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Diverse Project Team

Capture Transport
Permitting Plant Integration & Construction Site Host

Storage
DOE
SO. STATES ENERGY BOARD

Mitsubishi Heavy Industries

NEPA Preparation

Advanced Resources International

Advanced Amines UIC Permitting Reservoir Modeling Geologic Modeling Field Operations Public education/ outreach MMA Activities

Design

Technology Provider

Denbury Resources Denbury Resources

Economic Evaluation Knowledge Transfer 3rd Party Evaluation Pipeline Design Pipeline Permitting & Construction Field Operations Field Operations

Site Prep/ Drilling Contractors

Site Host

Building on a Foundation of Success

SECARB s Phase II Mississippi Test Site (Mississippi Power s Plant Daniel) Established viability of regionally significant and areally extensive Tuscaloosa Massive Sand for CO2 injection and storage. Built experience and confidence for operating CO2 storage at an operating power plant site.
Drilled and characterized two deep wells
Ash pond

Cooling water recirculation

Test Site

Injected 3,027 tons of CO2 at 180 tons per day (3 MMcfd), trucked to site.

Obs Well

Inj Well

N
MS

Ash pond

Image Source: Google Earth

40

80

120

160 Miles

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The Anthropogenic Test Is Pursuing Ambitious Objectives

In support of SECARB s overall goal - - test and demonstrate safe, secure CO2 injection and storage in regionally significant saline reservoirs - - the Anthropogenic Test has four objectives:
1. 2. 3. Conduct a fully integrated CCS project (capture, transport and storage) Test the CO2 flow, trapping and storage mechanisms of the Paluxy Fm., a regionally extensive Gulf Coast saline formation. Demonstrate how a saline reservoir s architecture can be used to maximizing CO2 storage and minimize the areal extent of the CO2 plume. Test the adaptation of commercially available oil field tools and techniques for monitoring CO2 storage (e.g., VSP, cross-well seismic, cased-hole neutron logs, tracers, pressure, etc.)
3

4.

The Anthropogenic Test Schedule

Well drilling operations began in late December 2011 Baseline monitoring activities will occur in the summer of 2011 CO2 injection operations begin in the third quarter of 2011, continue for 2 to 3 years 3 years of post-injection monitoring

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SECARB s Phase III Anthropogenic Test

Washington County

A Fully Integrated CCS Project

The 25 MW CO2 capture unit at Alabama Power s (Southern Co.) Plant Barry will become operational in 3Q 2011. A newly built 12 mile CO2 pipeline will transport CO2 from Plant Barry to the Citronelle Dome. From 100 to 300 thousand metric tons of CO2 will be injected into the Paluxy saline formation over 2 to 3 years. Advanced Resources and supporting researchers will conduct 3 years of monitoring after CO2 injection and then close the site.

Citronelle Dome CO2 Injection Site

Mississippi

Alabama

CO2 Pipeline Plant Barry

Mobile County

Mobile

SECARB Phase III: Citronelle Dome Geology and Modeling

Learning While Doing
Prepared by: David Riestenberg and Karine Schepers Advanced Resources International, Inc., Knoxville TN

2011 RECS Program June 10, 2011 Citronelle, AL

6

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Presentation Plan
This presentation is divided into two parts. First we discuss the purpose and findings from an initial geologic characterization and simulation based on existing field data. Then we will discuss updates to the geologic model and simulation after drilling a characterization well. Before we drill a new project well ($$) we would generally like to assess the following CO2 storage related items

1.

Storage permanence
Select a site with geologic closure (i.e. structural trap) Multiple overlying confining units and secondary storage compartments Condition of existing deep wells

2.

Adequate reservoir injectivity and storage capacity

Conduct detailed reservoir characterization using existing log and core data Reservoir simulation based on initial dataset
7

Structural Contour Map of the Top of the Rodessa Formation

1. Storage Permanence
Regional data and studies show that the Citronelle Dome is:

Plant Barry

A subtle open fold Limbs dipping less than 1 degree Four-way structural closure
Sources: Pashin et al., 2008; Cottingham, 1988; Esposito and others, 2008

Anthro Test Site

Cross Section from Plant Barry to Citronelle Dome

Test Site

Modified from: Pashin et al., 2008 Source: Esposito et al., 2008

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1. Storage Permanence (Cont.)

Southeast Alabama Saline Reservoirs and Seals The Anthropogenic Test s CO2 Storage Site

Citronelle_Project

Target reservoir is the Lower Cretaceous Paluxy Fm (at 9,400 ). 1,100 foot interval of stacked sandstones and shales. Numerous reservoir seals and confining units (at least 5). No evidence of faulting or fracturing, based on reinterpretation of existing 2D seismic lines. Confining Zone Shallower saline reservoirs are Injection Zone promising but condition of existing wells precludes their use in this test 9

01-097-19866-00-00 CITRONELLE SE UNIT #D-9-7

Log Depth(ft) 9100

9200 (-9035)

9200

Citronelle SE Unit # D-9-7

Log Depth (ft) 9400

9300 (-9135)

9300

Top of Paluxy (-9235)

9500 (-9335)

9400

2. Injectivity and Capacity

Sand Layer 9620

9400

9500

9600

Upper 9600 Paluxy

(-9435)

Establishing Reservoir Properties for Paluxy Saline Formation

9500

9600

9700

9700 (-9535)

9800

9800 (-9635)

9900

9900 (-9735)

10000

Middle Paluxy 10000

(-9835)

Sand Layer 10060

10100

10100 (-9935)

Sand continuity mapping to determine open or closed sand intervals. Detailed analysis of over 80 well logs for porosity and depositional style. Regional core data for porosity and permeability. 340 net feet of sand at injector What about porosity and permeability?

9700

9800

9900

10000

10100

10200

10200 (-10035)

10200

10300

10300 (-10135)

10300

10400

Lower (-10235) Paluxy

10500 Top (-10335) of Mooringsport 10600 (-10435)

10400

10400

10500

10

10500

10600

10700 (-10535)

10700

10800 (-10635)

10800

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2. Injectivity and Capacity Paluxy Porosity and Permeability

84 spontaneous potential/resistivity logs available in and around the Citronelle SE Unit.

Few porosity logs available in the field

Porosity was calculated from resistivity logs using Archie water saturation model and basic log analysis assumptions Regional Paluxy core data that appear to represent similar rock types were used to correlate permeability to porosity
Cores are from the Tensaw Lake, Latham and Pleasant Home fields, ~ 20 miles east of Citronelle
11

2. Injectivity and Capacity Paluxy Porosity and Permeability

Resistivity-Porosity Algorithm (Archie)

= porosity Rt = formation resistivity (from deep resistivity log) Rw = formation water resistivity (known or assumed) Sw = water saturation (known or assumed) n = saturation exponent (assumed or measured from core) m = cementation exponent (assumed or measured from core) a = tortuosity exponent (assumed or extrapolated from core tests)
12

a = R n t S w Rw

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2. Injectivity and Capacity (Cont.)

Cross-Plot of Porosity vs. Permeability
10000

Establishing Adequate Permeability Similar to most saline formations, no data existed on the permeability of the Paluxy Fm at the storage site.

Air Permeability (millidarcies)

1000

y = 0.02e
100

0.425x

y = 0.013e0.377x
10

B A
10 15 20 25 30 35 Porosity (%)

To provide a first order assessment of permeability, we compiled sidewall core data for the Paluxy Fm from numerous areas in Alabama to develop a cross-plot of porosity versus permeability:
Lower trend line (A) represents assumed damaged sidewall core permeability. Higher trend line (B) represents assumed non-damaged sidewall core permeability.

Data provided by the Geological Survey of Alabama

13

2. Injectivity and Capacity Paluxy Porosity and Permeability

Paluxy resistivity derived porosities range from 17 to 22% Porosity is highest in the Upper sands Thickness weighted average is 19% Permeability ranges from 28 to 246 mD Thickness weighted average is 88 md

Upper Paluxy

Middle Paluxy

Lower Paluxy 14

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2. Injectivity and Capacity (Cont.) Reservoir Simulation

Building the Geologic Model CO2 Injector (Near Well D9-7) Based on detailed characterization of the thick Paluxy sand/shale interval, we selected 17 sand units for CO2 injection: 340 net feet of sand Average porosity of 19% Average permeability of 90 md Normal pressure and temperature gradients

15

2. Injectivity and Capacity (Cont.) Reservoir Simulation

Modeling the CO2 Plume
X-sectional View 3D View
CO2 Injection Well
12,000
10,30010,20010,10010,000 9,900 9,800 9,700 9,600 9,500 9,400 9,300 9,200 9,100

Understanding CO2 Flow and Optimizing Storage Capacity The information from detailed reservoir characterization was used to model and optimize the CO2 plume: Scale: 1:27784
File: Citronelle_new_geol3.irf User: computation7 Date: 7/9/2010 Z/X: 10.00:1 Axis Units: ft

GasInj1 Well CO Plume of 2

6,000 7,000 8,000 9,000 10,000
9,200 9,300 9,400 9,500 9,600 9,700 9,800 9,900 10,00010,10010,20010,30010,400

X-Sectional View Gas Saturation 2014-01-01 X-sectional View

14,000

3D View J layer: 28 of CO2View 3D Plume

18,000

16,000

CO2 Injection Well

GasInj1 Well

20,000

CO2 Saturation (v/ v)

Areal extent of CO2 will be limited (~1,000 ft) by injection into multiple 0.91sand layers.
1.00 0.81 0.72

Low dip results in a near-circular plume and little post CO2 injection up-dip 0.63 migration.
0.54 0.44 0.35 0.26

0.00

0.25

0.50

0.75

1.00 mile

0.17 0.08

0.00 0.25 0.50 0.75 1.00 km 6,000 7,000 8,000 9,000 10,000 12,000 14,000 16,000 18,000 20,000

16

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Project Area of Review

Proposed Injector (D-9-7 #2) New Characterization Well (D-9-8#2)

Modeled Plume Area (AOR)

Proposed Inj/Obs Well (D-9-9#2)

Existing wells within the Area of Review are on good condition

17

Initial Characterization and Modeling Conclusions

Storage permanence
Test site has 4-way geologic closure, unfaulted Multiple overlying confining units and secondary storage compartments

Adequate reservoir injectivity and storage capacity

Reservoir characterization using existing log and core data suggests Paluxy has capacity Initial reservoir simulation shows adequate injectivity, plume is confined in areal extent

Now let s drill a well and get more data!

18

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Anthropogenic Test Characterization Well (D-9-8 #2)

At the end of December 2010, we began drilling the Anthropogenic Test characterization well

Well drilled to 11,800 TD (spud to TD) in 30 days and under budget. Well was cased and cemented in January 2011. Whole and sidewall cores, geophysical well logs Well will be used as an observation/ monitoring well
19

Above-Zone Monitoring

Data Collection at D-9-8#2

Recovered extensive Paluxy Formation whole core (98 feet in two intervals) 62 Whole core plugs tested Recovered a total of 45 percussion sidewall cores from: Overlying confining units, Overlying saline reservoirs Paluxy Formation Ran full set of well logs (quad combo, array gamma, MRI, mineralogy, dipole sonic, etc.).

Confining Zone Top Paluxy

Base Paluxy

20

10

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D-9-8#2 Sidewall Core; What is it Good For?

Sidewall cores can be used to acquire reasonable porosity values for sandstone intervals and confirm lithology for shales. Unreliable for permeability.
Above-Zone Monitoring Sand Properties
Sample Depth (ft)
Above-Zone Monitoring

Porosity (%) 23.5 21.0 21.8 23.4

Lithology SS, fine-grained SS, fine-grained SS, fine-grained SS, fine-grained

9,120 9,160 9,170 9,180

Confining Zone Lithology

Confining Zone

Top Paluxy

9,318 ft Siltstone-Shale

9,210 ft Shale

21

9,400 ft 9,390 ft

Paluxy Whole Core #1

Notable Features: Fine to coarse grained sandstone Heavily burrowed Rip-up clay pebbles Root zones Prominent cross laminations Multiple soil horizons Upper sands are oxidized (red color) Lower sands are not oxidized

Top of Px
9,450 ft 9,410 ft

22
9,450 ft

11

6/13/11

Porosity and Permeability Ranges, Core #1

Porosity Range: 6-18% Permeability Range: 1 50 md
9350

Porosity Average: 13 % Permeability Average: 8 md Porosity Range: 6-23% Permeability Range: 1 3,800 md Porosity Average: 18% Permeability Average: 440 md
9450

9400

Porosity Range: 8-22% Permeability Range: 1 1,900 md Porosity Average: 18% Permeability Average: 500 md

9500

9550

Medium to coarse grained sandstones of the upper Paluxy appear to represent excellent CO2 injection targets
23

10,440 ft

Paluxy Whole Core #2

Notable Features: Fine to medium grained sandstone Heavily burrowed Rip-up clay pebbles Root zones Prominent cross laminations Soil horizons Pebble conglomerates at the Paluxy base

10,460 ft

10,450 ft

Base of Px

24
10,482 ft

12

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Porosity and Permeability Ranges, Core #2

Porosity Range: 3-19% Permeability Range: 0.05 85 md Porosity Average: 12% Permeability Average: 20 md

Porosity Range: 3-18% Permeability Range: 0.005 50 md

Base of Px

Porosity Average: 14% Permeability Average: 15 md

Fine to medium grained sandstones of the lower Paluxy appear to represent a marginal CO2 injection target

25

Confirming Storage Capacity (Thickness)

SP Induction

Calculated sand thickness using new log data. New results suggest Paluxy reservoir thickness of: 278.5 ft of 50% clean sand Sand thickness estimates made using old logs (310 ft) appear to be acceptable However there were notable individual exceptions
Upper Paluxy Sands

26
Note: thickness values are in feet

13

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Confirming Storage Capacity (Thickness)

Previous slide showed comparison of vintage and new logs for the Upper Paluxy The basal Paluxy sandstone (one of our whole core targets) appears to be of lower quality (thickness and vertical continuity) than the old log would indicate D-9-8#2 Well Log D-9-8#1 Vintage Spontaneous Potential

10,400 ft

60+ feet

10,500 ft

20 to 40 feet?

27

Confirming Storage Capacity (Porosity)

Porosity (%)
0 9380 9390 9400 5 10 15 20 25 30

Porosity (%) 0 9,300

Whole Core #1

10

20

30

9,400

Log Depth (ft)

9410 9420 9430 9440 9450

9,500
Log Depth (ft)

9,600

Porosity Curve

Whole Core Data

9,700

Porosity log data and core data were used to develop a Paluxy sandstone porosity curve Averaged porosity of the Paluxy Formation sandstones using this approach is 18.9 % This estimate compares quite well with the prior sandstone estimate of 19%

9,800

9,900

10,000 Porosity Curve Whole Core Data

28

14

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Confirming Reservoir Injectivity (Permeability)

Permeability Strongly Correlated to Porosity and Grain Size
Upper Core Porosity and Permeability Relationship
Phi (%) 22 20 18 16 14 12 10 Upper Paluxy SS Perm (md) 3,000 670 150 30 7 2 0.4 Lower Paluxy SS Perm (md) n/a 80 20 5 1 0.3 0.1

Equivalent liquid perm

29

Updating the Geocellular Model

3D View of CO2 Plume End of Injection 3D View
Original Model
GasInj1 Well

X-sectional View

Updated Model

The formation s large net sand thickness (213 feet) and permeability (258 md), easily allow the injection of 9.45 million scf per day of CO2, for three continuous years, into the Paluxy.
CO2 Saturation (v/v)

New model now shows plume extent nearly 1,700 ft due to higher permeability in upper Paluxy sandstones Model plume extent was 1,000 ft radius in original model Note: highest perm sand is actually uncompleted in this version Necessitates updated Area of Review
30

15

6/13/11

Injec&on Forecast (cont

SECARB Phase 3 - Plant Barry
284,000 285,000 286,000 287,000 288,000 289,000

d)

1,730f t

390,000

CO2 Plume Migra&on

1.00 0.90
287,000 288,000 289,000
390,000

SECARB 0.80 Phase 3 - Plant Barry

388,000

1,730f t

284,000
GasInj1

285,000

389,000

387,000

389,000

284,000

285,000

286,000

287,000

288,000

289,000

285,000

286,000

388,000

387,000

CO2 Saturation (v/v)

2,930f t 0.49
0.39 0.28 0.18 0.08
284,000

(b)
284,000 285,000 286,000

The maximum movement of the CO2 is about 1,700 feet up-dip in SECARB Phase 3 - Plant Barry the westward direc.on.
1.00 0.90 0.80
285,000
389,000

390,000

388,000

0.59 0.49

390,000

387,000

389,000

0.08
289,000

388,000

CO2 Plume Extent a) 1 Year; b) 2 Years ; c) 3 Years ; d) 10 Years After Injection Started
284,000 285,000 286,000

387,000

0.00

0.50

280,000

290,000

400,000

0.00 0.50 1.00 km

Pressure_BU_endinj 2012-01-01

K layer: 1

1mile radius
390,000 390,000

File: Citronelle_Feb2011_h_PhiK_refined_noInj9620.irf Date: 4/21/2011 User: computation7 Date: 4/21/2011 Scale: 1:48163 Scale: 1:48163 Pressure Increase fY/X: 1.00:1 rom Ini.al Y/X: 1.00:1 Axis Condi.ons (psia) Units: ft Axis Units: ft

400,000

GasInj1

253 218

390,000

2,667<
290,000

78 43

390,000

389,000

388,000

387,000

390,000 389,000 388,000 387,000

286,000

0.69 0.59 0.49 0.39 0.28 0.18

2,530f t

1.00 0.90 0.80 0.69 0.59

(a)

2,530f t

0.08

SECARB Phase 3 - Plant Barry

287,000 288,000

GasInj1 284,000

Injec.on into mul.ple sand layers results in a plume of limited areal extent (plume occupies approximately 200 acres ten years a<er injec.on opera.ons have ceased).
289,000

0.00

0.50

1.00 miles

0.00 0.50 1.00SECARB Phase 3 - Plant Barry km 1.00 miles 280,000 290,000

SECARB Phase 3 - Plant Barry Pressure_BU_endinj 2012-01-01 K layer: 1

390,000 389,000 388,000 387,000

Injec&on Forecast (cont d)

File: Citronelle_Feb2011_h_PhiK_refined_noInj9620.irf User: computation7
393 358 323 288

390,000 389,000
287,000

286,000

287,000

288,000

289,000

2,930f t

288,000

289,000

GasInj1

3,330f t 0.69

390,000

388,000 387,000

1.00 0.90 0.80 0.69 0.59 0.49 0.39

0.39 0.28 0.18

389,000

(c)
284,000 285,000 286,000 287,000

3,330f t
288,000

GasInj1

388,000 387,000

31 0.28
0.18 0.08

(d)
287,000 288,000 289,000

(9% of na.ve pressure) 393

358 323 288 253 218 183

GasInj1

183 148 113 78

280,000

290,000

0.00

585.00

0.00 180.00 360.00 meters 284,000 285,000 286,000

SECARB Phase 3 - Plant Barry 1170.00 feet 148 43 (1% of na.ve p layer: 1 Pressure_BU_endinj 2012-01-01 K ressure)
287,000

113

288,000

Pressure Build-up at End of Injec&on The maximum increase (362 psi) occurs as expected in the gridblock where the injector is located. The overall radius of signicant pressure buildup (greater than 5 percent of the na.ve reservoir pressure, or greater than 50 psi) is 1,330 < at the end of the injec.on period.
File: Citronelle_Feb2011_h_PhiK_refined_noInj9620.irf User: computation7 Date: 4/21/2011 Scale: 1:9183 Y/X: 1.00:1 Axis Units: ft

390,000

390,000

280,000

393 358 323 288

Pressure buildup (pressure increase at the end of injection compared to initial conditions) in the top sand layer (sand 9460)

389,000 388,000 387,000

284,000

2,667<

GasInj1

253 218 183 148 113 78 43

285,000

286,000

287,000

288,000

32

16

6/13/11

280,000

290,000

Pressure Increase from Y/X: 1.00:1 Axis Units: ft Ini.al Condi.ons (Scale: 1:48165 psia)
Y/X: 1.00:1 Axis ressure) 86 (2% of na.ve pUnits: ft

Date: 4/21/2011 Scale: 1:48165

400,000

0.00 0.50 1.00 km

400,000

0.00

0.00

0.00 0.50 1.00 km

0.50

0.50

1.00 miles SECARB Phase 3 - Plant Barry 1.00 miles Pressure_BU_1yr_endInj 2012-01-01 K layer: 1 Pressure_BU_1yr_endInj 2012-01-01 K File: Citronelle_Feb2011_h_PhiK_refined_noInj9620.irf layer: 1 280,000 290,000 User: computation7 File: Citronelle_Feb2011_h_PhiK_refined_noInj9620.irf

SECARB Phase 3 - Plant Barry

Injec&on Forecast (cont d)

User: computation7 Date: 4/21/2011

1mile radius
390,000 390,000

82 77 73 69

86 82 77

Pressure Build-up Three Years aAer End of Injec&on

GasInj1

GasInj1
0.00 0.00 283,000

790.00

286,000

287,000

288,000

289,000

280,000

290,000

389,000

280,000

290,000

43

390,000

391,000

240.00 480.00 meters 284,000 285,000

As a result of the high transmissivity and lateral extent of the Paluxy 73 65 forma.on s sandstones, the resultant 69 60 simula.on model indicates very liQle 56 SECARB Phase 3 65 - Plant Barry Pressure_BU_1yr_endInj 2012-01-01 K layer: 1 52 pressure gain in the reservoir and a 60 47 rapid return to near na.ve pressure 56 43 (1% of na.ve pressure) 52 a<er the injec.on opera.ons are 47 86 completed.
1580.00 feet

390,000

GasInj1

388,000

387,000

390,000

File: Citronelle_Feb2011_h_PhiK_refined_noInj9620.irf User: computation7 Date: 4/21/2011 Scale: 1:12370 Y/X: 1.00:1 Axis Units: ft

Pressure buildup in the top sand layer (sand 9460) 283,000 three years after the end284,000 285,000 286,000 287,000 288,000 of the injection.

Monitoring within and Beyond the Updated AoR

D-4-13 and/or D-4-14 In-zone montoring Above-zone monitoring Fluid sampling

Proposed Injector Injection Surveys Downhole Pressure

390,000 389,000 388,000 387,000

82 77 73 69 65 60 56 52 47

289,000

43

33

New Characterization Well Neutron logging MBM (in-zone pressure, fluid sampling, seismic, temp)

UPDATED AOR
Proposed Inj/Obs Well Neutron logging Crosswell seismic (source)

D-9-11 Neutron Logging

34

17

6/13/11

Next Steps
Revisit geologic model - Relatively thin nature of shale interbeds within sandstone units suggests major upper Paluxy sands may be more continuous than assumed in initial mapping. Channel sand interpretation informs new interpretations. Flow Units - Vary porosity and permeability within sandstones in model. Good porosity-perm relationship gives us confidence here. Update Model Trapping Mechanisms incorporate core CO2brine relative permeability and capillary pressure data into model. Mineralogy Data Update sandstone mineralogy using core XRD and thin section analysis results (more important for longterm fate prediction?). Take more core while drilling injectors!
35

Structure
1

36

18