Varel International Advances Navigator PDC Series Through Application of Bridgeable Software

(DALLAS - 16 MARCH 2009) -Varel International has combined two proprietary software programs into a single, bridgeable platform for its reengineered line of Navigator directional bits, built specifically for directional and steerable systems. The reengineered series exploits the synergies of Varel's proprietary GeoScience^TM rock analysis software and the company's cutting structure design and drilling simulation system, SPOT^TM (Simulateur Pour l'Optimisation des Trépans) software. This produces an optimized product and engineered gage configuration specific for all rotary steerable tools.

Mike Reese, Vice President - PDC Business Unit, explains how bridging the company's two technologies substantially upgraded the Navigator series, allowing designers to optimize the bit's components based on a given drive and predict which configuration will lead to the desired outcome. "We've been able to bridge our software packages, making the output of one, the input of another. This creates a seamless environment for us to model, quantify and then optimize our bits before we go downhole with a product. This is true matching - not just gage design or gage length, but the whole bit including the cutting structure," Reese said. He continued, "We are able to supply a better bit for any BHA configuration. We understand the hole, we understand the operation and we understand the directional objectives. And now, with our recent advancements, we bring all of that knowledge together to deliver a high technology solution for directional drilling applications."

GeoScience software is used to analyze customer-supplied mud logs, drilling logs and electric log data in order to build a virtual model of the well sections to be drilled. The methodology used allows for more accurate definition of the cutting structure, gage configuration, type and size of PDC cutter to be recommended for the application through its output. Varel International Advances Navigator Series Page 2 of 2 Using the GeoScience outputs as a guide, the custom cutting structure is created with the SPOT software package. This engineering tool can predict a PDC bit's directional behavior and cutting structure efficiency and match that with the operation's needs in term of bit directional signature as well as provide a performance prediction for the lifespan of the bit. With this bridged software suite, Varel can accurately match the cutting structure to the gage of the drill bit, an essential element in any directional application. The company has performed extensive laboratory and field tests to develop more than 25 gage and cutting structure configurations to validate the series' design matrix. It is this matrix which is used to match a specific bit to the rock, well design, and steering system.

Proven in multiple field applications, the Navigator bits recently completed another successful Point-the-Bit application for a Major Operator in the UK. After thorough GeoScience and SPOT analysis, Varel recommended an 8-3/8" Navigator PDC bit equipped with updrill backreaming cutters, X type shock studs and a 4" full diameter gage pad. The vibration sensitive BHA used in the application recorded no bit induced vibration or stick-slip as the bit completed its run to 5,176 ft in 127.8 hrs with a ROP of 40.5. The system maintained effective toolface control and all directional objectives were achieved. Due to the bit's excellent dull condition, it was serviced and returned to the field for additional runs.

Founded in 1947, Varel International is the world's largest independent supplier in the global oil & gas drill bit market. Headquartered in Carrollton, Texas, Varel services oil & gas, mining, and industrial markets with its comprehensive suite of roller cone and fixed cutter drill bits. The company employs more than 1,000 people and has manufacturing facilities in Carrollton, Texas; Houston, Texas; Matamoros, Mexico and Tarbes, France, as well as sales offices throughout the world. Varel's proprietary design capabilities, efficient manufacturing, and global sales force uniquely positions the company to provide high-quality drill bits that deliver excellent performance and value to its customer base. For more information, visit www.varelintl.com.

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