CALGARY STAMPEDE CONFERENCE

Transcription

1 CALGARY STAMPEDE CONFERENCE JULY 11, 2011 BENCHMARKING RESOURCE PLAYS Implications for Exploitation and Development Mike Seifert, P.Geol. Canadian Discovery Ltd.

2 AGENDA! Introduc)on:! What is a Resource Play?! Bench Marking Process! Western Canada Resource Plays (overview)! Montney: Sunrise, Glacier, Dawson! Cardium: Rat Cr. vs Carrot Cr.! Summary! Conclusions

3 WHAT IS A RESOURCE PLAY? A 'play' is a family of pools and/or prospects that share a common history of hydrocarbon genera8on, migra8on, reservoir development and trap configura8on. A RESOURCE PLAY is a special category of play which implies the use, or poten?al use, of advanced drilling and/or comple?on technology to make it economic. Although specific wells may be excep8ons, generally speaking a RESOURCE PLAY is deemed to be historically uneconomic on a regional basis without the use of advanced technology. Ed Fogg, Canadian Discovery Ltd.

4 RESOURCE PLAY DEF N Requires Extensive S)mula)on to Produce Produces LiJle In- situ Water Does Not Exhibit an Obvious Seal or Trap Low Matrix Permeability (< 0.1 md) SPEE Monograph 3 Guidelines For The Prac8cal Evalua8on of Undeveloped Reserves in Resource Plays

5 RESOURCE PLAY CRITERIA Source Rock Composi)on Source Rock Maturity Hydrodynamics & Migra)on Reservoir Characteriza)on?

6 WHY BENCHMARK? Internal Analysis /Joint Venture: Compe)tor Analysis: Technology Trends: Logis)cs: Acquisi)on & Dives)ture: Financial Metrics:

7 BENCHMARK PARAMETERS Well Bore Length, Stages and Frac Spacing Proppant Cased or Open Hole Comple)on Technology Base Fluids Produc)on (IP, 6 month, 12 month, CUM) Time

8 RESOURCE PLAYS IN WESTERN CANADA Overview of macro trends in 5 Resource Plays in Western Canada: Time slice of: Completed lengths / stages Frac spacing Comple)on type Well comple)on costs

9 RESOURCE PLAY GROUP

10 RESOURCE PLAY GROUP

11 RESOURCE PLAY GROUP

12 RESOURCE PLAY GROUP

13 RESOURCE PLAY GROUP

14 RESOURCE PLAY GROUP

15 RESOURCE PLAY GROUP

16 RESOURCE PLAY GROUP

17 RESOURCE PLAY GROUP

18 RESOURCE PLAY GROUP Longer Well Lengths More Stages Shorter Avg Frac Spacing Watch for Impact of new Technologies & Methods

19 MONTNEY / DOIG TWP 75 81, RNG 13 17W6

20 MONTNEY Stages & Completed Length

21 MONTNEY Frac Spacing

22 MONTNEY Frac Spacing vs CompleKon Date & Rate Stages

23 MONTNEY CompleKon Costs

24 MONTNEY ProducKon vs Stages

25 MONTNEY CompleKon Costs

26 CASED vs OPEN HOLE COMPLETION CASED COMPLETION Comple)on Cost per Stage $250K to $670K 6 Mo. Cal Gas Produc)on 1,150 mcf/d to 3,750 mcf/d OPEN HOLE COMPLETIONS Comple)on Cost per Stage $225K to $1,135K 6 Mo. Cal Gas Produc)on 1,670 mcf/d to 2,185 mcf/d

27 MONTNEY Actual Stages vs Stage AMempted

28 CASED HOLE COMPLETION 75% ParKal Frac

29 OPEN HOLE COMPLETION 60% ParKal Frac

30 MONTNEY: AVERAGE PROPPANT PER STAGE

31 MONTNEY: Proppant per Stage PROPPANT PER STAGE VS IP GAS PROPPANT PER STAGE VS 6 MO GAS

32 MONTNEY: IP vs 6 mo cal gas

33 MONTNEY: ProducKon Profile

34 MONTNEY: PROPPANT AND STAGE TRENDS

35 MONTNEY Longer Lengths / More Stages / Shorter Frac Intervals Comple)on Costs declining over )me Produc)on/Stage decreases with increased stages More Proppant does not equal more produc)on Cased Hole Comple)ons appear to have lower costs, bejer produc)on rates and lower opera)onal failures

36 CARDIUM Carrot Creek vs Rat Creek

37 CARDIUM Carrot Creek vs Rat Creek

38 CARDIUM: Carrot Creek vs Rat Creek CARROT CREEK: 8.2 % Opera)onal Failure RAT CREEK: 10.2 % Opera)onal Failure

39 CARDIUM: Carrot Creek vs Rat Creek CARROT CREEK: 33% of Opera)onal Failures NOT related to Downhole (mechanical) Problems RAT CREEK: 65% of Opera)onal Failures NOT related to Downhole (mechanical) Problems

40 CARDIUM: Stress Map Source Rock Composition Detailed map of Minimum Principle Stress in Pembina Field High Stress area (Rat Creek) Low Stress Area (Carrot Creek)

41 CARDIUM: Rate Cum Plot

42 CRITERIA FOR EVALUATING RESOURCE PLAYS Source Rock Composi)on Source Rock Maturity Hydrodynamics & Migra)on Reservoir Characteriza)on STRESS ANALYSIS

43 CARDIUM Rat Cr. vs Carrot Cr. GEOLOGY MATTERS Stress Analysis is a KEY criteria for evalua)on Resource Plays

44 MICROSEISMIC IS THE ONLY WAY TO KNOW WHERE THE FRACS ARE Reservoir characteriza)on using surface microseismic monitoring Peter M. Duncan1 and Leo Eisner1 GEOPHYSICS,VOL. 75, NO. 5 (SEPTEMBER- OCTOBER 2010); P. 75A139 75A146

45 THE ONLY WAY TO KNOW WHICH FRACS ARE EFFECTIVE IS TO USE FLOWBACK ANALYSIS Case History: Horizontal Gas & Water RECON

46 Acknowledgements Pete Singbeil, Introspec Energy Group Inc. Neil Watson, Canadian Discovery Ltd. David Hume, Canadian Discovery Ltd. Ally Masoud, Canadian Discovery Ltd. Lina Hage, Canadian Discovery Ltd. Meridee Fockler, Canadian Discovery Ltd. Catherine Allen, Canadian Discovery Ltd. Tezla Hayduk, Canadian Discovery Ltd. Sean Urquhart, Canadian Discovery Ltd.