A previous attempt to drill an exploration well in ultra-deepwater in the GoM did not reach its objective due to an inability to maintain a Water Based Mud system light enough to maintain circulation. For the next round of exploration drilling, a system that allowed dynamic management of Annular Friction Loss (AFL) was required in order to stay within the narrow margin between pore and fracture pressure gradients.Conventional Rotating Control Device (RCD) based Constant Bottom Hole Pressure (CBHP) management systems were not suitable, as no drilling fluid light enough to manage the AFL with an added backpressure could be applied for this campaign.A "Controlled Annular Mud Level" type DGD system was successfully applied on this well in 2260 m water depth. This method compensates for the annular friction pressure by reducing the riser level according to the circulation pump rate. The system was also used to manage downhole pressure for cementing operations to mitigate losses and ensure good cement integrity with full returns during the cementing operation.The riser level was decided in the drilling program and adjusted according to PressureWhileDrilling (PWD) Readings. It could also be demonstrated that lowering the riser level increased ROP, whilst raising it again decreased ROP. The sensitivity for kick detection was greatly improved as the effect of rig motion on surface volumes was eliminated.The paper presents the project approach to deliver results and the technology applied. Results achieved on this well will be discussed, and how to further enhance the technology to other projects and increase the operational envelope of the system.