1. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Project-2 Investigation of Artificial Lift Techniques in Horizontal Gas Wells Cem Sarica

2. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Drivers  Several Artificial Lift Methods Have Been Tried in Horizontal Wells on Trial & Error Basis  Velocity Strings, Surfactants (Soap Sticks Or Liquid Soap Injection), Beam Pumping, Plunger Lift, and Gas Lift  Performance and Applicability of Each Methods is Strongly Influenced by the Multiphase Flow Behavior and Distribution of Fluids in the Well

3. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Objectives  Experimentally and Theoretically Investigate Performance of Various Artificial Lift Methods to Unload Horizontal Wells  Collect Field Data and Summarize Field Practices  Develop Performance Evaluation Tools Based on Flow Dynamics and Well Construction Profile  Generate an Unloading Method Selection Criteria Based on Field Data, and Experimental and Theoretical Results

4. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Study Plan  Experimental  Design and Construct a Versatile Facility to Accommodate All Artificial Methods  Perform Testing Based on Prioritized Schedule  Model Development for Considered Artificial Lift Method  Develop an Artificial Lift Selection Tool

5. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Experimental Study  Operating Conditions of Horizontal Wells Will Experimentally Be Simulated Using a Large Scale Experimental Facility  Facility is Being Designed With the Following Features  One and Two Undulations Will Start With One Undulation  Large Pipe Diameter, 5-in. ID  Gas and Liquid Feeds Along the Test Section to Mimic the Horizontal Well Fractures  Toe-up and Toe-down Configurations  Ability to Incorporate and Test Various Artificial Lift Methods

6. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Experimental Study …  Testing Program  Investigation of Efficacy of Various Artificial Lift Methods  Various Gas and Liquid Flow Rate Combinations Typical of Liquid Loading Detailed Test Matrix Will Be Developed Based on Final Configuration of Test Section and Artificial Lift Methods to Be Investigated

7. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Large Scale Facility  Gas: Air  Liquid: Water  Liquid Superficial Velocity 0.07 to 2 ft/s  Gas Superficial Velocity 0.07 to 6 ft/s

8. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Large Scale Facility … 6 in High Pressure Loop Machine Shop 5 ’’ Main Tower Last Support Process Facility Supports 310 ft (744D)

9. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Large Scale Facility … 5 ’’ 310 ft (744D) 40 ft (120D)

10. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Large Scale Facility …  Estimated Construction Schedule  Engineering Design – November 2012  Manufacturing of the Structure – March 2013  Assembly of the Facility – July 2013  Start of Testing – September 2013  Estimated Cost Without Artificial Lift Equipment  $300,000

11. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Modeling  Mechanistic Model (Physics Based) to Predict the Efficacy of Various Artificial Lift Methods  Experimental and Field Data Will Be Utilized in Model Development

12. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Testing Priority  Several Artificial Lift Techniques Need to be Prioritized for Testing  Criteria Cost Chance of Success Operating Window  Infrastructure Requirements

13. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Testing Priority …  Based on Cost Criteria (Subjective and Potentially Biased Ordering)  Velocity String  Foam  Plunger Lift  Venturi  Gas Lift  ESP  Sucker Rod

14. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Testing Priority …  TU Needs Guidance from Membership on Testing Priority  Questionnaire will be Sent to Membership

15. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Random Thoughts on Various Artificial Lift Methods  Velocity Strings  Angle Effects on Effective Velocity  Effect of Eccentricity  Gas Lift  No Head Reduction Help  Increase in Gas Velocity  Compression Requirements  Higher Pressures  Foam  Documented Success for Vertical  Not Known for Horizontal  Low Velocities can be a Serious Issue

16. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Random Thoughts on Various Artificial Lift Methods …  ESP  Typically Good for High Liquid Flow Rates  Fluid Segregation at Low Spots  Exposure to Dry Gas  Power Availability  Plunger Lift  Fall Issues in Horizontal  Dog Leg Severity  Sucker Rods  Lifting Depth and Rod Life Due to Well Geometry Problems (Build Rate, Dog Leg Severity  May Need Pump Controller to Deal With Slugging

17. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Deliverables  Unloading Performance of Various Artificial Lift Methods and Their Comparative Analysis  Experimental Data