Alpha (risked)

Producing Above & Beyond

Alpha is performance both in oil production and reserves that is above what a client’s field can attain using conventional industry practices.  The identification and demonstration of Alpha is broken into three engagement stages.  This provides a structured approach that allows the client a level of assurance and builds trust that alpha can be attained.  QRI remuneration is based on a percentage of the alpha attained.  The three stages, in general, are as follows, with specific details to be determined on a case by case basis:

The Study Stage (one to four months):

It will encompass an assessment of all relevant technical information on a field. It will set the foundation for the Pilot and Full Deployment Stages.  A report will be published and submitted within two to four months.  It will outline the current state of the field, determine major gaps in performance and map out the project scope and plans to achieve alpha production and reserves.

The Pilot Stage (twelve to eighteen months):

It is intended to identify and deploy near-term solutions that will quickly mitigate a field’s declining performance within the initial twelve months of engagement.  Given its “time is of the essence” nature, the Pilot Stage will rely more on in-place systems and data to meet its objectives.  This effort will utilize QRI’s proprietary technologies including Reservoir Competency Asymmetric Assessment (RCAA™) and will leverage the extensive knowledge, expertise, and technical capabilities of the client. It is intended to demonstrate the benefits of QRI’s technology and advanced methods of reservoir management and will lead to the initiation of the Full Deployment Stage once certain performance benchmarks are attained.

The Full Deployment Stage (a multi-year project):

This provides: a) long term operating and development plans that ensure rate sustainability and reserve capability, and b) assistance in the timely and effective execution of alpha attainment plans.   The devised plan utilizes a methodical, structured approach that is applied jointly through a partnership-based effort by the client and QRI.   It will involve lab experiments, field measurements, and detailed reservoir characterization and recovery mechanism studies.  The major components of the engagement model consist of four measureable modules with RCAA™, QRI’s proprietary technology, providing the main technical enabler to achieve the desired objectives.