Exploiting the ROZ in

Lithuania Thomas M. Haselton

Minijos Nafta

Presented at the 19th Annual CO2 Flooding Conference

December 14, 2013

Midland, Texas December, 2013

REPUBLIC OF LITHUANIA

EU MEMBER STATE

December, 2013

OVERVIEW

• Quick Review of ROZ Concept

• The ROZ in Minijos Nafta license area Lithuania

• How could it be exploited

December, 2013

Minijos Nafta

• 8 small existing oil fields

• Produced 15 million

barrels of oil

December, 2013

THE ROZ BACKGROUND

(Residual Oil Zone)

Next 3 slides from Steve Melzer

December, 2013

Original Accumulation with a Breached

then Repaired Seal & Forming a ROZ

ORIGINAL POST BREACH

TYPE 2 ROZ

December, 2013

CONVENTIONAL PAY

RESIDUAL OIL ZONE (”ROZ”) PAY

CHARACTERISTICS:

• Oil shows while drilling • Oil saturation < 50%

• Tests water + some oil

BREACHED FIELD ”NATURAL WATERFLOOD”

10-30% of OIIP CAN BE PRODUCED WITH CO2

December, 2013

THE CONCEPT OF RESIDUAL OIL PRODUCTION WITH CO2 (Midland Basin, Texas example)

December, 2013

Total, Primary, Waterflood, Main Pay and ROZ CO2 Performance

(the Concept of "Brownfield" Quaternary Oil)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

0 10 20 30 40 50 60 70 80 90 100

Year

An

nu

alize

d O

il P

rod

uc

tio

n in

bo

pd

TOTAL OIL - bopd

Proj Primary-bopd

Proj Waterflood-bopd

Main Pay EOR Baseline

Quat 2.0 Oil - bopd

Primary

Production

Peak

Tertiary CO2

Production

Peak

Secondary

Production

Peak

Quaternary CO2 ROZ

Production Peak

Primary

Cum = 125

mm bbls

Secondary

Cum = 325

mm bbls

Tertiary

Cum = 200

mm bblsProjected

Quaternary

Cum = 200

mm bbls

ROZ

LITHUANIA

December, 2013

MINIJOS

NAFTA

PRODUCING

FIELDS

-1,975

OWC

December, 2013

• MN oil

trap 20m

• MN

ROZ

70m

December, 2013

Vilkyciai-15

December, 2013

OWC

ODT

OWC selected at –1970m on basis well flow

tests but oil is seen down to -2040m with oil

saturations of 40-60%.

70.48 BWPD

7.3 BWPD

OWC

Deglai-7 Deglai-1 Deglai-4 Deglai-3 571m 1236m 772m

1.5BWPD

Typical Well Correlation in MN

License

ODT

December, 2013

CROSS-SECTION BELOW; ALL RESERVOIRS BELOW OWC

OIL-WATER-CONTACT –1,973

BASE of OIL SATURATION (”BOSO”)

–2,040

65 m RESIDUAL OIL ZONE

(ROZ)

S N

THICK RESIDUAL OIL ZONE EXISTS IN LITHUANIA

December, 2013

Sources of CO2

• Lithuania up to 4-5

million tons/year

within 200 km

• Import via LNG

terminal

• Ideal Solution would

be a local power plant

or fertilizer plant from

which to extract CO2

December, 2013

December, 2013

City Company

name

Business

description

Annual

Heat

output,

MWh

Main fuel Annual

CO2

emission

in tons

Average

daily

CO2

emissio

n in

tons

Distanc

e from

CO2

injectio

n point,

km

Mazeiki

ai

AB "ORLEN

Lietuva"

Oil refinery Natural gas

and heavy oil

1,565,371

4289 100

AB "ORLEN

Lietuva"

power plant

Produces and sells

heating energy and

electricity

1,030,131

Heavy oil

350,245

960 100

N.

Akmen

e

AB

"Akmenės

cementas"

Cement production

2,882,172

Natural gas,

heavy oil,

coal recycled

rubber

979,938

2685 130

Elektre

nai

AB "Lietuvos

elektrinė"

Produces and sells

heating energy and

electricity

1,939,424

Natural gas

and heavy oil

659,404

1807 230

Kaunas UAB "Kauno

termofikacin

e elektrinė"

Produces and sells

heating energy and

electricity

1,642,198

Natural gas

and heavy oil

558,347

1530 200

Jonava AB

"Achema"

Manufacture of

fertilisers and

nitrogen

compounds

Natural gas

2,090,000

5726 200

December, 2013

December, 2013

• Orlen Refinery

• Achema

• Akmenes

• Power plants

Operations to Date

• Injected 1,000 tons

CO2 into Degliai-1

producing zone

• Produced oil back

• Currently injection into

Pociai-3 ROZ JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2012 2013

0.1

0.5

1

5

10

Daily

Oil

, m

3

Phase : Oil

Case Name : Case1

b : 0

Di : 0.0819106 A.n.

qi : 1.33525 m3

ti : 05/18/2013

te : 11/30/2016

End Rate : 1 m3

Final Rate : 0.999372 m3

Cum. Prod. : 32.8886

Cum. Date : 05/18/2013

Reserv es : 1.4977

EUR : 34.3863

Forecast Ended By : Rate

Forecast Date :

December, 2013

Degliai-1

• Injected above OWC

• temperature logs

• Local cheap version of

a single well tracer test

December, 2013

Degliai-1 CO2 Injection Results

• To date produced

approximately

400 m3 of

incremental oil

(2,500 barrels)

• Producing

approximately 1

ton (7 barrels) of

oil per ton of

CO2 produced

December, 2013

Pociai-3

• Test produced well for

6 months—2-3 bpd

• Flushed zone with

water

• Currently injecting 500

tons in ROZ

• Shut in for 1 month

and produce back

December, 2013

Current Operations

December, 2013

Logistics

• Gas pipeline

through license

area

• LNG terminal to

be completed in

2014

• In theory both

could also be

used for CO2 December, 2013