Cardinal Surveys Company

1. Cardinal Surveys Company Eliminate The Guesswork! Bringing conformance within reach with proven technology.

2. Cardinal Surveys Company Choose your treatment success rate: 0 - 5% Based on assumptions. 5 - 90% Based on partial data. +90% Based on defined problems with solutions proven on previous applications.

3. Assumptions We know, it has to be this! It’s the only thing that could cause that… The model shows… Probable Result: Damage productive zones.

4. Partial Data Water Analysis - you know the zone, what’s the flow path? Production History / Correlation - Flow path, parts is parts? Bond Logs - Good until the first stimulation. Injector Response - flow path, vertical fractures, offset wells... Pump In Tracers without Production Logs - Path of least resistance, usually the good productive zone. OR

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6. Step Rate Test • Determine fracture point • Reservoir protection • Regulatory compliance • Can’t be estimated or based on assumptions • May be most vital of all diagnostics

7. Step Rate Test • Uniform Steps (Rates and Times) • Down-hole, real-time pressure measurement • Accurate flow rate measurment • Recording and filtering of data • Prepare well (shut in, water source)

11. Define The Problem(Locate Production) TRAC-III to determine conformance problem. A. Annulus Logging with 7/8” O.D. Tools. B. Flowing Wells C. “Y” Tool & Submersible Pump (7/8” Tools). D. Memory PLT (Horizontal Applications).

12. Annulus TRAC-III Production Logging With 7/8” O.D. Tools Tracer Velocities Temperature Logs Collar Locator Gamma Ray Capacitance Pressure Caliper

13. Annulus Logging Candidates 4.5” Casing & 2.375” Tubing 5.5” Casing & 2.875” Tubing Or any combination of larger casing and smaller tubing. No liners or other restrictions in the annulus. ROT: 100 BPD of produced fluids.

14. Trac III Production Logs • Dynamic, producing (e.g., actual or "real-time") conditions. • Temperature log. • Capacitance log. • Radioactive tracer log. • All logs can be run simultaneously during one trip in the well. • 5 1/2 inch casing and 2 7/8 inch tubing. • 4 1/2 inch casing and 2 3/8 inch tubing.

15. Trac III Production Logs • Positive monitoring of reservoir performance . • Detailed, zone-by-zone, information. • Changes in the down-hole conditions detected. • Reevaluate marginal production wells. • Rework watered-out or gassed-out wells. • Recompletion of unproductive offset wells. • Essential guidance for remedial-workover designs. • Cost-effective well recompletions.

16. Trac III Production Logs • Improved completion techniques for future wells. • Immediate verification of perforation efficiency . • Positive identification of the actual production intervals. • Confirmation of open hole log analysis and assumptions used in the initial completion. • Pinpoint mechanical problems.

17. Trac III Production Logs • Document baseline production profile for future reference. • Optimize pump placement. • Discover unwanted water sources for remedial procedures. • Correlate production results with injection profiles for sweep efficiency of floods. • Confirm engineering and geological assumptions and analysis.

18. Trac III Production Logs • Verify stimulation job effectiveness and techniques. • Plan accurate placement of mechanical isolation tools (bridge plugs and packers.) • Locate thief zones and undesirable cross-flows. • Real-time snap shot of production well.

19. 7/8” O.D. Tool Lengths Rope Socket (15" - 5/8" fishing neck) Capacitance Tool (40") Caliper (69") Collar Locator (28.5") Scintillation Gamma Ray Detector (60") Microprocessor Controlled Ejector (75.5") Temperature Tool (37") Memory Pressure Gauge (14”) Total Tool Length with crossovers = 30’

20. Annulus TRAC-III Preparation • Pull Tubing • Remove Anchor • Set Pump 100’ above Perfs • Dual Completion Flange • Small Pumping Tee • Slimline Stuffing Box • Remove Bridal Guard • Vertical Clearance Above Annulus Opening

21. Dual Completion Flange Top View Side View

22. Hand Packoffs

24. Dual Head Configured & Pump Is Engaged

25. 4.5” Casing & 2.375” Tubing Note that there is not enough room to install a valve on the annulus opening. These flanges are specifically designed for logging in 4.5” casing. A dual completion flange, if there is such, would not allow enough room in the annulus for tool entry.

26. TRAC-III Below Submersible Pump Y-Tool Assembly • Well must have 7” casing to accommodate Y-tool. • Shut-in well & allow fluid to fall below pump • Fish out plug

27. Y-Tool Accessories For Logging Running Plug Baby Red Prevents fluids from being circulated by pump. Used to retrieve plug from Y-tool.

28. TRAC-III Below Submersible Pump Y-Tool Assembly • Install running plug on wireline • Lower TRAC-III Tools & Running Plug to “Y” • Lower TRAC-III Tools below pump • Engage pump to seat running plug • Run logs when well is stable

29. Memory PLT • Horizontal wells are the primary application in the Permian Basin. • No real time feedback allowing procedure modification to maximize information. • Most wellbore events in producers are not continuous. Your economics must reflect the possibility of multiple runs to accomplish some test objectives. • Most companies that have access to memory tools do not consider production logging a core business. • Great weapon, for the right battle!

30. Production Logging Tidbits There are no silver bullets in the production logging industry.

31. Production Logging Tidbits Production logging for conformance objectives is an investigative process. It requires the knowledge, experience, and authority to change the logging procedure as needed to define anomalies as they are encountered during the log.

32. Production Logging Tidbits Avoid the intentional design of tests that rely completely on nuclear based data acquisition. Their maximum radius of investigation is approximately 24 inches from the sensor.

33. Production Logging Tidbits In production logging, temperature logs are the center of your universe. They are always correct, although sometimes hard to interpret by themselves. Use data acquired from others sensors to help you interpret the temperature logs.

34. !We Want You On Location! • Production logging is an investigative process • Your knowledge of the lease can make the difference between a good survey and a great survey

35. Correlation Logs Logs used to align logging depths to previously run open hole and cased hole logs. Avoid the LAST LOG SYNDROME. It is generally acceptable for most production logs to be within 2 to 3 feet of measured depth. However, if you are on the 4th or 5th generation of logs, you may be correlating 10’ to 15’ off depth. Always try to use the original open hole logs or the logs used to perforate the well.

36. Temperature Logs Producing temperature logs tend to reflect in wellbore and near wellbore events. Shut-in temperature logs indicate events outside the wellbore. You must know the status of the interior of the wellbore before you can interpret shut-in temperatures.

37. Capacitance • Fluid Identification • Calibrate between water and gas. • Capacitance VS. Density Tool

39. Tracer Velocities Modified Velocity Profile Measurement Production fluctuations do not affect the calculations as severely as stationary velocity shots. Same velocity method is used in flowing wells.

40. Tracer Velocities

41. Caliper • Measures internal diameter of wellbore. • Gives general picture of conditions. • Improves velocity calculations and profile.

42. Merged Log

43. Example #1 • Rod pump well in S.E. New Mexico • Was producing 30 oil, 60 water, and 0 gas. • New perfs (upper set) added. • Current production: 200 water, 0 oil, and 0 gas. • Pump & tubing anchor set at mid perf.

44. Example #1 – Customer Designed Procedure • Set PKR above top perf for PIT and pressure test. • Well casing held 500 psi above PKR. • Logs indicate water and porosity in upper set. • Customer is certain water source is in new zone. • Run PIT for cement squeeze design. • Economics will only allow one attempt at fixing the problem.

45. Example #1 - Cardinal Recommendation • POOH & remove PKR. • Set EOT 100’ - 200’ above top perf. • Configure surface equipment for an Annulus TRAC-III. • Determine water source and flow path to wellbore.

46. Example #1 - Cardinal Results Leak in CSG 400’ above top perf producing +300 bpd water. Leak is at a collar and will give up water, but not take water. Pump removing +/- 200 bpd water to surface. The new zone dead. It is not giving up or taking fluid. Productive zone is taking 100 bpd water, crossflow from leaking casing.

47. ? What If ? Which zone do you believe would have been squeezed had we followed the original request? What if water was channeling up from below and into the bottom set of perfs? What if water was being produced from the new zone? What would be the likely series of events? End Result: LOST WELL

48. Design The Solution(Locate Loss Profile) Pump-In Tracer or Injection Profile. A. Stationary Velocity Profile. B. Intensity Profile C. Channel Checks D. Crossflow Checks

49. Injection Profiles - Why? • Determine where fluids are going. • Check mechanical integrity of well bore. • Verify conformance to formation porosity. • Locate channels. • Check perforations. • Check fill. • Find scale and build-up. • Discover holes or unreported perforations.

50. Injection Profiles - Objectives: • SAFELY • Accurate and Quantative • Detect Mechanical Problems • Detect Channels • Minimize Risk to Well • Perform economically without sacrificing quality.