CJS FLATpakTM & HSPCP - Revolutionary Artificial Lift Technologies

Scott Kiser - Business Development Advisor CJS Coiled Tubing Supply Ltd. Calgary / Lloydminster March 2011

What is FLATpakTM
FLATpakTM is a uniquely designed multiple conduit bundle that:
CONVEYS hydraulic and electric subsurface pumps POWERS these pumps Receives PRODUCTION from these pumps Is installed by conventional coiled tubing units Utilizes complete Canadian class 1+2 safe operating practices

Why Was the FLATpakTM Developed

The FLATpakTM was developed to
Efficiently & safely convey hydraulic based pumps in a live well environment Replace jointed production tubing and rods Eliminate the Conventional Rig for installation Combine multiple services into one & reduce surface footprint Provide flexibility in design and function Permit temporary well intervention with artificial lift systems

FLATpakTM Component Specifications

Carbon Steel Coiled Tubing High strength 70/80k grade, various gauges High tensile strength Outstanding cycle life Well understood mechanical and chemical properties External FBE coatings enable use in mild H2S/CO2 environments for closed hydraulic systems

Alternative Tubular Materials 304 SS, 316-L SS Lean duplex alloy 19D & LD2304 Alternative hi temp acid resistant injection molded thermo plastic tube - polyphenylene sulfide (RytonTM) Carbon steel capillary tubes

Encapsulation Specifications
Material
Vulcanized thermoplastic (PP/EPDM) TPV temperature rating (+135C) Alternative hi temp materials MPH340G (+170C) & MPH400G (+200C) under development Abrasion resistant, chemical resistance to oilfield solvents, chemicals and brine Field tested by CJS in gas wells, heavy oil wells and liquids rich gas applications Has been used for eons for capillary tubing protection and SCSSV installations

How is FLATpakTM Manufactured

Industrial plastic extrusion line used for encapsulating multiple tubes

Extrusion die delivers formed matrix with uniform dimensions as designed

Finished product spools uniformly onto standard drums

Dimensions for HSP Umbilicals

Description
0.75 x .075 1 x1 x1 1.5 x ! x ! x 1.25 1.0 x 1.0 x 1.75 plus .25 cap + .25 single conductor wire

Dimensions
1.81 x 0.90 3.45 x 1.25 4.575 x 1.73 4.90 x 2.00

Weight lbs/ ft
1.52 3.45 3.95 5.11

Cross Section

Umbilical Configuration

How is FLATpakTM Installed

FLATpakTM is installed with conventional coiled tubing units Specialized injector chains, BOPs, hanging and pulling equipment is manufactured and supplied by CJS to facilitate FLATpakTM operations. Specialized Injectors are used for heavier FLATpakTM strings

CJS HSPCP

New system developed by CJS fourth quarter 2010 to combat high maintenance costs and difficulty in operating rod driven progressive cavity pumps on a horizontal axis Rigorous bench testing evidences no wear on internal components of hydraulic driver following several weeks of testing First two systems run in February 2011 into 800 meter CHOPS wells near Lloydminster Driver delivers 0 690 ft/lbs of torque @ 50 200 RPM. Testing shows 380 ft/lbs of torque at 100 RPM required to pump 90 bopd of 10,000 centipoise oil from 1400 meters depth Future plans to reduce OD of pump from current 5.75 to support lower duty jobs in tighter casing environments

Company: Location:
KB ELEV(m)

Well Profile
Husky Energy 100/15-19-48-4W4 Gary Heffner
KB - THF(m)

Date: Ticket #:

18-Feb-10

CJS FlatPak Hydraulic PCP A Game Changer

Company Rep: CJS Rep:
PBTD(mKB)

Sheldon Minish
Lower Perfs

GL ELEV(m)

KB - GL(m)

Upper Perfs

4.44 Casing SizeCasing Wt. 244.5 mm 53.6 kg/m

Horizontal Primary Pressure 0.00 KPA Secondary Pressure KPA

CJS of Lloydminster introduces(Tubing String) its Hydraulic Progressive Downhole Descripton From Bottom up Description Length (m) Top of mKB O.D.(mm) Cavity Pump System which facilitates: I.D. (mm)
95.25 N/A 114.30 76.20 106.72 76.20 73.03 N/A 106.72 76.20 146.05 63.50 87.88 62.00 101.60 N/A 101.60 N/A 143.51 N/A 146.05 N/A 151.89 N/A 151.89 N/A 124.53 See below

825.45 825.35 825.00 824.85 PC Pump landings in heal of horizontal and deviated wells to 820.45 819.97 optimize production rates without rod and tubing wear 819.65 816.57 816.37 Chemical injection at the pump intake via a capillary included in 816.21 the FlatPak 815.52 815.42 815.22 Well optimization and prevention of well pump-off via data 815.12 2.59

systems and sensor wire included in the FlatPak

KB difference

Tubing Bottom 3.5 EUE Bull Plug Slotted Chemical Injection/Intake Sub Shaved and Bevelled Coupling, 3.5 EUE X 2 7/8 NUE 5-E-18 Euro Pump Stator SN 1160 Rotor SN 10537 Spacer Sub Y Production Sub 2 7/8 Pup Joint, 8 ft Wiper Cone Sub Seal Sub Hydraulic Motor (Square 101.6 mm X 101.6 mm) Serial #001 Top Connector Distance from Bear paw to top connector Bear Paw Flat Pak 1"CT X1 3/4" CT X 1"CT X 1/4" Tube X 4mm wire

0.10 0.35 0.15 4.40 0.48 0.32 3.08 0.20 0.16 0.69 0.10 0.20 0.10 812.53 2.59

0.00

Elimination of space out error as the rotor is pre-installed in the correct position prior A@'B+C:('- *+,; D3E $$#7 %% 23E 75#8! %% F E$#1! % to pump installation Provision for reversing the pump to self-flush
!"#$ %% &'() *+,(-. /0)) !#!1 %% 23 !4#56

Standard coiled tubing cleanouts to the top of the rotor and $ %% ?(@; standard side entry cleanouts *+,(-. /0)) !#$1 %% #23 75#8! %% $$#7 %% &'()
8#7 %% 9:0(-);<<*+,(-.= /0)) #>11 %% #23 $#66 %%

The running of multiple conduits and electrical cable deployed in a single operation with a conventional coiled tubing unit Elimination of the drive head and stuffing box minimizing moving parts and assuring minimal environmental impact Notes
1

Descripton

Serial # CJS 002

Elimination of tubing rotators

Pressure operated Check Valve: Opening Pressure 10340 kPa Side Entry Wellhead 7 1/16 2000 psi X 11" 2000 psi X 2 3/8 EUE

Elimination of no turn tools as system is torque neutral

Deploying HSPC Pump/with FLATpak

Deployed with 25.4 mm Hydraulic lines. 44.45 mm Coil as Production String Can Clean out on Back Side. Reverse Pump and Clean out up Tubing. 800 ft-lbs of torque at tool. Do not need to use the rig. No surface drive head require. Reduced downhole equipment

Pressure Drop and Viscosity versus Tempurature for Lloydminster Heavy Crude at 800 m of 44.4 mm Coil Tubing at 15 m^3/day

HSPCP FLATPakTM Umbilical

ENCAPSULATION MATERIAL: SANTOPRENE PROFILE: 4.905 x 2 COLOR: BLACK WEIGHT:.1.30 lb/ft SCALE 0.500

1" TUBING (2) 1" O.D. x .? WALL WEIGHT: .? lbs./ft 1 3/4" TUBING (1) 1 3/4" O.D. x ? WALL WEIGHT: ? lbs./ft 1/4" TUBING (1) 1/4" O.D. x .? WALL WEIGHT: .? lbs./ft 4.903 2 CONDUCTOR ELECTRICAL (APPROX. (1) 1/4" O.D. WEIGHT: .? lbs./ft TOTAL WEIGHT: ? lbs/ft 2.00 1 TUBE 2 PLCS. 2 CONDUCTOR ELECTRICAL APPROX. 1/4" 1/4") .125 12 .10 4 PLCS. .125

1/4 TUBE

1-3/4

TUBE

!"#$%&'()*%+,'$%-&.+)/
THIS DRAWING CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION AND IS PROTECTED BY COPYRIGHT. IT MAY NOT BE REPRODUCED, TRANSFERRED, OR USED TO CONSTRUCT ANY ITEM OTHER THAN THAT FOR WHICH IT WAS ISSUED WITHOUT PRIOR WRITTEN CONSENT FROM HAYES INDUSTRIES, LTD. TOLERANCES (EXCEPT AS NOTED) DECIMAL .XXX .03 .XX .03 DWN. BY DATE: CLIENT: SIZE CONCENTRIC: .002 ANGULAR: .25 WORK ORDER SHEET

TSB 11/02/10

CUTSHEET EXTRUSION - 4.905 x 2.00 FLATPACK SANT.,MT(1)1 3/4",(2)1",(1)1/4",(1) 2 CON. ELEC.

SCALE

0.750

PART NUMBER DRAWING NUMBER

0002232 0002232
REV.

1 of 1

First Field Applications

First Field Applications

First Field Applications

First Field Applications

Company: Location:
KB ELEV(m)

Well Profile
Date: Ticket #: Sheldon Minish
Upper Perfs Lower Perfs

Husky Energy

18-Feb-10

100/15-19-48-4W4 Gary Heffner

KB - THF(m)

Company Rep:

CJS Rep:
PBTD(mKB)

GL ELEV(m)

KB - GL(m)

4.44 Casing SizeCasing Wt. 244.5 mm 53.6 kg/m

Horizontal Primary Pressure 0.00 KPA Secondary Pressure KPA

Downhole Descripton From Bottom up (Tubing String) O.D.(mm) I.D. (mm) 95.25 114.30 106.72 73.03 106.72 146.05 87.88 101.60 101.60 143.51 146.05 151.89 151.89 124.53

Description

Length (m) Top of mKB 0.10 0.35 0.15 4.40 0.48 0.32 3.08 0.20 0.16 0.69 0.10 0.20 0.10 812.53 2.59

Tubing Bottom N/A 3.5 EUE Bull Plug 76.20 Slotted Chemical Injection/Intake Sub 76.20 Shaved and Bevelled Coupling, 3.5 EUE X 2 7/8 NUE N/A 5-E-18 Euro Pump Stator SN 1160 Rotor SN 10537 76.20 Spacer Sub 63.50 Y Production Sub 62.00 2 7/8 Pup Joint, 8 ft N/A Wiper Cone Sub N/A Seal Sub N/A Hydraulic Motor (Square 101.6 mm X 101.6 mm) Serial #001 N/A Top Connector N/A Distance from Bear paw to top connector N/A Bear Paw See below Flat Pak 1"CT X1 3/4" CT X 1"CT X 1/4" Tube X 4mm wire KB difference

825.45 825.35 825.00 824.85 820.45 819.97 819.65 816.57 816.37 816.21 815.52 815.42 815.22 815.12 2.59 0.00

A@'B+C:('- *+,; D3E $$#7 %% 23E 75#8! %% F E$#1! %

!"#$ %% &'() *+,(-. /0)) !#!1 %% 23 !4#56

$ %% ?(@; $$#7 %% &'() *+,(-. /0)) !#$1 %% #23 75#8! %% 8#7 %% 9:0(-);<<*+,(-.= /0)) #>11 %% #23 $#66 %%

Notes
1

Descripton
Pressure operated Check Valve: Opening Pressure 10340 kPa Side Entry Wellhead 7 1/16 2000 psi X 11" 2000 psi X 2 3/8 EUE

Serial # CJS 002

First Field Applications

Crude Viscosity: 22,000 Centipoise Average Daily Production: 4.5 M3

Operating Speed: 100 RPM Torque: Approximately 150 ft/lbs

Maximum Motor Torque: 640 ft/lbs Maximum Speed: 200 RPM

First Field Applications

Crude Viscosity: 22,000 Centipoise Average Daily Production: 9.0 M3

Operating Speed: 80 RPM Torque: Approximately 185 ft/lbs

Maximum Motor Torque: 640 ft/lbs Maximum Speed: 200 RPM

CJS COILED TUBING SUPPLY LTD.

Scott Kiser Business Development Calgary, AB, Canada, scott@cjsflatpak.ca (403) 463-4740