Downhole Steam Injection Valve Takes the Next Step Towards North Sea Reality

Pharis Energy and the Oil and Gas Technology Centre (“OGTC”) have given the green light to Aberdeen-based oil and gas production technology business, Pragma Well Technology (“Pragma”), to progress with the manufacture and prototype testing of their Downhole Steam Injection Valve (“DSIV”) following a successful feasibility study.

Using advanced materials, detailed fluid design and innovative engineering features to maximise reliability for extreme downhole conditions, the surface controlled DSIV will be the first steam injection valve available on the market to meet UK safety regulations. The valve will be rated to withstand the extreme downhole conditions required for continuous high-pressure steam injection and will operate at temperatures of up to 343 degrees Celsius.

Conceptual illustration of Pragma’s Downhole Steam Injection Valve

Owing to Pragma’s surface controlled design, the DSIV technology will also be able to be used in other extreme high temperature developments around the world. These could include production or geothermal wells, providing the DSIV with considerable applications and advantages for a wider market. The production safety valve variant (the Extreme Temperature Safety Valve (“ETSV”)) also incorporates ESP cable bypass capability which will allow the installation of downhole pumps.

The DSIV is a key enabling technology for the implementation of an offshore steam-flood and Pharis will use the DSIV valves to protect well integrity, as the Company progresses a steam assisted, phased development of the Pilot field, which lies in UKCS block 21/27a. This project will start with a steam-flood trial injecting up to 36,000 bcwe/day (barrels of cold water equivalent) of steam into the southern part of the Pilot field. The full scale steam-flood is aiming for approximately 50% recovery (over 120 mmbbls), about three times as much oil as would be expected to be recovered using the standard cold water-flood techniques used in most North Sea heavy oil projects to date.

Steve Brown, CEO of Pharis, said: “We are delighted with the innovative and collaborative progress being made in developing this new valve technology. Applying steam-flooding technology in the UKCS has the potential to unlock an additional four billion barrels of otherwise stranded reserves from the shallow heavy oil fields that have already been discovered in the basin. Steam-flooding has the potential to transform the economic prospects of a number of marginal fields, attract new investment to the basin and stimulate exploration of previously neglected plays. The creation of a thoroughly tested and appropriately rated safety valve is critical to enable these operations to commence, and for steam-based recovery techniques to make their contribution to maximising economic recovery from the UKCS.”

Gary Smart, CEO of Pragma, added: "The successful results of the feasibility study were very much in line with our expectations and we are now looking forward to progressing quickly with the prototyping phase. Our technology can withstand extremes of temperatures because it uses premium corrosion resistant materials and full metal to metal seals for reliable function over the life of the well. This sets it apart as the only valve of its type on the market with these capabilities.

“This innovative product reflects Pragma’s vision of delivering advanced technology to enable increased production with lower uplift cost. The roll-out possibilities of the technology for steam-flood, high temperature and indeed many other types of production wells are incredibly exciting.”

About Pharis Energy

Pharis Energy was founded in 2014 as The Steam oil Production Company Ltd and is the sole licensee of P2244 and P2320 which together contain over 400 mmbbls of discovered heavy oil in place in the Pilot, Blakeney, Harbour, Feugh, Dandy and Crinan fields, which lie in blocks 21/27 and 21/28, 140 kms due East of Aberdeen.

Pharis is working on plans to implement the world’s first offshore steam flood project of scale on the Pilot field. Pilot, which is the largest oilfield in Pharis's portfolio was discovered by Fina in 1989 and has been appraised with seven reservoir penetrations including a horizontal well test which produced over 1,800 bbls/day from a short horizontal well. Pharis estimates that a conventional waterflood would recover about 50 MMbbls of oil, whilst a successful steam flood would recover over 120 MMbbls of oil.

About Pragma

Pragma Well Technology delivers advanced production technologies and expertise to the global upstream oil and gas industry. The company collaborates with industry to reduce costs, increase revenue and improve access to hydrocarbon reserves. Its products and systems are highly differentiated, low risk and significantly enhance well performance. Pragma is part of the FrontRow Energy Technology Group - alongside Unity, Well-SENSE and ClearWELL.

Further Information

Pharis Energy                            Tel: 020 3603 1941

Steve Brown, CEO

Tavistock                                  Tel: 020 7920 3150

Nick Elwes