ADAPTED PRESENTATION Date: 24 November, 2009 (Week 48) Location: PCSB Kerteh HQ Iain Rei Technical Director.

ADAPTED PRESENTATION Date: 24 November, 2009 (Week 48) Location: PCSB Kerteh HQ Iain Rei Technical Director

Parties Operator (OC): Petronas Carigali Sdn. Bhd. Service Provider (SP): Geowell Sdn. Bhd. Wire Supplier (WS): Wilco OFS Pte. Ltd. Location: Dulang, PMO Scope of Work SP to provide sand-bailing services WS to provide super-duplex stainless steel Zeron 100 HS

Timeline First contact: Week 40 (Susp. wire thinning) KSB Visit: Week 41 (Wire inspection) Second Contact: Week 42 (Susp. Inconsistent OD) KSB Visit: Week 43 (Wire inspection) Wire replacement: Week 43 (Inconclusive) Official reply: Week 45 (Mfg. Tolerance) Third Contact: Week 47 (Susp. lower MBL; surface quality; plastic behavior) KSB Visit: Week 48 (now)

First used in Dulang: 2003 SP: Dimension Bid Sdn. Bhd. Current countries: 6 Malaysia, Indonesia, Vietnam, Thailand, Myanmar, Turkmenistan Current mean per annum usage: 60 reels Largest end-user: Petronas Carigali Largest single-user: Chevron Thailand Keywords: high breaking load, quality, consistency, support, service, stockist, fast

First issue: Wire thinning Restatement: wire is surface thinning inexplicably causing disruption in service Premise: Wire was said to be unused and new from reel Wire was of poor surface quality Conclusion: Wire was found to be used Wire was found to be significantly stressed mechanically Link to report from UKreport

Second issue: Inconsistent OD Restatement: wire OD is inconsistently thick or thin, resulting in uncertainty in quality that could lead to NPT Premise: Wire is said to be new Wire OD was changing rapidly during spooling Operator/helper detected accurately using hands on moving wire from supply to usage reel Conclusion: Wire is new Wire OD seemed to be changing if detected by hand Wire was replaced Subsequent findings from Principal show that OD was fluctuating within normal manufacturing limits of 0.001findings

Our findings On 23 Nov., 2009 we performed a series of measurements on a reel that is supposedly problematic with an undulating OD. Using an electronic caliper provided by Geowell, we conducted a series of measurements of the OD of the wire The result is an OD measurement of 0.1080.00045 or a breaking load of 2,500lb25.21lb Error is within manufacturing error of 0.001

Third issue: Plastic behavior of Zeron100 wire Restatement: wire elongates without recovering original length on tension; indication of poor quality Premise: Break load testing methods are normal and common; equipment used to test is approved Wire elongates plastically without returning to original length under load Conclusion: Tested wire had already broken at rope socket but was undiscovered Subsequent elongation was due to wire being pulled out of rope socket Cup-cone break-ends of wire indicates wire is of good quality

What is elasticity and plasticity? Elasticity: when a material behaves elastically like rubber On tension an elastic material will elongate proportionately with tension On release of tension, an elastic material will retain its original length Plasticity: when a material does not behave elastically On tension beyond the elastic limit, a material will begin to act plastically The subsequent increase in tension will not result in proportional elongation of length On release of tension, the material will not return to its original length Plastic return of length x (plastic elongation)

Findings Most findings conclusively attest to the quality of Zeron100 Thinning on recent sand bailing activity is not yet examined and as yet outside of our scope of control Thinning is akin to mechanical erosion whereas stress- corrosion-cracking is a form of chemical erosion (or commonly called corrosion) Problems that have occurred to not seem to be due to the quality of the material or drawn wire

Recommendations Shorter runs-between-cut/test cycles Closer surface inspection for scratches and large reductions in OD of wire between run-cycles Wilco have been recommended to: Check for well schematic Check for nipple or SSD profiles, kick-offs, deviation angles, etc. that may lead to high forces of friction Request more supporting information from OC and SP Provide continued support to OC and SP

Example: Chevron wire thinning WI/125xx; max pull: 1,350lb; on reel: 21,115'; 271 runs Mobilized in November 2007 25,000ft ZERON100, 0.125 WI/125xx; max pull: 1,500lb; on reel: 18,545'; 258 runs Mobilized in March 2009 20,000ft ZERON100, 0.125

Example: Chevron wire thinning Chevron runs in the northern and southern offshore fields 20,000+ runs per year Typical measured depth of wells: 14,000-16,000ft Typical ordered slickline: ZERON100, 0.125 Typical ordered length: 20,000ft Typical service company junk length: Remaining on drum 1.5 x Well MD Shows great belief in their program and our wire

Surface information Surface information History Work history Technical information Technical information Material data sheets Material data sheets Test certificates (private access) FirstLook Calculator FirstLook Contact point http://www.wilcowirelines.com http://www.wilcowirelines.com

Wilco Oilfield Services Pte. Ltd. (estd. 1982) No. 9, Kaki Bukit Road 3, East Point Terrace, Singapore 417829 Tel: +65(6)482-3666; Fax: +65(6)482-4782 Visit us at: www.wilcowirelines.comwww.wilcowirelines.com Email us: [email protected]@wilcowirelines.com For a full technical presentation, please contact us. Focus group: well & production engineers

ADAPTED PRESENTATION Date: 24 November, 2009 (Week 48) Location: PCSB Kerteh HQ Iain Rei Technical Director.

Documents

reel wire

moving wire

tested wire

approved wire

hand wire

new wire od

wire supplier ws

good quality slide