A new 12.25-inch U616M, six-blade matrix PDC bit with 16mm cutters recently set a Roger Mills County footage record in western Oklahoma. The Ulterra bit drilled 7,065 ft. from surface casing down to a depth of 8,115 ft., saving the operator an estimated $44,500 versus the closest offset and $88,500 versus the average of five offset wells. This generation U616M is the result of extensive bit design and cutter testing in the Granite Wash play. “A unique cutting profile along with the latest cutter technology gives the bit unmatched durability in transitional drilling,” says Ryan Wedel, Ulterra Applications Engineering Supervisor. “This allows the bit to maintain a high rate of penetration throughout the interval in a variety of interbedded formations.” The U616M has set multiple footage records in the Granite Wash play.

The new U616M, 8.75-in., six-bladed matrix bit with 16-mm cutters drilled from surface casing to TD at a record pace of 93 ft/hr. All three intervals – the vertical, curve and lateral – were drilled with the same bottom hole assembly, reaching TD without a trip out of the well. A total of 9,953 ft was drilled in 107 hrs, a time savings of 37.5 hours over the fastest competitor offset of 144.5 hours. Cost savings were $73,566 versus the direct offset and $133,024 versus the average of five competitor offsets.

The U616M bit embodies Ulterra’s aggressive directional design philosophy and incorporates new technology that makes it the first bit on the market that can maintain the high instantaneous rates of penetration (ROP) required in the drill-out as well as the ability to track straight in the lateral section. By contrast, curve bits typically follow passive designs, which make them directional-friendly but hindertheir performance in the drill-out and lateral.

“Our number one goal in designing the U616M was to increase slide efficiency and reduce unnecessarily high slide percentages,” said Jacob Wendt, applications engineer. The curve and lateral intervals are where the majority of the sliding takes place. To reduce or eliminate sliding, the bit must withstand the entire drill-out or vertical interval with an unscathed cutting structure and continue into the curve and lateral with the directional friendliness of a fresh bit.

The U616M cutting structure is designed to maintain sharpness throughout all three drilling intervals. Controlling how the PDC cutters interact with the formation minimizes torque fluctuations, resulting in better tool face control, and minimized bit-induced stick-slip and reduced impact damage. The combined directional friendliness and performance advantages of the U616M increase slide efficiency and motor yields to reduce slide percentage, increase overall ROP, keep the BHA on bottom drilling longer, and reduce total on-bottom drilling hours.

Ulterra announced today it was proclaimed “the fastest growing drill bit company” in the Spears & Associates’ 2011 Oilfield Market Report. Started in 2005, Ulterra, a portfolio company of Intervale Capital, has grown from primarily a North American company to a global supplier of PDC bits and down hole tools. In the last year, Ulterra has recorded a 44% increase in revenues while expanding its operations substantially to the Middle East and Latin America markets. In the last four years, Ulterra has doubled its work force while strategically positioning an organization for expanded market presence and growth.

“As we move forward into 2012 Ulterra’s focus will remain on being the Employer
of choice. This results in our customers receiving the highest level of service and
performance in the market and enables sustainable growth.” Warren Dyer, CEO

In its first run in the Haynesville shale, Ulterra’s 6.75-in. UD511 bit set a new same-rig record for drilling a curve section, drilling the curve in 35 hours at a rate of penetration (ROP) of 23.4 ft/hr.  The UD511 saved $33.5/ft compared to the fastest competitor offset.
The 5-bladed bit with 11 mm cutters was a departure from the typical drilling
program, in which 7-bladed, 11-cutter bits and 2-plus-degree bend motors have
been used to ensure steerability while achieving build rates necessary to hit the
target.  Average penetration rates for the 7-bladed bits has been 12-15 ft/hr, although an Ulterra UD711 bit achieved a penetration rate of 20 ft/hr.

According to Chris Hearn, Application Engineer for Ulterra, the steel-body design
and short-gage configuration of the UD511 bit contribute to its superior performance.
“This bit was designed specifically for Haynesville curve and build sections,” he said. The 4.38-in. make-up length provides the shortest bit and ultimately the shortest bit-to-bend length currently available for Haynesville slim hole drilling.

The directional driller was enthusiastic about the UD511 bit’s performance and
commended its ability to hold toolface while achieving both necessary build rates
and record-setting ROP.
Ulterra is a leading provider of premium drill bits and downhole tools for the oil
and gas industry. Ulterra’s strength resides in the experience and wisdom culled
from industry veterans, designing high-quality, high-performance PDC bits for
global markets. Its small footprint, focused exclusively on drilling tools, provides
Ulterra the ability to respond quickly to customer’s specific applications with
customized solutions.

The US Mid Con region continues to be a growing district for Ulterra. 2010 saw a 245% increase over 2009 numbers.

Due to increased applications for the TorkBuster and the release of several application specific PDC designs, Ulterra has gained vital market share in the district.

“The addition of several key personnel and new product development has allowed us to more effectively service the entire market, as such we are experiencing rapid growth” – Johnny Everett, Vice President US Operations.

Ulterra opens new operation in Muscat, Oman after securing contracts with major customers.

“In country support is necessary to compete and fully realize market opportunity; our team in Oman is experienced and will represent the Ulterra brand very well.” – Mike Critchley, Vice President Eastern Hemisphere Operations

Ulterra is proud to announce that Warren Dyer has been named Chief Executive Officer and President. He will be leading the overall direction of the organization.

Warren served as CEO and President of United Diamond prior to Ulterra’s acquisition. In 2007, he was named Chief Operating Officer of Ulterra. His first-hand knowledge of operations ensures a minimal transition period. His attention to detail will assist in achieving Ulterra’s goal of becoming a top performer in every operating field.

“Ulterra has a very bright future,” says Dyer. “With the addition of nearly 50 industry veterans over the last year and international expansion efforts, we are stronger than ever and expect to continue a steep growth curve. In this business, there is no room for mediocrity and our model is designed specifically towards ensuring that the best product is in place for every application.”

Ulterra announces expansion of their Houston sales and engineering office to support continued customer base growth in both domestic and international activity.

“Houston is functionally the nerve center of the oil and gas industry; increasing our sales and technical support capacity will allow us to continue growing market coverage without sacrificing the support our customers have come to expect.” – Johnny Everett, Vice President, US Operations

Due to increased demand in the Chinese market for Ulterra’s PDC bit and TorkBuster products we have extended our distribution agreement, significantly expanding our service capability throughout China.

“The market opportunity in China is substantial and a strategic element of our growth plans, we are well positioned to serve the customer base.” – Warren Dyer, COO

Ulterra announced today the expansion of their manufacturing and repair facilities further positioning the company to meet strong customer demand in the domestic and international markets. Representing a significant capital investment, the expansion significantly increases companywide PDC bit capacity and the scope and capacity of the tool division.

At nearly 25,000 ft, the expansion provides major efficiency gains by separating type critical concurrent procedures in manufacturing and repair operations. “We invite all of our customers and employees to come tour the operation and meet our team, we are proud of what we’ve built and the quality of the product we provide,” said Rocky Frazer, Director of US Manufacturing.

“Ulterra is fast climbing towards a position of industry leadership through focus; we are investing in capacity and technology to increase drilling efficiency. After all….It’s About Rock Destruction” said Mark Russell, President and CEO