©2012 ZiLift Ltd. All Rights reserved. 1

7th European Gas Well Deliquification Conference

25-26 September 2012

Groningen, The Netherlands

Innovative powered artificial lift techniques

for Gas Well Deliquification,

by: Norman Liley

Contents

2

Producing from deep and deviated low energy gas wells

- Meeting Future Challenges

heavyLift – GWD (and heavy oil) capable ES-PCP

Product Development

Delivering the Solution

Summary

magLift – bottom drive rod pump

magLift and heavyLift are sponsored by major Oil & Gas operators

Meeting future challenges

Global population of gas wells - >600k

c.200k wells are deeper than 6000ft

c.450k in North America

Large proportion are in 2.375” tubing;

Liquid loading issues increase as a well matures;

When energy in the produced gas insufficient, liquids

can only be lifted to surface by applying external power;

There are a number of pumps for shallow wells;

Hundreds of new horizontal wells drilled each year;

Need for economic methods to produce deep and

deviated liquid loaded wells.

3

Aim: Lift liquids to maximise gas production 1

Greater access

− To fit within 4.5” tubing initially, 2.375 later

− For wells of 12,000ft

− Lift rate from 2 to 70BPD

− Deviated and horizontal wells

Reduced workover requirements

− Cable deployed, through tubing, or CT with concentric power

cable

Improved environmental footprint

− Reduced energy usage - permanent magnet motor (PMM)

− No dynamic seals on surface

4

Aim: Lift liquids to maximise gas production 2

5

Operation

− Fully variable pumping rates to respond to well conditions

− Integrated monitoring and control

− Tolerant to gas locking and solids

heavyLift – Gas Well Deliquification

capable ES-PCP

Derived from heavy oil capable product

Deployable on wireline cable or coiled tubing

3.75” BHA diameter

Scalable to meet head and flow requirements

6

Phased Solution Development

Feasibility Q2-4 2010

Concept Development Q4 2010 – Q3 2011

Proof of Concept Testing

Q2 2011 – Q1 2012

Downhole Solution Design

Q4 2011 – Q3 2012

0

10

20

30

40

50

60

70

80

90

100

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

Effi

cie

ncy

(%)

Active length (m)

gr=4.5:1

gr=5.5:1

gr=6.5:1

gr=7.5:1

gr=8.5:1

Maximum efficiency

@ gr=8.5:1

7

Feasibility and Concept Development:

Wide range of innovative

solutions considered

Technical risk profile generated

for each element (FMEA)

Analytical studies conducted

– Electromagnetic

– Rotordynamic

– Fluid dynamics

Modular sub-systems development

– Enabled independent testing

– Provides flexible system architecture

Motor Topology Concepts

Electromagnetic FEA Study

Rotordynamic Simulation

8

Proof of Concept Testing and

Downhole Solution Design:

Rigorous FMEA driven de-risking

Technology and sub-system level testing

Lessons learnt incorporated into downhole design

Contactless Transmission Testing on Dyno

Bearings and Seals Testing on Flow Loop

Failure Mode and Effects Analysis (FMEA)

9

Drives any PCP

3-inch motor and

transmission drive 6hp

Innovative permanent

magnet technology

heavyLift ES-PCP

PUP Joint

Star Point Sub

PM Motor

Contactless Transmission

Protector

Pump Discharge Sub

Field Coupling Sub

Flex Sub

Pump Handling Sub

PCP Muleshoe

10

heavyLift System

Example of a typical jointed tubing deployment

3.75” OD pump assembly

Deploys on coiled or jointed tubing

Typical flow rates up to 70BPD

Pressure rating up to 5,000psi

Variable PCP operating speed,

bi-directional up to 500 rpm

3 Phase 125Hz operation

Typical 415V, 12A downhole

Integrated with well management

and control systems

Set at any inclination through to

the horizontal

11

Sub-systems de-risked

2 prototypes manufactured

Rigorous qualification testing

Current Status

Inspection after Testing heavyLift on Flow Loop

12

Delivering the Solution

Lab Qualification Aug-Sep 2012

Field Trial Q4 2012

Design

Optimisation

Commercialisation

Field Qualification

13

Summary

heavyLift ES-PCP solution for GWD (and heavy oil)

Greater access

− Fits within 4.5” tubing initially, 2.375 later.

− For wells of 12,000ft with lift rate up to 70BPD

− Deviated and horizontal wells

Reduced workover requirements and OPEX cost

− Through-tubing wireline cable deployed, or CT

− Fewer (safer) operations

− Tolerant to gas locking and solids

Improved environmental footprint

− Reduced energy usage – PMM technology

− Reduced visual impact on surface

14

magLift – bottom drive rod pump for GWD

Thru-tubing gas well dewatering pump

For 2.375” production tubing

Installed on wireline cable, or CT with concentric power

cable

15

Downhole assembly Wireline

Cable

Cable connector

with Armour

Termination

Downhole pressure, temperature

and vibration monitoring module

Pressure Compensation

Linear Motor

Pump

Proven rod pumping technology

Direct drive by unique downhole linear PMM

Tolerant to gas locking and solids

16

1.8” O.D. <49ft (15metres) total length

(depending on pumping duty)

Linear motor and rod-pump

17

©2012 ZiLift Ltd. All Rights reserved.

t: +44 (0) 1224 227 227 e: info@zilift.com w: zilift.com

For more information

on your application:

Through-tubing solutions for GWD:

heavyLift – bottom drive ES-PCP system

magLift – bottom drive rod pump