OIL WELL STIMULATION BY ENERGY FRACTURING METHOD (ENERGYFRAC)

Prof. Vladislav G. Slutsky, Prof. Sergei A. Tsyganov, Ph.D. Eugeny S. Severin

Semenov Institute of Chemical Physics, Russian Academy of Sciences
4 Kosygin Street, 119991 Moscow, Russia
Tel.: +7(495)939-7257, Fax: +7(495)938-5906
E-mail: slutsky@list.ru

SUMMARY

Energyfrac is a new method of High Energy Gas Fracturing (HEGF) for well stimulation.

Advantages of Energyfrac

 Efficiency is comparable to that of hydraulic fracturing (Hydrofrac, the most effective method
for enhancing oil production)

Treatment cost is several times lower than that of hydraulic fracturing

 Fire and explosion safe

 Does not require any special equipment
 Can be used by any oil-producing or oil service company
 The key chemicals are environmentally friendly

Version 1 (Single-Stage Energyfrac). This version is fully developed and protected by Russian
Patents nos. 2154733 and 2178073.

This version is designed for stimulating wells with high formation pressures (naturally flowing
and gas-lift wells). In this version, the formation is fractured by the high-pressure gas produced by
burning a liquid fuel–oxidizer solution (FOS) pumped into the well. FOS is an aqueous solution of an
organic fuel and a mineral oxidizer. FOS does not react at atmospheric pressure, which makes it
fire/explosion safe. The combustion of the FOS pumped into the well is initiated by a promoter
designed to make a self-igniting binary system with the FOS. The promoter is enclosed in containers
and lowered down the hole on a logging cable. The FOS combustion begins when the promoter
containers are broken by means of a detonating cord. The high efficiency of this version (increase in
oil production by 100% and higher) has been demonstrated for wells with high formation pressures
(naturally flowing and gas-lift wells). The fractures created by treating wells of this kind remain open.

Version 2 (Two-Stage Energyfrac with acid treatment). This version is under development.

This version is designed for stimulating wells with low formation pressures (pumping wells) in
carbonate reservoirs. It has been found that fractures in wells with low formation pressure
(pumping wells) close unless subjected to additional treatment. Carbonate reservoirs can be
effectively treated by acidizing. The acid dissolves carbonates and serves to enlarge fractures so that
they remain open after the formation has reached a new steady state. The stimulation treatment is
performed in two stages. At the first stage, the formation is fractured as in Version 1. At the second
stage, the created fractures are treated with an acid.

Version 3 (Two-Stage Energyfrac with proppant).This version is under development.

This version is designed for stimulating wells with low formation pressures (pumping wells) in
sandstone reservoirs. Such wells are stimulated in two stages. At the first stage, the formation is
fractured as in Version 1. At the second stage, a proppant gel is pumped into the created fractures to
hold them open.

Brief proposals for cooperation

1. The rights to Version 1 can be transferred to an interested Organization after a series of

demonstration treatments have been performed.
2. The rights to Versions 2 and 3 can be transferred to an interested Organization after
corresponding contracts for final development have been closed.

Attachments:

 Extended description of Energyfrac

 Treatment results
 Illustrations
 Proposals for cooperation

OIL WELL STIMULATION BY ENERGY FRACTURING METHOD (ENERGYFRAC)

Prof. Vladislav G. Slutsky, Prof. Sergei A. Tsyganov, Ph.D. Eugeny S. Severin

Semenov Institute of Chemical Physics, Russian Academy of Sciences
4 Kosygin Street, 119991 Moscow, Russia
Tel.: +7(495)939-7257, Fax: +7(495)938-5906
E-mail: slutsky@list.ru

EXTENDED DESCRIPTION

Energyfrac is a new method of High Energy Gas Fracturing (HEGF) for well stimulation.

Advantages of Energyfrac

 Efficiency is comparable to that of hydraulic fracturing (Hydrofrac, the most effective method
for enhancing oil production)
 Treatment cost is several times lower than that of hydraulic fracturing
 Fire and explosion safe
 Does not require any special equipment
 Can be used by any oil-producing or oil service company
 The key chemicals are environmentally friendly

Introduction

The most effective method for enhancing oil production, Hydrofrac, makes use of hydraulic fracturing
of the oil-bearing formation under the high pressure of fluids pumped into the reservoir to be treated.
The fractures created in the formation provide passageways for additional oil influx into the well. To
hold the fractures open, the treatment fluid is mixed with proppant, such as ceramic grains of certain
size. To keep the proppant suspended, the fluid is gelled. Treatment costs amount to several hundred
thousand US dollars because hydraulic fracturing equipment is very expensive. In less expensive
technologies, such as High Energy Gas Fracturing (HEGF), the formation is fractured under the high
pressure of the gas produced by propellant combustion in the pay zone. The companies using HEGF
systems include Servo-Dynamics, Inc.; J Integral Engineering, Inc.; Owen Oil Tools, Inc.; and Geotec
Thermal Generators, Inc. The available HEGF technologies have the following common disadvantages:
(1) the propellant charges are fire and explosion hazardous; (2) fracture closure can occur, which may
lead to a substantially lower efficiency of HEGF treatment as compared to hydraulic fracturing.

In what follows, a description is given of a new HEGF-type method that is free of the disadvantages of
the available HEGF technologies. The efficiency of treatment by this method is comparable to that of
hydraulic treatment while treatment costs are substantially lower. The method is called Energy
Fracturing (Energyfrac).

Description of Energyfrac

Version 1 (Single-Stage Energyfrac) is designed for stimulating wells with high formation
pressures (naturally flowing and gas-lift wells). This version is fully developed and protected by
Russian Patents nos. 2154733 and 2178073.

In this version, propellant charges are replaced by a fuel–oxidizer solution (FOS, aqueous solution of
an organic fuel and a mineral oxidizer), which presents no fire/explosion hazard since it burns only at
pressures above 5 MPa after it is pumped into a well. The combustion of a FOS is initiated by bringing
it in contact with a promoter designed to make a self-igniting binary system. The promoter is enclosed
in containers and lowered down the hole on a logging cable. The FOS combustion begins when the
promoter containers are broken by means of a detonating cord.

The high efficiency of this version of Energyfrac (increase in oil production by 100% and higher) has
been demonstrated for wells with high formation pressures (naturally flowing and gas-lift wells).

As applied to pumping wells (with low formation pressure), the currently available Energyfrac
technology is much less efficient: the post-treatment increase in oil production does not exceed 15%.
The low efficiency of Energyfrac treatment of such wells is explained by fracture closure during well
operation.

Version 2 (Two-Stage Energyfrac with acid treatment) is designed for stimulating wells with
low formation pressures (pumping wells) in carbonate reservoirs. This version is under
development.

When pumps are used, the fluid level in the well is substantially lowered. This leads to a large
difference in fluid pressure (differential pressure) between the formation and the wellbore, which
causes the newly created fractures to close as the formation approaches a new steady state.

To improve the efficiency of Energyfrac as applied to pumping wells, an additional treatment that
prevents fracture closure is required. Carbonate reservoirs can be effectively treated by acidizing. The
acid dissolves carbonates and serves to enlarge fractures so that they remain open after the formation
has reached a new steady state. The stimulation treatment is performed in two stages. At the first
stage, the formation is fractured as in Version 1. At the second stage, the created fractures are
treated with an acid.

Version 3 (Two-Stage Energyfrac with proppant) is designed for stimulating wells with low
formation pressures (pumping wells) in sandstone reservoirs. This version is under
development.

To improve the efficiency of Energyfrac as applied to pumping wells in sandstone reservoirs, fractures
must be held open by means of a proppant. Such wells are stimulated in two stages. At the first stage,
the formation is fractured as in Version 1. At the second stage, a proppant gel is pumped into the
created fractures. Since the gel is pumped into already created fractures under a relatively low
pressure (several MPa), this can be done by means of standard equipment available in most oil-
producing or oil service companies. Thus, the cost of a proppant fracture treatment is significantly
reduced as compared to the cost of a typical gel-proppant hydraulic fracturing treatment, because the
latter makes use of special expensive high-pressure pumping equipment (tens of MPa) required to
create fractures.

TREATMENT RESULTS

1. Wells best suited for stimulation by Version 1 (Single-Stage Energyfrac)

Well treatment by Version 1 results in formation fracturing. To ensure an enhanced oil influx, the
created fractures must be held open during subsequent well operation. The fractures can be closed by
forces associated with the flow of oil to fractures. These forces are proportional to the differential
pressure ΔP (difference between the formation pressure and the bottomhole fluid pressure). The
closing of the fractures is impeded by friction forces proportional to the rock pressure, which increases
with the vertical well depth H. The ratio between the fracture-closing and friction forces is proportional
to the normalized differential pressure ΔP/H. The newly created fractures persist when ΔP/H is low and
tend to close as ΔP/H exceeds a certain threshold value (ΔP/H)thr.
The figure shows the ratio of post-treatment to pre-treatment oil production rates, Q/Qo, for several
wells. It is demonstrated here that Version 1 increases production rate by a factor of 2 to 2.5 when
the normalized differential pressure is relatively low. The post-treatment production rate rapidly
decreases as ΔP/H exceeds a threshold value of 2.5–3 MPa/km and almost drops to the pre-treatment
rate at ΔP/H above 4.5–5.0 MPa/km. This means that newly created fractures persist at ΔP/H <
(ΔP/H)thr = 2.5–3 MPa/km and close at ΔP/H > 2.5–3 MPa/km.

Thus, Version 1 (Single-Stage Energyfrac) is effective as applied to wells operating at normalized

differential pressures below 2.5–3 MPa/km. Most wells of this kind are naturally flowing or gas-lift
ones. In these wells, the fluid level is close to the surface, which is possible only when the formation
pressure is high. Naturally flowing or gas-lift wells are best suited for effective stimulation by
Version 1. Stimulation results for wells treated by Version 1 are listed in the table.

Daily oil production Water cut

Well no. Vertical depth Differential barrels/day Increase in vol %
ΔP/H
Oilfield H pressure ΔP daily oil
MPa /km
Rock m MPa before after*) production % before after*)

1321 Enoruskinskoe
1185 3.1 2.6 5.7 29 410 8 8
carbonate

343 Serginskoe
2221 6.6 3.0 6.3 25 300 68 24
sandstone

122 Gubkinskoe
2732 2.0 0.7 50 110 120 -- --
sandstone

*) One month after stimulation.

2. Wells best suited for stimulation by Version 2 (Two-Stage Energyfrac with acid
treatment) and Version 3 (Two-Stage Energyfrac with proppant)

Oil production in wells with low formation pressure requires the use of pumps. When pumps are used,
the fluid level in the well is substantially lowered and the normalized differential pressure is generally
higher than 3 MPa/km. In wells of this kind, fractures will close unless subjected to an additional
treatment that prevents fracture closure. Carbonate reservoirs are effectively treated by
acidizing. Pumping wells in carbonate reservoirs are best suited for stimulation by Version
2. In sandstone reservoirs, fractures are effectively held open by propping. Pumping wells in
sandstone reservoirs should be stimulated by Version 3.

ILLUSTRATIONS

OIL WELL STIMULATION BY FORMATION FRACTURING

1. AVAILABLE METHODS

Hydraulic Fracturing (Hydrofrac)

Advantage

 Successful treatment of any well

Disadvantages

 High cost, several hundreds of $K

 High-pressure equipment required for pumping a proppant-carrying gel into the formation

High Energy Gas Fracturing (HEGF)

Advantage

 Low cost, several tens of $K

Disadvantages

 Applicability only to wells operating at low differential pressures, as naturally flowing and gas-
lift wells
 Use of fire/explosion hazardous propellants
 2. NEW METHOD: ENERGY FRACTURING (ENERGYFRAC)

Advantages

 Low cost, several tens of $K

 Successful treatment of any well
 Fire and explosion safe
 No special equipment is required
 Can be used by any oil-producing or oil service company
 The key chemicals are environmentally friendly

Version 1. Single-Stage Energyfrac

Best suited for naturally flowing and gas-lift wells

Version 2. Two-Stage Energyfrac with acid treatment

Best suited for pumping wells in carbonate reservoirs
Stage 1. Fracturing is performed as in Version 1.
Stage 2. Acid is pumped into the created fractures.

Version 3. Two-Stage Energyfrac with proppant

Best suited for pumping wells in sandstone reservoirs

Stage 1. Fracturing is performed as in Version 1.

Stage 2. Proppant gel is pumped into the created fractures.
 PROPOSALS FOR COOPERATION

Version 1 (Single-Stage Energyfrac)

This version is designed for stimulating wells with high formation pressures (naturally flowing
and gas-lift wells). The version is fully developed. It has demonstrated a high efficiency when tested
on wells in Russia. The patent rights to this version are owned by V.G. Slutsky, S.A. Tsyganov, and
E.S. Severin. The Patent Owners are willing to negotiate the transfer of their rights to this technology
version with an interested party (Organization).

Possible scenario for transfer of rights

The Patent Owners perform demonstration treatments of several wells under a contract between the
Patent Owners and the Organization. The wells are chosen by the Organization in coordination with
the Patent Owners. The Patent Owners cover both chemical procurement costs and travel expenses.
The services provided by workover and geophysical crews are paid for by the Organization. If the
ensuing increase in average production rate exceeds a stipulated percentage of the pre-treatment
production rate, then the rights to the technology are transferred under the terms and conditions of
the contract.

Version 2 (Two-Stage Energyfrac with acid treatment)

This version is designed for stimulating wells with low formation pressures (pumping wells) in
carbonate reservoirs. This version is currently being developed. The Developers are the Patent
Owners for Version 1.

The stimulation technology consists of fracturing performed as in Version 1 and subsequent acid
treatment of the created fractures. The Developers are willing to cooperate on completing the
development of the version.

Possible scenario for cooperation

The Developers perform a series of tests of Version 2 under a contract between the Developers and an
interested party (Organization). The Organization covers chemical procurement costs and travel
expenses of the Developers, as well as services provided by workover and geophysical crews. If the
ensuing increase in average production rate exceeds a stipulated percentage of the pre-treatment
production rate, then the rights to the technology are transferred under the terms and conditions of
the contract.

Version 3 (Two-Stage Energyfrac with proppant)

This version is designed for stimulating wells with low formation pressures (pumping wells) in
sandstone reservoirs. This version is currently being developed. The Developers are the Patent
Owners for Version 1.

The stimulation technology consists of fracturing performed as in Version 1 and subsequent pumping
of a proppant gel into fractures. The Developers will be willing to cooperate on completing the
development of Version 3 after the rights to Version 1 or 2 of the technology are transferred to an
interested party.