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OVERCOMING CHALLENGES WITH E&P TECHNOLOGY MIKE BAHORICH 29 JAN 2014

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OVERCOMING CHALLENGES THROUGH TECHNOLOGY 2 Australia Seismic Fracwater treatment Natural Gas Fuel

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3 Half of seismic boats now use technology Other half has not figured this out yet Savings to industry should be about $500MM/year Apache patented invention APACHE FZB PATENT SAVING $250MM/YR

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IT STARTED WITH THIS 4

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5 STEERABLE STREAMER SYSTEMS

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6 FANNING EVERY LINE REDUCES POTENTIAL INFILL

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7 CONVENTIONAL

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8 BROADBAND

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APA WORLDS FIRST SIM SOURCE ACQUISITION SimSource Conventional 75m 6000m 18.75m 37.5m

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CONVENTIONAL

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SIM SOURCE

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12 AUTONOMOUS NODES THE FUTURE ? WesternGeco Liquid Robotics WaveGlider

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FRESH < 1000 ppm TDS TDS = Total Dissolved Solids mg/liter =Salinity Usually shallow Not necessarily drinking water BRACKISH >1000 -5000 even 10,000 ppm SALINE > 10, 000 ppm PRODUCED from Oil & Gas wells, may have hydrocarbons Often 60,000 to > 100,000 ppm Sea water ~ 35,000 TDS Regulated surface handling and disposal WATER TYPES Treatment and Value 14 FRESH BRACKISH SALINE PRODUCED

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Low quality water works FRAC CHEMISTRY -- DICTATES WATER QUALITY 15 Metal Cations Gels Friction Reducer X-Linker Synthetic Polymers

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Chemical Reactions pH change Precipitation Scaling Colloid interactions Reactive Components Iron (Fe) H2S Suspended solids Barium, Magnesium, Calcite etc. Biocide WATER TYPES: Mixing Challenges 16

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1. Chemicals 2. Ozone oxidation 3. Nano-filtration 4. Hydrocyclones 5. Deionization 6. UV MVR Evaporator, RO, ECand many more NEED BASED TREATMENT 17 3 3 2 2 1 1 4 4 5 5 6 6

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PERMIAN BASIN ALTERNATIVE WATER SOURCES CAPITAN REEF Permian Carbonate Dolomite Up to 900 feet thick Fresh at surface 50K TDS deep High flow rate ~10,000 BWPD Irion County >2500 ft SANTA ROSA Triassic sandstone 0 to 300 feet thick Typically 50+ Up to 2400 feet deep Flow rate ~1500 to 2500 BWPD 2 wells/section TDS up to 100K