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Utilizing Operating Systems to Effectively

Manage Completions and Production

Chemicals

January 2013

Todd Wauters

Global Business and Development Manager

Becky Ogden

Technical Training Manager

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Safety Moment

Emergency exits and evacuation discussion

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Overview

Introductions

MVP 2.0

– System Description

– Key Differentiators

Case Histories

– West Texas

– Rocky Mountains

– East Texas

– Northeast

Conclusion

Q & A

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MVP 2.0 System Description

Multi-Value Plus

– Chemical reporting system designed and maintained internally by Multi-Chem

– Combines the customer data with analysis and production data which is exportable into multiple formats

– Examples

• Treatment Program Information

• FRAC Reporting

• Customer Cost and Usage Reports

• Observations

• Field Analyses

• Failure Analyses

• Customer Well/Production Information

• Lab Analysis and Data

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MVP 2.0 Key Differentiators

Accessible via Internet, 24-7

Real time, trending data linked to actual locations/injection

points

Key Performance Indicators- aka KPI’s

Monitoring reports (field tests as well as laboratory tests)

MSDS/PDB’s

Reporting speed & efficiency

Tool for system reviews/DOT Audits

Combines multiple reports to provide complete location

histories without further research

Automatic backup of data each night

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MVP 2.0 Key Differentiators

Linked with laboratory systems to provide actual lab reports

uploaded daily, accessible for a registered user from any

computer with internet access

Complete application and monitoring analysis: (Drill down to

a specific Location)

Financial Reports: Executive Summary (50,000’ overview)

down to location specific

Can be drilled down to the specific well/location to bring all

database/analytical/usage reports into one consolidated

report

Recommendations can be uploaded and viewed by locations

with the history stored within the system

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MVP 2.0 Examples

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MVP 2.0 Examples

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MVP 2.0 Examples

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MVP 2.0 Examples

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MVP 2.0 Examples

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MVP 2.0 Examples

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MVP 2.0 Examples

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Case Histories – West Texas

Customer A-

– Iron Sulfide (FeS) was causing rod parting and rod cutting of the tubulars which resulted in a high frequency of failures (reducing production and increasing costs)

– MVP 2.0 was utilized to monitor various chemical treatments which were not bringing down the FeS levels (Initial well bore grindouts indicated a 30% interface with 4% water wet solids)

– Change to AcroClear treatment program was monitored by tracking grindouts and failures by location

Program results-

– Clean grindouts and elimination of FeS

– Significant failure reduction

– Production increase of 4 bbls/day

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Case Histories – West Texas

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Well Name/Number

Customer A- Tracking Production Data

BBls Oil Pre-AcroClear BBls Oil Post AcroClear

Well A Well B Well C Well D Well E

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Case Histories – West Texas

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Customer A- Tracking Failure Reduction

Failures/year Pre-AcroClear Failures Post-AcroClear

Well 1 Well 2 Well 3 Well 4 Well 5 Well 6

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Case Histories – West Texas

Customer B-

– Injection well was not taking water due to high amounts of

FeS

– MVP 2.0 analysis tracking and trending tools were used to

monitor millipore filtration in conjunction with an AcroClear

treatment program

Results-

– The well which was not previously taking water started

taking water at 250 bbls/day at 1750 PSI

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Case Histories – West Texas

Customer B- Tracking Lab and Field Analysis

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Case Histories – West Texas

Customer C-

– Pipeline customer with severe corrosion rates

– MVP 2.0 coupon monitoring and failure reporting

were used to trend corrosion rates in MPY’s

– Effective biocide program was developed as a direct

result of coupon corrosion rate trending within the

system

Results-

– Corrosion rate reduction of 2.02 mpy to 0.25 mpy

– BS&W reduced from 1.5% to 0.1%

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Case Histories – West Texas

Customer C- Tracking Corrosion Rates and Failures

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Case Histories – Rocky Mountains

Customer D-

– Water disposal well was not taking water due to high levels of FeS and safety concerns were high due to increasing H2S levels

– A chemical program consisting of 3 combined chemicals was tracked in MVP 2.0 and shown to be ineffective at reducing FeS and H2S

– In addition, this customer was replacing a minimum of 16 filters per day due to clogging, and incurring significant costs from filter replacements, labor, and heightened safety hazards from potential H2S exposure

– The customer and operators were able to utilize MVP 2.0 combined with an AcroClear treatment program to monitor failure rates and program costs

Results-

– Initial chemical program cost was $89,000 per year combined with $16,934 in filter replacements, labor, hazard removal and safety concerns

– Chemical program after utilizing MVP 2.0 and AcroClear- $31,000 per year, no filter replacements at the 26 day point, and FeS and H2S elimination

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Case Histories – Rocky Mountains

Customer D- Tracking Water Injection Quality

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Case Histories – East Texas

Customer E-

– Overall operations cost reduction was identified as the primary focus for the customer

– The Multi-Chem team identified pump optimization as the leading contributor to cost reduction

– MVP 2.0 was used to trend the effects that modified pump rates and custom chemicals were having on production rates

Results-

– Reduced costs in all measured categories

– Cost related to production reduced as well ($/mcf, $/bbl)

– Chemical usage reduced by 36%

– Wells unloaded more water by 38%

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Case Histories – East Texas

Customer E- Reducing Cost Through Pump Optimization

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Case Histories – East Texas

Customer E- Reducing Cost Through Pump Optimization

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Conclusion

Summary-

Q & A-

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“SERVICE IS WHAT GOT US HERE AND SERVICE IS WHAT WILL KEEP US HERE.” JAMES B. ARCHER – 1993