Monell CO 2 EOR Unit. Grant Caldwell. December 6 th, Presented at the Annual CO 2 & ROZ Conference, Midland, Texas; Dec 6, 2018

Transcription

1 Monell CO 2 EOR Unit Grant Caldwell December 6 th, 2018 Presented at the Annual CO 2 & ROZ Conference, Midland, Texas; Dec 6,

2 Presentation Overview Introduction Grant Caldwell Fleur De Lis Energy, LLC Background Company Overview Management Team Strategy Unit History Monell CO2 EOR Unit Geological Overview Development History Process Layout Current Production Operational Challenges and Production Optimization Monell Unit - Main Battery 2

3 Fleur de Lis Energy, LLC FDL Energy Background Founded in 2014 by the prior Vice Chairman of Merit Energy, Porter Trimble From 2014 to 2015, FDL acquired $1.1 billion of assets across three transactions through a joint venture with Kohlberg Kravis Roberts & Co. L.P. In August 2016, FDL purchased $497.5 million of assets in a series of two transactions cosponsored by EIG Global Energy Partners, LLC, on behalf of its managed funds In September 2018, FDL purchased $553 million of assets in the Barnett Shale Company Overview FDL currently has 258 employees, of which 58 are based in Dallas including the senior leadership team Total of 70,400 BOE net production Roughly $2.1 Billion of Capital Deployed 3

4 Fleur de Lis Energy, LLC Experienced Management Team Acquired over $9 billion of oil and gas assets, collectively Over 100 years of combined experience in the industry Disciplined Strategy Focus on acquiring and operating long-lived, producing oil & gas properties in North America Purchase assets with established cash flows that generate attractive risk-adjusted returns in current price environment Enhance asset value by maximizing productivity and realizing cost structure efficiencies Maintain an efficient cost structure and adjust risk through prudent capital investment decisions, hedging production and low leverage 4

5 Monell Unit History History Shute Creek - Monell CO2 Source Discovered in 1959 Located in the Greater Green River Basin Primary drive is from the expanding updip gas cap Mesa Verde Almond Sandstone reservoir 17,956 net contiguous acres 141 producers with 77 injectors CO 2 flood initiated in 2001: 3 phases implemented to date Arch Unit: Future CO2 Development CO 2 Source Exxon Mobil s Shute Creek Plant 5

6 Monell Unit Regional Geology Regional Structure Map Regional Cross Section Patrick Draw Field Table Rock Wasatch Fort Union 2000 Almond mi Sea Level Regional west-east structural cross section to identify gas-oil contact and visual reference primary driving force. Regional structural map showing Patrick draw field as only primarily oil bearing formation regionally. 6

7 Monell Unit Depositional Environment Upper Cretaceous Almond sandstone Part of an extended barrier bar system Depositional environment was in nearshoremarine and beach environments on a seaward - prograding shoreline UA-5A Oyster coquina UA-5B Well-sorted, cross-stratified sandstone Ebb Tidal Delta Washover Fan Foreshore Tidal Channel Point Bar Marsh Tidal Creek 7

8 Monell Unit Upper Almond Sandstone (UA- 5) SW NE UA-5A UA-5B UA-6 Upper Almond formation (UA-5) Primary Producing Zone UA-5 is comprised of two stacked sand packages UA - 5A & UA - 5B Fine grained quartzose sands 8

9 Monell Unit Reservoir Properties Geologic Properties Stratigraphic trap with the oil zone being confined by an up-dip gas cap Monocline with 5 structural dip to southeast Production controlled by sand pinch out and water curtains Productive area: ~6,000 acres OOIP: 146 MMBO with ~34% RF to date Avg. Depth to Almond Top: 4,500-5,000 Avg. Net Pay Thickness: 25 Monell Unit Structure Map Phase 1 Phase 2 Phase 3 Reservoir Properties Avg. Porosity: 20% Avg. Permeability: 30 md Swi: 45% Reservoir Temperature: F Reservoir Pressure: psi Oil Gravity: 43 API MMP: 1450 psi 9

10 Monell Unit Development History Development History Monell Production History : Primary Production : Secondary Production 2001: Initiated CO2 Pilot (MU 180) 2003: 33 mile PL & 1 st CO2 Injection into Phase : Phase 2 Start - Up 2010: Phase 3 Start - Up 2013: Phase 3 Extension + 9-Spot Drilling : 9-Spot Infill Drilling 10

11 Monell Unit Layout Development Layout Continuous CO2 Injection Monell Unit Layout 3 Satellite Testing Facilities: A1, A2, & A3 1 Main Separation and Compression Facility: MB 11

12 Monell Unit Process Flow START FINISH Boost Purchase & Recycle to Injection Pressure ~2500 psi Production Headers / Test Facilities: A1, A2, A3, & MB 12

13 BOPD MCFD Monell Production Update MONELL PRODUCTION /20/2017 5/20/2017 8/20/ /20/2017 2/20/2018 5/20/2018 8/20/ /20/2018 Date 0 Monell Total BOPD CO2 Recycled MCFD CO2 Injected MCFD 13

14 Operational Transitions & Challenges Operational Transitions Pumping Units began to see CO2 Pumping Units with back pressure valves and timers to avoid gas lock Pulled rods to allow well to free flow Wells began to show signs of hydrates and or paraffin deposition Installed automations at wellhead and downhole gas lift mandrels to inject continuous water Excessive water rates will load up the well Operational Challenges Unable to WAG injection wells Well Freezing Issues Well Loading Issues Paraffin Deposition Compression Constraints 14

15 Well Freezing Issue Solution: Gen 1 Timer Mode First Generation Solution Timer Mode : bullhead slipstream down tubing and flow back for a period of time to automate hot water pumping down producers Advantages Reduce freezing issues and paraffin deposition Disadvantages Well unable to maintain steady state Large water usage Top: 4532' Only Flowing 50% of the time Almond Bottom: 4554' 15

16 Well Freezing Issue Solution: Gen 2 Second Generation Solution Advantages Mandrel Mode : gas lift mandrel in tubing string, flow continuous water down backside to use less water, reduce freezing issues, and increase production Reduce freezing issues and paraffin deposition Mandrel Mode Evolved to continuous injection via mandrel Set at 1,500 Decreases water usages Allows the well to maintain steady state and increase production Disadvantages Well Loading Issues of having to determine the proper balance of water down the backside to prevent hydrate while also not loading up the well 16

17 Wellhead Automations to Maintain Goal WHT Wellhead Temperature Transmitter Produced Fluids Water Inlet Water down backside to mandrel or bullhead down tubing 1. Automations Upgrades: consist of chokes, transmitters, and logic to maintain goal wellhead/flowline temperatures 17

18 Mandrel Install: Decreased Water & Increased Production Increased slipstream temp: 20 o F 30 o F ~150 bpd Increase Slipstream temp decreased with decreasing ambient temperature 18

19 Compression Constraint Operations Operational Adjustments Well ranking system to maximize production CO2 Injection utility analysis to minimize overall field utility Project economics ran as net barrels Net Barrels Example Net Production Benefit = Oil Production Uplift (Total CO2 Uplift / SI GOR) Oil Uplift: 184 bpd CO2 Uplift: 3000 mcfpd Oil Uplift (CO2 Uplift / SI GOR): 184 (3000 / 65) = BPD Well Ranking System GOR REPORT AS OF: 11/25/2018 Well Name Last Test Date Avg Test Oil Avg Test Wtr Avg Test Gas Average GOR Wellhead Config MONELL UNIT 4 1/15/ SS,Mand,TimeMate,Manual MONELL UNIT 49-3DR 7/6/ Full Automation - Skid MONELL UNIT 47-3DR 10/7/ Full Automation - Skid MONELL UNIT /5/ Full Automation/No Skid MONELL UNIT 28-2D 2/25/ Full Automation/Skid MONELL UNIT 7 8/20/ SS,Mand,TimeMate,Manual MONELL UNIT /13/ Red Lion/Manual Chokes MONELL UNIT 46 10/26/ No Automation MONELL UNIT 14-31D 10/20/ Full Automation/No Skid MONELL UNIT 38-3DR 10/4/ Full Automation - Skid MONELL UNIT 157 9/17/ SS,Mand,Manual MONELL UNIT 38-25D 3/23/ SS,TimeMate,Manual MONELL UNIT 6 8/27/ SS,Mand,TimeMate,Manual MONELL UNIT 26-10D 11/20/ Full Automation/Skid MONELL UNIT /5/ Red Lion with Man Chokes MONELL UNIT /2/ Red Lion/Manual Chokes MONELL UNIT /26/ Full Automation/No Skid MONELL UNIT /22/ Red Lion/Manual Chokes MONELL UNIT 29-03D 5/29/ Full Automation/Skid MONELL UNIT /23/ Red Lion/No Skid MONELL UNIT /6/ SS,Mand,Auto MONELL UNIT 26-35D 9/24/ MONELL UNIT 28-35D 10/30/ MONELL UNIT /15/ SS,Mand,TimeMate,Manual MONELL UNIT /9/ SS,TimeMate,Manual MONELL UNIT /9/ Full Automation/Skid MONELL UNIT /14/ Red Lion/No Skid MONELL UNIT 18 11/3/ SS,TimeMate,Manual MONELL UNIT /15/ Full Automation/No Skid MONELL UNIT /27/2018 Next wells to be shut in due Full Automation/No Skid MONELL UNIT 14 1/23/ SS,Mand,Manual to compression constraints MONELL UNIT 24-31D 4/18/ Full Automation/No Skid MONELL UNIT /5/ Red Lion/Manual Chokes MONELL UNIT /24/ SS, PT & TT, Manual Chokes MONELL UNIT /27/ Full Automation MONELL UNIT 27-35D 11/14/ MONELL UNIT /9/ Red Lion/Manual Chokes MONELL UNIT 46-3DR 11/1/ Full Automation - Skid MONELL UNIT 119 3/13/ N/A MONELL UNIT 37-2D 11/21/ Full Automation/Skid MONELL UNIT 24 9/19/ Time Mate, SS, PT & TT 19

20 9/1/2003 6/1/2004 3/1/ /1/2005 9/1/2006 6/1/2007 3/1/ /1/2008 9/1/2009 6/1/2010 3/1/ /1/2011 9/1/2012 6/1/2013 3/1/ /1/2014 9/1/2015 6/1/2016 3/1/ /1/2017 9/1/2018 6/1/2019 Oil Production CO2 Production Compression Constrained (cont.) MONELL PRODUCTION UPDATE Production Optimization Compression Constrained Fracture Stimulation Candidate Selection 9-Spot Infill Drilling Well Selections Mobile Booster Pilot Project Overview OIL WATER GAS GAS_INJTN 20

21 Fracture Stimulation Candidate Selection Process Increasing Injection Decreasing VFR Low GOR 21

22 Fracture Stimulation Candidate Results Well Tests Candidate Selection Decreasing Volumetric Flow Rate while maintaining surrounding injection Surrounding CO2 and Oil production/cumulative for comparison Low Gas Oil Ratio Producers GOR Changes Pre Frac: ~21 MCF/BBL Post Frac: ~ 13 MCF/BBL Net Production Benefit Oil Uplift: 184 bpd for a Net Uplift of 138 bpd CO2 Uplift: 3000 mcfpd 22

23 9-Spot Infill Pilot Drilling Well Selection Well Selection UA-5B SoPhiH: High GOR Flowline Due to compression constraints have shut in higher GOR wells already Identified candidates based off rock quality Utilized high GOR well flowlines and drill pads to reduce facilities costs by a total of $200,000 per well Increasing field-wide production by 220 bpd and overall reserves 23

24 Oil Production CO2 Production 9-Spot Q Production Results New Drill Production Remaining Wells Average GOR: 17 mcf/bbl First Well /20/2018 2/9/2018 3/1/2018 3/21/2018 4/10/2018 4/30/2018 5/20/2018 6/9/2018 6/29/2018 Axis Title Oil Production Net Barrels CO2 Production 24

25 Recovery Factors Percentages 9-Spot Infill Drilling Additional Reserves 5 Spot vs 9-Spot: Infill Additional Reserves 9-Spot Increased Reserves Recovery Factor Performance 30 5-Spot 9- Spot Recovery Gain spot vs 9 spot reserves addition Development Timeline Some patterns above had 9-spot wells on production from day one with remaining developed by Others were fully developed in 2008 Average Recovery Gain = 12-13% of OOIP No noticeable effect on 5-spot production 25

26 Monell Mobile Booster Pilot Project Mobile Booster Pilot Project Installing a mobile booster at the wellhead of injection wells Pattern Utility: Candidates Labeled Currently flowlines are rated to 2500 psi, cost prohibitive to install booster at main facility Want to step up injection pressure to 3000 psi No results to date Currently on order 6-8 weeks out 26

27 Deeper patterns have field lowest GOR & Utility 27

28 Deeper patterns have lowest injection rates 28

29 Deeper patterns show low overall production 29

30 Mobile Booster Conclusions Some deeper, tighter sections of the reservoir aren t injecting as much gas and are producing less oil as a result Deeper areas seem to have a better GOR trend Deeper wells only injecting at a gradient of ~0.8 psi/ft. Frac gradient is between 0.93 and 1.05 psi/ft Currently injecting at ~2400 psi in the deeper wells. Could inject at pressures up to ~3000 psi and still be below fracture gradient Injection lines are only rated for a max pressure of 2500 psi 2 Options to get gas into deeper, un-swept areas Install a booster pump to service all of the A-3 injection (would have to replace most injection lines) Mobile/ trailer mounted boosters for individual wells. Hook up right at wellhead. 30

31 Presentation Recap Fleur De Lis Energy, LLC Background Company Overview Management Team Strategy Thanks, Monell CO2 EOR Unit Unit History Geological Overview Development History Process Layout Current Production Operational Challenges and Production Optimization