ENHANCED PLUNGER LIFT SYSTEM PLUNGER LIFT FOR THE

ENHANCED PLUNGER LIFT SYSTEM PLUNGER LIFT FOR THE 21 ST CENTURY Daryl Mazzanti – President GARP Services LLC 1

OUTLINE • Conventional plunger lift and its limitations • Enhanced Plunger Lift System • Additional Plunger Lift Solutions 3

CONV Plunger Lift Well Shut in period Reservoir gas rises up the csg & tbg Reservoir Gas Liquids NEXT

CONV Plunger Lift Well PRIOR TO LIFT Gas pressure builds & expands gas column downwards. Annular Liquid Volumes For a 500’ liquid level ~5 bbls (4 -1/2” x 2 -3/8”) ~9 bbls (5 -1/2” x 2 -3/8”) ~15 bbls (7” x 2 -7/8”) Reservoir Gas Liquids NEXT

During a Lift Cycle Conv Plunger Lift Resulting High Liquid Column Below Plngr Reservoir Gas Liquids NEXT

CONCEPTS TO UNDERSTAND Plunger lift efficiency increases as …. . 1. Annular liquid volume decreases 2. Liquid volumes above the plunger increases 3. Plunger velocity increases which helps… • Decrease liquid leakage past the plunger • Decrease plunger stalls • Increase number of lift cycles per day • Accommodation space (i. e. , tbg OD) affects liquid volumes but NOT liquid levels in the casing. Liquid level changes depends on the surface and reservoir pressure • Liquids that are BELOW the plunger when it reaches the surface do not normally make it to the surface. . i. e, these liquids fall back and remain in the well bore…including liquids that leak past the plunger during a lift cycle 7

HOW ANNULAR LIQUIDS ARE DETRIMENTAL High annular liquid volumes reduce the optimal production rates by : • Creating substantial tubing back pressure which hampers gas entering the tubing • Acting as a spacer between the gas & plunger that serves to delay gas to plunger contact All results in lower production per day by: • Slower plunger velocities • Plunger stalls • Higher liquid leakage around the plunger • Reduced number lift cycles per day Many wells with high liquid rates and/or low BHP will not respond to plunger lift for the reasons above 8

LARGE O. D. TBG PLUNGER LIFT 9

DESIGN PARAMETERS • Ability to use standard oil field tubulars • High temperature range ~350 Deg F or above • Stable - Resistant to swelling, cracking, flaking, breaking, corrosion (H 2 S, CO 2, salt water, etc ) • Easily milled in case the pipe becomes stuck Non-critical factors but a big plus • Ability to install on-site on operator’s tubing to cut tubular and transportation costs by $4000 -$5000 per installation 10

CURRENT PREFERRED METHOD • Braided rope (fiberglass or ceramic fiber) that can be secured around the tbg Benefits of this design – • Working prototype has been built • Fibers can withstand +1000 deg F • Fibers can withstand a PH of 2 -12 • Inexpensive to transport with the ability to install onsite around the operator’s existing tubulars w/ no hot work permit required • Meets price point objectives • Braided rope is durable, won’t corrode, flexible, can be secured to not un-wind • Easily milled if pipe becomes stuck in place 11

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PROTOTYPE PIC • 2 -3/8” pup joint wrapped with 1” fiberglass braided rope • 4. 15” OD 13

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Larger OD Tbg Design w/ tbg gas separator Greatly reduced Annular Liquid volume from previous Bull Plug Gas Separator Creates higher liquid level in tbg than csg With a 4. 15” OD tbg ~5 bbls (600#) 5. 5” x 2 -3/8” Annular area > 2 -7/8” ID With a 5. 1” OD tbg ~8. 5 bbls (680#) 7” x 2 -7/8” Annular area >>>2 -7/8” ID Larger OD Tbg Section Bull Plug Gas Separator Reservoir Gas Liquids NEXT

Larger OD Tbg Design LESS LIQUIDS UNDER PLUNGER Reservoir Gas Liquids NEXT

LARGER OD PLUNGER LIFT WITH VELOCITY STRING, PACKER AND GAS SEPARATOR 18

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ADVANTAGES OF THE IMPROVED PLUNGER LIFT SYSTEM • Larger OD material can withstand over 1000 deg F, won’t corrode, and can be easily milled up • Substantially reduces the annular liquid volume by 3 x or more Increases gas and liquid production by: • Increasing the average plunger velocity • Increasing the number of trips per day • Reducing the time it takes for the annular gas to come in contact with the plunger • Reducing or eliminating plunger stalls • Reducing the liquid leakage past the plunger • Increasing the liquid ABOVE the plunger by separating the gas to flow into the csg annulus 20

OTHER METHODS OF CREATING LARGER OD TUBING • Fiberglass tubes wrapped with stainless steel mesh • Cement tubes wrapped with stainless steel mesh • Stainless steel mesh filled with resin coated sand • Watertight stainless steel reinforced bladder filled with water • TARGET PRICE = $8, 000 per application for a 500’ fluid level = 16 joints of larger OD tubing 21

CANDIDATE WELLS • Deviated or horizontal wells • Existing plunger lift wells – even wells that are performing up to expectations • Gas Assisted Plunger Lift wells - expensive compressors may be removed • Wells that were thought not to be good plunger lift candidates or did not respond well to plunger lift, even if currently on rod pump or soap or other art lift method • System is available for 2 -3/8” or 2 -7/8” tubing for wells with 4 -1/2” or larger casing 54

WHAT DO I NEED FROM YOU? • Pilot Project Installation Opportunities • For the pilot project, there will be no cost to the customer for the larger OD material. It will be applied on-site to the customer’s tubing joints • If successful, preferential pricing will be given for the next ten wells as a benefit in helping prove up the concept • Afterwards, pricing is subject to standard negotiated volume deals. The projected price point is estimated at this time to be ~$8000 per 500’ of 4. 15” OD (2 -3/8” or 2 -7/8” tbg). Higher prices will ensue for more footage, larger OD’s, and transportation distances 23

CONTACT INFORMATION Daryl Mazzanti – President Email : daryl@garplift. com Ph : 281 -796 -6132 Website : http: //www. garplift. com 56