Southern Pacific Resource Corp STPJF

RE:Why wont the oil flow

[nikehercules]

Why won't the oil flow - take a look through Application Number 1789416 - Everything is laid out there. Here's the most relevant parts:

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Southern Pacific has collected a wide variety of routine core analysis throughout the Project
Area over the past 5 years. In addition to the routine core analysis (Dean Stark saturation
analyses and overburden permeabilities) STP also conducted additional non-routine reservoir
analysis such as X-Ray diffraction (XRD), Particle Size Analysis (PSA) and Thin Section
Analysis to better understand some of the challenges that could be present within the reservoir.
Communication between some of the injector and producer well pairs has been limited during
an extended circulation time. STP has re-evaluated its extensive core inventory across and
adjacent to the producing area and has yet to identify any type of barrier existing between the
pad 1 and 2 injector and producer wells that can be observed with the naked eye. STP is now
confident that any restriction to pressure and fluid movement must be occurring at the grain interface
level.

In September 2012, Southern Pacific chose a cored observation well in both Pads 101 and 102
that was close to a well pair that experienced the lack of communication described above for
additional study. Vertical Overburden Samples (VOB’s) were picked every 10 centimeters
along both cores to identify any potential microscopic barriers that could prevent the
communication. Appendix B contains core photographs from the both 100/05-18-91-14w4 and
100/10-18-91-14w4.

In 100/05-18-91-14W4 samples were taken through the 8.6m of vertical section that spans the
interval below, between, and above the producer and the injector wells (2P4 and 2S4) that exist
~23m to the east. In 100/10-18-91-14W4 samples were taken through the 7.6m of vertical
section that spans the interval below, between, and above the producer and the injector wells
(1P3 and 1S3) that exist ~30m to the northeast. Air permeability testing was conducted and
results came back with a reasonable match to the original data taken over the interval.
Southern Pacific then re-examined the particle size analysis and added additional thin section
work that was done earlier to focus on the framework of the reservoir and the organization of
that framework. Items like sorting, grain size, shape, roundness, sphericity and types of grainon-
grain contacts all support an immature, moderately sorted, subangular to subrounded, very
fine to fine grained quartzose sand.

The range in the degree of sphericity for both the Bioturbated and the Lower Clean Sands is low
to moderate and it is currently Southern Pacific's opinion that this could be one of the
challenges to communication inside the reservoir. The combination of very fine to fine grained,
moderately sorted grains creates complex narrow pore throat geometry that can be challenging
to migrating clays such as Kaolinite and will certainly form more complex pathways for heated
bitumen, lowering overall permeability to oil. Typically elongated grains will prove to be a
challenge for vertical permeability due to the stacking arrangement of these grains. The lack of
sphericity inhibits any sort of a rolling action by the grains that would help increase production
as the steam is injected

Following the warm-up cycle, in order to facilitate communication between the injector and
producer, a pressure differential is imposed between them. The steam flow follows the path of
least resistance typically occurring at areas of shortest interwell distance or possibly following
pathways such as lateral facies contacts. Once these pathways are clear the enhanced
permeability results in localized chamber growth, reducing the differential pressure and making
it a very slow process to encourage similar flow paths elsewhere along the well length without
creating excessive drawdown on the open areas. This issue is currently being addressed by
means of inflow-control devices which limit drawdown on the productive intervals however it is
Southern Pacific’s opinion that additional wells are needed to efficiently exploit this reservoir.
These lateral facies changes are common, unpredictable and occur at varying scales from 10’s
of meters to 100’s of meters within the deltaic deposit found in McKay. Wellbore temperature
data along the horizontal wells has reconfirmed these minor reservoir variations which result in
an imbalanced and non-uniform chamber development. Additional horizontal well pairs at a
reduced spacing will maximize STP’s access to the portions that have less chamber
development and improve the ultimate resource recovery.