Gas Well De-Liquification Workshop

Gas Well De-Liquification Workshop Steering Committee Meeting Agenda and Minutes April 30, 2004

Date: April 30, 2004 Time: 2:00 pm Location: ChevronTexaco 3901 Briarpark Drive, Houston, Texas Host: Robert Lestz

April 30, 2004 Meeting --- Discussion / Agreements:

 Attendees --- The meeting attendees are documented on an attached form. --- Rick Hornsby of ExxonMobil was welcomed as a new member of the Steering Committee. --- The resignation of Pradeep Daas of Can-K Artificial Lift Services was accepted.

Agenda

1. Review 2004 Meeting

 Summary of Evaluations

 Evaluation Process --- There was general discontent with the number of evaluations turned in at the 2004 Workshop. --- There will be an evaluation form handed out at the beginning of the continuing education course. --- There will be one handed out each day of the workshop. --- They will be collected at the end of each day. --- In addition, an evaluation form will be placed on line on www.ALRDC.com so people can complete it there if desired.

 Other Feedback or Comments

 Door Prizes Gas Well De-Liquification Workshop Page 2 Steering Committee Meeting – April 30, 2004

--- Door prizes will be distributed each day. --- The winners will be drawn from those who have turned in an evaluation form. --- Vendors may distribute door prizes at their booths, if they wish. --- Vendors will be encouraged to contribute door prizes for general distribution during the workshop.

 Receptions / Dinners --- There will be three receptions – one on Monday night after the Continuing Education courses, one on Tuesday night after the first day of the Workshop, and a final one on Wednesday night, after the second day of the workshop. --- The Keynote Address will be given during the first reception. --- The receptions will start 30 minutes after the end of the day’s events. --- They will end early enough so people can make dinner arrangements if they wish to do so. --- There will be no formal “Workshop Dinner.”

 Summary of Income/Expenses

 Summary of Income / Expenses --- Ronda Brewer summarized the report of income and expenses. --- Total income was $105,250.00 --- Total expenses were $62,177.51 --- New profit was $43,072,49. --- Of this, $32,204.34 went to SWPSC. It is used for scholarships. --- $10,768.12 went to ALRDC. It is used to promote sharing of information among the artificial lift community.

 Summary of Lessons Learned

 Continuing Education --- The continuing education classes held in 2004 were good. --- This observation formed the basis for the discussion of classes to be help in 2005.

2. Plan 2005 Meeting

 Continuing Education

 Do we want to send a questionnaire to the mailing list?

 Suggestions for continuing education courses for 2005?

 Suggestions for teachers? Gas Well De-Liquification Workshop Page 3 Steering Committee Meeting – April 30, 2004

 Schools (JFL):  General overview course again?  More on plungers?  Gas-lift or surfactants could be good.  When and how to apply compression.  Other?

 Continuing Education in 2005 --- Six half-day continuing education courses will be offered in 2005. --- They will be conducted on one day, with three classes in the morning and three in the afternoon. --- In addition to those listed below, interest was expressed in beam pumping, ESP/PCP, and production automation.

--- Class 1: Part 1 of Introduction to Gas Well De-Liquification. Instructor: Dr. Jim Lea.

--- Class 2: Part 2 of Introduction to Gas Well De-Liquification. Instructor: Dr. Jim Lea. Jim may invite others to offer parts of Part 1 or Part 2.

--- Class 3: Using Gas-Lift for Gas Well De-Liquification. Instructor: Boot Rouen of Schlumberger will be asked to provide this course.

--- Class 4: Using Compression to Boost Gas Well Production. Instructor: Jim Lea will organize the instructor(s) for this course.

--- Class 5: Using Soaping / Chemicals to Assist Gas Well De- Liquification. Instructor: Risk Hornsby will organize the instructor(s) for this course.

--- Class 6: Using Plungers for Gas Well De-Liquification. Instructors: Lynn Rowlan and Dan Phillips.

 Technical Session Topics

 Suggestions for topic areas?  New Technology?  Case Histories?  Automation? (Two presentations already suggested)  Less on Chemicals? (One presentation already suggested)

 More technical depth?

 More case histories?

 More operator presentations? Gas Well De-Liquification Workshop Page 4 Steering Committee Meeting – April 30, 2004

 More joint presentations?

 Other comments:(JFL, LH)  Continue to seek operator with vendor papers.  Seek some that have not been there before (without checking, Mitchell Energy? Companies in Gillette area? Other).  Get after companies that have been sending several participants to present a paper.  Look for papers on injection of water using a beam pump or ESP to re-inject the water, instead of producing, high volume dewatering or injection.  Also I don't think we had anything specific on velocity strings or using coiled tubing for flow path…. design, application, etc. Did we? We need to bring that in if we can to next forum. We did talk about plastic velocity strings so I guess we did have something. But did I miss anything on use of conventional CT?  Anything on how to optimize stop-clocking?  Seek papers that have more detail on decision making on which method/s to use, decision trees, algorithms, experience?  There are a number of new plungers coming out...primarily to compete with the pacemaker. I don't know exact format to introduce all new offerings to the audience. Vendor booths? Discussion group? Operator or we takes slides from each vendor and presents to group to avoid a big commercial session? We could discuss how to get this information to the group in most informative but least commercially offensive manner? Somehow they could be shown and claims presented to group and for details they can visit booths?  Obtain presentations on stimulation of gas wells?

 Technical Sessions in 2005 --- There is a general consensus that it is better to have one technical session, spanning over two days, rather than to have parallel sessions. --- However, if too many good presentations are nominated to fit in two days, parallel sessions may be considered for part or all of the second day.

--- Joint presentations with contributions from both Operators and Service/Supply Companies will be encouraged. --- Authors will be encouraged to include the impact of liquid loading on their reservoirs. --- To the degree possible, the economic results of gas well de- liquification efforts should be presented.

--- To the degree possible, PDF versions of drafts of presentations will be sent to the members of the Steering Committee for review prior to the Workshop.

--- A few specific presentations will be requested: --- From Colorado School of Mines on the effect of liquid loading on reservoir behavior. Gas Well De-Liquification Workshop Page 5 Steering Committee Meeting – April 30, 2004

--- From BP on the selection process used to choose the artificial lift system for gas well de-liquification in a particular situation. --- From Texas Tech University on artificial lift installation using coiled tubing.

--- Technical sessions will be offered on some combination of the following subjects: --- New technology --- Case histories --- Automation --- Coal bed methane --- Reservoir / economic issues

 Panel Sessions

 Can these be improved?

 Panel Sessions in 2005 --- These add value and will remain as part of the program. --- Cleon Dunham will provide more guidelines to Panel Session chairs on ways to more effectively draw out comments/questions from the audience.

 Breakout Sessions

 Suggestions for topic areas?  CBM?  Tight formations?  Gas hydrates?

 Suggestions for breakout session leaders?

 When in the program should we have these sessions?

 Breakout Sessions in 2005 --- There will be four breakout sessions in 2005. --- Feedback on the results of the sessions will be presented earlier in the workshop, not at the end of the last day.

--- Session 1: Design Challenges Coordinator: Robert Lestz Preparation: Robert will invite three or more companies to prepare “designs” to meet a challenging gas well de-liquification process. The designs will be analyzed and evaluated during the breakout session.

--- Session 2: Automation Coordinator: Cleon Dunham Gas Well De-Liquification Workshop Page 6 Steering Committee Meeting – April 30, 2004

Preparation: Cleon will invite three or more companies to prepare “designs” to automate a challenging gas well de-liquification field. The “designs” must address automation objectives, costs, benefits, staffing, training, etc.

--- Session 3: Coal Bed Methane Coordinator: Rick Web Preparation: To be determined.

--- Session 4: Potpourri Coordinator: To be determined. Preparation: Each workshop attendee will be invited to list one or more items for discussion on a “parking lot” sheet. The sheet will be posted during the continuing education courses and the first day of the workshop.

 General Chair

 Nominations?  Jeff Fisher, Chesapeake Energy

 General Chairperson for 2005 --- Jeff Fisher of Chesapeake Energy has agreed to serve as General Chairperson for the 2005 Workshop.

 Keynote Speaker

 Nominations?  Arly Skov?

 Keynote Speaker for 2005 --- Aubry McClinton, CEO of Chesapeake Energy, will be asked to be Keynote Speaker. Jeff Fisher will ask him. --- If he cannot do this, a Vice President of Burlington Northern will be asked. Jim Lea will do this.

 General Program Outline

 Are any changes needed in the overall program outline/timing?

 (JFL) Firm up policy on refund or not if they do not attend (should not?). Must be in print. We had some trouble.

 Deadline for Refunds --- A deadline will be established beyond which no refunds will be given for those who can’t attend the workshop. Gas Well De-Liquification Workshop Page 7 Steering Committee Meeting – April 30, 2004

--- The deadline date will be determined by Jim Lea, Cleon Dunham, and Ronda Brewer.

3. Future Meetings

 Confirmation of “International” Sub-Committee

 Gordon Gates, BP  Lynn Rowlan, Echometer  Cleon Dunham, OAC  Rob Eylander, Shell International

 International Sub-Committee --- Cleon Dunham will convene this sub-committee. --- The general consensus is that there is strong interest in continuing to have a Gas Well De-Liquification Workshop on an annual basis in the U.S. --- If there is sufficient interest, a separate (or companion) workshop could be held internationally.

 Suggestions

 Hold in Denver every year?

 Rotate between Denver and other location(s)?

 Hold an overseas meeting if sufficient interest?  Do this as a stand-alone meeting, or possibly as a more general gas meeting focused on gas well de-liquification, coal bed methane, gas hydrates, etc.

 Agree on “charge” for International Sub-Committee.

 (JFL) Other locations can still be in the future?

 Location of Workshop --- The consensus is that the workshop should be held in Denver, Colorado each year. --- This should continue at least for the foreseeable future. --- This way, it can become known as the “Denver Gas Well De- Liquification” Workshop.

4. Steering Committee

 Membership Gas Well De-Liquification Workshop Page 8 Steering Committee Meeting – April 30, 2004

 Suggestions for new members:  Champion  ExxonMobil  Shell International (Already on board)  Weatherford  Wilson (Already on board)

 Steering Committee Members --- Robert Lestz will ask Mark Edwards of Champion if he will serve on the Steering Committee. --- Corky Vickers will ask Scott Campbell of Weatherford.

--- It was agreed that there will be no specific “terms” for membership. --- People can feel free to serve for as long or as short as their condition permits.

 Next meeting?

 Next Meeting of Steering Committee --- The next meeting of the Steering Committee is set for 9:00 am, September 30, 2004, at the BP Westlake offices in West Houston, Texas. --- Henry Nickens will be the host of the meeting. --- He will provide a map to the location.

 Action Items

 Advertising?

 Soliciting presentations?

 Advertising --- Advertising of the workshop should focus on the practical nature of the event. --- It contains much practical information that is of values to Operators.

--- Robert Lestz is on the Board of the Petroleum Technology Transfer Council (PTTC). He will see that the meeting is placed on the PTTC calendar and announcements. --- Cleon Dunham will check with the Editors of American Oil and Gas Reporter to see if they would be willing to run a short article on the workshop. Gas Well De-Liquification Workshop Page 9 Steering Committee Meeting – April 30, 2004

--- Cleon Dunham will update the draft flier with the newly agreed information on the continuing education courses, the technical program, the breakout sessions, etc.

5. Other Topics

 Best Practices

 Proposal by ALRDC to lead an effort to produce best practices  Volunteers to be involved?  Other suggestions for people to be involved?  How might these been distributed/used?

 Education

 Proposal by ALRDC to lead an effort to produce a training program  Volunteers to be involved?  Other suggestions for people to be involved?  How might this been offered/presented?

 Best Practices / Education --- Jim Lea suggested that this be the subject of a brief presentation at the 2005 Workshop. --- This could be used as a way to sense the feeling of the attendees as to whether or not a best practices document is needed. --- Rick Hornsby stated that such a document would be of great value in ExxonMobil. --- Cleon Dunham agreed to give this more thought in the coming weeks.

 Meeting Wrap-Up --- Once Around --- Rick Hornsby stated that there are very strong economics in gas well de-liquification. This should continue to be emphasized in the workshop. --- Robert Lestz expressed special thanks to Ronda Brewer for her work in managing the many details of the workshop. --- Jeff Fisher said that he’s very glad to be part of the workshop leadership. --- Rick Webb said that he is very willing to help in any way he can. --- Lynn Rowlan said that he will help encourage more attendees, more presentations, and donation of more door prizes. --- Ronda Brewer said that she’s glad to be part of the team. --- Jim Lea said that he was happy with the results of the meeting. --- Cleon Dunham thanked everyone for his or her participation and willingness to help out. Gas Well De-Liquification Workshop Page 10 Steering Committee Meeting – April 30, 2004

Cleon Dunham Oilfield Automation Consulting March 18, 2004 Updated: April 26, 2004 Minutes: May 3, 2004