December 12, 2002 Improved Oil Recovery in Mississippian Carbonate Reservoirs of Kansas DE-FC22-93BC14987 Timothy R. Carr, Dana Adkins-Heljeson, Saibal Bhattacharya, Alan P. Byrnes, Evan K. Franseen, Paul Gerlach, Willard (Bill) Guy, Richard Pancake, and W. Lynn Watney

December 12, 2002 Kansas Challenges Small Independent Producers –3,000 Oil and Gas Operators Wells (33,104 wells < 5 BOPD) –Low Rate, High Water Cut Inadequate Reservoir Characterization Drilling and Completion Design Problems Low Recovery Factors –Non-Optimal Primary Recovery Operations at or Near Economic Limits

December 12, 2002 Kansas Approach Develop Cost-Effective Technologies –Reservoir Description and Management Using “best” data –Evaluation Methods –Spreadsheet log analysis software (PfEFFER) –Online Dissemination Information Technology –Demonstration Horizontal Drilling Infill Drilling

December 12, 2002 Large Potential Target

December 12, 2002 Large Potential Target

December 12, 2002 Ness County, Kansas Numerous Targets –Regional Level Numerous Targets –Regional Level

December 12, 2002 Regional Cross-Section

December 12, 2002 Mississippian Subcrop

December 12, 2002 Schaben Field

December 12, 2002 Schaben: Vertical Sequence

December 12, 2002 Reservoir Facies Skeletal Wackestone - Packstone Ritchie 2 Schaben P

December 12, 2002 Depositional Model

December 12, 2002 PfEFFER: Lithology Solution

December 12, 2002 Perforation: Produced 85 bopd & 132 bwpd Perforation: Produced 85 bopd & 132 bwpd Super Pickett Plot Reservoir Porosity Saturation Pay Height BVW Super Pickett Plot Reservoir Porosity Saturation Pay Height BVW Petrophysical Analysis

December 12, 2002 PfEFFER

December 12, 2002 Schaben Field Effective Porosity

December 12, 2002 Schaben Field Structure Cross-Section

December 12, 2002 Remaining Oil Saturation Poor Lateral Drainage

December 12, 2002 Reservoir Simulation Infill Drilling Targets So > 40% & Payheight > 20 ft.

December 12, 2002 Schaben Field Production

December 12, 2002 Schaben Field Production

December 12, 2002 Horizontal Wells Tools for Identifying Candidate Applications –Production Data Analysis –Geologic Mapping –Integration of Production and Geologic Data –Field & Lease Level Volumetrics Reservoir Characterization/Simulation Field Demonstration - Horizontal Infill Well –Completed and Planned

December 12, 2002 Integrating Production & Geologic Data Poor Sweep - Vertical Wells in Updip Stratigraphic Trap Welch-Bornholdt- Wherry Field Rice County Kansas

December 12, 2002 Field Level Volumetrics OOIP/Qtr Section Welch-Bornholdt-Wherry Fields Discovered: 1924 Producing Reservoir: Mississippian Osage Trap Type: Stratigraphic Cumulative Production: 60 MMBO Original Oil in Place per Quarter Section CI: 500 MBO / qtr. section Using data from one type well per 1/4 section = 10 MMBO = 5 MMBO

December 12, 2002 Field Level Volumetrics Recovery Efficiency Recovery Efficiency per Quarter Section CI: 2% = 18% Welch-Bornholdt-Wherry Fields = 2%

December 12, 2002 Ness County, Kansas Numerous Targets –Regional Level Numerous Targets –Regional Level

December 12, 2002 Ness City North Field Numerous Targets –Local Level Numerous Targets –Local Level

December 12, 2002 Reservoir Characterization Geologic Model

December 12, 2002 Reservoir Characterization Geologic Model Geologic model: log (Gr, Res), core, production, DST data Maps & cross- sections of Mississippian sub-units: 5 layered reservoir model

December 12, 2002 Reservoir Characterization Geologic Model

December 12, 2002 Reservoir Characterization Production Model

December 12, 2002 Reservoir Simulation Mapping Residual Potential

December 12, 2002 Final Completion

December 12, 2002 Reservoir Heterogeneity Strong Horizontal Heterogeneity –10’ - 100’ Interval –Karst Controlled Result Poor Lateral Drainage Strong Horizontal Heterogeneity –10’ - 100’ Interval –Karst Controlled Result Poor Lateral Drainage

December 12, 2002 Initial Production IP: 85 BOPD & 54 BWPD (4/29/00) Daily Prod: 55 BO& 50 BW for 2-1/2 months (May to mid-July) with 1000’ of fluid over pump IP: 85 BOPD & 54 BWPD (4/29/00) Daily Prod: 55 BO& 50 BW for 2-1/2 months (May to mid-July) with 1000’ of fluid over pump

December 12, 2002 Complete Production Loss

December 12, 2002 Lessons Learned Operational Flexibility (Maintain Your Options) –New Well vs. Reentry –Hole Size –Drilling Fluids –Case off the Curve –Line the Lateral Good Planning Communication “The Lateral is a Piece of Cake” Horizontal Heterogeneity

December 12, 2002 Recompletion O/W Perfs Added Based on Results of Simulation

December 12, 2002 Ness City North Production

December 12, 2002 Well and Production Data Ness City North Schaben

December 12, 2002 Ness City North

December 12, 2002 Well and Production Data

December 12, 2002 Well and Production Data

December 12, 2002 Well and Production Data

December 12, 2002 Well and Production Data

December 12, 2002 Well and Production Data

December 12, 2002 Well and Production Data

December 12, 2002 Advances in PC-Based Hardware and Software Cost-Effective Reservoir Simulation within the Reach of the Independent Producer

December 12, 2002 Gemini Modular Approach KGS Server apache - jserv KGS Database & Files Gemini User/Project Module Well Profile Module PfEFFER Module DST Module Volumetrics Module Cross Section Module Material Balance Module Synthetic Seismic Module PVT Module Rock Catalog KHAN Fluid Catalog Well Level Analysis Applets Field Level Analysis Applets Rock & Fluid Characteristics Applets Java Servlets

December 12, 2002 Table: Formation Name Type GEMINI_USER_KIDN(10) WELL_HEADER_KID N(10) ZONE_NUMBER N(6) API_NUMBER V(40) TYPE_OF_ZONE N(2) FORMATION_NAME V(40) DATA_SOURCE V(40) START_DEPTH N(8,2) END_DEPTH N(8,2) DATE_MODIFIED D PFEFFER_KID N(10) Table: Formation Name Type GEMINI_USER_KIDN(10) WELL_HEADER_KID N(10) ZONE_NUMBER N(6) API_NUMBER V(40) TYPE_OF_ZONE N(2) FORMATION_NAME V(40) DATA_SOURCE V(40) START_DEPTH N(8,2) END_DEPTH N(8,2) DATE_MODIFIED D PFEFFER_KID N(10) Gemini -Well Profile Module

December 12, 2002 Gemini -PfEFFER Module Table: Pfeffer_Computed Name Type PFEFFER_KID N(10) BUTTON N(2) BUTTON_ORDER N(4) BUTTON_SELECTED N(2) LAS_KID N(10) RADIO_BUTTON N(2) CURVE_NUMBER N(4) CURVE_MNEMONIC V(100) VALUE N VALUE2 N CORRECTED N(2) CORRECTED_VALUE N TRACK N(2) Table: Pfeffer_Computed Name Type PFEFFER_KID N(10) BUTTON N(2) BUTTON_ORDER N(4) BUTTON_SELECTED N(2) LAS_KID N(10) RADIO_BUTTON N(2) CURVE_NUMBER N(4) CURVE_MNEMONIC V(100) VALUE N VALUE2 N CORRECTED N(2) CORRECTED_VALUE N TRACK N(2)

December 12, 2002 Gemini -Volumetric Module

December 12, 2002 Kansas Approach Develop Cost-Effective Technologies –Reservoir Description and Management Using “best” available data –Evaluation Methods –Spreadsheet log analysis software (PfEFFER) –Online Dissemination Information Technology –Demonstration Horizontal Drilling Infill Drilling