Potential Horizontal Well JIPMay 5, 2011Page 1

Exploratory Team Meeting

Possible JIP for Horizontal WellArtificial Lift

Exploratory Team Meeting

Timing and Location

Meeting Date / Meeting Venue
Friday, April 1, 2011
12:00 CDT / BP, Houston
This meeting was held immediately following the meeting of the Full Team
April 13, 2011
9:00 am, CDT / Teleconference call for people not in Houston.
1-866-856-0615 or 1-517-308-2145
Code 786846
Face-to-face for people in Houston.
Room 9043 at West Lake 3 Office Building 550 Westlake Park Blvd, Houston (across the street from the BP office at West Lake 1). Enter the building and sign in at the security station, take the elevators on the left to the 3rd floor and tell the receptionist you are coming to see Larry Harms. She will give you a badge and you will proceed back to the elevators and up to the 9th floor whereI will let you in. A map is attached.
May 5, 2011
9:00 am, CDT / Teleconference
1-866-856-0615 or 1-517-308-2145
Code 786846
May 19, 2011
9:00 am, CDT / Teleconference
1-866-856-0615 or 1-517-308-2145
Code 786846

Guidelines for Exploratory Team Meetings:

April 1, 2011
  1. At least one Operator and one Supplier needs to be in each meeting.
  2. A quorum will be five people.
  3. The team may meet by teleconference.
  4. A face-to-face meeting is preferred.
  5. ConocoPhillips, et al will provide a teleconference number and a place for face-to-face meetings for those who are in Houston, Texas.
  6. The Full Group will inform the Exploratory Team when input from them is needed.
  7. Cleon Dunham will serve as convener of the Exploratory Team.
  8. This Exploratory Team will come back to the Full Team members with the information needed and a proposal for how to move forward.

Attendees (Members of the Exploratory Team):

April 1, 2011 Attendees
  1. Jesus Chacin CFERBy Teleconference
  2. Steve Coleman EOG
  3. Justin Conyers Norris Production Solutions
  4. Cleon Dunham ALRDC
  5. Larry Harms ConocoPhillips
  6. Bill Lane Weatherford Not Present
  7. James Martin Consultant
  8. Cem SaricaUniv. of Tulsa
  9. Omar Soto BP
  10. Rob Sutton Marathon
  11. Kees Veeken Shell Not Present
  12. Scott CampbellRepresented Weatherford in Bill Lane’s absence.
  13. Wayne Mabry Represented Shell in Kees Veeken’s absence.

April 13, 2011 Attendees
  1. Steve ColemanEOGBy Teleconference
  2. Cleon Dunham ALRDCBy Teleconference
  3. Larry HarmsConocoPhillips
  4. James MartinConsultant
  5. Cem SaricaUniv. of TulsaBy Teleconference
  6. Omar SotoBPBy Teleconference
  7. Rob SuttonMarathonBy Teleconference

May 5, 2011 Attendees
  1. Jesus ChacinC-FERAll by Teleconference
  2. Justin ConyersHarbison-Fischer
  3. Cleon DunhamALRDC
  4. Larry HarmsConocoPhillips
  5. Bill LaneWeatherford
  6. James MartinConsultant
  7. Cem SaricaUniv. of Tulsa
  8. Omar SotoBP
  9. Rob SuttonMarathon
  10. Kees VeekenShell

Are Meeting GuidelinesMet?

April 1, 2011 Meeting Agenda and Minutes
  1. Eleven people were present, so there was a quorum.
  2. Representatives of both Operating Companies and Service Companies were present.
  3. The team met face-to-face and via teleconference..

April 13, 2011 Meeting Agenda and Minutes
  1. There were no Service Company representatives present, but we agreed to discuss anyway, with Cleon DunhamandJames Martinrepresenting the Service Company perspective.
  2. Seven people were presents so there was a quorum.
  3. The team met face-to-face and via teleconference.

May 5, 2011 Meeting Agenda and Minutes
  1. There was a quorum for the meeting and at least one or more participants from Operating Companies and Service Companies.

Agenda:

  1. Determine a time frame in which the Exploratory Team is to work.

April 1, 2011 Meeting Agenda and Minutes
  1. It was proposed that this team meet bi-weekly.
  2. The next meeting will be on Wednesday, April 13, 2011 at 9:00 am, CDT.
  3. Larry Harms of ConocoPhillips will provide a teleconference number and a face-to-face meeting location.
  4. Cleon Dunham will prepare a draft agenda and communicate with the team.
  5. Timing for subsequent meetings will be discussed at the end of each meeting.

  1. Develop a draft plan for moving ahead.

April 1, 2011 Meeting Agenda and Minutes
  1. Development of a draft plan for moving ahead was deferred until a later time.

April 13, 2011 Meeting Agenda and Minutes
  1. Discuss development of a draft plan for moving ahead.
  1. Discussion of this topic was deferred until a future meeting.

May 5, 2011 Meeting Agenda and Minutes
  1. Discuss development of a draft plan for moving ahead.
  2. Do we want to form a JIP?
  3. What will it be established to accomplish?
  4. Who will lead it?
  5. Who will do the work of the JIP?
  1. This was discussed in conjunction with Item #7 on the agenda.

  1. Develop a JIP purpose or mission statement.

April 1, 2011 Meeting Agenda and Minutes
  1. At the meeting it was decided to defer the development of a JIP purpose or Mission Statement.
  1. NB. A “straw man” mission statement has been prepared to start the discussion.
  2. This “straw man” was distributed to the Exploratory Team. It is attached to these minutes.

April 13, 2011 Meeting Agenda and Minutes
  1. Discuss the draft Mission Statement.
  2. Revise and approve the statement.
  1. There was a good amount of discussion of the draft Mission Statement.
  2. The Mission Statement as revised by the discussion is a good broad statement.
  3. The new version will be sent to the members of the Exploratory Team.
  4. The wording can be considered again at the next meeting.

May 5, 2011 Meeting Agenda and Minutes
  1. Is there further discussion of the Mission Statement?
  2. It is on the ALRDC web site.
  3. Where else should it go?
  1. The Mission Statement if OK for now.

  1. Develop a scope of the proposed JIP.

April 1, 2011 Meeting Agenda and Minutes
  1. At the meeting it was decided to defer the development of the Scope of the proposed JIP.

April 13, 2011 Meeting Agenda and Minutes
  1. Discuss development of the Scope of the proposed JIP.
  1. Discussion of this topic was deferred until a future meeting.

May 5, 2011 Meeting Agenda and Minutes
  1. Discuss development of the Scope of the proposed JIP.
  1. This was discussed in conjunction with Item #7 on the agenda.

  1. Develop objectives of the JIP.

April 1, 2011 Meeting Agenda and Minutes
  1. There must be specific objectives for this project.
  • A JIP normally has fixed objectives and is for a fixed duration.
  • There could also be a Consortium that is on-going.
  • We may be looking at something like a Consortium for this project or set of projects.
  • But it may be more acceptable to management if we call it a JIP.
  • Or we can have a project-oriented Consortium where some companies may be interested in some projects; while other companies may be interested in other projects.
  • Items to be considered:
  • Should the JIP consider oil wells, gas well, or both? Consensus: Both need to be considered.
  • We need to consider liquid-rich gas wells and oil wells.
  • Our big concern is lifting liquids, both water and condensate.
  • We will be facing ever-increasing GORs, limited liquid volumes.
  • Choice of artificial lift methods.
  • Are there preferred artificial lift methods for lifting horizontal wells?
  • Are there preferred methods of deployment of artificial lift.
  • Making artificial lift methods effective in the presence of gas.
  • Flow regimes, flow models, relative permeability.
  • Does well geometry and wellbore trajectory matter? Consensus: This is one of the main concerns.
  • What is the critical rate?
  • Do we need new models?
  • Are we more concerned with film flow rather than flow of droplets?
  • What are key well design issues:
  • Where should the end of the tubing be placed?
  • Where should gas injection be placed for gas-lift, for Continuous Gas Circulation, etc?
  • What are criteria for downhole separators to allow more effective pumping with sucker rod pumps, ESPs, etc.
  • What casing size(s) are needed?
  • Can we develop information that can be used to justify better trajectories, casing sizes, etc?
  • What has been done already by Industry that can be leveraged?
  • There are search methods that can be used.
  • We can develop a questionnaire.
  • What are each company’s top five items?

April 13, 2011 Meeting Agenda and Minutes
  1. Is there additional discussion of the objectives of the JIP?
  2. NB. A draft questionnaire has been developed and sent to the team.
  3. Review and approve the questionnaire.
  4. Agree on how and to whom this is to be sent
  1. There was a good discussion of the drat questionnaire.
  2. Rather than change it at this time, it was agreed to use it on a trial basis by the Exploratory Team.
  3. The members of the Exploratory Team should fill out the Questionnaire and give feedback on how it works.
  4. People should return the completed questionnaire to Cleon Dunham by April 27, 2011.
  5. Cleon Dunham will compile the results and send them to the members of the Exploratory Team for discussion at the next meeting.
  6. The ultimate goal is to send this to all members of the “expanded” Full Team for their input.
  7. NB. After the meeting Rob Sutton asked if we could use this questionnaire in a “breakout session” at the Gas Well Seminar in Pittsburg in June. I like the idea but said I’d run it by the Exploratory Team. Any objections?

May 5, 2011 Meeting Agenda and Minutes
  1. Eight of the eleven member companies of the Exploratory Team have responded to the Questionnaire.
  2. The current results of the questionnaire are attached, in two parts.
  3. Discuss the results to date and discuss the next actions.
  4. Does the questionnaire need revision?
  5. Are we ready to send it to the Full Team?
  6. Can it be placed on the ALRDC web site?
  7. Following Rob Sutton’s suggestion (#7 above) can it be use in the Appalachian Basin Gas Well Seminar in Pittsburg in June, 2011?
  1. Larry Harms: The “gas” people ranked the “end of tubing” high.
  2. Kees Veeken: The focus of the JIP needs to be clear. Maybe there are things we should not include in the JIP. Would like to focus on gas only. Should not look at impairment issues or solids since we need to focus on highest ranking topics.
  3. Cem Sarica: We need to focus on gas wells.
  4. Rob Sutton: Some of the topics build on one another. There is a current focus on oil in the industry so this is important right now. We should think about impairment and solids.
  5. Larry Harms. He is sympathetic to also working on oil. There are many more horizontal gas wells than oil wells. Many of the horizontal wells are being abandoned.
  6. Cem Sarica. We should focus on what needs to be done and describe what needs to be done for horizontal wells.
  7. Jesus Chacin: Make Question #1 into two questions.
  8. Larry Harms: Should we focus on gas wells, oil wells, or both.
  9. Omar Soto: Prefer to focus more on gas wells, but we want to include the people who are interested in oil wells.
  10. Larry Harms: State the main focus is on gas wells, but ask people how they feel about it.
  11. Kees Veeken: Suggest we do this one for gas. Do another for oil if there is an interest.
  12. Cleon Dunham: Action Item. Will adjust the questionnaire based on this discussion. Done. Will review it with the Exploratory Team and then send it to the Full Team and place it on the web site. We will use it in the Appalachian Basin Seminar.
  13. Cem Sarica: Can we promote the JIP in the Appalachian Basin Seminar?
  14. Rob Sutton: We will seek input at the Seminar in Pittsburg.

  1. Determine how we are going to communicate.

April 1, 2011 Meeting Agenda and Minutes
  1. We will communicate by e-mail and phone.
  2. We can create a LinkedIn Discussion Group.
  3. NB. This has been done.
  4. Members of the team are encouraged to give it a try.

April 13, 2011 Meeting Agenda and Minutes
  1. Have members of the team used the LinkedIn Discussion Group?
  2. Are there comments on it?
  1. The members of the Exploratory Team are encouraged to check out the LinkedIn Discussion Group.
  2. Cleon Dunham will moderate the discussion. Initially it will only be for members of the Exploratory Group.
  3. It was asked if documents can be posted on the Discussion Group.
  4. We need to have both a short-term method and a long-term method for communicating.
  5. James Martin will look at the options for communications.
  6. Cleon Dunhamwill post information on the ARLDC web site.

May 5, 2011 Meeting Agenda and Minutes
  1. There has been no use of the LinkedIn Horizontal Well Discussion Group.
  2. There is a web page for this team on the ALRDC web site.
  3. Are any actions needed on this topic at this time?
  1. There were no new suggestions for communications at this time.

  1. Determine what is in the proposal to be handed to full team?

April 1, 2011 Meeting Agenda and Minutes
  1. At the meeting it was decided to defer the development of the proposal that is to be handed to the full team.

April 13, 2011 Meeting Agenda and Minutes
  1. Discuss the proposal that is to be handed to the full team.
  2. It is time to start the outline of this proposal?
  3. Is it time to define who will work on it?
  1. Discussion of this topic was deferred until a future meeting.

May 5, 2011 Meeting Agenda and Minutes
  1. Discuss the proposal that is to be handed to the full team.
  2. Are we going to be able to work on this in teleconference calls?
  3. Can we have something meaningful ready by the time of the June 6Full Group meeting?
  4. What is the way forward with this?
  1. For people away from Houston there is a need to meet by teleconference.
  2. We could have a combined face-to-face and teleconference meeting.
  3. We could have more than one meeting.
  4. We can have another teleconference to develop an outline for the plan. This was agreed. The meeting schedule is in Item #12 below.

  1. Define others who should be invited to be involved in the Full Group and the Exploratory Group? This will include Operating Companies, Service Companies, and others.

April 1, 2011 Meeting Agenda and Minutes
  1. Operating Companies
  2. Chevron
  3. Chesapeake
  4. Newfield
  5. Hess
  6. Anadarko
  7. Devon
  8. Total
  9. El Paso
  10. Southwest Energy
  11. Encana
  12. Service Companies
  1. Halliburton
  2. Schlumberger
  3. Baker
  4. John Crane
  5. Cameron
  6. Nalco
  7. MultiChem
  8. Ferguson Beauregard
  9. Production Control Services
  10. Multi Products
  11. Echometer
  12. Lufkin
  13. Lufkin Automation
  14. Stim Lab
  15. JMA
  1. Universities
  1. Penn State
  2. Colorado School of Mines
  3. A&M
  4. UT
  5. Texas Tech
  6. Marietta College
  7. LSU
  1. Actions
  1. Provide contact people and addresses for each Operating Company, Service Company, and University.

April 13, 2011 Meeting Agenda and Minutes
  1. Do we need to add other Operating Companies, Service Companies, or Universities to the list?
  2. Do members of the Exploratory Team have contact names and addresses for these companies?
  3. Who volunteers to contact them? (This task can be shared.)
  1. Cem Sarica asked that we add JMA to the Operating Company list. This has been done.
  2. Ultimately, we will send the Questionnaire to all of the companies that are members of the Full Team, including all of the companies listed above.
  3. James Martinwill contact Chevron.
  4. Members of the Exploratory Team are asked to feed names and contact addresses to Cleon Dunham so he can contact these companies.

May 5, 2011 Meeting Agenda and Minutes
  1. No new names and contact addresses have been received, so no new companies have been invited to participate in the Horizontal Well Group.
  1. Action Item. Each member of the Exploratory Team is asked to submit names and contact addresses for companies to be asked to join the Full Team.

  1. The date for the following meeting of the Full Group will be proposed by the Exploratory Group.

April 1, 2011 Meeting Agenda and Minutes
  1. At the meeting it was decided to defer this discussion.

April 13, 2011 Meeting Agenda and Minutes
  1. Do we need to consider the next date for the Full Team at this time?
  1. The Exploratory Team agreed to schedule a meeting of the Full Team on Monday June 6, 2011, to give them an update on our progress.
  2. Cleon Dunhamwill ask Weatherfordif they will host the meeting.
  3. NB. Weatherford has responded that the meeting can be at their location at 11909 Spencer Road. Bill Lane has reserved the room for all day and will provide lunch.

May 5, 2011 Meeting Agenda and Minutes
  1. Do we want to keep the date of June 6, 2011 for the next meeting of the Full Team?
  2. Can we be ready to have a meaningful meeting in one month?
  3. What do we want to have for an agenda for this meeting?
  4. How will we prepare information for this meeting?
  1. We agreed to keep the June 6, 2011 meeting, at least for now. This can be discussed again at the next meeting of the Exploratory Team.

  1. Other items:

April 1, 2011 Meeting Agenda and Minutes
  1. We need to provide a draft document for the Full Team, get feedback, and make revisions.
  2. Wayne Mabry. Is there a template we can use for forming a JIP?
  3. Deepstar may be an example.
  4. CFER can provide examples that have worked for them.
  1. The date of July 1 has been set for the Exploratory Team to provide an initial report or draft plan to the Full Group.
  2. The minutes and plans will be placed on the ALRDC web site. NB. This hasn’t been done yet.
  3. Steve Coleman will start a resource list. This will be placed on the ALRDC web site.
  4. Wayne Mabry will start a “Definition” list. This will be placed on the ALRDC web site.
  5. Cleon Dunham will draft a Questionnaire to seek input on objectives from the members of the Full Team. NB. This has been done. It will be reviewed by the Exploratory Team before it is sent to the Full Team.

April 13, 2011 Meeting Agenda and Minutes
  1. Discuss these “Other Items.”
  2. Has progress been made on any of these items?
  3. It is OK to post the minutes and other items on the web site at this time?
  1. Other than Item 7 from the April 1 meeting, these items have not been addressed as yet.
  2. Items will be posted on the ALRDC web site.

May 5, 2011 Meeting Agenda and Minutes
  1. James Martin has provided a start for a list of “Definition of Terms.”
  2. This is attached with this agenda.
  3. What do we want to do with this list?
  4. How do we want for it to be used?.
  1. Cleon Dunhamwill re-send the Definition of Terms to Harbison-Fischer. Done.
  2. Cleon Dunhamwill place this on the web site. Done.