Hydraulic Fracturing Test Site (HFTS) Update > USTDA Workshop Beijing, China > December 3, 2015 > Presented by: Eddie Johnston, VP Research, GTI
Program Objective > The mission of HFTS is to increase shale environmental safety and stimulation effectiveness. > Includes a ground water and air monitoring program to measure environmental impact. > This will be accomplished through the evaluation and development of new methods and technologies that reduce material and energy inputs (fewer wells drilled), greater reliability and safeguards, and reduced environmental footprint. 2
HFTS Participating Companies >US DOE/NETL Government Sponsor >Laredo Petroleum Test Site Host >Halliburton >CoreLab >Encana >Total >Devon >Energen >Discovery Natural Resources >GE Oil and Gas Each participating company has a focal point that embodies the advisory team, however SME s from each participating company drive discussions and ideas that shape the overall program 3
HFTS Test Program: Research Objectives > Assess Environmental Impact (emissions and water) with respect to Hydraulic Fracturing multiple wells and +100 hydraulic fractures. > Determine optimum well spacing based on fracturing efficiency. Well spacing (industry-wide) is likely too close; optimum spacing will save drilling of 1000 s of wells with tremendous positive environmental impact. > Evaluate inter-well interference in a chevron configuration with wells spaced 660 apart in Upper and Middle Wolfcamp formations, with diagonal offsets of 400. > Understand stimulated rock volume & reservoir depletion over time. > Identify and evaluate the distribution and effectiveness of geological fracture barriers. > Evaluate pressure front barriers created in stimulation sequence. > Test alternative frac designs in different wells in a relatively consistent geological setting. > Test production performance by stage/perf cluster post stimulation 4
Environmental Objectives Assess Environmental Impact (emissions and water) with respect to Hydraulic Fracturing multiple wells and +100 hydraulic fractures. Mature Producing Area Will Focus on HF operations Baseline water pre and post frac. (Laredo has water data) Baseline Air pre-frac; measure air during frac-baseline post frac. 5
The Problem We re Trying to Solve is an Important One Onshore Well Drilling Well Drilling Doubles Footprint Expands The Most Environmentally Friendly Well is the one you do not Drill. Year 6
7
Laredo Petroleum Our Host Site Partner 8
Location Approximately $100 million of data with Partner Laredo Petroleum. Wolfcamp Formation Focus 9
Reagan North Production Corridor Oil Gathering Station Oil Takeaway Pipeline Oil Gathering Line Gas Lift Compression Facility Gas Gathering Line Water Recycling Facility Gas Takeaway Pipeline 10
Test Site Well Information > 11 well pad currently being drilled in Reagan County > Targeting Upper and Middle Wolfcamp, chevron configuration > Wolfcamp depth ~7,500 > All wells are 10,000 laterals to be completed with 36 stage completions 11
Proprietary Earth Model Confidential 12
Well Spacing Confidential 13
Through Fracture Cores 14
Slant Core Well Workshop and Field Trip Day long workshop in Midland to go over core well details including well trajectory, coring program, logging, and reservoir pressure monitoring system Field trip to Sugg Ranch to see operations. Real time microseismic in progress including tracing program and proppant visual indicators. 15 15
Field Data Acquisition Schedule Field Data Acquisition Task Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Water Sampling and Monitoring Air Monitoring Open Hole Logs (6Sm, 6SU) Vertical Pilot -7SU (Logs, Cores, DFIT) Horizontal Well DFIT (4SU, 6SM, 6SU, 8SU) Cross Well Seismic (Across Vertical Wells) 1 2 Hydraulic Fracturing Microsesimic Monitoring Fracture Tracer Program (RA, oil and water) Horizontal Well Pressure Monitoring Fiber Optic Coil Tubing (fracture arrivals) Production Logs (FBCT) Slant Core Well (drilling and core recovery) Reservoir Pressure Monitoring Feb 16 Mar 16 16
Comprehensive Field Data Acquisition > Microseismic and tiltmeter survey > Oil tracers/ra tracers > Bottomhole pressure gages during production > Production logs > Fiber optics through coil tubing > Vertical and horizontal OBMI logs > Pressurized sidewall rotary cores > Open Hole micro DFIT and horizontal well toe DFIT analysis > High resolution cross well seismic through stimulated interval > Full core through a stimulated interval > Reservoir pressure measurement post completion > Water sampling and air sampling program 17
Environmental Focus 18
HFTS Environmental Monitoring: Status of 11/23/2015 Project Tasks that Require Water Sampling and Analysis Task 11. Microbial Characterization Down-hole transformations that affect gas quality and facilitate corrosion Effects on water impoundments and management Task 12. Environmental Monitoring Groundwater Quality Produced Water Characterization (Composition and Chemistry) Air Quality 19
Microbial Characterization: Background Pathways of Interest Effects of biofilm growth on corrosion rates Microbially Influenced Corrosion Microbially influenced corrosion impacts infrastructure integrity and safety Organisms adapted to high pressure, temperature, salinity Sulfate reducing organisms of high concern due to well water constituents Transformations impacting gas quality Acid gas production (CO 2 ) and sulphidogenesis (H 2 S) Decrease in formation permeability Precipitation of carbonates/sulfides or biofilm growth Biofilm and microbial deposits 20
Environmental Water Monitoring: Background Pathways of Interest Subsurface transport of gases to groundwater Suchy and Newell: Kansas Geological Survey Subsurface transport of produced water to groundwater Transport of surface releases of produced water brines or chemicals to groundwater Freshwate r Aquifer Pathways of Little Relevance Transport to streams / rivers from the site Transport to water bodies from the site Re: HFTS site is in a remote, arid region. Baseline Data on Groundwater Provided by Laredo Target Oil & Gas General and inorganic constituent data (normal Texas well water) Of interest: Sulfate levels in nearest 5 wells are at 80-260 ppm 21
Environmental Monitoring: Air Quality Objectives Determine degree to which emissions from the HFTS site change ambient air quality of locations that represent nearby residential areas. Emissions from diesel engines and equipment Industry specific emissions HFTS Field Site 22
Environmental Water Monitoring & Microbial Characterization: 5 Sample Locations Ground Water before (1), during (2), after (2) hydraulic fracturing 5 Sentinel wells surrounding the 11 well test pad Ability to detect migration of NG or produced water constituents into Edward- Trinity aquifer during or after to hydraulic fracturing activities Impoundment Water Weekly during hydraulic fracturing Frac Pit 7-156 (Fresh), Frac Pit 7-197 (Fresh), and Poseidon Tank (Treaded Produced water) Understand on-site water management practices and sources of microbiological populations and energy sources Frac Pit 7-156 (850,000 barrels fresh water) 23
Environmental Water Monitoring & Microbial Characterization: 5 Sample Locations Frac Fluids #6SM #7SU #4SU beginning, middle, and end of hydraulic fracturing for each well Frac tanks combination of water, proppant, chemicals Detect microbial communities and chemical constituents going down to identify potential transformations leading to corrosion / H2S Flowback / Produced Water #6SM #7SU #4SU Water Sampling Day 0, 5, 9, 14, 36, 90, 120, 365, 1.5 years How have microbial communities changed over time, mass flow calculations for transformations down hole. Life cycle analysis for water quality. 4 horizontal cores - pressurized (2) Upper Wolfcamp (2) Middle Wolfcamp Are there resident microbial communities before water is introduced through HF 24
Analytical Analysis: Ground and Produced Water > Analytics and Data Collection General Chemistry: ph, conductance, alkalinity, Total dissolved solids Hydrocarbons: Methane, total organic carbon, total petroleum hydrocarbons, Oil and Grease, Benzene, toluene, ethylbenzene, xylenes (BTEX) Selected cations and anions: calcium, magnesium, sodium, potassium, boron, chloride, fluoride, sulfate, sulfide, nitrate, nitrite Metals: iron, zinc, copper, manganese, arsenic, barium, nickel, cadmium, lead, chromium Volumes of water injected and cumulative volume of produced water generated at each of the three wells. Metagenomic Analysis: Targeted and shotgun DNA sequencing of all bacteria and archaea present in source and Flowback water 25
General Approach of Air Monitoring > Focus on constituents of concern that could be released to ambient air at increased levels during hydraulic fracturing and production. Potential sources: Engines during the completions, well pad operations, fluids management, etc. > Direct ground-level measurements of air quality parameters > Before - During - After Completions Phase for the HFTS horizontal wells. > Sampling in Midland Texas for referential context and compare HFTS air quality to Environmental Protection Agency (EPA) collected data in Dallas and Houston. North Reagan County, Texas Hydraulic Fracturing in Reagan Texas Midland, Texas Mobile air quality unit 26
Example Hydraulic Fracturing Activity at the Center Pad Wind Direction: From the NE Sampling Locations (red circles) 1,000 ft. from Well Pad Wind Direction Wind Direction Air Quality Sampling Locations 1 Mile 27
Environmental Monitoring / Air Quality >Parameters Measured NOx Ozone PM 10 H2S Methane VOC BTEX >Weather Information: Wind Speed and Direction, Temperature, Humidity, Barometric Pressure, etc. 28
In Summary >This program is the most comprehensive collaborative field experiment conducted in shale to date >Baseline environmental measurements of this brown field development are within expected tolerances >Project should provide comprehensive learning and correlation of well spacing optimization and environmental footprint impacts 29
GTI is a company that solves important energy challenges, a company that truly has Contact information: Kent Perry Executive Director 847-768-0832 kent.perry@gastechnology.org Jordan Ciezobka Senior Engineer, Stimulation 847-768-0924 jordan.ciezobka@gastechnology.org the energy to lead Iraj A. Salehi Senior Institute Scientist 847-768-0902 iraj.salehi@gastechnology.org 30