Elm Coulee Oil Field Richland County, Montana. Bakken Oil Well FRAC TREATMENT

Transcription

1 Elm Coulee Oil Field Richland County, Montana Bakken Oil Well FRAC TREATMENT

2 LOCATION MAP ELM COULEE FIELD RICHLAND COUNTY, MONTANA SASKATCHEWAN MANITOBA WILLISTON BASIN Poplar Dome Nesson Ant Brockton-Froid FZ MONTANA WYOMING Elm Coulee Cedar Cr Ant Little Knife Ant. Billings Ant NORTH DAKOTA SOUTH DAKOTA Modified after Heck, R. LeFever, Fischer, and J. LeFever

3 STRATIGRAPHIC COLUMN WILLISTON BASIN BAKKEN Modified after Heck, R. LeFever, Fischer, and J. LeFever

4 LOCATION MAP ORIGINAL TYPE LOG Bakken Formation SASKATCHEWAN MANITOBA WILLISTON BASIN Poplar Dome Nesson Ant TYPE LOG Brockton-Froid FZ Elm Coulee Cedar Cr Ant Little Knife Ant. Billings Ant NORTH DAKOTA MONTANA SOUTH DAKOTA WYOMING Modified after Heck, R. LeFever, Fischer, and J. LeFever

5 ORIGINAL TYPE LOG NORTH DAKOTA Gamma Ray (arg./organic content) Neutron (porosity) UPPER ORGANIC-RICH SHALE MEMBER MIDDLE MEMBER (Sandst, Sltst, Carb, var argill.) BAKKEN 110 FT. LOWER ORGANIC-RICH SHALE MEMBER (SANISH) Modified after J. LeFever

6 Bakken Formation Williston Basin SASKATCHEWAN MANITOBA Member Extents: UPPER SHALE MIDDLE MEMBER LOWER SHALE Nesson Ant Elm Coulee Bakken Type Log Antelope Cross-Section OVER-PRESSURED AREA NORTH DAKOTA MONTANA WYOMING WILLISTON BASIN SOUTH DAKOTA WEST Elm Coulee Area SCHEMATIC STRUCTURAL CROSS-SECTION Three Forks fm (Dev) Nesson Anticline Antelope Field Lodgepole fm (Miss) Three Forks fm (Dev) EAST Modified after Meissner (1978)

7 WILLISTON BASIN Bakken Productive Areas SASKATCHEWAN MANITOBA WILLISTON BASIN Poplar Dome Nesson Ant Brockton-Froid FZ Elm Coulee Cedar Cr Ant Billings Ant Little Knife Ant. NORTH DAKOTA MONTANA WYOMING PRINCIPAL BAKKEN PRODUCING AREAS SOUTH DAKOTA through 1986 Vertical - fractures through 1999 Horizontal & Vertical - fractures Current Development Horizontal - Matrix Porosity & fractures

8 100,000,000 WILLISTON BASIN MULTIPLE - - MULTIPLE FIELD - MULTIPLE - 67,552,614 bbl Cum Oil Bakken (& Sanish ) Production to Late ,000,000 VERTICAL DRILLING HORIZONTAL DRILLING 1,000,000 Production Rates (BOPM, MCFGPM) 100,000 10,000 1,000 Oil Production (bbl) Gas Production (mcf) Oil Production (bbl) Gas Production (mcf) Water Production (bbl) Historical Well Counts Cumulative Oil (bbl) Water Production (bbl) ELM COULEE DISCOVERY Time

9 TYPE LOGS LOCATION MAP WILLISTON BASIN SASKATCHEWAN MANITOBA WILLISTON BASIN Poplar Dome Nesson Ant Bakken Type Log (Modern) Brockton-Froid FZ Elm Coulee Cedar Cr Ant Little Knife Ant. Billings Ant NORTH DAKOTA MONTANA SOUTH DAKOTA WYOMING Modified after Heck, R. LeFever, Fischer, and J. LeFever

10 TYPE LOG (Modern) NESSON ANTICLINE Ranger Korom NWSE Sec 25-T155N- R95W GR/Caliper Density/Neutron Porosity LODGEPOLE FM Shale Arg. Dolomite Sandstone/Limestone Limestone, Sltst (var arg.) Upper Shale Mbr Middle Mbr BAKKEN 135 FT Shale Lower Shale Mbr SANISH THREE FORKS FM 0 (API Units) %

11 TYPE LOG ELM COULEE AREA Balcron Oil - #44-24 Vaira SESE Sec. 24, T.24N., R.54E. GR/Caliper Density/Neutron Porosity Lodgepole Fm. Upper Shale BAKKEN 45 FT Middle Member (Dolomite, var silty, arg) TARGET Three Forks Fm. 0 (API Units) % Modified after J. LeFever

12 MIDDLE BAKKEN RESERVOIR DATA Formation Type: Fractured Silty Dolomite Vertical Depth: 8,500 10,500 Vertical Thickness: 8-14 Porosity: 8%-10% average Permeability: 0.05 md average Oil Saturation: 75% average Spacing Unit Size: 160 to 1960 acres (Primarily acres) Stimulation: Gelled Water/Sand Frac Initial Production Rates: 200-1,900 BOPD, MCFGPD & 5-30 BWPD Oil Gravity: 42 o 60 o F Bottom Hole Temperature: 240 o F GOR (over life of well): 1200 MCFG/BBL (~1500 BTU gas) Oil-in-Place (BO/640 Acres): 5,000 MBO Primary Recovery Factor: 10% average (to 18%) Primary Oil Rec/well (decl curve): 500 MBO+ (State Hearing Data) (Headington Reserves Study indicates ~ 588 MBO MMCFG) CURRENT WELL COST Completed Well Cost: $2,500,000 to over $5,500,000

13 BAKKEN DOLOMITE CORE PHOTOGRAPH HORIZONTAL CORE HOC ALBIN FARMS 32X-32

14 BAKKEN DOLOMITE CORE PHOTOGRAPH ULTRAVIOLET LIGHT HORIZONTAL CORE HOC ALBIN FARMS 32X-32

15 HOC ALBIN FARMS 32X-32 MIDDLE BAKKEN DOLOMITE Horizontal Core, 12,172.1 ft Measured Depth (Approx 10,515 TVD) Porosity (blue): 10.30%, Permeability: 0.055md 160X PHOTOMICROGRAPH 0.1mm=0.001METER

16 ELM COULEE AREA PRE-2000 BAKKEN PENETRATIONS

17 GEOLOGIC SETTING ELM COULEE FIELD Bakken Structure, Depositional Limits, Productive Area NORTHEAST BASINAL ZERO EDGE LOWER BAKKEN SHALE ZERO EDGE MIDDLE BAKKEN MBR ZERO EDGE UPPER BAKKEN SHALE BAR/BANK COMPLEX

18 Bakken Stratigraphic Cross-Section Richland County SOUTH NORTH NW NW 3 22N 56E NESWSW 15 23N 55E SWSE 19 23N 57E SE SW 6 23N 57W NE SW 34 24N 57E SE SW 21 25N 57E Gamma Ray Sonic Dual Laterolog Gamma Ray Density/Neutron Dual Laterolog Gamma Ray Density/Neutron Dual Laterolog Gamma Ray Density/Neutron Dual Laterolog Gamma Ray Density/Neutron Dual Laterolog Gamma Ray Density/Neutron Dual Laterolog LODGEPOLE DATUM TOP BAKKEN FM LODGEPOLE UPPER BAKKEN SHALE > 6% POROSITY MAP INTERVAL < 6% POROSITY MIDDLE BAKKEN MEMBER (DOLOMITE) LOWER BAKKEN SHALE THREE FORKS UNCONFORMI TY THREE FORKS FM CROSS-SECTION - MIDDLE BAKKEN DOLOMITE MEMBER Richland County, Montana

19 ISOPACH MAP TOTAL MIDDLE BAKKEN MEMBER Isopach Interval 35

20 ISOPACH MAP PHI-H (porosity x feet > 6%) - ELM COULEE AREA TARGET ZONE

21 SUMMARY MAP ELM COULEE FIELD (SO FAR!) TARGET ZONE

22 WORKING HYPOTHESIS!!! General Framework Paleo-Depositional Environments Middle Member Bakken Formation SASKATCHEWAN Clastic Sediment Source (Fluvial) MANITOBA?? Marginal Marine Prograding Tidal Flat, Shore & Nearshore Complex (ss,ls/dol,sh) Elm Coulee Basinal Facies (sh,ls) Carbonate Bar Complex? LIMIT MIDDLE MEMBER NORTH DAKOTA MONTANA WYOMING WILLISTON BASIN SOUTH DAKOTA

23 WELL CONSTRUCTION DIAGRAM VERTICAL CASING EXIT

24 WELL CONSTRUCTION PLAN HORIZONTAL CASING EXIT Headington Oil Co, LP Evoniuk 44X-17 Dual Lateral Coplanar Location: SE SE Sec 17 T142N R99W Well Construction Diagram Footage: est. 500 FEL & 500 FSL Elev: est. Graded Pad 2640, KB 2661 Directions to Well: 15 miles N of Belf ield, ND on Highw ay 85 to Club Billings County, MT 85, then 3 mile W on CR, then 1 mile S, then 1 mile E. 16" Conductor set at 60' - 80'. Drill out w / 13.5" bit. Set 9-5/8" 36# K-55 surface casing at 2,200 Lead Cement: 504 Sacks SanJel - Control Set C plus 0.25% CFL-3, 1% OGC-60 and 1/4 #/sk Celloflake. Mixed at gps w tr, 2.85 cf/sk yield and 11.2 ppg. Tail Cement: 200 Sacks Class G plus 2% CaCl2 and 1/4 #/sk Celloflake. Mixed at 5.0 gps w tr, 1.15 cf/sk yield and 15.8 ppg. Volume calculated using 55% excess. 8-3/4" hole size. Drilled w ith invert mud (80% diesel & 20% SW) 7" Casing set at: 12,055 Lead Cement (top at 5,100 ) Sacks 65/35 Class G/Poz w / 5% KCL, 6% Bentonite, 0.4% Fluid Loss, 0.3% Retarder 0.2% Anti-foam and 1/4#/sk Cellophane Flakes. Yield: 1.80 cf/sk, Wt: 12.7 ppg. Tail Cement (top at 6,700 ) Sacks Class G w / 35% Silica Flour, 3% KCL, 0.2% Fluid Loss, 0.3% Dispertsant, 0.3% Retarder, 1/4#/sk Cellophane Flakes. Yield: 1.59 cf /sk, Wt: 15.6 ppg. Assume 9" hole plus 30% excess. Lat #1 Liner: 5" 15# L80 FJ 11,989 to 12,209 Blank Lateral #2 12,209 to 17,570 Pre-Drilled KOP1 Bakken Target Lateral #1 Est TD 16,791 10,492 Pay TVD: Est TD 17,670 KOP2 11,235 14deg/100 10,901 Pay 5,615 Pay 5,556 Lat #2 Liner: 5" 15# L80 FJ 11,258 to 16,691 Pre-Drilled Bakken Shale Bakken Dolomite Pay

25 WELL PATTERNS HOC, NANCE, SLAWSON 2 1 LYCO 11 EOG, HOC Acre Well Patterns (One Well per Section)

26 WELL PATTERNS 6 1 BOW-TIE HOC, CRI, BR CHEVRON EOG, HOC, BR STRAIGHT CRI, BR 1280-Acre Patterns Two Wells/1280 (Two Square Miles)

27 WELL PATTERNS 6 1 HERRING-BONE HOC TRIPLE LATERALS HOC, SLAWSON, ET AL SINGLE, DUAL, LONG LATERALs HOC, LYCO, ET AL Other 1280-acre Spacing Units Well Designs

28 ALBIN FARMS 31X-31 Southeast Lateral TVD Gamma Ray Rate of Penetration Total Mud Gas TVD Lodgepole fm False Bakken Lower Lodgepole Ls Upper Bakken Shale Middle Bakken Dolomite TARGET ZONE Gamma Ray ROP 0 GR - API Units ft/hr ROP Total Gas Units Mud gas response versus rate of penetration and TVD gamma ray response The bottom hole assembly was sliding through the entire graphed interval; thus, no error introduced by intermittent rotating. Mud weight appears to have been held relatively constant. A small amount of trip gas has been edited out of the total gas curve below below 10,443 TVD.

29 WELL OVERVIEW PLOT Headington Oil, LP Albin Farms 34X-32 SwSe 32-T24N-R57W Richland Co. MT Northwest Lateral MWD TVD TG ROP X 200 GR X 10 TVD False Bakken Bakken Shale --Casing WT 9.6+ WT TG TG Pl ugged exhaust l ine CORE #1 WT 9.8 WT 9.8 BAKKEN SHALE TIGHT DOLOMITE TG WT 9.8 Removed Pason Gas TG WT WT 10.0 MIDDLE BAKKEN POROSITY TARGET WT GR X 10, TG, ROP X200, PG MEASURED DEPTH

30 PRIMARY KEYS TO SUCCESS OF THE MIDDLE BAKKEN PLAY HORIZONTAL DRILLING & COMPLETION OF THE WELL WITH FRACTURE STIMULATION WELLS CONTAIN 4,000 TO 23,000 OF LATERAL PER WELL TYPICAL HORIZONTAL FRACTURE STIMULATION ($350,000 to $650,000) PER LATERAL, in open hole or uncemented pre-perfed liner hole: Gelled water-sand frac in several stages Sand concentration from 1 to 4+ pounds of sand per gallon (20-40 mesh sand, to ~100#/ft of hole) w/ additives, surfactants Pumped at a rate of BPM, (In 5,000 lateral, Total of ~5,000 bbls gelled water and 400,000# sand)

31 ELM COULEE SUMMARY PRODUCTION DEFINED TO DATE IN < 6 YEARS SINCE DISCOVERY (thru Mar/06), CUMULATIVE OIL PRODUCTION ~ 32 MILLION BBLS AVERAGE MONTHLY OIL PRODUCTION RATE (Jan/06) ~1.6 MILLION BBLS (MAR/06) FROM ~350 WELLS FIELD DAILY PRODUCTION RATE ~53,000 BBLS/DAY (Per/Well ~ 152 BOPD) CURRENTLY ~20 RIGS DRILLING CONTINUOUSLY COVERS APPROXIMATELY 530 SQUARE MILES TO DATE ULTIMATE RECOVERY > 250 MILLION BARRELS OF OIL (at 500,000± BO/Sq Mi) + Est > 300 BCFG (Est ave GOR 1,200 over life) WHY DOES IT WORK SO WELL? ELM COULEE BAKKEN CONTAINS WELL-DEVELOPED, WIDESPREAD MATRIX POROSITY AND PERMEABILITY WITH COINCIDENTAL FRACTURE OVERPRINT HORIZONTAL DRILLING VERY EFFECTIVE IN IMPROVING DELIVERABILITY BY ACCESSING MORE RESERVOIR RESERVOIR RESPONDS EXTREMELY WELL TO LARGE GELLED WATER/SAND FRAC STIMULATIONS REGULATORY AGENCY OPENNESS TO LARGE SPACING UNITS HAS ALLOWED MORE EFFICIENT AND EFFECTIVE DEVELOPMENT