Innovations in Artificial Lift Technology

The SREP Jet Pump

Gas Flow

Power FluidPower Fluid

FormationFluid

Fluid Fluid

ReturnsReturns

Power FluidPower Fluid

FormationFluid

Power FluidPower Fluid

FormationFluid

Fluid Fluid

ReturnsReturns

Oil Flow

Oil

Wells

Gas

Wells

Gas Flow

FlatPak™ Tubing

System

Jet Pump Technology: Old vs New

Efficiency:

SREP jet pump completions are often require only 25 to 30% of the power that a conventional jet

pump system would require

Surface Equipment:

SREP utilize patented diaphragm surface pumps skid packages for longevity and low maintenance

Our in-house design and fabrication provides optimized equipment solutions

Jet Pump Optimization:

Exclusive SREP jet pump software allows accurate analysis and system design optimization

Completion Design:

SREP focuses exclusively on jet pump completions and design – providing the highest possible

level of jet pump design solutions, tailored to each well application

SREP have a range of new patented jet pump completion solutions designed to expand the use and

performance of our jet pump technology

The SREP Jet Pump

• A proven oil pumping and / or dewatering system

• Highly scalable output range:

• 2 to 2000+ BPD

• Very efficient

• No downhole moving parts

• Sand handling capability

• No gas-locking issues

• Deviated / horizontal wells

• Can be installed in slimhole completions

• Continuous Corrosion / Scale / Paraffin control

• Pumpable / fishable carrier

Conventional Well

Pad Development

SREP Jet Pump Well

Pad Development

Jet Pump Solution:

• Obvious benefits …

Pad Drilled Wells

Jet Pump Product Line:

JP-1.3

JP-1.6

JP-2.0

JP-2.3

JP-2.8

JP-3.5

JP-4.5

SREP Jet Pumps

JetPak™

SREP Pump Drive Packages:

Mid Depth Gas & Oil Wells

Shallow Gas Wells Deep Gas &

High Rate Oil Wells

T-8045 Diaphragm

Pumps w. Top Mounted

Electric Motors

Test Separator

Manifold

Test

Separator Storage

Pad Drilled Wells

Diaphragm Pumps

Diaphragm separation of “dirty” pump fluid and plungers

Plungers operate in a clean oil reservoir

Oil reservoir is at atmospheric pressure outside of the cylinder assembly

Patented for use in oilfield jet pump applications

Sizes from 15 to 80 HP

Jet Pump Applications

Well Types Issues

Watered-out Gas Needs effective & aggressive dewatering process / issues with rod pumps and PCPs

Horizontal Oil / Gas Landing depth / conventional pump failures / horizontal depletion / prod rate / paraffin

Vertical Oil Pump failures & service costs / production rate

CBM Fines handling / pumps need broad performance band

Shale Gas Horizontal, multi-zone completions / post-frac dewatering needed / wet gas

Unconventional Oil Horizontal, multi-zone completions / post-frac clean-up / pump landing depth

Shallow Gas Economics / low rates w. solids transport

Gassy Oil Rod pump gas locking / PCP stator swelling & overheating

Gas with Condensate Can’t use PCPs / issues with rod pumps

Heavy Oil Sand abrasion / fines plugging / rod-float

SAGD Deviated wells / too hot for PCPs and ESPs

Cleanout Operations Dewatering / sand cleanouts

Oil Well Applications

Bakken Wells

Recent Well:

• Initial Production: 260 m3/D w. 60 HP

• Current: 100 m3/D – battery limited

First Well:

• Started February 2011 producing 75 m3/D

• Currently settling in around 40 m3/D

• Using 30 to 35 HP

Bakken Wells

Fairborne Energy Sinclair Operations Press Releases:

March 22nd, 2011:

“The first well (47% WI) in the winter program was fracture stimulated over 23 intervals and was

equipped for production using a jet pump, allowing for the production of significantly more fluid

than a standard pumpjack system. This well has been on production for 30 days and is currently

producing 200 barrels of oil per day.”

“The recent success from the enhanced completion technique, combined with further upside from

the use of jet pumps versus traditional pumpjacks has provided the first phase of success in the

development of Sinclair. With 60 (55 net) sections of land at Sinclair and 39 producing wells, the

Company has an identified drilling inventory in excess of 150 net wells.”

September 12th, 2011:

“Fairborne has been applying a number of new technologies to increase the value of the Sinclair

property. The first involves using burst port technology to increase the number of fracture

stimulations in horizontal well bores to between 25 and 28. The second is the application of Jet

Pump surface equipment which has been installed at two locations to evaluate performance. The

first jet pump well had an initial production rate of 200 barrels per day and after 170 days is still

producing at a rate of 140 barrels per day. The second well has exhibited an improving production

profile with a continued increase in oil cut and currently produces 55 barrels per day of oil. The

application of these technologies has led to an improved type curve with initial production rates

increasing from 60 barrels per day to 80 barrels per day, an increase of 33 percent.”

Crescent Point: Shaunavon

First Well:

• Initial production (IP): 160 m3/D

• Typical rod pump (IP): 70 m3/D

• Well cleaned up 1.5 times faster than with rod pump

• Current production: 118 m3/D (13% oil – still cleaning up)

Oil Well Installation:

Vertical oil well: 1,300 m

Frequent history of failed PCPs

Jet pump system installed: Sep 2008:

• 3 year run time – still going

• No downhole problems to date

• System HP: < 50 HP

• Initial Production: +/-900 BPD

• Current Production: +/-400 BPD

(pumped off)

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Tota

l Flu

id R

ate

(B

PD

)

Oil

Rat

e (

BP

D)

&

Gas

Rat

e (

mcf

d)

Jet Pump Production Performance: Provident 11-9

Oil Rate - prorated (BPD)

Gas Rate - estimated (mcfd)

Total Fluid Rate - prorated (BPD)Rate Adjustments

Oil Well Installation:

Recent Oil Well Installation:

2nd Long Coulee Installation:

• Previous: Rod Pump:

• 45 m3/D Total Fluid / 4 m3/D Oil

• Current: Jet Pump:

• 70 m3/D Total Fluid / 9 m3/D Oil

Recent Jet Pump

Production Test on

Horizontal Condensate

Well

(3 Leg Multi-lateral):

21 Day Jet Pump Test:

• No wax control steps used

• Severe wax build-up observed

• Easy to overcome wax with

permanent jet pump - options:

• Add chemical to circulation

fluid

• Heat circulation fluid

• Periodic Hot Oiler

• Plans underway for permanent

jet pump installation

Temporary

Jet Pump Skid

Under Performing

Rod Pump

Wax Build Up:

Jet Pump was

lifting 24 m3/D

at this point

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10

20

30

40

50

60

70Oil Rate - monthly calculated (m3/D)Oil Rate - calendar day (m3/D)Fluid Rate - monthly calculated (m3/D)Fluid Rate - calendar day (m3/D)

Fluid RateRange

from SREP

Jet PumpTest

Oil RateRange

from SREP

Jet PumpTest

Rod Pump Performance Jet Pump

WaxPlugging

Rod Pump

Fluid: 12 m3/d

Oil: 7 m3/D

Jet Pump (average)

Fluid: 36 m3/d

Oil: 16.5 m3/D

: 135% higher than

with rod pump

Flow-back Operations

Post Frac-Flowback – Case #1

Gas Rate:

= 12.5 E3m3

= 460 mcfd

Total Fluid:

= 240 m3/D

= 1,500 BPD

Flu

id G

ain

(m3/h

r)

Gas Well Dewatering

Technology Validation

Case History:

“Wet” P&A candidate with reserves

Repeated “conventional pump” failures:

Provident Retlaw: 1-29-14-17W4

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an-0

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28-A

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ov-0

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-08

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ate

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CF

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Daily H

ou

rs

Jet Pump Installed Feb 2007:

• 17 months continuous service:

* no downhole problems

• Carrier removed July 2008 for

inspection:

* no wear – all parts at factory spec

• Optimize jet pump performance with

new data:

• Gas rate went from:

180 MCFD to 320 MCFD

Date Cost

5-May-04 $5,300

20-May-04 $18,800

26-Sep-04 $16,121

8-Aug-05 $53,202

10-Jan-06 $20,112

12-May-06 $30,072

29-Jun-06 $63,567

$207,174

Mature Gas Well Reactivation

Changed Nozzle / Throat Size

Horizontal Gas Applications

Horizontal Gas Applications

Horizontal gas well: 955 m TVD / 2020 m MD

PackersPlus™ completion

Pump landed in heel: 1050 m TVD / 950 m MD

30 HP jet pump system

Producing 20 to 30 m3/D Total Fluid (15 to 20% oil)

Gas @ 15+ E3m3/D

30 HP Pump Skid

Horizontal Gas Applications

Horizontal Gas Well - Jet Pump Dewatering:

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ep-0

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Liq

uid

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tes

(m

3/D

)

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s R

ate

(E

3m

3)

Total Liquid Volume - Return m3/day

Oil m3/day

H2O m3/day

Gas e3m3/day

Shale Gas Wells

Shale Gas Applications

Water Loading Shale Gas Well:

Need to land pump at TD & pump well down to ≤ 50 psi BHP

Pump Landing

Depth

Shale Gas Applications

Water Loading Shale Gas Well:

Dual 15 HP Diaphragm Pump Skids:

Shale Gas Wells

Shale Gas Well - Jet Pump Dewatering:

0

50

100

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250

30/0

9/20

09

02/1

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04/1

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s P

rod

uc

tio

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ate

s

(mc

fd)

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Liq

uid

Pro

du

cti

on

Ra

te

(BP

D)

Gas Production Rate (mcfd)

Water Production Rate (BPD)

Shale Gas Applications

Shallow Gas Wells

Shallow Gas Applications

Low Rate Dewatering – need for an efficient lift system:

10 well project / 2 wells per pad

FlatPak tubing system

Wells pumped off: +/- 2 m3/well

Shallow Gas Applications

Semi Permanent Option:

Gas

Flow

Gas

Wells

Gas

Flow

FlatPak™ Tubing

System

Innovations in Artificial Lift Technology