Shell and Enventure Successfully Apply Groundbreaking Well Design Technolog

Shell announced the successful completion of the world's first application of MonoDiameter technology at one of its well locations in South Texas. The well utilizing this breakthrough technology was spud on May 18 in Starr County, Texas. A collaborative effort between Shell Exploration & Production Company, Shell International Exploration & Production Inc. and Enventure Global Technology, the well is a flowing gas producer that was drilled and completed with a perfect safety record.

This new technology eliminates the telescoping effect in current well design, allowing operators to slim down the top of the well while increasing the well diameter at total depth, creating the "Big Straw" system through which to flow hydrocarbons from subsurface reservoirs. Should unexpected problems arise during the drilling of a well, this process provides the operator with a much greater capability of reaching its targeted reservoir with a casing size that will enable reservoirs to produce at their full potential.

"This is another milestone in Shell's history of developing cutting edge technology in the oil and gas industry. It is a major step in a journey that should culminate for SEPCo in the application of this well design in the deepwater Gulf of Mexico next year. We expect this revolutionary process to do for well design what 3-D seismic did for geologic exploration and hydrocarbon development," said SEPCo President and CEO, Raoul Restucci.

John Darley, director of Shell Technology Exploration and Production, added, "Because of the vision and focus of the teams that collaborated on this project, we were able to shorten the implementation cycle time five years ahead of schedule -- from 2007 to today. This technology allows the industry to drill deeper than ever before and reach previously unattainable geological objectives, while decreasing waste products and reducing the surface footprint. Additionally, we expect to cut costs and increase production rates."

"We fully expect the technology to be ready to take offshore by the 4th Quarter of 2003," said Lance Cook, president and CEO of Enventure Global Technology. "Backed by two parents like Halliburton and Shell, the success of Enventure and MonoDiameter technology is virtually guaranteed for the industry as a whole."

MonoDiameter well design uses Solid Expandable Tubular technology to create one continuous internal diameter from surface to total depth. SET is made of standard tubular steel that is subjected to a special process to increase the ductility, reduce defect sensitivity and increase fracture toughness. This proprietary process allows the steel pipe to be permanently deformed in the well bore, analogous to performing the final manufacturing process of the tubular downhole.


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