this presentation will cover the effective solvent...

| 0 Harris Proprietary Information

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The ESEIEH (Easy) Project: An innovative R&D

partnership

• This presentation will cover the Effective Solvent Extraction (System)

Incorporating Electromagnetic Heating (ESEIEH) consortium

• High level introduction to ESEIEH Project

• Introduce Harris

• Early Approach (how we came to the industry)

• Progress (Pipeline)

• Introduce Partnership & Government Funding thru the Climate Change and

Emissions Management Corporation (CCEMC)

• Agreements & Commercialization

• Developed a new culture based on organizational strengths

• Lots of Challenges

• Current Design & Project Status

• Lessons Learned


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What is ESEIEH and how it compares to SAGD

process

RF Energy

Current SAGD ESEIEH Process

~240° C

Vapor

Mobile Bitumen

~60° C

Transmitter powers High efficiency

coupling antenna

Antenna induces Electro-

Magnetic Energy-heats oil sand

Large amount of steam

(capital) infrastructure

High temperature & pressure steam extraction Low temperature & pressure vapor extraction

VS

Solvent


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ESEIEH awarded CCEMC’s first year $33M flagship

project with partners in Alberta

ESEIEH CCEMC Project Background

• Now $50M+ project developing key

technologies needed for a reliable in situ

RF heating system

• Key CAPEX savings: no steam plant

• Key OPEX savings: solvents use reduces

energy requirements

Solvent + RF Advantage

Low Temperature

Reduces GHG

Reduced CO2 Emission Penalties

Reduces Fuel Costs

Reduced OPEX

No Steam

No Water Treatment

Reduced CAPEX/

OPEX

No Steam Plant

Reduced CAPEX

ESEIEH Status

Phase 1: January 2012 – successful

completion of 12.5m horizontal heating

experiment at Suncor mine.

Phase 2: CURRENT – ESEIEH process

testing 150m deep 100m lateral

horizontal RF heater and solvent injector

Startup in Early 2015

Canadian Partners

Current ESEIEH Consortium


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ESEIEH: High level description

• Project:

– Cross border collaboration

– Hundreds of people

– Thousands of technical documents

– Terra-bytes of data

– Advanced technologies and new inventions

– Tens of millions of $

– Various approval processes

– Very different cultures

– Nearly five years of progress

– How has team been able to get things done?

• Through Formal and Informal processes


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Who is Harris Corporation?

• International communications and

information technology company

headquartered in Melbourne, Florida

serving government and commercial

markets

– Publicly listed on NYSE (ticker: HRS)

– Approximately $5 billion annual revenue

– About 14,000 employees located in 50

countries around the world (Canada)

• Significant intellectual property and

technology portfolio

– Workforce includes 6,000 engineers and

scientists


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Key technologies applied to radio frequency heating

and oil and gas opportunities (how we got started)

Microelectronics

• Electronics Packaging

• Thermal Analysis

Mechanical Design and Analysis

• Proven Mission Critical Reliability

• Precision Mechanism Design

• Analysis for Harsh Environments

Image Processing

Systems Engineering

• Product Development

• System Optimization

• Integration and Test

Antennas

• Phased Arrays

• Multi-band Reflector Feeds

• Unfurlable Mesh Antennas

RF & Microwave

• Converters/Synthesizers

• Multiband RF Frontends for SDR

• Phased Array Antenna Electronics

Robotic Systems

• Custom Remote Control Systems

• Haptic Feedback Control

Network Systems

• Secure Mission Critical Networks

• NetOPs and Network Management

• Ad Hoc Tactical Networks

Mobile Computing Photonics

Vision: To leverage Harris core technology (Radio Frequency and Antennas) into thermal

oil recovery opportunities. . .


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How the team formed and where we are

2/2008 Initial

Brainstorming

10/2008 First

Meetings ARC

2/2009 Initial

Patents 9/2009 First

Study AERI

2/2010 Reservoir

Environment Lab Testing

1/2011 CCEMC

Start

1/2012 Successful Mine Face

Test

6/2010 CCEMC Project

Award

2/2012 Oil Quality

Study

Original CCEMC ESEIEH Consortium

1/2014 Devon Energy Joins ESEIEH

2/2015 ESEIEH Test

Startup (100M)

Neil Edmunds

Mauro Cimolai

Dr. Eddie Isaacs Dave Cutheil

Cal Coulter

Tim Martindale

Michael Tims

Cameron Plewes

Province of Alberta and Industry

Partners have Helped Harris Along the

~Five Year ESEIEH Journey

https://www.google.com/url?url=https://www.petersco.com/&rct=j&frm=1&q=&esrc=s&sa=U&ei=J89TVJTWBIuggwSkyoH4Bg&ved=0CBYQ9QEwAA&usg=AFQjCNFDK7EePTKapl4RwRkuyWXt6wR8IQ


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Industry partnership is responsible for the ESEIEH

process and project

• “The technology is amazing but there’s no getting into

the oil business without industry partners”

• Harris developed advocates in industry and trust with

producer partners, resulting in the ESEIEH process

– RF + Solvents = Harris Expertise + Industry Expertise


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Team then needed to establish project governance

and organizational structure

Key documents that guide the project

•Joint Development Agreement (JDA)

•Defines legal agreements

•Who pays for what

•IP terms and who files patents

•How do we protect each other

•Commercialization Agreement

•What happens after the test

•What do we get for our investment in the future

•Charter Document

•Defines roles and responsibilities

•Contribution Agreement (CCEMC)

Randy Cormier MC

Bill MacFarlane TC

Gary Bunio MC

Mark Bohm MC

Bill Rideout TC

Jason Hope TC

Matt Fallen MC

Chris Patterson TC

Brian Blakey MC

Derik Ehresman TC

George Taylor TC

Les Little MC

Bruce Duong TC

Eric Newell


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ESEIEH Team is established

• How do you work together?

– Three Industry partner working together on a project is often challenging

enough. The ESEIEH project adds:

• A US technology provider with its own culture

• A new Alberta organization CCEMC

– Formal: Create JDA emphasizing a structure for efficient decision

making, minimized risk, maximum insight into technical progress with a

democratic process to develop and execute plans

– Informal: Create an environment where individual relationships help

provide a conduit to communicate each company’s needs and

perspectives


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The key to success is using team strengths and

shoring up weaknesses

• Harris strength is solving hard problems through technology and providing solutions

(developers) to US Government with purchase order

• Industry strength is problem identification, production and operations (deployers) They do not typically develop technology

• Producers invest billions in land and capital then try (risk) to recover O&G

• Technology Innovation in a ‘joint venture’ framework; must break the client/vendor

mold (“We Are Partners”) ; shared risk & reward (JDA)

| 13Harris Proprietary Information| |

FEL Process Mapped to Harris Design

Process

Harris

Process

Based on

Military

Standard

Design

process

31-Oct-14

System

Requirements

SRR DCR PDR CDR

System

Design

Preliminary

DesignDetail Design

Fabricate &

Assemble

Integrate and

Test

TRR

Test Readiness

Review

FEL-3FEL-0 FEL -1 Execute & Operate

Critical Design

Review

Preliminary

Design Review

Design Concept

Review

System

Requirements

Review*

FEL = Front

End

Loading

FEL -2

SDR

System Design

Review

Cold Eye Review Committee at each review

• Blended approach to project

management & execution; hard

enough to get 3 industry players to

agree (FEL, SPIM, DOD)

• Rapid technology development (bench

scale, full scale, field scale)

• Challenge is ‘risk tolerance’ of various

organizations


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Project execution follows JDA and charter

document but teamwork is essential

• Project Execution

– Working level progress has been made by the individual IPTs

– Some IPTs are led by industry -- Examples

• Surface Facilities

• Subsurface GeoMechanical Modeling

– Some IPTs are led by Harris -- Examples

• Subsurface components

• RF modeling

• The ESEIEH consortium lives by the rules established in the JDA

but does not rely on attorneys to run the project.

– The team has an environment where respect, individual trust and

candor have been key in dealing with difficult issues

– Ability to work well together has been demonstrated


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Working in a new industry has a learning curve and

takes cooperation

• Examples of “getting things done”

• Managing to technical milestones were well known by Harris

• Industry administrative milestones were unfamiliar

– DBMs, FELs, P&IDs, HazOp, ABSA, CSA, D-23, D-51, Wood Buffalo

Occupancy Codes, APIs, IC on-and-on

– Harris did not know any of these acronyms when the project started.

(We do now)

– Partner assistance and back and forth understanding

– Example: Industry FELs vs. Harris Development Cycle

• Putting requirements into a common language, even though there

isn’t a direct correlation, greatly aids success


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Team created a link between antenna and stars to

model reservoir performance

CEMRS Iterative Coupling

Reservoir Model

Electromagnetic

Heat Map (W/m3)

Electromagnetic

Model

Recovery Process & Optimization

Proprietary coupled electromagnetic/reservoir models predict performance

Model validation through pilot is key to technology success

Electrical

Properties

Oil Saturation (Month)

(1)

(3)

(6)

(9)

(12)


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ESEIEH Project current design description (system

process view)

RF Heating

Process

Solvent Injection

and Recovery

Process

Injector

Producer

RF Transmission

Fluid Circulation

Nitrogen

Solvent

Objective: To validation coupled physics in porous media

(numerical model predictions); mine face; bold approach

in absence of lab scale physical testing


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Harris technology development uses O&G stage-gated

process with differing names

Florida Test Facility - 2011 CCEMC Phase I Mine-face - 2012

CCEMC Phase II Isolator Insertion into Well - 2014 Rig Handling Test - 2013


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100M Drilling/completions: antenna liner and tool

ANTENNA LINER

EMH TOOL

Slant Drilling Rig

Slant Completions Rig

ANTENNA

is the Liner

EMH TOOL EMH Tool Head

Choke Assembly

Subsurface Tx Line


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Lessons Learned

• Must establish a strong business case for your technology

– Not just green for the environment but green from OPEX and CAPEX

• Need to have broad support across the Industry, Financial Institutions, Technologist,

Government Organizations, First Nations, etc.

– Relationships are Key

• Define all requirements up front on the project

– Safety, Regulatory, Performance, Roles and Responsibilities, etc.

– Incremental Discovery on both sides is costly

• Get all stakeholders involved up front in the project

– Safety, Business Units, Facilities Construction, Operations, Drilling and Completions, Quality, etc.

– Prevents conflict as the project advances

• All parties must have a passion for success and the technology

– Must have Champion from each Company in Management (MC) and Technology (TC) with Face-to-

Face communication

• Team up with a good Alberta based EPC firm early in the project


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Thank You

Derik Ehresman Manager Field Operations/ Canadian Operations

Harris Corporation | Energy Solutions

http://harris.com/rfheating

[email protected]

http://harris.com/rfheating

mailto:[email protected]


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Team Must Develop a Common Terminology and

Processes • Front End Loading (FEL)

– FEL-0

• “Identify and Frame Opportunity”

• Harris’ Business Acquisition Phase

• Identify – TRA

• Pursuit – TBR (Prelim)

• Proposal – TBR (Final) and PCR (Cost and Business Case)

• End of FEL-0: EDP (draft), CONOPS (draft) and TRL Maturation Plan

– FEL-1

• “Appraise Project & Select Concept”

• Early FEL-1, resembles Harris’ System Requirements Phase

• Mid FEL-1 phase, hold SDR and SRR

• Mid FEL-1 to end, resembles Harris’ System Design

• End of FEL-1, hold DCR and SSR

– FEL-2

• “Optimize Concept”

• Harris’ Preliminary Design Phase

• End of FEL-2, hold PDR

– FEL-3

• “Define Requirements & Finalize Plans”

• Harris’ Detailed Design Phase

• End of FEL-3, hold CDR

– EXECUTION

• “Execute and Operate”

• Fabrication/Integration (TRR), Verification (System Test), Production (PRR & Systems Test), Field

Support, Retirement

The “Front-End”

Abreviations (in order): TRA – Technology Readiness Assessment

TBR – Technical Baseline Review

PCR – Preliminary Cost Review

EDP – Engineering Development Plan

CONOPS – Concept of Operations

TRL – Technology Readiness Level

SSR – System Safety Review

DCR – Design Concept Review

SRR – Systems Requirements Review

SDR – System Design Review

PDR – Preliminary Design Review

CDR – Critical Design Review

TRR – Test Readiness Review

PRR – Production Readiness Review


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FEL Process Mapped to Harris Design Process

Harris

Process

Based on

Military

Standard

Design

process

System

Requirements

SRR DCR PDR CDR

System Design Preliminary

Design Detail Design

Fabricate &

Assemble

Integrate and

Test

TRR

Test Readiness

Review

FEL-3 FEL-0 FEL -1 Execute & Operate

Critical Design

Review

Preliminary

Design Review

Design Concept

Review

System

Requirements

Review*

FEL = Front

End

Loading

FEL -2

SDR

System Design

Review

Cold Eye Review Committee at each review

this presentation will cover the effective solvent...

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