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GasGun® Case Study

The GasGun, Inc.4 1 0 1 S E I N T E R N A T I O N A L W A Y , S U I T E 4 0 1 M I L W A U K I E , O R 9 7 2 2 2

P H O N E : ( 8 7 7 ) 5 5 7 - 1 3 7 0 W W W . T H E G A S G U N . C O M

Application: Stimulation (New Zone)Depth: 10,506’Formation: Wolfbone (sandstone)County: ReevesState: Texas

In June of 2012 an operator in Reeves County chose to perforate and shoot GasGuns to stimulate the Wolfbone formation @ 10,506’. The Wolfbone reservoir of West Texas consists of complex, low-porosity(4-10%)/low permeability(nanodarcy to millidarcy) sequences of sand, shale, and carbonate layers which typicallyneeds to be stimulated to be commercial. When the service provider ran the perforating guns out of the hole after the shot there was black water in and on the perforating equipment but no signs of oil. Afterswabbing the well had no oil. The service provider then ran the GasGun over the same interval. Oncethe GasGuns were fired and brought out of the well they were covered in “Lime green oil” according to both the operator and the service provider. Later swabbing and production showed that the GasGun wasable to stimulate the zone and connect the wellbore with the desired productive zone with good result.The specific production data itself was asked to be kept proprietary by the operator but they have since completed more wells using the GasGun for stimulation.

*At these depths perforating charges do not have the same penetration as they do at shallower depths.This is caused by the additional earth stress in deep environments and compressed hard rocks that are encountered at these depths. Very often simply perforating can fail to get well connected to the reservoir.This effect is often exacerbated by nearbore damage including cement invasion. The fractures created bythe GasGun are shorter in deeper applications due to those same stress principles but have the power to penetrate much further out than the perforating charge and will allow an operator to fracture into the reservoir and connect with the hydrocarbon rich formation. GasGun fracture penetration @ 2,000’ can be up to 50’ while fracture lengths in wells of 10,000’ will be closer to 10’ in penetration.

Nearbore Damage• Remove skin from perforators,

drilling, cement, etc.• Fractures created at every

perforation tunnel• Improve effectiveness of acidizing

APPLICATION Reperforation/stimulation (Existing Zone)

INTERVAL4,770 - 4,850 feet

FORMATION San Andres (dolomite)

LOCATIONGaines, Texas

POROSITY15 %

PERMEABILITY4 md

SKINUnknown

GUN DESIGN3 1/8" Kraken Perf Gun

Pre-Acid

• Improve effectiveness of spotting acid

• Break down formation/reduce treatingpressure

• Etch channels in newly createdfractures

West Texas Operator Improves Production from San Andres Well with Kraken Perforation/Stimulation Technology

A Kraken™ Case Study

BACKGROUND

Two cased hole wells initially completed with conventional perf and acid in the San Andres dolomite formation were recompleted with the Kraken and acid in order to improve existing production. The Kraken, a propellant-enhanced perforating gun, is designed to overcome formation damage and improve the performance of the subsequent acid stimulation. A 5000 gallon acid job was run after each Kraken perforating job. The 5000 gallons comprised of 15% HCL split 90% purely acid and 10% with acitol (xylene) for paraffin inhibition. Each acid job was diverted with ~3500 lbs. of rock salt. Both wells saw a consistent increase in production with this enhanced stimulation method. Before and after oil production for both wells is noted in the graph below.

31/8" Kraken® Perforating Gun3.125 in./79mm O.D., 4spf, 60° Spiral System

Benefits Features• Perforates and stimulates the reservoir

in one trip.

• Creates multiple radial fractures extending 1-5 feet past the perforation tunnels with the use of progressively burning Kraken propellant boosters.

• Removes skin and cleans up the wellbore damaged by perforators, drilling fines, cement, mud cake, etc.

• Prepares well for hydraulic fracturing by breaking down formation first with the Kraken. Treating pressures are often dramatically reduced, flow rates improved, and the effects of tortuosity minimized.

• Improves effectiveness of acidizing by fracturing first with the Kraken.

• The Kraken perforating system is compatible with shaped charges that create a 0.42-inch entrance hole or larger.

• Standard shot density of 4 shots per foot. Customized shot density from 1-4 shots per foot available upon request.

• Standard shot phasing is 60 degrees. Shot phasing can be customized upon request.

• Compatible with simultaneous or select fire systems.

• Conveyance: Wireline, Pump Down, TCP, Coil Tubing, Tractor

• Patent Pending

The Kraken is a propellant enhanced perforating gun designed to overcome the reservoir damaging effects of conventional perforating gun systems. The propellant boosters contained inside the Kraken are based on the same progressively burning propellant technology used in our patented GasGun® stimulation tools. Progressively burning propellants have been proven by independent research to be many times more effective in creating fractures and is the key advantage that sets our tools apart from the competition.

The GasGun, Inc.15927 SE 122nd Ave. • Clackamas, OR 97015 • 503.557.1370 • www.TheGasGun.com

Specifications

Propellant Booster Part Number KRAK-1.7-1.25

Nominal O.D. (in) [mm] 3.125 [79]

Max Shot Density (spf) [spm] 4 [13]

Max Pressure (psi) [MPa] 20,000 [138]

Max Temp. (°F) [°C] 280 [138]*

Recommended Detonating Cord 80 grains/foot

Typical Gun Swell (in) [mm] 3.48 [88]

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Warning: Exceeding the maximum temperature ratings can result in unintentional detonation

* 280°F (138°C) maximum temperature rating is for a 1-hour exposure; 260°F (127°C) maximum temperature rating is for a 10-hour exposure.