The Aggressive Artificial Lift Low Pressure Pilot

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Gas Well Deliquification Workshop Sheraton Hotel, February 23-26, 2009 The Aggressive Artificial Lift Low Pressure Pilot (AALLPP) A team approach to optimizing production in South Texas Larry Harms, ConocoPhillips

Agenda Intro/Background Overall Results Statistics Results from Individual Items How is AALLPP Different Review Results 2

AALLPP Objective and Team Members Bring the best in technology/ resources to bear to maximize/accelerate production in a pilot area in S. Texas using a more aggressive art. lift/low pressure approach. Billy Cremar Production Tech 100% Javier Saenz - Multi Skilled Operator 100% Rodney Schulz Reservoir Engineer 50% John Urlaub - Facilities Engineer 100% Bob Stahmer SCADA 50% Larry Harms - Team Leader 50% Bruce Carrier/Karyme Martin 100% Prod. Engineer Joe King Production Tech 100% (Initial 4 months) 3

Lobo Field Tight Gas Field (~.01 -.3 md typical permeability) Sandstones at ~7,000 12,000 TVD Webb and Zapata counties Developed since 1980 ConocoPhillips operates ~2000 wells in Lobo 4

AALLPP Area Specifics ~80 Total Wells (67 mature low pressure wells in pilot) 2 7/8 with packer or open ended 2 3/8 tubing in most wells 5-30 BBLS Water/MMCF 5-30 BBLS Condensate/MMCF Single Central Battery Sales Meter to Monitor/Allocate Production 5

A lot goes on in a field but what happens to the base production??? 6

Pilot Work Performed Upgrade Central Separation/Compression Installed five wellhead compressors Installed five velocity strings Added & optimized pipelines & headers Added & optimized intermitters Added & optimized plunger lift Installed a cap string Dedicated an experienced lead operator Work as a multi-discipline team 7

16000 14000 12000 10000 8000 6000 4000 2000 0 Gas Production Totals Pilot Starts 2.8 BCF Uplift 8 3/1/06 5/1/06 7/1/06 9/1/06 11/1/06 1/1/07 3/1/07 5/1/07 7/1/07 9/1/07 11/1/07 1/1/08 3/1/08 5/1/08 7/1/08 9/1/08 11/1/08 1/1/09 Total Volume Expected Decline 30 Day Moving Avg

Analyzing the Change Statistically 9

Standard Deviation (SPE 117433) 10

The fitted bell curves (SPE 117433) 11

In statistical talk 12

The quantifiable amount Before After Average 10.9 11.8 Standard Deviation 95% Probability Range 1.3.7 8.3-13.5 10.4-13.2 13

What Do Wells Want? Constant/Low Pressure 14

Automated Field Pressure Control Set up automated wells with SCADA/EFM functionality to automatically control separator pressure Selected wells shut in when pressure increases Selected wells do not open when pressure is high Results Wells automatically adjust to capacity available Wells do not load up when compressor goes down but are ready to come back on with flush production when capacity available Minimal operator interaction required 15

3000 Gas Production Totals 2500 2000 1500 1000 500 0 16 5/23/2007 6/6/2007 6/20/2007 7/4/2007 7/18/2007 8/1/2007 8/15/2007 8/29/2007 9/12/2007 9/26/2007 10/10/2007 10/24/2007 11/7/2007 11/21/2007 12/5/2007 12/19/2007 1/2/2008 1/16/2008 1/30/2008 2/13/2008 2/27/2008 3/12/2008 3/26/2008 4/9/2008 4/23/2008 5/7/2008 5/21/2008 Wellhead Compression Installed Wellhead Compressors on Six Wells Includes two screw compressors Start Pilot Total Volume 30 Day Moving Avg

Velocity Strings 16 Chrome 1.5 CT Well Work Monitoring 1600 Installed on Five Lower Productivity Wells 1400 1200 1000 800 600 400 200 0 5/23/2007 6/23/2007 7/23/2007 8/23/2007 9/23/2007 10/23/2007 11/23/2007 12/23/2007 1/23/2008 2/23/2008 3/23/2008 4/23/2008 Projected Decline 2009 Metered Gas Well Volume Deliquification Workshop Uplift 17

Automatic Plunger Lift Optimization Original Plunger lift Install Start Using PL Controller to Optimize Shut-In Rate to Control Slug Size 18

Apply Foamers Cap String Serial Batch Soaping Cap String Cut during dp reduction work on surface Cap String Installed 19

Apply Foamers Mech. Problem Well Serial Batch Soaping Continuous foamer down parted coil tubing 20

Old Standard Installation (Case 1) = 20 psi dp @ 50 psig and 460 MCF New Setup (Case 2) = 3 psi dp @ 50 psig and 460 MCF 21

Teamwork Example 22

Teamwork Example 23

Teamwork Example 24

How is the AALLPP different? Natural Work Team approach In depth Lease Review Relentless pursuit of production Review every well every week Holistic approach to any change Question status quo Vendor Land owner Artificial lift type Standard Well Setup 25

AALLPP - Results Success Items Automated Pressure Control Automatic Plunger Lift Optimization Increased Foamer Use Reduced pressure drops with new plunger lift/intermitter installs Improved SCADA System with more frequent data/easier well changes Customized right approach for each well Teamwork Two new production optimization focus areas formed 26

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 uses of this presentation are prohibited without the expressed written permission of the company(ies) and/or author(s) who own it and the Workshop Steering Committee. 27

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. 28