Shell Canada Optimizes Production with WellDynamics' Fiber Optic Technology

Business Wire, April 7, 2008

WellDynamics' OptoLog DTS HT Fiber Is Catalyst to SAGD Market Adoption of DTS Technology

HOUSTON -- WellDynamics, the leading provider of intelligent completion technology to the upstream oil industry, today announced that Shell Canada has successfully deployed WellDynamics' OptoLog[R] DTS HT fiber optic system to profile temperatures in 18 wells in its Alberta, Canada, Orion field. The distributed temperature sensing (DTS) technology has been installed in 10 producer wells with average vertical depths of 420 meters and total lengths of 1,375 meters, operating at average temperatures of 240o C (464o F), and in eight observer wells with an average depth of 450 meters. The system has been in operation since September 2007.

Using the OptoLog DTS HT system, Shell Canada monitors extreme temperatures in producers and/or injectors in real time in order to confirm uniform temperature front establishment in the injectors, as well as hydrocarbon sweep in the injected steam from the injectors to the producers. Results have displayed no drift to date.

The OptoLog DTS HT system is designed for high-temperature applications - such as steam-assisted gravity drainage (SAGD) or steamflooding - that produce severe downhole conditions that render most optical fibers ineffective. The unique single-mode fiber used in the OptoLog DTS HT system is able to withstand harsh environments, and reduces to negligible levels the effects of hydrogen-darkening that can occur with carbon-coated multi-mode fiber.

"The temperature data provided by the OptoLog DTS HT system can help Shell Canada to rapidly identify problems such as unexpected steam breakthrough, cooling, or deterioration of the efficiency of the steam front at particular intervals," said Michael Konopczynski, vice president, Technology and Marketing, WellDynamics. "This important information can then be transmitted in real time, throughout the company, so that decisions can be made in time to impact well production."

The Shell Canada installation comes after a successful single-well test project begun in 2006 by WellDynamics for Japan Canada Oil Sands Limited (JACOS). For over 19 months, temperature profiles from that well have continuously demonstrated excellent fiber performance at temperatures between 250o C (482o F) and 300o C (572o F). These successful installations are a strong indication of the growing importance of DTS technology in the SAGD market and confirmation of WellDynamics' leading position in both reliability and stability of fiber optic systems at these temperatures.

In addition to OptoLog DTS systems, WellDynamics' SmartWell[R] intelligent completion technology includes solutions for flow control, zonal isolation, permanent monitoring and downhole control, and digital infrastructure, as well as reservoir management studies.

For Editors

WellDynamics, a joint venture company of Halliburton International, Inc., and Shell Technology Ventures Fund 1 B.V. (managed by Kenda Capital B.V.), is the world's leading provider of intelligent completion technology to the upstream oil industry. WellDynamics' SmartWell[R] technology, introduced in 1997, was the industry's first intelligent well completion system. Today, the company offers a broad complement of products and services that range from reservoir engineering studies to advanced completion design, zonal isolation and flow control, reservoir monitoring, fiber optic and surface digital infrastructure solutions.

Visit the WellDynamics website at www.welldynamics.com.