Thermoflex ® Tubing

1. Thermoflex® Tubing Reinforced Thermoplastic Gathering, Disposal and Injection Lines Overview and Case Studies Arkansas Chapter of the Society of Petroleum Engineers March 11, 2009, Ft. Smith Arkansas

2. Why Use Thermoflex Tubing • Corrosion Resistance/ Hydrocarbon Resistance • Rapid Installation vs. Steel • Lighter Duty Equipment • Less Footprint on Surface • Paraffin or Scale Issues • Reduced Pressure Drop vs. Steel

3. Advantages of New Polymers • Polyethylene has been Available for Years. • Good to 60C Operating Temperatures • Paraffin Adheres to Polyethylene • Poor Permeation Properties • New Polymers with High Strength, Improved Corrosion Resistance, and Higher Temperature Performance Now Available • Multi-Layer Technology has Reduced the Costs of Liners for Severe Applications

4. New Engineered Plastics Provide Higher Temperature Strength Not Available From Polyethylene (PE) Fortron Capron PE

5. Liner Construction & Design • Multi-layer Design • Inner Layer for Corrosion Resistance, Low Permeation and Higher Temp Strength . . . Nylon and Fortron • Outer Layer for Higher Temperature Strength, Abrasion Resistance . . . Capron or PP • Fully Bonded • Applications to 250F Inner Barrier Outer Strength and Abrasion Layer

6. Reinforced Tubing Design and Construction • Multi-layer Design • Inner and Outer Barrier Layers • Center Layer Provides Higher Temperature Strength • Fiber reinforced with Kevlar for Strength, Tensile Load, and Burst • Tubing Strength P=(2*F*n)/D*L

7. Couplings and Terminations • Required for Each End of the Tubing • Threaded, Weld, & Flange Styles Available • Carbon or Duplex Stainless Steel • Joint less Unions

8. Coupling Requirements • Portable Coupling Machines • Up to 4.5” • For Termination and Union Couplings • 10,000PSI Hydraulic Pump

9. Design Strength vs. Short Term Burst Strength

10. Testing Standards • API 15S Developed a Composite Pipe/Tubing Specification • ASTM D1598 Best Standard for Reinforced Thermoplastics Tubing • ASTM D2292 Best Standard for Reinforced Thermosetting Tubing (Fiberglass) • Couplings are ANSI 600 Rated

11. Paraffin Testing No Evidence of Paraffin Adhesion On the Piping There is Adhesion to Unlined Metal Fittings

12. Delivery of Tubing • Comes in Spools • Length Dependent Upon OD and Pressure Rating • Spools can be Broken Down after Use

13. Downhole Applications • Velocity Strings • Submersible ESP Tubing • Injection Strings • Well Jetting Strings

14. Pressure Drop 1 3/4 Thermoflex Steel Thermoflex

15. Channeling the Gas • Small Diameter Tubes . . . No U-Tubing • Set Above Lowest Gas • Packer or Cone

16. Conventional Installation • 1.75” Velocity String for 2,591M Well • Weight 1,560Kg • Thermoflex inside of 2 3/8” Steel • Conventional Coil Tubing Unit

17. Reed A1 Performance

18. Low Cost Multi-Zone Case • Five Perforation Zones over 304M • Weekly Soaping and Blowing/ Monthly Swabbing • Where to Set the Tubing?

19. Results of Multi-zone Case

20. Utilizing Submersible Pumps off of Thermoflex Tubing • Increases Fluid Velocity to Lift Solids • Rapid/Low Cost Installation and Removal • Suitable for CBM • Resists CO2

21. Injection Applications • Gas Injection • Chemical/ Fluid Injection • Banded to Tubing or Free Hanging • Submersible Production Applications

22. Well Jetting • 1.75” String to Jet 4.5” Casing • 200PSI Injection Pressure • Insertion Rate of 20ft/min • Depths to 7,000ft • 3 Per Day

23. Surface Applications • Gathering Lines • Disposal Lines • Injection Lines • Water • CO2/Water • Rehabilitation of Steel Lines

24. Methods of Installation • Direct Bury • Continuous Plowing • Trenching • Pulled Through Existing Steel Pipe • Sizing Dependent Upon Restrictions in Steel • Pig with wire line and pull pipe

25. Direct Bury • Plow, Continuous or Backhoe Trenching • Pre-trenched ditches = 2 Km per Hour • Pull Pipe off Stationary Spools • Savings: $5-6/ft Installed vs. Steel

26. Brine Disposal Line • 4.5” Thermoflex, 500PSI & 750PSI • 10ft. Spools for Shipping • Unwind or Drag Off • 50,000ft in Three Weeks

27. Installation Through Hills • Pull from Top to Bottom if Possible • No Special Backfilling Requirements • Tamping or Compaction a Function of Soil Conditions

28. Inserting In Steel Pipe • Pig Cable Through • Pull Pipe Back Through • Tensile Load Based Upon Drag • Capable of Multiple Kilometer Pulls

29. Pull Through Steel Pipe • Pull with Coupling or with Bolts • Pull Strength Varies by Longitudinal Braids • Polyflow Models Pulls

30. Pulling Thermoflex Through • 2 3/8” in 3” ID Steel • Do not Recommend Pulling through Elbows • Pull Speed 100ft/min

31. Offshore Rehabilitation • Pull 3.5” Through 8” Flexible Steel Line for 6,000ft • Single Pull Platform to Platform • 90% Cost Savings vs.Replacment

32. Double Walled System • Pull Thermoflex Through Carbon Steel • Flanged Terminations • Fill Annulus with Packer Fluid/ Inert Fluid • Monitor Pressure on the Annulus

33. Single or Multi-phase flow Comparison to Steel Smaller Diameter for Equal Pressure Drop Less Effects Due to Continuous Runs Modeling Gathering Lines 2 3/8” Steel Thermoflex

34. So Why Use Thermoflex? • Low Cost Rapid Installation • Corrosion Resistance • Reduced Pressure drop vs. Steel • Low Cost Rehabilitation of Existing Lines