide enough inhibition for reactive clays and shale. EZ MUD DP
(PHPA) and CLAYSEAL PLUS concentration was optimized by Linear Swell Meter Test.
Tight hole: this issue is solved using an adequate mud density, besides to improve filtration rate control adding at
the same time sealing and bridging materials for this formation.
Formation damage: this mud system provides a unique environment which has been designed to protect reservoir.
Used products have been proved as reservoir friendly.
Hole cleaning: It is important to monitor returns and to run DFG simulation in order to optimize sweep pills
frequency.

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If cutting sticking on shakers is observed Clayseal Plus concentrations will be increased.

If hole cleaning needs to be optimized, by increasing low rpm readings and Tau zero, small amounts
of Barazan D Plus should be added to the active system.

In case of formation instability symptoms are detected, add Barotrol Plus directly into active system in
order to seal micro fractures.

Optimize SCE performance in order to keep LGS concentration and fluid properties according mud
program during the interval.

At the beginning of section it is recommended to use on shale shakers 84 mesh screens since drilling
fluid is cold and may have a high and unusual viscosity, once mud temperature increase, programmed
shaker screens will be placed to minimize solid incorporation.

It will be used DFG drill ahead softwareand AFO Monitoring recomendations to monitor hole
cleaning and predicting rheology and density profiles in function of bottom hole temperature.

If formation instability is detected while drilling this interval, it is recommended to add sealant
material (Barotrol Plus). Minimum concentration to be used will be 2 ppb of asphalt and sized
calcium carbonate, if these concentrations need to be increased it will be decided depending on hole
conditions in agreement with costumer representative.

Fluid displacement

Activities to be performed prior to fluid displacement:

1) A complete equipment cleaning (pits, shakers, SCE, flow line, trip tank, suction lines and mixing devices)
must be performed.

2) Perform a safety meeting prior to mud discharge/preparation. Assign roles.

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3) Build Clauseal fluid system according to mud program.

4) Build spacers I, II and III.

Procedures during fluid displacement:

1) RIH until to the top of cement. Pump spacers I,II and III.

2) Perform suction pit change and starting pumping Clayseal system, rotate drill string while displacement is
performed, keeping pump rate constant. Suction pit level will be maintained constant transferring in first place
OBM from auxiliary pits. Fluid displaced will be transferred to storage tanks, when diesel returns will be
transferred by ditch to slug pit.

3) In case of having a mud logging unit, this will control together with driller total pump strokes, informing to
mud engineer and derrick man in order to be prepared to Clayseal mud returns.

4) Once Clayseal fluid returns to surface will be enabled all mud active circuit until normalize in/out mud
weight.





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formation.


Before tripping, running casing, etc. we recommend that the shaker screens be cleaned with a high- pressure
water spray after circulation has stopped. This will greatly increase screen life and prevent dried drilling fluid
and cuttings from blinding the screens when drilling resumes.


Flow rate 550 [gpm].
After each drilled stand to ream twice using maximum flow rate and RPM in order to smoothen drilled
hole.
To pump weighted pills with Calcium Carbonate according DFG Software simulations, and hole
conditions.
Previous to trip it is necessary to circulate a weighted pill with BAROLIFT during recommend time
according to DFG Software.
Make wiper trips maximum every 30 hours of drilling.
Perform cleaning stations even inside the casing according DFG simulations for cuttings beds
accumulations if it is necessary.

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6. Terms and Conditions

The cost in this analysis is good for the materials and/or services outlined within. In order to meet your
needs under this proposal with a high quality of service and responsive timing, Halliburton will be allocating
limited resources and committing valuable equipment and materials to your area of operations. Accordingly,
the discounts reflected in this proposal are available only for materials and services awarded on a first-call
basis. Alternate pricing may apply in the event that Halliburton is awarded work on any basis other than as a
first-call provider.

The unit prices stated in the proposal are based on our current published prices. The projected equipment,
personnel, and material needs are only estimates based on information about the work presently available to
us. At the time the work is actually performed, conditions then existing may require an increase or decrease
in the equipment, personnel, and/or material needs. Charges will be based upon unit prices in effect at the
time the work is performed and the amount of equipment, personnel, and/or material actually utilized in the
work. Taxes, if any, are not included. Applicable taxes, if any, will be added to the actual invoice.
It is understood and agreed between the parties that with the exception of the subject discounts, all services
performed and equipment and materials sold are provided subject to Halliburtons General Terms and
Conditions contained in our current price list, (which include LIMITATION OF LIABILITY and WARRANTY
provisions), and pursuant to the applicable Halliburton Work Order Contract (whether or not executed by
you), unless a Master Service and/or Sales Contract applicable to the services, equipment, or materials
supplied exists between your company and Halliburton, in which case the negotiated Master Contract shall
govern the relationship between the parties. A copy of the latest version of our General Terms and
Conditions is available from your Halliburton representative or at:

http://www.halliburton.com/hes/general_terms_conditions.pdf

For your convenient review, and we would appreciate receiving any questions you may have about them.
Should your company be interested in negotiating a Master Contract with Halliburton, our Law Department
would be pleased to work with you to finalize a mutually agreeable contract? In this connection, it is also
understood and agreed that Customer will continue to execute Halliburton usual field work orders and/or
tickets customarily required by Halliburton in connection with the furnishing of said services, equipment, and
materials.
Any terms and conditions contained in purchase orders or other documents issued by the customer shall be
of no effect except to confirm the type and quantity of services, equipment, and materials to be supplied to
the customer.

If customer does not have an approved open account with Halliburton or a mutually executed written
contract with Halliburton, which dictates payment terms different than those set forth in this clause, all sums
due are payable in cash at the time of performance of services or delivery of equipment, products, or
materials. If customer has an approved open account, invoices are payable on the twentieth day after date
of invoice.
Customer agrees to pay interest on any unpaid balance from the date payable until paid at the highest lawful
contract rate applicable, but never to exceed 18% per annum. In the event Halliburton employs an attorney
for collection of any account, customer agrees to pay attorney fees of 20% of the unpaid account, plus all
collection and court costs.

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7. PROPOSED WINDOW DENSITY

8.6
8.8
9.2
9.4
9.6
9.8
10.0
10.1
10.2
10.3
10.5
10.6
10.7
10.9
9.8
10.1
10.3
10.5
10.8
11.0
11.6
11.8
9.6
9.7
9.9
10.0
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
5500
6000
6500
7000
7500
8000
8500
9000
9500
10000
10500
11000
11500
8 8.2 8.4 8.6 8.8 9 9.2 9.4 9.6 9.8 10 10.2 10.4 10.6 10.8 11 11.2 11.4 11.6 11.8 12
FLUID DENSITY PROPOSED
EL JEFE 01
CSG 13 3/8" @ 5569'
CSG 9 5/8" @ 9307'MD
LNR 7" @ 11333' MD
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ANNEXES
7.1. HYDRAULICS

HOLE CLEANING SIMULATION 16 SECTION

This section drilled with 850 gpm show cuttings loads with 3.51% along all the section like average. And
cuttings loads for intervals over 5.11%. Baroid recommend having cuttings loads values lower than 3%. Under
this circumstances is recommend:
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Increase the flow rate over 1100 gpm while drilling.
After every stand drilled to make two runs with the at lease the same rpm used drilling the stand and
for a period of time no lower of 14 min. this will help to reduce the cuttings load along the annular
section.
To pump sweep pills by train with 30 bls before every tripping out or whe the cuttings loads on the
annular space show ranges over 3.0% of cuttings accumulation and circulate the time recommended
for the AFO Monitoring team.

HOLE CLEANING SIMULATION 12.25 SECTION

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cuttings loads for intervals lower 2.99%. Baroid recommend having cuttings loads values lower than 3%. Good
hole cleaning parameters. Under this circumstances is recommended:
To keep the flow rate over 700 gpm while drilling.
To pump sweep pills by train with 30 bls before every tripping out and circulate the time
recommended for the AFO Monitoring team.

HOLE CLEANING SIMULATION 8.5 SECTION
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cuttings loads for intervals lower 1.14%. Baroid recommend having cuttings loads values lower than 3%. Good
hole cleaning parameters. Under this circumstances is recommended:
To keep the flow rate over 700 gpm while drilling.
To pump sweep pills by train with 30 bls before every tripping out and circulate the time
recommended for the AFO Monitoring team.

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7.2. THREE DECISIONS FOR LOST CIRCULATION
INCIDENTS

Severity % losses, (bbl/h) Formaciones tpicas
A. Severe 60 90% (> 50 bbl/h) Fracts
B. Parcial 10 60% (10 50 bbl/h) Sandstone, fracts, conglomerate
C. Seepage < 10% (< 10 bbl/h) Sandstone, conglomerate, depleted zone

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7.3. LOST CIRCULATION PILLS FORMULATION

AVAILABLES MATERIALS ON LOCATION FOR LOST CIRCUALTION
FINE MEDIUM COARSE
CaCO3-325 (110 lb/sx) CaCO3-200 (110 lb/sx) BARACARB 150 (110 lb/sx)
BAROFIBRE-F (25 lb/sx) BAROFIBRE-C (40 lb/sx)
BAROFIBRE-C / KWIK SEAL /
WALLNUT
(40 lb/sx)
STEEL SEAL-50 (50 lb/sx) STEEL SEAL-100 (50 lb/sx) CaCO3-40/100 (110 lb/sx)

TABLE 1.1 (hourly addition)
BARACARB 40 - 100 5 sx/hr
BAROFIBRE C 2 sx/hr
WALLNUT 1 sx/hr

TABLE 3.2 (100 Bbl @ 100 lpb)
Carbonato 200 20 lpb
Carbonato 40-100 20 lpb
BAROFIBRE C 20 lpb
WALNUT 20 lpb
Carbonato 325 20 lpb
TABLE 1.2 (50 Bbl @ 45 lpb)
CaCO3 40-100 25 lpb
BAROFIBRE C 10 lpb
WALLNUT 10 lpb
CaCO3 40-100 30 lpb
BAROFIBRE C 10 lpb
WALLNUT 10 lpb
CaCO3 40-100 30 lpb
BAROFIBRE C 15 lpb
WALNUT 15 lpb
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7.4. CAVINGS ANALYSIS CHART

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7.5. PARTICLE DISTRIBUTION

According to formation requirements, the optimal Particle distribution recommended for this job are calculated
with a D50 of 24.4 um for the interest zone.. This values are reached with a mixture of 40% of BARACARB
5, 40% of BARACARB 50 and 20% of STEEL SEAL 50

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7.6. STANDARD OPERATING PROCEDURES.
According to field requirements, and the most common issues observed Baroid has a Standard operating
procedures, these are included and attached in the field proposal.
Anhydrite/Gypsum Drilling
Barite Plugs / Barite Sag
Bit Balling
Carbon Dioxide (CO2)
Cement, Drilling
Depleted Sands/Differential Sticking
DRIL-N Systems
Filter Cake/Filtration Control
Fluid Displacements
Fractured Limestone, Drilling
Gas Hydrates
Hole Cleaning
Hole Stability
Horizontal Drilling
High Temperature Wells
Hydrogen Sulfide (H2S)
Lost Circulation
Mechanical Sticking
Permafrost, Drilling
Quality Assurance
Safety
Salt Drilling
Shale Drilling
Sliding
Slim Hole Drilling
Solids Control
Stuck Pipe
Torque and Drag

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Propietario: Global Operations Manager Documento #: TEM-GL-HAL-DF-102-L1

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