The Flotek Store The Time Is N W 1. Favorable commodity price environment 2. Over-supply of hydraulic horsepower 3. Two-year direct marketing and educational process 4. Growing frustration of E&P companies regarding technology…
The Flotek Store IS IN YOUR WELL Reaching the Tipping Point. . . Operators are no longer asked why they use CnF completion chemistries; but those who arent using CnF are being asked why not.
Panel Discussion
Panel Discussion Yucel Akkutlu, Ph.D. George & Joan Voneiff Career Development Professor & William Keeler Fellow, Harold Vance Department of Petroleum Engineering, Texas A&M University, College Station, Texas John Ely Founder &…
Texas A&M University Daniel Hill, Ph.D. Harold Vance Department of Petroleum Engineering 96
Harold Vance Department of Petroleum Engineering
TAMU Petroleum Engineering Research Funding
Source of research contract awards for 2013-2014
Our Research in Unconventional Resources Hydraulic Fracturing Rock/fluid interactions Fracture conductivity Fracture Mechanics Resource Assessment Seismic mapping of sweet spots Basin depositional analysis Fracture diagnostics
Our Research in Unconventional Resources Reservoir/Well Performance Discrete fracture network modeling Rate/pressure transient analysis Fast marching methods for history matching Resource Assessment Seismic mapping of sweet…
Unconventional (Source Rock) Resources Drilling and hydraulic fracturing Our understanding of the are high-tech state-of-the art resource in place is early-stage
Performance of over 600 Bakken wells Extreme variability
Performance by Operator
What is causing this variability in well performance The well length The number of fracture stages The type and amount of fracture fluid The type and amount of proppant
Hydraulic Fracturing Fluid Product Component Information Disclosure Job Start 4/27/2015 Date: Job End 5/14/2015 Date: State: Texas County: Karnes API 42-255-34058- Number: 00-00 Operator Marathon Name: Oil Well Name and…
Trade Name Supplier Purpose Ingredients Chemical Abstract Maximum Maximum Comments Service Number Ingredient Ingredient (CAS ) Concentration in Concentration in Additive HF Fluid (% by mass)** (% by mass)** Ingredients shown above…
Whats next for unconventional gas and oil development in the U.S. and the rest of the world
Texas A&M Study Results From Zhenzhen Dong Dissertation August 2012 OGIP (P50), Tcf TRR (P50), Tcf Region CBM Tight gas Shale gas Total CBM Tight gas Shale gas Total AAO 1,348 6,253 2,690 10,291 483 3,783 676 4,942 NAM 1,629…
We are not going to run out of oil and gas What will limit unconventional gas and oil development Low prices
Global Gas & OilEnergy Mix ToIn2040 Still Kings 2040 Solar + Wind + Biofuel: 5% Of The Global Energy Mix In 2040 -Nuclear -Hydro Quadrillion BTUs -Gas 60% -Oil -Coal -Biomass 1800 1850 1900 1950 2000 2040 Source:…
Questions
Thank you Dr. Dan Hill Professor, Department Head Petroleum Engineering and Noble Endowed Chair
Texas A&M University Yucel Akkutlu, Ph.D. Harold Vance Department of Petroleum Engineering
Future IOR Potential for Shale Oil Propped fracture feeding a well Technical and Operational Challenges: How to improve the qualities of the hydra fracture wall surfaces M A How to maximize the fracturing fluid T (and chemicals R it…
Stable Molecular Cluster of Citrus Oil Entangled w/ Surfactant Surfactant: dodecylhepta(oxy-ethylene)ether (C12E7) contains one hydrophobic tail of 12 alkyl groups, and one hydrophilic head of 7 ethylene oxide groups and 1 terminal OH…
Effective in Removing Oil Films on the Fracture Wall Surfaces No citrus oil With citrus oil
Viewing Water Phase (blue) during Displacement Pores of oil-wet fracture wall surface Pore of water-wet fracture surface Water can penetrate and Oil inside all nanopores is displace only the oil residing in displaced largest pore…
Viewing the Oil Phase (green) and Water Phase (blue) during Displacement Pores of oil-wet fracture surface Pore of water-wet fracture surface Water can only penetrate and Oil inside all of the nanopores displace oil residing in…
Citrus Oil Effective in Penetrating Shale Matrix Pores of oil-wet fracture surface Pore of water-wet fracture surface One droplet is adsorbed by the One droplet is adsorbed to the surface of the rock before oil cluster before…
Tall City Exploration, LLC Gary Womack Vice President - Operations
Tall City Exploration, LLC Flotek Presentation Tall City Exploration Completion Optimization CnF Technology 127
Historical Track Record Startup May 2012 - Current July 2015 Tall City Exploration LLC 203 West Wall Street, Suite 600 Midland, TX 79701 (432) 218-7816 tallcityexploration.com 128
Yrs. Management Team Name/Title Exp. Professional Biography Mike Oestmann Chief Executive Officer 32 Biographies Worked 15 years with Exxon, 7 years with Titan/Pure Resources/Unocal, 2 years with Celero/Whiting in various…
TCE 1 -- Initial Business Plan May 2012 Company Formation and Business Plan Founded and funded by Denham Capital in May 2012 Initial Equity commitment of 200 MM; expanded to 300 MM Senior Debt Facility of 500 MM in place with current…
TCE 1 -- Executed Actual Business Plan To-Date -- July 2015 North Position Acquired 91,000 net acres in Wolfcamp Horizontal Play 77,000 net acres North Position: 77,000 net acres in Howard and Borden Counties, TX South Position:…
TCE 1 -- Executed Actual Business Plan To-Date -- July 2015 North Position Acquired 91,000 net acres in Wolfcamp Horizontal Play 77,000 net acres North Position: 77,000 net acres in Howard and Borden Counties, TX South Position:…
Sales Proceeds and Return on Capital (ROI) Sale of South Position (November 2014) 437 MM to American Energy Partners, LP (377 MM discounting notes to 60%) October 2015 Sale Sale of Miscellaneous North Position Acreage (Spring 2015)…
Midland Basin Horizontal Development Over Time Horizontal Wolfcamp Development Trends/Phases Overview Horizontal development was initiated in the Phase III NW Phase IV NE The southeastern portion geologic story will of the basin…
Tall Citys Wolfcamp Horz Results compared to Industry Tall City Howard Wells - 30 day IP vs EUR 1,400 Tall City Wolfcamp A Tall City Wolfcamp B Tall City_Spraberry LShale Tall City - AEP Reagan Co 1,200 AEP - Enduring Laredo…
Individual Well Rate of Return (IRR) Sensitivity to Oil Price
Optimizing Completions Selection of Tall City / Vendor Team Use of Shale Logs in regional acreage evaluation Microseismic CnF Technology FracMax Validation
Nano Surfactant Purpose Improve penetration into the formation Increase contacted and stimulated reservoir volume Used in primary fracture Used in remedial treatments Validation
Well without CnF
Pre vs Post Re-Stim with Nano Surfactant 75 days of production 75 days of Total Production after before Re-stim Re-stim
MAINTAIN HEALTHY ECONOMICS OPTIMIZE AND STREAMLINE
Velvet Energy Ltd. Brady Webb Chief Engineer
Incorporating Advanced Chemistry to Yield Superior Results
WHO ARE WE Velvet Energy started in 2011 with Private Equity financing, raising 347mm with the concept of exploiting tight gas opportunities in the Deep Basin of Alberta with Horizontal Drilling. 2012 Established Core Area west…
PRIMARY FOCUS Velvets Primary Focus horizon is the Lower Cretaceous Gething, Ellerslie and Ostracod Formations Typical pay interval is 30-60 ft, average porosity is 10 percent, water saturations between 25 to 35 percent and…
COMPLETIONS HISTORY Initially Velvet relied on our pump service provider to design, recommend and pump our stimulation jobs. In January of 2013 we decided to take control of our stimulation designs Our first priority was to…
COMPLETIONS WORKFLOW Post Frac Review Formation Evaluation Compare current completion with database Determine Reservoir Properties Change Frac Fluid Type DFIT Initial Pressure, Closure Pressure, Modify Chemical Selection Zone Stress…
INTRODUCTION TO CnF SURFACANT After a review of the flow back reports from our first few wells a Consultant in our completions group recommended using CESIs CnF surfactant. Our next several wells were pumped with CnF at between 1-2…
BACK TO THE LABORATORY TO EXPLAIN RESULTS Our preliminary observations were interesting but we didnt really understand what was happening. We initiated a research program to try and better understand the processes involved. After…
CnF IMPROVES FRACTURE CONDUCTIVITY In Cuttings/Proppant column drainage tests CnF surfactant demonstrates superior drainage which we believe translates into higher effective fracture conductivities. This illustration courtesy of…
CnF IMPROVES FRACTURE CONDUCTIVITY Note: Rapid breakthrough time Effectiveness of 2.0 gpt CnF additives in filtered mixture of 50% formation water and 50 % frac water displaced by centrifuged formation oil from a column packed…
CnF ENHANCES NEAR WELLBORE PERMEABILITY Corelabs Canada conducted several regained core studies on cores from target horizons. In six regained core studies we directly compared frac fluids with and without CnF. The results showed…
RESULTS TO DATE Normalized averaged well results drilled in target horizon post 2013 Operator 1 (7) Velvet (31) Operator 2 (15) Other (11)
WHERE DO WE GO FROM HERE Our relationship with CESI Chemicals is excellent and we are now into our third year of collaboration. Here is a short list of some of our current projects and some new ideas Currently, we are doing a multi…
CONCLUSIONS Adoption of a complete Completion Workflow is imperative to improve frac performance. Advanced chemistry solutions are reservoir specific. Frac fluid chemistry varies with the type of insitu fluids, their chemical…
Kinder Morgan CO2 Company Lanny Schoeling, Ph.D. Vice President of Engineering & Technical Development
Kinder Morgan CO2 Asset Map KM is one of the largest oil producers in Texas, producing over 55,000 BOPD. CO2 PIPELINE We operate 5 CO2 floods SACROC, Yates, CRUDE PIPELINE Goldsmith, Katz, and Tall Cotton CO2 SOURCE FIELD OIL PRODUCTION…
Kinder Morgan Oil Fields/CO2 Floods Kelly-Snyder (SACROC) Major Focus is Conformance Miscible CO2 Flood CO2 must contact Rock Yates Immiscible CO2 Flood Possible chemical technologies Katz needed to improve Early Stage Miscible…
Dr. Lanny Schoeling, KM VP Engineering Over 35 year Experience in the following EOR Technologies Chemical Flooding: Gel Polymers and Surfactants Early Career Thermal EOR: Chief Reservoir Eng. For Shells IUP for Unconventionals CO2…
Kelly-Snyder (SACROC) Floteks Polymer Gels (Very Successful) Discovered in 1948 11th Largest Field in U.S. This week implementing 2.8 Billion Barrels OOIP the 100th (Flotek/EOGA) 3300 psi discovery pressure Gel polymer treatment at…
Platform Polymer Work P1: Polymer treatments 29 wells 384,600 bbls gel P2 Polymer treatments 30 wells 524,482 bbls gel P3S Polymer treatments 21 wells 235,092 bbls gel SPE 169176 Performance Review of Gel Polymer James Pipes…
Katz Testing CnF Foams Discovered in 1956 150 MMB OOIP KSU 164 Discovery Pressure 2200 psig 38 deg API gravity crude Solution Gas Strawn Formation Sandstone After 1 5 Layers of Sandstone 2a Purchased April 2006 2b 2c…
Requirements for Successful Implementation of Innovative Technologies Healthy Communication with Vendor Professional Champions are needed both at the Vendor and Operator level Agreement on the Strategic Approach Successful Field…
Ely & Associates John Ely Founder & Chief Executive Officer
Ely and Associates Corp. John W. Ely Founder & CEO
Quick summary of Ely Corp. Ninety-one employeesPrimary function of the company is the design and supervision of fracture treatments worldwide. In 2013 we supervised more than 60,000 frac stages and did even more in 2014. We have a…
Summary of my experience 15 years with Halliburton in research and field operations both domestic and in the Middle East. 5 years as Engineering Manager for Nowsco Well Services. 6 years as Vice President Stimulation for Holditch &…
Relationship with Flotek Long relationship with John Chisholm Flotek hired me to look at the tremendous amount of data accumulated with their CnF product relating to nano chemistry. I have also met with their research personnel in…
Thoughts on the CnF product The massive amount of data collected using Frac Focus data proves without a doubt that the product is dramatically increasing production in oil and gas wells. I am known throughout the industry as…
Way forward for Ely Corp. Based on the data I have seen we plan on recommending the CnF product, where applicable, and also have another project relating to re-stimulation in which we plan to incorporate the product. Our industry…
Key drivers for successful completions For the multitude of very low permeability reservoirs which are dominating the fracturing market the use of high volume slick water combined with small proppant have literally changed our…
Where is the industry going Anyone who conclusively says what is going to happen with oil and gas prices is either wrong or has divine guidance. What is occurring is that we are working very hard to reduce costs and or utilizing…
Financial Discussion Rob Schmitz Chief Financial Officer
Financial Overview In the most challenging market environment in memory, we achieved breakeven earnings Operating Income Operating Cash Flow (excl. Impairment) 20.0 40.0 15.0 30.0 10.0 20.0 10.0 5.0 - - 1H14 1H15 1H14 1H15…
Resilient CnF Pricing & Recovering Margins Range of Prices for Major CnF Products Product reformulations and strategic relationships resulted in lower prices in Q1, but prices have stabilized in 2015. ECT Gross Margin Trends Q1…
CAPEX Outlook 12 10 8 6 4 2 - Q1-15 Q2 - 15 Q3 - 15e Q4 - 15e Base CAPEX Global R&I Facility Expansion Opportunities Total 2015 CAPEX expected between 25 30 Mil Potential expansion opportunities are associated with…
Second Half 2015 Outlook Continued Strong Balance Sheet Positioned for Strategic Opportunities If They Arise. No Debt Compliance Concerns. Continued Market Share Growth in ECT Expect Strong 3Q Sequential Revenue Growth. Stable to…
Making A Difference
For More Information: Christopher S. Edmonds Senior Director Corporate Finance & Strategy 713-726-5376 cedmondsflotekind.com
Loading...
