PARAFFIN, SCALE, CORROSION & EMULSION

USING THE PARAGONE™

INTRODUCTION

Paraffin accumulation, corrosion scale and emulsions historically have resulted in significant economic losses and reduced profitability for oil producers and operators. Traditional control methods such as hot oil chemical treating, and paraffin scraping, have been arguably and marginally successful and temporary at best. Often these methods can have a serious long-term effects (especially in the case of hot oiling) on the economic productive life of the well.

Now there is a microbial product offered as a periodic treatment program that removes paraffin accumulation, inhibits corrosion and scale formation, and breaks emulsions. Paragone™ , is composed of naturally occurring microorganisms suspended in an aqueous solution. Paragone™ is nontoxic, nonhazardous and non-pathogenic. It will not harm humans, animals or plant life, and does not require permits from the Environmental Protection Agency for transportation, use or disposal. Paragone™ is not a solvent and is nonflammable and noncombustible. From a safety standpoint; the advantages over other treatments are obvious.

TREATMENT PROCEDURE

Paragone™ is batch treated by gravity feed, or pumped into the well-bore annulus. Usually, little or no modification of wellhead plumbing is required to accommodate the treating program.

PARAFFIN REDUCTION IN THE WELL BORE FLUIDS

Turbulence in the well-bore fluids created by fluid entry from the formation and pumping action will disperse Paragone™ throughout the well fluids. As the bacteria are dispersed and grow, they remove the paraffin molecules wherever they are crystallized, whether in the pumping equipment or in the surface facilities.

The metabolic processes of the bacteria degrade and resolubilize paraffin crystals with these beneficial results:

-The petroleum will not reform paraffin deposits at any point in the pumping system, the flow lines, the heater treater or the storage tanks;

-The viscosity of the fluids can be reduced, which can result in a proportional increase in the API gravity.

-The paraffin content as a percentage will drop as shown in current ongoing studies;

-The pour point will drop as the paraffin is dropping.

PARAFFIN REDUCTION IN THE FORMATION

Numerous studies of the effects of hot oiling over extended periods of time have pointed to the reduction of permeability and porosity at or near wellbore due to this practice. Because the Paragone bacteria are able to withstand extremes of pressure, temperature and velocity, they can gradually remove paraffin deposits that are interfering with the fluid entry into the wellbore. Eventually, the microbes will remove the higher molecular weight paraffins that have a melting point above the formation temperature. They will also drop the melting point.

PARAFFIN IN THE PUMPING AND STORAGE SYSTEMS

ParagoneTM treatments are designed to provide sufficient volumes of bacteria to clean paraffin from mud anchors, gas anchors, perforated nipples, pump valves, sucker rod strings and tubing walls. Eventually the bacteria may colonize the downstream production facilities, cleaning out flow lines and storage tanks. In recorded tests, BS&W or tank bottoms have been dramatically reduced by ParagoneTM treatments.

EMULSION REDUCTION

Bacteria have been proven useful in removing emulsions from production systems. The microbes have also proven to be effective in treating reverse emulsions. Since the microbes are primarily concentrated in the oil/water interface, emulsions are usually broken early in the process.

INHIBITION OF SCALE AND CORROSION

The active organisms in Paragone™ secrete and deposit a film of polysaccharide that forms a continual coating on well components, such as tubing, rods and pumps. This coating reduces scale and corrosion and prevents future nucleation as long as the augmentation of the organisms is maintained

INHIBITING THE FREEZING OF FACILITIES

In six (6) years of use in the Rocky Mountain Region, wells on ongoing treatments with Paragone™

tend to have fewer problems related to freezing than offset wells not on the program. During extreme freezing periods, wells have been treated, shut-in and put back on production without fluids freezing and restricting or preventing movement. This has been observed as far north as North Dakota where the temperatures can be as low as 50 below zero. The bacteria secrete fatty alcohols and fatty aldehydes in addition to the paraffin changes that contribute to this occurrence.

ADDITIONAL BENEFITS

In applications in the Northern Rocky mountains, Paragone™ has significantly reduced the quantities of Hydrogen Sulfide present in the oil stream. Research is now underway to determine if Paragone™ can be used to "sweeten" gas streams downhole, thereby reducing the load on surface sweetening facilities. Additional studies are currently in process or under consideration for use of the product in Microbial Enhanced oil Recovery projects, as a perforating/completion fluid and as a demulsifier in horizontal wells in North Dakota

INITIAT1ON OF TREATMENT PROGRAM

If no chemicals materials are being injected into the well-bore, treatments can commence immediately. If chemicals or toxic materials are in the system or are part of the current treatment program, all chemicals should be discontinued for 7 to 10 days. After this amount of time, initiation of the ParagoneTM treatment may commence.

PARAGONE’S COST EFFECTIVENESS

Paragone™ treatments can be very cost effective when compared to conventional methods which includes hot oiling of tubing, flow lines and tank batteries; stripping costs and rig time; chemical costs and the costs of tank turn downs. The size and cost of treatments depends on several factors including oil and water production rates, the severity of the paraffin, scale, corrosion, and emulsions, the down-hole configuration and the intervals of the current treatment program.

PARAGONE MECHANISMS

Paraffin Reduction

Paragone degrades and resolubilizes paraffin that accumulates in well-bores, production equipment and tank batteries. The mechanism involves two processes.

1.) Degradation of the paraffin;

2.) Surfactants or enzyme catalysts, produced by tile bacteria cause the paraffin to become soluble in the oil again.

Emulsion Reduction

Due to the strength of the microbes in the oil/water interface, surfactant production and elimination of free oxygen, emulsions tend to break down or not to form at all.

As stated previously the ParagoneTM bacteria produce surfactants that cause paraffin and other precipitates to go back into solution. They also reduce the free oxygen avai1ab1e, which inhibits oxidation reactions such as:

Fe SO3 + O -> FeS04 (the conversion of iron sulfite to iron sulfate)

Iron sulfate is less soluble than iron sulfite. In the case of compounds containing calcium and sodium, the microbes will use the calcium and sodium ions in metabolic reactions. Metabolically produced polysaccharide films coat and prevent nucleation of scale molecules as well as the production of certain corrosion.

MICRO-CLEAN™

Micro-Clean is a combination of a natural organic dispersant and a bacterial mixes that bioremediates hydrocarbon contamination from any solid surface. The dispersant removes the hydrocarbon immediately by decreasing its surface tension, thus forming microscopic spherical droplets. These microscopic droplets are quickly bioremediates by the bacteria due to their increased surface area. The digestion begins as soon as Micro Clean is applied and continues after the product is washed from the surface. The final by-products are fatty acids, water, and CO2.

Typical oil field applications include wellheads, pumping units, engines, compressors, concrete pads, fueling areas, etc.

PARAGONE-M™

PARAGONE-M™ is a blend of Paragone and Micro-Clean, which is designed to dissolve paraffin upon contact and evacuate it from the production system more quickly than has been seen before. In applications to flowlines and production tubing, soft and baked paraffin crystals, scale, gravel and other debris are purged from the system. Heater treaters can be cleaned of sediment, scale and other accumulations. Tank bottom have been dropped from 5.0% to one-half of 0.1%. This can occur within (1) day and during one (1) treatment.