Kirkwood Gas Coalition Broome County New York Geologic Overview

Transcription

1 Kirkwood Gas Coalition Broome County New York Geologic Overview Zaengle Geoscience LLC Don Zaengle Geologist P.O. Box Chase St. Worcester N.Y Office: Cell:

2 Geologic Map New York Broome County 2

3 Broome County New York Broome County 456,000 ac 35 wells drilled Kirkwood Gas Coalition 11,000 ac Sanford,Deposit NY XTO, Whitmar, $90 million, 37,000 ac $2,411/ac, 15% RI, 5 yr, 3 yr ext., 5/08. Fortuna/Friendsville Group, $165 million, 30,000 ac, $5,500/ac, 20% RI, 5yr, 3yr ext., 9/09 3

4 Geologic Section Broome County Gas pay/shows ~ 11,000 Oswego Sst Oneida Sst Medina SS, Triangle field TBR LS Beagell # Merrill # (R. Nyahay, J. Leone, L. Smith, J. Martin, D. Jarvie, 2007) Modified D. Zaengle 10/2008 4

5 New York Gas & Oil Fields Medina SS Queenston SS Fields 5-10 Bcf/yr Black Shale Fields > 1 Bcf/yr Trenton Black River Fields 40 Bcf/yr Genegantslet Marcellus Cafferty Hill Marcellus Stagecoach Oriskany SS Herkimer SS Fields 2 Bcf/yr Cabot Oil & Gas Marcellus Shale Field 5 52 MMcfg/d

6 Marcellus Shale Cherry Valley NY Union Springs Member, NY Lower Marcellus, PA 6

7 Key Factors in a Successful Shale Play Total Organic Carbon TOC Proximity to Pipelines Utilities Thickness Thermal Maturity Natural Gas Prices Available Water Resources Pore Pressure Geologic Factors Brittleness Natural Fractures Environmental (Wetlands, Sensitive Wildlife Habitat) Non-Geologic Factors Access Roads Railways Proximity Mineralogy Gas in Place Schools Residential areas Geo-Political Regulations Porosity Permeability Topography

8 TOC Marcellus Shale, Union Springs Member TOC Map RCG (R. Nyahay, J. Leone, L. Smith, J. Martin, D. Jarvie, 2007) TOC TOC 4.0% 5.0% 8

9 Tmax (C ) Marcellus (R. Nyahay, J. Leone, L. Smith, J. Martin, D. Jarvie, 2007) Thermal Maturity Ro Marcellus (R. Nyahay, J. Leone, L. Smith, J. Martin, D. Jarvie, 2007) C Ro % 9

10 Fracture Orientation D. Hill, T.E. Lombardi, J.P. Martin, 2007 Predominant fracture orientation N deg.e Natural Fractures Brittleness SH = Maxium horizonal stress Fractures prorogate in direction of SH Drill horizontal wells perpendicular to SH NNW SSE direction 10

11 Marcellus Shale Regional Isopach, Engelder PSU, 2009 Gas in Place 150 bcf/section 25 bcf/section 75 bcf/section 11

12 Mineralogy Porosity Permeability Porosity 15-20% Permeability darces Porosity 5-7% Permeability md

13 Pore Pressure Marcellus Shale (base) Regional Structure (top Onondaga LS), Engelder PSU

14 Marcellus Shale, Cherry Valley, NY Knapp #1, Belden & Blake Corp., 22906, TD = 5,242, KB=1,720, 7/01, Colesville twp., Broome cnty., NY 200 API 2.0 g/cc 2.6 g/cc 3.0 g/cc Marcellus Regional Top Chittenango (Oakta Creek ) Member Cherry Valley LS Union Springs Member Marcellus >200 API Gamma 4,670, -2,950 Onondaga LS 63 Marcellus Union Springs 4,805, -3, Total High Gamma >200 API = Onondaga Limestone4,886, -3,166 14

15 Thickness Marcellus Shale Isopach RCG (R. Nyahay, J. Leone, L. Smith, J. Martin, D. Jarvie, 2007) 15

16 Thickness Richards #1 Broome County, NY Marcellus Shale >200 API Gamma Isopach D.Zaengle Logs Unlimited #

17 Pore Pressure -2,000-2,200 Broome County, NY Marcellus Shale Depth to Top >200 API Gamma D. Zaengle ,400-2,600-2,800-3,000-3,200-3,400-3,600

18 Richards #1, Joyce Western Corp., 05087, TD=9,640, KB=995, 4/67 Triangle twp., Broome cnty., NY 200 API Marcellus Shale > 200API(2,920,-1,925 ) Marcellus Shale Union Springs Member 70 Onondaga Limestone (3,030, -2,035) 18

19 Logs Unlimited, Cabot Oil & Gas Corp., 22856, TD = 4,937, KB= 1,450, 12/00 Colesville twp., Broome cnty., NY 200 API 2.0 g/cc 2.6 g/cc 3.0 g/cc Marcellus Shale > 200API Gamma 4,380, -2, Cherry Valley Limestone 13 Marcellus Shale Union Springs Member 65 4,518, -3,068 Onondaga Limestone 4,592, -3,142 Total High Gamma

20 Knapp #1, Belden & Blake Corp., 22906, TD = 5,242, KB=1,720, 7/01 Colesville twp., Broome cnty., NY 200 API 2.0 g/cc 2.6 g/cc 3.0 g/cc Marcellus Shale >200 API Gamma 4,670, -2, Cherry Valley Limestone 12 Marcellus Shale Union Springs Member 4,805, -3, Onondaga Limestone 4,886, -3,166 Total High Gamma

21 Kirkwood Gas Coalition Summary Within Core Marcellus Fairway. Top Marcellus Shale (>200 API gamma) at reasonable drilling depths (range from -3,000 to -3,700 subsea). Thick Marcellus (Gross thickness ranges from ~ ) ~125 - ~175+ Marcellus Shale (>200 API gamma). Stacked Targets (Marcellus shale, Herkimer Sandstone, Utica Shale, Trenton Black River hydrothermal dolomite, at reasonable drilling depths, high up side. High Marcellus Total Organic Carbon content %. Near Existing Fields and Discoveries. Cabot Oil & Gas, Marcellus Shale Susquehanna Field, Dimock, PA (Cum.Prod. 52 mmcfg/d). On Millennium Pipeline. Within dry gas window, little if any processing required, high BTU value. New York Pricing Premium (Averaged $1.05 to NYMEX). Excellent Economics relative to other shale plays. Excellent Infrastructure (Railways, Roads). Abundant Water Resources. Rural area, sparsely populated, with pro-drilling landowners. Topography consists of gently rolling hills. 21