BENCHMARKING RESOURCE PLAYS Implications for Exploitation & Development. Mike Seifert, P. Geol. Canadian Discovery Ltd.

Transcription

1 BENCHMARKING RESOURCE PLAYS Implications for Exploitation & Development Mike Seifert, P. Geol. Canadian Discovery Ltd. February 15, 212

2 AGENDA Introduction What is a Resource Play Benchmarking Process Western Canada Overview Montney Slave Point Integrated Analysis: Carrot Creek and Rat Creek

3 WHAT IS A RESOURCE PLAY? A 'play' is a family of pools and/or prospects that share a common history of hydrocarbon generation, migration, reservoir development and trap configuration. A RESOURCE PLAY is a special category of play which implies the use, or potential use, of advanced drilling and/or completion technology to make it economic. Although specific wells may be exceptions, generally speaking a RESOURCE PLAY is deemed to be historically uneconomic on a regional basis without the use of advanced technology. Ed Fogg, Canadian Discovery Ltd.

4 RESOURCE PLAY DEFINITION Requires Extensive Stimulation to Produce Produces Little In-situ Water Does Not Exhibit an Obvious Seal or Trap Low Matrix Permeability (<.1 md) SPEE Monograph 3 Guidelines For The Practical Evaluation of Undeveloped Reserves in Resource Plays

5 WHY BENCHMARK? Internal Analysis Competitor Analysis Technologies and Methodologies Logistics Acquisition & Divestitures Financial Metrics

6 RESOURCE PLAYS IN WESTERN CANADA 25 Average Stages Completed / Year Bakken Cardium Horn River Montney

7 RESOURCE PLAYS IN WESTERN CANADA 25 Average Completed Length Bakken Cardium Horn River Montney

8 RESOURCE PLAYS IN WESTERN CANADA 35 Average Frac Spacing Bakken Cardium Horn River Montney

9 RESOURCE PLAYS IN WESTERN CANADA 25 Average Proppant / Stage (t) Bakken Cardium Horn River Montney

10 RESOURCE PLAYS IN WESTERN CANADA Average IP (BOE/D) & Completion Cost ($K/Stage) 21 / 211 Wells IP BOE/d (6:1) Completion Cost ($K/Stage) $11 $114 $1,553 $337 Bakken Cardium Horn River Montney $1,8 $1,6 $1,4 $1,2 $1, $8 $6 $4 $2 $

11 Number of Wells by Resource Play Group 6, Horn River Gas Number of Wells 5, 4, 3, Montney/Doig Gas Montney/Doig Oil Deep Basin Gas Slave Point/Swan Hills Oil Glauconitic Hoadley Gas Cardium Oil Viking Oil Shaunavon Oil Bakken/Torquay Oil Spearfish/Amaranth Oil Emerging Oil Emerging Gas 3,86 5,41 2, 1,922 1,753 1, Year

12 Completions Investment ($M) by Resource Play Group Completion Cost (million $) 8, 7, 6, 5, 4, 3, 2, Horn River Gas Montney/Doig Gas Montney/Doig Oil Deep Basin Gas Slave Point/Swan Hills Oil Glauconitic Hoadley Gas Cardium Oil Viking Oil Shaunavon Oil Bakken/Torquay Oil Spearfish/Amaranth Oil Emerging Oil Emerging Gas $2.5 billion $2. billion $5.5 billion $7.9 billion 1, Year

13 RESOURCE PLAYS IN WESTERN CANADA Increasing Stages Increasing Well Length Decreasing Frac Spacing Proppant Bakken Decreasing Montney Increasing

14 NORTHERN MONTNEY Source: Canadian Discover Ltd., EDGE Software

15 NORTHERN MONTNEY Stages Completed 1/6/28 18/12/28 6/7/29 22/1/21 1/8/21 26/2/211 14/9/211 1/4/212 PROGRESS BONAVISTA CANBRIAN TALISMAN

16 NORTHERN MONTNEY 25 Completed Length (m) /6/28 18/12/28 6/7/29 22/1/21 1/8/21 26/2/211 14/9/211 1/4/212 PROGRESS BONAVISTA CANBRIAN TALISMAN

17 NORTHERN MONTNEY 12 Completion Cost / Stage ($K) /6/28 18/12/28 6/7/29 22/1/21 1/8/21 26/2/211 14/9/211 Bonavista Canbriam Progress Talisman

18 NORTHERN MONTNEY 12 IP Gas (mcf/d) /6/28 18/12/28 6/7/29 22/1/21 1/8/21 26/2/211 14/9/211 1/4/212 PROGRESS BONAVISTA CANBRIAN TALISMAN

19 NORTHERN MONTNEY 12 6 MO. Cal Gas Rate / Stage (mcf/d) /9/2818/12/2828/3/296/7/2914/1/2922/1/212/5/211/8/2118/11/2126/2/2116/6/211 PROGRESS BONAVISTA CANBRIAN TALISMAN

20 NORTHERN MONTNEY IP GAS (mcf/d) 6 Mo Cal Gas Rate (mcf/d) Average Proppant / Stage (t)

21 NORTHERN MONTNEY Total Fluid Pumped (m3) Average Proppant / Stage (t)

22 NORTHERN MONTNEY No Yes Use of Cluster Fracs

23 NORTHERN MONTNEY SUMMARY TALISMAN VS PROGRESS Longer Well Lengths More Stages / Well Greater Cum Production

24 Source: Canadian Discovery Ltd. SLAVE POINT

25 SLAVE POINT Stages Completed /1/26 22/2/28 6/7/29 18/11/21 1/4/212 EVI OTTER JUDY CR. ETHEL SWAN HILLS SWAN HILLS SOUTH

26 SLAVE POINT Completed Length (m) /7/29 22/1/21 1/8/21 26/2/211 14/9/211 1/4/212 EVI JUDY CR. SWAN HILLS OTTER ETHEL SWAN HILLS SOUTH

27 6 SLAVE POINT Completion Cost / Stage ($K) /1/26 22/2/28 6/7/29 18/11/21 1/4/212 EVI OTTER JUDY CR. ETHEL SWAN HILLS SWAN HILLS SOUTH

28 6 SLAVE POINT IP Oil (bop/d) /7/29 22/1/21 1/8/21 26/2/211 14/9/211 EVI OTTER JUDY CR. ETHEL SWAN HILLS SWAN HILLS SOUTH

29 25 SLAVE POINT OTTER IP (bopd) EVI IP (bopd) OTTER 6 Mo Rate (bopd) EVI 6 Mo Rate (bopd) Average Proppant / Stage

30 SLAVE POINT 25 Slave Point Oil Rate by Field OTTER EVI JUDY CR ETHEL SWAN HILLS SWAN HILLS S. IP OIL (bopd) 6 Mo Rate (bopd) 12 mo Rate (bopd)

31 SLAVE POINT Slave Point Oil Cums by Field OTTER EVI JUDY CR ETHEL SWAN HILLS SWAN HILLS S. 6 Mo. CUM OIL (mbo) 12 Mo. CUM OIL (mbo) 18 Mo. CUM OIL (mbo)

32 SLAVE POINT SUMMARY EVI JUDY CREEK Proppant No Proppant ~$125/stage ~$15/stage 12 stages 15 stages 4 5 m 1, m GEOLOGY MATTERS

33 CARDIUM Rat Creek / Carrot Cr Source: CDL Cardium Overview Study, 21

34 CARDIUM Rat Creek / Carrot Creek Detail: Minimum Principal Stress, Pembina Field T52 T46 R13 R7W5M Source: Stress Analysis Study, RPCL & BJ, 25 and the Well Completions & Frac Database

35 CARDIUM Rat Creek / Carrot Creek Carrot Creek vs. Rat Creek 25 2 ATTEMPTED STAGES 15 1 Carrot Creek Rat Creek ACTUAL STAGES

36 CARDIUM Rat Creek / Carrot Creek Well Count vs. Completion Problem Time Number of Wells Carrot Creek Rat Creek <1% 1 3% 3 5% >5% Estimated Completion Problem Time (%)

37 CARDIUM Rat Creek / Carrot Creek Initial Production vs. Base Fluid and Energizer CARROT CREEK N2 AVERAGE IP (BOPD) CARROT CREEK UNENERGIZED RAT CREEK N2 5 RAT CREEK UNENERGIZED Oil Slickwater Water BASE FLUID

38 Cardium Horizontal 3-Month Initial Production Rate Map Base map generated with ArcMap

39 Carrot Creek vs. Rat Creek Hz Wells - type Prod decline curves Data Source IHS Energy

40 Average IP Rate by Wellbore Orientation 46 - Number of Wells Data Source IHS Energy

41 CARDIUM Rat Creek / Carrot Creek Rat Creek Higher Stress Operational Failures Base Fluids & Energizers CDD Article Stressed Out in the Cardium

42 ACKNOWLEDGMENTS Matt Baird Razan Das, E.I.T. Meridee Fockler, P.Geol. Ally Masoud Daniel LaPlante Heather McCrank, MBA, CMA Aliyyah Mohamed, B.A. Kevin Rakhit, B. Sc. Neil Watson, P.Geol. Jean Beriault, P.Eng. Andrea Nawolsky, C.E.T. John Siferd, R.E.T. Peter Singbeil, P. Eng. Don Waters, P.Eng.