Acid Gas Injection at Deep Panuke

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1 Acid Gas Injection at Deep Panuke Terrance Skrypnek, Group Lead, Deep Panuke Sub-Surface Nova Scotia Energy and Research Development Forum St. Francis Xavier University, Antigonish, Nova Scotia May 21 and 22, 2008

2 EnCana Corporation Acid Gas Injection at Deep Panuke Drilling and Completions Re-complete existing production wells, drill and complete Acid Gas Injection well Install subsea production trees Export Pipeline Install export pipeline to shore Onshore 3 km line and tie-in to existing M&NP pipeline connecting to USA and Canadian markets Line trenched and buried approx. 50% of length. Subsea Install individual well tieback flow lines, umbilicals, control systems, protection structures Flowlines and umbilicals to be trenched and buried Production Field Centre Self-installing, 4-leg facility capable of producing 300 MMcf/d Facility constructed, installed and operated by SBM under long term lease and operating contracts.

3 EnCana Corporation Potential Disposal Zones and Criteria Q Tertiary Cretaceous Jurassic Triassic Paleogene Neogene Age Pliocene Miocene Oligocene Eocene Paleocene Maastrichtian Campanian L Santonian Coniacian Turonian Cenomanian Albian Aptian Barremian E Hauterivian Valanginian Berriasian Tithonian L Kimmeridgian Oxfordian Callovian M Bathonian Bajocian Aalenian Toarcian Pliensbachian E Sinemurian Hettangian Norian L Carnian Ladinian M Anisian E Scythian NW Lithology SE Banquereau Petrel Member Logan Canyon Upper Missisauga Abenaki Fm. Laurentian Wyandot Member Naskapi Member "O" Marker Lower Missisauga Baccaro Mbr. Scatarie Mbr. Mohican Iroquois Dawson Canyon Mic Mac Misaine Member Eurydice Argo Verrill Canyon Meguma Metasediments Glacial Sediments Passive Margin Deep Marine Sediments Passive Margin Nonmarine Marine Clastics Post-Rift Clastics Carbonates Syn-Rift Clastics, Halite Dolomite Generalized Stratigraphy, Offshore Nova Scotia, showing possible disposal zones Sand Shale Carbonates Salt Dolomite Sand / Shales Possible Disposal Zone Modified from C-NSOPB, 1997 Potential Disposal Zones Abenaki Middle / Lower Mississauga Tidal Fluvial Sandstones (TFSS) Upper Missisauga Formation Panuke P Sands Upper Missisauga Formation Cohasset and Lower Logan Canyon Dawson Canyon and Upper Logan Canyon Key Criteria Reservoir Presence and Quality Top Seal (Integrity) Conservation Impact on Future Drilling Plans

4 Schematic Upper Missisauga Stratigraphy (after Don Cummings, 2004) EnCana Corporation Naskkapi Shale Topseal Numerous Internal Topseals Injection Zone Excellent Lateral Continuity

5 Acid Gas Disposal Schematic PFC Pipeline D-70 Wellhead Seawater Seafloor Naskapi Fm. Shale Panuke Sandstones and Shales Upper Missisauga Fm Tidal-Fluvial Sandstones Drawing Not to Scale Buoyancy 4 Diffuse trailing edge3 Before During After sand grain TD PPT guide rule Try to keep with six lines, six words per grain line 1 undersaturated water 1 shale barrier 2 Flood Front leading edge temporary trapped gas Injection Residual Gas Saturation Dissolution / Diffusion sand Flood Front gas saturated water residual gas trapped in centre of pore water Dissolving gas bubbles EnCana Corporation

6 EnCana Corporation Static and Dynamic Earth Models Static Model: 5.4 Million cell geo-cellular model from Naskapi to Lower Missisauga. Constructed to the west of structural saddle which separates the Panuke and Cohasset Oil Pools Dynamic Model:1/2 of the static model area covered. Used compositional simulation to handle acid gas complexities. Many cases were run to address uncertainty and for sensitivity analysis Different injection well locations. Different completion zones. Mean and P10 acid gas forecasts. CO2 solubility Variability in reservoir absolute and relative permeability

7 Deep Panuke 100 Year Acid Gas Migration Plan View Line 104 N 100 Year Acid Gas Migration ~ 1.2 km Line km D-70 Panuke Remaining Recoverable Oil Located ~ 4.5 km SE of D70 Background Grid 500mX500M EnCana Corporation

8 Deep Panuke 100 Year Acid Gas Migration Cross Section: Line 110 SW LINE 110 NE D-70 P2 Sand Interval Base P4 Sand Top TFSS PERFS Background Grid 500mX100M EnCana Corporation

9 Deep Panuke 100 Year Acid Gas Migration Cross Section: Line 104 SW LINE 104 NE P2 Sand Interval Base P4 Sand Top TFSS Background Grid 500mX100M EnCana Corporation

10 Thank You!

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