41st Gas-Lift Workshop Houston, Texas, USA June 3 - 7, 2019 High Pressure Gas Lift (HPGL) “The Rest of the Story” Jim Hacksma ►Consultant June 3 - 7, 2019 2019 Gas-Lift Workshop

HPGL Tubing hanging free Higher rates Lower rates O/G/W Production (up tubing or annulus) Gas Injection (down annulus or tubing) Tubing hanging free No packer ►No Valves Higher rates Inject down tubing ►Lift Annulus Lower rates Inject down annulus ►Lift tubing Unconventional ►Simple ►Effective

Use of HPGL Reportedly, HPGL being used in 100+ wells Texas: ►Permian ►Eagle Ford ►Austin Chalk Oklahoma: SCOOP & STACK plays Others? Reportedly, ±12 operators are using HPGL Few are talking about it Protecting competitive advantage Only one has published their findings June 3 - 7, 2019 2019 Gas-Lift Workshop

New Learnings About HPGL Thus far, it has been used only at high rates As a replacement for ESPs But, HPGL can also be used at low rates In fact, HPGL can be used at any & all rates Thus, HPGL can be used for entire life of well HPGL is not always high pressure In fact, injection pressure will be below 1000 psi for much of well life Injection pressure can be as low as 250 psi June 3 - 7, 2019 2019 Gas-Lift Workshop

Totally Unlike Conventional Gas Lift (C-GL) High Pressure Gas Lift (HPGL) Totally Unlike Conventional Gas Lift (C-GL) June 3 - 7, 2019 2019 Gas-Lift Workshop

What kind of performance can you expect from such a simple system Performance Curves for HPGL What kind of performance can you expect from such a simple system June 3 - 7, 2019 2019 Gas-Lift Workshop

Performance Curves for HPGL Assumed conditions Depth = 10,000’ FTP = 50 psig Gas gravity = 0.65 100% water No oil or gas production Tubing = 2⅜” ►Casing = 5½” 20#/ft Flow models = Ansari & Gray (modified) June 3 - 7, 2019 2019 Gas-Lift Workshop

Lift tubing at lower rates FBHP Data for lift up annulus Data for lift up tubing An arbitrary switch point chosen Annulus Lift annulus at higher rates Overall, FBHPs are lower than expected? Arbitrary? Tubing Lift tubing at lower rates

Total Gas (injection + production) When producing 100% water, all gas is injected gas When producing some oil, the injection rate is reduced by amount of associated gas production Max = 5000 Min = 300 Tubing Annulus

Injection Pressure (IP) C-GL = Conventional GL With HPGL, IP can be both very high & very low High = 3500 HPGL is largely a low pressure method C-GL has no highs & lows Always ±1000 psi A disadvantage for C-GL? Low = 250 1000# Tubing Annulus

Flowing Gradient (psi/ft) Overall, gradients are lower than expected? Max = 0.4 Min = 0.025 0.1 psi/ft Tubing Annulus

Comparisons to ESP, C-GL & SRP C-GL up 2⅞” ESP In unconventionals, some use a series of AL methods SRP

Comparison to ESP Early tests show HPGL roughly comparable to ESP Rates of 5000 BPD, and more, are possible HP compressor is required ESP may produce more, but not much more ESP may produce more, but not for long Plus, HPGL has many other advantages over ESP C-GL up 2⅞” ESP SRP

Comparison to C-GL (conventional GL) HPGL has the clear advantage Can lift up 2⅜” x 5½” annulus (Instead of 2⅞” with C-GL) Higher rates & lower FBHPs At appropriate time, switch lift to tubing Easy switch ►No packer ►No valves C-GL up 2⅞” ESP SRP

Comparison to SRP FBHPs as low as 300-500 psi with HPGL Can SRP really do significantly better? Replace HPGL with SRP? ►NO Costly ►Too little uplift ►No payout Better way ►Continue with HPGL C-GL up 2⅞” ESP SRP

Comparison to SRP (cont’d) FBHPs as low as 300-500 psi with HPGL Add a plunger? ►Plunger assisted GL? Reduce FBHP even further? Makes HPGL even more competitive with SRP ►Continue with HPGL C-GL up 2⅞” ESP SRP

Comparisons to ESP, C-GL & SRP Why use ESP, C-GL & SRP? Instead, use only HPGL Use HPGL for entire well life Never pull, kill, or unload well again ►No need for valves HPGL is better C-GL up 2⅞” ESP SRP X XXX

$$$ X XXX HPGL saves $$$ ►CAPEX & OPEX Compare to combined cost of ESP + C-GL + SRP HPGL is so cheap, you can’t afford to reject it Need to give HPGL a try Even if you have doubts about HPGL C-GL up 2⅞” ESP SRP X XXX

Caution The pressures shown here (FBHP & injection pressure) are flowing pressures They are steady-state pressures They are the lowest pressures you can expect You may experience higher pressures During unloading They are transient pressures While working down to lower flowing FBHPs June 3 - 7, 2019 2019 Gas-Lift Workshop

HPGL; Why Now? HPGL has been possible virtually for ever HPGL uses nothing new Downhole ►Only tubing hanging free Surface ►Only compressors There is nothing to be developed Higher pressure compressors? They don’t make HPGL possible But, they certainly expand the range of HPGL They permit higher producing rates June 3 - 7, 2019 2019 Gas-Lift Workshop

Very Attractive Performance HPGL can lift several 1000 BPD With FBHPs that are comparable to ESP At 10 BPD, HPGL can achieve; FBHP as low as 310 psi Injection pressure as low as 250 psi Flowing gradient as low as 0.025 psi/ft Even at 1800 BPD; Injection pressure as low 1000 psi Flowing gradient as low 0.10 psi/ft 10,000 ft 2⅜” x 5½” FTP = 50 psi June 3 - 7, 2019 2019 Gas-Lift Workshop

Other Notes Curves can be created for differing conditions Depth ►Tubing & casing size ►FTP ►Etc. Never heard of HPGL? ►Not surprising No service company will promote HPGL No profit potential Everything has been removed Gas lift vendors certainly won’t tell you about HPGL Only the operators will benefit from this new artificial lift method June 3 - 7, 2019 2019 Gas-Lift Workshop

The Developers of HPGL We are retired production engineers The developers of HPGL are; Jim Hacksma ►Kerr-McGee Bill Elmer ►EOG Larry Harms ►ConocoPhillips Each offers consulting services regarding HPGL Each has a slightly different message Each brings a different perspective to the table Together, you get a revolutionary AL method June 3 - 7, 2019 2019 Gas-Lift Workshop

Acknowledgements Branden Pronk ►SM Energy Early adopter of HPGL in Permian SM Energy allowed their test results to be published See SPE 195180-MS “Single Point High Pressure Gas Lift Replaces ESP in Permian Basin Pilot” Presented at SPE Oklahoma City Oil & Gas Symposium 9-10 April 2019 Will Nelle ►Estis Compression Responded to need for HP compressors June 3 - 7, 2019 2019 Gas-Lift Workshop

Questions? Jim Hacksma Consulting Petroleum Engineer Specialty – High Pressure Gas Lift 832-559-7332 office 281-415-4715 cell Houston, TX Jim.Hacksma@comcast.net June 3 - 7, 2019 2019 Gas-Lift Workshop

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