Moving Permian Basin Technology to the Gulf Coast: The Distribution of CO 2 EOR Potential in Gulf Coast Reservoirs

1. Development of a CO2 Market in the Gulf Coast Moving Permian Basin Technology to the Gulf Coast:The Distribution of CO2 EOR Potential in Gulf Coast Reservoirs Mark H. Holtz, Vanessa Núñez López, and Caroline L. Breton, Derik Woods, Shrivatsan Lakashminisharihan

2. Bureau of Economic Geology Outline • Technical inputs for market study • Residual oil saturation “is there a target” • CO2 EOR Recovery “ can we get it” • Summary of published literature • BEG simulation studies, Dimensionless quick look screening model and full 3D • Delineating the market • Development database • Devised a screening scheme • Determined algorithms for calculating EOR resource potential and CO2 Storage • Market development: • First contact with Gulf Coast oil operators • Summary

3. Residency of CO2 in an EOR Flood CO2 dissolved in produced oil CO2 as separate residual phase Rock Grain CO2 dissolved in residual oil CO2 Rock Grain Rock Grain CO2 dissolved in water

4. Formation of Residual Saturation • Moore and Slobod, 1956 • Pore Doublet model Capillary force holds nonwetting phase in larger pore

5. Formation of Residual Saturation • Oh and Slattery, 1976 • Snap-off model Pore radius Aspect ratio = Pore throat radius Capillary force cause nonwetting phase to snap-off into pore

6. Bureau of Economic Geology Reported Residual Oil Saturation in Gulf Coast CO2 EOR Pilots

7. Bureau of Economic Geology 1 0.8 0.6 0.4 0.2 0 0 0.1 0.2 0.3 0.4 0.5 0.6 Development of a Non-wetting Phase Saturation Prediction Method Gas Residual saturation to water (fraction) Frio Barrier bar N = 143 Log. (Gas Residual saturation to water (fraction)) Frio (Port Neches field) Residual non-wetting phase saturation (fraction) y = -0.3136Ln(x) - 0.1334 2 R = 0.8536 Porosity (fraction)

8. Bureau of Economic Geology Recovery Efficiencies of Gulf Coast Sandstone CO2 EOR Pilots

9. Bureau of Economic Geology Outline • Technical inputs for market study • Residual oil saturation “is there a target” • CO2 EOR Recovery “ can we get it” • Summary of published literature • BEG simulation studies, Dimensionless quick look screening model and full 3D • Delineating the market • Development database • Devised a screening scheme • Determined algorithms for calculating EOR resource potential and CO2 Storage • Market development: • First contact with Gulf Coast oil operators • Summary

10. Bureau of Economic Geology GCCC Simulation Studies Quick Look Dimensionless Recovery Model GEM Simulator – 2D model Innovative method for increasing reliability of CO2 usage and CO2 EOR volumetrics honoring reservoir data Derek Woods, GCCC student and Dr. Larry Lake, UT PE

11. Bureau of Economic Geology Simulation Groups from Varying Reservoir Parameters

12. Bureau of Economic Geology Simulation Results Predict Oil Recovery per Volume CO2 Injected Pore volumes of CO2 injected,

13. Bureau of Economic Geology GCCC Reservoir Simulation • Gillock Frio example • Frio barrier strandplain sandstone, strucuraly complex • Research questions • how much CO2 for a two well test?  What is the total volume recoverable and CO2 use for this field?

14. Bureau of Economic Geology Outline • Technical inputs for market study • Residual oil saturation “is there a target” • CO2 EOR Recovery “ can we get it” • Summary of published literature • BEG simulation studies, Dimensionless quick look screening model and full 3D • Delineating the market • Development database • Devised a screening scheme • Determined algorithms for calculating EOR resource potential and CO2 Storage • Market development: • First contact with Gulf Coast oil operators • Summary

15. Bureau of Economic Geology MethodologyData Development • Sources of Data Texas: Atlas of Major Texas Oil Reservoirs, Atlas of Major Texas Gas Reservoirs, Railroad Commission of Texas, others Louisiana : TORIS database, Louisiana Geological Survey Alabama and Mississippi : Alabama Geologic Survey as a part of SECARB

16. Geologic Province & Sub Province Bureau of Economic Geology Geologic Stratigraphy Depositional System Postdepositional diagenesis Tectonic overprint Postdepositional Physochemical Events Hydrocarbon & Drive Type Lithology Trap Type Geologic Play Decision Flow Path for Play Determination

17. Oil-reservoir database Cumulative production > 1 MMSTB Yes No Bureau of Economic Geology Rejected Yes Minimum miscibility pressure (depth, temp., pressure, oil character) Yes No Rejected Unknown Yes Reservoir depth > 6000 ft No Candidate for secondary recovery Yes No Has reservoir been waterflooded? Yes No Does reservoir have water- drive mechanism? Candidate reservoirs Yes Rejected Methodology DECISION TREE FOR SCREENING CANDIDATE RESERVOIRS

18. Screening Oil Reservoirs: Determine the Miscible CO2 EOR Candidates Bureau of Economic Geology

19. Bureau of Economic Geology Areas with Miscible CO2 EOR Potential

20. Bureau of Economic Geology Miscible CO2 EOR Resource Potential in the Gulf Coast By State

21. Bureau of Economic Geology CO2 Sequestration Capacity in Miscible Oil Reservoirs along the Gulf Coast

22. Bureau of Economic Geology Oil Price Quality Correction • West Texas Intermediate price used as a basis for comparison for Gulf Coast oil prices • Data Base contains 5 years of monthly data with WTI prices, API gravities, and Gulf Coast operators oil prices • Developed algorithm to calculate the oil price per reservoir in our database as a funtion of WTI and API

23. Bureau of Economic Geology Outline • Technical inputs for market study • Residual oil saturation “is there a target” • CO2 EOR Recovery “ can we get it” • Summary of published literature • BEG simulation studies, Dimensionless quick look screening model and full 3D • Delineating the market • Development database • Devised a screening scheme • Determined algorithms for calculating EOR resource potential and CO2 Storage • Market development: • First contact with Gulf Coast oil operators • Summary

24. Bureau of Economic Geology Market Development; Operator Contact • WTGS presentation: Moving Permian Basin Technology to the Gulf Coast: the Geologic Distribution of CO2 EOR Potential in Gulf Coast Reservoirs • Phone calls and email • Site visits • Seminar: Reserve Growth Potential from CO2 Enhanced Oil Recovery Along the Gulf Coast • Emailed to PTTC contact list • Flyers handed out at SPE Galveston and Midland CO2 conferences • Posted on PTTC and BEG web sites

25. Over 40 participants • 34 companies

26. Bureau of Economic Geology Summary • Technical innovations have been developed • A large potential for reserve growth lies along the Gulf Coast through the application of CO2 miscible enhanced oil recovery. • Results indicate that there is the potential for approximately 4.7 BSTB of addition oil reserves. • Texas contains the greatest oil CO2 EOR potential with a target of over 3 BSTB. • The largest resource lies in Frio Formation; • Barrier/Strandplain Sandstones, • Frio Fluvial/Deltaic Sandstones, • Frio Deep-Seated Salt Domes • Numerous operators believe CO2 EOR could add reserves to their Gulf Coast assets.