Hydraulic Fracturing Test Site (HFTS)

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1 Hydraulic Fracturing Test Site (HFTS) > October 5, 2016 > Shale Exchange Pittsburgh, PA > October 5, 2016 > Presented by: Jordan Ciezobka, Manager R&D

2 Hydraulic Fracturing Test Site (HFTS) - Project Overview Ground Truth: Through-Fracture Cores In an $21 million project sponsored by a public-private partnership, GTI is collaborating with hydraulic fracturing experts from industry, academia, and government on a Hydraulic Fracturing Test Site (HFTS). Seed funding for concept development and strategy report provided by RPSEA 2

3 Goals and Objectives The primary goal of the HFTS is to minimize current and future environmental impacts by reducing number of wells drilled while maximizing resource recovery. Objectives Assess and reduce air and water environmental impacts Optimize hydraulic fracture and well spacing Improve fracture models Conclusively determine maximum fracture height Vertical tilt-meter response 3

4 HFTS Team Site Host Research Team Sponsors 4

5 Test Site Location - Extensive Nearby Science Data Data from 87 nearby wells made available to research team 11 new wells Test Site Area 6 Upper Wolfcamp 5 Middle Wolfcamp Test Site Area 2 Offset legacy wells Testing re-fracturing Whole Core Production Log Microseismic Dipole Sonic Log Petro Logs 3-D seismic LPI Leasehold LPI leasehold Laredo Acreage Reagan North corridor area UWC Hz MWC Hz 5

6 One-of-a-Kind Data Set Water and air sampling before and during fracturing, during flowback and production Comprehensive geophysical open-hole well logs in horizontal laterals image + quad combo Side wall cores 60 rotary and 50 pressurized Diagnostic fracture injection tests 14 vertical, 4 horizontal Cross-well seismic survey between 4 wells, before and after fracturing Production and pressure monitoring during fracturing and ongoing Radioactive and chemical tracers Colored proppants Microseismic and tilt-meter monitoring Fiber optic coil tubing production logs Through fracture whole cores More 6

7 Through-Fracture Core Recovery Completed Slant Core Well Nearly 600 feet of whole core through two hydraulically fractured reservoirs Upper Wolfcamp Middle Wolfcamp CT scanned all cores Logged and cased well Quad Combo, including spectral gamma and image log Mass Spectroscopy analysis in entire slant lateral Core description completed Installed 8 isolated bottom hole pressure gages to monitor reservoir depletion through created fractures Image Courtesy: Laredo Petroleum 7

8 Through Fracture Core Highlights >Results challenge industry assumptions and understandings >Insights expected to increase resource recovery and spur new technology development Image Courtesy: Laredo Petroleum 8

9 Air & Water Monitoring Air quality was measured before, during, and after hydraulic fracturing operations 1,000ft upwind and 1,000ft downwind from HFTS pad to assess impact on local air quality. 5 groundwater wells within 2 miles of HFTS sampled for ground water quality before, during, and after hydraulic fracturing operations. Water Well Test Site Wind Direction Air Quality Sampling Locations No meaningful impact on local air quality Air quality during hydraulic fracturing, flowback, and completions did not significantly differ from baseline measurements. VOC levels measured during flowback were considerably lower than NIOSH time weighted average exposure limits (for BTEX). No evidence of subsurface migration of produced water or natural gas to aquifer No methane or BTEX measured in groundwater Conductivity and TDS increased during fracturing due to large volumes of water being withdrawn Aquifer chemistry returned to normal within 6 weeks 9

10 Going Forward Continue field data collection Pressure Monitoring, Production Monitoring, Environmental Sampling Expand testing and analysis program as budget becomes available given new participants Complete core description & develop methods for proppant detection in fracture surfaces and drilling sludge in core sleeves Continue advanced analysis and integration of data Redefine the understanding of hydraulic fracturing via the research collaboration of world class subject matter experts Elevate the learnings of HFTS and extrapolate the environmental impacts of precision well spacing and increased hydraulic fracturing efficiency on ground water resources to West Texas basins Provide valuable scientific findings that inform the general public, policy makers, regulators, and operators to ensure prudent resource recovery as a key element of US energy security 10

11 HFTS #2 West Texas experiment in the Permian Delaware Basin HFTS #2 Test site host will be BHP Billiton HFTS #1 Technology Focus Area Experiment will be performed over the next 12 months Public-private JIP Mechanism similar to HFTS #1 Focus will be on core well of created hydraulic fractures Estimated Cost = $20 million HFTS #2 Technology Focus Area Image Source: EIA 11

12 Contact information: Jordan Ciezobka Manager R&D Office 12