Friday, May 22, 2009

THAI CAPRI Update

I dug this out of Petrobank’s recent filings. It is quite informative and it looks as if the THAI CAPRI combination is working fairly well. I assume that once they have made all the wells THAI CAPRI, that they will be able to push higher air injection. It could just require a long breaking in period before it is possible to ramp up air injection. I would like to see a discussion on the projected life span of these wells.

There was mention of 3D seismic to get a handle on the size of the combustion chamber. It is likely too soon to have been done.

This report does inform us that they can now drill and produce a well with no technical difficulties like sand.

The remaining challenge is to establish best practice for air injection and how long does it take to reach optimal production.

For those who have not read earlier posts on the subject, Whitesands is a pilot test of toe and heel air injection with a catalytic sleeve to improve upgrading the produced oil. If it succeeds as fully as hoped, it will permit production of the Alberta tarsands without mining or the use of external fuel. It couold be as cheap as thirty dollars per barrel.

Whitesands ProjectDuring March and into the second quarter of 2009, P3B operations were stabilized and rateable production was achieved. In the first quarter, P3B operations were ramped up following the A3 injection well workover and the commissioning of new plant facilities.
Production averaged 248 bopd in March and 256 bopd in April, these restricted production rates correspond to a reduced air injection rate required to balance P2 production operations. The highest daily oil rate from the P3B well was 378 bopd in March and 404 bopd in April. During April, production from the P1 well was suspended and maintenance work on the P3B wellhead and primary separator reduced on-stream factors.
Since the initiation of production operations on P3B the well has exhibited negligible sand production, irrefutably proving the effectiveness of the new liner design. Produced gas volumes and rates are also in balance with the air injection rate, confirming the toe to heel process.
Wellbore temperatures are now between 300 and 400 degrees Celsius, within the CAPRITM catalyst activation range. Preliminary analysis of produced oil from P3B indicates upgrading to 12 degrees API, similar to the other wells. However, P3B oil has shown a significant reduction in asphaltene content, an increased volume of condensed light oil production and higher hydrocarbon content in the produced gas.
Now that the well is operating in the optimum catalyst temperature range, conclusive, quantitative evidence confirming catalytic upgrading is expected with further testing. Associated water production continues to be high quality and is easily separated from the produced oil. Continuous upgrading and the composition of the produced gas indicate sustained high temperature combustion.
We have a drilling rig on-site and plan to have our P1 replacement well, P1B, drilled in the second quarter incorporating our new liner design. We have decided to cost-effectively convert Whitesands into a modified three well THAITM/CAPRITM demonstration site, which will enable us to test any other new technology options, such as oxygen enrichment, using the existing facilities.