A GENIUS is known by the

infinite and boundless frontiers of

his Human Thought

The sistemic and integral analysis of the oil and gas tubing string plugging problems must be seen from every possible angle to search, reach and implement a DURABLE, EFFECTIVE and PRECISE solution.

RGP Supply and Services, S.A. counts with specialists and professionals on magnetic treatment field application in oil and gas wells to prevent and eradicate the undesairable plugging problems caused by carbonates, sulfates, paraffins and asphaltene deposits. Those that impair reservoir fluids free movement through the tubing string inside diameter from bottom to surface.

RGP feels proud to offer to our distinguished clients new, avant-garde and assertive solutions to so many kinds of plugging problems encounter nowadays in oil and natural gas fields affecting much productive time and daily production from new and old oil and natural gas wells.

RGP´s specialists and professionals, as experts on the precise application of the magnetic treatment, can complete the necessary evaluations.

Case of Study

SCALE Deposition and Plugging Problems

In Old and New Wells (O&G)

This case of study resumes the practical application of the Magnetic Unit(C) Tecnology in field testing carried out on a production asset in the Maracaibo Lake southeast basin.

As shown in the presentation below, technical details on subsurface studies that include geoscience, mineralogy, sedimentology, petrophysics, geochemistry and reservoir engineering done to the Misóa Formation sandstones and masive carbonates deposits that are located on Block III, intervals C.X.4. (415, 455, 460), identified as Zones I, II and III.

On the physical plane, theses studies allowed RGP´s experts to know that this formation was deposited on a marine paleoenvironment associated with carbonatic shales and mud deposits.

Subsurface and formation waters analysis and characterization, based on the chemistry composition (canions and anions), demonstated the presence of connate water with high Chloride (CL-) ions content that could dissolve minerals present within the formation matrix.

The presence of relative elevated anions content as HCO3-, SO4=, CO3= and OH- gives the subsurface waters in the southeast basin at Maracaibo Lake, from the producing intervals (C.X.4, 415, 455,460, Zones I, II and III), a much higher tendency to create and deposit scaling compounds such as:

Calcium Carbonates (CaCO3, solubility of 0.0013 g/100 mL (25 °C), calcite, aragonite),
Magnesium Carbonates (MgCO3, solubility of 10.6 mg/100 ml, magnesite, chalk)
Calcium Sulfate (CaSO4, cast)
Barium Sulfates (BaSO4, very low solubility: 0.0002448 g/100 mL (20 °C); 0.000285 g/100 mL (30 °C), barite, celestine)

RGP experts established that southeast basin formation waters from the producing intervals have a chemical composition that could certainly start the nucleation and aggregation process at the tubing string walls. Most probable at deeper and intermediate depths (3,000 - 4,600 meters) where reservoir production fluids move from bottom to surface and sudden pressure drops and temperature occured, the presence of CO2 in the gas produced will contribute to trigger primarly the Calcium Carbonates and Calcium Sulfate scale formation and deposition. A pH value of 8.3 and a Stiff & Davis Index of 1.24 confirmed the scaling tendency of the produced formation waters.

The "PRIOR Conditions" analysis before doing field testing of the Magnetic Units(c) technology were completed with the thorough evaluation of the past production and plugging history of twelve (12) selected wells . For the case study on well VLC-924, much attention was given to review these parameters:

Type of Intervention Job (Workover or mechanical clean-up (snubbing units, coiled tubing).
Chemical Treatments to eliminate scale deposits in the tubing string (Hydrochloric acid).
Well Stimulation/Matrix Acidification with solvents or other mixture with chemicals.
Total Cumulative days affected by well intervention
Daily Production closure due to well intervention
Differed production affected as a direct consequence of tubing string plugging.
Continuous producing days count after each intervention (mean producing cycle)
Total cost of each intervention
Market value of closed production affected by plugging
Market value of diferred production

Figure below resumes key data obtained from the "prior or before conditions" on well VLC-924.

PRIOR CONDITIONS (BEFORE)

PRODUCTION & OPERATIONAL ASPECTS

ECONOMIC IMPACT & SUSTAINTABILITY

After completing the "PRIOR Studies" on well VLC-924 it was evident how inneffective, unproductive and troblesome was to continue using conventional and old methods to fight against scaling and plugging problems in the tubing string, such as:

unplanned workovers, mechanical clean-ups with snubbing units or coiled tubing,
chemical treatments with hydrochloric acids and
matrix stimulaction with solvents.

These conventional methods kept the "ups and down" and cyclic closure of daily production as plugging got worse and worse. VLC-924 well frecuent and costly interventions and treatment amounted to an average 846 thousand US$ per year in non-planned budget expenses. Also, well plugging events were causing a 30 % loss in operating effective yearly time. Six (6) closure events were the root-cause of differed production affecting a volume of 292,257 barrels that should have been received at the tank farm in the 2.2 years evaluation time. The market value of all this production reached 1,668,000 US$

A DURABLE, EFFECTIVE, PRECISE AND INTEGRAL SOLUTION WAS IMPERATIVE TO SEARCH TO SOLVE PLUGGING PROBLEMS ON BLOCK III RESERVOIR AT MARACAIBO LAKE.

Upstream Magnetic Units© Tecnology

ICMEC - Intensive Core Mechanical Effective Completion

THE ROBUST, DURABLE AND PRECISE SOLUTION TO SCALES, PARAFFINS AND ASPHALTENES WELL PLUGGING PROBLEMS.

The Renewed Magnetic Units© Technology Upstream is applied as a robust integral part of ICMEC.

Intensive-Core Mechanical Completion (ICMEC) takes maximum advantages of the effectiveness and durability of the magnetic fields effects on alligning diagmagnetic molecules in order to impair nucleation and crystal formation that leads to the conglomeration and deposition of scales, paraffins or asphaltenes deposits on the tubing string´s walls.

The Renewed Magnetic Units© Technology Upstream

Are AUTONOMOUS as they DO NOT require any external power source.

RMUT© are assembled as integral part of the tubing string (put joint).
Design is adapted to natural flowing or artificial liftted wells: gas-lift, hydraulic pumping, progressive cavity pumps, electrosumersible pumps, supersonic pumps, induced-vaccum lift and or vapor-lift pump.

These slides describe the IMPROVEMENT EVOLUTION on the MAGNETIC UNIT© Technology from past model design to the newest and robust device that is now offer to our client assuring durability and precise answers to any plugging inconvenient in oil and gas wells.

In depth formation waters studies based on chemical composition and characterization. pH, alkalinityon canions and anions and hardness tendency evaluation.

RGP S&S, S.A Experts on MAGNETIC TREATMENT on Scales, Paraffins and Asphaltenes

In depth formation waters studies based on chemical composition and characterization. pH, alkalinity and hardness (Ca+; Mg+) tendency evaluation.

Solubility evaluation of anions (HCO3-; SO4=; CO3=: OH=) and TDS (total solid dissolved). Scaling compounds formation possibilities

Scales rate of nucleation and solid compound aggregation for carbonates (CaCO3, MgCO3) and Sulfates (CaSO4, MgSO4, BaSO4, SrSO4). RMUT basic design

ICMEC, intensive Core Mechanical Completion Final design incorporating RMUT

Changing the "UPS and DOWNS", "CLOSURE" and "DIFFERED PRODUCTION" of traditional old methods for dealing with plugging tubing string event for a SMOOTH more STABLE Flowing Condition assuring well daily production and potential can be obtained when the ICMEC, Intensive-Core Mechanical Effective Completion incorporating the Magnetic Units Technology works at the well downhole conditions. No PLUGGING will occur and no more extra cost need to be spendt. Production Asset would become more productive, profitable with much better economic indicators.

The Magnetic treatment, applying RGP´s MAGNETIC UNITS© technology as the ICMEC new completion, demonstrated in field testings to be the MORE ROBUST, DURABLE, EFFECTIVE and PRECISE SOLUTION to any scaling or deposit plugging event in your new and old oil and natural gas wells in new and mature fields.

RGP Supply And Services, S.A.

Products and Engineering Value Offer

Supplying and providing our clients Integral Well Construction Services through Operation Agreements and Strategic Alliances (Joint Ventures, J.O.A.). Offering supply chain services on:

1).- Overall well planning and design.

2).- Management and control on well construction.

3).- Supplying Drilling and Completion Experts

4).- Solid Control Equipment

5).- Mud Logging Equipment with technical personnel,

6).- Company Men.

Operation Agreements and Strategic Alliances on Exploratory & Development Well Construction Drilling Projects.

Integral Well Construction Supplying Services for Development & Exploratory Drilling Programs

Supplying and providing our Clients Integral Well Construction Services through Operation Agreements and Strategic Alliances (Joint Ventures, J.O.A.) Offering supply chain services on:

1).- Drilling Bits;

2).- Directional Drilling Tools;

3).- Special Reaming Tools (Topo Units);

4).- Primary Cementing Equipment;

5).- Shooting Guns;

6).- Cased-Hole Logging Tools;

7).- Coiled Tubing Units;

8).- Well Testing Equipment.

Integral Well Intervention and Major Repair Jobs Supplying Services for Oil, Natural Gas Producing Wells, Condensate Wells, Secondary Waterflooding and Terceary Projects Wells & Geotermic Project Wells.

Supplying and providing our Clients Integral Well Services through Operation Agreements and Strategic Alliances (Joint Ventures, J.O.A). Offering supply chain services on:

1).- Workover rigs (repair and intervention jobs)

2).- Coiled Tubing Units;

3).- Well Hydraulic Fracturing;

4).- Stimulation and Acidicing jobs

5).- Chemical Treatments (Matrix Solvents and Hydrochloric Acid)

6).- Water Production Control Techniques and Studies

7).- Well Scale Plugging Problems

8).- Well Paraffins Plugging Problems

9).- Well Asphaltene Plugging Problems

10).- MAGNETIC TREATMENT Masification Program Design.

11).- Field Closed Wells Optimized Reactivation Program Design.

Experts and Specialist Personnel Supply Services to Manage, Control, Planning and Executing Well Construction Drilling, Repair and Intervention Programs.

Supplying and providing through Operation Agreement and/or Strategic Alliances expereinced management and specialist on drilling, well repair and intervention and geoscientist for specific Drilling Projects. Offering supply chain services on:

1).- Engineering Experts on Well Major Repairment

2).- Engineering Experts on Well Intervention (O&G)

3).- Geoscientists Experts on Petrophysics, Geochemistry, Geomechanics, Geologists.

4).- Engineering Experts on Hydraulic Well Fracturing

5).- Engineering Expertos on Well Stimulation and Acidicing

6).- Engineering Experts on Well Productivity

7).- Engineering Experts on Artificial Lift System and Production.

Remote/ Real Time (RTO/RTCO) Well Construction Continuous MONITORING. Integral, Overall and Remote Real Time Drilling and Workover Rigs Supervision.

Exclusive RGP, S&S services to our Clients. By applying the Unique I.W.M.M. platform (RGP´s own Well Construction Monitoring Software) the entire drilling project can be monitored and supervised from remote location by our experts on real time (RTO/RTCO).

Also this technological tool can be used to supervise "ALL Working RIGS" (Drilling, Workovers, Repair and Intervention Units) on the Clients O&G Fields at the same time.

By gathering on line and real time data from all rigs, many undesired events can be evaluated and corrected on time with experts analysis. Operational stats, learning curves and lessons learned are used to correct and optimized planned drilling, workover and intervention programs to obtain a better resources usage that can lead to COSTS Reduction and to eliminate, among others:

A).- Unproductive Drilling and Workovers Execution Times.

B).- Visible and Invisible Time and Costs consuming activities.

C).- Tool & Equipment Undesaired Performance.

D).- Technical and Operational Personnel Low Performance.

E).- Drilling & Workovers KPI´s improvements.

RGP Supply And Services, S.A.

Technological Services and Engineering Value Offer

Eliminating Well´s Tubing String Solid Deposition Plugs and Corrosion impact with UTM (c) Technology

Exclusive RGP, S&S services to our Clients. Offering a High-Value Technology such as RGP´s owned MAGNETIC TREATMENT UNITS (c) that has been intensively field-proven with superb and oustanding results. RGP can help interested clients to assure oil, natural gas and condensate fluids movement from producing horizons up to surface through clean, unobstructed and unplugged tubing string (TP). Our technological services and engineering Value Offer include:

I.- Geochemistry, Petrophisycal, Geological and Reservoir engineering studies on oil, natural gas, condensate and high-temperature vapor producing horizons and pay-zones with severe, chronic and frequent solid Deposition Plugging in the tubing string with intensive corrosive impact.

II.- Well Intervention Performance Studies on Solid Deposition and Plugging Control Methods Applied.

Engineering and productivity experts can evaluate, analyze and integrate past-performance well intervention jobs on problematic wells to detect their effectiveness, an impact on differed and closed production, job costs and asset´s economic indicators (KPI´s). Summarize learned lessons, best practices, tools and equipment´s performance for better future well intervention plan designs.

III.- O&G Pay-Zones and Overall Field Optimization Studies Special Team aimed to recover old and new closed wells affected by plugging problems, solid deposition and tubing string corrosion.

Integrated Studies and Entire Field-Solution Design incorporating all RGP´s technological capabilities:

*. The Unique I.W.M.M. platform (RGP´s own Real-Time Well Intervention Monitoring Software)

*. Geosciencetist and Well Intervention Engineering Experts to identify root-causes on most comun problems (high-scale tendency and high water-cut production; paraffins or asphaltene production).

*. Well Productivity, Artificial Lift Design and Production Engineering to Recover Well´s Potencial and daily production.

Mature Field Revitalization Program - Closed Well Integrated Activation Services (Engineering, Equipment, Tools & New Non-Conventional Technologies).

RGP, S&S PRIME SERVICES to our Clients. Offering a High-Value Offer, both in Engineering and Technology through an OPERATION AGREEMENT and/or STRATEGIC ALLIANCE (Joint Venture, J. O.A.)

RGP and Client can agree to Evaluate and Study a fixed group of closed wells in one or many fields. RGP Engineering and Technological Capabilities will be put on practice in order to identify each well´s needs and requirement to put it back on production.

RGP responsability to Client´s request will cover these services working hand-in-hand with technical and operational teams:

A).- Complete and Thourough Engineering, Geoscience, Productivity and Production Studies on "EACH WELL" designated by Client´s technical and operacional teams to determine equipment, Tools, Technology and Other Resources to put it back on production.

A GENIUS is known by the

infinite and boundless frontiers of

his Human Thought

The sistemic and integral analysis of the oil and gas tubing string plugging problems must be seen from every possible angle to search, reach and implement a DURABLE, EFFECTIVE and PRECISE solution.

Case of Study

SCALE Deposition and Plugging Problems

In Old and New Wells (O&G)

ICMEC - Intensive Core Mechanical Effective Completion

THE ROBUST, DURABLE AND PRECISE SOLUTION TO SCALES, PARAFFINS AND ASPHALTENES WELL PLUGGING PROBLEMS.

In depth formation waters studies based on chemical composition and characterization. pH, alkalinityon canions and anions and hardness tendency evaluation.

RGP S&S, S.A Experts on MAGNETIC TREATMENT on Scales, Paraffins and Asphaltenes

In depth formation waters studies based on chemical composition and characterization. pH, alkalinity and hardness (Ca+; Mg+) tendency evaluation.

Solubility evaluation of anions (HCO3-; SO4=; CO3=: OH=) and TDS (total solid dissolved). Scaling compounds formation possibilities

Scales rate of nucleation and solid compound aggregation for carbonates (CaCO3, MgCO3) and Sulfates (CaSO4, MgSO4, BaSO4, SrSO4). RMUT basic design

ICMEC, intensive Core Mechanical Completion Final design incorporating RMUT

RGP Supply And Services, S.A.

Products and Engineering Value Offer

Supplying and providing our clients Integral Well Construction Services through Operation Agreements and Strategic Alliances (Joint Ventures, J.O.A.). Offering supply chain services on:

1).- Overall well planning and design.

2).- Management and control on well construction.

3).- Supplying Drilling and Completion Experts

4).- Solid Control Equipment

5).- Mud Logging Equipment with technical personnel,

6).- Company Men.

Operation Agreements and Strategic Alliances on Exploratory & Development Well Construction Drilling Projects.

Integral Well Construction Supplying Services for Development & Exploratory Drilling Programs

Supplying and providing our Clients Integral Well Construction Services through Operation Agreements and Strategic Alliances (Joint Ventures, J.O.A.) Offering supply chain services on:

1).- Drilling Bits;

2).- Directional Drilling Tools;

3).- Special Reaming Tools (Topo Units);

4).- Primary Cementing Equipment;

5).- Shooting Guns;

6).- Cased-Hole Logging Tools;

7).- Coiled Tubing Units;

8).- Well Testing Equipment.

Integral Well Intervention and Major Repair Jobs Supplying Services for Oil, Natural Gas Producing Wells, Condensate Wells, Secondary Waterflooding and Terceary Projects Wells & Geotermic Project Wells.

Supplying and providing our Clients Integral Well Services through Operation Agreements and Strategic Alliances (Joint Ventures, J.O.A). Offering supply chain services on:

1).- Workover rigs (repair and intervention jobs)

2).- Coiled Tubing Units;

3).- Well Hydraulic Fracturing;

4).- Stimulation and Acidicing jobs

5).- Chemical Treatments (Matrix Solvents and Hydrochloric Acid)

6).- Water Production Control Techniques and Studies

7).- Well Scale Plugging Problems

8).- Well Paraffins Plugging Problems

9).- Well Asphaltene Plugging Problems

10).- MAGNETIC TREATMENT Masification Program Design.

11).- Field Closed Wells Optimized Reactivation Program Design.

Experts and Specialist Personnel Supply Services to Manage, Control, Planning and Executing Well Construction Drilling, Repair and Intervention Programs.

Supplying and providing through Operation Agreement and/or Strategic Alliances expereinced management and specialist on drilling, well repair and intervention and geoscientist for specific Drilling Projects. Offering supply chain services on:

1).- Engineering Experts on Well Major Repairment

2).- Engineering Experts on Well Intervention (O&G)

3).- Geoscientists Experts on Petrophysics, Geochemistry, Geomechanics, Geologists.

4).- Engineering Experts on Hydraulic Well Fracturing

5).- Engineering Expertos on Well Stimulation and Acidicing

6).- Engineering Experts on Well Productivity

7).- Engineering Experts on Artificial Lift System and Production.

Remote/ Real Time (RTO/RTCO) Well Construction Continuous MONITORING. Integral, Overall and Remote Real Time Drilling and Workover Rigs Supervision.

Exclusive RGP, S&S services to our Clients. By applying the Unique I.W.M.M. platform (RGP´s own Well Construction Monitoring Software) the entire drilling project can be monitored and supervised from remote location by our experts on real time (RTO/RTCO).

Also this technological tool can be used to supervise "ALL Working RIGS" (Drilling, Workovers, Repair and Intervention Units) on the Clients O&G Fields at the same time.

A).- Unproductive Drilling and Workovers Execution Times.

B).- Visible and Invisible Time and Costs consuming activities.

C).- Tool & Equipment Undesaired Performance.

D).- Technical and Operational Personnel Low Performance.

E).- Drilling & Workovers KPI´s improvements.

RGP Supply And Services, S.A.

Technological Services and Engineering Value Offer

Eliminating Well´s Tubing String Solid Deposition Plugs and Corrosion impact with UTM (c) Technology

I.- Geochemistry, Petrophisycal, Geological and Reservoir engineering studies on oil, natural gas, condensate and high-temperature vapor producing horizons and pay-zones with severe, chronic and frequent solid Deposition Plugging in the tubing string with intensive corrosive impact.

​

II.- Well Intervention Performance Studies on Solid Deposition and Plugging Control Methods Applied.

​

III.- O&G Pay-Zones and Overall Field Optimization Studies Special Team aimed to recover old and new closed wells affected by plugging problems, solid deposition and tubing string corrosion.

Integrated Studies and Entire Field-Solution Design incorporating all RGP´s technological capabilities:

*. The Unique I.W.M.M. platform (RGP´s own Real-Time Well Intervention Monitoring Software)

*. Geosciencetist and Well Intervention Engineering Experts to identify root-causes on most comun problems (high-scale tendency and high water-cut production; paraffins or asphaltene production).

*. Well Productivity, Artificial Lift Design and Production Engineering to Recover Well´s Potencial and daily production.

Mature Field Revitalization Program - Closed Well Integrated Activation Services (Engineering, Equipment, Tools & New Non-Conventional Technologies).

RGP, S&S PRIME SERVICES to our Clients. Offering a High-Value Offer, both in Engineering and Technology through an OPERATION AGREEMENT and/or STRATEGIC ALLIANCE (Joint Venture, J. O.A.)

RGP and Client can agree to Evaluate and Study a fixed group of closed wells in one or many fields. RGP Engineering and Technological Capabilities will be put on practice in order to identify each well´s needs and requirement to put it back on production.