Options for MicroPower Deliquification

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1 Gas Well De-Liquification Workshop February 28 - March 2, 2005 Options for MicroPower Deliquification Julie Elder Production Engineer

2 Agenda Current State of Gas Fields Opportunity MicroPowered Deliquification options Questions 2

3 Current State As gas well ages, rate declines Deliquification methods that better harness the energy of the well (plunger, coil, soap) stall out You are faced with the more expensive option of adding energy to the well just when the production is lowest If purchased electrical power is not already nearby, the cost is often more than the production can justify. 3

4 Opportunity Assuming 50% increase in production and $3/MSCF 100 MSCFD 150 MSCFD $54,750 per year Assuming $75,000 installation: payout in a year and a half 4

5 What s needed? A low cost, low maintenance, low power pumping system. 5

6 HP Requirement HP to Lift Water 10000' up 0.75" ID HP 95% Eff.) BBLD of Water 1 HP is required to lift 10 BBLD 6

7 Possible Lift and Power Source % Sucker Rod WVGC D BBL 50% PCP % ~13 BBLD BBLD ~13 BBLD 0 ESP Hydraulic Pumps HP Gas Lift Compression Wind Solar Wind Gas Engine 5 Solar % 7

8 MicroPowered Deliquification Options What s out there? 8

9 Melding the conventional thought with improved and innovative equipment and alternative energy resources. Runs on less than 1 HP Lifts up to approximately 10 BBL of liquid per day Has been designed for wells up to 3000 deep Upcoming trial on a 9000 well 9

10 Solamotor in Farmington, NM One Solamotor pump in Farmington, NM as of 2003 Well depth is 1422 Fluid production is about 2 BBLD Motor is run by ¼ hp 12 volt system Eight 85 watt bp module solar panels Eight 6 volt batteries Two more pumps are to be installed in Feburary or March Contact Jeff Fisher sales@solamotor.com or solamotor@direcway.com 10

11 Insertable Diaphragm Pump Available from SmithLift Powered Hydraulically from the surface via hydraulic fluid transmitted through capillary line Fits inside 2 3/8 or 2 7/8 tubing Lifts from 10 to 300 bbld (depending on tubing size and depth) Depths up to 12,500 Low profile installation 11

12 Hydraulic line(s) Upper ball and seat 5-7 HP to lift BBLD at 12,000 Several power options available Electrical, gas engine, differential gas pressure, solar and wind First field test is scheduled for the end of March Triple cup seal to tubing Drive cylinder Pump rod 2 3/8 Tubing Standing Valve Contact Rick Webb rwebb@wilsononline.com or Leland Traylor Pump Inlet 12

13 udu Industries T Drive Progressive Cavity Pump Systems 1 HP / 4 BBLD Can be driven by Electric or Hydraulic Uses half the power of rod drive system because frictional losses due to the rod string are eliminated. Larger annulus, improved gas separation Lower overall completion cost Inexpensive service Pump turns at a constant RPM 13

14 First field tested about 1 ½ years ago. ~10 in the field today More to be installed summer 2005 Well depths of ~1000 Contact David Hill David_Hill@kudupump.com 14

15 The String Trimmer 1.2 HP Engine That s all the horsepower we need! 15

16 Acknowledgements Brian Young Notre Dame Bryan Dotson BP Jim Lea Texas Tech Jeff Fisher Solamotor Rick Webb - Wilson Curtis Yip Kudu Industries Inc. 16

17 Questions? 17

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