WATER CONFORMANCE

Rick Curtice
October 31, 2006

Brownfield Optimizing Mature Assets

Denver, Colorado

OVERVIEW

WATER PRODUCTION
SUCCESSFUL TREATMENT
COMPUTER PROGRAMS
NEW PRODUCTS
SUMMARY

WHAT DOES WATER

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

AVERAGE WATER CUT 94% per WELL

$5 BILLION COST TO THE INDUSTRY
MORE IS SPENT ON PRODUCED WATER
THAN ALL OTHER MAJOR SERVICES
COMBINED

PROBLEM IDENTIFICATION +
QUALITY EVALUATION = BEST
SOLUTION
UP-FRONT INVOLVEMENT - PROACTIVE
RESERVOIR UNDERSTANDING
DIAGONSITCS
APPLY PROPER TECHNOLOGY
TREATMENT SUCCESS IS TYPICALLY

90% !

MAJOR INTERVENTION
TAKEN
50.00

350,000
WATER PRODUCTION IN BBLS

45.00
300,000

35.00
WOR

30.00

200,000

25.00
150,000

20.00
15.00

100,000

10.00
50,000
5.00

YEAR

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1982

1981

1980

1979

1978

0.00
1977

WATER OIL RATIO - WOR

250,000
TOTAL VOLUME - BBLS

40.00

OIL PRODUCTION IN
BBLS

COMPUTER SOFTWARE
Water Control Expert System
XERO
PROBLEM IDENTIFICATION
PRODUCT SELECTION
PLACEMENT TECHNIQUES
TREATMENT SIZE

COMPUTER SOFTWARE
SIMULATOR
3-D, 4-PHASE NON-ISOTHERMAL, MULTIWELL
BLACK OIL AND PSEUDO-COMPOSTIONAL
SIMULATOR

RESERVOIR SIMULATOR IS LINKED WITH A

WELLBORE TEMPERATURE SIMULATOR WITH
PRESSURE PROFILES

SPEED IN FORECASTING RESULTS OF WELL

INTERVENTIONS

ACCURACY IN UNDERSTANDING OF RESERVOIR

AND WELLBORE MECHANISMS

EFFICIENCY IN SENSITIVITY STUDIES BY VARYING

DESIGN PARAMETERS

NEW PRODUCTS

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

POLY-CRYSTALS

APPLICABLE FOR LOSS CIRCULATION, PROFILE

MODIFICATION AND INTERWELL COMMUNICATION
PROBLEMS

VARIABLE SIZE

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

DEHYDRATED FORM COMPACT CONCENTRATION

EQUIVALENT FORM < 1/10 BASE POLYMER

ECONOMICS FAVORABLE

POLY-CRYSTALS
ATTRIBUTES AND PROPERTIES
RESISTANT TO BACTERIAL GROWTH
RESISTANT TO ACID
HIGHLY RESISTANT TO CO2
TECHNOLOGY IS ECONOMICALLY FAVORABLE
COMPARISON TO POLYMER GEL TECHNOLOGY
GENERALLY 1/10 THE COST FOR THE SAME GEL LOADING
SHORT TIME FOR PLACEMENT REDUCED EQUIPMENT AND
PUMP TIME CHARGES SIMPLICITY IN OPERATION AND QC

THIXOTROPIC MONOMER

BROADENS CAPABILITES TO SHUT-OFF WATER IN

CHALLENGING COMPLETIONS
GRAVEL PACKS
SCREENS
HORIZONTAL WELLBORES.

THIXOTROPIC PROPERTIES PREVENT GRAVITY

SLUMPING

FORMS CHEMICAL PACKER TO PERMANTELY

SEAL THE TARGET ZONE.

THIXOTROPIC MONOMER

SHEAR THINNING PERMANENT SEALANT

GENERATES HIGH LEVELS OF VISCOSITY AS

SHEAR RATE DECREASES

PUMPABLE THROUGH CT, GRAVEL PACK

SLOTTED LINER

WILL NOT SLUMP IN A HORIZONTAL WELLBORE

WILL NOT BYPASS STRADDLE PACK ASSEMBLY

CAN BE WASHED OUT WITH CT

HIGH TEMPERATURE POLYMER

TEMPERATURE RANGE 100 to 350 F
PERMEABILITY FROM 0.1 MD to 10 DARCY
MIXING BRINES

KCL, NACL OR SEAWATER

HIGH TEMPERATURE POLYMER

HIGH TEMPERATURE POLYMER (HTP) SLURRY

SQUEEZE SYSTEM FOR WATER/GAS SHUTOFF

COMBINATION HTP WITH FLUID LOSS

FOLLOWING SQUEEZE TREATMENT OIL/GAS

ZONES CAN BE RE-PERFORATED

CAN BE USED IN PLACE OF STANDARD CEMENT

SQUEEZES FOR VARIOUS APPLICATIONS

HIGH TEMPERATURE POLYMER

ADVANTAGES OF HTP SLURRY:

NO NEED FOR ZONAL ISOLATION AS WITH STANDARD

CEMENT OPERATIONS

SLURRY IS BULLHEADED INTO ALL PERFORATIONS

SHALLOW PENETRATION OF THE FILTRATE ALLOWS FOR

RE-PERFORATION IN THE HYDROCARBON ZONE

HTP SLURRY LEFT IN THE HOLE DOES NOT HAVE TO BE

DRILLED OUT, AND CAN EASILY BE JETTED OUT WITH
COILED TUBING.

RIDGID SETTING FLUID

FORMULATION OF INORGANIC NON TOXIC POWDERS AND

FLUIDS MIXED IN A BRINE SOLUTION

USED TO PERFORM CHEMICAL ISOLATIONS/SHUT OFFS IN

VERTICAL AND HORIZONTAL WELLBORES

CHARACTERISED BY A CONTROLLED RIGHT ANGLE SET

FOLLOWED BY RAPID STRENGTH DEVELOPMENT.

ONCE SET PRODUCT HAS MECHANICAL CHARACTERISTICS

SIMILAR TO CEMENT BUT IT IS NOT A CEMENT.

RIDGID SETTING FLUID

ZERO SHRINKAGE.

ZERO STATIC GEL GENERATION.

WILL NOT INVADE FORMATION.

100% ACID SOLUBLE WITH 15% HCL.

TREATMENTS TYPICALLY 25 BBLS OR LESS.

RIDGID SETTING FLUID

IMMISCIBLE IN OIL.

TOLERATES UP TO 50% CONTAMINATION.

TYPICALLY 5 MICRON MEDIAN PARTICAL SIZE.

VARIABLE VISCOSITY FROM 18 CP TO 100 CP.

RIDGID SETTING FLUID

NEAR WELLBORE PHENOMENON

EXOTHERMIC REACTION TIME AND TEMPERATURE

DEPENDENT.

COMPRESSIVE STRENTH BUILDS RAPIDLY > 3000 PSI IN 2

HOURS.

OPERATING TEMPERATURE RANGE 0 - 270 F.

SET TIME IS COMPLETELY PREDICTABLE AND

CONTROLLABLE 10 MINUTES TO SEVERAL HOURS.

CAN BE PUMPED THROUGH BHA USES CONVENTIONAL

PUMPING EQUIPMENT.

RELATIVE PERMEABILITY
MODIFIER (RPM)
A WATER SOLUBLE POLYMER
HYDROPHOBIC RESULTS - INCREASED
ADSORPTION

OIL/WATER SEPARATION IN THE RESERVOIR

RELATIVE PERMEABILITY
MODIFIER
Permeability Modification for Oil and Water Saturated Cores

Initial Perm (md)

350

340

Final Perm (md)

300

Permeability (md)

250

Permeability to oil increased by 7%

200

150

135

Permeability to
water decreased
by 98%

142

100

50

6
0

oil core

water core

RELATIVE PERMEABILITY MODIFIER

WHAT IS AN RPM CANDIDATE?

LAYERED FORMATION
BOTTOM HOLE STATIC TEMPERATURE (BHST)
UP TO 325F

MATRIX PERMEABILITY RANGE FROM 0.1 MD

TO 6 DARCYS

RELATIVE PERMEABILITY MODIFIER

WHAT ARE THE APPLICATIONS?

CONVENTIONAL WATER CONFORMANCE

DIVERTOR
PRE & POST FRAC TREATMENT
LOSS CIRCULATION

RELATIVE PERMEABILITY MODIFIER

WHAT IS A CONVENTIONAL RPM CANDIDATE?

LAYERED FORMATION WITHOUT RESERVOIR CROSS

FLOW

SANDSTONE OR CARBONATE

BHST UP TO 325F

MATRIX PERMEABILITY RANGE 0.1 MD 6 DARCY

PERFORATION OR GRAVEL PACKS

RELATIVE PERMEABILITY MODIFIER

WHAT IS A DIVERTOR RPM CANDIDATE?

NEED FOR DIVERSION DURING ACID STIMULATION

BHST UP TO 350F

PERMEABILITY RANGE FROM 0.1 MD TO 6 DARCY

NEED FOR DIVERSION AWAY FROM HIGH WATER

SATURATED ZONES

RELATIVE PERMEABILITY MODIFIER

HOW IS AN RPM DIVERTOR USED?

BULLHEAD TREATMENT: ALTERNATING STAGES OF RPM FLUID

AND ACID

NO DAMAGE TO HYDROCARBON BEARING ZONES

ENHANCES ZONAL COVERAGE BY DIVERTING ACID AWAY FROM

WATER BEARING ZONES

DOES NOT REQUIRE VISCOSITY TO AID IN DIVERSION

SIMPLE AND EASY TO USE:

NO ZONAL ISOLATION NEEDED.
NO SPECIAL PLACEMENT TECHNIQUES REQUIRED.

RPM FRAC SERVICE

SOMETIMES FRACTURE STIMULATION RESULTS IN

MORE THAN HYDROCABON PRODUCTION?

RPM FRAC SERVICE

CONFORMANCE WHILE FRACTURING:

LIMITS RISK ASSOCIATED WITH FRACTURING NEAR HIGH WATER

SATURATION

REDUCES PERMEABILITY TO WATER

REQUIRES NO SPECIAL PLACEMENT TECHNIQUES

A SIMPLIE LIQUID ADDITIVE THAT CAN BE INCLUDED AS PREPAD

OR ADDED TO THE ENTIRE TREATMENT

RPM FRAC SERVICE

COMPATIBLE WITH MOST EXISTING FRAC
FLUID SYSTEMS

LAB RESULTS INDICATE IMPROVED LOAD

RECOVERY.

EXTENDS THE ECONOMIC LIFE OF THE

WELL.

RPM FRAC SERVICE

WHAT IS AN RPM FRAC SERVICE
CANDIDATE?

LAYERED FORMATION
BHST UP TO 325F
FRACTURING CLOSE TO WATER ZONE
MATRIX PERMEABILITY RANGE FROM 0.1
MD TO 6 DARCYS

RPM POST FRAC SERVICE

WHAT IS AN RPM POSTFRAC SERVICE CANDIDATE?

FRAC THAT IS PRODUCING LARGE AMOUNTS OF

WATER

BHST UP TO 325F

MATRIX PERMEABILITY RANGE FROM 0.1 MD TO 6

DARCYS

RPM POST FRAC SERVICE

ZONES PRODUCING WATER MUST BE IDENTIFIED

ZONES PRODUCING WATER MUST BE ISOLATED

WHEN TREATED

RPM FLUID MUST BE PUMPED THROUGH THE

PROPPANT PACK TO BE EFFECTIVE

RPM LOST CIRCULATION

APPLICATIONS

DURING ROUTINE WORKOVERS

DURING DRILLING OPERATIONS?

SUMMARY

EXCESSIVE WATER PRODUCTION CONTINUES TO

COST THE INDUSTRY BILLIONS OF DOLLARS A
YEAR

SUCCESSFUL TREATMENTS CAN BE PUMPED

SOFTWARE FOR DESIGN AND APPLICATIONS ARE

AVALIABLE

NEW PRODUCTS HAVE BEEN DEVELOPED FOR

ADDITONAL APPLICATIONS.