Swan Hills UCG

SWAN HILLS IN-SITU
COAL GASIFICATION
TECHNOLOGY DEVELOPMENT
FINAL OUTCOMES REPORT

May, 2012
Prepared for:
Alberta Innovates Energy and Environment Solutions
Final Outcomes Report May, 2012

Table of Contents
1.0.
Executive Summary ................................................................................................. 3
2.0.
Introduction .............................................................................................................. 5
2.1.
Project Background .............................................................................................. 5
2.2.
Project Objectives ................................................................................................ 7
3.0.
Project Description................................................................................................... 8
3.1.
General Project Overview .................................................................................... 8
3.2.
Siting and Geological Considerations ................................................................ 11
3.3.
ISCG Process Description .................................................................................. 48
3.4.
Project Equipment and Facilities Description .................................................... 55
3.5.
Use of Standard Oil and Gas Equipment ........................................................... 81
4.0.
Results and Achievement of Technical Objectives ............................................... 81
4.1.
Achievement of Technical Objectives ............................................................... 81
4.2.
Further Key Learnings ....................................................................................... 84
5.0.
Conclusions and Recommendations for Further Study ......................................... 92
1.0. Executive Summary

With funding support from Alberta Innovates Energy Environment and Solutions (AIEES), Swan Hills Synfuels LP (Synfuels) permitted, constructed and operated a deep
in-situ coal gasification (ISCG) demonstration facility near Swan Hills Alberta, over the
AI-EES grant funding period from 2008 October 2011. The project sought to
demonstrate the benefits, both environmentally and technically, that could be obtained by
practicing ISCG in very deep coals, in comparison to the majority of prior world-wide
experience in relatively shallow coal seams. The target coal seam for the project is at a
depth of 1400 m, making this ISCG demonstration the deepest yet conducted in the
world.
Results from ISCG trial projects conducted in Europe in the 1990s at intermediate
depths suggested that ISCG at substantial depth was feasible, and offered the potential
environmental benefits of increased isolation from fresh groundwater resources, thus
eliminating risks of fresh water aquifer contamination that are present with shallow (<600
m depth) ISCG. In addition, the increased formation pressure available in deep coals was
theorized to result in more efficient gasification and cleaner, richer synthesis gas (higher
calorific value) production.
Relatively recent advances in deep horizontal drilling capabilities were the key
technology enabler to allow Synfuels to proceed with the deep ISCG demonstration at
Swan Hills; the gasification process chemistry and physics is identical to that of ISCG at
other depths, or surface gasification processes.
The project involved the drilling of a pair of wells (ISCG well pair) into the coal seam to
effect the ISCG process, along with attendant surface facilities to both inject the required
reagents for the gasification process, and to receive and process the manufactured
synthetic gas. The ISCG well pair used is a full commercial-scale well pair that is,
planned future commercial ISCG developments will involve simple replication of well
pair to develop an ISCG well field of sufficient gas manufacture capacity to meet the
volume needs of that commercial project. Thus there is no scale-up required of the well
pair to move into commercial project development.
In the course of operations (both intermittent/testing and development of procedures and
practices, as well as continuous over several months) in the 2009-2011 time frame, the
project generally accomplished the objectives set forth at the outset, summarized in
section 2.2. of this report. Furthermore, key features demonstrated included:
Final Outcomes Report
Page 3 of 93
In-Situ Coal Gasification

Technology Development
Use of standard oilfield equipment, and well design, drilling, and completions
using technology readily available;
Production of synthetic gas rich in methane and carbon dioxide content, with
relatively little hydrogen and carbon monoxide (indicative of effective
gasification coal conversion and methanation occurring in-situ, as to be expected
under relatively high pressure and modest temperature gasification conditions);
Production of very clean synthetic gas, with very little quantity of entrained coal
conversion byproducts or other contaminants;
Demonstration of only near-field (i.e., immediate gasifier perimeter) temperature

or gas penetration effects, and conversely an absence of any far-field effects from
ISCG operation, in line with the low permeability encountered at this depth, and
normal operation at below reservoir pressure;
Process control variables gave good control over synthetic gas manufacture rates
and gas composition;
Use of saline injection water to support the ISCG process.
The composition of the synthetic gas produced over an extended time frame, with its bias
towards methane and carbon dioxide content, bodes well for the processing of this gas in
commercial-scale ISCG developments to remove (capture) carbon dioxide costeffectively on a pre-combustion basis using established natural gas processing
technologies and processes.
On the basis of the operational experience developed in the course of the project
operations, Synfuels considers deep ISCG at Swan Hills ready for replication-based
deployment in commercial project developments.
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2.0. Introduction
2.1.
Project Background
This report to Alberta Innovates Energy and Environment Solutions (AI-EES)

summarizes the technology development activities of Swan Hills Synfuels LP
(Synfuels) with respect to deep in-situ coal gasification (ISCG) in Alberta, over the
course of the Grant Agreement period from March, 2008 through October, 2011.
In-situ coal gasification is the chemical conversion of deeply-buried coal in its original
coal seam into a synthetic gas, by creating the right process conditions (pressure,
temperature, presence of reagents) in the coal seam to cause a series of chemical
reactions to occur (gasification). Demonstration of the technical and economic viability
of ISCG, combined with carbon capture and storage, could unlock a major new clean
energy play for Alberta to tap the provinces vast deep, economically stranded coal
resources.
While ISCG has been developed and tested at numerous locations world-wide over the
past 80 years, the bulk of this experience has been in relatively shallow coals (<200 m
burial depth). Test projects conducted in Europe in the 1990s suggested that significant
benefits could result, both environmentally and technically, from applying ISCG to deep
coal deposits. Recent directional drilling advances in the last decade or so have now
brought deep coals into reach for ISCG. As a result, Synfuels undertook to construct and
operate a deep ISCG demonstration project near Swan Hills, Alberta, to quantify the
potential benefits available by applying ISCG to deep coals.
The ISCG demonstration project construction is based on a full commercial-scale well
pair (gasifier reactor), and associated surface facilities. The use of a full commercialscale well pair facilitates expedient progression into a larger commercial-scale project,
based on simple replication of this initial well pair (no scale-up risk).
As of the end of the period covered by the agreement with AI-EES (October, 2011), the
Swan Hills ISCG Demonstration Project (Demo) had generally met the objectives set
forth in the Grant Agreement Research Plan, as described more fully below. At about
1400 m coal seam depth, the Demo represents the deepest ISCG operations conducted in
the world to date and has demonstrated the advantages of practicing ISCG in deep coals
(> 1000 m depth, with, in this case, 800 m of rock with multiple impermeable zones
between the Base of Groundwater Protection (depth limit of fresh water aquifers) and the
ISCG zone):
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Environmental practicing ISCG in deep coals, with substantive impermeable

rock layers between the ISCG coal seam and overlying fresh water aquifers,
mitigates the risk of fresh water aquifer contamination, which is a risk associated
with underground coal gasification when practiced in shallow coals in fresh water
aquifers, particularly post-operation when natural groundwater flow regimes are
reestablished and can mobilize post-gasification contaminants;
Technical the high pressure ambient environment provided by the deep ISCG
setting facilitates the manufacture of clean synthetic gas rich in methane and CO2
content (with comparatively little H2 and CO), which simplifies surface gas
processing and utilization in applications such as power generation.
The Demo facilities were constructed over the winter of 2008/2009, and operated on both
an intermittent and continuous, extended run basis, over the 2009-2011 period.
Figure 1.
Demo Facilities Location
Demo Facilities
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2.2.
Project Objectives
The Project Research Plan set forth a set of specific project technical objectives regarding
the Demo performance and testing:
(i)
To be able to ignite, in a fully controlled manner, coal at any point along the inseam length of the injection well and thereby initiate the formation of a gasifier
reactor/cavity at that location;
(ii)
To be able to re-start the gasification process in an existing cavity (i.e., reignition)

as required, after cessation of oxygen injection and thus be able to take each
gasifier reactor/cavity to its full developmental extent, regardless of operational
disruptions.
(iii)
To be able to form multiple gasifier reactors/cavities along the injection wellbore

from the toe of the well to its heel, at any location along its length.
(iv)
To be able to operate the gasifier reactor/cavity at pressures from 0 4 MPag

below reservoir pressure at the gasifier reactor/cavity
(v)
To be able to operate in a stable manner at oxygen injection rates within the range
of 5 to 30 metric tonnes/d, with an expected normal operating injection rate of 20
metric tonnes/d.
(vi)
To be able to operate in a stable manner at a gasifier water/oxygen mass ratio

within the range of (2 to 3):1, over the entire range of oxygen injection rates.
(vii)
To be able to control the water/oxygen ratio and mixing such that stable operation
and thorough mixing can be achieved at any operating point within the specified
ranges for water and oxygen injection.
(viii) To determine the maximum sustainable operating temperature of the syngas at the
production wellhead (subject to metallurgy limitations with the production well).
(ix)
To be able to fully withdraw the injection string at any time during the life of the
well pair, and then reinsert it such that the burner/injection head reaches at least
the location of the most recent gasifier reactor/cavity ignition point.
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(x)
To be able to process the syngas produced to meet the following specifications at

the Project battery limit:
Syngas pressure:
4 MPag or greater
Syngas temperature: 50C or less
Syngas dewpoint:
no free water in syngas at customer end of pipeline
(xi)
To be able to recover produced water to the extent practical from the produced
syngas, and recycle this water for both injection, and production well sparging
use, so as to minimize makeup water requirements
3.0. Project Description

3.1. General Project Overview
The Demo consists of three wells and associated surface facilities and pipelines, located
on three sites in 9-65-11-W5M, approximately 17 km to the southwest of the town of
Swan Hills, Alberta.
Injection Site: hosts the injection well and attendant surface facilities, to enable the
injection of fluids (saline water, oxygen, nitrogen) required to sustain the ISCG process.
9-9 Core Well/Microseismic Site: this site was the location of a coal/overlying strata
core well drilled as part of the project in late 2007, and currently hosts a microseismic
observation well system.
Production Site: this site hosts the production well and attendant surface facilities, for the
receiving and processing of manufactured raw syngas, including water recovery and
recycling.
While the ISCG process uses the same physics and chemistry as surface gasification
facilities (where the feedstock is gasified in pressure vessels in a surface facility), with
ISCG, the conversion of coal into a gas occurs in the original coal seam, deep
underground (in the case of Swan Hills, nearly a mile beneath the surface). As a result,
the ISCG process represents a simpler, lower cost and less impactful approach to tapping
the energy contained in Albertas deep coals that are currently uneconomic to develop by
any other means. ISCG offers the following advantages over conventional coal mining
and gasification:
Page 8 of 93

No coal mine, coal production, storage or handling. This greatly reduces land
surface disturbance, and eliminates issues associated with coal dust, along with
the significant methane emissions to atmosphere that result from surface coal
mining (a potent greenhouse gas agent).
Ability to tap coals too deep to be economical to mine and extract, thus unlocking
the energy potential of these deep, economically stranded coals. With the in-situ
conversion of coal into a synthetic gas, the range of economic possibilities with
respect to the usage of this coal energy is greatly expanded, including both
traditional clean combustion use (e.g., power generation in either traditional
Rankine cycle facilities or combined cycle plants), as well as chemical conversion
opportunities of the synthetic gas into advanced fuels, chemicals, fertilizers, or
other products.
Ash, char, and other solid residual materials from the gasification process remain
behind in the original coal seam, thus eliminating the need for solid waste
handling and disposal that is common in surface gasification operations. In deep
ISCG applications, the high pressure environment favors efficient gasification
conversion of coal pyrolysis products into synthetic gas, thus further reducing the
entrainment of residual materials in the gas flowed to surface.
Elimination of extensive surface process equipment to handle, process, and gasify

coal, thus significantly reducing capital costs. Solids material handling
infrastructure (both feedstock and waste products) is typically a significant cost
component in gasification projects that is obviated in ISCG developments.
Ability to use non-fresh water supplies (e.g., saline water or wastewater) to

support the gasification process, thus eliminating the need for fresh water for
ISCG-based clean energy manufacture. The Demo operated for several months in
a continuous manner using a saline injection water supply, amply demonstrating
the suitability of non-fresh water in support of the ISCG process.
Historically, ISCG dates back to first postulation in the 1800s, with initial deployments
in Europe and Asia in the 1930s. Most of the older ISCG projects were developed in
relatively shallow coals (< 200 m beneath the surface), largely due to the accessibility of
such coals with well drilling technologies that existed at the time. In the last decade or
so, advances in deep horizontal and directional drilling technology have now allowed
access to deep coals for ISCG; this has resulted in game-changing economic and
environmental improvements for modern ISCG development.
Page 9 of 93
The advantages of practicing ISCG in deep (>1000 m depth) coals are summarized as
follows:
Avoidance of fresh water aquifer contamination risk: the coal gasification

process leads to the formation of potentially hazardous materials, which remain
behind in the original coal seam location. If ISCG is practiced at shallow depths
where the coal seam may be within fresh water aquifer zones, there is a
substantial risk that these hazardous materials may contaminate fresh water
aquifers, particularly post-ISCG operations when ISCG sites are abandoned and
natural groundwater flow regimes are allowed to reestablish themselves.
In deep coals, where there are hundreds of meters of rock between the ISCG coal
seam depth and shallower fresh water aquifers, where additionally there are
multiple impermeable layers within those hundreds of meters of rock, there is no
reasonable chance of contamination of fresh water aquifers due to this degree of
isolation and containment of the process zone.
In deep ISCG, the process takes place in saline aquifers, and thus the process can
use saline water for makeup purposes. This avoids the use of fresh water in the
deep ISCG process.
The high pressure natural environment in deep coal seams (pressure increases
with coal burial depth) is strongly beneficial to the gasification process, resulting
in more thorough and efficient conversion of coal into clean gas that is produced
to the surface. Generally in packed-bed type gasifiers (closest conventional
gasification process analogue), the synthetic gas produced is a mixture of
methane, carbon dioxide, hydrogen and carbon monoxide. High pressure and
modest temperature generally favors methane and CO2 formation, and disfavors
hydrogen and CO formation. The opposite is true for low pressure (e.g., shallow)
ISCG, particularly at higher temperatures.
The depth of the coal makes it economically and technically unattractive for other
purposes (e.g., coal bed methane development), thus minimizing the potential for
conflict with other development forms. In particular, coal bed methane (CBM)
development could be a potential conflict/competing use for these deep coals.
However, in the Swan Hills are Mannville coals, multiple CBM pilots conducted
in these coals over the last decade have found that the coal permeability is simply
too low at this depth, which, combined with the significant need to dewater these
Page 10 of 93

coals prior to CBM production, makes CBM development clearly uneconomic for
these coals.
Further, ISCG development of these coals stands to extract a significantly greater amount
of energy per given area of land, compared to CBM extraction. Synfuels has calculated
that per-section (square mile) of Mannville coal in the Swan Hills area, ISCG
development stands to extract more than thirty (30) times more energy than CBM
extraction would from the same land area.
3.2.
Siting and Geological Considerations
Prior to selecting the Swan Hills region for the location of the ISCG Demo, Synfuels
conducted a thorough investigation of various coal zones in Alberta for their suitability
for ISCG, applying a number of technical and environmental screens. Almost all of the
coal zones (including the Ardley, Drumheller, Carbon-Thompson, Lethbridge, Taber,
Mackay, Daly-Weaver) failed the primary environmental screen that of depth of coal
seam and isolation from freshwater aquifers, to mitigate groundwater contamination risk.
In this investigation, the Mannville coals in Alberta emerged as the clear choice for
suitability for ISCG development, offering the following advantages:
Considerable depth, well below Base of Groundwater Protection (depth at which

fresh water aquifers are deemed to transition to saline aquifers in Alberta) across
most of the Mannville coal deposits in Alberta
Thick, relatively clean individual coal seams
In a number of locations, suitable geology in overlying strata to support ISCG
No material development conflicts
wet nature of the Mannville coals presence of saline water in the coal is not
detrimental (in fact, is beneficial) to the ISCG process, in terms of reducing the
amount of saline water which must be injected from the surface to meet the
stoichiometric needs of the ISCG process
This analysis guided Synfuels to secure a project site near Swan Hills, Alberta to host the
ISCG Demo, targeting a Mannville coal seam at about 1400 m depth.
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Geographic and Geological Setting

The Demo is located on the southern slopes of the Swan Hills in the undeformed part of
the Western Canadian Sedimentary Basin, north of the transition between Alberta's
central and northern Plains. The Swan Hills topography is supported by sandstone
bedrock of the Tertiary Paskapoo and Upper Cretaceous Scollard Formations which
outcrop locally in the valleys of many rivers and streams draining the rugged topography
of the Swan Hills in almost all directions.
The Demo site includes lands in section 9 in Township 65, Range 11, west of 5th
Meridian. The Demo is situated on a relatively gently rolling plain sloping southwards
towards the Freeman River. It is covered by muskeg and boreal forest growing on peaty
soil formed as the uppermost layer on top of up to 35 m thick unconsolidated overburden
that consists of clay and silt and locally also sand and gravel. There are no outcrops of
bedrock on the Demo lands. The area is underlain by almost flat formations dipping very
gently, at about two degrees, to the southwest.
Among the deeper strata underlying the Demo area is the Lower Cretaceous Mannville
Group that includes the coal bearing Spirit River Formation with a 7.2 to 8 m thick
Medicine River Coal Seam found at the depth of 1300 to 1400 m. Nearby to the east of
the Demo site (approximately 2 km away) is the South Swan Hills Unit oil field with
wells exploiting oil bearing Devonian reefs from a depth of some 2700 m.
Certain aspects of the project geology, such as continuity of the Medicine River Coal
seam and structural trend are addressed in a broader scale, beyond the Demo site area.
The larger area of interest, the Geological Study Area (GSA), surrounds the Demo area.
It is an area enclosing wells drilled by or which belong to Synfuels on or near the Demo
site and a series of offset wells with good geophysical logs of the Upper Mannville coal
measures and of overlaying strata for the area around the Demo site.
Page 12 of 93

Figure 2.
Geological Study Area with Locations of Wells with Good

Geophysical Log of Mannville Coal Measures
3-28-65-11W5
14-23-65-11W5
11-19-65-11W5
8-19-65-11W5
3-21-65-11W5
10-17-65-11W5
1A B /16-9-65-11W5
4-16-65-11W5
1A A /16-9-65-11W5
2-10-65-11W5
9-9-65-11W5
1A A /16-4-65-11W5
4-10-65-11W5
11-36-64-12W5
12-25-64-11W5
6-25-64-12W5
5-22-64-11W5
Oil & Gas offset well
Synfuels well
Core well
The PDA
Stratigraphy
The Medicine River Coal Seam of the Upper Mannville coal measures is found in the
Falher Member of the Spirit River Formation that belongs to the Lower Cretaceous
Upper Mannville Group. These coal measures, recognized throughout Central Alberta,
contain up to five coal seams and have a thickness of some 70 m in the Swan Hills area.
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While the Demo is focused on the Medicine River Coal Seam, the subsurface geology
and stratigraphic interval of interest involves rock formations from the surface to the
Upper Devonian Ireton shale, Figure 2. Overburden strata above the coal seam are
subject to anticipated subsidence caused by reduction of coal seam volume due to
gasification; at depth parts of these strata will be a source of influx of saline water into
the gasifier cavity while at shallow depth the upper most overburden strata contain fresh
groundwater, and certain parts of the overburden will act a caprock over the ISCG zone.
In general these strata are clastic sediments, sandstones, mudstones and shales in the
upper part of the stratigraphic column, and carbonates, limestones and dolomites as well
as shale in the lower part of the column, Figure 3.
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Figure 3.
Stratigraphy and Coal Measures with the Medicine River Coal Seam
modified from Hitchon et all (1989) and Plains (ERCB, 2009)
Sandstone
Immediate
roof
mudstone and
claystone
Coal
measures
of interest
7.9 m
MEDICINE
RIVER
COAL
SEAM
with two
partings
Immediate
floor
claystone and
sandstone
Coal seam
Shale
Sandstone
Siltstone
Page 15 of 93

Structure
Regional Structure
The geological structure, both at regional as well as at local scale, is relatively simple.
Within the Demo area the formations dip at about 0.5 degrees to the south west as
illustrated by structure contour map Figure 4 and cross-section Figure 5.
Figure 4.
Mannville Group Structure Map
Page 16 of 93

Figure 5.
Regional Geological Cross-Section
Regionally, a network of structurally controlled surface lineaments in Northern Alberta,

including the Swan Hills area, has been mapped; orientation of such lineaments can serve
as a guide to locate subsurface faults (Pana et al, 2001). Although the nearest mapped
lineaments do not intersect the Demo area, their proximity suggests that faults could be
present in the general area. However, no fault has been encountered along the well-path
of the injection well which represents the most complete, continuous set of data on the
seam's structure.
Figure 6.
Structurally Controlled Lineaments in Swan Hills Area, from Pana et

al, 2001
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Structure of the Medicine River Coal Seam

Within the Demo area the Medicine River Coal Seam dips at an overall 0.2 to the southsouthwest. Across the project area this trend consists of an area dipping at 0.7 to the
north/northwest of the Demo area (sections 16 and 17) and an almost flat area of the seam
in section 9, Figure 7a, 7b, 7c, and Figure 8.
Figure 7a.
Structure of the Medicine River Coal Seam Floor
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Figure 7b.
Structure along the Eastern Boundary of Sections 9 &16 (looking

east)
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Figure 7c.
Structure across Section 17 and 9 (looking NW)
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Figure 8.
Structural Cross-sections Location Map
The most revealing observation of the seam's local structure is the well-path of the
injection well, Figures 9a and 9b, drilled along the eastern border of section 9. Over most
of the well-path the seam gently undulates from 0 to 1.2 degrees and then rises at 2.5
degrees in the last 100 m of the well in the very NE corner of section 9. Between the
well's intersection of the seam in the build section and the penetration of it in the
production well, a distance of approximately 1200 m, the seam floor rises from an
elevation of -404.5 m to -402.1 m, an overall southerly dip of 0.2 degrees.
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Figure 9a.
Structure of Medicine River Coal Seam along well-path of injection

well SH SYNFUELS 102 SWANHS AA/16-9-65-11 W5M /03
Figure 9b:
Structure of Medicine River Coal Seam along well-path of injection

well SH SYNFUELS 102 SWANHS AA/16-9-65-11 W5M /03
Page 22 of 93

Exploration and Evaluation Program

The Swan Hills area has been subject of exploration drilling ever since the discovery of
oil the area in the mid-1950s. Since then over two thousand wells were drilled to
produce oil from the Devonian reef complex in the area. These deep wells penetrated the
shallower Upper Mannville coal measures and their geophysical logs provided initial data
for selection of the Project location, adjacent to the South Swan Hills Unit but outside the
oil producing area.
Within in the Demo area there are 15 wells with a suite of modern geophysical logs.
Their spacing ranges from 0.5 to 6 km. The logs provided data for planning the first
Synfuels well 9-9-65-11W5 drilled in 2007 and for the geological modeling of coal
measures.
Exploration, Evaluation and Development Wells

Since 2007, Synfuels has drilled four wells; two dedicated to exploration & evaluation of
the coal seam (core wells) and the two wells for the Demo (injection and production
wells). The core well 9-9-65-11W5 was followed by the first pair of development wells;
a horizontal injection well and a vertical, partly slanted production well, drilled in the fall
of 2008 provided additional geological data and access to the coal seam for initial
gasification. The second evaluation well was drilled in 2012. Table 1 lists all Synfuels
wells and provides a summary of their purpose.
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Table 1.
Swan Hills Synfuels Wells
Year drilled, Well name and UWI
Depth Purpose and Status
[m]
2007:
SYNERGIA SWAN HILLS 9-9-65-11
100/09-09-065-11W5/00
1460
TVD
2008:
SH SYNFUELS 102 SWANHS 16-965-11
1AA/16-09-065-11W5/0
1344.5
TVD Horizontal injection well
2833
MD
2008:
SH SYNFUELS 100 SWANHS 16-965-11
1AB/16-09-065-11W5/00
1427.5
TVD Production well, vertical and partly slanted
with a 19.4 m core.
2012:
SH SYNFUELS SWANHS 4-16-65-11
100/04-16-065-11W5/0
1431
TVD
Exploration/Evaluation well with 29 m of

core.
Observation well with microseismic and
temperature monitoring instruments
Evaluation/Observation well
with 120 m of core.
These wells provided geological data in form of cuttings, geophysical logs and core of
the roof rock, coal seam and of floor rock.
The evaluation wells are the two core wells 9-9 and 4-16. A core of roof rocks of the
Medicine River coal seam was also cut in the 20 slanted bottom section of the
production well 16-9. Only a small amount of coal core was recovered in this well.
Evaluation Well 9-9-65-11-W5M

The 9-9 well (SYNERGIA SWAN HILLS 9-9-65-11 (100/09-09-065-11W5/00) was the
first well with ISCG objectives drilled in the project area. The well is located in the
middle of the eastern side of section 9, near the north-south mid-point of the injection
well horizontal section drilled afterwards.
The primary purpose of the well was to obtain core of the coal seam for evaluation of
coal quality and study of both the roof and floor rock above and below the coal seam.
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The secondary purpose was installation in the well of microseismic and thermal
monitoring instrumentation for observation of the behavior of strata in the area of coal
gasification.
An interval 29 m in length was cored in this well; the core was cut in two core runs:
CORE 1: 1357-1372 m - 15 m core, 14.72 m recovered (98 %)
CORE 2: 1372-1386 m - 14 m core, 10.23 m recovered (73 %)
Core 1: 14.4 m sample of the coal seam's roof rock. The immediate roof is 20 cm of
coaly claystone with 2-4 mm thick lenses of bentonite, 90 cm of coarsely fissile and
slickensided carbonaceous claystone and 1.6 m thick mudstone with two, almost vertical,
joints. The main roof is 9.8 m of medium to coarse grained sandstone thin laminated
Page 25 of 93
with carbonaceous dust. Further up is 2 m thick sandstone interbedded with siltstone and
minor shale. Siderite is common throughout.
Core 2: coal and floor rock. The coal seam is 8 m thick: 3.4 m of coal, 0.5 m parting, 1.2
m coal, 0.9 m parting and 1.6 m coal. Only 2.5 m of coal was recovered; most of the core
was lost from the top 3.6 m part of the seam. The core of the immediate floor is 0.4 m
thick slickensided and moderately carbonaceous claystone with a vertical joint. It is
underlain by 2.5 m of coarse grained, clayey salt-and-pepper sandstone. The core
includes a 1 m coal seam at 4.3 m below the main seam.
Observation Well 9-9-65-11

Following completion of geophysical logging, a 10 level micro-seismic array with 4
thermocouples was installed. The micro-seismic array is 330 m in length and consists of
10 geophone pods, each with triaxial sensors, consisting of 6 elements oriented in an
orthogonal manner to record the full acoustic signals being generated by the ISCG
processes, and 4 thermocouples. The geophones span an interval from 72 m below the
coal seam, at 1450 m MD in Wilrich shale, to 250 m above the coal seam, at 1120 m MD
above the base of the Dunvegan sandstone. The well was cemented from bottom hole to
surface. Thermal cement is in place from the bottom of the hole to 1300 m KB.
The purpose of the micro-seismic array is to monitor behavior of strata above and below
the coal seam during the in-situ gasification, as well as the size and extent of the cavity
created in the coal seam. This will allow assessment of fracturing in strata above the coal
seam and the movement of gas along the seam during gasification.
Micro-seismic technology is being used extensively in Alberta's in-situ oil sands
operations. (IOL has more than 100 systems in place, CNRL has 15 systems, and Shell
has 6 systems). The micro-seismic system Synfuels installed in the 9-9 well is similar to
these other systems.
The thermocouples are located so that temperature in the strata around the observation
well will be monitored at 4 points: 12 m below the bottom of the coal seam, in the coal
seam and at 5 m and 40 m above the top of the seam. The zone affected by heat around a
gasifier is thought to be relatively limited and these thermocouples will validate the
expectation that there will not be a significant heating of the coal seam beyond the
immediate area of gasification, either from the gasification of the coal or from the
movements of hot fluids away from the gasifier.
Page 26 of 93

Evaluation Well 4-16-65-11

The 4-16 well (SH SYNFUELS SWANHS 4-16-65-11; 100/04-16-065-11W5/0) is the
third evaluation well drilled recently, in March 2012.
The 120 m of core consists of two cored intervals with a total of 21 individual core runs:
Cored interval 1260-1341: core runs 1 to 13
81 m core of the basal Colorado,

Viking, Joli Fou, Notikewin and the
upper Falher formations.
84% of the core was recovered
Cored interval 1368-1408: core runs 14 to 21
40 m core of the roof of the

Medicine River Coal Seam, the seam
and floor, including a 1 m thin coal
seam below the Medicine River Coal
Seam.
34.5% of the core was recovered
5% of the Medicine River Coal Seam
93% of the 1 m thin seam was
recovered
The interval from 1341 to 1368 m was not cored.
Observation Well 4-16

A micro-seismic array will be installed in the 4-16 observation well which will be similar
to the existing micro-seismic array in the observation well 9-9-65-11.
Medicine River Coal Seam

In wells located in section 9, the Medicine River Coal Seam consists of three sub-seams
separated by claystone partings.
Accordingly, the coal and partings have been
designated as the Upper, Middle and Lower Seams and the Upper and Lower Partings as
shown on the geophysical log of the seam in the production well 16-9, Figure 10.
Page 27 of 93

Figure 10.
Medicine River Coal Seam Subdivision
Schlumberger Compensated Neutron Dual Density Log
100 SWANHS 1696511
Name
UPPER SEAM
3.4 m
Upper Parting
0.5 m
MIDDLE SEAM
1.4 m
Lower Parting
0.8 m
LOWER SEAM
1.9 m
Marker 0.1 m
Total Th = 8.0 m
The Medicine River Coal Seam maintains similar structure and thickness throughout the
eastern part of section 9 as illustrated by correlation of Synfuels' three wells and the
nearest offset well located along the eastern edge of section 9 , as shown in Figure 11.
Page 28 of 93

Figure 11.
Correlation of the Medicine River Coal Seam in the Eastern Half of

Section 9
16-9-65-11W5
Med. R.:
7.7 m thick
9-9-65-11W5
8.0 m thick
16-4.16-9-65-11W5
7.8 m thick
4-10-65-11W5
7.9 m thick
Within the Demo general area the seam ranges in thickness from 7 to 8 m, as shown in
Figure 12.
Page 29 of 93

Figure 12.
Isopach map of the Medicine River Coal Seam
Seam Characterization
Macro-petrographic composition of the Medicine River Coal Seam presented below
combines data from the 2007 core well and description of cuttings from Synfuels'
injection well.
Page 30 of 93

The Upper Seam is from 3.4 to 5.2 m thick in Demo area. It contains a band of slightly
higher gamma, probably a band of volcanic ash that allows informal subdivision as
follows:
Top ply approximately 1 m thick, dull to dull banded coal, dominated by durain
and clarain, less than 50% of vitrain and minor fusain; 0.5 m thick band of higher
ash coal;
Bottom ply 2 to 4 m thick, clean, low ash coal, banded coal of clarain and
vitrain.
The sample of the Upper Seam recovered in well 9-9 is 20 fragments of coal (9%
recovery). They are dull and dull banded coal with vitrain bands up to 6 mm thick. It is
unknown what part of the 3.6 m Upper Seam they represent. Since dull coal is harder
than bright coal it is probable that most of the brittle bright and bright banded coal was
part of the lost core.
The Upper Parting is 0.5-0.7 m thick; it is soft, dark gray coaly claystone;
Middle Seam is 0.6-1.0 m thick in PDA. The core (62% recovery) was of dull banded to
banded coal with vitrain up to 30 mm thick. Cleat is present as some of the core
fragments were broken along cleat. Cuttings indicate dull coal (durain and clarain) with
only 20% of vitrain in the upper part of the seam grading downward into dull banded to
banded coal in the lower part of the seam.
Lower Parting is 0.7-1.2 m thick. It is medium to dark gray blocky claystone with coaly
traces, the rock is slickensided and soft.
Lower Seam is 1.6-1.9 m thick. The core of the top ply of the Lower Seam was mainly
banded and dull banded coal with minor bright banded coal, as shown in Figure 13.
Based on samples of cuttings the coal is dull to banded coal with varying amounts of
bright and brittle vitrain, glossy clarain and dull durain lithotypes. Cuttings with microbanding are common, indicating the presence of bands of clarain or clarodurain with thin
(< 1mm) bands of vitrain. The vitrain content in cuttings ranges from 30% to 80%. The
thickness of vitrain bands, measured on coarse chips, ranged from 1 mm to 15 mm, and
rarely up to 20 mm while in solid core the thickest band of bright coal, pure vitrain, is 40
mm thick.
Page 31 of 93

Figure 13.
Macropetrographic Profile and the Core of the Lower Seam
Fusain is omnipresent but only as small amounts in the form of commonly occurring thin
bands. It is up to 5 mm thick in cuttings which rarely exceed 10 mm in size.
Page 32 of 93

Geophysical logs of the Lower Seam and geosteering experience of drilling the injection
well support subdivision of the Lower Seam into two coal plies separated by a volcanic
ash marker:
Top Ply lower gamma (15-40 API units), lower ash coal
Volcanic Ash Marker high gamma bed (45-95 API units)
Bottom Ply higher gamma (40-80 API), higher ash coal
The injection well moved between both plies and most of the horizontal length of the
well was drilled following the volcanic ash marker, either in it or just above or just
below.
Volcanic Ash Marker is a 10 cm thick layer of "dirty" coal, mainly durain contaminated
with dust, grains and globules of volcanic ash altered to kaolin and kaolinic clay. The
coal is of gritty and of rough texture with white and beige kaolin particles ranging in size
from 60 to 100 microns in the drilled coal chips sampled in the injection well. Because
of its high gamma (50-80 API) and small thickness the Marker was used as a reference
layer in geosteering the injection well.
Generally, the Bottom Ply of the Lower Seam appears to contain less of bright coal than
the Top Ply; it is mainly dull to dull banded coal. The Top Ply is richer with vitrain in its
lower half, dominated by banded coal. The 2007 core of this part of the seam includes
the two thickest bands of vitrain observed in the core: a 4 cm and a 2 cm band of bright
(pure vitrain) coal. The upper half of the Top Ply it is mainly dull banded coal.
Cleat
The seam is moderately to poorly cleaty. The Middle and Lower seams are
predominantly dull and dull banded coal with average face cleat spacing of 2 to 2.5 cm in
the Lower Seam and 2 cm in the Middle Seam. Very little butt cleat has been observed.
Part of the core of the Top Ply of the Lower Seam was split along an almost 40 cm long
face cleat and 3 to 4 face cleats were distributed at 1-4 cm spacing across the 10 cm core
diameter; as shown in Figure 14 below. Cleat in core of the thin seam below the
Medicine River Coal Seam is similar.
Page 33 of 93

Figure 14.
Cleat in the Top Ply of the Lower Seam
Permeability and Hydraulic Conductivity

The permeability of a coal seam is best determined by a long-term production test or an
injection fall-off test. Neither of these tests has been done nor was the permeability
measured on a lab sample. Permeability of Mannville coal from several locations in
Alberta has been studied by Gentzis et al., 2007, who point out poor cleat in dull and dull
banded lithotypes and illustrate how permeability in coal is strongly influenced by in-situ
stresses and decreases exponentially with increasing depth, as shown in Figure 15. Note
the inflection point at about 1250 m, which suggests a dramatic decrease in permeability
beyond that depth (Gentzis et al., 2007).
Page 34 of 93

Figure 15.
Permeability of Mannville coals and its variation with depth in the

Alberta Plains
From this graph Mannville coal at depth of 1350 to 1400 m would have a permeability of
about 0.7 mD.
The Lower Seam of the Medicine River Coal Seam recovered in the core well 9-9 was
mainly dull banded lithotype with poor cleat; average face cleat spacing of 2-2.5 cm and
very limited, if any butt cleat.
Partings
The Medicine River Coal Seam contains one to two claystone partings. The partings
represent from 8% to 19% of the coal seam's gross thickness, Table 2.
Page 35 of 93

Table 2.
Partings Distribution in the Medicine River Coal Seam
Well:
Seam Thickness:
Upper parting:
Lower parting:
Partings share:
8-19
10-17
3-21
4-16
16-9
9-9
16-4/16-9
7.2
0.7
10%
7.7
0.6
8%
7.8
0.6
8%
7.2
0.4
0.8
17%
7.8
0.5
0.8
17%
7.9
0.6
0.9
19%
7.9
0.5
0.7
15%
The Upper parting, as observed on core form 9-9-65-11 evaluation well, is a soft dark
gray claystone with moderate abundance of plant debris, coalified leaves and small stems,
and with thin bands of vitrain ranging in thickness from hairline to 1 mm. The quantity
of the vitrain bands is greater near the bottom of the parting. The core of this rock
fractures easily along bedding into coarse, 2-4 cm thick, poker-chip plates. Slickensided
fracture was present above the parting's base. The Upper parting is present in the eastern
part of the Demo area, in sections 9 and 16. It ranges in thickness from 0.6 to 0.4 m in
wells where it was intersected and thins to 0 m along its projected depositional edge, as
shown in Figure 16.
Ash content of the Upper parting is 83%, VM=7.2%, FC=1.7% and HV=586 kJ/kg. Ash
fusion temperature in oxidizing atmosphere is 1461C.
The Lower parting, ranging in thickness from 0.6 to 0.9 m, appears to be present
throughout the Demo area, as shown in Figure 17. The combined thickness of the
partings is illustrated by Figure 18.
The parting, in 9-9-65-11 evaluation well, is a soft, medium to very dark gray coaly
claystone with frequent lenses and bands of vitrain mainly 1 to 4 mm thick and
exceptionally over 20 mm thick. The bottom third to half of the parting is of lumpy
texture, the rock slickensided and partly turbated that breaks down easily into small to
tiny slivers. A nearly vertical (80 deg) joint was observed in the upper part of the core.
The rock breaks down easily along bedding planes or along slickenside fractures.
Ash content of the Lower parting is 78%, VM=10.2%, FC=7% and HV=3500 kJ/kg. Ash
fusion temperature in oxidizing atmosphere is 1461C.
Both partings are considered weak, soft interburden expected to break down and collapse
easily into the active gasifier. Non-slagging character of both partings indicated by high
ash fusion temperatures will not interfere with partings breakdown. Although the Lower
Page 36 of 93

parting is somewhat thicker than the Upper parting, its carbon content and weaker, partly
slickensided structure will facilitate its collapse under ISCG process conditions.
Figure 16.
Upper Parting Isopach
Page 37 of 93

Figure 17.
Lower Parting Isopach
Page 38 of 93

Figure 18.
Isopach of Combined Upper and Lower Partings
Roof and Floor Rocks Characterization

Strata above and below the Medicine River Coal Seam which are worked by ISCG in the
Demo area are the Falher and the Notikewin Formations; the Joli Fou and the Viking
Formations may also be affected but to lesser extent, as shown in Figure 19. This interval
includes the immediate and the main roof of the seam and the extended roof strata
Page 39 of 93

between the Medicine River Coal Seam and overlying Joli Fou Formation and Viking
Formations.
Figure 19.
Correlation of Extended Roof and of Floor Strata of the Medicine

River Coal Seam
These strata will be affected by localized subsidence, caving and settling of the roof
rocks, and, to a lesser extent, strata below the seam by heaving of the floor due to
extraction of approximately 4.7 m of the seam thickness by in-situ gasification.
Page 40 of 93

Roof Characterization
Figure 20.
Roof Characterization
The immediate roof is a thin 0.4 to 0.9 m thick layer of claystone or coaly claystone
above the coal seam. It is a dark gray to black, carbonaceous or coaly, coarsely fissile
and partly slickensided rock that crumbles easily. It contains an abundance of plant
debris. It is classified as a weak immediate roof. In all three cores its RQD is 0. An
analysis of a 30 cm sample of this claystone in well 9-9 indicated 20% carbon content
and calorific value of 9330 kJ/kg.
The claystone roof is generally present in the Demo area.
In the core of well 9-9 the immediate roof is a 20 cm bed with five very thin (2-4 mm
thick) lenses of bentonite and traces of coal. The coaly claystone grades upwards into 0.9
m thick, coarsely fissile and slicken-sided carbonaceous claystone that is overlain by 1.6
m thick mudstone with two, almost vertical, joints.
Page 41 of 93

Figure 21.
Immediate Roof Isopach
The main roof is a 1 to 4 m thick transition of mudstone grading to siltstone, as shown in

Figure 22, that further grades upwards into an overlying 2 to 4 m thick bed of sandstonesiltstone-sandstone.
Page 42 of 93

Figure 22.
Main Roof Isopach
This main roof extends into a zone dominated by multiple sandstones of variable
thickness interbedded with siltstones, mudstones and minor shales. It also includes few
thin coal seams or coaly stringers.
In core of well 9-9 the core that includes the main roof is a 9.8 m thick medium to coarse
grained sandstone thinly laminated with carbonaceous dust. Further up is 2 m sandstone
Page 43 of 93

interbedded with siltstone and minor shale. Siderite is common throughout. No joints
were encountered in this vertical core. Sandstone beds range in thickness from less than
to 2 meters to almost 30 m thick channel sandstone in well 8-9-65-11W5 just north of the
Demo area.
In core of the production well 16-9-65-11W5 the lithology of 9 m of core was practically
all siltstone and at 20 angle of the hole the core encountered tree vertical joints spaced at
0.2 and 0.4 m.
The sandstones within the "cave zone" range are fine grained kaolinic salt & pepper to
fine or very fine grained, frequently laminated and often bioturbated, rocks. They consist
of subangular to subrounded grains of silt-size, very fine to fine quartz and varying
amount of dark gray to black chert with kaolinic or calcareous cement and varying
amounts of carbonaceous dust and plant debris. The sandstones occur as beds ranging in
thickness from more or less one meter to fluvial channel sandstones up to 13 m thick
within the project area or 28 m thick north of the project area in section 18.
Floor Rock Characterization

The seam is typically underlain by thin 0.4 to 0.8 m thick bed of claystone/shale. Unlike
the roof claystone an analysis of a 30 cm sample of this claystone in well 9-9 shows only
3.4% of carbon content and calorific value of 1525 kJ/kg. In well 9-9 core the claystone
was slickensided and included a vertical joint extending into the floor of the Lower Coal
seam above.
Below the claystone bed is 1.5 to 2.5 m thick sandstone, approximately 1 m thick
claystone, shale or mudstone and a thin 1 m thick coal seam. The deeper strata below
the thin seam is a 50 to 60 m thick interval of variably thick sandstones interbedded with
shales. It is underlain by Wilrich Formation shale.
Page 44 of 93

Figure 23.
Floor isopach
Caprock
In oil and gas geology the caprock is defined as shale or other impervious, sealing rock
that acts as a barrier to the movement of oil and gas and so it forms a reservoir trap.
Usually it is shale overlying the hydrocarbon bearing formation.
The concept of caprock integrity has become critical in the recovery of heavy oil and
bitumen by SAGD (steam-assisted gravity drainage) where the caprock must remain
undisturbed to prevent reservoir fluids escaping into shallow groundwater or to the
surface as the result of reservoir modifications by the recovery process and technology.
Page 45 of 93

In case of the ISCG the integrity of up to over 200 m of the overburden above the coal
seam may compromised by localized subsidence. Therefore the function of caprock, the
sealing stratum, must be assigned to 500 m thick shales of Colorado and Lea Park
formations. These shales are the lower part of the zone without significant fracturing.
They are the caprock formation in the SHS project area, Figure 24. Figure 25 is an
isopach map of the Lea Park-Colorado caprock.
The shale is generally composed, in order of decreasing abundance, of mixed-layer
illite/smectite, quartz, kaolinite, potassium feldspar, siderite and pyrite with minor
muscovite, chlorite and biotite, Leckie et al., 2012.
Figure 24.
Cross-section showing 500 m of Colorado and Lea Park shales
Page 46 of 93

Figure 25.
Isopach of combined Lea Park and Colorado shales (top of Lea Park
Formation to top of Viking Formation)
Coal Quality
The Medicine River Coal Seam is a high volatile B bituminous coal with vitrinite
reflectance Romax ranging from 0.64 to 0.69 for the three sub-seams.
Average values of Proximate and Ultimate analyses of the core of Medicine River Coal
Seam from well SYNERGIA SWAN HILLS 9-9-65-11 are shown in Table 3 below.
Page 47 of 93
Table 3.
Proximate Analysis of the Medicine River Coal Seam (at 9-9-6511W5)

Parameter
As received
Moisture Free
Moisture & Ash free
Moisture [%]
4.7
--------Ash [%]
9.3
9.7
----Volatile Matter [%]
30.5
31.8
35.3
Fixed Carbon [%]
55.5
58.5
64.7
Sulphur [%]
0.4
0.4
0.5
Heating Value [GJ/Kg]
28.8
30.0
33.3
Free Swelling Index
1
Table 4.
Ultimate Analysis
Parameter
Moisture Free
Ash [%]
9.7
Carbon [%]
74.4
Hydrogen [%]
3.58
Nitrogen [%]
1.1
Sulphur [%]
0.4
Oxygen [%]
10.7
3.3.
Moisture & Ash free

----82.4
3.9
1.2
0.5
11.9
ISCG Process Description
As discussed in the previous section, at this coal seam depth, the permeability of the coal
is very low. This required the selection of an ISCG process (well pair configuration) that
provided a mechanical linkage between the wells, rather than rely upon coal permeability
to flow gas and fluids between the wells of an ISCG well pair. Thus, the CRIP
(controlled retracting injection point) ISCG approach was chosen, which uses a
horizontal injection well paired with a vertical production well, as the ISCG well pair, the
principal building block of an ISCG development.
The ISCG process drives coal gasification to occur by creating the right process
conditions (pressure, temperature, presence of required reagents) to encourage
gasification chemical reactions to take place.
The oxygen injected into the active gasifier chamber combusts coal volatiles and a small
portion of the manufactured syngas at temperatures over 1000C in the vicinity of the
teardrop-shaped coal face within the gasifier. The heat from this combustion serves to
boil water present in the system, generating steam, which is an important reagent in the
Page 48 of 93

gasification chemical reactions. The heat also penetrates the coal to some degree (several
cm), driving coal devolatization, pyrolysis, and finally gasification to occur at the coal
face. Figure 26 below illustrates the coal conversion process which occurs in the skin
layer of coal at the coal face:
Figure 26.
Coal Conversion Illustration at Coal Face in Active Gasifier

Chambers
Heat
Coal Volatiles
Unaffected
Coal
Zone
Coal
Devolatization
Zone
Coal
Pyrolysis
Zone
Coal Char
(Gasification)
Zone
Gasification
Zone
Coal
Pyrolysis
Volatiles
Combustion
Zone
Oxygen
Syngas
Water
(Steam)
Char/Ash spalling from

coal/char face
(falls to rubble pile in gasifier
cavity)
Thermally affected coal zone dimension < 50 cm
As coal is gasified at the coal face, the remaining coal char and ash spalls off of the face
and falls to the bottom of the gasifier, building a bulk pile of this unconsolidated material.
The spalling results in an eating away of the coal face, thus exposing fresh coal to the
process. In this manner, the ISCG process continuously erodes the coal face as coal is
converted, thereby growing the active gasifier chamber in all dimensions.
At all times a pressure draw is maintained via the production well, thus drawing the raw
syngas produced towards the production well. This elongates the gasifier chamber into a
teardrop shape as it grows; if no pressure draw was maintained, the gasifier chamber
shape would be spherical. Normal operating pressure of the gasifier chamber is in the 1012.5 MPag range.
Oxygen and saline water injected into the gasifier at the injection point (point where the
coiled tubing burner was used to initiate gasification in this chamber) flow outwards
towards the coal face, where the oxygen is consumed in the combustion zone. The
Page 49 of 93
injected water (together with any natural formation water present) is converted to steam
by the high temperatures near the combustion zone, thus providing steam for
participation in the gasification chemical reactions as the principal source of hydrogen for
these reactions.
As the gasifier chamber continues to grow laterally and vertically, with char and ash
rubble accumulating as spalling occurs, the top of the coal seam is eventually reached.
At this point, the gasifier chamber continues to propagate laterally into the coal seam, but
some of the heat generated in the reactor serves to cause the immediately overlying rock
to crack, break apart and fall into the reactor, contributing to the ash/char pile. As the
gasifier chamber grows, this roof spalling continues, until the bulking of the
unconsolidated roof pieces fills the chamber (though with major interstitial spaces) and
prevents further roof spalling.
Theoretically, a gasifier chamber could continue to propagate laterally in the coal seam
indefinitely, but in practical terms, pressure drop considerations, as well as potential falloff in syngas quality (due to heat loss to the overlying strata in disproportionate quantities
to the heat that is actually working coal), will prescribe an arbitrary limit to the practical
extent of lateral chamber propagation. Synfuels has chosen this limit to be ten times coal
seam thickness (or a total gasifier channel width limit of about 80 m) for the Project.
When this chamber growth limit is reached, the coiled tubing/burner is retracted a
distance towards the heel of the injection well, and a new chamber is initiated in fresh
coal. The previous chamber(s) are then used as the now high-permeability flow path to
flow the raw syngas from the active gasifier chamber to the production well. Figure 27
shows a schematic of the well pair configuration is shown below:
Page 50 of 93

Figure 27.
ISCG Well Pair Schematic
The horizontal injection well is used to inject oxygen and saline water into the coal seam.
The oxygen supports a limited amount of combustion, which heats up the coal and boils
both the natural formation water present along with injected saline water, to generate
steam. The resultant conditions (high temperature, high pressure by virtue of the
formation depth, and the presence of steam) cause a number of chemical reactions to
occur whereby the coal is converted into a gas, which consists primarily of synthesized
methane, carbon dioxide, hydrogen and carbon monoxide. This gas is then conducted up
to the surface via the vertical production well, where the gas can then be processed in a
conventional gas processing facility to remove the CO2 component in an efficient, costeffective capture process (using standard natural gas processing techniques) for further
utilization (enhanced hydrocarbon recovery) and storage. The remaining clean gas
stream (methane, hydrogen, carbon monoxide) can then either be burned as fuel for heat
and power generation, or can be further converted in a facility into other products such as
liquid fuels or chemical products.
A typical mass balance for a well-pair (gasifier) under normal conditions is shown in
Figure 28 below:
Page 51 of 93

Figure 28.
Gasifier Mass Balance
Oxygen 45 t/d
Formation Gas Losses
19 t/d
Injection
Water 45 t/d
Coal 118 t/d
Sparge
Water 150 t/d
Gasifier
Chamber/
Reactor
Raw syngas 344 t/d

(includes 150 t/d
sparge water + 194
t/d raw wet syngas)
Natural Free
Water Influx 5 t/d
As ISCG progresses along the axis of each horizontal injection well from the toe back
towards the heel of the well, the syngas manufactured in the active gasifier has more
opportunity to cool along the flow path back to the production well. As such, over time
the temperature of the syngas arriving at the production well is expected to decrease,
ultimately to approach the saturation temperature of steam at the system pressure,
approximately 325C. As this cooling progresses, the need for sparge water in each
production well will diminish, with a corresponding decrease in water production tonnage
with the raw syngas.
Synfuels experience with the Demo has shown that under the operating conditions
anticipated for the Projects well-pairs, the expected raw syngas composition is as
follows:
Table 5.
Raw Syngas Composition
Component
CH4
CO2
CO
H2
C2 +
Dry gas (N2 free)

mol%
37%
41%
5%
15%
2%
Page 52 of 93

Figure 29 below illustrates the main input and output flows for the each gasifier:
Figure 29.
Gasifier Inputs and Outputs

Coal and
Coal and
mineral matter mineral
gasified
matter
(moisture free) moisture
Non-fresh
free
water
influx
Possible
gas
losses
Gas
produced
Control
Volume of
In-Situ
Gasifier
Injectants
(O2, water,
N2)
Char and ash

deposits
The main input and output flows are:
The gasifying agents injected from surface via the injection well. The two main
gasifying agents are (i) oxygen and (ii) water
Nitrogen injection for purging of certain injection well strings/annuli
The coal and mineral matter affected during in-situ gasification
The char and ash remaining within the chamber after gasification
The in-situ gasifier natural water influx including (i) the moisture content of
gasified coal and (ii) non-fresh free water from surrounding strata
Possible gas losses to surrounding strata
The syngas produced through the production well
Page 53 of 93

The in-situ coal gasifier is controlled by four principal means:
The operating pressure of the gasifier
The rate of oxygen injection
The water/oxygen ratio
The position of the injection point in the horizontal in-seam section of the
injection well
Gasifier Operating Pressure

The gasifier operating pressure is controlled at the surface via pressure control valve on
the production well. The gasifier operating pressure influences the amount of non-fresh
free formation water influx into the reactor chamber, the amount of gas losses to
surrounding strata, and the composition of the syngas.
Operation of the gasifier at slightly below coal seam formation pressure is anticipated
under normal operating conditions, at typical operating pressures in the 10-12.5 MPag
range.
Oxygen Injection Rate

The oxygen injection rate directly drives the gasification rate, and hence the power
(energy production rate) of the gasifier. Stopping high pressure oxygen injection shuts
down the gasifier. At the depth, and corresponding formation pressure, of the Mannville
Medicine River coal seam at the Demo site, there is no prospect of air migration into the
seam to sustain combustion in the absence of oxygen injection by the Project. As a
result, there is no chance of combustion occurring or being sustained in the absence of
high pressure oxygen injection by the Project. This is in contrast to ISCG practiced in
very shallow coal seams, where natural fissures from the surface can potentially lead to
air ingress into the seam to sustain uncontrolled combustion.
Page 54 of 93

Water/Oxygen Injection Ratio

Water is chemically consumed in the gasification process and is the principal source of
hydrogen for the chemical reactions that occur. Water available for gasification includes
moisture present in the coal and mineral content in the coal seam, non-fresh free water
influx into the gasifier, as well as water injected from the surface via the injection well
(the gasification process is tolerant of non-fresh water).
The mass ratio of water and oxygen injected into the gasifier is thus a key syngas
quality/composition control variable. Experience with the Demo has shown that as
water/oxygen ratio is increased, all other variables held constant, the amount of methane
synthesized in the gasifier also increases, with a proportionate decrease in CO2 synthesis
as the extra hydrogen from the increased water injection supports increased methanation
in the gasifier. In this manner, water/oxygen ratio adjustment is used principally to tune
the amount of methane and CO2 content in the raw syngas to meet syngas composition
needs.
Position of Injection Point

The positioning of the injection point (coiled tubing burner) determines the location along
the injection well horizontal axis of the current gasifier, thereby influencing the geometry
of the gasifier chambers. As a result, this positioning of gasifier chambers and resultant
determination of gasifier chamber geometry influences the amount of coal
conversion/recovery within the theoretical rectangle of the gasifier channel.
3.4. Project Equipment and Facilities Description

The Demo consists of a full commercial scale horizontal injection well and vertical
production well, as well as surface facilities for injection and production gas processing.
The injection well site (Injection Site), composed of the injection well, as well as
oxygen, nitrogen and water facilities, is located on 1-9-65-11 W5M. The production well
site (Production Site), composed of the production well, syngas cooling, separation and
processing facilities, is located approximately 1600 meters due north of the Injection Site
at 16-9-65-11 W5M, with a microseismic monitoring site located on 9-9-65-11 W5M
approximately half way between the Injection and Production Sites.
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Figure 30.
Overall Views of Injection Site
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Figure 31.
Overall view of the Microseismic Monitoring Site
Figure 32.
Overall View of the Production Site
Water and N2 pipelines are routed between the Injection and Production Sites. A
dedicated 6 km, 4 pipeline also provides natural gas to the Production Site. An access
road connects the two sites with existing road infrastructure to the east of the project site.
.
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Figure 33.
Pipeline Installation Between Injection and Production Sites
The Demo facilities, inject oxygen and water to nominally manufacture 113 e3m3/d of
wet, sour raw syngas from about 75 t/d of coal gasified. The primary purpose of the
Injection Site facilities is to provide oxygen and non-fresh water to support the
gasification process, and nitrogen for well control as well as O2/N2 blending for ignition.
The primary purpose of the Production Site facilities is to collect and cool the produced
syngas, recover condensed and produced water, and analyze the syngas prior to its
disposal by flaring or incineration. The raw, wet syngas mainly contains methane, carbon
dioxide, hydrogen, carbon monoxide and small amounts of H2S.
Plot plans for both the Injection Site and the Production Site are included as Figure 34
and 35 respectively.
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Figure 34.
Injection Site Plot Plan
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Figure 35.
Production Site Plot Plan

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The injection and production wells within a single ISCG well pair are separated at the
surface by approximately 1.6 km.
Figure 36.
ISCG Well Pair Schematic
Swan Hills Synfuels Coal Gasification Project

Injection - Production Well Pair
Surface Csg
Surface Csg
Production tubing
Intermediate Csg
Sparge Line
2 concentric Coiled Tubing Injection Strings

Oxygen
Ignition string
Intermedate casing
Nitrogen filled annulus
Burner
The injection well is approximately 2800 meters in length and is composed of a ~1400
meter vertical section, and a ~1400 meters horizontal section connecting to the toe of the
paired production well. The injection well uses a bi-centric Coiled Tube (CT) injection
string, installed within a 114mm casing. The CT allows the intermittent injection of
ignition fluid and fuel, and the continuous flow of oxygen.

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Figure 37.
Coiled Tubing and Injection Wellhead
The annulus between the CT and the 114 mm casing is used for water injection (Water
Annulus). The annulus between the intermediate casing and the 114 mm casing is
continuously purged with nitrogen.
Water and oxygen are injected via the injection well to support the in-situ gasification
process. The resultant manufactured syngas flows toward the production well where the
gas is quenched with sparge water before flowing up the production tubing string. As the
coal is converted, the CT is retracted inside the 114mm casing, back into unreacted
portions of the coal bed.
The production well is completed with two tubing strings, the syngas production string
and the sparge water injection string, with the sparge water injection string installed
inside the syngas production string. The intermediate annulus between the syngas
production tubing and the casing is continuously purged with nitrogen.

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Figure 38.
Production Wellhead
The wells are designed to meet the operating conditions of ISCG which include high
pressures and temperatures, as well as corrosive fluids including CO2 and H2S. The
wellbore and Coil Tubing (CT) were designed to meet API standards, as per the
following:
Casing
API 5CT
Wellhead
API 6A. PSL 1 PR1
BOP's
API RP 53
CT
API 5CLP
HP oxygen is supplied from the Injection Site to the injection well. The oxygen is routed
on flow control to the CT at the injection well head, and from there, it is injected into the
gasification chamber.

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HP nitrogen is supplied from the Injection Site to the injection well. Nitrogen supply to
the oxygen annulus within the CT is included for control purposes as well as for start-up
where ignition is initiated with a controlled blend of oxygen and nitrogen. Nitrogen is
also used to maintain a casing purge on both wells.
Injection water is supplied from an injection water tank located at the Injection Site. This
water is pressurized and flowed down the injection well via a dedicated annulus to the
Reaction chamber pressure for the well pair is controlled at the production well using a
back pressure control valve. Bottom hole pressure at the production well is measured
using a bubble tube assembly. Bottom hole pressure at the injection well is calculated by
measuring surface pressure in the CT and adjusting as required for density and flow
losses.
After reaching the surface of the production well, the hot, wet, raw syngas is routed to the
Production Site facilities.
Injection Site Process Description
The Injection site includes the following equipment:
Injection wellhead, Coil Tubing assembly and associated facilities
Injection Manifold Skid
Oxygen and Nitrogen Skid
Water Storage and injection system

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Figure 39.
Injection Site Process Block Diagram
Process Design Parameters

O2 System Design Pressure:
O2 Injection Operating Temperature:
O2 Injection Design Flow Rate:
N2 Supply Design Pressure:
N2 Supply Operating Temperature:
N2 Supply Design Flow Rate:
N2 Utility Design Pressure:
N2 Pipeline Design Pressure:
Water Injection Design Pressure:
Water Injection Design Flow Rate:

May 2012
20,000 kPag
20 C
30 Tonnes/d
20,000 kPag
20 C
15 Tonnes/day
1379 kPag
20,000 kPag
14,000 kPag
90 Tonnes/d
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O2 and N2 Cryogenic System

High pressure nitrogen is used for the injection well casing purge, ignition sequence,
oxygen tubing string purge, and at the Production Site. Oxygen is required to initiate and
conduct the gasification process.
The O2 and N2 facilities at the Injection Site include cryogenic storage of both liquid
oxygen and liquid nitrogen, as well as high pressure pumping and vaporization.
Figure 40.
O2 and N2 Skid
Both liquid nitrogen and liquid oxygen are trucked in and stored in tanks at cryogenic
temperatures. Liquid nitrogen feeds the nitrogen pump where the pressure is increased
before flowing to the nitrogen vaporizer. The tanks are vertical siphon cryogenic liquid
storage tanks with a design that maximizes efficiency by reprocessing the heat of
pumping. All tanks have their own ambient vaporizer for tank pressure control. The
oxygen pump and both of the liquid nitrogen pumps are reciprocating plunger pumps
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with variable frequency speed control and are designed for cryogenic operation. The
oxygen vaporizer is a water bath electric heater utilizing an inhibited ethylene
glycol/water mix as the heat transfer medium. This solution will prevent freezing down
to -40 oC. The nitrogen vaporizer is a direct electric heater, with the heating coil cast into
an aluminium block. Both of the vaporizers are designed to take the cryogenic liquids at
high pressure and heat them to 20 oC. Since the operating pressure in both systems is
well above the critical points of the respective fluids, the fluids do not change phase, but
rather undergo a density shift as they are warmed. A low temperature shutdown on the
downstream side of the heaters prevents any liquid carryover.
Figure 41.
Oxygen Cryogenic Pump

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Figure 42.
Nitrogen and Oxygen Cryogenic Tanks
Ignition Manifold Package

The manifold package controls the flow of oxygen, nitrogen, water, and ignition fuel to
the injection well during ignition procedures, and, under normal operating conditions, the
flow of oxygen, water and nitrogen to the injection well.

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During the ignition sequence, ignition fluids consisting of a pyrophoric liquid (triethyl
borane) and a fuel (propane) are injected down the well through the ignition string. This
ignition fluid sequence is only used to initiate gasification and is not required during
normal operation of the facility. The pyrophoric fluid is first injected followed by the
liquid fuel. Nitrogen is used to push the ignition fluids down the well.
The ignition fluid liquid slug is pushed down injection fuel line to the burner tip at the
end of the coiled tubing string. The oxygen and ignition fluids slug launches are timed
such that the ignition fluid arrives very shortly after the oxygen. The pyrophoric fluid
autoignites in the presence of oxygen and as a result ignites the ignition fuel. The
resultant burner flame melts through the injection well liner and initiates the combustion
of volatiles in the near burner area, thus commencing the gasification process.
Figure 43.
Ignition Fluid Injection System

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Injection Water System

Recovered produced water from the Production Site, as well as trucked-in produced
saline water make-up volumes from nearby oil fields, are stored in a 1000 bbl water
storage tank, at the Injection Site. Using a water transfer pump, water from the 1000 bbl
tank is transferred to a 750 bbl injection water storage tank. Both tanks are designed in
accordance with API 2000 specifications and are protected from freezing by an electric
immersion heater. The 750 bbl tank is also outfitted with a tank mixer.
Vapours from the storage tanks are sent to a vent gas scrubber where any hydrogen
sulphide present is absorbed to control odours.
Downstream of the transfer pump, corrosion inhibitor and oxygen scavenger are added to
the water using an in-line mixer. The chemicals are utilized to prevent scaling and
corrosion issues in the well bore piping. The treated water level is controlled to ensure
the tank mixer in the 750 bbl tank is always submerged.
Depending on the injection pressure, water from the 750 bbl tank is then pumped to the
injection well either directly using the low pressure water injection pump or both the low
pressure and high pressure water injection pumps in series. When injection pressure is
low the high pressure injection pump is bypassed. When injection pressure is high, low
pressure pump acts as a booster pump for the high pressure injection pump. The flow set
point is based on maintaining the desired injection water to oxygen injection ratio on a
mass basis.

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Figure 44.
Low Pressure Water Injection and Transfer Pumps
Figure 45.
High Pressure Water Injection Pump

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Figure 46.
1000 bbl and 750 bbl Water Tanks
Utility Nitrogen
Utility nitrogen, which is used for blanket gas, instrument gas and low pressure purging is
generated by vaporizing low pressure liquid nitrogen using a nitrogen utility vaporizer.
This is an electric heater which increases the nitrogen temperature to about 20 oC.
Production Site Process Description

The Production Site includes the following:
Syngas system (pressure reduction, cooling, water knock-out, gas analysis,
flare/incineration)
Recovered water system (sparge injection, tankage, make-up water truck delivery
receiving, water transfer to injection well site)
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Figure 47.
Production Site Process Flow Diagram
Process Design Parameters
Design Dry Syngas Rate:

Surface Design Pressure:
Surface Design Temp:
113.3 e3m3/d
9,100 kPag
300 C
Inlet Gas Cooling and Separation

Hot syngas from the production well flows into the inlet gas exchangers where it is
cooled using glycol as a cooling medium. Cooled syngas then enters the inlet separator
for removal of condensed water. This condensed water includes sparge water injected
for bottom hole temperature control.
Although it is not currently required, gas from the inlet separator can be routed through
an activated carbon filter if needed for mercury removal in the future.

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Figure 48.
Production Wellhead and Inlet Gas Exchangers
Figure 49.
Two-Phase Separator (left), Carbon Filter (middle) and Gas

Chromatograph (right)
The condensed water is level controlled in the inlet separator and routed to the Flash
Separator for further separation.

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Syngas from inlet separator is pressure controlled to either the flare or the incinerator.
Prior to disposal via flare or incineration, the syngas is metered and analyzed using a gas
chromatograph.
All critical flows, pressures and temperatures for the syngas and recovered water are
continuously monitored and trended in the control system historian.
Glycol Cooling System

The gycol circuit contains a 60/40 ethylene glycol mixture which is used as a cooling
medium in the inlet exchangers. The circuit is a closed loop system that consists of a
surge drum, pumps, and air cooler. A glycol pump circulates the glycol which picks up
heat from the syngas in the inlet exchangers; the glycol is then cooled by the air
exchangers. The cooled glycol is then routed back to the pumps. The system remains
open to the glycol expansion drum which serves the dual purpose of meeting the suction
requirements of the glycol pumps and managing changes in the system volume due to
temperature changes.
Figure 50.
Glycol Pump System

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Figure 51.
Glycol Aerial Coolers (right)
Water Handling
Water removed in the inlet separator is reduced in pressure and routed to the flash
separator. In the flash separator, gases liberated by the drop in pressure are removed and
sent to the high pressure flare header. Water from the flash separator is filtered and sent
to the sparge water storage tank, back to the sparge pumps or routed to the injection site
via buried pipeline for use as injection water. The site water balance and water quality
dictate where the water is routed.
A fuel gas blanket is maintained on the sparge water tank to prevent air ingress. Any
vapours released from the water are routed to low pressure flare header.

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Figure 52.
Flash Separator
Figure 53.
Production Site Water Storage Tank
Flare System
There are two separate flare systems at the production site. Although both operate at low
pressure, they are referred to as the high pressure and low pressure flares in reference to
the operating pressures of the systems that connect to them.

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Vessel pressure safety valves, control (blow down) valves, and the sales gas to flare
valves from main processing equipment are tied into the high pressure flare system. The
high pressure flare system contains the high pressure flare knock-out drum and flare
stack. The flare header is continuously purged with a small volume of fuel gas. The flare
stack is kept lit with a continuous-spark ignition system. Liquid collected in the high
pressure flare knock out drum is removed by level switch activation of the high pressure
knockout pump. The liquid, which is primarily water, is pumped to the sparge water
storage tank.
Low pressure venting from analyzers, glycol surge drum, and atmospheric storage tanks
are tied into the low pressure flare system, which contains the low pressure flare knockout drum and flare stack. The low pressure flare header is also continuously purged with
a small volume of fuel gas. The flare stack is kept lit with a continuous-spark ignition
system. Liquid collected in the low pressure flare knock out drum is removed by level
activation of the low pressure knockout pump. The liquid, which is primarily condensed
water from tank vapours, is pumped to the water storage tank.

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Figure 54.
Flare Stack (left) and LP Flare Knockout Drum (right)
Incinerator
Syngas from the inlet separator is sent to an incinerator, which is a forced draft thermal
oxidizer designed for destruction of 99% of contaminants in the syngas stream such as
H2S and aromatic compounds. Destruction efficiency is maintained by controlling the
incinerator top temperature. An integral knock-out drum in the base of the incinerator
captures any condensed liquid in the feed line before gas enters the main burner.

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Figure 55.
Incinerator
Fuel Gas
Fuel gas is pipelined to the production site from an area supplier. Upon entering the facility,
the fuel gas is routed to the fuel gas scrubber to remove any condensed liquid before feeding
the fuel gas supply header. In addition to vessel blanket gas and sweep gas for the flare
headers, fuel gas is added to the flare system as required to increase the energy content of
the overall gas mixture during flaring events.

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Instrument Air
Air is used to power and operate many of the instruments on the production site. This
instrument air is provided by two duplex screw air compressor packages with dry air
storage. Critical instruments have nitrogen cylinders that backup the instrument air in the
event of a loss of air compression.
3.5.
Use of Standard Oil and Gas Equipment
One of the key features and successes of the Demo is the use of standard oil and gas
equipment, materials, design codes, and operating and maintenance practices generally
throughout. The capabilities and depth of experience available with respect to
engineering, supply, construction, operation and maintenance from the Alberta oil and
gas industry was found to be suitable for conducting ISCG operations in Albertas deep
coals.
4.0. Results and Achievement of Technical Objectives

4.1.
Achievement of Technical Objectives
The Demo results, vis--vis the technical objectives set forth in section 2.2 above, were
as follows:
(i)
To be able to ignite, in a fully controlled manner, coal at any point along the inseam length of the injection well and thereby initiate the formation of a gasifier
reactor/cavity at that location;
The Demo achieved this objective. Synfuels developed and refined an ignition procedure
which is based on starting the ignition process at low energy levels, and then step-wise
incrementing energy levels in a controlled manner if previous ignition attempts are
unsuccessful.

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(ii)
To be able to re-start the gasification process in an existing cavity (i.e., reignition)

as required, after cessation of oxygen injection and thus be able to take each
gasifier reactor/cavity to its full developmental extent, regardless of operational
disruptions.
The Demo achieved this objective and repeatedly demonstrated this capability.
(iii)
To be able to form multiple gasifier reactors/cavities along the injection wellbore

from the toe of the well to its heel, at any location along its length.
The Demo achieved this objective, although given the early stage of life for the well pair
(i.e., first few years, as against a 15+ year planned well pair operational life), operations
were necessarily restricted to the far end of the injection well length.
(iv)
To be able to operate the gasifier reactor/cavity at pressures from 0 4 MPag

below reservoir pressure at the gasifier reactor/cavity
The Demo partially achieved this objective, with operation at well below reservoir
pressure (i.e., low end of the range specified in the objective) planned for future
operations.
(v)
To be able to operate in a stable manner at oxygen injection rates within the range
of 5 to 30 metric tonnes/d, with an expected normal operating injection rate of 20
metric tonnes/d.
The Demo has achieved a portion of this objective, with operations conducted over a
wide range of oxygen injection rates, and confirmed expected gas manufacture rates at
varying levels of oxygen injection. Further testing in this regard is planned.
(vi)
To be able to operate in a stable manner at a gasifier water/oxygen mass ratio

within the range of (2 to 3):1, over the entire range of oxygen injection rates.
The Demo achieved this objective, and demonstrated the influence of water/oxygen
injection ratio on syngas composition, notably the relative fraction of methane and CO2
manufactured at varying water/oxygen injection ratios.
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(vii)
To be able to control the water/oxygen ratio and mixing such that stable operation
and thorough mixing can be achieved at any operating point within the specified
ranges for water and oxygen injection.
The Demo achieved this objective.

(viii) To determine the maximum sustainable operating temperature of the syngas at the
production wellhead (subject to metallurgy limitations with the production well).
This maximum sustainable operating temperature of the syngas at the production
wellhead has not yet been determined, and will be the subject of future Demo operations.
This parameter is not fundamental to the operation of the ISCG process and rather is a
design consideration for surface facilities for future ISCG projects.
(ix)
To be able to fully withdraw the injection string at any time during the life of the
well pair, and then reinsert it such that the burner/injection head reaches at least
the location of the most recent gasifier reactor/cavity ignition point.
The Demo has achieved this objective.

(x)
To be able to process the syngas produced to meet the following specifications at

the Project battery limit:
Syngas pressure:
4 MPag or greater
Syngas temperature: 50C or less
Syngas dewpoint:
no free water in syngas at customer end of pipeline
The Demo has achieved this objective.

(xi)
To be able to recover produced water to the extent practical from the produced
syngas, and recycle this water for both injection, and production well sparging
use, so as to minimize makeup water requirements

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The Demo has achieved this objective, including use of saline water for makeup water
purposes, with such saline water being considerably higher in total dissolved solids than
saline water from the coal seam itself, with no effects on the ISCG process.
4.2.
Further Key Learnings
Over the course of the program, several important learnings have been garnered with
respect to deep ISCG facility design, operation and system performance. A summary of
these key learnings is provided as follows:
Lack of Far-Field Effects: as predicted prior to the start-up of the ISCG Demo,
operational results have shown that temperature, pressure and gas flows associated with
the ISCG process are confined to a very-near gasifier area in the coal seam, i.e., within a
few meters of the outer envelope of the gasifier at any given time, including elevated
temperatures. The low permeability of the coal, along with the maintenance of pressure
gradients into the gasifier (i.e., operation of the gasifier at slightly below reservoir
pressure) during normal operation ensure that ISCG have no detectable effects removed
from the gasifier zone in any direction (laterally or vertically).
Gas Containment
Gas containment and losses are an important consideration in ISCG. The gasifier
chamber is bound by impermeable cap rock above, base rock below, and coal and
overlying strata on either side. It is the low permeability of the surrounding rock and coal
that will prevent syngas migration beyond the chamber, together with operation at system
pressures which do not support any widespread gas migration or loss from the
Containment of hydrocarbons within rock formations by the overlying strata is a naturally
occurring geological feature that has existed for millions of years, which has allowed for
the safe production of oil and natural gas resources in the province for many decades. In
addition, coals are well known for their ability to adsorb gases such as methane and
carbon dioxide, two of the principal gases manufactured in in-situ coal gasification.

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Lateral Containment
Others previous experience with coal bed methane extraction tests in the Swan Hills
region has shown that the coal in the Mannville formation does not produce gas readily
and is indicative of a very low permeability. Synfuels geologists have estimated that the
permeability of the Mannville coal is less than 1 mD in the Demo area.
Operation of the Demo during the February to April 2011 timeframe provided insight
into the impermeable nature of the coal. During that run, SHS tested the ability of syngas
to flow through a restricted-path coal system, to assess the ability of syngas to flow
through coal boundary layers in an in-situ gasifier. During this test, the coal between the
injection and production well, which was acting as a barrier, was estimated to be
approximately 54 thick. Synfuels used a hydraulic rotary system with a small drill bit on
the end of a 6 long flexible drill string to drill a small (approximately 3/4 diameter) hole
from the bottom of the production well, through the coal seam to the end of the injection
well, to improve the flow path (see Figure 1 below). After penetration through the coal,
flow tests were conducted to prove that connection was made between the two wells.
Once operation commenced, however, the syngas flow from the gasification chamber at
the end of the injection well to the production well was significantly restricted, which
limited the amount of oxygen that could be injected. Figure 56 shows a plot of the
injection and production well bottom hole pressures during the February to April 2011
timeframe. As shown, the pressure differential averaged 8.2 MPa, which is in contrast to
an expected differential pressure of approximately 2 MPa or less for design conditions in
a mature gasifier. During this period, the average gas flow rate to the production well
was approximately 1% of the flow anticipated in a mature gasification cavity with an
open flow path. Most, if not all of the flow that was measured during this period likely
travelled to the production well through the 3/4 flow path. The fact that the injection
chamber seemed to hold a pressure and that flow to the production well was greatly
restricted despite a significantly increased pressure driving force clearly illustrates the
coals ability to act as a natural barrier.
Under normal ISCG gasifier chamber operation, the driving force (delta P) across the
lateral coal barriers at the boundaries of the gasifier are significantly lower than those
tested during the operation described above. Additionally, these coal barriers will be in
May 2012
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virgin state from a mechanical integrity standpoint (i.e., no holes drilled into them,
etc.). Thus it is apparent from the above test discussion that under any conceivable
operating scenario for deep ISCG, the prospect of any significant gas migration through
the coal seam is negligible.
Figure 56.
Representation of the Restricted Flow Path February-April 2011

Operation
4 1/2
PRODUCTION WELL
P1
3/4
P2
54
COAL SEAM
INJECTION WELL
CHAMBER

May 2012
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Figure 57.
Injection and Production Well Conditions Feb-Apr 2011

Bottom Hole Pressure Data
-Feb to Apr Run-
Bottom Hole Pressure (Mpa)
20
16
Average P
= 8.2 Mpa
12
4
Injection Well BHP
Production Well BHP
Average BHP
0
23/02/2011
05/03/2011
15/03/2011
25/03/2011
04/04/2011
14/04/2011
Vertical Containment
Previous ISCG projects have determined that the process is expected to affect rock strata
(fracturing of rock) overlying the ISCG coal seam for a height of up to about 5 times the
coal seam thickness above the top of the coal seam. At the Demo site, the affected
zone of rock overlying the coal seam is expected to extend from the top of coal, at a
depth of 1370 m KB (as referenced to the 00/09-09-65-11 W5/0 core well drilled in
November 2007), up to a depth of 1343 m KB (27 m above the coal seam) in the worst
case. As such, the unaffected strata above this will provide containment/cap rock
function for the gasifier.
Logs from the 09-09 core well also indicate that from 1343 m KB up to 1325 m KB (27
to 45 m above the coal seam), inter-bedded strata of tight siltstone, shale, coal, sandstone,
and some carbonates are present. According to geological assessments conducted on
these core samples, the strata in this interval, particularly shales and coals, will provide
effective seal in and containment of the gasifier. At 1287 m KB (56 m above the coal
seam), the Joli Fou shales are encountered. These tight shales are well developed in the
area and will constitute a final backstop means of containment of the gasifier.

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The characteristics of the base of the gasifier are of less significance from a containment
perspective, due to the general upward tendencies of the gasification process (heat
transfer, gas buoyancy). In addition, previous ISCG projects have not observed the
mechanical breakage and/or displacement of rock in the gasifier chamber floor that has
been observed in the strata overlying the coal seam. Nonetheless, the approximately 10 m
of tight shales that underlay the coal are expected to provide base containment as
required, particularly as the mechanical integrity is not expected to be influenced by the
ISCG process.
Temperature Effects
From published data, the thermal conductivity of coal is very low and comparable to that
of the surrounding rock strata (shales, claystone, siltstone, sandstone). Temperature
gradients of 5450 C/m have been derived from observation of previous ISCG trials
(Wang et al 1982; Covell and Thomas, 1996). Thus, with expected maximum
temperatures in the active gasifier cavity of up to 1200 C, the zone of thermal effect
around the gasifier is very limited in thickness, at less than 1 m.
During the Demonstration facility operations between February and April 2011,
temperature measurements were taken at various locations surrounding the high
temperature (ignition) area at the burner tip. The locations are illustrated in figure 57.
During this run, the chamber temperature was estimated to be close to 1000 C. The
thermocouple at the burner tip (T2) shows maximum readings of approximately 300 C
due to cool water flow and other factors. As can be seen in the figure 4, there was no
significant far-field temperature effect observed at the heel (T1), observation well (T3), or
production well (T4), all of which measured consistent temperatures between 50-60 C,
which is the temperature of the formation at the depth of the coal seam.

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Figure 58.
Diagram of Subsurface Temperature Monitoring Locations

Temperature Profile Around ISCG Well Pair +
Observation Well
700 m
700 m
Injection Well
Observation Well
Production Well
1395 m
T4
70 m
5m
3m
T1
-T1 is the temperature


May 2012
T2
T3
at the heel of the injection well

at the burner tip
at the bottom of the Observation well
at the production well, 70 m above the horizontal injection well
Page 89 of 93

Figure 59.
Subsurface Temperature Trends Feb-Apr 2011

Measured Bottom Hole Temperatures
- February to April Run -
400
Production Well (T4)
Injection Well Heel (T1)
Burner Tip (T2)
Observation Well (T3)
350
Temperature (oC)
300
250
200
150
100
50
0
20/02/2011
02/03/2011
12/03/2011
22/03/2011
01/04/2011
11/04/2011
21/04/2011
Conclusions Lack of Far-Field Effects

Synfuels operational experience with the Demo has shown that the effects of ISCG
operation (gas losses/migration, temperature effects) are restricted to a very near gasifier
area, i.e., within a few meters of the gasifier boundary at any point in time. Synfuels
high pressure differential test in the spring of 2011 showed that syngas does not flow
through coal and rock strata at this depth/low permeability even when abnormally large
differential pressures are applied (relative to normal gasifier operation) and the coal has
been previously compromised (pilot hole drilling). Similarly, temperature measurements
during ISCG operation have shown no far-field effects whatsoever, in line with the

May 2012
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thermal insulation properties of the rock and coal forming the gasifier boundary layers,
and also in line with the experience of other ISCG operators world-wide.
Metallurgy: Synfuels choice of hot gas path metallurgy in the production well has
proven to be effective as a lower cost alternative to expensive high-nickel alloys.
Corrosion management remains a go-forward operations and maintenance area of focus
for ISCG.
Generally, the ISCG Demo was very successful in demonstrating the use of standard
oilfield equipment, metallurgies and processes to safely and reliably effect the ISCG
process. Notable in this regard is the use of carbon steel in high pressure oxygen service
at the injection site. With proper cleaning and commissioning procedures, carbon steel
was shown to be effective in high pressure oxygen service and suitable for use in ISCG
operations.
Production Well Completion/Design: Synfuels has developed an effective production

well design using a sparge water system to control bottomhole temperature below
metallurgical limits in this wellbore, while using relatively low-cost metallurgy for key
well components.
Downhole instrumentation/measurement: The use of thermocouples for in-situ reliable

temperature measurement was marginally successful. Other alternatives are now being
explored for future applications. Accurate downhole pressure measurement was achieved
and was reliable throughout the ISCG Demo runs.
Microseismic Monitoring: A microseismic array was installed in a previous coal

exploration core well, approximately 100 m off the axis of the injection well. The
microseismic system proved to be generally effective in providing a three-dimensional
representation of gasifier growth and propagation.
Additionally, as expected,
temperature monitoring in this well did not detect any change in coal seam or

May 2012
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surrounding temperature strata (see comments regarding lack of far-field effects

above).
Well Linking/Communication Enhancement: Synfuels experimented with a number of

wellbore communications enhancement techniques prior to the initial ignition of the
system, including hydraulic pumping, water jet micro-drilling, forward combustion, and
direct intercept drilling. One technique in particular clearly offered the best means of
achieving this required good flow communication between wellbores prior to the
commencement of operation in this low permeability coal.
Syngas quality: Synfuels operational experience with the ISCG Demo facilities,
including several months of continuous, extended run operations, has shown the benefits
of practicing ISCG in the deep, high pressure environment offered by Albertas
Mannville coals. The gas manufactured by the process was clean (relative absence of
particulates or any solid matter), and was of excellent calorific value, owing to high
methane concentration in the manufactured gas. Control variables were shown to
influence the quality (composition) of the syngas, giving a wide control range over gas
composition to meet energy and CO2 gas manufacture rate requirements in a commercial
development.
5.0. Conclusions and Recommendations for Further Study

The program has generally met all of the objectives initially set forth. Operationally, the
Demo facility is still early in its life, with significant run-time planned in the future to
further test process operating modes/conditions and their influence on manufactured
syngas quality, as well as cavity growth/propagation and performance of the system
across multiple gasifier cavities. Salient among the key successes of the program:
Design, construction and demonstrated operation of a very deep ISCG system,

using standard oilfield equipment, materials, well design and drilling

May 2012
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Operationalization of the ISCG ignition system and the development of

operational experience with this system, such that ignition is now a task
accomplished with the system equipment and by regular operations personnel
Sustained, steady production of high quality syngas (rich in methane and CO2) ,
largely due to the high-pressure operating environment inherent in working coal
at this depth
Testing and evaluation of a number of items (metallurgy, well linking/flow

communication enhancement techniques, flow of syngas through coal, HP oxygen
piping systems) in the Demo to enable the selection of the best choices for
incorporation into commercial project replicants of the Demo well pair and
surface facilities equipment and materials

May 2012
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Swan Hills UCG

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SWAN HILLS IN-SITU

FINAL OUTCOMES REPORT

Final Outcomes Report May, 2012

Executive Summary ................................................................................................. 3

Project Background .............................................................................................. 5

Project Objectives ................................................................................................ 7

General Project Overview .................................................................................... 8

Siting and Geological Considerations ................................................................ 11

ISCG Process Description .................................................................................. 48

Project Equipment and Facilities Description .................................................... 55

Use of Standard Oil and Gas Equipment ........................................................... 81

Results and Achievement of Technical Objectives ............................................... 81

Achievement of Technical Objectives ............................................................... 81

Further Key Learnings ....................................................................................... 84

Conclusions and Recommendations for Further Study ......................................... 92

1.0. Executive Summary

In-Situ Coal Gasification

Demonstration of only near-field (i.e., immediate gasifier perimeter) temperature

Use of saline injection water to support the ISCG process.

Final Outcomes Report

In-Situ Coal Gasification

This report to Alberta Innovates Energy and Environment Solutions (AI-EES)

In-Situ Coal Gasification

Environmental practicing ISCG in deep coals, with substantive impermeable

Demo Facilities Location

Final Outcomes Report

In-Situ Coal Gasification

To be able to re-start the gasification process in an existing cavity (i.e., reignition)

To be able to form multiple gasifier reactors/cavities along the injection wellbore

To be able to operate the gasifier reactor/cavity at pressures from 0 4 MPag

To be able to operate in a stable manner at a gasifier water/oxygen mass ratio

Final Outcomes Report

In-Situ Coal Gasification

To be able to process the syngas produced to meet the following specifications at

3.0. Project Description

In-Situ Coal Gasification

Elimination of extensive surface process equipment to handle, process, and gasify

Ability to use non-fresh water supplies (e.g., saline water or wastewater) to

Avoidance of fresh water aquifer contamination risk: the coal gasification

Final Outcomes Report

In-Situ Coal Gasification

Siting and Geological Considerations

Considerable depth, well below Base of Groundwater Protection (depth at which

Thick, relatively clean individual coal seams

In a number of locations, suitable geology in overlying strata to support ISCG

No material development conflicts

In-Situ Coal Gasification

Geographic and Geological Setting

Final Outcomes Report

In-Situ Coal Gasification

Geological Study Area with Locations of Wells with Good

Oil & Gas offset well

Final Outcomes Report

In-Situ Coal Gasification

Final Outcomes Report

In-Situ Coal Gasification

Final Outcomes Report

In-Situ Coal Gasification

Mannville Group Structure Map

Final Outcomes Report

In-Situ Coal Gasification

Regional Geological Cross-Section

Regionally, a network of structurally controlled surface lineaments in Northern Alberta,

Structurally Controlled Lineaments in Swan Hills Area, from Pana et