Vello A. KuuskraaPresidentAdvanced Resources International, Inc.

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Wrap Up

SECARB Project Wrap-up

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Accomplishments and Key Findings

Lessons Learned

Future Plans

Early Test Accomplishments & Key Findings Accomplishments to Date

– Monitored CO2 injection since 2008– Injection through 23 wells, cumulative volume 3.4

million tonnes– Completed repeat geophysics, including cross well

seismic, VSP, RST, and repeat surface 3-D– Recognized by Carbon Sequestration Leadership

Forum (CSLF) in 2010 for research contributions– Cranfield selected as base case for SIM-Seq inter-

partnership model development test– Early Team providing knowledge sharing to

Anthropogenic Test and other U.S./International CCS projects

Key Findings– CO2 retained in-zone, documenting no leakage to air

and no impact on water.

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– CO2 saturation correctly predicted by flow modeling– Pressure (flow plus deformation) correctly predicted by modeling– Certification Framework confirms that well performance is the highest risk uncertainty

Anthropogenic Test Accomplishments & Key Findings

Accomplishments to date– Systems planning and construction is underway for a

fully integrated “commercial prototype” CO2 capture, transportation, storage and monitoring field test.

– Drilling of characterization well D9-8 #2 completed in January 2011.

– A five deep-well plus three shallow-well monitoring plan developed with assistance from Early Test.

– An initial risk registry has been developed utilizing international expertise from Det Norske Veritas (DNV).

– Participation in US-Canada and European CCS Demonstration Project Network knowledge sharing events.

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Key Findings– Planning and operating an integrated CO2 capture, transportation, storage and

monitoring field test requires extensive negotiations and flexibility in plans and schedules.

– Detailed reservoir characterization and modeling is essential for designing and gaining approval for a safe, secure CO2 storage site in close proximity to the CO2 source.

SECARB Lessons Learned

Uncertainty about issues of long term liability made it difficult to secure storage sites for the SECARB field tests.

Investing significant time and effort in problem identification and risk avoidance was crucial for selecting a safe, secure CO2 storage site.

Investing in detailed site and reservoir characterization, particularly in a fluvial, complex formation, is essential.

A successful MVA program will test many tools and models but must, ultimately, lead to the selection of cost effective and robust systems for commercial deployment.

You will never haveenough information!

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SECARB Future Plans

Early Test Extend the monitoring time frame at Cranfield – the capital investment has been

made and additional data collection is cost effective. Mine existing Cranfield data and share with others to increase predictive

capabilities (e.g., SIM-Seq inter-partnership model development program).

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SECARB Future Plans

Anthropogenic Test Complete storage site development and transportation

infrastructure by August, 2011. Begin CO2 injection by September 30, 2011.

Update initial risk registry with capture, transportation, injection and monitoring operations reviews.

SECARB Team Allocate additional resources to support knowledge

sharing activities.

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Supplemental Information

SECARB Partnership: Specific Goals and Objectives Early Test

– Transfer technical experience to future operators regionally, nationally, and internationally.

– Predict pressure response in the far-field (single brine phase) to injection rate.– Constrain the relationship between heterogeneous flow-units and buoyant two-

phase flow. – Explore the performance of novel tool arrays.

Anthropogenic Test– Evaluate impacts of power plant CO2 capture on the transportation, injection and

long-term geologic storage operations.– Evaluate injection and storage conditions in a regionally extensive saline reservoir

to help establish regional CO2 injectivity and storage capacity.– Determine how the saline reservoir’s internal architecture can be used to optimize

storage and to minimize the areal extent of the plume. – Apply “lessons learned” at the SECARB Phase III Early Test and commercially

available, low-risk “off-the-shelf” oilfield technologies for longer-term CO2 storage and plume tracking.

– evaluate the effects of subsurface migration and trapping of anthropogenic CO2 on the geochemistry of saline reservoirs.

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Goal 1 - Adequate Injectivity and Capacity

 Early Test

Capacity and injectivity well known at project start. Advance under standing of efficiency of pore-volume occupancy (E factor)Measure saturation during multiphase plume evolution (completed) Increase predictive capabilities (to be done thru modeling)

Anthropogenic Test

Success criteria

Site-specific

statement of problem

CO2 injectivity and storage capacity not known at potential CO2 storage project site.

Conducted detailed reservoir characterization and log porosity versus permeability cross-plots from sidewall cores to establish key values for CO2 injectivity and storage.

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Goal 2 - Storage Permanence Early Test

Permanence of geologic system well understood prior to test. Assess methods for documenting well performance Measure changes above the injection zone along well, above zone monitoring interval (AZMI), and at surface (P site) over long times (underway)

Anthropogenic Test

Success criteria

Site-specific

statement of problem

Permanence of CO2 storage not established for the potential CO2 site at start of project.

Selected site with 4-way closure, multiple confining units and secondary storage compartments; evaluated seismic to establish lack of major faults or features.

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Goal 3 - Areal Extent of Plume and Potential Leakage Pathways

Early TestPlume confined by 4-way closure. Uncertainty – amount of radial flow (down dip/out of pattern)

Measure down dip extent of plume via VSP and 4-D (completed) Increase predictive capabilities (to be done thru modeling)

Anthropogenic Test

Success criteria

Site-specific

statement of problem

Goal was to limit the areal extent of the CO2 plume and avoid potential for CO2 leakage.

Used reservoir architecture and injection design to limit areal extent of CO2 plume. Conducted testing of older wells to assure well integrity at storage site.

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Goal 4 -Risk Assessment Early Test

Saline storage site is located in EOR field with operator owning CO2.Use Early Test to advance risk assessment techniques and share information.

Completed certification framework assessment of leakage risk. Confirmed well performance as highest uncertainty and focus of monitoring research

Anthropogenic Test

Success criteria

Site-specific

statement of problem

Saline storage site is located in EOR field with operator owning CO2. Conduct risk reviews and develop a risk registry for a fully integrated CCS field test.

Participated in DNV’s risk registry for CO2 leakage and other risks.Will install above and in zone pressure sensors to monitor CO2 plume and storage security.

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Goal 5 -Goal 5 - Develop Best Practices Early Test

Contribute technical expertise and lessons learned for development of Best Practices Manuals

Participated in developing BPMs for MVA, characterization, risk and reservoir modeling

Anthropogenic Test

Success criteria

Site-specific

statement of problem

Contribute technical expertise and lessons learned for development of Best Practices Manuals

Participated in developing BPMs for well drilling and reservoir modeling.

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Goal 6 - Public Outreach and Education Early Test

On-site outreach handled by Landmen.SSEB and Early Team focus on O&E in public and technical arenas.

Hosted site visits, responses to local and trade media, Fact Sheets, website postings of project information.

Anthropogenic Test

Success criteria

Site-specific

statement of problem

On-site outreach handled by Landmen.SSEB and Anthro Team focus on O&E in public and technical arenas.

Hosted site visits, responses to local and trade media, Fact Sheets, website postings of project information.

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Goal 7 - Improvement of Permitting Requirements Early Test

Permits obtained by site operator. Project team focus is on development of regulatory framework for GHG.

Provided experience with monitoring instruments and well performance to decision makers

Anthropogenic Test

Success criteria

Site-specific

statement of problem

Permits obtained by site operator.Project team focus is on development of regulatory framework for GHG.

Provided assistance to operator in preparing the UIC and state well permits. Shared information on UIC permit preparation with other RCSPs.

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Project Overview: Scope of Work Task 1.0: Continued Characterization of Regional Sequestration

Opportunities– Assessment of regionally significant formations (saline, coal, shale);

update of CO2 sources; regional/national Atlas updates; participation in RCSP capacity work group.

Task 2.0: Public Outreach and Education– Local (field test), regional , national, and international public outreach and

education. Task 3.0: Site Permitting

– Identification and submittal of required site permitting for both Phase III sites (EQs, EAs, UIC permits, drilling permits).

Task 4.0: Site Characterization and Modeling– Detailed site characterization (existing data and new data collection) and

modeling activities for both Phase III sites. Task 5.0: Well Drilling and Completion

– Design and completion of observation and injection wells for both Phase III sites.

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Project Overview: Scope of Work Task 6.0: Infrastructure Development

– Access to and operational safety for both Phase III sites. Includes CO2 pipeline for Anthropogenic Test.

Task 7.0: CO2 Procurement– Plan to procure CO2 for both sites to meet project objectives.

Task 8.0: Transportation and Injection Operations– Development and implementation of transportation and injection

operations plans for both sites. Task 9.0: Operational Monitoring and Modeling

– Early Test surface and subsurface monitoring, data collection, and modeling; Anthropogenic Test modeling and pipeline, surface, near-surface, and in-situ monitoring.

Task 10.0: Site Closure– Early Test discontinuation plan; Anthropogenic Test site closure activities,

including integrity testing. Task 11.0: Post-Injection Monitoring and Modeling

– Monitoring and model updates for both sites; RCSP MVA Work Group participation.

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Project Overview: Scope of Work Task 12.0: Project Assessment

– Site-specific, regional and Partnership-wide findings. Task 13.0: Project Management

– Local project management for field sites and overall project management and oversight.

Task 14.0: Does Not Exist – A pipeline study was proposed for Phase III but was later added to the

Phase II program instead. Task 15.0, which was proposed at the same time, was added to the Phase III program. The task numbers were not changed, so there is no Task 14.0 in the Phase III SOW.

Task 15.0: Preliminary Evaluation of Offshore Transport and Storage of CO2

– Resource mapping offshore Gulf of Mexico (state and federal waters); infrastructure inventory; legal and regulatory analysis; outreach and education regarding findings.

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