Varel International : Varel News

Vol. 3, Issue 2

Performance Report
New Bit Design Proves Successful

Varel drill bit designers and field engineers recently released an enhanced PDC bit for use in the Barnett Shale, an 8-3/4" VM613P. This six-bladed bit utilized a more active blade design with premium cutters equipped for this application. Furthermore, backup cutters on this design were analyzed and deployed for more aggressive cutting action on the shoulder of the bit, allowing engagement of these cutters in addition to the primary cutting structure.

This performance set a 24-hour footage record delivering an average ROP of 120.02 ft/hr and becoming the fastest bit to make it to KOP. The bit completed the section with an average ROP that was more than 18 percent greater than the closest competitive offset run in the area. According to the Varel Field Engineer, the dull (pictured) is in great condition and sustained no serious damage.

For more information on this design, e-mail us at info@varelintl.com.

Varel Releases New Technical Bulletin

Drilling Impedance: An effective tool for enhanced drilling optimization and identification of efficiency opportunities

Drilling Impedance (DRIMP) is a simple yet effective way of measuring the drilling efficiency performed by the drilling assembly. DRIMP can be calculated using downloaded drilling data, or may be calculated in real-time on the rig, to provide an indicator of drilling efficiency. This methodology starts by employing the factual known outputs of the drilling process: rate of penetration (ROP), revolutions per minute (RPM) and weight on bit (WOB).

Download the full DRIMP technical bulletin.

Varel International President and CEO Jim Nixon Named Ernst & Young Entrepreneur of the Year^® 2010 Award Winner in Southwest Area - North

Jim Nixon, Varel president and CEO, recently received the Ernst & Young Entrepreneur of the Year^® 2010 Award in the Manufacturing and Distribution category in the Southwest Area — North. According to Ernst & Young LLP, the award recognizes outstanding entrepreneurs who are building and leading dynamic, growing businesses. Nixon was selected by an independent panel of judges and the award was presented at a gala event at the Dallas Sheraton on June 19, 2010.

While accepting the award, Nixon was quick to point to his coworkers at Varel for the success the company has experienced. "We would not be in the place we are today without the team we have at Varel. Everyone at our company works hard every day to build our success — they earned this award and I am proud to accept it on their behalf."

As a Southwest Area — North award winner, Nixon is now eligible for consideration for the Ernst & Young LLP Entrepreneur of the Year 2010 national program. Award winners in several categories, as well as the overall national Ernst & Young Entrepreneur of the Year award winner, will be announced at the annual awards gala in Palm Springs, California on November 13, 2010.

Varel Announces Availability of New Cutter Technology Information

Complementing bit selection, by selecting a cutter with the right properties, can be as challenging as selecting the right drill bit. Varel engineers have overcome the complexity of this task by developing functions within the drill bit design software that incorporate cutter properties to simulate a bit's overall performance.

Varel continues to push the limits of fixed cutter technology through its aggressive approach to innovative platforms, which allows for the delivery of the cutting edge products and performance needed for the toughest drilling challenges. Getting the job done, doing it well and delivering the best products are at the core of our values.

Learn more about Varel's cutter selection.

DHP Adds Industry Professionals

Downhole Products, based at its global headquarters in Portlethen, Aberdeen, continues an active program of global expansion through the addition of experienced oilfield staff, increased office space and substantial financial investment.

Graham Hay recently joined Downhole Products with 23 years of oilfield experience. He will be working in engineering sales and his territory will encompass the Russia/Caspian region. Graham was previously operations manager for Wellbore Construction at Baker Oil Tools in the UK, before transferring to Baku.

Downhole Products' Middle East Dubai operation, which recently benefited from a six-figure pounds sterling investment, is soon to relocate to Jebel Ali, in a location that houses larger offices and enhanced storage facilities. Martin Pirie heads up the DHP operation with two other sales and operations personnel in the Middle East region.

Downhole also made a similar investment in opening its Far East premises in Kuala Lumpur last year, around the time of the company's 15th anniversary. The operation there is being run by Alex McGregor who has since recruited an experienced sales and operations team to assist him in developing the region.

In addition, George Richardson, formerly an operations engineer with Baker Oil Tools in Aberdeen, joined DHP in January 2010 as part of the UK sales and operations team, with 24 years oilfield experience in various downhole tool disciplines.

Cliff Brannon also joined DHP in March 2010 as the Eastern Hemisphere sales manager. Brannon spent the previous five years working overseas as operations manager for Weatherford and Smith International in Sub-Sahara Africa, North Africa and the Middle East. His oilfield experience dates back to 1981, with both on- and offshore practice in the UK and Europe, as well as a background in onshore operations and technical sales.