Petroleum & Natural Gas Resource Potential of Quebec Shales - Exploration & Production - Presented by Peter Dorrins President & Chief Operating Officer Junex Inc.
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 comparable…
Quebecs Oil & Natural Gas Potential Still Being Established Utica Shale Original Gas-in-Place (OGIP) Resource Potential National Energy Board of Canada (NEB) (2009) 120 Trillion Cubic Feet (TCF) or 3,400 Billion m3 Compilation of…
Oil & Natural Gas Exploration in Quebec Relatively Immature Compared to Other Areas Batiscan Discovery 450 wells drilled since 1859 into (Lowlands) 30 Paleozoic-aged rocks in Quebec Strategic Environmental ( 250 Ma ) Evaluation on…
Natural Gas An Important Source of Energy for Quebec Quebec spends about 2 billion annually for its Natural Gas needs, with 100% of this Natural Gas being transported from Alberta In terms of emissions from combustion, Natural Gas is…
Natural Gas from Shale in North America The Quebec Situation 100% of Quebecs needs Shipped Annually 200 Billion Cubic Feet (BCF) of Natural Gas MACASTY Quebec has Significant Potential for Natural Gas in Shale 5% (10 BCF) m ore…
Lets (talk) Rock Upper Devonian Carbonates Rocky Mountains, Alberta Photo by Peter Dorrins, 1979
Major Rock Types Igneous Rocks formed through solidification of molten magma through cooling, such as granites emplaced in the Earths crust or lavas expelled onto the surface (i.e. was liquidnow solid) Metamorphic Rocks former…
Utica & Macasty Shales in Quebec MACASTY UTICA
Petroleum & Natural Gas in Three Main Groups of Sedimentary Rocks Shales (may form source rocks and reservoir rocks) extremely fine-grained rock, formed by the deposition and compaction of clay, silt, or mud (i.e. river, lake-bottom…
Petroleum & Natural Gas in Three Main Groups of Sedimentary Rocks (contd) Sandstones (may form reservoir rocks) very fine to very coarse-grained, sand-sized particles that are naturally cemented together to form a rock (i.e. beach…
Petroleum & Natural Gas in Three Main Groups of Sedimentary Rocks (contd) Carbonates (may form reservoir rocks) limestones and dolomites formed through physical processes and/or organic activity that are naturally cemented to form a…
First Condition for Oil & Natural Gas: A Source Rock Shale with a high content of organic matter (i.e. carbon for hydrocarbons) Note Temperatures increase as one goes deeper into the Earths crust Organic-rich shale must have been…
Second Condition for Oil & Natural Gas: Reservoir Rock with a Trapping Mechanism Conventional or Buoyancy Reservoir Traps Reservoir rock, with good porosity and permeability, with impermeable layer above & laterally Structural…
Second Condition for Oil & Natural Gas: Reservoir Rocks with a Trapping Mechanism (continued) Unconventional or Continuous Accumulations Tight Sands (low porosity & low permeability) Coalbed methane (none in Quebec) Shallow…
What Exactly is Natural Gas in Shale (a.k.a. Shale Gas) Quebec Utica Shale in Quebec Utica Shale at Surface Core Montmorency Falls near Quebec City
Lets Look at Permeability The ability of a rock to transmit fluid (liquid or gas) through pore spaces under the effect of a pressure gradient Unconventional Conventional Tighter than Tight Tight Stimulations including Fracture…
On the Macro & Micro Scales Production of Natural Gas and Oil from Shales Initial production of free gas from fracture stimulated natural fractures within shale bed Drop in pressure from production causes desorption of gas on a…
How do we go about finding the Resource and getting it out of the ground
Step One Interpret Existing Geological Data and Acquire New Seismic Data 1. Company plans seismic program 2. Surveyors survey source and receiver locations 3. Seismic acquisition crew deploys array of geophones and cables 4.…
Step Two Interpret New Seismic Data & Integrate with Existing Geological Data, then Select a Well Location, then Prepare a Detailed Drilling Program Interpreted Interpretation Before
Step Three An Exploration Well is Drilled Before Drilling: Surface access lease signed with surface landowner Site is surveyed Obtain all regulatory approvals CPTAQ for work on agricultural land MRNF for work on forested lands…
Protection of Surface and Near-Surface During Drilling Operations Wooden Matting 10 cm of Sand Geotextile (with impermeable liner under drilling rig) Arable Soil Potable Water Cemented Aquifer Casing Surface…
Protection of Potable Groundwater and Safety during Drilling Operations Arable Soil Potable Water Acquifer Specialized Steel Specialized Casing (fabricated Cement according to (components American Petroleum per API…
Protection of Potable Groundwater and Safety during Drilling Operations Cross-section of Cemented Casing Strings All API-spec seamless tubular casing selected for subsurface conditions Casing is threaded together and tightened…
Footprint on the Ground While Drilling (duration of typically 15 to 45 days) Surface Area of an Exploration Wellsite 0.5 hectares ( 50m X 50m) Treed Area Agricultural Land
Development of Unconventional Resources such as Natural Gas in Shales Multiple horizontal wellbores at Stimulation by fracturing at depth drilled from one single depth surface drilling pad Source: Haliburton
Completion Fracture Stimulation Fracture Stimulation (frac) Surface footprint varies from A fluid pumped under high 0.5 hectares to 3 hectares in size pressure creates a fracture network out 200 m from the wellbore and approx 50m…
Footprint on the Ground During Fracture Stimulation Operations (duration of 2 to 10 days per well) JNX St-Augustin 1 October 2009
Propane Frac of Liquids-Rich Utica Propane frac selected due to presence of liquids-rich gas in Utica Taconic Front (overthrust) First propane frac of a Gas Shale in Eastern Canada Galt Shallowest frac of the Utica Shale thus far…
Footprint on the Ground During Production Single Wellhead Single Wellhead (prior to connection to natural gas (connected to natural gas pipeline prior to production) pipeline on production)
Footprint on the Ground During Production Multiple Horizontal Well Production on Single Surface Pad
Horizontal Wells & Hydraulic Fracturing A Progression Over Many Decades Drilling First true horizontal well drilled in 1929 in Texon, TX (U.S. DOE) Early development toward horizontal drilling took place during the early 1940s with…
Unlocking Natural Gas & Oil in Shales A Marriage of Technologies It all started in the Barnett Shale in the Fort Worth Basin in Texas In 1992, the first horizontal well drilled in Barnett Shale (Mitchell Energy) In 1997, the first…
Utica & Macasty Shales in Quebec MACASTY UTICA
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…
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
Quebec Shale Gas Plays 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 (Depth) Medium to Deep Structured (overthrust) Thermogenic Thermogenic Shale Gas Thermogenic Shale Gas Shale Gas Logans Line Yamaska Fault Zone Quebec City/St-…
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 & oil Taconic Front (overthrust) Junex…
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)…
What if .How Could Macasty Oil Potential Rank 2nd Annual Shale Development Strategies Houston Sept 12th to 13th 2012
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…
Significant Local Economic Benefits Are Essential From Direct Employment & Indirect Benefits Office: 15 people 9 Engineers & Scientists 6 Office Staff (finance, drafting, drafting, office) Field Operations: 20 to 30 people (when…
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…
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