Gas-Lift Workshop Breakout Session Gas-Lift for Unconventionals Session Coordinator: Greg Stephenson Title slide Keep the title brief and to one line? The second line (in smaller type style) is for the date of the presentation – depending on your presentation, you may also need to include Location and/or Presenter’s name/s and Job title if needed – as a such a second line may be used for these purposes. Do not include unnecessary information in your presentation title – starting off with clear and simple messages will set the style and focus the audience for what is to follow.

Breakout Session Details Session Purpose - In this break-out session, we explored such issues as artificial lift selection, system design, well stability, flow assurance and when to transition from or to other lift methods. Number of Attendees Operating Companies 3 Service/Supply Companies 3 Others 3 Duration of Session: 1 hour May 16 – 20, 2016 2016 Gas-Lift Workshop

Primary Discussion Points Artificial Lift Selection Criterion: deviation, back pressure, GLR, npv sensitivity, failure frequency, where we landed based on GOR; >1000 go to gas lift; handle sand and solid; Chemical injection; Depths, bottom drive system; GL can be used for the whole life; If you have electricity, you can use gl, can use engine without constriction; fluid compatibility; separation efficiency May 16 – 20, 2016 2016 Gas-Lift Workshop

Primary Discussion Points Gas-Lift System Design When do you need to place well on gas-lift? Slug mitigation by injecting gas at base of tubing. Kick-off of flowing wells. How much will you need to inject? How do you know? What do you want to do? Form follows function. How many valves, mandrels? Design is time dependent due to production change Deep: figure out paths May 16 – 20, 2016 2016 Gas-Lift Workshop

Primary Discussion Points Challenges Operators unfamiliar with gas-lift Limited experienced slickline operators Facilities need to be designed to handle slugs Centralized vs. de-centralized compression facilities Hydrates / gas freezing: mitigate with high discharge temp, properly sized downhole orifice / operating valve Is a lower Pwf a good thing? Pressure dependent permeability Non-obvious IPR behavior Compressor reliability Should you run a packer or not? May 16 – 20, 2016 2016 Gas-Lift Workshop

Primary Discussion Points Transition to / from other lift methods GLR, liquid rate, economics, gas utilization & operational challenges may drive a change in late life. Need compatible surface equipment for early-life and late-life lift. Early life completion probably not the same as late-life completion. May 16 – 20, 2016 2016 Gas-Lift Workshop

Summary Key Learnings – Unconventional resources will teach you humility. The more we know, the more we realize we don’t know. Should This Session Be Repeated in the Future – Yes. May 16 – 20, 2016 2016 Gas-Lift Workshop

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 www.alrdc.com 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. May 16 – 20, 2016 2016 Gas-Lift Workshop

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