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Haynesville Shale Presentation – Chesapeake Energy Corp

Chesapeake Energy Corp · Apr 30, 2012 · 23 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. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 1
    Haynesville Shale John Webster, Drilling Engineer Haynesville Shale
  2. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 2
    Haynesville Shale Overview Prospective Area = 3.5 Million Acres TEXAS LOUISIANA CHK discovered the Haynesville Shale in 2007, it is likely to become one of the two largest natural gas fields in the U.S. CHK is the largest…
  3. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 3
    CHK Position in the Haynesville Core CHK discovered the Haynesville and from the beginning targeted the Core CHK has already HBPd 110,000 net acres (20%) of total 510,000 net acres Estimated HBP by YE10 220,000 net acres (from CHK…
  4. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 4
    Potential Within Haynesville/Bossier Shale Overlap CHK anticipates having an interest in roughly 80% of the wells drilled in the Haynesville and Bossier Core area CHK is concentrated in geologically stable areas where faulting and…
  5. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 5
    Haynesville Shale Development Plan 80-acre spacing (8 wells per or section) 3,750 potential net wells to be drilled Targeted average IP rate 14.1 mmcfe/day First month average production of 10.6 mmcfe/day Targeted EUR of 4.5-8.5…
  6. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 6
    Superpad Minimizing Surface Impact Location design accomodates development plan: 80 acre spacing (8 wells per section) 660 nominal wellbore spacing Single 4,500 lateral, oriented north-south Superpad Reduced surface impact, fewer…
  7. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 7
    Superpad Minimizing Surface Impact 7
  8. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 8
    Haynesville Shale Growth Profile Chesapeake Total Net Gas Production 50 1,250 Haynesville Wedge Haynesville Base 40 1,000 Operated Rigs Net Production (mmcfe/day) Operated Rigs 30 750 20 500 Voluntary Curtailments…
  9. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 9
    Haynesville Shale Drilling CHK Improvements Haynesville Gross Cost Trends 12 9.5 Drill Complete Goal Continual focus on process improvement and 10 8.9 7.8 efficiencies Per Well Cost (in millions) 8 6.9 Increased rig count…
  10. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 10
    Haynesville Shale Unique Among the Big 4 What Makes the Haynesville Shale unique Depth Typical target TVD is 12,000 Fayetteville Shale 5,500 TVD Marcellus Shale 7,500 TVD Barnett Shale 8,000 TVD Pressure Typical MW in shale is 16.0…
  11. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 11
    Haynesville Shale Well Typical Design Surface Hole Section 13-1/2 hole to 1,850 10-3/4 45.5 J-55 BTC casing Mud weights ranging from 8.4 ppg to 9.5 ppg throughout interval Intermediate Hole Section 9-7/8 hole to intermediate casing…
  12. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 12
    Surface Hole Section Surface Hole Section 13-1/2 hole to 1,850 10-3/4 45.5 J-55 BTC casing Mud weights ranging from 8.4 ppg to 9.5 ppg throughout interval Surface hole drilling hours can range from 7 hrs to 24 hrs (15 hr avg)…
  13. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 13
    Intermediate Hole Section Intermediate Hole Section 9-7/8 hole to intermediate casing point 11,000 7-5/8 29.7 HCP-110 LTC casing Mud weights ranging from 9.0 ppg to 12.0 ppg throughout hole section. Intermediate hole section can…
  14. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 14
    Intermediate Hole Section Challenges (Continued) Directional work in 9-7/8 hole As part of development plan, as many as 8 wells will be drilled from one location At least half of these wells will require a significant amount of…
  15. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 15
    Curve Production Hole Section (Curve) 6-3/4 hole size Mud weights ranging from 15.0 ppg to 16.0 ppg throughout curve. Drilling days can range from 3 8 days Drilled with both PDCs and tri-cone bits, mostly PDCs Motor bend settings…
  16. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 16
    Curve Challenges in the curve (continued) Penetration Rate Have experimented with various power section combinations, no distinct difference between 0.5 rev/gal and 1.0 rev/gal Have experimented with various bits, opting for flatter…
  17. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 17
    Lateral Production Hole Section (Lateral) 6-3/4 hole size Mud weights ranging from 15.0 ppg to 17.0 ppg throughout lateral. Drilling days can range from 4 20 days Drilled with PDCs Motor bend settings include: 1.5, 1.75, 1.83…
  18. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 18
    Lateral Challenges in the lateral (continued) Penetration Rate Rotating P-rates vary from 10 fph 50 fph Sliding P-rates vary from 3 fph 20 fph CHK and its industry partners have worked diligently to 1/2 4/5 experiment with various…
  19. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 19
    Production Casing Challenges Getting Production Casing to Bottom Casing running time from the 7-5/8 shoe to TD ranges from 7 hrs to 36 hrs Have had to cement casing off bottom on multiple occasions Have standardized casing running…
  20. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 20
    Production Casing Ultra Semi-Flush Full contact threads High tension and bending capacity Low cross threading risk Locked metal center-shoulder seal Limited affects on seal integrity Run-in/run-out threads Up to 10,000 ft-lb…
  21. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 21
    Going Forward What challenges must the industry meet going forward in the Haynesville Shale Bit design and cutter technology must continue to advance; Travis Peak (Hosston)/Cotton Valley Abrasive, fractured, quartz cemented…
  22. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 22
    Achievements CHK Top 9 HNVL Wells (Spud to TD) 1.Feist 6H-1, 23 days, 12/17/09 2.Dixie Farm 7H-1, 24 days, 11/14/09 3.Bowlin 35H-1, 25 days, 10/26/09 4.Dixie Farm 18H-1, 26 days, 11/20/09 5.Blackstone et al 22H-1, 12/7/09 6.EDWL…
  23. Haynesville Shale Presentation – Chesapeake Energy Corp – slide 23
    Conclusion Haynesville Gross Cost Trends 12 Chesapeake and its industry partners have made great 9.5 8.9 Drill Complete Goal strides in reducing the time and cost to drill Haynesville 10 7.8 Shale wells. Per Well Cost (in…

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