NEXEN NEBC SHALE GAS UPDATE
Shale Gas Land Position
• 180,000 net acres
• Horn River is in
Development Phase
• Liard and Cordova are in
Exploration phase
3000 psi
9000-14000 psi
5000 psi
1
UPDATED HORN RIVER LAND MAP
•
~90,000 Nexen /
IGBC gross
acres
•
Good well
control due to
competitor
drilling
•
Approx. 2400
sections in
Basin
•
Approx. GIP for
basin of 500
TCF
Cabin and Spectra
plants
2
PAD DRILLING APPROACH
HORN RIVER
DEVELOPMENT PLAN
Ootla
43 km
• Map is illustrative only and
subject to change as
additional knowledge acquired
or technical advances made
Etsho
HORN RIVER – PAD STATUS
18 well pad – Drain
~3.5-4 sections from
one pad: as wells
become longer , area
drained will increase
and fewer pads are
required
4
IMPACT OF PAD APPROACH TO
DEVELOPMENT TO 4 SECTIONS (2560
ACRES) AREA
• Old Conventional Approach:
– 20 individual well pads with associated roads and pipelines
– Initial disturbance(roads,pads,burrow pits,pipelines,plants): ~8-10%
(205-256 acres)
– Long term disturbance( roads; unreclaimed pad area;plants): ~6%
(154 acres)
New Pad Approach:
-1 slightly larger pad for 20 wells
-Initial Disturbance(roads,pads,burrow pits,pipelines,plants): ~4%
(102 acres)
-Long Term disturbance (roads;unreclaimed pad area;plants): ~2%
( 51 acres)
5
HORN RIVER MULTI-WELL PADS
•
~200 bcf per section OGIP in the Muskwa, Otter Park
and Evie shales; ~180m shale section
•
20 wells per pad resulting in 4-5 square miles of
developed resource
•
Excellent quality shale, over pressured with high quartz
and carbonate, low clay content, high TOC
•
Brittleness, over pressure and complex burial history
has generated a high degree of natural fracturing
•
3 levels of wells
Downtown Calgary
4-5
NEBC SHALE GAS
MANAGING FOOTPRINT TO MINIMIZE IMPACT
~3-5 months
~10 months
20-30 years
180 meters
C1J Pad
C1J Pad
C1J Pad
• Approximately a 2 year cycle time from drilling phase to
bringing pad on production
• Development will be a rolling progression of this approach
7
IMPACT OF INDUSTRY IMPROVEMENTS IN
PERFORMANCE
-Shale gas has to compete in low natural gas price environment; only
low cost producers will suceed
-Liard, Horn River and Cordova dry gas with no liquids
-Need to accomplish more for less in terms of spend
-Need to improve well rates and reserves; Horn River wells are 3-4
times more productive than Montney wells
Following slides will show progress made to date:
-We have cut our execution time in half !!!!
-Example: We finished 18 well pad completions
with some simulataneous (fraccing,plug,drilling,
flow backs) operations 14 days quicker than 9
wells in previous year
8
DRILLING PERFORMANCE: SPUD TO RR
INCLUDING CASING/CEMENTING
Nexen Horn River
xx
9
DRILLING OPERATIONS; INDUSTRY
RECORD
•
•
•
•
Nabors 16 Rig
Typical time to drill: 11 to 16 days
Rotary steerable bit utilized
Allows for straighter laterals in the horizontal
section.
10
HORN RIVER: B-77-H PAD – DECEMBER
2012 NABORS 16 RIG
• Approx. 180 feet high; 1.2
million pounds
11
FIT FOR PURPOSE RIGS
HORN RIVER DRILLING
•
Stompers for Walking – move Rig in any direction with 5,000 m of pipe standing in the derrick
•
Stompers also able to continuously level and centre rig; rig move to next well & spud : 24 hours
12
BIFUEL: 50-60% DIESEL SUBSTITUTION
WITH NATURAL GAS
Currently on Drill rigs; soon to be on frac pumpers
13
WELL DESIGN ADVANCEMENT; RECOVER
RESERVES UNDER PAD
• Negative “fish-hook” builds
• Increased Hz length – Less
Pads
Pad
Avg.
TD
(m MD)
Lateral
Length
(m MD)
b-18-I
4,467
1,738
c-1-J
4,689
1,910
b-77-H
4,756
2,218
d-37-H (south)
5,211
2,616
5400 mMD; average at 16 drilling
days (including casing); fastest
well 4750 m in 10.8 days; most
recent well 5050m in 11.5 days;
drilled from surface casing shoe
to TD (4200m) on one bit
14
ACHIEVING INDUSTRY LEADING
PERFORMANCE – TECHNOLOGY
Technology
•
Rig Walking system
•
Casing design (P110S)
•
New Bit designs
•
Mud motors and MWD to reliably handle temperature
•
Enhanced mud systems to clean and stabilize borehole
•
Rotary steerables for smoother wellbores
•
Diesel substitution by natural gas
•
Geosteering to stay in fast drill zones
•
Learned which wellbore paths have hole stability issues
15
NEBC SHALE GAS COMPLETIONS: EACH
FRAC ~ 200 TONNES SAND; 2500M3 H2O
Nexen Dilly Creek
Completions Performance Fracturing Operations
3.5
3.5
6.3
6.9
b-18-I
c-1-J
b-77-H
d-37-H
1.7
a-16-I
9.0
Nexen Dilly Creek
Completions Performance-Wellbore Prep
8.0
Nexen Dilly Creek
Completions Performance Plug Drillouts
7.0
Time to clean out
well with a bit to
ensure well could
be toe perforated on
tractor
6.0
5.0
4.0
7
6
5
4
3.0
2.0
1.0
0.0
a-16-I
b-18-I
c-1-J
b-77-H
Well
preparation
time with a rig
or CT was
reduced to
ZERO in 2013
with the use of
d-37-H
toe initiation
tools.
6.3
3
2
3.4
1
1.7
2.5
0
a-16-I
b-18-I
c-1-J
b-77-H
d-37-H
16
HORN RIVER: D-37-H FRACING – JULY 2013
250 fracs; 37 days (Industry
Leading 6.9 fracs / day);
47000 tonne sand (1175 BTrain Trucks); ~17,000
m3/day water
17
FRAC SAND TENT: STORES 26000 TONNE;
650 B TRAIN TRUCKS; ¼ OF 20 WELL PAD
SAND REQUIREMENT
18
SAND TENT – AUGUST 2012: FLOOR AREA
LARGER THAN HOCKEY RINK
19
APRIL 2014: ½ OF SAND TENT
20
HORN RIVER: D-37-H FRACING – JULY 2013
21
HORN RIVER: D-37-H COIL TUBING PLUG
DRILLOUTS – AUGUST 2013
Industry Leading 6.3
plugs / day / coil unit
22
SURFACE WATER WITHDRAWLS
Concept: Capture water during Spring
Freshet/Rain events and store in
burrow pits till needed for fraccing
23
HORN RIVER: USING DEBOLT SOUR SALT
WATER FOR FRACING
Debolt top is 645m in depth below
surface
Total thickness: 83m
Estimated porosity is 35% over
current wells
Enough volume to frac 2000 +
wells at 80,000 m3/well.
Reservoir Pres: 4550 kPa (~6.4
kPa/m)
Debolt water contains ~ 22,000
TDS
80 ppm of H2S in water phase
Gas Water Ratio = 1.35 m3/m3
Flashed gas contains:
- 57% C1
- 42 % CO2
- 0.5% H2S
A
A’
-Ocean Water has about 35,000 TDS
24
PRODUCTION ENGINEERING
PRESSURIZED FRAC ON DEMAND (PFOD)
(Patented)
2
5
HORN RIVER: D-37-H NEXEN PATENTED /
OWNED FRAC PUMPER; CAPABLE OF
PUMPING SOUR DEBOLT WATER
26
FURTHER INNOVATION:
PUMPING UNTREATED DEBOLT WATER WITH CONVENTIONAL
PUMPERS
Potential to eliminate requirement for water treatment plant and specialized
pumpers – Using Conventional PD Pumps:
• 2013: high pressure suction test
• April 2014: Pilot test w/ Trican pumps – successfully pumped 32,000 m³ of Debolt
water; controlled releases of Debolt water to understand H2S hazard
27
Summer 2014
PAD LAYOUT
SILICA
ZONE
Successfully pumped
Debolt water at 3
m3/min with
conventional frac
pumpers; 42000 m3
Debolt water pumped
HOT ZONE
DEBOLT / HOT
ZONE
Successfully used
bifuel on frac
pumpers
HORN RIVER: TSEA & ETSCHO GAS
PLANTS – SEPTEMBER 2012
Etscho Plant : 65
mmcfd
Tsea Plant: 160
mmcfd current
thruput; 400
mmcfd design
29
HORN RIVER: TSEA GAS PLANT –
SEPTEMBER 2012
Main rack/flare design 400 mmcfd
Inlet Separator: ~ 45’ x 10’
Secondary Separator: 12’ x 5’
2 x Glycol Dehydration Units: 38’ x 5’
3 x Recip. Comp Units: 5000 hp/unit
Current Capacity: 150 to 160 MMscfd
Expandable: Up to approximately 400 MMscfd
Phase 1 Construction: 9-12 months
30
HORN RIVER: PLUGLESS COMPLETION
TECHNOLOGY(PATENT PENDING)
• Unconventional Resources Technology Conference
• Aug 25-27, 2014: Denver, Colorado
• “SPE # 1922407:Horizontal Shale Gas Well: Frac’ing Unplugged”
• 126 fracs done to date with no plugs or mechanical diversion between frac
stages
• Successfully frac’d one complete well (25 stages) using plugless approach in
2013
• Successfully Frac’d 2 complete wells ( 17 & 18 stages) in 2014
31
PLUGLESS DESCRIPTION
3
2
2013: D-37-H Plugless Design
37-H PEER COMPARISON
Plugless Experiment Evolution – Full Wellbore Test
• Injectivity is within the
same range as isolated
stages
Plugless
Isolated
Injectivity (rate/pressure)
m3/min/MPa
• Microseismic shows good
stimulation of plugless
stages
3
4
PRODUCTION COMPARISON HRB
3
5
Benefits of Plugless Fracturing
Eliminate the cost, time & risk of plugs and drillouts; Save Big $$$
•
Stuck motors & plugs; Lost production due to well bore problems
Enables longer lateral lengths beyond the limits of coiled tubing
•
Reduces number of surface locations
Potential to eliminate the need for coiled tubing; simply flow well to clean
wellbore
•
Shorter operational window on pad;Less disturbance of nearby residents
Good method to deal with operational problems
•
Off-depth perforations, leaks in completion string, pipe restrictions
Leaves fully open wellbore
•
Can do prod logs; can do scale cleanouts & other wellbore interventions
Shorten time between completion and production
•
Faster payout
Plugless Fracturing
Patent pending
Canadian Patent Application No. 2,795,940
Nexen is interested in working with other
operators to design and trial this process
For further information, contact:
Nexen Energy ULC
NEBC Shale Team
Attn:
Peter Chernik, Project Manager NEBC Shale Gas
Email: [email protected]
Phone: +1 403 699 6679
Cel: +1 403 807 9361
QUESTIONS
15,000 psi frac wellhead
38