South Louisiana EOR / Sequestration R&D Project FE0006823 - PowerPoint PPT Presentation

South Louisiana EOR / Sequestration R&D Project FE0006823 Carbon Storage R&D Program Project Review Meeting Sheraton Station Square Hotel, Pittsburgh, PA August 21-23, 2012 J Roger Hite, Principal Investigator Blackhorse Energy, LLC 1

Presentation Outline  Benefit to the Carbon Storage Program  Project Objectives  Project / Technical Status  Accomplishments to Date / Summary 2

Benefit to Carbon Storage Program  Program Goals: – Conduct field test to support development of Best Practices Manuals  Benefits: – Acquire field data on CO 2 sequestration in beach barrier bar, in the State of Louisiana, as part of EOR project – Evaluate technologies • 3D seismic • Horizontal injector • Advanced logging tools • Fiber optic cables • CO 2 foam 3

Project Objectives  The primary objective – Understand CO 2 behavior and migration in a beach/barrier near shore bar depositional environment.  Secondary objectives: – Demonstrate that successful sequestration projects can be performed safely in Louisiana; – Demonstrate that Louisiana is a major sequestration target; and – Enhance the future prospects for commercialization of sequestration . 4

Project / Technical Status  Reservoir Characterization – Completed a careful review of facies continuity and of rock properties  Simulation – Improved physics – Included shale above pay zone  Production Facilities – Staged development 5

Livingston Reservoir  Productive Formation: Wilcox – 10,000 ft deep – 2,200 acres – Structural trap against fault  OOIP 28 MM Bbls of 39 o API oil Production History  Discovered in 1983  Waterflooding began in 1987 by Amoco  Primary and waterflood recovery 8.2 MM Bbls (29% OOIP) 6

Depositional Environment 7

Well Map  Updip injection  DOE Injector located to northeast  CO2 front moves downdip to south and west 8

Type Log  Depositional Faces – Beach / Upper Shoreface – Middle Shoreface – Lower Shoreface 9

Reservoir Characterization Top 1 ST Wilcox Sand 1 ST Beachrock Facies 2 nd Beachrock Facies 10

Reservoir Characterization Log Porosity vs Model Porosity 0 Model was built from 33 PHIE logs 2 in Builder using Gaussian Simulation Shale 4 Maximum and minimum porosities 6 were honored for each layer 8 Pay Averages in model agree well with Layer 10 averages from logs 12 Beach Rock 14 Minimum 16 Maximum Lower Log Average 18 Shoreface Model Average 20 0.0 0.1 0.2 0.3 PHIE - VSH 11

Reservoir Characterization Core Permeabilities Permeability versus Porosity 0 25 50 75 100 125 150 175 1000.0 0 y = 1E-08x 7.1192 R² = 0.3667 100.0 Distance from top of zone, ft 10 Upper Shoreface Lower Shoreface Pay Permeability - md 10.0 20 Beach Rock Zone 1.0 30 y = 3E-06x 5.0662 R² = 0.3482 Lower 0.1 40 Shoreface 0.0 50 0 2 4 6 8 10 12 14 16 18 20 22 24 26 Porosity Separate Correlations for Perm versus Porosity were used for Pay Sand and lower shoreface sand. 12

Reservoir Modeling 13

History Match – Oil Production Livingston Model Oil Production 4500 Waterflood 4000 3500 Field Simulation 3000 2500 Waterflood BPD 2000 1500 1000 500 0 Mar-82 Mar-86 Mar-90 Mar-94 Mar-98 Mar-02 Mar-06 Date 14

History Match – Water Production Livingston Model Water Production 3000 Field Simulation Waterflood Waterflood 2500 2000 BPD 1500 1000 500 0 Mar-82 Mar-86 Mar-90 Mar-94 Mar-98 Mar-02 Mar-06 Date 15

CO 2 Flood Forecast  30 Year Production Life Livingston EOR Production Rates 3,000 Oil and Water Production, B/D Oil  Oil Production Water 2,500 2,000 – 8.17 MM Bbls (29% OOIP) 1,500  Water Production 1,000 500 – 18.6 MM Bbls 0 2014 2018 2022 2026 2030 2034 2038 2042 Year Livingston EOR Gas Rates  Gas Production / 8,000 Gas Inj / Prod, Mcf/D 7,000 Injection 6,000 5,000 – 78.1 Bcf Injection Gas Injected 4,000 Gas Produced – 32.6 Bcf Purchased 3,000 Purchased CO2 2,000 – All produced gas recycled 1,000 0 2014 2018 2022 2026 2030 2034 2038 2042 16 Year

Staged Facilites Plan – Stage I  West Satellite – Connect early response producers – Construct CO2 source facilities and distribution line – Well test, G/L separation, recycle compression 17

Staged Facilites Plan – Stage II  East Satellite – Connect later response producers – Well test – G/L separation, recycle compression at Central Facility 18

Staged Facilites Plan – Stage III  Central Facilities Site – Additional well test, G/L separation, recycle compression, oil storage – Connect late response producers 19

Accomplishments to Date / Summary  Improved reservoir modeling – Reservoir characterization – Expanded / improved simulation model  Staged production facilities plan  DoE Contract – Agreed on cost share – SOPO complete – PMP in progress – Project management team in place 21

Discussion 22

Project Organization 23

Project Organization  Other Participants – Universities • Rice University • Louisiana State University • University of Texas - Austin – Schlumberger Carbon Management Services – Computer Modeling Group  Endorsements – Scott Angelle, Secretary, Louisiana Department of Natural Resources – Ken Nemeth, Executive Director, Southern States Energy Board 24

Project Timeline Year First Second Third Fourth 0 1 2 3 4  Project Management Plan  3D seismic survey Phase 1  Baseline surveillance  Horizontal injection well  Inject CO2 Phase 2  CO2 foam  Final 3D seismic survey  Final surveillance monitoring Phase 3  Reporting and documentation 25

Publications  None to date 26