Op#mizing	Pressure	Drawdown	to	Improve	Oil	Recovery

Mississippi	Lime	Produced	Water	Conference	

June	27,	2013	

www.petroriveroil.com June	2013

An						 										company	
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Private	Equity	backed	opera4onal	professionals	in	the	Oil	and	Gas	Sector:	

• Guided	Private	Equity	investments	in	Oil	and	Gas	equi4es	and	asset	level	

par4cipa4on			

• Acquired	the	assets	of	a	small	Kansas	independent	in	early	2012,	including	

numerous	wellbores	and	70	squares	proprietary	3D			

• Have	amassed	approximately	100,000	acres	in	ML	acreage	between	the	

Central	Kansas	UpliO	and	Nemaha	Ridge	

• Recently	completed	reverse	merger,	trading	OTC	PTRC		

Who	is	Petro	River	Oil?	
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This	is	not	a	Shale	Play.
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Why	All	the	Dead	Bodies?	

Cri4cal	Engineering	Comple4on	Techniques	and	Lessons	Learned	in	the	

Mississippi	Lime	

•		Petrophysical	analysis	problems	

•		Whole	core	evalua4on	problems	

•		Lamina4ons	

•		Natural	Fractures	

•		Historical	and	current	produc4on	methodology	

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Why	Does	and	Doesn’t	the	Mississippi	Lime	Play	Work?	

Cri4cal	Engineering	Comple4on	Techniques	and	Lessons	Learned	in	the	

Mississippi	Lime	

•		Successful	wells	

•		Failed	wells	

•		OOen,	the	difference	=	Drawdown	

•		Case	studies	&	experiences		

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Drawdown	is	the	Primary	Oil	Mobiliza#on	Factor	

What	is	Drawdown?	

•		Drawdown	is	the	difference	between	reservoir	pressure	and						

producing	bo]omhole	pressure	

•		Drawdown	allows	oil	to	move	with	the	water	

•		Lack	of	drawdown	causes	water	to	move	preferen4ally	to	oil	

•		Lack	of	drawdown	bypasses	oil	in	the	reservoir	

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Darcy’s	Law	for	mul4phase	flow:	

Rela4ve	Permeability:	

Token	Equa#ons	
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What	Factors	Determine	Drawdown?	

1.	Inflow	

•		Frac	design	

•		Lateral	length	

•		Reservoir	permeability			

•		Lamina4ons	

•		Natural	fractures	

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What	Factors	Determine	Drawdown?	

2.	Ouclow	

•		Pump	Size	

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How	Do	We	Balance	Inflow	and	OuSlow?	

•		Well	design	

•		Empirical	inflow	data	/	ver4cal	wells	

•		Horizontal	lateral	lengths	

•		Hydraulic	fracture	design	

•		Facili4es	design	

•		Infrastructure	

•		Luck	

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Backwards	Well	Design	–	A	Real	Strategy	

•		How	much	fluid	can	be	moved?		Ouclow.	

•		How	much	fluid	will	a	frac	stage	produce?		Stage	Inflow.	

•		How	many	frac	stages	will	it	take	to	feed	the	pump?					Total	well	Inflow.	

•		What	is	the	frac	stage	spacing	in	the	horizontal?	

•		Number	of	frac	stages	*	spacing	=	desired	lateral	length.	

•		Ver4cal	wells			

•		Luck	again	

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Conclusions	

Trea-ng	the	Mississippi	Lime	like	a	Shale	Play	is	Hazardous.		

• Understand	what	can	be	done	and	can’t	be	done	to	maximize	drawdown.	

• Monitor	the	drawdown.	

• Correlate	well	results	to	the	engineering	data.	

• Refine	well	design	and	comple4on	methods.	

• Correct	anomalous	wells.	

• Embrace	the	rabbit’s	foot	
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Petro	River	Oil	is	commi]ed	to	funding	training	and	hiring	veterans.	We	have	

teamed	up	with	the	Na#onal	Founda#on	for	Veteran	Redeployment	(NFVR)	which	

is	a	501(c)3	charitable	organiza4on	sponsored	by	domes4c	oil	and	gas	companies.	

NFVR’s	mission	is	to	impact	veteran	unemployment	by	offering	voca4onal	training,	

transport,	mentorship	and	job	placement	assistance	to	veterans	seeking	careers	in	

the	oil	and	gas	industry.	

For	more	informa4on,	please	visit	www.nfvr.org
Disclaimer	

Except for statements of historical fact relating to the company, this Corporate presentation contains certain "forwardlooking information" within the meaning of applicable securities law. Forward-looking information is frequently 

characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", 

"prospective" and other similar words, or statements that certain events or conditions "may" "will" or "could" occur. 

Forward-looking statements such as the combined independent and management estimates of total petroleum initially 

in-place and recoverable resources are based on the opinions and estimates of management and the company's 

independent evaluators at the date the statements are made, and are subject to a variety of risks and uncertainties and 

other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking 

statements, which include but are not limited to risks inherent in the heavy oil and oil sands industry, regulatory and 

economic risks, and risks associated with the company's ability to implement its business plan. There are numerous 

uncertainties inherent in estimating total petroleum initially in-place and recoverable resources, including many factors 

beyond the company's control. In general, estimates of total petroleum initially in-place and recoverable resources are 

based upon a number of factors and assumptions made as of the date on which the estimates were determined, such as 

geological, technological and engineering estimates which have inherent uncertainties. Contingencies affecting the 

classification as reserves versus resources relate to the following issues as detailed in COGE Handbook: ownership 

considerations, drilling requirements, testing requirements, regulatory considerations, infrastructure and market 

considerations, timing of production and development, and economic requirements. There is no certainty that any 

portion of contingent resources will be commercially viable to produce. There is no certainty that any portion of the 

prospective resources will be discovered. If discovered, there is no certainty that it will be commercially viable to 

produce any portion of the resources. Petro River Oil, LLC undertakes no obligation to update forward-looking 

information if circumstances or management's estimates or opinions should change, except as required by law. The 

reader is cautioned not to place undue reliance on forward-looking statements. 

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