ACTS flow loop is now operational under elevated pressure and temperature. Currently, experiments with water under pressure and temperature are being conducted. Based on the analysis of Fann 70 data, empirical correlations defining the shear stress as a function of temperature, pressure and the shear rate have been developed for Petrobras synthetic drilling fluids. PVT equipment has been modified for testing Synthetic drilling fluids. Initial calibration tests have been conducted by using water. Currently, the base oil of the Petrobras synthetic drilling fluid is being tested. Foam flow experiments have been conducted. Currently, more experiments are being conducted while data are being analyzed to characterize the rheology of the foam. Cuttings transport experiments have been conducted using air, water and cuttings. Preliminary results have shown that it may not be possible to avoid cuttings bed deposition under any practical combination of air and water flow rates. Foam stability analyses have been conducted. Effects of salt and oil concentration on the foam stability have been investigated. A software for controlling the data sampling and data storage during cuttings monitoring process have been developed.