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A coiled tubing cutter assembly comprises a housing configured to be inserted in a length of coiled tubing. The housing forms a main bore and a first pathway through which cutting fluid can flow through the housing and be directed to impinge against an inner surface of the coiled tubing over which t

A coiled tubing cutter assembly comprises a housing configured to be inserted in a length of coiled tubing. The housing forms a main bore and a first pathway through which cutting fluid can flow through the housing and be directed to impinge against an inner surface of the coiled tubing over which the housing is positioned so as to cut the coiled tubing. A sleeve is positioned in the main bore. The sleeve is movable between a first position and a second position within the main bore. The sleeve is configured so as to block the first pathway when in the first position and to allow cutting fluid to pass through the first pathway in the second position. A method of cutting coiled tubing is also disclosed.

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1. A coiled tubing cutter assembly, comprising: a housing attached to a length of coiled tubing, the housing forming a main bore and a first pathway through which cutting fluid can flow through the housing and be directed to impinge against an inner surface of the coded tubing over which the housing

1. A coiled tubing cutter assembly, comprising: a housing attached to a length of coiled tubing, the housing forming a main bore and a first pathway through which cutting fluid can flow through the housing and be directed to impinge against an inner surface of the coded tubing over which the housing is positioned so as to cut the coiled tubing; anda sleeve positioned in the main bore, the sleeve being movable between a first position and a second position within the main bore, the sleeve being configured so as to block the first pathway when in the first position and to allow cutting fluid to pass through the first pathway in the second position. 2. The cutter assembly of claim 1, wherein the sleeve is further configured so that a projectile pumped through the coiled tubing can land on the sleeve, thereby blocking fluid flow through the main bore of the housing. 3. The cutter assembly of claim 2, further comprising a second pathway between the housing and the coil tubing through which cutting fluid can be directed to flow back into the main bore of the housing after impinging against the inner surface of the coiled tubing. 4. The cutter assembly of claim 3, wherein the sleeve is configured so that a projectile landed on the sleeve is positioned in the main bore between the first pathway and the second pathway when the sleeve is in the second position. 5. The cutter assembly of claim 1, wherein the first pathway comprises a first set of apertures through the housing and the second pathway comprises a second set of apertures through the housing, the housing being configured to provide an annulus for providing fluid communication between the first set of apertures and the second set of apertures. 6. The cutter assembly of claim 1, wherein the sleeve comprises a plurality of apertures that allow fluid communication between the second pathway and the main bore when the sleeve is in the second position. 7. The cutter assembly of claim 1, wherein the sleeve is held in the first position using one or more shearable device. 8. A method of cutting a coiled tubing in a well bore, the method comprising: establishing, at a cutter assembly attached to a coiled tubing, an open flowpath proximate a desired cut site for directing cutting fluid against an inner surface of the coiled tubing;pumping cutting fluid through the open flowpath so that the cutting fluid impinges against the cut site so as to cut the coiled tubing; andretrieving a first portion of coiled tubing above the cut site from the well bore while a second portion of the coiled tubing below the cut site remains in the well;wherein the cutter assembly is installed within the coiled tubing proximate the cut site, and further wherein establishing an open flowpath comprises: pumping a projectile through the coiled tubing so that the projectile lands on a sleeve of the cutter assembly, the sleeve being in a first position; andapplying sufficient force to the projectile in the coiled tubing so as to move the sleeve to a second position, thereby establishing a first fluid pathway through a housing. 9. The method of claim 8, wherein the projectile blocks fluid flow through a main bore of the housing after the projectile lands on the sleeve. 10. The method of claim 9, wherein when the sleeve moves to the second position, the projectile is positioned in the main bore below the first fluid pathway. 11. The method of claim 9, wherein the cutting fluid flows back into the main bore of the housing after impinging against the inner surface of the coiled tubing. 12. The method of claim 8, wherein the cutting fluid is a slurry. 13. The method of claim 8, wherein the coiled tubing is partially cut by pumping the cutting fluid, the method further comprising applying a force to the coiled tubing to break the coiled tubing after pumping the cutting fluid. 14. A coiled tubing assembly, comprising: a length of coiled tubing positioned in a well bore; anda coiled tubing cutter assembly attached to the coiled tubing, the cutter assembly comprising: a housing attached to the coiled tubing, the housing forming a main bore and a first pathway through which cutting fluid can flow through the housing and be directed to impinge against an inner surface of the coiled tubing so as to cut the coiled tubing; anda sleeve positioned in the main bore, the sleeve being movable between a first position and a second position within the main bore, the sleeve being configured so as to block the first pathway when in the first position and to allow cutting fluid to pass through the first pathway when in the second position. 15. The coiled tubing assembly of claim 14, wherein the sleeve is further configured so that a projectile pumped through the coiled tubing can land on the sleeve, thereby blocking fluid flow through the main bore of the housing. 16. The coiled tubing assembly of claim 14, further comprising a second pathway through which cutting fluid can be directed so as to flow back into the main bore of the housing after impinging against the inner surface of the coiled tubing. 17. The coiled tubing assembly of claim 16, wherein the first pathway comprises a first set of apertures through the housing and the second pathway comprises a second set of apertures through the housing, the housing being configured to provide an annulus between the coiled tubing and the housing, the annulus provides fluid communication between the first set of apertures and the second set of apertures, and further wherein the sleeve comprises a plurality of apertures that allow fluid communication between the second pathway and the main bore when the sleeve is in the second position. 18. The coiled tubing assembly of claim 14, wherein the coiled tubing cutter assembly is positioned proximate the distal end of the coiled tubing and above a coiled tubing end connector attached to the coiled tubing. 19. A method of cutting a coiled tubing in a well bore, the method comprising: establishing, at a cutter assembly attached to a coiled tubing, an open flowpath proximate a desired cut site for directing cutting fluid against an inner surface of the coiled tubing;pumping cutting fluid through the open flowpath so that the cutting fluid impinges against the cut site so as to cut the coiled tubing; andretrieving a first portion of coiled tubing above the cut site from the well bore while a second portion of the coiled tubing below the cut site remains in the well; wherein the cutting fluid comprises an acid and an acid inhibitor.