Gas Pal Basics CuttingEdge Software for Managing Gas

Hello Gas. Pal Table of Contents Maraco Inc. June 2009 Who Is Maraco? Get To Know Gas. Pal Wrap Up Return to Gas. Pal Home Page 2

Gas. Pal. Basics A Brief History of Maraco, Inc. Copyright 2007, 2009 3

Maraco, Inc. Gas. Pal. Basics Maraco was incorporated in 1979, Los Angeles, California. Maraco’s first client was Santos, the largest natural gas operator in Australia. SIPS, Santos Investment Planning System, was developed by Maraco. 4

Other Maraco Software Gas. Pal. Basics GMAN. SIM --- Gas reservoir simulator GMAN. OPT --- Optimize development of gas reservoirs GASTOP --- Gas storage optimization GOMAN --- Optimal Planning tool for oil reservoirs & surface processing Gas. Pal --- Gas reservoir simulator plus TFR, GRIDDER, UPSCLR --- state-of-the-art gas production & storage planning tool 5

Maraco’s Clients Gas. Pal. Basics Kuwait Oil Company, Kuwait national oil co. EBN, Dutch government corporation - bosses hydrocarbon production of the Netherlands. Total. Fina. Elf & other gas operators in Europe & the North Sea. Southern California Gas Company ARAMCO - Arabian American Oil Company 6

Maraco’s Manpower Dr. Elmer Dougherty Gas. Pal. Basics President and founder of Maraco. Professor Emeritus, Petr & Chem Eng, USC - University of Southern California 48 years of reservoir simulation and optimization experience. 7

Maraco’s Manpower Dr. Jincai Chang Gas. Pal. Basics Petroleum consultant and software engineer. 16 years of experience in reservoir simulation and optimization Return to Hello Gas. Pal TOC 8

Gas. Pal Interface Compressor oop Offtake Points w. L Reservoir Tree NW-Network Pane Flo RTReservoir Tree Pane Gas. Pal Reservoirs GO-Graph Output Pane Output Results Compressor Installed TNTTerminal Node Tree Pane 9

Gas. Pal Interactions Terminal Node 9 P = 500 psi Gas. Pal Node 5 Pout = 500 psi Stacked Reservoir Rates Terminal Node 9 q=0 10

Gas. Pal Is Speedy Gas. Pal Is Flexible & User Friendly 11

Benefits From Gas. Pal Business Operations Gas. Pal With History Matched Model: • Make accurate & reliable predictions of gas reservoir – surface flow potential. • Determine size & timing of compressors to maximize economic recovery. • Determine ultimate reserves & time distribution of their recovery. • Work out timely & orderly plan of development – drilling, surface facilities, abandonments, workovers – to facilitate budget, capital, expense, equipment, procurement & manpower planning. • Fix desired spare capacity with the selected production schedule. 12

Benefits From Gas. Pal Reservoir Studies Gas. Pal Test What If Questions: • How sensitive performance is to changed reservoir parameters, e. g. GIP, k, h, Area (PV), composition. • How timing of drilling affects incremental recovery. • How timing & location of perforations affects reserves. • How distribution of well rates affects aquifer influence – trapped gas volume, WOR vs t, water-out dates. • How surface equipment affects rate and recovery - line size, compression, separator ∆P, chokes. • How geologic features impact optimal development & production plan – How big is a new prospect? 13

Benefits From Gas. Pal Reservoir Studies Gas. Pal Test What If Questions: • How surface flow interaction affects distribution of flow from reservoirs o backout of old reservoir by new? o back flow into old reservoirs? o compressor ‘hookup time’ – when to switch new reservoir to suction o impact of tolling external gas to market. • How mixing reservoir flows affects composition and heating value of delivered gas. • How production mechanism affects flow – shale gas, coal seam gas, condensate – all under development. 14

Benefits From Gas. Pal Analysis Tool Gas. Pal Quickly And Conveniently: • Construct large or small model. • Obtain graphs of all rate, cum, P, Sg, Sw – with HM data points plotted – send any graph to Excel file. • Construct computing grid with GRIDDER – w/wo contour map – Gas. Pal reads file with GIP, PV, K. • Upscale Petrel geologic model into a Gas. Pal computing grid – Gas. Pal reads file with GIP, PV, K. • Fit & plot WGR & CGR curves. • Import data from Excel files o Gas. Pal reads data file o Cut & Paste – especially HM data. 15

Benefits From Gas. Pal Engineering Evaluation Gas. Pal History Match Well Performance: • Correlate liquid effect accurately. • Determine layer production – set perferation strategy • Fit P/Z curve statistically for GIIP estimate, external flow? • Determine distribution of water from aquifer – Sw. • Determine impact of faults on production. • Trace P & q in tubing & pipes at all time. Design And Operate Gas Storage Reservoir: • Determine injection and withdrawal rate in response to demand & supply – with different cushion gas volume 16

Gas. Pal Logic Diagram Create Grid Model GRIDDER Write RSD Data File Gas. Pal’s Onscreen & Print Output History Matching Gas. Pal Input Panel Windows Graphics Tabular Text Files RSD File Gas. Pal Input Panels Calibrate Tubing TFR Predict Rate/ Pressure/ Saturation in Reservoir/ Flowline System Write PAL Database File Tabular CSV Files Gas Show: Saturation Shadow Graphs 17

Gas. Pal’s Simulator Gas. Pal’s integrated calculation of reservoir and surface network flow makes it a “nodal analysis” reservoir simulator. A simulator calculates flow rate – gas, gas liquids and some water – and pressure in a producing reservoir. Calculations proceed through time steps until the desired planning period is spanned. Nodal analysis means that the equations solved account for fluid flow in the pores of the formation, up the production tubing, out through the wellhead flowline and through the network of pipes and compressors to gas delivery points. Special solution methods assure smooth and rapid convergence on each time step. The lightning fast computing speed allows practical solution of large models. For example a model that includes over 700 producing gas wells and 2000 flow segments simulates 300 monthly time steps in less than 30 minutes. 18

Gas. Pal - GRIDDER - TFR Gas. Pal Software consists of 3 linked programs: Gas. Pal, GRIDDER and TFR. Gas. Pal: is a Windows-based nodal analysis simulator with a user-friendly data input and operational control interface. GRIDDER: Gaspal preprocessor must be used for a reservoir model with more than 10 cells; 1. Supports construction of a computing grid via an onscreen graphic layout, 2. Provides for convenient input of all formation data (h, k, φ, Depth, Skin, Pr, sw, & so) (including pasting vectors from Excel), 3. Computes inter-cell flow coefficients, 4. Ties together several cells to represent a horizontal well, 5. Sets up full and partial sealing faults on designated cell boundaries, 6. Writes these results/data into a text file that Gas. Pal reads and stores in its. pal database file for a project. TFR: Tubing, Flowline Riser simulator is a Windows-based program with which to calibrate pressure drop in vertical and horizontal flowlines. TFR allows a selection from many useful flow correlations. Commonest use of TFR is to find a correlation that history matches tubing performance observed in well tests. Results for a tubing HM can be imported directly into Gas. Pal for simulation calculations. TFR also provides IPR and tubing intake (VLP) curves. Return to Hello Gas. Pal TOC 19

Better Software ─ Better Service June 2009 Thank You For Watching 20

To Contact Us Please contact Maraco Communications Coordinator Loy Combs loy. combs@gmail. com loy. combs@maraco. com 949 -973 -4065 Maraco Inc 33531 Marlinspike Drive Monarch Beach, Ca 92629 949 -388 -6193 Return to Hello Gas. Pal TOC 21