The Bakken A Non-Shale Shale Play August 2010
ConocoPhillips Unconventional Resource Experience in North America CBM San Juan Drunkards Wash Uinta Powder River Horseshoe Canyon Manville Shale Barnett Haynesville Muskwa Montney Austin Anadarko Bakken Tight Gas Piceance Anadarko San Juan Deep Basin Uinta Greater Green Lobo Bossier Montney Deep Basin Greater Green River Uinta San Juan Muskwa Lobo Horseshoe Canyon Manville Piceance Barnett Bakken Powder River Anadarko Bossier Haynesville Eagleford ConocoPhillips is successfully using this knowledge and experience to expand its presence in resource plays globally 1
Oil Potential Many Estimates of Resource Potential Dow and Williams (1974) 10 billion barrels of oil generated Webster (1982) 92 billion barrels of oil generated Schmoker and Hester (1983) 132 billion barrels of oil generated Price (unpublished USGS) 271-503 billion barrels of oil generated Flannery and Krause (2006) 300 billion barrels of oil generated Pollastro (2008) 3.6 billion barrels recoverable Oil-Source Correlations suggest that most of oil remains in the Bakken Overlying Mission Canyon Formation oils distinctly different Production Predominantly from Middle Member Mixture of sand, silt, carbonate mudstone 39-460 API oil @ ~2,600 3,500m TVD Source: Headington Oil Company Estimates of over 100 Billion Bbls of Oil in Place 2
Williston Basin Canadian Bakken Development Parshall Field US Bakken HZ activity 1980 s+ HZ development 3
Paleozoic Stratigraphy LeFever, North Dakota Geological Survey 4
Type Log Source: Headington Oil Company 5
Lower Bakken Shale Member LeFever 1991 6
Middle Member Lithofacies 7
Middle Member Lithofacies 1-3 LeFever 1991 8
Middle Member Lithofacies 4+5 LeFever 1991 9
Upper Bakken Shale Member LeFever 1991 10
Middle Bakken / Three Forks Pay Variation West East Modified from CRI web, 2010 Middle Bakken pay not a shale lithology Complex, laterally varying lithology & play types Stratigraphic / diagenetic trap drivers Underlying Three Forks non-shale play potential established 2008 Also sourced by Bakken shale Dual zone development underway 11
Middle Member Log Response LeFever (1991), North Dakota Geological Survey 12
Shift From Vertical to Horizontal Wells Source: The Oil Drum Nov 2009 13
Drilling and Completion Impact Vertical Well Production (1961+) = 50,000 barrels Horizontal Well Production (1990+) = 100,000-400,000 barrels Multi-Stage Frac Production (2000+) = 500,000-800,000 barrels Source: The Oil Drum Nov 2009 14
Bakken Horizontal Play 9,000 80 8,000 70 7,000 60 Oil bbls/day 6,000 5,000 4,000 First Hybrid Well 650 BOPD First Plug & Perf Well 725 BOPD Multi Stage Targeted Fracs 50 40 Well Count 3,000 2,000 Gross Oil Well Count 30 20 1,000 10 0 0 2/17/2005 9/5/2005 3/24/2006 10/10/2006 4/28/2007 11/14/2007 6/1/2008 12/18/2008 Date New completion designs improves results continually modeling and testing different types of stimulation 15
Horizontal Drilling History Modified from Brigham web, 2010 16
Hybrid Bakken Completion Design Generic WBD Bakken Horizontal Well Play Hybrid Well Bore Design September 2008 Robert Clark & Clyde Findlay II Bakken Completions Team Critical Items 1) Swell packer placement at 15,500' segmenting sleeve section (toe) from P&P section (heel). 15,500' is max CT depth for plug drill out and tool retrieval. 2) Greatly reduced friction pressure loss vs. all sleeve completion. Now smallest ball 2.75" in sleeve section vs. all sleeve completion with 1.25" as smallest ball. 3) New hybrid completion: Five P&P intervals & five sleeve intervals. *Well bore segmentation *1-day frac on hardest 1/2 of the well (toe) 7" Shoe +/- 11,000' Swell Pkr 11,900' Swell Pkr 12,800' Swell Pkr 13,700' Swell Pkr 14,600' Swell Pkr 15,500' Swell Pkr 16,500' Swell Pkr 17,500' Swell Pkr 18,300' Swell Pkr 19,100' 4-1/2" Shoe +/-200' off TD 4-1/2", 11.6#/ft, P-110 Liner w/4.0" ID 6" Hole Five Perf & Plug Intervals From 7" shoe to +/- 15,500' Separated with swell packers Sliding Sleeve 16,000' 3.50" Ball Sliding Sleeve 17,000' 3.25" Ball Sliding Sleeve 17,900' 3.0" Ball Sliding Sleeve 18,700' 2.75" Ball Press Operated Vent +/- 19,500' Pinned at +/- 4,200 psi Over Hydrostatic TD +/- 20,000' 17
Bakken Fracture Stimulation Well 1 Well 2 Simul-Frac, Zipper Frac, Sequential Frac 2000 ft Simultaneous Fracture Stimulation Stimulating two horizontals at the same time Zipper Frac Alternating frac between two offsetting wells Sequential Frac Stimulating one horizontal after another Possible Methods for Controlling and Steering Fracture Stimulations 18
Bakken Horizontal Completions 60º Phasing 6 Perfs @ 300, 0, 60 60º Phasing 6 Perfs @ 0, 60, 120, 180, 240, 300 Oriented Perfs Used to direct frac initiation upward into the Bakken from the Three Forks. Radial Perfs Used to direct frac initiation radially in the Bakken. 19
Summary: Keys To Peak Performance Control large resource Focus, flexibility & speed Understand the Reservoir Need to integrate stratigraphy, reservoir description and rock mechanics with drilling and completion technology to pick the best combination to release the hydrocarbons from the rock Aggressive Development Enhanced Value Invest in Infrastructure Stage Growth Focus on Infrastructure Efficiency Develop Solid Working Relationships Be Flexible and Creative Characterization, stimulation, infrastructure, & materials Keys to success are found throughout project life cycle 20