Coiled Tubing Drilling has been around for well over 25 years and is ideal for narrow and low-pressure formations, but can be run in basically any formation or pressure. CTD is best suited to under-balanced operations because it is a “closed-loop” system. A “closed-loop” system does not require the formation to be put in an over-balanced state at anytime during the operation and since drilling mud is not required there is no skin or near well-bore damage caused. The tool includes a Cable-head, SMART-Link, Directional and gamma package, and an electrically operated orientation tool. It is designed to operate on a wide variety of e-line and capillary (steel encapsulated) line options.