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JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada

Natural Resources Canada · Jun 24, 2013 · 45 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 1
    Characterizing The Duvernay Petroleum System In Terms Of TOC, Oil-In-Place, Thermal Maturity And Using This Data To Identify Play Fairways And Opportunities Kirk Osadetz and Zhuoheng Chen Geological Survey of Canada, Calgary 1
  2. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 2
    Shale Hosted Petroleum Resource Assessment Project a NRCAN project under Geoscience for New Energy Supply (GNES) Program with an EcoEII activity on shale gas resource methodology development (2012-2016) 2
  3. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 3
    Why shale hosted petroleum assessment Shale hosted petroleum has a profound impact on Canadas economy hosts huge amount of oil and gas resources competes with Canadas traditional petroleum resources changed industry practice on…
  4. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 4
    Major shale plays in N. America (Boyer et al 2011) 4
  5. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 5
    Why new methodology Conventional play resource assessment methodologies, such as the PETRIMES of GSC, are designed to project the number and size of discrete hydrocarbon accumulations Size by Rank within distinct structural or…
  6. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 6
    Why new assessments Industry has its own methods and results are kept confidential for their internal use. In the public domain, resource estimates are generated for different purposes, and conducted with different methodology and…
  7. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 7
    Assessments from different sources vary Five major western Canada shale basins contain 1326 TCF risked in place (U.S. Department of Energy, World Shale Gas Resources, 2011) CSUR (2010) Canada shale gas: 1111 TCF in place and tight…
  8. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 8
    Industry estimates, shale gas USGS(2011), 84.2 TCF ERCB (2012): 2133 TCF in place Horn River NEB-BC Gov.(2011): 89 TCF recoverable AAPG committee (2011): 250 TCF, USGS (2012): 36.6 TCF (from CSUR, 2013) 8
  9. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 9
    Industry estimates, shale oil USGS (2010): 3.6Bbbls EIA (2011): 3.35 Bbbls USGS (2012): 0.91 Bbbls EIA (2011): 15 Bbbls (from CSUR, 2013) 9
  10. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 10
    Methodology design based on characteristics of continuous resource plays, state of exploration and development (geological and production data availability), the needs from various stakeholders in Canada. 10
  11. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 11
    Features of the methodology methodology must be flexible enough to adapt to situations ranging from little or no well data to thousands of production wells, easy updating when new data become available, provide in place as well as…
  12. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 12
    Methodology under development includes four parts a volumetric approach for the in place resource estimation, a productivity-based approach for estimating the recoverable resource (if no production data available, simulated…
  13. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 13
    Method Output resource density maps outlining spatial variation of the resource potential tables and figures summarizing total resources and uncertainty ranges depending on data availability, the uncertainty associated with the…
  14. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 14
    Examples of method under development Alberta Duvernay Shale BC Horn River Shale Quebec Utica Shale 14
  15. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 15
    Duvernay shale A well-known & well studied source rock in Devonian petroleum system, WCSB A large dataset consisting of : 17000 conventional vertical wells penetrated Core/cutting samples and analysis results well logs for…
  16. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 16
    Two volumetric approaches Organic porosity-based assessment Assumptions: when kerogen converted to HC, it generates organic porosity saturated with HC remaining oil and gas in organic pores represent the in place potential Well…
  17. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 17
    Data required Organic porosity-based assessment Rock-Eval pyrolesis data Kinetic models Formation volumetric inputs: net thickness, area extent, Well log-based assessment Well log data Interpretation (calculation) models…
  18. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 18
    Organic geochemistry-based assessment Wells with core sample Rock-Eval ERCB, 2011 18
  19. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 19
    Burial depth to top of Duvernay 6 x 10 Burial depth at fm. top, Duvernay 6.4 5000 4500 6.3 4000 6.2 3500 6.1 3000 6 2500 2000 5.9 1500 5.8 1000 5.7 500 5.6 -1 0 1 2 3 4 5 6 5 x 10 19
  20. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 20
    Duvernay gross thickness (m) 20
  21. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 21
    Geochemical characteristics of Duvernay shale, GSC Rock Eval dataset 21
  22. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 22
    Oil generated, Duvernay 22
  23. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 23
    Oil in place estimated from S1 Mean: 69.8 Bbbls in place 23
  24. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 24
    Gas in place from volumetric Mean: 511 TCF in place 24
  25. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 25
    Problems & possible solutions Only one or a few samples in some of wells, coverage representation is inadequate 5g of sample results represent reservoir rock property at scale of 10-50 tons, up-scaling is required Well log…
  26. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 26
    Well log-based assessment Well locations penetrated Duvernay Fm. Red line marks carbonate platform or reefs 17000 wells penetrated Duvernay Fm 26
  27. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 27
    Well log analysis for identifying shale resource anomaly Well location 27
  28. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 28
    Well logs 28
  29. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 29
    Shale and conventional reservoirs identification 29
  30. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 30
    Immature Duvernay Shale 30
  31. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 31
    Immature Duvernay Shale 31
  32. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 32
    Volumetric calculation from log derived parameters 6 x 10 Oil in place, m3 rock x 10 6 6.4 3 6.3 6.2 2.5 6.1 2 6 1.5 5.9 1 5.8 5.7 0.5 5.6 -1 0 1 2 3 4 5 6 5 x 10 Mean oil in place: 129.8 Bbbls 32
  33. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 33
    Volumetric calculation from log derived parameters 6 x 10 Gas in place, m3 x 10 9 6.4 4 6.3 3.5 6.2 3 6.1 2.5 6 2 5.9 1.5 5.8 1 5.7 0.5 5.6 -1 0 1 2 3 4 5 6 5 x 10 Mean gas in place: 504.7 TCF 33
  34. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 34
    Problems & Solutions Oil in place inconsistent with organic porosity- based estimate Waiting for more accurate estimates of reservoir properties Generation kinetic models 34
  35. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 35
    Horn River case study BC MEM & NEB, 201) (figures from Close et al. 2012) 35
  36. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 36
    36
  37. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 37
    Performance based method Well EUR The recoverable resource R is calculated by A R p( g ) p( p) Q S A: non-controlled area S: well drainage; Q: well EUR p(g) and p(p) probabilities of resource and at least one well economic…
  38. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 38
    Production Decline Models Valko Model An empirical model Validated for wells with both transient and stabilized flow horizontal, multi-stage fracing wells Arps Model Designed for conv. reservoirs Requires a non-transient flow…
  39. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 39
    Production curves, Horn River 39
  40. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 40
    Production curves, Horn River 40
  41. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 41
    Estimated EURs, Horn River 41
  42. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 42
    Recoverable from well EURs Triangle distr. Mode 8000 km2 Min. 4600 km2 Max. 10000 km2 Triangle distr. Mode 8 wells/sect Min. 4 wells/sect Max. 10 wells/sect Median: 142 TCF 42
  43. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 43
    Next steps Improve the volumetric models Calibration Bayesian inference Computer modeling of production curve where no production data is available Analog database Analogous criteria Performance-based data North American…
  44. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 44
    Updated volumetric EURs from well-performance EURs (Hood et al, in press) 44
  45. JUNE 2013 INVESTOR PRESENTATION – Natural Resources Canada – slide 45
    Thank you

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