SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help...

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SERVING THE OIL AND GAS INDUSTRY SERVING THE OIL AND GAS INDUSTRY SINCE 1989 SINCE 1989

Transcript of SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help...

Page 1: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

SERVING THE OIL AND GAS INDUSTRY SERVING THE OIL AND GAS INDUSTRY SINCE 1989SINCE 1989

Page 2: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

What’s new in Polymer What’s new in Polymer Technology?Technology?

New tools to help get the most oil & New tools to help get the most oil & gas from your wells.gas from your wells.

Page 3: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Polymer Services, LLCPolymer Services, LLC

Expertise: Design, field application, and Expertise: Design, field application, and evaluation of polymer gel treatments since 1989.evaluation of polymer gel treatments since 1989.

Locally owned and operated. Management and Locally owned and operated. Management and employees are all natives of the immediate area.employees are all natives of the immediate area.

Services: Assistance with candidate selection Services: Assistance with candidate selection and treatment design, polymer products, and treatment design, polymer products, laboratory, field implementation equipment and laboratory, field implementation equipment and experienced crews and project supervision.experienced crews and project supervision.

Headquarters and Field Offices: Plainville, Headquarters and Field Offices: Plainville, Kansas, USA.Kansas, USA.

Page 4: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

General Overview General Overview In recent years, POLYMER SERVICES has pumped a total of In recent years, POLYMER SERVICES has pumped a total of

2,005,805 barrels of gel in 782 treatments. (as of March 1, 2010) 2,005,805 barrels of gel in 782 treatments. (as of March 1, 2010) Approximately 1500 earlier treatments were pumped (1989-Approximately 1500 earlier treatments were pumped (1989-2002) using older technologies.2002) using older technologies.

It is estimated the treatments have yielded at least 3,500,000 It is estimated the treatments have yielded at least 3,500,000 barrels of additional oil to date.barrels of additional oil to date.

Average incremental oil production per well is 4475 bbls, Average incremental oil production per well is 4475 bbls, including unsuccessful treatments.including unsuccessful treatments.

Indicates a gross value of at least $175,000,000.00 (based on Indicates a gross value of at least $175,000,000.00 (based on $50/bbl oil)$50/bbl oil)

Page 5: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

What is Polymer Gel?What is Polymer Gel?

The original process developed(1960’s), by Phillips The original process developed(1960’s), by Phillips Petroleum Company as a way to reduce water Petroleum Company as a way to reduce water production in the Bemis-Shutts field of Kansas production in the Bemis-Shutts field of Kansas (chrome/redox system) (chrome/redox system)

The first polymer treatment ever pumped anywhere in the world, The first polymer treatment ever pumped anywhere in the world, was by Phillips Petroleum Company in the Bemis-Shutts Field in was by Phillips Petroleum Company in the Bemis-Shutts Field in Ellis County, Kansas in the late 1960s, under a great deal of Ellis County, Kansas in the late 1960s, under a great deal of secrecy.secrecy.

Today’s gels are created when polymer is mixed in Today’s gels are created when polymer is mixed in water and cross linked with a trivalent chromium ion. water and cross linked with a trivalent chromium ion.

The technology has evolved from early biopolymers to modern The technology has evolved from early biopolymers to modern synthetic gels which are now used worldwide.synthetic gels which are now used worldwide.

Page 6: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Polymer and crosslinker are mixed on the surface as Polymer and crosslinker are mixed on the surface as opposed to previous systems that (hopefully) mixed opposed to previous systems that (hopefully) mixed in the reservoir. This was known as in-situ gellation.in the reservoir. This was known as in-situ gellation.

Gel Strength is a function of polymer concentration.Gel Strength is a function of polymer concentration.

Gels having viscosity slightly greater than fresh Gels having viscosity slightly greater than fresh water to that of rubber can be created in virtually any water to that of rubber can be created in virtually any water, at temperatures up to 270water, at temperatures up to 270 F, in high TDS, H2S F, in high TDS, H2S and CO² environments.and CO² environments.

Continued:Continued:

Page 7: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Used to shut off unwanted water in producing oil Used to shut off unwanted water in producing oil and gas wells, and to improve conformance at and gas wells, and to improve conformance at water/CO² injection wells.water/CO² injection wells.

Considered to be permanent after placement.Considered to be permanent after placement.

Special equipment is normally required to Special equipment is normally required to properly blend and pump polymer gels.properly blend and pump polymer gels.

Page 8: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Modern Chemistry Options Modern Chemistry Options

The current system used is a modified tri-The current system used is a modified tri-chrome system known as WATERBLOCK, chrome system known as WATERBLOCK, based on technology originally developed by based on technology originally developed by Phillips Petroleum Company, and is largely Phillips Petroleum Company, and is largely responsible for the current high success rate in responsible for the current high success rate in the Arbuckle dolomite and other formations in the Arbuckle dolomite and other formations in Kansas.Kansas.

The key to current successes is the use of this The key to current successes is the use of this chromium III gel system as opposed to older chromium III gel system as opposed to older crosslinking technologies, which were less crosslinking technologies, which were less robust or forgiving than the current system.robust or forgiving than the current system.

Page 9: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

What are the benefits?What are the benefits?

This chemistry was originally developed for stable This chemistry was originally developed for stable gels in deeper hotter wells than we normally find in gels in deeper hotter wells than we normally find in Kansas. It was also intended for “hostile” Kansas. It was also intended for “hostile” environments, which include much higher salinities, environments, which include much higher salinities, high H2S counts, high TDS brines, etc. Polymer high H2S counts, high TDS brines, etc. Polymer Services has modified this chemistry to also be very Services has modified this chemistry to also be very effective in shallow low temperature wells.effective in shallow low temperature wells.

A benefit to this chemistry is greater final gel A benefit to this chemistry is greater final gel strength and fewer problems with polymer strength and fewer problems with polymer production when the well is turned back on, and production when the well is turned back on, and greater long term gel stability in our “relatively greater long term gel stability in our “relatively tame” wells.tame” wells.

Page 10: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

What else do we do differently?What else do we do differently?

POLYMER SERVICES uses “Liquid Polymer” POLYMER SERVICES uses “Liquid Polymer” which is custom blended as a “pre-wetted” which is custom blended as a “pre-wetted” solution, instead of the dry powder used in other solution, instead of the dry powder used in other common processes.common processes.

Pre-wetted solution means each individual Pre-wetted solution means each individual polymer grain is pre-hydrated in it’s own water polymer grain is pre-hydrated in it’s own water droplet, then suspended in a mineral oil solution. droplet, then suspended in a mineral oil solution. This allows the polymer to hydrate much more This allows the polymer to hydrate much more rapidly for a more complete and effective rapidly for a more complete and effective crosslink, even at lower temperatures.crosslink, even at lower temperatures.

Page 11: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

How does this help?How does this help?

A pre-wetted polymer solution is much A pre-wetted polymer solution is much easier to fully hydrate and completely easier to fully hydrate and completely dissolve in all types, hardness and dissolve in all types, hardness and temperatures of mix water.temperatures of mix water.

Better dissolution means more complete Better dissolution means more complete cross-linking, better final gel strength and cross-linking, better final gel strength and stability, and no produced polymer when stability, and no produced polymer when the well is re-started.the well is re-started.

Page 12: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

How have Polymer jobs today How have Polymer jobs today improved compared to what has improved compared to what has

been done in the past?been done in the past?

Today’s gels are more stable in a wide range of Today’s gels are more stable in a wide range of pH, high temperature, high HpH, high temperature, high H²S, salinity and high ²S, salinity and high TDS environments.TDS environments.

Today’s treatments are much larger in volume, Today’s treatments are much larger in volume, which allows for deeper penetration into the which allows for deeper penetration into the reservoir, thus yielding significantly greater reservoir, thus yielding significantly greater amounts of incremental oil and longer effective amounts of incremental oil and longer effective treatment life. treatment life.

Page 13: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Well candidate selection criteriaWell candidate selection criteria

Significant remaining mobile hydrocarbons in Significant remaining mobile hydrocarbons in place (cumulative production history is usually a place (cumulative production history is usually a good indication).good indication).

Wells producing at or near their economic limit Wells producing at or near their economic limit due to costs associated with excessive water due to costs associated with excessive water production.production.

High water disposal and/or lifting costs.High water disposal and/or lifting costs. Producers in natural waterdrive reservoirs.Producers in natural waterdrive reservoirs. Continued:Continued:

Page 14: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Well candidate selection criteria Well candidate selection criteria

Producers in water floods are treatable, but Producers in water floods are treatable, but recommend treating injectors.recommend treating injectors.

Sometimes both the injection well and offending Sometimes both the injection well and offending producers are treated for optimum results.producers are treated for optimum results.

Better chance of increasing oil production when Better chance of increasing oil production when treating wells that have high producing fluid treating wells that have high producing fluid levels.levels.

High permeability contrast between oil and water High permeability contrast between oil and water saturated rocksaturated rock

Vuggy and/or naturally fractured reservoir.Vuggy and/or naturally fractured reservoir.

Page 15: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Example of High Permeability Example of High Permeability contrastcontrast

Arbuckle core Arbuckle core recovered in Rooks recovered in Rooks County, Kansas County, Kansas during a deepening during a deepening operation on a operation on a workover rig.workover rig.

Page 16: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Example of naturally fractured Example of naturally fractured Arbuckle dolomiteArbuckle dolomite

Another view of the Another view of the workover core, workover core, showing a showing a combination of vugs combination of vugs and fractures.and fractures.

Page 17: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Key Factors Key Factors in designing gel treatments in designing gel treatments

The type of gel polymer/crosslinker and The type of gel polymer/crosslinker and concentrationconcentration

Treatment volumeTreatment volume

Treating procedureTreating procedure

Page 18: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Treatment Design InformationTreatment Design Information

Wellbore schematic/dataWellbore schematic/dataTubing size & depth, casing size & depth, Tubing size & depth, casing size & depth,

perforated/openhole depths, beam or submersible perforated/openhole depths, beam or submersible pump, etc.pump, etc.

Porosity/electric logsPorosity/electric logs Core reportsCore reports Oil and Water production historyOil and Water production history Fluid pump-in data from acid jobs or other workFluid pump-in data from acid jobs or other work Cumulative recovery mapCumulative recovery map Structure/isopach mapStructure/isopach map Oil price and water handling costOil price and water handling cost

Page 19: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Sizing the TreatmentSizing the Treatment

DISTANCE…DISTANCE…Radial or linear flow calculationRadial or linear flow calculation50-1000 Bbls. Per porosity-foot (depends on 50-1000 Bbls. Per porosity-foot (depends on

well productivity)well productivity) VOLUME…VOLUME…

Estimate daily capacity of well to produce fluid Estimate daily capacity of well to produce fluid at maximum draw-down, then use that volume at maximum draw-down, then use that volume to determine minimum gel treatment volumeto determine minimum gel treatment volume

Need static and producing FL, and producing Need static and producing FL, and producing rate(s)rate(s)

Page 20: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Water Control In a Gas WellWater Control In a Gas Well

Page 21: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Near Wellbore Water ControlNear Wellbore Water Control

Page 22: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Near Wellbore ChannelingNear Wellbore Channeling

Page 23: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Before Pumping the JobBefore Pumping the Job

Ensure that the wellbore is clean, sand pump or Ensure that the wellbore is clean, sand pump or otherwise clean out well to original TD.otherwise clean out well to original TD.

An AGGRESSIVE acid cleanup treatment has An AGGRESSIVE acid cleanup treatment has proven to be very effective proven to be very effective ((1500-3000 gallons 15% NEFE, 1500-3000 gallons 15% NEFE, pump away with water at high rate).pump away with water at high rate).

Establish a maximum treating pressure. Use Establish a maximum treating pressure. Use calculated frac gradient for field or run step-rate calculated frac gradient for field or run step-rate test if necessary.test if necessary.

Continued:Continued:

Page 24: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Before Pumping the JobBefore Pumping the Job

Select an acceptable source of water that will Select an acceptable source of water that will be used to blend and pump the treatment be used to blend and pump the treatment (fresh. Kcl, or clean produced water which has been tested for (fresh. Kcl, or clean produced water which has been tested for polymer compatibility prior to treatment).polymer compatibility prior to treatment).

Select a polymer-compatible biocide for mix Select a polymer-compatible biocide for mix water (mix at concentration recommended by water (mix at concentration recommended by the supplier).the supplier).

Set packer on tubing to isolate zone to be Set packer on tubing to isolate zone to be treated.treated.

Page 25: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Pressure Monitoring During Pressure Monitoring During TreatmentTreatment

-3070

170270370470570670770870970

107011701270137014701570

1670177018701970

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Cumulative BBLS Injected

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Pressure Rate BHP Expected Positive WHP PPM

Page 26: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Mississippian DolomiteMississippian DolomiteHodgeman County, KansasHodgeman County, Kansas

Pre-treatment oil rate was 5 BOPD, 870 Pre-treatment oil rate was 5 BOPD, 870 BWPD.BWPD.

Treatment was 3280 bbl WATER-BLOCK Treatment was 3280 bbl WATER-BLOCK 247, pumped July, 2007.247, pumped July, 2007.

Well averaged 50 BOPD, 275 BWPD Well averaged 50 BOPD, 275 BWPD during first 30 days after treatment.during first 30 days after treatment.

Cumulative production to date: 4042 Cumulative production to date: 4042 incremental barrels, incremental barrels,

Treatment cost was $40,496.00.Treatment cost was $40,496.00.

Page 27: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Mississippian DolomiteMississippian Dolomite

0200400600800

10001200

Jul-07 Aug-07

Sep-07

Oct-07 Nov-07 Dec-07

Jan-08 Feb-08

Page 28: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Mississippi DolomiteMississippi DolomiteHodgeman County, KansasHodgeman County, Kansas

Well was making 24 BOPD, 3400 BWPD Well was making 24 BOPD, 3400 BWPD prior to treatment.prior to treatment.

Treatment was 7520 bbl WATER-BLOCK Treatment was 7520 bbl WATER-BLOCK 247, pumped October, 2007.247, pumped October, 2007.

Peak production 1Peak production 1stst month after treatment: month after treatment: 64 BOPD, 340 BWPD.64 BOPD, 340 BWPD.

Current production 27 BOPD, 363 BWPDCurrent production 27 BOPD, 363 BWPD Incremental oil to date: 4200bblsIncremental oil to date: 4200bbls

Page 29: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Mississippi dolomite, Well #1, Mississippi dolomite, Well #1, HodgemanCounty, KansasHodgemanCounty, Kansas

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90days aftertreatment

120days aftertreatment

5 Monthsafter

treatment

Page 30: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Miller #2Miller #2Hodgeman County, KansasHodgeman County, Kansas

Mississippian (Osage) well was making 6 Mississippian (Osage) well was making 6 BOPD, >600 BWPD prior to treatment.BOPD, >600 BWPD prior to treatment.

3120 bbl WaterBlock-247 pumped 3120 bbl WaterBlock-247 pumped beginning 12/10-2007.beginning 12/10-2007.

IP after treatment was 67 BOPD, 53 IP after treatment was 67 BOPD, 53 BWPD.BWPD.

Page 31: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Miller #2 (continued)Miller #2 (continued)

Current production reported to be +/- 40 Current production reported to be +/- 40 BOPD, 80 BWPD, not pumped off.BOPD, 80 BWPD, not pumped off.

Estimated incremental oil to date is 3060 Estimated incremental oil to date is 3060 bbl.bbl.

Total workover payout occurred in Total workover payout occurred in approximately 29 days.approximately 29 days.

Page 32: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Miller #2 Miller #2 Hodgeman County, KansasHodgeman County, Kansas

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Page 33: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

White Eagle ResourcesWhite Eagle Resources

On June 2, 2003, a 10 well project was On June 2, 2003, a 10 well project was commenced In the Bemis-Shutts field for commenced In the Bemis-Shutts field for White Eagle Resources.White Eagle Resources.

Prior to treatment, the subject wells Prior to treatment, the subject wells produced a combined average of 47 produced a combined average of 47 BOPD and 12,000 BWPD.BOPD and 12,000 BWPD.

Page 34: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Overview of the White Eagle Overview of the White Eagle treatmentstreatments

Treatment sizes ranged from 1100 barrels Treatment sizes ranged from 1100 barrels to 5100 barrels of gel, depending on the to 5100 barrels of gel, depending on the pressure response during treatment.pressure response during treatment.

A total of 38,320 barrels of gel were A total of 38,320 barrels of gel were pumped on the 10 well project.pumped on the 10 well project.

Pressure response ranged from vacuum to Pressure response ranged from vacuum to a maximum of 750 psi surface pressure.a maximum of 750 psi surface pressure.

Page 35: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

White Eagle ResultsWhite Eagle Results

Individual well productions after treatment Individual well productions after treatment ranged from 16 BOPD to 145 BOPD, on ranged from 16 BOPD to 145 BOPD, on an average of no more than 150 BPD total an average of no more than 150 BPD total fluid.fluid.

Peak production occurred in early Peak production occurred in early October, at just over 500 BOPD.October, at just over 500 BOPD.

Current production is 180-200 BOPD.Current production is 180-200 BOPD.

Page 36: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Economic ValueEconomic Value

White Eagle Resources estimated the Net White Eagle Resources estimated the Net Present Reserve value of the wells has Present Reserve value of the wells has increased from approximately $1,000,000 increased from approximately $1,000,000 to approximately $4,000,000, as a result of to approximately $4,000,000, as a result of the treatments.the treatments.

Incremental oil production is estimated to Incremental oil production is estimated to be at least 81,000 barrelsbe at least 81,000 barrels

All estimations are based on totals as of January All estimations are based on totals as of January 20062006

Page 37: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

White Eagle SummaryWhite Eagle Summary

Page 38: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

After the first 10 well studyAfter the first 10 well study

White Eagle resources did an additional White Eagle resources did an additional 14 Waterblock 247 treatments 14 Waterblock 247 treatments

Between October of 2003 and April of Between October of 2003 and April of 2006 an additional 47,975bbls of 2006 an additional 47,975bbls of Waterblock 247 was pumpedWaterblock 247 was pumped

Average size of treatment was 3960 bblsAverage size of treatment was 3960 bbls

Page 39: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Property sold in 2006Property sold in 2006 New operator has continued the successful New operator has continued the successful

program, which is now ongoing on a continuous program, which is now ongoing on a continuous basis.basis.

Has pumped an additional 44 treatments since Has pumped an additional 44 treatments since 2006, using our exclusive WATERBLOCK-247 2006, using our exclusive WATERBLOCK-247 polymer gel system.(54 treatments since project polymer gel system.(54 treatments since project inceptioninception

Average treatment has been in excess of 3650 Average treatment has been in excess of 3650 barrels.barrels.

Page 40: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

With a combined total of 246,835 bbls of With a combined total of 246,835 bbls of Waterblock 247 polymer pumped Waterblock 247 polymer pumped

Treatments resulted in additional 215,946 Treatments resulted in additional 215,946 bbls of oil (as of October 2009)bbls of oil (as of October 2009)

Increase in revenue (based on $50.00 bbl) Increase in revenue (based on $50.00 bbl) $10,797,300.00$10,797,300.00

Combined total production since project Combined total production since project inception is now 671,571 bbls of oilinception is now 671,571 bbls of oil

Page 41: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

An Example of a Successful Gas An Example of a Successful Gas Well Treatment in the Well Treatment in the

Viola Limestone formationViola Limestone formationPratt County, KsPratt County, Ks

Treatment was 150 bbl WATER-BLOCK 247Treatment was 150 bbl WATER-BLOCK 247 Production before treatment:Production before treatment:

0 MCF, 300 BWPD0 MCF, 300 BWPD

Initial production after treatment:Initial production after treatment: 85 MCF, 0 BWPD85 MCF, 0 BWPD

Current production:Current production: 247 MCF, 0 BWPD247 MCF, 0 BWPD

Page 42: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Viola limestoneViola limestoneComanche County, KsComanche County, Ks

Treatment was 425 bbl WATER-BLOCK 247Treatment was 425 bbl WATER-BLOCK 247

Production before treatment:Production before treatment: 50 mcf gas, 900+ BWPD50 mcf gas, 900+ BWPD

Initial production:Initial production: 450 mcf gas, 250 BWPD450 mcf gas, 250 BWPD

..

Page 43: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Snyderville sandSnyderville sandBarber County, KansasBarber County, Kansas

Production prior to treatment:600/BWPD, 100 mcf Production prior to treatment:600/BWPD, 100 mcf gas (declining)gas (declining)

Treatment was 75bbl HDLV polymer with a maximum Treatment was 75bbl HDLV polymer with a maximum shut in of 5 daysshut in of 5 days

Initial Production after treatment:250/mcf and 200 Initial Production after treatment:250/mcf and 200 BWPD.BWPD.

The water depleted to 52 BWPD and the gas increased to The water depleted to 52 BWPD and the gas increased to 600mcf one month after treatment. 600mcf one month after treatment.

18 months after treatment production stabilized at 300mcf 18 months after treatment production stabilized at 300mcf with minimal water production.with minimal water production.

Page 44: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Snyderville sand initial resultSnyderville sand initial result

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Page 45: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Snyderville SandSnyderville SandBarber County, KansasBarber County, Kansas

Long term resultsLong term resultsWater Control In a Gas Well

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Page 46: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Polymer Water Shutoff TreatmentsPolymer Water Shutoff Treatments

ProblemProblem:: Excessive water production (typical candidate Excessive water production (typical candidate

well producing 500-5000 BWPD)well producing 500-5000 BWPD) .5 thru 2% Oil cut .5 thru 2% Oil cut High producing fluid levelsHigh producing fluid levels High electricity costs ranging from $600 to High electricity costs ranging from $600 to

$6000/month per well$6000/month per well Wells shut in due to lack of disposal capacity / Wells shut in due to lack of disposal capacity /

high lifting costshigh lifting costs

ContinuedContinued::

Page 47: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Polymer Water Shutoff TreatmentsPolymer Water Shutoff Treatments

SolutionSolution:: Polymer water shut-off get treatments are Polymer water shut-off get treatments are

designed & pumped based on candidate designed & pumped based on candidate selection criteria, available well data and selection criteria, available well data and experience with similar wells in the areaexperience with similar wells in the area

Treatment size have ranged from 75 BBL Treatment size have ranged from 75 BBL to over 10,000 BBL Waterblock 247, to over 10,000 BBL Waterblock 247, depending on individual well conditionsdepending on individual well conditions

Continued:Continued:

Page 48: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Polymer Water Shutoff TreatmentsPolymer Water Shutoff Treatments

Result:Result: Average water production per well is reduced Average water production per well is reduced

75-90%75-90% Daily oil rate typically increases from 50% to Daily oil rate typically increases from 50% to

more than 60 times the original productionmore than 60 times the original production Incremental oil production ranges from 800 to Incremental oil production ranges from 800 to

5400 barrel of oil per month have been 5400 barrel of oil per month have been reported.reported.

Electricity savings ranges from $500 to Electricity savings ranges from $500 to $3500/month per well$3500/month per well

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ConclusionsConclusions

Much has been learned about proper candidate Much has been learned about proper candidate selection, preparation of the well for treatment, selection, preparation of the well for treatment, and optimizing treatment designs, based on a and optimizing treatment designs, based on a wide cross-section of treatments and responses wide cross-section of treatments and responses in the field.in the field.

This knowledge has led to much greater success This knowledge has led to much greater success rates and incremental oil recoveries from rates and incremental oil recoveries from polymer gel applications in a wide variety of polymer gel applications in a wide variety of reservoirs.reservoirs.

Page 50: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Conclusions (continued)Conclusions (continued)

Improved polymer gel technology has vastly Improved polymer gel technology has vastly improved results in all areasimproved results in all areas

The improved results can largely be attributed to The improved results can largely be attributed to the following changes which have occurred in the following changes which have occurred in the past few years:the past few years:

A transition from older cross-linking technology A transition from older cross-linking technology to the current chromium III gel technology, which to the current chromium III gel technology, which has become the standardhas become the standard

Continued:Continued:

Page 51: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Conclusions (continued)Conclusions (continued)

Our WATERBLOCK cross-linking technology, Our WATERBLOCK cross-linking technology, combined with precision blended, pre-wetted combined with precision blended, pre-wetted liquid polymer instead of dry powder has shown liquid polymer instead of dry powder has shown greater final gel strength and better long term gel greater final gel strength and better long term gel stability.stability.

Our process has greatly reduced problems and Our process has greatly reduced problems and costs associated with costs associated with polymer flowbackpolymer flowback. .

Corrosion problems associated with other Corrosion problems associated with other earlier technologies have not been experienced earlier technologies have not been experienced with this system.with this system.

Page 52: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

ConclusionsConclusions

The WATERBLOCK® modifed The WATERBLOCK® modifed tri-chrome technology tri-chrome technology

developed and pumped by developed and pumped by POLYMER SERVICES has POLYMER SERVICES has shown superior results with shown superior results with

fewer post-treatment problems fewer post-treatment problems and better long-term gel stability and better long-term gel stability

than earlier technologies.than earlier technologies.::

Page 53: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Unit #1 in service from 1987 thru 1992Unit #1 in service from 1987 thru 1992(The Green Weenie )(The Green Weenie )

Pictured on location July 12, 1990,Pictured on location July 12, 1990,Molz Oil Company, O’Hare #1Molz Oil Company, O’Hare #1

Barber County, KansasBarber County, Kansas

Page 54: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Gel Treatment in Progress Gel Treatment in Progress Polymer Unit #2 (Big Bertha)Polymer Unit #2 (Big Bertha)

In Service from December 1992 Until PresentIn Service from December 1992 Until Present

White Eagle Resources, Inc.White Eagle Resources, Inc.Carmichael #4Carmichael #4

July, 2003July, 2003

Page 55: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Polymer Unit #3 (The Mother Ship)Polymer Unit #3 (The Mother Ship) Unit placed in service December 2004Unit placed in service December 2004

Page 56: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Polymer Unit #4 Polymer Unit #4 (Starship Enterprise)(Starship Enterprise)

Placed in service February 15, 2008Placed in service February 15, 2008

Page 57: SERVING THE OIL AND GAS INDUSTRY SINCE 1989. What’s new in Polymer Technology? New tools to help get the most oil & gas from your wells.

Thank you for your time!Thank you for your time!

Call us anytime with questions or to discuss Call us anytime with questions or to discuss possible applications.possible applications.

800-625-3791800-625-3791