a) Unconventional Resources

Advanced Resources is a pioneer and an industry-leading consultancy in the areas of Unconventional Gas (gas shale, coalbed methane and tight sands) and tight oil (shale oil).

Advanced Resources has worked on unconventional gas and oil resources for the U.S. Department of Energy since 1980, publishing an extensive variety of papers and studies ranging from resource evaluation to government policy to environmental protection technologies.

Outside of our primary focus in the USA and Canada, we also have worked extensively in some 30 other countries, including well site testing and operations in Australia, China, Chile, India, Indonesia, Poland, and South Africa.

Advanced Resources’ Experience in Unconventional Resources:

Global Perspective

• U.S. Energy Information Administration: ARI Shale Studies: 7 Continents. In 2011 and again in 2013, ARI conducted the first “global” studies of shale oil and gas resources, for the U.S. Department of Energy’s Energy Information Administration. ARI conducted extensive literature review and analysis of source rock shales, synthesized geologic data on global shale formations, and then mapped and rigorously quantified the shale oil and gas potential in 41 of the most promising countries, developing over 200 original geologic maps. While we still consider the study to be highly preliminary, it has received considerable attention, including reports in the Economist, Wall Street Journal, New York Times and other media. Several of our Major Oil clients are using the EIA-ARI study as a source to guide their global shale exploration efforts.

Regional Perspective

• Technical and Economic Assessment of Shale Gas Potential in Brazil’s São Francisco Basin. For Petra Energia, Advanced Resources performed a preliminary, high-level summary assessment to advise Petra Energia and its investors of the shale gas and tight gas sand potential in its concession holdings in the São Francisco Basin in Brazil. The effort involved: (1) review of all available geologic and engineering data on the concession areas held by Petra Energia in the São Francisco Basin, and develop possible estimated characteristics, either based on acquired data or by analogy, of those parameters critical to assessing gas shale potential; (2) development of a preliminary assessment of shale gas and tight gas sand resource potential in the São Francisco Basin; (3) development of representative finding costs, type well production profiles, and costs for the basin analog; and (4) preparation of a short, well documented report targeted at providing the preliminary assessment of resource potential, both technical and economic, of the São Francisco Basin, the key assumptions upon which this assessment was based, and the key uncertainties and caveats that should be considered in this preliminary assessment.

Project Perspective

• Gas Corporation of Botswana (BGC)/Kalahari Gas. Advanced Resources was commissioned to undertake all the consultancy aspects for CBM exploration of the BGC leases in Botswana including drilling, well testing, gas desorption, reservoir simulation, and resource assessment. Four core/test wells were drilled. BGC leases were recently rolled into Kalahari Energy who is currently developing the lease.

b) Enhanced Recovery

The use of nitrogen and carbon dioxide to improve hydro-carbon recovery in amenable depleted oil and gas reservoirs (conventional and unconventional) is an Advanced Resources research and development focus. 

Our firm has expertise in the technologies, markets, environmental and regulatory issues, and economics of CO₂ enhanced oil recovery (CO₂-EOR) in depleted oil as well as shale oil reservoirs. Also, ARI is a leading researcher in the use of N₂ and CO₂ to improve natural gas recovery from coal seam and shale gas systems.

Advanced Resources’ Experience in Enhanced Oil Recovery (EOR):

Global Perspective

• IEAGHG/DECC/UNIDO: Global Assessments of CO₂-EOR Potential and Associated CO₂ Requirements: International. ARI prepared reports for the International Energy Agency Greenhouse Gas Research Programme (IEAGHG), UK Department of Energy and Climate Change (DECC) and UNIDO that reviewed the major CO₂-EOR operations underway around the world to better understand the factors that facilitated or hindered their implementation, and developed a high-level, first-order assessment of the CO₂-EOR oil recovery and CO₂ storage capacity potential in the largest 54 oil basins of the world, using the U.S. experience as analogue. Also assessed were both traditional approaches for CO₂-EOR, along with alternative approaches that optimize both oil production and CO₂ storage. Existing CO₂-EOR operations are described, highlighting those projects pursuing or considering the co-benefits of CO₂ storage and incremental oil production. Expanding on previous work, the world-wide incremental oil production and CO₂ storage potential from CO₂-EOR is assessed assuming a set of “next generation” CO₂-EOR technologies. Other approaches to increase CO₂ storage in conjunction with CO₂-EOR are also identified and evaluated. Finally, life-cycle analyses are presented of the greenhouse gas emissions (GHG) associated with various alternatives for CO₂-EOR development.

Regional Perspective

• “Technical Oil Recovery Potential From Residual Oil Zones: Permian Basin” report prepared by Advanced Resources International for U.S. Department of Energy, Office of Fossil Energy, Office of Oil and Natural Gas, February 2006. This report provided a first of its kind, in-depth documentation of the in-place and recoverable ROZ potential in the Permian Basin. The study was carried out by demonstrating the evidence and origin of ROZs in the Basin, identifying those oil fields that lie above ROZs and using simulation methods to estimate the recovery of this vast resource. Several completion tactics were reviewed to optimize ROZ recovery, which included partially completing the ROZ to target the high oil saturation zones and flooding the ROZ with the main pay zone to make gains in flood efficiency. Overall, the work identified a potential recovery of almost 12 billion barrels of oil could be possible from a current oil endowment of approximately 31 billion barrels of oil beneath Permian Basin oilfields.

Project Perspective

• Using “Next Generation” CO₂-EOR Technologies To Optimize The Residual Oil Zone CO₂ Flood At The Goldsmith Landreth Unit, Ector County, Texas prepared for the University of Texas, Permian Basin (UTPB). The project will use real-time data acquisition and diagnostic tools to monitor CO₂ flood performance (using conformance surveys and chemical tracers to establish CO₂ flow paths and sweep efficiency). The real-time data will be linked with laboratory and bench-scale work and reservoir simulation to control and modify the CO₂ flood on a continuing basis. Incorporation of “next generation” data acquisition and control technology will help overcome the number one challenge facing CO₂ flooding - - achieving improved reservoir conformance and with it more optimum use of injected CO₂ for oil recovery.

c). Carbon Capture, Utilization and Storage

The capture and storage of greenhouse gases continues to be an Advanced Resources RD&D focus.  Where possible, the beneficial use of these emissions (e.g., CO₂-EOR) remains at the forefront of our carbon storage efforts.

Our firm has expertise in the technologies, markets, environmental and regulatory issues, and economics of the geologic sequestration of carbon capture, utilization, and storage (CCUS).

Advanced Resources’ Experience in Carbon Capture, Utilization, and Storage (CCUS):

Global Perspective

• Asia-Pacific Economic Cooperation (APEC) Feasibility Study: APEC Economies. For APEC’s Energy Working Group, ARI produced the study “Feasibility of Accelerating the Deployment of Carbon Capture, Utilization and Storage (CCUS) in Developing APEC Economies” (APEC#213-RE-01.12), which included: (1) Assess Feasibility of CCUS/CO₂-EOR in Developing APEC Economies; (2) Develop Case-Study Assessments of Selected CCUS/EOR Prospects; and (3) APEC Developing Economy Regulatory Assessments; and (4) Identify Key Issues Relevant to CCUS/EOR.

Regional Perspective

• Assessing Factors Influencing CO₂ Storage in Eastern Gas Shales. For the U.S. DOE, Advanced Resources acquires, analyze, and synthesize data on reservoir properties for selected eastern gas shales. Test new technology for monitoring the movement and fate of CO₂ in gas shales -- a smart particle early warning concept. Characterize potential constraints to economic CO₂ storage in gas shales. Develop an updated characterization of the CO₂ storage capacity and injectivity of selected eastern shales, focusing on reservoir characteristics and attributes affecting CO₂ storage capacity and injectivity.

Project Perspective

• The SECARB Anthropogenic Test, Citronelle, Alabama. The Southeast Regional Carbon Sequestration Partnership (SECARB) Anthropogenic Test is a demonstration of the deployment of CO₂ capture, transport, geologic storage and monitoring technologies. This project is one of the first and the largest fully-integrated commercial prototype coal-fired carbon capture and storage projects in the USA. Two Experimental Injection Well underground injection control permits were issued in November 2011 and they have been installed. A robust Monitoring, Verification, and Accounting (MVA) plan has been developed and implemented to monitor and track the CO₂ plume and the associated pressure field, which has passed its first full year of injection operations. In addition to Advanced Resources, project participants are The Electric Power Research Institute, Southern Company, Alabama Power, Denbury Onshore LLC and the Southern States Energy Board.

Products:

a) Advanced Resources' Model of Unconventional Gas and Oil Supply (MUGS)

Over the past 30 years (before shale and other unconventional gas resources became “respectable”), Advanced Resources has assembled a high quality data base on shale oil and gas, tight oil and gas, and coalbed methane resources. This data base is linked with Advanced Resources’ MUGS Model to establish economically viable unconventional gas and oil resources and their future rates of production, on a basin and play level. Also, the data base and a series of other input variables are linked with the MUGS Model to calculate economically viable resources, future drilling rates and future production.

Overview of Advanced Resources' MUGS Model                                                                        

• The key components of Advanced Resource’ Technology Model of Unconventional Gas Supply (MUGS) are illustrated in the figure.
• MUGS contains a series of cost-price factors that relate costs to changes in natural gas and oil prices. 
• In addition, MUGS incorporates data related to the resource base/proved reserves, costs and well performance, economic considerations and the impact of technological progress as it relates to unconventional oil and gas production.

• The U.S. unconventional gas and oil data base includes 21 basins (with 110 plays for shales); 14 basins (with 75 plays for tight oil and gas); and 11 basins (with 30 plays for coalbed methane).
• The data base provides play/basin specific estimates for technically recoverable resources, well performance and well costs.  (Well performance and costs are updated several times a year to remain relevant with the rapid changes underway in these still emerging large resources.)
• The data on well performance includes information on product type - - dry gas, wet gas (Btu/NGL content), condensate and crude oil.
• The data base and a series of other input variables are linked with ARI’s MUGS to calculate economically viable resources, future drilling rates and future production.
• The Canadian unconventional gas and oil data base includes 7 basins (with 24 plays for shales) and  3 basins (with 13 plays for tight oil and gas).

b). COMET3™ Reservoir Simulator

Advanced Resources’ COMET3™ reservoir simulator for gas shale, shale oil, and coalbed methane (CBM) reservoirs was the first of its kind in the marketplace, the initial version having been developed in the early 1980’s when both resources combined contributed less than 1% to U.S. gas supply. Since then it has remained the industry-standard reservoir simulator for these reservoir types. Advanced technical features include:

• A triple-porosity/dual-permeability option for certain gas shale, tight oil, and coalbed methane (CBM) reservoirs
• Multi-component sorption for enhanced coalbed methane (ECBM) recovery and carbon sequestration (CO₂ sequestration) applications
• A robust permeability model capable of modeling stress sensitivity

Theory

• Pekot, L.J., and Reeves, S.R.: "Modeling the Effects of Matrix Shrinkage and Differential Swelling on Coalbed Methane Recovery and Carbon Sequestration", Paper 0328, Proceedings of the International Coalbed Methane Symposium, Tuscaloosa, Alabama May 5-7, 2003. 
• Reeves, S.R., and Pekot, L.J.: “Advanced Reservoir Modeling In Desorption-Controlled Reservoirs”, SPE 71090, Proceedings of the SPE Rocky Mountain Petroleum Technology Conference, Keystone, May 21-23, 2001. (This paper also presented as Paper 0127 at the International Coalbed Methane Symposium, Tuscaloosa, May 14-16, 2001, and the International Gas Research Conference, Amsterdam, November 5-8, 2001). Available at https://www.onepetro.org/conference-paper/SPE-71090-MS.
• Sawyer, W.K., Paul, G.W., Schraufnagel, R.A.: “Development and Application of a 3D Coalbed Simulator”, CIM/SPE 90-119, presented at the CIM/SPE International Technical Conference, Calgary, June 10-13, 1990. https://www.onepetro.org/conference-paper/PETSOC-90-119.

Validation

• Law, D. H.-S., van der Meer, L. G. H., Gunter, W. D.: “Comparison of Numerical Simulators for Greenhouse Gas Storage in Coalbeds, Part IV; History Match of Field Micro-Pilot Test Data”, prepared for the 7th International Conference on Greenhouse Gas Control Technologies, Vancouver BC, Canada, September 5-9, 2004. http://www.ghgt.info/index.php/Content-GHGT9/past-conferences.html
• Law, D. H.-S., van der Meer, L. G. H., Gunter, W. D.: “Comparison of Numerical Simulators for Greenhouse Gas Sequestration in Coalbeds, Part III: More Complex Problems”, prepared for the 2nd Annual DOE Conference on Carbon Sequestration, Alexandria, Virginia, May 5-8, 2003. Available at http://www.netl.doe.gov/publications/proceedings/03/carbon-seq/PDFS/128.pdf
• Law, D. H.-S., van der Meer, L. G. H., Gunter, W. D.: “Comparison of Numerical Simulators for Greenhouse Gas Storage in Coal Beds, Part II: Flue Gas Injection”, prepared for the 6th Annual Conference on Greenhouse Gas Coalbed Technologies, Kyoto, Japan, October 1-4, 2002. http://www.sciencedirect.com/science/article/pii/B9780080442761500908
• Law, D. H.-S., van der Meer, L. G. H., Gunter, W. D.; “Numerical Simulator Comparison Study for Enhanced Coalbed Methane Recovery Processes, Part I: Pure Carbon Dioxide Injection”, SPE 75669, prepared for presentation that the SPE Gas Technology Symposium, Alberta, Canada, April 30 – May 2, 2002. Available at https://www.onepetro.org/conference-paper/SPE-75669-MS.
• Paul, G. W., Sawyer, W. K., Dean, R. H.; “Validation of 3D Coalbed Simulators”, SPE 20733, prepared for presentation at the 65th Annual Technical Conference and Exhibition of the Society of Petroleum Engineers, New Orleans, Louisiana, September, 23-26, 1990. Available at https://www.onepetro.org/conference-paper/SPE-20733-MS.

Case Studies

• Enhanced Gas Recovery and CO₂ Storage in Coal Bed Methane Reservoirs: Optimized Injected Gas Composition for Mature Basins of Various Coal Rank, Karine Schepers, SPE; Anne Oudinot, SPE; Advanced Resources International, Inc.; Nino Ripepi, SPE; Virginia Center for Coal and Energy Research 2010 SPE-139723-MS ,SPE Conference Paper. Available at https://www.onepetro.org/conference-paper/SPE-139723-MS

c). Big Oil Fields Database

The Big Oil Fields Database contains over 6,422 oil reservoirs that account for over 75% of the oil expected to be ultimately produced in the United States by primary and secondary recovery processes.

In addition, the database has the following features:

• Volumetrically consistent information on the original oil in-place endowment in each oil reservoir.
• Updated information on cumulative oil production plus remaining oil reserves for each oil reservoir, providing rigorous data on remaining (“stranded”) oil that is the target for CO2 and other enhanced oil recovery (EOR) methods.
• Reservoir-specific data on key reservoir properties that significantly influence the performance of a CO2-EOR project, including: swept-zone oil saturation, oil viscosity, reservoir heterogeneity (Dykstra-Parson’s Coefficient), oil gravity, reservoir temperature and reservoir pressure.
• Reservoir-specific data on the existing field infrastructure and activities that influence the development costs and economic performance of a CO2-EOR project, including: active and shut-in producing wells, active and shut-in injection wells, and volumes of water injection and production.
• Reservoir-specific data on any CO2-EOR activity already underway, including cumulative EOR production, the latest EOR production rate, and estimated remaining EOR reserves.

In addition, the Big Oil Fields Database contains a series of programmed sub-routines that provide output displays as well as other useful calculations for analytical purposes.

d). Advanced Resources’ Offshore Gulf Coast CO2-EOR and Pipeline Infrastructure Model

Many of the most prolific oilfields in the United States are located in the offshore Gulf of Mexico. The great bulk of these oilfields are amenable to CO2-EOR, creating an opportunity for both increasing domestic oil and gas supplies as well as generating potential large-scale commercial carbon storage opportunities.

However, the delivery of CO2 to these oilfields requires an understanding of not only the pipeline construction costs and logistics, but also the potential CO2 required to facilitate CO2-EOR demand for these giant oilfields. As such, this is the first of its kind infrastructure and demand module linking onshore CO2 hubs to offshore oilfields with CO2-EOR potential.

Features:

• Pipeline
  • Pipelines are built from onshore CO2 hubs to offshore Gulf of Mexico anchor fields, with the flexibility to adjust hub locations, if required.
  • Sizing of pipelines determined by segment length, maximum flow rate, inlet and delivery pressures, as well as operating efficiency.
  • Costs are calibrated to actual projects and consider flow rates, transmission efficiency, segment lengths, number of booster stations (if required), inlet and outlet pressure requirements, as well as the price of electricity.
• Oilfield
  • Oilfield characteristics are derived from our world class offshore big oilfield database. These parameters dictate the demand from each field necessary to produce the tertiary oil. These parameters include, among others:
    • Oil endowment and location of each offshore oilfield,
    • Depth, thickness, permeability, porosity and remaining oil saturation, and
    • CO2 demand, incremental oil production, and storage volume

Pricing:

• License purchase price is USD $75,000.00
  • Including 1st year of Support & Maintenance
  • Support & Maintenance for each year after 1st year is USD $5,000.00 per license

e). Advanced Resources’ Strategic Advantage Products and Services

Strategic Advantage, our North American Natural Gas Supply and Price Service, provides clients with mid-term supply and price projections to year 2040, including in-depth analysis of key drivers affecting the outlook for natural gas supply, demand and prices.

• Strategic Advantage (Standard Service) consists of two annual reports (in slide deck format): A comprehensive start-of-year report with an on-site presentation and a mid-year update report with a teleconference presentation.
  • The Comprehensive Start-of-Year Report is designed to provide management with fundamental information for their annual planning cycle, including:

• Our overview of the status of the North American natural gas market.
• Two projections for natural gas supply, demand and prices, reflecting two alternative expectations for world oil prices.
• Detailed supply projections by supply regions.
• Discussion of the impacts of technology progress, resource depletion and changes in industry’s cost structure on supply and prices.
• Discussion of special topics, such as infrastructure constraints, government policies and regulations affecting supply, demand and prices.
• An Excel Workbook with detailed data on annual natural gas production from each supply basin and source, including all unconventional gas basins, offshore Gulf of Mexico, onshore conventional resources, and Canada.

• The Mid-Year Report provides an update to the Comprehensive Report and highlights key developments in the natural gas industry since the first of the year.
• Strategic Advantage (Customized Service) provides the client additional options, including examination of additional input assumptions on world oil prices, alternative outlooks for LNG export capacity/utilization and other factors affecting the outlook for natural gas as well as natural gas liquids supply, demand and prices.

  The Customized Service provides long-term projections to year 2040. In addition, Customized Service clients have the ability to choose topics of special interest for more in-depth analysis, such as the nature and pace of technology progress in shale development, the status of natural gas DUCs (drilled but uncompleted), and the outlook and economic viability of associated gas from “tight oil”, among others.