Shale drilling with potassium formate brine - Chevron Encana presentation

John Downs
John DownsDirector at Formate Brine Ltd
Using formatebrine and water based fluids drilling fluids to improve drilling performance 
A case study in Pipestone 
Ryan Siemens and Elie MeyerDrilling EngineersCalgary | September 16 | 2014 
Copyright © 2014 Encana Corporation. All Rights Reserved.No part of this document may be reproduced or transmitted in any form or by anymeans, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of Encana Corporation.
This presentation of Encana Corporation (“Encana”) on using formatebrine and water based fluids drilling fluids to improve drilling performance (this “Presentation”) is for general information purposes only. 
The contents of this Presentation are not intended to be, and may not be relied upon by any person, company, trust, partnership or other entity (“Person”) for the purpose of making any investment decision, including without limitation, any decision to purchase, hold or sell any securities of Encana or any of its affiliates. 
Encana expressly disclaims, and makes no representation or warranty, express or implied, with respect to any of the information made available in this Presentation where such information is used by any Person for the purposes of making any investment decision as prohibited by this disclaimer, and none of Encana and its affiliates, and their respective officers, directors, employees, agents, advisors and contractors shall have any liability to any Person in respect thereof. 
Encana does not warrant the quality, accuracy or completeness of any information provided in this Presentation and such information is provided as is, without any warranty or condition of any kind. Neither Encana nor any other person associated with the creation of this Presentation or its contents shall be liable or responsible to any Person for any harm, loss or damage that may arise in connection with the use of the Presentation or any of its contents, including without limitation, any indirect, third party, or consequential damages. 
Any Person relying on the information contained in this Presentation does so at its own risk and without any recourse against Encana or any of their respective officers, directors, employees, agents and advisors. Encana expressly disclaims any representations or warranties with respect to any information contained in this Presentation. 
DISCLAIMER 
2
Agenda 
• 
Pipestone well design 
• 
2013 Invert performance summary 
• 
Introduction to brine fluids 
• 
Why use potassium formatebrine 
• 
Special operational considerations 
• 
Design and results of field trial 
• 
Potassium formate1.0 performance 
• 
Potassium formate2.0 performance 
• 
Cost of utilization 
• 
Challenges and limitations
 
Sour service pipe design 
 
Halfway 18 % -Doig11% -Montney 8% 
 
Mud 90/10 invert (oil-based mud) for hole stability and lubricity 
 
LWD resistivity utilized to geosteer 
244.5mm J-55 Surface Casing 
~600m 
177.8mm L-80 Intermediate Casing 
Set at ~70° (Surface to ~2550m) 
TVD 2400-2700 m 
222mm intermediate hole 
Liner Hanger Packer Set at ~35° 
2200m leg 
~41 days Spud to RR 
Pipestone well design 
Horizontal open hole set packers
2013 Invert performance summary
Introduction to brine fluids 
• 
Salt 
– 
Ionic compounds that result from the neutralization reaction of an acid and a base 
• 
Brine 
– 
Dissolved solution of salts, most commonly solvent is water 
• 
pH 
– 
The ratio of hydroxide ions to hydronium ions determines a solution pH 
• 
FormateBrine 
– 
Formatebrines are the aqueous solutions of the alkalimetalsalts of formic acid. These salts are readily soluble in water, yielding high-density brines 
• 
Sodium formate 
• 
Potassium formate 
• 
Cesium formate
What is the brine advantage? 
Solids (%) 
Yield Pt. 
(Pa) 
Plastic Vis. (mPa.s) 
Thermal Cap. 
(J/g.°C) 
ThermalCond. (W/m.K) 
Water/brine 
0-1 
0 -1 
1 -2 
0.6 
4.2 
Oil/invert 
10-18 
4 -8 
10 -40 
0.2 
2
Why potassium formate brines? Corrosion & lubricity
Halide brine corrosion damageW. Canadian examples
Corrosion testing results
Formation compatibility testing 
distilled water –potassium formate –calcium bromide –calcium chloride
Solids control setupBead recovery unit & davelintank 
Fluid 
Solids 
Beads
Temperature limitation
Temperature limitationResults
Potassium formate trial pad
Potassium formate parametersRate of penetration, length of runs 
13 m/hr. vs. 24 m/hr. 
236 m vs. 850 m
Potassium formate parametersStandpipe pressure 
~6000 kPa 
25%
Potassium formate parametersRotary torque 
Increase bead concentration
Potassium formate trial pad 
8-11 days
Potassium formate trial padNormalized lateral meterage 
4-7 days 
~40%
Potassium formate 1.0 performance2014 Q2 time depth vs. 2013 invert
Potassium formate 1.0 performance2014 Q2 time depth vs. 2013 invert 
10 days 
~30%
Potassium formate 1.0 performance2014 Q2 time depth vs. 2013 invert –normalized lateral
Potassium formate 1.0 performance2014 Q2 time depth vs. 2013 invert –normalized lateral 
10 days 
~40%
Potassium formate 2.0 performanceFloc/formatevs. invert in intermediate section 
2.5 days 
~30%
But isn’t formate too expensive? Comparing fluid cost 
125 % 
250 % 
320 % 
360 % 
100 %
Cost of serviceMud cost & total service cost 
• 
tank farm 
• 
bead unit 
• 
davlintank 
• 
agitator 
• 
Invert surcharge 
17 % 
27 %
Total drilling well costInvert vs. formate 2013 -2014 
11 % 
27 %
Total drilling well costLaterals greater than 2000 m invert vs. formate 
27 %
Total drilling well costFormatein lateral vs. floc/formate in intermediate 
12 %
Challenges & limitations 
Lubricity 
Increased drag 
Limitation to well length 
Switching to invert at toe 
Using invert for liner install
Key Contributors & References 
Encana drilling team 
– 
Nathan Gullacher 
– 
Don Poffenroth 
– 
James Highet 
– 
Ryan Siemens 
– 
Bill Mulloy 
– 
Elie Meyer 
– 
Lois McCorriston 
External 
– 
Nick Legacy (DMK) 
– 
Chris Kostiuk(DMK) 
– 
Kelly Burake (DMK) 
– 
Wade Wondrasek (Paramount) 
Formate Technical Manual (Cabot) 
PertrofromTechnical Manual (ADDCON) 
SPE 27143 –105733 –145562
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Shale drilling with potassium formate brine - Chevron Encana presentation

  • 1. Using formatebrine and water based fluids drilling fluids to improve drilling performance A case study in Pipestone Ryan Siemens and Elie MeyerDrilling EngineersCalgary | September 16 | 2014 Copyright © 2014 Encana Corporation. All Rights Reserved.No part of this document may be reproduced or transmitted in any form or by anymeans, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of Encana Corporation.
  • 2. This presentation of Encana Corporation (“Encana”) on using formatebrine and water based fluids drilling fluids to improve drilling performance (this “Presentation”) is for general information purposes only. The contents of this Presentation are not intended to be, and may not be relied upon by any person, company, trust, partnership or other entity (“Person”) for the purpose of making any investment decision, including without limitation, any decision to purchase, hold or sell any securities of Encana or any of its affiliates. Encana expressly disclaims, and makes no representation or warranty, express or implied, with respect to any of the information made available in this Presentation where such information is used by any Person for the purposes of making any investment decision as prohibited by this disclaimer, and none of Encana and its affiliates, and their respective officers, directors, employees, agents, advisors and contractors shall have any liability to any Person in respect thereof. Encana does not warrant the quality, accuracy or completeness of any information provided in this Presentation and such information is provided as is, without any warranty or condition of any kind. Neither Encana nor any other person associated with the creation of this Presentation or its contents shall be liable or responsible to any Person for any harm, loss or damage that may arise in connection with the use of the Presentation or any of its contents, including without limitation, any indirect, third party, or consequential damages. Any Person relying on the information contained in this Presentation does so at its own risk and without any recourse against Encana or any of their respective officers, directors, employees, agents and advisors. Encana expressly disclaims any representations or warranties with respect to any information contained in this Presentation. DISCLAIMER 2
  • 3. Agenda • Pipestone well design • 2013 Invert performance summary • Introduction to brine fluids • Why use potassium formatebrine • Special operational considerations • Design and results of field trial • Potassium formate1.0 performance • Potassium formate2.0 performance • Cost of utilization • Challenges and limitations
  • 4.  Sour service pipe design  Halfway 18 % -Doig11% -Montney 8%  Mud 90/10 invert (oil-based mud) for hole stability and lubricity  LWD resistivity utilized to geosteer 244.5mm J-55 Surface Casing ~600m 177.8mm L-80 Intermediate Casing Set at ~70° (Surface to ~2550m) TVD 2400-2700 m 222mm intermediate hole Liner Hanger Packer Set at ~35° 2200m leg ~41 days Spud to RR Pipestone well design Horizontal open hole set packers
  • 6. Introduction to brine fluids • Salt – Ionic compounds that result from the neutralization reaction of an acid and a base • Brine – Dissolved solution of salts, most commonly solvent is water • pH – The ratio of hydroxide ions to hydronium ions determines a solution pH • FormateBrine – Formatebrines are the aqueous solutions of the alkalimetalsalts of formic acid. These salts are readily soluble in water, yielding high-density brines • Sodium formate • Potassium formate • Cesium formate
  • 7. What is the brine advantage? Solids (%) Yield Pt. (Pa) Plastic Vis. (mPa.s) Thermal Cap. (J/g.°C) ThermalCond. (W/m.K) Water/brine 0-1 0 -1 1 -2 0.6 4.2 Oil/invert 10-18 4 -8 10 -40 0.2 2
  • 8. Why potassium formate brines? Corrosion & lubricity
  • 9. Halide brine corrosion damageW. Canadian examples
  • 11. Formation compatibility testing distilled water –potassium formate –calcium bromide –calcium chloride
  • 12. Solids control setupBead recovery unit & davelintank Fluid Solids Beads
  • 16. Potassium formate parametersRate of penetration, length of runs 13 m/hr. vs. 24 m/hr. 236 m vs. 850 m
  • 17. Potassium formate parametersStandpipe pressure ~6000 kPa 25%
  • 18. Potassium formate parametersRotary torque Increase bead concentration
  • 19. Potassium formate trial pad 8-11 days
  • 20. Potassium formate trial padNormalized lateral meterage 4-7 days ~40%
  • 21. Potassium formate 1.0 performance2014 Q2 time depth vs. 2013 invert
  • 22. Potassium formate 1.0 performance2014 Q2 time depth vs. 2013 invert 10 days ~30%
  • 23. Potassium formate 1.0 performance2014 Q2 time depth vs. 2013 invert –normalized lateral
  • 24. Potassium formate 1.0 performance2014 Q2 time depth vs. 2013 invert –normalized lateral 10 days ~40%
  • 25. Potassium formate 2.0 performanceFloc/formatevs. invert in intermediate section 2.5 days ~30%
  • 26. But isn’t formate too expensive? Comparing fluid cost 125 % 250 % 320 % 360 % 100 %
  • 27. Cost of serviceMud cost & total service cost • tank farm • bead unit • davlintank • agitator • Invert surcharge 17 % 27 %
  • 28. Total drilling well costInvert vs. formate 2013 -2014 11 % 27 %
  • 29. Total drilling well costLaterals greater than 2000 m invert vs. formate 27 %
  • 30. Total drilling well costFormatein lateral vs. floc/formate in intermediate 12 %
  • 31. Challenges & limitations Lubricity Increased drag Limitation to well length Switching to invert at toe Using invert for liner install
  • 32. Key Contributors & References Encana drilling team – Nathan Gullacher – Don Poffenroth – James Highet – Ryan Siemens – Bill Mulloy – Elie Meyer – Lois McCorriston External – Nick Legacy (DMK) – Chris Kostiuk(DMK) – Kelly Burake (DMK) – Wade Wondrasek (Paramount) Formate Technical Manual (Cabot) PertrofromTechnical Manual (ADDCON) SPE 27143 –105733 –145562