March 17, 2004 Technical Dinner Meeting

PeneDRILLâ - An Alternative to Conventional Perforating & Stimulation Techniques
 ¤ Dwayne West, Penetrators Canada Inc.

Biography:

 Dwayne West is the Business Development Manager with Penetrators Canada Inc.

 Penetrators Canada Inc. was incorporated in 1990 and is based in Red Deer.  The primary goal of the company has always been to provide alternative completion and stimulation technology to the oil industry.  Through a great deal of research and development and two previous tool concepts, the PeneDRILL Tool was commercially introduced to the market in 1998.  Today it is the primary service provided by Penetrators Canada Inc.  We run three units, all based in Red Deer, as well as an engineering/design staff, and a machining staff that manufactures approximately 90% of the PeneDRILL Tools.

 Dwayne West joined Penetrators Canada Inc. in early 1991 in an operations capacity.  Operations included running and servicing tools as well as being an integral part of tool development.  In late 1995 Dwayne joined the marketing staff on a part time basis which became full time with the inception of the PeneDRILL Tool.

 Abstract:

 Most of Western Canada’s oil, gas, injection and disposal formations have experienced some level of damage, either during the drilling phase or the production phase.  Initiating and maintaining effective communication between the wellbore and the formation can be difficult and producers continually search for solutions.  Normally the conventional completion and workover methods that have been in use for many years prove satisfactory for the producer to produce from or inject into target formations.  However, when these conventional techniques do not allow producers to effectively exploit their assets, alternative technologies are needed.  The PeneDRILL Radial Drilling Tool is an excellent alternative.

 The PeneDRILL Tool can be used as a completion or workover system that provides superior wellbore-to-formation communication over conventional perforating techniques.  The PeneDRILL drills multiple tunnels, laterally from an existing wellbore without the need for a turn radius outside the casing.  It creates 26mm holes in the casing, and 19mm diameter tunnels that extend 2 meters into the formation.

 This presentation will briefly describe how the PeneDRILL Tool operates, where it may be applicable, what its advantages are, as well as reviewing a few case studies.