N E W S L E T T E R. Vol ume 25 No. 9 Decem ber, 2009

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N E W S L E T T E R Vol ume 25 No. 9 Decem ber, 2009 Formation Damage Any Time, Any Place, Any Where 2009-2010 SPE Distinguished Lecturer Michael Byrne, Senergy, Ltd. It has long been rec og nized that for ma tion damage during drilling, completion, production, well intervention, and injection has a se ri ous im pact on well per for mance, field life, and value. In creas ingly, for ma - tion dam age has be come a key fac tor in the successful development or otherwise of chal leng ing res er voirs. Un der stand ing and identifying damage has significant impact, and the pro cess and knowl edge base has im proved dra mat i cally in the last twenty years. This lec ture will make the case that for ma tion dam age can oc cur at any time in a well life; any place, i.e. in ex - ploration, appraisal, production, or injection wells; and any where, i.e. in the com ple tion, the very near wellbore, or deeper in to the for ma tion. This presentation attempts to demystify many of the leg ends of for ma tion dam age and their evaluation. Fines migration and wettability al ter ation have long been the mechanisms employed by engineers (or geologists) to explain and justify almost every well or reservoir behavior. These mechanisms share the characteristics of be ing dif fi cult to prove and iden tify and having serious positive or negative effect on fluid flow. Their com plex ity should not be a bar rier to un der stand ing these mech - a nisms. With ap pro pri ate study, these pro cesses can be iden ti fied, un der stood, and at least semi-quan ti fied for most Tuesday, December 8, 2009 2009-2010 SPE Distinguished Lecturer Michael Byrne, Senergy, Ltd. FORMATION DAMAGE ANY TIME, ANY PLACE, ANY WHERE Speaker Presentation: Holiday Inn Superdome 330 Loyola Ave. New Orleans, LA Register at www.spe-delta.org Contact Jan Catalano at jan@orx.com or 504-581-1806 if prob lems Webcast: Chevron Office on the Northshore 100 NorthPark Blvd. Covington, LA Pre-registration Required for security clearance at Chevron - No walk-ins Contact Berik Zhakiyanov @985.773.6131 or Berik.Zhakiyanov@chevron.com 11:00 a.m. Registration 11:30 a.m. Lunch 12:00 Noon Speaker $30.00 w/ advance registration $35.00 at door and non-spe mem bers t reservoirs. With understanding, it is then possible to evaluate damage mitigation or remediation. Fresh ex am ples of the pro - cess of un der stand ing and avoid ing dam - age will be pre sented. The cost of for ma tion dam age to our in - dus try is dif fi cult to quan tify pre cisely, but it is un doubt edly true that less dam age is better than more dam age and sig nif i cant pro duc tiv ity or injectivity can be added through dam age aware ness and mit i ga - tion. An at tempt is made to quan tify the cost of dam age by coun try and re gion to put the tech nol ogy pre sented in per spec - tive. In 2007, the global an nual cost of for - ma tion dam age is es ti mated at one hundred thousand million dollars! Members should take away some in sight in to formation damage mechanisms as well as an ap pre ci a tion of the cost of dam age to our industry. A graduate of University College Dublin, Michael Byrne has worked in the oil in - dus try for 19 years, and has spent 18 years evaluating formation damage and sand con trol prob lems. He has writ ten and pre - sented var i ous train ing courses, and acted as a con sul tant to ma jor oil com pa nies worldwide. Numerous technical publications in clude key SPE pa pers on drill ing and completion related formation damage mech a nisms. He has been a prin ci pal au - thor of pa pers on rec om mended lab o ra - tory prac tice and on de scrip tion of formation damage mechanisms. He has served SPE as tech ni cal ed i tor, short course instructor, and steering committee mem ber and ses sion chair at sev eral SPE conferences, workshops and forums. Michael joined Senergy in Aberdeen in Au - gust 2007 as prin ci pal for ma tion dam age consultant.

SPE Delta Sec tion - 2 - December, 2009 In This Issue: Officers/Chairmen...3 From The Chair...4 Student Chapter Report...4 Technical Focus Group...4 2010 SPE Sec tion Golf Tour na ment...4 Young Professionals...5 Delta s Energy4me Spotlight...6 12th An nual GNO Joint In dus try As so ci a tion Luncheon..7 January Meeting Preview....9 Membership Report...11

December, 2009-3 - SPE Delta Sec tion 2009-10 SPE Delta Section Officers & Board of Directors Role Name Company Phone Email Section Chairperson Matt Wandstrat Baker Hughes 504.561.7929 matthew.wandstrat@bakerhughes.com Program Chairperson 1st vice chair Membership Chairperson 2nd vice chair Jan Catalano ORX 504.581.1806 jan@orx.com Josh Etkind Shell 504.728.4936 josh.etkind@shell.com Secretary Angie Gobert MMS 504.736.2876 angie.gobert@mms.gov Treasurer Bevan Stansbury The Personnel Consulting Group 504.581.7800 bevans@personnel-group.com Northshore Coordinator Berik Zhakiyanov Chevron 985.773.6131 Berik.Zhakiyanov@chevron.com Young Professional Jarred Guthrie Shell 504.728.6077 J.Guthrie@Shell.com Focus Chairperson Alan Holley Halliburton 504.728.8099 alan.holley@halliburton.com Continuing Education Chairperson Steve Moore Chevron 985.773.7062 smoo@chevron.com Scholarship /Career Guidance Nathan Vrubel Chevron 985.773.6449 nathan.vrubel@chevron.com ONE VOICE Chairperson Jan Catalano ORX 504.581.1806 jan@orx.com Deepwater Symposium Liasion Angie Gobert MMS 504.736.2876 angie.gobert@mms.gov Section Director - Section/Student Chapter Liaison (LSU) Section Director - Section/Student Chapter Liaison (Nicholls State) Mike Sparacino Baker Hughes 504.561.6433 Michael.Sparacino@BakerHughes.com Michael Gautreaux Nicholls State 985.448.4740 michael.gautreaux@nicholls.edu Section Director 08/09 Cheryl Collarini ETROA Resources, LLC 985.809.3808 ccollarini@etroa.com Section Director 08/09 Jerry Simms LLOG 985.801.4351 jerrysi@llog.com Section Director 08/09 Rakesh Kumar Shell 504.728.4902 rakesh.kumar@shell.com Section Director 09/10 Henry Shurlds Onesource Professional Search 985.727.2060 henry@onesourcepros.com Section Director 09/10 Charlie Mayne W&T Offshore 504.210.8172 cmayne@wtoffshore.com Section Director 09/10 David Schneider Eni 504.593.7000 david.schneider@enipetroleum.com Webmaster Brad Davis Chevron 985.773.6256 braddavis@chevron.com Corporate Liaison Walter Navoy Schlumberger 504.592.5402 navoy1@new-orleans.oilfield.slb.com Social Chairperson Lauren Polk Rig Chem 985.873.7208 lpolk@rigchem.com Sr. Advisor and Newsletter Jim Rike Rike Services 504.827.0161 jim@rike.com Newsletter Contents & Advertising Chiedozie Ekweribe Chevron 985.773.6457 CEKW@chevron.com Newsletter Contents & Advertising Hampton Myers Shell 504.728.6651 hampton.myers@shell.com Golf Tournament Chairperson Doug MacEachern Shell 504.592.6995 doug.maceachern@shell.com IT Support Jonathan Chung Scotia Capital 832.259.5718 jonathan_chung@scotiacapital.com IT Support Brad Davis Chevron 985.773.6256 braddavis@chevron.com Committee at Large Dean McPhearson Baker Hughes 504.561.7936 dean.mcphearson@bakerhughes.com Committee at Large Rick Fowler LLOG 985.801.4300 rickf@llog.com Committee at Large Clay Harrelson Shell 504.728.7292 clay.harrelson@shell.com Committee at Large Tony Richards Century Exploration 504.836.7328 tony.richards@centuryx.com

SPE Delta Sec tion - 4 - December, 2009 I would like to thank ev ery one who at - tended the Joint In dus try So ci ety Meet ing which was held in No vem ber. It was a great event play ing to a sell out crowd! The Roo se velt Ho tel was a great venue which was re cently re-opened and our key note speaker, Dr. Economides cer - tainly lived up to his rep u ta tion giv ing a very en ter tain ing talk. I was also able to at tend the SGS Sym po - sium Exploration Offshore Florida and At lan tic: The Next Fron tier? The event was also well at tended by eighty or so pro - fes sion als and did a good job ex plain ing the technical, political, and social challenges of this the ater of ex plo ra tion. Spe - cial thanks to API and SGS for or ches trat ing these great events. It is some thing to look for ward to each year and the bar has been set very high. Dur ing ATCE, teach ers from many lo cal schools participated in energy education Letter from the Chair and left their con tact in for ma tion so we could fol low up with pre sen ta tions to their stu dents. SPE Delta Sec tion will be at tend ing ca reer fairs, giv ing en ergy ed u ca tion pre sen ta - tions, and giv ing pre sen ta tions about ca - reers in our in dus try. As these vis its oc cur, we will be in clud ing ar ti cles about our vis - its reg u larly in this news let ter and will be ded i cat ing space ti tled Delta s En ergy for Me Cor ner. We hope to keep this space full and to do this we need your help! If you would like to help with these vis its, or know of schools look ing for more in - for ma tion about our in dus try please get in con tact with me at: Matthew.Wandstrat@BakerHughes.com Matt Wandstrat 2010 SPE Delta Section Golf Tournament Save the Date! The So ci ety of Pe tro leum En gi neers Delta Sec tion Golf Tour na ment com - mit tee is plan ning The 2010 An nual Golf Clas sic and we hope you will part of it! The 2010 Tour na ment will again be held on Fri day, March 5th at Carter Plan ta - tion lo cated in Spring field, Lou i si ana. The tour na ment will be a sin gle round, four-per son scram ble for mat with a shot gun start at 8:00 AM. Break fast will be served be fore the round. Drink carts will be used to sup ply bev er ages to the play ers through out the round as well as tents stra te gi cally placed on the course. Lunch will be served following the round. Student Chapter Report SPE Delta Sec tion mem bers trav eled to Ba ton Rouge in Oc to ber to sup port the LSU Stu dent Chap ter of SPE in their an - nual golf tour na ment. The team con sisted of Jerry Simms, Matt Wandstrat, and Mi - chael Sparacino along with stu dent chap - ter mem ber Dominick Sparacino. Al though no tan gi ble prizes were brought back to Delta Sec tion, we re turned with our pride in tact, ready to com pete again next year. This year s event was a suc cess de spite the slow down in the in dus try. Our mo men tum con tin ues to build with LSU. The Pe tro leum En gi neer ing De - part ment has of fered, and I have ac - cepted, a seat on their In dus try Ad vi sory Board. This seat is for the Delta Sec tion Li ai son, which will help guide LSU s Pe - tro leum En gi neer ing De part ment. I at - tended the all day gath er ing on Fri day Oc to ber 30th and par tic i pated in var i ous ac tiv i ties in clud ing se nior stu dent exit in ter views. The stu dent chap ter wants to con tinue the webcasts for our fu ture reg u lar meet - ings. The last two meet ings (Award Ban - quet and Joint In dus try) were not held at tech ni cally com pat i ble ven ues which re - stricted our webcasting abil i ties. We look for ward to grow ing our re la tion - ship with the stu dents at LSU. -Michael Sparacino Technical Focus Group There will be no SPE Delta Sec tion Tech ni cal Fo cus Group meet ing in No vem ber and De cem ber 2009. The next sched uled meet ing is Tues day, Jan u ary 26, 2010. Speaker and topic rec om men da tions are wel come. Please con tact Alan Holley, 5 0 4-7 2 8-8 0 9 9, alan.holley@halliburton.com. The golf tour na ment is used to raise money for and award funds for ac a - demic schol ar ships at the fol low ing uni ver si ties: Uni ver sity of New Or leans, Uni ver sity of Lou i si ana La fay ette, Nicholls State Uni ver sity, Mis sis sippi State Uni ver sity, Lou i si ana State Uni ver sity, Lou i si ana Tech University Reg is tra tion for the tour na ment will be - gin in Jan u ary 2010. Please look for ad - di tional in for ma tion on the golf tour na ment in up com ing newsletters. If you are in ter ested in serv ing on the golf com mit tee please con tact Doug MacEachern at (504) 728-7424 or doug.maceachern@shell.com. Doug MacEachern Golf Tour na ment Chair per son

December, 2009-5 - SPE Delta Sec tion Young Professionals Upcoming Refinery Tour Last year, the YP s vis ited Shell s re fin ery in Norco and learned about the chem i cal and re fin ing pro cess in down stream. Due to the over whelm ingly pos i tive feed back and your re quest for an other fieldtrip, we have ar ranged this year s visit to ExonMobil s Chalmette Re fin ery on De - cem ber 18th. Keep your eyes peeled for the in vite in your mail box soon and be sure to reg is ter early, be cause space is lim - ited and spots filled up fast last year. SPE to Host Gala Fundraiser Mark your cal en dars: On Jan u ary 23, 2010, SPE-Delta YPP will host a fundraiser Gala for the Greater New Or - leans Sci ence, Tech nol ogy, En gi neer ing, and Math (GNO STEM) ini tia tive. GNO STEM is a won der ful or ga ni za tion de - voted to im prov ing the cal i ber of math and sci ence ed u ca tion in our schools. The event will be a mas quer ade ball, so it s not too early to start look ing for your masks. Keep a look out for more in for ma tion to come October Technical Presentation Ken Meyers For the Oc to ber YP tech ni cal pro gram, Ken Meyers - re cip i ent of SPE s Tech ni cal Award in Res er voir De scrip tion and Dy - nam ics this year - joined YP mem bers at Bridge Lounge and shared ex pe ri ences from his ex ten sive back ground in res er voir mod el ing for var i ous fields. He ex plained the im por tance of fit for pur - pose en gi neer ing and his suc cesses in re - viv ing aban doned fields ac quired from major oil companies. North Shore Social Event No vem ber s so cial event was an other great suc cess! Many thanks to spon sor Halliburton for the food and drinks. Doz - ens of in dus try pro fes sion als gath ered at Bar ley Oak in to meet new peo ple, make friends, and en joy a great event. Stay up - dated for in for ma tion about De cem ber s so cial event, which will once again be held on the South shore. These events are open to all, so bring a friend, men tor, or col - league and come on out! Career Day The SPE Delta chap ter as sisted Bar ney Paternostro with "Ca reer Day" at Brother Mar tin High School in New Or leans, La. on Oc to ber 16, 2009. The ob jec tive of Ca - reer Day was to pro vide high school stu - dents with a va ri ety of ca reer choices and al low them se lect four ca reers of in ter est. The stu dents at tend four 20 min ute pre - sen ta tions where a ca reer rep re sen ta tive pro vided in for ma tion about their re spec - tive ca reer. With the help of SPE and "En ergy for Me", Barney demonstrated the typical day in the life of a Pe tro leum En gi neer, what it takes to be come an en gi neer and the ben - e fits of such a chal leng ing ca reer. Bar ney stated that all four ses sions were full with very in ter ested stu dents. The "En ergy for Me" PowerPoint pre sen ta tion was a great tool to illustrate the opportunities that ex - ist in the Pe tro leum In dus try. Newsletter Advertising Space is Still Available! Contact Dozy Ekweribe at 985-773-6457 or cekw@chevron.com for more information

SPE Delta Sec tion - 6 - December, 2009 Delta s Energy4me Spotlight Prof. Mayank Tyagi (SPE Stu dent Chap - ter Fac ulty Ad vi sor) and Ms. Lauren Fogarty (SPE Stu dent Chap ter Pres i dent) gave a lec ture to the sev enth grade math e - mat ics class at Glas gow Mid dle School (http://glasgow.ebrschools.org/) dur ing Spring 2009 (04/30/09). The pre sen ta tion ti tle was Pe tro leum En gi neers Make a World of Dif fer ence and it was avail able to the pre sent ers from the URL (www.energy4me.org). The stu dents par - tic i pated in class dis cus sions and asked se ries of ques tions rang ing from us age of en ergy, en vi ron men tal im pacts to how women find pe tro leum en gi neer ing as their pro fes sional ca reer. As a part of our con tin ued ef forts t for en - ergy ed u ca tion, we plan to give a lec ture about gen eral en ergy top ics dur ing Spring 2010 at Mc kin ley High School (http://mckinleyhigh.ebrschools.org/) dur ing Spring 2010. Bringing Our Industry to Middle Schools When asked a ques tion where oil co mes from, most mid dle schoolers will an swer that it co mes from un der ground. When asked what do oil com pa nies do, most will an swer that they run gas sta tions. Not too many will con nect the dots and men tion the pro cess with which the oil is de liv ered from the un der ground to the gas sta tions. Although somewhat humorous, these re - plies re veal how lit tle peo ple out side the in dus try know about the na ture of our busi ness. Of ten this leads to the neg a tive per cep tion to wards our in dus try. This why I think Energy4me is a great pro gram that not only helps to at tract youn ger gen - er a tions to ca reers in pe tro leum in dus try, but also ed u cates them about the chal - lenges and the com plex ity that our in dus - try faces, which in turn fights the neg a tive per cep tion that of ten pre vails within the public. On No vem ber 6th, I had the great op por - tu nity to par tic i pate in the Energy4me pro gram; I had the honor of pre sent ing to 8th grad ers in H.T Har ris School (Metairie) and 6h grad ers in Lit tle Oak Mid dle School (Slidell). Energy4me pro - vided me with pre sen ta tions and ideas to dis cuss with the kids. 6th grade pro gram talked about the im por tance of oil & gas and the ba sic pro cesses in volved in From Left to Right: Mark Alan Zweig (7 th grade Math Teacher), Prof. Mayank Tyagi (LSU), and Ms. Lauren Fogarty (SPE Student Chapter President). find ing, ex tract ing and de liv er ing oil & gas prod ucts to the con sum ers. 8th grade pro gram went deeper and in tro duced the kids to ca reers in the oil & gas in dus try. Dur ing my visit to Lit tle Oak Mid dle and H.T. Har ris schools, I was greatly im - pressed by the gen u ine in ter est within the au di ence about the na ture of our busi - ness. Kids were ea ger to know about the pro cesses and sci ences in volved in ex - tract ing and de liv er ing oil to the mar kets. More over, they dis played great tal ent for knowl edge and I hope that some of them will one day pur sue ca reers in the pe tro - leum in dus try. I would like to thank Darci Ramirez with SPE for get ting me in touch with the schools and pro vid ing me with all the pre - sen ta tion ma te ri als. I also would like to thank class teach ers, Kimberly Flair (T.H. Har ris), Barbara Poche and Deb bie Schellinger (Lit tle Oak) for pro vid ing me with the great op por tu nity to meet their classes and hav ing a great time. Fi nally, I would like to rec om mend to all Delta mem bers to vol un teer for Energy4me. Berik Zhakiyanov

December, 2009-7 - SPE Delta Sec tion 12th Annual GNO Joint Industry Association Luncheon

SPE Delta Sec tion - 8 - December, 2009

December, 2009-9 - SPE Delta Sec tion Abstract: Coiled tub ing (CT) is a sim ple con cept: con - tin u ous metal tub ing, wound onto a spool like a gar den hose. Its uni form outer di am e - ter affords deployment, storage and operational ben e fits that al low it to out per form jointed tubulars in many ap pli ca tions. How ever, CT is not as sim ple as it looks. The cy clic bend ing strains im posed on CT dur ing rou tine use are far be yond range typ - ically imposed on engineering alloys. Therefore, fa tigue is in ev i ta ble with CT. Understanding fatigue and plasticity behavior are critical to the successful implementa - tion of CT in the field. The bend ing strains in CT can cause its di am e ter to grow (bal - loon) by more than 30%. The tub ing also can elon gate on the or der of 10-12 feet each trip in and out of a 10,000 ft well. These events oc cur de spite the fact that nei ther the cir cumfer ential pres sure stresses nor the ap - plied ax ial forces ever come close to yield stress magnitudes. The development and growth of fa tigue cracks in CT also defy en - gi neer ing logic. They ap pear where you might least ex pect, and some times (for tu - nately) not on sched ule. January Preview Don t Miss It! Not surprisingly, the fatigue endurance of CT can be af fected by the pres ence of de - fects, which oc cur reg u larly in harsh oil field environments. Shallow defects that penetrate the wall thick ness by only a small per - cent age can re duce fa tigue lives by an or der of mag ni tude. On the other hand, large de - fects, driven through 1/3 of the wall thick - ness, have been shown to cause no reduction in fatigue life. Ongoing research is help ing to quan tify the in flu ence of de - fects, and to de velop tech niques for mak ing quick and cost-ef fec tive re pairs in the field. De fects must be de tected to be an a lyzed. The development of reliable inspection tech nol ogy pro vides an other key to CT re li - abil ity. Mag netic flux leak age is the most com mon tech nique for find ing flaws in CT. How ever, re search is un der way to adapt 3D laser imaging NDE, such that de fect di men - sions and geometry are fully characterized. Out put from such tech niques is di rectly com pat i ble with soft ware that can quan tify de fect se ver ity in real time. Young Professionals

SPE Delta Sec tion - 10 - December, 2009

December, 2009-11 - SPE Delta Sec tion SPE-Delta Membership Report submitted by: Josh Etkind (Membership Chairperson) As of No vem ber 1st, 2009: To tal Mem bers: 790 New Mem bers: 9 Trans fer ring Mem bers: 7 (3 in, 4 out) Un paid Mem bers: 63 New Members: Member Name Title Company Name Mr Michael W Breland Sr Account Manager Baker Hughes Mr Michael Cook Sun Drilling Products Corp. Mr Benjamin P Gary Halliburton Energy Services Egypt Ltd. Mr. Edward J LeBlanc Vice President-Special Projects Titan Specialties, Ltd. Mr Joseph P Moidel Baker Hughes Miss Kim Moser Engineering Technician Shell Exploration & Production Mr. Darren J Murphy Senior Drilling Engineer Shell Exploration & Production Robert A Pinnick Jr. Flow Assurance Specialist CHEVRON CORP Mr Troy Pittman Petroleum Engineer Chevron Corp. Members Transfering In: Member Name Title Company Name From Section Mr Keyon Azarnia Engineer Evangeline Mr. Don R Stelling General Manger Operations Chevron International E&P Golden Gate Mr. Brady Lotridge Drilling Manager Taylor Energy Co. Gulf Coast Members Transfering Out: Member Name Title Company Name To Section Dr. Emanuel J Willemse Venture Leader Shell Exploration & Production Calgary Mr Donal T Rajasingam Production Manager Shell Egypt N.V. Egyptian Mr. Donald P Evans Staff Environmental Engineer Murphy E&P Company Gulf Coast Mr. Eric J Huls Field Engineeer Schlumberger N. West Virginia

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