PROJECTS

Melland Engineering, Inc. has provided petroleum engineering and geological services on the following current and past projects. Some projects are not listed due to confidentiality.

Exploration Operations

MEi is currently managing the exploration program for Hangtown Oil, LLC (HTO) in California.  MEI is managing land acquisition, permitting, drilling, completion, and production for HTO's operated properties.  For previous exploration programs, MEi performed economic analysis and developed operating strategies for exploration wells and production purchases.  Planned, designed, obtained all permits, drilled, and tested exploration wells in Northern and Southern California. Planned facilities for all wells and put successful wells on production. Requested and evaluated bids from all contractors. Monitored production and pressures after wells were on production.

Kansas

MEi provided petroleum engineering and geological services to permit and recomplete an oil well to an EOR injection well.  Handled all permitting and design issues with the Kansas Corporation Commission.  Supervised field operations.  MEi provided geological services to assist operator with development drilling by mapping several horizons to instruct operator where to successfully drill development well.  MEi provided engineering and geological services to evaluate land owner's mineral interests.

Albania

MEi provided petroleum engineering services to study the feasibility of installing a cyclic steam pilot in the Patos-Marinza oilfield. The project involved purchasing a steam generator, selecting an optimum pilot area, determining potential recoverable reserves, and estimating drilling/workover costs.

California

MEi provided petroleum engineering and operations services to small operator in California. Contracted and supervised rig to return wells to production, redesigned rod strings and pumps to eliminate rod parting and gas locking. Installed pump off controllers to optimze electric consumption. Installed gas gathering system to eliminate wet gas carry over into sales line. Supervised/assisted pumper to operate lease at maximum effeciency.

Raton Basin, Colorado

Provided rig supervision services for an air drilling rig and a reverse circulation drilling rig to drill 3 exploration wells and 3 big-bore coal bed methane dewatering wells, respectively, in the Raton Basin of southern Colorado. Also supervised 2 workover rigs to recomplete approximately 40 existing coal bed methane wells.

Kern County Assessor's Office

Performed annual appraisals on oil and gas properties in the sum of approximately $5 billion.  Generated production forecasts and discounted cashflows for over 100 properties in Kern County to determine fair market value for property tax assessment. Settled over 50 assessment tax appeals with a total value of approximately $1 billion. Developed an all comprehensive appraisal spreadsheet in Microsoft Excel.

Elk Hills Naval Petroleum Reserve, California

Provided production operations engineering services to prepare AFE's and workover procedures for wells in the Main Body B / Western 31S waterfloods, the Eastern SOZ gas cap drive, the Dry Gas Zone, and the Shale zones. Monitored production and injection. Designed new well completions, recompletions, stimulations, and artificial lift. Coordinated build-up and fall-off tests in vertical and horizontal wells. Well depths ranged from 2500' - 7000' and were produced either flowing, on gas lift, or on rod pump. Many wells had triple packer completions.

Qualifying Reports

Performed due diligence on multiple deep oil and gas prospects in northern and southern California and wrote the qualifying report presented to the Vancouver Stock Exchange. Reviewed all data used to generate prospects. Studied the regional and local geology, and reviewed similar wells for engineering problems and production characteristics.

Groundwater Modeling

Provided geological engineering services to build geologic models for saltwater disposal injection studies in the Potter Formation of the McKittrick Oilfield (1999) and in the Tulare Formation of the Belridge Oilfield (1995). Constructed geologic cross sections and generated structural and isopach contour maps for 1) the entire sub-basin between the McKittrick, Midway-Sunset, Railroad Gap, Asphalto, and Elk Hills oilfields and 2) from the southern nose of the Belridge anticline to the farthest downdip data available and back updip to the Cymric Oilfield. Generated digital map surfaces, using Geographix and client's in-house mapping software, to input into the groundwater modeling software.

Ventura Avenue Stimulation and Cementing

Provided stimulation and cementing technical expertise on the Ventura Avenue Oilfield, which has producing zones from 6000' to 14,500'. Selected acid stimulation candidates and designed acid blends and placement procedures. Designed cement slurries and placement procedures for liner lap squeezes, casing hole squeezes, inner-liner jobs, and abandonments.

Midway-Sunset Oilfield

Provided geological services to plan development drilling. Planned locations, casing depths, directional paths, and total depths. Performed detailed structural analysis using Dipmeter/FMI logs and computer mapping to plan location and path of horizontal wells and performed reservoir characterization studies utilizing offset operator horizontal well data. Related geologic layering and faulting to production trends. Conducted major volumetric study on all of client's South Midway-Sunset leases to determine the "current oil in place" for each lease, enabling reservoir engineers to better define the maturity and steam requirements for each lease and enhanced reservoir surveillance and development. Evaluated the Tulare formation for development on all of client's Midway-Sunset leases. Supervised wireline logging and completion operations.

North and South Belridge Steam Flood

Provided production engineering services on the South Belridge Tulare Steam Flood Project. Performed daily surveillance on more than 700 wells (oil producers and steam injectors) in a maintenance intensive area. Designed and prepared AFE's for new wells, replacement wells, sidetrack wells, recompletions, and stimulations. Identified mechanical failures, sand control failures, and steam breakthrough. Conducted field study to locate 3 million barrels of bypassed oil, which resulted in 13 workovers and a 429 BOPD production increase. Conducted production field study to determine that many recompletions and stimulations were unsuccessful due to reservoir conditions, versus incorrect procedures. Implemented better candidate selection criteria and running proper log suites, which improved workover success rate. Acted as project co-leader to redesign and populate database with mechanical wellbore data for over 6,500 wells, which reduced data handling by 50 percent and downhole data retrieval time by 200 percent. Provided geological engineering services on the North and South Belridge Steam Flood Projects. Planned well locations, casing depths and total depths for development drilling. Implemented the use of computer mapping. Conducted volumetric reserve studies, oil migration studies, bypassed oil studies, and sand continuity studies to increase production and reserves, reduce injection, and improve workover candidate selection. Performed detailed layer mapping for horizontal wells. Coordinated surface subsidence surveys (GPS and level surveys).