(Make More Fluid with Less Valves) 41st Gas-Lift Workshop Houston, Texas, USA June 3 - 7, 2019 High Rate Unconventional GLR Based Gas Lift (Make More Fluid with Less Valves) Kenneth Estrada - Concho Resources Jay Miller - Production Lift Companies Strategy –Not to Rod Everything Up High Liquid/Gas/BHP/Sand/Deviations GAS LIFT GOOD ARTIFICIAL LIFT CHOICE WHAT’S NEXT? Strategy: Transition Thru Phases From Initial Completion-Final Depletion Offers Significant Cost Savings 1. Won’t Electrify Field 2. Won’t kill or pull well June 3 - 7, 2019 2019 Gas-Lift Workshop 1

Conventional High Rate Vertical Bracketed Gas Lift Designs Best Uses Constant Bottom Hole Pressure Constant PI Water Drive Constant Rate Vertical Wells 2 June 3 - 7, 2019 2019 Gas-Lift Workshop

Conventional High Rate Vertical 3 June 3 - 7, 2019 2019 Gas-Lift Workshop

Traditional Nodal Based Gas Lift Nodal Analysis was developed to predict a well’s performance with a constant BHP, a constant PI and a constant predictable rate Nodal analysis in unconventional wells is not a valid predictor of well performance Unconventional wells change rapidly during their life A multi-rate design that adapts to changing PI, pressure and rate is needed June 3 - 7, 2019 2019 Gas-Lift Workshop 4

Equidistant Spacing Austin Chalk Paradigm Shift Vertical to Horizontal Slugging production Solids Multi Rate Designs needed June 3 - 7, 2019 2019 Gas-Lift Workshop 5

Equidistance Spacing 6 June 3 - 7, 2019 2019 Gas-Lift Workshop

Multi Rate Designs Horizontal Well Designs Very quickly the industry realized the designs we were using for vertical wells would not work in horizontal wells A new Multi Rate Design Method was studied This design needed to be a multi rate design capable of following a horizontal well’s rapid decline The birth of the equally spaced bracketed design The equally spaced design was thought to follow the well’s decline through the life of the well Most of the time they work, but they miss a gas lift well’s potential to work in the high pressure part of a well’s life In some cases even the equally spaced bracketed designs are spaced too widely FBHP Surveys show this and led to a need to change the designs June 3 - 7, 2019 2019 Gas-Lift Workshop 7

Desktop Computers Computers Show up on Engineers Desks in the early 90’s Detailed well analysis becomes more prevalent Windows based Gas Lift Design Programs become the norm The authors of the gas lift design programs did a good job Gas Lift design moves from an “art” to a standardized product almost anyone could do Lots of wells are placed on these standardized designs Problems arise because of wide spacing in the unloading portion of the wells Many wells are pulled because the wells would not transfer to lower valves 8 June 3 - 7, 2019 2019 Gas-Lift Workshop

Well Analysis Uncovers Design Problems Flowing Bottom Hole Pressure Surveys find problems Some Unloading valves are spaced too widely Valve chattering causes valve failures Hydrotesting the tubing is a rare practice with new tubing Testing the whole tubing string will not identify small leaks Collar leaks are prevalent These small leaks change the gas lift design’s efficiency 9 June 3 - 7, 2019 2019 Gas-Lift Workshop

Unconventional GLR Based High Rate Gas Lift A design method that takes advantage of the wells initial high rate potential This method uses the GLR Curves as a predictor of performance Works best when well data is known This method requires a highly skilled gas lift designer to understand how to place the high rate bracket June 3 - 7, 2019 2019 Gas-Lift Workshop 10

SBHP Effects and Importance! 11 June 3 - 7, 2019 2019 Gas-Lift Workshop

High Rate Unconventional Gas Lift 12 June 3 - 7, 2019 2019 Gas-Lift Workshop

****Back Pressure**** The most overlooked problem in Permian Basin gas lifted wells High back pressure reduces the amount of fluid you can make High Back pressure is defined by a tubing pressure over 150 PSI Ideal back pressure is 125 PSI High back pressure reduces production for the life of the well High back pressure causes 90 degree turns in the flow line Unnecessary choke bodies Excess gas breakout Distance from the tank battery 13 June 3 - 7, 2019 2019 Gas-Lift Workshop

100 PSI Back Pressure 14 June 3 - 7, 2019 2019 Gas-Lift Workshop

300 PSI Back Pressure 15 June 3 - 7, 2019 2019 Gas-Lift Workshop

Gas Lift Well with 300 psi Back Pressure Excessive 90⁰ Turns 2” Flowlines Gas Lift Well with 300 psi Back Pressure 16 June 3 - 7, 2019 2019 Gas-Lift Workshop

Conclusions The High Rate Unconventional GLR Based Gas Lift Design Method has plenty of Merit The transfer from upper to lower valves is greatly accelerated Closing the spacing in upper valves allows this As the well depletes the valves don’t have to be as closely spaced Producing 2,500+ bpd total fluid rates is easily achievable This design method has seen 270+ psi of drawdown in several days Fluid rates as high as 2800 bpd were seen. Higher rates possible More installations are needed to gather conclusive data One thing we have seen is more fluid with less valves The equidistance bracketing is no longer needed A better wheel has been invented 17 June 3 - 7, 2019 2019 Gas-Lift Workshop

BHP Drawdown 18 June 3 - 7, 2019 2019 Gas-Lift Workshop

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