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Gold/Mining/Energy : Bearcat (BEA-C) & Stampede (STF-C) -- Ignore unavailable to you. Want to Upgrade?

To: timester who wrote (2280)	4/11/2002 11:15:40 AM
From: timester	Read Replies (1) \| Respond to of 2306

This is a repost from SH by r21140. It answers my question pretty well. April 10, 2002 There has been considerable speculation as to the progress at the 2-34 since last Friday, and some confusion regarding the short-term goals there, as well as the meaning of the terminology that has been employed to describe the activities to date. The primary concern, and source of confusion for some, has been the presence of water in the reservoir at the 2-34. There are some important distinctions to be made regarding both the source and the implications of this water, as the formation water that underlies the oil in this (and most) reservoir can be an insurmountable problem if the level at which it is deposited is breached. There is a relatively simple test that is used to determine if water from a well is coming from the formation. The formation water below the 2-34 is a remnant of the ancient Inland Sea that once covered most of the prairies east of the Rocky Mountains. Like other seas, this water has a very specific saline (NaCl) content, as well as other mineral salts, that readily identify and distinguish it from the water that is injected into the well during various phases of the drilling and completion operations. The water that is introduced into the formation by the operator during these procedures is called load water, to distinguish it from the seawater of the formation. As water is recovered from any well, especially in the early stages, it is frequently tested for salinity so that there is no mistake regarding its origin, as the recovery of formation water invariably leads to a worsening problem. This outcome generally involves either abandoning the well or, at best, sealing off the source of the formation water if possible. Plainly speaking, formation water is the kiss of death for many wells, as it was for the well drilled in 1943 at the same location and target depth as the 2-34. Given these concerns, the recovered water at the 2-34 has been tested very frequently over the course of an admittedly long completion and test phase, as well as the during the production period since last Friday when water was again being recovered along with the oil. The results of these tests have been clear. All the water that has been recovered from the 2-34 has been, and is now, load water. Over the last year it has become apparent that the well logs covering operations at this well do not reflect all the activities using injected water that were carried out, resulting both in conflict with certain parties and ambiguity as to the actual amount of load water still to be recovered. This brings us to the focus of the current pumping operation at the 2-34. The object of the current procedure is to maximize the recovery of the load water and the remaining calcium carbonate pill. In practice, this means that the pump speed is governed by how it contributes to this goal. The maximum uptake of load water and calcium carbonate is being achieved with the pump operating at 50-60% of the design capacity, and not at full speed as you might expect. This goal of removing the load water and calcium will continue to govern the pace of operations until it is plain that the load water and calcium carbonate have effectively been removed. When load water was first recovered last Friday, after several hours of flowing 100% oil at a rate in excess of that predicted by the company geologist and President, Jack McLeod, the percentage of load water vs. oil was 100% load water - 0% oil. Since that time the average ratio has shifted significantly, to the current 50% load water and 50% oil. In contrast to this progress, the water cut at wells that produce formation water do not decrease, they invariably get worse as time goes by. There has been some speculation in certain quarters that the operator, Devon Petroleum, is unhappy with the results to date. Devon has assigned a very able and experienced engineer to supervise operations at the 2-34. He is very satisfied with both the pace of operations and the results to date, and has indicated to the company that there is every reason to expect the 2-34 to become a successful producing well at the rates Mr. McLeod has predicted. That the pressure readings at the bottom of the well have been completely stable through all the changes of rate, and the nature of the recovered gas and fluids, further supports this view. Inevitably some readers will want a prediction as to when the 2-34 will begin producing oil and gas at the predicted rate, rather than pump a mix of oil, load water and calcium carbonate slurry at 100-120bpd (barrels per day). The only reasonable response at this time is that the technical fundamentals remain sound and the trend points to resolution in the short, rather than long, term