OUR MISSION: OUR MISSION: OUR MISSION: OUR MISSION:

TO RELEASE THE WEALTH STILL TO RELEASE THE WEALTH STILL TO RELEASE THE WEALTH STILL TO RELEASE THE WEALTH STILL
TRAPPED IN OIL RESERVOIRS TRAPPED IN OIL RESERVOIRS TRAPPED IN OIL RESERVOIRS TRAPPED IN OIL RESERVOIRS
OIL IS TOO PRECIOUS TO BE
LEFT IN THE RESERVOIR
CARBON OIL ASA
2











The days of easy oil is are gone

OIL RESERVOIR STIMULATION BY:

1. Mechanical vibrations:
The CARBON OIL Well Hammer

2. Electrical heating:
The CARBON OIL Well Heater












3
BASIC PRINCIPLE FOR THE CARBON OIL
OIL RECOVERY TECHNOLOGIES (CORT)

The CORT offers a new and unique EOR technology to improve the oil
production and recovery rate from land based oil field, which dramatically can
increase the economy of an oil reservoir.

Knowing that the major part of the oil is still remaining in the strata when an oil
reservoir is abandoned, the CORT may give the following scenario:



4

Description of the CORT System

The CORT system is an enhanced recovery method specially designed for
land-based oil fields. The principle is based on stimulating the oil-bearing
strata electrically and sonically to increase the oil flow.

This stimulation is done by introducing special vibrations into the strata. These
vibrations are as close to the natural frequency of the rock matrix and/or the
fluids as possible.

The vibrations give rise to several effects in the fluids and remaining gases in
the strata. They decrease the cohesive and adhesive bonding, and they reduce
the capillary forces, thereby allowing the hydrocarbons to flow more easily in
the formation.

The vibrations that propagate into the reservoir as elastic waves will change
the contact angle between the rock formation and the fluids, and thereby
reduce the hydraulic coefficient of friction.


5
This allows a greater oil flow
towards the wells where the
velocity increases dramatically,
which leads to a greater pressure
drop around the well. The elastic
waves give rise to an oscillating
force in the strata, which
accelerates each of the fluids,
the elements, oil, water and rock
differently because of their
different densities. The different
accelerations cause the fluids to
rub against each other and
create frictional heat, which in
turn reduces the surface tension
on the fluids.

In addition to these effects, the
vibrations releases trapped gas
that contributes to a substantial
gas lift of the oil. Furthermore,
the oscillations create oscillating
sound waves that create a
sonic pressure that contributes
to the oil flow.

Heat is also applied to the
reservoir to further increase the
pressure in the oil field since its
natural pressure has been
reduced. The heat is supplied
both as friction heat from the vibrations, and also by injecting an alternating
current into the wells. The reservoir is in effect a conductor, and the electrical
current flowing between the wells makes the reservoir function in a manner
similar to an electrode furnace because of resistance heating. The heat gives
rise to a partial evaporation of water and the lightest fractions of the
hydrocarbons and remaining gases in the oil. The alternating current causes
the ions in the fluids to oscillate and thereby creates capillary waves in the
fluid interfaces. This reduces the surface tension, a phenomenon we have
named The In Situ Electrified Surfactant Effect (IESE).

The total heat created both from the electrical stimulation and from the
vibrations, reduces the viscosity of the fluids (i.e. makes them thinner).

The oil flow acts as a cooling medium that allows an even greater energy
density to be applied to the oil-producing wells.




6
TOTAL EFFECT OF THE ELECTRIC AND
VIBRATION STIMULATION
7
THE CARBON OIL Well Hammer
CONCEPT


The CARBON OIL Well Hammer concept
consists of the following main parts:

The CARBON OIL Well Hammer with the
following main parts:
Valve housing containing
o Valves
o Accumulator
o Pipe connection including
shock absorber
o Piston
o Ram and Anvil
o Expansion pipe with gas pipe.
Coiled tubings
Gas/Air Compressor








OPERATION OF THE CARBON OIL
Well Hammer

The Well Hammer is driven by
compressed gas of 35 bars from a
compressor or a bottle battery of gas.
The gas is injected at a constant rate to
the Hammer through a 12 mm coiled
tubing.

When the pressure in the accumulator
within the Hammer has been built up to
35 bars, a valve opens and the
accumulator drains the gas to cylinder
with a piston, which lift the ram to an
upper position. When reaching the
upper position, a valve opens and drain
the gas from the cylinder whereby the
ram is accelerated downward until
impact the Anvil. Accumulated energy
in the ram on impact is equal to E =
mv
2
/2 where m is the mass of the ram
and v velocity at impact.

Force acting on the anvil is transferred
to horizontal moving expansion wedges
8
which hit the casing and generates a shock wave of pink noise is equal to F
= mv/dT where dT is stop time. This is in the order of 5 milli sec.

Obtained peak force is P = E/dT.

After impact the valve turns and gas lift the ram to its upper position and the
process repeats.

The number of pulses each minute is regulated by the flow of gas.

Damping of the sound waves is dependant upon the attenuation factor of the
matrix and can be abbreviated from the Formation Quality Factor.

ASSEMBLY OF CARBON OIL
Well Hammer

The Well Hammer is connected to the
end of the tubing below the pump. At
the connection point the Hammer is
equipped with a Shock Absorber
reducing shock in the tubing.

The pipe for the gas supply is striped
to the tubing as for a down hole cable.

The Gas Compressor or bottle battery
is located at a convenient place by the
wellhead.

The Well Hammer can be delivered for
5,5 casing and up.

The hammer can, at present, be
operated at 1500 m depth and up.










WellHammer TECHNICAL DATA

Length: 9500 mm
Weight: 500 kg
Weight of ram: 200 kg
Max velocity: 4 m/s
Pipe: ID 12 mm
Gas pressure: 35 bars
Gas type: Natural gas or nitrogen


9

CARBON OIL Well Heater CONCEPT

The CARBON OIL Well Heater
consists of the following main
parts:

Insulated 20 ft. container
containing:
o CARBON OIL Transformer
o CARBON OIL Power
Controller
o Air conditioning
o Auxiliary equipment
Power Cables from container
to well heads.
PT 100 temperature sensor
with cable.
Instrumentation cables.



CARBON OIL Well Heater OPERATION

The power input is calculated on
the basis of present and projected
production with limitation as a
function of temperature.

Operation of the Power Controller
is fully automated when power
and temperature limit is set.

The power input is regulated
down when the set temperature
limit is reached.

Detailed operation is given in the
operating manuals.

Resistance heating, similar to an
electrode furnace, delivers the
energy.

The rate of energy injected is a
function of the casing diameter
and the fluid production. The
higher the production the higher
the energy that can be injected.

10
The total power dissipated to the external radius is:

P(r
e
) = ( V
e
)
2
2 h/ln(r
e
/r
w
)

Where V
e
is the voltage drop between r
w
= well radius at casing and r
e
= well
radius between the wells, is the electrical conductivity in the reservoir and h
is the height of the pay-zone.

As can be seen from the formula, the energy dissipation drops as a logarithmic
function.

This is explained by the fact that the current has to pass larger and larger
areas from the well. If we look upon a well consisting of cylindrical shells of
the same thickness dx, the area will increase as A
x
= 2 r
x
*h. The resistance
across each shell is R
x
=
Ax /dx where is the
electrical conductivity
expressed in Ohm m.

The situation can be
illustrated in the right
drawing.







CARBON OIL Well Heater
ARRANGEMENT


Installation of the Well Heater is designed
individually for each case, but the following
items are common to all installations:





The container should be placed on a skid as
shown right.






11
Cables from the container to each wellhead should be buried in ground as
shown right.








High voltage power from a suitable safe power supply as shown right.











Connection of power to wellhead
depends on chosen well arrangement
see below. For the simplest
arrangement, the connection can be
done as shown right.








Connection of cables for temperature
sensor can be arranged as shown
right.









Connection of the power to pay zone can be
done as below:-

Connection of the power to the wellhead.

o This requires a good cement bond and limited
amount of connate water or

Running a down well cable connected to a
contactor insulated from the tubing.

o This requires a moderate cement bond and
limited connate water (free water) or
CONNECTION
12
o Undereaming of the casing above the pay.

Connection of the cable to the tubing.

o This requires a moderate cement bond and limited connate water or
o Underreaming of the casing above the pay.
o Plastic centralizers on tubing.
o Insulation of the wellhead from the casing.
o Insulation of sucker rod from the pump jack.

By the drilling of new wells, connection can be done on the casing.

o This requires insulating the casing with glass fiber reinforced epoxy as
shown right.
o Insulation of the wellhead from the casing.
o Insulation of the sucker rod from the pump jack.


Drawing right shows the
installation in an oil field in
Venezuela where the current
is connected directly to the
casing.

THE SYSTEM CAN BE
APPLIED FOR ONE OR
THREE PHASE SYSTEMS.

In one phase systems, two
or a multiple of two wells are
used.

In three phase systems,
three wells or a multiple of
three wells are used.
























13
THE SYNERGY EFFECT OF THE SYNERGY EFFECT OF THE SYNERGY EFFECT OF THE SYNERGY EFFECT OF CARBON OILs CARBON OILs CARBON OILs CARBON OILs
TECHNOLOGIES TECHNOLOGIES TECHNOLOGIES TECHNOLOGIES

When applying both stimuli vibration and electrical heating, one obtains a
synergy effect resulting in greater production than when the stimuli are applied
individually.

The electrical heating reduces the bonding forces making the vibration move
the oil. See illustration. Imagine a car stopped on a hill by its hand brake. The
angle of the hill illustrates the pressure trying to move the car. When releasing
the handbrake to a point where the car would start rolling, then a very small
force will put the car into motion.

This synergy effect is verified by lab tests. The following graph shows 2
identical tests. The red area is one test with electrical stimulation only and the
red plus the green area is the second test with electricity and vibration.



14


SAFETY

All the electrical equipment built and
the installation done is in
accordance with international
standards.

The system is totally earthed and as
we have a single current in each
conductor, it is safe to touch any
live part - as shown right.

But, in addition to this, we
recommend following:-

Arrange a fence around the wells
or field.
Arrange shut down switches at
each wellhead or main gate.
Warning signs.



15


PROVEN TECHNOLOGY

The technologies have been proven over years with research and field tests.

The following graphs show the recovery results from 10 different lab. tests on
artificial reservoirs.




16

FIELD TEST RESULTS

BRAZIL BRAZIL BRAZIL BRAZIL

The first full-scale test of part of the CORT principle was performed in a single
well in northern Brazil in 1987 on a reservoir with the following data:

Distance between the wells 200 m
Reservoir depth 1000 m
Formation thickness 8,5 m
Pressure 1,47 x 10
6
Pa
Wellbore pressure 1,96 x 10
6
Pa
Initial temperature 37C
Permeability 4000 mD
Porosity 27%
Wellbore radius 0,0889 m
Initial water saturation 38%
Skin factor 30
Rock thermal conductivity 2,5 w/mK
Rock compressibility 2,5x10
-8
Pa
-1

Rock specific heat 800 J/KgK
Oil density 15,7 API
Oil viscosity at 37,7C 2425 cp
Oil viscosity at 104,4C 100 cp
Oil compressibility 1,02x10
-8
Pa
-1

Thermal expansion coefficient 0,0004 K
-1

Oil specific heat 2000 J/KgK
Oil thermal conductivity 0,1 W/mK
Lift Suckerrod pump

As shown below we increased oil production 3/5 fold. These results lead us to
expect a further 20% of the OOIP can be recovered. The energy consumption
was negligible.



















17


The second full-scale test was carried out in an oil field in the Bahia region in
1994/95 on a 5 spot configuration. The well in the center of the four
surrounding wells was drilled and completed with 7-in. insulated casings. The
four surrounding wells were connected as one electrode and the center well as
the other electrode.

The reservoir has the following reservoir data:


Distance between the wells 350 m
Reservoir depth 650-750 m
Formation thickness 50 m
Net pay 32 m
Pressure at 390 m 12 bars
Wellbore pressure NA
Initial temperature 45 C
Permeability 1-3 mD
Porosity 20-26%
Wellbore radius 0,0889 m
Initial water saturation 30-40%
Skin factor NA
Rock thermal conductivity 2,5 w/mK
Rock compressibility 2,5x10
-8
Pa
-1

Rock specific heat 800 J/KgK
Oil density 39,9 API
Oil viscosity 5,9 cp at 45C
Oil compressibility NA
Thermal expansion coefficient NA
Oil specific heat 2000 J/KgK
Oil thermal conductivity 0,1 W/mK
Normal production old wells 1,4 m
3
/day
Lift Suckerrod pump

An increased production of about 35% was reported before the well was lost
due to tectonic problems. During the initial period, the first generation of an
electric vibrator was tested. The results of the test were positive, but the
vibrator failed due to overall insulation problems. Based upon the experience
from this test, the present hydraulic CARBON OIL Well Hammer (vibrator) has
been developed in co-operation with Well Innovation, Norway.














18

SWEPI/GRAY LEASE, TEXAS

In 1997 we purchased an oil lease in Texas to test a new installation procedure
and a newly developed CARBON OIL Well Heater. The reservoir has the
following data:

Distance between the wells 350 m
Reservoir depth 1700 m
Formation thickness 10 m
Net pay 9 m
Pressure at 390 m 20,5 bars
Wellbore pressure NA
Initial temperature 60 C
Permeability 50 mD
Porosity 16%
Wellbore radius 0,067 m
Initial water saturation 70%
Skin factor NA
Rock thermal conductivity 2,5 w/mK
Rock compressibility 2,5x10
-8
Pa
-1

Rock specific heat 800 J/KgK
Oil density 39 API
Oil viscosity 2 cp at 54C
Oil compressibility NA
Thermal expansion coefficient NA
Oil specific heat 2000 J/KgK
Oil thermal conductivity 0,1 W/mK
Normal production old wells 7 bbl/day
Lift Suckerrod pump

The installation was arranged as shown below. The installation was arranged as shown below. The installation was arranged as shown below. The installation was arranged as shown below.


19
The installation started in February 1998 and was completed 01.04.98. The
results from the initial phase of the test-program are shown below.


The net result of the reference well was an approx. 40% increased of oil
production.

The installation procedure and the CARBON OIL Well Heater were successful.




















SWEPI OIL PRODUCTION FROM 01.01.98 TO
02.07.98
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
16
1
1
1
6
2
1
2
6
3
1
3
6
4
1
4
6
5
1
5
6
6
1
6
6
7
1
7
6
8
1
8
6
9
1
Days
b
b
l
/
d
a
yOil production
Poly. (Oil production)
Start Eureka
Trend line
20
VENEZUELA

In 1999, CARBON OIL ASA entered an agreement with PDVSA, Venezuela to
have the EEOR technology implemented in 3 shut in heavy oil wells in the oil
field Melones in the Orinoco region.

The oil field has the following reservoir data:

Field: MELONES, SAND Mu WELL 1 WELL 2 WELL 3
Well depth: Feet 2 610 2 602 2 606
Structural top of sand: Feet 2 560 2 545 2 550
Bottom of sand: Feet 2 590 2 585 2 586
Oil zone thickness Feet: ( From 2528-2595) 30 40 36
Transition zone thickness: Feet 23 23 23
Aquifier thickness: Feet 20 20 20
Well spacing: Feet 1 125 1 125 1 125
Reservoir Unconsolidated
Average permability mDarcy mDarcy 10000 10000 10000
Average porosity % 35 35 35
Water saturation Sw: % 25,00 25,00 25,00
Oil saturation So: % 75,00 75,00 75,00
GOR 90 90 90
Initial solution GOR: SCF/STB 90 90 90
Initial reservoir pressure: PSI 985 985 985
Reservoir pressure: PSI from log 940 940 940
Casing pressure: PSI 73 45 45
Temperature: F calculated 124 124 124
Oil API 10,60 10,60 10,60
Molecular weight of oil: (C7+) 537 537 537
Oil compressibility: PSI
-1
4,90E-06 4,90E-06 4,90E-06
- Specific heat: BTU/Lbs-Mol-F 150,00 150,00 150,00
- Density at 60F and 14,7 PSI Lbs-Mol/Ft
3
0,1139 0,1139 0,1139
Water compressibility: PSI
-1
7,00E-06 7,00E-06 7,00E-06
Reservoir rock compressibility: PSI
-1
4,00E-05 4,00E-05 4,00E-05
Liquid phase density: At 60F and 14,7 PSI, lbs-mol /ft
3
0,11 0,11 0,11
Parafine: Smal amount No No No
Initial oil viscosity: cP at 120F 1 300 1 300 1 300
Oil viscosity: cP at 185F 130,00 130,00 130,00
Oil viscosity: cP at 300F 11,90 11,90 11,90
Oil viscosity: cP at 500F 1,50 1,50 1,50
Dead oil viscosity: 174F:1850 cst;250 F: 358 cst 15 15 15
Gas saturated viscosity: cP at 130F ? 1,25 1,25 1, 25
Initial oil production: Well MM-406, 1956 250 230 230
Resistivity Ohm of strata: Ohm m 65,00 65,00 65,00
Casing diam in. Existing wells in. 7,00 7,00 7,00
Lift: Suckerrod P P P


21
The installation was completed December 2000 as shown in the following
photos:
























The stimulation started mid-December 2000 by injecting 450 Amps into the
reservoir.

22
After approx. one month of stimulation, the reference well produced about 50
bbl/oil/day compared to 12 bbl/day when shut in in 1993. After 4 months, the
temperature had reached 70C in the bottom zone. Th e project was terminated
in summer 2001 due to water penetration of the waterbed below the pay-zone,
caused by damaged casings.

As can be seen from the photos, the electrical installation represents no
danger as it is fully earthed.

CARBON OIL Well Heater DATA

CARBON OIL Container
o ISO 20 ft. standard, insulated auxiliary equipment and:


CARBON OIL Transformer
o Three phases or single phase.
o Voltage as required.
o Capacity as required.











CARBON OIL Power Controller
o Thyristor operated controller
containing all instrumentation
for the operating of the current.
Power cables
o Insulated single conductor
cable with core area matched
to designed current and power.



23


THE CARBON OIL PROMISE:

The ability to dramatically increase the oil production by changing the
flow conditions in the reservoir.

Increased tertiary oil-production.

No environmental constraints, as we do not use any chemicals but clean
electrical energy.

The principle is efficient with low energy costs.

The process depends only a little on the depth of the wells and the climate
at the fields.

The process is most suitable in heavy oil reservoirs and wells facing
paraffin problems.

Applications

The EEOR can be used on all land-based wells, with minor limitations related
to depth and climate conditions.

The process is especially suitable on oil fields with heavy oil or paraffin. The
combination of heat and mechanical vibration changes the viscosity of the oil,
thus making the recovery easier.

With projected recovery costs using the CORT principle in the range of US$ 1-3
per barrel, exploration of new oil fields is considerably more expensive and is
certainly much more risky than installing additional equipment in existing oil
wells where the reserves are well known.

Where other EOR methods are limited by several factors, the CORT principle
works without regardless of different depths, climatic conditions, or other
factors such as porosity, permeability, viscosity, and density in the reservoir.
The preliminary results show that the CORT principle can overcome many
temperature-related problems associated with the reservoir that limit or
preclude other methods.

24

THE CARBON OIL ENHANCED OIL
RECOVERY

Additional information about the CORT including all necessary costs and
investment schedules can be obtained from

CARBON OIL ASA
NORWAY

Oslo office:
Arbins gt. 1, 0254 Oslo, Norway
Fax.: +4722549289, Mobile: +4799700040
E-mail P. Hagerup: ph01@carbonoil.com
E-mail O. Ellingsen: oe01@carbonoil.com
Homepage: www.carbonoil.com

German office:
Carbon Oil Engineering GmbH
Elisabethstr. 30, 17235 Neustrelitz, Germany
Tel.: +493981256836, Fax.: +493981256838, Mobile: +491717716332
E-mail: j.g@carbonoil.com