Our coiled tubing services are highly complementary to our hydraulic fracturing services by providing various functions associated with well completion and servicing. Coiled tubing is a key segment of the well service industry that allows operators to continue production during service operations without shutting down the well, reducing the risk of formation damage. The growth in deep well and horizontal drilling has increased the market for coiled tubing. Coiled tubing services involve using flexible steel pipe inserted into oil and natural gas wells to perform a variety of services. This flexible steel pipe, known as coiled tubing, is typically thousands of feet long and coiled onto a specialty truck. The small diameter of coiled tubing allows it to be inserted through production tubing, allowing work to be done on an active well. Coiled tubing provides many advantages over costlier workover rigs. For example, wells do not have to cease production (shut in) during most coiled tubing operations, reducing the risk of damaging the formation. Additionally, coiled tubing can be inserted and removed more quickly than conventional pipe, which must be joined and unjoined. Coiled tubing also allows for the precise directing of fluids and treatment chemicals in a wellbore, resulting in better stimulation treatments.

PES offers two styles of coiled tubing units. The first style is the Dual Trailer Unit. The dual trailer units are considered to be the flagship of the Company's coiled tubing fleet, due to their ability to operate in extreme pressures and for their extended reach capabilities. Their unique trailer design, including axle placement, allows for proper weight distribution when hauling the extreme weight of the coiled tubing reels required for extended reach purposes.

Trailer 1 contains the control cabin, pressure control equipment, hydraulic power source, and a 50-ton crane to suspend the injector head while in operation. Having the crane mounted on the unit is a space saving feature as it eliminates the need for another tractor unit (crane truck) on location. Clients see much value in this option. The control cabin enclosure houses all unit control systems including the digital data acquisition system for real time data monitoring.

Trailer 2 contains another smaller control cabin, the coiled tubing reel, hose reels, and the injector head. This unit's design allow it to be capable of operating at depths up to 20,000-ft (w/ freeboard) utilizing 2" coiled tubing pipe. The coiled tubing reels are interchangeable; therefore if the treatment depth would be deeper than the capacity of the reel currently on unit, the reel could be interchanged. The reel capacity with smaller pipe (1-3/4-in OD) can reach depths up to 25,850-ft (w/ freeboard), depending on the application. The injector head which is used to drive the coiled tubing into and out of the wellbore, has a continuous snubbing capacity of 40,000 lb-force which is the equivalent of well pressures up to 13,500-psi (with 2" CT) with a continuous pulling capacity of 80,000 lb-force. These units can be utilized for all high pressure, extended reach applications such as high pressure milling and open hole drilling. All surface pressure control equipment (BOPE) is rated at 15,000-psi working pressure with testing capabilities up to 20,000-psi. We believe clients prefer these unit configurations as they are designed to be rigged up quickly and efficiently. The single trailer units have all the same components and functionality as the dual trailer units however is a scaled down version.

The single trailer unit will typically be outfitted with smaller OD coiled tubing such as 1-1/4", 1-1/2", and 1-3/4" to enter existing production completions. The reel capacity utilizing 1-3/4" coiled tubing is 22,500 ft at 95% wrapping efficiency. The Single Trailer Units have less reel capacity than the Dual Trailer Units; as they are designed to hold a maximum of 18,500-ft (w/freeboard), and 19,200-ft (w/ no freeboard) of 2-in Coiled Tubing. All units are rated for 15,000 psi working pressure.

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