Vol. 4, Issue 2

Varel International and Downhole Products introduce the CaseBit™ PDC Drilling with Casing Bit

Varel International, a leading manufacturer of drill bits and a global supplier to the drilling industry, announces the development of the CaseBit™ advanced casing drill bit product line, a joint development with Downhole Products (DHP), a Varel International Energy Services company.

The CaseBit product line is a patent pending solution that addresses the need for an advanced cutting tool for Drilling with Casing (DWC) operations. The proprietary approach combines key Polycrystalline Diamond Compact (PDC) drill bit technologies, including force balancing, spiral and asymmetric blades, cutting structure wear modeling and computational fluid analysis with highly flexible manufacturing and casting technology. The result is an optimized, custom casing bit capable of drilling performance that exceeds competitive bits.

"We believe we have created a decisive solution for DWC operations. The unique matrix blend of the CaseBit body yields improved erosion resistance when compared to aluminum products currently in the marketplace," explained Mike Thigpen, Director of PDC Technology for Varel International.

"This advanced technology bit is supported by the global service networks of both Varel International and Downhole Products. They are designed, selected, and programmed based on proprietary software modeling tools tempered by local experience and worldwide expertise."

For continued deepening of the well, the CaseBit solution is also designed to be readily drilled through by a smaller diameter PDC bit once the casing has been set and cemented in place. The "Machineable Matrix™" body construction allows for greatly enhanced design flexibility, speedy manufacturing response and unsurpassed drillability. In addition, patents pending external and internal body configuration geometry accelerates drill out and improves the breakup of the bit face during post cementing drill out by the following string.

DHP Managing Director Ian Kirk adds, "We have worked diligently with the drill bit design experts at Varel to produce a PDC casing bit technology that fulfills the needs of our customers worldwide. The casing tool expertise of the DHP team, combined with the bit technology experience of Varel have allowed us to create a new technology tool that will perform well in drilling and when being drilled out by a follow on string and bit."

The CaseBit will be on display in the companies' joint booth, number 7546, at the Offshore Technology Conference, May 2-5, 2011.

Varel International and NewTech Services create Joint Venture

Varel International and NewTech Services (NTS) announce the creation of a 50-50 joint venture company focused on manufacturing, assembling, servicing and sales of oil and gas drill bits for the Russian CIS market and beyond. The joint venture, Varel NTS, will establish a state-of-the art PDC manufacturing and service facility in Kurgan, Russia to create an alliance between Varel's high technology engineering and manufacturing and the strength of NTS in drilling technology, infrastructure, market knowledge and customer requirements. NTS will also continue to support sales distribution and services of Varel's advanced oil and gas roller cone products.

"In this first phase of the venture, Varel will provide support through the transfer of our proven, repeatable technology. In addition to our commitment to establishing the physical manufacturing equipment and technology, we will continue this collaboration by providing analytical resources through our proprietary programs, GeoScience™ formation analysis and SPOT™ cutting structure design," said Mike Reese, PDC vice president of Varel International. "These focused solutions tools will prepare products for local field implementation and significantly improve performance."

Mark Sadykhov, president of NewTech Services added, "We are taking the initiative through this agreement to introduce cutting-edge application technology to one of the largest oil and gas regions of the world. CIS countries comprise a land ripe with vast opportunity and we are pleased to be merging our cultures together to bring technology into the region, broaden the talent base and assist the local economy. This effort represents the first time advanced Western PDC bit technology has been transferred into Russia."

Per the agreement, Varel will coordinate the manufacturing efforts with NTS championing the sales and services enterprise. In addition, Varel will provide ongoing administrative and technology support from the company's Eastern Hemisphere locations.

Thomas Seeney of Varel has been appointed Varel CIS Regional Manager. He will be supported by senior staff members in Kurgan who are currently training at Varel's Eastern Hemisphere base in Tarbes, France. The new facility, centrally located to facilitate rapid bit delivery across Russia, will increase global Varel PDC drill bit production by approximately 20 percent.

"This capacity will allow Varel NTS to provide Kurgan produced PDC bits to markets external to Russia, helping meet the rapidly growing demand for Varel products in both the Eastern and Western Hemispheres," explained Seeney.

Mike Reese concluded, "We are fortunate to have found a partner in NTS. They are well versed in the drill bit business, so we did not have to battle a learning curve. The plans are in place and we are very well poised for the execution of successful operations."

About NewTech Services

NewTech Services provides high technology products and services to companies within the oil and gas industry. Using advanced technology and innovative equipment, NewTech strives to improve customers' business profitability and assist in maintaining their business worldwide. NewTech Services is an exclusive Varel International representative, one of the leading international manufacturers of roller cone and diamond drill bits. Through this partnership, we offer vast drill bit selections and deliver specialized solutions using unique design optimization technologies. NewTech provides efficient delivery times for customers' sensitive deadlines and offers support service at all project stages. For more information please contact Kamil Zakirov, Vice President NewTech Services, at +7 495 363 68 74 or visit www.nt-serv.com/en

RPS Section Live Online

New information on the company's new mining product, the RPS™ system, is now available for download. The patented RPS percussion tools provide unparalleled performance, versatility and reliability to virtually any rotary drilling environment. Designed for air rotary operations, the RPS delivers increased rate of penetration, reduced total drilling cost and more value to the bottom line with its unique ability to harness rotary and percussion forces. In addition, Varel continues to develop and deploy specific RP drill bits to complement the tool and meet customers' requirements.

For more information, please click here.

VIES and Varel Corporate star in New Corporate Advertisement

Varel International Energy Services recently developed an advertisement that covers all facets of the global company, from oil and gas drill bits, mining bits and tools to the suite of downhole tools from DHP. By launching this ad, VIES and Varel corporate look to gain exposure for the Varel brand and further cement Varel's image as a shining example of premier global providers of vital equipment for the oil & gas and mining industries.

Look for the ad in current industry publications.