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HEAL System™ The Foundation for Efficient Artificial Lift in Horizontal Wells CLAYTON MYKYTIW Regional General Manager DUG PERMIAN BASIN April 3-5, Fort Worth Texas © Produc)on Plus Energy Services Inc., 2017 Multiple Patents Pending

The Foundation for Efficient Artificial Lift in Horizontal ......HEAL SystemTM Full Cycle Artificial Lift Strategy 1. Control flowback • Install HEAL System post frac • Reduced

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Page 1: The Foundation for Efficient Artificial Lift in Horizontal ......HEAL SystemTM Full Cycle Artificial Lift Strategy 1. Control flowback • Install HEAL System post frac • Reduced

HEAL System™

The Foundation for Efficient Artificial Lift in Horizontal Wells

CLAYTON MYKYTIW Regional General Manager DUG PERMIAN BASIN April 3-5, Fort Worth Texas

©Produc)onPlusEnergyServicesInc.,2017

Multiple Patents Pending

Page 2: The Foundation for Efficient Artificial Lift in Horizontal ......HEAL SystemTM Full Cycle Artificial Lift Strategy 1. Control flowback • Install HEAL System post frac • Reduced

© Production Plus Energy Services Inc. 2017 | 2

HEAL System Installs Long-term case histories in multiple basins

Over 200 installs

30

formations

Page 3: The Foundation for Efficient Artificial Lift in Horizontal ......HEAL SystemTM Full Cycle Artificial Lift Strategy 1. Control flowback • Install HEAL System post frac • Reduced

© Production Plus Energy Services Inc. 2017 | 3

Solution: consistent, regulated flow Flow conditioning for slug flow mitigation prior to separator and pump

Page 4: The Foundation for Efficient Artificial Lift in Horizontal ......HEAL SystemTM Full Cycle Artificial Lift Strategy 1. Control flowback • Install HEAL System post frac • Reduced

© Production Plus Energy Services Inc. 2017 | 4

HEAL System: No Moving Parts

1.  Seal •  forces flow into SRS •  creates large solids sump

2.  Sized Regulating String (SRS) •  variable internal diameter •  smooths flow •  reduces fluid density to lift

build section of well

3.  HEAL Vortex Separator •  separates solids •  separates gas •  avoids generation of foam

Separated gas

Separated oil / water / solids

Solids to sump

Fluid level

HEAL Vortex Separator

Sized Regulating String HEAL Seal

Conventional Artificial Lift

Conditioned flow Fluids turn the

corner

Large solids sump

Page 5: The Foundation for Efficient Artificial Lift in Horizontal ......HEAL SystemTM Full Cycle Artificial Lift Strategy 1. Control flowback • Install HEAL System post frac • Reduced

© Production Plus Energy Services Inc. 2017 | 5

HEAL System bottomhole pressure curve

HEAL System: SRS

Conventional practice bottom hole pressure curve

Page 6: The Foundation for Efficient Artificial Lift in Horizontal ......HEAL SystemTM Full Cycle Artificial Lift Strategy 1. Control flowback • Install HEAL System post frac • Reduced

© Production Plus Energy Services Inc. 2017 | 6

HEAL

Nat

ural

Flo

w

HEAL

Sys

tem

+ E

SP

HEAL

Sys

tem

+ Ro

d P

ump

HEAL System™

Time

Prod

uctio

n R

ate

(bbl

/d)

3000+

HEA

L Sy

stem

+ E

SP

HEA

L Sy

stem

™ +

Rod

Pum

p

Nat

ural

Flo

w th

ru H

EAL

0

Reduce CAPEX and OPEX: Fewer, less expensive system transitions

Dep

th 3

Time

Prod

uctio

n R

ate

(bbl

/d)

0

ESP

3000+

Gas

Lift

Rod

Pum

p Dep

th 1

Dep

th 2

Dep

th 3

Conventional Strategy

Nat

ural

Flo

w

Nat

ural

Flo

w

ESP

Gas

Lift

Rod

Pum

p D

epth

1

Dep

th 2

Page 7: The Foundation for Efficient Artificial Lift in Horizontal ......HEAL SystemTM Full Cycle Artificial Lift Strategy 1. Control flowback • Install HEAL System post frac • Reduced

© Production Plus Energy Services Inc. 2017 | 7

Producing BHP Comparison •  Ideally want lowest

OPEX artificial lift method at the appropriate phase of the decline curve

•  Challenge has also been the cost of transitioning between artificial lift methods

•  Plunger lift post natural flow period can delay CAPEX of Rod Pumping

Page 8: The Foundation for Efficient Artificial Lift in Horizontal ......HEAL SystemTM Full Cycle Artificial Lift Strategy 1. Control flowback • Install HEAL System post frac • Reduced

© Production Plus Energy Services Inc. 2017 | 8

• Transition to gas lifting without pulling tubing

• Gas lift same as conventional; injecting gas down production annulus

• HEAL System SRS increases production drawdown over conventional gas lifting as fluids are efficiently lifted around bend section and slug flow is mitigated

HEAL Slickline System: Gas Lift and Transition to RP Natural Flow Gas Lift

Separated Gas

Oil / Water

Formation Fluids (Oil, Water, Gas)

HEAL SLICKLINE SEPARATOR c/w FLOW THROUGH PRONG

SRS STRING

HEAL SEAL

Rod Pump

• HEAL Slickline System is installed below gas lift system

• HEAL Slickline Separator Flow Through Prong installed (HEAL Slickline Separator is bypassed and isolated from annulus)

• Extends natural flow period as SRS lifts fluids around bend and delays the onset of liquid loading

HEAL SLICKLINE SEPARATOR c/w SEPARATOR PRONG

HEAL SLICKLINE SEPARATOR c/w FLOW THROUGH PRONG

SRS STRING SRS STRING

HEAL SEAL HEAL SEAL

• Can low cost transition to rod pump without pulling tubing

• With slickline retrieve Flow Through Prong; install HEAL Separator Prong

• RIH and land insert pump/rods into upper nipple profile

• Production casing is open for separated gas

• HEAL System protects pump from gas and solids, as well as maximizes production drawdown

• Solids are separated and settled in HEAL Sump

OPTIONAL: STANDING VALVE

INSERT PUMP Separated Solids

OPTIONAL: CHOKE OPTIONAL: FRAC HIT PROTECTION

Page 9: The Foundation for Efficient Artificial Lift in Horizontal ......HEAL SystemTM Full Cycle Artificial Lift Strategy 1. Control flowback • Install HEAL System post frac • Reduced

© Production Plus Energy Services Inc. 2017 | 9

Case Study: Production Enhancement, Wolfcamp Permian Basin

•  The Permian Basin Wolfcamp formation is challenged by depth, high total fluid rates, high watercuts and severe high GOR gas interference

•  Installation in 7 Wolfcamp wells resulted in a sustained +40% increase in production

•  Successful transition from gas lifting to rod pumping

Page 10: The Foundation for Efficient Artificial Lift in Horizontal ......HEAL SystemTM Full Cycle Artificial Lift Strategy 1. Control flowback • Install HEAL System post frac • Reduced

© Production Plus Energy Services Inc. 2017 | 10

Rod Pump

Installed

HEAL System Installed

Reduce OPEX: Enhance Plunger Lift with HEAL System •  First commercial install:

•  Permian Basin Wolfcamp •  HEAL + continuous flow

plunger

•  Proceeding as expected: •  Consistent plunger arrivals •  Production 2x from rod lift •  Reduced OPEX

Page 11: The Foundation for Efficient Artificial Lift in Horizontal ......HEAL SystemTM Full Cycle Artificial Lift Strategy 1. Control flowback • Install HEAL System post frac • Reduced

© Production Plus Energy Services Inc. 2017 | 11

•  Slug flow mitigation improves downhole separation efficiency

•  Slug flow mitigation solves the root cause of erratic pump fillage with benefit of lowered BHP

•  Less stress on rods by avoiding erratic pump fillage

•  Stable fluid level allows for effective pump jack balancing

Case Study: Mitigating slugs improves separation Wolfcamp, Permian

Page 12: The Foundation for Efficient Artificial Lift in Horizontal ......HEAL SystemTM Full Cycle Artificial Lift Strategy 1. Control flowback • Install HEAL System post frac • Reduced

© Production Plus Energy Services Inc. 2017 | 12

HEAL SystemTM Full Cycle Artificial Lift Strategy 1.  Control flowback

•  Install HEAL System post frac •  Reduced proppant flowback and fines generation •  Lower risks and costs transitioning to artificial lift

2.  Maximize natural flow period (lowest OPEX) •  Bend section liquid loading dictates when a well ceases to naturally flow •  HEAL System designed to extend the natural flow period

3.  Eliminate or minimize intermediate artificial lift phases •  Minimize total CAPEX •  Enhance the performance of ESP’s

4.  Transition to rod pump as quickly as possible to minimize OPEX •  Maximize pump efficiency to extend top end of rod pump capacity (reduce or eliminate intermediate artificial lift)

5.  Maximize pump reliability and drawdown •  Minimize planned and unplanned workovers •  Lowest BHP possible to maximize rate and reserves •  Pump protection from gas and solids •  Offset well frac hit protection

Page 13: The Foundation for Efficient Artificial Lift in Horizontal ......HEAL SystemTM Full Cycle Artificial Lift Strategy 1. Control flowback • Install HEAL System post frac • Reduced

© Production Plus Energy Services Inc. 2017 | 13

DISCLAIMER This presentation is for use by the HEAL System™ user (User) only. User has sole responsibility for the use of the HEAL System™ and any field operations and installation activities in relation thereto and neither Production Plus Energy Services Inc. nor any of its affiliates or representatives (collectively, Production Plus) shall have any liability to User under any circumstances in relation to any field operations of or installation activities conducted by User. Production Plus does not makes any representations or warranties express, implied, statutory or otherwise as to the HEAL System™ (including as to the merchantability or fitness for a particular purpose thereof) or as to the procedures contained in this guide. No certainty of results is assured by Production Plus and Production Plus makes no warranty concerning the accuracy or completeness of any data, the effectiveness of material used, recommendations given, or results of these procedures or technology. User's use of the HEAL System™ is subject to the terms and conditions of its master sales agreement with Production Plus Energy Services Inc.

HEAD OFFICE 403-536-8311 [email protected] www.pdnplus.com

ADDRESS 1900 – 639 5th Avenue S.W. Calgary, AB | T2P 0M9

CLAYTON MYKYTIW 832-509-9719 [email protected] www.pdnplus.com