CoalBed Methane Fact and Future In Oklahoma

Transcription

1 OKLAHOMA CORPORATION COMMISSION Oil and Gas Conservation Division CoalBed Methane Fact and Future In Oklahoma November 24 Jamal Daneshfar, PE

2 Out Lines:. Fact and figures about Coal bed methane. Regulation for Unconventional Gas Wells. Activities on Conventional Gas Wells. Incentive Program, Senate Bill 535. Horizontal Completion in Counties. Question /Answer

3 Facts and Figures: Location:. North East Oklahoma Shelf. Arkoma Basin Geological Age:. Desmoinesian (Middle Pennsylvanian) Remaining Resources:. 8 Billions Ton

4 Area of Coverage. 8 square miles in 19 counties Production :. Total 28 Millions Short Ton (End of 21) Ash Percentage:. Minmum 4%, Hartshorne in Leflore. Maximum 15%, Hartshorne in Leflore

5 Depth of Completion. Minmum 175 ft, Hartshorne in Leflore. Maximum 3651 ft, Booch in Pitsburg SCF/Ton. Minimum 79, Hartshorne in Leflore. Maximum 547, Hartshorne in Leflore

6 Coal Bed Methane Resources

7 Location of Coal Bed Methane Resources

8 Area of Oklahoma Coal bed Activity ( Courtesy Oklahoma Geological Survey)

9 ( Courtesy Oklahoma Geological Survey)

10 ( Courtesy Oklahoma Geological Survey)

11 Regulation : The Coalbed Methane activities are regulated similarly to Minimum Unallocated Gas Well. Different aspect of activities reviewed as : Testing :. Form 116 to report shut in pressure to obtain Minimum allowable. Form 13 to adjust the allowable in case the WOR is over 3:1. Form 122 to report the flaring or venting of the gas Drilling:. Intent to Drill, From 1, Rule 165: Surface Casing, 5 ft below treatable water level, Rule 165:1-3-4

12 Geology/ Engineering: Reserve Calculation will be based on gas content of the rock and not on material balance or volumetric technique. Increase density will be reviewed based on reserve calculation or geological limitations. Commingling application, Form 123 required for production of more than one zone Completion Report, Form 12A, 12C required for any completion or recompletion

13 Incentive Program The Senate bill 535 is the only incentive program applicable to coal bed methane activity in Oklahoma The production from Coal bed methane will be exempted from gross production. It has three different options: Option One: Twenty Four Month Exemption, prior to July 1994 For any incremental production which results from a horizontally drilled well producing prior to July1, 1994 Option Two: Twenty Four Month Exemption, prior to July 1, 22 For any horizontally drilled well producing prior to July 1, 22, which production commenced after July 1, 1995

14 Option Three Forty-Eight month exemption, prior to July 1, 26 For any horizontally drilled well, which production commenced after July 1, 22

15 Completion Activity Comparison in Each Year Year 2 completion Type Year 21 Completion Type Deep Hole Staight Hole Horizontal Hole Deep Hole Staight Hole Horizontal Hole Year 22 Completion Type Year 23 Completion Type Deep Hole Staight Hole Horizontal Hole Deep Hole Staight Hole Horizontal Hole

16 Five Years Completion Activity in Oklahoma Year Deep Well Horizontal Hole Straight Hole Total

17 Five Years Completion Activity In Oklahoma Total Completions Number of wells Years

18 Five Years Horizontal Completion In Oklahoma Horizontal Hole Completion Number of Wells Years

19 Five Years Vertical Completion in Oklahoma Straight Hole Completion Number of Wells Years

20 Five Years Deep Well Activity in Oklahoma Deep Well Completion Number of Wells Years

21 Horizontal Completion in Counties Number of Horizontal Hole Year 2 Garvin Harper Haskell Latimer Leflore Lincoln Pitttsburg Pushnataha Stephens Texas Number of Wells

22 Horizontal Completion in Counties Number of Horizontal Hole Year 21 Beaver Beckham Caddo Coal Garvin Haskell Kingfisher Leflore Lincoln Noble Okmulgee Pittsburg Pottawatomi Stephens Texas Tulsa Number of Wells

23 Horizontal Completion in Counties Number of Horizontal Hole Year 22 Caddo Haskell Leflore Lincoln Logan Mcintosh Payne Pittsburg Seminole Stephens Texas Tulsa Washington Number of Wells

24 Horizontal Completion in Counties Number of Horizontal Hole Year 23 Beaver Caddo Ellis Harper Haskell Hughes Jackson Latimer Leflore Lincoln Logan McClain Oklahoma Payne Pittsburg Pottawato RogerMills Texas Number of Wells

25 Horizontal Completion in Counties Number of Horizontal Hole Year 24 Coal Ellis Haskell Hughes Jackson Latimer Leflore Lincoln Logan Mcintosh Noble Oklahoma Payne Pittsburg Pottawatomi Roger Mills Seminole Number of Wells

26 Location of Hartshorne Producer in Oklahoma Wagoner Cherokee Adair Okmulgee Muskogee Sequoyah McIntosh Haskell Pittsburg Latimer Le Flore Atoka Pushmataha Choctaw BASE MAP DATA IS COPYRIGHTED BY TOBIN INTERNATIONAL, LTD., ALL RIGHTS RESERVED.

27 Hartshorne Gas Production in Oklahoma Hartshorne Producer Number of Wells Haskell Hughes Latimer Leflore Mcintosh Pittsburg

28 Pittsburg Horizontal Completion Pittsburg Horizontal Completion Number of Wells

29 Leflore Horizontal Completion Leflore Horizontal Completion Number of Wells

30 Haskell Horizontal Completion Haskell Horizontal Completion Numbe rof Wells

31 Total Amount Claimed $6,, Amounr Refunded $5,, $4,, $3,, $2,, $1,, $ Year

32 Category of wells claimed in Year 2 Catogories Claimed Percentage Inactive Enhancement Deep Well New Discovery Horizontally No 3D -Seismic claim for year 2

33 Category of wells claimed in Year 24 Categories Claimed Percentage Inactive Enhancement Deep New Discovery 3-D Seismic Horizontal

34 Comparison Between Categories claimed in 2 and Inactive Enhancement Deep Well New Discovery 3-D Seismic Horizontally

35 Question/Answers: