PathFinder R & D
We engage in research and development activities in an effort to improve our existing product and service offerings and to satisfy customer demand for tools, products and services that will increase the efficiency of their operations. Our research and development effort is conducted through the PathFinder research and development facility in Houston, Texas, where most of our logging-while-drilling, measurement-while-drilling and directional drilling technology is developed.
Some of our recently commercialized technologies include:
PathMaker® 3-Dimensional Rotary Steerable (“3DRS”)
technology for 8 1/2-inch and 12 ¼-inch borehole sizes. This technology facilitates full steering and propulsion of a drill string in any direction, with or without the use of a down-hole drilling motor, with real-time at-surface feedback as to the tool’s performance and well placement. This technology in the 8 1/2-inch borehole size will allow us to service smaller borehole diameters. Aspects of this technology are patented or patent-pending.
Slim Array Wave Resistivity (SAWR™) technology.
This technology involves the use of proprietary tools and data analysis techniques to improve the reliability and quality of resistivity data as it relates to formation evaluation. Our SAWR™ technology operates by transmitting electromagnetic waves through the formation surrounding a well-bore. This new technology will allow us to service smaller borehole diameters. SAWR tools, along with the larger size Array Wave Resistivity tools, are capable of operating in high pressure and high temperature conditions (up to 25,000 psi and 350ºF). Aspects of this technology are patented or patent-pending.
Slim Density Neutron Standoff Caliper (“SDNSC”) technology.
Our density neutron technology is used to provide customers with more reliable information about the porosity of a formation and the diameter of the borehole. We recently commercialized our SDNSC to provide this service in smaller borehole diameters. Aspects of this technology are patent-pending.
Survivor™ high-temperature/high pressure Dynamic Pressure Module (“QDPM”) technology.
This technology measures the pressure and temperature of the drilling fluid in the drill pipe and annulus, providing valuable information regarding performance of the drilling equipment. Tools embodying this technology are designed for high pressure and high temperature conditions (up to 25,000 psi and 350ºF), and are operable in several borehole sizes. QDPM tools are compatible with our other SurvivorTM suites of tools, as well as with our other logging-while-drilling technologies, such as the SAWRTM and SDNSC technologies described above.
We plan to use research and development expenditures to continue to develop proprietary technologies targeted to give us a commercial advantage. Two of these technologies in development include:
PathMaker® 3DRS technology for 9 7/8-inch and 6-inch borehole sizes.
This technology is intended to be functionally substantially similar to the 8 1/2-inch PathMaker® 3DRS tool described above, except that these tools will be able to accommodate these borehole diameters. Aspects of this technology are patented and patent-pending. The 97/8-inch borehole size is targeted to be commercially available on a limited basis by late 2007.
Azimuthal Density Neutron Standoff Caliper (“IDNSC”) technology. This technology is intended to enhance our current proven DNSC and Slim DNSC technology by providing an image of the inside of the borehole based on density measurements. The technology also generates reliable information about the porosity of a formation and the diameter of the borehole. Aspects of this technology are patent-pending. This technology is targeted to be commercially available on a limited basis by late 2007 or early 2008.
We own or have licenses to use various patents covering a variety of technologies embodied in our portfolio of products and services. Although in the aggregate these patents are of importance to us, we do not consider any single patent to be of a critical or essential nature. Some of our products and services enjoy brand name recognition. We own trademarks in respect of these brands. Some of these trademarks are registered or are pending registration.
While we are developing and deploying many of our own technologies, our logging-while-drilling business is still dependent upon technologies that we acquired when we acquired PathFinder. We have the right to use substantially all of these acquired technologies pursuant to worldwide, royalty-free, irrevocable license rights. We have the right to use a small number of these acquired technologies under licenses from other third party licensors. The terms of certain of these licenses may be subject to change if there is a change in control of our company.
