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December 2012 Investor Presentation – Reliance Energy Inc

Reliance Energy Inc · Dec 5, 2012 · 35 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. December 2012 Investor Presentation – Reliance Energy Inc – slide 1
    WOLFBERRY PART 1: Optimum Vertical Intervals Examining The Optimum Vertical Interval Length When Drilling Multiple Zones In The Wolfberry December 5, 2012
  2. December 2012 Investor Presentation – Reliance Energy Inc – slide 2
    Reliance Energy Wolfberry Production US Privately owned company - founded in 1988 Operations in Permian, Arkoma, S Texas, NM Lease position of over 120,000 Acres Production- 14,000+ BOEPD 2
  3. December 2012 Investor Presentation – Reliance Energy Inc – slide 3
    Reliance Core Wolfberry Acreage 3
  4. December 2012 Investor Presentation – Reliance Energy Inc – slide 4
    Reliance Core Wolfberry Acreage War Admiral Wyoming Colorado Oklahoma New Mexico Arkansas Andrews Martin Texas Man O War Ector Gallant Fox Midland 4
  5. December 2012 Investor Presentation – Reliance Energy Inc – slide 5
    Wolfberry Development History 2007-Began Development Very Small Staff No Spraberry drilling or completion experience Internal Very little geologic expertise in house Couldnt even spell Wolfberry No Cash Flow to start with very little…
  6. December 2012 Investor Presentation – Reliance Energy Inc – slide 6
    Wolfberry Development History 2007 Wolfberry Development West of Acreage Very Sparse Spraberry Development was Virtually All East of Acreage Common Belief: Wolfberry Played Out to the West Shelf Edge in 2007 Reliance Needed to…
  7. December 2012 Investor Presentation – Reliance Energy Inc – slide 7
    Wolfberry Development History Study of Area Most Completion Stopped 200 into the Wolfcamp 51 Completions Went Spraberry Dean Wolfcamp Cline Strawn Deeper A Strong Trend Developed Spraberry Dean Wolfcamp B Spraberry Dean…
  8. December 2012 Investor Presentation – Reliance Energy Inc – slide 8
    Completion Evolution-Initial Wolfberry Clearfork, Upper Typical and Lower Wolfberry Spraberry le4 Completion 2003-2007 Behind Pipe Industry 2002-2007 The current Slickwater Wolfberry Frac design costs 300k per well…
  9. December 2012 Investor Presentation – Reliance Energy Inc – slide 9
    Initial Area Wolfberry Typical Area Completions 2003 + Spraberry-Upper Wolfcamp A Top 200 of Wolfcamp Completion Interval 8200-10,200 30 Day IP 60 BOPD, 90 MCFPD EUR Average - 110 MBOE 90% Oil/NGL, 10% Gas 9
  10. December 2012 Investor Presentation – Reliance Energy Inc – slide 10
    Wolfberry Development History Work on Depth of Completion Networked with Basin Geologists Spraberry Dean Wolfcamp Cline Strawn Findings: Wolfcamp B&C and Penn Cline Silts/Shales Offered Reserves Spraberry Dean Wolfcamp B…
  11. December 2012 Investor Presentation – Reliance Energy Inc – slide 11
    Reliance Generation 1 - Pennberry Clearfork, Upper Typical and Lower Wolfberry Completion Tested Cline Zones Separately Spraberry le4 Behind Pipe 2003-2007 Cline Thinly Laminated Silt-Shale-Carbonate Sequences 20-35…
  12. December 2012 Investor Presentation – Reliance Energy Inc – slide 12
    Reliance Generation 1 - Pennberry Spraberry- Wolfcamp Cline Reliance Phase 1- 8200-10,950 Wolfberry 12 Wells 30 Day IP 70 BOPD, 99 MCFPD EUR Average - 140 MBOE 90% Oil/NGL, 10% Gas +700 Depth +30MBOE 12
  13. December 2012 Investor Presentation – Reliance Energy Inc – slide 13
    Reliance Generation 2 - Strawberry Sidewall Core-Strawn Tight Carbonate Significant Secondary Porosity Clearfork, Upper Typical and Lower Wolfberry Completion Completed Strawn Stage Spraberry le4 Behind Pipe 2003-2007…
  14. December 2012 Investor Presentation – Reliance Energy Inc – slide 14
    Reliance Generation 2 - Strawberry Spraberry- Wolfcamp Cline- Strawn Reliance Phase 2- 8200-11,200 Strawberry 32 Wells 30 Day IP 75 BOPD, 126 MCFPD EUR Average - 196 MBOE 87% Oil/NGL, 13% Gas +200 Depth +56 MBOE 14
  15. December 2012 Investor Presentation – Reliance Energy Inc – slide 15
    Reliance Generation 3 - Atokaberry Clearfork, Upper Typical and Lower Wolfberry Spraberry le4 Completion 2003-2007 Behind Pipe Reliance Reliance Completion Completion 2007-2009 Include Strawn Reliance Reliance…
  16. December 2012 Investor Presentation – Reliance Energy Inc – slide 16
    Reliance Generation 3 - Atokaberry Spraberry-Wolfcamp-Cline- Reliance Phase 3- Strawn-Atoka Atokaberry 8200-12,000 67 Wells 30 Day IP 80 BOPD, 185 MCFPD EUR Average - 246 MBOE 82% Oil/NGL, 18% Gas +650 Depth +50 MBOE…
  17. December 2012 Investor Presentation – Reliance Energy Inc – slide 17
    Development Results 246 MBOE 196 MBOE 140 MBOE Year 1 2 3 4 5 6 17
  18. December 2012 Investor Presentation – Reliance Energy Inc – slide 18
    Reliance Wolfberry Economics 18
  19. December 2012 Investor Presentation – Reliance Energy Inc – slide 19
    WOLFBERRY PART 2: Completion Strategies Analyzing Production Performance Seen From Different Perforation Selections, Frac Fluids And Pumping Volumes In The Vertical Wolfberry
  20. December 2012 Investor Presentation – Reliance Energy Inc – slide 20
    Completion Strategies Perforation Selection Frac Zone Selection Frac Fluid/Sand Selection 20
  21. December 2012 Investor Presentation – Reliance Energy Inc – slide 21
    Completion Strategies Perforation Selection - Varied over 5 Years One 20 Perf Cluster Entry Issues Inconsistent Frac Height Fear of Lost Zone Stimulation Increased Stages 3-9 Perf Clusters - Settled on 4-5 Better Stage Coverage…
  22. December 2012 Investor Presentation – Reliance Energy Inc – slide 22
    Completion Strategies Frac Zone Selection Initially Stayed in High Resistivity Zones Perf Similar Lithology Skipped Zones in Wolfcamp C, Strawn Skipped Zones due to Inconsistent Frac Height Added Wolfcamp C, Strawn, Atoka Core…
  23. December 2012 Investor Presentation – Reliance Energy Inc – slide 23
    Completion Strategies Frac Fluid/Sand Selection Cross Linked Gels Varied 8 /Gal to 20 /Gal Cross Linked Rates Varied 50 BPM 100 BPM Frac Heights Greater than expected-Particularly Spraberry Gel Concentration Forced Down-More. No…
  24. December 2012 Investor Presentation – Reliance Energy Inc – slide 24
    Completion Strategies-Changing 2012 - Issues Drive Change 1.Reservoir Issues - Spraberry Zone Thieving 2.Completion IssuesRecover Load Faster w/o Increasing Costs 3.Economic Issues - Rapidly Escalating Gel and Frac Costs 24
  25. December 2012 Investor Presentation – Reliance Energy Inc – slide 25
    Reliance Generation 4 Clearfork, Upper Typical Crossflow and Lower Wolfberry Spraberry le4 Completion 2003-2007 Behind Pipe Reliance Reliance Completion Completion 2007-2009 Include Strawn AtokaDean Reliance…
  26. December 2012 Investor Presentation – Reliance Energy Inc – slide 26
    Changing Completion Strategies 2012 - Issues Drive Change 1. Reservoir Issues in Vertical Completions Significant Reservoir Pressure Differences Bottom to Top-3500 ft Spraberry Zone Thieving Completion Evidence Spraberry Lose…
  27. December 2012 Investor Presentation – Reliance Energy Inc – slide 27
    Reliance Generation 4 AtokaDean Slick Water Clearfork, Upper Typical Crossflow and Lower Wolfberry Spraberry le4 Completion 2003-2007 Behind Pipe Reliance Reliance Completion Completion 2007-2009 Include Strawn…
  28. December 2012 Investor Presentation – Reliance Energy Inc – slide 28
    Changing Completion Strategies 2012 - Issues Drive Change 2. Completion Issues Recover Load Faster w/o Reliance Completion War Admiral Days Completion Days Increasing Costs Coil Tubing Drill Outs Too Expensive Flow Back Plugs…
  29. December 2012 Investor Presentation – Reliance Energy Inc – slide 29
    Changing Completion Strategies 29
  30. December 2012 Investor Presentation – Reliance Energy Inc – slide 30
    Changing Completion Strategies First 27 Wells Slick Water Vs 44 Wells All Zones Gel Frac Atoka- Spraberry/Clearfork Reduced Initial Well Costs by 250k/well BOE basis-Slickwater Completion Performance (Slickwater vs. Gel) yielding…
  31. December 2012 Investor Presentation – Reliance Energy Inc – slide 31
    Changing Completion Strategies Completion Performance (Slickwater vs. Gel) 31
  32. December 2012 Investor Presentation – Reliance Energy Inc – slide 32
    Q&A
  33. December 2012 Investor Presentation – Reliance Energy Inc – slide 33
    APPENDIX
  34. December 2012 Investor Presentation – Reliance Energy Inc – slide 34
    Completion Evolution The three oldest Slickwater wells (Mabee 240B 1702, Mabee 240B 1602, and Mabee 239 503) have all been producing for at least 130 days No type curve/EUR has been assigned to the Slickwater completion technique due…
  35. December 2012 Investor Presentation – Reliance Energy Inc – slide 35
    Completion Evolution The three oldest Slickwater wells (Mabee 240B 1702, Mabee 240B 1602, and Mabee 239 503) have all been producing for at least 130 days No type curve/EUR has been assigned to the Slickwater completion technique due…

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