Excape Completion Process Reduces Gas Emissions and Speeds Well Completions

14th Annual Natural Gas STAR Workshop14th Annual Natural Gas STAR WorkshopHouston, TexasHouston, Texas

October 2007October 2007

Original Driver for the Technology Development: Cook Inlet, Alaska Beluga Gas Sands

� 10 to 20 sand bodies typically encountered

� 1700’ gross interval

� Each sand 5’ to 30’ thick

� Permeability 0.01 to 3 md

� Unfrac’d well rate 500 to 1,000 mcfd. Some individual sands too tight to produce without stimulation.

2

3

How am I going to frac this???

Conventional Industry Solutiona few years ago

� Common stimulation technique – “cherry pick” individual zones – Perforate and attempt to stimulate multiple

intervals – Flow back (venting gas) – Isolate lower intervals – (repeat process multiple times) – Remove all isolation devices and flow well.

� Not very effective – Inevitably bypass much pay – Compromise stimulation design – Time consuming and costly – Infrastructure issues in certain locations

4

5

Conventional Well Completion

Time (days)

Water and Frac Fluid Rate

Gas Rate

6

Casing Conveyed Perforating Completion

A A *

7

Cross-Section of Gun Assembly

`

A A *

3½” casing 2⅜” guns

borehole control line

Other ChargePhasings,

Shot Densities Available

Isolation Valve Below External Perforating Gun

� Firing the gun actuates a lower isolation valve.

� Valve actuates when a protective sleeve shifts.

– Compatible with cementing and fracturing operations

� Frangible; flapper valve removal is usually easy

– with past knowledge. – Marathon, typically 15 in one

hour

8

Radioactive MarkerRadioactive Marker

Perforating GunPerforating Gun

9

Module PlacementModule Placement

•West Texas Rig

10

Pres

sure

Pres

sure

TimeTime

Technical Achievements Marathon Alaska

� Single Day Completion – 24 hour period – 16 stages fracture stimulated – with well cleanout and isolation valve removal – gas to sales within 30 hours

11

12

Excape Well Completion

Time (days)

Water and Frac Fluid Rate

Gas Rate Unloading Rate

13

Marathon Alaska Excape Well Post –Completion Production Data

KBU 23-7 Test Data As of 0530 7/25/04

630

3789

346

0

250

500

750

1000

1250

1500

1750

2000

2250

2500

2750

3000

3250

3500

3750

4000

7/22/2004 0:00 7/22/2004 12:00 7/23/2004 0:00 7/23/2004 12:00 7/24/2004 0:00 7/24/2004 12:00 7/25/2004 0:00 7/25/2004 12:00

Date & Time

Flow

rate

, MC

FD

WHP GAS RATE H2O RATE

Place well in Sales

How Much Gas Was Not Vented? Marathon Alaska Excape Wells

Excape Completion Process

Well Name Location Depth Modules Completed

(Zones Competed) IP

Excape: Estimated

Venting Before Sales

Total Vent time

KBU 42-7 Alaska 7,500 feet 15 modules 3,150 MCFD 700 MCF

Conventional: Number of Frac

Stages

Conventional: Estimated Venting per day, per Stage

Conventional: Estimated Number of Venting Days Per Stage

Conventional: Total Vented

Volume

Reduction in Venting Volume

4 350 MCFD 3. days 4,200 MCF 3,500 MCF

14

15

Estimated Gas Not Vented

Reduction in Venting Volume

MC F

1 , 00 0 M C F

2 , 00 0 M C F

3 , 00 0 M C F

4 , 00 0 M C F

5 , 00 0 M C F

6 , 00 0 M C F

7 , 00 0 M C F

8 , 00 0 M C F

9 , 00 0 M C F

KBU 42-7

KBU 24-6

KBU 44-6

Beave

r Cree

k 11

KBU 43-7X

Beave

r Cree

k 13

KBU 33-6X

Falls C

reek 4

Canne

ry Lo

op 8

KBU 23-7

KBU 11-8X

Beave

r Cree

k 12

Beave

r Cree

k 14

Canne

ry Lo

op 9

KBU 42-6

KBU 22-6

KBU 11-8Y

Canne

ry Lo

op #1

0KBU 41

-6 KBU 11

-7 GO 4

KBU 24-6R

DCLU

11

KBU 24-7x

• Sum of the amounts: ~100 MMSCF

Maratho

n, Drumhe

lle

Phillip

s, M

ason

Estat

BP, Call

um

El Pas

o,Farl

ey A-

Maratho

n, Beave

r Cree

k

Maratho

n, KBU 43-7

BP, McE

lroy Ran

ch117

Shell,

Mesa

6-33

Encan

a, Biss

ette A-20

Encan

a,ECA Biss

ette D-

cana

, Cana

da W

ell a-2-

c / 93

-P-

Maratho

n, GW

Taylo

r No.

2 Al

Maratho

n, CL See

gerset.

Al. 11-

ratho

n, FM Tay

lor H

eirs 13

#4 A

Maratho

n, Can

nery

Loop 9

Infini

tyOil &

Gas

, Koem

el#1-

Infini

ty Oil &

Gas, B

arron #

2

Maratho

n,KBU11

-8

Maratho

n, KBU 41

-

EOGReso

urces

, Stag

gs #

6

Infini

ty Oil &

Gas

, Hort

on# 1

-Can

ada Wel

Maratho

n, KBU

24-6

16

Modules Run Per Well

Number of Modules Run Per Well

modules

5 modules

10 modules

15 modules

20 modules

25 modules

30 modules

r e 16 1 11 X #21 D

47

En

9 t. 1

Ma

lt. H -H

Y 6 -H H l

RD

COMPLETED WELLS

•

•

•

•

Maratho

n, Drumhelle

r

Phillip

s,Mas

onEsta

te

BP, Call

um 16

El Pas

o, Farl

eyA-1

Maratho

n, Beave

r Creek 1

1

Maratho

n, KBU

43-7X

BP, McE

lroy Ran

ch 117

#21

Shell,

Mesa

6-33D

Encan

a, Biss

ette A-20

Encan

a, E

CA Bissett

e D-47

En can

a, Cana

daWell a

-2-c /

93-P

-9

Maratho

n, GW

Taylo

r No.

2 Alt.

Maratho

n, CL S

eegers

et. A

l. 11-1

Ma ratho

n, FM Tay

lorHeirs

13#4

Alt.

Maratho

n, Can

nery

Loop 9

Infini

ty Oil &

Gas

, Koem

el#1-H

Infini

tyOil &

Gas, B

arron #

2-H

Maratho

n,KBU 11-8Y

Maratho

n, KBU

41-6

EOG Reso

urces

, Stag

gs #

6-H

Infini

tyOil &

Gas

, Hort

on #

1-H

Canad

a Wel l

Maratho

n, KBU

24-6

RD

Well Depths

Excape Well Depths

4,000 M

3,000 M

2,000 M

1,000 M

14,000 Feet

12,000 Feet

10,000 Feet

8,000 Feet

6,000 Feet

4,000 Feet

2,000 Feet

Feet

Dep

th, F

eet

17

18

Technology Acceptance: Modules vs. Time

Cumulative Modules vs. Time

modules

50 modules

100 modules

150 modules

200 modules

250 modules

300 modules

350 modules

400 modules

450 modules

500 modules

550 modules

600 modules

650 modules

700 modules

750 modules

0 6 12 18 24 30 36 42 48 54 60 66 72 78 84

Months since First Job

C OM PLET ED W ELLS

Maratho

n, Drumhelle

r

Phillip

s, Mas

onEsta

te

BP, Call

um16

El Pas

o, Farl

eyA-1

Maratho

n, Bea

ver C

reek 1

1

Maratho

n, KBU 43-7

X

BP, McE

lroy R

anch

117 #2

1

Shell,

Mesa 6-

33D

Encan

a, Biss

ette A-20

Encan

a,ECA Biss

ette D

-47

Encan

a, Cana

da W

ell a-2-

c / 93-P

-9

Maratho

n, GW

Taylo

r No.

2 Alt.

Maratho

n, CL See

gerset.

Al. 1

1-1

Maratho

n, F M

Taylor

Heirs

13 #

4 Alt.

Maratho

n, Can

nery

Loop 9

Infini

tyOil &

Gas

, Koem

el#1-H

Infini

ty Oil &

Gas

, Barro

n # 2-H

Maratho

n,KBU 11-8Y

Maratho

n, KBU

41-6

EOG Reso

urces

, Stag

gs #

6-H

Infini

tyOil &

Gas

, Hort

on# 1

-HCan

ada Well

Maratho

n, KBU 24

-6RD

19

Excape Well Deviation

degrees

10 degrees

20 degrees

30 degrees

40 degrees

50 degrees

60 degrees

70 degrees

80 degrees

90 degrees

Deg

rees

COMPLETED

Excape Well Deviations

93º

Excape: Technical Operating Efficiencies

Industry Marathon Only Horizontal

Review Date: 3/13/2006 3/13/2006 3/13/2006

Number of Modules Installed 677 373 146

Number of Modules Attempted to be Fired w/control line 631 340 113

Number of Modules Successfully Fired w/control line 589 339 102

Percent successfully fired 93.3% 99.7% 90.3%

Number of Fracture Stimulations 602 315 106 Number of Premature Screenouts on Frac Jobs 22 15 0 Percent of Frac Jobs which Screened out Prematurely 3.7% 4.8% 0.0%

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ConclusionConclusion

This Excape Technology is reliable, and has safetyThis Excape Technology is reliable, and has safety and environmental benefitsand environmental benefits

(~50% reduction in man hours, less exposure)(~50% reduction in man hours, less exposure)

It has led to development of competing multiIt has led to development of competing multi--zonezone stimulation techniques, which is beneficial to industrystimulation techniques, which is beneficial to industry

as a whole.as a whole.

The amount of gas which can avoid being vented isThe amount of gas which can avoid being vented is very significant.very significant.

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