1. Gulf Coast Stacked Storage SECARB Phase II Test #1 Susan Hovorka, Tip Meckel, F. Wang, H. Zeng, J. Paine, JP Nicot Gulf Coast Carbon Center Bureau of Economic Geology The University of Texas at Austin SECARB Stakeholders’ Meeting Atlanta GA March 18-19, 2008

2. Bureau of Economic Geology, Jackson School of Geosciences, UT-Austin Denbury Resources Schlumberger CO2 Southern Company Mississippi State University University of Mississippi GCCC Team: Sue Hovorka, Tip Meckel, Fred Wang, Hongliu Zeng, Jeff Paine, J. P. Nicot, Partners

3. Proven hydrocarbon seals Cranfield Source of large volumes of CO 2 via existing pipelines TX MS AL FL LA Geographic Focus of SECARB Program Sabine Uplift Plant Daniel OK AR DRI pipelines Mississippi Interior Salt Basin Province

4. Miss. River NATCHEZ LAMS I-55 AdamsFranklin Hurricane Lake Brookhaven Cranfield Unit operated by Denbury Resources Mallalieu Non-Tusc Fields US 84 DRI pipeline

5. 29-12INJ OBS Well < 7,000 ft Structure contour top Tuscaloosa sand Unitizedboundary

6. Well 29-12: New Injector Average H: 283 md V: 47 md Average H: 20.5 % V: 20.7 % INJECTION ZONE

8. 10-3/4" casing set @ 1,825' 16" casing set @ 222' 13-Chrome Isolation packer w/ feed throughs 13-Chrome Selective seat nipple Side Pocket Mandrel w/dummy gas valvePressure transducer 1/4" tubing installed between packers to Provide a conduit btwn isolation packers 13-Chrome Production packer w/ feed thrus 13-Chrome No Go seat nipple Tuscalusa perforation 7" casing set @ 10,305' Proposed Monitoring Zone 3-1/2" 10.2 ppf 13 Chrome tubing w/VAM TOP connections 1/4" TEC cable; 16 gauge single conductor encapsulated in 1/4" tubing CO2 Injection Zone Side Pocket Mandrel w/dummy gas valvePressure transducer Current depth 9,580’

9. Injection Interval Monitoring Interval Regional Seal Local Seals Cored Interval Above-zone monitoring to document no well leakage

11. WEST EAST NORTHSOUTH

12. Cranfield Anticline ~ 1 mile W-E S-N 29-12 OBS

13. Ella G. Lees #7 Observation Well 29-12: New Injection Well Vernon Johnson #2: Phase 3 area

14. Seismic amplitude tied to well logs

15. Stratal Slices, 90-degree data

16. 30 Hz stratal slice injection interval 50 Hz stratal slice injection interval Stratal Slice Frequency Content

17. Document pressure propagation preceding CO 2 plume Time lapse bottom-hole pressure in pattern – numerous wells Pressure has returned to near pre-production – unique conditions for an oil field Complex fluid mixture – oil +methane+ brine Measure fluid composition change –sweep efficiency –Determine effectiveness of available tools Document efficiency of Mississippi oil and gas law in retaining CO2 –Wells drilled in 1940-1950, P&A 1965 –Cement behind casing in injection zone –Evaluation – reentry or soil gas survey –Above zone monitoring program – pressure - fluid if needed Phase II Monitoring Goals

18. Dedicated observation well Three mechanical packer – two perforation zone completion Two downhole pressure/temperature Panex gauges – high reliability Real-time readout Episodic logging Limited fluid sampling Array of time-lapse monitoring between injector and producers –Model match/ compared to response in dedicated observation well –Logging program – measure sweep efficiency Programmatic value –Improved capacity estimate –Increase skill in measurement of pressure response preceding plume –Document well integrity Phase II Tool Selection

19. Special thanks to those working in the field.