| Frequently Asked Questions & Answers |
| 1 |
Caprock: |
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What is the Caprock. |
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Up to 100 foot of lime, silt, and shale above Cromwell. |
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Union Valley Lime |
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| 2 |
Caprock: |
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What is the character of this rock. |
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Impermeable shale, limestone |
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Well-compacted shale/limey formation |
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| 3 |
Caprock: |
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What maximum pressure can this maintain. |
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At least 1400 psi |
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Original pressure was in excess of 1400 psi |
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| 4 |
Clients: |
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Storage clients are available |
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Several pipeline companies. |
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Power Plant operators |
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Power Marketers |
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Gas marketers |
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Industrial & Commercial Companies |
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| 5 |
Clients: |
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How will clients be selected. |
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Up to 100 foot of lime, silt, and shale above Cromwell. |
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| 6 |
Clients: |
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What are their financial abilities. |
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Excellent on UTILITIES. |
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Excellent on PIPELINES. |
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Variable on GAS MARKETERS |
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| 7 |
Completion: |
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Any control wells. |
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Control wells are strategically spaced throughout the reservoir. |
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| 8 |
Completion: |
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What type of completions. |
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At least SIX high deliverability HORIZONTAL wells |
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Surface string |
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Production string |
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Tubing string |
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| 9 |
Costs: |
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What is the AFE per well. |
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Well costs are within industry averages |
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| 10 |
Costs: |
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What is the project AFE. |
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Overall costs depend on level of operations required.. |
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| 11 |
Economics: |
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How does gas spot price affect economics. |
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No effect, storage operators make money on renting space not gas. |
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| 12 |
Economics |
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What are the economics of operation. |
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Storage Fees will vary with type of use. |
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Unigas shall use “market based rates |
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| 13 |
Field: |
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Are there similar zones in Oklahoma used for storage. |
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Yes |
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Several existing gas storage systems are in Oklahoma.. |
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| 14 |
Field: |
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How large a project is this |
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Covers 6 sections areally, actual needed storage acreage is less than 1400 acres. |
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Unigas has control of 2,680 acres per OKCC order 397,170. |
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| 15 |
Field: |
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How many wells are on location. |
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Several wellbores drilled in this area. |
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Only 40 wells drilled through the Cromwell. |
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| 16 |
Field: |
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What is the acreage size. |
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1400 acres needed. |
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Total acreage 3840 acres. |
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| 17 |
Field: |
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What is the original pressure of the field. |
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Greater than 1400 psi. |
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Field first tested in 1925 |
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| 18 |
Field: |
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What type of field is this. |
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Depleted dry gas field. |
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No condensate production. |
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No water production, absolutely no water drives. |
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Very little oil production |
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| 19 |
Financing: |
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What type of financing is envisioned. |
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100% project financing is available. |
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| 20 |
Financing: |
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Which groups will finance project. |
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Open to all financial types. |
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| 21 |
Formation: |
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What logs are available. |
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Drillers Log |
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Electric logs |
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| 22 |
Formation: |
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How good are the logs |
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Drillers log excellent |
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Original Electric logs are industry quality |
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| 23 |
Formation: |
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Are there any clays or other possible swelling problems involved |
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None |
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| 24 |
Formation: |
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How deep is the zone |
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3100 feet |
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about 2400 feet subsea |
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| 25 |
Formation: |
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How much closure is there |
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structure map shows 100 feet of closure. |
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NE - SW trending anticlinal structure. |
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| 26 |
Formation: |
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How thick is the zone. |
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20 to more than 80 feet pay thickness |
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Closure in excess of 70 feet.. |
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| 27 |
Formation: |
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Is an isopach map available. |
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Yes. |
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Structure is dual-domed anticline. |
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| 28 |
Formation: |
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Is there any water production. |
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None |
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| 29 |
Formation: |
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What are the rock properties of this zone. |
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Highly porous estimated porosity = > 18% |
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High deliverability estimated permeability => 100md |
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Low water saturation less than < 35% |
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| 30 |
Formation: |
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What is the projected storage zone in this field. |
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Primary storage in the CROMWELL sand. |
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Secondary storage is possible in the BOOCH sand |
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Tertiary storage possibilities available in the GILCREASE sand. |
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| 31 |
Formation: |
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What type of trap is this zone. |
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Primarily Structural trap |
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Minimal stratigraphic effects |
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Closure is 100 feet |
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| 32 |
Formation: |
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When were the logs made. |
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Drillers logs on drilling |
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Electric logs 1940s, 1950s, 1970s and later |
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| 33 |
Gas: |
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Deliverability in excess of 600 MMCFD depending on initial pressure |
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Up to 500 MMCFD for 20 days |
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Up to 300 MMCF for 60 days |
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| 34 |
Gas: |
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How much is cushion gas |
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10 BCF to 15 BCF cushion depending on operational needs |
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Cushion Gas may be purchased or leased |
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| 35 |
Gas: |
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How much is working gas |
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15 BCF gas minimum |
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30 BCF gas Maximum |
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| 36 |
Gas: |
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What is maximum deliverability |
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Up to 1,000 MMCFD |
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Typically 300 - 500 MMCFD |
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| 37 |
Maps: |
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Types of maps available |
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Areal |
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Isopach |
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Structural |
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Well data |
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Production |
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Well cumulative production |
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| 38 |
Operations: |
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Who will manage it |
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Developer can also |
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UTILITY COMPANY CONTRACT OPERATOR can operate the storage facility |
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| 39 |
Operations: |
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What type of compression is needed and when |
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About 6,000 HP minimum |
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About 24,000 HP maximum |
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Depending on operations of storage and pipelines |
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Combination of leased and owned compression |
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| 40 |
Operations: |
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What type of gas conditioning is needed |
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Minimum |
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Gas is very dry |
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| 41 |
Owner: |
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What is the ownership |
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Unigas and Investor Partners |
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| 42 |
Owner: |
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Who are the owners |
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As of December 2006 UNIGAS Corp is sole owner |
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| 43 |
Owner: |
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Who is project developer |
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UNIGAS is Primary owner-developer |
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| 44 |
Pipelines: |
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What pipelines service the area |
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ONG |
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TRANSOK |
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SEAGAS |
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CENTERPOINT (ARKLA) |
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KINDER MORGAN |
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DUKE |
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ENOGEX |
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Local Lines |
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| 45 |
Pressure: |
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What is the storage reservoir design pressure |
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Maximum 1250 psi |
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Minimum 200 psi |
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| 46 |
Pressure: |
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Maximum storage pressure |
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Maximum = 1250 psi |
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| 47 |
Pressure: |
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Minimum pressure of project |
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Minimum pressure = 200 psi |
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| 48 |
Pressure: |
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What is the maximum drawdown pressure |
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Maximum delta pressure 1000 psi |
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| 49 |
Production: |
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What deliverability did the wells have when drilled |
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Best well = 150 MMCFD |
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Worst well = 10 MMCFD |
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| 50 |
Production: |
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What is the cumulative production from this field |
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TOTAL CUMULATIVE about 50 BCF |
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| 51 |
Wells: |
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How many producing |
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A few CROMWELL producers at marginal rates |
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| 52 |
Wells: |
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How many are available for injection |
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About 20 wells for injection, use existing and new wells |
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Horizontal drilling - 6 wells |
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| 53 |
Wells: |
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How many wells are needed for production |
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Production available from 6 Horizontal and 10 Vertical wells |
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