Success Case- Wellhead Application CBM in San Juan Basin

This shallow coal bed methane producer was completed in June 2001. Its initial production from the
Fruitland coal was slightly higher than 1000 mscfd and 100 bwpd. Refer to the inserted decline curve
below. As shown, it produced troublefree until the gas production began to decline to 500 mscfd in late
2015. By then, the cumulative gas production had reached 3.94 Bcf . Recognizing the underperforming
gas well with a declining liquid production, the Operator, in early 2016, made the decision to install a
less reliable compressor to maintain production. It was released after a few months and a Flogistix FX-
12 8.3 GED ( gas engine drive) compressor with a 98% runtime guarantee was installed in July 2016. The
Operator’s plan for this beam-pumping gas well was to reduce the flowing casing pressure with
compression. This resulted in reducing the flowing bottomhole pressure allowing the well to produce at
+/- 800 mscfd, which was well above the critical rate.

Increased runtime and production uplift create favorable financial results. Projecting a ten (10) project
life on compression, incremental gas volume was estimated at 8.8 Bcf with a NPV10’s of $310,000 and
$250,000 at gas prices of $2.80 and $2.60/ mcf respectively. The economic model assumed 80% net
revenue interest and flat gas prices at the wellhead. This Success Story is special because the well was
located at an elevation of 7,400’ above sea level and produced under harsh weather conditions.
Flogistix guarantees 98% compressor runtime, and all of our units are serviced by dedicated and well
trained personnel . This combination creates a “Win-Win” situation for Flogistix and the Operator.