HOW TO MAKE MORE PRODUCTION WITH PLUNGER LIFT

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HOW TO MAKE MORE PRODUCTION WITH PLUNGER LIFT D E V E L O P I N G UNCONVENTIONAL G A S T E C H N I C A L W O R K S H O P M AR C H 2 9, 2 0 1 0

CONTENTS PLUNGER LIFT BENEFITS WITH TELEMETRY HOW TO OPTIMIZE PRODUCTION TROUBLESHOOT AND IMPROVE

PLUNGER LIFT SYSTEM LUBRICATOR FLOW METER (EFM or MVT) MOTOR VALVE CONTROLLER Bluetooth on Site Cell Phone Modem Licensed or SS Radio Satellite SOLAR PANEL PLUNGERS ARRIVAL SENSOR BH SPRING

BENEFITS WITH TELEMETRY Increase Production Can work on high water producing wells (200 bbls/d) Lifting cost is significantly less than gas lift Retards decline curve Typical payback is 2 weeks to 60 days Decrease unplanned downtime Decrease drive time and vehicle costs Decrease OT and contract labor Decrease equipment failures

BENEFITS WITH TELEMETRY Decrease lost gas due to venting Detection of some EFM calibration issues Environmentally responsible Improve site safety Ref: American Gas Stars Partner Program (Oct 2003) American Oil and Gas Reporter (Oct 2005) HF Opti-MISER Case Studies (2009-2010)

BENEFITS WITH TELEMETRY WELL MCF/D BBLS/D LINE PRESSURE LIFT PRESSURE Well # 1 550 204 135 500 Well # 2 550 94 180 500 Well # 3 300 61 140 720 Well # 4 550 56 60 540 Well # 5 480 54 70 400 Well # 6 600 50 180 500 Well # 7 200 35 320 540 Well # 8 477 30 140 300 Well # 9 460 27 130 300

16-Jan-09 16-Feb-09 16-Mar-09 16-Apr-09 16-May-09 16-Jun-09 16-Jul-09 16-Aug-09 16-Sep-09 16-Oct-09 16-Nov-09 16-Dec-09 16-Jan-10 BENEFITS WITH TELEMETRY 1200 Free Flowing Well Line Pressure HF OPTI-MISER installed 250 1000 200 800 150 600 400 100 200 Production PRODUCTION LEVELED and STABILIZED! 50 0 0

19-Apr-09 3-May-09 17-May-09 31-May-09 14-Jun-09 28-Jun-09 12-Jul-09 26-Jul-09 9-Aug-09 23-Aug-09 6-Sep-09 20-Sep-09 4-Oct-09 18-Oct-09 1-Nov-09 15-Nov-09 29-Nov-09 13-Dec-09 27-Dec-09 BENEFITS WITH TELEMETRY 1800 Free Flowing Well HF OPTI-MISER installed 250 1600 1400 200 1200 1000 800 600 Line Pressure PRODUCTION LEVELED and STABILIZED! 150 100 400 200 Production 50 0 0

HOW TO OPTIMIZE PRODUCTION 1. PREVENT or QUICKLY DETECT UNPLANNED DOWNTIME 2. ELIMINATE FLOW RESTRICTIONS 3. USE RELIABLE HARDWARE 4. USE TELEMETRY WITH CRY-OUT 5. OPERATE AT LOWEST POSSIBLE FBHP (Cycle Frequently!) 6. OPTIMIZE PRODUCTION, OBSERVE PLUNGER VELOCITY CASING TUBING REAL TIME E-MAIL ALERT Station Name: Well # 42 Alarm Text: Low Sales Press Time Logged: March 19, 2010, 11:19PM Value: 23.0 Set Point: 25.0 CAUSE 1. Fluid in Tubing (CP-TP) 2. Lift Pressure (CP-LP) EFFECT 1. Plunger Velocity 2. Production 5000 ft

HOW TO OPTIMIZE PRODUCTION Well # 1 Well # 2 Well # 3 Well # 4 Well # 5 Well # 6 Well # 7 Well # 8 Well # 9 Well # 10 Well # 11 Well # 12 Well # 13 Well # 14 Well # 15 Well # 16 Well # 17 Well # 18 Well # 19 Well # 20 Well # 21 Well # 22 Well # 23 Well # 24 Well # 25 Well # 26 Well # 27 Well # 28 Well # 29

HOW TO OPTIMIZE PRODUCTION LINE PRESSURE GAS PRODUCTION FOCUS ON PRODUCTION! LOOK AT TRENDS ~ E-Mail Alert ~ Low Line Pressure

HOW TO OPTIMIZE PRODUCTION Well Opens CP Flow Rate TP Lift Pressure Liquid Load Well Closes Head Gas Produced Plunger Arrives Lateral leg unloading Don t shut-in too early LP

HOW TO OPTIMIZE PRODUCTION 1. Open on Lift Pressure 2. Be at Open Lift Pressure when plunger hits bottom 3. Use a rapid fall plunger if pressure builds fast 4. Allow only small amount of liquid to enter the tubing so that # 2 can be achieved 5. Flow long enough to unload lateral line 6. Adjust settings, review production 7. Implement preventative maintenance program Plunger velocities of 200 300 fpm are not uncommon If needed, use a standing valve

HOW TO OPTIMIZE PRODUCTION

1-Oct-09 8-Oct-09 15-Oct-09 22-Oct-09 29-Oct-09 5-Nov-09 12-Nov-09 19-Nov-09 26-Nov-09 3-Dec-09 10-Dec-09 17-Dec-09 24-Dec-09 31-Dec-09 7-Jan-10 14-Jan-10 TROUBLESHOOT AND IMPROVE 1200 1000 OPEN on TIME AVG 167 Mcf HF OPTI-MISER installed AVG 196 Mcf 17% OPEN on PRESSURE 250 200 800 150 600 400 Line Pressure Production 100 200 50 0 0

TROUBLESHOOT AND IMPROVE Line Pressure Production OPEN on TIME AVG 133 Mcf OPEN on PRESSURE AVG 172 Mcf 29%

TROUBLESHOOT AND IMPROVE Line Pressure Production By Pass Plunger replaced Dual Row Pad. Cycles more frequently. 39%

TROUBLESHOOT AND IMPROVE Motor Valve Leaks or EFM calibration issue. Flow when well is closed. Motor Valve Leaks. TP declines when well is closed

TROUBLESHOOT AND IMPROVE TP is pushing fluid out. Possible candidate for a standing valve.

TROUBLESHOOT AND IMPROVE Well is closing when flow rate is increasing. Flow longer.

TROUBLESHOOT AND IMPROVE LP declines when well is closed. Unplanned venting to tank.

TROUBLESHOOT AND IMPROVE Added Standing Valve. Shorter Fall Time. Increased afterflow. 103%

TROUBLESHOOT AND IMPROVE Added Standing Valve 20%

HF OPTI-MISER WELL CONTROL SYSTEM A SYSTEM THAT ALLOWS OPERATORS TO INCREASE PROFITS HARBISON-FSCHER LAST FLOW RATE (mcfd) PRESSURES VALVE STATUS POLLED Prior % of COLEMAN (psi) ALARM A B C Group Well # Date Time AOF 24 hr AOF mcf % of Act CSG TBG SALES STATUS Prod Tank Chem A Billy Bob # 2 14-May-06 10:32 AM 100 65 65% 75 115% 250 230 45 OPEN CLOSE CLOSE A Billy Bob # 3 14-May-06 11:15 AM 59 47 80% 65 138% 125 110 35 OPEN CLOSE CLOSE A Sally Sue # 1 14-May-06 2:00 PM 45 32 71% 28 88% 175 185 40 CLOSE CLOSE CLOSE A Hank's Praire # 5 1-Apr-06 8:00 AM 15 12 80% 8 67% 225 205 45 CLOSE CLOSE CLOSE A Treasure Trove # 1 14-May-06 9:35 PM 53 47 89% 30 64% 90 95 110 OPEN CLOSE CLOSE A Bluebonnet 5 14-May-06 12:52 AM 75 32 43% 25 78% 193 ACTIONABLE 187 25 OPEN CLOSE CLOSE B Exxon DATA 88-Z3456 14-May-06 10:32 AM 100 65 65% 75 115% 250 230 45 OPEN CLOSE CLOSE B Macky's 2E4 14-May-06 11:15 AM 59 47 80% 65 138% 125 110 35 OPEN CLOSE CLOSE INFORMATION B Smith BR549 14-May-06 2:00 PM 45 32 71% 28 88% 175 185 95 CLOSE CLOSE CLOSE B Henry's Gander 1-Apr-06 8:00 AM 15 12 80% 8 67% 225 205 45 CLOSE CLOSE CLOSE B Rainbow 6 14-May-06 9:35 PM 53 47 89% 30 64% 90 95 35 OPEN CLOSE CLOSE B Willow Root 4 14-May-06 12:52 AM 75 32 43% 25 78% 193 187 25 OPEN CLOSE CLOSE C GPS 40:56:75 14-May-06 10:32 AM 100 65 65% 75 115% 250 230 45 OPEN CLOSE CLOSE C Conoco 87-692 14-May-06 11:15 AM 59 47 80% 65 138% 125 110 35 OPEN CLOSE CLOSE C Conoco 87-719 14-May-06 2:00 PM 45 32 71% 28 88% 175 185 40 CLOSE CLOSE CLOSE C Charlie's Back 40 1-Apr-06 8:00 AM 15 12 80% 8 67% 225 205 45 CLOSE CLOSE CLOSE C Treasure Trove # 1 14-May-06 9:35 PM 53 47 89% 30 64% 90 95 110 OPEN CLOSE CLOSE C Bluebonnet Phone 5 14-May-06 12:52 AM 75 32 43% 25 78% 193 187 25 OPEN CLOSE CLOSE D Sedona 1 14-May-06 10:32 AM 100 65 65% 75 115% 250 230 Available 45 OPEN CLOSE CLOSE D Casper 06-1492 14-May-06 11:15 AM 59 47 80% 65 138% 125 110 35 OPEN CLOSE CLOSE D Michigan Book by 4 14-May-06 2:00 PM 45 32 71% 28 88% 175 185 40 CLOSE CLOSE CLOSE D Full House, Ace's Hi 1-Apr-06 8:00 AM 15 12 80% 8 67% 225 205 Tee 45 Times CLOSE CLOSE CLOSE D BP 05-B1476 14-May-06 9:35 PM 53 47 89% 30 64% 90 95 110 OPEN CLOSE CLOSE D BP 06-A1348 14-May-06 12:52 AM 75 32 43% 25 78% 193 187 25 OPEN CLOSE CLOSE NOTES: 1) AOF = Absolute Open flow 2) Group's could be Engineer's Name or Other Designation. 3) Allow sorting by any column 4) Provide a variety of column headings from which customer can choose to show, and choose the order.

ADENDUM W E L L R E Q U I R E M E N T S F O R P L U N G E R L I F T F L U I D V O L U M E V S F L U I D H E I G H T I N T U B I N G F L U I D V O L U M E V S T U B I N G D I A M E T E R C A S I N G P R E S S U R E R E Q U I R E D ( F O S S A N D G A U L )

WELL REQUIREMENTS FOR PLUNGER LIFT IS FLUID IN THE TUBING? (Over 90% of US Gas Wells) YES IS GAS VOLUME SUFFICIENT? YES IS GAS PRESSURE SUFFICIENT? LOAD FACTOR FLUID SLUGS ON GAS CHARTS DECLINE CURVE ANALYSIS CRITICAL FLOW RATE 300 SCF / BBL / 1,000 FT OF LIFT LIFT PRESSURE at Least DOUBLE FLUID LOAD PACKER LIFT PRESSURE = (CP- LP) FLUID LOAD = (CP TP) (Shortly after Shut-In)

FLUID VOLUME VS FLUID HEIGHT Fluid Volume in Tubing (Barrels) FV = 0.002242 X (CP-TP) X (ID 2 )/SG CP=Casing Pressure; TP=Tubing Pressure ID=Tubing Inner Diameter (inches) SG = Specific Gravity = 1.0 for Water Fluid Height in Tubing (Feet) FH = (CP-TP) / (0.433 psi/ft X SG) 0.433 psi/ft = Pressure gradient of water SG = Specific Gravity = 1.0 for Water If 20% of the fluid column is liquid, then divide the above results by 20% to get the actual height of the fluid column

FLUID VOLUME VS TUBING SIZE BACKPRESSURE FH = (CP-TP) / (0.433 PSI/FT X SG) 500 FEET = (CP-TP) / (0.433 PSI/FT) (CP-TP)= 216.5 PSI FLUID VOLUME vs TUBING SIZE 1.90, 3.73 lb/ft Tubing (1.500 ID) FV = 0.002242 X (CP-TP) X (ID 2 )/SG FV = 0.002242 X (216.5 psi) X 1.50 2 FV = 1.09 Bbls Casing Tubing 500 feet 2 3/8, 4.70 lb/ft Tubing (1.995 ID) FV = 0.002242 X (CP-TP) X (ID 2 )/SG FV = 0.002242 X (216.5 psi) X 1.995 2 FV = 1.93 Bbls 2 7/8, 6.50 lb/ft Tubing (2.441 ID) FV = 0.002242 X (CP-TP) X (ID 2 )/SG FV = 0.002242 X (216.5 psi) X 2.441 2 FV = 2.89 Bbls

FLUID VOLUME VS TUBING SIZE Foss and Gaul (CP Required to Lift Plunger) CP req d = CP min X {(A ann + A tbg ) / A ann } CP min = {SLP + P p + P c FV} X {1 + D/K} CP = Casing Pressure; SLP = Sales Line Pressure A ann = Area Annulus; A tbg = Area Tubing P p = Pressure required to lift just the plunger P c = Pressure Required to lift 1 bbl of fluid and overcome friction FV = Fluid Volume above the Plunger K = Constant accounting for gas friction below the plunger D = Depth of the Plunger Tubing 2 3/8 2 7/8 3 K Pc 33,500 165 45,000 102 57,600 67