epe raa 139-155 exhibits 05-29-2018 - fs.ogm.utah.gov · title: microsoft powerpoint - epe raa...
TRANSCRIPT
FILEDMAY 2 I 2018
SECRETARY BOARD OFOIL, GAS & MINING
EP Energy E&P Company, L.P.
L001 Louisiana StreetHouston, Texas 77002
Proposed SpacingDuchesne County, Utah
State of UtahDivision of Oil, Gas & Mining
Board Hearing: June 27,2Ot8Delta, Utah
Docket No.2018-008Cause # 139-155
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2
Docket #2018‐008Cause #139‐155
Exhibit List
Land Exhibit L‐1 Regional Aerial Map Spacing OutlineLand Exhibit L‐2 Notice outline with 1/2 Mile Notice BufferLand Exhibit L‐3 Area Mineral OwnershipLand Exhibit L‐4 Exis ng Spacing OrdersVer cal/Direc onal & SLHZ WellsLand Exhibit L‐5 Cause No. 139‐155 Spacing Vertical/Directional WellsLand Exhibit L‐6 Cause No. 139‐155 SpacingShort‐Lateral Horizontal Wells (“SLHZ”)Land Exhibit L‐7 Cause No. 139‐155 SpacingLong‐Lateral Horizontal Wells (“LLHZ”)Land Exhibit L‐8 Visual of Unit Sizes and Associated Well Densi es (Vert/Dir 640‐acre Unit) ‐ 4 Well DensityLand Exhibit L‐9 Visual of Unit Sizes and Associated Well Densi es (Vert/Dir 640‐acre Unit) ‐ 8 Well DensityLand Exhibit L‐10 Visual of Unit Sizes and Associated Well Densi es (SLHZ 640‐acre Unit) ‐12 Well DensityLand Exhibit L‐11 Visual of Unit Sizes and Associated Well Densi es (LLHZ 1280‐acre Unit) ‐12 Well DensityLand Exhibit L‐12 Visual of Unit Sizes and Associated Well Densi es (Vert/Dir/SLZH 640‐acre Unit) ‐ Ex 1Land Exhibit L‐13 Visual of Unit Sizes and Associated Well Densi es (Vert/Dir/SLZH 640‐acre Unit) ‐ Ex 2Land Exhibit L‐14 Visual of Unit Sizes and Associated Well Densi es (640‐acre & 1280‐acre Overlapping Units)‐ Ex 1Land Exhibit L‐15 Visual of Unit Sizes and Associated Well Densi es (640‐acre & 1280‐acre Overlapping Units)‐ Ex 2
Geo Exhibit G‐1 Type LogGeo Exhibit G‐2 Regional Base MapGeo Exhibit G‐3 Geologic Cross Section A‐A’Geo Exhibit G‐4 Well Orientation and Induced Fracture Map
Eng Exhibit E‐1 Cum Oil Bubble MapEng Exhibit E‐2 EUR Oil Bubble MapEng Exhibit E‐3 Zero Time Production Plot, VerticalEng Exhibit E‐4 Zero Time Production Plot, LLHW 1280 Acre DSUEng Exhibit E‐5 Development Economics, Vertical & Horizontal WellsEng Exhibit E‐6 Recovery Factor_STOOIP ‐ 8 Well Vertical & Horizontal DevelopmentEng Exhibit E‐7 Horizontal Wellbore Diagram
Resume Exhibit R‐1 Daniel E. Brooks, LandmanResume Exhibit R‐2 Sara M. Fuller, GeologistResume Exhibit R‐3 Steven A. Biancardi, Reservoir Engineer Advisor
General Exhibit
Engineering Exhibit
Land, Geology, & Engineering ExhibitsTable of Contents
EPE, C4‐ B4 ‐ B5Land Exhibit
Geologic Exhibit
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Exhibit LDocket #2018‐008Cause #139‐155
Land Exhibits
State of UtahDivision of Oil, Gas & Mining
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Exhibit L‐1Docket #2018‐008Cause #139‐155
Regional Aerial Map Spacing Outline
Close Proximity to Duchesne, UT (North & East)
~ 24 miles from Roosevelt, UT via US‐191/US‐40 E
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Exhibit L‐2Docket #2018‐008Cause #139‐155
Notice outline with 1/2 Mile Notice Buffer
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Exhibit L‐3Docket #2018‐008Cause #139‐155
Area Mineral Ownership
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Exhibit L‐4Docket #2018‐008Cause #139‐155 Existing Spacing Orders
Vertical/Directional & SLHZ Wells
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Exhibit L‐5Docket #2018‐008Cause #139‐155 Cause No. 139‐155 Spacing
Vertical/Directional Wells
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Exhibit L‐6Docket #2018‐008Cause #139‐155 Cause No. 139‐155 Spacing
Short‐Lateral Horizontal Wells (“SLHZ”)
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Exhibit L‐7Docket #2018‐008Cause #139‐155 Cause No. 139‐155 Spacing
Long‐Lateral Horizontal Wells (“LLHZ”)
11
Exhibit L‐8Docket #2018‐008Cause #139‐155 Visual of Unit Sizes and
Associated Well Densities
Per each 640‐acre Unit:4 vertical/directional wells“4 Well Density Lands”
(Order 139‐90)
Section 3
Vertical/Directional 640‐acre Unit
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Visual of Unit Sizes and Associated Well Densities
Per each 640‐acre Unit:8 vertical/directional wells“8 Well Density Lands”
(Order 139‐124)
Section 10
Vertical/Directional 640‐acre Unit
Exhibit L‐9Docket # 2018‐008Cause No. 139‐155
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Visual of Unit Sizes and Associated Well Densities
Per each 640‐acre Unit:12 Short‐Lateral Horizontal wells(wellbore up to 1 mile in length)
(Cause No. 139‐155)
Short‐Lateral Horizontal 640‐acre Unit
Exhibit L‐10Docket # 2018‐008Cause No. 139‐155
Section 10
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Visual of Unit Sizes and Associated Well Densities
Per each 1280‐acre Unit:12 Long‐Lateral Horizontal wells
(wellbore greater than 1 mile in length)(Cause No. 139‐155)
Section 9
Long‐Lateral Horizontal 1280‐acre Unit
Exhibit L‐11Docket # 2018‐008Cause No. 139‐155
Section 10
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Visual of Unit Sizes and Associated Well Densities
640‐acre Overlapping Units:Achieves equivalent of 12 Horizontal wells per unit
w/ 4 Vertical Wells(Order 139‐90 & Cause No. 139‐155)
Section 3
Vertical/Directional/SLHZ 640‐acre Unit Ex. 1
Exhibit L‐12Docket # 2018‐008Cause No. 139‐155
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Visual of Unit Sizes and Associated Well Densities
640‐acre Overlapping Units:Achieves equivalent of 12 Horizontal wells per unit
w/ 8 Vertical Wells(Order 139‐124 & Cause No. 139‐155)
Section 10
Vertical/Directional/SLHZ 640‐acre Unit Ex. 2
Exhibit L‐13Docket # 2018‐008Cause No. 139‐155
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Visual of Unit Sizes and Associated Well Densities
640‐acre and 1280‐acre Overlapping Units:Achieves equivalent of 12 Horizontal wells per unit
(Cause No. 139‐155)
Section 9
640‐acre Unit and 1280‐acre Unit Combination Ex. 1
Exhibit L‐14Docket # 2018‐008Cause No. 139‐155
Section 10
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Visual of Unit Sizes and Associated Well Densities
640‐acre and 1280‐acre Overlapping Units:Achieves equivalent of 12 Horizontal wells per unit
w/ Vertical Wells (Order 139‐90)
Section 26
640‐acre Unit and 1280‐acre Unit Combination Ex. 2
Exhibit L‐15Docket # 2018‐008Cause No. 139‐155
Section 25
330’ Setback – uncompleted wellbore
330’ Setback – uncompleted wellbore
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Exhibit GDocket #2018‐008Cause #139‐155
Geology Exhibits
State of UtahDivision of Oil, Gas & Mining
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Exhibit G‐1Docket #2018‐008Cause #139‐155 Type Log
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Exhibit G‐2Docket #2018‐008Cause #139‐155 Regional Base Map
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Exhibit G‐3Docket #2018‐008Cause #139‐155 Geologic Cross Section A‐A’
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Exhibit G‐4Docket #2018‐008Cause #139‐155
Well Orientation and Induced Fractures
Rose Plot ‐Induced Fracture Orientation
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Exhibit EDocket #2018‐008Cause #139‐155
Engineering Exhibits
State of UtahDivision of Oil, Gas & Mining
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Cum Oil Prod Map
Exhibit E‐1Docket #2018‐008Cause #139‐155
Vertical Cum Oil Prod Bubble
SLHW Cum Oil Prod Bubble
LLHW Pre 3Q16 Cum Oil Prod Bubble
LLHW Post 3Q16 Cum Oil Prod Bubble
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EUR Oil Map
Exhibit E‐2Docket #2018‐008Cause #139‐155
Vertical EUR Oil Bubble
SLHW EUR Oil Bubble
LLHW Pre 3Q16 EUR Oil Bubble
LLHW Post 3Q16 EUR Oil Bubble
EURs of LLHW completed post 3Q16 ~ 640 MBOEURs of LLHW completed pre 3Q16 ~ 480 MBO
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Zero TimeVertical Type Well C4
Exhibit E‐3Docket #2018‐008Cause #139‐155
Zero Time of vertical type well, Wasatch CompletionNote Lower Green River Recompletion typically follows ~2 years after initial completion
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Zero Time Central Basin LLHW 1280 Horizontals
Exhibit E‐4Docket #2018‐008Cause #139‐155
Zero Time for LLHW derived from public data in wells drilled in 3S‐3W and 3S‐2W
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Vertical Typewell Economics
D&C Capital $3,872 MFuture Capital, 1 Recom $400 M
Reserves 315 MBO 830 MMCF
BTAX RORBTAX NPV10%BTAX ROI (PV10%)Payout (yrs)
35%$2,359 M
1.573.5
NRI: 84%Pricing: Strip Deck less deducts and differentials
LLHW 1280 Acre Typewell Economics
D&C Capital $10,260 M
Reserves 640 MBO 1360 MMCF
BTAX RORBTAX NPV10%BTAX ROI (PV10%)Payout (yrs)
58%$6,269 M
1.621.5
NRI: 84%
Pricing: Strip Deck less deducts and differentials5 Yr STRIP, 05/08/2018:
Oil: $59.35 ‐ $51.61 , Gas: $2.87 ‐ $2.88
Development EconomicsVertical Type Well C4 Horizontal 1280 Ac Type Well
Exhibit E‐5Docket #2018‐008Cause #139‐155
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Recovery Factor; Vertical & Horizontal Development
Section 20‐3S‐4W; 8 Existing Vertical WellsSTOOIP – Recovery Factor
ReservoirArea 640 acresHeight, Net Pay 384 ftPorosity 0.06Sw 0.36Bo 1.4 RB/STBSTOOIP 50,710 MBO
Vertical EUR8 well Vertical EUR Forecast 2,328 MBOVertical Recovery Factor 4.6%
Horizontal EUR12 Horizontals; 640 Acre Recovery; 50% of LLHW*, 320 MBO per wellEUR 12 Horizontals 3,840 MBO
Unit Recovery FactorVertical + Horizontal EUR 6,168 MBOUnit Recovery Factor 12.2%
*Note:50% of LLHW 1280, without interior 640 acre DSU setbacksPetro‐physical analysis from Fairclough 4‐20C4
TGR3
Wasatch
Mahogany Bench
Upper Green River
Exhibit E‐6Docket #2018‐008Cause #139‐155
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Horizontal Wellbore Construction
Exhibit E‐7Docket #2018‐008Cause #139‐155
Wellbore Construction
>> 7" Intermediate casing shoe set at the EOC>> Cemented 4‐1/2" Liner with ~850' of overlap within 7“
Intermediate casing>> Toe Sleeve installed at legal location from setback>> First Producing interval (heel perf) shot at legal location
from setback>> Well completed with Proppant Frac's pumping ~2,000 lb/ft
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Exhibit RDocket #2018‐008Cause #139‐155
General Exhibits
State of UtahDivision of Oil, Gas & Mining
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Exhibit R‐1Docket #2018‐008Cause #139‐155
Daniel E. Brooks, Landman
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Exhibit R‐2Docket #2018‐008Cause #139‐155
Sara M. Fuller, Geologist
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Exhibit R‐3Docket #2018‐008Cause #139‐155 Steven A. Biancardi,
Reservoir Engineer Advisor
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Exhibit R‐3’Docket #2018‐008Cause #139‐155 Steven A. Biancardi,
Reservoir Engineer Advisor