Perspectives From The Chairman

Environmental Corner . . . . . . . . . . . . .3

Tech Transfer Track . . . . . . . . . .4-6

State-of-the-Art Summary . . . . .8-9

DOE Digest . . . . . . . . . . . . . . .10-11

Solutions From the Field . . . . . . .12

Upcoming PTTC Events . . . . . . . . .15

PTTC is a national not-for-profit informa-tion network formed in 1993 by oil andnatural gas producers. Programs are fund-ed primarily by the US Department ofEnergy’s (DOE) Office of Fossil Energythrough the National PetroleumTechnology Office (NPTO) and StrategicCenter for Natural Gas (SCNG) within theNational Energy Technology Lab (NETL).Other funding comes from state govern-ments, universities, state geological sur-veys, and industry contributions.

In This Issue

P e t r o l e u m T e c h n o l o g y T r a n s f e r C o u n c i l W W W . P T T C . O R G

Vol. 9, No. 2 2nd Quarter 2003

Transferring Technology,Region-To-Region

One emphasis for PTTC is to sharewith independents across the countrythose technologies that are havinggood success in other areas. It is alltoo easy for us to stay with what iscomfortable, with what is common inour part of the country. But for manytechnologies, there is a commonalitythat makes them applicable in manygeographic areas.

PTTC initiatives that stimulateregion-to-region technology transferare: (1) leveraging insights from the"Produced Water Manual" developedwithin the Midcontinent region inPTTC's DOE-supported PUMP pro-ject, (2) coordinating presentationsfrom several regions for majorregional society meeting, and (3)

Cont. on page 2

James Bruning, Bruning Resources,LLC, Fort Smith, Arkansas, took overas PTTC's Chairman in March 2003.His leadership culminates years offaithful service in both the SouthMidcontinent Region and on theNational Board of Directors. With Jimnow embarking on his tenure as leader,PTTC posed some questions to himabout independents and technology.

It is helpful to first understand his back-ground. Prior to forming BruningResources, LLC,Jim served as presi-dent and CEO ofFreedom Energy,Inc., in Fort Smith,AR, from 1992until 2000, when hesold his interest. APh.D. geologistwith degrees fromthe University ofToledo and NewMexico Tech, hestarted in the oiland gas industrywith Arco. Dr.Bruning hasworked in Arkansas since 1977, withprevious positions with TXOProduction Corporation and Sonat. Thegovernor of Arkansas appointed Dr.Bruning to the Interstate Oil and GasCompact Commission (IOGCC). He isactive in several professional societiesand involved in IPAA.

Jim well recognizes the cost and timepressures that independents face, soPTTC will continue emphasizing deliv-ering technology in a manner thatrespects these constraints. To that end,lunch and learn meetings have been oneavenue that PTTC has been exploring.

Providing meetings in the local environ-ment convenient to producers is anotherpart of that equation. Jim believes, asdo most independents, that face-to-facecontact is still of great value.

When asked what the primary barriersto independents applying newer tech-nologies are, Jim's response wasstraightforward - money and time. Themagnitude of the cost is one aspect, butan equally important aspect is that inde-pendents are not completely convinced

that newer tech-nologies work andare cost effective,so they delay.PTTC’s programaddresses that con-fidence issue byproviding reliableinformation.

The time issuemust consider notonly the time spentbecoming aware oftechnology throughPTTC and others,but also the addi-tional significant

time required to truly become knowl-edgeable in the technology. That oftentakes looking through professional soci-ety literature, talking to vendors andsuppliers, getting opinions from inde-pendent experts, etc. Staffing may needto be beefed up. The extra time andmoney for this process can be signifi-cant. Busy independents may forgospending this time and money, but theconsequences can be ill-informed deci-sions that can unjustly discredit newertechnologies or missed opportunitieswhen appropriate technologies are notused.S

2

News In General

Gulf Coast Prospect Expo

July 29-30, 2003Lafayette, Louisiana

www.lioga.com/gcpe.asp

Meeting AlertsSRI Institute

Offshore Marginal Field Development,Prospects and Potential

July 15-16, 2003Houston, Texas

http://www.srinstitute.com/part_iter_site_page.cfm?

iteration_id=542

IPAA Executive Management Program

August 3-8, 2003Boston, Massachusetts

www.ipaa.org/meetings/

AAPG APPEXProspect and Property Expo

September 9-11, 2003Houston, Texas

(see ad on page 7)

Studying the rocks in West Texas to "Locate and Recover Remaining Hydrocarbons" during a May 29 workshop sponsoredby PTTC's Texas Region, the Bureau of Economic Geology, and University Lands West Texas Operations. Material focusedon reservoir characterization issues in Ellenburger and Clear Fork reservoirs and also included the results of recent studiesof unconventional gas resources in the Yates formation.

GasweekNatural Gas Supply and Infrastructure

Needs

September 23-25, 2003Houston, Texas

(see ad on page 5)

Network News

IADC Annual Meeting & Expo

September 24-26, 2003Houston, Texas

www.iadc.org/conferences.htm

posting summaries on regional workshopsonline (www.pttc.org/solutions.htm).

Building on experience gained from multiple"Produced Water" workshops in Oklahomaand Arkansas, six additional workshops havebeen scheduled in the Appalachian, Midwestand Texas regions (see regional websites forinformation). The base manual for theseworkshops is onlineat www.pttc.org/pwm /produced_water .htm. A pro-ducer’s panel ses-sion in theMichigan workshopwill explore localapplication of thosetechnologies.

PTTC recently par-ticipated in the jointmeeting of SPE'sWestern Regionand AAPG's PacificSection, developingan "Independent'sDay" program forthe Long Beachmeeting. Speakersfocused on tech-nologies that were

working, and what insights are generallyapplicable. Key insights are presented withinthe state-of-the-art summary of this issue(pages 8-9). In the coming months, PTTCwill be making a significant contribution tothe joint SPE/AAPG Eastern Section meetingin Pittsburgh (early September) and AAPG'sMidcontinent Section meeting in Tulsa(October).S

Cont. from page 1

Stripper Well ConsortiumFall Tech Transfer Workshops

Casper, Wyoming Oct 2-3Lubbock, Texas Oct TBDDubois, Pennsylvania Nov 18

www.energy.psu.edu/swc/meetings.shtml

SPE - Annual Meeting & Expo

October 5-8 Denver, Colorado

(see ad on page 14)

SEG - Annual Meeting & Expo

October 26-31 Dallas, Texas

www.seg.org

Studying the Rocks

«—Leveraging Insights From Produced Water Manualu—Major Society Meeting Featuring Inter-Regional PresentationsWhite symbols represent future events

3Network News

Environmental Corner

Nitrogen Vs Compressed Air inCoiled Tubing Operations, AnAffordable Safety Practice?

Compressed air is most often used withcoiled tubing operations. Well depth andwhether there are likely to be liquid hydrocar-bons in the well are key factors in determin-ing whether compressed air is safe, or if thereis a likelihood of a downhole explosion/igni-tion. One service company goes so far astelling employees not to use compressed air ifthere will be liquid hydrocarbons in the well.And there's usually no liquid hydrocarbons inshallower low-pressure gas wells. Go deeperthough, below 2,500 ft, and there may wellbe liquid hydrocarbons with rich gas. Oneservice company noted that industry has beenexperiencing more minute downhole "flash-es" in recent years with the introduction ofhigher-pressure air compressors. Risks areincreasing with greater air-gas ratios.Consensus on maximum bottomhole pressurefor safe usage of compressed air is needed.

Cost is most often cited as a major disadvan-tage of using nitrogen. But higher cost is par-tially offset by nitrogen's higher lifting abili-ty, and the higher volumes achievable withnitrogen pumpers, more than double com-pressed air, can be a factor favoring nitrogen.To reduce cost, nitrogen vendors are workingon pumper design. To increase their efficien-cy, non-fired heat recovery systems (fromtruck exhaust and coolant systems) are beingemployed to reduce or eliminate burners.Beyond efficiency gains, pumper units withnon-fired heat recovery systems are moreenvironmentally friendly. In the end, thenitrogen versus compressed air decision mustbalance cost and safety considerations.Philosophically, companies are reacting posi-tively to using more nitrogen at reasonableprices while providing more safety.

Excerpted from article in Drilling Contractor,March/April 2003, p. 4.S

Health, Safety & EnvironmentalPlanning Guidelines for

Underbalanced OperationsThe Health, Safety and TrainingSubcommittee of IADC's (InternationalAssociation of Drilling Contractors)Underbalanced Operations Committee recent-ly completed a draft document of HSEPlanning guidelines. The draft guidelines areintended for use by integrated project teamsinvolved in underbalanced drilling operations.The guidelines, which are applicable bothonshore and offshore, provide informationand guidance on HSE-related activities duringthe planning phase that will have an impact

on safety during the execution stage. Notintended to replace existing company safetypolicies, the guidelines should be consideredas a starting point for developing safety man-agement plans.

Excerpted from an article in DrillingContractor, March/April 2003, p. 24. Thedraft guidelines are available online throughIADC's website (www.iadc.org/committees/underbalanced/Draftdocuments.html).S

Multi-Faceted EnvironmentalWork at RMOTC

DOE's Rocky Mountain Oilfield TestingCenter (RMOTC) in Casper implements pro-jects with a definite environmental flair, inaddition to projects that field test technolo-gies. Four such projects, each outlined intheir recent newsletter (www.rmotc.com/Today/ Newsletter.html), are summarizedbelow.

Regional Carbon Sequestration Partnership.RMOTC is part of a newly formed RockyMountain Regional Consortium of academic,industrial, governmental and non-profit orga-nizations that are investigating the capture,storage and overall reduction of greenhousegases. Potential carbon sinks in the RockyMountain region are both geological and ter-restrial. Potential geological sinks includenearly depleted oil and gas fields, salineaquifers and extensive unmineable coalseams. In the near term, sequestration of CO2in terrestrial ecosystems, such as high altitudepine forests, offers a low-cost means ofreducing net carbon emissions. For moreinformation about the Consortium, contactVicki Stamp, RMOTC (Vicki.Stamp@rmotc.doe.gov).

Wetlands-Treated Produced Water. RMOTC,Chevron Texaco and Clemson University areconducting a three-year project testing con-structed wetlands-treated produced water forbeneficial reuse. Both RMOTC and Clemsonwill construct pilot wetlands to removehydrocarbons and salts from produced water.As water is released from the constructedwetlands, studies will be performed to identi-fy the viability of using treated water in bene-ficial applications. Among other things,growth rates of vegetation in treated waterwill be compared with those using standardirrigation water. Workshops presenting resultsare planned. For more information, contactLorri Jackson, RMOTC (Lorri.Jackson@rmotc.doe.gov).

Ice Cleaning System for O&G FieldOperations. The Ice Cleaning System, whichconverts water into small ice particles that arepressured through a hose-nozzle system to

clean surfaces, is environmentally attractivesince it generates a minimal amount of resid-ual waste. Performance in an oilfield environ-ment was documented in a RMOTC field test(www.rmotc.com/pdfs/IceCleanSystems.pdf). The Coast Guard in Alabama has sincesuccessfully demonstrated the system formaintaining navigational buoys. The demon-stration confirmed that the equipment couldbe carried on board the tender vessel andbuoy maintenance performed at sea. For moreinformation on the various applications of theIce Cleaning System, contact Lorri Jackson,RMOTC (lorri.Jackson@rmotc.doe.gov).

Dust Control in Powder River Basin CBMOperations.As part of a coalbed methaneresearch program at RMOTC, staff membershave identified dust from unpaved roads aspossibly a significant impediment to planneddevelopments in the Powder River Basin.They are working with other technical expertsand county road engineers to develop BestManagement Practices (BMPs) for construct-ing and maintaining unpaved rural roadswithin regulatory limits for airborne particu-lates. For more information about this andother aspects of the CBM program, contactJim States, RMOTC (Jim.States@rmotc.doe.gov).S

Drilling, Well ServicingTraining at San Juan College,

New MexicoThe U.S. Department of Labor (DOL) recent-ly announced an award to San Juan College,Farmington, New Mexico, to support thedevelopment of an energy-based Businessand Industrial Training Center. The $2.17million grant will be used to fund petroleumtechnology training and placement programsto support industry needs in New Mexico andthe adjacent Four Corners area. The programswill provide education, training and job-placement assistance involving non-tradition-al classroom for hands-on training on actualequipment, including a workover rig donatedby Key Energy Services. The programs areexpected to lead to 300 full-time jobs.

Technical training will be provided in indus-trial safety, drilling and well service, gascompression technician skills, plant opera-tions, commercial driving skills and heavyequipment operation. It will also offer short-term fast track job training, one-year certifi-cation programs and employment assistance.This effort is part of the President's compre-hensive plan to ensure that the nation has theenergy - and the energy workers - it needs.

Excerpted from article in Drilling Contractor,March/April 2003, p. 4.S

4Network News

Tech Transfer Track

Servicing ContinuousRod Installations

Coiled rod applications, introduced to themarket some 30 years ago, have been limitedby the fact that two rigs are needed for ser-vicing continuous rods—one to service thewell and another to manipulate the coiled rod.Pro-Rod, a division of C-TECH OilfieldTechnologies, Inc., has addressed this prob-lem with their recently developed X-Celerator® tool.

The X-Celerator® tool is a coiled rod injectorhead with two motors that power gear-driventracks. The tracks in turn drive chains withaluminum inserts that grip the coiled rod. Thetool can be picked up and be ready to workwithin 15 - 20 minutes by any well servicerig. This avoids the back-and-forth rigging upand rigging down that occurs when two rigsare needed for servicing wells with coiledrod. With the service problem addressed,coiled rod may see increased usage. Theadvantages of coiled rod are that it has nocouplings, it reduces tubing wear and itrequires less pumping horsepower.

Excerpted from article in Well Servicing,May/June 2003, p. 34. Manufacturer informa-tion at Pro-Rod's website www.prorod.com.S

35% Cost ReductionWith Cement Pulsation

Shallow gas wells in an area of Alberta andSaskatchewan have historically had problemswith primary cementing jobs, with 57% ofwells developing leaks after the primarycementing job. These vertical wells range indepth from 1,900 to 5,900 ft. Costs for reme-dial cement jobs typically range from$30,000 to $50,000, and can be much higher.Cement pulsation was used in more than 150of these shallow gas wells. Overall, the per-centage of leaking wells with cement pulsa-tion declined from the expected 57% to only21%. Overall cementing costs, primary plusremedial, were reduced by 35%.

Cement pulsation is the application of low-intensity pressure pulses to the annulus after aprimary cement job for the purpose of delay-ing gel strength development. By delayinggel strength development, the hydrostaticpressure is maintained on the formation untilcement has built sufficient strength to preventthe influx of reservoir fluids. Low-pressurepulses, from 8- to 200 psi, are applied to theannulus at 30 to 60 second intervals. Pulsing

continues, usually for 4 to 6 hours, until thecompressible volume (volume of fluidrequired to pressurize the annulus) levels offor the thickening time test indicates thecement has reached desired properties.

Excerpted from article in Gas Tips (Winter2003), which may be viewed online atwww.netl.doe.gov/scng/explore/ref-shelf/gas-tips/gastips.winter%2003.pdf.S

Knowledge Management, WhatHas Industry Learned

In a recent article in Hart's E&P (June 2003issue, p. 55-57), Tina Berger, Obsidian,defines knowledge management as "the set ofprocesses through which employees sharebusiness-critical knowledge across an organi-zation to increase profits and reduce problemsfor the company." Considering industry'sexperience with early processes and theabove definition, he lists 10 critical factorsfor successful knowledge management, pre-sented in abbreviated form below:

1. Begin with a specific business issuerelated to the long-term profitabili-ty of the company

2. Determine in advance how you willmeasure success

3. Begin with an enthusiastic recep-tive group (not necessarily thewhole company)

4. Integrate the change into existingbusiness practices (how will it fit)

5. Use technologies as enablers, notdrivers

6. Designate owners, find championsto keep the process visible andtools up to date

7. Provide communication and train-ing, don't just expect people tojump into it

8. Pilot test with a small group andwork the bugs out

9. Publicize successes10. Provide incentives and awards

Regardless of company size, today's industryoperates on the lean side with regard tostaffing. Employees are frequently asked tojump into areas outside their expertise. Thenthere are the age demographics of the indus-try. Companies don't necessarily need to belarge to have an incentive to implement aknowledge-management process.

Another article in that issue states what mayseem obvious "people only go to people they

trust for information." This is why communi-ties of practice and knowledge brokers havetheir role. The data that groups rely on mustbe equally trusted, so meta-data (that is, dataabout the data in any database) files must becomprehensive and current. It must also berecognized that knowledge goes beyond dataand facts to include experience, values, con-text, insight and intuition.

Excerpted from articles in Hart's E&P, June2003.S

Field Test PerformancePositive for PSI’s InnovativeSubmersible Pump Design

Pumping Solutions, Inc.'s (PSI) innovativesubmersible pump, which uses a positive dis-placement hydraulic pumping mechanism,performed well in field tests at the RockyMountain Oilfield Testing Center (RMOTC).Data from the RMOTC field tests indicatethat savings, compared to conventional oil-field lift systems, of as much as 50% in oper-ating costs are possible.

The pump uses a one horsepower, three-phase, submersible electric motor thatrequires only an average of one kilowatt ofpower. The pump is fundamentally differentfrom pumps currently on the market becauseit is located completely within the wellbore,and the casing is sealed, eliminating noise,emissions, and hazardous conditions. Thepump, with its self-contained electric motor,is similar to an electric submersible centrifu-gal pump in appearance and installation char-acteristics. The pump design can handle vol-umes up to 400 bbl/day and depths up to12,500 ft.

Some 20 tests conducted at RMOTC to dateunder a variety of conditions have generatedperformance data on power consumption, runtime, and production volumes lifted. Pumpswere installed on conventional tubing intoShannon formation wells. A few tests usedthe cable suspension system developed byPSI. The problems addressed and solved dur-ing the RMOTC tests were splicing tech-niques, diaphragm materials issues, corrosion,and general operating procedures. TheRMOTC tests demonstrated that the pumpscan be run safely on 2 3/8" tubing and oncable suspension without damaging equip-ment.

PSI has completed development of a 3 ¾" 30-300 bfpd, up to 4,500 ft. lift unit and is devel-

PTTC recognizes that products and services featured in “Tech Transfer Track” may not be unique and welcomes information about other upstreamtechnologies. PTTC does not endorse or recommend any of the products or services mentioned in this publication, even though reasonable steps aretaken to ensure the reliability of information sources.

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Tech Transfer Track

oping variations for other applications,including a 2" pump, a 4" deep set pump, anda 4.5" high flow version. PSI continues toreceive support from DOE, industry, and theStripper Well Consortium for future develop-ment.

Excerpted from information provided byRocky Mountain Oilfield Testing Center. Formore detail, contact Joe Rochelle, RMOTC(phone 307-261-5000 X5074 or e-mailjoe.rochelle@rmotc.com) or Leland Traylor,PSI, phone 505-933-4653.S

E&P Toolbox Offers Web AccessTo Industry Software

The Society of Petroleum Engineers (SPE)has partnered with Petris Technology, Inc. toprovide online access to industry softwarethrough the E&P Toolbox. Customers can"rent" a software application for a time periodmeeting their requirements. This serviceallows users to access software that previous-ly may have been out of reach financially,and they don't have to hassle with keepingsoftware that is used only intermittentlyupdated. For those busy exploring for andproducing oil and gas, the software mainte-nance aspect can be important.

The Toolbox contains more than 25 softwarepackages in several areas, including amongothers: Reservoir Engineering andSimulation; Drilling Engineering; andCompletion and Production Engineering.

Prices vary according to the package and arelisted on the website. SPE members receivediscounts on administrative costs. Visit SPE'swebsite (www.spe.org/EandPtoolbox/) formore information.S

Online Handbook UpdatesDrilling Completion Data

An updated field handbook for cementing,stimulation and coiled tubing is availableonline through Schlumberger OilfieldServices. It features six sections: (1) GeneralInformation, (2) Coiled Tubing and PipeData, (3) Volume Data, (4) Fracturing-Related Data, (5) Cementing-Related Data,and (6) Acid, Oil and Brine Data.

There are calculators to help with multiplewell operations such as drilling andworkover, cementing, fracturing and generalunit conversions. There is also a library ofpredefined wellbore diagrams, with copy andpaste operations for exporting handbook datato software applications.

The i-handbook is available online atwww.slb.com/oilfield/ index.cfm?id=id1384022 at no cost.S

Reducing Downhole Failures,Practices That Work

Pioneer Natural Resources USA Inc.(Pioneer) has openly shared their "best prac-tices" for reducing downhole failures thathave evolved through a multi-year focusedeffort in West Texas. Highlights of that effortbear repeating since, in some 3,200+ wells inthe Spraberry trend, overall well failures havebeen reduced to a third of pre-program levels,or from about 1.05 failures/well/yr to about0.35 failures/well/yr.

The tubing testing program evolved fromhydrostatic testing on location to off-locationelectronic inspection to wellhead scanning.

With hydrostatic testing, 10 joints above andbelow the leak were replaced with new oryellow band (0-15% wall loss) tubing. Foroffsite electronic inspection, the bottom 100joints of tubing were inspected and anythingwith greater than 30% wall loss (green or redband) was replaced. Note that initial elec-tronic inspections replaced 40-50% of thetubing, while just a few joints needed to bereplaced when strings were electronicallyinspected again at later dates. The bottom 100joints are now scanned onsite.

There was a similar evolution in rod prac-tices. Initially, rods from numerous manufac-turers that were equivalent to Norris-54grade-D rods were used. That has nowevolved to using rods "from a single manu-facturer equivalent to Norris-78 grade-Drods." Rod string redesign included removingthe bottom 450 feet of 7/8-in guided rods,controlling downstroke buckling by installingsinkerbars and balancing stress loading at thetop of each rod taper. Sinkerbars had a verypositive effect on tubing failure rates. Pump-off controllers, with or without sinkerbars,were also very efficient at lowering tubingfailure rates.

Pioneer uses some internally plastic-coated(IPC) tubing. Their conclusion was that itsbest use is for problem wells. There are anumber of wells evaluating poly-lined tubing.It has performed well and is considered agood alternative, although some reduction ininner tubing diameter is experienced.

These and many other successful practicesare helping Pioneer reduce electrical con-sumption, reduce failures and realize a slightproduction increase. Keys to making it allwork are commitment, an accomplished well

INCORPORATING GAS SUPPLY EXPO

Meeting the Challenges of Natural Gas Supply & Infrastructure NeedsFrom Wellhead to Burner-tip

September 23-25, 2003Houston, Texas

George R. Brown Convention Centerwww.gassupplyexpo.com

6Network News

Tech Transfer Track

analysis department, a team environmentincluding vendors where all have appropriateresponsibility and accountability, training andmanagement commitment.

Excerpted from article in American Oil &Gas Reporter, June issue, p. 92-97.S

Moisture Recovery Unit ForOnline Cleaning of Gas TurbinesOperators of gas turbines know that dirty tur-bine blades can account for two thirds of effi-ciency losses in gas turbines, so blade clean-ing is a standard practice. But automatedonline cleaning through water washing hasoften not been successful because of prob-lems experienced with delivery and controlsystems and maintaining water of sufficientquality (measured by conductivity). Mostmanufacturers recommend water conductivityof 3.3, which typical water systems provide.

The innovative Moisture Recovery Unit(MRU) developed by International WaterMakers, Inc. captures water from the atmos-phere. Suspended salts, dust and othergaseous contaminants are removed from airbefore capturing water from it. Capturedwater is passed through five stages of filtra-tion. Water purity is such that conductivity isbelow 1.0, significantly above minimumspecifications.

When this pure water is combined with aneffective microprocessor-based control sys-tem in a packaged unit that allows automatedonline washing every 1 to 2 days, turbineblades can be kept clean and efficienciesmaintained at 99%. Automated online clean-ing reduces manual shutdowns, potentially toannual cleaning or longer. One large oil pro-ducer using the MRU system is sufficientlysatisfied to term it a "best practice" for theironshore and offshore gas turbine cleaningapplications.

Excerpted from article in Go Gulf magazine,March/April 2003, p. 46-47. For more infor-mation, contact Don Milliman, phone 800-450-3531, e-mail iwm36@yahoo.com.S

Deepwater Drilling:Where are We Headed?

On June 17-18 in Galveston, about 100 par-ticipants addressed this issue at a meetingsponsored by the Drilling EngineeringAssociation (DEA). There was a notableincrease in international participants com-pared to 2002. The two-day workshopfocused on the separate systems areas ofoperations: tubulars, rigs and vessels on Day1, followed by annular flow and wellbore sta-

bility on Day 2. Both days included breakoutsessions where discussion dealt with closingtechnological gaps. Participants find thebreakout sessions most rewarding due to thecandid discussion about how industry canwork together to advance technologies. Thisworkshop is an example of how resources arebeing leveraged since DEA became affiliatedwith the International Association of DrillingContractors (IADC) last year.

Participants expressed concern about identi-fying barriers to technology commercializa-tion. Several early Joint Industry Projects(JIP) conducted within DEA proved that cer-tain technologies worked, but there hasn'tbeen broad acceptance. An example of thismight be dual gradient drilling—although

proven by field testing, alternative solutionsmay delay investment in this solution.

Is it market issues? Technology push versusindustry pull? Investment issues? Lack ofawareness/knowledge on the producer's part?The challenge is not just in drilling.Expanded tubulars, which are proving to havemany applications onshore as well as off-shore, would not have happened without thesteadfast commitment of one major operatorand one service company working jointly.Technology commercialization is a changingpursuit today.

For more information on the DEA and IADC,visit their websites at www.dea.main.com andwww.iadc.org.S

Alternative Lift System for Stripper Wells, Selcon Co-LiftSelcon Co-Lift, an alternative lift system that circulates an oleophilic (oil-attracting) bandthrough the oil zone and back to the surface where the oil is squeezed out, targets low volumestripper wells producing minimal gas. It is designed for wells with static fluid level less than3,000 fit. Minimum casing ID is 4 inches. The system is easily moved, so one unit can sequen-tially service several wells, giving oil time to flow into wellbores as other wells are serviced.Noise is minimal and low profile versions are available, further making the unit attractive.

When the circulating band is squeezed, oil drains into a collecting tray and out through a sidepipe to a collecting tank. Since the band is oleophilic, water is not lifted, making operating costsvery low. Band circulation speed can be controlled to optimize production. Field productiontests have shown excellent results with heavy oil, but the system works for any gravity oil. Unitshave been operating in Argentina for several months, plus units are now under field test in theLuling, Texas area.

The system is available for sale, lease or production sharing agreements. For more informationcontact, sales@selconcolift.com or call 713-628-0536.S

Photo courtesy of David Cothran

7Network News

8Network News

State-of-the-Art Summary

Network News

Affordable, Effective Technologies Being Applied by Independentsby Lance ColeTwo PTTC-developed sessions titled "Independent's Day" were presented at LA Basin 2003, a joint meeting of SPE’s WesternRegion and AAPG’s Pacific Section in Long Beach, California on May 22nd. They presented examples of technology applicationsthat are working across the country to encourage participants to learn from experience across the U.S.

Dr. Iraj Ershaghi, PTTC's West Coast Region Director, issued a challenge to indepen-dents to become familiar with and apply "smart well" technologies.

Major operators in large fields have employed smart well systems, and in doing so, theyhave reduced costs and improved recovery. Technology improvements are bringing the cost and complexity down. The goal is tochange from episodic or reactive (after the fact) management to continual, real time, proactive management. This means monitoringparameters soon enough and frequently enough that early warning signs are seen so that changes can be made that prevent failures.

Mark Reedy, Global Energy Partners, presented key insights from a recent study about reducing power consumption in California'sold pumping oil wells. The study found that nearly 50% of the wells could benefit from optimization. For change to occur, old mind-sets about continuing to operate "as is" versus investing for efficiency must be changed. Opportunities for power cost reduction fallinto electrical or mechanical categories.

Key steps include examining motor efficiency, installing pump-off controllers, combat-ing gas interference, monitoring performance and reducing water production. InCalifornia's case, this study led to a rebate program that reimburses operators for someof the investment required to become more energy efficient.

Bob Kiker, PTTC Permian Basin, described how operators there are changing theirwellbore management programs to reduce failures, by as much as a factor of 10.Supported by several case studies, operators have found that structured programs requiring all involved (operators and appropriatevendors) to work closely in teams with defined accountability can have dramatic results. Open sharing of preferred practices or"what's working" is quite common in the Permian Basin, which only aids these structured programs.

Modern reservoir simulation technology is user-friendly, PC-based, powerful (quick runtimes) and robust (can handle complex problems). This enables companies to get resultsquickly, resulting in more reservoirs being modeled and simulation results being used toaid in near real time decisions.

Jim Erdle, Computer Modelling Group, made the point that for even majors, the histori-cal practice has been to only perform reservoir simulation in "core" assets. But thatpractice is changing. He noted how one engineer with a major had, in just one year,simulated 25% of the profit center's reservoirs. Over a two-year period, an estimated 7million BOE of reserves were added. In another example, he noted how simulation helped an independent make a timely decisionabout the level of steam injection (cut back or discontinue completely) during California's energy crisis in the winter of 2000-2001.A proven simulation model was on hand, so the operator's consultant could quickly perform "what if" scenarios. The operator cutback steam injection, saving $6.7 million within just six months, and changes were made with the confidence that long-term adverseimpacts had been minimized.

Old plays can have new life with new technologies. Rodney Reynolds, PTTC's NorthMidcontinent Region Director, described how larger volume gel polymer treatmentsusing MARCITsm technology and GasGunsm solid propellant stimulation treatments areincreasing production in Kansas's very mature Arbuckle producing areas.

Reynolds noted that, since early 2001, more than 150 production wells had receivedlarge volume gel polymer treatments. Similarly, more than 50 operators had stimulated nearly 150 separate wells with GasGunsm

treatments with about one-third of those being in the Arbuckle. Overall results with both technologies have been very positive. PTTCstaff is working to further document case studies and periodic workshops keep producers aware of current activity and results.

Smart Well Systems

Changing The Mindset To"Pay or Invest Now" fromCurrent Mindset of "Pay MeMuch More Later"

Reservoir Simulation—Faster, easier, lower cost—Beyond "core" assets —Real time for drilling and

operational decisions

New Life In a Mature PlayWith New Technologies,Kansas's Arbuckle

9Network News

State-of-the-Art Summary

New plays, like the Trenton-Black River in Appalachia, thrive on new information anddata. Doug Patchen, PTTC's Appalachian Region Director, has organized severalworkshops, drawing more than 600 attendees. Free flow of information and interplayamong participants has favorably influenced the evolution of exploration, drilling andcompletion concepts. There is consensus on future R&D and technology needs and amultidisciplinary study involving several regional organizations and multiple industrypartners has been proposed to DOE.

DOE's oil and gas R&D program through the National Energy Technology Laboratoryoften plays a role in development and demonstration of technology as they would ifthe above Trenton-Black River proposal materializes. Providing evidence of theimpact of DOE support, Gary Walker from NETL's National Petroleum Technology Office in Tulsa shared case study examplesfrom recent programs, primarily the Class program. As a point of interest, DOE was also involved in one way or another in theimmediately following examples about through-casing resistivity logging (early R&D) and horizontal drilling in Michigan (keydemonstration well).

Through-casing resistivity logging took a long time to develop, but once commercialized by Schlumberger with its Cased HoleFormation Resistivity (CHFR) log, usage has increased rapidly in California (more than 250 CHFR jobs). In the California geolog-ical environment with alternating zones of oil and water or zones where current oil saturations might be different than original,having current resistivity data is critical. In his presentation, Bill Heiam with Schlumberger also discussed other newer technolo-gies that were working in the California environment.

Bill Harrison and Robb Gillespie, representing theMichigan satellite of PTTC's Midwest Region, presenteda timeline of Michigan horizontal activity. From the 1sthorizontal well in 1982 through 1994, only 66 horizontalwells were drilled. Beginning in 1995 and at least par-tially fueled by a DOE-supported demonstration project,activity increased significantly and the reservoirtargets/applications expanded. Activity, although fluctu-ating, has remained high and early 2003 data indicatethat current levels are remaining very strong.

50% of Michigan horizontals have been for redevelop-ment in known oil and gas fields. Exploration and gasstorage count for another 20% each. The Niagaran Reefis by far the most common target, representing 59% ofhorizontal wells. Other prominent reservoirs include theAntrim Shale and Michigan Stray Sandstone. Follow-upconversations with those attending PTTC horizontal drilling workshops (2001, 2002, 2003) indicate the presented technologyinsights and data resources of the Michigan Basin Core Research Laboratory have helped maintain the strong momentum.

Sada Joshi, Joshi Technologies, Inc., summarized overall experience with horizontal wells in the U.S. (SPE 82621). ThroughDecember 2002, there were about 17,300 horizontals with 43% of those being in the Austin Chalk, followed by the Red River for-mation in North Dakota. Overall, he outlined nine application environments. The majority of U.S. wells are in carbonate reservoirs,contrasted with international experience where use in clastic reservoirs is most common. His assessment is that the current com-mercial success rate for U.S. horizontals is 65%, although he did note that success rate generally improves as more wells aredrilled in a given formation in a given area. Horizontal drilling costs might be 1.5 to 2.5 times higher than for vertical wells, butfinding costs for many horizontal projects are 25% to 50% below costs of buying proved reserves. With higher productivity, oper-ating costs on a $/bbl basis for horizontals can be half or less of that experienced by vertical wells.S

Acknowledgement: PTTC acknowledges and greatly appreciates the support of the "Independent's Day" presenters. Presentations of the after-noon speakers representing different PTTC regions can be viewed online (www.westcoastpttc.org/presentations/02-03/052203/afternoonindex.htm)

Timely Tech Transfer FeedsNew Play — Free Flow OfInformation And InteractionAmong Participants InfluencesEvolution of Exploration,Drilling & CompletionConcepts

10Network News

DOE Digest

DOE Selects Six New“Independents” Projects

DOE's "Technology Development withIndependents" program works to assist smallindependents in testing higher-risk technolo-gies. Since inception in 1995, 57 projectshave been initiated. In this latest round of sixawards (www.netl.doe.gov/publications/press/2003/tl_independents051303.html),DOE is providing $580K of funding with par-ticipants providing an additional $728K offunding. Those winning awards and the fieldlocations are in several states.

Arnell Oil Company (CO) will demonstratealkaline-surfactant-polymer (ASP) chemicalflooding in the Poison Spider field in NatronaCounty, Wyoming. This technology demon-stration will expand chemical flooding applic-ability to higher viscosity reservoirs.

Bass Enterprises Production Company(TX) in coordination with the Bureau ofEconomic Geology at The University ofTexas at Austin and Trend Technology,Midland, Texas will demonstrate how inde-pendent oil producers can acquire and ana-lyze advanced imaging data from small seis-mic test patches embedded in large-scale seis-mic surveys.

Grand Mesa Operating Company (KS), incollaboration with TIORCO, Inc.,Englewood, Colorado and the University ofKansas, Lawrence, Kansas, will demonstratethe feasibility of polymer gel technology toincrease the recoverable reserves fromMississippian reservoirs in Kansas. If suc-cessful, the use of polymer gels will reducewater production, reduce well operating costs,and increase oil production throughout theregion.

Peden Energy (TX) will demonstrate thatmicro-turbines are more efficient and lesscostly to operate than traditional internalcombustion engines/generators. Additionally,Peden Energy will install variable frequencydrives (VFD) with computerized pump-offcontrollers on two pump jacks. The VFDresponds to the down hole torque demand,adjusting and varying the pumping speed ofthe well. This pump-control ability has sever-al benefits, including increasing oil produc-tion by ten percent and reducing capitalexpenses.

TENECO Energy LLC (CO) will useregenerating biochemicals (e.g., microbes andorganic surfactants) to reverse formationdamage, restore permeability and improveproduction in the East Texas field. Successfulapplication of biochemicals should removewell bore deposits and improve production.Partners include MICRO-TES Inc. and OilPatch Pipe and Supply.

Terra Exploration and ProductionCompany (CA) will run newly-developedcased-hole well logs in a selected deep wellin the Santa Fe Springs oil field in LosAngeles to identify bypassed oil. It is sus-pected that waterflooding of the more perme-able sands has bypassed lower permeabilityyet oil-saturated sand intervals. Potentiallyproductive zones will be identified, and near-by wells will be re-completed to increase recov-ery.S

Stripper Well ConsortiumFunds 13 Projects

Soon after an early May meeting, the StripperWell Consortium (SWC) announced the 13projects that will receive funding during2003. SWC base funding of $1.1 millioncomes from two funding sources (DOE'sNational Energy Technology Laboratory andthe New York State Energy Research andDevelopment Authority). Participants alsoprovide cost share. SWC focuses on thedevelopment, demonstration, and deploymentof new technologies needed to improve theproduction performance of natural gas andpetroleum stripper wells. Projects are selectedby an Executive Council elected from amongConsortium members. Sample projects fromamong the 13 are listed below.

Real-Time, Propellant Activation DuringDownhole-Mixed Fracture StimulationTreatments, Realtime Zone, Inc. This pro-ject will develop and field test combining insitu solid propellant stimulation with down-hole-mixed hydraulic fracturing. In the latterstages of a downhole-mixed hydraulic frac-turing treatment, solid propellants will besafely pumped down the casing for later-staged admixture with oxidizers to generatean energy release in the near wellbore andformation fractures. The process may useencapsulated or otherwise time-delayedchemical reactions to facilitate placement ofthe activated propellant further into the reser-voir formation prior to reaction. Concept is tofurther extend the created hydraulic fracture,plus develop secondary fractures. The processwill be tested in a Permian Basin well.

Low Cost, Downhole, WirelessCommunications-Based Pressure &Temperature Gauge, Tubel Technologies.Leveraging knowledge gained through devel-oping high-end products, Tubel will developa low cost, downhole, wireless communica-tions-based gauge that transmits acousticsdata (of pressure and temperature) in realtime through the production string. The newgauge can be deployed in production or injec-tion wells. Battery pack of the downhole unitis expected to provide an operational life inexcess of five years.

Variable Capacity, Positive Displacement,Spherical Compressor/Pump, W&WVacuum & Compressors, Inc. The sphericalgeometry of the patented Weatherbie com-pressor/pump provides variable capacitycapability at high efficiency. The pump'slarge internal volume to surface area ratioenables it to, with each 360-degree rotation,displace nearly all of its internal volume. Aunique volume control feature allows quickreadjustment, making its use convenientwhere fluctuations in produced volume arecommon. The project will fund developmentof two, 4-in units that will be tested in theTexas A&M Turbomachinery Laboratory.Operating efficiency is expected to be 50%better than comparable pump/compressorinstallations.

SWC conducts technology transfer meetingseach fall to highlight results from ongoingprojects. For 2003, workshops are planned inWyoming, Pennsylvania and Texas. Watchthe SWC website for information on theseupcoming workshops. Information on allfunded projects is available on SWC's website(www.energy.psu.edu/swc/funded.shtml).S

IntellipipeTM DrillingSystem Performs Well in

RMOTC Field TestIn the 4th Qtr 2002 issue of Network News,PTTC briefly mentioned the IntellipipeTM

drilling system (www.pttc.org/news/4qtr2002/v8n4nn9.htm#IntelliPipe) developedby Grant Prideco and Novatek Engineeringwith some DOE funding support. The systemcan transmit real-time downhole data at onemillion bits per second, a dramatic improve-ment compared to conventional mud pulsetelemetry. Key to the new system is a uniquenon-contacting coupler embedded in the drillpipe connections. The coupler permits data tobe sent across the connection and on througha high-speed cable attached to the inner pipewall.

The first phase of a field test at the RockyMountain Oilfield Testing Center (RMOTC)focused on the communication system alongthe entire length of the drill pipe, in a casedhole environment, down to 3,054 ft.Electrical signals were transmitted down thedrill pipe and returned by repeaters placedstrategically along the length of the drillstring. This procedure allowed "fine tuning"of the system to optimize placement of therepeaters in the drill string. In a second phase,cement plugs were set in openhole, then thesystem was used to drill through the plugs.During the week-long field test, the drillingsystem operated according to established testcriteria and demonstrated that no special han-dling or make-up procedures were required.

11Network News

DOE Digest

Visit Grant Prideco's IntellipipeTM website(www.intellipipe.com/) for more informationabout the drilling system, or for further infor-mation about the RMOTC field test, contactRalph Schulte, RMOTC (Ralph.Schulte@rmotc.doe.gov).S

Slurry Injection for ManagingDrilling Wastes

A May 2003 report by Argonne NationalLaboratory presents an "Evaluation of SlurryInjection Technology for Management ofDrilling Wastes." Slurry injection involvesprocessing solid materials to particles of suit-able size and blending them with a fluid tomake a slurry that is injected at pressureshigh enough to continuously fracture the for-mation receiving the slurry. Injection can becontinuous or as a series of smaller-volumeintermittent cycles. The report contains adatabase with full or partial information on334 injection jobs from around the world(Alaska - 129, Gulf of Mexico - 66).

As the report notes, not all slurry injectionjobs have been trouble-free but the reasonsbehind problems are understood and can beovercome with good design. Results fromreviewing many projects reinforce that attrac-tiveness of slurry injection must be deter-mined on a site-specific basis. There are threecritical factors that affect cost effectiveness—volume of material to be disposed, the regula-tory climate, and the availability of low-costonshore disposal infrastructure. In many loca-tions, slurry injection compares favorablywith conventional drilling waste managementpractices.

To access the full report, visit DOE's NPTOwebsite (www.npto.doe.gov/publications/pdfs/SlurryInjRep.pdf).S

DOE Selects Three“Deep Trek” Projects

DOE's "Deep Trek" program targets develop-ing "smart" yet economical systems toughenough to withstand the extreme conditionsof deep reservoirs. Three recently announcedR&D awards follow five earlier awardsannounced in September 2002 (see prior Techline www.fe.doe.gov/techline/tl_deep-trek_2002sel.shtml). DOE is contributingslightly more than $11 million toward thethree-year projects. Winning organizationswill provide just over $5.5 million.

Honeywell International will develop asuite of high temperature electronic compo-nents that can be used for instrumentation indeep gas drilling systems where componentscan be exposed to temperatures from 250degrees F to 437 degrees F for prolonged

periods. Honeywell, which will conduct theproject through its Solid State ElectronicsCenter for Excellence, plans to combine andupgrade some of its existing electronics tech-nology. It will form a Joint IndustryParticipation group to develop system specifi-cations prior to product development.Potential partners in this group includeSchlumberger Technology Corporation,Diamond Research, Micropac Industries, andE-Spectrum, as well as other petroleumindustry service companies and operators.Total project cost is $8.6 million with DOEproviding $6.0 million.

Schlumberger Technology Corporationplans to design and commercialize a high-temperature (approaching 400 degrees F),high-pressure, measurement-while-drillingtool that provides direction, inclination, tool-face and gamma ray measurements continu-ously in real time. The tool will be fullyretrievable while the drillstring is downhole,eliminating the need to remove the entiredrillstring assembly to retrieve directionalequipment. Deep well drilling economics willbe improved with extended tool life, plusshould it need to be replaced, less time willbe lost since the tool will be fully retrievablewithout pulling the drillstring. Total projectcost: $5.9 million with DOE providing $3.8million.

Cementing Solutions, Inc. (WattersEngineering) proposes a combined effortwith Argonne National Laboratory and otherindustry partners to develop "supercement"with superior pipe and formation-bondingcapabilities at depths exceeding 15,000 ft.Industry authorities estimate that repairingfailed cement jobs in deep, hot wells costsindustry more than $100 million each year.Many failures occur because the Portlandcement systems used today cannot stand up tothe conditions in deep reservoirs. The team'swork will begin with laboratory analysis ofvarious Portland and non-Portland materialsand mixtures to identify compositions thatprovide the optimum mechanical propertiesfor extreme conditions, followed by upscaletesting to determine performance in largerquantities. Finally, the supercement will betested in three to six field applications in hot,deep wells. Total project cost is $2.5 millionwith DOE providing $1.5 million.

For further information, see DOE's Tech Line(www.fe.doe.gov/techline/tl_deeptrek_2003sel.shtml).S

DOE MicroholeInitiative Proceeding

DOE's National Energy TechnologyLaboratory's (NETL) Microhole Technologiesinitiative is being developed based on suc-

cesses from Los Alamos National Lab'sMicrodrilling feasibility study, a part ofDOE's National Lab Partnership Program.Initial feasibility and proof of concept studieshave indicated that wellbore diameters of 2-3/8 to 1-3/4 inches (microholes) using coiledtubing drill rigs are possible. Field tests havedemonstrated that small diameter holes canbe drilled to depths of 700 feet using a small-footprint coiled tubing unit. Positive resultsfrom these field demonstrations, along withmodelling and laboratory tests, indicate thatdrilling microholes to depths of 5,000 feetcan be achieved with relatively modest modi-fication of existing drilling equipment andcoiled tubing technology. Two primary dri-vers for this technology focus are radicallyreduced cost of subsurface access, both forshallow reservoir development and forexpanded use of borehole seismic for reducedexploration risk, and reduced cost for reser-voir monitoring.

To assist in the planning process, Spears &Associates, Inc. recently prepared an initialmarket evaluation (www.npto.doe.gov/news/micholSpearsMarEvalRep.PDF) document-ing the state of the coiled tubing market andtrends in drilling costs in the U.S. Producers,service companies and equipment suppliersmet in Albuquerque in late April to provideadditional industry input as a roadmap fortechnology development is prepared. Topicsdiscussed at the meeting included: potentialuses and benefits, needed capabilities,enabling technologies, technological barriers,target drilling and completion costs, and bar-riers to market penetration.

Workshop participants identified four micro-hole technology application areas that havepotential considering capabilities of current ornear term technology and industry interest: 1)Shallow development wells; 2) Reservoirdata monitoring holes; 3) Shallow re-entrywells (deepening and multi-laterals); and, 4)Deep exploration hole re-entry for deeper tar-get investigation. The development of tech-nologies for improved capability/reliabilityfor drillout of 4-1/2" casing would be includ-ed in most of these Microhole Program focusareas.

Microdrilling technology along with micro-instrumentation could provide potentiallylow-cost wells for exploration, long-termreservoir monitoring, and production. Costsand drilling fluid/cuttings volumes could beexpected to be as much as one-fifth currentpractices, providing significant economic andenvironmental incentives.

For further information, contact Roy Long,NETL, product manager, petroleum explo-ration and production, phone 918-699-2017,email Roy.Long@npto.doe.gov).S

12Network News

Solutions From The Field

Seismic Imaging of Structural,Stratigraphic and Diagenetic Plays March 6, 2003 (Morgantown, WV)sponsored by PTTC’s Appalachian Region

BOTTOM LINEThe focus of the workshop was on the use ofseismic data for exploration and developmentof hydrocarbon resources. A survey of vari-ous techniques currently used for acquiring,processing and interpreting seismic dataincluded a review of standard techniques andan update on new technologies.

PROBLEM ADDRESSEDSeismic processing and interpretation isextensively used by the majors and largerindependents, but is often considered beyondthe means of smaller independents. Therecent advent of a number of low-cost seis-mic software programs to increase the speedand efficiency of processing, and assist theoperator to interpret the data is a bonus to theindependents operating in the Appalachianregion. The workshop focused on learninghow to plan and understand seismic data, andwhat software applications are available andhow to use them.S

Horizontal Drilling, Real MichiganField Experience (Midwest)

March 20, 2003 (Mount Pleasant, MI)co-sponsored by PTTC’s Midwest Region andMichigan Satellite

BOTTOM LINEFrom majors through very small indepen-dents, producers are drilling profitable hori-zontal wells/laterals/dual laterals in Michiganin application environments ranging fromNiagaran reefs, carbonates, and StraySandstones to gas storage fields. Economicresults indicate that wells don't necessarilyhave to be big wells to be profitable.Numerous case studies presented insightsabout locating horizontals, drilling, loggingand production operations.

PROBLEM ADDRESSEDIndependents in particular rely on field casestudies as they make decisions about newtechnologies. Horizontal drilling is no longera new technology, but there are still manyapplications where it could be used if produc-ers had greater confidence in their ability toprofitably execute horizontals. This workshopfocused on case studies of horizontals beingprofitably applied in several different envi-ronments in Michigan.S

Electronic Resources for NM Oiland Gas Data (Southwest)

Spring 2003 (New Mexico, Midland, TX)by PTTC’s Southwest Region

BOTTOM LINEGO-TECH, the Gas and Oil TechnologyExchange and Communication Highway, wasfounded in 1994 as a free access website toNew Mexico oil and gas production informa-tion. The User Guide for ElectronicResources and the accompanying CD ROMdatabase provides valuable information toNew Mexico independent operators onresources and data and how to access them.

PROBLEM ADDRESSEDThe state of New Mexico recognized a needto help producers who could not afford highpriced software and data subscriptions to con-duct oil and gas operations in New Mexico.Creation of GO-TECH and continued fundingto respond to the requirements of NewMexico producers for fast, efficient, accurateand low-cost data and software is funded bythe State of New Mexico and grants from theU. S. Department of Energy and thePetroleum Technology Transfer Council(PTTC).S

Solutions from the Field: Online Technologies to Solve Problems Faced by Independent ProducersSummaries of regional workshops recently sponsored or co-sponsored by PTTC are added to its national web site regularly. For more complete sum-maries, and for a listing of the hundreds of workshops that PTTC has sponsored since 1995, logon to: www.pttc.org. For more details, contact 1-888-THE-PTTC, e-mail: hq@pttc.org.

Alerts Via E-Mail: Another PTTC Service American Oil and Gas ReporterTech Connection Column

JuneAppalachian Model Provides

Training Method For Well Tenders

MayViewpoints Vary On Future OfTechnology For Oil And Gas

AprilTechnology Spawns Increased Activity

In Mature Kansas Oil Industry

PTTC Highlight

Recent Case Studies in WorldOil's Petroleum TechnologyDigest

Detailed InformationAvailable Online

Detailed InformationAvailable Online

PTTC Network News, 1st Qtr 2003

Industry Highlight

Technology DevelopmentFunding ThroughNYSERDA

What’s New In ArtificialLift, Part 1

Hart’s E&P’s 2003 SpecialMeritorious Awards ForEngineering Innovation

Hydrajet-FracturingStimulation for MultipleFracs in Horizontals

DOE Highlight

IntellipipeTM Drill Pipe(built-in high speedtelemetry) Performs Well in RMOTC Field Test

New Issue of Gas TipsNow Online

Carbon SequestrationConference

Solicitation for Drilling,Completion & StimulationR&D

June 24

May 03

Apr. 23

Apr. 03

13Network News

Regional Roundup

CONTACT THE PTTC REGIONALRESOURCE CENTER IN YOUR AREA:

Appalachian RegionDirector: Doug PatchenWest Virginia University304-293-2867, ext. 5443www.karl.nrcce.wvu.edu

Central Gulf RegionDirector: Bob Baumann,Louisiana State University225-578-4400Coordinator: Don Goddard, 225-578-4538www.cgrpttc.lsu.edu

Eastern Gulf RegionDirector: Ernest ManciniUniversity of Alabama205-348-4319http://egrpttc.geo.ua.edu

Midwest RegionDirector: David MorseIllinois State Geological Survey217-244-5527Coordinator: Steve Gustison, 217-244-9337www.isgs.uiuc.edu/pttc

North Midcontinent RegionDirector: Rodney ReynoldsKansas UniversityEnergy Research Center785-864-7398Coordinator: Dwayne McCune, 785-864-7398www.nmcpttc.org

Rocky Mountain RegionDirector: Sandra MarkColorado School of Mines303-273-3107www.pttcrockies.org

South Midcontinent RegionDirector: Charles MankinOklahoma Geological Survey405-325-3031Coordinator: Michelle Summers, 405-325-3031www.ogs.ou.edu/pttc.htm

Southwest RegionDirector: Robert Lee,Petroleum Recovery ResearchCenter, 505-835-5408Coordinator: Martha Cather, 505-835-5685http://octane.nmt.edu/sw-pttc

Texas RegionDirector: Scott Tinker,Bureau of Economic GeologyUniversity of Texas at Austin512-471-1534Coordinator: Sigrid Clift, 512-471-0320www.energyconnect.com/pttc

West Coast RegionDirector: Iraj ErshaghiUniversity of Southern California213-740-0321Coordinator: Idania Takimoto, 213-740-8076www.westcoastpttc.org

Michigan SatelliteWilliam Harrison III269-387-5488http://wst023.west.wmich.edu/pttc.htm

Permian BasinBob Kiker 432-552-3432www.energyconnect.com/pttc/pb/

2nd Quarter 2003 Case StudiesPetroleum Technology Digest

Oxy Permian's Cogdell Unit CO2 floodresponds rapidly to CO2 injection

Bottom Line: Oxy Permian, Ltd. (Oxy)is using CO2 flooding to rejuvenate pro-duction in the Cogdell Unit, aPennsylvanian Carbonate Reef field northof Snyder, Texas. Fast response is typicalof high permeability reservoirs, but theblessing comes with reservoir manage-ment and sweep-intervention challengesto assure that the CO2 sweep is efficientand lasting. Oxy uses an active reservoirsurveillance program and makessweep/profile modifications where neces-sary. Phase 2 development is plannedduring 2003. Assuming continuing suc-cess of the CO2 flood, field life could beextended 25 years and add over 20 mil-lion barrels of oil recovery.

Electromagnetic survey defines reser-voir, prevents drilling poor prospect

Bottom Line: A new electromagnetic(EM) survey technique developed byMontason Exploration, Inc., has beenused to define areal extent of a Niobraraprospect in eastern Colorado's Denver-Julesberg basin. The prospect, thought tohave about three sq mi of structural clo-sure, actually had only 400 acres of clo-sure according to the EM survey.Considering remote pipeline access, thepotential reserves were too small to war-rant drilling. The EM survey and interpre-tation helped the operator avoid largeland, exploration and development costsfor the project.S

Renowned expert, John Horne, led a PTTC-sponsored field seminar in Southwest Wyoming. Focuswas on coal depositional environments and stratigraphic relationships. This photo from theKemmerer mine illustrates the lateral variability and peat compaction in a coal sequence. The bench-es are about 50 feet high. This illustrates how correlating with one well per township can sometimesbe a challenge. Dr. Horne has taught industry courses, is a former AAPG distinguished lecturer, andhas more than 30 years technical and management experience in the petroleum industry.

Coal Stratigraphy, Cretaceous Foreland Basin, Southwest Wyoming

A joint project of Gulf Publishing (World Oil) and PTTC. See case studies online atwww.pttc.org/case_studies/case_studies.htm

Tips To Articles in Regional NewslettersRocky Mountain Maps, Cross Sections and Database for Oil, Gas, and CO2 Fields of the

Paradox Basin (www.mines.edu/research/PTTC/newsletters/ volume%206/v6n2p1.html#paradox)

Texas New Design for API-Modified Sucker-Rod Connection (www.energycon-nect.com/ pttc/NewsLetter/April2003newsletter.pdf)

14Network News

15Network News

Upcoming Events

PTTC’s low-cost regional workshops connect independent oil and gas producers with information about various upstream solutions. For informationon the following events, that are sponsored or co-sponsored by PTTC, call the direct contact listed below or 1-888-THE-PTTC. Information also isavailable at www.pttc.org. Please note that some topics, dates, and locations listed are subject to change.

July 20037/8 Midwest: Produced Water & Associated Issues - Mt. Vernon, IL. Contact: 217-244-93377/9 Midwest: Produced Water & Associated Issues - Evansville, IN. Contact: 217-244-93377/10 Appalachian: Trenton-Black River Core Workshop - Clymer, NY. Contact: 304-293-2867 x54157/11 Midwest: Handling Produced Water - Mt. Pleasant, MI. Contact: 269-387-86337/16 South Midcontinent: Paraffins and Asphaltenes (Oklahoma Geological Survey) - Smackover, AR.

Contact: 405-325-30317/31 North Midcontinent: Reducing Water Production Using Gel Polymers - Wichita, KS. Contact: 785-864-7398

August 20038/TBD Appalachian: Well Tender (Workshops in Ohio and Indiana, PA; early August) Contact: 304-293-2867 x54438/TBD West Coast workshop & field trip: Exploration and Development Potential of California Monterey and Deeper

Rocks - Ventura, CA. Contact: 213-740-80768/5 South Midcontinent: Trouble Shooting Rod-Pumped Wells (Marginal Well Commission) - Enid, OK.

Contact: 405-604-04608/7 Texas Lunch & Learn: Inexpensive, Rapid Cross-Section Generation Utilizing Riley Electric Log's Raster Log

Images and Divestco's CrossLog SuiteTM Software - Houston, TX. Contact: 512-471-03208/12 South Midcontinent: Trouble Shooting Rod-Pumped Wells (Marginal Well Commission) - Oklahoma City, OK.

Contact: 405-604-04608/14 Eastern Gulf: Paraffin and Asphaltene Formation Damage Control - Jackson, MS. Contact: 205-348-43198/18 North Midcontinent presentations: GEMINI Online System, CBM In Eastern Kansas, Dynamic Mapping Of Kansas

O&G Data, Update on Lansing/Kansas City CO2 Pilot (KIOGA annual meeting) - Wichita, KS. Contact: 785-864-7398

8/18 South Midcontinent: Trouble Shooting Rod-Pumped Wells (Marginal Well Commission) - Tulsa, OK. Contact: 405-604-0460

8/20 South Midcontinent: Applied Geology For The Petroleum Engineer (Oklahoma Geological Survey) - Norman, OK.Contact: 405-325-3031

8/21 West Coast: Recent Developments in 3-D Geologic Modeling - Valencia, CA. Contact: 213-740-80768/26 South Midcontinent: Trouble Shooting Rod-Pumped Wells (Marginal Well Commission) - Ada, OK.

Contact: 405-604-04608/26 Texas: Produced Water & Associated Issues - Midland, TX. Contact: Bob Kiker, 432-682-54228/27 Texas: Produced Water & Associated Issues -Farmers Branch, TX. Contact: Bob Kiker, 432-682-5422

September 20039/3 Texas: Paraffin And Asphaltene - San Angelo, TX. Contact: Bob Kiker, 432-682-54229/10 Appalachian: Subsurface Fluid Pressures and Their Relation to Oil and Gas Generation, Migration and

Accumulation (AAPG/SPE Eastern Regional Meeting short course) - Pittsburgh, PA. Contact: 304-293-2867 ext 54439/17 Central Gulf: Managing Upstream Oil & Gas Producing Assets - Baton Rouge, LA. Contact: 225-578-45429/18 West Coast: Trouble Shooter's Forum - Valencia, CA. Contact: 213-740-80769/17-18 Eastern Gulf: PETRA Software - Basics - Raymond, MS. Contact: 205-348-43199/23 South Midcontinent: Coiled Tubing Applications and Slimhole Completions (Marginal Well Commission) - Elk City,

OK. Contact: 405-604-04609/24 South Midcontinent: Coiled Tubing Applications and Slimhole Completions (Marginal Well Commission) - Tulsa,

OK. Contact: 405-604-04609/25 South Midcontinent: Coiled Tubing Applications and Slimhole Completions (Marginal Well Commission) -

Oklahoma City, OK. Contact: 405-604-0460

Position Name Affiliation City/StateChairman James Bruning Bruning Resources, LLC Fort Smith, ARVice Chairman Brook Phifer NiCo Resources, LLC Littleton, COImmed. Past Chairman Clark Southmayd, Jr. Oneok Resources Co. Tulsa, OK

Appalachian Bernie Miller Bretagne Corp. Lexington, KYCentral Gulf Joe Jacobs Gas Masters of America, Inc. Monroe, LAEastern Gulf Brian Sims Independent Madison, MSMidwest Craig Howard Howard Energy Mount Carmel, ILNorth Midcontinent Mark A. Shreve Mull Drilling Co., Inc. Wichita, KSRocky Mountain Robert McDougall Phoenix Production Co. Cody, WYSouth Midcontinent A. M. “Mac” Alloway Tony Oil Company Tulsa, OKSouthwest David Boneau Yates Petroleum Corp. Artesia, NMTexas Gene Ames III Ames Energy Corp. San Antonio, TXWest Coast Mark Kapelke Tidelands Production Co. Long Beach, CAIPAA Steve Layton E&B Natural Resources Spring, TXAAPG Chuck Noll Copano Energy Houston, TXSEG Glenn Breed UpstreamInfo Houston, TXSPE Michael Gatens III MGV Energy Inc. Calgary, AlbertaGTI Kent Perry Gas Technology Institute Chicago, ILIOGCC John King Michigan Public Service Comm. Lansing, MIMajor Companies Greg Reep ChevronTexaco San Francisco, CAService Companies Jay Haskell Schlumberger Oilfield Services Houston, TXRegional Lead Orgs. David Morse Illinois Geological Survey Champaign, ILPTTC Exec. Director Don Duttlinger Petrol. Tech. Transfer Council Houston, TX

PTTC’s National Board of DirectorsGuided by Independents for Independents

Interested in participating at the regional level? Call 1-888-THE PTTC

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PTTC Network News is a quarterly publica-tion of the Petroleum Technology TransferCouncil (PTTC). PTTC makes no claims andshall not be held responsible for any of theinformation herein. No specific application ofproducts or services is endorsed or recom-mended by PTTC. Reasonable steps aretaken to ensure the reliability of sources forinformation that PTTC disseminates; individu-als, companies, and organizations are solelyresponsible for the consequence of its use.Second-class postage is paid in Houston, TX.

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