Success StoriesElimination of Trucking Produced Water:
Customer: WPX Energy (formerly Williams E&P)
2010 – Current
Water management has always been expensive for operators and can be logistically challenging, especially in the mountains of the Piceance Basin. In 2010, Gonzo teamed up with WPX Energy (then Williams) to identify cost savings options regarding water management of its newly acquired Kokopelli field. After analyzing existing infrastructure, Gonzo redesigned and implemented mobile pumping units to efficiently transfer water produced by new and existing wells. In doing so, Gonzo reduced the need for hauling water by over 85% by utilizing the existing water lines throughout the field. Because Gonzo offers complete water management under one roof, we were able to reduce costs even further as other needs arose. Dollar savings have since been calculated at several million dollars. This approach was so successful that other areas of operation have duplicated the method. WPX and Gonzo continue this relationship to this day.
Water Delivery for Frac Operations:
Customer: Black Hills Exploration and Production
2012 – Current
Frac operations rely on the ability to use water for the stimulation of new and existing wells. Near the town of De Beque, Black Hills has been actively developing its investment by going after the large amounts of natural gas in the Mancos formation. Due to the extreme distances and changes in elevation, Black Hills approached the Gonzo team to identify ways to effectively transfer water to the remote locations in which they were drilling and completing. After analyzing existing infrastructure and identifying possible methods, Gonzo was able to successfully transfer around 40 bbls/minute to location as far as 10 miles away using only one pump. The pump was a 2250 hp, multi-stage unit that ran continuously for 45 days without a single shutdown. Using the single unit allowed Black Hills to eliminate additional pumping sites, water storage, pumping personnel and infrastructure. The savings associated with this design was calculated to be in excess of several hundred thousand dollars. Recently we have taken this method a step further by implementing permanent electric pumping facilities that Gonzo continues to operate to this day.
Blackhills Exploration and Production
Water Gathering and Transfer Facility, Introduction of the Gonzo Hydroskid ®.
Customer: WPX Energy
2014 – Current
Just like elevation can be a difficult challenge to overcome, it can be a benefit in some cases. For years, WPX had trucked and pumped all water produced from one of their fields near Parachute, Colorado. Several thousand barrels of water were being produced from this area and a large portion of it was being moved via truck or pumped multiple times before reaching its final destination. With the economic challenges related to the price of natural gas, WPX asked Gonzo to find a way to reduce costs associated with moving the water in that area. As a team, we were able to find one solution that has saved millions of dollars. We installed an additional high-pressure water line that allowed most nearby wells to gravity feed produced water to a central storage facility. The pump placed at the water storage facility was custom built by Gonzo, utilizing automation specifically for that application, and eliminated the need for additional personnel thus further increasing savings to the customer. Year-to-date savings have been estimated around 3 million dollars!
Water Management and The Utilization of other Customer’s excess water.
Customer: WPX Energy and Cynosure
2015 – Current
Recently Gonzo was approached by Cynosure to provide pipeline rental and frac support services. In addition to the project we were also asked to help locate any available water resources for their upcoming completion project regarding the eight wells that were drilled. Another operator that we work for in the area had excess water that we were able to help acquire for the project. In doing so we were able to help save Cynosure significant costs associated with acquiring water and also save WPX costs associated with hauling its excess water to disposal. In the end we also used our fleet of transport trucks to haul the excess water. This provided savings to both customers.
Cynosure, Coachman, WPX Energy
Water delivery for Drilling and Completion Operations:
Customer: Linn Energy (formerly Berry Petroleum)
2011 – Current
In the spring of 2011 Berry Petroleum (now Linn Energy) approached Gonzo to identify possible water delivery options for sites on its Old Mountain field. The challenge that existed was finding a way to deliver water from the creek in the bottom of the valley to the top of the mountain where the well site existed. Due to the extreme elevation (2500 feet), and the fact that the pipeline was vertical along the cliff face, our only option was to utilize one pump for the project. Gonzo set a 500 hp triplex pump at the bottom as was able to successfully move water at over 1100 psi and 10 bbls/minute for the drilling rig. In doing so we eliminated the only other option which was to haul the water using transports. The estimated time per load was calculated to be over four hours per load and would have required numerous trucks. By eliminating circulation issues, the tri-plex pump allowed the drilling rig to operate successfully without having to wait for water whereas the hauling option would have required several delays. Cost savings was calculated in the hundreds of thousands of dollars. The method was so successful that the same approach was used for the frac and is still being used today.
Water Injection for Field Water Management
Customer: WPX Energy (Mautz Injection Facility)
2012 – 2015
The cost of hauling water to an off-site third party disposal has always been expensive. More and more companies are drilling their own injection wells to reduce the overhead associated with excess produced water. In 2012, WPX approached Gonzo to assist with the injection of excess water stored in their Piceance Basin asset. Each well is given a maximum surface pressure that the operator is required to stay at or below while injecting water via high-pressure pump. Gonzo at the time had invested a large portion of capital money to provide equipment and highly trained personnel for injection services. Due to the different behavior of each well it is important to identify what volumes and pressures the injection well will allow before the operator designs and installs any type of permanent facility. Using a 500 hp triplex pump, filtration skid, and trained personnel Gonzo was able to successfully inject 6,000 – 9,000 bbls/day into three different wells. By offering WPX complete water management services, Gonzo helped WPX identify the characteristics of each well and properly design a permanent facility. Trucking costs to an offsite disposal was estimated to be around $3.00/bbl plus an additional $3.00/bbl for disposal for a total of $6.00/bbl. By using Gonzo’s injection service, WPX was able to successfully inject water into the three wells for under $1.00/bbl, saving millions of dollars. Once electricity was installed at the permanent facility Gonzo was hired to manage that system as well. That setup included automated pumps as well as other automated systems which were developed by information and operation procedures gathered while Gonzo was injecting with the temporary equipment. That system continues to operate to this day.