2018 Sucker Rod Pumping Workshop Cox Convention Center, Oklahoma City, OK September 11-13, 2018 Oil and Gas Operations in an Urban Environment: Challenges and Opportunities Signal Hill Petroleum Brandon Bridgman Operations Engineer
Who is Signal Hill Petroleum? 2018 Sucker Rod Pumping Workshop Oklahoma City, OK 2
Values We believe that our employees are our most important asset and that we must constantly strive to develop the best skilled, best motivated and best performing team in the industry We believe that our honesty and integrity as a business and as individuals is key to our success We believe in going above and beyond to get the job done right We believe that our operations must always be safe, environmentally sound and neighbor sensitive We believe in family, both at home and in the context of the work environment We believe in being involved and being a part of the communities that we operate in 3
What We Do Main business is oil and gas production and exploration in the Los Angeles Basin Unique urban operators Secondary business is real estate Commercial/retail properties 4
Core Asset: Long Beach Oil Field Discovered in 1921 Super Giant Field Over 1 billion barrels of oil recovered 450 SHP operated wells Annual production 1 million barrels of oil 365 million cubic feet of gas 5
The Long Beach Oil Field Located in the Los Angeles Basin in Southern California Basin Recovery = 10 billion bbls We are here 6
SHP Oil Operations Signal Hill is an active oilfield 450 producing wells Pioneering new technologies to ensure longevity Natural Gas Process Plant Capacity to handle 4.5Mmcf/per day Provides dry gas to generate 4 to 5 megawatts/electricity Equivalent to 75% of our oilfield electrical use Provides vapor recovery compliance for SHP and its 17 neighboring independent producers 7
Industry Regulations and Safety Regulatory oversight Highly regulated by over 24 different governing agencies DOGGR pipeline management plan in place Systematic pipeline hydrostatic testing Pro active maintenance and repair program - Damage prevention (USA dig alert) Corrosion prevention program High pressure/low pressure alarm systems Methane monitoring program SCAQMD requires methane monitoring each quarter by a 3 rd party service (Avanti) per rules 1176 and 1173 3rd Party uses highly sensitive equipment to locate any initial leaks 8
County, State, and Federal Oversite In addition to a formal annual inspection and continual oversight by the City of Signal Hill, the oilfield operations are subject to county, state and federal oversight: 9
SHP Operational Safety and Excellence The continuous maintenance, upgrades, replacements, monitoring and testing of all wells, facilities and pipelines Approved spill/release prevention and response programs 24 hour field personnel to monitor all operations Spill response training annually ICS, Incident Command System reviewed and approved by both the state and federal agencies Routine Testing of Equipment Quarterly 3rd party testing of over 50,000 wellhead, fittings and components Higher Standard for Operations Keeping areas in and around our wells pristine Keeping noise to a minimum Training Ops team to be prepared for community engagement 10
Proactive Property Enhancements 11
What Makes Urban Oil Operations Different? 12
Our History In 1916, the first oil well was drilled on the hill but didn t produce Following WWI, Royal Dutch Shell bought 240 acres on the southeast flank of the hill. After 3 months of drilling, on June 24 th, 1921, Alamitos No.1 began to gush Alamitos No. 1 produced 590 barrels per day from 3,114 ft Still producing today 13
Modern Day, Oil Town 14
No Walls, No Buffer 15
Solution = Become Development Experts 16
Completed Development Projects 17
Our Approach? Communicate Transparency Responsible Reliable Accessible 18
How We Accomplish This Being a considerate corporate neighbor Don t make the neighbors mad Company Culture and Mindset SHP s core values are rooted in a transparent business philosophy, honest approach, and support of our community Being a reliable partner Bringing value to local communities, the environment & the nation as a whole Earning our social license everyday 19
Tri-Lingual Oil Real Estate and Development Community 20
What Does It Mean To Speak Community? 21
Be Present, Be Involved, Be Engaged & Care 22
Tours, Educating and Informing 23
Never Say No To An Opportunity To Showcase 24
How Do We Locate Oil? Seismic Imaging Process 25
Seismic Project 2012 26
Long Beach and Signal Hill Survey Long Beach / Signal Hill Geophysical Project Completed Work as of April 06, 2012 Total Receivers= 7698 Long Beach 3D (Phase 1) = 5283 Long Beach 3D (Phase 2) = 2415 Legend Blue Dots= Total Survey Points = 23145 (04/06/2012) 27
SHP Rigs and Oil Wells 28
Different Types of Oil Wells 29
Confidence in Everything SHP Massive reinvestment in infrastructure SHP core values -Number one priority is safety of community, employees and environment Social obligation -Immediate responsibility -Immediate responsiveness -Immediate community engagement 30
Follow Us On Social Media www.facebook.com/signalhillpetroleum Shpi.net 31
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