The Utica Shale Play It All Started in Quebec Nature & Potential In collaboration with : Jean-Yves Lavoie, CEO Jean-Sbastien Marcil Jrmie Lavoie Presented by: Nabila Mechti Luc Mass Peter Dorrins Bertrand Marcotte President & COO…
Prospective Statements Prospective Statements This document contains prospective statements which state the expectations of management with regards to the growth, the operation results, the return and the commercial prospects and…
Junex A Leader in Exploration in Quebec Created in 1999 & listed on the TSX Venture Exchange in June 2001 and headquartered in Quebec City Holds exploration rights on 5 million acres in Quebec Key Player in the St. Lawrence Lowlands…
Junex was the First To publicly present the Utica Shale as a promising gas play in 2004 Pure play Shale Gas deal done in Quebec (Forest Oil in 2006) With partner Forest Oil, to announce that the Utica Shale properties were…
Part 1 Geological, Mineralogical & Geochemical Aspects of Quebec Shale Plays 2nd Annual Shale Development Strategies Houston Sept 12th to 13th 2012
Oil & Natural Gas Exploration in Quebec Relatively Immature 30 Total Number of Oil & Natural Gas Exploration Wells Drilled in Quebec 25 450 wells drilled since 1859 into Paleozoic-aged rocks Strategic Environmental Evaluation (ends…
Utica & Macasty Shales in Quebec MACASTY UTICA 2nd Annual Shale Development Strategies Houston Sept 12th to 13th 2012
Galt Total OIIP Resources of 260 MMBO Net Rec. Resources of 19.5 MMBO (NSAI P50) Lowlands Utica Shale Gas Taconic Front Play (overthrust) 800,000 net acres Total Undiscovered Prospective OGIP Resources 49 TCF Chaleurs Bay…
Utica Shale Gas Where and when did it start Lower Lorraine and Utica Shale Gas Mud gas log Gas in shales in the St. Lawrence Lowlands known for decades however low gas prices, little infrastructure, and lack of pertinent technologies…
NE North America Ordovician Shale Correlation 2nd Annual Shale Development Strategies Houston Sept 12th to 13th 2012
Southern Quebec Shale Gas Plays Exploration Activities A Tale of Two Basins 2006 to 2010 (Utica) X 30 wells 11 horizontal 200 million invested Emerging play Operators: Talisman (10 wells 5H) JUNEX (7 wells) Canbriam (6 wells…
Schematic Cross-Section X St. Lawrence Taconic Belt Volcanic Arc Acadian Belt X 3 Grenville Lowlands 5 2 4 4 1 Lorraine Sh. Utica Sh. Closing Sea Anoxic Beauceville Sh. Deep Anoxic Sedimentation St. Francis Sh. (Marcil et…
Southern Quebec Shale Gas Fairways To date, most operations have been performed in Play 1 - Medium to Deep Depth Shale Gas (1,000 - 2,000+ meters) in the central part of St Lawrence Lowlands Utica and Lorraine (700 to 2,500 m) -…
Saint Lawrence Lowlands Ordovician Shales Prospective Shale Intervals Ordovician-aged Utica Formation & Lorraine Formation Shales Industry is principally focused on Utica Shale at Lorraine this time Utica Utica - mainly black,…
Utica Play Fairways and Exploration Activities 2006 to 2010 (Utica) 30 wells 11 horizontal 200 million invested NW Emerging play Operators: Talisman (10 wells 5H) JUNEX (7 wells) Canbriam (6 wells 3H) Forest Oil (4 wells 3H)…
Utica Play Fairways NW SE Liquids-Rich Shallow to Medium to Deep Thermogenic Medium (Depth) Shale Gas Structured (overthrust) Thermogenic Thermogenic Shale Gas SE Shale Gas Logans Line Yamaska Fault Zone Quebec…
NW SE Utica Play Fairways Liquids-Rich Shallow to Medium Depth Thermogenic Shale Gas Thickness 100 to 220 m TOC 0.5 to 3% Maturity gas condensate to dry gas Gas Type thermogenic, liquids-rich Taconic Front (overthrust) Junex…
Mineralogy Lowlands Appalachians Lorraine Shale Utica Shale Beauceville Shale 30-40% Clay 0-20% Carb 50-70% Qtz Ordovician-aged Ordovician-aged Ordovician-aged 600 to 2000 m thick 100 to 500 m thick 500 m thick Arenaceous…
Geochemistry Paleozoic Shales - Measured Variation in TOC Analysis from Lowlands wells Results reported only for the Shale gas zone with the highest TOC Northeastern Lowlands Utica with the highest TOC and Lower Maturity 1%…
Permeability and Porosity Estimation of Pore Throat Aperture CT-Scan MACASTY Measure porosity Characterize fracture network Highlight sedimentary patterns (Lavoie et al, 2010) Oil molecule size ranges from 0.5 to 3 nm…
Ordovician Shale Thermal Maturity Regimes OIIP 33.5 mm bbl/mi bbl/mi * * From NSAI Sept 2011 Independent Assessment of Undiscovered Shale Oil Resources On Junexs Anticosti Acreage 2nd Annual Shale Development Strategies…
Liquids-Rich Gas Liquids-rich gas found in the NE Lowlands Taconic Coincidence of Liquids-Rich Front Belt with part of Shallow- Single instance of (overthr Junex St- St-Augustin No. 1 biogenic gas in ust) Medium Depth Shale Gas…
Ordovician Shale Thermal Maturity Regimes Anticosti Island OIIP 33.5 mm bbl/mi bbl/mi * * From NSAI Sept 2011 Independent Assessment of Undiscovered Shale Oil Resources On Junexs Anticosti Acreage 2nd Annual Shale…
Oil-Rich Macasty Shale Anticosti Island Anticosti Macasty Shale Oil Play 233,275 net acres Total Undiscovered OIIP of 12.2 Billion Bbls (NSAI P50) Oil or Liquids- Liquids-Rich Plays Natural Gas Plays 2nd Annual Shale…
Anticosti Island Macasty Shale Oil Potential JNX has significant land position of 233,275 net acres, mostly in the Deep Macasty Fairway (364 mi2) 12.2 Billion Barrels Undiscovered Shale Oil Initially-in-Place (OIIP) (NSAI P50) on JNX…
Anticosti X-Section Deep Macasty Fairway Macasty Shale is the stratigraphic equivalent of the Utica Shale Lowlands Thicker in Deep Macasty Fairway than on other side of Jupiter Fault zone (ave. 80m vs 40m at Chaloupe well)…
Geochemical Parameters from Rock-Eval Remaining Hydrocarbons S1 amount of free oil and gas already generated in the rock S2 amount of hydrocarbon generated from thermal cracking of non-volatile organic matter (kerogen) Tmax…
Eagle Ford S1 / (S1 + S2) = Already generated hydrocarbon to potential hydrocarbon ratio 2nd Annual Shale Development Strategies Houston Sept 12th to 13th 2012
Lowlands Utica Shale S1 / (S1 + S2) = Already generated hydrocarbon to potential hydrocarbon ratio 2nd Annual Shale Development Strategies Houston Sept 12th to 13th 2012
Anticosti Island Macasty Shale Deep Fairway Outside of Deep Fairway (shallow side of Jupiter Fault) S1 / (S1 + S2) = Already generated hydrocarbon to potential hydrocarbon ratio 2nd Annual Shale Development Strategies…
Comparison of Macasty to Utica & Eagle Ford S1 / (S1 + S2) S1 / (S1 + S2) = Already generated hydrocarbon to potential hydrocarbon ratio 2nd Annual Shale Development Strategies Houston Sept 12th to 13th 2012
Comparison of Macasty Deep Fairway to Ohio Utica & Eagle Ford S1 / (S1 + S2) S1 / (S1 + S2) = Hydrocarbons already generated to Potential hydrocarbon ratio S1 / (S1 + S2) = Already generated hydrocarbon to potential hydrocarbon…
Part 2 Quebec Shale Plays Results to Date 2nd Annual Shale Development Strategies Houston Sept 12th to 13th 2012
Southern Quebec Shale Wells 07 08 (Utica & Other) Well Vertical Max 1000 Horizontal Rates in mcf/d 2nd Annual Shale Development Strategies Houston Sept 12th to 13th 2012
Southern Quebec Shale Wells 08 (Utica & Other) Well Vertical Max 1000 Horizontal Rates in mcf/d 467 H 100 - 800 800 300 450 2nd Annual Shale Development Strategies Houston Sept 12th to 13th 2012
Southern Quebec Shale Wells 09 (Utica & Other) Well Vertical Max 1000 Horizontal Rates in mcf/d 467 2600 (700) 12,000 (5,300 - 30-day) H 100 - 800 800 300 450 1800 100 2nd Annual Shale Development Strategies Houston Sept…
Southern Quebec Shale Wells 10 (Utica & Other) Well Vertical Max 1000 Horizontal Rates in mcf/d 467 2600 (700) 12,000 (5,300 - 30-day) H 100 - 800 800 300 450 1800 100 2nd Annual Shale Development Strategies Houston Sept…
Propane Frac of Liquids-Rich Utica Propane frac selected due to presence of liquids-rich gas in Utica Little formation damage should be induced (propane already present in gas, no phase trapping) Rapid frac fluid clean-up with high…
Propane Frac of Liquids-Rich Utica First Shallow fracture stimulation of the Utica Shales (depths 436.5 to 473.5 meters) Perfed then acidized with 1 m3 HCl Followed by injection of 61 tons of sand propelled by 251,000 L of propane…
Oil-Rich Macasty Shale Anticosti Island Anticosti Macasty Shale Oil Play 233,275 net acres Total Undiscovered OIIP of 12.2 Billion Bbls (NSAI P50) Oil or Liquids- Liquids-Rich Plays Natural Gas Plays 2nd Annual Shale…
Anticosti Island Macasty Shale Oil Potential JNX has significant land position of 233,275 net acres, mostly in the Deep Macasty Fairway 12.2 Billion Barrels Undiscovered Shale Oil Initially-in-Place (OIIP) (NSAI P50) on JNX lands…
What if .How Could Macasty Oil Potential Rank 2nd Annual Shale Development Strategies Houston Sept 12th to 13th 2012
Galt Total OIIP Resources of 260 MMBO Net Rec. Resources of 19.5 MMBO (NSAI P50) Taconic Front (overthrust) Chaleurs Bay (overthrust, etc) Oil or Liquids- Liquids-Rich Plays Natural Gas Plays 2nd Annual Shale…
Galt Oil Property Independent Evaluation performed by NSAI in 2010 on Lwr. Devonian Forillon Limestone 260.2 Million Bbls Total Gross OOIP Resources including: 26.3 million bbls Discovered Contingent Resources 233.9 million bbls…
Galt No. 3 Well Forillon Formation Oil Two oil-rich intervals in Forillon recognized Oil Shows present in interval Oil Effect Crossover Effect observed indicating presence of producible hydrocarbons 2nd Annual Shale…
A Reminder About Resources The Utica Shales potential is promising so far some of the Utica in certain areas of the Lowlands have been classified as being Prospective Resources (i.e. Junex Total Undiscovered Prospective OGIP 49…
+ ES 20 ERV S RE 5 Quebec Shale Development Status t Re so urc es 4 en Commercial (Utica & Macasty) Co nt i ng 3 Development (reclamation in part) s rce sou Barnett ve Re 2 Pilot Production t i Marcellus ec…
Conclusions The Prize Quebec Shales Widespread source rocks Utica, Lorraine & Macasty Shales Hi-quality resources - High BTU (heating value) Liquids-rich Gas and Oil Demonstration of gas production rates (Utica) Existing…
In the Heart of the Utica Play Thanks Taconic Front (overthrust) Galt Haldimand Gasp Peninsula St. Lawrence Lowlands Chaleurs Bay (overthrust, 1,5 million acres etc) Appalachians Sub-basin Shale Gas Play 1.8 million…