Escolar Documentos
Profissional Documentos
Cultura Documentos
COM
FEBRUARY 2013
Reservoir
Characterization
Wellhead Pad
Design/Equipment
Subsea Processing
Advances
Enhanced Recovery
Drill Bit Technology
REGIONAL
REPORT:
South
America
HYDRAULIC
FRACTURING
UNDER PRESSURE
New methodologies
prop open more
opportunities
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sed on Drilling,Built for Growth
rex Energy,Co. is a Denver-based independent oil and gas
Denver. Midland.Tulsa.
www.cimarex .com
gram and maximizing our cash flow from production
tions. Acquisitions may be made from time to time, but
Opportunities
If you have a thirst for creativity,are passionate about
driving your own career and dream of working with a
Cimarex is the place for you. We're looking for top talent in a
variety of disciplines:
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C/MARE
F E B R UA R Y 2 0 1 3
A H A R T E N E R GY P U B L I CAT I O N
EOR
VO L U M E 8 6
ISSUE 2
w w w. E P m a g . c o m
58
62
67
38
RESERVOIR CHARACTERIZATION
70
74
78
82
86
90
94
104
110
122
REGIONAL REPORT:
SOUTH AMERICA
Hydraulic fracturing:
new perspective leads
to successes
By using alternatives to freshwater, operators
find opportunities for success that can help
change public perception during times of drought.
46
Optimized treatment
design shows promise
52
Proppant economics in
the Eagle Ford formation
IndustryPULSE:
8
12
WorldVIEW:
First in class
Unconventional:
100
Unlocking Indonesias
CBM potential
CONFERENCES
M
3
resource events!
MM
MARCELLUS-UTICA
MIDSTREAM
C ONFERENCE
& EX HI BIT I O N
The DUG conference series owes its remarkable success to the oil and gas leaders who showed the world how
to develop unconventional reservoirs. Now, as the U.S. rewrites its energy history, each significant step is previewed,
recognized and reviewed in the peer-to-peer exchanges that have become hallmarks of DUG conferences.
Hart Energy publications like the respected Oil and Gas Investor, technologically astute E&P and innovative
Midstream Business document the rise of the unconventionals. DUG conferences provide forums for the effective
information-sharing that is driving rapid expansion of a new global resource base. Plan today to attend, sponsor
or exhibit at the industry's most exciting unconventional conferences.
U-M1
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EVENT
IN 2013!
MIDCONTINENT
CANADA
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IN 2013!
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November 13-15, 2013
Pittsburgh , PA
AL-tSTRALf,4
dugmidContinent.com
DUG Australia brings market-leading insight on unconventional gas from coal-seams , shale and tight sands now
being developed in Australia and the Asia-Pacific region.
Topics include potential resources, project capitalization
and best drilling and completion practices.
dugcanada.com
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Get ready to innovate
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MANAGEMENT REPORT
Minimizing risk in A&D
16
20
24
EXPLORATION TECHNOLOGY
Flying high to find reservoirs
31
33
PRODUCTION OPTIMIZATION
Chasing the rabbits of public opinion
35
OFFSHORE ADVANCES
Safeguarding the right to operate
37
INDUSTRY IMPACT
Automated sources, streamers improve seismic repeatability
Produce
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temperature
wells faster
RHADIANT ' ultra-HT non-aqueous
drilling fluid system is the industry 's
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An operator in the Gulf of Thailand' s
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drill a high-angle well with a
BHST of 432F (222C) with zero
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115
TECH WATCH
Fracturing with field gas
TECH TRENDS
INTERNATIONAL HIGHLIGHTS
ON THE MOVE/INDEX TO ADVERTISERS
116
120
126
129-131
LAST WORD
Responding to the challenge of induced seismicity
132
COMING NEXT MONTH The March issue of E&P takes a deep-down look at
downhole tools and technology. Other features include intelligent operations, 4-D seismic,
drilling fluids, artificial lift, and floating production, and E&Ps annual Drill Bit Records report
will highlight the latest drilling breakthroughs. Regional highlights include the frenzied
activity in the Bakken shale and an overview of operations in Azerbaijan and Kazakhstan.
As always, while youre waiting for the next copy of E&P, remember to visit EPMag.com for
news, industry updates, and unique industry analysis.
ABOUT THE COVER
swaco .com/rhadiant
Mi SWACD
A Schlumberger Company
'Mark of M-I .. .
E&P (ISSN 1527-4063) (PM40036185) is published monthly by Hart Energy Publishing, LP, 1616 S. Voss Road, Suite 1000, Houston,
Texas 77057. Periodicals postage paid at Houston, TX, and additional mailing offices. Subscription rates: 1 year (12 issues), US $149;
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Printed on
recycled paper
NeoScope
Subscribe @ EPmag.com/explorationhighlights
PREMIUM CONTENT
?.3
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Experts say there is potentially up to 600 Tcf of gas still to be found in the
country.
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Solving challenges:"
HALLIBURTON
EP
As I
RHONDA DUEY
SEE IT
Executive Editor
rduey@hartenergy.com
Executive Editor
EPmag.com
JO ANN DAVY
SCOTT WEEDEN
MARK THOMAS
JENNIFER PRESLEY
RICHARD MASON
MARY HOGAN
VELDA ADDISON
CODY ZCAN
Assistant Editor
ALEXA SANDERS
LAURA J. WILLIAMS
Production Director
JO LYNNE POOL
ERIC MCINTOSH
ERIC ROTH
RUSSELL LAAS
Group Publisher
KEVIN BRADY
MIKE FORREST
Exploration Consultant, formerly with Shell
CHRIS JOHNSTON
VP & Managing Director, North America, Ensco
ULISSES T. MELLO
Manager, Petroleum & Energy Analytics, IBM
DONALD PAUL
Executive Director, University of
Southern California Energy Institute
EVE SPRUNT
Business Development Manager,
Chevron Energy Technology Co.
MANUEL TERRANOVA
Sr. VP Regional Operations & Global Sales,
Drilling & Production, GE Oil & Gas
RONNIE WITHERSPOON
President,
Superior Well Services, a Nabors company
DENNIS A. YANCHAK
Sr. Geosciences Advisor, Apache Corp.
HARTENERG Y
Editorial Director
PEGGY WILLIAMS
President & Chief Operating Officer
KEVIN F. HIGGINS
he oil and gas industry cannot thrive without technology, and technology
cannot be developed without innovation. But what, exactly, is innovation?
Peter Diamandis, chairman and CEO of the X PRIZE Foundation, has grappled with this concept since his dream of becoming an astronaut was stalled
when the US abandoned its manned space flight program in the 1970s. He
decided to investigate the idea of private space flight.
The idea was to have innovation be driven by competition, Diamandis told
a gathering at the recent Shell Innovation Summit. He proposed a competition that would award US $10 million to a team that could build a spacecraft
that could carry three adults into space.
It took Diamandis six years to raise the money, but in the end 26 teams
competed.
This approach differs from normal R&D, he said, because it incentivizes
nontraditional players to innovate. We look at where there are market failures, he said.
What Diamandis considers a market failure would be considered by most
others to be a serious global issue. Some of the recent X PRIZE challenges
have included developing a car that gets 161 km (100 miles) to the gallon, a
handheld device that can diagnose a patient as accurately as a team of specialists, and a map of the ocean floors.
One recent challenge was to double the rate at which an oil spill can be
cleaned up from a body of water. More than 300 teams signed on for the initial competition; this was later narrowed to 10. Seven of the 10 teams managed
to double the rate, and the winning team increased the cleanup time 600-fold.
One team met in a tattoo parlor in Las Vegas, Diamandis said. Some of
these people come from very unusual places.
So what is it that drives X PRIZE winners to innovate? The $10 million prize
is no doubt a significant motivator. But Diamandis thinks there is more to it
than greed.
Its tied to passion, to trying to make a difference, he said. Everything
that fuels these people comes from their hearts and souls. By the time they
make a breakthrough, they will have been told no a thousand times.
Innovation requires absolute persistence, he
added. Everything is impossible until you make
it happen.
industry
PULSE
Electricity
Electricity is the biggest slice of the demand side and also
the slice with the greatest upside for increased gas consumption. In January 2011 coal was the fuel of choice for
48% of electricity generation, while natural gas accounted
for about 20%. But as prices plummeted by April 2012, gas
was generating as much electricity as coal.
Unfortunately for coal, the EPA recently set tough limits
on CO2 emissions for new electricity plants. Without carbon capture and storage (CCS), coal is no longer an
option for new plants. Clean coal cannot happen without
CCS, and no coal CCS facility has ever been built in the
US. However, the greatest challenge for CCS is not technical; it is economic. The numbers just do not make sense.
A 2008 McKinsey report, Carbon Capture and Storage:
Assessing the Economics, estimated that if about 100 CCS
projects were built by 2030, the cost of removing 90% of
the CO2 produced from new coal plants might fall to
somewhere between $37/ton to $55/ton of CO2. Early
plants would cost at least twice that much. And combining
oxygen atoms with coal produces about two tons of CO2
per ton of coal burned.
For reference, US utilities paid about $45/ton for coal
in 2012. Burning clean coal would roughly triple that fuel
cost. But the story gets even worse. Due to carbon capture
energy demands, utilities would have to burn 25% more
coal just to produce the same number of kilowatts. And
only a handful of Americas most modern coal-fired plants
could potentially be retrofitted with CCS.
Coals greatest asset as a fuel is the number of older,
paid-off coal plants. But those plants also produce the
Febr uar y 2013 | EPmag.com
HSE
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www.halliburton.com/HSE
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II
industry
PULSE
Since 2001 and especially in the past year there has been
a dramatic decrease in the use of coal and a dramatic
increase in the use of gas. Once again, the market is a powerful force. Here is what the US electricity market looks
like right now, and here is where it appears to be headed:
Coal will continue to shrink due to cost and pollution
issues (but export markets are strong);
Gas has major market and environmental advantages
and should continue to grow if we can mitigate price
spikes and better address public concerns about fracing;
Delays and cost overruns for the two new US nuclear
plants will hurt prospects for growth;
Hydropower lacks good sites for new dams and has little growth potential;
Wind and solar are heavily dependent on unpredictable subsidies to consistently grow; and
Everything else is too small to matter unless enhanced
geothermal can greatly reduce costs.
industry
PULSE
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The new Bartell Geology and Geophysics Field Camp in the Colorado mountains provides students of the ConocoPhillips
School of Geology and Geop hysics with a chance to acquire real-world f ield experience in the summer.
www.ou.edu/mcee
MEWBOURNE
COLLEGE OF EARTH&ENERG'
THE. UNIVERSITY OF OKLAHOMA
world
VIEW
First in class
Christopher J. Wiernicki, ABS president and CEO, talks about the changing role of class, the
need for agility in a rapidly advancing industry, and the value of partnering to extend the
reach of offshore oil and gas operations.
J. Massimo, Contributing Editor
We have been successful for the last 60 years by helping the industry take on new and challenging situations.
ABS was the first society to class an offshore unit, which
required us to develop a set of safety requirements using
our marine experience and engineering judgment for
an application never seen before.
We are a technology-driven organization. My background and training are in engineering, so the person
at the helm of ABS understands the importance of technology development and the role technology plays in
decision-making.
I believe the ability to apply core engineering and
technological knowledge along with our experience will
continue to be a key differentiator in developing practical innovative solutions that help the offshore industry
move forward.
Another significant difference is that we know the offshore industry is different from the marine classification
business. We have a separate Offshore Technical Committee made up of industry experts to provide guidance
on rule development specifically for the offshore oil and
Febr uar y 2013 | EPmag.com
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availability of material
impact your operational
bottom line.
NOV Wilson is your local supply chain partner and
delivers premium quality oilfield products
throughout North America and around the world.
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ABS classed the first mobile offshore drilling unit in 1958 (top),
the first production spar in 1996 (middle), and the largest production semisubmersible in 2007 (bottom), among many other
breakthroughs.
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management
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$110
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Shown is the forward three-year WTI crude oil curve over a 45-day
period in spring 2012, illustrating how price movements can jeopardize a deal. (Image courtesy of Asset Risk Management LLC)
16
Options
Put options are the building blocks for hedge transactions
that do not create exposure. A put option is a contract
between two parties to exchange an asset (the underlying)
at a specified price (the strike) by a predetermined date
(the expiry). One party, the buyer of the put, has the
right, but not an obligation, to sell the asset at the strike
price by the future date, while the other party, the seller
of the put, has the obligation to buy the asset at the strike
price if the buyer exercises the option. The buyer of the
put option pays a premium to the seller.
In our view, producers tend to overpay for put options.
A purchased put protects the producer in the unlikely
event that prices fall to zero. But our analysts believe that
prices below $65 are not sustainable in the long term since
unconventional oil projects become unprofitable. Therefore, price protection below $65 has marginal utility, especially if the bank price deck is at or above this level. A
producer is better off selling off protection below $65
via a put spread.
The put spread is the combination of a long put option
and a short put option at different strike prices for the
same time period. The cost of a put spread is lower than a
put option because the producer collects a premium for
the sold put option.
The put swaption is an option granting its owner the
right but not the obligation to sell an underlying
swap at a specified price. It also requires the buyer to
pay a premium to the seller. Put swaptions exercise
into swaps if the market price at expiration is below
the strike price. If the market is above the put swaption
strike price, the producer would not exercise and is free
to hedge. If the acquisition has not closed at the exercise
date, then the put swaption will cash-settle, and the producer remains unhedged. The expiration date of a put
swaption should be set a few weeks after the closing date
to account for minor delays in closing.
Febr uar y 2013 | EPmag.com
management
REPORT
Compliance Module.
Cash-free hedging
What if BuyCo does not have enough cash on hand to
b,
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17
management
REPORT
ing in hedge economics. The acquisition sales price is simply adjusted up or down based on the mark-to-market of
the hedges at the signing of the production sharing agreement. It is possible to avoid costs for transferring the
hedges, especially if the buyer and seller have a common
bank for their credit facilities.
Regardless of the strategy, producers need to look deep
into the market to ensure they get the most hedge coverage for the cheapest possible price. Hedging is an art, not
a science. The optimal combination of puts, put spreads,
and put swaptions should be created with careful attention
to market view, curve structure volatility, and option skew
so that the producer can get the most price protection for
the least cost. Most importantly, producers should treat
their hedges like assets and manage them much as they
would manage the assets bought in a deal.
Acknowledgment
This article originally appeared in the October 2012 issue of Oil
and Gas Investor.
SUPERPORT :
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TECHNICAL BENEFITS
Radial Jetting creates a borehole by blasting the formation to powder with hi gh pressure fluid (just like a reall y long perforation).
DISTINCT ADVANTAGES
The system relies on erosional power and the pressure generated for penetration are all contained within the system. Once these
pressures are outside the system they have no longer any pressure left to affect the formation balances. The low volumes used
are also minimizing any hydrostatic effects. With the use of very low volume of carefully selected fluids the formation damage is
reduced to practically Lero as a result of the formation compatible fluids and the minimum dwell time of these fluids in the well.
As compared to frac operations,whereby huge volumes of fluid and pressure are forcing the reservoir to break against its natural
pressure balance ,radial drilling system essentially erodes a channel into the formation.
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Defining benchmarks
We have through our history launched step
changing innovations, among these are the
Ramform Series - benchmarks of marine seismic
operations.
Our competent and interdisci p linary teams are
worldwide.
A Clearer Image
www.pgs.com
N
exploration
TECHNOLOGY
RHONDA DUEY
Executive Editor
rduey@hartenergy.com
Read more commentary at
EPmag.com
31
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NEWPARK
DRILLING FLUIDS
drilling &
COMPLETION
SCOTT WEEDEN
Senior Editor, Drilling
sweeden@hartenergy.com
Read more commentary at
EPmag.com
33
SMARTER
WATER MANAGEMENT.
Completion
& Stimulation
Products
Flowback &
Well Testing
Fluids
Conditioning
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Transfer
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ROIIVATER
ENERGY SOLUTIONS
production
OPTIMIZATION
keeping
the publics
attention
can be as
difficult as
catching
Permian basin
jackrabbits on a
summer day
JENNIFER PRESLEY
Senior Editor, Production
jpresley@hartenergy.com
Read more commentary at
EPmag.com
survey of the public opinion of shale gas development. However, in regard to the trustworthiness of
the news media when it comes to coverage of the
industry, only 17% felt the coverage was extremely
or very trustworthy.
Peter Robertson, an independent senior advisor
for oil and gas at Deloitte LLP, said the report shows
that there is an opportunity that exists right now to
improve the perception of trustworthiness of the
industry by providing more information.
But has the industry provided too much? Regina
Hopper, president of Americas Natural Gas Alliance,
in remarks about potential hydraulic fracturing in New
York, said that residents there have heard so much
from both sides that theyre kind of shutting down.
The remark was made during the US Energy Associations State of the Energy Industry forum in Washington, D.C. Hopper encouraged natural gas supporters to
have conversations with people who sincerely have questions about natural gas development, keeping in mind
that the mission is to talk with these folks not to
them, but with them.
Her remarks are timely in that supporters of the
motion picture Promised Land have attempted to direct
the publics attention to the national debate on
hydraulic fracturing. But based on early box office
returns, it appears that the movies supporters may
learn what most in the industry already know: that
capturing and keeping the publics attention can be
as difficult as catching Permian basin jackrabbits on a
summer day. The real trick, however, is in knowing
what to do with the attention after it is caught so that
it does not get away or bite
you badly in the polls.
35
SELEC
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offshore
ADVANCES
MARK THOMAS
Senior Editor, Offshore
mthomas@hartenergy.com
Read more commentary at
EPmag.com
37
COVER STORY:
FRACTURING
COVER STORY:
FRACTURING
the oil and gas industry is criticized for using freshwater that could be used for other purposes, said
Stephen Holditch, professor of petroleum engineering at Texas A&M University.
While the challenges facing the industry on waterrelated issues are numerous, in regards to the sourcing of water for operations, Holditch said that one
challenge is to put the use of freshwater by the oil
and gas industry in perspective to other uses.
According to the most recent report on estimated
water use conducted by the US Geological Survey,
water use was about 410 Bgal/d in 2005. Power generation, irrigation, and public consumption are all
significant draws on freshwater supplies located on
and below the surface. Fortunately, the hydrologic
cycle works to replenish the supplies except during
times of drought. It is when the supply gets tight
that the public wants to know how much water it
takes to frac a well.
Hydraulic fracturing may use as little as 50,000
gallons of water in a conventional vertical well treatment. Multiple interval fracturing in horizontal
Putting it all in perspective
wells may require 2 [million] to 6 million gallons
As the industry knows all too well, water manageper well, said Steve King, US region sales and techment is critical. It is during times of drought that
nical director of
fracturing servThe comparison between the amount of water needed to drill and fracture a single well one time and
ices for Weatherthe amount consumed by the public provides perspective on freshwater usage.
ford. This is the
Unconventional play
The amount of water needed to
Is equivalent to the amount
total amount of
drill and fracture one Chesapeake
of water used:
water required to
deep shale gas well:
fracture a well.
Eagle Ford shale
4.9 MMgal
to irrigate 11.6 acres of
Once a well is
vegetables in season
fractured and
placed on producby the City of San Antonio
in ~17.7 minutes
tion, it may be
capable of proMarcellus shale
5.6 MMgal
to irrigate 9 acres of corn
ducing for 20 to
in season
30 years. Fracturby New York City in 8 minutes
ing is not an
ongoing process
Barnett shale
2.8 MMgal
to irrigate 4.2 acres of corn
in a given well.
in season
According to
by the Dallas-Fort Worth
a
Chesapeake
Metroplex in ~4.2 minutes
Energy water use
fact sheet, total
Niobrara shale
4.3 MMgal
to irrigate 6.5 acres of
Wyoming wheat for a season
water use in the
Eagle Ford shale
by the City of Denver in
area in 2008 was
~26 minutes
approximately
Source: 2012 Water Use Fact Sheets, Chesapeake Energy
klahoma and Texas are both home to thriving
unconventional resource plays where hydraulic
fracturing is unlocking the potential of hydrocarbonbearing formations. However, the shift from vertical
to horizontal fracturing of wells has brought with it
the need for greater quantities of water and a greater
awareness of drought conditions.
Yet year after year, summer weather forecasts for
the High Plains and southwestern US promise
plenty of high temperatures and zero chances for
rain. In summer 2012, more than 90% of Oklahoma
was categorized as being under extreme or exceptional drought by the National Drought Monitoring
Network. A quick look at a drought map would
show that Texas also was severely impacted.
This months E&P cover looks at new perspectives
in alternative water usage, a novel application
of treatment and stimulation designs in the
Ordos basin, and proppant economics of the
Eagle Ford shale.
Hydraulic fracturing:
new perspective leads
to successes
By using alternatives to freshwater, operators
find opportunities for success that can help
change public perception during times of drought.
Jennifer Presley, Senior Editor, Production
38
39
COVER STORY:
FRACTURING
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COVER STORY:
FRACTURING
In this map showing drought conditions as of Aug. 21, 2012, it is easy to identify the many areas across the continental US, covering several unconventional plays, that have experienced drought conditions ranging from abnormally dry to exceptional. (Image courtesy of the
National Drought Mitigation Center at the University of Nebraska-Lincoln)
The energy companies understand that water is a primary issue when it comes to having a license to operate,
said Michael Young, associate director for Environmental
Systems and senior research scientist at the Bureau of
Economic Geology at the University of Texas at Austin.
The companies are working to avoid using potable
groundwater wherever they can. And this means using
alternative sources.
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FRACTURING
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FRACTURING
COVER STORY:
FRACTURING
The two horizontal wells were the first in this reservoir. The vertical wells
that were completed initially produced 31 b/d to 179 b/d after conventional
fracturing treatment with crosslinked gel and about 50 to 120 tons of proppant
placed. Production from the vertical wells declined quickly in three months to
fewer than 18 b/d and could hardly produce economically afterward. From
previous post-closure pressure decline analysis it was determined that effective
permeability can be as low as 0.01 mD. Extremely low permeability and insufficient fracture surface area for oil production were considered the main causes
for low production.
SAVE THE
ONE WELL AT A TIME7'
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FIGURE 2. By correlating the features from several well logs, the structural variation
along the laterals between the monitoring wells was identified.
47
COVER STORY:
FRACTURING
complex natural fracture and hydraulic fracture interaction via new mathematical models in tight reservoirs.
For example, the 3-D geocellular earth model captures sedimentary, stratigraphic, and geomechanical
details in the reservoir and bounding layers. In the
past these models have been used solely for geologic
study and reservoir simulation. However, in the new
workflow the hydraulic fracture completion design
based on the 3-D geoceullar earth model is coupled
with production prediction based on the hydraulic
fracture gridded onto the upscaled reservoir model.
This enables the full usage of the model and a much
more realistic picture of hydraulic fracturing behavior
and its impact on well productivity.
For improved accuracy, model calibration plays an
important role in this workflow. While 3-D earth models
and complex fracture models provide details in realworld dimensions with deliberate data inputs, model
accuracy is improved through fracture and production
behavior calibration.
-_"
FRAC IT!
,'eate `racb.ire1 F
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48
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COVER STORY:
FRACTURING
tight oil reservoirs in the Ordos basin. Production normally varied from 31 b/d to 50 b/d in vertical wells and to
201 b/d for horizontal wells, on average. The initial result
showed substantial production increase compared with
the production from the Chang-6 formation of the nearest
offset reservoir as shown in Figure 5, which actually had
slightly better reservoir quality. Compared with the best
horizontal well, the initial results showed an 80% to 100%
production increase.
The stabilized production rates after three months
were 5.5 and 3.9 times those of the same vertical well.
Results showed more than a 50% increase compared
with the horizontal well completed in the same formation in the northern part of the basin.
FIGURE 4. The 3-D zonal model with minimum horizontal stress
was determined based upon properties from the monitoring
wells along the laterals.
50
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COVER STORY:
FRACTURING
Proppant considerations
The two most commonly examined properties of
proppant are fracture conductivity and price. Proppant
damage is one of the mechanisms that will reduce conductivity. Determining the correct stress initially is critical to proppant selection and maintaining conductivity
52
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ON ANY FRAC JOB
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completion time.
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WORK SMARTER -
COVER STORY:
FRACTURING
of proppant of interest over the cost of subject proppant. Because conductivity and concentration have a
linear relationship, one can multiply the conductivity by
the inverse of the cost ratio to determine the new effective proppant concentration that is a dollar-for-dollar
equivalent.
In other words, if proppant B is two times as expensive, what would the conductivity be if only half as much
was used?
The idea is to predict what the conductivity would be
if a dollar-for-dollar equivalent existed between proppants. This is a completely new way of thinking about
proppants and as these have traditionally been viewed
on a pound-for-pound basis.
An example of the second method would be to choose
two proppants and record the conductivities at the same
stress (7,000 psi at 9.77 kg/sq m) and the cost per kilogram. The cost ratio can be determined by dividing the
new proppants cost over the original proppants cost
for instance,the cost of a ceramic divided by the cost of
white sand, which typically is a ratio of 2:3.
The conductivities recorded were at a proppant
pack concentration of 9.77 kg/sq m. Dividing this concentration by the cost ratio would result in the concen-
Design simulation
54
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multi-stage
WELL SOLUTIONS
completions
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COVER STORY:
FRACTURING
MODEL I-CU
hydraulic fracturing
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EOR
MEOR is estimated to cost around US $10/bbl of produced incremental oil. The technology uses pre-existing
waterflood equipment. The periodic treatment is normally brought in on a tank truck and piped to the injector manifold for pumping. After the treatment is
pumped, the pipes are disconnected and the truck
drives away. Compare this method to alkali surfactant
polymer chemical EOR, which requires a significant
investment in infrastructure, from mixing tanks to additional pumps to treater tanks for hard-to-break emulsions. Above ground, MEOR has no footprint. Below
ground, once feedings are stopped, the ecology of the
reservoir will return to its natural state, and the effects
caused by the microbe treatment dissipate over time.
MEOR can be applied to high-water-cut wells in the later
stages of secondary production or at the beginning of a
waterflood treatment to increase production. It may also
be used in conjunction with other EOR technologies.
MEOR is a reversible process.
EOR
team became convinced that inoculation, in which a fermented batch of the functional microbe is injected in
large volumes as a broth prior to nutrient injection, is
critical to success. The method of putting only nutrients
down a well is not enough for consistent results, and lab
tests support this finding, as is highlighted in Figure 1.
The figure shows a pair of identical slim tubes treated in
an identical manner using live injection water to provide the background of organisms present in the well.
One slim tube, however, was inoculated with the preferred microbe while the other was not. Both were fed
nutrients. Only the inoculated slim tube presented the
desired bioplugging mechanism.
Once the reservoir is inoculated, the microbes are
fed a customized aqueous nutrient solution that is
pumped downhole periodically. DuPont relies on a
proprietary injection process protocol to ensure that
nutrient effects are propagated far beyond the wellbore
to prevent wellbore fouling and to ensure that the
inoculated microbes deep within the reservoir are fed.
???
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PROPPANTS
FLUIDS AND
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59
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NASI
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Marion , Ohio, USA
, Canad a
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FIGURE 2. A 15% to 20% increase in production rate was demonstrated for affected
producers with a corresponding decrease in water cut after the MEOR technology was
deployed.
after the MEOR technologies were deployed. Production rates rose due to an
increase in sweep efficiency using the bioplugging mechanism. Measuring the
increase in injection pressure at a constant injection flow was a challenge but
served as a key indicator that the technology was able to develop significant
and sustainable bioplugging of the reservoir as it was designed to do, significantly improving flow conformance. These results were achieved with a much
smaller environmental and capital footprint than other EOR technologies.
Overcoming biases
MEOR providers still fight to overcome biases in the oil and gas industry. Sustaining and encouraging microbial life in wells sounds counterintuitive to
many reservoir engineers and operators. Certain microbe classes such as sulfate-reducing bacteria (SRB) can be particularly damaging, contributing to
corrosion of ferrous metal surfaces and oil recovery equipment as well as
souring and plugging. However, the Matrx technology relies on nitrate-reducing bacteria, which are generally benign. Data show that the technology may
actually inhibit the growth of harmful SRB.
Future growth
Matrx MEOR Technology is steeped in the companys foundational experience with industrial biosciences and combines the companys expertise in
chemical and biosciences with its growing presence in the upstream oil and
gas sector. The company is now looking for partners in the US market to
deploy the technology. DuPont continues to evaluate other ways in which
microbiology can be used in various upstream processes or combined with
other EOR methods like CO2 flooding.
EPmag.com | Febr uar y 2013
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61
EOR
Enhancing production
with new gas lift valve
A modified design improves performance and reliability.
Traditional solutions
Historically, the only reliable solution to the gas lift system
design and performance optimization challenge
described above has been to:
Conservatively select a lift gas injection depth that will
work under the worst-case combination of reservoir
pressures; and
Install a retrievable dummy GLV at a deeper location
in the well that could be accessed if the worst-case
combination does not materialize or if conditions
change, such as a fall in reservoir pressure.
In the event deeper gas lift became possible, the dummy
valve would be retrieved along with the existing orifice
GLV using wireline intervention techniques. The dummy
valve would then be replaced with a new orifice valve, and
the orifice valve would be replaced with a new IPO
unloading valve.
This activity is among the most challenging of all wireline operations and usually takes a few days to complete.
Furthermore, in deviated wells or wells where scale precipitation has occurred, it has been known to take a number
of weeks. At the worst, loss of wireline can result in the
requirement for workover if fishing operations prove
GLVs enable gas to be injected to improve production rates. (Images courtesy of PTC)
62
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EOR
unsuccessful. Consequently, it
can become very expensive,
especially in subsea wells.
A new solution
PTC has developed a new IPO
unloading GLV design that has
been field proven in hundreds
of wells. The GLV is designed
to be equally effective as both
an orifice/operating valve and
The new IPO valve can be used either as an unloading valve or as an orifice valve.
as an IPO unloading valve.
It flips between these modes
as needed.
the bellows and/or the unloading valve seal. It usually is
Consequently, a gas-lifted well now can be completed
not recommended.
without using a dummy valve at the deepest envisaged
The new valve design
lift gas injection depth. Instead, an orifice valve can be
The new IPO unloading valve design is modular, incorpoinstalled at that depth, and an IPO unloading valve can
rating in series both a standard orifice check valve module
be installed at the depth the conservative design assumes
and an unloading valve module. The latter incorporates a
the lift gas injection will be restrained to.
patented double-acting bellows design rated to 10,000 psi.
Depending on the actual reservoir and well characterisDespite this high-pressure rating, the double-acting
tics, the IPO unloading valve then can be reliably used
bellows facilitate unusually long valve stem travel. This is
as an orifice valve or as an unloading valve without the
because the charge pressure does not act on the internals
requirement for wireline intervention.
of the bellows, which are instead fully sealed and filled
Traditional valve design
with silicone oil. In this case, the charge (or dome) presOriginal IPO GLVs incorporated a metal bellows charged
sure acts only externally on the upper cross section of
with high-pressure gas to close the valve when the annuthe bellows.
lus pressure fell below the bellows charge pressure.
When the dome pressure is higher than the annulus
The design has not changed much since the first
pressure, the dome side of the bellows is fully compressed,
patent in 1944.
and the well side of the bellows is fully extended (and vice
PTC technicians identified numerous limitations in this
versa when the annulus pressure is higher than the dome
original design, most critically that the bellows move both
pressure). In both cases, the extent to which the bellows
axially and radially as the annulus pressure changes, and
moves is limited by the amount that the double-acting belthe amount they move is not physically constrained. Conlows can be compressed.
sequently, these bellows have a relatively low pressure ratConsequently, the bellows can be designed to travel a
ing, which limits the depth to which they can be installed
relatively long distance with a very small pressure differenin the well.
tial. This facilitates an extremely responsive mechanism
They also have to be relatively stiff, resulting in a slow
and long unloading valve stem travel, which addresses
response time and only a very short valve stem travel
the potential for erosion and facilitates rig time savings
between the open and closed positions. For this reason,
during unloading.
long-term gas lift operation through a traditional IPO
The double-acting bellows also is very reliable, having
unloading valve would most likely result in damage to
been tested by an operator to more than 100,000 cycles
without fail. The major benefit of this
is that when the bellows is in the open
position, the unloading valve becomes
almost hydrodynamically invisible,
meaning the valve can be used reliably as either an IPO unloading valve
The new design incorporates a bellows system with greater unloading valve stem travel
or as an orifice/operating valve.
and better reliability.
64
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EOR
Benefits of rhamnolipids
AGAEs findings show that not only do the new rhamnolipid-containing formulations bring down critical IFTs to
EPmag.com | Febr uar y 2013
extremely low levels but also that the IFT effect can
be accomplished using very low concentrations of rhamnolipids and smaller amounts of chemical surfactants.
These results are significant on several levels. First, significant cost savings can be achieved for surfactant-based oil
recovery since the amount of required surfactants can be
reduced by very low concentrations of rhamnolipids. This
means less surfactant must be purchased and transported
to recovery sites.
Second, the environmental impact of recovery will be
diminished by the use of rhamnolipids and less chemical
surfactant product, as most chemical surfactants are
toxic to the environment. Rhamnolipids, on the other
hand, are earth-friendly and nontoxic. In addition, by
using less chemical surfactant, there will be less postrecovery chemical surfactant needing disposal.
Third, rhamnolipids used for recovery actually can
help remediate oil spillage and contamination after
recovery because the presence increases the bioavailability and mobility of petroleum hydrocarbons and acceler67
EOR
ates the natural endogenous microbial-based degradation, both in situ and ex situ.
n
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HART ENERGY
RESERVOIR
CHARACTERIZATION
very oil or gas company that has ever existed has put
some kind of number on reservoir performance. That
number might have been in barrels, cubic feet, flow rate,
pressure, metric tons, BTUs, water, a ratio, or some other
measure, all measured over time. Time then was remeasured in money. That money translated to an economic
metric such as net present value or booked reserves. Such
metrics became the decision focus for the future of project investments. The actual metric of risk the investors
were willing to take was often parlayed back to a machine
(such as the popular computerized Monte Carlo statistical method) to grant comfort to the risk-takers.
While we can calculate a risk-money number to several
significant digits, how far we drift from hard reality using
number analysis is too frequently measured in dry holes
and premature production failures. This part of science
is more of an art, and art is in the eye of the beholder.
Therefore, science and engineering are turning to a
machine process once again to see if there can be a
more deterministic method we can use.
New research
such as seismic data and limited well test data. Ultimately, it would calibrate extensively using productionengineering flow data. Systematic assessment of the
information content in each type of data will therefore
be possible.
One large objective of the study is to prove that a geologic model can be calibrated to actual dynamic reservoir
performance using a statistical model selection approach.
Moreover, the objective is to prove that calibrated models
can be used to estimate key reservoir flow connectivity
characteristics discernible from early appraisal data such
as well tests. The key here is in early appraisal, the decision
time on just how big the development footprint should be.
Marathon Oil provided production performance and
well-test data for this project. The existing first-generation
software for building a reservoir model, performing
model selection, and subsequently assessing flow connectivity was created using seismic, regional well data,
and a few local well examples. The model was tested for
mechanical defects against preliminary versions of samples within Marathons Lobster dataset.
UT is continuing its work on the RPSEA contract in
2013. The latest effort will determine and verify the software using history matches against the full Lobster
dataset and will confirm that the model is robust in predicting reservoir conditions. This segment of the work
will concentrate on the probabilistic assessment of reservoir flow connectivity conditioned to geologic parameters
using a reservoir database. The plan is to assess complex
reservoir characterization of turbidite reservoirs through
matching production performance. Finally, the work
should validate proxy functions developed for well test
analysis using pressure data and early well history to
match results.
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www.spectrumasa .com
RESERVOIR
CHARACTERIZATION
Probable modeling
Researchers at the UT Bureau of Economic Geology
have spent the past decade mining previously published
and unpublished research for information on the characteristics of deepwater deposits. These data are housed in a
proprietary database, which now contains thousands of
measurements of sand and shale-bed lengths and thicknesses, spatial geometries, porosities, permeability, lateral
connectivity relationships, lateral overlap, and vertical connectivity. In addition, programs in outcrop study have
yielded decades of knowledge on below-seismic heterogeneity in deepwater deposits.
Subsequently, these statistics, together with the well-specific information provided by Marathon, will be used to
construct a suite of plausible/equi-probable models.
The fast proxy depicting the relationship between reservoir connectivity and flow performance can be used to
perform fast uncertainty assessment and sensitivity analysis. Using the algorithms, including Growthsim and random-walker algorithms, researchers build a suite of
geologic models and corresponding dynamic simulation
models based on appraisal well data and appraisal plus
development well data coupled with seismic data. Testing
and screening of these models with production history
from the Lobster field will use existing automated historymatching or model selection techniques.
Once again, science and engineering decision-makers
turn over part of the decision outcome to the Monte
Carlo predictor. The multiple point product terms in the
proxy expression are representations of the higher order
connectivity of the reservoir petrophysical model. Due to
uncertainty in the detailed characteristics of the reservoir,
the multiple point product terms are themselves uncertain. The probability distributions describing the uncertainty in specific higher order terms can be calibrated on
the basis of the suite of history-matched reservoir models
for the Lobster field. Monte Carlo uncertainty estimates
for flow responses such as oil saturation can be constructed by sampling from the uncertainty distribution
for specific reservoir connectivity terms (keeping the
other terms constant). The results will be presented in
the form of connectivity-response surfaces that provide a
visual representation of the relationship between different measures of reservoir connectivity and the corresponding response.
Multiple representations of reservoir compartmentalization also are possible considering the uncertainty in
the relationship between seismic two-way time and actual
horizon depths. The initial suite of reservoir models used
during history-matching also can take into account the
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Evaluating reservoirs
with a sharper focus
A new tool combines technology, application expertise, and
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The RES tools small and uniform 4.5-in. outer diameter helps
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Unconventional Reservoirs
C h a l l e n g i ng En v i r o n men t s
RESERVOIR
CHARACTERIZATION
formation response
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Dyne-Drill
DRILL BIT
TECHNOLOGY
significant challenge for oil and gas operating companies worldwide is to maximize drill bit run intervals within interbedded, hard-to-drill rock sections. In
these more challenging applications, polycrystalline diamond compact (PDC) and roller cone insert designs are
pushed to their limits and often fail due to PDC thermal
fatigue, severe abrasion, bearing failures, or impact damage. This translates into additional trips for replacing bit
types or cleaning the hole from junk left in the hole,
representing significant added costs.
An additional cost that operators incur is represented
by the utilization of multiple bits to finish these intervals
when a single diamond-impregnated bit can complete
the interval using a mud motor or a turbine. Standard
mud motors have a maximum circulating life of 250 to
300 hours depending on temperatures, fluid type in the
string, and a variety of other downhole environmental
variables. When a challenging zone is encountered that
results in the need for a high-speed drive technology,
high-speed mud motors or turbines are often used with
impregnated-diamond bits to complete these intervals.
Tool selection criteria will consider longevity, torque
capability, and temperature tolerance, amongst other
variables. From the directional drilling aspect, traditionally only mud motors were used,
but currently both motors and turbines are used to steer the well
toward the objective.
Advanced design
To meet the industrys needs,
National Oilwell Varco developed
the DuraDiamond Evolution
diamond-impregnated line of
drill bits. The drill bits were
designed as a result of knowledge
gained through experience combined with the latest materials
engineering that have pushed the
evolution of conventional designs,
incorporating innovative design
concepts coupled with the
78
Bit durability
The design enhances durability of the bit, creating a longlasting cutting structure that can stay in the hole longer
and achieve longer intervals. New design features are
included to mitigate specific problems like localized wear
in specific lithologies via change in grit mixes, profiles for
drive type/directional trajectory and formation abrasion
potential, selection in blade layouts and sleeve materials
(matrix or steel), and API pin and short-gauge configurations for directional applications on motor assemblies.
With these features, the product becomes more versatile
for drilling not only hard and interbedded rock layers
but also interbedded sequences of varying compressive
strengths. The bits consist of two series: Sub Series 5
and Sub Series 7. The Sub Series 5
bit design includes abrasion- and
impact-resistant PDC cutters placed
in optimal positions in the profile of
the bit. The sunken thermally stable
polycrystalline diamonds were engineered to the cone and nose areas,
providing increased wear protection.
This series has sharp and straight bit
blades for drilling through softer formations that require shearing action.
It has an interruptions option for
additional shearing and cleaning in
softer formations. It also has optimized hydraulics for efficient cooling
This 6-in. DD5760 bit achieved a country
and cleaning.
record in Colombia. (Images courtesy
The Sub Series 7 bit has an
of National Oilwell Varco)
increased blade count added to
Febr uar y 2013 | EPmag.com
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DRILL BIT
TECHNOLOGY
the center of the bit to improve durability. The optimizing of the blades layout increases the contact surface
area, which improves the ability to remove more rock.
The round blade geometry provides more cutting surface, and the shoulder of the bit has dedicated ports and
improved hydraulics, enabling it to get sufficient fluid,
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TECHNOLOGY
82
A fixed cutter bit leaves the center of the hole uncut (1), which
creates a core. This core is broken by the bit itself (2) and
ejected at the side through a specifically designed junk slot (3).
(Images courtesy of Tercel Oilfield Products)
require an expensive coring operation to collect formation and geological information needed for rock identification and evaluation.
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DRILL BIT
TECHNOLOGY
The microcore cuttings (bottom) are much larger than conventional cuttings (top) and can provide formation and geological
information needed for rock identification and evaluation.
voirs in the North Sea; compacted or interbedded formations in Saudi Arabia, North Africa, and Pakistan; sticky
shales in Colombia, the North Sea, and the US; and the
deepwater presalt hard carbonates in Brazil. Runs have
been successfully completed on bent motors, rotary steerable systems, and turbines. While most of the exploration
applications were vertical, field development applications
were completed with an inclination of up to 65. In each
case these challenges were met with application-specific
designs in a variety of bit sizes, types, and International
Association of Drilling Contractors (IADC) codes. MicroCore bit designs can be made in various cutting structure
types including PDC, impregnated, hybrid, and natural
diamond, in both matrix and steel bodies.
Case study
A major operator drilling offshore on an ultra-deepwater
well wanted to obtain better formation cuttings while
drilling hard formations in the 12-in. section. This section
of the well is typically drilled with an impregnated bit run
on a turbine. Consequently, the cuttings typically produced
are very fine and not useful for formation evaluation. Due
to the high drilling costs, the operator was also concerned
about the penetration rate and durability of the bit. Tercel
Oilfield Products designed a 12-in., eight-blade, 16-mm
cutter, heavy-set PDC bit (IADC M422) for the application.
The resulting bit drilled 96 m (317 ft) in 99 hours, which
was very comparable to the offset bit performances. Not
only did the bit produce a good run in both penetration
rate and meters, it continuously produced large microcore
fragments throughout the entire run.
Febr uar y 2013 | EPmag.com
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DRILL BIT
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The MicroCORE T'" D r i l Bit improves ROF by U p to 351r6 , w h i l e delive ' i'nq_
hig h quality Jndisturbed c u t t i n gs , generat ' nq ( ruc ial geoIog ica
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PRA CTICAL INNOVATIO
WELLHEAD PAD
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Flash gas in the oil field refers to the gas released by the
pressure and temperature drops during the extraction
and separation process at the well site. The flash process
often occurs when pressures are below the pressure
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WELLHEAD PAD
DESIGN/EQUIPMENT
n the eight years since the first commercially successful well in the North Dakota Bakken formation was
horizontally drilled and fracture-stimulated, the operator of that well has made steady and continual improvements in its application of drilling and completion
techniques.
By capitalizing on these improvements, Continental
Resources was the first to complete a 390-m (1,280-ft)
lateral multistage frac in 2007, a horizontal well in the
Three Forks formation in 2008, and a paired Middle
Bakken and Three Forks well in 2010.
The lessons learned and experiences gained from
these successes helped the company further tackle the
challenges of tapping the Bakken shale in a manner that
was both environmentally and economically friendly. In
doing so, Continental took an approach different from
the rest.
94
New approach
Where other companies were using a single-pad technique, Continental applied the old adage of doing
more with less to its well development strategy. Using
the companys ECO-pad technique, multiple wells can
be drilled and completed from a single 8-acre pad. This
reduces the wells surface impact by 65%, according
to the company.
The technique allows development of two separate
formations (Bakken and Three Forks) on two separate
spacing units simultaneously, increasing production efficiency. Thanks to advancements in technology, the technique has evolved since it was first used in 2010 in Dunn
County, N.D.
When we originally began to utilize the process, it
was a four-well concept, said Pat Bent, vice president
of Drilling for Continental. We felt like it was the most
displacement in a build section we could do at the time.
Since then, technology has improved to the point where
we have ECO-pads with four, six, and as many as 14 wells
currently in the Bakken.
Optimized operations
The company uses a batch drilling process to optimize
its operations. All four surface holes are drilled first, followed by four intermediate sections, and then finished
with the laterals. According to the company, the process
saves significant time and costs associated with switching
out drillpipe and mud systems for the three different
downhole sections.
The true vertical depth of an average Continental well
is 2,895 m to 3,200 m (9,500 ft to 10,500 ft). The measFebr uar y 2013 | EPmag.com
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W H E R E V E R YOU GO . W H A T E V E R IT TAKES.
WELLHEAD PAD
DESIGN/EQUIPMENT
A lonely rig on the plains of North Dakota drills into the prolific
Bakken and Three Forks formation in search of oil.
ation. Coiled tubing is used for well cleanout to approximately 5,791 m (19,000 ft), Bent said.
All drilling activity is closed-loop, with produced and
stimulation flowback water going to storage tanks for
transportation to saltwater disposal facilities. Post-completion, about 25% of the disturbed area is reclaimed
when the wells go into production.
Future growth
As the leading lease holder with more than 1.1 million
net acres in both the North Dakota and Montana
Bakken formation, Continental believes the ECO-pad
is the key to maximizing development. In a 2011
annual report, the company said it plans to increase
the use of the concept as the field matures.
According to Bent, the companys multiwell pad
activity through 2012 included 47 locations, with an
additional 71 pads planned for 2013.
Our year-end goal is to have 70% of our activity
on ECO-pad wells, Bent said. As acreage comes
into production, there are a few locations that we
drill that are proved undeveloped. We will be highgrading our rig fleet in 2013, exchanging single rigs
for more walkers.
Febr uar y 2013 | EPmag.com
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Barito Basin
GIP potential: 102 Tcf
Indonesias three largest CBM basins have estimated potential reserves that individually nearly
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UNCONVENTIONAL:
INDONESIA
The regulator forecasts that the 74 projects in the production phase will result in up to $23.5 billion in investments during the course of 2013 alone, with the money
outlined to be spent as follows:
$14.7 billion on production activities;
$5 billion on development projects;
$2.3 billion on exploration; and
$1.5 billion on general administration.
With the total work plan for these 74 projects estimated
to include up to 1,200 development wells, 1,100 workover
wells, and 100 exploration wells, this is a true statement of
intent by Indonesia to raise its game.
The remaining 200 work plans were submitted by companies for projects still in the exploration phase and are
expected to result in around $2.7 billion of investment.
That will involve 75 conventional exploration projects
and more than 80 CBM exploration probes.
By August 2012 there were a total of 50 CBM working
areas, according to SKMigas, with the government targeting
a total of 210 by 2025. These are likely to be spread wider
than just South Sumatra, as major basins exist elsewhere:
Barito (101.6 Tcf), Kutai (89.4 Tcf), Central Sumatra (52.5
Tcf), North Tarakan (17.5 Tcf), Berau (8.4 Tcf), Ombilin
(0.5 Tcf), Sulawesi (2 Tcf), and Bengkulu (3.6 Tcf).
Basin
CBM
resources (Tcf)
S. Sumatra
183.0
Barito
101.6
Kutai
80.4
C. Sumatra
52.5
N. Tarakan
17.50
Berau
8.40
Ombilin
0.50
Pasir/Asem
3.00
Jatibarang
0.80
S.W.
Sulawesi
2.0
Bengkulu
3.6
Total
453.30 Tcf
Prospectivity
level
High
Medium
Low
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Committed to
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Williston,ND (3) Watford City, ND Dickinson ,ND Sidney,MT Sterling,CO (3) Greeley,CO Whitewater, CO
Wray,CO Grand Junction ,CO Vernal , UT
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EPmag.com | Febr uar y 2013
103
SUBSEA PROCESSING
ADVANCES
The landing string assembly is a critical component in the protection and safety of personnel, the well, and the rig, providing
the capability for safe, low-cost well re-entry for future well intervention and workover. Expros landing strings are designed to
meet the highest performance criteria in deep-sea drilling.
(Images courtesy of Expro Group)
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SUBSEA PROCESSING
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SUBSEA PROCESSING
ADVANCES
Smaller service companies tend to
have more room for flexibility, providing
operators with the advantage of
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SUBSEA PROCESSING
ADVANCES
experience. Operators should therefore look for a subsea safety company that has highly trained multidisciplinary staff allocated to project delivery and execution
as required.
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SUBSEA PROCESSING
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HARTE N E RGY
Sponsor ed b id:
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Vital seabed processing experience has been gained on pioneering projects such as the Tordis subsea separation and boosting
development offshore Norway, the worlds first application of
produced water reinjection with sand management, multiphase
metering, and boosting of wellstream fluids, all in a modular
design. (Image courtesy of Statoil and FMC Kongsberg)
Fast-growing market
This is why a number of companies have been carefully
112
Future trends
Around 200 deepwater subsea fields are expected to come
onstream over the next four years, with more than 11,000
subsea wells forecasted to be in operation worldwide by
the end of this decade.
As subsea processing technologies continue to advance,
the likely trends and focus areas are expected to revolve
around the following:
Technology replication reusing knowledge, designs,
and qualified technology;
Continued qualification toward deeper waters, longer
step-outs, and heavier or colder crudes;
Promotion of standardization of components, procedures, and qualification specifications; and
Greater processing efficiency (flow assurance).
Bearing in mind that these processing advances also will
be equally applicable to mature shallow-water areas, their
increasing application worldwide is inevitable.
Acknowledgment
Excerpts have been included in this article from SPE paper 20619.
Febr uar y 2013 | EPmag.com
HART ENERGY
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WATCH
In November 2012, Green Field became the first company to operate a turbine fracturing pump (TFP) on
100% field gas during a demonstraTABLE 1. Fuel cost comparisons were based on 900 fracturing stages and the amount of
tion test in an active field in North
fuel consumed. (Figures courtesy of Green Field)
Texas. The demonstration consisted
of a TFP hooked into a sales gas
Number of Stages
900
pipeline fed by a producing well.
Diesel
LNG
Field Gas
The company achieved a highUnit cost (gal or Mcf, US)
$4
$1.50
$3.60
pressure run of 8,500 psi-260
scf/minute and achieved a lowFuel cost per stage
$14,000
$8,925
$1,944
pressure run of 4,000 psi-203
Volume per stage (gal/Mcf)
3,500
5,950
540
scf/minute. When idling, the pump
Total cost
$12.6 million
$8 million
$1.7 million
burned 109 scf/minute. The line
% Difference
36.25%
86.11%
pressure for the demonstration was
660 psi, with a minimum requireEstimated savings
$4,567,500
$10,850,400
116
tech
WATCH
FIGURE 1.
FIGURE 2.
TABLES 2 and 3. Turbine pumps emit 87% less NOx than conventional pumps and 77% less CO than the competition.
Parameter
Date
Semi-annual
test
Permit limit:
No. 2 diesel
Oct. 4, 2007
NOx ppm
57
NOx lb/hr
6.93
CO ppm
38
CO lb/hr
2.81
Oxygen %
16.3
Operating Parameters
Fuel
Btu/hp hr
191.5
GPM
11,386.25
Fuel Btu
129,500
Suction
75
psi
Discharge
6,150
psi
RPM
1,543
Load
2,178
BHP
117
tech
WATCH
0 R D E R
The new TFPs burn significantly cleaner than a conventional fracturing pump running on diesel, which traditionally has been used to power fracture stimulation
jobs. These produce no emissions while running on natural gas. As a result, the technology already exceeds the
EPA Tier 4 requirement without reducing hhp. As seen
in Tables 2 and 3, when turbine pumps are compared
with conventional pumps running on diesel, these TFPs
emit 87% less nitrogen oxide and 77% less CO than the
competition. This is of tremendous value in a region
where environmental regulation and concerns are
highly stressed.
In addition to the lower emissions benefits, another
differentiator is the fact that these TFPs contain the
highest power density on the market, thereby enabling
operators to significantly reduce the size of the drilling
pad footprint. This is a major benefit in regions where
roads can be treacherous, pad space is limited due
to the topography, and environmental regulation is
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Febr uar y 2013 | EPmag.com
OTC2013
Offshore Technology Conference
6-9 May ? Houston, Texas, USA
or#.
V
9
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tech
TRENDS
The OptoAcoustic gas detector from Carthago International Solutions determines gas content by measuring
acoustic pressure waves that are propagated as gas is
irradiated under an appropriately tuned light. It is a
microprocessor-based self-contained gas sensor that provides continuous monitoring of combustible gas leaks in
the concentration range of 0% to 100% lower explosion
limit, respectively 0 ppm to 20,000 ppm CO2. According
to the company, a gaseous mixture diffuses through a
120
tech
TRENDS
One of three arctic enclosed mobile well test units was shown
during a launch event in Anchorage, Alaska. (Image courtesy
of Expro)
121
REGIONAL REPORT:
SOUTH AMERICA
Heading south
Brazil continues to dominate the landscape, but South America is seeing
some newer faces join the oil and gas crowd.
Rhonda Duey, Executive Editor
outh America stands as one of the worlds most prolific oil provinces. From the heavy oil fields in
Venezuela to the presalt province offshore Brazil, the
continent is brimming with promise.
Brazil gobbles most of the headlines these days, with
almost daily releases from Petrobras noting discoveries,
field extensions, and initial production. At the Jupiter
Suriname
field, preliminary drilling results of 3BRSA-967A-RJS (3Recently, some new names have joined the ranks of estabRJS-683A) confirmed the presence of natural gas and
lished petroleum producing countries in South America.
condensate. The well was drilled 7.5 km (4.6 miles)
Among these is Suriname, one of the many countries of
from the discovery well and is located in Block BM-S-24
interest along the Atlantic Transform margin. Just as
at a water depth of 2,161 m (7,091 ft). So far the well
some companies are looking offshore West Africa for prehas detected an oil column of 176 m (577 ft) in goodsalt analogs to Brazil, many West African operators are
quality reservoir rock, according to Petrobras.
chasing analogs west to South America. In December
In the Sergipe-Alagoas basin, the company discovered
2011, Kosmos Energy announced it had executed two
a new accumulation of light hydrocarbons in ultra-deep
production-sharing contracts (PSC) with the government
waters in concession area BM-SEAL-11. The well is
of Suriname for offshore blocks 42 and 45. Soon after, in
located in 105 km (64 miles) from the municipality of
Aracaju, off the coast of
Sergipe State, at a water
depth of 2,328 m (7,638
ft). This discovery was
Petrobras fifth in 2012.
The company did not
take much time off celebrating the new year. On
Jan. 2 Petrobras announced
that its third Carcar probe
found a massive 471-m
(1,545-ft) oil column containing 31API oil free of
contaminants as well as 402
m (1,320 ft) in carbonate
reservoirs with excellent
porosity and permeability.
Tests from the well indicate
that the oil flow in the
reservoir has more potential yet, the company said.
The presalt Sapinho
Petrobras Sul de Tupi well is located south of the Lula field at a water depth of 2,188 m (7,178 ft)
field in the Santos basin
and 302 km (186 miles) off the coast of Rio de Janeiro state. (Map courtesy of Petrobras)
was brought onto produc-
122
REGIONAL REPORT:
SOUTH AMERICA
both geologically and geographically, he said. In addition, we are very disciplined thematically, targeting
primarily frontier and emerging areas of the Atlantic
Transform margin, where there is evidence of a working
petroleum system although no significant play-opening
discoveries have been made. The deepwater area offshore
Suriname fits this strategic focus.
Kosmos was operator of the Jubilee discovery offshore Ghana, so it has an extensive working knowledge of this geology on
the other side of the Atlantic Ocean, Fauria added.
Target reservoirs are Upper and Middle
Cretaceous-age slope turbidite sands with
good lateral continuity. Source rocks are
similar to those of the giant fields offshore
West Africa.
Despite these desirable qualities, the
area has not yet yielded up much of its
bounty. Fauria said that the majority of the
offshore drilling to date has been in shallower water targeting Miocene- or Tertiaryage reservoirs.
The company has recently completed a
very sizable 3-D seismic program, and
Fauria said that processing and interpretation of the data are likely to take the better
part of 2013. He expects the first drilling
to take place the following year.
The PGS Ramform Sovereign conducted a seismic survey for Kosmos Energy
We are enthusiastic and optimistic
offshore Suriname. (Image courtesy of PGS)
about the potential for discovering
significant commercial volumes of hydroIn October 2012 Apache Corp. joined the ranks by
carbons offshore Suriname, Fauria said. Given the size
signing a PSC with Staatsolie Maatschappij Suriname
of our Suriname exploration portfolio, a discovery could
NV, the state oil company, for Block 53, located about
lead to several additional exploratory wells targeting
130 km (81 miles) off the northwest coast of Paramaibo,
follow-up opportunities.
the company said. Apache has agreed to a work program
Uruguay
that includes a 3-D seismic program expected to begin
Uruguay is not a complete stranger to oil and gas, but its
this year and two exploration wells. Apache has a 100%
emergence as a major player has yet to happen. This is
participating interest in the block.
not for lack of trying on the part of the government.
Block 53 is on trend with the large Zaedyus discovery
The country held its second licensing round in 2012
offshore French Guinea an indication that the Equatoafter a lukewarm reception to its first round. While sevrial Margin play fairway may extend to the west side of
eral companies did bid in that first round, there was not
the Atlantic Ocean, said Tim Chisholm, director of
much movement in terms of new exploration programs,
Apaches New Ventures activities in the Americas, in a
said Alex Vartan, vice president, South America Multistatement. Apache was selected after a competitive bid
client for PGS. The government, in conjunction with
round involving companies with proven international
ANCAP [the state oil company of Uruguay], chose to
exploration track records.
change the terms in Uruguay to make it much more
Tom Fauria, vice president, Exploration South Amerattractive, focusing on reducing the royalties in the secica for Kosmos, said the area fits that companys exploond round, Vartan said. And they removed the signaration plans. Our exploration strategy is very focused,
EPmag.com | Febr uar y 2013
123
REGIONAL REPORT:
SOUTH AMERICA
PGS began acquiring its 15,550-sq-km (6,000-sq-mile) 3-D multiclient survey in December 2012. It will be one of the largest seismic surveys ever shot offshore Uruguay. (Map courtesy of PGS)
Falkland Islands
It is possible that some areas of South America make
news for all of the wrong reasons, and this could be the
case with the Falkland Islands. Even though the British
pushed the Argentinians out after their 1982 invasion of
the islands, Argentinians still maintain that the islands
belong to them, while the British prefer to let the
islanders govern themselves.
In the midst of this uncertainty, several oil and gas
companies are attempting to gauge the prospectivity of
the waters surrounding the islands. Rockhopper Exploration Plc was founded in 2004 with a strategy to explore
for oil in the north part of the region. It acquired four
production licenses, PL023, PL024, PL032, and PL033,
covering about 3,800 sq km (1,470 sq miles). It also
has smaller interests in three blocks operated by Desire
Petroleum Plc. In addition, the company has a significant interest in license PL004b, which has the extension
to its Sea Lion field as well as the Beverley, Casper, and
Casper South discoveries.
Over the years Rockhopper carried out 2-D, 3-D, and
controlled-source electromagnetic surveys, and in February 2010, it brought the Ocean Guardian drilling rig on
site to carry out a multiwell drilling program. The company reported the first oil discovery in May 2010 on the
Sea Lion prospect and subsequently was the first company to flow oil to surface in Falkland Islands waters. The
first campaign concluded in January 2012 with three oil
discoveries, three gas discoveries, multiple successful Sea
Lion appraisal wells, and a successful appraisal of Casper.
Recently, Rockhopper farmed out 60% of its interests
to Premier Oil Plc to fund further development. The
Sea Lion field is now fully financed, said Pierre Jungels,
chairman, in Rockhoppers latest investor report. This
means that for its 2C case, Rockhopper has approximately 142 MMbbl of financed oil that, from late 2017,
should begin generating cash flow with an estimated
value to Rockhopper in excess of $2 billion at a 10%
discount factor.
Febr uar y 2013 | EPmag.com
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HIGHLIGHTS
For additional
information on
these projects
and other global
developments:
EPmag.com
EUROPE
NORTH AMERICA
Castex Energy begins Louisiana state water test
Houston-based Castex Energy Inc. has spudded a
Louisiana state water test in St. Mary Parish. The No. 2
State Lease 20369 is in Atchafalaya Bay field, and the
proposed depth is 5,913 m (19,400 ft). Directly to the
southwest are two Castex wells, No. 1 State Lease 20369
and a northwest offset, No. 1 State Lease 20221. The No.
1 State Lease 20369 was drilled to 6,450 m (21,160 ft)
and was tested flowing 10 MMcf of gas and 88 bbl of
41API gravity crude from Cibicides opima (Middle
Miocene) at 5,511 m to 5,535 m (18,080 ft to 18,160 ft).
In mid-2012, No. 1 State Lease 20221 flowed 15 MMcf of
126
GULF OF MEXICO
ExxonMobil plans development tests at Hadrian South
A recently approved drilling plan by ExxonMobil Corp.
indicates that the company will drill up to two development tests at its Hadrian South prospect in the Gulf of
Mexico. The ventures are planned from offsetting surface locations in Keathley Canyon Block 964 (OCS
G21451) where the water depth is 2,365 m (7,760 ft).
Offsetting the proposed ventures to the northwest is a
wildcat drilled by ExxonMobil in late 2008. The No. 1
OCS G21451 reached 6,694 m (21,962 ft) in Eocene. In
2009 the test was sidetracked to a total depth of 6,084 m
(19,962 ft) in Miocene. ExxonMobil operates Block 964
with a 46.67% working interest along with partners Eni
(30%) and Petrobras (23.33%).
MIDDLE EAST
TransAtlantic announces Molla Block results
Turkeys first horizontal exploration well, No. 3H-Gokso,
was completed in the Molla Block by TransAtlantic Petroleum. After 36 hours of testing on a 2464-in. choke, the flowing tubing pressure was 200 psi, and the shut-in casing
pressure was 500 psi. After about a week of testing, the well
produced approximately 3,000 bbl of oil and 10,000 bbl of
water. The average oil cut has ranged between 20% and
40%, with daily production between 350 bbl and 500 bbl
of oil. TransAtlantic is the operator of Molla Block 4174
and No. 3 Hgoksu with 100% interest.
AGR strikes gas offshore Israel
An exploration well in frontier deep waters offshore
Israel has encountered significant gas shows, operator
AGR of Norway said in a press release. The Aphrodite-2
probe reached a total depth of 5,652 m (18,544 ft) in a
water depth of 1,707 m (5,601 ft). Based on examinaFebr uar y 2013 | EPmag.com
international
HIGHLIGHTS
SOUTH AMERICA
Petrobras gas discovery in Peru estimated at 1.7 Tcf
Petrobras reported a gas field discovery in Block 58 in
the Madre de Dios basin in the Cuzco region of Peru.
Two previous discoveries, No. 2X-Picha and No. 1XUrubamba, established recoverable reserves of 1.7 Tcf
within the concession. The latest venture, No. 3X-Taini,
has increased reserve figures to approximately 2 Tcf with
about 114 MMbbl of condensate. A fourth well is currently under way on the block at No. 1-Paratori.
Petroamerica successfully completes Las Maracas well
Petroamerica Oil Corp. tested and completed its Las
Maracas-6 well drilled in the Las Maracas field in the
Llanos basin of Columbia, the company said in a press
release. The well successfully tested 29API oil from a new
reservoir interval, the Une formation, at a rate of approximately 600 b/d. The well was completed with an electric
submersible pump and is now producing from the middle Gacheta sand interval at a rate of approximately 1,850
b/d of oil under natural flow and less than 0.5% water
cut. Petroamerica holds a 50% participating interest in
the Los Ocarros Block where the field is located.
ASIA PACIFIC
Chevron makes dual discoveries offshore Western Australia
Chevron has made two deepwater gas discoveries in the
Exmouth Plateau area, located in the Carnarvon basin
offshore Western Australia, the company said in a press
release. The Pinhoe-1 well encountered approximately
60 m (197 ft) of net gas pay in the Barrow and Mungaroo sands. The well was drilled in 929 m (3,048 ft) of
water to a total depth of 4,083 m (13,396 ft). The Arnhem-1 well confirmed approximately 45 m (149 ft) of
net gas pay in the upper Mungaroo sands, the company
said. The well was drilled in 1,208 m (3,963 ft) of water
to a total depth of 2,913 m (9,557 ft). Chevron Australia
is the operator of both the WA-383-P and WA-364-P permit areas and has a 50% interest, with its partner being
Shell Development (Australia) Pty. Ltd. (50%).
EPmag.com | Febr uar y 2013
AFRICA
Repsol finds gas in Algeria
In Algerias Illizi basin, Madrid-based Repsol reported a
gas discovery at No. 1-Tihalatine South, the first well to
be drilled in the Sud-Est Illizi concession in the current
exploration campaign. The initial
gas flow at the
1,073-m (3,520-ft)
well was 3.7
MMcf/d. Repsol is
the operator of the
3,240-sq-km (1,251sq-mile) Sud-Est
Illizi concession
and its blocks 232
and 241. Repsol
owns 25.725%, and
After discovering gas in Algerias Illizi
partners are Enel
with 13.475%, GDF basin, Repsol plans to drill four more
wells as part of the exploratory
SUEZ with 9.8%,
program. (Image courtesy of Repsol)
and Algerias
Sonatrach with
51%.
African Petroleum launches campaign offshore Liberia
African Petroleum has kicked off a two-well exploration
campaign in frontier deep waters off the coast of
Liberia, according to a company press release. The
company is underway with a wildcat on the Bee Eater-1
prospect in Block LB-09, with the well having spudded
on Jan. 4, 2013, using Ocean Rigs semisubmersible Eirik
Raude. Mean recoverable unrisked prospective resources
for the Bee Eater/Narina system are estimated at 840
MMbbl. African Petroleum holds a 100% stake in both
blocks. The second well in the program will be drilled
by the same rig immediately after completion of Bee
Eater-1.
127
=:;
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M.
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Cypress ,TX
SHOTGUN: 1:00PM
Wildcatters'Open Committee
Melinda Faust,Lantana Oil & Gas Partners - Committee Chair
Bob Jarvis,IPAA
Burk Ellison,National Oilwell Varco
C.W. Macleod, Sanchez Oil and Gas
David Culberson,Select Energy Services
Don Crow,Lufkin Industries, Inc.
George Frisk,Texla Energy Management
Jerry Edrington,BlackTower Energy
Justin Moore,Occidental Petroleum Corporation
Karl Brensike,Remora Oil & Gas
Reed Barrett,Drillinglnfo, Inc.
Richard LeBlanc,Norris Sucker Rods
Ron Barnes,Oil and Gas Asset Clearinghouse
Russell Laas,Hart Energy Publishing L.P.
Suzanne Ogle,Regency Energy Partners
IPA4 1
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Sponsorship is the only way to guarantee a spot in the tournament and space is limited so register early.
For more information,contact Brittany Green at bgreen@ipaa.org or 800/433-2851 or visit IPAA Meetings
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Euromoney Magazine named
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managed company in Asia for oil and
129
DEVELOPING UNCONVENTIONALS
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If your company is involved in Canada 's resource plays, or if you want to exp lore business opportunities in
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Victor Ojeda
Manag ing Director
Mike Wood
VP, Canada Shale Division
Talisman Energy Inc.
Tervita Corp.
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Aggreko Oil and Gas . . . . . . . . . . . . . . . . . . . . . . .10
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Ariel Corporation . . . . . . . . . . . . . . . . . . . . . . . . 65
Baker Hughes Incorporated . . . . . . . . . . . . . . 15,41
Bluebeam Software, Inc. . . . . . . . . . . . . . . . . . . . .21
Cameron . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Carbo Ceramics . . . . . . . . . . . . . . . . . . . . . . . . . 69
Cimarex Energy . . . . . . . . . . . . . . . . . . . . . . . . . .IFC
C&J Energy Services . . . . . . . . . . . . . . . . . . . . . . .45
CorsiTech . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
CRU Logistics LLC . . . . . . . . . . . . . . . . . . . . . . . . .49
CESI Chemical . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
Cudd Energy Services . . . . . . . . . . . . . . . . . . . . . 43
Dragon Products, Ltd. . . . . . . . . . . . . . . . . . 106-109
E&P . . . . . . . . . . . . . . . . . . .2-3,103,111,114,118,130
DuPont . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99
Dyna-Drill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77
FlexSteel Pipeline Technologies, Inc. . . . . . . . . .19
FMC Technologies . . . . . . . . . . . . . . . . . . . . . . . 105
Forum Energy Technologies . . . . . . . . . . . . . . . .93
Frontier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Gas Gun, The . . . . . . . . . . . . . . . . . . . . . . . . . . . .48
GE Oil & Gas, Surface Pumping Systems . . . . . . 66
Great Wall Drilling Company . . . . . . . . . . . . . . . 81
Halliburton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
IHRDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
ION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
IPAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128
i-TEC Well Solutions . . . . . . . . . . . . . . . . . . . . . . .55
Exergex Tube . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79
Keane Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
Magnum Oil Tools International . . . . . . . . . . . . . 53
McAda Fluids Heating Services . . . . . . . . . . . . . .40
Mechanix Wear . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Mewbourne College of Earth & Energy . . . . . . . 11
M-I Swaco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Momentive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Nabors Completion & Production Services . . . . .51
National Oilwell Varco . . . . . . . . . . . . . . . . . . 13,91
Nauchers Alpine Solutions Inc. . . . . . . . . . . . . . . 60
NCS Energy Services . . . . . . . . . . . . . . . . . . . . . .57
Newpark Drilling Fluids . . . . . . . . . . . . . . . . . . . 32
Offshore Technology Conference . . . . . . . . . . .119
Peak Completions . . . . . . . . . . . . . . . . . . . . . . . . 18
PGS Exploration (UK) Ltd. . . . . . . . . . . . . . . . . . . 30
Radcan Energy Services Inc . . . . . . . . . . . . . . . . .29
Rockwater Energy Solutions . . . . . . . . . . . . . . . .34
Rupture Pin Technology . . . . . . . . . . . . . . . . . . . .56
Scientifc Drilling . . . . . . . . . . . . . . . . . . . . . . . . . .83
Society of Exploration Geophysicists . . . . . . . . 125
Select Energy Services
. . . . . . . . . . . . . . . . . . . .36
Schlumberger . . . . . . . . . . . . . . . . . . . . . . . . . 5, BC
Spectrum Geo . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Supreme Services . . . . . . . . . . . . . . . . . . . . . . . . .28
TAM International . . . . . . . . . . . . . . . . . . . . . . . .IBC
Tank Connection . . . . . . . . . . . . . . . . . . . . . . . . . .44
Target Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . .95
TEAM Oil Tools
. . . . . . . . . . . . . . . . . . . . . . . . . . 27
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