2017 Dallas E&P Forum

Transcription

1 2017 Dallas E&P Forum Thursday, November 2, 2017 The Recovery Starts in 2017 Sponsored by Dallas Chapter Society of Independent Professional Earth Scientists (SIPES), Dallas Geological Society (DGS) And Hosted by Brookhaven College Geotechnology Institute 3939 Valley View Lane, Farmers Branch, TX Building H Register on-line with

2 2017 Dallas E&P Forum The Recovery Starts in 2017 Special Thanks 2017 Dallas E&P Forum Event Contributors Donald Muth, Sr. Consultant, Oakmont Minerals, Inc. Calvin Nix Emerald Energy Jen s Place Bakery & Cafe Adam Bishop Hunt Oil John Hannon Schlumberger Robert Webster Consultant John Stephens Stephens Exploration Mary Valdez Brookhaven College Matt Bob Eagle Oil & Gas Michael Adams Gaedeke Energy And all of our Speakers!

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4 Welcome to the 2017 Dallas E&P Forum November 2, 2015 Welcome to the 2017 Dallas E&P Forum, The Energy Information Agency WTI oil price forecast since mid 2015 and into 2018 has been on mark at $45 - $52 / bbl. The motto, Lower for Longer has merit. However, the September 2017 IEA Oil Market Report has daily world crude oil consumption increasing to 100 million barrels in late That s a 7.1 million BOPD gain since 2014! The demand for natural gas, gas liquids and battery technology is growing too! Our event speakers will provide energy insights into 2018 and beyond on the emerging upstream recovery. It has been my pleasure to be Chairman / Co-Chairman of the Dallas E&P Forum over the last four years. The 2017 Dallas E&P Forum is sponsored by the Dallas Chapter Society of Independent Professional Earth Scientists (SIPES), Dallas Geological Society (DGS) and hosted by the Geotechnology Institute of Brookhaven College. We thank our sponsors for their participation in today s event. Let s recognize the achievements, services and technology our sponsors provide to our exploration and production efforts! Donald P. Muth, Sr Forum Chairman 2

5 2017 Dallas E&P Forum The Recovery Starts in 2017 Technical Program Time Presentation Speaker Company 8:00 a.m. Welcome and Program Introduction Donald Muth Independent 8:15 a.m. Comprehensive Integrated Petrophysical Analysis That Enhances Performance of a Wolfberry Play Tim McGinley Laredo Petroleum 9:00 a.m. Evaluating Oil & Gas Assets in Today s Market Scott Royal ScotRock 9:45 a.m. Coffee Break 10:00 a.m. Fact and Fiction in the Fracking Debate Charles Sartain Gray Reed & McGraw 10:45 am. North America Natural Gas, a future look at conventional and unconventional Supply Dee Patterson Moyes & Co. 11:30 a.m. LUNCH BUFFET SERVICE 12:00 p.m. Technology Disruptions and Energy Markets: Politics vs. Economics Dr. Anas Alhajji Energy Outlook 1:15 p.m. Can a New Player enter and still generate attractive returns in the Permian despite High Acquisition Costs and Lower for Longer Oil Prices? Leo Pirela VPlus Energy 2:00 p.m. Private Equity, It s Fueling Upstream Investment Steven Cobb Pearl Energy Investments 2:45 p.m. Recovery and Growth in Select US Tight Light Oil Plays, West Texas and Oklahoma Robert Clarke Wood Mackenzie 3:30 p.m. The Jo Mill (Leonardian) Deep Marine Clastic System in the Midland Basin Dylan Collins Pioneer Natural Resources 4:30 p.m. Finish 3

6 PAST: EIA 2015 Forward Price forecast for 2016 Fig. 1. FUTURE: EIA 2017 Forward Price forecast for 2018 Lower for Longer Fig. 2. 4

7 CRUDE OIL PROPERTIES and WORLD OIL DEMAND, 2017 FACTS Source: Oil Market Report, , 5

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9 Comprehensive Integrated Petrophysical Analysis That Enhances Performance of a Wolfberry Play by Timothy R. McGinley, P.E. Timothy R. McGinley, P.E. Sr. Petrophysical Advisor, Laredo Petroleum Abstract Optimal petrophysical evaluations of shale plays require advanced logging programs with appropriate core studies. 3D seismic, micro-seismic, DFIT, and frac job analysis provide additional insight into what impacts reservoir performance. A probabilistic evaluation model, tied to extensive core analysis, identifies critical rock properties that will optimize production. Dipole Sonic mechanical properties computations, with frac job response integration, provide quality stress gradient and brittleness estimates. Image logs identify many geologic features and promote high quality depth control of core samples. With this technology added to the tool box, comprehensive analyses are utilized to create a strong development program. Biography Tim is Senior Petrophysical Advisor at Laredo Petroleum. He has over 40+ years of experience world-wide, evaluating both conventional and unconventional resources in 30+ countries. Additionally he has conducted numerous petrophysics related training courses. Tim started his career with Schlumberger as a logging engineer in the Permian Basin after receiving his BS Electrical Engineering degree from the University of Arizona. His Permian Basin reservoir / petrophysical expertise increased with the former Superior Oil Company and then with Mobil, which acquired Superior. He worked worldwide for Mobil Oil and McGinley and Associates. Tim is a Texas Registered Professional Engineer. He is an avid triathlon and marathon competitor. 7

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11 Evaluating Oil & Gas Assets in Today s Market by Scott Royal ScotRock, LLC Scott Royal, President, ScotRock LLC PE. Streetman, TX Abstract The prospective buyer of any energy asset, whether it s minerals, a single producing well, a producing field or portfolio of fields needs to understand, address and develop a methodical approach for proper value evaluation. A general evaluation overview for oil and gas assets will be demonstrated to value individual profit centers (lease or well) up to a project basis with appropriate metrics to determine a good acquisition versus a bad one. Biography Scott Royal has over 40 years of management and engineering experience in reservoir evaluation, acquisitions and operations. His work history includes time with Amoco, Tenneco, Matador Petroleum, & Encore Acquisitions. He founded Woodbine Acquisition LLC in 2010 and acquired the Madisonville, West Field for 239 MM$ in May In December 2013, the properties were sold to Meidu for 535 MM$. He is currently an engineering consultant with his company, ScotRock LLC. He graduated from Texas A&M University with a BS in Petroleum Engineering and is a registered professional engineer in Texas. Scott can be reached at or , scott-royal@sbcglobal.net. 9

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13 Fact and Fiction in the Fracking Debate by Charles W. Sartain Charles W. Sartain, Shareholder, Gray Reed & McGraw, P.C., Dallas, TX Abstract Hydraulic fracturing remains a hot topic in the media, fueled in great part by interests opposed to domestic oil and gas exploration. Much of the debate is focused on emotion, opinion, and bad information. Energy professionals should be aware of what is being said about their business and how they can respond to questions, assumptions and even accusations by their friends and neighbors who are not in the business and don t understand it. This presentation will give them sources of information they will need to engage the opposition. The discussion will include the ethics of discourse. Biography Charles Sartain is a shareholder in Gray Reed & McGraw, P.C., Dallas, Texas. His practice focuses on litigation in state and federal courts and arbitration, in particular in the energy sector. He is a member of the State Bar of Texas, Louisiana State Bar Association, Dallas Bar Association (Board of Directors, ; Committee Chair; Energy Law, 1990, Business Litigation Section, 2017), American Arbitration Association commercial arbitration panel, Texas Independent Producers and Royalties Owners Association. Charles has degrees from Louisiana State University, BS 1973 and LSU Paul M. Hebert Law Center, JD He is recognized in The Best Lawyers in America, , Texas Super Lawyer by Texas Monthly and Law & Politics magazines, He is the Author and editor of Energy and the Law ( 11

14 MATTHEW BOB President 5950 Berkshire Place, Suite 1100 Dallas, Texas O: (214) M: (214)

15 North America Natural Gas, a future look at conventional and unconventional Supply by Dee Patterson Dee Patterson, Managing Director, Moyes and Co. Dallas, TX Abstract A little over a decade ago North America was preparing to import vast quantities of LNG to meet the expected demand for natural gas. The development of the unconventional resource plays in North America has transformed the industry to one that is propelling domestic growth as well as helping to supply the world s natural gas needs with LNG and pipeline natural gas exports. LNG exports are expected to grow from 1.7 bcfpd in 2017 to 10 bcfpd in As a result, natural gas supply is expected to grow from 73 bcfpd in 2017 to 90 bcfpd by This growth will be responsible for a firming of North American natural gas prices starting in Biography Dee Patterson is a Managing Director since 2000 at Moyes and Co., a professional energy advisory firm. Moyes has offices in London, Dallas & Houston, TX providing expert advice on acquisition, divestiture & energy sector investment. Dee is recognized as an expert on global LNG activity and stranded gas. He has been involved in the preparation of Fair Market Valuation Reports, Competent Person s Reports, and has acted as an Expert Witness in litigation and/or arbitration hearings. He has over 35 years of experience in the oil and gas industry in reservoir engineering, operations, construction, commercial, and finance, and has been involved in over 400 projects worldwide across more than 20 countries. Mr. Patterson has been directly involved with the evaluation of over $30 billion of exploration, development, and producing opportunities worldwide. Dee earned a degree in Mechanical Engineering in 1981 from UT Arlington and an MBA in Corporate Finance from the University of Dallas in Prior to joining Moyes, Dee worked at ARCO in the Domestic, International and Technology E&P Divisions in Engineering, Planning & Evaluation, M&A and Finance. He is currently the Past President of the Society of Petroleum Evaluation Engineers (SPEE). Dee can be contacted at; dpatterson@moyesco.com. 13

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17 Technology Disruptions and Energy Markets: Politics vs. Economics by Dr. Anas Alhajji Dr. Anas Alhajji, Energy Economist with Energy Outlook Advisors Abstract All segments of the Energy market (exploration, production, distribution and consumption) are experiencing a major disruption caused by technology. The focus of this presentation is the impact of electric and autonomous vehicles on the demand for oil, natural gas and electricity. The significance of technology disruption, or even the discussion / hype of disruption of hydrocarbon fuels, is expected to lead to a mismatch between energy supply and demand, leading to major crisis in the energy industry. Biography Dr. Alhajji is a noted author, syndicated columnist and is frequently quoted in the Wall Street Journal, the Financial Times, USA Today, the New York Times, Newsweek, Forbes and others. He is a regular contributor to national, international publications and academic journals with more than 800 papers, articles and columns to his credit. He is also the moderator of the Oil, Gas, and Energy Law Forum (OGEL). Dr. Alhajji served as a Professor of Economics at two universities, the University of Oklahoma and the Colorado School of Mines. He was chief economist with NGP and a faculty of the business school at Ohio Northern University where he held the George Patton Chair of Business and Economics. Dr. Alhajji is also a contributing editor for one of the energy industry s premier publications, World Oil Magazine, and serves on the editorial board of several energy publications. Dr. Alhajji is educated in Syria, Saudi Arabia, and the U.S. He holds an M.A. and a Ph.D. in Economics from the University of Oklahoma, with specialization in energy economics. He received many awards including the Teaching Excellence Award and the outstanding Mentor Award at the University of Oklahoma. Dr. Anas Alhajji can be contacted at, and on LinkedIn. 15

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19 Can a New Player enter and still generate attractive returns in the Permian despite High Acquisition Costs and Lower for Longer Oil Prices? by Leo Pirela Leo Pirela, CEO, VPLUS ENERGY, Dallas, TX Abstract The Permian basin is a dynamic petroleum system seeing increased exploitation, exploration and acquisitions during the last three years where WTI oil has not risen above $ 52 /bbl. for more than a day or two. The acquisition cost of minerals, producing properties and leases has seen transactions of $ 30-40M per acre in some areas! Can a new player enter and still generate attractive returns in a lower for longer price environment? An analysis levering Data-Analytics, Machine Learning and Artificial Intelligence guided by Domain Expertise will determine the answer. Biography Executive Leader with 25 years of experience in the Oil and Gas around world and in USA. Leo combines his broad and deep technical knowledge with his business acumen and cutting edge technologies to develop and manage O&G assets of diverse nature and challenges. Leo s most recent roles include; VP for Shell, Global Director for BHI, Director for Denbury and CEO for VPlus Energy. Leo has a BS in Petroleum Engineering with a major in Reservoir Engineering and Thermodynamics along with a MBA specialization in Entrepreneurship and Innovation. He is a registered European Engineer (EurIng) and a Chartered Engineer (CEng) in the United Kingdom. Leo can be reached at, leo.pirela@vplusenergy.com. 17

20 Donald Muth, Sr. Geologist Mobile: Mark Reed, President Michael M. Adams, Vice President, Exploration Gaedeke Energy, LLC 3710 Rawlins St., Suite 1100, Dallas, Texas Direct Fax

21 Private Equity, It s Fueling Upstream Investment by Steven Cobb Steven Cobb, V.P. PearI Energy Investments, Dallas, TX Abstract Private equity is a major capital source for oil and gas development that has evolved with the industry. Pearl is focused on leveraging its deep-rooted industry relationships to partner with bestin-class management teams pursuing attractive risk-reward opportunities in the upstream, midstream, and service sectors. Pearl targets small to middle market investment opportunities and works collaboratively with portfolio companies to evaluate opportunities, make strategic decisions, and execute investment realizations. Biography Steven joined Pearl Energy Investments in August of 2015, one month prior to the closing of the firm s inaugural fund on September 30 th, He began his career as an Operations Engineer in Midland, TX with Pioneer Natural Resources where he managed the downhole and surface operations of assets in the Southern Midland Basin. Steven moved to Dallas and into the Budget & Planning group of Pioneer s Southern Wolfcamp Asset Team that supported joint venture acreage with Sinochem Petroleum USA. While beginning a night-school MBA program, Steven moved to Pioneer s Investor Relations group where he supervised the communication of the Company s strategic initiatives and performance to the investment community. At Peal, Steven leverages his financial and technical skillsets to help guide strategic investment decisions within a growing portfolio. Steven holds a B.S. in Petroleum Engineering from the University of Oklahoma and an M.B.A. in Energy Finance from Southern Methodist University. 19

22 Recovery and Growth in Select US Tight Light Oil Plays, West Texas and Oklahoma by Robert Clarke Robert Clarke, Research Director, Lower 48 Upstream. Wood Mackenzie, Dallas TX Abstract The Lower 48 tight oil cost curve moved lower again in The Wolfcamp resource grew and Mid-continent SCOOP and STACK breakeven points fell dramatically. Now, over half the undrilled tight oil resource Wood Mackenzie price models break even below US$50/bbl. The positive story in these plays is not uncommon across upstream though. In a US $50/bbl. price environment, other resource themes also compete for capital. Tight light oil remains an asset class that E&P firms want exposure to, despite some lesser known risks that may unfold over the next five years. Biography Robert Clarke has been with Wood Mackenzie since 2005, originally as a member of the company s initial US Lower 48 Upstream Research group in Houston. He has covered numerous US regions and led much of Wood Mackenzie s early shale research. He managed the company s international shale, CBM, and tight gas research from 2009 to 2014 and has widespread experience benchmarking and valuing exploratory global unconventional assets. Internally, he oversees an upstream Knowledge Network for other analysts. He relocated to Dallas in 2015 and works closely with E&Ps, investors, and service companies specific to the North Texas market. Robert specializes in geologic play description, portfolio valuation, production forecasting, analogue modelling, and sector trend analysis. He has worked on upstream consulting projects, ranging from asset opportunity screenings for E&Ps, to due diligence work for private equity-led M&A. Robert regularly contributes to written media and is a frequent speaker and panel moderator at industry conferences. Prior to joining Wood Mackenzie, he worked as a Field Geologist for a private engineering and consulting firm in Houston, Texas. Robert graduated Cum Laude from Texas A&M University in 2001 with a BA in Geology, and received a MBA in 2005 from the Eller College of Management at the University of Arizona. Robert can be reached at: robert.clarke@woodmac.com and on LinkedIn. 20

23 The Jo Mill (Leonardian) Deep Marine Clastic System in the Midland Basin by Dylan Collins Dylan Collins, Geoscientist, Pioneer Natural Resources, Irving, TX Abstract The Leonardian (Permian) stratigraphy of the Midland Basin includes a thick succession of finegrained sandstone and shale in excess of 1,500 ft. The sandstone-prone facies of this passive basin infilling are informally assigned to the Spraberry Formation. Lowstand Spraberry clastic sandstone deposits are relatively thin (< 100 ft.) and commonly have the best reservoir quality. The Jo Mill Sandstone, one such deposit, is highly oil productive and its provenance, facies and reservoir characteristics will be discussed. Biography Dylan Collins is a United States Marine Corps veteran having served three deployments in Iraq. He was awarded for valor in combat and participated in assaults on Baghdad (2003) and Fallujah (2004). He earned a Bachelor of Science degree in Engineering Geology at San Diego State University; graduating Summa Cum Laude and number one in his class in Notable internships include NASA s Planetary Aeolian Laboratory and the Los Alamos National Laboratory. Dylan graduated from University of Texas at Dallas in 2014 with a Master of Science in Geosciences, emphasizing in Structural Geology and Paleomagnetics. He is a geoscientist at Pioneer Natural Resources and has worked in Pioneer s Shale Technology, Geophysical Technology and Permian Asset teams since

24 DALLAS GEOLOGICAL SOCIETY, Luncheon Meets Second Tuesday of Each Month, 11:30 a.m. at Brookhaven College Geotechnology Institute Farmers Branch, Texas DGS website: Membership Contact: Natalie Givens, Officers President. Mark Bengtson, President Elect.. Tina Manning, Treasurer... Dan Dolan, Secretary... Neyda Maymi, Webmaster. Calvin Nix, 1 st VP... Calvin Nix, 2 nd VP.. Joe Bauman, Treasurer Elect. Dylan Collins, 22

25 DALLAS CHAPTER SIPES, 2017 Society of Professional Earth Scientists Luncheon Meets Third Tuesday of Each Month 11:30 a.m. at Prestonwood Country Club, Dallas, Texas National SIPES website: Membership Contact: Jon Herber, 2017 Officers Chairman..... Donald Muth, Sr., Vice Chairman. Michael Adams Secretary.. John Stephens stepexplaaol.com Treasurer & Social.... Neil Barman, Membership. Jon Herber, Education. Donald Muth, Sr., Field Trip.. David Shiels, National Director Re. Carol Shiels, NTEC Rep.... Jim Henderson, 23

26 Brookhaven College Campus Map EVENT LOC. 24

27 2017 Dallas E&P Forum at Brookhaven College Thursday, November 2, 2017