Industrial Commission Update Justin J. Kringstad Geological Engineer Director North Dakota Pipeline Authority June 20, 2019
Statewide Initial Oil Production Rates 24hr JJ Kringstad - North Dakota Pipeline Authority 2 2
Bakken/Three Forks Initial Production Rate: 24hr JJ Kringstad - North Dakota Pipeline Authority 3 3
4,000+ BOPD 24hr Initial Production Rates JJ Kringstad - North Dakota Pipeline Authority 4 4
Statewide Gas Performance 12% Improvement Over 2017 JJ Kringstad - North Dakota Pipeline Authority 5 Statewide Average BKN/TF Well Performance 5
Statewide Initial Gas Production Rate: 24hr JJ Kringstad - North Dakota Pipeline Authority 6 6
Bakken and Three Forks Gas Performance JJ Kringstad - North Dakota Pipeline Authority 7
Top 20 IP Rates (Oil) JJ Kringstad - North Dakota Pipeline Authority 8 8
Top 20 IP Rates (Oil) JJ Kringstad - North Dakota Pipeline Authority 9 9
Top 20 IP Rates (Oil) JJ Kringstad - North Dakota Pipeline Authority 10 10
Top 20 IP Rates (Oil) JJ Kringstad - North Dakota Pipeline Authority 11 11
Top 20 IP Rates (Oil) *Month 0 is a partial month with daily production calculated using Days on production. Months 1+ use calendar days to calculate daily rate. JJ Kringstad - North Dakota Pipeline Authority 12 12
Top 20 IP Rates (Oil) Electrical Submersible Pump (ESP) Timeline JJ Kringstad - North Dakota Pipeline Authority 13 13
Impact of ESP on Production Profiles Well: SIBYL USA 44-19TFH (Mountrail County) *Month 0 is a partial month with daily production calculated using Days on production. Months 1+ use calendar days to calculate daily rate. JJ…
Impact of ESP on Production Profiles Additional Examples Well File: 32012 Well File: 33942 *Month 0 is a partial month with daily production calculated using Days on production. Months 1+ use calendar days to calculate daily…
High Initial Production (IP) Scenarios Typical type curve used as a In this example, the entire comparison example for how production curve over time is high IP wells may perform uplifted relative to a typical over time. well. Well…
Oil IP Bin Comparison *Month 0 is a partial month with daily production calculated using Days on production. Months 1+ use calendar days to calculate daily rate. JJ Kringstad - North Dakota Pipeline Authority 17 17
Oil IP Bin Comparison JJ Kringstad - North Dakota Pipeline Authority 18 18
Oil IP Bin Comparison Clean JJ Kringstad - North Dakota Pipeline Authority 19 19
Oil IP Bin Comparison Clean JJ Kringstad - North Dakota Pipeline Authority 20 20
Economic Incentive to Higher IP Rates Example: Payout Period Using 7 million well cost JJ Kringstad - North Dakota Pipeline Authority 21 21
Economic Incentive to Higher IP Rates Example: Rate of Return Using 7 million well cost JJ Kringstad - North Dakota Pipeline Authority 22 22
Economic Incentive to Higher IP Rates Example: Breakeven Pricing Using 7 million well cost JJ Kringstad - North Dakota Pipeline Authority 23 23
North Dakota Oil Production Forecast Assumes Current Technology Enhanced Oil Recovery Not Included JJ Kringstad - North Dakota Pipeline Authority 28 28
Major Oil Transmission Systems JJ Kringstad - North Dakota Pipeline Authority 29 29
Williston Basin Oil Production & Export Capacity, BOPD Assumes Current Technology Enhanced Oil Recovery Not Included Exact DAPL Expansion Timeline(s) Unavailable Production forecast is for visual demonstration purposes only…
Major Gas Pipeline and Processing Infrastructure Upcoming or Andeavor Recent Plant Expansion WBI Transmission JJ Kringstad - North Dakota JJ Kringstad Pipeline - North Authority Dakota Pipeline Authority 32 32
WBI Energy North Bakken Expansion Project Project Highlights 67 Miles - 20 Pipeline 19 Miles - 12 Pipeline 220+ Million 250,000 MCFD Capacity (expandable) Expandable to 375,000 MCFD End of 2021 Proposed Completion Residue Gas…
WBI Energy North Bakken Expansion Project Project Highlights 67 Miles - 20 Pipeline 19 Miles - 12 Pipeline 220+ Million 250,000 MCFD Capacity (expandable) Expandable to 375,000 MCFD End of 2021 Proposed Completion Residue Gas…
Northern Border Pipeline 42 Pipeline Carries Canadian (Port of Morgan) and Domestic Gas Receives Gas From ND Plants, WBI Transmission Interconnections, and WY Pipelines (Bison & Grasslands) Midcontinent Deliveries JJ…
Simplified Example NB Calculations Conclusion: IF no other gas export options open and all other deliveries on other pipelines stay static, ND gas production could increase 0.82-1.12 BCFD (from April-19) before Northern Border is 100%…
Northern Border Proposed Expansion Options Two Proposed Options: Stateline/Watford City to Ventura -580 Mdth Incremental (525 MMCFD) -Phase 1: Q3 2021 -Phase 2: Q4 2023 Stateline/Watford City to Cheyenne -430 Mdth Incremental…
Simplified Example NB Calculations Conclusion: IF no other gas export options open and all other deliveries on other pipelines stay static, ND gas production could increase 0.82-1.12 BCFD (from April-19) before Northern Border is 100%…
Bakken Natural Gas Infrastructure 39 JJ Kringstad - North Dakota Pipeline Authority 39 39
Regional NGL Infrastructure Kinder JJ Kringstad - North Dakota Pipeline Authority 40
North Dakota Captured* NGLs 41 JJ Kringstad - North Dakota Pipeline Authority *Non-flared NGLs & Assumes 41 10 GPM 41