pco16 day one steven hochanadel ep energy - lbcg · 3 ep energy altamont wolfcamp eagle ford at ep...
TRANSCRIPT
![Page 1: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/1.jpg)
AssessingTheCostVs.Effec2venessOfHotOilingAndHotWateringToQuan2fyROIAndJus2fyInvestmentInHeatTreatments
SteveHochanadelSeniorStaffProduc3onEngineerJune29,2016
![Page 2: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/2.jpg)
2
Agenda� Introduc3ontoEPEnergy� ChemicalTrea3ngandMethodsinEagleFord� Hot-Watering
! Examples! Economics
� Summary
![Page 3: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/3.jpg)
3
EPEnergy
ALTAMONT
WOLFCAMP
EAGLEFORD
AtEPEnergy,wehaveapassionforfindingandproducingtheoilandnatural
gasthatenrichespeople’slives
![Page 4: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/4.jpg)
4
EagleFord
Wolfcamp
![Page 5: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/5.jpg)
5
EagleFord:FranchiseOilProgram
! Onedrillingrigcurrentlyrunning! Increasedmodelingcapabili3es(landing
zonesandcomple3onop3miza3on)! Con3nuedwellcostreduc3onandtop
3erLOEperformance
! Reducetoonerigin1H’16! Focusonhighestqualityacreageand
leasecommitments! Maintainopera3onalefficiencies! Con3nuetostaggerlandingzoneson
adjacentwells! Con3nuetofocusonbaseop3miza3on
andcostreduc3ons(capitalandLOE)
1QHighlights
2016Outlook
![Page 6: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/6.jpg)
6
EPEAr3ficialLi\MixinEagleFord
75%
16%
6%3% GasLi\
RodPumpJetPumpFreeFlowing
579NetOperatedwells(asof3/31/16)
![Page 7: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/7.jpg)
7
WhatAreWeChemicallyTrea3ng
� Paraffin� Corrosion� Scale� Bacteria� Emulsions� H2S
![Page 8: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/8.jpg)
8
ChemicalTrea3ngMethods� Con3nuoustreatmentdownannulus� Batchortrucktreatment� Capillarystrings
! Internal,external� Sidestreamflushtreatmentsdownbackside� Hotoiling,i.e.,hotwatering� Downholechemicalscreen� Solventcircula3ontreatments� Applychemicalproductwithproppantduring
comple3on� Chemicalsoaksonbacksideandintubing
![Page 9: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/9.jpg)
9
CrudeOilVaria3onsWaxAppearanceTemperatures,oF
![Page 10: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/10.jpg)
10
Hot-WateringMethod� Purpose
! Primarilytreatparaffin! Secondarilypreventcorrosion
� Generalprocedureandrecipe! 35bblleasewaterheatedto210–230oF
� 25bbldowntubingorbackside� 10bblforsurfaceequipment
! Chemicalcomponents� Paraffindispersant,e.g.,PAO2020� Corrosioninhibitor,e.g.,CRW172� Biocide
� Overallcostof$500to$1,500pertreatment
![Page 11: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/11.jpg)
11
Example1–GasLi\Well
![Page 12: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/12.jpg)
12
Example2–GasLi\Well
![Page 13: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/13.jpg)
13
Example3–GasLi\Well
![Page 14: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/14.jpg)
14
Example4–GasLi\Well
![Page 15: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/15.jpg)
15
Example5–GasLi\Well
![Page 16: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/16.jpg)
16
RodPumpWellResultsBeforeimplemen3nghot-watering
A\erregularhot-watering
Savesmoneyonrig3me!
![Page 17: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/17.jpg)
17
EconomicAnalysisMethodologyProduc2onUpliYModeledproduc3onupli\flatforonemonthbeforegoingbacktooriginaltrendOilPrice$45/bblflatSensi2vi2es• Variedupli\with$1,500treatmentcost• Variedtreatmentcostwith15Bopdupli\EconomicDetermina2ons• NetPresentValue(NPV)at10%discountrate;a\ertaxcase• ReturnonInvestment(ROI)=(NPV+InvestmentCost)/(InvestmentCost)
![Page 18: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/18.jpg)
18
Upli\Sensi3vityEconomics
$0
$5
$10
$15
$20
$25
0
2
4
6
8
10
12
14
16
18
20
0 5 10 15 20 25 30 35 40 45
NPV
@10%
($M)
ROI
UpliY(Bopd)
ROIandNPVfor$1,500TreatmentCostUpli\Sensi3vity
ROI NPV@10%
![Page 19: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/19.jpg)
19
TreatmentCostSensi3vityEconomics
$0
$2
$4
$6
$8
$10
$12
$14
$16
0
5
10
15
20
25
30
35
40
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5
NPV
@10%
($M)
ROI
TreatmentCost($M)
ROIandNPVfor15BopdUpliYTreatmentCostSensi3vity
ROI NPV@10%
![Page 20: PCO16 Day One Steven Hochanadel EP Energy - LBCG · 3 EP Energy ALTAMONT WOLFCAMP EAGLE FORD At EP Energy, we have a passion for finding and producing the oil and natural gas that](https://reader031.vdocuments.us/reader031/viewer/2022022701/5bc0fd0609d3f2840b8bc9d0/html5/thumbnails/20.jpg)
20
Summary� Paraffinforma3oninEagleFordwellboreslendsitselftohot-wateringtreatments! Inexpensive! Poten3alforproduc3onincrease! Canreduceopera3ngexpensesandprolong
theneedforworkoverinterven3on! Favorableeconomics! Needtotreatatregularintervals