U.S. Unconventional Play Round-up

Transcription

1 Drilling Info Open To Explore U.S. Shale Plays U.S. Unconventional Play Round-up Allen Gilmer, CEO February 28, ,000 new wells. RIG COUNT Barnett Rig = 300 Neuquen = 34 US Unconventional = 1000 Argentina = 95 Barnett Shale Extent Barnett Shale Strat Column

2 Barnett Shale Cross Section Barnett Shale Characteristics Age Late Devonian / Early Miss. Permeability 0.04 md B A R N E T T FORESTBURG LM MARBLE FALLS 500 FEET Porosity 4 to 6 % TOC 3.5 to 8 % Frac Nature Brittle, high calcite & silica; fracs easy Thickness 200 to 300 ft Depths 6,500 to 8,500 ft Pressure Gradient.45psi/ft Thermal Maturity 1 to 1.7 % Vitrinite Reflectance Primary Phase Gas / Combo Hydrocarbon in Place BCF/Section ELLENBURGER Barnett Shale 880,000 BOEPD from 16,257 wells Or 54 BOEPD/Well 310,000 BOEPD at 18:1 Or 19 BOEPD/Well BARNETT SHALE ACTIVITY AND PLAYERS Leasing By Quarter Royalties continued strong despite activity drop Top 5 Grantees 2002 to present Recent Activity focused in oily area Montague County EOG generally focuses on out skirts of play, setting them in good position for the combo play XTO, Chesapeake & Devon focused in the gas core

3 Top 5 Grantees 2002 to Present Permits By Quarter Grantee Total Acres (Gross) Avg. Acres/Lease Royalty (%) Term (Months) EOG 1,174, % 36 CHESAPEAKE 630, % 42 QUICKSILVER 412, % 39 XTO ENERGY 287, % 36 DEVON 253, % 34 Grand Total 2,758, % 37 Devon EOG XTO Energy Chesapeake Quicksilver Other Permit Count Avg Total Depth (Feet) Avg Horz Length (Feet) CHESAPEAKE 1,222 8,962 3,760 XTO ENERGY 469 9,141 3,594 DEVON 452 8,792 4,439 EOG 435 8,531 4,317 QUICKSILVER 176 8,407 4,306 Grand total 2,754 8,767 4,083 Production MaxIP Top 5 s Well Count Cur. Liquids (BBL/D) Cur. Gas (MMCFE/D) MaxIP (MCFE/D) CHESAPEAKE 1, ,126 DEVON 3, ,324 EOG 1, ,959 QUICKSILVER ,536 XTO ENERGY 1, ,885 Grand total 9, ,714 *Since 2002

4 Lateral Length Impact on Productivity BARNETT SHALE BEST PRACTICES Lateral Length Impact on Productivity Azimuth Has Little to No Impact on Productivity In Barnett Shale 2006 forward, core areas Impact of Simulfrac Technology in the Barnett Effectiveness of Simulfrac Technology across Barnett MCFGE/D more (on average) BARNETT SHALE R E S E A R C H P L A T F O R M

5 Impact of Refracing wells Impact of Refracing wells Relative Performance C grade HAYNESVILLE SHALE OVERVIEW Haynesville Shale Extent Haynesville Strat Column

6 Haynesville Shale Characteristics Age Upper Jurassic Permeability md Porosity 9 to 15% TOC < 1.9 % Frac Nature Brittle, very hard; needs heavy fracs Thickness 200 to 300 ft Depths 10,000 to 14,000 ft Pressure Gradient 0.7 to 0.9 psi/ft Thermal Maturity <2.0 % Vitrinite Reflectance Primary Phase Dry Gas Hydrocarbon in Place 170 BCF/Section HAYNESVILLE SHALE ACTIVITY AND PLAYERS Haynesville Shale Leasing By Quarter 575,000 BOEPD from 1,257 wells Or 457 BOEPD/Well 192,000 BOEPD (18:1) 152 BOEPD/Well Top 5 Grantees 2006 to present Top 5 Grantees : 2006 to present Grantee Total Acres (Gross) Avg. Acres/Lease Royalty (%) Term (Months) SAMSON 329, % 37 DEVON 222, % 36 PETROHAWK 214, % 38 EOG 166, % 36 ENCANA 158, % 42 Grand Total 1,091, % 38

7 Permits By Quarter Petrohawk EXCO Resources XTO Energy Chesapeake Encana Other Production MaxIP Permit Count Avg Total Depth (Feet) Avg Horz Length (Feet) CHESAPEAKE XTO ENERGY EXCO PETROHAWK ENCANA Grand total ,186 5,271 Top 5 s Performance - Haynesville Well Count Cur. Liquids (BBL/D) Cur. Gas (MMCF/D) MaxIP (MCFE/D) Cumulative Prod. (BCF) CHESAPEAKE , ENCANA , PETROHAWK , EXCO RESOURCES , XTO ENERGY , Grand total ,202 9,

8 Bakken Shale Extent BAKKEN SHALE OVERVIEW Bakken Strat Column Bakken Cross Section LODGEPOLE BAKKEN 100 FEET THREE FORKS Bakken Shale Characteristics Age Late Devonian / Early Miss. Permeability 0.01 to.20 md Porosity 5% TOC 10 to 20% Frac Nature Brittle, high calcite, natural fractures; fracs easy Thickness 50 to 140 ft Depths 8,000 to 10,000 ft Pressure Gradient up to 0.7 psi/ft Thermal Maturity 0.3 to 1.2 % Vitrinite reflectance Primary Production Oil Hydrocarbon in Place 5 to 15 MMBO/section BAKKEN ACTIVITY AND PLAYERS

9 Bakken Shale Leasing By Quarter 2008 spike in leasing similar to gas shale areas Royalty increasing/term decreasing land owner s market 300,000 BOEPD from 2600 wells Or 115 BOEPD/Well 278,000 BOEPD (18:1) 106 BOEPD/Well Top 5 Grantees 2006 to current Top 5 Grantees 2006 to Current Grantee Total Acres (Gross) Avg. Acres/Lease Royalty (%) Term (Months) CONTINENTAL LAND 1,196, % 43 DIAMOND RESOURCES 1,001, % 48 EMPIRE OIL 726, % 48 CONTEX ENERGY 493, % 52 SUNDANCE O&G 372, % 52 Grand Total 3,790, % 49 Who are these companies leasing for? Grantee Lease Assignment DIAMOND RESOURCES Several Companies EMPIRE OIL Whiting Petroleum CONTINENTAL LAND Continental Resources CONTEX ENERGY EOG SUNDANCE O&G??? Permits By Quarter Drilling Up Acreage Activity peaks do due to to prices Alberta Bakken new activity Whiting Hess EOG Continental Oasis Petroleum Other

10 Production MaxIP Avg Total Depth Avg Horz Length Permit Count (Feet) (Feet) WHITING CORPORATION ,880 9,875 HESS ,655 9,908 CONTINENTAL RESOURCES ,659 7,908 EOG ,608 8,195 OASIS PETROLEUM 49 20,413 10,088 Grand total ,043 9,195 Nesson Anticline (runs North South) Elm Coulee (2001) Core area in Mountrail Co. Parshall/Sanish Fields (2006) Top 5 s Well Count Cur. Liquids (MBBL/D) Cur. Gas (MMCF/D) MaxIP (BOE/D) Cumulative Prod. (MBOE) CONTINENTAL RESOURCES ,624 EOG ,522 HESS ,384 WHITING OIL AND GAS ,455 OASIS PETROLEUM ,913 Grand total ,898 GRANITE WASH OVERVIEW Granite Wash Extent Granite Wash Characteristics Age Pennsylvanian Permeability 0.1 to 20 md Porosity 8 to 12 % TOC 1.2 to 9 % Frac Nature Numerous compartmental sand pay zones requires individual fracs Thickness 1,500 to 3,000 ft Depths 10,000 to 17,000 ft Pressure Gradient underpressured to psi/ft Thermal Maturity n/a Primary Phase Liquids rich gas / Oil Hydrocarbon in Place BCF/Section

11 Granite Wash Deposition Granite Wash Strat Column Granite Wash 77,000 BOEPD from 2,800 wells Or 28 BOEPD/Well Incremental 25,000 BOEPD from 1,600 wells (18:1) Or 15 BOEPD/Well GRANITE WASH ACTIVITY AND PLAYERS Leasing By Quarter Top 5 Grantees

12 Top 5 Grantees Permits By Quarter Grantee Total Acres (Gross) Avg. Acres/Lease Royalty (%) Term (Months) CHESAPEAKE 557, % 39 CONTINENTAL LAND 127, % 36 EOG 118, % 36 SAMSON 93, % 38 QUESTAR E&P 84, % 36 Grand Total 982, % 37 Devon Apache Newfield Forest Oil Chesapeake Other Permit Count Avg Total Depth (Feet) CHESAPEAKE OPERATING INC FOREST OIL CORPORATION NEWFIELD EXPLORATION APACHE CORPORATION DEVON ENERGY Grand total Production MaxIP Top 5 s Well Count Cur. Liquids (MBBL/D) Cur. Gas (MMCF/D) MaxIP (BOE/D) Cumulative Prod. (MBOE) CHESAPEAKE ,286 NEWFIELD EXPLORATION ,011 11,998 DEVON ENERGY ,633 3,829 FOREST OIL CORPORATION ,784 3,973 APACHE CORPORATION ,069 1,921 Grand total ,090 45,007

13 Niobrara Shale Extent NIOBRARA SHALE OVERVIEW Niobrara Shale Cross Section Niobrara Shale Characteristics Age Upper Cretaceous Permeability <0.01 md N I O B R A R A FORT HAYS PIERRE SHALE 300 FEET Porosity 4 to 14 % TOC 1 to 5 % Frac Nature Brittle, natural fractures; easy to frac Thickness 150 to 1,500 ft Depths 3,000 to 14,000 ft Pressure Gradient 0.4 to.67 psi/ft Thermal Maturity 0.6 to 0.9 % Vitr. Refl. (1.35 max) Primary Phase Oil, condensate Hydrocarbon in Place Niobrara Strat Column NIOBRARA ACTIVITY AND PLAYERS

14 Leasing By Quarter (Lease Type) Leasing By Quarter Leasing By Lease Type Top 5 Grantees Top 5 Grantees Permits By Quarter Grantee Total Acres (Gross) Avg. Acres/Lease Royalty (%) Term (Months) CIRQUE RESOURCES 557,609 2,998 15% 61 OVER THE HILL LAND 450,956 1,555 13% 79 LONE TREE ENERGY 418, % 58 CONTEX ENERGY 375, % 68 BASELINE MINERALS 329, % 66 Grand Total 2,131,518 1,358 14% 66

15 Encana PDC Energy EOG Noble Energy Anadarko Other Permit Count Avg Total Depth (Feet) ANADARKO NOBLE ENERGY INC EOG RESOURCES INC PETROLEUM DEVELOPMENT CORP ENCANA OIL & GAS (USA) INC Grand total Production MaxIP Top 5 s Well Cur. Liquids Cur. Gas MaxIP Cumulative Prod. Count (MBBL/D) (MMCF/D) (BOE/D) (MBOE) ANADARKO ,307 NOBLE ENERGY, INC ,405 ENCANA OIL & GAS PETROLEUM DEVELOPMENT CORP EOG RESOURCES, INC Grand total ,114 Bone Spring / Avalon Shale Extent BONE SPRING/AVALON SHALE GEOLOGY

16 Bone Spring/Avalon Shale Characteristics Age Permian - Leonardian Permeability up to.13 md Porosity 4% to 15% TOC 3 to 6 % Frac Nature Brittle, high calcite, fracs easy Thickness ft Depths ,000 ft Pressure Gradient 0.6 psi/ft Thermal Maturity 0.5 to 2.2% Vitrinite Reflectance Primary Phase Liquids rich gas / oil Hydrocarbon in Place Bone Spring Strat Column Bone Spring, Leonard and Avalon Sections Source - Concho Resources Bone Springs 19,000 BOEPD from 575 wells Or 33 BOEPD/Well Incremental 11,000 BOEPD from 195 wells (18:1) Or 56 BOEPD/Well BONE SPRING/AVALON SHALE ACTIVITY AND PLAYERS Leasing By Quarter Leasing By Quarter (Lease Type) Renewed interest in West Texas Oil

17 Top 5 Grantees Top 5 Grantees Grantee Total Acres (Gross) Avg. Acres/Lease Royalty (%) Term (Months) CHESAPEAKE 333, % 41 ANADARKO 198, % 39 PETRO-HUNT 166, % 45 PINNACLE 140, % 49 CIMAREX 128, % 44 Grand Total 967, % 44 Permits By Quarter Mewbourne Yates Petroleum Devon Energy Concho Resources Cimarex Energy Other Production MaxIP Permit Count Avg Total Depth (Feet) CIMAREX ENERGY CO CONCHO RESOURCES DEVON ENERGY YATES PETROLEUM CORPORATION MEWBOURNE OIL COMPANY Grand total

18 Top 5 s Well Count Cur. Liquids (MBBL/D) Cur. Gas (MMCF/D) MaxIP (BOE/D) Cumulative Prod. (MBOE) COG OPERATING ,797 CIMAREX ENERGY YATES PETROLEUM DEVON ENERGY MEWBOURNE OIL Grand Total ,380 MARCELLUS SHALE OVERVIEW Marcellus Shale Extent Marcellus Shale Characteristics Age Devonian Permeability Porosity 5.5 to 7.8% TOC 2 to 10% Frac Nature extensive natural fractures Thickness 25 to 250 ft Depths 4,000 to 10,000 ft Pressure Gradient 0.42 to 0.7 psi/ft Thermal Maturity Primary Phase Gas Hydrocarbon in Place BCF/Section Marcellus Strat Column MARCELLUS SHALE ACTIVITY AND PLAYERS US Department of Energy-National Technology Laboratory August, 2009

19 Leasing By Quarter Top 5 Grantees Spike in 2008 as with other plays Increase in royalties could be a result of more informed land owners. Term steady at 5 years. Leasing available for key counties in DrillingInfo dataset Drop in leasing as operators focus on liquids rich plays Top 5 Grantees Permits By Quarter Grantee Total Acres (Gross) Avg. Acres/Lease Royalty (%) Term (Months) CHESAPEAKE 349, % 70 CABOT O&G 139, % 60 RANGE RESOURCES 112, % 62 ANADARKO 98, % 60 EAST RESOURCES 89, % 61 Grand Total 790, % 63 Ramp up in permitting as operators try to take advantage of JV drilling carries Range Resources and Chesapeake active in the gas condensate area No Marcellus activity in New York due to state regulations Ultra Resources East Resources Range Resources Talisman Chesapeake Other Permit Count Avg Total Depth (Feet) CHESAPEAKE TALISMAN ENERGY RANGE RESOURCES EAST RESOURCES ULTRA RESOURCES Grand total

20 Production Cumulative Top 5 s Core dry gas area Bradford and Susquehanna Counties Well Count Cur. Liquids (BBL/D) Cur. Gas (MMCF/D) Cumulative Prod. (MMCFE) CHESAPEAKE APPALACHIA, LLC ,803 RANGE RESOURCES 144 1, ,244 TALISMAN ENERGY ,504 EAST RESOURCES ,000 ULTRA RESOURCES ,589 Grand total 445 1, ,139 *Note production issues on slide for Marcellus The DI Family of Companies. Global E&P Information and Intelligence. The Unconventional Resource Platform