Technology

Vertizontal Recovery System (VRS®)

The VRS® for Improved Hydrocarbon Recovery is an innovative method to recover fluids from underground reservoir formations. In a VRS, one or more horizontal wells are drilled such that the newly drilled horizontal wellbore(s) are oriented in the reservoir formation to intersect or terminate in close proximity of an existing or newly drilled vertical well, or, a vertical well is drilled so that the vertical wellbore penetrates the reservoir formation in close proximity of the wellbore of a newly drilled or existing horizontal well. The Vertizontal System involving the placement in combination of one or more horizontal wells and a vertical well has been patented in the United States (Patent No. 5,402,851); and patented in Canada (Patent No. 2,125,355) and trade marked in Canada by Vertizontal Energy Resources Inc., of Calgary, Canada. The inventor of the VRS® and President of Vertizontal Energy Resources Corp. is Mr. Nick Baiton.

Although the VRS® is not conducive to all reservoir formations, it is ideal for application to the Maidstone Oil Field and with 8 existing Vertical wells already in place and an estimated 5.5 Million barrels of oil in the reservoir, it is expected VRS® will enhance the life of the reservoir, will substantially increase daily production and cut the overall operating costs of the field creating a much more efficient recovery procedure and a higher level of profit.

VRS® versus Conventional Vertical or Horizontal Wells

In a VRS®, conventional drilling techniques and equipment are used to drill one or more horizontal wells in combination with a vertical well, however, the VRS® has many advantages over conventional vertical or horizontal wells. There are benefits to be realized through increased production rates and recoveries, improved reservoir performance and management and other intangible benefits that accrue on an individual field or well basis.

Improved Production and Performance

1. In a conventional horizontal well, in which the reservoir pressure is too low to raise the fluids around the curved portion and into the vertical portion of the wellbore, the pump must be lowered to the horizontal portion of the wellbore. This means that the fluids must then be pumped around the curved portion of the wellbore or lifted "around the corner" at increased operating costs and increased downtime for pump and downhole equipment repair as compared to a VRS®.
2. Ready access to the horizontal wellbores in a VRS® while producing on primary production allows for quantitative and qualitative monitoring of fluid outflow from the reservoir into the producing wellbores. Correspondingly, in a VRS® with enhanced oil recovery (EOR) involving injection of fluids, orienting the horizontal producing and injection wellbores in parallel such that the injection wellbores are placed between the producing wellbores enables monitoring and adjustment of the injection fluids into the formation and at the same time, monitoring the outflow of fluids from the formation into the producing wellbores. Sweep efficiency of the reservoir can thus be optimized.
3. With improved sweep efficiency and increased production rates, the ultimate recovery and value of a reservoir can be increased.
4. For an existing field with conventional vertical wells that has reached its economic limit, applying the VRS® can result in extension of the production life of the field. Existing vertical wells, facilities, well sites and infrastructure can be incorporated in the development resulting in substantial savings of capital as compared to further infill development with conventional vertical or conventional horizontal wells. Delaying well abandonment's, postponing decommissioning of facilities and delaying site restoration extends the life of wells and fields with the accompanying economic benefits.
5. Extension of a pool requires the drilling of stepout wells around the perimeter of the existing pool to delineate the boundaries of the reserves. In most instances, offset wells are usually drilled in all directions until the pool is surrounded by dry holes. With a VRS®, it may be possible to salvage stepout wells that have encountered only noncommercial or an absence of reservoir pay. In these instances, it may be possible to plug back the wellbore and direct a horizontal wellbore towards an offset field well that does have reservoir pay to improve production performance of such a well.
6. For re-entries of existing vertical wells, mechanical problems may be experienced during production operations in which artificial lift equipment is utilized. Pumping "around the corner" from the horizontal wellbore through a port cut out of a section of the existing vertical well could be more expensive than pumping from the companion vertical well near the far end of the horizontal wellbore.
7. There are other benefits to be gained through the application of the VRS® in existing and newly discovered fields that would become apparent in each individual case.

For more information visit the Vertizontal Energy website at: www.vertizontalenergy.com

Used with permission from Vertizontal Energy Resources Ltd.

Petrostar's VRS Development Status

The full implementation of the VRS is a five phase program. To date, the Company has completed the first three phases:

• Phase 1 of the five phase VRS® drill program - drilling of a Vertical Stratigraphic well 200 meters to the north of the existing A16-6 well to a total depth of 578 meters, encountering the McLaren formation at 495.5 meters, the Waseca formation at 508.5 meters, and the Sparky formation at 533.0 meters;
• Phase 2 of the five phase VRS® drill program - drilling of a Horizontal (HRZ) production well from the heel of the new D16-06-48-23W3M Vertical well to a distance of 1,160 meters;
• Phase 3 of the five phase VRS® drill program - drilling of a second HRZ production well from the heel of the existing A16-06-48-23W3M Vertical well to a distance of 1,200 meters at a total depth of 575 meters.

Petrostar intends on completing the final two phases, which includes drilling of an additional horizontal well along the southern border of the Maidstone property at act as a "catch well" and conversion of the second Horizontal production well to a water injection well. At this present time, completion of the final two phases of the VRS testing has been put on hold as the Company focuses its attention on fully developing its Down Hole Tool.