Enhanced Oil Recovery Institute Department of Geology and

Enhanced Oil Recovery Institute Department of Geology and Geophysics University of Wyoming Preliminary CO 2 Demand Analysis for the Powder River Basin Presentation to Wyoming Pipeline Authority Jan. 24, 2006 by J. Michael Boyles Klaas van ’t Veld

EORI’s Goals Assist operators to help improve oil production in Wyoming fields through research, technology transfer and project assistance – Improve existing production practices • Increase efficiency of water floods • Identify bypassed pay – Assist with evaluation of potential EOR projects for Wyoming fields

Goal – More CO 2 EOR in Wyoming l Convert more of Wyoming’s CO 2 from a waste gas to a resource l Help Wyoming operators with CO 2 field evaluations – Very effective EOR technique • • • Recovers additional 8% to > 15% of OOIP Swells oil Lowers viscosity – Capital intensive – Higher operating costs

What is EORI Doing about CO 2 l Characterizing Wyoming oil fields – Building integrated database for fields and reservoirs (WGA, O&G, SPE, DOE …. ) – Analyzing reservoir performance (RMS-AAPG talk) l Building reservoir models – Analyzing reservoirs currently being flooded – Will predict CO 2 -EOR response for reservoirs not currently being flooded with CO 2 l Developing scoping tools – Simple tools to evaluate “what if” scenarios – Based upon Wyoming reservoir characteristics

Current CO 2 Situation in Wyoming l CO 2 Sources – La Barge • • Sales 250 MMSCFD at high pressure Venting 210 MMSCFD at low pressure – Madden • Venting l 55 MMSCFD at low pressure Existing pipeline* – Current distribution • • Salt Creek 105 MMSCFD Baroil 40 MMSCFD Rangely 80 MMSCFD Monell 30 MMSCFD – Potential additional distribution to PRB • Easy +75 MMSCFD • Possible +350 MMSCFD * Towler, in press

Current CO 2 Pipeline Powder River Basin Salt Creek Madden 16 in La Barge 24 in 20 in Monell Rangely Bairoil

Enhanced Oil Recovery Institute Department of Geology and Geophysics University of Wyoming Preliminary CO 2 Demand Analysis for the Powder River Basin

Study Area Powder River Basin

Powder River Basin 50 miles

Initial Scope l Reservoirs Cum production Minnelusa 600 MMBO* Sussex / Shannon 365 MMBO* Muddy 266 MMBO* * IHS Production Database

Rationale – Near the end of CO 2 trunk line • Extra capacity – Several big fields in basin that would support development of needed infrastructure • Hartzog Draw, Hilight, Raven Creek, House Creek, Big Muddy – Younger fields that have complete production data – Structurally simple traps – Stratigraphic heterogeneities are understandable

Work Plan 1. Identify “promising” fields 2. Screen for miscibility 3. Estimate CO 2 -EOR response 4. Screen for profitability

1. Identify “Promising” Fields 99 Fields (120 field-reservoir combinations) l – – – Each has cum oil Combined OOIP >4 1, 300 3, 200 MMBO Potential size of prize, assuming l – – – all pass miscibility screen all yield extra 10% of OOIP CO 2 -EOR response all pass profitability screen 320 MMBO

2. Screen for Miscibility l Rule-of-thumb approach – API cutoff – Depth cutoff – Too simple for accurate forecasts l EORI approach – Measured MMP – Estimate based on oil composition and temperature – Estimate based on API and temperature

3. Estimate CO 2 -EOR Response l Rule-of-thumb approach – 8 to 15 % of OOIP l Other industry-standard approaches – Scaled response (Kinder Morgan tool) • Based on field analogs (San Andres and Morrow) – CO 2 Prophet (DOE) • Based on simulation of Louisiana fluvial-deltaic reservoir l EORI approach – Scaled response (“EORI Tool”) • Based on simulation of Wyoming reservoirs

4. Screen for Profitability l Industry-standard approaches – Use KM tool with built-in price, cost assumptions – Use CO 2 Prophet adding price, cost assumptions l EORI approach – Use “EORI tool” with flexible price, cost assumptions

Why an EORI Tool? l Major Economic Screening Factors – Cost of pipeline • Distance to trunk line – Cost of gas plant • Capital cost • Operating costs • Quantity recycled over time – Cost of CO 2 • Price • Quantity purchased over time – Oil revenues • Price • Quantity produced over time

KM Prediction: Lost Soldier-Tensleep Predicted Actual

KM Prediction: Lost Soldier-Tensleep Predicted Actual

KM Prediction: Lost Soldier-Tensleep Based on 1995 KM cost data Predicted Actual

KM Prediction: Lost Soldier-Tensleep Predicted Based on 1995 KM cost data Actual

KM Prediction: Lost Soldier-Darwin Madison Predicted Actual

KM Prediction: Lost Soldier-Darwin Madison Predicted Actual

KM Prediction: Lost Soldier-Darwin Madison Based on 1995 KM cost data Predicted Actual

KM Prediction: Lost Soldier-Darwin Madison Based on 1995 KM cost data Predicted Actual

KM Prediction: Wertz-Tensleep Predicted Actual

KM Prediction: Wertz-Tensleep Predicted Actual

KM Prediction: Wertz-Tensleep Based on 1995 KM cost data Predicted Actual

KM Prediction: Wertz-Tensleep Predicted Based on 1995 KM cost data Actual

What about Economies of Scale? l Major Economic Screening Factors – Cost of pipeline • Distance to trunk line – Cost of CO 2 gas plant • Capital cost • Operating costs • Quantity recycled over time – Cost of CO 2 • Price • Quantity purchased over time – Oil revenues • Price • Quantity produced over time

Two Phases l Initial estimate of CO 2 -EOR response to define CO 2 trunk pipeline route – Individual field model – Central gas recycling plant model l Detailed analysis of CO 2 -EOR response and economics given CO 2 trunk pipeline route – Individual field model – Central gas recycling plant model

CO 2 -EOR Potential Recovery 3 Mile radius

CO 2 -EOR Potential Recovery 6 Mile radius

CO 2 -EOR Potential Recovery 9 Mile radius

Bottom Line l Wyoming is blessed with cheap CO 2 l The distribution system is not at capacity l CO 2 -EOR could substantially increase production in the PRB So where do we go from here?

Current and Future Work l Wyoming reservoirs are unique l Need accurate, WY-specific forecasting models – Statistical analysis of past production – Research into CO 2 -EOR response – Research into CO 2 -EOR economics (including potential sequestration credits) l Working with Pipeline Authority l Building database and knowledge repository on Wyoming oil fields

We Need Your Help l Contact us with suggestions / recommendations l Please let us know if you have data that might help – Oil/gas analyses – Oil samples – Special core analyses – Detailed production data (including pressure) – Detailed cost data

Acknowledgments l Wyoming Oil and Gas Commission – Production data, field files, technical support l IHS – Production data and well information l Merit – Data on Bairoil CO 2 floods