Cubility - Facilities and offices

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1 MudCube by Cubility

2 Cubility - Facilities and offices Head office and sales offices Cubility s head office is located in Sandnes, Norway A major part of the oil and gas activity in the North Sea is operated from the Sandnes/Stavanger region Cubility has immediate access to potential customers and technology partners as all larger international players have offices in this region Cubility has office space capacity to expand into a full project execution organisation In 2009 Cubility opened sales offices in Houston, USA and Aberdeen, UK for international presence There are currently 17 employees in Sandnes, one in Aberdeen and one in Houston Test centre Cubility has built a full scale test centre next to the head office in Sandnes The test centre is a state-of-the-art centre which can simulate offshore conditions in a full loop It consists of two cabins; one with a traditional shaker and one with a MudCube system in addition to tanks, pipes, heaters, pumps, a control room and accessories In addition to testing the MudCube the test centre is also used as Cubility s full scale development facility where new technologies and solutions are tested The test centre is fully owned by Cubility Head office Test centre Test centre - MudCube Control room Test centre Traditional shaker The world s leader in smart treatment technology.

3 MudCube Operational details Technical highlights MudCube MudCube The MudCube is a modern, remotely operated, low maintenance system for effective and safe treatment of drilling fluids returning from the well Totally integrated & enclosed system for solids control and mud treatment Vacuum through filter belt Variable rotation speed Screens have API 13C designations Micro-vibrators used as needed to improve conductance Air knife used as required to clean the screens Any screen failure monitored Secondary filter detects a screen failure

4 MudCube Operational details MudCube MudCube

5 MudCube The Filterbelt Technical highlights - Filterbelt The Filterbelt Rotating non-tensioned filterbelt Stainless Steel Full API RP 13C Mesh Ranges are available Variable rotating speed Micro-vibrators used as needed to improve conductance Air knife used to clean the filterbelt Any filterbelt failure monitored Use velcro to connect the filterbelt Replacement time : 2 minutes no additional working area needed Less Inventory weight than conventional shaker screens No need for external Screen Washer self-cleaning

6 MudCube Technical details Main data for the MudCube Weight: 950 kg Length: 2778 mm Width: 1930 mm Height: 1288 mm Inlet flange: 8 Outlet flange: 8 Air outlet flange: 14 Main data for the vacuum pump Weight: 420 kg Length: 1200 mm Width: 600 mm Height: 1455 mm Inlet flange: 5 Outlet flange: 5 Vacuum relief valve inlet flange: 5 Service MudCube Service Exhauster Design capacity 500 GPM / 1900 LPM Design capacity 710 CFM / 1200 m³/hr Air requirement PSI Design temp 250 F / 120 C Power requirement 1,85+0,37kW Power requirement 25 HP / 18,5 kw Design temp 250 F / 120 C Body & impeller material Non sparking aluminium alloy Material SS 316L Shaft material SS 316 L

7 The objectives - MudCube Raise Health & Safety Standards Minimise vibration Reduce noise levels Contain vapours & mist Reduce crane lifts Minimise environmental impact Minimise drilling waste Minimise CO 2 discharge Low OOC measurments Optimise drilling fluid performance Maintain LGS at low concentrations without high rates of dilution Reduce circulating temperatures Reduce costs Dilution rates / penetration rates Mud lost with cuttings Waste handling and treatment HVAC system Reduced overall weight Reduce the need for cuttings dryers

8 Commercial breakthrough with Maersk Drilling Contract details Maersk Giant Signed contract with Maersk Drilling Norge to install 3 MudCubes onboard the drilling rig Maersk Giant Installation of the MudCubes was completed during summer 2012 according to plan and the rig was ready for operations in the start of 3Q 2012 The rig is for the 3 first wells after yardstay operated by Talisman Energy Norge AS and DONG E&P Norge AS. Equipment and installation partly funded by operators Maersk Drilling, Dong E&P and Talisman Energy did not conduct any test of the MudCube, but relied on the detailed testing done by Statoil Equipment delivery time of less than 3 months Installation time of 1 month including new header box, ducting, electrical / automation work (Hirtshals, Denmark) Letter of Intent (27.03) FAT / Equipment delivery Installation Commisioning Spud date (05.10) Operation April May June July August September October November

9 Operations on Maersk Giant Operational history Drilling program since instalment of MudCube: Well 16/10-5 Isbjørn Operator: Talisman Energy Licence: 568 (Talisman 40%, Petoro 20%, Det norske 20%, Skagen44 10%, Edison International 10%) 2 Oct Nov 2012 (37 days of drilling) Total 3,033m drilled Total drilling waste generated: 438 MT Dong Maersk Giant Maersk Giant is under contract for a drilling program for several different operators on the Norwegian Continental Shelf until 4Q Talisman Det norske Repsol Centrica Det norske Well 3/7-8 S Trym Sør Operator: Dong Energy Licence: 147 (Dong E&P 50%, Bayerngas 50%) 4 Dec 2012 > On-going (Est days of drilling) Total 4,188m drilled Total drilling waste generated: 892 MT 16/10-5 3/7-8 S Next planned well: Well 3/7-9 Musling Operator: Dong Energy Licence: 289 (Dong E&P 40%, Bayerngas 30%, Talisman 30%) Expected reservoir depth: 3,610 m 3/7-9

10 MudCube Significant HSE benefits Comments A MudCube system has a range of HSE benefits that are hard to measure in dollars No doubt that the system saves the operator significant costs related to workers health and use of safety equipment Reduce risk of accidents Health benefits: Overview of HSE benefits Strong reduction of oil mist/vapor and chemical exposure to personnel (confirmed from Maersk operations) Elimination of vibration: No need for structural reinforcement because of weight and structural low frequency vibration (confirmed from Maersk operations) Noise reduced to 75 dba, well bellow recommended NORSOK standard of 83 dba (for 12 hours working day) (confirmed from Maersk operations) Environmental benefits: Less mud discharge offshore Less waste liability Compelling HSE benefits both related to safety, working conditions and environment

11 MudCube Remote operation and automatisation Automatisation The MudCube can be controlled and operated remotely due to camera, sensors and control system Real-time monitoring Drillers cabin Company rep Cube-lounge cabin ( control room ) Remote controlled operations Cameras installed inside the MudCube, allowing for visual monitoring process without moving away from control room Operator panel connected via Ethernet to PLC for visualizing and controlling / monitoring of the process MudCube allows for real-time monitoring and remote operation

12 Feedback from Maersk Giant My mud-pumps are much better off now using the MudCubes as there are less particles in the mud Derrickman We did not change screens (filter belts) except for finer filter belts when required when using normal pretensioned shaker screens we often replace and repair the screens (which also lead to the mud pump wear and the built up in the suction strainer housing). No conventional shaker would have handled the sticky clay we currently see in the 17 ½ section Shaker hand (normally working on Maersk Reacher) I went to get a coffee and brought it back to the MudCube lounge because this is the nicest place to be Roughneck Senior Toolpusher Using a conventional shaker, I have to add premix to the mud all the time. Using the MudCubes, the mud-weight are very consistent and almost no premix has to be added Derrickman That revolution statement on your t- shirt That might just be the truth! At the shaker area the most significant change was the working environment. The area was more or less without fumes and the noise level had decrease considerably. The working area is cleaner due to less removal and cleaning of shaker screens. Senior Toolpusher Do you make these cubes portable? Cause I want to bring them everywhere!! Driller Mudengineer Positive feedback from drilling personnel working with MudCubes

13 Feedback from operator and rig owner

14 Feedback from operator and rig owner

15

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