April 18, 2011

Today Scott Kiser provided an update on production from its recently installed hydraulically driven progressive cavity pump system. With our driver and an industry standard progressive cavity pump landed on FlatPak in the heels of two cold heavy oil wells in Lloydminster, we are hydraulically lifting heavy oil to surface with plenty of system horsepower to spare" reports Kiser.

We installed these systems in two Lloydminster CHOPS wells this past February and commenced production from both wells on February 25^th, 2011. The wells quickly stabilized with oil production from the first well optimized at around 4.0 M3/d and the second well approximating 7 M3/d. These wells produce less than 1% sand and the oil samples would suggest about 20,000 centipoise. Both wells produce fairly clean oil up the 1.75" CT production tube incorporated in the HSPCP umbilical. We are injecting a water based VR 1100 chemical from Champion Technologies through the 0.25" capillary line included in the umbilical which helps to reduce discharge pressures with this viscous oil. Alternatively the operator could tie in the on-site production tank and use the produced water to inject which would also reduce discharge pressures or they may choose to batch chemical down the casing annulus. We have also incorporated a single conductor wire and digital down-hole sensors into the system enabling us to monitor down-hole pressure and temperature at the pump intake and discharge. This permits the operator to optimize fluid drawdown from the well without pumping the well off.

These wells contain 9 5/8" casings with 7.0” liners easily accommodating our 4.0" driver with the 1.75" CT production tube along side the driver. Dual 1.0’ CT's have been incorporated in the FlatPak which are used to complete the hydraulic circuit. Any conventional hydraulic drive unit currently powering a typical rotary drive head can be used to provide fluid to power our down-hole hydraulic driver. We have completed extensive testing of our system on our test bench offering us data used in concert with the surface flow meter and pressure gauges to calculate torque. We estimate that the two systems currently deployed require under 200 foot pounds of torque with the driver capable of delivering about 700 foot lbs on a continuous basis.

“In summary”, says Kiser, “We are hydraulically lifting a typical Lloydminster volume of very heavy oil up a 1.5” ID tubular from 85 degrees in the heel of horizontal wells!” We are monitoring pressure and temperature with the digital sensors and surface recorders so that we can optimize production without pump off. The in-system capillary tube enables the operator to inject friction reducers, de-waxing, descaling or sand suspension chemicals as he sees fit" explains Kiser. “With almost two months of production time on the system we on onto something extremely beneficial to industry, particularly when trying to pump oil and/or water from the heel of horizontal wells or fluid from slant wells!” concludes Kiser.

Kiser continued “We are now designing the second generation of our HSPCP system that will get us into smaller casing environments. In addition we have designed a thru-tubing solution should the operator find this beneficial. “

CJS Coiled Tubing Supply Ltd. is a privately owned company with offices in Lloydminster and Calgary Alberta. For more information please email scott@cjsflatpak.ca.