The Full MontneyA Critical Review of Well Performance by Production Analysis
Murray Reynolds, FerusRobert Bachman, Taurus
Outline
• Well performance based on statistical study
• Answer questions
‒ Effect of fracturing fluid systems in Montney Gas?
‒ Effect of completion technology in Montney Gas?
‒ Sensitivity of completion cost in Montney Gas?
Background
Background
• Feedback on previous SPE papers
‒ Lack of geological and petrophysical data (SPE 149344 )
‒ Sample size too small (SPE 168632 )
• Statistical analysis of well performance
‒ >2000 wells
‒ Incorporates geology sensitivities
6
SPE 168632 – A Comparison of the Effectiveness of Various Fracture Fluid Systems Used in Multi-
Stage Fractured Horizontal Wells: Montney Formation, Unconventional Gas – M. Reynolds
SPE168632 - Study Overview – Heritage Area
Well Locations within Study
Glacier
Pouce Coupe
Under
pressured
Over
pressured
Source: SPE 168632 – A Comparison of the Effectiveness of Various Fracture Fluid Systems Used in Multi-Stage Fractured Horizontal Wells: Montney Formation, Unconventional Gas
Geology of the Montney Heritage
• Water saturations are low and sub-irreducible in many areas
• Gross pay thickness up to 300 m
• Permeability: 0.001 to 0.06 mD.
‒ Average in the middle micro-D range
Previous Study Overview
• Scope:
‒ 50 HZ wells involved in the study
‒ 45 HZ wells were analyzable (production data > 18 months)
• Data Sources:
‒ Production data from GeoSCOUT
‒ Petrophysics data from Canadian Discovery Ltd.
‒ Frac data from Canadian Discovery’s FracDatabase
8
Field / Frac Fluid Slickwater Binary CO2 Foam N2 Foam Total
Swan 4 3 5 12
Glacier 6 3 9
Groundbirch 6 6
Sunrise 1 1 2 4
Sunset 4 4
Sundown 4 4
Pouce Coupe 4 4
Dawson 2 2
Total 11 12 12 10 45
Early time linear flow into the central fracture
1. Length = Sum of all fracture lengths
2. Flow seen for 18 months
Early Time Linear Flow
Well is black
line
Fractures are
solid gray lines
No flow
boundaries are
dashed gray
lines
Flow can only
occur into the
well through the
fractures
Late time linear flow (compound linear flow)
with flow convergence into the central fracture
1. Length = Distance between toe and
heel fracture treatment
2. Flow seen after 18 months
Late Time Linear Flow
Well is black
line
Fractures are
solid gray lines
No flow
boundaries are
dashed gray
lines
Flow can only
occur into the
well through the
fractures
Montney Heritage AreaComparing Slickwater to CO2 Foam
CO2 foam gives superior fracture properties with less proppant as compared to slickwater
For CO2 foam, more proppant per stage at high proppant concentration has positive effect
CO2 foam gives superior fracture properties with less fluid as compared to slickwater
For CO2 foam, more fluid per stage (lower overall proppant concentration) has negative effect
Analysis
Scope
• >3,500 Hz Montney wells
• 2,200 wells with 12 month production
• Montney/Doig Gas
‒ On Production Date >2010
‒ GOR > 15000 scf/stb / OGR < 75 stb/mmscf
‒ C7+ < 4%
‒ 1,627 wells
‒ Fluid Systems: ‒ Oil & water based
‒ Energized and foamedFluid Acronym Well
Count
Slickwater SW 733
Other Water Based Fluids WB 68
Energized Slickwater E-SW 150
Energized Water Based E-WB 116
Nitrified Foam N2 Foam 87
CO2 Foam CO2 Foam 181
Binary (N2+CO2) Foam Bi Foam 152
Oil Based Oil 32
Energized Oil Based E-Oil 108
Ultimately >150,000 wells will be drilled in the Montney(Jim Reimer Feb 2015)
Analysis Summary
1627 wells
Montney/Doig Gas Map
The Best and The Worst
Montney/Doig Gas Production Analysis(3 Month Cumulative Production)
BI Foam - 41,000 BOE
SW – 30,000 BOE
E-SW – 31,000 BOE
CO2 – 34,500 BOE
1627 wells
Montney/Doig Gas Production Analysis(12 Month Cumulative Production)
BI Foam - 139,000 BOE
SW – 136,000 BOE
E-SW – 127,000 BOE
CO2 – 154,500 BOE
1627 wells
Montney/Doig Gas Normalized Analysis(12 Month Cumulative Production Normalized)
BI Foam - 195 BOE/Tonne
N2 Foam – 117 BOE/Tonne
SW – 104 BOE/Tonne
CO2 – 159 BOE/Tonne
E-WB – 145 BOE/Tonne
BI Foam - 51 BOE/$
E-WB – 53 BOE/$SW – 46 BOE/$
CO2 – 53 BOE/$
WB – 57 BOE/$
BI Foam - 94 BOE/m
E-SW – 81 BOE/m
SW – 80 BOE/m CO2 – 95 BOE/m
BI Foam – 12,000 BOE/#
WB – 10,700 BOE/#
E-SW – 10,400 BOE/# CO2 – 13,500 BOE/#
SW – 12,900 BOE/#
Cumulative Production / Tonne Proppant Cumulative Production / Completion Cost.
Cumulative Production / Completed Length. Cumulative Production / Stages
Montney/Doig Gas Completion Cost
BI Foam – K$3,020
E-WB – K$3,100
SW – K$3,880
CO2 – K$2,930
WB – K$2,900
1238 wells
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
SW N2Foam
E-SW E-WB BIFoam
CO2Foam
WB
3 mo Prod (BOE)
0
50
100
150
200
250
300
350
400
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
SW N2Foam
E-SW E-WB BIFoam
CO2Foam
WB
Median Completion Cost Well Count (with cost)
Maximize your Revenue
D=~K$500 @ $40/BOE
~$1.35 Million increased revenue on first 3 months of production
D=~($850K)
Completion Cost 3 Month Cumulative Production
Montney/Doig Gas Fields
From 2010 with 12 month Production Data
737
324
12295 78
36 26 21 20 18 11 11 11 11 10 10 9 8 7 7 748
0
100
200
300
400
500
600
700
800
Well Count
Montney/Doig Gas Players
255
191 189
130
100 95 9179 76
5441 35 32 24 21 19 19 16 15 15 14 14 14 12 11
65
0
50
100
150
200
250
300
Well Count
From 2010 with 12 month Production Data
Completion Technology
Montney/Doig GasProduction by Completion Technology
P&P (Ball) – 127,000 BOE
B&S – 134,000 BOE
P&P – 133,000 BOE
CT Cut/Port – 110,000 BOE
1591 wells
12 Month Cumulative Production(By Technology by Fluid)
Plug & Perf Ball & Seat
Plug & Perf (Ball) CT Cut/Port (Packer)
E-WB – 139,000 BOE
WB – 157,000 BOE
CO2 – 175,000 BOE
SW– 123,000 BOE
SW – 172,000 BOE
CO2 – 164,000 BOE
E-SW – 143,000 BOE
BI Foam – 140,000 BOE
WB – 119,000 BOE
SW – 129,000 BOE
E-SW– 86,000 BOE
CO2 – 113,000 BOE
E-WB – 127,000 BOE
N2 – 50,000 BOE
Regional Heritage
183
156
130
93
75
52
32
124
0
20
40
60
80
100
120
140
160
180
200Well Count
Regional Heritage Players
From 2010 with 12 month Production Data
Top 4 Operators
Regional Heritage Top 4 Operators(3 Month Cumulative Production)
562 wells
ARC – 36,800 BOE
Encana– 28,400 BOE
Murphy – 45,700 BOE
Shell – 20,700 BOE
Regional Heritage Top 4 Operators(12 Month Cumulative Production)
562 wells
ARC – 196,000 BOE
Encana– 185,000 BOE
Murphy – 140,600 BOE
Shell – 120,000 BOE
Regional Heritage Production Analysis(3 Month Cumulative Production/Top 4 Operators)
SW – 27,000 BOE
CO2 – 35,300 BOE
E-WB – 32,200 BOE
BI Foam – 48,400 BOE
Regional Heritage Production Analysis(12 Month Cumulative Production/Top 4 Operators)
SW – 139,400 BOE
CO2 – 180,000 BOE
E-WB – 151,400 BOE
BI Foam – 143,500 BOE
530 wells
Regional Heritage Normalized Analysis(12 Month Cumulative Production Normalized)
Cumulative Production / Tonne Proppant Cumulative Production / Completion Cost
Cumulative Production / Completed Length Cumulative Production / Stages
SW – 13,800 BOE/#
CO2 – 17,600 BOE/#
E-WB – 11,700 BOE/#
BI Foam – 13,100 BOE/#
SW – 110 BOE/Tonne
CO2 – 181 BOE/Tonne
E-WB – 144 BOE/Tonne
BI Foam – 212 BOE/Tonne
SW – 56 BOE/$ CO2 – 66 BOE/$
E-WB – 49 BOE/$
BI Foam – 52 BOE/$
SW – 71 BOE/m
CO2 – 112 BOE/m
E-WB – 95 BOE/m
BI Foam – 91 BOE/m
Median Completion Cost By Operator
Completion Cost3 Month Cumulative Production
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
SHELL CANADALIMITED
ENCANACORPORATION
ARCRESOURCES
LTD.
MURPHY OILCOMPANY LTD.
BOE
-
1,000
2,000
3,000
4,000
5,000
SHELL CANADALIMITED
ENCANACORPORATION
ARCRESOURCES
LTD.
MURPHY OILCOMPANY LTD.
K$
Median Completion Cost
0
1000
2000
3000
4000
SHELL CANADALIMITED
ENCANACORPORATION
ARC RESOURCESLTD.
MURPHY OILCOMPANY LTD.
K$
Average Completion Cost
Regional HeritageProduction by Completion Technology
P&P (Ball) – 127,000 BOE
B&S – 159,200 BOE
P&P – 133,000 BOE
CT Cut/Port – 150,200 BOE
551 wells
12 Month Cumulative /Technology / Fluid
Plug & Perf Ball & Seat
Plug & Perf (Ball)
BI FOAM – 123,500 BOE
CO2 – 195,100 BOE
SW– 116,700 BOE
SW – 206,000 BOE
CO2 – 170,300 BOE
BI Foam – 149,000 BOE
SW – 146,000 BOE
What Have we Learned
• Look back, Not over the fence‒ Statistical analysis essential to optimize design
• Normalize to get a better picture
• Fracturing fluid and completion technology does make a difference‒ Production results vary by field
• Good and bad geology varies across the Montney
What Have we Learned
• Largest developed fields: Regional Heritage, Northern Montney, Pouce Coupe
• CO2 foam fluids and binary foam fluids show lowest cost in Montney/Doig Gas
• CO2 foam and BI Foam show superior results for Montney/Doig Gas and Regional Heritage
Thanks for your Collaboration
• Bertrand Groulx, Visage
• Juliana Buendia, Ferus
• Robert Walker, Ferus
Thank youQuestions?
Appendix
Montney/Doig Gas(Completion Cost / Stage)
Montney/Doig Gas(Cost and Production / Stage)
0
500
1000
1500
2000
2500
3000
3500
4000
SW E-SW CO2Foam
N2Foam
WB BIFoam
E-WB
BOE/#
0
50
100
150
200
250
300
350
400
SW E-SW CO2Foam
N2Foam
WB BI Foam E-WB
$/#
D=~730 BOE/#D=~(K$131)
Completion Cost per # Stages 3 Month Cumulative Production per Stage
0
50
100
150
200
250
300
350
400
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
SW N2Foam
E-SW E-WB BI Foam CO2Foam
WB
Median Completion Cost Well Count (with cost)
D=~($850K)
Maximize your Revenue(over 12 month production)
By using CO2 ~$1.65 Million increased revenue on first 12 months of production
By using BI Foam ~$0.93 Million increased revenue on first 12 months of production
Completion Cost 12 Month Cumulative Production
D=~($950K)
D=~K$80
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
SW N2 Foam E-SW E-WB BI Foam CO2Foam
WB
12 mo Prod (BOE)
D=~K$700
Montney/Doig Gas Normalized Analysis(12 Month Cumulative Production Normalized/All Fluids)
Cumulative Production / Tonne Proppant Cumulative Production / Completion Cost.
Cumulative Production / Completed Length. Cumulative Production / Stages
Regional Heritage(3 Cumulative Production by Operator)
737 wells
Regional Heritage(12 Cumulative Production by Operator)
737 wells
Regional Heritage Production Analysis(3 Month Cumulative Production/All Operators)
737 wells