TT Artificial Lift Utilizing CT as a Hollow Sucker Rod Humberto F. Leniek COIL TUBING AMERICAS Dr. William C. Maurer MAURER ENGINEERING INC.

TT Stekoll Slimhole Pumping System (1960) Flow Line Rubber Hose 1” Tee Clamp Polished Rod Liner 2 7/8” Casing 1” EUE Pumping String Traveling Barrel Insert Pump Slip-Type Hold-Down with Rubber Removed Screen Blind Cage Gas Vent Conventional Stuffing Box

TT Stekoll Field Well (1960)

TT STEKOLL Field Experience (1960) Over 1,000 Wells 3,000 to 5,000 Foot Wells 1” EUE Tubing (Hollow Sucker Rod) 2-1/2” & 2-7/8” Inch Casing 70 BOPD 40 to 50% Reduction in Tubular Costs 17% Overall Cost Savings

TT STEKOLL Slimhole Wells (1960) Bolton Field, Kansas (1,000 ft) - 1,000 Wells Corsicana, Texas (1,200 ft) Wells Panhandle, Texas (3,000 ft) - 20 Wells Canada (5,000 ft) - 15 Wells

TT STEKOLL Slimhole Operations (2-7/8”) Drilling & Logging Perforating & Squeeze Cementing Acidizing & Fracturing Fishing & Washovers Sand Bailing Dual Completions

TT Hollow Sucker Rod Advantage “The hollow sucker rod combines the function of the sucker rod and the tubing, so it is no longer necessary to pull both sucker rods and tubing when working over wells.” STEKOLL, 1960

TT STEKOLL System Limitations (1960) Limited Slimhole Logging Tools Workover Concerns Tubing Failures Resistance to Slimholes Resistance to New Technology

TT Leniek Pumping System (1999) Production Line 1-1/2” Hydraulic Hose Clamp Hollow Polish Rod 2-7/8” or 3-1/2” Casing (CT or Tubing) 1-1/2” Coiled Tubing Hollow Rod Pump Anchor Screen Gas Vent Stuffing Box

TT Leniek CT Pumping System Conventional Surface Equipment 1,000 to 5,000 Feet 2-7/8” or 3-1/2” Casing (CT or Tubing) 1-1/2” CT (Hollow Sucker Rod) Hollow Polish Rod Hollow Rod Pump

TT Leniek Surface Equipment (1999) Lubricated Stuffing Box Hollow Polish Rod Dynamometer Holder Bridel Polish Rod Clamp 1-1/2” Hydraulic Hose Production Line “U” Tube Hydraulic Connector

TT Hollow Rod Pump Screen Anchor Perforations 1-1/2 Coiled Tubing 2-7/8” or 3-1/2” Casing (CT or Tubing) Gas Oil Leniek Bottomhole Assembly

TT Coiled Tubing Hollow Pull Rod Pump Plunger Traveling Valve Standing Valve Hollow RodConventional Pump Barrel Pull Rod Tubing Pump Plunger Traveling Valve Conventional Seating Nipple Standing Valve Pump Barrel Sucker Rod Pumps Anchor Tubing

TT Leniek System Advantages Reduce Well Construction Cost 50 Percent Eliminates Tubing Thread Failures Eliminates Tubing Anchors Reduce Lifting Costs Reduce Paraffin Problems Reduce Casing Wear Treat Wells Through CT Eliminate Rod Failures Allows Ultraslim Holes

TT Initial Concerns CT Fatigue Failures CT Buckling CT Wear Casing Wear

TT Argentina YPF Test ( ) San Jorge Basin 2,600 Foot Well 60 BPD 2-7/8” Casing (Tubing) 1-1/2” CT 13 Months (No Failures)

TT YPF Test

TT YPF Test

TT YPF Test

TT

TT Project Name: Well Name: CT OD (in): CT Wall Thickness (in): Casing Pipe OD (in): Casing Pipe Weight (lb/ft): CT Yield Strength (psi): CT Weld Reduction Factor: Stress Concentration Factor: Fatigue Strength Coefficient: Pumping Fluid Density (ppg): CT Job Corrosion Factor: Stroke Rate (stk/min): Pumping Stroke Length (in): CT Length (ft): CTPS XYZ Coiled Tubing Pumping Fatigue Model CT Length (ft) Years to Failure >30 >20 > Acceptable

TT CT Fatigue Life vs Stroke Rate

TT Leniek Potential Applications Marginal Oilfields Shallow Wells Low Production Wells (<300 BOPD) Close Well Spacing In Fill Drilling Drill New Wells With Smaller Drilling Rigs

TT Leniek Marketing Options Start Service Company Form Alliances with Service Companies License Patent Rights to Service Company Sell Territorial Rights to Operators Form Partnership With Major Independent Drill Slimholes Free For Oil Participation Purchase Shallow Fields and Become Operator

TT

TT Installation & Workover Requirements CT Rig New CT Good Supervision

TT Future Requirements CT Centralizers Low Cost CT Pulling Units Trained Personnel Industry Acceptance Service Company Supplier

TT Project Name: Well Name: CT OD (in): CT Wall Thickness (in): Casing Pipe OD (in): Casing Pipe Weight (lb/ft): CT Yield Strength (psi): CT Weld Reduction Factor: Stress Concentration Factor: Fatigue Strength Coefficient: Pumping Fluid Density (ppg): CT Job Corrosion Factor: Stroke Rate (stk/min): Pumping Stroke Length (in): CT Length (ft): CTPS XYZ Coiled Tubing Pumping Fatigue Model CT Length (ft) Years to Failure >30 >20 > Acceptable

TT Project Name: Well Name: CT OD (in): CT Wall Thickness (in): Casing Pipe OD (in): Casing Pipe Weight (lb/ft): CT Yield Strength (psi): CT Weld Reduction Factor: Stress Concentration Factor: Fatigue Strength Coefficient: Pumping Fluid Density (ppg): CT Job Corrosion Factor: Stroke Rate (stk/min): Pumping Stroke Length (in): CT Length (ft): CTPS XYZ Coiled Tubing Pumping Fatigue Model CT Length (ft) Years to Failure >30 > Unacceptable

TT Project Name: Well Name: CT OD (in): CT Wall Thickness (in): Casing Pipe OD (in): Casing Pipe Weight (lb/ft): CT Yield Strength (psi): CT Weld Reduction Factor: Stress Concentration Factor: Fatigue Strength Coefficient: Pumping Fluid Density (ppg): CT Job Corrosion Factor: Stroke Rate (stk/min): Pumping Stroke Length (in): CT Length (ft): CTPS XYZ Coiled Tubing Pumping Fatigue Model CT Length (ft) Years to Failure >30 >20 > Acceptable

TT Project Name: Well Name: CT OD (in): CT Wall Thickness (in): Casing Pipe OD (in): Casing Pipe Weight (lb/ft): CT Yield Strength (psi): CT Weld Reduction Factor: Stress Concentration Factor: Fatigue Strength Coefficient: Pumping Fluid Density (ppg): CT Job Corrosion Factor: Stroke Rate (stk/min): Pumping Stroke Length (in): CT Length (ft): CTPS XYZ Coiled Tubing Pumping Fatigue Model CT Length (ft) Years to Failure >30 > Unacceptable

TT Project Name: Well Name: CT OD (in): CT Wall Thickness (in): Casing Pipe OD (in): Casing Pipe Weight (lb/ft): CT Yield Strength (psi): CT Weld Reduction Factor: Stress Concentration Factor: Fatigue Strength Coefficient: Pumping Fluid Density (ppg): CT Job Corrosion Factor: Stroke Rate (stk/min): Pumping Stroke Length (in): CT Length (ft): CTPS XYZ Coiled Tubing Pumping Fatigue Model CT Length (ft) Years to Failure >30 > Acceptable

TT Conventional Stuffing Box Production Tee 2-7/8” J-55 Non Upset Seamless Tubing Set As Casing Flexible Rubber Hose to Oil Lead Line Hollow Polish Rod Gas Vent 1” J-55 External Upset Seamless Tubing Used as Sucker Rods 1” J-55 External Upset Seamless Tubing Used as Sucker Rods

TT

TT Sucker Rod Pump in Horizontal Well ft. Pump (30 O inclination) Pump Jack Oil Pump (90 O inclination)