benchmarking resource plays: implications for exploitation and
TRANSCRIPT
Benchmarking Resource Plays: Implications for Exploitation and
Development
Mike Seifert, P. Geol.
AGENDA
Introduction What is a Resource Play Benchmarking Process
Western Canada Overview Montney Slave Point Integrated Analysis: Carrot Cr and Rat Creek
WHAT IS A RESOURCE PLAY?
“A 'play' is a family of pools and/or prospects that share a common historyof hydrocarbon generation, migration, reservoir development and trapconfiguration.
A RESOURCE PLAY is a special category ofplay which implies the use, or potential use,of advanced drilling and/or completiontechnology to make it economic.
Although specific wells may be exceptions, generally speaking aRESOURCE PLAY is deemed to be historically uneconomic on a regionalbasis without the use of advanced technology.”
Ed Fogg, Canadian Discovery Ltd.
RESOURCE PLAY DEFINITION
Requires Extensive Stimulation to Produce Produces Little In-situ Water Does Not Exhibit an Obvious Seal or Trap Low Matrix Permeability (< 0.1 mD)
SPEE Monograph 3“Guidelines For The Practical Evaluation ofUndeveloped Reserves in Resource Plays”
WHY BENCHMARK?
Internal Analysis Competitor Analysis Technologies and Methodologies Logistics Acquisition & Divestitures Financial Metrics
RESOURCE PLAYS IN WESTERN CANADA
0
5
10
15
20
25
Bakken Cardium Horn River Montney
Average Stages Completed / Year
200620072008200920102011
RESOURCE PLAYS IN WESTERN CANADA
0
500
1000
1500
2000
2500
Bakken Cardium Horn River Montney
Average Completed Length
200620072008200920102011
0
50
100
150
200
250
300
350
Bakken Cardium Horn River Montney
Average Frac Spacing
200620072008200920102011
RESOURCE PLAYS IN WESTERN CANADA
RESOURCE PLAYS IN WESTERN CANADA
0
50
100
150
200
250
Bakken Cardium Horn River Montney
Average Proppant / Stage (t)
200620072008200920102011
$11 $114
$1,553
$337
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
0
200
400
600
800
1000
1200
Bakken Cardium Horn River Montney
IP BOE/d (6:1)
Completion Cost($K/Stage)
Average IP (BOE/D) & Completion Cost ($K/Stage)2010 / 2011 Wells
RESOURCE PLAYS IN WESTERN CANADA
Number of Wells by Resource Play Group
0
1,000
2,000
3,000
4,000
5,000
6,000
2008 2009 2010 2011
Num
ber o
f Wells
Year
Horn River GasMontney/Doig GasMontney/Doig OilDeep Basin GasSlave Point/Swan Hills OilGlauconitic Hoadley GasCardium OilViking OilShaunavon OilBakken/Torquay OilSpearfish/Amaranth OilEmerging OilEmerging Gas
3,860
5,041
1,7531,922
Completions Investment ($M) by Resource Play Group
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2008 2009 2010 2011
Completion Co
st (m
illion $)
Year
Horn River GasMontney/Doig GasMontney/Doig OilDeep Basin GasSlave Point/Swan Hills OilGlauconitic Hoadley GasCardium OilViking OilShaunavon OilBakken/Torquay OilSpearfish/Amaranth OilEmerging OilEmerging Gas
$5.5 billion
$7.9 billion
$2.5 billion
$2.0 billion
RESOURCE PLAYS IN WESTERN CANADA
Increasing Stages Increasing Well Length Decreasing Frac Spacing ProppantBakken DecreasingMontney Increasing
NORTHERN MONTNEY
Source: Canadian Discovery Ltd. EDGE
0
2
4
6
8
10
12
14
16
01/06/2008 18/12/2008 06/07/2009 22/01/2010 10/08/2010 26/02/2011 14/09/2011 01/04/2012
Stages Completed
PROGRESS BONAVISTA CANBRIAM TALISMAN
NORTHERN MONTNEY
0
500
1000
1500
2000
2500
01/06/2008 18/12/2008 06/07/2009 22/01/2010 10/08/2010 26/02/2011 14/09/2011 01/04/2012
Completed Length (m)
PROGRESS BONAVISTA CANBRIAM TALISMAN
NORTHERN MONTNEY
0
200
400
600
800
1000
1200
01/06/2008 18/12/2008 06/07/2009 22/01/2010 10/08/2010 26/02/2011 14/09/2011
Completion Cost / Stage ($K)
BONAVISTA CANBRIAM PROGRESS TALISMAN
NORTHERN MONTNEY
0
2000
4000
6000
8000
10000
12000
01/06/2008 18/12/2008 06/07/2009 22/01/2010 10/08/2010 26/02/2011 14/09/2011 01/04/2012
IP Gas (mcf/d)
PROGRESS BONAVISTA CANBRIAM TALISMAN
NORTHERN MONTNEY
0
200
400
600
800
1000
1200
09/09/200818/12/200828/03/200906/07/200914/10/200922/01/201002/05/201010/08/201018/11/201026/02/201106/06/2011
6 Mo. Cal Gas Rate / Stage (mcf/d)
PROGRESS BONAVISTA CANBRIAM TALISMAN
NORTHERN MONTNEY
0
2000
4000
6000
8000
10000
12000
0
2000
4000
6000
8000
10000
12000
0 50 100 150 200 250 300 350Average Proppant / Stage (t)
IP GAS (mcf/d) 6 Mo Cal Gas Rate (mcf/d)
NORTHERN MONTNEY
05000
100001500020000250003000035000400004500050000
0 50 100 150 200 250 300 350Average Proppant / Stage (t)
Total Fluid Pumped (m3)
NORTHERN MONTNEY
NoYes
NORTHERN MONTNEY
Use of Cluster Fracs
TALISMAN VS PROGRESS
Longer Well LengthsMore Stages / WellGreater Cum Production
NORTHERN MONTNEY SUMMARY
Source: Canadian Discovery Ltd.
SLAVE POINT
05
101520253035
10/10/2006 22/02/2008 06/07/2009 18/11/2010 01/04/2012
Stages Completed
EVI OTTERJUDY CR. ETHELSWAN HILLS SWAN HILLS SOUTH
SLAVE POINT
0
500
1000
1500
2000
06/07/2009 22/01/2010 10/08/2010 26/02/2011 14/09/2011 01/04/2012
Completed Length (m)
EVI OTTERJUDY CR. ETHELSWAN HILLS SWAN HILLS SOUTH
SLAVE POINT
0
100
200
300
400
500
600
10/10/2006 22/02/2008 06/07/2009 18/11/2010 01/04/2012
Completion Cost / Stage ($K)
EVI OTTERJUDY CR. ETHELSWAN HILLS SWAN HILLS SOUTH
SLAVE POINT
0
100
200
300
400
500
600
06/07/2009 22/01/2010 10/08/2010 26/02/2011 14/09/2011
IP Oil (bop/d)
EVI OTTERJUDY CR. ETHELSWAN HILLS SWAN HILLS SOUTH
SLAVE POINT
0
50
100
150
200
250
0 10 20 30 40 50 60Average Proppant / Stage
OTTER IP (bopd)EVI IP (bopd)
SLAVE POINT
0
50
100
150
200
250
OTTER EVI JUDYCR
ETHEL SWANHILLS
SWANHILLS S.
Slave Point Oil Rate by Field
IP OIL (bopd) 6 Mo Rate (bopd) 12 mo Rate (bopd)
SLAVE POINT
010203040506070
OTTER EVI JUDYCR
ETHEL SWANHILLS
SWANHILLS S.
Slave Point Oil Cums by Field
6 Mo. CUM OIL (mbo) 12 Mo. CUM OIL (mbo)18 Mo. CUM OIL (mbo)
SLAVE POINT
SLAVE POINT SUMMARY
EVI JUDY CREEK
Proppant No Proppant~$125/stage ~$150/Stage12 Stages 15 Stages400 – 500 m 1,000 m
GEOLOGY MATTERS
Source: CDL Cardium Resource Play Overview Study, 2010
CARDIUM: RAT CREEK / CARROT CREEK
Detail: Minimum Principal Stress Pembina Field
R7W5MR13
T46
T52
Source: Stress Analysis Study, RPCL & BJ, 2005 and the Well Completions & Frac Database
CARDIUM: RAT CREEK / CARROT CREEK
0
5
10
15
20
25
0 5 10 15 20 25
ATTEMPT
ED STA
GES
ACTUAL STAGES
Carrot Creek vs. Rat Creek
Carrot Creek
Rat Creek
CARDIUM: RAT CREEK / CARROT CREEK
CARDIUM: RAT CREEK / CARROT CREEK
0
50
100
150
200
250
Oil Slickwater Water
AVER
AGE IP (B
OPD
)
BASE FLUID
Initial Production vs. Base Fluid and Energizer
CARROT CREEK ‐ N2
CARROT CREEK ‐UNENERGIZED
RAT CREEK ‐ N2
RAT CREEK ‐UNENERGIZED
12
14
3
44
12
14
15
213
CARDIUM: RAT CREEK / CARROT CREEK
3‐Month Initial Production Rate Map
Base map generated with ArcMap ™
CARDIUM HORIZONTAL
Hz Wells - type Prod decline curves
Data Source IHS Energy
CARROT CREEK VS. RAT CREEK
Data Source IHS Energy
AVG IP RATE BY WELLBORE ORIENTATION
CARDIUM: RAT CREEK / CARROT CREEK
Rat Creek Higher Stress Operational Failures Base Fluids & Energizers
CDD Article “Stressed Out in the Cardium”
ACKNOWLEDGMENTSo Matt Bairdo Razan Das, E.I.T.o Meridee Fockler, P.Geol.o Daniel LaPlanteo Ally Masoudo Heather McCrank, MBA, CMAo Aliyyah Mohamed, B.A.o Kevin Rakhit, B. Sc.o Neil Watson, P.Geol.
o Jean Beriault, P.Eng.o Andrea Nawolsky, C.E.T.o Peter Singbeil, P. Eng.o John Siferd, R.E.T.o Don Waters, P.Eng.