RENASCENT ENERGY MANAGEMENT LLC — Department of Energy SBIR Phase I: 26a

Description

Renascent Energy Management, LLC; Topic 26b; Dr. Ivan E. Terez; “Enhanced Gas Recovery and Stimulation by Thermal Methods in Depleted Hydraulically Fractured Gas Wells in Shales” Enhanced Oil & Gas Recovery in shales is a new concept but it stems from extensive industry Enhanced Oil Recovery (EOR) experience in R&D and numerous field trials and commercial operations. Non- thermal EOR via huff-&-puff injection has already been commercially implemented in the Eagle Ford shale by EOG and tested in Permian & Bakken by several companies targeting liquid-rich shale areas. However no enhanced recovery projects of any kind have been done for gas and gas-condensate shale wells. Renascent Energy has original ideas for using thermal recovery methods somewhat similar to what was used in conventional enhanced recovery to a completely new concept of applying enhanced thermal methods in hydraulically fractured horizontal wells, including those drilled into gas shales. Our broad and deep enhanced recovery experience was brought to bear in studying the technical merits of all existing enhanced recovery techniques and their potential benefits, applied specifically to U.S. gas shales. Thus, we came up with an innovative concept using proven oilfield equipment to inject steam into the fracture system, whose enormous surface area provides ideal means for conducting steam heat into rock adjacent to fractures. Through the process of thermal desorption, this heating mobilizes native adsorbed gas components which are left behind during primary recovery. Adsorbed gas accounts for 35-85% of the total initial gas in place; therefore, this process improves the otherwise low recovery efficiency that is characteristic of gas-window shales. In Phase I, we plan to conduct all technical work required to fully develop a technical basis for our innovative concept and to be ready for field experiment in Phase II by demonstrating: 1) the Enhanced Oil and Gas Recovery mechanisms operative during steam huff-&-puff stimulation are effective at increasing gas recovery, 2) there is a suitable U.S. shale basin for a Phase II field experiment, 3) there are suitable configurations of available surface equipment for cyclic injection of steam, and available downhole equipment for compatibility with existing completions; and suitable vendors who are ready-to-go, and 4) process economics are demonstrably favorable. The two principals, Dr. Ivan E. Terez (PI) and Dr. Kenneth R. Kibodeaux, are prominent petroleum- engineering professionals with 20+ years each of energy industry experience in enhanced recovery who intend to work on this project in Phase I and all subsequent phases. Our long-term business plan is to re-enter depleted gas shale wells in the U.S. As a result of the “shale revolution” there are 40,000+ fracked horizontal shale/tight gas wells with a vast majority of them depleted. Economics are superb as we are taking advantage of money already spent on drilling and fracking the wells; we use only 1/5 of that amount for well re-entry. In addition, various environmental and political restrictions will likely be put in place that will prohibit or severely restrict any new well drilling and fracking / re- fracking of wells. It seems that enhanced recovery in shales is the only “big thing” left in the onshore lower U.S. 48’s for gas shales and it is the FUTURE. We have had deep discussions with private investors where we passed their technical filters, but their principals felt it was a bit too risky for them to invest in at this stage. However, there was a keen interest to participate in the commercial phase. This process will improve the stimulation of unconventional horizontal and fractured gas wells, increase gas recovery, lower average unit, and increase profitability, thereby helping to support American energy independence and economic growth.