The timing for this month’s column happened to coincide with wrapping up the next edition of PTTC’s newsletter, Network News, and preparing our e-mail Tech Alert. Both fell shortly after exhibiting at Energy Epicenter 2008, a joint event of the American Association of Petroleum Geologists’ Rocky Mountain Section and the Colorado Oil & Gas Association. Needless to say, I am awash in technology. So from all those “connections,” I am going to unload some of that.

Excitement in the shale gas plays remains undiminished. The Barnett Shale is almost “old hat” as the Marcellus and Haynesville
shales surge forward, the Woodford and the Fayetteville shales remain strong, and numerous other “as yet smaller” shale gas plays are still in early evaluation stages. Each play has its quirks, but industry is proving adept at accelerating the learning curve. There is so much unconventional that it almost seems conventional.

Gas development in the Rocky Mountains continues strong. One of the sessions I “listened in on” at Energy Epicenter 2008
focused on the business value of 3-D seismic. The thrust was how to communicate the value of the “visualization” 3-D provides
in terms of business drivers. One speaker explained it in terms that this “chemical converted to petroleum engineer” could grasp.

There is a life cycle to seismic data, and one must know which part of the cycle he is in. The four stages are exploration,
field development, reservoir characterization, and salvage. During exploration, the driver is finding cost, so express value
in finding and development units such as dollars per Mcf. In the field development stage, one is working to extend boundaries,
so express value in less risk, fewer dry holes. In the reservoir characterization stage there are many wells, so one can integrate
well and seismic data to refine in-field opportunities. Here and in the salvage stage, one can optimize the workflow, learning how to do it to better find the next field.

Reinforcing this concept, another speaker noted how 3-D seismic data “keeps on giving through the life of the field.” At
Pinedale, 3-D seismic data enabled operators to forecast step-out wells and design delineation wells for maximum impact on
reserves.

Readers are urged to explore a study by Ziff Energy Group (www.ziffenergy.com). Ziff completed an eight-month study
that analyzes the full-cycle costs of new/marginal natural gas supply from two dozen North American gas areas, representing
about 90 percent of new/marginal gas. The analysis was broken into six primary groups: conventional, coalbed methane, tight
gas, shale gas, offshore and yet to arrive frontier, and liquefied natural gas.

For many gas basins, the study estimates full-cycle costs for several play types. For shale gas, full-cycle costs are compared
for the Barnett, Woodford and Fayetteville. With information drawn from multiple sources, interviews, third party objectivity
and Ziff’s 25-year track record, the findings at least warrant serious consideration. One can keep this data in the back of his
mind as he looks at prospects, and there are many venues coming this summer and fall to look at prospects, including Summer
NAPE® (Houston), Mid-Continent Prospect Expo (Oklahoma City), Gulf Coast Prospect Expo (Lafayette, La.), and Denver Prospect Expo and Techfest.

It’s not only exploration and drilling, though. In researching for Network News, I found timely articles on deliquifying natural
gas wells. Of note, there is an industry effort led by the Artificial Lift Research & Development Council (www.alrdc.com) to develop
proven guidelines that capture experience from multiple individuals and companies. There are four main sections:

• How to create an optimum selection process;
• Fundamentals and guidelines for 15 types of artificial lift;
• Selecting the most appropriate system for a given well/field;

and

• Optimizing ongoing operations and maintenance. Guideline development is ongoing. If anyone has expertise to contribute, contact Cleon Dunham at ALRDC. While on the subject of artificial lift, check out the annual two-part series on artificial lift published in World Oil’s April and May issues. There are many innovations coming, both with conventional lift (rod, submersible, progressing cavity) and other technologies.

One source of innovation for marginal well operators is research and development projects performed within the Department of Energy-supported Stripper Well Consortium (www.energy.psu.edu/swc/). Although the SWC already made eight awards this spring, it has opened a second solicitation with proposals due Sept. 3. For someone who has not already started, it may be tight to develop a proposal, but fortunately the proposal is straightforward compared with the typical DOE solicitation. Go for it!

Another popular event for Mid-Continent folk is the O&G Trade Expo (Oct. 16 in Oklahoma City), organized by the Oklahoma’s Commission on Marginally Producing Oil and Gas Wells. Those who exhibit have technologies focused on marginal wells, and the barbecue can’t be beat.