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© 2015 Petroleum Services Association of Canada (PSAC) - Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
2015 Well Cost StudyUpcoming Summer Costs - Published April 30, 2015
SAMPLE
PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Table of Contents
page 1 Introduction
1 Objective
1 Well Information Provided
2 Methodology
3 Summer 2015 Costs
4 Well Summary Table
5 PSAC Area Map
6 Drilling Cost Directory
7 Completion Cost Directory
9 BC1 & BC2 British Columbia
64 AB1 Foothills
86 AB2 Foothills Front
124 AB3 Southeastern Alberta
151 AB4 East Central Alberta
176 AB5 Central Alberta
208 AB6 Northeastern Alberta
221 AB7 Northwestern Alberta
253 SK1 Central Saskatchewan
281 SK2 Southwestern Saskatchewan
306 SK3 Eastern Saskatchewan
325 MB Manitoba
Well cost data and consulting by N.L. Fisher Supervision & Engineering Ltd.
Schematics by Weatherford Completion Systems
SAMPLE
1PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
The semi-annual PSAC Well Cost Study has been produced by the Petroleum Services Association of Canada (PSAC) since
1981. N.L. Fisher Supervision & Engineering Ltd. is the official supplier of all well drilling and completion data estimates
for the Study. PSAC would also like to acknowledge Weatherford Completion Systems for providing the downhole
assembly schematics for each well in the Study.
Drilling and completion well costs are being provided in the 2015 Well Cost Study for a list of 51 wells. This selection of
wells is a reflection of current well types along with previously drilled wells which are left in the study for historical
tracking purposes. This accounts for recent operator interests in developmental and exploratory activity, as well as
horizontal, coil tubing, SAGD and natural gas from coal (NGC) drilling activity.
The wells listed in this study reflect wells drilled in western Canada. Each well has been sorted by PSAC area. A summary
table listing all of the “typical wells”, as well as their location, well status, well type and depth is contained on page 4. Some
of the wells are not included in this year’s study due to inactivity in the area. A PSAC area map is provided on page 5.
Objective
The Well Cost Study is a popular tool used by oil and gas company exploration, drilling and completions personnel for
multiple purposes, some of which include:
• Scoping out typical drilling cost estimates and drilling times in new areas
• Benchmarking and comparing budgeted and actual costs
• General planning or forecasting of activity levels
When used in conjunction with the PSAC Canadian Drilling Activity Forecast, the Well Cost Study can help petroleum
service companies determine potential market sizes for drilling and completion products and services, as well as pricing
and activity direction.
Well Information Provided
The following information is supplied for each typical well:
• Well description with drilling and completion assumptions
• Drill and complete AFE
• Detailed drilling estimate
• Detailed completion estimate
• Downhole assembly schematic
Introduction
SAMPLE
2PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Typical Well
Each typical well is named after a known field or major centre in the general vicinity. Well depths, pool names and
approximate locations are also supplied for terms of reference when proposing drilling and completion parameters.
Due to the multiplicity of variables associated with drilling and completion operations, the typical well cost is an
approximation of current prices, based on the experience of N.L. Fisher Supervision & Engineering.
Assumptions
• The estimates were constructed assuming summer drilling operations and includes pricing obtained from
discussions with various service providers.
• Camps were included in remote locations.
Detailed Cost Estimates
Detailed estimates were prepared based on current pricing in the industry and actual experience in the 51 locations.
Terminology has been adjusted in a few instances to more closely describe costs incurred. Discounts in areas of pad
drilling or large shallow gas drilling can vary and should be treated as such.
At the time of writing, prices of various services are fluctuating. Considering that charges vary from supplier to supplier,
the estimates in this document provide the most up-to-date estimate of prices.
AFE Cost Summary Sheet
Each “typical well” AFE Sheet is a summary of the detailed drilling and completion costs provided.
Data Qualifications
Many factors directly impact drilling and completion costs even within a field or typical area, for example, leases
impacted by weather conditions. Costing is therefore at best speculative and should not be taken to represent “actual”
well costs. However, major services such as drilling rigs often set prices for a four-to-five month period. This pricing has
been incorporated into the Study costs.
Factors that may influence well costs may include, but are not limited to:
• Type and size of company or operation
• Company policy
• Company drilling practices
• Economic environment
• Commodity prices
• Developmental or exploratory target
• Oil or gas play
Methodology
• Sweet or sour production
• Surface conditions
• Well location and nearby infrastructure
• Drilling program
• Mud program
• Evaluation program
• Completion methodology (i.e. dual zones)
SAMPLE
3PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Major goods and services influencing the general direction of drilling and completion costs are as follows:
• Construction
• Trucking/rig moving
• Drilling fluids
• Evaluation/logging
• Cement and cementing services
• Casing
• Drill bits
• Wellsite accommodations
• Rentals
• Fuel
• Land, engineering, supervision and administration
• Completion costs
Summer 2015 Costs
• Service rigs
• Road and site preparation
• Trucking
• Cased hole logging and perforating
• Tubing and attachments
• Stimulation
• Pumping equipment
• Wellheads
• Safety services
• Testing
• Rig rates
• Safety programs
For additional information or comments, please contact:
Peter Cameron, C.E.T.
NL Fisher Supervision & Engineering Ltd.
Tel: (403) 266-7478
Email: [email protected]
Website: www.nlfisher.com
For additional information or comments, please contact:
Mark Salkeld, President
Petroleum Services Association of Canada
Tel: (403) 781-7383
Email: [email protected]
Disclaimer:
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, the Petroleum Services Association ofCanada (PSAC), N.L. Fisher Supervision & Engineering Ltd. and Weatherford Completion Systems accept no liability for the contents of this Study.
SAMPLE
Tuktoyatuk
Whitehorse
Yellowknife
FortNelson
FortSt. John
Vancouver
Edmonton
Calgary
Lethbridge
Saskatoon
Lloydminster
Winnipeg Thunder Bay
Toronto
Ottawa
Montreal
Quebec Halifax
Fredericton
Charlottetown
St. John's
ReginaSwift
Current
FortMcMurray
RedDeer
Victoria
GrandePrairie
NT
YT
BC2
BC1BC3
AB6
AB4
AB5AB2
AB1
SK1 SK3 MB
AB7
ON QC
NL
NS
NB
PE
NU
AB3 SK2
5PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
PSAC Area Map
BC1 Southern British Columbia
BC2 Northern British Columbia
BC3 Coastal British Columbia
AB1 Foothills
AB2 Foothills Front
AB3 Southeastern Alberta
AB4 East Central Alberta
AB5 Central Alberta
AB6 Northeastern Alberta
AB7 Northwestern Alberta
SK1 Central Saskatchewan
SK2 Southwestern Saskatchewan
SK3 Eastern Saskatchewan
MB Manitoba
ON Ontario
QC Quebec
EC Eastern Canada NB New Brunswick
NS Nova Scotia
PE Prince Edward Island
NL Newfoundland & Labrador
NC Northern Canada YT Yukon
NT Northwest Territories
NU Nunavut
SAMPLE
6PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
AFE DRILLING COST ITEM DETAILED DRILLING ESTIMATE SHEET CATEGORY
Well License / OGC Applications License Fees Pre-Drill & PlanningSurface Lease & Survey Lease Acquisition Pre-Drill & Planning
Surveying Pre-Drill & PlanningPreparation & Roads Total Construction Cost - Lease Clean-Up ConstructionCleanup Lease Clean-up Construction
Lease Clean-up Service & SuppliesRig Move Rig Move Rig Contract
Rig Permit Rig Contract Rig ContractDemob / Interwell Move Rig ContractRig-in / Tear-out Labour Rig Contract
Daywork Daywork Rig ContractAdditional Labour Costs Rig ContractStandby Rig Contract
Directional Costs Directional Drilling Services Service & SuppliesBoiler Boiler Rig ContractBits Bits - Surface Hole Service & Supplies
Bits - Intermediate Hole Service & SuppliesBits - Main Hole Service & SuppliesBits - Openhole Service & Supplies
Fuel & Power Fuel Rig ContractFuel Storage Rig Contract
Water Water and Trucking Rig ContractMud & Chemicals Surface Mud and Chemicals Service & Supplies
Main Mud and Chemicals Service & SuppliesMud Logging Service & Supplies
Crew Travel Crew Transportation Rig ContractCamp & Subsistence Crew Subsistence Rig Contract
CSA Extra Crew Rig ContractCoring & Analysis Cores Cut Service & SuppliesDST & Analysis (1 DST) Drill Stem Tests Service & SuppliesLogging Electric Logging Service & SuppliesSurface Casing & access. Surface Casing Casing & Cementing
Attachments and Accessories Casing & CementingTongs Casing & Cementing
Cementing - Surface Cement and Service Casing & CementingIntermediate Casing & access. Intermediate Casing Casing & Cementing
Attachments and Accessories Casing & CementingTongs Casing & Cementing
Cementing - Intermediate Cement and Service Casing & CementingEquipment Rentals Wellsite Trailer(s) Rentals
Sump Pump(s) RentalsSurface Equipment RentalsSolids Control Equipment RentalsHigh Speed Mixer(s) RentalsTank Rental RentalsDownhole Tool Rentals Service & SuppliesGeological Rentals Supervision & Administration
Transportation Trucking and Hauling Service & SuppliesFluid Hauling Service & SuppliesVacuum Truck and Disposal Service & Supplies
Supervision & Consulting Drilling Supervisor Supervision & AdministrationWell Site Geologist Supervision & Administration
In-house Engineering (Drilling) Planning and Programs Pre-Drill & PlanningCommunications Supervision & Administration
Equipment Inspection Inspection and Repair Service & SuppliesWell Insurance Insurance Supervision & AdministrationOther Services (Safety) Safety Service & SuppliesEnvironmental Services Waste Management Service & SuppliesMisc. Costs Welding Service & Supplies
Contingency @ 5%Miscellaneous @ 2%
Overhead Overhead on Subtotal @ 3,2,1Abandonment Cost Abandonment Cement Casing & Cementing
Cement Plug Logging Casing & Cementing
Drilling Cost Directory
SAMPLE
7PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
DETAILED COMPLETION AFE COMPLETION COST ITEM DETAILED DRILLING ESTIMATE SHEET ESTIMATE SHEET
Prod. Csg. & Accessories Production Casing (Casing & Cementing)Attachments and Accessories (Casing & Cementing)Tongs (Casing & Cementing)
Cementing - Production Cement and Service (Casing & Cementing)Tubing & Accessories TubingWellhead Equipment WellheadRemedial Cementing Remedial CementingService Rig Service Rig
BoilerCSACrew Transportation
Logging (cement bond log) Cased Hole LogsSlickline/Wireline (Other) WirelinePerforating Perforating and LoggingStimulation (Frac or Acid) StimulationTesting / Pressure Surveys Production TestGas / Liquid Analysis Fluids AnalysisTransportation Hauling and TruckingEquipment Rentals Surface Equipment Rentals
Downhole Equipment RentalsDownhole Tools (intangibles) Packers, Plugs, RetainersCompletion Fluids Water and Trucking
Completion Fluids and ChemicalsSnubbing SnubbingNitrogen NitrogenInspection / Safety Inspection / SafetyWellsite Supervision Completions SupervisorIn-house Engineering (Completions)Other Services Vacuum Truck
EnvironmentalLease and Road Maintenance
Misc. Costs Contingency @ 5%Miscellaneous @ 2%
Overhead Overhead on Subtotal @ 3,2,1
Completion Cost Directory
SAMPLE
64PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Area AB1 Foothills
AB1A Burmis - Foothills - Alberta Twp 7 Rge 6 W5MAB1B Cutpick - Foothills - Alberta Twp 60 Rge 7 W6MAB1C Cutpick - Foothills - Alberta Twp 60 Rge 7 W6M
Geology
Production is predominantly gas (sour), with varying levels of gas liquids. The principal zones are the Rundle Group of the Mississippian and
Cretaceous Cardium and Viking sands.
Area Highlights
Area AB1 encompasses the eastern slopes and foothills of the Rocky Mountains in Alberta. Wells drilled here are typically vertical and
some of the deepest in western Canada. These wells are technically challenging, and pose both safety and environmental regulatory
compliance issues. Wellsites are often remote from towns and service and supply centres. The cumulative result is that on a dollar-per-
metre basis, this is the generally most expensive area to drill in western Canada.
FortNelson
FortSt. John
r
Edmonton
Calgary
Lethbridge
Saskatoon
Lloydminster
SwiftCurrent
FortMcMurray
RedDeer
GrandePrairie
AB6
AB4
AB5AB2
AB1
SK1
AB7
AB3 SK2
Edson
ProvostSAMPLE
65PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Oil / Gas Gas
Vertical / Horizontal / Directional D
Critical H2S (Y/N) Y
Target Formation Wabamun
Total Measured Depth (m) 4500
Total Vertical Depth (m) 4000
Oil and Gas Lease (Hectares) 1.6
Freehold or Crown Land (F/C) C
Drilling Fluid Type Invert
Drilling Fluid Hauled for Disposal Y
Drill out of Sump (Y/N) N
Land Spray While Drilling (Y/N) N
Stimulation Y
Estimated BHT ( Degrees C) 150
Estimated BHP (kPa) 35000
Wellhead Capacity (kPa) 35000
Total Days Rig-in to Tear-out 188
Rig Type/Size Triple
Rig Loads 50
Rig Move (days) 4
Rig Transport Distance (km) 150
Rig Crew (# men) 12
Extra Men 1
Rig Fuel (litres/day) 4000
Fuel Cost ($/l) $0.75
Camp Required (Y/N) Y
Camp (# of men) 40
Camp Loads 8
Camp Cost $7,000
Completion Assumptions
Service Rig Size Double
Single or Multi Zone Single
Sweet or Sour Sour
Remedial Cementing Req'd (Y/N) N
TCP / Underbalanced / Csg Guns TCP
Stimulation Required (Y/N) Y
Propped Frac or Acid Acid
Type of Frac N/A
Proppant Size and Tonnage N/A
Flow Test Required (Y/N) Y
Flow Test Duration (days) 8
Pressure Recorders Required Y
Surface Casing Set Depth (m) 600
Surface Casing Spec. 339.7 mm 90.78 kg/m J-55
Intermediate Casing Set Depth (m) 3340
Intermediate Casing Spec. 244.5 mm 79.6 kg/m L-80
Production Casing Set Depth (m) 4500
Production Casing Spec 177.8 mm 43.20 kg/m L-80
Production Casing Cementing Single
Liner Req'd (Y/N) N
Liner Set Depth (m) 0
Openhole Length (m) 0
Tubing Spec. 88.9 mm 13.85 kg/m, J-55 SML
Tubing Set Depth (m) 4300
Packer (Y/N) Y
Packer Set Depth (m) 4300
Packer Type N
Drilling Assumptions
Unit Unit Cost
Move in/Rig up (days) 8 $14,800
Rig - Drilling Days (days) 165 $18,500
Rig - Final Depth to RR (days) 15 $20,125
Rig - Standby Days (days) 0 $14,800
Rig - Total Contract Days (days) 188 $18,500
Horizontal/Dir Drilling Days (days) 100 $9,500
Drilling Rig Boiler Days (days) 0 $1,920
Lease Construction Days (days) 18 $10,000
Survey Days (days) 3 $4,000
Access Road length (km) 5 $5,000
Drill Stem Tests (number) 2 $10,000
Cores Cut (number) 1 $15,000
Service Rig Days (days) 10 6480
Service Rig Boiler Days (days) 0 1000
AB1A Burmis - FoothillsAlberta Twp 7 Rge 6 W5MWell Cost Estimate
SAMPLE
66PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Well License / Applications $500Surface Lease & Survey $14,600Preparation & Roads $343,000Cleanup $162,000
SUB - TOTAL $520,100
Rig Move $444,400Daywork $3,465,000Directional Costs $950,000Boiler $0Bits $130,000Fuel & Power $564,000Water $159,800Mud & Chemicals $346,875Crew Travel $65,800Camp & Subsistence $1,438,200
SUB - TOTAL $7,564,075
Coring & Analysis $15,000DST & Analysis $20,000Logging $33,150
SUB - TOTAL $68,150
Surface Casing & access. $129,300Cementing - Surface $18,000Intermediate Casing & access. $860,050Cementing - Intermediate $73,480
SUB - TOTAL $1,080,830
Equipment Rentals $1,952,310Transportation and Hauling $571,000Supervision & Consulting $432,000In-house Engineering (Drilling) $54,800Equipment Inspection $12,600Well Insurance $18,800Safety $169,200Environmental Services $15,000Misc. Costs $881,800Overhead $126,900SUB - TOTAL $4,234,410
Abandonment Cost $23,100
SUB - TOTAL $23,100
Total D & A Estimate $13,490,665
Total Drill and Case Est. $14,065,815
Prod. Csg. & Accessories $443,250Cementing - Production $112,500Tubing & Accessories $137,600Wellhead Equipment $30,000Remedial Cementing $0Service Rig $75,300Logging (cement bond log) $10,200Slickline/Wireline (Other) $20,400Perforating $25,500Stimulation (Frac or Acid) $68,000Testing / Pressure Surveys $34,000Gas / Liquid Analysis $2,000Transportation $27,000Equipment Rentals $18,700Downhole Tools (intangibles) $38,250Completion Fluids $34,600Snubbing $0Nitrogen $0Inspection / Safety $15,000Wellsite Supervision $17,400In-house Engineering (Completions) $0Other Services $17,300Misc. Costs $40,000Overhead $7,700
Total Casing and Completion Estimate $1,174,700
Total Drill, Case and Complete Estimate $14,684,765
Assumptions include but not limited to:
Oil / Gas Gas
Vertical / Horizontal / Directional D
Critical H2S (Y/N) Y
Target Formation Wabamun
Estimated BHT ( Degrees C) 150
Estimated BHP (kPa) 35000
Single or Multi Zone Single
Sweet or Sour Sour
Total Days Rig-in to Tear-out 188
Drill Stem Tests (number) 2
Cores Cut (number) 1
Surface Casing Set Depth (m) 600
Surface Casing Spec. 339.7 mm 90.78 kg/m J-55
Production Casing Set Depth (m) 4500
Production Casing Spec 177.8 mm 43.20 kg/m L-80
Stimulation Required (Y/N) Y
Propped Frac or Acid Acid
Type of Frac N/A
Proppant Size and Tonnage N/A
Flow Test Required (Y/N) Y
Tubing Set Depth (m) 4300
Tubing Spec. 88.9 mm 13.85 kg/m, J-55 SML
AB1A Burmis - Foothills DRILL AND COMPLETE AFEAlberta Twp 7 Rge 6 W5MWell Cost Estimate
D R I L L I N G C OM P L E T I O NACCT # ACCT #
SAMPLE
67PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
AB1A Burmis - FoothillsAlberta Twp 7 Rge 6 W5MWell Cost Estimate
19
20. Heater String
16. Crossover Sub
17. 88.9 mm Tubing
19. 88.9 mm Tubing as Required
18. Heater String Catcher
15. 60.3 mm Tubing as Required
14. 47.6 mm Landing Nipple
13. 60.3 mm Pup Joint
12. 68.27 mm Locator Seal Assembly
11. 127 mm Permanent Sealbore Packer
10. 68.27mm Sealbore Extension
09. 60.3 mm Sealbore Tail Pipe Adapter
08. 60.3 mm Pup Joint
07. 47.6 mm Landing Nipple
06. 60.3 mm Pup Joint
05. 47.6 mm Landing Nipple
04. 60.3 mm Perforated Pup Joint
03. 47.6 mm No-go Landing Nipple
02. 60.3 mm Wireline Re-entry Guide
01. Nisku/ Leduc Perforations
Proposed Well CompletionAB1-A Burmis - Foothills AB1-A
Wabamun 7-6-W5MWeatherford
Company Reference
Phone Location
Sales Rep
Drawn by Date
Prepared for
Prepared by
Service Centre
DepthThreadGradeWeightSizeTUBULAR
PremiumL-806.99 kg/m60.3mmTubing 2
PremiumL-8013.84 kg/m88.9mmTubing 1
4400mPremiumL-8026.78 kg/m127mmLiner 4500mPremiumL-8043.20kg/m177.8mmCasing 3
3340m8 rd L-8079.6kg/m244.5mmCasing 2
600m8 rd J-5590.78kg/m339.7mmCasing 1
ITEM DESCRIPTION
Casing is perforated and packer/ tail pipe assembly is set on wireline . Seal assembly is run on final completion string
NOTES
This document is confidential correspondence between Weatherford and the Customer named in this document. It may not be reproduced in any formnor its contents disclosed to anyone other than employees of Weatherford and/or the named Customer.
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SAMPLE
68PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Predrill and PlanningLease Acquisition 1.6 Hectares $2,600 Surface Lease Entry $2,600 $2,600License Fees 1 Each $500 Per Well Fee $500 $500Surveying 3 Days $4,000 Site and Plan $12,000 $12,000Planning and Programs 200 Hours $180 Engineering and Programming $36,000 $36,000
$51,100 $51,100ConstructionRoad 5 Kms $5,000 Engineering and Construction $25,000 $25,000Location 18 Days $10,000 Engineering and Construction $180,000 $180,000Lease Maintenance 180 Days $500 Labour and Equipment $90,000 $90,000Lease Cleanup 0 Days $10,000 Labour, Materials and Equipment $0 $0Bridges / Culverts / Cattle Guards 6 Each $5,000 Labour and Equipment $30,000 $30,000Standby Equipment 0 Days $550 Grader, Hoe, Cat $0 $0Supervision 18 Days $1,000 Daily Rate incl. Sub and Exp $18,000 $18,000Lease Reclamation 18 Days $8,000 Labour and Equipment $144,000 $144,000Lease Reclamation Supervision 18 Days $1,000 Daily Rate incl. Sub and Exp $18,000 $18,000
$505,000 $505,000Rig ContractRig Move 50 Loads $3,600 $300/hr and 8 hr/100km/load $180,000 $180,000Rig Permit 4 Days $500 As required by area $2,000 $2,000Demob / Inter-well Move 40 Loads $3,600 $300/hr and 8 hr/100km/load $144,000 $144,000Rig-in Set Up Labour 8 Each $14,800 Move in, set up $118,400 $118,400Daywork 180 Days $18,500 Rig rate from Spud to RR w/ drillpipe $3,330,000 $3,330,000Loader 180 Days $500 Rig loader $90,000 $90,000Additional Labour Costs 180 Days $250 Additional crew as required $45,000 $45,000Camp 188 Crew Days $7,000 Camp / hotel including meals etc. $1,316,000 $1,316,000CSA 188 Days $650 Crew Subsistence Allowance $122,200 $122,200Crew Transportation 188 Each $350 Crew Truck, Mileage, Bus or Aircraft $65,800 $65,800Boiler 0 Days $1,920 Basic rate fuel out $0 $0Fuel 188 Days $3,000 Fuel $564,000 $564,000Fuel Storage 0 Days $0 Additional fuel storage $0 $0Standby 0 Days $14,800 Testing, logging, waiting on orders $0 $0Water and Trucking 188 Days $850 Water access and supply $159,800 $159,800
$6,137,200 $6,137,200RentalsWellsite Trailer(s) 4 188 Days $185 Well site Unit rental $139,120 $139,120Sump Pump(s) 1 188 Days $125 Centrifugal pump rental $23,500 $23,500Surface Equipment 1 188 Days $1,800 Garbage bin, Pumps, Pason, Invert acc, etc $338,400 $338,400Solids Control Equipment 2 188 Days $1,375 Cenrtiguge(s), BOS tank etc $517,000 $517,000High Speed Mixer(s) 1 188 Days $675 High speed mixer, pill tank, lines $126,900 $126,900Tank Rental 1 188 Days $205 Floc, Flare, 400 bbl tank etc $38,540 $38,540Downhole Tool Rentals 1 188 Days $3,150 Perf Motors, subs, jars, stabilizers etc $592,200 $592,200Drill string 80 188 Days $10 HWDP, Small inch drillpipe, etc. $150,400 $150,400
$1,926,060 $1,926,060
AB1A Burmis - Foothills DETAILED DRILLING ESTIMATEAlberta Twp 7 Rge 6 W5MWell Cost Estimate
No. of Drilled and Drilled and Operations, Services or Equipment # Units Unit Type Cost Per Unit Comments and Detail Abandoned Cased
continued next page
SAMPLE
69PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Service and SuppliesBits - Surface Hole 2 Each $5,000 Bit(s) required to drill surface hole $10,000 $10,000Bits - Intermediate Hole 7 Each $10,000 Bit(s) required to drill intermediate hole $70,000 $70,000Bits - Main Hole 5 Each $10,000 Bit(s) required to drill main hole $50,000 $50,000Bits - Openhole 0 Each $10,000 N/A $0 $0Surface Mud and Chemicals 250 Cubic metre $50 Cost per cubic metre water out $12,500 $12,500Main Mud and Chemicals 500 Cubic metre $475 Cost per cubic metre Invert out $237,500 $237,500Mud Logging 125 Days $775 Daily rate - crew plus costs $96,875 $96,875Drill Stem Tests 2 Each $10,000 Unit, crew, analysis, samples $20,000 $20,000Cores Cut 1 Each $15,000 Equipment, crew, analysis $15,000 $15,000Electric Logging 3900 m MD $9 Cost per m logged all in $33,150 $33,150Environmental Services 0 5 Each $750 Spray field sampling, reporting, etc $0 $0Drilling Waste Management 1 10 Each $1,500 Cost per fluid samples and analysis $15,000 $15,000Safety 188 Days $900 Daily Rate Crew and Equipment $169,200 $169,200Directional Drilling Services 100 Days $9,500 Daily rate all in crews and tools $950,000 $950,000Trucking 188 Days $1,500 Equipment and tool trucking $282,000 $282,000Fluid and/or Cuttings Hauling 1 165 Days $1,600 Fluid hauling other than water $264,000 $264,000Fluid and/or Cuttings Disposal 1 500 Cubic metre $50 Drilling fluid hauled for disposal $25,000 $25,000Vacuum Truck (LSWD) 0 165 Days $1,400 Cost per day for Vac Truck $0 $0Welding 3 Each $2,500 Cost per well $7,500 $7,500Inspection and Repair 3 Each $4,200 Cost per well $12,600 $12,600
$2,270,325 $2,270,325Casing and CementingSurface Casing 600 Metres $205 339.7 mm 90.78 kg/m J-55 $123,000 $123,000Attachments and Accessories 60 Each $25 Scratchers, centralisers, float equip $1,500 $1,500Tongs 600 Metres $8 Crew and Equipment $4,800 $4,800Cement and Service 600 Metres $30 Pumping, tonnage, additives $18,000 $18,000
Intermediate Casing 3340 Metres $250 244.5 mm 79.6 kg/m L-80 $835,000 $835,000Attachments and Accessories 334 Each $25 Scratchers, centralisers, float equip $8,350 $8,350Tongs 3340 Metres $5 Crew and Equipment $16,700 $16,700Cement and Service 3340 Metres $22 Pumping, tonnage, additives $73,480 $73,480
Production Casing 4500 Metres $90 177.8 mm 43.20 kg/m L-80 $0 $405,000Attachments and Accessories 450 Each $25 Scratchers, centralisers, float equip $0 $11,250Tongs 4500 Metres $6 Crew and Equipment $0 $27,000Cement and Service 4500 Metres $25 Pumping, tonnage, additives $0 $112,500
$0 $0Liner 0 Metres $0 N/A $0 $0Attachments and Accessories 0 Each $0 Scratchers, centralisers, float equip $0 $0Tongs 0 Metres $0 Crew and Equipment $0 $0Cement and Service 0 Metres $0 Pumping, tonnage, additives $0 $0Abandonment Cement 2 Plugs $6,300 Pumping, tonnage, additives $12,600 $0Cement Plug Logging 2 Plugs $5,250 Run plug logs, all in $10,500 $0
$1,103,930 $1,636,580Supervision and AdministrationDrilling Supervisor 1 188 Days $1,500 Drilling consultant rate all in $282,000 $282,000Well Site Geologist 1 125 Days $1,200 Geological consultant rate all in $150,000 $150,000Geological Rentals 125 Days $210 Gas detector etc $26,250 $26,250Insurance 188 Each $100 Drilling insurance $18,800 $18,800Communications 188 Days $100 $18,800 $18,800
$495,850 $495,850
Subtotal $12,489,465 $13,022,115Contingency @ 5 % $624,500 $651,100Miscellaneous @ 2 % $249,800 $260,400Overhead on Subtotal @ 3,2,1 $126,900 $132,200
Total Cost Estimate $13,490,665 $14,065,815
AB1A Burmis - Foothills DETAILED DRILLING ESTIMATE (continued)
Alberta Twp 7 Rge 6 W5MWell Cost Estimate
No. of Drilled and Drilled and Operations, Services or Equipment # Units Unit Type Cost Per Unit Comments and Detail Abandoned Cased
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70PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
No. of Cost Drilled and Operations, Services or Equipment # Units Unit Type Per Unit Comments and Detail Completed
Completion and Testing
Wellhead 1 Each $30,000 Type and accessories $30,000
Tubing 4300 Each $32 88.9 mm 13.85 kg/m, J-55 SML $137,600
Packers, Plugs, Retainers 1 Each $38,250 Anchors, packers, profiles, nipples etc $38,250
Service Rig 10 Day $6,480 Daily rig rate all in $64,800
Boiler 0 Day $1,000 Basic day rate fuel in $0
CSA 10 Day $750 Subsistence and accommodation $7,500
Crew Transportation 10 Day $300 Mileage, bus or air $3,000
Hauling and Trucking 10 Day $2,700 Tubing and other equipment $27,000
Vacuum Truck 10 Day $1,080 Rig days plus prod test days $10,800
Water and Trucking 10 Day $900 Water access and supply $9,000
Completion Fluids and Chemicals 160 Cubic Metre $160 Reformate, KCl, MeOH $25,600
Surface Equipment Rentals 1 Each $10,200 Rotating heads, frac heads etc $10,200
Downhole Equipment Rentals 1 Each $8,500 mud motors, packers, frac strings $8,500
Cased Hole Logs 1 Each $10,200 CBL etc. $10,200
Perforating and Logging 1 Each $25,500 TCP/Csg guns $25,500
Wireline 4 Runs $5,100 Gauge ring, run and pull recorders $20,400
Remedial Cementing 0 Each $15,000 Includes perforating, D/H tools etc $0
Stimulation 1 Each $68,000 Acid $68,000
Completions Supervisor 12 Day $1,450 Daily rate all in $17,400
Inspection / Safety 10 Each $1,500 Environmental, operational, government $15,000
Environmental 2 Each $1,000 Technician $2,000
Lease and Road Maintenance 10 Day $450 Crew and Equipment $4,500
Production Test 8 Day $4,250 Includes equipment, crews and analysis $34,000
Fluids Analysis 4 Each $500 Oil, gas and water $2,000
Snubbing 0 Day $7,500 Unit and Crews $0
Nitrogen 0 Cubic Metre $3 $0
Subtotal Completion $571,250
Contingency @ 5 % $28,600
Miscellaneous @ 2 % $11,400
Overhead on Subtotal @ 3,2,1 $7,700
Total Completion Estimate $618,950
Total Drill, Case and Complete Estimate $14,684,765
AB1A Burmis - Foothills DETAILED COMPLETION ESTIMATEAlberta Twp 7 Rge 6 W5MWell Cost Estimate
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