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Underbalanced drilling, or UBD, is a procedure used to drill oil and gas wells where the pressure in the wellbore is kept lower than the static pressure of the formation being drilled. As the well is being drilled, formation fluid flows into the wellbore and up to the surface. This is the opposite of the usual situation, where the wellbore is kept at a pressure above the formation to prevent formation fluid entering the well. In such a conventional "overbalanced" well, the invasion of fluid is considered a kick, and if the well is not shut-in it can lead to a blowout, a dangerous situation. In underbalanced drilling, however, there is a "rotating head" at the surface - essentially a seal that diverts produced fluids to a separator while allowing the drill string to continue rotating.
If the formation pressure is relatively high, using a lower density mud will reduce the well bore pressure below the pore pressure of the formation. Sometimes an inert gas is injected into the drilling mud to reduce its equivalent density and hence its hydrostatic pressure throughout the well depth. This gas is commonly nitrogen, as it is non-combustible and readily available, but air, reduced oxygen air, processed flue gas and natural gas have all been used in this fashion.
Coiled tubing drilling (CTD) allows for continuous drilling and pumping and therefore underbalanced drilling can be utilized which can increase the rate of penetration (ROP).