Adaptive Product Technology for Coalbed Natural Gas (CBM) William A. Grubb, General Manager Weatherford International Ltd. 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.

Forms of Lift Used in CBM Electric Submersible Pumping (ESP) Plunger Lift Reciprocating Rod Lift Progressing Cavity Pumping (PCP)

De-watering Characteristics Technology to de-water coal changes over life of well or field Coal deposits are often active aquifers Initial wells can produce substantial water volumes Water production declines with time Development or in-fill wells typically come on at higher gas – water ratios

De-watering/Production Cycle Two key points to de-watering success: Maintain low BHP Do not shut-in the well – water refloods coal

Operator’s Objectives & Decision Drivers Mean Time to Failure / Run Life Capital Expense (CAPEX) Lease Operating Expense (LOE) Deliverability & Production Rates Water Disposal

Lift Technologies for Coalbed Natural Gas Applications Progressing Cavity Pumping Electric Submersible Pumping Plunger Lift Reciprocating Rod Lift Automation

System Considerations For Coalbed Natural Gas Progressing Cavity Plunger Lift Electric Submersible Reciprocating Rod Lift Operating Depth (Typical) Operating Volume (Typical) Operating Temperature Corrosion Handling Gas Handling Solids Handling Coal Dust Handling Servicing Prime Mover Offshore Application Overall System Efficiency 4,500’ TVD or less 10,000’ TVD or less 1,000’ TVD or less 8,000’ TVD or less 2,200 BPD or less 20,000 BPD or less 30 BPD or less 1,500 BPD or less 400° F or less 120° - 550º F 100° - 350º F 150° F or less Fair Good Excellent Good Good Good Excellent Good* Excellent Good Good Good Good Good Good Good Workover or Pulling Rig Workover or Pulling Rig Wellhead Catcher or Wireline Workover or Pulling Rig Gas or Electric Electric Motor Wells’ Natural Energy Gas or Electric Good Excellent N/A N/A 40% - 80% 35% - 60% N/A 50%-60% * If vented or if natural gas anchor is used.

Progressing Cavity Pumping Systems

PC Pump Advantages in Coalbed Natural Gas Operations Wellhead Drive Casing Production Tubing Sucker Rod Stator Rotor Tubing Collar Tag Bar Sub Able to produce problem wells; excellent solids handling - coal, shale and sand Gas producing capabilities High system efficiency Produce wells with poor cement jobs Flexibility in production volume with one pump Remote locations without power and pilot projects

Electric Submersible Pumping Systems

ESP Advantages in Coalbed Natural Gas Operations Low to moderate costs for shallow depth wells Minimal surface profile Flexibility in production volumes with VFD Repairable, which reduces LOE Good gas handling with gas separator Good solids handling when built with hardened bearings

Plunger Lift Systems

Plunger Lift Advantages in Coalbed Natural Gas Operations Lubricator Catcher Solar Panel Controller Dual “T” Pad Plunger Bumper Spring Unload wells that continue to load up with produced wellbore fluids Installed as a method of dewatering High GLR coalbed natural gas wells Maintains higher operating pressure on rate sensitive coalbed natural gas wells

Reciprocating Rod Lift Systems

Rod Lift Advantages in Coalbed Natural Gas Operations Sucker Rod Tubing Anchor/ Catcher Pump Assembly Low to moderate costs for shallow depth wells High system efficiency Excellent flexibility – can alter stroke speed /length, plunger size, run time to control production Equipment available with wide range of gear reducers, structural ratings and stroke length combinations Surface equipment available in low profile design for visually-sensitive areas Excellent salvage value

Case Histories Progressing Cavity Pumping Electric Submersible Pumping Plunger Lift Reciprocating Rod Lift

PCP - Coalbed Natural Gas Case History Initially client had 5 ESP failures within 2 months Well data for this problem well - 1100’ depth and 7” casing with 2-3/8” tubing Introduced a 100-2100 Buna PCP with 4.3 L hydraulic drive system - July 2000 Solution: Increased the net gas rate to 550 mcf

PCP - Coalbed Natural Gas Case History continued Gas Production Water Production BPD / MCD Weatherford PCP Commences Operation

PCP – Coalbed Natural Gas Best Practices & Lessons Learned Necessary to run looser fitting pumps Lower RPM extends run life Reduced tubing wear with full rod on top of rotor Two snap-on rod guides per rod

ESP - Coalbed Natural Gas Case History Client initially ran conventional water well submersible equipment Average run times were < 4 weeks – equipment sent to junk pile after failure Well Data: Depth - 600’-1,200’ Casing - 5 ½” and 7” Tubing – 2 3/8” and 2 7/8” Installed specialized CBM-ESP™ with enhanced gas and abrasion handling capabilities Used repairable CBM equipment CBM-ESP substantially increased run times

ESP - Coalbed Natural Gas Case History continued Installed CBM-ESP

ESP – Coalbed Natural Gas Best Practices & Lessons Learned Essential to gather correct application data for sizing When possible, pre-assemble pump, motor and screens Use proper field techniques when handling ESP should be manufactured with compression stages and hardened bearings When applicable, install ESP with inverted shroud intake

Plunger Lift Coalbed Natural Gas Case History Client initially ran rod lift pumps Gas locking problems occurred as reservoir was de-watered and GLR increased Well Data: Perf. Depth: 1100 ft. Casing - 5 1/2” 17 ppf Tubing – 2 3/8” 4.7 ppf, J-55

Plunger Lift Installed Plunger Lift Coalbed Natural Gas Rod Pump  Plunger Lift Plunger Lift Installed

Plunger Lift - Coalbed Natural Gas Best Practices & Lessons Learned Evaluate production for required GLR to drive system Examine PPM dissolved solids and coal fines for possible screen application Shut well for pressure build up Evaluate shut in pressure vs. GLR

Rod Lift - Coalbed Natural Gas Case History 45 rod pumping wells, with oldest installed in 1993 PCPs were unsuccessful Well Data: Perf. Depth: 2,000 ft. Casing - 5 1/2” and 7” Tubing - 2 3/8”, 2 7/8” and 3 1/2”

Rod Lift – Coalbed Natural Gas Case History continued Installed Rod Pump

Rod Lift – Coalbed Natural Gas Best Practices & Lessons Learned Tried grooved plungers; determined traditional chrome barrel pumps worked best Wipers added to top and bottom of plunger increased pump life by keeping coal fines and solids from entering pump Developed regular pump replacement schedule every 6 months, even though company was experiencing pump runs of up to 18 months, to minimize downtime, keep pump efficiencies high and maximize fluid production ( gas production)

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