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Washington
                                     County
                                                            The CO2 capture unit at Alabama Power’s
                Citronelle Dome
                                                            (Southern Co.) Plant Barry became
                                                            operational in 3Q 2011.
                                            CO2 Injection
                                                Site
                                                            A newly built 12 mile CO2 pipeline from
                                                            Plant Barry to the Citronelle Dome
                                                            completed in 4Q 2011.
Mississippi
              Alabama




                           CO2 Pipeline                     A characterization well was drilled in 1Q
                                                            2011 to confirmed geology.
                                      Plant Barry
                           Mobile
                           County                           Two injection wells were drilled in 4Q 2011.

                                                            100 to 300 thousand metric tons of CO2 will
                                                            be injected into a saline formation over 2 to
                                                            3 year period beginning in summer of 2012.

                                                            3 years of post-injection monitoring.
                                       Mobile
•! Proven four-way closure at Citronelle
   Dome
•! Injection site located within Citronelle
   oilfield where existing well logs are
   available
•! Deep injection interval (9,400 ft)
•! Numerous confining units
•! Base of USDWs ~1,400 feet
•! Existing wells cemented through
   primary confining unit
•! No evidence of faulting or fracturing,
   based on oilfield experience, new
   geologic mapping and
   reinterpretation of existing 2D
   seismic lines.
Baseline reservoir characterization:

                              •! Analysis of over 80 existing oilfield well logs
                                 for porosity, thickness and depositional style.
                              •! Sand mapping to determine “open” or
                                 “closed” sand units.




We collected new geologic data on the Paluxy reservoir and confining
unit with the drilling of the project’s three new wells:
   •! 210 feet of whole core and 70 percussion sidewall cores
   •! Full set of open hole logs on all three wells (quad combo, MRI, spectral gamma,
      mineralogical evaluation, waveform sonic, cement quality, pulsed neutron
      capture)
   •! Baseline vertical seismic profiles and crosswell seismic collected in Feb 2012
CO2 Plume Extent
                     10 yrs after End of Injection     •! Inject at maximum injection rate
                                                          during for three years (500
                                                          tonnes per day).
                                                9460

    CO2 Saturation
                                                       •! Plume area in topmost sand is
        (v/v)        9520                                 0.35mi2 (225 acres)

                                                      •! Most of the CO2 enters the
                      9570
                                                         upper Paluxy sands due to
                      9710
                                                 9540    higher permeability and
                                                         injection gradient

                        9900                    9740   •! These results are used to
                                                          design injection (well design,
                                                9800
                       9970                               completion program, monitoring
                                                          program)
6
1.    16” Conductor Pipe set at 60’.
                                             1
2.    10-3/4” Surface Casing @ 2,520’,
      set in 13 1/2” hole; 45.5 lb/ft J-55
      STC; Cemented to ground surface.
                                             2
3.    7” Protection Casing @ 11,780’,
                                             3
      set in 9-7/8” hole; 26.0 lb/ft L-80
      LTC; Cemented to ground surface        4
      (2 stage).
4.    2-7/8” Injection Tubing @ 9,300’;      5
      6.5 lb/ft L-80 with NTS-8 threads
      and TK-805 internal coating.
5.    Annular Fluid: 8.4 lb/gal inhibited
      fresh water.
6.    Injection Packer @ 9,358’; 7” x 2
      7/8” AS1-X Pryor nickel plated
      packer.
7.    Tailpipe Below Packer, base at         6
      9,391’ (33’ long)
                                             7

8.    Perforations (0.40” charges @ 2
      shots per foot): 9,436’ to 9,800’.     8

9.    Cast Iron Bridge Plug at 10,800’       9
      capped with cement.                    10

10.   Total Depth @ 11,780 ’.
The Anthropogenic test will use five
deep wells to track the CO2 plume plus
three shallow water monitoring wells:

 •!   Near-surface and deep reservoir fluid
      sampling.
 •!   In-zone and above-zone pressure and
      temperature monitoring.
 •!   Cased-hole neutron logging.
 •!   Crosswell seismic and VSP.
 •!   Surface soil flux and tracer surveys

Results will be used to periodically
update the reservoir model and UIC
Area of Review.
•!   Baseline monitoring began in late 2011
     •!   Permission to inject anticipated in May 2012
     •!   CO2 injection operations begin in June 2012, continue for 1 to 2 years
     •!   3+ years of post-injection monitoring, then close site




10

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CO2 Injection/Storage Site

  • 1.
  • 2. Washington County The CO2 capture unit at Alabama Power’s Citronelle Dome (Southern Co.) Plant Barry became operational in 3Q 2011. CO2 Injection Site A newly built 12 mile CO2 pipeline from Plant Barry to the Citronelle Dome completed in 4Q 2011. Mississippi Alabama CO2 Pipeline A characterization well was drilled in 1Q 2011 to confirmed geology. Plant Barry Mobile County Two injection wells were drilled in 4Q 2011. 100 to 300 thousand metric tons of CO2 will be injected into a saline formation over 2 to 3 year period beginning in summer of 2012. 3 years of post-injection monitoring. Mobile
  • 3. •! Proven four-way closure at Citronelle Dome •! Injection site located within Citronelle oilfield where existing well logs are available •! Deep injection interval (9,400 ft) •! Numerous confining units •! Base of USDWs ~1,400 feet •! Existing wells cemented through primary confining unit •! No evidence of faulting or fracturing, based on oilfield experience, new geologic mapping and reinterpretation of existing 2D seismic lines.
  • 4. Baseline reservoir characterization: •! Analysis of over 80 existing oilfield well logs for porosity, thickness and depositional style. •! Sand mapping to determine “open” or “closed” sand units. We collected new geologic data on the Paluxy reservoir and confining unit with the drilling of the project’s three new wells: •! 210 feet of whole core and 70 percussion sidewall cores •! Full set of open hole logs on all three wells (quad combo, MRI, spectral gamma, mineralogical evaluation, waveform sonic, cement quality, pulsed neutron capture) •! Baseline vertical seismic profiles and crosswell seismic collected in Feb 2012
  • 5.
  • 6. CO2 Plume Extent 10 yrs after End of Injection •! Inject at maximum injection rate during for three years (500 tonnes per day). 9460 CO2 Saturation •! Plume area in topmost sand is (v/v) 9520 0.35mi2 (225 acres) •! Most of the CO2 enters the 9570 upper Paluxy sands due to 9710 9540 higher permeability and injection gradient 9900 9740 •! These results are used to design injection (well design, 9800 9970 completion program, monitoring program) 6
  • 7.
  • 8. 1. 16” Conductor Pipe set at 60’. 1 2. 10-3/4” Surface Casing @ 2,520’, set in 13 1/2” hole; 45.5 lb/ft J-55 STC; Cemented to ground surface. 2 3. 7” Protection Casing @ 11,780’, 3 set in 9-7/8” hole; 26.0 lb/ft L-80 LTC; Cemented to ground surface 4 (2 stage). 4. 2-7/8” Injection Tubing @ 9,300’; 5 6.5 lb/ft L-80 with NTS-8 threads and TK-805 internal coating. 5. Annular Fluid: 8.4 lb/gal inhibited fresh water. 6. Injection Packer @ 9,358’; 7” x 2 7/8” AS1-X Pryor nickel plated packer. 7. Tailpipe Below Packer, base at 6 9,391’ (33’ long) 7 8. Perforations (0.40” charges @ 2 shots per foot): 9,436’ to 9,800’. 8 9. Cast Iron Bridge Plug at 10,800’ 9 capped with cement. 10 10. Total Depth @ 11,780 ’.
  • 9. The Anthropogenic test will use five deep wells to track the CO2 plume plus three shallow water monitoring wells: •! Near-surface and deep reservoir fluid sampling. •! In-zone and above-zone pressure and temperature monitoring. •! Cased-hole neutron logging. •! Crosswell seismic and VSP. •! Surface soil flux and tracer surveys Results will be used to periodically update the reservoir model and UIC Area of Review.
  • 10. •! Baseline monitoring began in late 2011 •! Permission to inject anticipated in May 2012 •! CO2 injection operations begin in June 2012, continue for 1 to 2 years •! 3+ years of post-injection monitoring, then close site 10