ARID System Cost

The ARID System is purchased or leased by the CBM Operator and each ARID mandrel has a serial number for tracking. The ARID serial number is tied to the well name, location and Operator. When using the ARID system produced water is mitigated at between $0.02 and $0.06 per barrel.

The cost of the ARID System includes the ARID mandrel hardware and operational support services which include:

  1. Reviewing of the area geology where the well is planed or currently exists in order to identify the position of receiving zones for produced water.
  2. Identifying the government agencies that require permits for the well completion or addition of the ARID system.
  3. Identifying the permitting requirements for the ARID well depending on its geographic location and geology.
  4. Coordinate the water sampling process on behalf of the CBM operator in order to identify the coal seam water quality and the receiving zone water quality to insure proper injected water quality.
  5. Completion of the CBM well permit application and following the application through the permitting process until approved.
  6. Reviewing of the ARID System with the CBM Operators well drilling and completion crews.
  7. Guiding the CBM Operators crew through the perforation process, airlifting of related cascading fines, and the setting of the down hole components of the ARID System to insure maximum performance.
  8. Guiding the CBM Operators crew through the hook up at the well head to insure the well is hooked up properly for maximum production.
  9. Continually evaluating the wells performance operating logs to insure the ARID system is operating at maximum performance.
  10. Troubleshooting any CBM well performance issues.

The ARID System offers a short and long term savings for CBM operators by reducing the time and cost of applications, eliminating the need for other water handling infrastructure and eliminating the related reclamation costs. While Operators should always attempt to consider all the economic costs of extracting CBM Gas, it is common that when gas prices are high, water handling costs are not evaluated closely. If CBM operators look closely at traditional water handling costs compared to ARID, they will find that the ARID System is economical for water management when natural gas prices fall to $3.00 per Mcf (million cubic feet).