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BIOSURFACTANTS FOR FRACS & STIMS: PROVEN TECHNOLOGY
- 1. Copyright © 2022 Locus Bio-EnergySolutions
- 2. Solution: A Shift in Focus to Domestic Oil Production ESG Compliance SEC rule changes on climate related risks and GHG emission disclosures Production An immediate need for increased U.S. oil & gas production, despite limited frac resources ESG-friendly US-based Proven on 300+ wells 40+% Increases across conventional and unconventional wells Biosurfactants Immediately and sustainably boost oil recovery for a fraction of the cost of other methods Challenges: Get more out of new and existing assets. Extend total well life.
- 3. The function of surfactants and their importance • Surfactants can mobilize two immiscible liquids such as oil and water. • Surfactants may act as detergents, wetting agents, emulsifiers, foaming agents, or dispersants for other insoluble organics and inorganics. • Surfactants are vital for the transport of solids and fluids. Where Are They Used? Use is ubiquitous across a multitude of industries: • Personal Care • Cleaning Products • Paints & Coatings • Lubricants …and more Sustainability Demand Global demand exists for non petroleum based solutions to replace petroleum based chemical surfactants. • Mining • Agriculture Oilfield Chemistries: Dispersants, Fluid Additives, Corrosion Inhibitors, etc.
- 4. Product Portfolio Chemistries for Hydraulic Fracturing and Acidizing Solvent-Compatible Biosurfactantto Control Wax, Asphaltene Deposition Biosurfactant- based Injectivity Aids for SWDs to ReducePressures. Biosurfactant- based Cleaning Chemicals Enhanced Oil Recovery 4 Biosurfactant- based Cleaning Chemicals Friction Reducer Recycling Allows acid to Dissolve More Scale in acid stimulation. Not to be distributed without express permission from Locus Bio-Energy Solutions IncreaseCrudeOilProduction
- 5. The Role of Surfactants in Stimulation Enhance Oil Mobility Maintain Oil Integrity 1 From the Rock Through the Fluids Through the Fracture 1 2 3 To the Surface 4 2 3 4 One is not enough! Surfactants need to impact each stage in oil production to maximize recovery. Not to be distributed without express permission from Locus Bio-Energy Solutions
- 6. Performance Confirmed by Independent Lab Data Microfluidic Technology confirms up to 90% more oil mobilized by Locus BE biosurfactants, reducing the need for continued (re)fracking to meet production goals • Microfluidics provide high-resolution simulation of reservoir fluid dynamics • Reproduces individual reservoir characteristics in microscopic format • Effective way to compare oil mobilization potentials of different chemistries Nano-sized pores etched onto a test chip that simulate fluid flow in the natural micro-cracks and pore sizes in a shale reservoir Locus BE Biosurfactants Volume of Oil Flowed Back 90% More Oil Recovered vs Control 70% More Oil Recovered vs Control
- 7. Case Study: Low Pressure Bullhead Bone Springs Horizontal Well Delaware Basin 5 Months Post-Treatment Performance (155 Days) 116% increase in oil production after a single treatment 24% increase in gas production after a single treatment 4,500 Incremental bbl. of oil produced above forecast 40 M Incremental mcf gas produced above forecast < 4 Month treatment cost recovery 1.6X ROI (incremental Revenue/Cost) $240 k Incremental revenue ($40/bo $1.50/Mcf) 10 100 1000 10000 0 90 180 270 360 450 540 630 720 810 900 OIL / GAS RATE (BPD / MCFD) DAYS ONLINE 25% increase in Volume of Gas produced vs Forecast 116% increase in Volume of Oil produced vs Forecast Pre-Treatment Baseline Oil Forecast : 25 BPD Post-Treatment Actual Ave Oil: 54 BPD Shut-Ins Begin AssurEOR STIM Treatment 10 100 1000 OIL BPD FORECAST 16 Months Post-Treatment Performance (Full Lease) 28% Ongoing higher oil production than forecast (public data) TX
- 8. 0 10 20 30 40 50 60 70 80 90 100 1/1/2018 7/20/2018 2/5/2019 8/24/2019 3/11/2020 9/27/2020 4/15/2021 11/1/2021 Online 7/3/2021 Oil Rate Gas Rate Case Study: Low Pressure Bullhead Lower Spraberry Horizontal Well Midland Basin TX +/- 3,050 bbls ROI > 4 in first 90 days Post-Treatment Performance (113 Days) Incremental Oil % Oil Increase 57% +/- 1,700 mcf Incremental Gas % Gas Increase 88% Pre-Treatment Average Rates Oil = 47 bpd Gas = 17 mcfd Gas Oil Post-Treatment Average Rate Oil = 74 bpd Gas = 32 mcfd
- 9. Case Study: Low Pressure Acid Restimulation San Andres Vertical Well Central Basin TX +/- 4,000 bbls Post-Treatment Performance (160 Days) Incremental Oil % Oil Increase 150% Pre-Treatment Average Rate Oil = 18 bpd Oil Post-Treatment Average Rate Oil = 45 bpd Number of wells Water Oil ROI > 4 in first 90 days >3x longer Time Between Acid Treatments
- 10. Post-Treatment Performance (70 Days) Case Study: Comitt EXCITE System™ Delaware Group Sandstone Horizontal Well Northern Shelf NM Pre-Treatment Average Rates Oil = 17 bpd Gas = 54 mcfd +/- 1,750 bbls Incremental Oil % Oil Increase 147% +/- 5,880 mcf Incremental Gas % Gas Increase 156% Gas Oil Oil Rate (bbl) Gas Rate (MCF) Post-Treatment Average Rates Oil = 42 bpd Gas = 138 mcfd
- 11. ND Middle Bakken Shale Williston Basin Case Study: Low Pressure Bullhead & “Re-Frac” 74% increase over baseline $138,160 incremental oil revenue ($80/bo) 1,727 incremental bbls of oil produced Bullhead Stimulation Pre-Treatment Average Rate Oil = 18 bpd Post-Treatment Average Rate Oil = 32 bpd Oil (126 days post treatment) Re-Stimulation BBLs of Oil Per Day Days 0 5 10 15 20 25 30 0 10 20 30 40 50 60 70 80 90 Re-frac Comparison: Cumulative Oil BBLs of Oil (Thousands) Days After Return to Production 24,413 21,874 PREMIUM SURFACTANT AT 0.5 GPT SUSTAIN AT 0.5 GPT 16% increase over analog $203,120 incremental oil revenue ($80/bo) 2,539 incremental bbls of oil produced Oil (75 days post treatment) Re-Frac
- 12. ND Middle Bakken, 5000’ lateral Case Study: Bakken Well Re-Frac Q4 2021 Locus BE SUSTAIN Biosurfactant vs. Industry Leading Surfactant Analysis of re-fracs on two analogue wells using major service company surfactants compared to re-frac using SUSTAIN biosurfactants Results: $250,000+ of additional oil in first 75 days 0 5 10 15 20 25 30 0 10 20 30 40 50 60 70 80 90 Re-frac Comparison: Cumulative Oil SUSTAIN Re-Frac Analog Well One Analog Well Two BBLs of Oil (Thousands) Days After Return to Production SUSTAIN Re-Frac: 60 Days 20,524 BO 14% HIGHER Analog Well One: 60 Days 18,012 BO SUSTAIN Re-Frac: 75 Days 25,413 BO 16% HIGHER Analog Well One: 75 Days 21,874 BO Analog Well Two: 30 Days 8,171 BO 12 Not to be distributed without express permission from Locus Bio-Energy Solutions
- 13. Case Study: Wolfcamp A Frac Q1 2021 TX RRC Data TX 142,155 181,981 0 50,000 100,000 150,000 200,000 250,000 0 4 8 12 16 20 24 OIL (BBLS) PRODUCTION MONTH Cumulative Oil (Data Source TX RRC) PREMIUM SURFACTANT AT 1.5 GPT SUSTAIN AT 0.5 GPT 228,920 307,599 0 100,000 200,000 300,000 400,000 0 4 8 12 16 20 24 GAS (MCF) PRODUCTION MONTH Cumulative Gas (Data Source TX RRC) PREMIUM SURFACTANT AT 1.5 GPT SUSTAIN AT 0.5 GPT Analog well provided by operator for performance comparison. Analog well used premium surfactant at a loading of 1.5 gpt Results: 1/3 the dosage rate at a loading of 0.5 gpt Oil Gas Oil Production Increase 28% (182 mbbls versus 142 mbbls) Performance Summary 12- Month Cumulative Production Gas Production Increase 34% (308 mmcf versus 229 mmcf)
- 14. Lower Environmental Impact With Biosurfactants: Permian Basin Example Source: GEC * Plug and Perf single well, 50 stages 200 ft per stage , 10,000 ft lateral Locus Biosurfactant Stimulation 0.1% of diesel used .01 Ton of CO2e / application < 1 Car equivalent CO2e emissions 0.4 acres of trees would need to be planted to offset 50-Stage Permian Frac* 97,000 Gallons of diesel used 985 Tons of CO2e / frac 210+ cars equivalent CO2e emissions 390 Acres of trees would need to be planted to offset Carbon Footprint Frac: High Water Usage Biosurfactants: Low Water Usage Locus Biosurfactant stimulation uses < 200,000 Gallons of water Compared to water required for a new frac < 2% A 50-Stage Permian frac uses 13,800,000 Gallons of water Water Usage
- 15. Additional Case Histories Successful well treatments completed across top U.S. basins: *Case histories available upon request State: Texas Formations: Spraberry, Wolf Camp State: Texas Formation: Eagle Ford, San Miguel State: North Dakota, Montana Formations: Bakken, Red River State: Illinois Formations: Salem, Warsaw State: New Mexico, Texas Formations: Bone Spring, Brushy Cannon, Wolf Camp, Yeso State: New Mexico, Texas Formation: San Andres States: Kentucky, Ohio, Pennsylvania, West Virginia Formations: Berea Sandstone, Clinton Sandstone, Upper Devonian, Utica Appalachian Central Delaware Illinois Midland South Texas Williston +
- 16. ESG UPDATE Locus BE biosurfactants are Carbon Neutral • Locus BE biosurfactants are Carbon Neutral • Manufacturing plant is transitioning to renewable-backed power • Remaining small carbon footprint is offset with carbon credits to claim a Carbon Neutral footprint ONE HUNDRED PERCENT OF THE OPERATIONAL ENERGY USE ASSOCIATED WITH SOLON PRODUCTION IS OFFSET BY NEW ON OR OFF-SITE RENEWABLE ENERGY. 16 Not to be distributed without express permission from Locus Bio-Energy Solutions
- 17. …but do so in an economic and sustainable manner. Benefits What’s the Future for North American Oil & Gas Production? Maximize production and useful life from EVERY well Reduced need for drilling and new well fracs • Less CO2, rigs, sand, steel, personnel Minimize plugging and abandonment and associated costs • Reduced methane leaks from abandoned wells Greater production and revenues over well lifespan • Maximize ROI/royalties on investments
- 18. Tom Swanson | SVP Sales 713-392-0128 TSwanson@LocusFS.com Oil Innovation Center 2408 Timberloch Place, B7 The Woodlands, TX 77380 In-person or virtual meetings available SCAN ME TO CONNECT LocusBioEnergy.com Extend Total Well Life with Lower Carbon Intensity. 18 Not to be distributed without express permission from Locus Bio-Energy Solutions For 2023 – “Making Wells Great Again!”
- 19. Copyright © 2022 Locus Bio-EnergySolutions
Editor's Notes
- Today I will talk about some of the challenges the industry is facing as we try to balance an increased need for domestic oil production with growing energy demands and new SEC guidelines related to carbon emissions tracking and reporting.
- It’s no secret that increased production will be driven heavily by Texas operators in the Permian. Although ESG has been all the rage for the past 3-4 years, the Russian invasion has made energy security the main priority. But to quote Mark Carney in a recent interview with the Financial Times: “The climate doesn’t care where emissions come from.” To slow the ESG momentum that has been building, would be to lose all progress we’ve made, to start over, which means we need to find ways today to increase production in a more environmentally conscious manner- make green by going green. One way to achieve this is by opting for environmentally friendly chemical solutions like Locus Bio-Energy’s biosurfactant based treatment. We take sustainable, renewable, domestically sourced raw materials- like sugar & canola oil- and combine them in a carbon-neutral fermentation process to produce naturally occurring biosurfactants. At Locus BE, we see an average increase in production of over 40% across 300 case studies that represent conventional and unconventional, carbonate to sandstone and shales in the Permian, the Bakken & New Mexico. With our biosurfactant based treatments, you can get more out of new and existing assets and extend total well life. If I were a professor, this is where I’d sit silently until someone finally asked “but how.” If I were a salesman, I would prompt you by asking, “but how you ask!” But I’m a scientist, so I’ll just tell you.
- Surfactants: help achieve 2 objectives: Enhance oil mobility and maintain oil integrity. Good surfactants will make it easier for the oil to be released from rom the rock, through the proppant laden fracture and through the additive & salt containing water. Great surfactants will do all of this an prevent or break emulsions to maintain the integrity of the oil that you just worked so hard to get. To maximize the production potential, surfactants must be multifunctional. At Locus BE, we develop, qualify & test our biosurfactant based treatments to achieve as many of these objectives in a single, economic chemical package.
- The methodology uses reservoir analogues, in place of cores, in an experiment similar to core flow. It replicates geometries of the shale reservoir rock e.g. pore/grain size distribution, porosity and permeability, and connectivity between the induced fractures (frac zone). The test flows fluids in one direction into an oil saturated porous media (i.e. from frac zone into the nano network) followed by oil and water flowback in the opposite direction (i.e., from nanonetwork into the frac zone). Testing is conducted at specified reservoir representative conditions.
- Rigless intervention bullhead treatment in a Bone Springs formation in the Delaware basin. Applied via single pump truck in 12 hours. Prior to treatment, the baseline production was 25 BPD. 150 days post-treatment, production was at 54 BPD, which is a 116% increase. 30 days of flowback large paraffin slugs, high density fluids and other solids flowing back - reservoir cleanup In addition to IFT reduction, wettability alteration and non emulsification, they are also able to break up & suspend organic deposits. After clean up , we see an enhancement of an already enhanced production. Additional 2 wells on 4 well pad - 16 months post-treatment still shows an increase for the entire pad of 28% over forecasted values.
- This was another bullhead treatment applied below frac pressure in the Lower Spraberry in the Midland Basin on a horizontal well. Pre-treatment baseline production was 47 BPD of oil and 17 mcfd of gas. 113 days post treatment, production levels are holding steady at 74 bpd oil & 32 mcfd gas ROI was greater than 4 in the first 90 days.
- 5 well San Andres lease in the Central Basin that was on an acid restimulation maintenance plan. 2 objectives: achieve greater production increases and extend time between acid treatments. 2 5 wells were treated with 100 bbl of acid followed by 100 bbl of one of Locus’s biosurfactant based products from the AssurEOR STIM line. Typical pre-treatment production rate was 18 bpd. 160 days post acid & stim treatments, baseline production was still at 45 bpd, representing a 150% increase. The operator indicated that that production rate represented a 3-4x longer uplift in production than HCl restimulation alone, supporting that the combination program of acid restim plus AssurEOR STIM can help you maximize production AND extend the time between acid treatments.
- An alternative application method is to use an isolation tool like the Commit EXCITE system to spot chemical directly at the perfs. T his was a Delaware Group sandstone on the Northern Shelf. The operator was interested in combining the AssurEOR STIM with a lateral cleanout. 100 bbl of acid and 100 bbl of STIM per stage using the isolation tool. Production increased from 17bpd to 42 bpd compared to baseline production of 17 bpd. In the first 70 days, the operator produced an additional 1,750 bbl of oil which represents a 147% increase.
- Finally, a refrac example. This was a middle Bakken shale in the Williston basin. The operator was specifically targeting under-stimulated wells (6-10 stages) compared to modern completion methods. The well was first treated with a low pressure bullhead with one of our STIM products. 126 days post treatment, production was at 74% above baseline, resulting in almost $140k incremental oil revenue at $80/bbl. These results convinced the operator to use a biosurfactant based product from our SUSTAIN line for the re-frac of this same well. I’ll use the phase “re-frac” loosely here as this was really a brand new completion of an existing well. The recompletion procedure included cementing the production string in the lateral then conducting a modern plug/perf completion of 30+ stages. Locus’s biosurfacant based SUSTAIN treatment was applied to one well at 0.5 gpt. Compared to the analog well treated with 0.5 gpt of a premium surfactant, the Locus treated well recovered an additional $200k in revenue over the analog after just 75 days. Based on the production slope, we anticipate continued deviation in cumulative oil with time, resulting in even greater increases compared to the analog.
- Compare traditional surfactants with SUSTAIN; after 75 days we produced more than a quarter of a million dollars of crude; extra oil that we produced wouldn’t have been reachable without our biosurfactants; industry standard surfactants (traditional re-frac surfactants)
- This case study is a primary Wolfcamp A frac in the Delaware basin. Sustain applied at 0.5 gpt. head to head against an analog selected by the operator to represent the most similar well in terms of completion. It was treated with 1.5 gpt of an industry leading premium microemulsion. A comparison of the cumulative production at the 12m mark shows that the Locus treated well resulted in 28% more oil and 34% more gas than the analog. This is significant because the Locus well was treated at 1/3 the dosage rate of a premium product with a premium price tag, proving that you get more for less with Locus biosurfactant based treatments.
- Let’s take a step back & review some fundamentals. We all know there are primarily 2 ways to increase domestic production: 1) drill new wells or 2) breathe new life into old wells. Let’s look at drilling new wells. A typical 50-stage frac in the Permian would require about 100k gallons of diesel. Lots of trucks. Lots of days. Lots of CO2 emissions. If you wanted to offset the carbon footprint from completing that well by, say planting trees, you’d have to plant 390 acres of trees. Let me repeat that: 390 ACRES of trees. You’d better love planting trees because you’re going to do it the rest of your life. Let’s compare this to revitalizing an old well on the decline with one of Locus’s biosurfactant based treatments from our AssurEOR STIM line. In this scenario, you need one truck at the wellsite just long enough to deliver the chemical, resulting in a significant reduction in carbon emissions. You can plant enough trees to offset the carbon footprint of this job during a team building event one afternoon. But in addition to reducing your carbon footprint, you’re also significantly reducing your water consumption to 2% of what is required for a new well. So let’s recap: fewer trucks, less diesel, less time, lower CO2 emissions, smaller carbon footprint and less water. This sure sounds and feels like an environmental and budgetary win. But remember, the objective is get more oil, so do Locus Bio-Energy’s biosurfactant based treatments actually help you get more oil? Let’s look at some case studies to find out.
- As I mentioned earlier, we have over 300 case studies representing successful well treatments across top US basins- from the Appalachian to the Illinois to Williston. I’ve only scratched the surface today, so please reach out after to see if we have one in your area.
- GHG Estimation & Validation
- So if you don’t remember anything I’ve just said after you leave here today, remember this: Green chemistry used to mean high cost & low performance, but those days are gone. With Locus Bio-Energy’s biosurfactant based treatments, you can maximize production and useful life from every well in an economic and sustainable manner. We deliver high performance, multifunctional, economical products that help operators increase production and meet their ESG goals.