• Author / Uploaded
• Juan Gabo

Citation preview

Headquarters 16740 Hardy Street Houston, Texas 77032 (800) 877-6484 Phone: (281) 443-3370 Fax: (281) 233-5190 www.smithbits.com

2008 Smith International. All Rights Reserved. Printed in the U.S.A. 04/08 SS01-3046

Source: Hart’s E & P Magazine

3

OFM

DGJ

3 1 2 3 1 2 3 4

DTJ

2

1

DSJ

SMITH

R7

DR5

R3

R1

Steel Tooth Bits A measure of lost tooth height due to abrasion and/or damage 0 - No Loss of Tooth Height 8 - Total Loss of Tooth Height Insert Bits A measure of total cutting structure reduction due to lost, worn and/or broken inserts 0 - No Lost, Worn and/or Broken Inserts 8 - All Inserts Lost, Worn and/or Broken Fixed Cutter Bits A measure of lost, worn and/or broken cutting structure 0 - No Lost, Worn and/or Broken Cutting Structure 8 - All of Cutting Structure Lost, Worn and/or Broken

In columns 1 and 2 a linear scale from 0 to 8 is used to describe the condition of the cutting structure according to the following:

Outer Cutting Structure (2) (Gauge Row Only) (For fixed cutter bits, use the outer 1/3 of the bit radius)

Inner Cutting Structure (1) (All Inner Rows) (For fixed cutter bits, use the inner 2/3 of the bit radius)

Y13

Y11

ReedHughes Christensen Hycalog

IADC DULL BIT GRADING

Hard, SemiAbrasive Formations

2

Soft Formations/ LowCompressive Strength

FORMATIONS

Med. to Med.-Hard Formations/ HighCompressive Strength

1

Source: EnergyPoint Research, Inc. *BC BF BT BU *CC *CD CI CR CT ER FC HC JD *LC LN LT

XN5

XN4 M4N

XN3

XN1

Security DBS

-

GTX-3

GTX-1

Security DBS

Broken Cone Bond Failure Broken Teeth/Cutters Balled Up Bit Cracked Cone Coned Dragged Cone Interference Cored Chipped Teeth/Cutters Erosion Flat Crested Wear Heat Checking Junk Damage Lost Cone Lost Nozzle Lost Teeth/Cutters

SVH

GGH+ MSDGH

XR+ GSSH+ TCTi+

* Show cone number(s) under location (4)

OC - Off Center Wear PB - Pinched Bit PN - Plugged Nozzle/Flow Passage RG - Rounded Gauge RO - Ring Out SD - Shirttail Damage SS - Self Sharpening Wear TR - Tracking WO - Washed Out Bit WT - Worn Teeth/Cutters NO - No Dull Characteristics

Roller Cone N - Nose Row M - Middle Row G - Gauge Row A - All Rows Cone # 1 2 3 Fixed Cutter C - Cone N - Nose T - Taper S - Shoulder G - Gauge A - All Areas

Location (4)

Location 4

GTX-G3 MAX-GT3 MX-3

GTX-G1 MAX-GT1 MX-1 MXL-1 MXL-1V

Hughes Christensen

Gauge 6

Other Dull Char. 7

ATJ-4

H77F

M44NF

XSC2

XS1 XSC1

Reason Pulled 8

HP13

HP12

HP11

Security DBS

Non-Sealed Bearings A linear scale estimating bearing life used 0 - No Life Used 8 - All Life Used, i.e., no bearing life remaining Sealed Bearings E - Seals Effective F - Seals Failed N - Not Able to Grade X - Fixed Cutter Bit (Bearingless)

Refer to column 3 codes

ATJ-G8

ATJ-G4

MX-3

GT-1 MX-1 MXL-1 MXL-1V STR-1 STX-1

Hughes Christensen

HP21G

HP13G D13

SL12, HP12

TC10 TC11 SL11 TD11 D11

ReedHycalog

BHA DMF DTF DSF DST DP CM CP FM HP LIH HR LOG PP PR RIG TD TW TQ WC -

Change Bottom-Hole Assembly Downhole Motor Failure Downhole Tool Failure Drillstring Failure Drill Stem Test Drill Plug Condition Mud Core Point Formation Change Hole Problems Left in Hole Hours on Bit Run Logs Pump Pressure Penetration Rates Rig Repair Total Depth/Casing Depth Twist Off Torque Weather Conditions

XS4 XL3

XS3 XL3

XSC1 XLC1 EBXS1 EBXSC1 EBXLC1

Security DBS

Reason Pulled or Run Terminated (8)

GFVH FVH

MFDGH FDGH

XR+ FDS+ TCTi+

SMITH

7. SEALED FRICTION BEARING GAUGE PROTECTED

SMITH BITS

Other Dull Characteristics (7)

Measure to nearest 1/16 of an inch I - In Gauge 1 - 1/16” Out of Gauge 2 - 2/16” Out of Gauge 4 - 4/16” Out of Gauge

FDT

FDS

ReedHughes Christensen Hycalog

6. SEALED FRICTION BEARING SMITH

Gauge (6)

XT4 XT4S

XT3 EBXT3

XT1 XT1S XL1N

Security DBS

Bearings / Seals (5)

Bearings/ Seals 5

T13 EMS13G ETS13G

T11 EMS11G ETS11G

ReedHycalog

5. SEALED ROLLER BEARING GAUGE PROTECTED SMITH

Cutting Structure Outer Dull Char. 2 3

ReedHughes Christensen Hycalog

Dull Characteristics (3) (Use only cutting structure related codes)

Inner 1

MGG

SDS

SMITH

4. SEALED ROLLER BEARING

For the ninth consecutive year, Smith Bits added to its longstanding position of industry leadership by once again being recognized as the holder of the most World Records for Drill Bit performance.

1. STANDARD ROLLER BEARING

Smith Technologies offers a unique combination of engineering innovation; world-class products with unsurpassed performance; and personal, highly responsive service. We are passionately committed to providing our customers a superior solution to their most challenging drilling applications.

MILLED TOOTH

Smith was rated #1 in customer satisfaction among all integrated service providers in the recent EnergyPoint Research, Inc. survey of operators.

Rock Bit Comparison Chart

As the oilfield has grown and changed, so has Smith Technologies. From the opening of Herman Smith's blacksmith shop in Whittier, California in 1902, to the global presence of our operations today, the evolution of Smith Technologies has paralleled the growth of the energy industry world wide.

Series

Our ultimate goal is to provide solutions that drive down the cost of drilling your well. Whether the application calls for a Smith Bits roller cone, PDC, diamond impreg, natural diamond, or percussion drill bit; a Smith Neyrfor turbodrill; the expertise of our Advanced Services Engineers; or the sophisticated simulation analysis of i-DRILL, Smith Technologies delivers proven solutions that will get the job done in the most cost effective manner possible.

Types

At Smith Technologies, our success is due to an unrelenting focus on three critical elements of our business: People…Technology…Results. Our people are dedicated to providing the highest level of service and technical support. Our technology leads the industry in drill bit design, materials science and quantitative drilling application tools. And our results consistently confirm Smith Technologies' superior performance and value.

Table of Contents ®

IDEAS Technology

1-4

Applied Technology

5 - 11

Turbodrills

52 - 55

BoreHole Enlargement

56 - 63

Percussion Hammers & Bits

64 - 69

®

i-DRILL Drilling Simulation Analysis § § Advanced Services Engineering - ASE ®

§ Drill Bit Optimization System - DBOS § YieldPoint

® ™

§ Drilling Record System - DRS

Fixed Cutter Bits

12 - 31

™

ARCS PDC Bits §

®

§ IMPAX Percussion Hammers § IMPAX® Percussion Bits § DIGR™ Percussion Bits

Reference Tools

70 - 84

§ Total Flow Area Chart

™

§ SHARC PDC Bits ®

§ Drill Collar Specifications

™

§ Measurement Units & Drilling Formulas

§ VertiDrill PDC Bits § Shaheen PDC Bits § Kinetic Diamond Impreg Bits

§ Buoyancy Factor

§ Standard PDC Bits

§ Fixed Cutter Bit Nozzle Installation

§ Natural Diamond Bits

§ 6-5/8” API Pin Restictor Nozzle

§ PDC Cutter Technology

§ Fixed Cutter Bit Make-Up Torque

§ Insert Technology

§ Fixed Cutter Bit Field Operating

™

§ Computational Fluid Dynamics - CFD

Procedures § Maximum Cone Dimensions

§ Optional Features § Fixed Cutter Nomenclature

§ Roller Cone Bit Make-Up Torque/Nozzle

Types

Roller Cone Bits

32 - 51

§ FH ®

§ Gemini

®

§ Shamal Typhoon ®

§ Shamal

TNG

®

§ XPlorer

®

§ XPlorer Expanded ™

§ TCT - Two-Cone Technology Roller Cone

Bits § Standard Products § Flex-Flo™ Hydraulics § Typhoon™ Hydraulics § Insert Technology § Optional Features § Roller Cone Nomenclature

§ Roller Cone Bit Comparison Chart

®

IDEAS Technology IDEAS Technology Ensures a Better Solution. The First Time, Every Time. The Smith Bits division of Smith Technologies developed the IDEAS (Integrated Dynamic Engineering Analysis System) bit design platform to serve a drilling industry that continues to push drill bit manufacturers for application-specific bits, increased performance and greater reliability. The IDEAS design platform is a revolutionary leap forward in truly understanding the rock/cutter interface in a dynamic drilling environment where every individual element of the bottomhole assembly is considered. Every new Smith Bits roller cone and PDC drill bit is developed and certified through the IDEAS bit design process. The IDEAS drill bit certification process not only results in designing and producing better bits more quickly, but also significantly reduces the level of risk for oil and gas companies. The original objective of IDEAS was to produce improved bit designs while significantly reducing product development cycle time. IDEAS technology has met the original objective and, in the process, has delivered a whole lot more. With the development of the IDEAS certification process, Smith Bits design engineers now have the unique ability to rigorously evaluate and test changes to a bit design in a matter of hours or days rather than weeks or months. The IDEAS analysis considers all of the downhole components when evaluating the best bit design for the highest performance, including drillpipe, hevi-wate drillpipe, MWD/ LWD tools, reamers, stabilizers and whether an operator is utilizing a push-the-bit or point-the-bit rotary steerable system. When Smith Bits completes the bit design and analysis, the customer receives a specific recommendation of the optimal bit as the best solution for the objective. After a bit has been designed in IDEAS, the same rigorous modeling technology can be used to provide a detailed applications analysis of how the bit will perform for a specific drilling program. Each customer is given an in-depth analysis of the bit or bits evaluated, a description of the drill string and its components, proposed operating parameters and the formations to be drilled, and precise performance projections. Among the data provided to the customer, in addition to the bit analysis, are graphs illustrating the specific BHA configuration modeled for the well, bit bottom hole pattern, bit center trajectory, weight on bit, lateral forces and lateral accelerations.

IDEAS’ Five Basic Elements There are five basic elements to the bit design and performance advantages provided by IDEAS. •

Comprehensive drilling system analysis: The IDEAS certification process includes examining the designed bit performance in relation to the entire drill string and individual BHA components. It also takes into account the specific operating parameters and interaction of the individual elements of the entire drilling assembly.

•

Holistic design process: Smith Technologies design engineers account for every critical variable to assure that IDEAS-designed bits are optimized for performance. With the insight to bit performance provided by IDEAS, virtually every cone or cutter layout and configuration is designed to result in a stable bit that rotates around its center, the key to an efficient, optimized drilling operation.

1

®

IDEAS Technology IDEAS Technology Ensures a Better Solution. The First Time, Every Time. •

Application-Specific Enhancements: As a result of the drilling system analysis and holistic design process, IDEAS certified bits include performance enhancements specific to the application for which it is designed. This results in bits that consistently outperform previous designs when measured against the same parameters and objectives, including, for example, improved rate of penetration (ROP), durability, or specific bit behavior when utilized with a rotary steerable system. IDEAS certified bits are consistently dynamically stable within the operating envelope for which they are designed, resulting in longer bit runs and less stress on the BHA, which ultimately results in improved bit durability.

•

Rapid Solutions with Reliable Results: By using sophisticated modeling tools and accounting for a multitude of dynamic variables in a virtual environment, IDEAS certified bits move through the design stage much more quickly and with a greater level of reliability and performance than ever before. The IDEAS modeling capability removes the trial-and-error approach previously associated with designing drill bits by using laboratory tests to quantify variables such as cutter forces and rock removal rates. The IDEAS process can prove the efficacy of the drill bit design before moving to field trials, ensuring that drill bits that move to the field trial stage are true candidates for the application for which they were designed.

•

Optimized Integration of Advanced Materials: The IDEAS process also allows Smith Bits to more effectively employ advanced cutter materials. Stronger and more durable materials work in conjunction with IDEAS design and simulation capabilities to deliver a bit that is more than just correcting a design for weak and high-wear areas. The result is a bit with an optimal design for high performance and abrasion and impact resistant cutters.

Because the IDEAS process avoids the costly and time consuming trial-and-error requirements of the traditional drill bit design process, Smith Bits can deliver a better solution, faster.

2

®

IDEAS Technology IDEAS® Technology Ensures a Better Solution. The First Time, Every Time. Conducting virtual case studies The IDEAS process certifies the performance capabilities of each bit design through a dynamic simulation and modeling methodology that takes into account the lithology at the rock/ cutter interface, the drill string, the drive system, the BHA and the total system's influence on the bit's behavior. The IDEAS process begins with bit performance data, geological information, BHA details and dull bit analysis. With this data, actual laboratory rock/cutter tests are devised and carried out. The laboratory data from IDEAS quantifies the actual cutter forces and rock removal rates, compared with other bit design tools that only estimate rock/cutter behaviors. This information is then used for the design analysis in lithologies that compare to the particular field application for which the bit is being designed. The IDEAS design platform incorporates the quantitative understanding of rock chip generation and removal, for each individual cutter, into a dynamic model of the total drill string, from the BHA to the surface drive mechanism. When the actual rock/cutter data is obtained, it is integrated into a full bit design

model

to

determine

the

characteristics of the bit in actual drilling conditions. The virtual case study quantifies the effects of design changes in roller cone and fixed cutter bit profiles, gauge lengths, cone offsets for roller cone bits to determine bottom-hole patterns and bottom-hole forces. These parameters are examined in a fully dynamic simulation model where bit influences are identical to those encountered in the actual drilling environment. The model analyzes rock/cutter interface, BHA configuration, drill string behavior, directional response, dynamic analysis of projected bit behavior, and how changes in operating parameters affect bit performance. This data set allows the design engineer to fine-tune the bit for a particular field application based upon the desired objectives such as ROP, footage to be drilled, enhanced durability or specific directional behavior for use with rotary steerable systems. The result is a drill bit that is dynamically stable within the operating and application parameters for which it is designed, contributing to longer life, faster ROP and increased reliability for downhole electronics. Optimized parameters can be maintained for faster, longer bit runs with less stress on the BHA and rig equipment.

3

®

IDEAS Technology IDEAS Directional Certification of Fixed Cutter Bits Improves Performance, Reduces Risk and Keeps Directional Wells on Target. The IDEAS Directional Certification process can account for the specific attributes of every different type of rotary steerable system and accurately predict bit performance in any directional application, allowing Smith Bits engineers to design fixed cutter bits that are dynamically stable across a range of demanding directional applications . IDEAS bit designs are developed using highly sophisticated simulation software, which accurately models the total drilling system, from where each individual cutter contacts the formation, through each component in the BHA, all the way up to the surface drive mechanism. Additionally, with IDEAS, all the different types of rotary steerable systems can be accurately modeled individually. By using IDEAS technology, it is possible to precisely model and predict how several different IDEAS bit designs will perform in specific formation types, with a specific rotary steerable system, specific operating parameters and a specific bottom-hole assembly configuration. It's like having the opportunity to drill the same interval multiple times with different bits and then being able to pick the best one for the application. Extensive IDEAS Directional Certification analyses ultimately provided an extremely important revelation: a single bit design can, in fact, provide exceptional drilling performance when used with a range of different types of directional drilling systems, provided the bit has been designed to remain dynamically stable. The use of IDEAS to analyze conventional directional bit designs has revealed that, in many instances, the range of special directional features incorporated into older conventional bits serve as little more than a crutch that allows a basically unstable bit design to drill acceptably in a specific directional application. However, when this bit is subsequently used with a slightly different BHA or in a different application, its unstable character is revealed thus requiring a new or significantly modified bit to again compensate for the inherent instability of the design under the new conditions. With IDEAS, a bit designer no longer needs to focus on stabilizing an unstable bit design, and instead the designer can concentrate more on optimizing the blade count, cutter selection, cutter layout and hydraulic configuration to make the bit drill faster and last longer. In general, directionally certified IDEAS bits can have reduced blade counts, larger diameter PDC cutters and lower back rake angles relative to conventional directional bits. The large diameter cutters establish full bottom-hole coverage, generate higher loads per cutter, and provide greater depth of cut to maximize ROP. All of these characteristics are matched to the drillability characteristics of the different formations and specific lithologies. IDEAS bits are directionally certified to remain stable and provide superior performance with different types of steering systems in a wide range of applications, reducing risk of suboptimal performance should it become necessary to change the system configuration, operating parameters or something else due to unforeseen developments. Also, experience has shown that drilling with a stable bit not only reduces drilling costs, it also provides a smoother, high quality wellbore. IDEAS Directional Certification fixed cutter bits keep directional wells and drilling budgets on target.

4

Applied Technology Eclipsing All Other Drillstring Analysis Programs i-DRILL 4D modeling predicts a drilling system's performance and behavior using detailed geometric input parameters anticipated operating parameter ranges, extreme computing power, finite element analysis and labderived rock mechanics data. i-DRILL provides a unique approach that allows a complete drilling system analysis instead of the common practice used in the past of assuming bit-effect factors. i-DRILL provides clients with the opportunity to eliminate the costly exercise of learning through trial-and-error. By utilizing a time-based model with six degrees of freedom, the 4D modeling accurately predicts the vibrations and accelerations often seen to have detrimental effects on directional control, tool reliability, drill string integrity and drilling performance. The ability to pinpoint the sources and effects of torsional, axial, and lateral oscillations enables drilling engineers and directional drillers to quantify design changes to the drillstring configuration and optimize parameters. bending

stresses

and

Excessive

buckling

are

commonly seen as major contributors to downtime. i-DRILL provides an in-depth understanding

of

a

drilling

system's

integrity, achieved by evaluating bending moments in two directions.

Directional

tendencies are predicted by examining the forces generated by bit-rock interaction with the dynamic effect of the entire drillstring. chance

i-DRILL

to

focus

gives the client the on

any

discrete

component of the drillstring to evaluate and understand that specific component's contribution to overall performance. The virtual world meets real world through the coupling of rock mechanics lab data with

highly

advanced

proprietary

software. Heterogeneous formations and transitional drilling can be modeled and combined with benchmark outputs such as torque & drag and critical speeds. i-DRILL’s extensive tool portfolio includes the differentiation between push- and point-the-bit rotary steerable systems, concentric and eccentric reamers, positive displacement motors, hole openers, and roller reamers, just to list a few. i-DRILL delivers to the energy industry the tremendous potential to change the way wells are drilled in the future, and it is yet another example of SMITH being at the forefront of drilling technology development.

5

Applied Technology Advanced Services Engineering Smith's technology and engineering expertise in customers' offices Measurable results are what matter most to the operator, and Smith Technologies Advanced Services Engineering (ASE Organization) has built an impressive track record of lowering operators’ drilling costs through improved drilling performance by recommending the ideal bit for the application. Smith Bits' Advanced Services Engineering (ASE) is an independent applications organization within Smith that provides expert drill bit selection and well planning engineering to its customers. ASE engineers become an integral part of customers' drilling teams, recommending the correct drill bits to optimize performance and reduce the operators’ drilling costs. Objectivity is the fundamental principle of the ASE program. Bit recommendations by Smith Technologies ASE engineers are always based upon the best product for the specific application regardless of the drill bit manufacturer. No one company makes the ideal bit for every application and ASE engineers will recommend a competitor's bit where it is appropriate.

Providing expert drill bit selection The Smith Technologies ASE program provides a highly experienced bit application specialist to a customer's drilling team to generate objective bit recommendations and advise both the operator and Smith on day-to-day requirements for maintaining superior bit performance. ASE engineers consider the entire drilling environment, including formation, the components of the BHA, drilling fluids, rig capabilities, rig crew and any special drilling objectives in their process of finding an optimum bit and then maintaining its efficiency throughout the bit's life. The ASE engineer is also armed with several Smith Technologies proprietary tools, such as Smith Bits' Drilling Records System™ (DRS), which includes detailed bit runs from oil, gas and geothermal wells from around the world; the Drill Bit Optimization System® (DBOS), which helps determine the appropriate combination of cutting structure, gauge protection, hydraulic configuration and other bit optimizing features; and Yield Point software for jet nozzle optimization. To establish measurable goals, the ASE engineer prepares a comprehensive well plan that evaluates performance during drilling. Upon completion of the well, a post-well analysis measures the success of the well plan and provides a permanent formal reference for future development wells.

6

Applied Technology Advanced Services Engineering Planning the well The well planning process begins with support from DRS, DBOS and Yield Point software as well as the ASE engineer's own expertise and experience in the field of drill bit applications around the world. Utilizing the knowledge gained from an analysis of offset wells from the DRS and a spectrum of other relevant information, the DBOS program is used to begin preparing the well plan. The DBOS analysis begins with a thorough reconstruction of expected lithologies gleaned from well logs from the closest offset wells and includes a formation analysis, unconfirmed rock strength analysis and both roller cone and fixed cutter bit selections. Operational needs and the well plan are added, including casing points and hole sizes, well directional plot, expected formation tops, and mud weights and types. The result is an optimized minimum cost per foot program, often with multiple options and alternatives. Smith's Yield Point software creates a graphical user interface to aid drilling engineers in specifying mud types and properties to satisfy rheological models of drill strings and well annuli. Yield Point can answer questions about hole cleaning using data from the formations to be encountered. Utilizing a cuttings transport model, the software can be used to assess potential hole-cleaning problem areas during the well planning stage rather than encountering problems during actual drilling operations. The appropriate rig and office personnel are briefed on the drilling program and monitor the well prognosis during implementation of the well plan. Any problems that arise are identified and investigated, and decisions are made to correct the issues, subject to the objective of maintaining peak drilling efficiency in a safe and timely manner.

Post Well Analysis A thorough performance assessment is conducted upon completion of the well, which evaluates every facet of the drilling operations. The drilling team, including the ASE engineer, makes recommendations for improvements that will be incorporated into future well plans. Smith's ASE program and its objectivity provide value to Smith's customers by recommending the best bit for the specific application and, in turn, provide the most efficient and economical drilling solution to the customer.

7

Applied Technology Drill Bit Optimization System DBOS™ delivers a better bit program for achieving lower cost per foot drilled. The Smith Bits’ DBOS (Drill Bit Optimization System) service can deliver the minimum cost per foot with a higher degree of certainty and reduced risk by identifying the best bit, from the vast Smith Bits portfolio, to match the physical characteristics of the interval to be drilled. DBOS is a software-based process which identifies the Smith fixed cutter or roller cone bit that has the appropriate combination of cutting structure, gauge protection, hydraulic configuration and other features needed to achieve the lowest cost per foot drilled for the operator. The DBOS service incorporates a thorough analysis of offset well data including well logs, formation tops, mud logs, core analysis, rock mechanics, drilling parameters, bit records and dull bit conditions. The software tools use a geologic mapping program, well log correlation and analysis software, and proprietary Smith Bits algorithms for rock compressive strengths, bit performance analysis and bit selection. The DBOS service is highly flexible, allowing Smith Bits engineers to analyze various levels of information and deliver a bit strategy based on input from, for example, a single offset well, a multi-well cross section, or a full field mapping and regional trend analyses. The DBOS service has been offered for over 15 years, creating a supporting database containing records from more than 8,750 projects in 56 countries, encompassing more than 12,500 wells. Operators around the world have attributed significant savings in drilling time and cost to use of the DBOS service.

The DBOS evaluation process The process begins with an evaluation of the expected formation types that may be encountered in an interval and their associated section lengths. Data are obtained from offset well logs. DBOS then determines unconfined rock compressive strength, effective porosity, abrasion characteristics and impact potential. The rock properties will help identify one or more potentially optimal bit types and DBOS identifies various applicable bit characteristics based on its analysis. Hydraulic configuration, cone layout, insert type, gauge protection, cutter type and diameter, blade profile and cutter density are examples of bit characteristics that are evaluated. DBOS also predicts cost per foot that each bit will achieve and makes recommendations for the bit type with the minimum cost per foot. Various levels of the DBOS service are offered and, for each level, DBOS data are presented graphically to customers in a log plot form called a Bit Performance Analysis (BPA). The parameters include bit record information, directional surveys, real-time ROP and mud log data, rock type and strength data, and hydraulic and mechanical energy factors, among other information. The BPA evaluates key bit performance variables over the given drillability intervals, identifying which bit type would be the most successful for drilling through particular single intervals or over multiple intervals. Following the well, post-run analyses evaluate bit performance from available data such as real-time ROP, weighton-bit, RPM, torque, dull bit conditions and other parameters. The results of this analysis provide design and application engineering feedback for continuous improvement.

8

TM

Applied Technology

®

®

Yield Point Hydraulic Analysis Optimized hole cleaning with Yield Point solutions Smith Technologies developed the Yield Point drilling hydraulics and hole cleaning simulation program to aid drilling engineers in specifying mud type and mud properties to satisfy rheological models of drill strings and well annuli. Yield Point can identify potential hole cleaning problems in the planning stage rather than during drilling operations when problems can affect the cost of the well. This comprehensive drilling hydraulics and hole cleaning optimization program uses sophisticated algorithms to deliver solutions for conventional jet nozzle optimization and selection. After initialization data is input, Yield Point creates simulations of mud properties, flow rates, rates of penetration and total flow area. The virtual model then demonstrates the respective effects on observed bit hydraulic factors and on hole cleaning.

Yield Point RT for real-time assessment Smith's most advanced version of the Yield Point platform is Yield Point RT. It uses WITSML (well site information transfer standard markup language) capabilities that enable a customer's well data to be linked directly to Yield Point RT. The data can be analyzed virtually in real time, resulting in recommendations for the operator that can be implemented immediately. Hydraulics can be optimized to maximize efficiency as the well is being drilled. By linking a customer's well data directly to Yield Point RT, the virtual model can include data from numerous contributors. Using the WITSML defined standard and any common Internet connection, virtually all information created at or around a well site can be transferred to a common WITSML data store for further retrieval and use by authorized parties, beginning with the well operator and including various vendors and service providers that contribute their data.

Data Input to Yield Point Wellsite providers, as well as off-location users, can input and retrieve data from Yield Point via an Internet connection. These include drilling contractors, mud loggers, rig instrumentation and wireline companies, drilling fluid service companies, casing running services and directional drillers. Operator personnel can include, drilling and exploration engineers and managers, reservoir engineers and management personnel. Other service providers include seismic survey companies, process optimization consultants and materials suppliers. Wellsite service providers can contribute expertise to the common store via the WITSML interface, and then query the data store for combined information from other wellsite services. Their information can support programmatic analysis, visualization and potential corrective actions, and influence decision making in drilling and production operations. Operating company personnel can compile information from any mix of vendor sources, can view and monitor current wells via web-based applications and can extract reports at any time. The result is a real-time solution that yields substantial cost savings to the customer.

9

Applied Technology Drilling Record System™ DRS Offers the Industry's Best Library Of Bit Run Information The Smith Bits Drilling Record System (DRS) is a collection of nearly three million bit runs from virtually every oil and gas field in the world. This database was initiated in May 1985 and, since that time, records have been continuously added for oil, gas and geothermal wells. The Smith Drilling Record System (DRS) contains a wealth of information that enables our design engineers to evaluate individual bit runs anywhere in the world.

Armed

with this detailed set of data and the extraordinary capabilities of the IDEAS design system, engineers can simulate bit performance, and make changes to their bit designs to optimize performance in a specific application. In addition to its use as a database for bit design, the DRS system also allows Smith's DBOS (Drill Bit Optimization System) to provide an accurate well plan for a customer to ensure that the right bit is run in a given formation. With this comprehensive plan in place prior to beginning to actually drill the well, our customers are able to reduce risk, lower drilling costs, and shorten the total time required to drill their well. The inclusion of bit record data from your wells in Smith's DRS contributes to better drill bit selection and application for your drilling program. The Smith Bits DRS can be accessed through your Smith Bits Application Engineer or Sales Representative.

10

Fixed Cutter Bits

™

ARCS

Extending the Limits ARCS - Alternating Radius Curvature Stabilization The ARCS concept improves fixed cutter bit performance by re-defining and optimizing the relationships among rate of penetration (ROP), bit stability and cutter durability. This product line is specifically designed to extend fixed cutter limits into geologically demanding applications. All new ARCS designs are IDEAS certified.

ARCS combines multiple sized PDC cutting elements to define a unique cutting structure governed by geometric relationships that optimize bit performance.

Through this use of multiple cutter

sizes, ARCS improves bit stability, ROP and cutter durability.

8-3/4” MAi513MSBPX

ARCS Nomenclature

MA i 5 1 3 Cutter Size (Largest) Blade Count i - IDEAS Certified A - ARCS Technology M/S - Matrix or Steel

Type MA613 MA616 MA619 MA816 MA819 MA913 MA916 MAi513 MAi619 MASi513 *

Size Availability 6-1/8” 5-1/2” - 6-3/4”, 8-1/2” - 12-1/4” 8-1/2”, 12-1/4”, 16-3/8” 8-1/2” 8-1/2”, 9-1/4”, 12-1/4” 5-3/4” - 6-1/8”, 8-3/8”, 8-1/2” 6”, 8-1/2” - 12-1/4”, 15-1/2” 6”, 7-7/8”, 8-3/4” 8-1/2” 7-7/8”, 8-3/4”

* ARCS Sharc Bit

13

™

SHARC

Smith High Abrasion Resistance Configuration SHARC high performance bits for tough formations When drilling hard, highly abrasive formations, Smith Bits SHARC Fixed Cutter bits will survive drilling the target interval without sacrificing rate of penetration. SHARC fixed cutter bits drill faster and stay downhole longer in a time, a critical advantage when rig rates continue to increase and drilling programs become more demanding. Initially proven in the toughest East Texas formations such as the Travis Peak, Cotton Valley and Hosston, and in the Northern Louisiana basins in the ArkLaTex region, Smith's SHARC PDC bits are now achieving superior performance in challenging applications all over the world. The key to achieving both bit durability and maximum ROP is maintaining drill bit stability across a broad range of downhole conditions. SHARC bits are designed using Smith's patented IDEAS process specifically to eliminate vibration, resulting in maximized stability for superior wear resistance. Cutter damage is minimized, meaning drilled footage is maximized and, since sharp cutting edges are retained longer, rate of penetration (ROP) is maintained at a higher level. SHARC bits have the durability to eliminate unnecessary trips, thus saving time and costs for the operator. SHARC bits are available with IDEAS certification or IDEAS directional certification. In early drilling tests, a SHARC design fixed cutter bit drilled 36% more footage than a conventionally designed bit under similar conditions. Both bits were run until their cutters reached 1-1 dull grade wear flat. At the end of the runs, the SHARC design bit drilled 1,050 ft compared to 732 ft for the conventionally designed bit. These early results have been substantiated by numerous real world performance comparisons documenting the ability of dynamically stable SHARC bits to out-drill the competition.

Drilling abrasive formations Smith Bits has developed cutters that complement the SHARC design's capability for drilling abrasive formations. The latest technologies in materials, diamond interface design and manufacturing processes are utilized to deliver significantly more wear resistance than cutters run in conventional applications. Like a shark's multiple rows of teeth, SHARC's cutting structure layout features two rows of cutters set on certain blades. Each individual row reinforces the other to provide maximum durability over the critical nose and shoulder areas of the bit, ensuring that ROP capability is not compromised. Additionally, the bit's double rows of cutters are oriented to ensure that hydraulic cleaning and cooling efficiency are maintained. This feature is important not only in abrasive interbedded sands but also in fast surface intervals or when hydraulic energy is compromised, for example, on motor runs.

Type

SHARC Nomenclature

MD S i 6 1 9 Cutter Size Blade Count i - IDEAS Certified S - SHARC D - IDEAS Directional Certified M/S - Matrix or Steel

14

14-3/4” MDSi619HBPX

Size Availability

MDSi613 MDSi619 MSi416 MSi513 MSi516 MSi519 MSi611 MSi613 MSi616

5-7/8”, 8-3/4” 14-3/4” 7-7/8”, 8-3/4” 7-7/8” 6-3/4”, 7-7/8”, 8-3/4” 8-3/4”, 12-1/4” 6” 6”, 6-1/8”, 6-1/2”, 7-7/8”, 8-1/2” 6”, 7-7/8”, 8-1/2”, 8-3/4”, 9-7/8” 12-1/4”, 14-3/4”

MSi711 MSi716 MSi816

5-7/8”, 6” 7-7/8” 7-7/8”, 8-3/8”, 8-1/2”, 8-3/4” 9-7/8”, 12-1/4”, 16”

MSi1013

12”

™

VertiDrill

Drill Bits for Maintaining a Vertical Trajectory VertiDrill bits maintain a vertical profile in faulted and fractured formations without using costly active steering systems. Smith Bits' VertiDrill line of fixed cutter bits is designed to maintain a vertical trajectory, or correct wellbore inclination to vertical, while drilling at a high rate of penetration (ROP) through formations with inherent deviation tendencies, without the aid of exotic and expensive active directional steering tools

A vertical wellbore without expensive directional tools Wellbore deviation issues in vertical sections can result from numerous factors; however, they are typically a result of drilling through faulted zones, highly fractured formations and intervals with highly dipped formations. Smith Bits' VertiDrill line of fixed cutter bits maintain a vertical trajectory or can correct wellbore inclination to vertical without expensive directional tools. The tendency to drill vertically, independent of formation effects, is achieved with VertiDrill's uniquely designed cutting structure layout and bit geometry, which create “active” and “passive” cutting zones. VertiDrill has no moving parts to wear out and no seals to leak. Since the VertiDrill can be run on a conventional rotary assembly, vertical sections of the wellbore can be drilled without an expensive directional assembly. Additionally, the bit does not require a vertical drilling system and eliminates trips for well path correction runs. VertiDrill's patented design allows for conventional rotary drilling with the appropriate weight-on-bit (WOB) that produces the best ROP for the bit-formation combination. The bit also provides for very efficient rock removal, resulting in longer life.

How it works With VertiDrill's unique cutting structure and bit geometry, the bit inherently drills towards the low side of the wellbore. In formations with severe dip angles, the bit maintains a vertical wellbore as a result of the active and passive zones of the cutting structure. Formation is drilled as the active zone of the bit engages the low side of the wellbore. As the bit rotates to the high side of the wellbore, the active blade area disengages from the formation and the bit's passive zone is then on the low side of the wellbore. Due to the bit's unique layout and geometry, the passive zone of the bit does not engage the wellbore.

6-1/4” MV613LYPX The result: the VertiDrill bit cuts the wellbore only when the active zone is engaged on the low side of the wellbore. The bit's medium profile length improves side-cutting capability and its increased diamond volume results in enhanced durability in abrasive applications. VertiDrill's relatively shallow cone design minimizes formation resistance in the bit center and prevents the bit from deviating. The bit's plural cutting structure layout optimizes performance in abrasive applications and increases drilling efficiency. The bits can be tailored to optimize performance for a specific application with the number of blades, and the cutter size and density are determined by the application's formation characteristics. Smith's innovative engineering of VertiDrill bits lowers drilling costs by offering a proven alternative to expensive directional drilling systems.

VertiDrill Nomenclature

MV i 6 1 3 Cutter Size Blade Count i - IDEAS Certified V - VertiDrill M/S - Matrix or Steel

Type

Size Availability

MV513 MV516 MV613 MV616 MV716

6-1/8” 6-1/2” 6-1/2” 7-7/8”, 8-3/4” 7-7/8”, 8-1/2”, 8-3/4”, 9-7/8” 11”, 12-1/4”

MVi616

7-7/8”

15

™

SHAHEEN

Consistently Delivering Superior Performance in Difficult -to-Drill Middle East Carbonate Formations Smith Bits developed SHAHEEN PDC bits specifically to swiftly and surely attack hard carbonate formations unique to the Middle East. The Shaheen, or peregrine falcon, is noted for being the fastest bird in the world in terms of its hunting dive, achieving speeds in excess of 320 kilometers per hour. Likewise, SHAHEEN PDC bits have been designed to provide unsurpassed speed in attacking difficult formations. The key to achieving superior performance in the face of the technical challenges posed by

the

difficult-to-drill

Middle

East

formations was Smith's use of IDEAS® - the Integrated Dynamic Engineering Analysis System. By focusing IDEAS, the industry's most advanced and accurate drill bit design system, on the unique lithologies of the Middle East, Smith Bits created the SHAHEEN line of PDC drill bits

SHAHEEN is designed with the specific characteristics required to effectively drill Middle Eastern Carbonates.

that consistently outperform previous PDC bit designs. By using the IDEAS bit design platform, Smith Bits design engineers can certify bit performance in Middle East carbonates without going through the costly and time consuming trial-and-error of conventional bit design processes. Whether the need is for improved ROP, greater durability, or specific directional behavior for today's complex rotary steerable tools, Middle East operators are seeing both increased footage and faster ROP in carbonate formations resulting from the improved dynamic stability of SHAHEEN PDC bit designs. With SMITH, SHAHEEN and IDEAS, you get the winning combination that offers a better, customized Middle East solution - the first time, every time.

Some examples of Shaheen bits include: MSi1016VHBPX SDi616MHUBPX MTi913WUETBPXC MDi716LVPX SSi916HMBPX MDSi613LWBPX

16

™

KINETIC

Diamond Impreg Bits Kinetic diamond impregnated bits set records for ROP and footage drilled. Smith Bits' Kinetic bits are designed for superior performance when drilling at high rotary speeds through the toughest, most abrasive formations. Kinetic bits have established world and field records for most footage drilled and highest rate of penetration (ROP) in numerous regions throughout North America, Latin America, Europe, Africa and the Middle East.

Open face for optimum clearing

Brazed in GHI

Kinetic Bit Configurations Most Kinetic bits use strategically placed premium PDC cutters in the cone area to improve drill-out capability and maximize ROP. The cutters are backed up by the

Cast in GHI

impregnated matrix material for enhanced durability. TSP inserts are positioned on the gauge to ensure that the bit maintains a full gauge hole. In extremely abrasive applications, TSP elements are also placed on the bit shoulder for increased durability and enhanced wear

Dedicated fluid port

resistance in this critical area. The bit designs incorporate innovative new cutting concepts, including increased blade heights that make

Central flow

Application tuned impregnated body material

placements of larger volumes of diamond material possible. This results in increased nose and shoulder durability while retaining solid gauge protection in abrasive applications. Increased blade height translates into more footage drilled than is attainable with conventional impregnated drill bits. Kinetic bits also feature custom approaches to impregnated bit design for the particular drive system being used for a specific application. The bit profile is tailored to optimize performance whether the bit is run with a PDM or turbodrill. A highly efficient hydraulics configuration is also engineered into the Kinetic bit design. The bit uses a combination of center flow fluid distribution and precisely placed ports to enhance bit cooling and to ensure efficient bit cleaning. The Kinetic bit can effectively drill through mixed lithologies at optimal ROP, reducing the need to change bits for the different formations encountered. The result is faster ROP, fewer trips and a lower total cost to the operator.

17

™

KINETIC

Diamond Impreg Bits Proprietary combination of ultra-hard materials Kinetic bits are built with precisely engineered Grit Hot Pressed Inserts (GHI), premium PDC cutters, thermally stable polycrystalline (TSP) diamond and proprietary diamond impregnated matrix materials. Each element is chosen to optimize both durability and ROP. GHI inserts consist of a proprietary combination of natural diamond stones and tungsten carbide matrix powder tailored to specific material properties for the drilling application. GHI uses a proprietary granulation process that ensures a more uniform distribution of the diamond material than is possible in the conventional pelletization process. The resulting more consistent GHI is more durable, maintains its shape and drills faster for a longer period. The individual GHIs are similar to small grinding wheels, taking a very small depth of cut with each bit rotation. They continually sharpen themselves while drilling by grinding away the bonding material to expose new diamonds. Hybrid designs, designated with an “H”, incorporate PDC, natural diamond and TSP material. Kinetic bits can be tailored with different bonding materials and diamonds to match the formation being drilled and the drive system used, making the bits ideal to exploit the higher rotational velocities possible with turbodrills. Because the GHIs are raised to allow a greater flow volume on the bit face, Kinetic diamond impregnated bits are able to drill PDC drillable shoe tracks and improve ROP in a wider range of applications extending the economic application range of the bits. Additionally, Kinetic bits are cost-effective in overbalanced applications where drilling with a conventional fixed cutter or roller cone bit results in low ROP and reduced footage.

7-7/8” K705BPX 6” K505TBPXX 6-1/2” K507TBPXC

High performance when combined with turbodrills Because of the inherent power and longevity advantages that a turbodrill has over a PDM, which incorporates elastomers in the power section, the Kinetic bit delivers particularly high performance when combined with Smith Neyrfor's turbodrill. The bit's extended gauge, in conjunction with the stability of the turbodrill, generates superior orientation capability; excellent hole quality with API Class hole geometry; elimination of hole spiraling; reduced parasitic rotary torque; and improved hole and log quality. The turbodrill features a bit-shock dampening hydraulic system and bit optimization without sacrificing directional control. For drilling the hardest, most abrasive rocks in the world, let the record show that there is no better combination than a Smith Bits Kinetic diamond impreg bit run on a Smith Neyrfor turbodrill.

Kinetic Nomenclature

K H 5 0 3 Profile (3 = Round, 5 = Medium Parabolic, 7 = Long Parabolic) Product Line Iteration Blade Density (1 = Heavy, 9 = Light) H - Hybrid Cutting Structure K - Kinetic Line

18

Type

Size Availability

K503 K505 K507 K703 K705 K707 KH613 KH813 KH1013 KH1213

4-1/8” - 12-1/4” 3-3/4”, 6”, 6-1/8”, 14-3/4” 6-1/2”, 8-3/8”, 8-1/2”, 8-3/4”,12-1/4” 4-1/2” - 8-3/4” 6” - 12-1/4” 6”, 6-1/2”, 8-1/2” 6” 8-3/8”, 8-1/2”, 12-1/4” 8-1/2” 14”

Standard PDC Bits Matrix & Steel Fixed Cutter Bits Smith Bits' standard line of fixed cutter drill bits are the workhorse of the oilfield. These bits are designed to deliver premium performance and excellent durability. The features, cutter types, cutter layout and blade geometry of these bits are continuously being evaluated and improved to deliver value and drive down drilling costs. The IDEAS Certified design process is your assurance that these bits will offer optimum performance in your specific drilling application.

17-1/2” S519

12-1/4” Mi616

Type

Size Availability

Mi413 Mi416 Mi419 Mi513 Mi516 Mi519 Mi613 Mi616 Mi619 Mi713 Mi716 Mi811 Mi813 Mi816 Mi913 Mi916 Mi919 Mi1016 S416 S422 S516 S519

6-1/2” 6-1/8”, 6-1/4”, 6-3/4”, 7-5/8”, 7-7/8” 6-1/8”, 8-1/2”, 9-7/8” 6-1/4”, 6-1/2”, 7-7/8”, 8-3/4” 6-1/2” - 8-3/4”, 12-1/4” 8-3/4”, 9-7/8”, 12-1/4” 6-1/2”, 7-7/8”, 8-3/4”

S522 S613 S616 S619 S716 S719 S816 S819 SD519 SDi613 SDi616 Si419 Si519 Si613 Si616 Si619 Si819 Cutter Size Blade Count i - IDEAS Certified M/S - Matrix or Steel

Standard Nomenclature

M i 6 1 6

7-7/8” - 9-7/8”, 12-1/4” 12-1/4”, 17” 6-1/8” 7-7/8” - 8-3/4”, 12”, 12-1/4”, 14-3/4” 6” 6-1/8” - 6-3/4”, 10-5/8” - 17-1/2” 12-1/4”, 17-1/2” 7-7/8”, 12-1/4” 12-1/4”, 14”, 16” 16” 12-1/4” 6-3/4” 6” & 12-1/4” 8-1/2” & 12-1/4” 8-1/2”, 10-5/8”, 12-1/4”, 13-1/2” 14-3/4”, 16”, 17” & 17-1/2” 12-1/4” 16” 8-1/2”, 12-1/4” & 17-1/2” 8-1/2”, 12-1/4” & 17-1/2” 14-3/4” 12-1/4” 16”, 17-1/2” & 26” 26” 16” & 17-1/4” 17-1/2” 13-1/2” 8-1/2” 8-1/2” & 12-1/4” 16” 12-1/4” 13-1/2” 23” & 24”

Type

Size Availability

M413 M416 M419 M509 M511 M513 M516 M519 M609 M613 M616 M619 M711 M713 M716 M809 M813 M816 M909 M916 M1609 MD519 MD611 MD613 MD616 MD619 MD813 MD816 MD819 MD913 MD916 MD919 MDi416 MDi513 MDi516 MDi519 MDi613 MDi616 MDi619 MDi713 MDi716 MDi719 MDi813

7-7/8”

MDi816

6” - 7-7/8” 8-1/2” 3-3/4” 4-1/2” 4-3/4”, 4-7/8”, 6-1/8”, 6-1/4”, 7-7/8” 5-7/8” - 9-7/8”, 11-5/8”, 12-1/4”, 16” 6” - 9-7/8”, 12-1/4” 3-5/8”, 3-3/4”, 4-1/8”, 4-1/2”, 4-3/4” 6” - 8-1/2”, 11-5/8”, 12-1/4” 6-3/4” - 9-7/8”, 12-1/4” 7-7/8” - 17-1/2” 5-7/8” 8-1/2”, 8-3/4”, 9-1/2”, 12-1/4” 6”, 8-3/8” - 12-1/4” 6”, 6-1/8”, 6-3/4” 6”, 7-7/8” - 9”, 12-1/4” 16” 4-3/4”, 5-7/8”, 6”, 6-1/2” 8-1/2” 8-1/2”, 8-3/4” 8-1/2”, 12-1/4” 5-7/8” 6”, 6-1/8” 6”, 8-3/8” - 9-7/8”, 12-1/4”, 14-3/4” 8-1/2”, 9-1/2”, 12-1/4”, 17” 8-1/2” 6”, 6-1/8”, 8-1/2”, 9-1/2”, 12-1/4”, 16-1/2” 12-1/4” 8-1/2”, 12-1/4” 8-1/2”, 12-1/4” 12-1/4”, 13-1/2” 6-1/8” 5-5/8”, 6-1/8”, 6-1/4”, 7-7/8”, 8-3/4” 6-1/8”, 8-1/2” 8-3/4”, 14” 6-3/4”, 8-5/8”, 8-1/2”, 9-1/2”, 9-7/8” 8-1/2” - 14-3/4” 12-1/4”, 14-1/2”, 16”, 17-1/2” 5-7/8” 8-1/2”, 12-1/4”, 14-3/4” 8-1/2”, 10-5/8”, 12-1/4”, 14-1/2” 5-3/4”, 8-3/4”, 12-1/4”, 14-1/2”, 14-3/4”, 16-1/2” 8-3/8”, 8-1/2”, 10-5/8”, 12-1/4”, 13-3/4”, 17-1/2”, 18-1/8”, 18-1/4”

19

NATURAL DIAMOND Natural Diamond Bits Smith Bits’ complete line of natural diamond bits can provide cost-effective drilling in a range of formations, from medium-soft to extremely hard conditions. A variety of cutting structure profiles, with either feeder/collector or radial flow hydraulic designs and a complete selection of diamond patterns and qualities, are available to match the bit to the application. Feature-for-feature, Smith Bits’ natural diamond bits have proven themselves in wells worldwide, delivering the lowest cost-per-foot and the highest degree of accuracy and reliability.

Diamond Types

6-3/4” D71 4-3/4” D66

Cube

West African - Premium

A Congo diamond, cubeshaped with fair abrasion and impact resistance.

Dodecahedron in shape with good impact resistance and excellent abrasion resistance.

Carbonado

Congo Round - Regular

A naturally occurring, polycrystalline diamond, irregular in shape. Excellent impact resistance and good abrasion resistance.

A round monocrystalline diamond with a rough, textured surface. Fair abrasion and good impact resistance.

Natural Diamond Nomenclature

D S T 1 2 XX - Formation Hardness (00 Harder / 99 Softer) ST - Sidetrack D - Surface Set Diamonds

20

Cutter Size

Current Availability

D54

1-10 spc

6-1/8”

D66

1-10 spc

4-5/8”, 4-3/4”

D71

1-10 spc

6-3/4”

DST12

1-10 spc

5-7/8”, 6”, 6-1/8”, 6-1/2” 7-7/8”, 8-3/4”

PDC Cutter Technology Smith Bits maintains an aggressive internal R&D development program for PDC cutters with the goal of maximizing both wear and impact resistance. Engineers focus on continuous innovation in material properties, diamond layer configuration, and manufacturing processes and techniques which are the fundamental elements of producing a superior PDC cutter. Smith is uniquely positioned to provide customers with the most choices for PDC cutter technology. Our Ultrahards Materials division designs and manufactures high-performance PDC cutters, and maintains state-ofthe-art manufacturing facilities in Provo, Utah (MegaDiamond) and Scurelle, Italy (Supra Diamant). Smith Bits also continually evaluates and utilizes the best available technology from third party vendors. With its team of scientists, researchers and engineers, Smith continues to develop new materials and technologies to provide ultra-hard products with ever-increasing performance and reliability. Our Advanced Materials laboratory provides the tools necessary for controlling raw materials, analyzing compositions and evaluating material properties. Sophisticated computer modeling and FEA (finite element analysis) systems assist the technical staff in designing products for maximum performance. As a result, customers are assured of superior cutter performance when running a Smith PDC bit.

The chart below shows the relative improvement in cutter properties for impact and wear resistance over the past five years. The significant increase in cutter performance is directly reflected in overall PDC drill bit performance gains that Smith Bits has attained during this period.

Smith PDC Cutter Performance Improvement

Relative Wear Resistance

Relative Impact Resistance

Wear Resistance

Impact Resistance

2003 - 2004

2005 - 2006

2007 - 2008

Smith Bits' position of PDC bit performance leadership is testimony to the success of our R&D efforts in cutter technology.

21

Insert Technology GHI (Grit Hot-Pressed Inserts) Grit Hot-Pressed Inserts (GHI) use a proprietary granulation process that ensures a much more uniform distribution of the diamond material than is possible in the conventional pelletization process. This results in a more consistent GHI that will be much more durable, maintain its shape and, as a result, drill faster for a longer period of time. The individual GHIs are similar to small grinding wheels, so they take a very small depth of cut with each rotation of the bit. While drilling, GHIs continuously sharpen themselves by grinding away the bonding material to expose new diamonds. Smith customizes the GHIs with different bonding materials and diamonds to match the formation being drilled and the drive mechanism used. Because the GHIs are raised and allow a greater flow volume on the bit face, the new Smith Kinetic impreg bits can drill faster in a wider range of formations, thus extending the application range for these bits.

Uniform Diamond Distribution Optimized Material Wear Rates

22

and

The revolutionary Smith Bits GHI is more durable than conventional GHIs, and will drill faster for a longer period of time.

CFD Computational Fluid Dynamics (CFD) Efficient Hydraulics Increases Performance and Lowers Drilling Costs Smith’s design engineers use computational fluid dynamics (CFD) to model the interaction of drilling fluids with the bit and the wellbore. These complex algorithms enable the simulation of a wide variety of downhole conditions and allow the engineer to evaluate the effects of various blade and nozzle configurations in order to optimize flow patterns and improve the performance of the bit. Smith Bits makes extensive use of this sophisticated technique to maximize the available hydraulic energy and provide operators bits that will drill at the lowest possible cost per foot/meter.

Using CFD to visualize flow patterns provides designers with a reliable platform to analyze the effects of design modifications on bit performance.

CFD analysis can reveal any potential problems with flow patterns and allows designers to optimize the bit design for maximum performance.

23

OPTIONAL FEATURES B Feature Backreaming Cutters Feature:

Backreaming cutters

Advantage:

Strategic placement of cutters on the upside of each blade to allow backreaming in tight spots to reduce potential of "bit sticking” while pulling out of the hole

Benefit:

Allows a degree of backreaming sufficient to condition a hole without major risk of gauge pad wear

C Feature Connection Not API Standard Feature:

Non-standard connection, including box connection

Advantage:

Allows non-standard box connection for a given bit size; Shortest possible length between bit box and turbine or motor pin

Benefit:

Provides stabilization, reduces hole spiraling and provides additional gauge protection

D Feature DOG Sleeve (Drilling on Gauge)

24

Feature:

Dog Sleeve

Advantage:

Mitigates hole spiraling

Benefit:

Enhances BHA stability and helps maintain in-gauge wellbore

OPTIONAL FEATURES E Feature (common to all bit types) Extended Gauge Length Feature:

Longer gauge than standard

Advantage:

Provides a means of increasing bit stability and allows more area for gauge protection components

Benefit:

Enhances stability and improves hole quality

H Feature Larger than Standard TFA Feature:

Higher number of nozzles than standard

Advantage:

Higher nozzle counts and/or added fixed ports to increase cleaning, cooling and cuttings evacuation with available hydraulic flows; Allows for higher flow rates with minimal increase in pump pressure

Benefit:

Optimized ROP and bit life; Longer drilling intervals without need for tripping

I Feature IF Connection Feature:

Replaces standard connection

Advantage:

Allows the bit to conform to directional tools connection type

Benefit:

Provides more flexibility in configuring a drilling assembly

25

OPTIONAL FEATURES K Feature Impregnated Cutter Backing Feature:

Diamonds impregnated in the matrix behind the PDC cutters

Advantage:

Limits the wear progress of PDC cutters

Benefit:

Increased footage drilled in abrasive applications

L Feature Low Exposure Feature:

Cutter backing raised to minimize excessive depth of cut due to formation heterogeneity

Advantage:

Reduces cutter loading

Benefit:

Minimizes cutter breakage and extends bit life

M Feature Replaceable Lo-Vibe

26

Feature:

Lo-Vibe inserts that can be replaced when needed (wear, breakage, etc.)

Advantage:

Limits excessive depth of cut and helps reduce torsional vibration

Benefit:

Optimized ROP and bit life

OPTIONAL FEATURES N Feature Fewer Number of Nozzles than Standard Feature:

Lower than standard nozzle count

Advantage:

Reduced nozzle count to best match drilling, formation, and hydraulic system capabilities. Reduces flow rate required to achieve an appropriate HSI; Avoids the use of numerous, smaller nozzles that can plug

Benefit:

Optimized ROP and bit life; Longer drilling intervals without need for tripping

Q Feature Contains Fixed Ports Feature:

Incorporates fixed ports

Advantage:

Design employing fixed ports to optimize hydraulics in applications for which employment of nozzles compromise bit design because of space or similar limits; Provides additional cleaning of the cutting structure

Benefit:

Optimized ROP and bit life

PX Feature Diamond Enhanced Gauge Protection Feature:

Diamond enhanced gauge protection

Advantage:

Thermally stable polycrystalline diamond (TSP) to provide extra protection to the gauge

Benefit:

In-gauge hole and longer bit life; Longer drilling intervals without need for tripping

27

OPTIONAL FEATURES PXX Feature Full Diamond Gauge Pad on Turbine Sleeve Feature:

Full diamond gauge pad on turbine sleeve

Advantage:

Diamond enhanced inserts to provide the greatest possible gauge protection in highly abrasive formations and underbalanced drilling

Benefit:

In-gauge hole and long gauge life in extreme drilling environments; Longer drilling intervals without need for tripping

R Feature Restrictor Plate in the Pin Feature:

Nozzle fitted in the pin of the bit in high pressure drop applications

Advantage:

Splits pressure drop between nozzle in the pin and nozzles in the bit

Benefit:

Allows installation of larger nozzles in the bit reducing nozzle velocity and bit body erosion

S Feature Short Gauge Length

28

Feature:

Short gauge length

Advantage:

Reduced bit height to improve bit steerability for directional and horizontal applications; Reduced slide time and footage by achieving builds and turns more quickly

Benefit:

Lower cost per foot, higher overall ROP

OPTIONAL FEATURES T Feature Turbine Sleeve Feature:

Turbine sleeve

Advantage:

Turbine sleeves reduce vibration and hole spiraling in turbine applications. Sleeve lengths can be varied to best match a specific application.

Benefit:

Optimized ROP and bit life. Long drilling intervals without need for tripping.

V Feature Lo-VibeTM Option Feature:

Lo-Vibe option

Advantage:

In applications in which bit whirl is a problem, the Lo-Vibe option improves bit stability and reduces potential for damage to the cutting structure by restricting lateral movement and reducing the effects of axial impacts.

Benefit:

Optimized ROP and bit life. Long drilling intervals without need for tripping.

U Feature Contains 50 Series Nozzles Feature:

Contains 50 Series Nozzles

Advantage:

Maximized adjustable TFA for smaller or heavier set designs

Benefit:

High efficiency for cleaning, cooling and cuttings evacuation without sacrifice to the cutting structure that could compromise ROP or bit life

29

OPTIONAL FEATURES W Feature Contains 40 Series Nozzles Feature:

Contains 40 series nozzles

Advantage:

Increase thread size for wear/erosion resistance

Benefit:

Reduced pop-up force when tightening the nozzle

Y Feature Contains 30 Series Nozzles Feature:

Contains 30 series nozzles

Advantage:

Allows more freedom in cutting structure design, particularly in smaller bits with limited areas for placement of larger nozzles, (N60)

Benefit:

High efficiency for cleaning, cooling and cuttings evacuation without sacrifice to the cutting structure that could compromise ROP or bit life

Z Feature TSP on Leading Edge (Kinetic)

30

Feature:

TSP diamond is placed on leading edge of blades

Advantage:

Enhances durability in specific locations on the profile

Benefit:

Increases wear resistance, ensures full-gauge hole and extends bit life

Fixed Cutter Bit Nomenclature Product Line Prefix i Di A V S C HOX M S K H D L PR T ST SHO QD G R

Description IDEAS certified design IDEAS certified directional design ARCS & ARCS Advanced VertiDrill SHARC Carbonate Heavy Oil Series Matrix Body Steel Body Kinetic Impregnated Bit Kinetic Hybrid Bit Natural Diamond Bit LIVE Pilot Reamer Turbine Side Track Staged Hole Opener QUAD-D Dual Diameter Reamers with API Connections (box down, pin up) Reamers with IF Connections (