Png 492 pec final-presentation
Transcript of Png 492 pec final-presentation
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Mike Cronin716-479-2722
Zach Fidurko716-378-5970
Pure Energy Consultants, LLC
Matt Minemier814-222-1854
Naser Saleh814-441-1599
Field Development Plan of Texas Creek Oriskany Sandstone
Client: Shell (Fm. East Resources)Date: 7 April 2011
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Introduction
• Deliverables:1) Reservoir Characterization2) Reservoir Development Options w/ Economics
• Findings:1) OGIP = 5.8 Bscf2) Economics - Gas Price ($4/Mscf)
• Gas Storage Infeasible• Infill Drilling Sub-Economic
3) Recommend Depleting Field to 500psi with Existing Wells.
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Reservoir Characterization
Structure Map with Water Saturation: Looking NW
-OGIP = 5.8 Bscf-Swcon = 25%-Thickness = 30ft-Net Pay = 15ft-Porosity = 5%-GWC at 6200ft
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History Match
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History Match
1/22/2010 5/2/2010 8/10/2010 11/18/2010 2/26/20110
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Graham 2Modeled
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Time (Days)
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• Cumulative Gas Produced vs. Time
• Daily Gas Produced vs. Time
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Development Options
1) Production to Abandonment-Add Wells-No Additional Wells
2) Gas Storage
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Abandonment StrategyFor P abandonment of 500psi:
1) Addition of One Well (Two Test Locations) VS
2) Produce Existing Wells Until Depleted
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TW-1
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Incremental Economics TW-1TW- 1
• Gas produced 4.31 BCF
• Recovery Factor 74 %• At $4 Mscf additional
revenue will equal $1.8 million
• Cost to Drill Well (from East AFE) $ 1.3 million
• NPV @ 10 % give $-325,946
• ROR equals 3.3 %
NPV=Net Present ValueROR=Rate of Return
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TW-2
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Incremental Economics TW-2TW- 2
• Gas produced 4.28 BCF
• Recovery Factor 73%• At $4 Mscf additional
revenue will equal $1.68 million
• Cost to Drill Well (from East AFE) $ 1.3 million
• NPV @ 10 % give $-355,968
• ROR equals 3.2 %
NPV=Net Present ValueROR=Rate of Return
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Economics of Abandonment• Plan Produce Original Three Wells to Abandonment
Pressure (500 psi)• Abandonment Date • Total Gas Produced BCF • At $4 Mscf - Producing to Abandonment
- Stopping Production @ 1000 psi for injection
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Gas Storage StrategyNp, Pressures at inject-Burst pressure (FG work)
Working Gas: OGIP-Np = 5.8-3.9 = 1.9 Bscf
No new wells, convert existing wells to injectors
-6month injection/production cycling
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Gas Storage Results
• Losing X % per cycle
• -(Storage Cost + Summer Buy Price)*Vinj• + (Winter Sell Price)*Vprod• -12.5% *Value of Unproduced Accessible Gas
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Economics
12/27/2014 5/10/2016 9/22/2017 2/4/2019 6/18/2020 10/31/20210.00E+00
1.00E+09
2.00E+09
3.00E+09
4.00E+09
5.00E+09
6.00E+09
at t=0 Gas Produced vs. Injected Produced
ProductionInjection
Date
Cum
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as S
C (ft
^3)
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Economics
Summer Price $3.75Winter Price $4.75
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Economics
Cycle Money loss
1 -7.67E+06
2 -8.90E+06
3 -9.20E+06
4 -9.07E+06
Cycle Gas loss (ft3)
1 1.90E+09
2 2.27E+09
3 2.44E+09
4 2.52E+09
Cycle % Gas Loss (ft3)
1 14.98537127
2 28.18611201
3 39.47369726
4 48.29953467
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Conclusions
-OGIP:-Reserves:
-Abandonment Economics
-Gas Storage Economics
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Questions
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Support Slides
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Delciotto 2 History Match
1/22/2010 5/2/2010 8/10/2010 11/18/2010 2/26/20110
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Delciotto 1 History Match
1/22/2010 5/2/2010 8/10/2010 11/18/2010 2/26/20110
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Graham 2 History Match
1/22/2010 5/2/2010 8/10/2010 11/18/2010 2/26/20110
200000
400000
600000
800000
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1400000
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1/22/2010 5/2/2010 8/10/2010 11/18/2010 2/26/20110
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12000 Graham 2
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Pure Energy Consultants, LLC
• Gas Produced 3.86 BCF• Recovery Factor 67%• With no
additional Wells
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Pure Energy Consultants, LLC