1. EGLV – ELECTRIC GAS LIFT VALVE (Field Trial at S181) - THE OPERATOR’S PERSPECTIVE

2. Keywords  Cable-less.  Electrically actuated.  Variable lift gas rate.  Remote monitoring and control.  Wireline/Slickline-less.

3. EGLV’s Field Trial at S181 - Background  Installed in Dec’ 2002 with 2 pods.  Bottom pod failed in Apr’ 2003. Top pod remain operational. operational.  Reason of failure – communication modem.  Workover completed in Jul’ 2003. 3 pods were installed. installed.

4. Gas Lift Optimization Cycle - Conventional Takes 2 to 4 months (resource-dependent) to realize optimization opportunities if wireline entry is involved Gather Data - FTS - Well tests - others Gas Lift Redesign - Optimum Injection Depth - Optimum Lift Gas Rate Wireline entry Surface GL control - optimize set point Q vs. I CalibrateWinGLUEmodel

5. EGLV ‘s Graphical User Interface - Wonderware TRENDING – PARAMETERS vs.TIME EGLV - UNLOADING EGLV - ORIFICE EGLV CONTROL

6. S181 – Successfully unloaded using Wonderware Tubing press at unloading depth (POD 2) Tubing press at orifice depth (POD 1) Annulus press at orifice depth (POD 1) % valve open at orifice depth (POD 1)

7. S181 – Gas lift optimization Gas lift flow Tubing press at orifice depth (POD 1) Tubing press at unloading depth (POD 2) Gas Lift has no benefit

8. S181 – Gas Lift Optimization EGLV uses FBHP vs. gaslift rate instead of Oil Rate vs. gaslift rate % open/gaslift rate FBHP % open/gaslift rate OIL RATE 

9. Gas Lift Optimization Cycle - EGLV Gather Data - FTS - Well tests - others Gas Lift Redesign - Optimum Injection Depth - Optimum Lift Gas Rate Wireline entry EGLV control - optimize % valve open Q vs. I CalibrateWinGLUEmodel      Near instantaneous optimization of a gas lifted well !!

10. Other implications to the gas-lift operator  Multi-point injection may be a thing of the past.  Injection pressure is utilized to the maximum.  A wide range of lift gas rate is at the operator’s disposal.  High well deviation is not a factor in spacing of mandrels.

11. In the pipeline  Refine GUI to facilitate monitoring and optimization  Develop a control algorithm to optimize a EGLV well automatically (synergy with the Production Universe team). automatically (synergy with the Production Universe team).

12. BACK-UP SLIDES

13. How does an EGLV work ? Electro-magnetic principle Bi-directional Communication up/down casing Using gas filled annulus for electrical isolation P/T based on strain gauges VMonitor link to office VMonitor S-181 ~ 2 upper pods with "unloading valve" lower pod with "variable orifice" electrical choke

14. EGLV completion equipment

16. S181 Well Schematic