Cantex Energy Corporation

Bruce Scambler, Chairman & CEO

LESSONS LEARNED - MISSISSIPPI LIME
3.50
Evaluation
How An Operator in The Mississippi Lime
is Optimizing Production Operations In Relation
To Gas Lift and Pumping from Below The Packer
To Determine possible Transferable Lessons
to the Bakken

choosing pumps to match your water flow

Cantex Energy Corporation

Bruce Scambler, Chairman & CEO
FOCUS OF TODAY

choosing pumps to match your water flow

FOCUS OF THIS SESSION
Factors considered in the operator selecting the right
pump technology to increase well performance and rate of
return
Using data to match pump performance over well decline
relative to pump type choice
Comparing the leading lift methods of ESP and Gas Lift to
establish the economic viability and usage over the well
cycle

Disclaimer
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Cantex Energy Corporation

Bruce Scambler, Chairman & CEO
What are you going to hear?
Producers have multiple requirements for
different solutions for Developing Midcontinent
Infrastructure better learn about all options
while the vendors are here .

Case study: Translated to oilfield speak

choosing pumps to match your water flow
Development of production well in E. Mississippian
completion Oklahoma.

Cantex Energy Corporation

Bruce Scambler, Chairman & CEO

Case study:
Bedford production well in
E. Mississippian
completion Oklahoma.

Oklahoma
Logan County Oklahoma

Local Topography and Water

Logan County Oklahoma

Local Topography and Water

Logan County Oklahoma

Keynote: What is it I have to say?

You need to test and measure the water flow rate and gas
available rates:
60-80% of Mississippian wells will start off using gas lift
Gas lift is a whole combined science in itself
1

Using Gas lift gets around the current Grid Electricity issues
constrained inelastic supply issue.
Check your water and gas flow rate regularly, at some stage
you will need to consider an alternate to gas lift like ESP
And if ESP does not do it, then there are beam pumps, jet
pumps, hydraulic pumps
So you need to know the whole gambit of lift technology

Keynote: What has changed..

Case study Results:
We have poor Availability of 3-Phase Electricity
throughout the play
Given you need 3 phase for the ESP pumps and
production - Oilman needs ..a local HV grid
electricity expert
Given you need 3 stage compressors and Gas
Lift data on production - Oilman needs ..a
field pump and compressor expert.

Keynote: Support to what I have to say!

Site
(w/transfer
pump)
AVG KWH

Gas Lift

*ESP (250 hp)

Jet Pump

30,000

180,000

60,000

Power demand

41 KW

248 KW

82 KW

Site HP

55 hp

330 hp

110 hp

40000
35000
30000
25000
20000
15000
10000
5000
0

Gas Lift

uses less field electricity

& can get around the bend

FOCUS OF THIS SEGMENT

Requirements for Solutions for Developing Midcontinent

Infrastructure

Tectonic Evolution
Examining why we have so much water
in production

Solution Step:
Evaluate a Paleogeographic Reconstruction

back 470 million years

A little while before we had

Paleogeographic Reconstruction by
Dr. Ron Blakey
Department of Geology,
electricity Northern Arizona University
Flagstaff, AZ 86011

Tobosa
Basin

Platform
Carbonates

Ancestral
Permian Basin

Ordovician
Shelf Margin

Ordovician
470 m yrs ago

Deep Water
Deposition

Ordovician
Shelf Margin

Deep Water
Deposition

Ordovician
450 m yrs ago

PALEOMAP PROJECT Used by permission

Ordovician
Shelf
Margin

Deep
Water
Deposition

Silurian
430 m yrs ago

PALEOMAP PROJECT Used by permission

Devonian
400 m yrs ago

Deep
Water
Depositi
on

Devonian
385 m yrs ago

Deep
Water
Deposition

PALEOMAP PROJECT Used by permission

Devonian
360 m yrs ago

Deep
Water
Deposition
PALEOMAP PROJECT Used by permission

Mississippian
345 m yrs ago

Deep
Water
Deposition

Mississippian
325 m yrs ago

Deep
Water
Deposition

Multiple stacked intervals separated by imbricate thrust

faults accommodates this large volume of deep water ,
carbonates, fine grained turbidite sands and shales

Compressive collision of
North America and South
America
involves several hundred
miles of foreshortened
section

Pennsylvanian
315 m yrs ago

Deep
Water
Deposition

Pennsylvanian
315 m yrs ago

Deep
Water
Deposition

Tectonic Evolution Study

Water will be made with production
Production will require moving additional fluids.
Potential for use of water aquifers (reduce the need for fresh water
during completions)

Introduction to Gas Lift

Gas Lift is usually an
ideal selection for Miss.
artificial lift
Gas lift is the form of
artificial lift that most
closely resembles the
natural flow process
Gas must be available,
either as production dissolved
gas
Purchase back from
purchaser from an outside
source, then

Gas Lift
a combined option of
phased surface compressor and
downhole equipment

Gas Lift Production Basics

In a natural flow well, as the fluid travels upward toward the surface,
the fluid column pressure is reduced and gas comes out of the
solution
The free gas, being lighter than the oil it displaces, reduces the
density of the flowing fluid and further reduces the weight of the fluid
column above the formation
This reduction in the fluid column weight produces the pressure
differential between the wellbore and the reservoir that causes the well
to flow
When a well makes water and the amount of free gas in the column is
reduced, the same pressure differential between wellbore and
reservoir can be maintained by supplementing the formation gas with
injected gas

Target Continuous Flow Gas Lift

Unloading the Well: that is pumping the well from the lowest
pumping point or Mandible
Need Relatively high pressure gas
Gas is injected downhole into the fluid column
The injected gas joins the formation gas to lift the fluid to
surface by one or more of the following processes:
Reduces fluid density and column weight = pressure differential
between reservoir and wellbore increased
Expansion of the injected gas - pushes liquid = further reduction of
the column weight, thereby increasing the differential between the
reservoir and the wellbore
Displacement of liquid slugs by large bubbles of gas acting as
pistons

Target Continuous
Flow Gas Lift
Unloading Sequence
(of continuous gas lift)
Start
Fluid level in tubing and casing
is at the surface
All gas lift valves are open
No gas injected no fluid
produced
Pressure to open valves is
provided by the weight of the
fluid in the casing and tubing

#1

Target Continuous
Flow Gas Lift
Unloading Sequence
(of continuous gas lift)
Gas injection into casing begins
Fluid is U-tubed through all the
open valves
No formation fluids being
produced pressure is greater
in the wellbore than reservoir
pressure
All produced fluids are from the
tubing and annulus
unload at a controlled rate to
avoid fluid damage to valves

Target Continuous
Flow Gas Lift
Unloading Sequence
(of continuous gas lift)
Fluid unloaded to the top (#5)
gas lift valve
The fluid is aerated above
this point in the tubing and
fluid density decreased
Pressure is reduced at top
valve as well as all lower
valves
Unloading continues through
lower valves
top

gas lift valve = (#5)

gas lift valve = (#4)
gas lift valve = (#3)
gas lift valve = (#2)

lowest

gas lift valve = (#1)

Target Continuous
Flow Gas Lift
Unloading Sequence
(of continuous gas lift)
Fluid level below valve #4
(second from top)
Injection transfers to valve #4
and pressure is lowered
Casing pressure drops and
valve #5 closes
Unloading continues through
lower valves
top

gas lift valve = (#5)

gas lift valve = (#4)
gas lift valve = (#3)
gas lift valve = (#2)

lowest

gas lift valve = (#1)

Target Continuous
Flow Gas Lift
Unloading Sequence
(of continuous gas lift)
Fluid unloaded to the top (#4) gas
lift valve all gas is being injected
through valve #4
Lower valves 1,2,3 remain open
A reduction in casing pressure
causes upper valves to close in
sequence

Target Continuous
Flow Gas Lift
Unloading Sequence
(of continuous gas lift)

Fluid unloaded to the top (#3)

gas lift valve all gas is being
injected through valve #3
Lower valves 1,2 remain open
A reduction in casing pressure
causes upper valves to close in
sequence

Target Continuous
Flow Gas Lift
Unloading Sequence
(of continuous gas lift)
Valve #2 open Point of Injection:
ability of reservoir to produce fluid
matches the ability of the tubing to
remove fluids
Casing pressure is dictated by
operating valve set pressure
Upper valves are closed
Valve #1 remains submerged
until operating conditions
change in the reservoir
(i.e. formation drawdown)

Equipment

Mandrels
The gas-lift mandrel is a device installed in
the tubing string of a gas-lift well onto which
or into which a gas-lift valve is fitted
There are two common types of mandrels,
conventional and side-pocket
In a conventional gas-lift mandrel, a gas-lift
valve is installed as the tubing is placed in the
well; to replace or repair the valve, the tubing
string must be pulled
In the side-pocket mandrel, however, the
valve is installed and removed by wireline while
the mandrel is still in the well, eliminating the
need to pull the tubing to repair or replace the
valve

Pre-set Mandrels
Mandrels are placed in wells that are not put on gas lift when
completed, but are expected to need it in the life of the well
Operating pressure may be lower than predicted
Backpressure may be higher than predicted
A mandrel may not be set at the optimum location, resulting in a loss
of efficiency and reduced production

Tubing Retrievable Equipment

TUBING RETRIEVABLE MANDRELS
Widely used onshore
Integral part of tubing string
SR (1-1/2 lug), JR (1 lug) and LM (5/8 lug) options
1 to 4-1/2 sizes standard other sizes available
Typically same drift as tubing
Guard plates and lug prevent valve damage during
installation
Various materials and threads compatible with all current
tubing
Various internal coatings for corrosion, erosion, H2S, etc.
Internally mounted (IM) available for special clearance or
annular flow

Valves
Gas lift valves are basically downhole pressure regulators
The functional elements of a pressure regulator and a gas lift valve are
similar
A spring in the regulator, as in the gas lift valve, forces the stem tip
against the seat
The diaphragm of the pressure regulator and the bellows of the gas lift
valve provide an area of influence for upstream pressure greater than
the port area
The force that results from this combination of upstream pressure and
diaphragm or bellows area acts in a direction to overcome the force of
the spring
When this force of pressure times area exceeds the force of the
spring, the stem tip moves away from the seat, opening the valve

Conventional Gas Valve Details

Valve Bellows and Chambers

The basic valve usually includes a bellow, a chamber formed
by one end of the bellow and the wall and end of the valve,
and a port that is opened or closed by a stem tip
The stem tip is larger than the port and is attached to the
bellows by the stern
A metal bellows forms the seal. The lower end of the bellows
is welded to a solid plug
The upper end of the bellows is welded to the valve
Convolutions (wrinkles) in the bellows provide the flexibility
required for movement
A bellows type seal is used in the majority of gas lift valves

Tubing and Casing Size

Casing Considerations:
Casing size is determined by the Company(s) drilling the well
Decisions are based on depth, pressure and cost

Tubing Considerations:
How much fluid and gas can flow up the tubing, usually higher fluid
and gas rates produce better up bigger size tubing
Wells with lower fluid and gas rates use smaller tubing. The advantage
to this is the velocity of flow is higher in the smaller tubing and less
liquid falls back to bottom which can create liquid loading problems
Software is used to determine ideal tubing size (based on gas and
fluid rates, pressure, friction and velocity of flow)

Tubing Retrievable Equipment

TP SERIES VALVES
Injection pressure operated

Tubing retrievable
For constant or intermittent flow
5/8, 1 and 1-1/2 sizes
Large dome volume improves efficiency
Silicon dampening fluid
Mechanical travel stop increases life of bellows
3-ply Monel bellows
Replaceable floating Monel or tungsten carbide seat
Port sizes from 1/8 to for optimum gas passage

Tubing Retrievable Equipment

CHECK VALVES
Spring loaded

Prevents back flow through injection valve preventing

damage
Eliminates need to re-unload casing after well shut down
Combination resilient/metal-to-metal seal
Double check valves for added protection

Packer
A packer provides a seal between the outside of the production tubing
and the inside of the casing, liner or wellbore wall
Two distinct types: production packers and service packers
Production packers remain in well during production, it is designed to grip
and seal against the casing ID
Service packers are used temporarily during well service activities

The packer is run in close to the bottom end of the production tubing
and set above the top perforations
Packers are used to isolate zones in wells with multiple reservoir
zones
Packers can be used to protect the casing from:
pressure and produced fluids
sections of corroded casing
casing leaks or squeezed perforations
And to isolate or abandon producing zone

Installation

Surface Considerations
Available gas lift pressures
Volume
Specific gravity
Pressure that the well produces
into.
This would include separator pressure
and length and size of flow lines

Gas pressure must be high

enough to inject into the well
Compressor sizing
Based on gas lift pressure and volume
requirements

Flow Line Pressure

Flow line pressures vary greatly in
different areas; the preference is to
have the lowest possible pressure in
the flow line as possible
The flowline is the pipe that carries gas
and liquid to a separator
The separator may then dump the gas
into a sales pipe line
High sales lines pressures and back
pressures caused by flow lines, restrict
flow
The lower the pressure the better and
more efficient

Surface Facility Std. 40 lb Low Pressure

Gas Sales Line

Surface Facility High Pressure

ADAPTING GAS LIFT TO

HORIZONTAL MISSISSIPPI WELLS

Below Packer Gas Lift

Extending the Range
of Gas Lift Applications

Gas Lift Below the Packer

The deepest point of injection is no longer
limited by the packer
Gas can be injected below the packer to the
most efficient point of lift
Liquid in the perforated zone is aerated,
decreasing the flowing gradient
Velocity of flow is increased by reducing the
effective flow area

Gas Lift Below the Packer

Reduced bottom-hole pressure
+ Increased drawdown
Increased critical velocity,
even below the packer

Below Packer Gas Lift Types

Types of Below Packer Installations
1.
2.
3.
4.

Annular Bypass Assembly (ABA)

Dip Tube
Enhanced Annular Velocity (EAV)
Marathon AVE
Slide notes courtesy

of

Annular Bypass Assembly (ABA)

Hybrid of a conventional gas lift system with packer and an
open-ended, packerless system
Utilizes tubing and gas lift valves above packer and a bypass
assembly through the packer
Production is normal up the tubing, and no adjustments are
needed on the wellhead
Ultimate point of lift can be the end of tubing, allowing for
decreased flowing bottom hole pressure compared to a
standard packer completion
Most applicable where deviation of the wellbore limits how
deep a packer can be set

Slide notes courtesy of

Annular Bypass Assembly (ABA)

ABA Advantages
Prevents fluid loading above the packer
during well shut-ins or offset frac activity
Allows for lift around end of tubing in
deviated or horizontal wells where a packer
is desired at a shallower depth
Inexpensive system using a gas-lift mandrel
and check for flow cross-over
Can be used with packer of choice

Dip Tube

Utilizes a crossover flow adapter and a unique mini well

bore below the packer
Lift gas travels down the casing annulus above the packer,
through the crossover flow adapter and into the injection
string below the packer
Production flows up through the crossover flow adapter
into the production tubing and to surface
Deepest point of injection is achieved without applying
back pressure on the formation
Able to successfully lift large casing wellbores in
perforations with lesser amounts of compression

Horizontal Annular Bypass Assembly

Enhanced Annular Velocity (EAV)

Utilizes tubing and gas lift valves above
packer, and an injection string with internally
mounted gas lift valves below
Lift gas travels through the casing annulus,
through the crossover flow adapter and into
the injection string below the packer
Production flows up the annular area, through
the crossover flow adapter and into the
production tubing to surface

4 Marathon (Annular Velocity Wireline)

Patented Marathon system
Similar to EAV, but crossover flow adapter
and all gas lift valves above and below
packer are wireline retrievable
Lift gas travels through the casing annulus,
through the crossover flow adapter and
into the injection string below the packer

Monitoring

Monitoring
Well needs to be monitored and adjusted to maximize
production.
The key areas to monitor are:
Hydrate production
Pre-set mandrels
Dual completions
Choke removal
Well testing

Optimization

Optimization
Identify wells with gas lift that are underperforming
Showing steep production declines
Flowing unstably
Increased downhole pressure

Collect well performance data by testing well performance and

changes over time
Create computer models to pinpoint problems and areas for
improvement
Make adjustments to the depth of injection, gas flow rate

Optimization Wellhead Configuration

Wellhead should be streamlined to
prevent excessive injection gas
breakthroughs from a decreasing
slug velocity
All unnecessary ells, tees, bends,
etc., near the wellhead should be
eliminated

Optimization Testing Procedure

1.
2.
3.
4.

5.

6.

7.
8.

Have injection gas lift meter in service, verify orifice plate size
Have output gas meter in service verify orifice plate size
Have 24 rotation two pen recorder in service
Verify positive choke size and/or zero adjustable choke on casing and
tubing
Zero or preferably dead weight all measurement and recording
instruments
Two pen recorders should be connected on the well side of all chokes, to
record tubing pressure and casing pressure
Maintain record of all recording charts for reference
Put well into test separator to accurately measure production for 24-hour
period
Test separator pressure should be the same as production separator pressure
Well should be stabilized for 24 hours prior to beginning of test

Optimization Testing Procedure (cont.)

9. Open valves to two pen recorder with master
valve and casing valve closed to measure static
pressures at well before well is opened for
production test
10. Record 24 hour production on test on back of
two pen chart to include:
Barrels of water
Barrels of oil
Input gas
Formation gas
Gas to liquid ratio

11. Reference wellbore sketch and compare test

data to flowing gradient curve to verify efficient
operation

Optimization what to check

INLET
Excessive or low (inadequate) injection gas volumes
Injection choke sized too large or too small or plugging
Wet gas freezing
OUTLET
High wellhead or separator pressure
Undersized flowline or restriction
Proximity of surface equipment
SUB-SURFACE
Improper design
Sand and/or emulsions
Holes in tubing or casing
Changing well conditions

Conclusion Use of Gas Lift

More wells are being drilled and completed
with long perforated intervals
Gas lift is cost-effective and flexible
Due to Recent gas lift innovations (ABA,
EAV, Marathon AVE) can now achieve deeper
point of injection below the packer
These systems create adequate velocity
below the packer to recover fluids, reducing
flowing bottom hole pressure and increasing
production (drawdown)

Conclusion Use of Gas Lift

Gas Rate Requirements
Dip Tube: Example (2-7/8 x 1-1/4 ) 400 MCFD total gas
requirement*
EAV and Marathon AVE: Example (2-7/8 or 3-1/2 x 51/2 )
800 - 1,000+ MCFD total gas requirement
ABA: Example (2-3/8 ) 400 MCFD total gas requirement

Liquid Production (highly variable)

Dip Tube: lower liquids (average <500 Bbl/d)
ABA, EAV, Marathon AVE: higher liquids (average >500
Bbl/d) *Total gas requirement includes compressed gas plus produced gas

Conclusion Use of Gas Lift

Production Philosophy
Marathon AVE: planning for inevitable future
decline
Dip Tube, AVE, EAV: dealing with todays
production issues

Other Variables to Consider

Geometry of the wellbore: Toe-Up, Toe-Down,
Deviated or Vertical
Declining reservoir pressure
Current flowing bottom hole pressure

Conclusion
Conclusions to E&P Issues:
You need to test and measure the water flow rate and gas
available rates:
60-80% of Mississippian wells will start off using gas lift
Gas lift is a whole combined science in itself
1

Using Gas lift gets around the current Grid Electricity issues
constrained inelastic supply issue.
Check your water and gas flow rate regularly, at some stage
you will need to consider an alternate to gas lift like ESP
And if ESP does not do it, then there are beam pumps, jet
pumps, hydraulic pumps
So you need to know the whole gambit of lift technology

Contact
CANTEX
ENERGY
CORPORATION
(Ticker PK: CTXE)
scamblerbj@msn.com
bruce@cantex.us
Land Mark Towers
Suite 1000
3555 N.W. 58th Street
OKLAHOMA CITY
OK. 73112

CANTEX ENERGY CORPORATION

BRUCE SCAMBLER
CPA CFF MBA FCMA MHCIMA
CEO and "Wildcatter
If you are not having fun in the
oilfield quit not having fun