Coalbed Methane / Unconventional Gas

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Technology Information Session

2007 09 11

CBM Complex Well Technology Joint Industry Project Proposal

Call For Project Participants  Project Tasks  Presentations

Tuesday, September 11, 2007
11:30 a.m. - 12:00 p.m. Registration & Lunch
12:00 p.m. - 14:00 p.m. Information Session

Nexen Annex (+15 level)
801 - 7th Ave SW, Calgary, AB

Invitation

PTAC Petroleum Technology Alliance of Canada, in collaboration with a number of Canadian and International CBM stakeholders, invite you to attend a Technical Information Session to review the specifics of the proposed Joint Industry Project, (JIP) for the development and transfer of best practices for optimized Coalbed Methane (CBM) exploitation with complex, (non-vertical), well technology.

Background

It is generally recognized that the unconventional production of gas from coal will become an important supply source in many basins globally, in efforts to meet future demand and to offset production decline of conventional reserves. Based on responses from numerous Canadian CBM operators that attended an open "Complex Well CBM" best-practice exchange session in April 2007 hosted by Energen Resources and expressions of interest from active CBM operators outside of Canada (including Energen Resources, Samson Energy, Marathon Oil in the US, and Far East Energy in China); and with government support in the form of a seed grant, PTAC has undertaken to formulate, offer and administer this proposed JIP for CBM stakeholders globally.

OBJECTIVE

CBM exploitation with horizontal wells is still in the formative stages, and as illustrated and documented in the April exchange sessions, many common and serious challenges exist to the optimum application of this exploitation methodology. The intent of the proposed JIP is to provide a collaborative vehicle where operators can: network directly to exchange experiences; quickly advance up the steep learning curve; avoid errors encountered by others in similar settings in design, construction and operations; and quickly apply the technical/operational solutions defined by others. We plan to set up a JIP modeled after the world-renowned DEA-44 JIP on emerging Horizontal Well Technology from the 1980's. We are anticipating a minimum of 12 participants as the trigger participation level for undertaking the initial project Phase 1 tasks outlined below, with the expansion or addition of specific work tasks as participation levels and operational budgets expand. Under this format, the work tasks will be defined and prioritized by the JIP advisory committee consisting of participant representatives, one seat one vote, majority rules.

Complex Well CBM Challenges

Given the relative infancy of this exploitation method globally, the industry needs a reliable and validated medium for simple and direct experience exchanges and technical networking of professionals from various stakeholders and locals. This would benefit operational asset teams, and regulators, academia and social impact/environmental stakeholders globally. A generic metric of both good and bad well design, field construction and production operations issues would be extremely valuable to all involved, to ensure the asset team is employing the optimum designs and technical/operational solutions providing a standard benchmark of peer performance.

As exposed in the April exchange sessions, one of the biggest challenges faced by all operators in the wet CBM setting is related to pumping and intervention vis-à-vis coal fines. All revealed disappointment in the relatively short pump and related down-hole component's operational life in the coal-fines environment. The observed loss of production response to numerous well interventions is a serious concern to all participants at the April exchange sessions. Another common challenge relates to optimum clean-up, stimulation and water lift options, both in vertical and horizontal well applications. All operators expressed concern over the increasing challenges related to charge water source, water production and disposal.

We have defined three proposed tasks for Phase 1 of the JIP. These will be reviewed, refined and approved by the advisory committee at the first committee meeting once the minimum participation level is attained. Note; all deliverables will be owned exclusively by participants for a minimum term following the completion of each JIP project phase. We anticipate reaching the minimum, trigger participation level of 12 participants by October 2007, with all Phase 1 work tasks completed and delivered within 12 months.

Task #1, JIP Website

The JIP proposes the development of a globally accessed website administered by PTAC, with both publicly accessible and participant-only accessible modules. The public portion would provide background, on-going status, participant application information, participation contract form, deliverable ownership details etc. The participant portion would provide: ongoing status of all tasks; direct access to all documented operational well histories (task #2); ongoing results of the produced/disposed water/coal-fines monitoring program (task #3); and a library containing documents or links generated by an ongoing global "Literature Search" on all relevant CBM technical papers, articles and conference proceedings. This segment would also house the bulletin board and networking web-space for direct experience exchange, Q&A site etc.

Task #2, Document Operational Field Experience and Identify Generic Best Practices

It is intended to generate a library of detailed Well Histories documenting actual field experience, problems encountered and solutions found or anticipated on the next application in the field. A common, detailed well history form will be used on all field cases. No confidential information is sought or documented, (eg; well names, exact location, unique well identifiers, operator or prime contractors); however, all the generic reservoir data and setting circumstances are exposed, (e.g.; pressure, coal rank, thermal maturity and quality, cleating quality etc.). At a minimum, each well history would contain a planned versus actual time/depth/cost curve, a daily operations diary, a schematic of the basic well plan and completion, a display of the first six month actual production performance versus anticipation, and a detailed review of operational activities and challenges experienced during well construction, stimulation, intervention and initial production. This case history library will;

• act as the primary field data source to define emerging best practices,
• deliver a base set of real field examples for generic well design, resource dedication (time costs estimates etc), requirements, and performance metrics for other operators intending similar applications,
• deliver an independent assessment of the actual well design, construction and operational performance, or technical audit, provided to the host operator, generated by an independent, unbiased and experienced investigator exposed to similar efforts by other operators in comparable settings,
• provide an independent and detailed assessment of any novel or special design or operational aspects of the specific application, (eg; the field performance of a new pump design, response to an anti-scaling application, the challenges and behavior of a new junction installation etc.).

Task #3 Coal Fines and Produced/Disposed Water Study

A primary challenge faced by everyone is related to the makeup, source and behavior of coal fine contaminated water and its disposal. We propose that a detailed chemical and mineralogical study be conducted on selected/documented target well effluent during drilling and production to help answer some of the questions regarding what the material is, where and how is it generated and produced, whether the chemical make-up of produced water varies over well life-cycles, and if this the same type of material in all wells! Finally, are there any well construction/completion practices available to mitigate the detrimental effect of this material?

Disposal of produced water can also be another key issue, in respect to both overall project economics and environmental sustainability. We propose a detailed review of the various water plant/disposal tactics currently being employed as well as a comparison of the varied regulations pertaining to this issue within the differing jurisdictions where wet CBM exploitation is being pursued.

This invitation is being issued by PTAC to all known stakeholders in Canada, and by PTTC to all known US based stakeholders. All participating operators would be asked to contribute to the project in three ways:

1. Financial resources via a one-time participation fee to manage, conduct and report on the JIP pursuits.
2. Involvement and guidance of a senior technical staff representative on the member advisory committee to insure that the pursuits undertaken by the JIP are relevant and technically viable, and of direct application by the participants. This will be accomplished by staging advisory committee meetings at the start to confirm and formalize the JIP work statement, JIP staff and resource assignments and task time-lines, and at pre-defined milestone dates to review progress. We anticipate 3 half day meetings per project phase. An open industry forum may also be considered to mark the end of Phase 1 and provide a direct networking opportunity for all participants.
3. Access to selected wells for the generation of well histories, effluent study etc. The project management team will send an investigator to independently review all relevant well files and interview key technical staff directly involved in the field experience. A draft well history will be provided to the host operator for their review, edit and final approval to allow the release of the documents to the well history library. The well history generation includes an overall independent assessment (technical audit) of the well's design, construction and production, including any recommendations for improvement provided to the host operator. The host operator defines which well(s) are to be documented and has sole power of well history/technical audit edit and release approval.

THE OPPORTUNITY

The one-time participation fee for the first project phase is anticipated to be around $20-$25K, a formal and detailed work-statement and task/project budget will be presented at the kick-off meeting. PTAC will administer the JIP and H-tech and BOE Solutions will function as the Project management team and undertake the specific work tasks.

WHO SHOULD ATTEND

• Reservoir Engineers and Managers
• Production Engineers and Managers
• Engineers and Managers involved with Unconventional Gas
• CBM Experts
• Gas Producing Companies
• Service Provider Companies
• Others, Academia, Regulators etc.

Pre-Registration Fee Complimentary to all participants (until September 10, 2007)

Onsite Registration Fee (September 11, 2007)

PTAC Members	$25.00 (+GST)
Not-For-Profit Associations	$25.00 (+GST)
Non-Members	$75.00 (+GST)

Please be advised that PTAC reserves the option to charge $ 25 + GST to PTAC members that register and do not attend, unless notification of cancellation is received by PTAC a minimum of 24 hours in advance of the TIS

To obtain more information, please contact

Bob Knoll H-tech Petroleum Consulting Inc Phone: 403-239-4168 bobknoll@shaw.ca

Robert Jackson BOE Solutions Inc Phone: 403-547-2416 rajackson2002@shaw.ca

 

DISCLAIMER

PTAC is only a facilitator for these presentations. PTAC makes no representation regarding ownership or quality of any technology described by a presenter, or generally as to the contents of a presentation. PTAC does not endorse any presenter nor the technology presented. Please use your own judgment. PTAC trusts that each presenter will engage in fair trade practices, but does not police or otherwise enforce this policy in any manner.

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For further information,
please contact:

Lorie Frei, PTAC
Event Coordinator
phone 403.218.7707
fax 403.920.0054
lfrei@ptac.org

© PTAC 2007

2007 11 23 LF