Draft No 2

12/12/08

 

 

CASE STUDY ANALYSIS OF THREE WELLS TREATED WITH WC-100

AS REPORTED BY THE TEXAS RAILROAD COMMISSION

 

The following is a case analysis of three separate wells that have been treated with PetroLuxus™ products in the State of Texas. Each well analysis is broken down into four main components for this case study as follows: Well data, Injection Procedure, Production results and Operator’s comment’s by operator.

 

Well Data was provided by the well operator to the technical staff at Planet Resource Recovery, Inc. for analysis and determination of Injection protocol.

 

Injection Procedure is the protocol established by Planet Resource Recovery, Inc. technical staff and followed in the field.

 

Production Results are derived from the Texas Railroad Commission production records for independent verification.

 

Operator’s comments or evaluations were derived from written emails that can be substantiated.

 

 

Well No. 1

 

Well Data:

 

The pilot treatment of Well No. 1 with PetroLuxus™ was performed on February 14, 2008. The well is located in Gonzalez County, Texas.

 

Age of Well:    1991                       Total Depth:    11259’

Formation:      Austin Chalk               Horizontal Depth: 8243’

Type of Well:   Straight hole w/Lateral    Lateral Depth: 3016’

Size of Tubing:      2 7/8”                     Oil Grade: 37 degree API

Size of Casing: 7”


 

Injection Procedure: 

               

Total PetroLuxus™ injected – 500 gals.

Injection cost: $ 9,000.00

 

·         Bled casing down

·         Injected mixture of 125 gals. of PetroLuxus™ and 105 BBLs of Water

·         One Hour later:

                Injected mixture of 375 gals of PetroLuxus™ and 86 BBLs of Water

·         Followed one hour later with 1494 BBLs of Water on vacuum.

·         Mixture allowed to penetrate – Pump started 24 hours later.

 

Results:

 

The following stats are a measure of oil production of Well No. 1. This well is the only oil well on its lease. The oil production data for Well No. 1 were procured from reports supplied to the Texas Railroad Commission. For this comparison, oil production metrics are pre-PetroLuxus™ treatment and post. Pre-PetroLuxus treatment statistics are an average monthly oil production based on a 24 month recorded oil production and an average monthly oil production post-PetroLuxus™ treatment as provided to the Texas Railroad Commission.

 

Pre-PetroLuxus™ treatment avg. monthly oil production for 24 months was 79.42 BBLs.

 

Post-PetroLuxus™ treatment avg. monthly oil production for 7 months was 296.14 BBLs.

 


 

Operator’s Evaluation & Comments:

 

“I believe that the PetroLuxus worked on [Well No.1] to our satisfaction. It kept the well running regularly and the overall volume of fluid is better than before. In January 2008, the well made only 82 bbls of oil. After treatment in the middle of February 2008, the well made 287 bbls of oil in February 2008 and 289 bbls of oil in March 2008. The well continues to make about 40-50 bbls of total fluid per day and about 10 BOPD. The only problem was a mechanical problem with the connection on the top of the down hole pump which we have had in other wells, and which we attribute to the equipment, not the corrosion or down hole failure.

 

“It would appear that the best potential might be on wells with laterals because it allows us to lift the oil with the water put in the well and to treat the fractures better.”

 

NOTE: Well No. 1 was originally treated on February 14, 2008. It was recently retreated with PetroLuxus™ products on Nov. 4, 2008.

 

Additionally, the owner/operator has supplied Planet Resource Recovery, Inc. a list of 28 additional oil wells to schedule for treatment with PetroLuxus™ products.

 

    

Well No. 2

 

Well Data:

 

The pilot treatment of Well No. 2 with PetroLuxus™ was performed on April 4, 2008. The well is located in Gonzalez County, Texas.

 

Age of Well:    1991                       Total Depth:    7500’

Formation:      Austin Chalk               Horizontal Depth: 7500’

Type of Well:   Straight Hole              Lateral Depth: 0’

Size of Casing: 4 ½”                      Oil Grade: Not Provided

Size of Tubing: 2 7/8”                    

 

Injection Procedure:

 

Total PetroLuxus™ injected 500 gals.

Injection Cost: $ 9,000.00

 

·         Pumped 30 BBLs of water

·         Pumped 50 BBLs of water and PetroLuxus™

·         Pumped 250 gallons of PetroLuxus™ ONLY

·         Pumped 15 BBLs of Water ONLY

·         Hooked up pump truck.

·         Pumped 35 BBLs of Water and PetroLuxus™

·         Pumped 130 BBLs water and 200 gallons of PetroLuxus™ 

 

Production Results:

 

The following stats are a measure of oil production of Well No. 2. This well is the only oil well on its lease. The oil production data for Well No. 2 were procured from reports supplied to the Texas Railroad Commission. For this comparison, oil production metrics are pre-PetroLuxus™ treatment and post. Pre-PetroLuxus treatment statistics are an average monthly oil production based on a 24 month recorded oil production and an average monthly oil production post-PetroLuxus™ treatment as provided to the Texas Railroad Commission.

 

Pre-PetroLuxus™ treatment avg. monthly oil production for 24 months was 47.92 BBLs.

Post-PetroLuxus™ treatment avg. monthly oil production for 7 months was 25.50 BBLs.

 

 

 

Operator’s Evaluation & Comments:

 

 

NOTE:     Well No. 2 has not been retreated since initial treatment

 

 

                       

Well No. 3

 

Well Data:

 

The pilot treatment of Well No. 3 with PetroLuxus™ was performed on April 16, 2008. The well is located in Gonzalez County, Texas.

 

Age of Well:    1981                            Total Depth:         7080’

Formation:      Buda Formation                  Horizontal Depth:    6800’

Type of Well:   Straight Hole                  Lateral Depth:       0’

Size of Casing: Surface 8 5/8” Production 4 ½” Oil Grade:   29 degree API

Size of Tubing: 2 3/8”

 

Injection Procedure:

 

·         Bled casing down

·         Injected mixture of 125 gals. of PetroLuxus™ and 105 BBLs of Water

·         One Hour later:

                Injected mixture of 375 gals. of PetroLuxus™ and 86 BBLs of Water

·         Followed one hour later with 1494 BBLs of Water on vacuum.

·         Mixture allowed to penetrate – Pump started 24 hours later.

 

Results:

 

The following stats are a measure of oil production of Well No. 3. This well is the only oil well on its lease. The oil production data for Well No. 3 were procured from reports supplied to the Texas Railroad Commission. For this comparison, oil production metrics are pre-PetroLuxus™ treatment and post. Pre-PetroLuxus treatment statistics are an average monthly oil production based on a 24 month recorded oil production and an average monthly oil production post-PetroLuxus™ treatment as provided to the Texas Railroad Commission.

 

Pre-PetroLuxus™ treatment avg. monthly oil production for 24 months was 80.71 BBLs.

 

Post-PetroLuxus™ treatment avg. monthly oil production for 7 months was 188.25 BBLs.

 

 

Operator’s Evaluation & Comments:

 

“Here is the summary on [the Well No. 3]. This well is in the Buda, not the Austin Chalk and responded better than any other of the straight hole well. No down time in May.”

 

“The wells that have responded well are either the horizontal wells or the straight hole wells in the Buda (or with very heavy, Buda like oil). For all of the wells, we appear to be getting improved maintenance by reducing the problems. It may be that we are getting the H2S to come out as iron sulfide and reducing the corrosion.”

 

NOTE:Well No. 3 was originally treated on April 16, 2008. It was recently retreated with PetroLuxus™ products on October 22, 2008.

 

Additionally, the owner/operator has supplied Planet Resource Recovery, Inc. a list of 28 additional oil wells to schedule for treatment with PetroLuxus™ products.