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3526 US Hwy 9 South - Ste. 303
Howell, NJ 07731
United States

Kansas Lift Cost Reduction

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Kansas Lift cost reduction

Key Well Information

  • Pumping wells
  • Formation or sands are: Conglomorate, Morrow, Regan
  • 3,400 to 4,500 feet depth
  • Low producing wells 5 to 12 BPD

Problem Statement – High paraffin from the oil reservoir was causing problems with the surface tubing and fluid lines resulting in 2 hot oil treatments per month. Each hot oil treatment required 30 to 40 barrels of flush oil resulting in delays for oil recovery. Hot oiling over time plugs up the formation because the paraffin melts and goes downhole.

United Energy Solution – Continuous injection at 500 PPM of K-line product KH-30 to disperse the paraffin at the reservoir and at the well surface to maintain well equipment and avoid hot oil treatments.

Below is a table of the tangible individual well costs and benefits for the project. From May 2005 until October 2005 we have brought on 16 wells in total. The results average $8,367 tangible savings per well for a total of $133,865. This is not considering the elimination of well downtime required to pump the flush production. In addition as more and more wells are treated with KH-30 we expect to see strategic benefits beyond the well operations. 

Cost benefit KH-30 Continuous Injection Per Well Monthly Per Well Yearly
     
Frequency of treatments 1.50 18
Cost per treatment $ 475 $ 5,700
Overhead costs (perc.of treatment costs) 15% 15%
Total Costs of Hot Oil treatments $ 819 $ 9,833
     
Cost of K-line KH-30 $ 122 $ 1,466
     
Cost savings $ 697 $ 8,367
     
Avg.production delay (days) 1.25 15
Value oil Production Delay $ 956 $ 11,475
Data used for Calculations


Price of Oil (Barrel) $ 60
Average Oil Production per day (BPD) 8.50
KH-30 treatment (PPM) 500
KH-30 usage per day (gallons) * 0.18
Cost of K-line (gallon) $ 22.50
* Usage is based the average oil production per day

Strategic benefits beyond the Well operations

  • By constantly dispersing paraffin at the wells the flow lines and pipelines will be treated as KH-30 will flow beyond the individual wells treated
  • Improvements in flow lines production due to more laminar flow and viscosity reductions
  • Potential avoidance of tank sludge buildup as the KH-30 travels past the pipelines into storage tanks


Hot Oiling Problems Eliminated

  • Formation Plugging
  • Hot oil safety incidents

KS #1

Below is an example of a small batch treatment that increased the well production by 57%.

  Well
Name
Type of well Well depth
in feet
Water
amount
%
API date of
initial
treatment
  KS #1 pumping 3,900 0% 26 1-Oct-05
Well
problem
Hot oil treatments required bi-weekly due to high parraffin content
Solution Mix 15 gallons of KH-30 with with 5 bbl of lease crude on top. Let the
well soak over night.


  KS #1
KS #1 oil production (BNPD)
Before 35
After 55
Increase 20
Perc. Increase 57%

Trinidad – CO178

Below is an example of our first well in Trinidad with Petrotrin SF. The initial results are outstanding bringing the well production beyond its historic maximum of 20 BPD. The well is now producing steady 29 BPD and before was only producing 3 BPD because of the high paraffin sludge content.

  Well Name Type of well /
age
Well depth
in feet
Water
amount
%
API date of
initial
treatment
  CO-178 COORA pumping, 56 yrs. 5,840 0% 20 4-Nov-05
Well
problem
Low production due to Paraffin sludge deposits
Solution Blended 4 drums of KX-100 with 4 drums of diesel and then followed that
with 16 drums of diesel and 8 drums of light crude oil. The well was shut in
for 48 hours, and it was then put back into production.


  CO-178 COORA
CO-178 COORA oil production (BNPD) gas production (BNPD)
Before 3 0
After 29 0
Increase 26 0
Perc. Increase 867% 0

Key Assumptions – for all measurements of Well Production improvements

  • When measuring the oil production after treatment the flush production was not considered as increased production.
  • Results are measured for the initial production increase.
  • All Drums of our treatment are 55 gallon drums.
  • All barrels of oil are 42 gallons.

Venezuela - Summary

Wells Before After Initial
Percentage
improvement
GS 230 12 156 1200%
11M-254 55 371 575%
GVJ-6 89 158 78%
11M258 120 190 58%
GS-41 24 32 31%
GS 432 24 27 13%
Average per
Well
54 156 188%

Well - Ven GS 230

  Well
Name
Type of well Well depth in
feet
Water
amount
%
API date of
initial
treatment
  GS 230 Gas lift 4380 22% 27.3 26-Jul-04
Well
problem
High Parrafin Build up and high parrafin in the crude
Solution Mix 4 drums of KX-91 with 140 barrels of oil and pump downhole. Wait
48 hours before starting well production. No Continuous Injection.


GS 230 oil production (BNPD)
Before 12
After 156
Increase 144
Perc. Increase 1200%

Well GS 230

Well Ven 11M-254

  Well
Name
Type of well Well depth in
feet
Water
amount
%
API date of
initial
treatment
  11M-254 gas lift 12022 10% 22.4 3-Jul-04
Well
problem
Aspaltene content in the crude causing blockage in the perforations
Solution Mix 9 drums of KX-91 with 200 barrels of gasoil and pump downhole.
Wait 48 hours before starting well production. No Continuous Injection.


11M-254 oil production (BNPD)
Before 55
After 371
Increase 316
Perc. Increase 575%

Well – Ven GVJ-6

  Well
Name
Type of well Well depth in
feet
Water
amoun
t %
API date of
initial
treatment
  GVJ-6 pumping well 4940 30% 13.9 18-Jun-04
Well problem High pressure 800 to 1000 psi in the well head
Solution Mix 4 drums of KX-9 and 1 drum of KH-30 with 265 barrels of gasoil
and pump downhole. Wait 48 hours before starting well production.
No continuous injection.


GVJ-6 oil production (BNPD)
Before 89
After 158
Increase 69
Perc. Increase 78%

Well – Ven 11M-258

  Well
Name
Type of well Well
depth in
feet
Water
amoun
t %
API date of initial
treatment
  11M258 Gas lift 4380 0% 19.8 13-Sep-04
Well problem High Asphaltene Build up downhole
Solution Mix 10 drums of KX-91 with 215 barrels of oil and pump downhole.
Wait 48 hours before starting well production. No Continuous
Injection.


11M258 oil production (BNPD)
Before 120
After 190
Increase 70
Perc. Increase 58%

Well – Ven GS-41

  Well
Name
Type of well Well
depth in
feet
Water
amoun
t %
API date of initial
treatment
  GS-41 Gas lift well 5045 34% 26.3 21-Jun-04
Well problem High Parrafin Build up and high parrafin in the crude
Solution Mix 4 drums of KX-91 with 70 barrels of oil and pump downhole in
2 stages. Wait 48 hours before starting well production. No
continuous injection.


GS-41 oil production (BNPD)
Before 24
After 31.5
Increase 7.5
Perc. Increase 31%