HOUSTON – eProduction Solutions (eP) is pleased to announce the recent acquisition of Edinburgh Petroleum Services, LTD (EPS). EPS has delivered reservoir and petroleum engineering software solutions, consulting and training to the upstream oil and gas industry for over 20 years. The company maintains offices in Edinburgh (corporate headquarters) as well as: Aberdeen, Caracas, Dubai, Houston, Villa Hermosa, Kuala Lumpur, Beijing and Moscow. eP acquired the company in a stock purchase for an undisclosed amount. EPS will retain its company identity and will be known as EPS, an eP company.

The merger will provide customers around the globe comprehensive optimization of their operations with tools and personnel from one company. eP’s Production Optimization Solution now includes: automation, SCADA communications, wellsite intelligence, desktop intelligence, data management, engineering analysis, financial analysis, engineering consulting, and training for production operations. “There has never been a solution for well automation, asset management and overall field optimization like this,” declared Laurence Ormerod, EPS Managing Director. Dharmesh Mehta, eP’s President, echoed a similar appraisal: “While the addition of EPS’s experience and products will create a positive synergy for both operations, the real beneficiaries, however, will be our customers. No other company will be able to provide the breadth and depth of technology in a comprehensive production optimization solution that eP offers”.

eP will incorporate EPS’ AIM-GAIN-SUSTAIN process into its Production Optimization Solution. It is a field-proven, 3-stage process designed to implement a system that automates daily production engineering tasks that traditionally have been performed manually. Sustainable production gains of three to seven percent have been realized and lifting costs have been known to be reduced by as much as ten percent.

The AIM or asset inspection methodology stage defines the production optimization feasibility, identifies opportunities and establishes a business case and costing for production engineering changes. During the GAIN stage, well and surface models are created and recommendations are made to improve uptime and deliverability. The SUSTAIN stage is where new production optimization technology is implemented, processes transformed and retraining is introduced. An important element of the AIM-GAIN-SUSTAIN process is its use of an online problem solver that optimizes hundreds of well and surface network parameters to optimize cash flow while integrating many more variables and physical systems. Benefits include increased production volumes, less downtime and reduced lifting costs.

eP Around the Globe Craft Day at the Oman Association for the Welfare of Handicapped Children is given a helping hand with a donation of art supplies from eP. The school sustains itself primarily from donations and does not charge a tuition. The supplies were warmly received by the staff and students.

With the addition of EPS’ knowledge base and technology, eP has positioned itself to become the true industry leader for providing total optimization solutions. eP has brought together the best-of-breed solutions for well optimization, reservoir optimization and work process optimization.

Well Optimization

By providing intelligence at the wellsite and intelligence at the desktop, eP affords the producer a unique solution for optimizing each well individually. Specific controllers are available for each type of artificial lift. These controllers contain computers with specific logic to control the well during changes in the reservoir, artificial lift equipment, or the well components. The operational changes are based on the parameters set by the well operator either at the wellsite or at a desktop computer. The desktop software provides advanced analytical tools that allow the operator to evaluate the performance of the well and make changes by controlling the well directly or by changing the parameters that the controller is using to operating the well.

Reservoir Optimization

eP’s solutions include technology from partner companies. Weatherford’s Intelligent Completion Technology (ICT) uses fiber-optics to allow operators to remotely monitor the downhole pressure, temperature, flow rate, phase fraction, and seismic activity of each well and the surrounding reservoir. This advanced monitoring capability allows the operator to monitor the reaction of the reservoir to the production of the well. Combining this monitoring with multiple-zone downhole flow control allows the operator to control the production of the reservoir accurately by restricting flow downhole at the zones that require choking. This provides an extremely accurate solution for managing water and gas production which can trap oil in “pockets.” Oil pockets can become unproducable as the reservoir pressure is depleted.

Work Processes Optimization

Each company and many times each production field follows their own operational procedures. That is why eP provides tools for optimizing work flow. These software tools assist the operators in tracking the needed operations to operate the field optimally. Tasks such as chemical injections, well workovers, and injection allocation can easily cause unnecessary expense by misprioritazation of tasks, poor record keeping, and lack of analysis of the effectiveness of the total field operations. eP’s experienced consultants coupled with advanced software tools provide the operators with real-world answers on how to optimize the entire field’s operations.

Use of a rod pump controller reduces pumping time and fluid pound which results in power cost savings while still maintaining total output. Fluid pound results by the pump not completely filling with fluid on the upstroke, known as “pump off.” As the downstroke begins, the entire fluid and rod string load moves down through a void until the plunger strikes the fluid level in the pump barrel. The traveling valve opens, suddenly transferring the load from the rod string to the tubing, causing a sharp decrease in load. This event transmits a shock wave throughout the pumping system. The RPC, however, senses the sharp change and stops the pump from pounding. At that point, the integrated logic can evaluate the history of pump off conditions and recalculates the optimal amount of time for the well to stay idle until the fluid level is again above the pump.

When the well is run on timers, it is commonly over-pumped because adjusting timers becomes a guessing game. By increasing and decreasing run times, the operator seeks minimum run time for maximum production, but, this trial and error approach is difficult and time-consuming. An RPC optimizes the restart time by readjusting idle time based on recent pump cycle history. Proper pump cycles keep the fluid level low, which reduces back pressure on a low-pressure reservoir, thus allowing maximum inflow.

The new iBEAM™ Rod Pump Controller (RPC) is a completely self-contained and cableless solution for easy rod pump optimization. Rather than manually adjusting timers, the iBEAM uses state-of-the-art logic and technology to bring intelligence to rod-pumped wells. It is an inexpensive and easy solution for optimizing lower production assets. By incorporating all the components of a rod pump control system into a single, compact package, eP has simplified the installation process, reduced maintenance issues and integrated SCADA communications.

This new paradigm in optimizing rod-pumped wells features load and position dynamometer cards that control the well locally and transmit the card to the desktop (or PDA) for analysis. eP has integrated a load measurement device, position sensor and radio into one solar-powered unit. This revolutionary approach reduces installation, maintenance and communication costs. The iBEAM does not require the traditional cabling and trenching associated with most RPCs. The advanced communication system allows any number of iBEAM units to communicate to a centralized host server.

eP, the global leader in production optimizations, has designed the iBEAM unit with many cutting-edge features and capabilities. Remote monitoring and configuration, remote logging capability, adaptability, dependability and ease of use are just a few reasons that iBEAM is rapidly gaining popularity among operators. It’s cableless; eliminating installation costs associated with conduit and cable, trenching, pole set-up and the controller box.

There are no maintenance issues due to wear from movement or potential damage from crews or rodents. It has a rugged hardware design, manufactured to ensure long life. A water-proof shield protects the circuits from harmful dust and moisture. Because of its unique modular composition, in the unlikely circumstance that maintenance is required, repairs are easy and economical. The unit also incorporates advanced lightning protection. The iBEAM intelligent switch immediately operates the well in a preprogrammed configuration so the well is minimally affected by the disruption.

How does it work?

The iBEAM uses proven load and position input for controlling the well (advanced strain gauge technology for load measurement and accelerometer technology for measuring polished rod position). This proven technique is recognized in SPE papers as a “best practice” to control rod pumped wells. eP’s load and position technology is currently used on over 25,000 wells world wide. The RPC then creates a dynamometer card that is used to identify pump off and other potential problems with a well, such as sanding and paraffin build up. The iBEAM then shuts down the well based on meeting the user-defined parameters and restarts the well after a calculated idle time.

The main components of the system include the iBEAM and the iBIS™. The iBIS is the iBEAM’s Intelligent Switch. It communicates with the iBEAM, and turns the unit on and off based on well conditions. An optional local keypad/display allows the operator to monitor and change the settings to the iBEAM.

Local communications are conducted through a Windows™ CE compatible PDA interface. Integrated spread spectrum technology communicates data stored on the buffer to a host-based system and/or a handheld display for remote monitoring or card analysis.

With iBEAM, you can pull current and buffered cards from any well from any vehicle or truck.

How can I afford NOT to use iBEAM?

The iBEAM is a simple, sophisticated and efficient system providing intelligent well management and a low cost, money-saving solution. Initial savings are significant. In addition, installation of the iBEAM requires no special tools or work permits and is totally non-intrusive to the pumping system.

Large and small companies are experiencing exceptional results with the iBEAM. In the past, operators have been reluctant to install RPCs on low-productivity wells because of the capital, installation and maintenance costs, but the iBEAM’s low initial cost and low upkeep are prompting many operators to take a second look at the benefits the technology brings. Considering power cost savings alone, the unit has been known to pay for itself in less than 16 months.

So revolution or evolution? You decide. Either way, with the introduction of the iBEAM, eP reinforces its leadership in the industry as your single source for integrated production optimization solutions. Contact eP for white papers or additional information about how iBEAM can lower your operating costs and improve your total well optimization program.

Talisman Energy UK Ltd. recently awarded a contract to supply a Subsea Control Module (SCM) for their Hanney II. The project will continue through 2005.

eP will also be supplying two SCMs to be installed on two wells in the Stine Segment 1 reservoir located deep in Danish Waters for Dansk Olie og Naturgas AS. The awards can be attributed to an impressive track record in the region, short delivery times, an excellent service record and strong customer support.

eP was recently given an Acknowledgement Award by ChevronTexaco Boscan for eP’s outstanding performance in their Venezuela PCP Partnership/Alliance. Artie Rodriquez, ChevronTexaco Boscan Field project engineering manager presented the artwork, created by one of Venezuela’s renowned artisans, on behalf of ChevronTexaco Venezuela. The award came in recognition to eP for outstanding performance, service and products for the alliance with the PCP program in Campos Boscan. ChevronTexaco is using eP gauges, VFDs, data loggers and field service expertise. ChevronTexaco’s plans for the region include increased participation with eP featuring Intelligent Completions, DTS and fiber-optic applications.

Wireless Well Monitoring

Emergence of low cost wireless networked technology provides oil and gas operating companies the opportunity to improve labor efficiencies and in turn improve production.

In one case study, a WIN CE-based PDA, equipped with an 802.11b wireless Ethernet module, was set up to communicate directly with wellhead instrumentation through existing legacy MAS or Spread Spectrum radio communications equipment. Access to controllers can come from anywhere in the field to create a field-wide network.

Well status, including alarms and other diagnostic data, is readily available for viewing and storage on the PDA via eP’s “POC-it” PDA software. A wireless system eliminates the need for cell phone conversations to the control room and allows the operator to make real-time decisions on deployment of service resources. System alarms are also recognized in real-time and can be corrected quickly, improving overall production efficiency of the well.

The system is relatively inexpensive to install and maintain. Network reliability is typically very high and data throughput is more than acceptable for the task. Contact eP to learn more about the case study or “POC-it” software.

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