Processing Possibilities for Shale Gas Plays Keith Bullin Bryan Research and Engineering October 7, 2008

Common Shale Gas Plays Shelby 2006

Types of Gas Processing Required for Shale Gas Nitrogen Removal Cryogenic Separation Carbon Dioxide Removal Amine Unit Physical Solvent

Types of Gas Processing (Cont.) Heavy Hydrocarbon Removal JT Unit Refrigerated JT Unit Cryogenic Separation Minor Amount of H2S H2S Scavenger

Barnett Shale DTEenergy.com

Barnett Shale Key Properties Depth (ft)6,500 – 9,200 Thickness (ft) Reservoir Pressure (psi)3,000 – 4,000 Initial Production Rate (MSCFD)500 – 4,000 Started Shale Gas Technology Extremely Fast Growing Urban Gas Processing

First Frac C. W. Slay #1 (Barnett Shale) Year Monthly Gas Production MCF

Second Frac C. W. Slay #1 (Barnett Shale) Year Monthly Gas Production MCF

Third Frac (Barnett Shale) Third Frac C. W. Slay #1 (Barnett Shale) Year Monthly Gas Production MCF

Barnett Shale Oil / Gas Prone Areas OilShaleGas.com

Hill 2007

Town of Flower Mound Compressor Noise Ordinance Must be no more than 3 dB over ambient noise level Must be totally enclosed Must be designed / painted to compliment the surrounding area

Town of Flower Mound Landscaping Ordinance Combination of shrubs, trees, etc. Within 3 years 50% of structures should be screened from public view At least 40% of the vegetation shall be evergreen

Town of Flower Mound Lighting Ordinance No person shall permit any lights to exceed 0.4 foot-candles at the closest public road or property line

Town of Flower Mound Fencing Ordinance Fence shall be 8’-10’ tall Support posts shall be in concrete Chain link fabric shall be of an approved color All pipe or ferrous parts shall be galvanized inside and outside with minimum of 1.2 ounces of zinc per square foot

Marcellus Shale Geology.com

Marcellus Shale Key Properties Depth (ft)2,000 – 8,000 Thickness (ft)300 – 1,000 Reservoir Pressure (psi)500 – 2,000 Initial Production Rate (MSCFD) ,000 Access to Water Disposal Important

Fayetteville Shale

Fayetteville Shale Key Properties Depth (ft)1,500 – 5,500 Thickness (ft) Reservoir Pressure (psi)NA Initial Production Rate (MSCFD) Vertical Horizontal 1,000 – 3,500 Lack of Infrastructure

New Albany Shale

New Albany Shale Key Properties Depth (ft)500 – 4,900 Thickness (ft) Reservoir Pressure (psi)300 – 600 Initial Production Rate (MSCFD) Vertical 2,000 Horizontal

Martini 2008

Common Shale Gas Plays Shelby 2006

Atrium Shale Key Properties Depth (ft)600 – 2,400 Thickness (ft)160 Reservoir Pressure (psi)400 Initial Production Rate (MCFD)50-60 Extremely Long Well Life

Martini 2003

Haynesville Shale

Haynesville Shale Key Properties Depth (ft)10,000 + Thickness (ft)200 Reservoir Pressure (psi)3,000 – 4,000 Initial Production Rate (MSCFD)2,500 – 10, °F Bottom Hole Temperature Extremely Large Potential May Pull Resources from other Shale Plays

Try to Stay Ahead of the Production Curve Install Units Which Turn Up / Down Easily Valve Trays Variable Speed Pumps Use Multiple Trains if Possible Stay as Flexible as Possible with the Process

Conclusions All Shale Gas is Not the Same Watch out for Nitrogen in Shale Gas Anticipate Large Increases in Processing Capacity