WaterLess Fracturing Technology

“Innovative Technology - Driving the Commerciality of Shale Gas -

Impacts on the Bottom Line”

Robert Lestz- GasFrac Chief Technology Officer

World Shale Gas Conference

9 Nov 2011
Do Shale Gas Completions and Water Mix?

Environmental Impacts

 Full Cycle Water Management – Sourcing, Disposal, Recycling, Treatment, & 

Producing

 Establishing the Water Supply Infrastructure – Wells, Ponds, Transfer Lines, Frac Tanks

 Long Term Disposal and Resulting Microseismic Events

 Reinjection and Souring of Reservoirs

 Handling Produced Minerals and Naturally Occurring Radioactivity Material

 Extended Flaring to Clean Up Wells

 Truck Traffic

 Perception of the Oil and Gas Industry as Good Neighbors and Environmental 

Stewards – Food vs. Fuel

Reservoir and Production Concerns

 Compatibility with the Shales

 What is Happening to the 60+% of the Water that is Not Recovered

 Relative Permeability Effects – Imbibition and Phase Trapping

 Why are Only Short Effective Frac Lengths Observed when Producing the Wells 

 Impact of Long Term Water Production on Ultimate Recoveries 

“Is Water Really the Best Answer or Just the Only 

Answer we Know?”
What is The Perfect Fracturing Fluid?

Stimulation of Mature Assets

 Ultimate Reservoir Performance & Certainty

 Create the Required Fracture Geometry

 Effective Proppant Transport

 Non-Damaging (Water Blocks, Polymer Residue, Clay Swelling)

 All Created Fracture Volume Contributes to Production

 100% Fluid Recovery 

 Only Proppant Remains in the Frac

 Economic & Environmental Performance

 Readily Available

 All Frac Fluids Recovered are Marketable or Recyclable

 Reduces Swabbing, Coiled Tubing Jetting, or Extended Flowbacks

 Eliminates Water Usage, Disposal Needs, & Venting/Flaring

 Operationally Safe

 Jobs can be Conducted Incident Free

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The Answer is Cross-Linked LPG

 LPG can be Handled as a Liquid on the Surface 

 Easily X-Linked to Create Desired Frac Geometry 

and Achieve Ideal Proppant Transport 

 Achievable and “Adjustable” Break Times

 Industry LPG Standards Ensures Fluid Consistency

 Post Job, it Disappears → ~90+% Fluid Recovery

 LPG is soluble w/natural gas

 1st contact miscible w/crude oil

 Very low viscosity, surface tension, & density

 Recovered Frac Fluid is Marketable

 No Waste Streams Created

 Sustainable, Recyclable, and Environmental 

 No Water Use in the Fracturing Operation 

 Inert to Salts and Other Reservoir Minerals 

 Reduced Truck Traffic to and from Location

 Readily Available and Widely Used by the Public 

 Numerous Industry Best Practices & Procedures 

Exist to Provide for Safe LPG Operations

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Photo courtesy of Stacey Walker – Chevron Energy 

Technology Company
Gelling LPG – Creating a Perfect Transport Fluid

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8 Seconds

15 Seconds
Comparison of LPG Properties 

w/Common Frac Fluids Today

 Liquid Petroleum Gas (LPG)

 Liquid Propane

 Viscosity = 0.08 cps 

(@105F)

 Specific Gravity = 0.51

 Surface Tension = 7.6 

dynes/cm

 Non Damaging – Inert 

with the Formation Clays 

and Salts

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 Frac Fluids Used Today

 Water

 Viscosity = .66 cps 

(@105F)

 Specific Gravity = 1.02 

 Surface Tension = 72 

dynes/cm

 Potentially Damaging –

Reactive with Formation 

Clays and Salts 
Effective Fracture Length

Propped Fracture Length

Water Based Fracturing Fluids

GAS FLOW NO GAS FLOW

Fluid Block

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 Damage Occurs in the Near Fracture Area due to 

Imbibition from the Water Leakoff
GAS FLOW

LPG as a Fracturing Fluid

Effective Fracture Length

Propped Fracture Length

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 Two Areas of Stimulation are Achieved – the Fracture 

and the Near Fracture Area due to the LPG Miscibility
Comparison of Frac Fluid Recoveries

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 Impact of LPG’s Lower Viscosity, Lower Surface Tension, 

Solubility/Miscibility, Lower Density (Higher Drawdowns) 

Leading to Higher % and Quicker Load Recovery

Source: Don LeBlanc, Eastex Petroleum Consultants Inc.
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Microseismic Evidence of Greater SRV’s

 The propane fracs 

had a microseismic 

response over an 

area of 12-15 acres

 The water frac had 

microseismic 

response over an 

area of 3-5 acres

 Note: Sparse data 

set 

LPG LPG

LPG Water

Source: Don LeBlanc, Eastex Petroleum Consultants Inc.
 Wapiti Field - Cardium Formation in Alberta, Canada

LPG Fracturing - A Superior Alternative.

Well Loc. Fluid Type Proppant Stages IP BOE/D

1 1-9

CO2 –

Frac Oil 495,000 15 133

2 4-17 Frac Oil 484,000 11 260

3 4-22 CO2 –

Frac Oil 495,000 15 215

4 12-14 CO2 –

Frac Oil 704,000 16 280

5 14-28 LPG 333,000 10 1,138

Source: http://cnrp.marketwire.com/client/seaview_energy/release.jsp?year=2011&actionFor=1395711&releaseSeq=1

These results highlight the effectiveness and benefits of LPG fracturing. A well with half the amount of 

sand and a third less stages produces FOUR times the production! With LPG Fracturing, Less can Yield 

more!

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Total Cost Advantage of LPG Fracturing

 Unit Cost or Total Cost?

 A Key Drilling Metric is Cost per Foot ($/ft)

 Flex-Rigs, PDC Bit, and Oil Based Mud Systems all 

Cost More on a Per Unit Basis - But all Result in a 

Lower Total Drilling Costs on a Per Foot Basis

 Key Completion Metric that Creates Value is 

$/Effective Frac Length (Not the Created Length)

 Conventional Frac ~ 2500 $/ft

 LPG Frac ~ 1500 $/ft

 LPG Fracturing is More Expensive than Water 

Fracturing BUT just as Horizontal Wells are 

More Expensive than Vertical Wells; Economic 

Results Have Justified Horizontal Wells as a 

Better Investment than Vertical Wells

 Achieving 3 - 5 Times Longer Effective Fracs will 

Offset the Incremental Cost by Delivering

 Lower $ / BOE Development Cost

 Higher Production and EUR’s / Well

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Total Cost Advantage of LPG Fracturing

 Additional Costs Savings for LPG Fracs

 No Water Wells/Ponds, Handling Facilities, Logistics, or Frac Tanks

 No Disposal Cost – One Way Hauling

 Less Truck Traffic to Location

 Reduced Flowback Costs Due to Quick Cleanup

 No Well Intervention to Kick Off Well 

 Additional Cost Benefit of LPG Fracs

 Minimal Gas Lost Due to Flaring During Cleanup

 Frac Fluid can be Recovered and with the Proper 

Equipment/Infrastructure it can be Sold with the Gas Stream or as 

Natural Gas Liquids or Used on a Future Job

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Can LPG/Propane be Handled Safely?

Source: PERC 2010 Propane Market Outlook

 U.S. Home Propane Market is 9.5 Billion Gallons/Year

Propane Heated Households
LPG Safety - How the Public Handles LPG!

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Propane dates back to 1911 and the industry has develop substantial “best practices” for propane to be used 

by the general public. Even in the worst case when propane vehicles are involved in accidents, the standards 

are such that the propane is still safe. It is these practices and standards that GasFrac uses and incorporates 

into all our equipment and procedures.
LPG Safety - How Professionals Handle LPG

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 Incorporate Existing Industry 

Recommended Practices (IRP) 

 IRP 4 – Well Testing and Fluid Handling

 IPR 8 – Pumping of Flammable Fluids

 IPR 9 - Basic Safety Awareness

 IPR 16 – Recommend Safety Practices

 IPR 18 – Flammable Fluid Handling

 Utilize the Broader LPG/Propane Industry

 Propane Education & Research Council

 Petroleum Service Association of Canada

 Canadian Association of Petroleum Producers

 Propane Gas Association of Canada Inc

 Conducted a 3rd Party HAZOP Evaluation of 

the Equipment Design, Operating 

Procedures, and Inspection Schedules with 

Suggested Modifications Incorporated

IRP 8 Table of Contents
GasFrac Expertise and Experience

Over 1000 Treatments Completed

 Largest job to date: 1 Million Pounds on a 10 stage (3900‟ horizontal)

 Highest pressure treatment to 13,050 psi

 Treating rates to 50 BPM & Proppant Concentrations to 8 lb./gal

Treatments placed into over 45 different reservoirs

 Oil, Gas, and Condensate reservoirs and Gas Storage Fields

 Deepest Treatment to 13150‟ TVD

 Formation Temperatures from 59°F to 300 °F

Have worked with over 50 clients in Canada and the United States

 Includes Chevron, Husky, EOG, Devon, Canadian Natural Resources, Nexen, ....

 Alberta, British Columbia, Saskatchewan, New Brunswick, Texas, Pennsylvania, New 

Mexico, Colorado, and Oklahoma

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Comments from the New York Department of Environmental 

Conservation Draft Generic Environmental Impact Statement - 2009

• Liquefied Petroleum Gas (LPG) – The use of LPG, consisting primarily of propane, has the 

advantages of carbon dioxide and nitrogen cited above; additionally, LPG is known to be a good 

carrier of proppant due to the higher viscosity of propane gel [55]. Further, mixing LPG with natural 

gas does not ‘contaminate’ natural gas; and the mixture may be separated at the gas plant and 

recycled [55]. LPG’s high volatility, low weight, and high recovery potential make it a good 

fracturing agent.

9.3 Green Or Non-Chemical Fracturing Technologies And Additives

Hydraulic fracturing operations involve the use of significant quantities of additives/products, albeit in 

low concentrations, which potentially could have an adverse impact on the environment if not properly 

controlled. The recognition of potential hazards has motivated investigation into environmentallyfriendly alternatives for hydraulic fracturing technologies and chemical additives.

It is important to note that use of „environmentally friendly‟ or „green‟ alternatives may reduce, but not 

entirely eliminate, adverse environmental impacts. Therefore, further research into each alternative is 

warranted to fully understand the potential environmental impacts and benefits of using any of the 

alternatives. In addition, the „greenness‟ needs to be evaluated in a holistic manner, considering the 

full lifecycle impact of the technology or chemical.

URS reports that the following environmentally-friendly technology alternatives have been identified as 

being in use in the Marcellus Shale, with other fracturing/stimulation applications or under investigation 

for possible use in Marcellus Shale operations:
Alternatives to Hydraulic Fracturing

“Alternatives to Hydraulic Fracturing. One of 

the most effective methods of reducing exposure 

to contaminated wastewater is to implement 

processes that do not generate wastewater. 

GASFRAC Energy Services is testing the use of 

liquefied petroleum gas (LPG), a fracturing agent 

that also transports the proppants into the 

fractures. First introduced in Marcellus Shale 

drilling in September 2009,LPGis derived from 

natural gas processing and consists mainly of 

propane in gel form (24). The process generates 

no wastewater since all of the LPG is recaptured 

back up the well.”
LPG Bulkers – 500 bbl capacity

1 - 206,000# Proppant Addition

1 - 70,000# Proppant Addition

LPG Fracturing Process

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Note: Because lines are flushed after the job with 

Nitrogen, the location is as dry as it was when 

GasFrac arrived. 
Wapiti Cardium - Hz Wells - GasFrac Vs. Offsets 

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Technology

1 Year Cumulative Production

25 MBOEG vs. 70 MBOEG

2.5 to 3 Times Greater Recovery!
Shale Gas Comparison 

LPG Vertical Wells vs. Water Horizontal Wells

 Frederick Brook Shale Same Age as Barnett and Fayetteville

 Corridor’s Success Results in an Operator “A” Buying into the Play & 

Bringing their “Best Practices”

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Operator

Well

Frac Job Type Job Size Post Frac 

Production

Comments

Corridor 

G-41

Vertical Well 

(w/2 stages)

0.25 Million lbs.

GasFrac (Waterless)

4.1 MMCFPD @ 

2083 psi 57 hours

after frac

Average 5.5 

MMCFPD the 

1

st week 

Operator “A” 

B-41

Horizontal Well 

(w/5 stages)

2.50 Million lbs.

4.7 Million gals of Water

Recovered 10% Load 

& No Gas

Well is 2000‟ 

offset to the 

G-41

Operator “A” 

G-59

Horizontal Well 

(w/5 stages)

2.50 Million lbs.

4.7 Million gals of Water

Recovered 4% Load 

& Negligible Gas

Water rates

have fallen 

Source: Corridor Public Release dated Dec 6, 2010 “Corridor Updates Elgin Shale Appraisal Program www.corridor.ca

 947 Truck Loads of Water vs. 30 Truck Loads of LPG

 Is the Reservoir Failing Us or Are We Failing the Reservoir?
GasFrac Marcellus Results

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 Environmental Impact of LPG Based Frac Fluids can be Minimal

 No Potable Water is Used in the Fracturing Process

 No Biocides Used

 No Waste Stream Created 

 No Reservoir Minerals, Nuclides, or Salts are Recovered with the LPG

 Minimal Flaring, Everything Pumped Can be Sold! 

 Smaller Quantities can be Used to Achieve Equivalent Effective Frac Length 

 Less Road Traffic – Less Fluids and No Return Trip for Disposal!

 LPG can be Recovered with the Natural Gas to the Pipeline or Recovered by Gas 

Processing where it can be Recycled for Fracturing or Sale.

 LPG Comes from our Reservoirs and Can be Used to Produce More 

Oil and Gas from our Reservoirs – Sustainability!

LPG Fracturing - Environmental Benefits

Refinery

Frac Site

Created

Fracture

Pipeline

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LPG Fracturing Achieves a 

Closed Looped Process
LPG Fracturing Technology – Game Changing 

and Creating a “Competitive Advantage”

 Enhanced Well Performance 

and Project ROR’s, ROI’s, 

NPV’s, and Development 

Cost/Bbl

 Effectively Addressing 

Environmental Impact

 Providing a Sustainable 

Stimulation Fluid for Oil and 

Gas Development!

Example of how Horizontal 

Drilling was the Game Changer 

in the 90’s in the Pearsall Field 

taking production from 4000 

BOPD to 90,000 BOPD!

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1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008

10

100

1,000

10,000

100,000

Pearsall Field

Time

Oil Production (bbl)

Gas Production (mcf)
“LPG Fracturing Technology” 

No Water, No Waste, All Sustainable Production

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Thank You!