FLATpak tm Umbilical Coiled Solutions for Artificial Lift Applications

FLATpak tm Umbilical Coiled Solutions for Artificial Lift Applications

What is the FLATpak tm Why was it developed Advantages of using FLATpak tm What are the components How is FLATpak tm made Original Challenges What are the applications Where is FLATpak tm being Utilized and how New problems/solutions Agenda

The FLATpak tm Umbilical is a uniquely designed multiple conduit bundle that Was originally designed for CONVEYING Hydraulic Subsurface Pumps Provides a hydraulic circuit for POWERING these pumps Provides a PRODUCTION CONDUIT for producing the well Installed by conventional Coiled Tubing Units Utilizes complete Canadian Class 1+2 safe operating practices Used for deployment of Subsurface Hydraulic Pumps, Electric Submersible Pump, gas lift & other Artificial Lift systems Definition of the System

The FLATpak tm Umbilical Utilizes conventional Coiled Tubing for conduit(s) Replaces Jointed Production Tubing and rods Eliminates Conventional Rig for installation Combines multiple services into one. Field-proven connectors available for terminations Variable components offer design and function flexibility Successful applications with a variety of components Advantages of FLATpak tm Umbilical

Carbon Steel Coiled Tubing High Strength 70/80k Grade, various gauges High Tensile Strength Outstanding low cycle fatigue Well understood mechanical and chemical properties External FBE Coatings enable use in mild H2S/CO2 environments for closed hydraulic systems Material Specifications

Alternative Tubular Materials 304 SS, 316-L SS Lean Duplex Alloy 19D Alternative hi temp acid resistant thermo plastic tube for low pressure, shallow applications Material Specifications

Encapsulation Material Vulcanized Thermoplastic (PP/EPDM) Temperature Rating-135C Chemical Resistance to all Oilfield Solvents and chemicals Excellent Abrasion Resistance (Taber Test) ASTM D904 Wear Index 5 Has been used for eons for capillary tubing protection and SCSSV installations Encapsulation Specifications

Pressurized Extrusion Process

Description Dimensions Wt / Ft 1 x ¾ x 1 3.051 x 1.20 2.69 1 x 5/8 x 1 2.925 x 1.20 2.88 1 x 1 x 1 3.300 x 1.20 2.71 ¾ x ¾ x ¾ 2.80 x.95 2.12 Cross Section FLATpak tm Configuration Dimensions for HSP FLATpak tm

The FLATpak tm could be Spooled in its configuration Encapsulation material could withstand stresses of spooling Encapsulation equipment could handle the tubing sizes Chains/Gripper Blocks could function without damage Well Control Equipment modifications could be made Conventional CT Wellhead could be modified to support Original Challenges to Overcome

Current Lift Types / Suppliers HSP Activator-Global Energy HSP Cyclone-Perry Lift Jet Pump-J-J Tech HSP Pump 3-Line System Single Point 2-Line Gas Lift or Jet Pump ESP Pump 1 Line + Cable Systems under development HSP HyGra Pump-HydroPacfic HSP Cormorant Pump- Cormorant HSP Dual Stroke Hot Tools ESP Permanent-ServTech ESP Production Testing-SLB HSP PCP-Artificial Lift Systems Dual Gas Lift- Velocity lift system Cyclone production tools. HSP Thainstone Energy Application Types/Systems

Downhole Chemical Injection Downhole Reservoir Data Acquisition Downhole Optical Fiber Data Transmission Downhole Camera Conveyance Other Additional Capabilities

Canada multiple 3200 ft Hydraulic Submersible systems Canada multiple 3500 ft Jet Pumps Texas multiple 7500 ft Barnett and Fayetteville shale Hydraulic Submersible systems Oklahoma multiple 3500 ft Hydraulic Submersible systems Montana 5600 ft single point gas lift and chemical injection Application History

Service Type Operations Details

3-Line HSP Service Pump for CBM wells Alberta-total 100+ wells same FLATpak 1-Line provides Production Conduit for produced water to surface from pump discharge 2-Lines provide closed-loop hydraulic circuit Use of this system reduces fluids and additional pressure placed on reservoir during operation for cleanout Results in a non-invasive treatment Ideal means to test HSP Cost effective/no CAPEX (2) CTUs currently in service Application History

CJS Flatpack Tubing System Fluid Cleanout ModeSand Jetting Mode Jet Pump Cleanouts

Typical Well Response From Conventional Cleanout JetPak Cleanout Jet Pump Cleanouts

Gas migration / explosive decompression entering downhole encapsulation end Depth limitations related to potential damage to encapsulation by CT Injector Head Gripper Blocs Recent Issues & Opportunity

SOLUTION Gas Migration / Explosive Decompression Addition of underlayer of Polyethylene Polymer from Innotek G-19 Preliminary trials prove advantageous by improving adhesion of tube to encapsulation 0.42 15 0.42 15 0.42 15 Recent Issues & Opportunity

SOLUTION Depth limitations related to potential damage to encapsulation by CT Injector Head Increased surface area results in decreased skate hydraulic pressure Newly designed drive arch system results in increased surface area and decreased skate pressure resulting in ability to run deeper with out potential damage to encapsulation Recent Issues & Opportunity

Superior Design Minimizes formation damage due to live well intervention Provides mechanical and corrosion protection and insulation from extreme temperatures Easily repaired in the field Optional selections of tubing or wire proven they can be spooled Least cost manufacturing via rectangular shape matrix Versatility Facilitates permanent ALS installation and temporary service intervention Configuration can be easily altered for specific applications Is conveyed with any conventional CT unit Efficiency Permits intervention consolidation (ie: Coiled tubing unit replaces service rigs, capillary rigs & cable spool rigs) Facilitates swift and efficient operations in a CT environment with minimal surface disturbance Safety Offers multiple points of well control FLATpak s s Benefits

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