? Top tier asset ? 146,000 net acres in heart of Midland Basin ? Top tier operator after less than a year ? Culture of innovation and operating excellence ? Q3 production of 46 MBOE/d, up 28% since Q2 ? Production up 50% from…
INNOVATION AT WORK Encana?s R&D Lab Is In The Field Encana?s five key categories of innovation 1. Well spacing in three dimensions in complex reservoirs 2. Targeting the best pay with advanced reservoir characterization &…
ENCANA PERMIAN: A TOP TIER ASSET Source: ITG IR (October, 2015) Midland Basin Delaware Basin Central Basin Platform Wolfcamp Structure Map (TVD)
THE PERMIAN MIDLAND BASIN GEOLOGY Development Through Time ~50 million years : ~5,000? Permian section deposited and preserved Midland Basin becoming more well developed Shallow carbonate dominated shelf around the margins of the…
THE PERMIAN MIDLAND BASIN GEOLOGY Depositional Environment View from Northwest ? Shallow marine to slope deposition ? Over 5,000? section of oil saturated rock ? Shallower deposits ? Interbedded sand, shale and limestone ?…
THE PERMIAN Wolfcamp Core Bleeding Oil Leafy Debris/Imprint Source: Encana Encana 4,200? of Core
THE PERMIAN MIDLAND BASIN GEOLOGY Stacked Resource Potential Glasscock Howard Martin Midland Upton Middle Spraberry - - 180 110 Lower Spraberry 145 140 210 350 Wolfcamp A 430 405 305 545 Wolfcamp B 230 - - 390 Wolfcamp C,…
5 0 10 15 20 25 30 35 40 Midland Martin Reagan Upton Glasscock Andrews Howard Ector Yoakum Scurry Crane Gaines Irion Dawson Permian Industry Rig Count ENCANA PERMIAN 2015 Activity 2015F Program (Net) ? Wells…
? 21 of 34 Encana field records were set in Q3 2015 ? Spud to rig release days down 12% from Q2, 25% from Q1 ? Recently drilled 3,441? of lateral in one day ? Record cased hole cost of $2.2 million DRILLING 0 2,000 4,000 6,000…
DRILLING & COMPLETIONS INNOVATION Top Tier Operator In Less Than One Year ? Enhancing the value of Encana?s future inventory ? Fit-for-purpose rigs ? Simultaneous operations ? Optimizing bit and casing design ? Currently drilling…
ENHANCING CAPITAL EFFICIENCY How We?ve Gone From >$8.5MM to $6.4MM ? Simultaneous operations ? Achieving 10 fracs / day ? Reduced spud to initial production by ~30 days ? Fit-for-purpose drilling rigs ? Pacesetter well in Q3 - 14…
PRODUCTION PERFORMANCE IMPROVEMENTS How We Are Delivering Top Wells In The Play ? Best rocks ? Encana land situated in northern/central sweet spot of the Midland Basin ? Detailed resource assessment confirmed reservoir quality ?…
PERMIAN TOP TIER PERFORMANCE Delivering Quality Returns ? Top tier cost performance ? D&C costs down $2MM/well since acquisition ? D&C costs of $6.4MM/well in Q3, down 9% from Q2 ? Top tier production performance ? Core of the core…