Handling Sand & Gas in Permian Artificial Lift Charlie Fowler – VP Technology

May 24, 2016 DUG Conference

2 PROPRIETARY AND CONFIDENTIAL

What have unconventionals taught us about handling sand and gas?

Key Lessons

No perfect solutions

Each well is unique

Lots of trial and error

Requires a multi-pronged approach

Unconventionals have ACCELERATED improvements to all forms of lift for handling sand and gas.

Multi-pronged Approach

Prevent Produce Control

3 PROPRIETARY AND CONFIDENTIAL

Preventing Sand and Gas Basic Principles

SLOW FLOW to “encourage” natural separation

DIRECTIONAL changes to “break” gas out of solution

TOOLS to “re-direct” gas to annulus

FASTER FLOW to “encourage” density separation

SPIRALS to centrifugally separate

REVERSE FLOW at to induce sand fall

GAS REMOVAL

SAND REMOVAL

Sand

Oil/Water Gas

Prevent Produce Control

4 PROPRIETARY AND CONFIDENTIAL

Preventing Sand and Gas HYBRID Separator

Modelling Inputs: Scenario 1

Results

90% Solids Separation

83% Gas Separation

Flow: 100 BBL/Day

Viscosity: 7.5 Cp

Gas 20%

Solids 10%

Particle Size 0.040

Multi-phase

Sand

Gas

Liquid

Liquid

Liquid

Gas

Sand

1

2

3

4

4 CFD

Model

Prevent Produce Control

5 PROPRIETARY AND CONFIDENTIAL

Preventing Gas in an ESP Gas Anchor + Separators

Gas Rise

and Exit

Multi-phase

entry Fluid Changes

180 & Sheds

More Gas

Rotary or Vortex

Separators

Shed More Gas

MOTOR PROTECTOR INTAKE

SEPARATOR SEPARATOR PUMP

1

Entering

The

Pump

Cooling

the

Motor

3 2

Fluid up

Tube 4 5 6

7

Prevent Produce Control

6 PROPRIETARY AND CONFIDENTIAL

Producing Sand

Challenges Solutions

Abrasion

Shape Size 1 Hard Materials

2 Pump Geometries

Typical SR

Pumps

Trap Sand

Sand

Flush

Plunger

Flushes

Sand

away

from

Barrel

Concentration

ESP Carbide

Bearings

Sand Flush

Plungers

increased run

life from 604 to

1,333 days in

161 wells.

2.2X

Prevent Produce Control

7 PROPRIETARY AND CONFIDENTIAL

Producing Gas

Challenges Solutions

Failure Modes

Slugging Bubble Size 1 ESP: Optimizing stage types & combinations

2 Sucker Rod Pump Ratio

VSP

Challenge

When gas enters the pump, it cannot

effectively compress fluid on the down

stroke

Solution

Patented VSP utilizes fluid slippage

technology to equalize pressure and

allow pump to effectively compress

fluids.

ESP

Cavitation

Motor Overheat

Pump Seize

Sucker Rod

Fluid Pound

String Damage

Lost or Limited Production

Compress

Homogenize

Produce

Prevent Produce Control

8 PROPRIETARY AND CONFIDENTIAL

Controlling Gas in Sucker Rod Pumps

VSP

Prevent Produce Control

What do we look at?

• Dyna-card shape

• Amps

• Load (pounds)

• Polished Rod Position

What can we do with it?

• Slow down to increase fill

• Match Inflow to Outflow

• Protect Equipment

• Optimize well

• Steady state to prevent

sand fallback

• Rapidly respond to slugging

9 PROPRIETARY AND CONFIDENTIAL

Controlling Gas in an ESP

VSP

Prevent Produce Control

Amps

Intake PSI

Vibration

Disch. PSI

Motor Temp

What do we look at?

• Amps

• Pump Pressure

• Motor Temperature

• Vibration

What can we do with it?

• Speed up/slow down to

break gas lock

• Match Inflow to Outflow

• Shut down

• Delay re-starts

• Protect equipment

• Protect well

10 PROPRIETARY AND CONFIDENTIAL

When all else fails consider a Jet Pump

11 PROPRIETARY AND CONFIDENTIAL

Jet Pump Operation

Power fluid is pumped from surface down to the nozzle, where the venturi effect takes

place. High velocity fluid exiting the nozzle creates a low static pressure area.

Formation fluid is drawn to the low pressure area and comingles with the power fluid

jet in the throat area.

Comingled fluids travel to the diffuser where the flow area diverges converting the fluid

to low velocity / high pressure to lift to surface.

12 PROPRIETARY AND CONFIDENTIAL

Jet Pump Advantages

Flexibility

– Easy to deploy…pump in/out or wireline

– Easy to repair or change…1-2 hours

– Easy change-out as well declines

High Reliability

– No Moving Parts

– No connection to surface

Wide application envelope

– Solids

– Corrosives

– High GOR

– High viscosity

13 PROPRIETARY AND CONFIDENTIAL

De-Sanding Permian Well with Jet Pump

Customer Spending $30k per month on ESP

Case Study: Wolfcamp Basin

Replacing ESP every 3-4 Mos.

Down Time, Rig Time, ESP Repair

Rental Fees

Situation Solution

Consulted with Hydraulic Jet Pump Team on Solution

14 PROPRIETARY AND CONFIDENTIAL

De-Sanding Permian Well with Jet Pump

1) 200hp Power Fluid Pump Skid

2) Separator Vessel Installed

3) Downhole Jet Pump Installed with Large Throat/Nozzle

combination to handle solids

Case Study: Wolfcamp Basin

1 2

3

15 PROPRIETARY AND CONFIDENTIAL

De-Sanding Permian Well with Jet Pump Case Study: Wolfcamp Basin

Increased production from 400 bbls/d to 464 bbls/d

Run time increased with one jet pump pull to

clean solids – no workover rig or crew

needed

40% reduction in operating expense

Superior handling of solids with larger

Nozzle/Throat combination

ESP #1

80 Days ESP #2

70 Days

JET #1

90 Days & Running

Increased BBL/DAY

16 PROPRIETARY AND CONFIDENTIAL

Conclusions

Conclusion 1

Technology is evolving to:

Prevent Conclusion 2

AL providers need to improve:

Scientific understanding

Application Tools

Field Trials

Conclusion 3

Jet Pumps are a viable alternative to severe applications.