The Russell Kansas CO2 Pilot The Russell Kansas CO2 Pilot –– The Strangest ThingThe Strangest Thing
Rich Pancake Rich Pancake Murfin Drilling CompanyMurfin Drilling Company
TORP Oil Recovery Conference Wichita, Kansas
April 5, 2007
PartnersPartners
OverviewOverview
• Background
• Dead in the Water
• Resurgence
• Recent Activity
• Discussion
Location of Ethanol Plant & Location of Ethanol Plant & CO2 Pilot SiteCO2 Pilot Site
Kansas Geological SurveyKansas Geological SurveyKansas Geological Survey
Kansas Geological SurveyKansas Geological Survey
Many Variations Came & Went
Kansas Geological SurveyKansas Geological Survey
Preferred Choice Before Funding Issues
Kansas Geological SurveyKansas Geological Survey
CO2 Pilot Area
Tank Battery & CO2 Injection Equipment
Type Log CO2#18
L-KC “C” divided into 6 Layers-three flooding cycles
• General Properties*– C1: 8 md, 18.8%– C2: 150 md, 25.8%– C3: 40 md, 22.0%– C4: 6 md, 19.4%– C5: 2 md, 14.7%– C6: 0.3 md, 12.0%
• *- CO2#18 exhibits better properties than average for site
0.0 0.5 1.0Neutron
C1C2C3C4C5C6D
Gamma10
Geologic Geologic OverviewOverview
Work TimelineWork Timeline• Phase One – DOE Contribution 45%DOE Contribution 45%
– March 2000 to January 2004
– Perform Reservoir Characterization and Simulation
– Develop Working Interest Partnerships and Other Working Agreements (CO2 Supply, CO2 Transport, and CO2 Injection – Summer, Fall, Winter 2002)
– Conduct Field Studies to Determine if CO2 Pilot Implementation Feasible (Included Well Workoversand Water Injection Facilities – Winter, Spring 2003)
– Pre-startup Activities (Tank Battery Upgrade and CO2 Injection Equipment Set-up – Fall 2003)
– CO2 Injection Commences December 1, 2003
Work TimelineWork Timeline• Phase Two – DOE Contribution 35%DOE Contribution 35%
– February 2004 to December 2008
– Implement, Operate, and Monitor CO2 Pilot - present
– CO2 Injection Terminated June 17, 2005
– Water Injection Commences June 21, 2005
• Phase Three – DOE Contribution 10%DOE Contribution 10%– January 2009 to March 2010
– Post Flood Monitoring
– Continue Tech Transfer Activities
Workover CO2 #18 $ 58 MDrill & Complete CO2 I-1 $284 MRun Liner in CO2 #12 $ 50 MWorkover CO2 #10 $ 93 MDrill Deeper CO2 #16 $122 MConstruct Freshwater Plant $ 71 MRun Liner in CO2 #13 $ 50 MSet-up CO2 Skid & Tank $ 11 MMiscellaneous $ 11 MTotal $750 M
Murfin & WI Partners (55 %) $412.5 MDOE (45 %) $337.5 M
Summary of Implementation CostsSummary of Implementation Costs
WI WI Profit/Year Income Oper Cost Loss .2002 $ 0 $ 10,160 ($ 10,160)2003 $ 8,641 $ 175,718 ($ 167,077)2004 $ 28,621 $ 105,446 ($ 76,825)2005 $ 53,755 $ 71,171 ($ 17,416)2006 $ 98,370 $ 119,439 ($ 21,069)
Total $ 189,387 $ 481,934 ($ 292,547)
Summary of Operating CostsSummary of Operating Costs
Russell CO2 PilotTotal Daily Production & Injection
0.1
1.0
10.0
100.0
1000.0
Jun-03 Jan-04 Aug-04 Feb-05 Sep-05 Mar-06 Oct-06
Oil (bpd) Water (bpd) Gas (mcfd) CO2 Injected (mcfd)
Dead in the Water?
March 2006 – Pilot On Last Legs?
– Still no oil kick
– Pilot Area loosing +/- $6,000 per month
– Everyone (but one) thought Project done
Dead in the Water?Dead in the Water?
Guess who? (It wasn’t me.)
Fast Forward to August 2006
– KIOGA Annual meeting Wichita, KS
– Marlin Robinson of Mar-Lou Oil approaches KU Booths
– “Not sure I want to tell you this, but …”
ResurgenceResurgence
Graham A Lease Monthly Oil Production
0
50
100
150
200
250
300
350
Aug-0
4Se
p-04
Oct-0
4No
v-04
Dec-0
4Ja
n-05
Feb-0
5Ma
r-05
Apr-0
5Ma
y-05
Jun-0
5Ju
l-05
Aug-0
5Se
p-05
Oct-0
5No
v-05
Dec-0
5Ja
n-06
Feb-0
6Ma
r-06
Apr-0
6Ma
y-06
Jun-0
6Ju
l-06
Aug-0
6Se
p-06
Oct-0
6bp
m
Where Did the CO2 Go?Where Did the CO2 Go?
Kansas Geological SurveyKansas Geological Survey
Russell CO2 PilotTotal Daily Production & Injection
0.1
1.0
10.0
100.0
1000.0
Jun-03 Jan-04 Aug-04 Feb-05 Sep-05 Mar-06 Oct-06 Apr-07
Oil (bpd) Water (bpd) Gas (mcfd) CO2 Injected (mcfd)
Resurgence?
It Only Makes Sense To:It Only Makes Sense To:
Kansas Geological SurveyKansas Geological Survey
It Only Makes Sense To:
– Release the packer in Colliver 7 & produce from LKC (August 28, 2006)
– Knock-out CIBP in Colliver 3 & RTP well in LKC (October 11, 2006)
SemiSemi--Recent ActivityRecent Activity
Colliver A Lease Oil Production
1
10
100
12/14
/05
2/2/06
3/24/0
6
5/13/0
6
7/2/06
8/21/0
6
10/10
/06
11/29
/06
1/18/0
7bo
pd
Colliver A Lease Oil Production
Colliver A 7 packer released, 8/28/06
Colliver A 7 SPM from 11.3 to 12.5, 9/28/06
Colliver A 3 RTP'd, 10/11/06
5 wells producing, #1, #5, #6, #7, & #14
Long stroked Colliver A 3, 10/17/06
As of mid-November 2006
As of March 2007:
– Continue to maximize pilotproduction (pump-off #12, pump #16 more often, maintain pressure bubble)
– RTP Carter 2 in LKC (March 7, 2007)
– Knock-out CIBP in Colliver 14 & RTP in LKC (March 13, 2007)
Recent ActivityRecent Activity
Colliver A Lease Oil Production
1
10
100
12/14
/2005
3/24/2
006
7/2/20
06
10/10
/2006
1/18/2
007
4/28/2
007
bopd
Colliver A Lease Oil Production
Colliver A 7 packer released, 8/28/06
Colliver A 7 SPM from 11.3 to 12.5, 9/28/06
Colliver A 3 RTP'd, 10/11/065 wells producing,
#1, #5, #6, #7, & #14
Long stroked Colliver A 3, 10/17/06
Colliver Lease as of April 2, 2007
Russell CO2 PilotTotal Daily Production & Injection
0.1
1.0
10.0
100.0
1000.0
Jun-03 Jan-04 Jul-04 Feb-05 Aug-05 Mar-06 Sep-06 Apr-07
Oil (bpd) Water (bpd) Gas (mcfd) CO2 Injected (mcfd)
Resurgence?
Graham A Lease Monthly Oil Production
0
50
100
150
200
250
300
350
Aug-0
4Se
p-04
Oct-0
4No
v-04
Dec-0
4Ja
n-05
Feb-0
5Ma
r-05
Apr-0
5Ma
y-05
Jun-0
5Ju
l-05
Aug-0
5Se
p-05
Oct-0
5No
v-05
Dec-0
5Ja
n-06
Feb-0
6Ma
r-06
Apr-0
6Ma
y-06
Jun-0
6Ju
l-06
Aug-0
6Se
p-06
Oct-0
6No
v-06
Dec-0
6bp
m
Colliver A 7bbl tests
1
10
100
1000
7/1/98
7/1/99
7/1/00
7/1/01
7/1/02
7/1/03
7/1/04
7/1/05
7/1/06
7/1/07
DATE
BPD
bopd bwpd
Colliver A 3bbl tests
0.1
1
10
100
1000
1/1/03
1/1/04
1/1/05
1/1/06
1/1/07
DATE
BPD
bopd bwpd
Well is pumped ff
Colliver A LeaseMonthly Gauged Production
7-year Production
1.0
10.0
100.0
Jan-0
0
Jan-0
1
Jan-0
2
Jan-0
3
Jan-0
4
Jan-0
5
Jan-0
6
Jan-0
7
Jan-0
8
DATE
Avg
BO
PD
RTP'd LKC in Colliver A 7, 8/28/06
RTP'd LKC in Colliver A 3, 10/11/06
Colliver lease since 2000
Should More Be Done?• Should commercial project be attempted?
• Would commercial project be economic?
• Would operators pool their resources?
• Is there sequestration angle?
General CommentsGeneral Comments
Kansas Geological SurveyKansas Geological Survey
Thanks!Thanks!
Geologic OverviewGeologic Overview
Gonzalez & Eberli (1997)
Tidal Channel Spillover Lobe
Ripples on Top ofSand Bars
Prograding ForesetsSand WaveBase Level
Ripples on Channel Floor
Gonzalez & Eberli (1997)
Tidal Channel Spillover Lobe
Ripples on Top ofSand Bars
Prograding ForesetsSand WaveBase Level
Ripples on Channel Floor
Higher Permeability100’s md
Moderate Permeability10’s md
Higher Permeability100’s md
Moderate Permeability10’s md
Low k contact
CO2 I-1 CO2 #13
Drill and Complete CO2 IDrill and Complete CO2 I--1 1 into LKC Cinto LKC C
• September & October 2000
• Total Cost = $284,000
Drilling CO2 I-1
CO2 #10
Drilling CO2 I-1
Tank Battery
Costs to DateCosts to DateWorkover CO2 #18 to isolate LKC CWorkover CO2 #18 to isolate LKC C
• May & June 2000
• Cement squeeze several zones, reperfLKC C
• Total Cost = $58,000
Costs to DateCosts to DateRun liner in CO2 #12 to isolate LKC CRun liner in CO2 #12 to isolate LKC C
• February & March 2003
• Plug back LKC G w/ cement
• Cmt 4-1/2” liner in 6”, left LKC C openhole
• Total Cost = $50,000
Workover CO2 #10 to isolate Workover CO2 #10 to isolate LKC CLKC C
• March 2003
• Cement LKC C & G openhole
• Redrill LKC C and perforate
• Run tandem packer across shallow zones
• Total Cost = $93,000
CO2 #12 Liner Installation
Tank Battery
CO2 #10
CO2 #12
Old Colliver 16 LinerRunning KGS VSP Cable into 16 Fishing KGS VSP Cable from 16
Costs to DateCosts to DateDrill Deeper CO2 #16 into LKC CDrill Deeper CO2 #16 into LKC C
• March & April 2003
• Remove existing shallow liner (Jan ’03)
• Drill deeper into LKC C & G, cmt 4-1/2” csgto surface, perforate LKC C, acidize
• Total Cost = $122,000
Tank Battery
Drilling Freshwater Well Injection Tank & Treatment Chemical
Injection Pump & Filters
Laying Line to CO2 #10
Costs to DateCosts to DateConstruct Freshwater Injection PlantConstruct Freshwater Injection Plant
• April 2003
• Drill freshwater supply well
• Lay lines, construct shed, set pump & tanks
• Total Cost = $71,000
Tank Battery
Running Liner in CO2 #13Perforating CO2 #13 Acidizing CO2 #13
Costs to DateCosts to DateRun liner in CO2 #13 to isolate LKC CRun liner in CO2 #13 to isolate LKC C
• May 2003
• Cmt 4-1/2” liner (to surface in 6”) across LKC C & G
• Perforate & acidize LKC C
• Total Cost = $50,000
Tank Battery
CO2 Injection Skid & Tank CO2 Injection SkidCO2 Storage Tank
Upgraded Tank Battery
Before, Fall 2000 After, Fall 2003CO2 #12 Wellhead CO2 I-1 Wellhead
Costs to DateCosts to DateSetSet--up CO2 Skid and Upgrade TBup CO2 Skid and Upgrade TB
• November 2003
• Set-up CO2 injection skid & storage tank
• Install gas separator, FWKO, and water disposal tank at tank battery
• Total Cost = $11,000 (install CO2 skid only)
Tank Battery
Operational Issues– CO2 Injection Pump too Big
• Excessive CO2 recycle and venting• Pump requires overhaul July 2004; Smaller
plungers inserted• Venting problem eliminated
Current OperationsCurrent Operations
Operational Issues– Metering Inaccuracies
• CO2 rate measurement at skid inaccurate• Pump pulsation creates backflow through turbine
meter• CO2 rate, temperature, and pressure measurement
relocated to CO2 I-1 June 2004• Metering accuracy improves significantly
Current OperationsCurrent Operations
Russell CO2 PilotCumulative Production and Injection
1
10
100
1,000
10,000
100,000
Oct-03 Jan-04 Apr-04 Aug-04 Nov-04 Feb-05 May-05
Cum Oil Prod (bbl) Cum Water Prod (bbl)Cum Gas Prod (mcf) Cum CO2 Inject (mmcf)
CO2 injection commenced December 1, 2003
Monthly Costs– Lease Operating Expense (LOE)
• Average $11,900/month without DOE cost-share• Average $ 8,900/month with DOE 35% cost-share
– Economic Limit at Current LOE (w/ DOE cost-share)
• 8.4 bopd @ $40/bbl oil price• 7.4 bopd @ $45/bbl oil price
– Emphasize Cost-Sharing
Current OperationsCurrent Operations
The Russell Kansas CO2 Pilot – The Strangest ThingOverviewLocation of Ethanol Plant & CO2 Pilot SiteMany Variations Came & WentPreferred Choice Before Funding IssuesGeologic Overview