1. 2016 Williston Basin Petroleum Conference, Bismarck, N.D.
IOR CANADA LTD. Improved Oil Recovery Unit 24, nd Street SE Calgary, Alberta, Canada T2B 2X3
2016 Williston Basin Petroleum Conference, Bismarck, N.D.
FRACTURE FLOODINGtm
Conrad Ayasse, Ph.D., FCIC
May 25
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

2. Presentation Outline Description of Fracture Floodingtm
Sequential Fracture Floodingtm
CDN2,855,417, Issued; 2,928,786, Pending
3. Continuous Fracture Floodingtm
CDN2,855,417, Issued; 2,928,786 Pending
4. Intermittent Fracture Floodingtm
CDN2,920,201, Pending
5. Conclusions
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

3. Williston Basin Petroleum Conference, IOR Canada Ltd
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

4. 1. Fracture Floodingtm
At present oil prices, oil rates and recovery factors
from
expensive multi-fractured LTO wells
are too low
to carry the high capital costs.
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

5. WHY RAPID OIL RATE DECLINE?
The reservoir rapidly loses its
DRIVE force-
PRESSURE
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

6. The INJECTIVITY PROBLEM
Secondary oil recovery processes require injection of a fluid into the reservoir.
For a given rock, Injectivity is proportional to –
Differential pressure
Viscosity
Surface area available
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

7. By increasing injectivity
OUR SOLUTION
STOP DRILLING NEW WELLS:
Revive
existing multi-fractured LTO wells to
substantial production at
low capital and operating cost
By increasing injectivity
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

8. Fracture Floodingtm is a new patented inexpensive secondary or tertiary reservoir flooding method for application in any consolidated reservoir, but has special significance in multi-fractured light tight oil (LTO) reservoirs like the Bakken Viking and Eagle Ford. The process can increase the oil recovery factor to over 30 or 40%.
Fracture Floodingtm uses the fractures themselves as injection and production conduits to greatly increase well fluid injectivity into the tight rock matrix. For example, with a 4.5-inch horizontal well 9000 feet long, with 50 fractures 35 high and 1000 feet wide, the fractures increase the exposed rock face by 2000-fold compared with an un-fractured well.
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

9. How Fracture Floodingtm works
Alternate fractures are used as
injection and production “wells”
having extremely high injectivity
(Surface area 2000 x horizontal well)
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

10. Selective Injection into the FACES of Fractures
Fracture Flooding
Selective Injection into the FACES of Fractures
from the existing Horizontal Wellbore
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

11. WHY HIGH SWEEP EFFICIENCY?
Uses a PLANAR surface rather than a line source
High rock surface area ensures low linear velocity
Fluid viscosity contrast is low
(Oil viscosity is only 2-3 cP compared with water at 1.0)
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

12. We can selectively inject and produce from fractures from the same wellbore
Red = Injection fractures
Black = Production fractures
4.5-inch horizontal well
…………….. Continuously or Intermittently
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

13. Consider fluid flow in the rock matrix:
Fracture-Floodingtm
(Sweeping from one fracture to the adjacent one)
Primary production produces from near the fracture only
Only oil near the fracture is produced under primary
Production
fracture
Injection point
Injection
fracture
Produce oil only from near the fractures <10% recovery
Produce oil from the entire shale matrix
>40% recovery
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

14. Inexpensive test of Fracture Floodingtm concept
2. Sequential block flooding
Just place a long tubing with a packer into the multi-fractured well
When flooding of the first block is complete, move the packer along to the next block
NCS Multistage can supply this equipment (Marty Stromquist, )
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

15. Sequential Fracture Floodingtm may be conducted at low capital cost by running a coiled tubing to the toe of the horizontal well with an inflatable packer placed between the last two fractures, as illustrated in the following Figure. Fluid injected into the tubing enters the furthest fracture and sweeps oil from the matrix to the adjacent fracture in the direction of the heel, where reservoir fluids drain into the well annulus for conveyance to the surface. Once the injectant breaks-through, the packer is moved one fracture closer to the heel and the next block of matrix is flooded. This process is continued until the entire fractured zone is flooded. The block of rock matrix being flooded benefits from the injection pressure, while the other fractures towards the heel nevertheless produce primary oil into the annulus. Since only part of the fractured zone is being flooded at one time, the oil rates are substantially lower than for Continuous Fracture Floodingtm, but the ultimate oil recovery factor is the same.
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

16. Single well with sequential movement of packers
Inject in tubing and produce from annulus 5
200m
Reservoir
Block
flooded 1 2 3 4
20m 7 8 6
Fig.2

17. Single well with sequential movement of packer
Stage 1. Initial injection at the toe
Oil from annulus
Water Into tubing
Water
Oil
PACKER
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

18. Single well with sequential movement of packer
Stage 2
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

19. 3. Continuous Fracture Floodingtm using dual-channel tubing or pipe
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

20. Simultaneous complete zone flooding
Rather than flood a single block at a time, the entire well/fracture zone can be flooded simultaneously
re-enter
your existing multi-fractured well
with our Dual-Channel tubing completion
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

21. In Continuous Fracture Floodingtm, alternate fractures serve as injection or production fractures, and flooding is conducted from the wellbore, into the injection fractures, through the matrix, into the production fractures and back into the wellbore for production to the surface. This is illustrated in the next Figures. The operation is enabled by our Dual-Channel tool that has separate injection and production flow channels within a pipe that is inserted into the wellbore. The pipe has a packer between each fracture.
Injected flooding fluid may be associated gas, natural gas, CO2, miscible hydrocarbons, water or mixtures, and the fluid can be altered during the life of the flood. The entire fractured region is flooded simultaneously.
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

22. Single segmented tubing: Dual-Channel tubing
Perforation opposite Injection fracture 1 2
Packer
Perforation opposite Production fracture
A packer is placed between the perforations
NCS Multistage can supply this equipment (Marty Stromquist, )
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

23. Modified concentric pipe
Inject through the annulus and produce from the center
NCS Multistage can supply this equipment (Marty Stromquist, )
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

24. Lined and cemented hole
Packer
Simultaneously Fracture Flood and produce the entire fractured zone
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

25. Canadian Bakken Numerical Simulation Parameters
Software CMG STARStm
Model dimensions, meters x 100 x 20
Oil Saturation, %
Water saturation, %
Porosity, %
Temperature, ºC
Initial pressure, kPa ,000
Maximum injection pressure, kPa 23,000
Permeability, mD
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

26. Numerical Simulation Model
Well 1
Well 2
Half-block model
Fracture Flooding
direction
Primary, produce from both wells for X-years
Fracture Flooding, inject water or gas into Well 1 and produce from Well 2 Z x
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

27. Simulation Results: Canadian Bakken
Two approaches were simulated: injection of gas, then water and only water injection. Fluid injection was commenced after 2-years of “flush” oil production, when the well capital costs have been recovered and the oil rate is low. Starting injection at the outset is detrimental because only half the fractures are producing during this high-flow period. Between years 3 and 10, the water flooding oil rate is 332-times as high as for primary recovery and the 10-year oil recovery factor is 37.7%, while the 30-year recovery is 44.6%.
Using a permeability of only 0.05 mD gives a lower Recovery Factor. For the tighter rock, injection of gas is more beneficial than water because of higher injectivity, giving recovery of 24.6%.
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

28. Canadian Bakken, Kh=0.5 mD, Gas then Water
Water Injection
Oil Production Rate, m3/d
Primary Fracture Flooding
FF Oil rate
Years
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

29. From the start of year 3 to the end of year 10,
the average oil rate is
332 times greater with Fracture Floodingtm
compared with Primary production
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

30. Canadian Bakken, Kh=0.5 mD, Gas then Water
45.2 %
Oil recovery factor, % OOIP
Water breakthrough (38.6 %)
Gas
Water
17.1 %
Years
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

31. Canadian Bakken, Kh=0.5 mD, Water Only
Oil production rate, m3/d
Fracture Flooding
Primary
Years
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

32. Canadian Bakken, Kh=0.5 mD, Water Only
Fracture Flooding
37.3 %
Oil recovery Factor, % OOIP
Primary
15.0 %
Years
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

33. Calculating oil rate in the model
The projected oil rate for a full well with X fractures is:
(Oil rate from the model) x (X-1) x (2)
Example-
With 21 fractures and an oil rate of 1-m3/d in the model, the full well oil rate is : 1 x 20 x 2 x 6.29 = bbl/d
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

34. Fracture Floodingtm Canadian Bakken
Oil Recovery Factors
Gas injection rate 1000 m3/d/fracture
Process
Kh = 0.5 mD
Kh= 0.5 mD
Kh = 0.05 mD
Duration
30-YEARS
(9 or 10) YEARS
Primary
17.2
15.0 (10)
13.5
Gas 5- months then Water
45.2
38.3 (10)
20.3
Water Only
44.6
37.3 (9)
19.2
Gas Only
44.7
32.2 (9)
23.6
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

35. Canadian Bakken (30-years)
Oil Recovery Factor versus Log Permeability
ContinuousFracture Flooding
Gas
Water
0.01
0.001
Log Permeability in mD
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

36. Zero downhole capital costs, just open and close sleeves!
4. INTERMITTENT FRACTURE FLOODING
FOR LINED WELLBORES
HAVING SLIDING SLEEVES
Zero downhole capital costs, just open and close sleeves!
NCS Multistage supplies sliding sleeves for liners
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

37. Intermittent Water Injection
Applicable when liner has sliding sleeves
Fractures are designated alternately as
Injection Fractures or Production Fractures
NCS Multistage can supply this equipment (Marty Stromquist, )
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

38. NO DOWNHOLE EQUIPMENT NEEDED
INTERMITTENT FRACTURE FLOODING
NO DOWNHOLE EQUIPMENT NEEDED
Use sliding sleeves to shut in the odd-numbered fractures (Production fractures) and leave open the even-numbered fractures (Injection fractures)
Inject water or gas for 4-months to pressurize the reservoir
Shut-in the injection fractures and open the production fractures for 2-years
Repeat as needed
For cycles after the first cycle, before injecting fluid, briefly produce from the Injection Fractures to flush oil from the wellbore
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

39. Intermittent Fracture Floodingtm may be conducted when the multi-fractured well has sliding sleeves. Applied to partially de-pressured older wells, this process does not entail any downhole capital cost. Again, alternate fractures are labeled Injection Fractures and Production Fractures. The Figure below shows the first stage where the Production Fractures are isolated by the sliding sleeves and the flooding fluid is injected into the wellbore, enters the Injection Fractures and pressurizes the rock matrix. The next Figure shows the second stage where, after a few weeks or months, when pressurization is complete, the injection sleeves are closed and the production sleeves are opened. After the first iteration, prior to re-starting injection, the Injection Fractures are briefly produced to the surface in order to sweep oil from the wellbore, thereby preventing a change in the fluid injectivity caused by a decrease in relative permeability. Our simulations indicated favorable injection periods of 4-months for injection and two-years for production.
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

40. Intermittent Fracture Flooding Using Sliding Sleeves- INJECTION
Inject fluid with Production fractures shut-in:
Pressure-up I P I P I P I P I P X X X X X X X X X X
LEGEND: ss = Sliding Sleeve
I = Injection fracture
P = Production fracture
X = Fracture shut-in
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

41. Intermittent Fracture Flooding Using Sliding Sleeves- PRODUCTION
Produce reservoir fluids with Injection Fractures shut-in I P I P I P I P I P X X X X X X X X X X
LEGEND: ss = Sliding Sleeve
I = Injection fracture
P = Production fracture
X = Fracture shut-in
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

42. Simulation Results
The following two Figures show the numerical simulation results for Intermittent Fracture Floodingtm.
In the first Figure, the blue lines show the water injection for 4-months. The oil rate over increments of 2-years is shown in red, while produced water is in black. High oil rates are sustained over the first 6-cycles, until water breakthrough at year 15. The second Figure shows that the Oil Recovery Factor is % at that time. Thirty-year oil recovery is 41.9%.
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

43. Intermittent Water Injection
Canadian Bakken, Kh=0.5 mD
Intermittent Water Injection
4-Months water injection,
2-years oil production
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

44. Intermittent Water Injection
Canadian Bakken, Kh=0.5 mD
Intermittent Water Injection
41.9 %
Recovery Factor: 37.7 % after 15 years
4-Months water injection,
2-years oil production
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

45. US Bakken Numerical Simulation Parameters
Software CMG STARStm
Model dimensions, meters x 200 x 26
Oil Saturation, %
Water saturation, %
Porosity, %
Temperature, ºC
Initial pressure, kPa 37,922 (5500 psi)
Maximum injection pressure, kPa Variable
Permeability, mD
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

46. Methane Fracture Floodingtm
US Bakken, Kh=0.01 mD
Methane Fracture Floodingtm
Year of
gas injection start
Gas amount
m3 to half the fractures,
m3/d
Max. injection
Pressure
K kPa
30-year
oil
Recovery Factor
Years of
peak
rate
delay
0 (primary) NA
19.4 3
2000
74.7
29.3
7.8 6
5000 80
30.5
4.6 60
28.9
7.3 45
27.9
14.8
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

47. World light tight oil reserves
Reserve data from the October, 2015 US Energy Information Administration Report are provided below.
IOR Canada has filed 4-patents in each of the highlighted Countries, plus Colombia. The most active outside of Canada and the USA are China, Argentina and Russia, where hundreds of wells have been drilled. Fracture Floodingtm could assist many Countries to drastically their oil imports.
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

48. OPPORTUNITIES TO APPLY
FRACTURE FLOODINGtm
COUNTRY
Billions bbls
USA
78.2 (IOR Canada 4-Patents pending)
Russia
74.0
China
32.2
Argentina
27.0
Libya
26.1
UAE
22.6
Chad
16.2
Australia
15.6
Venezuela
13.4
Mexico
13.1
Kazakhstan
10.6
Canada
Oct. 2015
WORLD TOTAL: Billion bbls
US Energy Information Administration
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016

49. Conclusion
Fracture Floodingtm is a promising low-capital process for achieving higher and sustained oil production from a consolidated reservoir.
Williston Basin Petroleum Conference, IOR Canada Ltd., Conrad Ayasse, May 25, 2016