Horizontal Well Artificial Lift Consortium (TUHWALP) Progress and Activity Summary

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Gas Well Deliquification Workshop Sheraton Hotel, Denver, Colorado February 23 26, 2014 Horizontal Well Artificial Lift Consortium (TUHWALP) Progress and Activity Summary Cem Sarica, Univ. of Tulsa Cleon Dunham, Oilfield Automation Consulting, Artificial Lift R&D Council Rob Sutton, Artificial Lift R&D Council

Introduction Vast majority of unconventional wells are horizontals both for oil and gas Most will require artificial lift Challenging, especially in shale formations with long horizontal sections Requires new knowledge and technology development With ALRDC initiative TUHWALP started July 1, 2012 Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 2

Horizontal Well Challenge Typical Horizontal Well Profiles Gas Lock Liquid Blockage Note difference in vertical and horizontal scales This shows potential locations for traps of liquid and gas in more detail Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 3

Justification Unloading from horizontal wells is not well understood Water can accumulate at low spots and may not be removed resulting in Increased back pressure Water flow back (imbibition) into formation Low spots or traps Can also accumulate produced sand, completion debris Flow assurance issues such as scale, and paraffin For oil dominated systems, production operation and artificial lift method requiring better characterization of flow of various phases in the lateral Determine horizontal well trajectory, i.e., toe up or toe down Existence of terrain induced slugging and its ramifications Placement of artificial lift equipment in the well Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 4

Justification Horizontal well trajectory (e.g. toe up, toe down) often dictated by drilling location and reservoir architecture Horizontal well trajectory impacts: Multiphase flow patterns occurring along the wellbore Effectiveness and location of artificial lift equipment Well capacity and ultimate recovery Compromise is needed early in field development and requires clear qualification and quantification of impact of trajectory on artificial lift success Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 5

Justification Artificial lift practices for horizontals are mostly based on vertical wells Each form of artificial lift has constraints or limitations Well design (casing and tubing size, hole angle build rate, and dog-leg severity), as well as reservoir performance, affect artificial lift choice and placement No predictive design tools to compare performance of different techniques and practices Other issues influence scope and success of artificial lift Placement of end-of-tubing, Location for artificial lift equipment (pump, gas lift), Casing size, etc. Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 6

Justification Predictive tools for horizontal wells can be either experiencebased (recommended practices) or model-based Model-based starts with understanding multiphase and transient flow phenomena in horizontal wells e.g. Onset of liquid loading in horizontal wells differs from vertical wells Each artificial lift technique has unique interaction and suitability with multiphase flow Multiphase flow behavior is a key to understanding and helping choose and design proper artificial lift Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 7

TUHWALP Mission Statement Improve design and operability of artificial lift for horizontal wells Improve selection, deployment, operation, monitoring, control, and maintenance of artificial lift equipment Recommend artificial lift practices to optimize recovery of oil, natural gas, and associated liquids from horizontal wells Advance knowledge and effectiveness of people who design and operate horizontal oil and gas wells Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 8

Current Members 17 Members ALRDC* BP Chesapeake Chevron Cimarex ConocoPhillips Devon Encana ExxonMobil GE Oil and Gas Lateral Resources Marathon Oil Corporation Norris Production Solutions Range Resources Shell International EP Southwestern Energy Weatherford * Note: ALRDC supports graduate students Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 9

Horizontal Well Project R&D Projects Horizontal Well Artificial Lift R&D Projects Prioritized by member companies under three project lines I. Multiphase flow behavior in horizontal wells II. Artificial lift techniques in horizontal wells Help with selection of optimum method(s) of artificial lift Placement of end of tubing, location for artificial lift (pump, gas lift), and casing size Well construction and applicability of various artificial lift techniques III. Guidelines and recommended practices Summarize industry learnings and literature information When to start artificial lift operations in horizontal wells Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 10

Project 1: Multiphase flow behavior in horizontal wells Objectives Investigate multiphase flow characteristics for horizontal oil and gas wells experimentally/theoretically and how they are affected by well geometry or trajectory Develop a model and software tool that simulates multiphase flow in horizontal wells Experimental study Experimentally simulate operating conditions of horizontal wells using a 2 in. ID facility Toe-up, toe-down and undulation configurations Gas and liquid feeds along the test section to mimic the inflow from horizontal well fractures Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 11

Project 1 Facility schematic Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 12

Project 1 Deliverables Two-phase gas-liquid flow behavior in horizontal wells Understanding of Liquid loading for horizontal wells Liquid loading criteria Experimental data Model and software to predict flow behavior Guidance to determine optimum horizontal well geometry Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 13

Project 1 Project status Constructed a versatile facility to investigate multiphase flow behavior and test various artificial lift systems Experimental studies started Static tests (Only gas feed, constant initial liquid volume) Dynamic tests (Both gas and liquid phases are actively fed) Static Tests Complete for Toe-up, Toe-down and One Undulation Unit geometries Self unloading were investigated Different geometries exhibited different unloading behavior Flow Videos:» Toe-down1, Toe-down2 and Toedown3» Toe-up1, Toe-up2, Toe-up3, and Toe-up4» One undulation1, One undulation2, and One undulation3 Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 14

Project 1 Project Status Dynamic Tests Single entry to be completed by May 2014 Multiple entries to be started in Sept. 2014 End of Tubing (EOT) Placement Project Different locations along the vertical and lateral section will be investigated Project will utilize the same facility during summer of 2014 Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 15

Project 2: Investigate Artificial Techniques in Horizontal Wells Project objectives Experimentally and theoretically investigate performance of various artificial lift techniques Develop performance evaluation tools based on flow dynamics and well construction profile Generate an artificial lift selection criteria road map based on field data, and experimental and theoretical results Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 16

Experimental study Project 2 Simulate operating conditions using large scale facility New facility At least two undulations Large pipe of 6 in. diameter Gas and liquid feeds along test section to mimic inflow from horizontal well fractures Toe-up and toe-down configurations Ability to test various artificial lift methods Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 17

Project 2 Facility 6-in 40-ft 250-ft Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 18

Project deliverables Project 2 Unloading performance and comparative analysis of various artificial lift methods Tubing inserts Surfactants Pumping systems Gas-lift Impact of slugging Experimental data Analyze setting location of artificial lift equipment Current status Design of large scale facility completed Construction will be completed by March Graduate student is hired Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 19

Project 3: Guidelines and Recommended Practices for Unloading Horizontal Gas Wells Project objectives Develop guidelines and recommended practices for selection of proper artificial lift techniques Deliverables Database of field and experimental data Analysis of data Guidelines and recommended practices based on field and experimental data Current status Review and Modification of Existing Selection Criteria Weatherford method (Unloading Selector Criteria) Recoded and tested ALDRC method Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 20

Consortium Management Structure Committees Project Committees, Sub-Committees, and Their Roles Main body of Consortium is Advisory Board One assigned person from each member company They direct overall operation of the project Two sub-committees monitor and advise the Consortium Member companies may assign to these sub-committees Technical Support Sub-Committee, Rob Sutton, ALRDC, chair Technology Transfer Sub-Committee, Greg Stephenson, ConocoPhillips, chair Further, each project has three to four project champions who are intimately involved in conduct of projects Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 21

Meetings Full Team Meetings Two meetings of full project membership held each year, one in Spring; one in Fall Held at Univ. of Tulsa or facility designated by the University General agenda is: Review work completed since last meeting Present work planned for next six months Discuss and vote on issues that need to be decided by project members Tour R&D facility Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 22

Sub-Committee Meetings Meetings Each sub-committee meets four times a year Two are held in person during Advisory Board meetings; two are conducted through teleconferencing Project champions can meet with University research staff any time they feel necessary or as requested by the research staff Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 23

Horizontal Well Project Summary Annual cost per company $50,000 Currently 17 member companies Current income $850,000 per year More members needed Questions, Discussion Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 24

Copyright Rights to this presentation are owned by the company(ies) and/or author(s) listed on the title page. By submitting this presentation to the Gas Well Deliquification Workshop, they grant to the Workshop, the Artificial Lift Research and Development Council (ALRDC), and the Southwestern Petroleum Short Course (SWPSC), rights to: Display the presentation at the Workshop. Place it on the www.alrdc.com web site, with access to the site to be as directed by the Workshop Steering Committee. Place it on a CD for distribution and/or sale as directed by the Workshop Steering Committee. Other use of this presentation is prohibited without the expressed written permission of the author(s). The owner company(ies) and/or author(s) may publish this material in other journals or magazines if they refer to the Gas Well Deliquification Workshop where it was first presented. Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 25

Disclaimer The following disclaimer shall 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 Artificial Lift Research and Development Council and its officers and trustees, and the Gas Well Deliquification Workshop Steering Committee members, and their supporting organizations and companies (here-in-after referred to as the Sponsoring Organizations), and the author(s) of this Technical Presentation or Continuing Education Training Course and their company(ies), provide this presentation and/or training material 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. The views, opinions, and conclusions expressed in these presentations and/or training materials are those of the author and not necessarily those of the Sponsoring Organizations. The author is solely responsible for the content of the materials. The Sponsoring Organizations cannot and do not warrant the accuracy of these documents beyond the source documents, although we do make every attempt to work from authoritative sources. The Sponsoring Organizations provide these presentations and/or training materials as a service. The Sponsoring Organizations make no representations or warranties, express or implied, with respect to the presentations and/or training materials, or any part thereof, including any warrantees of title, non-infringement of copyright or patent rights of others, merchantability, or fitness or suitability for any purpose. Feb. 23-26, 2014 2014 Gas Well Deliquification Workshop Denver, Colorado 26