DOE Digest

Natural Gas
Storage Consortium Progressing

Formed last year, the DOE-supported Natural Gas Storage Consortium (www.pttc.org/news/
3qtr2003/v9n3p10.htm#3) is proceeding rapidly with organization so that initial RD&D projects can be funded in mid-2004. More than 50 attended an organizational meeting in Atlanta during February to (1) define a roadmap for research needs and priorities and (2) finalize the Consortium's constitution and bylaws. There, participants agreed to accelerate activities such that initial awards could be made sooner than originally planned. Members elected the Executive Board during an early March meeting in Houston. Details for the Request For Proposals were finalized.

For more information, contact Bob Watson, Penn State, E-mail rww1@psu.edu or phone 814-865-0531.

A 30-day cruise to study hydrates in the Gulf of Mexico (GOM) is planned in May. The plan is to drill wells at two deepwater gas hydrate sites, Atwater Valley and Keathley Canyon, on the outer continental shelf.

Three well pairs are planned at both sites. Water depth will be about 4,300 ft. Each pair will consist of a logging-while-drilling well and a nearby (~50 to 75 ft) offset cored well for correlation and instrumentation. The researchers selected the drilling sites based on maps of gas hydrate indicators and an interpretation of the geologic framework of the selected sites.

The Scripps Institute of Oceanography is organizing and leading the plan and shipboard scientific staff. The drilling vessel will be the recently renovated Fugro Explorer. It is one of the most technologically advanced geotechnical drilling vessels now available and is capable of operating in water depths up to 10,000 ft.

The effort is part of a 4-year collaborative effort involving industry, DOE and academia to develop technology and collect data to characterize naturally occurring gas hydrates in the deepwater Gulf of Mexico. JIP industry partners include ChevronTexaco, ConocoPhillips,

DOE recently received the Licensing Achievement Award from the Licensing Executives Society U.S.A. and Canada (LES). The Licensing Achievement Award is the highest honor bestowed by LES, to recognize leading organizations that promote intellectual property commercialization through licensing. Prior recipients of the award are Stanford University, Pfizer, and IBM Corporation.

Recognized for its outstanding technology developments with commercial potential, DOE operates a database of more than 1,500 patented inventions available for license. In presenting the award, LES acknowledged a recent DOE project, The Licensing Decision. This is a practical guide to licensing and technology commercialization designed for individuals and small businesses supported by the Department's Inventions & Innovations Program.

The Licensing Executives Society (U.S.A. & Canada), Inc. is a professional society comprised of over 5,500 members who are involved in the transfer, use, development, manufacture and marketing of intellectual property, including professionals in the field of law, academics, science government and the private sector.

The full press release may be viewed online at www.usa-canada.les.org/press/
archives/doe.asp.

Reminder—
Proposal Due Dates

DOE Proposal due dates are imminent for three DOE programs. If not already working on a proposal to compete for this federal funding, there is still time for the energetic. Take a look and see if there are opportunities for you.

Advanced Diagnostics and Imaging (www.netl.doe.gov/
business/solicit/index.html)—April 12

Focused Research in Federal Lands Access and Produced Water Management in Oil and Gas Exploration and Production (www.netl.doe.gov/business/
solicit/index.html)—April 19

Stripper Well Consortium (www.energy.psu.edu/swc/)— April 27 (must be a member to submit a proposal)

Targeting 'Sweet Spots' in Fractured Reservoirs

Geospectrum Inc., DOE's National Energy Technology Laboratory, Burlington Resources Inc. and Huntington Energy L.L.C. worked together to select, drill and complete the Canyon Largo Unit #452 in the San Juan Basin, targeting fractured Lower Dakota sandstones. Geospectrum selected the well location using an innovative new methodology that combines seismic attribute analysis (including a special gas sensitive AVO attribute), petrophysical analysis, and production data analysis to target potential fracture sweet spots. All parties agreed to drill Geospectrum's recommended site and Huntington Energy was brought in as a farm-out partner to handle the actual drilling and completion of the well.

The well was drilled, logged and cased to a depth of 7590 feet on December 12-21, 2003. Two Lower Dakota sandstones were perforated, the Burro Canyon (7518-7524 feet) and the Encinal (7420-7455 feet), and both intervals had gas shows. Because of potential water problems in the Burro Canyon reservoir, the decision was made to produce from the shallower Encinal unit. The Encinal was isolated and fracture stimulated on January 14th, and it produced gas at an initial rate of 4 MMCFGPD. Production continues at 1.4 MMCFGPD at 175 psi, which appears to be one of the better wells in the Unit and a very good well for this part of the basin. Three additional wells have been permitted.

The demonstrated methodology has application in many tight gas basins. For more information, contact DOE's Frances Toro, E-mail TORO@netl.doe.gov or phone 304-285-4107 and/or GeoSpectrum's Principal Investigator, Dr. James J. Reeves, E-mail jreeves@geospectrum.
com or phone 432-686-8626 Ext. 101.