1. Gas Well Deliquification Workshop Sheraton Hotel, Denver, Colorado March 1-2, 2016 Gas Well Deliquification Breakout Session Managing Large Scale of Shale Gas Wells Jun Xu (Shell)

2. Feb 24, 2014 2014 Gas Well Workshop2 Breakout Session Details Objective Discuss how to manage the large well stock productively and economically Number of Attendees = 12 6 from Operating Companies 3 from Service/Supply Companies 3 from Universities Duration of Session ~1hr 30 min

3. Feb 24, 2014 2014 Gas Well Workshop3 Large Number of Shale Wells Well Inventory Company A – 5000 wells in vertical and 1000 wells in horizontals. More horizontal drillings are planed Company B – 450 wells in horizontal. Company C – 350 wells in remote areas Company D – 400 wells and plan to add 100-200 new wells Company E – 1418 wells total, 783 in horizontals and 635 wells in verticals Lift Strategy Mostly lift methods is plunger lift and secondary forms are foam and gas lift. Company E has 106 CTVS for GWD One company lifts the wells on intermittent production

4. Feb 24, 2014 2014 Gas Well Workshop4 Competency and Skills Training the operator for GWD is #1 issue 40% at awareness level (some companies). Some operators lack the basics understanding of liquid loading and how to optimize GWD In-house trainings are provided One company requires various skill levels training Internal GWD workshop and sharing/ disseminate best practices More technical trainings are needed Skilled operators / engineers train new operators

5. Data Management Exception base Prioritize optimization Only for horizontals wells Data limitation - cannot poll data frequently SCADA and Standard Procedure Various software used, Cygnet, Energy Components, Elinks/AVM, Spotfire, etc Developing an web base warehouse to standardize data management and AL experts can access to data Feb 24 2014 2016 Gas Well Workshop5

6. Feb 24, 2014 2014 Gas Well Workshop6 Optimization Analysis and Standard Operating Procedures Need to understand data quality Data accessible – know where to quickly find the data Need skill sets for data process and interpretation No well model assisted real time monitoring Need to know the workflow of data process and GWD optimization GWD operating SOP and best practices in place but many time not follow the standard procedure

7. Feb 24, 2014 2014 Gas Well Workshop7 Leadership and Communication Daily and weekly calls of alignment of engineers, operators, AL techs Collaboration team work is vital for large number of wells Need a clear responsibility and accountability for the jobs (operator, AL tech, and engineers) Incentive mechanism on performance – long term vs short term, individual contribution vs team support/work Leadership management and communication effectiveness skills need to improve

8. 2014 Gas Well Workshop8 Copyright Rights to this presentation are owned by the company(ies) and/or author(s) listed on the title page. By submitting this presentation to the Gas Well Deliquification Workshop, they grant to the Workshop, the Artificial Lift Research and Development Council (ALRDC), and the Southwestern Petroleum Short Course (SWPSC), rights to: –Display the presentation at the Workshop. –Place it on the www.alrdc.com web site, with access to the site to be as directed by the Workshop Steering Committee. –Place it on a CD for distribution and/or sale as directed by the Workshop Steering Committee. Other uses of this presentation are prohibited without the expressed written permission of the company(ies) and/or author(s) who own it and the Workshop Steering Committee. February 24, 2014

9. Feb 24, 2014 2014 Gas Well Workshop9 Disclaimer The following disclaimer shall be included as the last page of a Technical Presentation or Continuing Education Course. A similar disclaimer is included on the front page of the Gas Well Deliquification Web Site. The Artificial Lift Research and Development Council and its officers and trustees, and the Gas Well Deliquification Workshop Steering Committee members, and their supporting organizations and companies (here-in-after referred to as the Sponsoring Organizations), and the author(s) of this Technical Presentation or Continuing Education Training Course and their company(ies), provide this presentation and/or training material at the Gas Well Deliquification Workshop "as is" without any warranty of any kind, express or implied, as to the accuracy of the information or the products or services referred to by any presenter (in so far as such warranties may be excluded under any relevant law) and these members and their companies will not be liable for unlawful actions and any losses or damage that may result from use of any presentation as a consequence of any inaccuracies in, or any omission from, the information which therein may be contained. The views, opinions, and conclusions expressed in these presentations and/or training materials are those of the author and not necessarily those of the Sponsoring Organizations. The author is solely responsible for the content of the materials. The Sponsoring Organizations cannot and do not warrant the accuracy of these documents beyond the source documents, although we do make every attempt to work from authoritative sources. The Sponsoring Organizations provide these presentations and/or training materials as a service. The Sponsoring Organizations make no representations or warranties, express or implied, with respect to the presentations and/or training materials, or any part thereof, including any warrantees of title, non-infringement of copyright or patent rights of others, merchantability, or fitness or suitability for any purpose.