Case History: Implementation of Quick and Low Cost Wellhead Compression Testing Using Portable Wellhead Compressors East Texas

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Gas Well De-Liquification Workshop Adams Mark Hotel, March 5-7, 2007 Case History: Implementation of Quick and Low Cost Wellhead Compression Testing Using Portable Wellhead Compressors East Texas Amy Adkison Production Engineer, BP Ted Garner Petroleum Engineer, Compressco

Outline Introduction Purpose of program Scope of program Field Planning & Operations Specifications & Equipment Operating Procedures Results & Recommendations 2

Introduction BP Position BP is the # 6 player in the basin, operating 1,000+ wells Approx 140,000 acres of operated producing leases High quality leasehold in 8 fields Development focused on Glen Rose, Pettit, Travis Peak, Cotton Valley, and Bossier plays 3

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Background of East Texas Field Approx 18,000 sq mi in aerial extent (135 mi x 135 mi) Formed in Late Triassic Early Jurassic Over 20,000 of Jurassic Cretaceous strata First recorded well drilled in 1896 First recorded production Mexia Field 1920 (52 mmbo 884 bcf 155 mmbw) 74,805 wells drilled to date (41,970 produced hydrocarbons) Cumulative Production 9.1 Billion BO and 39.1 TCF 5

Purpose of Program Identify and evaluate compression for wells quickly and cost effectively. Targeting wells that are: Under the minimum volumes required to stay unloaded at present flowing pressures. Have to be shut in to build up. Are line pressure sensitive or past production data shows a flat decline curve. Goals: To determine which wells will respond from the lowered back pressure. To use production response to determine next step in operating well and artificial lift possibilities. To save installation costs for permanent wellhead compressors that are not necessary. 6

Scope of Program Well Name Field Producing Formati on Production Rate Prior to test (MCFD) Hicks #22 Carthage, West Travis Peak 110 15 wells were identified for testing. SL Davis #4 Brewster #5 Carthage, West Carthage, West Travis Peak 119 67 Carthage GU 13-5 Carthage, East Glen Rose 125 Wells would be tested with 2 portable wellhead compressors. Carthage GU 12-13 Carthage GU 12-4 Burnett Bros. #15 Carthage, East Carthage, East Carthage, East Glen Rose Glen Rose Travis Peak 15 55 0 Burnett Bros. #14 Carthage, East Travis Peak 150 10 days of production on compression would be used for evaluation. Mattie B-1 Ford #1 Carthage GU 14-3 Spider Spider Carthage, East Paluxy Pettit/Rodessa Glen Rose 0 50 150 Carthage GU 14-9 Carthage, East Travis Peak 0 Burnett Bros. #23 Carthage, East Travis Peak 140 Carthage GU 15-15 Carthage, East Travis Peak 0 7

Scope of Program 8

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Field Planning and Operations Notify Field Personnel of Well Test Schedule Perform Site Survey Conduct Tailgate / JSA / RAT Process in accordance with Gold Hard Hat Checklist Hook-up per specifications. Open well and begin well test at reduced wellhead pressure. Achieve and maintain critical velocity to unload well and stabilize gas production. 11

Hook-up specifications Job Performed in accordance with Wellhead Compressor Standards GasJack to be located > 75 feet from HC source PSV s on suction and discharge Threaded piping Schedule 80 and placed on stands > 30 inches above GL. no hoses Low shutdown on suction pressure. 12

Specifications cont d Screwed piping and welded utility piping to be hydrotested to 1.5 X Max. potential operating pressure for one (1) hour. GasJack to include skid containment with fluid handling system. GasJack to include bypass or flow around connected to downstream side of wellhead rate valve. 13

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Operating Procedures Check test unit daily Modify configuration as necessary to match well conditions- Optimization by experienced personnel. Prepare daily written report for Operator Discuss well test status and recommendations Rig down and move test unit to next well test candidate. 16

Results Tested 13 wells to date. Improvement in production observed in 6 wells. 17

Burnett Brothers #14 18

Carthage Gas Unit 12-13 19

Carthage Gas Unit 14-9 20

Carthage Gas Unit 13-5 21

Carthage Gas Unit 14-3 22

Results Tested 13 wells to date. Improvement in production observed in 6 wells. Success rate of 46 % Average rate increase 135 mcf/d Total rate increase 830 mcf/d Able to evaluate Production production Results from at Wellhead a fraction Compression of the cost Testingand time of permanently installing a compressor. 1400 1200 1000 Gas, MCFD 800 600 400 200 0-10 -8-6 -4-2 0 2 4 6 8 10 Days Before/After Test 23

Recommendations Install permanent compression on wells. Well Name Field Producing Formation Production Rate Increase (MCFD) Carthage GU 13-5 Carthage, East Glen Rose 100 Carthage GU 12-13 Carthage, East Glen Rose 60 Burnett Bros. #14 Carthage, East Travis Peak 130 Mattie B-1 Spider Pauluxy 180 Carthage GU 14-9 Carthage, East Travis Peak 170 Carthage GU 14-3 Carthage, East Glen Rose 190 Further investigate methods for deliquifying remaining 7 wells. Evaluate further plunger lift applications, pumping unit installation, gas lift, velocity strings Expand testing to target areas with similar characteristics of success. 24

Disclaimer The following disclaimer may be included as the last page of a Technical Presentation or Continuing Education Course. A similar disclaimer is included on the front page of the Gas Well Deliquification Web Site. The Gas Well Deliquification Steering Committee Members, the Supporting Organizations and their companies, the author(s) of this Technical Presentation or Continuing Education Course, and their company(ies), provide this presentation and/or training at the Gas Well Deliquification Workshop "as is" without any warranty of any kind, express or implied, as to the accuracy of the information or the products or services referred to by any presenter (in so far as such warranties may be excluded under any relevant law) and these members and their companies will not be liable for unlawful actions and any losses or damage that may result from use of any presentation as a consequence of any inaccuracies in, or any omission from, the information which therein may be contained. 25