Artificial Lift Production Evaluation and Optimization on Gas Wells

Prepared By:
Kolton Chapman, Petroleum Engineering Technology Student Prepared For: Craig Sinclair, Manager Tupper Operations, Murphy Oil Company Ltd. & Anthony Wallace, Petroleum Engineering Technology Instructor

Agenda
1)
2) 3) 4) 5) 6) 7) 8) 9)

Background 10) Introduction Tupper GGS SCADA 11) System Intermitter Graph (Well 12) B) 13) BJ Services (Baker Hughes) 14) Weighted Foamer Decline Curve 15) Tundra Petroleum Services 16) Plunger Lift Explanation 17) Production Control 18)

PCS Quotes & Economics Premier Integrated Technologies PIT Quotes & Economics Tupper Field Feedback PIT Plunger Decline Curve PCS Plunger Decline Curve (G Well) Conclusion Recommendations Question Period

Background
Murphy Oil Company Ltd. (MOCL) appointed Mr.

Craig Sinclair as my mentor for this project. Craig is an experienced Chemical Engineering Technologist, R.E.T. and is Manager of Tupper Operations The field analyzed is the Tupper field located in North Eastern British Columbia South of Dawson Creek This field was purchased by MOCL in 2007 from Bear Ridge Resources, and the first day of production out of this field was December of 2008 The Tupper field produces shale gas

Introduction
To determine the best approach for Murphy Oil

Company Ltd. towards installing artificial lift in seven currently liquid loaded gas wells Analyzed based upon simple economics, attainable production rates, maintenance costs, and installation costs
Artificial Lift Application MOCL Approved Service Companies/ Control System
BJ Services (Baker Hughes) Tundra Petroleum Services Production Control Services Premier Integrated Technologies Tupper GGS SCADA System

Capillary String
x

Foamer
x

Plunger

Intermitter

x x x

Tupper GGS SCADA System

The systems full name is Tupper Gas Gathering System

Supervisory Control and Data Acquisition System The Tupper GGS SCADA System controls the entire Tupper field and plant The operator can enable or disable an Intermitter timer which closes and opens the flow choke, therefore having the ability to shut-in the well and build formation pressure

Intermitter Graph (Well B)

BJ Services (Baker Hughes)

The company has last conducted water sampling out

of the producing formation on July 7, 2009. The water samples were analyzed using a Foam Blender Test and Foam Tower Test
Foamer
Product Cost ($/L FOB) Initial Batch Cost (25 L) Daily Operating Cost ($/day) Monthly Operating Cost ($/month)

Supplier

Comments

BJ Services (Baker Hughes)

$ 5.75

$ 143.75

$ 57.50

$ 1750.15

No noticeable production increase yet shut in times slightly reduced.

Weighted Foamer Decline Curve

It was suspected that this batching was unsuccessful due to the

inability to get the foamer through the high level of liquid in the well, therefore MOCL did not proceed to inject foamer into any wells

Tundra Petroleum Services

Tundra Petroleum Services is a Western

Canadian based capillary tubing service company

Capillary String Quote
Line Cost ($/meter) Mileage- Capillary Unit ($/km) Mileage- Support Pickup ($/km) Capillary Hanger w/ Injection Control Valve

Unit cost
$ $ $ n/a 7.50 3.75 1.25

Unit Amount
2785m 700 km 700 km n/a

Total
$21,037.50 $2,625.00 $1,085.00 $2,350.00

Set Up/Installation Charge

Surface Equipment Well A: Total Estimated Cost Prod. Volume Prior To Capillary String (e3m/d) 10 Expected Prod. Volume After Install (e3m/d) 16

n/a
n/a

n/a
n/a

$2,445.00
$7,150.00 $ 37,192.50

Well

Expected Prod. Volume Increase (e3m/d) 6

Capital Cost (Including Cap. String and initial foamer batch of 25L) $37,336.25

Operating Cost ($/d) Expecting injection rate of 10L/d $ 57.50

Application Payback Period (days) 45.8

Plunger Lift Explanation

Plunger lift technology is a type of artificial lift

(AFL) that is very accepted in the oil and gas industry because it only uses the wells natural energy to help lift fluids out of the wellbore rather than an external power source

http://www.fergusonbeauregard.com/downloads/Intr oduction_to_Plunger_Lift.pdf

Production Control Services (PCS)

Data Sheets filled out and sent to PCS
Plunger lift evaluation completed by PCS using:

Fekete Virtuwell Software, and Foss & Gaul Equations Once calculations completed PCS produced a conventional plunger recommendation for each well stating : whether a plunger lift candidate or not, size of plunger to be used, and cycle times

PCS Quotes & Economics

Actual Conventional 73.0mm Plunger Quote
Swabbing Cost Standard Plunger Lift Components Service Charges & Installation Estimate Estimated Total

Unit cost
$ 3,100.00 $ 11,127.25 $ 2,500.00 $ 16,727.25

Actual Conventional 63.0mm Plunger Quote

Swabbing Cost Standard Plunger Lift Components Service Charges & Installation Estimate Estimated Total Prod. Volume Prior To Plunger Lift (e3m/d) 10 11 11 11 24 19 10 Expected Prod. Volume After Install (e3m/d) 14 15 16 14 26 21 12 Expected Prod. Volume Increase (e3m/d) 4 4 5 3 2 2 3

Unit cost
$ 3,100.00 $ 7,555.50 $ 2,500.00 $ 13,155.50 Operating Cost ($/d) *Expecting replacement due to solids wear in 2 years $ 18.00 $ 18.00 $ 18.00 $ 22.89 $ 18.00 $ 18.00 $ 18.00 Application Payback Period (days) 24.4 24.4 19.4 41.9 50.8 50.8 33.1

Well

Capital Cost ($)

A B C D E F G

$ 13,155.50 $ 13,155.50 $ 13,155.50 $ 16,727.25 $ 13,155.50 $ 13,155.50 $ 13,155.50

Premier Integrated Technologies

Premier Integrated Technologies (PIT) is the only

Canadian provider of the Pacemaker Plunger Lift technology The Pacemaker plunger is a two piece plunger Pacemaker plunger technology allows continuous gas flow rates from wellhead to plant inlet, which creates less problems regarding gas processing

http://www.mgmwellservice.com/images/varietynew.jpg

PIT Quotes & Economics

Actual Conventional 73.0mm Plunger Quote
Swabbing Cost Standard Plunger Lift Components Service Charges & Installation Estimate Estimated Total

Unit cost
$ 3,100.00 $ 6,336.90 $ 2,500.00 $ 12,136.90

Actual Pacemaker Technology 63.0mm Plunger Quote

Swabbing Cost Standard Plunger Lift Components Service Charges & Installation Estimate Estimated Total Prod. Volume Prior To Plunger Lift (e3m/d) 10 11 11 11 24 19 10 Expected Prod. Volume After Install (e3m/d) 14 15 16 14 26 21 12 Expected Prod. Volume Increase (e3m/d) 4 4 5 3 2 2 3

Unit cost
$ 3,100.00 $ 9,022.00 $ 2,700.00 $ 14,822.00 Operating Cost ($/d) *Expecting replacement due to solids wear in 2 years $ 20.29 $ 20.29 $ 20.29 $ 16.61 $ 20.29 $ 20.29 $ 20.29

Well Location

Capital Cost ($)

Application Payback Period (days) 27.4 27.4 22.0 30.6 57.7 57.7 37.4

A B C D E F G

$ 14,822.00 $ 14,822.00 $ 14,822.00 $ 12,136.90 $ 14,822.00 $ 14,822.00 $ 14,822.00

Tupper Field Feedback

In the past year there has been three plunger lift

applications installed in the Tupper field Two PIT Pacemaker plungers & one PCS conventional plunger During the evaluation of report the Tupper field experienced salt precipitation (halite) occurring in a few producing wells

PIT Plunger Decline Curve

Intermitter Enabled

Plunger Lift Applied

PCS Plunger Decline Curve

Intermitter Enabled

Plunger Installed

Conclusions
Premier Integrated Technologies Pacemaker technology is the

best solution for removing liquid loading due to the Tupper fields past experiences with this technology installed on wells that are no longer able to flow on intermitters Capillary Strings are very expensive compared to plunger lift, therefore making this application not as economical as plunger lift technology. Further weighted foamer analysis needs to take place before this AFL application is considered, which will allow a better understanding towards achievable production rates when using capillary strings Production Control Services does not sell Pacemaker Plunger Lift Technology, which allows a well to flow 24 hours a day therefore allowing less pipeline, and gas processing problems. Also PITs conventional plungers are more economical for Murphy Oil Company than the PCSs conventional plunger applications Weighted foamer is currently not a solution for unloading liquid loaded gas wells in the Tupper Field

Recommendations
After analysis has been completed it is concurred that

there is no single artificial lift option that can solve every liquid loaded well problem in the Tupper field. It is recommended that liquid loaded wells that flow less than 10 E3m/d, should immediately have an intermitter timer enabled to increase daily gas production. Once a well is experiencing serious liquid loading to the point that an intermitter is not effective at keeping it flowing; PIT Pacemaker plunger technology should be installed if the well meets all criteria. If the well doesnt meet Pacemaker plunger lift criteria I recommend installing a PIT conventional plunger application. Plunger lift will help with future salt precipitation in the majority of the tubing, yet it is not a completely effective solution. I dont recommend using the BJ RCI 08025W weighted foamer again in the Tupper field, because in the past it has not removed any liquid loading due to high liquid columns in the wellbore.

Question Period