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Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

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Page 2: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

Can be used in liquid form for Chemical &

Waterflood EOR; or used in vapor-form for

Thermal or N2+CO2 Gas Injection EOR

Cleans the well bore, opens clogged pore-space

and channels, improving near-wellbore

permeability

Reduces the particle size of the oil to improve the

oil’s viscosity and mobility.

Provide’s a persistent surfactant action downhole

Restores wellbore/reservoir interface (e.g. repairs

“skin damage”)

Reduces interfacial forces.

Page 3: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

Surfsol’s patented technology and post treatment

effluent are 100% facility compatible.

Surfsol treatment virtually eliminates the possibility of

a shut-in well with our treatment program because it

prevents precipitation of asphaltenes and paraffin wax

crystals.

Surfsol can be used in its liquid-phase for Waterflood

EOR to reduce oil viscosity and neutralize asphaltene

and paraffin wax clogging of reservoir pore space –

increasing oil mobility to and through the wellbore

Surfsol can be used in its vapor-phase for Thermal EOR

and Gas Injection EOR to reduce oil viscosity and

neutralize asphaltene and paraffin wax clogging of

reservoir pore space – increasing oil mobility to and

Page 4: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

Starting from a Small Pilot Program through

Comprehensive Production Enhancement

Program. The demonstrated increase in

production is offsetting the declining

production curve of this field.

Page 5: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

If time is money…

Surfsol’s process generates an average 30%

gain in incremental oil from wells that are

treated.

The typical time for the treatment process is

a brief 24-48 hours. We’ll get your wells back

on-line quickly.

Page 6: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

Benefits of Surfsol’s

proprietary

rig-less technology

There is no waiting for work-over

rigs or other scarce resources to

start treating wells and impacting

production. You can deploy those

resources to their highest and best

uses.

Decreased time on site and a

small footprint mean reduced

exposure on the job site.

Page 7: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

Surfsol’s proprietary technology is proven to economically increase oil production even during periods of low commodity prices.

A fully scalable solution, it may be implemented on a single well, as a pilot program, or as a comprehensive production enhancement program.

Page 8: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

Designed to increase the production from moderately

producing fields or fields that have had a consistent

decline in production

Surfsol E4EOR addresses key issues that occur at the

wellbore/reservoir interface which may impede the flow

of heavy oil.

It reverses impeded flow due to blockage at the wellbore

caused by common skin damage mechanisms—

asphaltene, paraffin, inorganic scale, changes in

wettability and emulsion block.

Page 9: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

Oil particles attached themselves to the to the conditioned water, and are held in suspension, preventing re-soiling from occurring and safely allowing FOG to be permanently dissolved in water.

The wash off is completely bio-degraded and becomes soil constituents such as nitrate, dissolved oxygen, carbon dioxide, biomass and water.

Mixed together in a very diluted water solution, the bio-based surfactants within Surf-sol drastically reduce surface tension and work as a dispersing agent that carry other active ingredients more effectively than common surfactants.

Page 10: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

The relatively high success rate, particularly at low commodity prices, demonstrates the insensitivity of this process to this often volatile key economical variable.

Net oil price

($USD/BBL) % Success

16 56

24 65

36 71

60 75

Page 11: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

The Problem

The operator of an aging oil field in California with over 1,050 producing and 1,275 injection wells had been using water flooding to maintain reservoir pressure for over 20 years.

Oil production targets were being missed and continued subsidence had occurred due to dropping pressure in the reservoir.

This situation was further exacerbated by injection wells being shut down because injection pressures were exceeding governmental allowable limits.

Page 12: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

The Solution

Surfsol’s patented proprietary technology was injected in the wellbore/reservoir interface and used to remove mineral accretions and hydrocarbon/water emulsions in the flow channels of the rock in the near wellbore.

A 25% increase in average injection rates was achieved across the treated wells. Treatments were accomplished in 2-4 hours and have been effective for 3-6 months, depending on specific well conditions and flood water quality.

Page 13: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

From the time period of January, 2007 through October 2008, 2,688 treatments were performed in this program.

The overall impact in the time period of study was 712,700 bbls of incremental oil production.

This impact was achieved with an average increase of 3 BOPD ( a 30% increase) over 2,688 treatments performed.

Page 14: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

An ROI in excess

of 500% was

achieved based on

the actual cost of

treatment,

production down

time, and assuming

the price of oil per

bbl to be fifty USD.

The operator currently produces 17,000

BOPD from approximately 2,000 wells.

Page 15: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

The Solution

Surfsol was able to treat mechanically

damaged wells that had not previously

been candidates since it does not

require coiled tubing for effective

treatment.

Surfsol for water flood substantially

increased injection rates for over 3

months while keeping injection

pressure within regulatory limits.

Page 16: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

Rig-less well interventions using this technology and process are, not only a success from an incremental production standpoint, but more importantly an economic success in this field of operations.

Using rig-less well interventions as the primary method allows more expensive and limited rig resources to be used more effectively while managing the reservoir’s decline.

With its lower costs, the Surfsol’s interventions can be used on a higher percentage of the field’s wells to help arrest the field’s overall decline rate

Rig-less interventions of this type are a cost effective and readily available technique for building a pro-active production enhancement program.

Page 17: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

This solution consists of five

components:

Candidate selection

Treatment design

Treatment execution

Evaluation of treatment response

Refinement of the first three steps based

on the evaluated results.

Page 18: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

Key indicators for candidates with a high probability of success include:

A history of detrimental depositional issues

Thermal stability at a suitable production temperature

Indications of wettability changes induced from other work-over treatments

The presence of producible oil in the reservoir

Page 19: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

Nanotechnology is used to create this powerful line of environmental friendly oilfield application solutions

Conditioned water is used in conjunction with bio-based products to increase removal of paraffin, asphaltene and scale within the well.

Well stimulation products are based the use of all natural components as well as micro sized conditioned water particles in order to penetrate deep into the production zone

Page 20: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

Installation of fluid conditioner within well bore reduces buildup

90 – 120 day effective rate reduces need for regular treatment

Quarterly maintenance reduces required work-over treatment for problematic and mechanically damaged wells

Page 21: Larry Shultz presents TexasEOR.com Solvent Assisted Enhanced Oil Recovery Technology Primer

Traditional Approach

Surfsol’sApproach