Invented by PyroPhase founders at IIT Research Institute ... · 2/17/2016  · –Steam Flood –Produce difficult formations. 1. PyroHeater Melts Paraffin in Well. 11 1. Paraffin

• RF heating technology – Invented by PyroPhase founders at IIT Research Institute 1978 –

• 2006-PyroPhase was incorporated to commercialize RF technology to produce heavy oil

• 2007-present –

– Three Technologies Developed

– Applications to heavy oil and paraffin wells investigated

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RF TechnologiesPyroPhase, Inc.

• I. PyroArray

– Heat Resource Volume

– For Oil Sands

• II. PyroHeater

– Heat around well by conduction

– Heat paraffin in the well

– Heat hot water or steam downhole

– Dipole Heater – Heat reservoir directly

• III. PyroUpgrader

– Upgrade bitumen/first refining step

– Reduce viscosity for pipelining

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I. PyroArray

•Vast Resources in Utah, Israel, Canada, Trinidad

•Billion dollar markets

•Competes with Steam in Shallow Formations– No Breakthrough to Surface

•Improves economics of Canadian oil sands

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II. PyroHeaterRF Skin Effect Heating

What’s a PyroHeater?

A Robust Downhole Heater

• Produces Heavy Oil

• Solves Paraffin Plugging

PyroHeater Advantages

• Robust – Design utilizes standard oil well pipe (casing,

tubing, etc.)– No electrolytic corrosion

• Gets 95- 99% of Power to Reservoir Zone– Energy delivery by coax pipe, not fragile wires– Heat generated in the location where it is

required – the Pay Zone

• Reusable• Patented US 8,210,256 and 8,408,294;

Canada 2,637,984.

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PyroHeater Structure

Testing PyroHeater Aboveground

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Applications

Applications

• 1. Heat Well Tubing & Casing

– Melt paraffin

– Prevent condensate blocking

• 2. Heat Deposit Near Well

– Reduce oil viscosity

– Increase heavy oil production

• Other Applications

– Hot Water Flood

– Steam Flood

– Produce difficult formations

1. PyroHeater

Melts Paraffin in Well

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1. Paraffin Well Treatment

• Existing tubing and casing become PyroHeater

– Packer/Contactor completes circuit

– PyroHeater stays in well

• Heats upper third of well

– Melts paraffin

• Mobile RF generator

– services whole field of wells

• Melts paraffin frequently – low cost

– Maximizes production, increase income

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2. How Stimulating WorksFor Heavy Oil

•Heat Resource Around Well by Conduction

•Lower viscosity

•Overcome flow resistance

•Heat payzone only, not overburden

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2. Heating Near Well - Oil Viscosity after 6 months

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0.0

0.5

1.0

1.5

2.0

2.5

0 50 100 150 200

Time, days

Oil P

rod

ucti

on

Rate

, b

bl/d

ay/m

With heating at 200'C

Without heating

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Stimulate Heavy Oil Wells

•Increase production x2 to x4

•Simulations predict increase

•Tests of electric heating confirm

•Increases profitability

III: PyroHeater + SCW

= PyroUpgrader

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What’s SCW?

• Super Critical Water

– Water ~ 373 oC and 220 bar

• Super solvent for organics, oil

• Super reaction kinetics, catalytic

• Super dynamic viscosity, like a gas

• Super mass transfer rate, dissolving

• Super thermal conductor

III. PyroUpgrader Uses Super Critical Water

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What is a PyroUpgrader?

• PyroUpgrader is a downhole reactor vessel

• Sealed and contained

• Standard drilling and completion techniques

• Heat exchange recovers heat

• Contained in a casing

PyroUpgrader

• Avoids $17/barrel cost for shipping Canadian bitumen

– Located near wells

– Lowers viscosity for shipping by pipeline

• Revolutionizes heavy oil refining

– Breaks down heavy molecules to lighter products for gasoline & diesel

– High yield 85 – 95%

– Sulfur removal

– Patent Pending

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Originally planned as an investment of $555 million, the McPherson multiyear coker replacement project likely will have a final cost of $579million, CHS told investors in its annual report for fiscal year 2015OGJ 2/17/2016

Advantages of bringing Downstream Upstream

• Standard well completion technology

• Faster, less expensive installation than Delayed Coker

• Lower CAPEX, OPEX

• Lower CO2 production, no combustion

• Higher value product than heavy oil ~40%

PyroUpgrader Plan• Build pilot unit

– 500 bbl/day

– $12 million development cost

• Transition to 10,000 bbl/day full-scale

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How Can You Benefit?We are Looking for Opportunities

• Install PyroHeaters in a

– paraffin field

– or heavy oil field

• Become a PyroPhase joint venture partner

– Apply PyroPhase technology in a resource

• Make available a Lease for Production

PyroPhase Team

Jeff Presley, PresidentDr. Richard Snow, Chief ScientistDino Pappas, VP Development

Manufacturing FacilitiesTesko Enterprises, fabrication

PyroCanada West, Jason Malmberg

Lance Hanna, VP ProductionSina Parastegari, Electrical DesignJack Bridges, Chief Inventor

Engineering & InstallationSolstenXP

Jesse Mohrbacher, President

Questions?

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