N E W S L E T T E R. Vol ume 22 No. 3 May, 2006 LESSONS LEARNED FROM INTEGRATED ANALYSIS OF GOM DRILLING PERFORMANCE

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1 N E W S L E T T E R Society of Petroleum Engineers Vol ume 22 No. 3 May, 2006 Tuesday May 9, 2006 Lessons Learned from Integrated Analysis of GOM Drilling Performance R. A. Meize Anadarko Petroleum Corporation Hotel Intercontinental New Orleans LaSalle Ballroom 444 St. Charles Ave. 11:00 a.m. - Social 11:30 - Speaker Register at If any problems, contact Clay Harrelson ( , clay.harrelson@shell.com). $25.00 in advance $30.00 at door Seat ing is lim ited, please re serve now. MEETING SPONSOR: BAKER HUGHES Society of Petroleum Engineers Distinguished Lecturer Lecture Season LESSONS LEARNED FROM INTEGRATED ANALYSIS OF GOM DRILLING PERFORMANCE R. A. Meize Anadarko Petroleum Corporation Off shore drill ing con tin ues to be ex - tremely cost in ten sive where $50-mil - lion wells are not un com mon. This pa per dis - cusses les sons learned and po - ten tial ben e fits from a com pre - hen sive anal y sis of Gulf of Mex ico his tor i cal data for drill ing per for mance benchmarking and con tin u ous cost re duc tion. The Best Com pos ite Time (BCT) in tro - duced in re cent pa pers (Refs 1-3) was ap plied along with learn ing-curve anal - y sis, and other in ves ti ga tive tools to ex - am ine drill ing prob lems, and to chal lenge well plan ning and con struc - tion prac tices. Drill ing op er a tions were bro ken down into dis creet ac tiv i ties and the best times were ag gre gated to form the BCT. The Best Com pos ite Cost (BCC), the dol lars equiv a lent, was also cal cu lated and used for cost benchmarking. Correlative analyses of the wells, i.e. cross-plots of drill ing events along side mud log data, wire line logs, and geo - logic data, were used to elu ci date ma jor well prob lems and ab nor mal flat times that caused de vi a tions from the BCT. Cor re la tive anal y sis also helped ex plain why some wells were drilled rel a tively trou ble-free. From a more de tailed trou ble-time anal - y sis of the wells, ma jor drill ing prob - lems were found to be well-pres sure re lated (lost cir cu la tion, well con trol, stuck pipe), sup port ing in creased em - pha sis on im proved plan ning and quan - ti fi ca tion of ECD, deep water geopressures, and drill ing mar gins. The BCT/BCC meth od ol ogy is ac tu ally one el e ment of the Ten-Step Pro cess dis - cussed exhaustively in Refs. 1 and 2. Ex pe ri ences from two on shore ar eas so far have been very en cour ag ing in drill - ing cost re duc tion. Ap pli ca tions to more com pli cated off - shore GOM wellbores, cost com po - nents, and nar row geo-pres sure mar gins are the fo cus of this pa per. con tin ued, page 7 In This Is sue: Of fi cers/chair man 3 View From The Chair 4 Mem ber ship Re port 7 Fo cus Group 7 EDITOR: Jim Rike jim@rike.com

2 SPE Delta -2- May, 2006

3 May, SPE Delta Sec tion SPE Officers and Board of Directors Chairperson Rakesh Kumar Shell rakesh.kumar@shell.com Past-Chairperson Program Chairperson 1st vice chair Membership Chairperson 2nd vice chair Dean McPhearson Baker Hughes dean.mcphearson@bakerhughes.com Clay Harrelson Shell clay.harrelson@shell.com Josh Etkind Shell josh.etkind@shell.com Secretary Henry Shurlds Onesource Professional Search henry@onesourcepros.com Treasurer Melanie Perry ChevronTexaco melanieperry@chevron.com Career Guidance, One Voice & Emerging Leaders Program Stephen Dessauer MMS stephen.dessauer@mms.gov Focus Chairperson Alan Holley Halliburton alan.holley@halliburton.com Continuing Education Chairperson Steve Moore Chevron smoo@chevrontexaco.com Scholarship Chairperson Ken Trocquet Shell ken.trocquet@shell.com Production & Facilities Study Group Chairperson Randy Hasling W.H. Linder randy.hasling@shell.com Director 05/06 Henry Welch Energy Partners, LTD hwelch@eplweb.com. Director 05/06 Ken Trocquet Shell ken.trocquet@shell.com Director 05/06 Phil Moses Dominion Philip_A_Moses@dom.com Director 05/06 Richard Hutto Halliburton richard.hutto@halliburton.com Director - /Student Chapter Liaison 06/07 Fred Thurber LSU fthurbe@lsu.edu Director 06/07 Ben Bienvenu Murphy ben_bienvenu@murphyoilcorp.com Director 06/07 Jan Catalano ORX jan@orx.com Director 06/07 Angie Gobert MMS angie.gobert@mms.gov Webmaster Richard Hannan Dominion richard_l_hannan@dom.com Corporate Liaison Tony Richards Century tony.richards@centuryx.com Social Chairperson Lori Davis Rig Chem lori@rigchem.com Sr. Advisor and Newsletter Newsletter Advertising open Golf Tournament Committee at Large Jim Rike Rike Service, Inc jim@rike.com Rick Fowler, Bob Freeman, Jim Miller, Jim Hubbard, Bob Resensteel

SPE Delta Sec tion - 4 - May, 2006 MESSAGE FROM THE CHAIR Dear Mem bers, May will con clude this year s (2005-2006) cal en dar of ac tiv i ties a short session for the Delta Sec tion SPE ow ing to

4 SPE Delta Sec tion May, 2006 MESSAGE FROM THE CHAIR Dear Mem bers, May will con clude this year s ( ) cal en dar of ac tiv i ties a short session for the Delta Sec tion SPE ow ing to dis rup tions from Hur ri canes. Deep water Sym po sium in Au gust will mark the start of next year with gen eral meet ings and other fo cus group meet - ings start ing in September. Be fore the sum mer hi a tus, don t miss the events in di cated in this news let ter. Ev ery speaker has been care fully cho - sen and I hope they con tinue to prove use ful and fun to you. At tend the gen eral meet ing not ing that new mem bers of the Board will be nom - i nated / pro posed for elec tion. We are on deadline for nom i nat ing any per son in ter ested in vol un teer ing for SPE (in - clud ing Di rec tor po si tion in the Board of Di rec tors) Con tact ei ther or any of the board if you are interested. Make a spe cial note re gard ing our 60th An ni ver sary Cel e bra tion in September. Look for a fu ture com mu ni ca tion in this regard. Lastly, Do Not For get to reg is ter for the Deep water Sym po sium through the website. Rakesh Kumar Chairperson September 24-27, 2006 Annual Technical Conference & Exhibition San Antonio, TX ERRATA The April news let ter mis tak enly ac - knowl edged Smith In ter na tional as Meet ing Spon sor.

May, 2006-5 - SPE Delta Sec tion SPE Emerging Leaders Program Update Wel come Back So cial held on March 30, 2006 On Thurs day, March 30, the Emerg ing Lead ers Pro gram kicked off the year with a

It was a com plete suc - cess with 26 peo ple at tend ing.

5 May, SPE Delta Sec tion SPE Emerging Leaders Program Update Wel come Back So cial held on March 30, 2006 On Thurs day, March 30, the Emerg ing Lead ers Pro gram kicked off the year with a Wel come Back So cial at the Re pub lic. This was a great op por tu nity to get back in touch with col leagues, meet new friends, and, of course, share hur ri cane sto ries! It was a com plete suc - cess with 26 peo ple at tend ing. It was also a great chance for pe tro leum pro - fes sion als that are new to the area to learn about the So ci ety of Pe tro leum En gi neers and the Emerg ing Lead ers Pro gram. We have an ex cit ing year ahead of us, and this so cial was the per - fect way to start! Corps of En gi neers Met with the Emerg ing Lead ers Pro gram on April 26, 2006 Mr. Rodney Greenup, Jr., a Se nior Pro - ject Man ager with the Corps of En gi - neers met with the Emerg ing Lead ers pro gram on April 26 to dis cuss Re pair and Com ple tion of Hur ri cane Pro tec tion Pro jects in South east Lou i si - ana. Mr. Greenup pro vided an over - view of the Corps of En gi neers on-go ing hur ri cane pro tec tion work in South east Lou i si ana and pre sented a brief over view of the fu ture by de scrib - ing the Cat e gory 5 fea si bil ity study that is sched uled to be com pleted in June This was our most suc cess ful lunch event yet with over 50 peo ple in attendance! Upcoming Events Pe tro leum Ba sics 101 Se ries Wednes day at the Square a se ries of tech ni cal lec tures adapted for en gi neers with less than 10 years of ex pe ri ence June 21st from 5:00-7:30 PM. ELP will be host ing a hos pi tal ity tent for the Chee Weez Con cert. More in for ma tion to come. DOW NHOLE D E VICES LLC T he N ew Generation J ohn Ray Broussard P r es ident 100 B urgess Drive B roussard, LA P hone Fax M obile:

SPE Delta Sec tion - 6 - May, 2006 MEETING (continued from page 1) Bob Meize has over 25 years drill ing and pro duc tion ex pe ri ence in off - shore and on shore op er a tions.

He joined Anadarko in 1994 af ter a ca reer with Arco and is cur rently Anadarko s Di vi sion Drill ing Man - ager for World wide Deep water Op er - a tions.

6 SPE Delta Sec tion May, 2006 MEETING (continued from page 1) Bob Meize has over 25 years drill ing and pro duc tion ex pe ri ence in off - shore and on shore op er a tions. He has worked ar eas in West Texas, Rocky Moun tain, Mid-Con ti nent and Gulf Coast re gions. He joined Anadarko in 1994 af ter a ca reer with Arco and is cur rently Anadarko s Di vi sion Drill ing Man - ager for World wide Deep water Op er - a tions. He has been in volved with de vel op ments in subsalt, deep water and shelf drill ing while at Anadarko. He has co-authored nu mer ous tech ni - cal pa pers on these sub jects along with pre sen ta tions to var i ous in dus try groups. Bob holds a BS in Pe tro leum En gi - neer ing from New Mex ico Tech and a Mas ters in Busi ness Ad min is tra tion from Oklahoma City Uni ver sity.

7 May, SPE Delta Sec tion NEW MEMBERS : Membership Report Ms. Elizabeth C Cunningham VP of Marketing Mamal Mr. Fritz J Pellegrin Account Representative Halliburton Mr. Christopher A Pohlig Process Engineer Dow Chemical Co. Mr. John A Vozzo Jr. Senior Staff Engineer Dominion E&P Inc. TRANSFERRED MEMBERS Mr. Steven P Miller Operations Support Supervisor Chevron Corp. Transfer From: Gulf Coast Mr. Tim J Brookover Sr Staff Reservoir Engineer Dominion E&P Inc. Transfer From: Gulf Coast Mr. Timothy P Beattie Engineering Manager Woodside Energy Ltd. Mr. Wesley R Moore Mr. L. Ernest Ndong Nguema Sr. Subsea Completion Engineer Technical Authority Well Integri Shell Intl. E&P Co. Shell UK Ltd. Transfer From: Gulf Coast Transfer From: Gulf Coast Transfer To: Aberdeen Petroleum Mr. Jeffrey M McCalla Sr Subsea Engineer Murphy Oil Corp. Transfer To: Gulf Coast Mr. Stephen G Burns Vice President W&T Offshore Inc. Transfer To: Gulf Coast Mr. Yong B Tu Petroleum Engineer Chevron Corp. Transfer To: Gulf Coast Ms. Dannette M Lockhart Reservoir Engineer Minerals Management Service Mr. Mariano R Sanchez Project Manager PT. Dowell Anadrill Schlumberger Transfer To: Gulf Coast Transfer To: Java Indonesia Mr. Joseph Babineaux Jr. Senior Petroleum Engineer Texaco Inc. Transfer To: Unknown SPE Delta Technical Focus Group Tuesday, May 23, :30 13:00 Holiday Inn Downtown 330 Loyola New Orleans, LA RSVP: Alan Holley, , Alan.Holley@Halliburton.com Gulf of Mexico Production Optimization and Stranded Asset Revitalization using Electrical Submersible Pumping Systems Speaker: Mark Ohl Baker Hughes Centrilift Abstract: Elec tri cal sub mers ible pump ing (ESP) sys tems are a proven, cost ef fec tive ar ti fi cial lift op tion in the Gulf of Mex - ico, pro vid ing op er a tors tan gi ble eco nomic ben e fits. This pre sen ta tion will briefly cover in no va tive ESP so lu tions and ad - vanced tech nol ogy to re vi tal ize stranded as sets in Gulf of Mex ico shelf and deep water prop er ties. Bi og ra phy: Mark Ohl is Sta tion Man ager for Baker Hughes Centrilift Gulf of Mex ico Dis trict. He has worked in the ar ti fi - cial lift in dus try for 23 years and in the past 26 years has worked in ev ery ma jor pro duc ing re gion of the lower 48 states. Ohl has been as so ci ated with the Gulf Coast and Gulf of Mex ico for the last 16 years.

8 SPE Delta Sec tion May, 2006 Society of Petroleum Engineers P. O. Box New Orleans, LA 70152

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