CJS Production Technologies Inc.
“Committed to Production Solutions for the Energy Industry”
Innovative Energy Technology
February 2015
Scott Kiser – Business Development Director – Calgary, AB, Canada, scott@cjsflatpak.ca (403) 463-4740
CJS
The Company & its Business Model

CJS is a private Canadian company with offices in Alberta and Texas. Our
Company offers alternative artificial lift options for challenged wells to optimize
production and revenues and minimize operations costs

CJS is an intellectual property owner, manufacturer and an oilfield service
company.

CJS FlatPak umbilical, ArmorPak umbilical, JetVak, HydraPak PCP, HydraPak
HSP & ArmorPak ESP are patented or patent pending technologies.

CJS products foster production
unconventional well configurations.

Over the past six years CJS has landed approximately 600,000 feet of CT
umbilical to complement hydraulic pump trials and perform well cleanout
operations.

CJS offers its proprietary products directly to oil and gas clients and is fully
vertically integrated for ease of product purchase and accountability to our
customers.
optimization
from
conventional
and
CJS Solution
“One Product – Two Applications”
Global
Hydraulic
Pump
In 2008, CJS was approached by Global
Energy of Calgary with a hydraulic pump that
Global had developed and successfully field
trialed. This pump had been developed to
deal with the inadequacies of traditional
artificial lift systems in mature low pressure
and deviated or horizontal wells. Global had
a hydraulic pump that worked but that lacked
a safe and cost efficient method of
deployment.
CJS identified and developed a unique
coiled tubing (“CT”) umbilical to concurrently
pump hydraulic fluid to a downhole pump
while receiving production fluids to surface
through the umbilical. The result of CJS
efforts was the development of an
industry unique umbilical used for the
dual purpose permanent artificial lift and
performing well cleanout operations.
During product development, intellectual
property applications were filed by CJS on all
of its main products. To date CJS has sold
over 160 artificial lift solutions to over two
dozen client corporations including top tier
Conoco, Shell, Devon, Cenovus, Husky.
CJS FlatPak
Umbilical
Typical Traditional Pumping Styles
Conventional Service Rig for
Pump Deployment
Reciprocating Rod Drive
Pump
Progressive Cavity Rotary
Rod Drive Pump
Submersible Tubing Deployed
Electric Drive Pump
CJS Pumping Alternatives – Application 1
ArmorPak
Electric
Umbilical
Coiled Tubing Unit for Pump
Deployment
FlatPak
Hydraulic
Umbilical
FlatPak /
ArmorPak
Umbilical
ArmorPak Hydraulic
Umbilical
ArmorPak
Electric
Umbilical
FlatPak /
ArmorPak
Umbilical
Reciprocating Hydraulic Drive
Pump (Over 100 Units Sold)
Progressive Cavity Hydraulic
Drive Pump (9 Units Sold)
Submersible “Live Well”
ArmorPak Deployed Electric
Drive Pump (1rst Unit Trial)
Well Cleanout Alternative – Application 2
Typical Foam
Cleanout
Operation
Tempress
HydroPull
cleanout
Operation
CJS Non-Invasive
JetVak
Operation
(Over 600
successful jobs to
date)
Technology Scope and Reach
CJS Systems are relevant in the following circumstances
 Light and heavy oil wells
 Natural gas wells
 Enhanced oil & gas recovery fields / SAGD
 Wells from 4.5” outside diameter and greater casing sizes
 Wells to total depth equal to current coiled tubing limits
 Wells producing low to medium fluid rates (0 – hundreds of
BFPD)
 Permanent pumping or well cleanout applications
CJS FlatPak / ArmorPak Umbilical Is ...

Conveyed using conventional coiled tubing units in a “live well” environment

A coiled tubing umbilical system containing tubes to convey and actuate electric or hydraulic
downhole pumps and receive production from the pump to surface.

A system that can include components to inject chemicals and receive downhole data.

Used to facilitate low maintenance artificial lift from conventional, deviated and horizontal wells

Robust and versatile enabling the umbilical to convey pumps for permanent artificial lift or perform
wellbore cleanouts

Patented and patent pending technology
ArmorPakTM

All metal banded umbilical for deeper well depths and thermal
well applications

Fatigue and stress testing evidences ArmorPak extends
umbilical life eliminating potential for wear on the outer
thermoplastic jacket

Manufacturing is performed in Canada facilitating improved
delivery time frames
ArmorPak - BOP Testing June 2014
FlatPak is Conveyed With ...





Conventional coiled tubing units
Modified arch rollers and injector components
Specialized snubbing & blowout prevention systems
CT unit modifications to permit fluid pumping operation
Modified wellhead apparatus including modified tubing hanger
Typical Completion Stack
FlatPak / ArmorPak Field Service Operations
North Central Alberta
Peoples Republic of China
Texas, USA
Arkansas, USA
FlatPak / ArmorPak Supports ...
Permanent Pumping Applications

Hydraulic Submersible Piston PumpsHydraPak HSP – Over 100 systems
installed with multi year run lives – field
proven technology

Hydraulic Progressive Cavity Pumps –
HydraPak PCP – Testing in Chops and
CBM wells prove reliability and
reasonable run life – 9 wells total to
date – field proven technology

Electric Submersible Pumps –
HydraPak ESP – First trial to take
place Spring 2015. System to be field
proven spring 2015
Well Cleanout Applications
 JetVak – 600 applications proven technology
HydraPak HSP - Rod-less Artificial Lift
HSP Value Proposition
•
Rig-less, Live Well, Rod-less Technology
•
HSP is installed with a conventional coiled tubing unit
•
HSP operates efficiently in vertical, horizontal and deviated
environment
•
Can include downhole sensors for pressure monitoring
•
Eliminates rod and tubing wear reducing well downtime
•
Pumps natural gas very effectively and operates in a
“pumped-off” state – no gas locking
•
Handles sand / formation fines via sand screen
•
Can be used to pump oil or dewater natural gas wells
•
Scalable from .1 m3 to 25 M3 per day depth dependent
•
Versatile OD of 3.6”
•
Versatile Power Source Electricity, Propane, Field gas,
Wind/Solar
•
Effective heat tracing system for surface piping
HydraPak HSP - Rod-less Artificial Lift
•
•
The HSP surface unit supplies the
hydraulic power to the submersible
pump and is comprised of:
•
Prime Mover (Natural gas engine,
Electric motor, Solar Power)
•
Hydraulic pump coupled to prime
mover
•
WandFlu valve for alternately
energizing the hydraulic oil lines
•
Hydraulic Oil Storage Tank
•
Electronic Controls
General purpose classification meaning
that the surface unit is placed more than
7-m radial distance from the wellhead
HydraPak HSP
Alberta Shallow Gas Well Case Study
HydraPak Rod-less PCP
HydraPak PCP Rod-less Artificial Lift
Advantages
CJS G2 HSPCP
•
Rig-less, Live Well, Rod-less
Technology
•
Pump installed using a conventional
coiled tubing unit
•
Operates efficiently in vertical, horizontal
and deviated environments
•
Eliminates rod and tubing wear and well
downtime
•
Creates a greater variety of well service
options to deal with solids production etc.
(ie: pump can be reversed to flush solids)
•
Can include downhole pressure
monitoring sensors to eliminate well
“pump off” and protect the pump
•
Can include chemical injection at the
pump intake treating torque, scale, wax,
H2S and corrosion
•
Can be used pump oil and dewater
natural gas wells
HydraPak PCP
Technology Overview
•
System developed by CJS Q4 2010
•
System incorporates CJS FlatPak /
ArmorPak and downhole hydraulic
motor delivering 400 ft/lbs of
continuous torque; 800 Ft/lbs
intermittent torque
•
First systems run in Canada into 800
meter CHOPS wells near
Lloydminster
•
System proves a minimum 9 months
runtime equal to pump life
•
System can accommodate down to
5.5” OD casings with future designs
for 4.5” OD casings
•
New G2 1200 ft/lb torque motor now
available for field testing
HydraPak PCP Field Installations
“G2” HydraPak PCP Pumping Chart
400 Foot Pounds of Continuous Torque up to 200 RPM
“G2” HydraPak PCP Pumping Chart
1200 Foot Pounds of Continuous Torque up to 200 RPM
HydraPak PCP Case Study
HydraPak PCP
800 Meter Alberta Heavy Oil Well
7
6
5
4
3
2
1
0
Heavy Oil Production M3/D
Production
Month
1
2
3
4
5
6
ArmorPak Conveyed ESP
•ArmorPak umbilical that conveys electric submersible pumps
•Facilitates live well installation and subsequent service of electric pumps
•Substantially reduces servicing time, cost and lease footprint
•Eliminates requirement for service or work over rigs
•Eliminates cable spool unit when conveying electric pumps
•Reduced equipment mobilization and associated cost
•Eliminates tubing connections reducing corrosion points
•First system to be installed in Spring 2015 for Conoco in Alaska
ArmorPak
ESP
ArmorPak Conveyed ESP – Termination and Hanger
ArmorPak Conveyed ESP - Field Test - June 2014
“JetVak” A Hydraulic Wellbore Cleanout System
JETVAK
•
Wellbore cleanout system developed in 2009 by CJS and partners
•
The primary function of this technology is to create a low pressure environment in the well bore to pump the fluid and/or
solids to surface
•
Hundreds of jobs performed with the JetVak cleanout system since development of this technology
•
System methodology increases post cleanout well production via evacuation of near wellbore fluid and solids blockages.
Typical JetVak Cleanout
Husky CHOPS Hz well cleanout with JetVak
•1550 meter measured depth
•0.8m3 sand
•Recovered 30%; 3.5m3 of fluid
•
•
This well was 1yr old and did not
produce
Post cleanout the well produced at
10m3/day
FlatPak Application History
• Canada & United States
-
Over 160 HydraPak HSP & HydraPak PCP pump installations to date
-
Installations including vertical, deviated and horizontal oil and natural gas wells
-
Pump run lives up to many years
-
hundreds of 1,000 to 3,000 meter vertical & horizontal well JetVak cleanouts
-
horizontal reach in horizontal leg to over 2,000 meters
-
First live well “ArmorPak ESP” to be installed for Conoco Phillips Spring 2015 in Alaska
• China - HydraPak PCP pump landings in coal bed methane wells
• Oman - JetVak cleanouts to take place in 2015
Operations for companies such as Shell, Conoco, Devon, Total, Nexen, Suncor, Husky, Encana
How CJS Can Add Value
“Live Well Solution, Production Optimization, Decreased Operations Costs”
Rig-less “Live Well” Operations

Servicing wells with a conventional coiled tubing unit requires less equipment and staff thereby reducing
costs to the customer, lease footprint and environmental impact while improving safety and onproduction turnaround time

Pump installations are completed in hours with a conventional coiled tubing unit with minimal footprint at
a fraction of the cost of service rig intervention
 “Live” well pump installations increase efficiency, reduce cost and eliminate potential reservoir damage
Rod-less Technology

Eliminate well downtime and service costs associated with tubing and rod failure
Increased production volumes with optimum downhole pump placement
 Increase daily production and ultimate recovery of reserves by lowering the pump to ‘full true vertical well
depth’
Improved service options




Eliminate reciprocating pump gas locking with a full stroke every time
Facilitate reverse spin on progressive cavity pumps to flush solids out of the pump
Increase solids carrying capability using smaller diameter tubing with no additional reservoir drawdown
Pull an ESP with one unit on location in hours, not days
Quality Control and Competitive pricing
 Increase quality control and accountability with CJS delivering the entire system
 System price for this technology is similar to traditional artificial life pricing
How CJS Can Add Value
“Live Well Solution, Production Optimization, Decreased Operations Costs”

Cost effective and efficient use of a coiled tubing unit
Coiled tubing unit service requires less equipment and staff thereby reducing on location costs by more than 50% also mitigating lease
footprint and environmental impact. Coiled tubing service increases safety and revenue from better on-production turnaround time.

Live well operation
CJS offers live well intervention thus eliminating the possibility of wellbore damage therefore decreasing downtime and increasing
revenue and potential ultimate recoverable reserves.

Elimination of rod and tubing wear
CJS solutions eliminate rod and tubing wear increasing the well’s “on production time” while reducing the service costs and service
visits.

Increased revenue from proper downhole pump placement
A CJS pumping system differs from a conventional artificial lift system as our pumps are always placed in the optimal position in the
well to maximize production and revenue.

Quality Control
CJS solutions are vertically integrated offering the customer maximum operational control and accountability.

Return on Investment
When considering all revenue and cost optimization, assuming certain well conditions exist, the cost of a CJS system could reasonably
be recovered in one year.

Possible Economic Value Case

Pump Installation Cost Savings

Typical Service Rig Pump Deployment - $20k rod pump / $50k electric pump (can take 1 to 3 days)

CJS Hydraulic or Electric Pump Deploy - $8k hydraulic pump / $20k electric pump (generally takes one day)

Total Pump Installation Savings = $12k to $30k

Operating Cost Savings and Revenue Increases

Assuming a rod string has a one year life…. and the umbilical has a multi year life then each yr:

1. Save - One rig intervention each year with no rod or tubing wear = $20k

2. Save a partial replacement of tubulars .. Assume 100 meters each of 3.5 inch EUE + co-rod strings = $5k

3. On a 25 barrel per day well at $50 per barrel save two weeks well downtime = $18k downtime savings

4, If the well is lower pressure and you drop the pump 100 true vertical meters of depth and add 20% to the
daily production rate: 5 bbls/d x $50 barrel is $250/d x 365 days = about $91k in incremental production

Total Operating Cost Savings and Revenue Increases = $134k

TOTAL INCREMENTAL VALUE = $134K + $12K = $146k : SYSTEM COST $120K : PAYOUT = 9.9 MONTHS
CJS PRODUCTION TECHNOLOGIES
“Committed to Production Solutions for the Energy Industry”
Scott Kiser – Business Development Director – Calgary, AB, Canada, scott@cjsflatpak.ca (403) 463-4740