Anne Tandy (Burnett Ranch) CO 2 Flood King County (TX) Jonathan - PowerPoint PPT Presentation

Anne Tandy (Burnett Ranch) CO 2 Flood King County (TX) Jonathan Bradley, Senior Reservoir Engineer December 8 th , 2016 1

Overview • Summary • Company & Field History • Geologic Setting • Key Event Dates • Well Layout/Pattern Size • Well Design • Facility Overview • Flood Performance • Data Monitoring Toolbox • Current Challenges • Conclusions Google satellite image of our Central Facility 2

Company & Field History • Hunt Oil Company was founded in 1934 and today is one of the largest privately owned independent oil companies in the world • The Company has been responsible for discovering and developing some of the largest oil and gas fields in the world, including: East Texas Oil Field (Texas) o Alif Field (Yemen) o Camisea (Peru) o • The Company has operated on every continent, except Antarctica, in virtually every climactic and geographic condition; onshore and offshore Anne Tandy (Strawn) Field (PA1) Burnett Ranch Brief Field History • Field leased and drilled with marginal success in 50’s and 60’s • Actively developed in 70’s with waterflood commencing in 80’s • 13 different zones are productive from over 50 separate fields • Hunt purchased field in 90’s • Cumulative production to date exceeds 105 MMBO. • Project Area 1 (10,750 acres) is the initial CO 2 flood area and is now consolidated into one field with 4 reservoirs. New Corporate Headquarters in Dallas, TX 3

Overview • Simultaneous CO 2 flood of 4 Strawn intervals in Project Area 1 (PA1) of Burnett Ranch • Drilling started February 2013; First CO 2 injection March 2014 • Patterns: 23 of 43 on CO 2 ; 5 of 43 on H 2 O; 21 of 33 offsetting producers responding • Currently: 2,950 bopd; 26,000 bwpd; 20,800 mcfpd; 73,000 mcfipd; 15,900 bwipd • Drilling rig released Feb 2015; 23 wells remain to be drilled; 19 of 39 planned workovers completed • Current Pattern Inventory – 4; Drilling Restart targeted for January 2018 • 3 of 4 CTBs CO 2 -ready; RCF operational; Add compression and second water facility, as needed; Oil sales pipeline commissioned in 2016 4

BR PA1 – Historical Gross Production PRIMARY PROD. SECONDARY PROD. TERTIARY PROD. Onset of CO 2 Drilling Project 5

BR PA1 – Geologic Overview TYPE LOG Avg. Max Net Avg. Perm Porosity Pay Twin Peaks 15% 25-50 md 16' Strawn Lower 16-20% 75 md 33' 5400 Sand 20% 100-150 md 50' 5400 Lime 14% 1-10 md 42' Fossiliferous F.Gr. sand, ooid grainstone shale lamination, ripple X-bed API Gravity: 37.7 deg API Initial GOR: 241 (SCF/BBL) Pre-CO 2 GOR: 76 (SCF/BBL) Strawn 5400 Sand Strawn 5400 Lime 6

Geologic Map • Four zones o Twin Peaks o Strawn Lower o Strawn 5400 Sand o Strawn 5400 Lime • Strawn 5400 Sand & Strawn Lower have considerably higher kh • Minor faulting • Four horizontal wells targeting Strawn 5400 Lime • 115 Total Wells o 54 Injectors o 61 Producers 7

Project Development • 2009-2010 Petrel/Eclipse Sector Model - Simulation Study for CO 2 Flooding Potential o Assessed preferred deployment schedule (CO 2 /Water Injection) o • Injection-centered patterns • Begin with Continuous CO 2 Injection, followed by tapered WAG schedule • Maximized peak oil rate and incremental oil recoveries • 2010-2011 Scale-Up Model o • Scaled model results to the broader area defined for CO 2 flood • Forecasted oil, gas and water production and CO 2 /water injection • Performed Detailed Engineering Study 3D Seismic Program Completed (65 sq. mi.) o Front End Engineering Design Study Completed o • 2012-2013 CO 2 Purchase Contract Signed o Field Consolidation Awarded by Texas Railroad Commission o Field work o • Early phases of pipelines and facilities installed • Begin drilling and workover program in 1 st Qtr 2013 • Begin water injection; re-pressure reservoir(s) • 2014 CO 2 Injection begins in Anne Tandy (Strawn) Field o First Response from initial two patterns o 8

Pattern Layout Initiated Patterns • Pattern Size Water Curtain/Pattern Inventory • Northern Area: 80 acres • Southern Area: 120 acres • Layout Considerations • Geologic Setting A’ • Existing Well Layout • Topography A 9

Waterflood vs. CO 2 Flood Or Original Producer Peak Prima mary y (1 (1977) ) – 213 BOP BOPD INJ INJ Peak WF WF (1 (1990) ) – 1,009 BOP BOPD A A’ RMKR RMKR RMKR 0.1 1000 0.1 1000 0.1 1000 SPKR RDKR SPKR RDKR SPKR RDKR 60 190 0.1 1000 60 190 0.1 1000 60 190 0.1 1000 GR ILM GR ILM GR ILM 1976 1976 1975 0 180 0.1 1000 0 180 0.1 1000 0 180 0.1 1000 CALI ILD DPHI_SS CALI ILD DPHI_SS CALI ILD DPHI_SS Subsea Subsea Depth(ft) 6 16 0.1 1000 0.3 -0.1 6 16 0.1 1000 0.3 -0.1 6 16 0.1 1000 0.3 -0.1 Depth(ft) -3625 -3625 5300 (-3639) 5350 (-3645) -3650 -3650 TOP_5400_SAND 5350 Strawn (-3655) TOP_5400_SAND 5400’ 5325 (-3664) Strawn 5375 Sand (-3670) -3675 -3675 5400’ BASE_5400_SAND 5375 TOP_5400_LIME (-3680) Sand BASE_5400_LIME 5350 (-3689) 5400 (-3695) BASE_5400_SAND -3700 -3700 5400 N-17 (-3705) N-19 N-11 5375 6,450’ 5,500’ 5,740’ TOP_5400_LIME (-3714) 5425 (-3720) S5400'_SAND_O-W_TOP New Offse Ne Offset Producer Initial Rat In Rate (2 (2013) ) – 12 BOP BOPD RLA5 Peak Res Response se (2 (2014) ) – 269 BOP BOPD 0.1 1000 RLA4 2013 2013 0.1 1000 RLA3 DPHZ 2013 ILM DPHI_SST ILM PORZC 0.1 1000 0.3 -0.1 0.1 1000 30 -10 0.1 1000 30 0 GR RLA1 PE GR ILD PE GR ILD PE Subsea Subsea Depth(ft) 0 180 0.1 1000 0 20 0 180 0.1 1000 0 20 0 180 0.1 1000 0 20 Depth(ft) -3625 -3625 TOP_5400_SAND 5400 (-3644) -3650 -3650 TOP_5400_SAND 5350 5325 Strawn Strawn (-3660) (-3661) 5400’ 5425 5400’ (-3669) Sand Sand -3675 -3675 TOP_5400_LIME BASE_5400_SAND 5375 5350 (-3685) (-3686) BASE_5400_LIME BASE_5400_SAND 5450 TOP_5400_LIME (-3694) -3700 -3700 N-27R N-10R N-11R BASE_5400_LIME 5,990’ 5,870’ 5,540’ 5400 5375 (-3710) (-3711) 10

Typical Wellbore Completion • Drilling Injector Producer o 10 ¾” surface casing at 350’ to 400’ • GAU depths vary between 150’ to 200’ 7” mixed string production casing at 5600’ o • Historically, 7” has shown best performance against external corrosion • 7” 23ppf J -55 LT&C • DV tool placed below the Cisco to help ensure cement coverage o Place Ryt-Wrap casing across 2 most corrosive zones in case of cement channels (Coleman Junction 2300 & Cisco 3500’), 13Cr alloy placed in interval to be exposed to CO 2 /water mix in wellbore (when high fluid o column) • 7” 23 ppf 13Cr80 JFEBear o 80 ksi yield strength, burst and collapse ratings same as N-80 o JFEBear connection is gas tight with torque shoulder • Completion o Perforated 4 SPF @ 120 degree phasing Twin Peaks Formation - Fracture stimulated with 200’ frac length o Strawn Lower Formation - Fracture stimulated with 50’ fracture length o o 5400 Sand Formation – Most are fracture stimulated with 50’ fracture length • Operations ESP’s in most producers 28 ESP’s & 7 Rod pumps o • Monitoring various variables (motor speed, intake pressure, temperature, etc.) Currently operating with casing head (annulus) gas commingled with full production o Treating wells for asphaltenes/paraffin, scale, and corrosion o 11

Facility Schematic WATER INJECTION STATION (WIS) Fourth pump excess capacity PUMP SWD (as needed) PUMP WATER TANK WAG SKID PUMP INJECTING PUMP WELL 1900# COMP RECYCLE COMPRESSION 1900# COMP FACILITY (RCF) TEST TRAIN DEHYDRATION 400# PUMP PURCHASED CO2 1900# COMP DELIVERY PUMP ~1600# GAS INLET 400# PUMP 1900# COMP HP 2-PHASE SEPARATOR PRODUCTION OIL & WATER COMP HEADER 400# 75# OIL & WATER INLET 75# GAS CENTRAL TANK BATTERY LP 2-PHASE SEPARATOR VAPOR OIL & WATER 3 oz RECOVERY VENT/FLARE (CTB) COMP PRODUCING x4 75# WELL OIL TANK INLET FREE WATER KNOCKOUT OIL & WATER OIL TANK VRU OIL SALES INLET 5,000 bbl OIL P/L OIL GAS 25# WATER HEATER TREATER WATER OIL OIL WATER WATER 12

Field Operating Pressure INJECTOR PRODUCER • Wellhead Pressures o Injectors 3,300-3,700 psi • 1,600 – 1,700 psi on CO 2 Both Water & • 1,200 – 1,300 psi on Water CO2 Producers o BOTTOMHOLE OPERATING PRESSURE • HP System: 450 – 500 psi • LP System: 150 psi • Consistently evaluating for optimization Improved reservoir pressure management o Targeted Avg. Reservoir Pressure Optimized pump efficiency given GLR o 2,200 psi Minimize impacts of asphaltine/paraffin o • Not all producers achieve this bottomhole pressure due to pump sizing and deliverability 600 psi Post-Response 100-200 psi Pre-Response Minimum Miscibility Pressure: 1800 psi @ 120 deg F (95% CO 2 ) 13

Current PA1 Production & Injection • Oil production includes small amount of remaining secondary • Recent leveling of oil production largely driven by reduced process speed Declining injectivity o Fewer patterns initiated o • Manage production to stay below current facility recycle gas limit of 30 Mmcf/d 14