Regional Roundup

2nd Quarter 2004 Case Studies
Petroleum Technology Digest

CONTACT THE PTTC REGIONAL
RESOURCE CENTER IN YOUR AREA:

Appalachian Region
Director: Doug Patchen
West Virginia University, 
304-293-2867, ext. 5443
Coordinator: Mark Hoffman,
304-293-2867 Ext. 5446
www.karl.nrcce.wvu.edu

Central Gulf Region
Director: Bob Baumann,
Louisiana State University,
225-578-4400
Coordinator: Don Goddard,
225-578-4538
www.cgrpttc.lsu.edu

Eastern Gulf Region
Director: Ernest Mancini
University of Alabama,
205-348-4319
Coordinator: Bennett Bearden,
205-348-1880
http://egrpttc.geo.ua.edu

Midwest Region
Director: David Morse
Illinois State Geological Survey, 
217-244-5527
Coordinator: Steve Gustison,
217-244-9337
www.isgs.uiuc.edu/pttc

North Midcontinent Region
Director: Rodney Reynolds
Kansas University
Energy Research Center,
785-864-7398
Coordinator: Dwayne McCune,
785-864-7398
www.nmcpttc.org

Rocky Mountain Region
Director: Sandra Mark
Colorado School of Mines,
303-273-3107
www.pttcrockies.org

South Midcontinent Region
Director: Charles Mankin
Oklahoma Geological Survey,
405-325-3031
Coordinator: Michelle Summers,
405-325-3031
www.ogs.ou.edu/pttc.htm

Southwest Region
Director: Robert Lee,
Petroleum Recovery Research
Center, 505-835-5408
Coordinator: Martha Cather,
505-835-5685
http://octane.nmt.edu/sw-pttc

Texas Region
Director: Scott Tinker,
Bureau of Economic Geology
University of Texas at Austin,
512-471-1534
Coordinator: Sigrid Clift,
512-471-0320
www.energyconnect.com/pttc

West Coast Region
Director: Iraj Ershaghi
University of Southern California
213-740-0321
Coordinator: Idania Takimoto,  
213-740-8076
www.westcoastpttc.org

Michigan Satellite
William Harrison III, W.Mich. Univ.
269-387-5488
http://wst023.west.wmich.edu/pttc.htm

Permian Basin, UTPB CEED
Bob Kiker,
432-552-3432
www.energyconnect.com/pttc/pb/

Bottom Line: Medicine Bow Operating Co. implemented a focused, well-failure reduction program in their waterfloods, and gas well operations in southwest Kansas and the Oklahoma Panhandle. The company was experiencing excessive well failures, as many as 112 per month from 200 wells. The team effort, involving company personnel and pump, rod and chemical vendors, focused on getting the metallurgy right, operating lift equipment under proper load conditions, and treating with the right chemicals at appropriate levels. Well failures dropped quickly, rapidly recouping the (approximately) $300,000 investment.
Some three years later, well failures are now stabilizing at about five per month, which represents a 96% decrease. Operating costs have been reduced more than $1.5 million per year, which includes savings in direct operating costs and labor. Lessons learned are being applied in other divisions of the company, and there is competitive advantage in acquisition opportunities, when one knows how to lower operating costs significantly.

Optimized flow device eliminates CBM lift eqiupment, reduces costs

Bottom Line: Marathon Oil Co. successfully deployed new tools to convert coalbed methane (CBM) wells that were being mechanically dewatered to flowing gas producers. By eliminating downhole pumping equipment, variable and fixed LOE costs decreased dramatically - from an average $875 per month to $15 per month. Considering installed cost, the tools paid out in about seven months. Prior artificial lift equipment could be deployed in other CBM wells or sold

for salvage. Some lost production was avoided with continuous, stabilized flow and elimination of water-entrained gas volumes that were ultimately vented. In two examples, since prior failures with associated downtime were eliminated, about 2.7 MMcf per year of deferred production was saved. This $10,000 cash-flow benefit alone essentially pays for tool installation.

Fracture mapping and modeling optimize CBM fracture treatments

Bottom Line: Anadarko Petroleum Corporation employed advanced fracture mapping technology by using new, in-well tiltmeters and fracture modeling to optimize hydraulic fracture stimulation treatments in two coalbed methane (CBM) plays. The plays are in Utah's Helper Field and the Copper Ridge field of southwestern Wyoming. At Helper, data from tiltmeters proved that single-stage treatments could stimulate the entire multi-seam interval. Savings of $35,000 to $50,000/well were realized. At Copper Ridge, treatments were optimized to stay away from permeable water sands. Savings from reduced water production alone were $1.3 million in the first year. In addition, individual well treatment costs are lower, ranging from $100,000 to $150,000 less per well. Anadarko's cost savings in stimulations and disposal for the 16-well, Copper Ridge pilot program exceeded the actual costs incurred for fracture treatment.

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