benchmarking resource plays: implications for exploitation and
TRANSCRIPT
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Benchmarking Resource Plays: Implications for Exploitation and
Development
Mike Seifert, P. Geol.
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AGENDA
Introduction What is a Resource Play Benchmarking Process
Western Canada Overview Montney Slave Point Integrated Analysis: Carrot Cr and Rat Creek
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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.
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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”
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WHY BENCHMARK?
Internal Analysis Competitor Analysis Technologies and Methodologies Logistics Acquisition & Divestitures Financial Metrics
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RESOURCE PLAYS IN WESTERN CANADA
0
5
10
15
20
25
Bakken Cardium Horn River Montney
Average Stages Completed / Year
200620072008200920102011
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RESOURCE PLAYS IN WESTERN CANADA
0
500
1000
1500
2000
2500
Bakken Cardium Horn River Montney
Average Completed Length
200620072008200920102011
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0
50
100
150
200
250
300
350
Bakken Cardium Horn River Montney
Average Frac Spacing
200620072008200920102011
RESOURCE PLAYS IN WESTERN CANADA
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RESOURCE PLAYS IN WESTERN CANADA
0
50
100
150
200
250
Bakken Cardium Horn River Montney
Average Proppant / Stage (t)
200620072008200920102011
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$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 ($K/Stage)2010 / 2011 Wells
RESOURCE PLAYS IN WESTERN CANADA
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Number of Wells by Resource Play Group
0
1,000
2,000
3,000
4,000
5,000
6,000
2008 2009 2010 2011
Num
ber o
f Wells
Year
Horn River GasMontney/Doig GasMontney/Doig OilDeep Basin GasSlave Point/Swan Hills OilGlauconitic Hoadley GasCardium OilViking OilShaunavon OilBakken/Torquay OilSpearfish/Amaranth OilEmerging OilEmerging Gas
3,860
5,041
1,7531,922
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Completions Investment ($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
$2.0 billion
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RESOURCE PLAYS IN WESTERN CANADA
Increasing Stages Increasing Well Length Decreasing Frac Spacing ProppantBakken DecreasingMontney Increasing
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NORTHERN MONTNEY
Source: Canadian Discovery Ltd. EDGE
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0
2
4
6
8
10
12
14
16
01/06/2008 18/12/2008 06/07/2009 22/01/2010 10/08/2010 26/02/2011 14/09/2011 01/04/2012
Stages Completed
PROGRESS BONAVISTA CANBRIAM TALISMAN
NORTHERN MONTNEY
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0
500
1000
1500
2000
2500
01/06/2008 18/12/2008 06/07/2009 22/01/2010 10/08/2010 26/02/2011 14/09/2011 01/04/2012
Completed Length (m)
PROGRESS BONAVISTA CANBRIAM TALISMAN
NORTHERN MONTNEY
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0
200
400
600
800
1000
1200
01/06/2008 18/12/2008 06/07/2009 22/01/2010 10/08/2010 26/02/2011 14/09/2011
Completion Cost / Stage ($K)
BONAVISTA CANBRIAM PROGRESS TALISMAN
NORTHERN MONTNEY
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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
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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
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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
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05000
100001500020000250003000035000400004500050000
0 50 100 150 200 250 300 350Average Proppant / Stage (t)
Total Fluid Pumped (m3)
NORTHERN MONTNEY
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NoYes
NORTHERN MONTNEY
Use of Cluster Fracs
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TALISMAN VS PROGRESS
Longer Well LengthsMore Stages / WellGreater Cum Production
NORTHERN MONTNEY SUMMARY
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Source: Canadian Discovery Ltd.
SLAVE POINT
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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
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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
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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
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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
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0
50
100
150
200
250
0 10 20 30 40 50 60Average Proppant / Stage
OTTER IP (bopd)EVI IP (bopd)
SLAVE POINT
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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
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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
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SLAVE POINT SUMMARY
EVI JUDY CREEK
Proppant No Proppant~$125/stage ~$150/Stage12 Stages 15 Stages400 – 500 m 1,000 m
GEOLOGY MATTERS
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Source: CDL Cardium Resource Play Overview Study, 2010
CARDIUM: RAT CREEK / CARROT CREEK
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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
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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
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CARDIUM: RAT CREEK / CARROT CREEK
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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
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3‐Month Initial Production Rate Map
Base map generated with ArcMap ™
CARDIUM HORIZONTAL
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Hz Wells - type Prod decline curves
Data Source IHS Energy
CARROT CREEK VS. RAT CREEK
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Data Source IHS Energy
AVG IP RATE BY WELLBORE ORIENTATION
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CARDIUM: RAT CREEK / CARROT CREEK
Rat Creek Higher Stress Operational Failures Base Fluids & Energizers
CDD Article “Stressed Out in the Cardium”
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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.