Why Mines is a Source of Petroleum Technology Investment Opportunities

Transcription

1 Why Mines is a Source of Petroleum Technology Investment Opportunities Dr. William W. Fleckenstein Enercom Oilfield Technology & Innovation Day August 17, 2017

2 Technology Investment Opportunities 2 1. Funding for an early stage startup 2. License Mines technologies 3. Traditional funded research

3 World Class Research Facilities 3 More than $230 million has been invested in new buildings, facilities and other capital investments between In addition, the $50 million CoorsTek Center for Applied Science and Engineering will be completed in two months. Plus the Edgar Experimental Mine

4 Focus On Technology Development 4 $63.8 million - total research awards in 2015, roughly half funded by non-federal sources Materials Science Program - an atom probe Colorado Center for Advanced Ceramics

5 Student And Faculty Aspirations are Changing 5 Demand for entrepreneurial and innovation experiences Facebook and Google anyone? Mines Makerspaces SpaceX Hyperloop pod competition

6 Changing the Industry Landscape with Emerging Technologies at Mines 6

7 Fleckenstein IP 7 1. Method and Apparatus for Testing a Tubular Annular Seal (US 9,624,764) Annular Casing Seal Test (ACST) 2. Downhole Tools and Methods for Selectively Accessing a Tubular Annulus of a Wellbore (US 8,991,502) - FracOPTIMAL 3. Downhole Tools and Methods for Selectively Accessing a Tubular Annulus of a Wellbore (US 9,562,419) FracOPTIMAL 2 4. Method and Apparatus for to Rotate Subsurface Wellbore Casing (Patent Pending) Downhole Rotator

8 The First Opportunity FracOPTIMAL2 8 Multistage hydraulic fracturing of horizontal wells is at the heart of the shale development. Two primary methods of multistage fracturing are used: Plug and Perf Frac Sleeves Frac Sleeves have been used less frequently because of this: FracOPTIMAL was designed to provide a single sized ball sleeve with limitless number of stages. It was a Startup that made money but had a design flaw a flapper FracOPTIMAL2 overcomes the flaw and competes with the Perf and Plug

9 FracOPTIMAL with a Flapper 9 Flapper Seals Seals Seals Open Port to annulus Open bore thru tubular Spring Closed bore to tubular annulus Torsional Spring and hinge Locking Dog Spring loaded Open Port to annulus Open bore thru tubular Spring Closed bore to tubular annulus Torsional Spring and hinge Locking Dog Spring loaded Open Port to annulus Spring Open bore to tubular annulus Torsional Spring and hinge Locking Dog Spring loaded Weep hole Weep hole Weep hole Drop Member Compression Spring to recock tool, if it is not shifted Compression Spring to recock tool, if it is not shifted Compression Spring to recock tool, if it is not shifted Drop Member Catch or Release Mechanism Drop Member Catch or Release Mechanism Drop Member At a lower pressure and time as fluid is forced through weep hole, sleeve moves downward Drop Member Catch or Release Mechanism closed bore thru tubular Drop Member The sleeve snaps violently downward until it reaches its end position, when the locking dogs lock the sleeve in place and the spring loaded collet assembly recesses in a profile, allowing full ID of the sleeve for ball return

10 FracOPTIMAL2 no Flapper FracOPTIMAL2 uses a single sized ball. 2. Unique 2-pressure tool operation: 1. A high pressure is used to pass the frac ball through a sleeve until the correct sleeve is reached. 2. Once the correct sleeve is reached, a lower pressure, combined with time, is used to actuate the sleeve to the fracturing position. 3. The stage is then fracture stimulated

11 FracOPTIMAL2 Passes a Ball Ball approaches and lands in the sleeve. Drop Member 2. Operator applies a high pressure 3. Retaining fingers flex and the ball passes

12 FracOPTIMAL2 Actuates to Frac! Ball approaches and lands in the sleeve. Drop Member 2. Operator applies a low pressure and time 3. Hydraulic oil passes from one side of piston through orifice to the other. Sleeve moves down to frac position fingers cannot open. Ball is trapped 4. Why care? Multi-stage hydraulically fracturing is the single largest expense in shale development.

13 The Second Opportunity 13 In the US alone, 20,000-40,000 wells are drilled every year Nearly every one of these wells is drilled through an aquifer Citizens and regulators are demanding that the aquifers be protected. The aquifer is protected by cemented surface casing What assurance do you have that the casing is sealing off the aquifer? What about the seals at the bottom of casing in wells on directionally drilled pads, or exploration and offshore wells?

14 The Annular Casing Seal Test (ACST) Patent US 9,624, There is no test routinely run and accepted by regulators in use in the US to test the annular cement seal of surface casing. US BLM proposed a Cement Bond Log (CBL) with an assumed cost of $9000 per well to assess the annular surface casing seal protecting the aquifer. The proposal never became regulation, but public scrutiny of aquifer protection remains. The Annular Casing Seal Test (ACST) is cheaper and rig friendly ACST patent drawing

15 The ACST Operation Aquifer 15 Float Collar Test Pressure ACST 5 10 Shoe

16 The Competing Alternatives Casing Shoe Tests LOT & FIT 16 Casing Shoe Tests (there are two) Leak-Off Tests (LOT) are used to determine the ultimate strength of the formation below a casing shoe. Formation Integrity Tests (FIT) are used to verify the strength of the formation to a predetermined pressure expected during drilling this section. The problem is casing shoe tests (LOT and FIT) measures formation strength, not the annular seal. Investigation of the Plastic-Behavior Region in Leak-Off Tests, Allerstorfer, 2011

17 The Competing Alternatives Cement Bond Logs (CBL) A CBL can only be run above the effective bottom of the casing. Aquifer 2. Bond logs take longer and cost more 3. Bond logs are subject to more interpretation 50 The only cement test method that can confirm zoneto-zone isolation is a pressure test. Cement bond logs can give a reasonable estimate of bonding and a semi-quantitative idea of presence or absence of larger cement channels, but will not certify pressure or fluid isolation of a zone. George E. King, Apache Corporation ACST 12 July 2012

18 ACST Markets 18 Surface casing seal assurance to protect aquifers Deeper, intermediate casing seal assurance for well control Seal assurance and monitoring in injection wells

19 Can We Build It? Capstone 19

20 Can We Build It? 20 Meet Reed Baker PE Masters Student Ex NOV and Baker

21 Can We Test It and Detect a Channel? 21

22 More Opportunities in Pipeline 22 Downhole Rotator (patent pending) Application in downhole tractors Horizontal plug drill out assist Extended reach wells Pig Prop new method of proppant

23 Genesis of a Mines Startup 23 Dr. William W. Fleckenstein, PE (CA#1666) Faculty Member since years experience Petroleum Eng. Dept. Head ( ) SPE Distinguished Lecturer Drilling, Completion and Workover experience on over 200 wells Extensive IP Experience CTO of first Mines PE Startup (FracOPTIMAL) Chairperson of the $1.4 billion asset Credit Union of Colorado Collector of Enercom Bobbleheads?

24 Investment Opportunities 24 Funding for early stage start up Build and market ACST Support Design Teams to prototype: FracOPTIMAL2 Downhole Rotator Identify and promote promising technologies on campus SBIR participation License technologies Traditional funded research

25 Contact Information 25 Dr. Will Fleckenstein Petroleum Engineering Dr. Will Vaughan Director of Technology Transfer