Katch Kan Associates

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Katch Kan Associates Nathan Walters Roger
Shantz
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Presentation Outline

• Topics Covered
• About Katch Kan
• What the Industry is Saying About Katch Kan
  Technology
• Our 360 Degree Approach
• Operator/Contractor Due Diligence When Evaluating
  Environmental Equipment
• Defining Zero Spill Containment According to
  Katch Kan
• System Service Overviews
• Highlight Components of Rig Safety and Zero Spill
  Systems
• Business Case for Incorporating Katch Kan
  Systems

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About Katch Kan
Katch Kan is an ISO 9001 14001 upstream
company that provides operators/contractors with
rig safety and zero spill technology in over 52
countries In 2006, we conducted 18 internal
audits under our ISO policy to maintain quality
assurance and environmental standing In 2005,
we were awarded the Emerald Award for
Environmental Excellence based on what we were
doing, and continue to do, for the oil
industry Our company has been in business for
over a decade and has dealers worldwide,
including in Canada, United States, UAE, Mexico,
Colombia, as well as Japan Katch Kan scored 93
on audit for safety practice (COR) April 16th,
2007
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What the Industry is Saying
If you can start right from the drilling end in
keeping your leases clean, its going to save you
big dollars and help the environment down the
road when you want to abandon a well. -
Consultant for BP Canada For us being up here
in Alaska, which is entirely environmentally
sensitive and zero-stain, the Katch Kan system is
vital. If you have one major spill in Alaska and
you can capture it with this product, its paid
for itself. - Rig Manager for Doyon Drilling
Inc. Your commitment and activities will help
ensure that the rich environment that we are
privileged to have in Alberta is maintained. -
Vice President for Climate Change Central We
have a good crew on-site and they are pleased
with less clean up. Our BOP is kept very clean
therefore, this Zero Spill System saves us on
clean up time We are very satisfied! -
Consultant for Husky Energy
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Our 360 Degree Approach

• "Energy activity almost always has environmental
• impacts. Energy companies need to recognize this
• and to make an annual investment in minimizing
• those impacts Larry Simpson, Regional Vice
  President
• Nature Conservancy of Canada
• Manageable impacts with Katch Kan
• Land ground water contamination
• Wildlife impacts
• Excessive fresh water usage
• Air emissions
• High reclamation costs
• Public profile for both contractors and operators
  
• Operator/contractor share value

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Best Practice Opportunities

• Operator/contractor due diligence when evaluating
  environmental equipment.
• Katch Kan Manufacturing and RD Standards
• Produced under ISO 9001 14001 procedure
• Intrinsically safe (static electricity)
• Third party-tested and backed by research
• Proven and effective within all geographical
  regions the contractor operates
• Recognized and endorsed by oil companies
  internationally

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Best Practice Opportunities

• What can these standards do for the energy
  industry?
• Liability protection
• Potential secondary blow-out protection
• Standardized safe practice by on-site personnel
• Consistent HSE equipment performance across the
  board
• Incorporate into sustainability program
  illustrating necessary steps to protect the
  environment

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Opportunities for the Industry to Overcome
Challenges

• Zero Spill Containment According to Katch Kan
  The Bigger Picture
• Using ISO patented technology to directly avoid
  environmental contamination. Controlling,
  redirecting, and containing fluids used during
  the exploration and production process
• Using seals to ensure a contained fit to the
  stack
• Effectively capturing foreign objects before they
  go down hole
• Over-centre latch roughneck friendly application
  (system retrofit in a couple hours)
• Reducing repeatedly occurring lost-time accidents
  
• Decreasing negative wildlife impacts experienced
  during the exploration and production process
• Enabling Zero Spill Status for drilling rigs,
  service rigs and wellheads

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Rig Safety Zero Spill Systems in Review
On-site Advantage
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Rig Safety Zero Spill System OverviewDrilling
Rig Application
Rig Safety System
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Tong Handle Guards
Drilling Rigs

• Functions Features
• Quick installation with no equipment
  modifications needed
• Fits on all applications of manual tongs
• Protects the entire hand
• Strong and durable
• Results in a 98 reduction of hand-crush injuries
  during the tong operations

Quick Fact 32 of work-floor personnel injuries
have been found to be strain, sprain, or crush
related
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Kelly Kan - Mud Bucket
Drilling Service Rigs

• Functions Features
• Eliminates uncontrolled fluid discharge on
• work-floor
• All drilling fluids are controlled and
• re-directed down through rotary table
• Lightweight at 27 lbs allows for quick
  installation
• Fits the kelly for connections
• Drill string up to 8 inches
• Allows the kelly to be blown over the rotary
  table
• No longer need to use the lower kelly cock as a
  mud saver valve
• Saves approx. 3 minutes per stand while tripping
  out

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Splash Guard
Drilling Rigs

• Functions Features
• Eliminates splashing and flooding of rotary table
• Creates a guard that will keep feet out of rotary
  table
• Keeps hoses and other foreign objects from
  becoming entangled
• Flexes down to allow easy insertion and removal
  of the slips

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Katch Mat

• Functions Features
• Customized color coordinated for safety and
  danger zones
• Temperature and invert resistant
• Anti-slip/Anti-fatigue
• Fluid containment
• Lego-style assembly
• Easy incorporation of drill pipe stab mat

Click to view
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Upper Katch Kan
Drilling Rigs

• Functions Features
• Lightweight at 18 of previous steel trays
• Installed without tools in minutes - directly
  below the work floor
• Drilling fluids are collected and re-directed
  back into the system
• 5-inch telescopic action
• Paired with a Junk Basket
• Intrinsically safe

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Junk Basket
Drilling Rigs
Functions Features

• Minimizes / eliminates costly fishing trips by
  keeping foreign objects (like lost tools) from
  going down the annulus
• Slots allow fluids (not foreign objects) back
  into the flow nipple for re-circulation

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Window Stripper
Drilling Rigs
Functions Features

• No need to pull master bushing to conduct flow
  checks
• Allows bi-directional fluid movement
• Made of self-lubricating composite
• Flexible and durable
• Reduces chances of the master bushing being blown
  out of the rotary table under kick conditions
• Successful bit runs during the R D process

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2nd Stage Low Pro Katch Kan
Drilling Rigs

• Functions Features
• Catches fluids contained and channeled by the
  Katch Mat
• Tongue and groove design with over-centre latches
  allows for easy installation without tools
• 4-inch drain boxes and hoses return the captured
  fluid to the mud tank
• Paired with reducer collar for diversity of stack
  configurations
• Ideal for rotating heads/under balance drilling
• Intrinsically safe

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Offshore Land Japan Rig Safety System Zero
Spill System Application
Offshore Venezuela Zero Spill System
Application
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Service Recertification Backing

• We believe that our products should perform at
  optimal capability no matter
• how long the job or rental period.
• Thats why we offer
• On-site environmental assessments
• System check-up and recertification
• 24 hour customer service support
• Option of technology replacement as new
  innovations hit the market

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Business Case Boardroom Advantage The Tangible
Perspective
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The Business Case for Using Zero Spill Technology
Cost Benefit Analysis Installation Removal
Estimated Savings in terms of Installation and
Dismantling Time

• Installation Review
• Conventional Steel Tray
• 4 hour (240 min) install time
• Cost (based on 15000 rig day rate) 2,500

Installation Review Zero Spill System 2 hour
(120 min) install time Cost (based on 15000 rig
day rate) 1,250
Dismantling Review Conventional Steel Tray 2
hour (120 min) dismantling time Cost (based on
15000 rig day rate) 1,250
Dismantling Review Zero Spill System ½ hour (30
min) dismantling time Cost (based on 15000 rig
day rate) 312.50
Total installing and dismantling savings with
ZSS Install time savings 2 hours /Dismantling
time savings 1½ hours Total install and
dismantling savings per job 2,187.50
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The Business Case for Using Zero Spill Technology
Cost Benefit Analysis Mud Usage

• Mud Savings on a 11,000 ft Well
• Optimal duration of 20 days on well
• 5 to 15 gallons of drilling fluid lost per
  drilling connections
• 15 gallons of drilling fluid lost per
  tripping-out connections
• Activity Report
• Evaluating surface, intermediate, and touch down
  stages

• These calculations do not facture in savings from
  avoided fluid replacement and artesian well
  effect
• Note
• WBM 1.20 per gallon
• OBM 2.85 per gallon

Potential Savings between 10,240 to 16,150 over
the 20-day period
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The Business Case for Using Zero Spill Technology
Cost Benefit Analysis Tripping-Out
Offshore clients have reported a 3 minute savings
per stand using the Zero Spill System to trip
wet versus dry. Calculated savings for an land
drilling rig (triple) on a 11,000 foot well over
20 days. Time Savings 3 min. x 225 stands (90
long stand) 675 minutes saved per complete
tripping process Monetary Savings 15,000
(drilling rig day rate) x 675 minutes (time saved
per tripping process) 1440 minutes (total
billed rig minutes in a day) 7,031.25 saved
per bit run
Note Reduce blow-out potential by pulling wet
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The Business Case for Using Zero Spill Technology
Cost Benefit Analysis Remediation and
Reclamation
Remediation and Reclamation Savings Average
range of remediation and reclamation costing per
well 60,000 - 80,000 Zero Spill System
contains fluids around stack reducing up to 10
of clean-up costs Operator savings between 6000
- 8000 Projected savings to a fleet of 5
rigs Operator savings between 30,000 - 40,000
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The Business Case for Using Zero Spill Technology
Cost Benefit Analysis Total Potential Savings
Areas of Potential Savings Installation and
Dismantling Savings Per Job 2,187.50 Fluid
Savings Per Job 10,240 to 16,150 3 Minute
Tripping Savings per Bit Run 7,031.25
Remediation and Reclamation Savings
7000 Total Potential Savings Per Job
25,208.75 Projected with Fleet of 5 Rigs
126,043.80
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• Look for us in the media as well as at the next
  trade show
• PIASS - Banff, Alberta May 7-11
• BC Natural Gas Symposium - Vancouver, British
  Columbia June 6 - 7
• Go-Expo Calgary, Alberta June 12 - 14
• SPE-ATCE Anaheim, California November 11 - 14

SPE-ATCE San Antonio, Texas
Enform Training facility Nisku, Alberta
GPS Calgary, Alberta
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