February 2024

SPE PERMIAN BASIN SECTION

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Dis nguished Lecturer Member of the Month Study Group Mtgs SPE PB Scholarships

Courtesy of Chevron —Photo by: Travis Louden

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SPE Permian Basin Calendar of Events…………………………..……………………………………………………………………………….3 Chairman’s Corner……..…………………………………….…………………………………………………………………………………………….4 SPE PB General Sec on Mee ng…….....…………………..………………………..……………………………..….….………………………6 SPE PB Member of the Month…….....…………………..………………………..…………………….…………..….….………………………9 SPE PB: Reservoir Study Group Mee ng...………………………………..……………………...…………..….….………………………12 SPE PB: Comple ons & Opera ons Study Group Mee ng...…….…..…….………………...…………..….….…………………14 Texas Tech University SPE Clay Shoot……………………………………………………………………...……………………………………16

Technical Tour...……………………...……..……………………....……………….…….....…………………..……………………………………20 SPE PB: Data Analy cs Study Group Trivia Night…....……………….…….....….………………..……………………………………25 SPE Permian Basin 2024 Scholarships……………….......……..….………….…….....………………………………….…………………26 Midland PPDC 2023 Course Schedule……....……..…….……….……….…….....…………………………………………………………28 SPE Permian Basin 2024 Awards Banquet…………......……..….………….…….....………………………………….…………………30 SPE Permian Basin Board………………………..…….………………………………………………………………………………………………31

ADVERTISE IN THE PIPELINE Contact Miles Landry for affordable pricing!

Miles.Landry@permianres.com

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Reservoir Study Group Mtg / DASG Trivia Night

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TTU Clay Shoot

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Save The Date!

SPE PB Reservoir Study Group Mtg: Feb 15, 2024 SPE PB Data Analy cs Study Group—Trivia Night: Feb 15, 2024 SPE PB General Sec on Mtg—Dis nguished Lecturer: Feb 20, 2024 SPE PB Comple ons & Opera ons Study Group Mtg: Feb 22, 2024 Texas Tech SPE Clay Shoot: Feb 23, 2024 SPE Regional Award Nomina on Deadline: Mar 1, 2024 SPE PB Scholarship Applica on Deadline: Mar 31, 2024 SPE PB Awards Banquet: May 9, 2024 Publica on of the SPE-PB Sec on

www.spepb.org

4 CHAIRMAN’S CORNER

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Taylor Montoya Senior Reservoir Engineer Civitas Resources SPE-PB Chairman 2023-2024

Fellow SPE Permian Basin Sec on Members, As we dive into the second month of 2024, it is my pleasure to provide you with a comprehensive update on the latest developments, achievements, and upcoming events within our professional organiza on. If you enjoy attending technical luncheons, fundraising sporting events, networking socials, or volunteering at the community service activities, there are countless ways to get involved this year. Furthermore, if you have ambition to take on a leadership role or present your work to the section, we have room to plug you in this upcoming year. Please reach out if interested. Any of the current officers would be happy to discuss their experience with you and how to get more involved. Stay tuned in the upcoming months for more information on succession planning for the following term.

Looking ahead, we have an exci ng lineup of events for the month of February. We will be hos ng a series of technical events featuring industry experts who will delve into casing remedia on technologies, reservoir op miza on strategies, and integrated problem-solving approaches.

Most notably, we will be hos ng a SPE Dis nguished Lecturer on February 20th over lunch me at the Petroleum Club. Janelle Lawer, Technical Manager at Woodside Energy, hails all the way from Australia and will be presen ng a mul -company collabora ve case study that was performed to understand how to accurately es mate mercury concentra ons in natural gas resources. Given the cri cal role natural gas plays in the world’s energy supply chain, this presenta on will provide insight into the technical challenges our industry faces in other basins.

Addi onally, the Data Analy cs study group along with Corva will be hos ng a networking mixer on February 15th at Venezia. This trivia event will allow you to showcase all the random fun facts you know, provide an opportunity to connect with other members, share experiences, and build professional rela onships in a relaxed se ng.

(Con nued on Next Page)

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5 CHAIRMAN’S CORNER

Last but certainly not least, I wanted to highlight our chapter’s amazing upcoming scholarship opportuni es.

If you know of a high school senior, undergraduate or graduate collegiate student who is interested in pursuing a career in the oil and gas industry and has es to the Permian Basin, please direct them to our scholarship applica on. The online forms are due March 31st. Scholarships in the range of $3,000 - $6,000 per student will be awarded at our upcoming banquet in May. Last year, we awarded more than $110,000 to students! Funds for our scholarships are raised primarily through the sec on’s golf tournament, clay shoot, the CO2 conference, and addi onal support from our study groups. We are very apprecia ve of the generosity exhibited by our sec on members and Permian Basin companies that support our local events.

This scholarship program would not be possible without all of you. Please help us spread the word and share with your colleagues, family, and friends!

As we navigate the dynamic landscape of the petroleum industry, let us remain united in our pursuit of excellence, knowledge sharing, and community volunteerism. Together, we will con nue to make significant strides in advancing the field of petroleum engineering.

Remain vigilant of your email inbox and LinkedIn feed for event updates and registra on details. If you would like to sponsor, collaborate, or provide feedback, feel free to reach out to us at spepb@outlook.com.

Thank you for your con nued dedica on to our chapter.

Cheers,

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20 Technical Tour

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TECHNICAL TOUR Summary of the 2023 CO2 Conference, Midland Texas Dec 4-7th, 2023 By: Steve Melzer If you have never been to our Conference before and read this recap of the 2023 version, we believe you will soon realize that it is a different CO2 conference. It now has 29 years of history dedicated to taking on the many prac cal challenges of CO2 flooding and have merged now with the coming and similar challenges of carbon capture and storage. We like to think of it as a bou que conference providing the best forum for highligh ng the best prac ces our industry u lizes in all CO2 applica ons – from the surface facili es to the wellbores to the subsurface and reservoir issues. The conference does not host exhibitors; it emphasizes personnel networking, plenary technical, and business sessions. The agenda gets more technical content as the week con nues.

The reason for the loca on is that many recognize the Permian Basin as the world leader in those fieldbased CO2 technologies and the tools and prac ces used. Our annual CO2 field trip is also an op on for the a endees that have never visited a CO2 capture or injec on site. Another value is in-person a endance the conference offers as a unique networking opportunity with a group of folks versed in all ma ers of CO2. To reach that networking goal, we are again a personal a endance conference having had to adapt to the virtual days of 2020. Midland Texas’ George and Barbara Bush Conven on Center downtown provides our physical networking op on. We also appreciate that we have a loyal interna onal audience so we do accommodate a virtual interna onal presence. The growing U.S. and worldwide interest in carbon capture and storage has a racted a growing audience to our themes we hosted this year.

FIELD TRIP: The 2023 version of the annual four-day CO2 Conference in Midland kicked off on Monday the 4th of December with its 20th annual field trip. This year the venue was Kinder Morgan’s GoldsmithLandreth CO2 flood, processing and recycle facili es in northwestern Ector County, 20-miles north of Odessa, Texas. Both injec on and produc on well stops were included along with a “satellite” sta on that gathers, separates, and measures the volumes of fluids produced from the area wells. The main gas processing/ recycle plant was an important part of the visit where the Kinder Morgan field folks described what the visitors were seeing and where the recycled CO2 is dehydrated and compressed to return the CO2 to the field.

This par cular recycle facility also includes an addi onal liquids removal plant for capturing a large por on of the liquid natural gases (propane components and above). Pilot Energy Systems personnel designed the plant and carefully described the process for the par cipants. They told the group that the hydrocarbon-rich CO2 stream produced and processed at the plant consistently recovers an addi onal 20% of the crude oil volumes that are sold at the field’s LAC unit.

As the plans for the field trip were developing, it turns out that the Goldsmith field lies very near the recently announced Oxy Direct Air Capture (DAC) ‘Stratos’ plant in western Ector County. The field trip was a bit ahead of schedule so an unannounced side trip was worked in to the schedule to visit the area of the DAC site. Oxy’s plant was designed by Carbon Engineering and is designed to capture ~0.5 million metric tons per year (about 50 million cubic feet per day) of atmospheric CO2. It is expected to be on-line some me in 2025 and site ac vity is well underway. The captured CO2 will also be dehydrated, compressed, injected, and geologically stored into Permian Basin area forma ons. The ongoing site work also included Kinder Morgan’s Bravo/Stratos interconnect CO2 pipeline to the plant site.

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21 Technical Tour

CARBON MANAGEMENT WORKSHOP: On Tuesday, Dec 5th, while COP28 was running on the other side of the world deba ng the future of fossil fuels, Mike Moore, Workshop Director, introduced the opening keynote presenta on of the 21st annual Carbon Management Workshop. Interna onally known speakers addressed the key topics of using CO2 in reservoirs to make oil but also taking advantage of the incidental storage that occurs during the process. Other speaker addressed policy, finance and legal aspects of forming projects to take advantage of CO2 capture from emission sources and the newly passed 45Q tax credits.

The emerging CO2 capture and storage business in the Gulf Coastal region was addressed by two speakers emphasizing the upsides of new business there but with the many issues related to regulator and community engagement that have emerged as the project plans get formulated and publicized. A Tuesday evening recep on closed out the first day of the Carbon Management Workshop.

The Wednesday morning session provided a con nua on of the Tuesday CCS subjects where insurance ma ers for CCS were highlighted and the fact that many projects are seeing regulatory and public interacon challenges. Rob Bruant of B3 Insight closed out the morning with the results of their detailed modeling work of produced water injec on in the Permian Basin and Gulf Coastal regions. The lessons being learned with high volume water disposal are considered the best analogues for large volume CO2 disposal. Their modeling of volumetric produced water injec on is now being extended to es ma ng pseudo-sta c (regional) reservoir pressures and is designed to assist operators in forecas ng possible future curtailments of injec on and be er quan fying drilling risks in localized areas. Their broader analysis of 5-year injec on data shows basin-wide average increases in shallow forma on pressure of 9% for the Delaware Sub-Basin and 3% for the Midland Sub-Basin. Their work is now being extended into the Texas and Louisiana Gulf Coast region.

Dr. Mark Zoback, Stanford Professor Emeritus, was approached during the summer and agreed to give the Wednesday luncheon keynote with an emphasis directed to the subjects of subsurface storage sites.

His decade-plus of experience working and teaching has included working with the various State and Federal regulators that find themselves reviewing the many incoming CCS project proposals for carbon capture and CO2 injec on the water disposal permits. The en re a ernoon was to have the subsurface rights owners and regulator subjects addressed so that the 200+ audience could begin to empathize with their difficult posi on and their need to be thorough during the permit review and approval process. Those lessons being learned with massive volumes of water disposal are new and need to become more fully ve ed in the CCS and oil/gas communi es. Moreover, the incen ves for capture rest with surface interests (plants with emissions) leaving some concern that a subsurface injec on site’s suitability may be of secondary status in the coming CCS industry.

The rest of the Wednesday PM session included two panels dedicated to providing insights and perspec ves from the State CCS and CCUS regulators. The general public arena consensus is that CO2 capture and storage is new and without any large experience despite the several areas of the Country that have been doing CO2 transporta on and injec on at very large scale for almost 50 years. One of key takeaways from the a ernoon panels was the need for early (and o en) public educa on. The other lesson in the session was that the incidental storage during CO2 EOR possesses a long and safe history and the lack of Class II proposed storage projects probably has two driving mo ves 1) the enhanced tax credit value (extra $25/ metric ton) for CCS vs. CCUS and 2) project financing en es’ desire to avoid projects that will produce oil even in a long-term proven process and what will result in a low- or poten ally carbon neutral barrel of oil.

THURSDAY CASE HISTORY THEME SESSIONS: Thursday’s session always brings in the CO2 prac oners with the real project and valuable field experience. They relate their case histories and learnings from their years of experience and network with like-minded engineers and geologists. Many will not have been present early in the week so a tradi on has developed where the Tuesday and Wednesday messages are sum-

22 Technical Tour

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TECHNICAL TOUR Summary of the 2023 CO2 Conference, Midland Texas Dec 4-7th, 2023 By: Steve Melzer marized in the first agenda topics on Thursday (those summary slides are available on the Conference website). From that point on in the agenda, the case histories and new learnings fill the menu.

This year summarized some effort to advance the San Andres forma on horizontal play into a follow-on EOR process where its 300+’ thick residual oil zone could be commercialized. Many challenges need addressing such as how best to re-pressurize a pressure depleted forma on while another is overcoming CO2 breakthrough from one well to another (reservoir conformance). Next, KinderMorgan reviewed the glorious history of the West Texas giant oilfield, the Yates field, with its 2+ billion barrels of oil in place and huge residual oil zone below the main pay interval. They recapped the history of the double displacing CO2 immiscible process (gas cap {downward} and water leg {upward}) and showed that it has worked excep onally well over the nearly 100 years of produc on. A University of Bergen (Norway) speaker addressed the challenges of CO2 breakthrough and reservoir conformance by use of a specially formulated foam addi ve to the injected CO2.

The results could well apply, at least in part, to the challenges of reservoir conformance in highly hydrofractured reservoirs.

A er lunch, Occidental Petroleum reported on their simula on studies a emp ng to find the op mal well configura ons to assure be er CO2 containment and avoiding off-lease losses of CO2 and oil. A combinaon of alignments of ver cal wells and well-placed horizontals were simulated looking at containment op miza on. The next talk was given by a speaker from Calgary, Alberta highligh ng their vast repertoire of CO2 flood experience in the Joffre Viking and Weyburn fields which are serving as a valuable transi on into what they believe will be a very large Canadian business in CCS. Their Weyburn CO2 flood has successfully applied horizontal well geometries in the naturally fractured reservoir flood pa erns and, as such, is the only horizontal well CO2 flood in the World.

The final presenta on of the Conference was made by Ma Wallace of the Advanced Resources Internaonal firm. With some help from his friends and flooding companies, they have compiled the current (end of 2022) status of CO2 flooding in the most CO2 ac ve region of the world (the U.S.) He related the expanding history of CO2 flooding up un l 2020 whereupon a decline of injec on and produc on started a er the COVID year of 2020 and con nues into 2022. The most recent survey is showing that the two-year rate of produc on decline has slowed in 2022 but that the new CO2 injec on was remaining pre y flat. New CO2 supplies were very ght up un l 2020 and that all changed beginning in 2020. Most es mates of CO2 pipeline throughput show decreases of 30-50% over pre-COVID levels. However, he noted the growth in anthropogenic CO2 as a component of the total CO2 source produc on is increasing and may portend a bo oming out of the oil declines as new surface sources of CO2, s mulated by the 45Q tax credit, come into the flooding marketplace.

The Conference volunteers wish to take this opportunity to thank the Conference sponsors and especially the PB SPE Sec on and the 2023 Pla num sponsors, Occidental Petroleum and Kinder Morgan, and the Silver level group. A full list of the loyal sponsor group is shown in the website – www.CO2Conference.net.

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23 Technical Tour

The Applied Petroleum Technology Academy, host for this, the 29th annual conference and past conferences, is a non-profit en ty that will be providing the net revenues made during the week to the Society of Petroleum Engineers for their scholarship program and to the University of Texas of the Permian Basin for their Engineering, Geology and Business programs and student scholarships. APTA, through the work of the PB SPE Sec on, has proudly provided financial support in the form of scholarships to over 750 students with total funds exceeding $800,000.

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Midland College PPDC

PPDC Courses

Midland College PPDC 221 N. Main Street Midland, TX 79701 (432) 683-2832 h ps://mcce.midland.edu > Oil & Gas Training

Online Division Order Cer ficate Program: Module 5 of 6 - Oil & Gas Law: Instructor: Alyce Hoge February 1-29, 2024 Cost: $612.50, Out of State: $637.50 Online Lease Cer ficate Program: Module 5 of 6 - Oil & Gas Contracts Instructor: Alyce Hoge February 1-29, 2024 Cost: $612.50, Out of State: $637.50 Online PLM Cer ficate Program: Module 5 of 6 - Legally Enforceable Oil & Gas Contracts Instructor: Alyce Hoge February 1-29, 2024 Cost: $612.50, Out of State: $637.50 Introduc on to Oilfield Opera ons Instructor: Albert Garza February 6-7, 2024, 8:30 am to 5:00 pm Cost: $625, Out of State $650 Introduc on to Structured Query Language (SQL) Instructor: Mark H. Edgar February 6, 2024, 8:30 a.m. to 5:30 p.m.

Cost: $475, Out of State: $500 DOT Audit & Recordkeeping Seminar Instructor: San ago Talamantez February 6, 2024, 8:00 a.m. to 12:00 p.m.

February 6, 2024, 1:00 a.m. to 5:00 p.m.

Cost: $250, Out of State: $275

Managing Sucker Rod Li Well Failures Instructor: Albert Garza February 8, 2024, 8:30 am to 5:00 pm Cost: $550, Out of State $575 Right of Way Acquisi ons Training (Virtual) Instructor: Don Valden February 15, 2024, 8:00 am to 5:00 pm Cost: $500, Out of State $525 Drone Pilot Instructor: Venture Robo cs February 17-25, 2024 Saturdays 8:30 am – 3:00 pm, Sundays 1:00 pm – 4:00 pm Cost: $350, Out of State $375

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29 Midland College PPDC

Introduc on to Geology for Non-Geologists Instructor: Paul Pausé February 20-21, 2024, 8:30 am to 5:00 pm Cost: $1000, Out of State $1025 Incident/Accident Inves ga on Instructor: R. Glen Gann February 22, 2024, 8:30 a.m. – 5:00 p.m.

Cost: $200; Out of State $225 Waterflooding: Performance Predic ons and Surveillance Instructor: Dr. Michael L. Wiggins February 26 – March 1, 2024, Mon-Thur 8:30 am to 4:30 pm, Fri 8:30 am – 12:30 pm Cost: $3975, Out of State: $4000 Oil & Gas Performance Metrics: Concepts & Applica ons Instructor: Jim Tague March 4, 2024, 8:30 a.m. to 4:30 p.m.

Cost: $1,000, Out of State: $1,025 Advanced Structured Query Language (SQL) Instructor: Mark H. Edgar March 5, 2024, 8:30 a.m. to 5:30 p.m.

Cost: $575, Out of State: $600

Introduc on to Oil & Gas Reserves Instructor: Jim Tague March 5-6, 2024, 8:30 a.m. to 4:30 p.m.

March 7, 2024, 8:30 a.m. to 12:30 p.m.

Cost: $2,000, Out of State: $2,025 Oilfield Terminology Instructor: Tommy Lent March 19-20, 2024, 8:30 a.m. to 4:30 p.m.

Cost: $625, Out of State: $650 Petroleum Land Basics: Becoming LandWise Instructor: Ralph Lea March 26-28, 2024, 8:30 a.m. to 5:00 p.m.

Cost: $895, Out of State: $920 Oil & Gas Performance Metrics: Concepts & Applica ons, A Non-Technical Training for Energy Finance Professionals Instructor: Jim Tague April 1, 2024, 8:30 a.m. to 4:30 p.m.

Cost: $1,000, Out of State: $1,025 Remedia on and Restora on of Hydrocarbon and Brine Contaminated Soils - Self-paced and Online Instructor: Dr. Kerry Suble e April 1 – May 10, 2024 Cost: $750, Out of State: $775

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SPE PB Board

2023-2024 SPE Permian Basin Board Members Posi on Chairman

Board Member Name Employer Taylor Montoya Civitas Resources

Email - Primary tmontoya@civiresources.com

Vice-Chairman Treasurer Secretary Past Chair Awards Banquet Chair Clay Shoot Chair CO2 Conference Chair Community Rela ons Chair Golf Tournament Chair Marke ng Chair

Tyler Yancey Paul Brown Ma hew Farris Shivani Vyas Aylin Ordonez Dalton Kille Pamela Boring

Chevron Chevron Core Lab Odessa Separator Inc DHI Extract Companies Baker Hughes

Yanceyty@chevron.com Paulbrown@chevron.com Ma hew.Farris@corelab.com Shivanivy928@gmail.com aordonez@Dalboholdings.com Dkille@extractproduc on.com Pamela.Boring@bakerhughes.com

Heidi Higginson

Endeavor Energy Resources Heidih@eeronline.com

Jeane e Reyes Sara Booth

Endeavor Energy Resources Jreyes@eeronline.com SM Energy Sara.f.foster@gmail.com

Member at Large

Libby Einhorn

Angelo State

Libbyeinhorn@aol.com

Newsle er Chair Programs Chair Public Rela ons Chair Scholarship Chair Student Chapter Chair (UTPB & TTU) Study Group Chair Vice-Treasurer Young Professionals Chair

Ryan Smith Andrea Switzer Miles Landry Ma hew Watson

Chevron Velocity Insight Permian Resources ConocoPhillips

Ryan.a.smith@chevron.com Andrea.e.switzer@gmail.com Miles.Landry@permianres.com Ma hew.a.watson@conocophillips.com

Victoria Kuzmich

Community Na onal Bank

Vkuzmich@cnbtx.com

Gustavo Gonzalez Raul Paz

Odessa Separator Inc ConocoPhillips

Ggonzalez@odsep.com Raul.Paz@conocophillips.com

Andrew Carpenter

Diamondback Energy

ACarpenter@diamondbackenergy.com

Study Group Chairs Data Analy cs Study Group Comple ons & Operaons Study Group Comple ons & Operaons Study Group Reservoir Study Group Produc on & Facili es Study Group

Chair Person Name

Employer

Email

Vincent Doczy

ConocoPhillips

Vince.Doczy@conocophillips.com

Erica Sledge

Erica.sledge411@gmail.com

Jesse Street

Universal Pressure Pumping Jesse.Street@patenergy.com

Johan Daal

ConocoPhillips

Johan.a.Daal@conocophillips.com

Mar n Lozano

Diamondback

mlozano@diamondbackenergy.com

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