Core Oil Delaware Basin Pure-Play DUG Permian Conference Utilizing Data to Drive Capital Efficiency July 13, 2021
Important Information Forward-Looking Statements The information in this presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities…
Overview Objective: Demonstrate how Centennial is utilizing data science in a cost-effective manner to increase capital efficiency Disclaimers: I am not a data scientist Our team appreciates and respects the use of data science to…
Centennial Resource Development Overview Core Acreage and Strong Execution Track Record Asset Map High quality acreage in Northern & Southern Delaware Large, contiguous 81,700 net acres acreage position in the Delaware Basin…
2020 Lookback The impact by COVID-19 and ensuing decline in oil prices was a generational event that shook the industry Centennial responded quickly by reducing its rig count from five to zero in April 2020 and suspending near term…
Review of CDEVs Recent Cost Initiatives Lease Operating Expenses LOE Expense (mm) Completed electric substation and associated feeder lines in 42 Reeves County during Q420 Facilitated transition of well-sites to electric power 26…
The Next Challenge: Improving Capital Efficiency Questions: 1) Can we improve our average well result, despite increased parent / child dynamics inherent within the industry 2) Given the variable geology in New Mexico, can we accelerate…
Data Sources of CDEVs Machine Learning Technology Well Proprietary tool built in-house using Feature Spacing Manipulation Engine (FME) Central Data Repository for both proprietary and vendor data Completions Data Production…
Data Sources Well Spacing Well-spacing tool created in FME that ingests clean Directional Surveys to calculate a HZ, VT and diagonal distance Well Spacing Calculates average and nearest distance from wellbore to wellbore within an…
Data Sources Well Spacing, continued Proprietary well spacing tool provides 3-D spatial image and distance calculations for nearby wellbores Classifies wells as parent / child, in addition to computing offset depletion and well…
Data Sources Geology and Geophysical Well Spacing Creates grids and structure maps using Sends parent / child well log data designations to Kingdom Uses those grids and samples the data Connects Kingdom Data back to all wells…
New Mexico / Texas Geologic Comparison Significant Geologic Differences Between Assets Historical Industry Wells by Formation Geologic Target Distribution Across the Centennial Position Western Central Central Southern A A Lea Lea…
Data Sources Reservoir and Modeling Well Spacing Used as a hub for Petrel and Kingdom data Takes Petrel logs and turns them into usable Data tables for various projects Kingdom Warehouse Stores the logs and other seismic…
Data Sources Reservoir and Modeling, continued Petrel provides the ability to view data in 3D Can ultimately extract seismic data along the wellbore and track it against completions data from the field Allows us to identify areas…
Data Science Workflow Data Sources Well Data Attributes Predictive Model Completions Data Proppant Fluid Well Lateral Length Spacing Cluster Spacing Production Data Oil Volumes GOR WOR Machine Location Data Data Warehouse…
How Do We Use This Data 1) 1 Predict production results across the basin given internal geologic and reservoir designations 2) 2 Study industry completion trends as a function of well spacing, depletion and vintage 3) 3 Modify…
1 Case Study Back Testing: Predicting 6-Month Cumulative Oil Production Utilized predictive model to back test 6-month oil cumes for all previously drilled horizontal wells in Lea County Removed outliers based upon certain parameters…
2 Case Study Using Basin Trends as an Information Tool Industry Results Three Largest E&Ps in Southern Lea County, NM Lateral Length (Ft.) Cumulative Oil Production per 1,000 of Lateral 8,000 2016 6,000 40,000 4,000 35,000 2,000…
2 Case Study Using Basin Trends as an Information Tool, continued Industry Results Three Largest E&Ps in Southern Lea County, NM % Parent / Child Cumulative Oil Production per 1,000 of Lateral 100% 80% 2016 40,000 60% Child 40%…
3a Case Study Navigating Offsetting Depletion CDEV 2-Well Pad (Lea County, NM) Predictive model utilized to estimate impact of offset depletion on future well performance N Slide example: 710 MBo Offset 670 MBo Offset Oil…
3b Case Study Trouble-Shooting Carbonate Rich Stages in Cross-Attribute Platforms Proprietary 3D Porosity CDEV Bone Spring Well (Lea County, NM) Attribute Model: Geosteering X-Section Rock Property Optimization X-Plot Confirms…
Closing Conclusions Whats Next For Centennial, having this data science Continue to refine current project tool in house is a matter of pride for our Test additional attributes to the model organization Trial other machine learning…
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