Table of Contents

Vol. 7, No. 1
1st Quarter 2001

Technology Happenings at RMOTC

The Rocky Mountain Oilfield Testing Center in Casper, Wyo., provides industry an opportunity to try new things, or refine existing technologies, in an operating oil field. Some recent projects there illustrate the diversity of what is happening at NPR-3.

Below-the-Reservoir Production Facility. Omega Oil Company, Inc. (Omega) recently completed a feasibility study and economic screening for construction of a below-the-reservoir production facility at RMOTC in the Shannon formation. The Shannon reservoir is characterized as a low pressure, shallow, tight sandstone with a high degree of compartmentalization. Closely spaced horizontal wells provide superior access to the individual compartments within the reservoir compared to traditional vertical wells. The feasibility/ screening study evaluated the economics of applying Omega's proprietary technology for producing crude oil from beneath the reservoir by multiple horizontal wells. Higher recovery rates are due to the high density of well bore placement and reduction of well bore back pressure, maximizing the differential pressure and enhancing oil flow.

Based on the results of the feasibility study, Omega is proceeding further with a full engineering study. The project calls for drilling about 40 well bores (about 1,000 lineal feet of well bore, 4-3/4 inches in diameter) within the Shannon production zone. The well bores will produce to a wellhead set 1,000 feet below the surface in a drill room excavated in the shale formation and lined with cement to prevent entry of unwanted formation fluids and gasses. The drill room will be served by a 10-foot diameter shaft, bifurcated into large and small compartments; one for primary hoisting and the other for utility conduits.

If successful, this development approach can reduce capital investment and operating costs, increase recovery rates, and reduce the environmental impact of producing shallow crude oil and natural gas. The reduced footprint makes it particularly attractive from an environmental perspective.

For more information on the Omega project, contact Doug Tunison at 307-261-5000 extension 5006, or via email at: Doug.Tunison@rmotc.doe.gov.

Airborne Survey for Hydrocarbon Detection. Electro-Seise, Inc. (ESI) of Ft. Worth, Texas, recently completed an industry consortium-sponsored demonstration of its reservoir mapping technology at NPR-3. The technology is a passive airborne system that identifies and quantifies hydrocarbons-in-place through the use of micro-gravity sensors operated at specific frequencies to identify rock density. Data are generated and evaluated during a precise flight pattern over the designated area. The fly-over is usually performed at night to reduce interference from the sun's influence, at a consistent altitude of 2,000 ft. above the local terrain, in a static level pattern. Should the aircraft deviate more than 50 ft., the data gathering computers shut down to preserve the integrity of the data generated.

The objective of the demonstration was to prove or disprove the "stand-alone" capabilities of the Electro-Seise system. The field test was performed in conjunction with RMOTC personnel and the data interpretation was performed in the RMOTC Casper office. Since the test's objective was to evaluate the "stand alone" capabilities of ESI's system, and to ensure unbiased data analysis and interpretation, ESI was not allowed access to prior data or mapping.

The initial interpretation revealed a previously undetected thrust fault, several other normal faults, presence of hydrocarbon-filled porosity in three productive zones and a previously unknown potential producing anomaly in the Ten Sleep formation. It also identified where water had encroached in wells during a previous water flood. A tentative structure map was made for three productive horizons along with several diagnostics isopachs. The final field report is being prepared in conjunction with RMOTC Project Manager Ralph Schulte, and will be available through the RMOTC website (http://www.rmotc.com).

For more information, contact RMOTC toll free 1-888-599-2200 or Electro-Seise, Inc., 4454 Fiesta Street, Ft. Worth, TX 76133, phone 817-263-6602.

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OTC—Offshore Event of the Year

More than 43,000 people are expected at the Offshore Technology Conference (OTC) in Houston on April 30 through May 3. In addition to the 1,800+ exhibiting companies, attendees can attend concurrent technical sessions and topical luncheons. Key topics include the future of ultra-deepwater exploration and production and the convergence of e-business in the upstream oil and gas industry. Obviously, the recent catastrophy in offshore Brazil will have some lessons to be learned. A topic of special interest to independents in a Wednesday afternoon May 2nd session is "Deepwater and Other Trends in the Gulf of Mexico and New Plays in the Eastern Gulf."

For more information about OTC, visit the website at http://www.otcnet.org or 972-952-9494.

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Progress of An Upstream ASP Provider—GeoNet Services.com Inc.

Late last year, Information Resources Group (IRG) selected GeoNet Services.com Inc. (GeoNet) as one of their Top 100 Application Service Providers (ASPs). GeoNet provides a broad spectrum of on-demand software applications, remote computing and data management services, as well as a large and growing knowledge database, accessible over the Internet. IRG is a business-to-business firm that specializes in strategic plans to maximize the benefits of the information technology business intelligence. Factors considered in the award included: software application/content partnerships, percent of revenue derived from ASP services, length of time it took the ASP operation to become profitable, length of time the organization has been offering services and the number of subscribers. In a similar recognition of GeoNet performance and potential, the Houston Technology Center, a non-profit corporation focused on starting and growing emerging technology companies, selected GeoNet as a client company.

GeoNet delivers software tools on a usage basis via the Internet. Some studies have indicated that by leasing an application from an ASP, customers save between 33% and 53% over purchasing and managing the hardware and software for the application themselves. Users also have access to a broader range of software than they could possibly have through the conventional software purchase model. GeoNet offers software in several discipline areas, including: geology and geophysics, petrophysics, reservoir engineering, drilling engineering, completion and production engineering, and process and facilities engineering—and the list of software vendors continues to grow. Several vendors have "introductory" or “promotional” offers to further stimulate user interest.

Visit Geonet's website (http://www.petris.com) to see what's available and how it might work for you. While there, peruse the "knowledge database" that GeoNet has compiled. Ever wondered what software applications were available? The knowledge database lists 1,984 software applications—one should be able to find what they are looking for through that listing.

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GTI & DOE Study Commercial Feasibility of Laser Drilling

Gas Technology Institute (GTI), the U.S. Department of Energy's National Energy Technology Laboratory (NETL), and its partners have begun work to further examine the commercial viability of drilling using high-powered lasers. This project is a continuation of GRI's initial two-year basic research study at the Colorado School of Mines. The basic research project examined the feasibility, costs, benefits and environmental impact of applying military-developed laser technologies to drill and complete natural gas wells. Project partners include the Colorado School of Mines; Argonne National Laboratory (Laser Applications Laboratory); and industry partners Petroleos de Venezuela, SA, and Halliburton Energy Services.

The technical basis for this new project lies in the recent technical advances of improved materials characteristics in optical fibers and coiled tubing, and in the availability of lasers with enough power to cut rock. Over the next year, GTI will focus on three areas, including:

• Laser Cutting Energy Assessment. Results from GRI's initial investigation determined that calculations done twenty years ago significantly overestimated the energy required to spall (break), melt or vaporize rock. However, the initial GRI study was not designed to quantitatively determine these limits through empirical methods. The proposed study will determine the correct energy requirements, both empirically and theoretically.
• Variable Pulse Laser Effects. Pulsed lasers have been used for better cutting performance in several applications, particularly in cutting steel. With rock, there is a high probability that cutting with pulsed lasers will also have a greater cutting effect, as the pulsing action should flex and break grain-to-grain contacts.
• Drilling in the Presence of Fluids. Industry advisors consider the problems associated with drilling in a "weighted" fluid environment to be a crucial barrier for success of laser drilling technology. The technical challenge is to determine whether too much laser energy will be required to vaporize and clear away fluid. Initially, research will be conducted to determine the change in energy required to remove material from water-saturated rock specimens as compared to corresponding dry rock samples.

Beyond 2001, part of the R&D effort will address using lasers for downhole well completion and stimulation. This would allow perforation into producing formations to start the flow of hydrocarbons without removing the downhole assembly, thus significantly reducing time and expense.

Check GTI's website http://www.gastechnology.org for updates on R&D progress. For more information, contact Jeff Gavin, GTI, 847-768-0937 or Jeff.gavin@gastechnology.org, or William J. Gwilliam, DOE, 304-285-4401 or WGWILI@netl.doe.gov.