1. Field Demonstration of CO 2 Miscible Flooding in the Lansing-Kansas City Formation, Central Kansas Alan P. Byrnes (KGS, PM-BP1) Class II Revisited DE-AC26-00BC15124 Murfin Drilling Co. G. Paul Willhite (TORP, 2&3)

2. Central Kansas CO 2 Pilot Overview Producibility Problem Central Kansas Resource Target Project Overview Pilot Site Demonstration Site Characteristics Present Status Producibility Problem Central Kansas Resource Target Project Overview Pilot Site Demonstration Site Characteristics Present Status

3. Kansas Oil Production History 6.6 Billion Barrels to Date Kansas Geological Survey Gorham Oil Field –1928 (Walters, 1991)

4. Producibility Problems Primary producibility problem is that the reservoirs have been depleted by effective waterflood Require technology that can mobilize residual oil Uncertainty in effectiveness of CO 2 flooding process for central Kansas reservoir conditions No present economic supply of CO 2 to Central Kansas Primary producibility problem is that the reservoirs have been depleted by effective waterflood Require technology that can mobilize residual oil Uncertainty in effectiveness of CO 2 flooding process for central Kansas reservoir conditions No present economic supply of CO 2 to Central Kansas

5. Central Kansas Oil Production Kansas Total 6.6 Billion Central Kansas Uplift Total 2.4 Billion Kansas Total 6.6 Billion Central Kansas Uplift Total 2.4 Billion LKC Pilot Kansas Geological Survey

6. Purpose of Demonstration Determine the technical and economic feasibility of using CO 2 miscible flooding to recover residual and bypassed oil in LKC shallow shelf carbonates. Develop reservoir data for the LKC and Hall- Gurney for other floods Develop an understanding of operating costs and operating experience for CO 2 miscible flooding in Lansing-Kansas City reservoirs and central Kansas Prove up process and resource base to bring a pipeline in to central Kansas

7. General Demonstration Tasks Characterize the reservoir Model the flood using reservoir simulation Drill new injector for demonstration site Design and construct facilities, rework wells, and perform preliminary injection/connectivity tests Implement the planned flood (BP2) Monitor the flood process (BP2 & BP3) BP1

8. Comparison Summary of Project Costs Original10+ acre Total Project $5.40$4.42 CO2 Purchase & Transport$2.00$0.87 Research, Technology Transfer$1.50$1.70 Capital Costs (wells, etc.)$1.10$0.92 Operations$0.80$0.93 Funding Shell CO2 Company Inc.$1.63 Kinder-Morgan CO2 Company LP$0.25 US Energy Partners / ICM Inc.$0.38 MV Energy LLC$0.83 Murfin Drilling Partnership$0.90 U.S Department of Energy$1.89$1.70 University of Kansas$0.94$1.00 State of Kansas (KDOCH)$0.10$0.19 Costs (millions $)

9. Pilot Site Located in Largest LKC Field: Hall-Gurney 55 MMBO 19 MMBO

10. Evolution of Flood Pattern

11. 10+Acre Pattern 10+ acre, four-spot 1 CO 2 injector 3 Producers 2 Containment Water Injectors 0.29 BCF CO 2 injected-WAG 6 year operating life 28,000 BO estimated recovery 10+ acre, four-spot 1 CO 2 injector 3 Producers 2 Containment Water Injectors 0.29 BCF CO 2 injected-WAG 6 year operating life 28,000 BO estimated recovery Originally CO2 was being trucked 200 miles from Guymon,OK CO2 now being supplied by USEP ethanol plant only 7 miles away in Russell, KS

12. Colliver-Carter CO 2 Injection Well drilled October 2000 (view from the SE corner of the Colliver lease Colliver 13

13. Carter-Colliver #1 CO2 I Coring Conventional core in upper 2 feet (right) was successful. High-pressure core (above) was disaggregated in porous intervals

14. (Scholle & James, 1995) Modern Ooid Shoal, Great Bahama Banks LKC Oomoldic Limestone pervasive across KS Shelf and similar worldwide L-KC CO2 I #1 2903 ft Early pore cementation Ooid dissolution Crushing

15. Carter-Colliver #1 CO2 I 0 10 20 30 Neutron- Density Porosity % Neutron- Density Porosity % Gamma Ray Gamma Ray Lansing “A” “B” “C” “D” “E” Conventional Core 10’ Pressure Cores 807 441 RFT Pressures IPP 1BO + 50 BWPD, Nat Kansas Geological Survey

16. Water Saturations in Carter-Colliver CO2 I#1

17. Minimum Miscibility Pressure in Hall-Gurney LKC API = 37.5 o -38.4 o TORP

18. Demonstration Site Description Lansing-Kansas City “C” zone Oomoldic Limestone Depth – 2,900 feet Net thickness - 15 feet Porosity – 24-30% Permeability – 10-200 md Estimated residual oil saturation after waterflooding - >30% Initial Pressure - ~1250 psig Primary Drive - Solution Gas Lease location- –Colliver: E/2SW/4&SE/4 Sec 28-14S-13W 10+ acre, four-spot 1-injector, 3-producers, 2- containment injectors Estimated Lease Primary Recovery – 23% OOIP Estimated Lease Secondary Recovery – 27% OOIP Estimated Site CO 2 Recovery 23,000-36,000 BO

20. Model Characteristics 6 & 13 layer models (15 ft thick reservoir) Grid blocks : 110’x110’ block size Models : –Black oil for history match of primary & secondary production –Six pseudocomponent, fully compositional model for CO2 simulation Single initial average (pseudo-) water saturation for each layer Pseudo-relative permeability curves and capillary pressure curves for each layer

21. Reservoir Simulation of 10+acre CO2 Flood 182 days367 days762 days 1097 days3714 days Tertiary Oil Recovery Project Layer 2

22. Model-Predicted Production Range = 22,300-36,600 BO

23. CO2 Supply and Sequestration Multiple Goals Prove viability of process and extend pipeline from Guymon, OK to central KS Perform CO2 sequestration utilizing CO2 from ethanol plant and demonstrate linked- systems

24. Summary Kansas EOR potential using CO 2 flooding may exceed 200-500 MMBO – if potential proves up, the LKC and Arbuckle in central KS have sufficient resource to support a pipeline Partners in Lansing-Kansas City Demonstration Flood Murfin Drilling Company, Inc. Kinder-Morgan CO 2 Co. LP US Energy Partners LLC/ICM U.S. Department of Energy KGS and TORP, University of Kansas Kansas Department of Commerce & Housing Reservoir Characterization and Simulation are Complete New CO2 Injector– being prepared for initial water injection Producers (#12, #13, #16) being reworked CO2 being supplied from ethanol plant and in-kind contribution Initial CO 2 injection begins in 2 nd quarter 2003

25. www.kgs.ukans.edu /ERC/CO2Pilot Read more about it

26. Sunrise on CO2 flooding in Kansas