combined miscible drive (cmd) - jakson hol… · cmd project screening parameters • reservoir...

Confidential

Combined Miscible Drive (CMD)

“Recovering the Unrecoverable Barrel”

September 12, 2011 2011 University of Wyoming EORI Conference

Jackson Hole, Wyoming

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Corporate Summary

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• Public Company Listed in Toronto (TSX: NNN)

• Q2 Production Exit Rate – 1,200 BOEPD

• Reserves – 17.4 MMBOE Proved; 28.6 MMBOE Proved + Probable

• Acquire producing oil and gas properties with substantial

conventional and enhanced oil recovery development

• Technical staff has specific expertise in evaluation, acquisition, re-

development and Enhanced Oil Recovery (EOR) technologies.

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High Quality Asset Portfolio

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PORTFOLIO SUMMARY

PLEITO CREEK OIL FIELD

San Joaquin Basin, CA

KROTZ SPRINGS FIELD

St. Landry Parish, LA

FERGUSON RANCH, HUNT,

SHEEP POINT, WILLOW DRAW OIL FIELDS

Big Horn Basin, WY

Concentrated portfolio of oil and gas properties with an attractive reserve

base leveraged 98% to crude oil.

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History of In-Situ Combustion

• In-situ combustion technology has existed for over 100 years - what’s

old is new again.

• In the US there have been 228 in-situ combustion projects ~ 60% failed: Poor Reservoir Characterization

Unanticipated Operational Challenges

Management Commitment

• All projects that utilized oxygen enriched air were technical successes

but uneconomic due to declining oil prices.

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Combined Miscible Drive – CMD

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Oxygen, Carbon Dioxide, and Steam

Combustion Zone

Oil

Water

A patented in-situ combustion

process in which foamed oxygen

is injected at the top of an oil

reservoir to generate CO2, heat and steam.

CMD Process Elements

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• Foamed O2 is used to generate CO2

and steam in-situ

• Steam heats and displaces oil toward

the production wells

• CO2 and light oil form a miscible layer

in front of the steam

• CO2 saturates the oil ahead of the

miscible light oil layer

• The process is unique because the

benefits of a CO2 flood, gravity

drainage, and a steam flood are

combined to enhance production.

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CMD Project Screening Parameters

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• Reservoir Depth – 2,000 to 5,000 ft

• Porosity > 22%

• Initial Oil Saturation > 50%

• API Oil Gravity < 32˚

• Reservoir Oil Viscosity < 500 cp

• Sloping Structure for Top Down Injection

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NiMin California Property

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Pleito Creek Field – Santa Margarita Reservoir

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• OOIP = 38.7 million bbl

• Reservoir & Crude Oil Properties Depth = 3,600 to 4,600 ft

Avg. k = 90 md

Avg. Ф = 28%

SOR = 65%

16˚ API Crude & 185 cp @ 105˚ F

Temperature = 105˚ F

Avg. net pay = 115 feet

• Current production 300 BOPD

• CMD response in 3 horizontal wells

• Primary expected recovery up to 12%

• CMD expected recovery up to 60%

H2

H3 H4

H1 I

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40.0

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160.0

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Oil

Rat

e -

bo

pd

H2 Production Plot

Actual Production

Historical Decline

CMD Initiation

Ran Inner Liner

Gravel Pack Failure

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Oil

Rat

e -

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pd

H3 Production Plot

Actual Production

Historical Decline

CMD Initiation

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Oil

Rat

e -

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pd

H1 Production Plot

Actual Production

Historical Decline

CMD Initiation

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Oil

Rat

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H4 Production Plot

Actual Production

Historical Decline

CMD Initiation

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Pleito Creek Injection Facility

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1. Produced Water

Treating

2. Liquid O2 Storage & Pumping

3. O2 Vaporization

4. Water & O2 Mixed to O2 Foam

5. Injection Well Design

6. Safety System

1 2

3 4

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• Top Down Injection

• Gravity Stable

• Reservoir Temperature = 105° F

• Injection Pressure = 1,700 psi

• Significant CO2 Absorption

Pleito Creek Conditions for CMD

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Pleito Creek - CO2 Density @105o

F

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0 500 1000 1500 2000

Spe

cifi

c G

ravi

ty

Pressure, psi

Simple Gas Region

Liquid Phase Region

Supercritical Gas Region Current Crestal Reservoir Pressure

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Pleito Creek - Oil Swelling @105o

F

1

1.05

1.1

1.15

1.2

1.25

1.3

1.35

0 500 1000 1500 2000

Bo

, rb

/stb

Pressure, psi

CO2-105

CO2-225

CH4-105

N2-105

Liquid Phase

Supercritical Region

Gas Region

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Pleito Creek - Gas Saturated Oil Viscosity @105o

F

0

50

100

150

200

250

0 500 1000 1500 2000 2500 3000

Vis

cosi

ty, c

p

Pressure, psi

N2

CH4

CO2

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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CO

2 C

on

cen

trat

ion

Oil

Rat

e -

bo

pd

H3 Production Plot

CO2 Concentraion

Actual Production

CMD Initiation

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• Supercritical CO2 properties of gas and liquid

• Significant absorption of CO2

• Oil swells up to 34%

• Oil viscosity reduction up to 91% (100 to 10 cp)

Benefits of CO2 Generation

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Top-down Burn, Oil Recovery Factor

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Oil

Re

cove

ry -

% o

f O

il at

Sta

rt L

ess

Fu

el

Volume Burned - %

Initial Gas Saturation

40%

50%

30%

20% 10%

0%

Probable Reserves

Possible Reserves

Pleito Creek - Audited Reserves

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Without CMD (Ultimate Recovery 12%)

With CMD (Ultimate Recovery 36%)

2.5 MMBO

$50.0 MM PV10

11.8 MMBO

$225.9 MM PV10

Primary

+

CMD

Recovery

30%

Primary

Recovery

6%

* NiMin reserves from Huddleston & Co, Inc. NI 51-101 reserve report effective January 1, 2011. All reserve volumes net to company working interest unless stated otherwise.

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Pleito Creek – Development Plan

• Continue primary development - 15 drilling locations

• Increase oxygen injection rate

• On-site oxygen plant

• Re-inject carbon dioxide rich produced gas

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Enhanced Oil Recovery – Cost Comparison

Co

st -

$U

S/b

bl

0

5

10

15

20

Steam Assisted

Gravity Drainage**

Cyclic Steam

Stimulation**

Pleito Creek

CMD

Operating Expenses

Capital

Developed CMD Cost • Lease Operating Expense $12/BBL • Capital Costs $4/BBL • Total Development Costs $16/BBL

*Limited to existing facilities and 1500 BOPD; Ultimate 36% recovery OOIP; Unrisked

**Alberta Energy and Utilities Board (2009)

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CMD Summary

• CMD process allows for the efficient recovery of oil at greater

depths than steam methods

• CMD process generates only 10-15% of the greenhouse gases

as in conventional steam generation and no local footprint

• In the US, there are approximately 165 heavy oil fields with 14

billion barrels OOIP that could benefit from this process

• In the US, there are approximately 276 light oil fields with 32

billion barrels OOIP that could benefit from this process

Contact Information

Address: 1160 Eugenia Place,

Suite 100

Carpinteria, CA 93013

Office: (805) 566-2900

Fax: (805) 566-2917

Website: www.niminenergy.com

Sven Hagen, PhD

President

shagen@niminenergy.com

Scott Dobson

Chief Operating Officer

sdobson@niminenergy.com

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