ALRDC Gas-Lift Workshop Sheraton North Hotel, Houston, Texas May 16 – 20, 2016 Gas Well Deliquification Breakout Session Gas-Lift Surveillance New Technology Mike Johnson Eli Adams

2016 Gas-Lift Workshop 2 Breakout Session Details Session Purpose – Brainstorm gas-lift surveillance practices and ideas. Discuss new technology. Number of Attendees 17 –Operating Companies 4 –Service/Supply Companies3 –Others3 Duration of Session 1 hr. May 16 – 20, 2016

2016 Gas-Lift Workshop3 Gas Lift Surveillance 1/5 Do you know the depth of injection for your wells? –Many are confident that they do know it and think they are lifting from the bottom. (From supplier service side) –2 Major operators not confident (Operator side) How do you know it? –Looking at injection pressure –Foreman said this was the case –Well schematic –Well test and nodal modeling (WinGLUE, Wellflow, Prosper, others) –Surveys/shooting liquid levels May 16 – 20, 2016

2016 Gas-Lift Workshop4 Gas Lift Surveillance 2/5 How do you find underperforming wells? –Well test history comparison, deviation from production forecast –Observe pressure/temperature parameters (slugging/surging) –Operations reports –Acoustic feedback on the flowline –For subsea, need to watch for temperature changes upstream of subsea wellhead choke –Network models with all the wells to find problem wells. –Facilities loading –Sales meter May 16 – 20, 2016

2016 Gas-Lift Workshop5 Gas Lift Surveillance 3a/5 How do you use Key Performance Indicators? –Trending TGLR/IGLR over time (gas-lift gas + formation gas/total liquid) –Compression rates and divide by total liquid to get field wide Injected GLR, compare to well tests –Maintain set percent near field test total production (stream day capacity) –For gas lifted gas wells, watch critical flow rate (Turner-Coleman or similar charts) –Modified deviation angle factor to include deviation with turner correlation –Gas utilization factor (GUF) as (oil rate/injection rate) suggested plotted log scale which produces a curve. Best wells have the higher factor May 16 – 20, 2016

2016 Gas-Lift Workshop6 Gas Lift Surveillance 3b/5 Example Key Performance Indicator May 16 – 20, 2016

2016 Gas-Lift Workshop7 Gas Lift Surveillance 4/5 What surveillance practices are most successful? –Keeping trained people that know what the heck they are doing –Daily data and trends, high res data collection –Nodal analysis and well modeling –Focus on top 10% of wells for modeling, surveys, etc. –Train operations to perform basic tasks –Data quality assurance, with test data review to make sure that the data makes sense and can be deemed acceptable –Utilize software and exception based monitoring with nodal models –Data visualization for easy identification –Non intervening passive/remote techniques such as some surveys including DTS and DAS. May 16 – 20, 2016

2016 Gas-Lift Workshop8 Gas Lift Surveillance 5/5 What do we need for surveillance? –Training –Continuity in jobs – time to develop and keep experts –Must have management support –Experienced operators with technical expertise that are capable of performing basic troubleshooting (trained and motivated individuals) –Organizational alignment with surveillance processes –Champions to push the importance to the larger organization –Technology and knowledge transfer –Better reward system to attract and retain technical expertise May 16 – 20, 2016

2016 Gas-Lift Workshop9 New Technology –Surface controlled gas-lift valve that also gives data –Connecting existing “new technology” into automation system, closed loop controls –Software that can communicate with other software –Advanced data analysis systems –Infinitely variable depth of injection May 16 – 20, 2016

10 Summary Key Learings – –Good surveillance practices can be maintained if desire is there, many tools and techniques documented and available. –Newtechnology can enable good surveillance and optimization. Should this session be repeated in the future? - Yes May 16 – 20, Gas-Lift Workshop

May 16 – 20, Gas-Lift Workshop11 Copyright Rights to this presentation are owned by the company(ies) and/or author(s) listed on the title page. By submitting this presentation to the Gas-Lift Workshop, they grant to the Workshop and the Artificial Lift Research and Development Council (ALRDC), rights to: –Display the presentation at the Workshop. –Place it on the web site, with access to the site to be as directed by the Workshop Steering Committee. Other uses of this presentation are prohibited without the expressed written permission of the company(ies) and/or author(s) who own it and the Workshop Steering Committee.

2016 Gas-Lift Workshop12 Disclaimer The following disclaimer shall be included as the last page of a Technical Presentation or Continuing Education Course. A similar disclaimer is included on the front page of the Gas-Lift Web Site. The Artificial Lift Research and Development Council and its officers and trustees, and the Gas-Lift Workshop Steering Committee members, and their supporting organizations and companies (here- in-after referred to as the Sponsoring Organizations), and the author(s) of this Technical Presentation or Continuing Education Training Course and their company(ies), provide this presentation and/or training material at the Gas-Lift Workshop "as is" without any warranty of any kind, express or implied, as to the accuracy of the information or the products or services referred to by any presenter (in so far as such warranties may be excluded under any relevant law) and these members and their companies will not be liable for unlawful actions and any losses or damage that may result from use of any presentation as a consequence of any inaccuracies in, or any omission from, the information which therein may be contained. The views, opinions, and conclusions expressed in these presentations and/or training materials are those of the author and not necessarily those of the Sponsoring Organizations. The author is solely responsible for the content of the materials. The Sponsoring Organizations cannot and do not warrant the accuracy of these documents beyond the source documents, although we do make every attempt to work from authoritative sources. The Sponsoring Organizations provide these presentations and/or training materials as a service. The Sponsoring Organizations make no representations or warranties, express or implied, with respect to the presentations and/or training materials, or any part thereof, including any warrantees of title, non-infringement of copyright or patent rights of others, merchantability, or fitness or suitability for any purpose. May 16 – 20, 2016