HEAL System The Foundation for Efficient Artificial Lift in Horizontal Wells ENERCOM Conference August 17, 2017 Denver, Colorado Jeff Saponja, CEO Multiple Patents Pending HEAL Systems, 2017
Agenda 1. HEAL System Overview Install Statistics Routes to value HEAL System Design Principles 2. Risk Based Design 3. Case Histories Reduced capital investment Reduced operating expenses Improved production performance 4. Q&A…
HEAL System Installs Long-term case histories in multiple basins Over 250 installs Over 35 formations Production Plus Energy Services Inc. 2016 3
Case Study: Production Enhancement, Montney Production Plus Energy Services Inc. 2016 4
Full Cycle Artificial Lift Strategy Reduce CAPEX and OPEX Conventional Strategy HEAL System HEAL Lift Strategy 3000+ 1. Control frac flowback 3000+ Natural Flow 2. Maximize natural flow period (lowest Natural Flow thru HEAL…
Development of the HEAL SystemTM 1. Discovering the root problem 2. Resolving the root problem Production Plus Energy Services Inc. 2016 6
Artificial Lifting horizontals has been challenging Multiple workovers replacing failed pumps / rods Excessive pump gas interference Poor runtimes High fluids levels and cant pump well off Poor pump efficiencies has led to…
Production Engineers Predicament Implement the lowest cost lifting system as quickly as possible. Maximize drawdown (lowest BHP) at the lowest operating and capital cost for the artificial lift required Always been a trade-off of…
HEAL System Development Slug flow is the root cause of poor artificial lift performance Production Plus Energy Services Inc. 2016 9
Solution: consistent, regulated flow Slug flow mitigation prior to the separator and pump Production Plus Energy Services Inc. 2016 10
Case Study: Slug Flow Mitigation Improves Separation Wolfcamp, Permian 23 neighboring wells and 140 readings over seven months Slug flow mitigation improves downhole separation, downhole system fillage is higher and more…
Why do horizontals have slug flow Severe slug flow around bend compounds slugging in hz https://youtu.be/DTl10BeLHV0 Production Plus Energy Services Inc. 2016 12
Slug Flow Transports Solids Along Horizontal Mitigation of slug flows offers solids control Solids are transported in dunes or beds along horizontal due to wave mechanics (saltation) associated with slug flow Transported…
HEAL System flow path Place traditional artificial lift systems in vertical Place moving parts (pump) in vertical for reliability Smaller lift equipment or more capacity out of existing equipment Solids control is key Control…
HEAL System: SRS Multiphase flow Bubble Flow Slug Flow Annular Transition Mist Bottomhole Pressure Tubing ID Source: Purdue University http://bit.ly/1OxEjm3 SRS is sized for longevity and should not require re-sizing or…
HEAL SystemTM Risk Based Design Production Plus Energy Services Inc. 2016 16
HEAL System Risk Management Lessons learned over the past 3 years Three major categories of risk and cost reduction made since initial system was standardized / patents filed and from extensive long term system experience: 1.…
HEAL Rod Pump System Design Attributes: Debris blocker not sand screen (frac balls, ESP bands, composite packer mill out debris, etc) HEAL System anchored at Separator or at HEAL Seal 13 HEAL Safe-Disconnect Tool offer solids risk…
HEAL Safe-Disconnect On/Off Tool Design Attributes: Inverted on/off tool (overshot on bottom connected to HEAL Seal) Overshot re-entry guides adjustable for casing size Auto-J slots are on slickjoint mandrel; redundant seals on…
HEAL SystemTM Developments 1. HEAL ESP System 2. HEAL Slickline System Production Plus Energy Services Inc. 2016 20
ESP Challenges in Horizontal Wells ESP premature failures are caused by: 1) Slug Flows Severe slug flow releases around bend section cause ESP cycling and frequent shut downs Transports high concentrations of solids to ESP 2)…
HEAL ESP System: Two Risk Based Configurations Low Critical Liquid Lifting Risk High Critical Liquid Lifting Risk Features Features HEAL System is below ESP ESP is integral to HEAL Vortex Separator ESP is shrouded to allow ESP…
HEAL Slickline System: Offset Well Frac Hit Protection Rod Pump Frac Hit Protection Well is on production with rod pump and HEAL When an offset well is fracced there is a risk of a frac Slickline System communicating (frac hit) with…
HEAL Slickline System: Extend Natural Flow and RP Transition Frac Flowback and Natural Flow Rod Pump Post frac HEAL Slickline System is installed (snubbed Well is no longer capable of natural flow and can in or after well dies flowing…
Controlling Frac Flowbacks Maximum pressure to maintain stability of proppant pack Maximum flow rate (velocity for sand transport) In the example below, rates were above the level of proppant pack stability. Source: Schlumberger.…
HEAL Slickline System: NF to Plunger Lift to RP Natural Flow Plunger Lift Rod Pump Retrieve Flow Through Prong; If required, can transition to rod pump HEAL Slickline Separator Flow bumper spring, HEAL Separator without pulling…
HEAL Slickline System: Gas Lift and Transition to RP Natural Flow Gas Lift Rod Pump HEAL Slickline System is installed Transition to gas lifting without Can low cost transition to rod pump below gas lift system pulling tubing without…
Routes to value with the HEAL System Case Histories Reduce Capital Investment Reduce Operating Expenses Improve Production Performance Production Plus Energy Services Inc. 2016 28
Reduce OPEX: Improve reliability and reduce workovers Pre-HEAL: 9 pump changes in 2.25 years costing 600k Post-HEAL: Zero changes in 2.5 years Production Plus Energy Services Inc. 2016 29
Reduce Operating Expense Efficiency Niobrara, DJ Basin Slug flow mitigation solves the root cause of erratic pump fillage and gas interference Mitigating slug flows improves both downhole separation and pump performance…
Reduce OPEX: Enhance Plunger Lift with HEAL System HEAL First commercial install: Rod Permian Basin Wolfcamp System Pump Installed HEAL + continuous flow Installed plunger Proceeding as expected: Consistent plunger arrivals…
Case Study: Improve Production Performance Wolfcamp, Permian Permian Basin Wolfcamp HEAL System Installed formation is challenged by depth, high total fluid rates, high watercuts and severe high GOR gas interference 23 wells…
Case Study: Improve Production Performance Wolfcamp, Permian Basin Gas lift to Rod Pump transition, lower BHP. HEAL System Installed Wolfcamp Formation is challenged by depth, high total fluid rates, high watercuts and severe…
Case Study: Gas Lift to Rod Pump Transition Oklahoma Gas lifting baseline strategy. Major historic rod pumping challenges: deep, high GOR, some areas have very high initial rates and decline rates Increased drawdown objective.…
Summary Full cycle production strategy of consistent and smooth drawdown Preserve frac conductivity Lowest CAPEX and OPEX Mitigating Slug flow from the horizontal adds value Solids control Efficiency as separators and pumps like…
DISCLAIMER This presentation is for use by the HEAL System user (User) only. User has sole responsibility for the use of the HEAL System and any field operations and installation activities in relation thereto and neither Production…
HEAL System: No Moving Parts Three main components: Conventional 1. HEAL Seal Artificial Lift Separated forces flow into SRS gas Fluid level creates large solids sump Separated oil / water / solids 2. Sized Regulating String…
Reduce CAPEX: Minimize drilling and well equipping cost Drilling Cost Reductions: Simplify directional drilling Remove tangents from build section Deeper KOP and higher dogleg severity acceptable in bend section enter your zone of…