1. Unocal Alaska Web-Based Gas-Lift Surveillance Paul Burtis Chris Ruff Scott Herman February 2002

2. Unocal Alaska Operations Map

3. Typical Gas-Lift Completion

4. Typical Gas-Lift Surveillance Processes Vendor-Driven Predominant at Unocal Unocal delegates design and surveillance Results in unknown optimization level Operator Staff-Driven Engineer Part-Time Work typically prioritized downward Technician Full-Time Optimum results

5. Typical Gas-Lift Surveillance Processes Vendor-Driven Timetable driven surveillance Engineering staff typically uninformed about key design and operation parameters Operators not fully aware of these parameters

6. Unocal Alaska Gas Lift Program - 2000

7. Unocal Alaska Gas Lift Surveillance Process Dedicated staffing Informed decisions based on data Web-assisted surveillance

8. Surveillance Program - 2000 Optimization work performed on 19% of active gas lift wells in 2000 Gas lift diagnostics run on 34% of active gas lift completions

9. Unocal Alaska Web-Based Surveillance

12. Surveillance Program - 2001 Results Previous program well turnaround = 60 days Current process = 2 days Average production deferment = 50 bopd Deferred yearly program revenue = $480,000

13. Conclusions Gas lift completions require continuous surveillance to yield optimum returns Web-based technology is available to systematically change current surveillance This technology requires key staff understand their key performance / design parameters