1. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Project-4 Investigation of Multiphase Flow Behavior in Horizontal Oil Wells Cem Sarica

2. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Drivers  Liquid Rich Shales are Immediate Interest of Most Companies Due to Market Forces  There are No Tools to Predict the Behavior of Oil Dominated Multiphase Flow in Horizontal Wells  Understanding of the Flow Behavior is Key in the Design and Operation of Artificial Lift Systems

3. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Objectives  Study Multiphase Flow Characteristics for Horizontal Oil Wells Experimentally/Theoretically  Investigate How the Well Geometry or Trajectory Affects the Flow

4. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Study Plan  Experimental  Modeling

5. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Experimental Study  Operating Conditions of Horizontal Wells will Experimentally be Simulated After Completion of Gas Dominated Flow Testing  Testing will Be Performed for Various Gas and Liquid Flow Rate Combinations That are Typical of Horizontal Oil Well Production

6. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Modeling  Development of a Mechanistic Model (Physics Based) to Predict the Flow Behavior  Experimental Results will be Utilized in Model Development

7. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Deliverables  Understanding of the Oil Dominant Flow Behavior of Horizontal Wells  Experimental Data  Model Describing Flow Behavior

8. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Consideration for Advisory Board  Most Oil Dominated Systems have High GOR  Suggestion  Merge Oil Project-4 into Projects 2 and 3 by Expanding Testing Range of Projects 2 and 3  Justification

9. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Hydrocarbon Fluid Regions (Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar)  Oil  Liquids rich, Super rich, Wet Gas  Higher BTU gas -> NGLs from gas processing  Condensate  Dry gas

10. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Reservoir Gas-Oil Ratio (Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar) GOR indicates gas condensate

11. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Marcellus GOR Histogram (Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar) Data from PA DEP

12. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 McCain’s Generalizations for Fluid Types (Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar) API is not a good indicator of fluid type!

13. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Example Phase Diagram for Wet Gas (Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar) Chart after Bill McCain Clarification Traditional definition of “Wet Gas” reflects gas and condensate only. Current usage is to denote NGL-rich gas. NGL’s are a gas at production conditions and do not impact liquid loading

14. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Marcellus WGR Histogram (Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar) Data from PA DEP

15. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Liquid Volume Fraction (Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar)

16. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Superficial Velocity (5.5-in Casing at 500 psia & 150°F) Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar)

17. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Horizontal Multiphase Flow Patterns (Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar)

18. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Comparison of +1° and +5° Maps (Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar) +1° +5°

19. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Comparison of -1° and -5° Maps (Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar) -1° -5°

20. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Comparison of +5° and -5° Maps (Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar) +5° -5°

21. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Projected Operating Conditions (Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar) 2.5 - 22 Years No “oil” type curve – assume 25-100 STBOPD at 2000 SCF/STB GOR. For gas-water, assume water rate 5-200 STBWPD.

22. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Operating Areas for Oil & Gas on +5° FPM (Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar)

23. Horizontal Well Artificial Lift Projects Advisory Board Meeting, August 16, 2012 Operating Areas for Oil & Gas on -5° FPM (Rob Sutton Presentation at 3 rd Annual Appalachian Basin Gas Well Deliquification Seminar)