HowCentralizedProduc2onFacili2esAreBeing

Effec2velyU2lizedToAdministerOilfieldChemicals

intheBakkenPlayofNorthDakota

ChrisClark,Produc2onEngineeringManager–LibertyResourcesLLC

BryanBugg,SeniorProduc2onEngineer–LibertyResourcesLLC

Outline

•  Acreageposi,on•  Centralizedproduc,onfacility&infrastructurecorridorlayout

•  Hightubularfailurerateswithcentralfacilitywellsrela,vetoindividualwells

•  IDrootcause(s)offailures•  Developmentofachemicalplantoaddressfailures•  Takingadvantageofthefacilitytoadministerchemicalandmonitorresults

2

LibertyIICurrentLandPosi2on

•  ~29,000netacresand

18operatedDSU’s.

•  Corecon2guous

developmentareaof

~12,000grossacresand

10operatedDSU’s.

•  ~95newwellsinthe

coreareaand130wells

totaltodrillwitha

cleanslateforplanning

aninfillprogram.

3

InfrastructureCorridorConcept

4

6.5”16”16”

6” 6”6.5”

25

36

1

12

6

7

18

19

8

17

9

16

21

28

CentralFacility:DrillSite:Exis,ngPad:U,lityCorridor:FutureCorridor:FracPond:

WDW

WDW

WDW

14

23

6.5”ProducedWater16”FracWater6”Freshwater

TrenchOne TrenchTwo

“TheNo.1objec2ontoindustry’spresenceis

alwaystrucks.”GeorgeKing-ApacheCorp.

WallStreetJournal(5thMay2015)

HESS

6”FuelGas16”GasGathering6.5”OilGathering

-  Removestrucksduringdevelopment

drillingandfracopera2ons

-  Removesover200PWtrucksadayat

fulldevelopment

5

DrillSiteWest

(DSW)

DrillSiteEast

(DSE)

DrillSiteCentral

(DSC)

Central

Facility

6”6”6”

Treaters Treaters

Producedoil&waterProducedgasHighpressureALlineFiberOp=c

-  SingleCentralFacility(CF)servicesallwellswithinDSU-  2drillingpadsper1280or3padsper2560acreDSU-  Pad-to-padflowlinesconnectwellstoCF-  Centralizedhydraulicar,ficialli\equipment

-  Centralizedhydraulicli\providesanexcellentwaytodeployproduc,onchemicals

-  Buildaninfrastructurecorridortoconnectcentralfacili,es

CoreDevelopmentConcept–aka“TheLibertyOilFactory”

6

LeonCentralProduc2onFacility–9Wells

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McGregorCentralProduc2onFacility–20Wells

•  Builtfor20wells•  SecondCentralFacility•  Summerbuild•  Broughtonproduc,oninAugust•  Costperwell$1.25Million

-  CementPad$100M/well-  Facility$1,005M/well-  AL$145M/well

CentralFacilityFlowDiagram

8

Gas

Sales

Flare

PowerFluid

Vessel

Ver2cal

Treater

VRT OilTank

VRU

WaterTankCommingled

Oil&Water

Dedicated

Treater

Gas

Scrubber

Dedicated

Treater

WH

WH

Dedicated

Treater

WH

Commingled

Gas

PowerFluid

(OilorWater)

DrillSites

Pad-to-Pad

Flowlines CentralFacility

Gas

Oil

Water4Stagesofsepara2onwithVRU

IndividualWellFlowDiagram

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JetPump–HowDoTheyWork

10

Surfacetriplexpumpu,lizespowerfluidsupply(oilorwater)andpumpsitdownthetubingtoaretrievablejetpump.Thepowerfluidtravelsthroughthejetpumpcrea,ngaVenturieffect,drawingproducedfluidfromthereservoir.Thecombinedproducedandpowerfluidarethenli\edtosurface.

JetPump

hhp://www.youtube.com/watch?feature=player_detailpage&v=IApbQv3T-yk

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HighTubularFailureRatesatCentralFacilityWells

•  Experiencinghighfailureratesintubularsatcentraltankbaherywells•  Holesintubingatmul,pledepths(+/-9200’and+/-3500’•  Connec,onfailures

•  Mul,pleinterpreta,onsoffailuremechanismsfromvendorsandoutsideconsultants•  CO2,Microbial,H2S,O2?Whatistherealrootcause(s)?

•  What’sdifferentfromtheindividualwells?

Iden2fica2onofIssue(s)

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•  What’sdifferentattheCTB’sthanindividualwells?•  Opera,ngonpowerwatervsoil(nowonpoweroil)•  Corrosivegasesfromsomewellscaneffectallwellsthroughthecommingledpowerfluid

•  Vendorissues:•  Notpro-ac,veinprovidingchemicaladministra,onsolu,onswiththe

centralizedhydraulicli\

•  Gatheredfailuresamplesforanalysis•  Sendtomaterialslabforfailureanalysistoclarifyrootcause(s)

–  Standardmetallographicanalysis–  SEM,XRD

•  U,lizepreliminaryfindingsand“mostlikely”thinkingtobegincorrosionchemicalprogram

DevelopmentofChemicalPlan

StartedwithaRACIChart:

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DevelopmentofChemicalPlan

•  ChemicalSelec,onCriteria•  Environment:Pressure,Temperature,pH,Salinity,WaterChemistry,OilChemistry

•  Benchtes,ngchemistries•  Pastdocumenta,onoffailures:Samples,pictures,pumpcards,etc.•  Failureanalysislabs:Differingopinionsoffailuremechanismsfrommul,ple“corrosionexperts”–  CO2,H2S,Microbial,O2???Whohasitcorrect???–  Getverifica,onfromSEM,XRD,Crosssec,onoffailures

•  ChemicalUsage–Howmuchisenoughandhowmuchistoomuch?•  ERprobestomonitorreal,mecorrosionratesto,trate•  Residualsmonitoring•  Datatrending•  Wellcharacteris,cschangingGOR/WOR

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DevelopmentofChemicalPlan

•  Automa,on:•  Integratereal,mefluidlevelmonitoringofchemicals•  Webbasedsurveillanceofchemicalinventories

•  DeadZoneTreatment:•  Ourthoughts:Placetubingtailsintothelateralwith“s,cks”ofsolidchemical

•  Measurestoreducewinterimpact:•  CentralTankBaheriesandInfrastructurecorridor

– Consolida,onofchemicalpumpsandinventories– Pipelinesforallproducedfluids

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TakingAdvantageoftheCentralFacility&HydraulicLig

•  CentralDeliveryPointsofChemicalforMul,pleWells•  DeliverchemistrywithlessCAPEX

•  Hydraulicli\(jetpump,pistonpump)enablescon,nuoustreatmentofwellbores•  Managementofinventoryissimplified

•  Fewerloca,ons,automatedinventory•  Con,nuousmonitoringofKPI’s

•  Measurementand&automa,on:MonitoringandmaintainKPI’s

ChemicalPump

ERProbes

Ques2ons?

17