COILED TUBING

Underbalanced CoiIed=Tubing-Drilled Horizontal Well in the North Sea

Philip Wodka, SPE, Henrlk Tirsgaard, SPE, Carsten J. Adamsen, Anders P. Damgaard, SPE, Mcersk Olie & Gas A/S SPE, and f Summary

M@rsk Olie & Gas A/S (Mamsk Oil) has drilled a 3,309-ft-long nearhorizontal drainhole with coiled tubing to a total measured depth (MD) of 1I,000 ft in the Danish sector of the North Sea. The well was completed in May 1994 as a 3 Yz-in.openhole producer in the Germ field chalk reservoir. Part of the well was drilled at underbaIanced conditions, and oil production rates of up to 1,100 STB/D were reached during drilling. Conventional well-test equipment was used for handling returns, A nearby process facilities platform supplied lift gas and received the produced hydrocarbons during the drilling phase. Worth noting are the penetration of several chert layers, the fairly long reach, and the application ofgeosteering. Indications were that the well productivity was significantly improved compared with that of a conventionally drilled well, but problems were experienced with borehole slability in a fractured region.
Introduction

metry. The coiled-tubing drilling was conducted from a conventional jackup drilling rig to facilitate a simple rigup (e.g., large deck space and a long riser). The objectives were to prove the technical feasibility of underbalanced coiled-tubing drilling, to evaluate the completion efficiency achieved with underbalanced drilling, and to test the long-term production performance of an openhole completion in a relatively soft chalk formation. The third step was sidetracking from an existing horizontal well through 4Y1-in. production tubing and 7-in. casing. We performed the window milling with a coiled-tubing-drilling assembly and then drilled a 980-ft-long horizontal reservoir section. A jackup rig was also used as support for this operation, which was successfully executed in the Kraka field. This paper describes the planning and execution of the Germ Well N-49 drilling operation.
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Ma-s.k Oil produces = 180,000 STB/D of oil from soft chalk reservoirs in the Danish sector of the North Sea. The largest producing fields have reached a stage where the majority of the development activities concentrate on infill drilling and implementation of secondary recovery by means of water injection. Since 1989, development activities have been concentrated almost exclusively on horizontal wells, with more than 100 wells drilled in five fields. Most of these wells are completed with a 7-in, cemented liner and perforated in multiple intervals, with each interval straddled by 4Yz-in,tubing for stimulation and production management purposes. 1,2The straddling is achieved by running a perforate/stimtrlate/isolate (PSI) assembly; to date, more than 900 of these assemblies have been run, As part of the continuing efforts to produce the reservoirs cost-effectively and increase ultimate recovery, the emerging technology of coiled-tubing drilling is seen as one possible methcd of achieving lowcost well se-entries (e.g., for sidetracking and well extensions). The attractiveness of this technique is known to depend on long-term productionperformance, inchrding borehole stability, and on its capability to decrease costs (e.g., by performing the drilling operation from existing wellhead platforms). On the relatively smalt wellhead platforms in the Danish sector, limited deck space necessitating placement of equipment on two bridge-connected wellhead platforms and limited cranelifting capacity arc the main problems in this respxt. No field-proven method had been developed for sidetracking from a horizontal well with a coiled-tubing-drilling assembly. Therefore, surface tests were initiated onshore in a coiled-tubing test loop during Aug. 1993. The objective was to test the technical feasibility of performing si&tracks and well extensions from existing horizontal, 4%-in. PSI completions with 3.688-in. restrictions. Several methods were tested, and a successful horizontal throughtubing sidetrack was achieved in the second attempt, Further testing confirmed that the mechanical aspects of a coiled-tubing sidetrack operation out of both 7- and 9%8-in.horizontal casing and well extensions could be handled with the present technology. The second step was coiled-tubing drilling of a 3,309 -ft-long, near-horizontal reservoir section at underbalanced conditions inWell N-49 in the Germ field. To maximize the chance of success, the operation was performed in a new well to achieve a simple well geoCopynght 1996 3cxIelv 01 Petmfeum Engheers Original SPE manuscript reastied Ior review Feb. 28.1995 Revised rnanusctipl reeeived Feb. 21,1 SS6. Paper peerapprcn.ed Feb. 21,1 S96 Paper (SPE 29359} first pmsant- at lhe 1995 SPE/lAtX Drilling Conference held in Amsterdam, Feb 284Aa1ch 2.

We decided to conduct the first coiled-tubing-drilling operation in a new development well, which would ensure a simple well geometry with no requirement for milling through casing or tubing. The selected well, Germ Well N-49, was planned as a conventionally drilled, multiple hydraulically fractured, horizontal oil producer with 4Yz-in. production tubing. The standard completion would incorporate a subsurface safety valve, a surface readout downhole pressure gauge, and two side-pocket mandrels for gas lift. By replacing the cased off multiple fractured reservoir section with a coiled-tubing drilled openhole section, we could obtain information on drilling performance as well as long-term productivity and producibility in a fairly well-defined reservoir environment. The Germ field is in the western part of the Danish Continental Shelf (Fig. 1). The structure was formed by a combination of salt movement and faulting. 3 It covers 3,200 acres at the oi~water contact and is cut by a major fault to form two distinct blocks (Fig. 2). The reservoir comprises Lower Tertiary (Danian) chalk overlying soft Upper Cretaceous (Maastrichtian) chalk. Significant porosity (25% to 45%) and permeability (0.1 to 5 md) variations are observed between different depositional subunits. To optimize well productivity, Well N-49 was positioned in a 20to 40-ft-thick zone consisting of Reservoir Subunit Ml,2 and the upper part of Reservoir Subunit M 1.3 (Fig. 3), The minimum reservoir pressure in the target area [2,000 psia at 6.800 ti total vertical depth (TVD) subsea] was significantly less than hydrostatic (3,050 psia) owing to depletion (F!g. 3). Because the trial would also evaluate the effect of underbalanced drilling on completion efficiency, gas liti had to be introduced as part of the drilling setup. To ensure a safe ops-ation and to provide gas lift, we deemed it necessary to drill the reservoir section through a production tubing into which lift gas could be injected through side-pocket mandrels. The nearby process platform would supply lift gas and receive the produced hydrocarbon returns. An additional benefit of selecting Germ Well N-49 was that plans called for a drilling rig to stay on the Gornt F platform for an extended penod to drill new development wells. This provided au option for a quick workover should the longer-term production performance prove dkappointing.
Well Positioning

Positioning and steering of conventionally drilled horizontal wells in the Danish chalk reservoirs are usually based on biostratigraphic and hydrocarbon show evaluation of cuttings, supplemented with May 1996=JPT

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Fig. lLocation of Danish oil and gas flelets. logging-while-drilling (LWD) information where highly accurate placement relative to fluid contacts is necessary.4 We expected biostra[igraphic interpretation to be difficult in Well N-49. Owing to tbe limited bit types available for 3Yi-in. hole, we planned to use polycrystalline-diamond-compact (PDC) bits, and previous experience with larger PDC bits was that the tirre-grained cuttings made biostratigraphic interpretation difficult, Further unknowns were the amount of cuttings transported to surface and the quality of the sampling during underbalanced drilling. We decided to drill the uppermost, mainly Danian chalk part of the reservoir overbalanced until biostratigraphy showed that tbe well had encountered the high-porosity Maastrichtian target reservoir zone. This would ensure accurate well placement and yield experience with the behavior of coiled-tubing-drilling assemblies before going underbalanced. Within the target reservoir zone, we planned to drill the well underbalanced with geometric steering along a tangent section, simply following the dip of the structure. Detailed optimization, or compensation for variations in the structure below seismic resolution, was not expected to be possible. The distal part of the well was positioned in an area of limited well control, and therefore the uncertainty on the dip of the structure would increase as the well progressed. At the same time, indications were that the target zone was thinning. Before drilling of Well N-49, two nearby wells were analyzed biostratigmphically, which made it possible to relate biozones to reservoir units. If high-resolution biostratigraphy could be used during underbalanced dril Iing, it would thus not only be possible to compensate for variations in the dip of the structure and adjust the trajectory but also to optimize the paition of the well continuously with respect to the best porosity zones of the reservoir.

field depth structure msp, top chelk.

Selection

The well trajectory design was based primarily on the steering abilities of the coiled-tubing-drilling assembly, which comprise drill bit, downhole motor, measurement-whiledrilling (MWD) tool, orienting tool, drilling connector, and dimple connector. Two possible steering strategies were possible owing to the use of an orienting tool: the helical (corkscrew) or sinusoidal (snaking) well design. A helical well design requires more frequent cycling of the orientation tool, which for the selected contractor turns 300/cycle. The sinusoidal well design requires a full 180 cycle whenever a change in direction has to be made. but it can be used in very thin oil rims because the wellbore moves predominantly in the horizontal plane. We chose a helical well design because it seemed most suitable for the type of orienting tool supplied by the contractor. A right rum was incorporated in the well trajectory to stay away from areas depleted by existing production wells (Fig. 2). Because of the requirements for long reach and acceptable circulation rates for hole-cleaning purposes, we selected a 2-in. coiled tubing, The coil was tapered, with 7,320 ft of 0.156-in. wall thickness and 7,280 ft of O.134-in. wall thickness. The material yield strength was 80,000 psi. We planned to use PDC bits owing to the limited bit types available for 3 %-in. hole. As it later turned out, bit performance proved to be crucial. Dowrtbole Equipment. Drilling-Fluid System. Seawater treated to injection-water specifications at the process platform was used as a base for drilli ng fluid for availability, handling, and safety reasons. Because we wanted a closed fluids system to be able to assess fluid gains and losses for the first drilling trial, tbe drilling fluid was recirculated and treated with the finest screens and the centrifuge system available on the rig. In case of a gas-lift shutdown. most of the fluid lost to the formation

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would be the fluid returning from the bit. This fluid would, in any case, be contaminated with ~ortnation particles and tines. llterefor~, we did not consider it worthwhile to treat the fluid returns to injection-water specifications or to use new injection water continuously, even if it was available from the process platform. A potential always exists for creating emulsions between seawater and crude oil. The high annular rate combhted with fine drill solids could have a tendency to stabtlize an emulsion further, Emulsion-formation testing was therefore conducted to establish any compatibility problems between the Germ oil and the seawater drilling fluid. The conclusion was that a demulsifier would not be required on a continuous basis because of fast separation, but that it might occasionally be necessary to inject a demulsifier upstream of the choke manifold, depending on the actual shear conditions. Evaluation of hydrate-formation characteristics and flowing temperatures indicated that a minimum fluid temperature of approximately 100F at the fluid-pump outlet was sutllcient to prevent hydrate formation with seawater as drilling fluid. We avoided startup problems by circulating heated seawater into the wellbore. The use of seawater for drilling and circulation was not expected to result in the formation of significant amounts of scale. We found that gas fiftwas required to driffWell N49 at un&rbalanced conditions with the selected drilling fluid given the relatively low expxted reservoir pressure (as low as 2,000 psia at 6,800 ft TVD subsea).
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was selected on the basis of Mzrsk Oils experience from sand cleanout operations on production platforms and drilling rigs. However, the nature of the returns during an openhole drilling operation could not be predicted accurately. Therefore, we designed the fluidhandling system (Fig. 4) to handle the returned fluid at any time, including when exporting the hydrocarbons to the processing platform (e.g., during a platform shutdown) was not possible. We planned to collect cuttings for analysis from a filter package, with the intention to route the flow through the filters only when sampling was required. Otherwise, we would bypass the filters and route the fluid returns directly to a sand separator through a choke manifold. Gas, oil, and water separation would take place in a three-phase well-test separator. The gas and oil could be exported to the process platform through a single line. Alternatively, the oil could be routed to storage tanks and the gas to flare booms (e.g., if controlling the separation process was difticult or if the pressure was too low for export). The stored oil could then be pumped to the processing platform. Produced water was routed to the rig mud pits by means of the rig fluidhandling equipment. as mentioned in the previous section. As a contingency, all fluid returns could he routed to bypass the fluid-handling system and go dkectly to the flare booms with diesel-assisted burners.
Safety

outside the coiled-tubing-control cabht and incorporated controls for all the Christmas tree hydraulic valves, the subsurface safety valves, and the gas-lift valve. The panel could be activated either by various high pilots (pressure sensors) placed in the test lines, by a shutdown signal from the Germ prcxess platform, or manually. Additional shutdown buttons were located in the well-test area and at the entrance to the accommodation. The lower coiled-tubing blowout preventer (BOP) shear/blind rams were connected to and operated from the rigs own BOP-control system. This enabled operation from the remote stations, one of which was located inside the accommodation. During the entire project execution, all safety procedures were followed and no safety-related incidents occurred.
Drilling Operations Summary

Well N-49 was spudded on April 13, 1994, from the drilling rig Mm-sk Endeavor. The well was drilled conventionally to 7,666 ft

From an operational point of view, coiled-tubing drilling was not considered to be an entirely new process. When breaking the drilling operation down, experience had been established within the organization on the following operations. 1. Coiled-tubing operations with downhole moto~ and well-test facilities in a dirty environment (e.g.. milling jobs and sand cleanout). 2. Coiled-tubing operations in wells flowing to the production platform (e.g., production logging). 3. Flowing wells to rig separation facilities with coiled tubing in the well and diverting the hydrocarbons to the production platform (e.g., well cleanup operations). However, performing an openhole drilling operation was new. Therefore, we conducted a general hazard and operability (HAZOP) study of coiled-tubing-drilling operations with participation from the contractors and coiled-tubinglwell-testing personnel. The study covered the coiled+rbing surface setup and the related downhole equipment, while the well-test surface setup had previously been covered in a separate HAZOP study. The conclusion was that coiled-tubing drilling could be conducted safely. Surface setup drawings were prepared to honor rig escape routes for both the well-test area and around the coiled-tubing equipment placed on the cantilever deck. The well-control panel was placed 410

(all depths are MD)i.e., approximately 20 ft above the top of the reservoir to prevent hole problems because of lost circulation in the severely depleted reservoir. After a 95/8-in.casing was set and cemented, the shoe track was drilled out and an 83/~-in.hole drilled down to 7,691 ft: top reservoir was encountered at 7,680 ft. Then, the final 4%-in. completion string was installed with a wireline re-entry guide at 7,691 ft and a Christmas tree on top to make the well ready for the coiled-tubing drilling (Fig. 5). Rigging up and testing of the coiled-[ubingdrilling-related equipment was time consuming owing to the complex nature of the job. Drilling the 3%-in. hole with coiled tubing began at 7,691 ft on May 8, 1994. During drilling of the buildup section in the Danian chalk, we encountered several large chert beds, which caused very slow progress (Fig. 6). A total of 12 trips were made, primarily for bit changes, before we encountered the Maastrichtian chalk at 8,101 ft (Fig. 7). Drilling continued to 8,294 ti, where returns were completely lost and the string became differentially stuck. Until this point, the well had been drilled in an overbalanced mode without gas lift. Whh the introduction of gas lift, the string was worked free. We found sand proppant in the cuttings when drilling resumed, indicating the presence of a fracture or fracture system locally depleting this area. From this point on, all drilling was performed with gas lift maintaining a bottomhole pressure (BHP) of 1,900 to 2,100 psig [i.e., below the predicted reservoir pressure in the remaining part of the hole section (Fig. 3)]. depth (TD) was An additional four trips were made before total reached at 1I ,000 ft (Fig. 7). During a bit trip at 9,506 ft, the coiled tubing became temporarily stuck at both 8,472 and 8,290 ft. As a precaution, we undertook reaming on the way back in hole. During reaming, the well was inadvertently sidetracked on the low side at 8,450 ft. Fortunately, we could re-enter the old hole, and the sidetrack caused no further problems during the remaining drilling period. Occasionally, we lowered the flowing BHP to 1,700 psig but observed only small amounts of oil to surface (occasionally with some large slugs) until we reached 10,000 ft. During this phase, the surface readout gauge proved extremely valuable because maintaining a fine balance between getting fluid losses and experiencing cavings was necessary. Whh a &crease to 71)~o fluid returns to surface, backflow May 1996..JPT

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probabiy occurred downhole into the iocaliy depleted, fractured region. After reaching 10,000 ft, the weii st~ed @Muting oil at rates from 3Mlto 1,100 STB/D at a flowing BHP of == 2,0C0 psia. From this point on, the separated hydrocarbons were either exported to the Oomr process piatform or flared. We experienced significant probiems with foaming of the returns in the settling tanks. Atler reaching TD, the 2-in. coii and injector head were rigged down and replaced with a i %-in, logging me] required for eiectric logging. Despite several attempts, we couid not get beiow 8,380 ft with the logging string (i.e., below the fractured region, which was severely washed out). The caliper showed a hole of up to 8 in. in tids region. Further logging was abandoned and the weii was brought on production.
Surface Equipmant Parformanca

in the foam. Hence, the abiiity of the surface equipmeni to handie foam and emuisions needs to be improved for future projects. Experience showed that being able to handle returns independently of production facilities (i.e., iOO% flaring at aii times) is required as a contingency during piatform shutdowns. We aiso spent excessive time handling bottomhole assemblies (BHAs) (Fig. 8). Access to the top of the BOP stack was provided by means of scaffolding erected on the drili floor. More effective handling is required for future operations. This can, for exampie, be achieved through use of jacking frames with tubing-puiling capabilities.
Downhola Equipment Parformanca

In general, the surface equipment (i.e., coiled tubing, fluid-pumping equipment, and return-fluid-handling systems) performed very weli with no major equipment breakdowns, Some findings and observations done both on the rig and on the platform, however, showed areas for improvement. We experienced some rig-up difficulties. For exampie, piacing the sampiing fiiter package on the top deck of the production platform was necessary because there was no room for it within the rig test area. This added another 120 ft of pipe work from the fiiters to the choke manifoid. Originality, we thought that backflushing the sampling fiiters wouid keep them clean and ailow co]iection of samples. However, the fiiters were not used as originality designed and did not perform satisfactorily. Because sampling from the filters was very time consuming and backpressure from the additional pipe work to the filters caused probiems during underbalanced dniling, we decided to bypass the filter package. This meant taking the sampies for the geologist and paleontologist from the sand separator. This setup caused no major problems, but it was not ideai because depth determination became even more difficult. Owing to the high volume of water in the fluid returns, increasing the diameter of the water outlet of the three-phase separator from i !A to 3 in. was necessary. The water meter was bypassed with this mocfification: therefore, continuously measuring the return fluid rate from the weii became difficuit because the-returned driiling fluid was stored and transferred from one gauge tank to another. This allowed settiing of solids before pumping the fluid to the shaker pits. Improvements are thus required to integrate the surface fluid voiume-monitoring systems for underbaianced-dril Iing operations. Biodegradation of [he driiiing fluid was experienced during the overbalanced-dril iing operation, which necessitated two changeouts of the entire circulation-fluid-system volume (300 bbi). We also experienced probiems with foaming of returns as they came in contact with atmospheric air during the underbaianced-driiling operations. Thk in turn caused flocdrrg of sertiing tanks and transport of solids suspended in the foam to the shakers. Addition of defoamer and demulsifier at the choke bad iittle effect; however, these chemicals seemed to work better when added to the driiling fluid in the shaker pits. Aiso the process piatform had problems with the solids contained .JIW*May 1996

The overali performance of the BHA components was very satisfactory, with oniy one mud motor failure. The MWD tool provided the data necessary for steering purposes without any malfunctions, and the performance of the driiiing connector was aiso satisfactory.
Orienting Tooi. The orienting tooi worked weli while dniiing over-

balanced; however, it was far too siow to operate when gas iift was initiated to achieve underbalanced driiiing. Under these conditions, the tool could not cycie fast owing to the pressure differential caused by having a seawater column in the coiled tubing and a seawater/oii/ gas column in the annuius. We had to wait for a stabilized U-tube effect to achieve a cycie. Because the tooi can turn oniy 30 to the left per cycle, a tooi-face change from 300 to 330 (eieven cycles), for example, could take up to 4 hours. Initially, more time was spent orienting the tool face than actualiy drilling. Rather than optimizing the weli trajectory to the functional capabilities of the orienting tooi (e.g., by designing a smoothly curved trajectory instead ofa tangent section), more efficient orienting toois are required.
Motors. Two types of Positivedkplacement motors were used, a 27kand a 3 /E-in.type from different manufactumrs, both with rsdjustableLrendsubs. The dkectional driiiers wouid have prtferred to use one type of motor oniy to get a better feei for the builcihm rates to be expcted. However, using both motor sizes was necessary because the number of motors required exceeded predictions and availability became a probiem. This was mainiy because we decided to change motors on almost aii blt trips instead of mnning the motors untii faihsm occurred.

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Drill BIta.Several large chert beds were encountered in the build section through the Danian chalk, severely hampering the drilling progress. During project execution, it became clear that no bhs on the market could be used with confidence to drill chert in the 3%-in. drilling application. We used various types of bits to drill through the appmxi. mately 41O-ft-thick Danian chafk section. Diamond speed mills and roller-cone-insert bits proved to be more successful in drilfing the chert than PDC bits. The roller-cone bits used were from the mining industry and gave very low run times. Neither thermally stable poly crystalline nor Ballaset bits could make any progress through the chert. The clean Maastrichtian chalk section from 8,101 ft to TD was drilled with PDC bits, with the rate of penetration varying between 20 and 120 fthr. The last 2,760 ft were drilled with a single bit. As a consequence of the poor drilling performance in the chert, we initiated development of improved roller-cone-insert bits. Owing to delivery time, a two-cone-insert bit was developed, which also allows a larger bearing area than on a three-cone bit. We used this modified bit type successfully to penetrate chert on the subsequent Kraka Well A-5 coiled-tubing sidetrack. Furthermore, we introduced a backreaming feature on the PDC and two-cone-insert bits. However, further development of drilling techniques for hard, brittle formations (e.g., percussion drilling) is still required. Goosteering Capabilities

We observed that cuttings both during over- and underbalanced drilling were of suftlcient quality to allow biostratigraphic monitoring. Future wells can thus be steered by biostratigraphy, provided that a detailed biozonation exists across the field. As expected, evaluation of shows was problematic during underbaIanccd drilling because of contamination by the produced oil. Development of LWD techniques iS themfo~ ruP-Ii~ for wells whew Kcrsrate placement relative to fluid levels is necessary. Until such tools become available, future wells must be positioned so that on-site geological evaluation of fluid levels is not a vital element during drilling. Sampling of cuttings at regular intervals at surface is very critical. The best results came from the sand separator and settling tanks, during both over- and underbalanced drilling. Fhrid samples from the choke manifold can be used for nanofossil analysis. The cuttings filter package was found to be impractical, as mentioned previously. Although it is ~ssible to steer a coiled-tubingdrilled well by use of biostratigraphy during both over- and underbalanced conditions, it is more problematic than in conventionally drilled wells. Cavings w far more common than in conventional wells, and the amount of cuttings is very small. Another critical pint in geosteering is the uncertainty associated with the lag time during underbalanced drilling. Further improvement of methods to estimate lag times is thus important, and an improved system for sample collection is under investigation.
Production Performance Production During Drilling. We observed only small amounts of oil to surface (occasionally with some large slugs) while drilling from 8,294 ft to 10,000 ft, after which the well started producing oil at rates from 300 to 1,100 STB/D until reaching TD at 11,000 ft. In spite of the fact that most of Well N-49 probably was drilled underbalanced, significant amounts of hydrocarbons were produced to surface only during drilling of the lowermost l,OCOft. The predicted reservoir pressure at the top of the productive M 1.2 subunit was 2,000 psig and increased to 3,200 psig toward the distal part of the well (Fig. 3). After experiencing complete loss of returns at 8,294 ft, the well was drilled mainly with a flowing BHP of 1,900 to 2,100 psig. Observation of only traces of hydrocarbons to surface and down to 70% fluid returns from 8,294 ft to 10,000 ft indicates that backflow probably occurred into the more depleted fractured area penetrated at around 8,294 ft. Extrapolation of a plot of flowing BHP vs. oil production rate during drilling of the lowermost 1,000 ft shows balance between backflow into the fractured area and inflow from the remaining part of the well at a pressure of 2,300 psig. Production History. Well N-49 was brought on production in early June 1994. Production was handled through temporary separation facilities at the wellhead platform to remove sand proppant before the oil and gas was exported to the Germ process facility. Initially, the

well was beaned up stepwise from a WW-to %w-in. choke, at which time production rates decreased significantly without a major change in flowing BHP and water cut. This change coincided with the observation of sand prcxfuction to surface. The produced sand was identified to be sand pmppant (i.e., originating from an induced hydraulic fracmre in a nearby well). A total of 45,000 Ibm of sand pmppant was produced out of the well during the early production period. Well N-32, approximately 350 ft west of Well N-49 (Fig. 2), is the most probable source of sand. On the basis of borehole image logs of the predominant fracture orientation in the Germ B block, a natural fracture swarm extending from Well N-32 toward the southwest would intersect Well N-49 at an MD between 8,000 and 8,500 ft. This corresponds well with the depth of 8,300 ft, where complete loss of returns occurred during the drilling phase and sand started to appear in the cuttings. Most likely, sand propagated along already existing fractures during hydraulic fracturing of Well N-32 and reached a much greater distance from the well than the originally planned 125 ft. However, decreased production has not been observed from well tests in Well N-32 or any surrounding producers. We attempted to bean up Well N-49 numerous times, but thk resulted in sand production to surface whenever a BHP of approximately 1,500 to 1,600 psig was reached. This probably coincides with the onset of production from the depleted fractured area into the wellbore and therefore also explains the unaffected production from Well N-32. Further bcanups resulted in production of nodules of chert and chalk to surface, causing plugging of the surface choke. As a result of the solids production, drawdown was restricted to a flowing BHP > 1,5fX)psig. However, sand proppant and solids plugging up the tubing and borehole affected production from tbe well, necessitating re-entry with coiled tubing for cleanup. Biostmtigraphic analysis of the chalk nodules prcduced to surface shows that they originate from the fractured region at =8,300 ft. We performed a coiled-tubing redrill, after which we attempted to run a predrilled coiled-tubing liner. However, the liner could not pass washouts in the fractured region and we abandoned the attempt.
Performance Comparison. The initial production performance of Well N-49 was better than expected, with oil rates ranging from 2,5M to 3,000 STB/D. flse production forecast was based on a simulation model, assuming a length of 3,000 ft and a skin factor of 3. The predicted PI was = 1 STB/D-psi. Observed PI without any stimulation initially was 4.5 STB/D-psi and stabilized at = 3 STB/D-psi. This difference is not easily explainable, even if Well N-49 were to produce fmm the fracture induced in Well N-32, which has a PI of 1 STIVD psi. The performance is most likely because the well is connected to a natural fracture network in this area close to the main fault. Conclusions

The successful Germ Well N-49 coiled-tubing-drilling trial proved that drilling a horizontal drainhole at underbalanced conditions in a soft chalk reservoir is technically feasible with existing technology. The safety of the underbalanced-dnliing operation in the offshore environment was ensured through handling of returns in conventional well-test equipment. Geosteering of the well path with biostratigraphy was proved possible in spite of the small quantity and fine nature of cuttings brought to surface. Detailed mapping of the distribution of highly porous units, combined with a correlation of the biostratigraphic units, provides a powerful td in coiled-tubing well planning and steering. This requires, bowever, that a detailed biozonation across the field has been established and that very accurate well placement relative to fluid contacts is not crucial. Development of LWD technology for small hole sizes is required to be able to place wells very accurately relative to fluid contacts. The underbalanced drilling appears to have resulted in impmved early productivity compared with that of a conventionally drilled and acid-stimulated well. However, problems were experienced with borehole stability in a fractured region. Areas exist for considerable improvement in the eftlciency of coiled-tubing-drilling operations through further tool development. Special emphasis should be placed on ( 1) roller-cone bits and fixedMay 1996= .JRT

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cutter bits for small hole sizes; (2) downhole adjustable bent-housings for better directional control; (3) orienting tools; (4) tools and techniques to ~netrate hard, brittle rocks (e.g., chert] (5) LWD tools for small hole sizes; (6) jacking frames with tubing pulling capabilities; (7) size and weight of coiled-tubing surface equipment; and (8) surface fluid-handling equipment.
Acknowledgments

We thank Msxsk 011,Texaco Denmark Inc., and Shell Olie & Gasudvinding Danmark BV (Holland) for permission to publish this paper. Msersk 011thanks the staff of the Schhsmbcrger companies, Dowel], Anadnll, and Wueline & Testing, fortheircontribution to a successful implementation.
References

1. Andersen,S.A., Hansen,S.A., and Fjeldgaard, K.: Horizontal Drilling

and Completion: Denmark: paper SPE 18349 presented at the 1988 SPE European Petroleum Conference, London, Oct. 16-19. 2. Damgaard, A.P. er al.: AUnique Methal for Perforating, Fracturing, and Completing Horizontal Wells, SPEPE (Feb. 1992) 61. 3. Nederveen, N. and Damm, M.: Basal Waterffooding of a Tight Chalk Field With Long Horizontal Fracmred Injectors; paper SPE 26802 presented at the 1993 SPE Offshore Europe Conference, Aberdeen, Sept. 710. 4, Jeppesen, M, W.: Geological Steering of Horizontal Wells in Chalk Reservoira-Examples from the Danish North Sea, Bu/letin Geological
SOc. Denmark (1994) 41, No. 2, 138.

S1 Metric Conversion acre X 4.046873

Factors

1.589873 X 3.048 (F32)/l.8 x 2.54* lbm x 4.535924 md x 9.869233 mile x 1.609 344* psi x 6.894757 bbl ft F in.
X
Convmabn faalor & eXEd

E01 =ha E-01=m3 EOl=m = .C

E+ OO=cm

EOl=kg E04=Km2
E+ OO=km

E+ OO=kPa

Philip Mka is a senior petroleum engineer with Mcmk Oil in Copenhagen, Denmark. Since joining M=rsk In 1983, he has held various drilling and petroleum engineering posltlons In North Sea and Middle East operations. Wodka holds an MS degree in electrical engineering from the Technical U. of Denmark and a diploma in economics/orgcmization. Harrrlk lirsgaard is a production geologlst with Mawsk XI,After 3 years with the GeoIoglcal Survey of Greenland, he joined Mawsk Oil in 1991, wotking in exploration and later petroleum engineering. Tlrsgaard holds MS and PhD degrees in geology from the U, of Copenhagen. CarstanJ. Adamsan is the head of Equipment & Development in Well services in Esbjerg, Derunadr, with Mcwsk OIL Previously, he worked for 10 years as a marine engineer with the shipping part of the Mawsk group. He joined Mcersk Oil in 1984 and has held various on- and affahare positions within the well setvlces operations in the North Sea. ArsclersP. Damgaard isthe head of Drilllng Engineering with Mcsrsk Oil in Copenhagen. Since joining the company in 1981, he has held various drilling and petroleum engineering positions for North .%a and Norfh American operations, He holds a 5S degree in eiecfronics englneeringfrom the Technical U. of Denmark. Damgaard is a member of the European Petroleum Conference program committee and has been a Copenhagen Section officer,

Wodlra

Tirsgtsmt

Adamsen

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