Png 492 pec final-presentation
- 1. Pure Energy Consultants, LLC Field Development Plan of Texas Creek Oriskany Sandstone Client: Shell (Fm. East Resources) Date: 7 April 2011 Mike Cronin Matt Minemier 716-479-2722 814-222-1854 mbc5043@psu.edu mtm5097@psu.edu Zach Fidurko Naser Saleh 716-378-5970 814-441-1599 zmf5005@psu.edu nbs5043@psu.edu
- 2. Introduction • Deliverables: 1) Reservoir Characterization 2) Reservoir Development Options w/ Economics • Findings: 1) OGIP = 5.8 Bscf 2) Economics - Gas Price ($4/Mscf) • Gas Storage Infeasible • Infill Drilling Sub-Economic 3) Recommend Depleting Field to 500psi with Existing Wells.
- 3. Reservoir Characterization -OGIP = 5.8 Bscf -Swcon = 25% -Thickness = 30ft -Net Pay = 15ft -Porosity = 5% -GWC at 6200ft Structure Map with Water Saturation: Looking NW
- 5. History Match 1600000 Graham 2 1400000 • Cumulative Gas Cumulative Production (MMscf) 1200000 Produced vs. Time 1000000 800000 Graham 2 600000 Modeled 400000 200000 0 1/22/2010 5/2/2010 8/10/2010 11/18/2010 2/26/2011 -200000 Time (Days) • Daily Gas Produced 16000 Graham 2 14000 vs. Time 12000 Daily Production (mscf) 10000 8000 Historical 6000 Modeled 4000 2000 0 1/22/2010 -2000 5/2/2010 8/10/2010 11/18/2010 2/26/2011 Time (Days)
- 6. Development Options 1) Production to Abandonment -Add Wells -No Additional Wells 2) Gas Storage
- 7. Abandonment Strategy For P abandonment of 500psi: 1) Addition of One Well (Two Test Locations) VS 2) Produce Existing Wells Until Depleted
- 8. TW-1
- 9. Incremental Economics TW-1 TW- 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 Value ROR=Rate of Return
- 10. TW-2
- 11. Incremental Economics TW-2 TW- 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 Value ROR=Rate of Return
- 12. 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
- 13. Gas Storage Strategy Np, 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
- 14. Gas Storage Results • Losing X % per cycle • -(Storage Cost + Summer Buy Price)*Vinj • + (Winter Sell Price)*Vprod • -12.5% *Value of Unproduced Accessible Gas
- 15. Economics at t=0 Gas Produced vs. Injected Produced 6.00E+09 5.00E+09 4.00E+09 Cumulative Gas SC (ft^3) 3.00E+09 Production 2.00E+09 Injection 1.00E+09 0.00E+00 12/27/2014 5/10/2016 9/22/2017 2/4/2019 6/18/2020 10/31/2021 -1.00E+09 Date
- 16. Economics Summer Price $3.75 Winter Price $4.75
- 17. Economics Cycle Money loss Cycle Gas loss (ft3) Cycle % Gas Loss (ft3) 1 -7.67E+06 1 1.90E+09 1 14.98537127 2 -8.90E+06 2 2.27E+09 2 28.18611201 3 -9.20E+06 3 2.44E+09 3 39.47369726 4 -9.07E+06 4 2.52E+09 4 48.29953467
- 19. Questions
- 20. Support Slides
- 21. Delciotto 2 History Match 1600000 Delciotto 2 1400000 Cumulative Production (MMscf) 1200000 1000000 800000 Historical 600000 CMG 400000 200000 0 1/22/2010 5/2/2010 8/10/2010 11/18/2010 2/26/2011 -200000 Time (Days) 14000 Delciotto 2 12000 10000 Daily Production (mscf) 8000 Del 2 Hist 6000 CMG 4000 2000 0 1/22/2010 5/2/2010 8/10/2010 11/18/2010 2/26/2011 -2000 Time (Days)
- 22. Delciotto 1 History Match 250000 Delciotto 1 200000 Cumulative Production (MMscf) 150000 100000 CMG Historical 50000 0 1/22/2010 5/2/2010 8/10/2010 11/18/2010 2/26/2011 -50000 Time (Days) 3000 Delciotto 1 2500 Daily Production (mscf) 2000 1500 Del 1 1000 CMG 500 0 1/22/2010 5/2/2010 8/10/2010 11/18/2010 2/26/2011 -500 Time (Days)
- 23. Graham 2 History Match 1600000 Graham 2 1400000 1200000 1000000 800000 Graham 2 600000 Modeled 400000 200000 0 1/22/2010 -200000 3/13/20105/2/20106/21/2010 8/10/2010 9/29/2010 11/18/2010 1/7/20112/26/2011 16000 Graham 2 14000 12000 10000 8000 Historical 6000 Modeled 4000 2000 0 1/22/20103/13/2010 5/2/2010 6/21/20108/10/20109/29/2010 11/18/20101/7/2011 2/26/2011 -2000
- 24. Pure Energy Consultants, LLC • Gas Produced 3.86 BCF • Recovery Factor 67% • With no additional Wells
- 25. Pure Energy Consultants, LLC