Vann Pumping Systems

1. EOR Vann Pumping Systems Enhanced Oil Recovery using Computerized Hydraulic Lift Systems Call us at (903) 566-2500 for inquiries If we are unable to answer, please leave your name and number with this 24-hour message service and we will get back to you as soon as possible.

2. Introduction EOR • The Vann pumping system brings to the petroleum industry new methods of artificial lift to recover oil and gas.

3. Introduction (cont.) EOR • Throughout the United States there are many oil and gas wells that may be plugged or abandoned. These mature wells, sometimes called ‘stripper wells,’ could possibly be made economical again by employing a short testing and evaluation phase, then implementing a new pumping method that has recently been developed. • The Vann pumping system uses the same pump down hole, but uses cable instead of rods. In place of pump jacks, an electronic and hydraulic operated system is used.

4. Objectives EOR • We may be able to increase production by using a new pumping system. This new system allows longer strokes and fewer strokes per minute. This should decrease the chances of tubing damage by keeping the cable in tension at all times. Many experienced people would agree that more than 4 strokes per minute could throw the rods or cable into compression on the down stroke. • Tests have shown that when fluid level in the annulus is controlled, barrels per day of fluid can increase. We may be able to increase production by reducing hydrostatic on the formation. • The lifting cost per barrel is a prime consideration always.

5. USA EOR More than 30% of U.S. production today comes from enhanced oil recovery techniques. 620,000 marginal wells 350,000 idle wells The solution of the DOE towards this problem is to decrease the costs of production by developing new technologies.

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7. Downhole Pumping System Designed by: VANN PUMPING SYSTEMS Diagram for a 2 7/8’’ tubing Cable Cable Connection Sinker Bars 120 ft, 152 lb. each,1 ½’’ diameter Standing valve US Patent 1 ft. Pull Rod 18 ft. Pump Barrel 20 ft.,11/4’’, 1 ½’’ Plunger 8 ft. Extension 6 ft. Ball and Seat #1 Ball and Seat #2 Vent / Dump Valve US Patent Mechanical Hold Down CABLE OPERATED PUMPING SYSTEMU.S. Patent 6,497,281 B2 EOR

8. Upstroke • The fluid enters to the valve (1) and the ball valve opens (2) with 50 psi pressure allowing the fluid to flow to the surface. • Downstroke • The ball valve closes (3) causing the hydrostatic pressure to be off the ball in the plungerwhich allows gas to pass through the plunger without delay of gas compression. 2 3 1 Pull Rod EOR STANDING VALVE U.S. Patent 6,382,244 B2 This device is designed to reduce GAS LOCKING. This tool is optional for this system.

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10. Dump Valve EOR The Dump/Vent Valve fits in the base of the pump barrel between the ball and seat and the hold down. The valve is opened by lifting the plunger against the top of the pump barrel. This valve allows for controlled ventingor dumping the fluid out of the tubing. It could be used to spot chemicals at the bottom of the hole and to wash out scale or other matter from around the pump barrel to reduce chances of sticking the pump. We think this system could be used to spot hot fluids down the tubing to melt paraffin. In wells where packers are run, this could be a helpful tool to move the fluid from tubing to formation for any reason. This valve is closed by hydrostatic pressure as the plunger is lowered back into the pump barrel. This valve can be run on any reciprocating pump and is optional for this system.

11. Testing EOR • The Test unit is designed to carry up to 30,000 ft. of cable. The cable is built to withstand over 34,000 lbs. of tension and spool over a 30 in. sheave. The cable is specially built from plow steel. This system includes a computerized control for setting stroke length and strokes per minute.The test unit is used for running and seating pumps and for temporarily pumping the well.

12. Testing (cont.) EOR • After the short testing phase and optimum pumping rate has been determined, the cable is connected to a computerized hydraulic lifting system. The size of the unit and the length of stroke will vary with the depth of the well and downhole well conditions. • After tests have been completed a decision is made on moving onto another well or installing our tower unit for permanent operation. • Testing is done to ensure system is ready for tower unit.

13. Tower Unit EOR • After having tested the well, the lift system will be installed. The components used are controlled by computerized equipment to determine speed, stroke length and target pressures for fluid level in the annulus. Includes the limit switches for tensions in the cable on the upstroke and downstroke. We have controls on temperature, and oil level.

14. Safety Anti-Pounding Automatic shut downs Oil level Oil temperature Pressure limits Efficiency Speed Stroke length Fluid level Some PLC Controls EOR

15. Advantages EOR • Longer strokes than most pumping methods allows for fewer strokes per minute which allows for continuous tension in the lifting system. This feature plus having no rod couplings should cause less wear on the tubing. • By pumping 24 hours a day, there may be some advantages. When pumps stop, paraffin tends to form and solids that are in the fluid tend to drop back into and around pump barrel. • Safer - no visible moving parts on surface equipment. • “Environmentally Green” with a small footprint and a clean well site. • Easier to move from one location to another.

16. Production During Test EOR

17. Madisonville, TX - 7,000 feet EOR

18. Conclusion EOR • We will continue to focus our efforts on developing new techniques of enhanced oil recovery. Through these efforts we hope to bring back to life many abandoned wells that might be commercial. • Questions?