RCurtice

Rick Curtice

October 31, 2006

Brownfield Optimizing Mature Assets

Denver, Colorado

WATER CONFORMANCE

OVERVIEW

WATER PRODUCTION SUCCESSFUL TREATMENT COMPUTER PROGRAMS NEW PRODUCTS SUMMARY

WHAT DOES WATER PRODUCTION COST??

25,263,000,000 BBLS OF WATER PRODUCED IN UNITED STATES- 2000

AVERAGE WATER CUT 94% per WELL

$5 BILLION COST TO THE INDUSTRY

MORE IS SPENT ON PRODUCED WATER THAN ALL OTHER MAJOR SERVICES COMBINED

PROBLEM IDENTIFICATION + QUALITY EVALUATION = BEST

SOLUTION UP-FRONT INVOLVEMENT - PROACTIVE RESERVOIR UNDERSTANDING DIAGONSITCS APPLY PROPER TECHNOLOGY

TREATMENT SUCCESS IS TYPICALLY 90% !

MAJOR INTERVENTION TAKEN

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WATER PRODUCTION IN BBLS

WOR

OIL PRODUCTION IN BBLS

COMPUTER SOFTWARE Water Control Expert System

XERO PROBLEM IDENTIFICATION PRODUCT SELECTION PLACEMENT TECHNIQUES TREATMENT SIZE

COMPUTER SOFTWARE SIMULATOR

3-D, 4-PHASE NON-ISOTHERMAL, MULTIWELL BLACK OIL AND PSEUDO-COMPOSTIONALSIMULATOR

RESERVOIR SIMULATOR IS LINKED WITH A WELLBORE TEMPERATURE SIMULATOR WITH PRESSURE PROFILES

SPEED IN FORECASTING RESULTS OF WELL INTERVENTIONS

ACCURACY IN UNDERSTANDING OF RESERVOIR AND WELLBORE MECHANISMS

EFFICIENCY IN SENSITIVITY STUDIES BY VARYING DESIGN PARAMETERS

NEW PRODUCTS

POLY - CRYSTAL THIXOTROPIC MONOMER HIGH TEMPERATURE POLOYMER RIGID SETTING FLUID RELATIVE PERMABILITY MODIFIERS

POLY-CRYSTALS

APPLICABLE FOR LOSS CIRCULATION, PROFILE MODIFICATION AND INTERWELL COMMUNICATION PROBLEMS

VARIABLE SIZE MAXIMUM SIZE = 14 MM VARIATIONS 1 MM AND 4 MM CAPABILITY OF PLACEMENT CONTROL

DEHYDRATED FORM COMPACT CONCENTRATION

EQUIVALENT FORM < 1/10 BASE POLYMER

ECONOMICS FAVORABLE

POLY-CRYSTALS

ATTRIBUTES AND PROPERTIES RESISTANT TO BACTERIAL GROWTH RESISTANT TO ACID HIGHLY RESISTANT TO CO2

TECHNOLOGY IS ECONOMICALLY FAVORABLE COMPARISON TO POLYMER GEL TECHNOLOGY

GENERALLY 1/10 THE COST FOR THE SAME GEL LOADING SHORT TIME FOR PLACEMENT REDUCED EQUIPMENT AND

PUMP TIME CHARGES SIMPLICITY IN OPERATION AND QC

THIXOTROPIC MONOMER

BROADENS CAPABILITES TO SHUT-OFF WATER IN CHALLENGING COMPLETIONS GRAVEL PACKS SCREENS HORIZONTAL WELLBORES.

THIXOTROPIC PROPERTIES PREVENT GRAVITY SLUMPING

FORMS CHEMICAL PACKER TO PERMANTELY SEAL THE TARGET ZONE.

THIXOTROPIC MONOMER

SHEAR THINNING PERMANENT SEALANT

GENERATES HIGH LEVELS OF VISCOSITY AS SHEAR RATE DECREASES

PUMPABLE THROUGH CT, GRAVEL PACK SLOTTED LINER

WILL NOT SLUMP IN A HORIZONTAL WELLBORE

WILL NOT BYPASS STRADDLE PACK ASSEMBLY

CAN BE WASHED OUT WITH CT

HIGH TEMPERATURE POLYMER

TEMPERATURE RANGE 100 to 350 F

PERMEABILITY FROM 0.1 MD to 10 DARCY

MIXING BRINES KCL, NACL OR SEAWATER

HIGH TEMPERATURE POLYMER

HIGH TEMPERATURE POLYMER (HTP) SLURRY SQUEEZE SYSTEM FOR WATER/GAS SHUTOFF

COMBINATION HTP WITH FLUID LOSS

FOLLOWING SQUEEZE TREATMENT OIL/GAS ZONES CAN BE RE-PERFORATED

CAN BE USED IN PLACE OF STANDARD CEMENT SQUEEZES FOR VARIOUS APPLICATIONS

HIGH TEMPERATURE POLYMERADVANTAGES OF HTP SLURRY:

NO NEED FOR ZONAL ISOLATION AS WITH STANDARD CEMENT OPERATIONS

SLURRY IS BULLHEADED INTO ALL PERFORATIONS

SHALLOW PENETRATION OF THE FILTRATE ALLOWS FOR RE-PERFORATION IN THE HYDROCARBON ZONE

HTP SLURRY LEFT IN THE HOLE DOES NOT HAVE TO BE DRILLED OUT, AND CAN EASILY BE JETTED OUT WITH COILED TUBING.

RIDGID SETTING FLUID

FORMULATION OF INORGANIC NON TOXIC POWDERS AND FLUIDS MIXED IN A BRINE SOLUTION

USED TO PERFORM CHEMICAL ISOLATIONS/SHUT OFFS IN VERTICAL AND HORIZONTAL WELLBORES

CHARACTERISED BY A CONTROLLED RIGHT ANGLE SET FOLLOWED BY RAPID STRENGTH DEVELOPMENT.

ONCE SET PRODUCT HAS MECHANICAL CHARACTERISTICS SIMILAR TO CEMENT BUT IT IS NOT A CEMENT.


ZERO SHRINKAGE.

ZERO STATIC GEL GENERATION.

WILL NOT INVADE FORMATION.

100% ACID SOLUBLE WITH 15% HCL.

TREATMENTS TYPICALLY 25 BBLS OR LESS.


IMMISCIBLE IN OIL.

TOLERATES UP TO 50% CONTAMINATION.

TYPICALLY 5 MICRON MEDIAN PARTICAL SIZE.

VARIABLE VISCOSITY FROM 18 CP TO 100 CP.


NEAR WELLBORE PHENOMENON

EXOTHERMIC REACTION TIME AND TEMPERATURE DEPENDENT.

COMPRESSIVE STRENTH BUILDS RAPIDLY > 3000 PSI IN 2 HOURS.

OPERATING TEMPERATURE RANGE 0 - 270 F.

SET TIME IS COMPLETELY PREDICTABLE AND CONTROLLABLE 10 MINUTES TO SEVERAL HOURS.

CAN BE PUMPED THROUGH BHA USES CONVENTIONAL PUMPING EQUIPMENT.

RELATIVE PERMEABILITY MODIFIER (RPM)

A WATER SOLUBLE POLYMER

HYDROPHOBIC RESULTS - INCREASED ADSORPTION

OIL/WATER SEPARATION IN THE RESERVOIR

RELATIVE PERMEABILITY MODIFIER

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oil core water core

Permeability Modification for Oil and Water Saturated Cores

Initial Perm (md)

Final Perm (md)

Permeability to oil increased by 7%

Permeability to water decreased by 98%


WHAT IS AN RPM CANDIDATE?

LAYERED FORMATION

BOTTOM HOLE STATIC TEMPERATURE (BHST) UP TO 325F

MATRIX PERMEABILITY RANGE FROM 0.1 MD TO 6 DARCYS


WHAT ARE THE APPLICATIONS?

CONVENTIONAL WATER CONFORMANCE

DIVERTOR

PRE & POST FRAC TREATMENT

LOSS CIRCULATION


WHAT IS A CONVENTIONAL RPM CANDIDATE?

LAYERED FORMATION WITHOUT RESERVOIR CROSS FLOW

SANDSTONE OR CARBONATE

BHST UP TO 325F

MATRIX PERMEABILITY RANGE 0.1 MD 6 DARCY

PERFORATION OR GRAVEL PACKS


WHAT IS A DIVERTOR RPM CANDIDATE?

NEED FOR DIVERSION DURING ACID STIMULATION

BHST UP TO 350F

PERMEABILITY RANGE FROM 0.1 MD TO 6 DARCY

NEED FOR DIVERSION AWAY FROM HIGH WATER SATURATED ZONES


HOW IS AN RPM DIVERTOR USED?

BULLHEAD TREATMENT: ALTERNATING STAGES OF RPM FLUID AND ACID

NO DAMAGE TO HYDROCARBON BEARING ZONES

ENHANCES ZONAL COVERAGE BY DIVERTING ACID AWAY FROM WATER BEARING ZONES

DOES NOT REQUIRE VISCOSITY TO AID IN DIVERSION

SIMPLE AND EASY TO USE: NO ZONAL ISOLATION NEEDED. NO SPECIAL PLACEMENT TECHNIQUES REQUIRED.

SOMETIMES FRACTURE STIMULATION RESULTS IN MORE THAN HYDROCABON PRODUCTION?

RPM FRAC SERVICE

RPM FRAC SERVICE CONFORMANCE WHILE FRACTURING:

LIMITS RISK ASSOCIATED WITH FRACTURING NEAR HIGH WATER SATURATION

REDUCES PERMEABILITY TO WATER

REQUIRES NO SPECIAL PLACEMENT TECHNIQUES A SIMPLIE LIQUID ADDITIVE THAT CAN BE INCLUDED AS PREPAD

OR ADDED TO THE ENTIRE TREATMENT

RPM FRAC SERVICE

COMPATIBLE WITH MOST EXISTING FRAC FLUID SYSTEMS

LAB RESULTS INDICATE IMPROVED LOAD RECOVERY.

EXTENDS THE ECONOMIC LIFE OF THE WELL.

WHAT IS AN RPM FRAC SERVICE CANDIDATE?

LAYERED FORMATION

BHST UP TO 325F

FRACTURING CLOSE TO WATER ZONE


RPM FRAC SERVICE

WHAT IS AN RPM POSTFRAC SERVICE CANDIDATE?

FRAC THAT IS PRODUCING LARGE AMOUNTS OF WATER

BHST UP TO 325F


RPM POST FRAC SERVICE

ZONES PRODUCING WATER MUST BE IDENTIFIED

ZONES PRODUCING WATER MUST BE ISOLATED WHEN TREATED

RPM FLUID MUST BE PUMPED THROUGH THE PROPPANT PACK TO BE EFFECTIVE

RPM POST FRAC SERVICE

DURING ROUTINE WORKOVERS

DURING DRILLING OPERATIONS?

RPM LOST CIRCULATION APPLICATIONS

EXCESSIVE WATER PRODUCTION CONTINUES TO COST THE INDUSTRY BILLIONS OF DOLLARS A YEAR

SUCCESSFUL TREATMENTS CAN BE PUMPED

SOFTWARE FOR DESIGN AND APPLICATIONS ARE AVALIABLE

NEW PRODUCTS HAVE BEEN DEVELOPED FOR ADDITONAL APPLICATIONS.

SUMMARY

OVERVIEWWHAT DOES WATER PRODUCTION COST??PROBLEM IDENTIFICATION + QUALITY EVALUATION = BEST SOLUTIONMAJOR INTERVENTION TAKENCOMPUTER SOFTWARE COMPUTER SOFTWARE NEW PRODUCTSPOLY-CRYSTALSPOLY-CRYSTALSTHIXOTROPIC MONOMERTHIXOTROPIC MONOMERHIGH TEMPERATURE POLYMERHIGH TEMPERATURE POLYMERHIGH TEMPERATURE POLYMERRIDGID SETTING FLUIDRIDGID SETTING FLUIDRIDGID SETTING FLUIDRIDGID SETTING FLUIDRELATIVE PERMEABILITY MODIFIER (RPM)RELATIVE PERMEABILITY MODIFIERRELATIVE PERMEABILITY MODIFIERRELATIVE PERMEABILITY MODIFIERRELATIVE PERMEABILITY MODIFIERRELATIVE PERMEABILITY MODIFIERRELATIVE PERMEABILITY MODIFIERSOMETIMES FRACTURE STIMULATION RESULTS IN MORE THAN HYDROCABON PRODUCTION?RPM FRAC SERVICERPM FRAC SERVICERPM FRAC SERVICERPM POST FRAC SERVICERPM POST FRAC SERVICERPM LOST CIRCULATION APPLICATIONSSUMMARY

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