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New Life for an Aging California Field

Warren Resources Inc. has embarked on an active redevelopment program in the Wilmington Townlot Unit (WTU) and adjacent North Wilmington Unit (NWU) in the central part of supergiant Wilmington field. These properties were originally unitized in 1973 by majors and, like most of California's mature fields, are now in the hands of an independent. Plans are to drill more than 500 wells in the next few years, targeting development in several reservoirs. Drilling will be done from cellars, which places wellheads and facilities below ground level. Estimates are that the WTU has produced only 20% of the estimated 727 million bbl of original oil-in-place, leaving an average remaining recovery potential of 228,000 bbl/well. Warren Resources estimates that WTU could yield another 92 million bbl of oil if the company were able to attain a 32% recovery factor.

Warren Resources took over operation of WTU in March 2005 and NWU at the end of 2005. The units produce oil mainly from the Upper Terminal formation at 4,000 ft and the shallower Ranger and Tar formations, all Tertiary in age. Since acquisition, the company has hiked WTU production from 375 bopd to more than 2,100 bopd. This increase results from additional production from new wells drilled and completed in the Upper Terminal, Ranger and Tar formations. The strategy at WTU is to develop seven-spot waterflood patterns in the Ranger and Upper Terminal formations. NWU now produces close to 400 bopd.

Warren Resources has budgeted $68 million (74% in WTU) in 2007 for drilling and infrastructure

development. This includes 34  producing and injection wells at WTU, and 14 new wells and 12 recompletions at NWU. The company plans to construct as many as five doublewide drilling cellars at WTU that can each accommodate two rows of wells in open cement-lined trenches. A skid-mounted drilling rig allows for rapid rig moves, and all fluid production and clean water reinjection occurs at wellheads in the cellars.

Tar formation horizontal wells: As of early May, the company had drilled eight Tar formation horizontals. The Tar formation was not previously exploited with secondary recovery. The first horizontal completion, which occurred in August 2006, had a 1,200 foot lateral and initially produced some 150 bopd. Modern logs from waterflood development drilling in the Upper Terminal formation is helping Warren Resources identify additional Tar formation wells. As of early May, the eight horizontal wells were averaging 100 bopd with a water:oil ratio (WOR) of 2, without any pressure maintenance. There are another 10 horizontal drilling locations already identified. Once the initial group of horizontals is developed, the company will evaluate the potential for additional horizontals, including in other potentially productive sands.

Upper Terminal formation: As of May 2007, the new Upper Terminal wells are averaging about 25 bopd. Some Upper Terminal wells drilled in the north area of the field have been below average production with very low WORs. Effects of water injection support, which is not evident yet, are expected within the next 12 to 24 months.

Ranger formation: Warren Resources drilled and completed its third Ranger formation well in the 1st

quarter of 2007. Currently, the Ranger wells are producing an average of 40 BOPD with a WOR of 20. There are plans for an additional 5-10 Ranger wells in 2007.

Excerpted from "Central Wilmington Oil Field Due for Denser Development," Oil & Gas Journal, Feb. 19, 2007, pp. 36-37; and press releases (dated 10/2/06, 12/14/06, 5/4/07) by Warren Resources.

 

 


 

Power From
Stranded Gas Saving California Leases

A DOE-supported project (Oil Field Flare Gas Electricity Systems or OFFGASES) is demonstrating how distributed power generation from stranded natural gas reduces power costs and is making a difference in saving marginal leases. Results from four field demos with fuels of varying energy content/quality are demonstrating the possibilities.

  •  High-Btu gas (1,600 Btu/scf): boosted oil production in its three-well marginal oil field from 10 to 23 bopd.
  • Medium-Btu gas (not meeting pipeline quality requirements): now producing 150 bopd in a 19-well field that had been at risk for abandonment.
  • "Harsh" (contains naturally high levels of N2, CO2, H2S) gas: brought into compliance with air emissions regulations by scrubbing hydrogen sulfide from the gas using a patented sulfur-treating system.
  • Ultralow-Btu (as little as 15 Btu/scf): Just to flare it, producers have to spike it with purchased natural gas. Tests using FlexEnergy's Flex-Microturbine, which uses catalytic combustors, are ongoing. While the microturbine is working, improvements are still needed and testing continues.

View further information in DOE's Techline online at www.fe.doe.gov/
news/techlines/2007/07061-Creating_Energy_from_Waste_
Gas.html
.

Graphic courtesy of Warren Resources (www.warrenresources.com)

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July 2007