INNOVATIVE ENGINEERING SYSTEMS LIMITED

Xpress-ESP™
Coiled Tubing Completion System

Technologies
Technical Brochure

IESL

February 2004
Version 2.0

INNOVATIVE ENGINEERING SYSTEMS LIMITED

14 RUBISLAW TERRACE LANE ABERDEEN AB10 1XF UK
TEL: +44 (0)1224 658695 FAX:+44 (0)1224 658696
E-MAIL INFO@IESL-GLOBAL.COM
TABLE OF CONTENTS

1. INTRODUCTION........................................................................................... 5

2. XPRESS-ESP™ - SYSTEM DESCRIPTION................................................ 7

3. SYSTEM COMPONENTS............................................................................. 9
3.1 Cable/coiled tubing assembly ............................................................... 9
3.2 Subsurface assembly........................................................................... 11

4. WELL CONTROL & SAFETY SYSTEMS ................................................ 13

4.1 Circulation and Release System – E-Scape™ .................................... 13
4.2 Flow Control & Isolation TOOL - FS-Valve™ .................................. 14

5. TRACK RECORD – CT COMPLETIONS.................................................. 15

6. CONTACT INFORMATION....................................................................... 17

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

VERSION 2.0 Xpress-ESP™ FEBRUARY 2004 3

 Table of Content

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

4 FEBRUARY 2004 Xpress-ESP™ VERSION 2.0

 1
Section 1
INTRODUCTION
1. INTRODUCTION

P r o b l e m s

Are your wells subject to expensive workover rig costs or remote locations
for ESP completions?

Do you have problems where you can’t run a conventional ESP pump
assembly?

Do you have to pull the pump because of cable seal failure?

Are you unable to circulate your well and release cleanly from the BHA?

B e n e f i t s

Deploy ESP pumps on Coiled Tubing, quickly and efficiently even in

remote locations!

Innovative cable seal provides low impact, high resistance seal!

Dedicated flow control and safety systems prevent damage to motor during
shutdown and clean release from BHA!

Xpress-ESP™ is a completion system that utilises electric-ubmersible pumps as the means of

liftinging hydrocarbons and/or water from underground reservoirs. The system comprises the
surface and subsurface assemblies required to complete the wells with the exception of the
ESP. The system is configured for use in wells that require inverted pumps (i.e. motor located at
the top of the ESP assembly).

Xpress-ESP™ offers the following advantages:

Reduce cost and minimize downtime by avoiding the use of rig and by allowing faster
installation/recovery of the completion
Extends run life and improves reliability by isolating the electrical parts from the production
fluids.
Minimize formation damage by allowing live well deployment and retrieval.

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

VERSION 2.0 Xpress-ESP™ FEBRUARY 2004 5

1
Introduction

Xpress-ESP™ is the only completion system that allows well intervention without retrieving
the completion.
Xpress-ESP™ systems incorporate subsurface flow control system for well safety and
reservoir isolation.
Xpress-ESP™ provides a release and circulating system that allows safe well circulation &
control, disconnect and effective retrieval of the completion.

Xpress-ESP™ components have been thoroughly tested in order to ensure that problems
encountered with other commercial system such as cable slippage, internal and external
damage to the Coiled Tubing and installation failure are avoided.

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

6 FEBRUARY 2004 Xpress-ESP™ VERSION 2.0

Section 2
XPRESS-ESP™ - SYSTEM
DESCRIPTION
2
2. XPRESS-ESP™ - SYSTEM DESCRIPTION
Xpress-ESP™ Completions are composed of two main assemblies. The subsurface assembly
comprises of elements from the bottom of the Coiled Tubing string to the pump assembly
depending on the configuration selected. The following paragraphs describe in more detail the
system specifications and operating principles.

The Xpress-ESP™ system has been designed to be utilised in wells that require the use of
inverted (Bottom Intake) ESP’s. The sub-surface assembly is composed of cable termination
and isolation devices located at the top of the pump assembly and a release/circulation device
that allows well neutralization and release (disconnect) from the ESP assembly.

The system allows flow control and formation isolation by locating the deep-set safety valve at
the intake side of the pump. The subsurface assembly incorporates a pump discharge sub
whose design is based on packer technology, this removes the complication and problems
associated with existing discharge heads. This flow diverter placed between the pump and the
motor (or seal) provides isolation between the suction and discharge sides of the pump
assembly, takes the torque generated by the pump unit and allows flow to cross from the
internals of the pump into the annular space. The system does not require a sacrificial tubing
string to be used and does not impose depth setting limitations; the pump can be set at any
particular depth since it does not rely on fixed seating devices.

Xpress-ESP™ utilises Mag-CLAMP™ technology for the suspension of the cable inside the
Coiled Tubing string. This patented technology permits effective cable suspension without
indenting and damaging the walls of the Coiled Tubing string. Engineered cable load distribution
avoids slippage and excessive tensile/compressive loads associated with installation failures in
wells utilizing the anchor or welded type of suspension devices. The figure on the following
page illustrates a typical completion system.

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

VERSION 2.0 Xpress-ESP™ FEBRUARY 2004 7

2
Xpress-ESP™ - System Description

Xpress-ESP™ - Subsurface Assembly

Item Description
1 Coiled Tubing

Circulating & Release System

2
E-Scape™
3 Control Line

4 Adjustable Setting & Discharge System

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

8 FEBRUARY 2004 Xpress-ESP™ VERSION 2.0

 3
Section 3
SYSTEM COMPONENTS
3. SYSTEM COMPONENTS
Xpress-ESP™ is composed of three main assemblies, the surface part of the system, the
cable/Coiled Tubing section and the subsurface assembly. The following pages illustrate these
sub-systems in more detail.

3.1 CABLE/COILED TUBING ASSEMBLY

The cable / Coiled Tubing assembly utilises the patented Mag-CLAMP™. This technology
allows effective suspension of the electrical power cable without damaging either the cable or
the Coiled Tubing. Conventional anchor mechanisms used to date have presented a number of
problems that have lead to completion failure. Poor gripping, CT wall indentation and cable
slippage are some of the main problems. The indentation caused is beyond the acceptable
tolerances set by the Coiled Tubing manufacturers. Such damage leads to crack initiation that
under typical operational conditions could result in a parted string. Mag-CLAMP™ is a patented
technology and does not require external or internal deformation or indenting of the string.
Cable suspension systems for wells using Mag-CLAMP™ are designed based on well
deviation, orientation, depth and cable weight. The following figure illustrates the cable / coiled
tubing assembly.

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

VERSION 2.0 Xpress-ESP™ FEBRUARY 2004 9

 3
System Components

Patent Pending
4

Item Description
1 Coiled Tubing
2 Electrical Cable
3 Mag-CLAMP™ Body
4 Suspension Assembly

CABLE SUSPENSION ASSEMBLY - Mag-CLAMP™

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

10 FEBRUARY 2004 Xpress-ESP™ VERSION 2.0

 3
System Components

3.2 SUBSURFACE ASSEMBLY

Subsurface equipment for the Xpress-ESP™ system is for use in wells requiring an inverted
pump configuration. There are three key components utilised in this system - the circulation
and release tool (E-Scape™); and adjustable setting, isolation and discharge unit – the key
components of the Xpress-ESP™ system and a formation isolation valve (FS-Valve™). The
following schematic and table illustrate the main characteristics of the subsurface assembly for
Xpress-ESP™ equipment.

ADJUSTABLE SETTING, ISOLATION AND DISCHARGE – Xpress-ESP™

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

VERSION 2.0 Xpress-ESP™ FEBRUARY 2004 11

3
System Components

Max. O.D. Min. I.D. WP Rating

Sub Assembly Remarks
(in) (in) (psi)
Allows circulation of fluids above the
E-Scape™ 6.00 2.75 5000 motor and disconnect from the BHA
Located between the motor and pump,
Xpress-ESP™ 5.50 3.25 5000 provides both isolation and discharge of
produced fluids.
Hydraulically activated valve to minimise
FS-Valve™ 6.00 3.50 5000 damage to formation by preventing flow
back during pump shutdown.

SUBSURFACE ASSEMBLY - GENERAL SPECIFICATIONS

More details concerning the safety and control systems are included in the following section.

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

12 FEBRUARY 2004 Xpress-ESP™ VERSION 2.0

Section 4
WELL CONTROL & SAFETY
SYSTEMS
4
4. WELL CONTROL & SAFETY SYSTEMS
Xpress-ESP™ well control and safety systems have been designed to avoid the uncontrolled
release of hydrocarbons to the environment and to allow safe and effective release of the Coiled
Tubing string from the pump assembly during deployment or retrieval operations. Two control
and safety systems are incorporated in these type of completions, E-Scape™ (circulation and
release tool), and FS-Valve™ (flow control and isolation tool)

4.1 CIRCULATION AND RELEASE SYSTEM – E-SCAPE™

E-Scape™ provides three main functions. Firstly to neutralize the well by allowing circulation via
the internals of the Coiled Tubing, secondly to allow safe and effective release of the Coiled
Tubing string from the pump assembly and finally to severe the electrical power cable and
hydraulic conduits passing through the main mandrel. Two of these functions are independent.

E-Scape™ is pressure activated via the internals of the CT string and energizes a cam/slot
system that will allow communication between the internals of the CT and the annular space in
order to circulate the well. This function can be operated as many times (open/close cycles) as
required and does not impact the release and cutting functions.

The release function is vital in cases where it is impossible to unseat the packer or the ESP
assembly is jammed (e.g. pump sanded). In this case, the pulling capacity of the injector head
and/or the strength of the CT string limit the options available to retrieve the completion. As a
result, the string has to be released. The E-Scape™ system will allow an effective
release/disconnect from the jammed section, the link is broken at the bottom of the CT string
and it requires straight pull. It is during the releasing/disconnecting that the third function is
activated. E-Scape™ allows the electrical cable and hydraulic conduits to be cleanly severed
without leaving any debris on the top of the "fish". They are cut as the CT string is being pulled
after releasing from the stuck assembly.

The completion can then be recovered using a larger size CT or with a rig using tubing/drill pipe.
The following sketch illustrates a E-Scape™ system for a 7.0" completion in its circulating
position.

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

VERSION 2.0 Xpress-ESP™ FEBRUARY 2004 13

4
Well Control & Safety Systems

4.2 FLOW CONTROL & ISOLATION TOOL - FS-VALVE™

The FS-Valve™ is for all practical purposes a deep set downhole safety valve. Located at the
discharge of the ESP assembly and below the packer, it is hydraulically closed from surface via
a control line. FS-Valve™ is opened using the pump discharge pressure. The forces created by
the flow of fluids through the valve locks the sealing body of the FS-Valve™ ensuring that a
large flow area is available minimizing the risk of erosion. Once the pump fails or is temporarily
shut down, pressurising via a dedicated control line at surface closes the valve.

Test results have characterized pressure losses of fluids flowing through the valve. These
results confirm initial CFD simulations that indicated minimum losses even for very high flow
rates.

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

14 FEBRUARY 2004 Xpress-ESP™ VERSION 2.0

 5
Section 5
TRACK RECORD – CT COMPLETIONS
5. TRACK RECORD – CT COMPLETIONS
Since its foundation IESL has been at the forefront of CT Completions, based on over 25 years
of technical, managerial and operational experience the company has been involved in many
projects worldwide. Some of the milestones include managing the first two CT ESP completions
using an internal cable assembly, a summary of some of the main projects completed to date is
presented in the following table.

Operator Field Year Type of Work Activity

SHELL UK Dunlin, UK 1995 Engineering Recompletion, 1 well
Management,
2 installations, CT ESP
EEC Stockbridge, UK 1994/1995 engineering and
completions
supervision
STATOIL Siri, Norway 1996 Engineering Completion design, 1 well
NORSK Hermod, Completion design, 1 well
1996 Engineering
HYDRO Norway w/CT ESPs
Equipment Development of complete CT
CENTRILIFT North Sea 1997
development ESP system
Completion Design, 2 wells
STATOIL YME, Norway 1997 Engineering
w/CT ESPs
SHELL UK Brent, UK 1996 Engineering BPW project, CT ESPs
Recompletion design, 1 well
BP Thistle, UK 1997 Engineering
w/CT ESPs
SHELL Brunei Magpie, Brunei 1997 Engineering Recompletion, 2 wells
Equipment Development of safe
REDA YME, Norway 1998
development disconnect system
PDVSA CEPRO 1998 Engineering Test installation

IESL's PROJECT PORTFOLIO SUMMARY

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

VERSION 2.0 Xpress-ESP™ FEBRUARY 2004 15

7
Track Record – CT Completions

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

16 FEBRUARY 2004 Xpress-ESP™ VERSION 2.0

 6
Section 6
CONTACT INFORMATION
6. CONTACT INFORMATION

U N I T E D K I N G D O M

14 Rubislaw Terrace Lane,

Aberdeen AB10 1XF
Scotland
Telephone 01224 658695
Facsimile 01224 658696
Email info@iesl-global.com

Woodfalls,
Hythe Road
Marchwood
Hants, SO40 4WU
England
Telephone 02380 849074
Facsimile 02380 849083
Email info@iesl-global.com

U N I T E D S T A T E S

10375 Richmond Avenue

Suite 1300
Houston
TX 77042
USA
Telephone 713 974 0634
Facsimile 832 251 6691
Email info@iesl-global.com

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

VERSION 2.0 Xpress-ESP™ FEBRUARY 2004 17

8
Contact Information

This document contains CONFIDENTIAL and PROPRIETARY INFORMATION of INNOVATIVE ENGINEERING SYSTEMS LTD (IESL). This document and the information disclosed herein shall
not be reproduced in whole or in part to others for any purpose including conceptual design, engineering, manufacturing or construction without the written permission of IESL. IESL 2003

18 FEBRUARY 2004 Xpress-ESP™ VERSION 2.0