Argentum Energy Resources

Transcription

1 Argentum Energy Resources Michael Frow Petroleum Engineer Bespoke Water Solutions Oklahoma Shale Cost-Effective Water Management Congress - SCOOP & STACK 2018: Assess Water Sourcing Options Relative to the SCOOP/STACK and Discuss How to Overcome Potential Issues During Drought Conditions

2 Over View Argentum Energy Resources Basic Water Sourcing for the SCOOP / STACK Drought Conditions What If? Conclusion

3 Over View Argentum Energy Resources Basic Water Sourcing for the SCOOP / STACK Drought Conditions What If? Conclusion

4 Argentum Energy Resources Founded in July 2012 Previous Experience Williams E&P: Completions Intern ConocoPhillips: Reservoir, Drilling, and Infrastructure Newfield Exploration: Infrastructure Marathon: Completions Vanguard Natural Resources: Completions, Infrastructure and Reservoir / Business Development First Acquisition Evaluation in December 2012 Connected to Private Equity in April 2013: BP Energy Partners First Business Acquisition: May 2015 First Business Divestiture: September 2018 First Meeting with Boone Last Energy Summit at Mesa Vista Ranch

5 Argentum Energy Resources Areas of Specialization: Business Turn Arounds / Process Improvement Mergers and Acquisition Evaluations Infrastructure Business Development Oil Field Technology and Automation Regional Expertise: Oklahoma Texas Louisiana Colorado Piceance Basin Maverick Basin

6 Over View Argentum Energy Resources Basic Water Sourcing for the SCOOP / STACK Drought Conditions What If? Conclusion

7 Basic Water Sourcing for the SCOOP / STACK Surface Waters Public Water Ways Prolific water is 150 GPM (~3.6 bbl/min) = ~13 kbbls/day Private Lakes / Ponds & Industrial Water Impoundments Necessary volume buffer for frac operations Rainfall is / year which can be offset by evaporation Total volume dependent on size of water feature Subsurface Waters Fresh Water Reservoirs Prolific water is 50 GPM (~1.2 bbl/min) = ~4.3kbbls/day Salt Water / Brackish Reservoirs Higher volumes possible Frac compatibility is questionable Processing costs are high

8 Basic Water Sourcing for the SCOOP / STACK Surface SCOOP Waters Public Water Ways Canadian River Red River Washita River Private Lakes / Ponds Industrial Water Impoundments Major SCOOP Aquifers Antlers Arbuckle-Simpson Rush Springs Source:

9 Basic Water Sourcing for the SCOOP / STACK Surface STACK Waters Public Water Ways Canadian River Cimarron River North Canadian River Washita River Private Lakes / Ponds Industrial Water Impoundments Major STACK Aquifers Rush Springs Source:

10 Over View Argentum Energy Resources Basic Water Sourcing for the SCOOP / STACK Drought Conditions What If? Conclusion

11 Current Oklahoma Drought Status 174,000 Residents in Moderate Drought Areas 3.1% of land area 5% of the population 1,127,000 Residents in Abnormally Dry Areas 15.2% of land area 30% of the population Good News For Now Drought Conditions Source:

12 Historical Oklahoma Droughts Dust Bowl: College Football National Championships: Present U.S. Drought Monitor Tracking Since 2000 Exceptional Drought Conditions in Oklahoma: Early 2018 Drought Conditions Source:

13 Over View Argentum Energy Resources Basic Water Sourcing for the SCOOP / STACK Drought Conditions What If? Conclusion

14 What If? Prepare to suspend disbelief: Applied Rocky Mountain best practices to Great Plains operations Centralized completion locations 10 HDPE fused temporary surface lines for recycled water 4.5 welded casing temporary surface lines for frac pressure with sand and chemical laden fluid transfer to location 4.5 welded casing temporary surface lines for flow back to salt water gathering systems Advantages Reduced mobilization charges and increased efficiencies from continuity Challenges Verifying the solution is tailored to the needs of operators, regulators, and residents Minimizing initial capital requirements to implement Does not take into account lease hold obligations

15 What If? Prepare to suspend disbelief: Total Play Development fresh water needs are only 5 billion barrels: $0.25/bbl = $1.25 B $0.50/bbl = $2.5 B $1.00/bbl = $5.0 B $2.50/bbl = $12.5 B What causes the costs to increase: Population competition Live stock competition Multiple Oil and Gas operator competition Land owner communal bargaining Depletion of fresh water reserves Additional regulatory constraints from state and federal agencies

16 Prepare to suspend disbelief: What If? Salt water and brackish water reservoirs were viable sources Increases reserves of water to use for frac operations Eliminates population and live stock competition Keeps supply costs down but with additional processing costs Challenges Ensuring completion fluid compatibility for slickwater, linear gel, hybrid, and / or cross linked gel stimulations Making processing cost effective Having the necessary infrastructure in place to safely receive, process, redeliver, and monitor transfer of recycled water Regulatory approvals

17 Jumping into the deep end of possibilities: Water was selectively programable using physics instead of chemistry Masaru Emoto studied the effect of lasers on the arrangement of water molecules President Emeritus of International Water for Life Foundation: Oklahoma City, OK What If?

18 What If? Coming back up for air: Water is susceptible to rearrangement via magnetic fields Dr. Robert Dennis developed a patent for pulsed electromagnetic field therapy (PEMF) while at NASA Original patent in additional patents after leaving NASA Produced oil field fluids are susceptible to rearrangement via magnetic fields Patent for removing paraffin and scale from oil field fluids used PEMF purchased by a friend of mine. Commercial product in Q Source:

19 Drought strikes What If? Centralized completion strategies allow to minimize permanent infrastructure while securing reliability necessary for regulatory and environmental concerns Salt water reservoir fluids are made to be more cost effectively treated if PEMF is effective once a commercial solution is released The biocide I developed in 2014 becomes the predominant biocide for the SCOOP / STACK The SCOOP / STACK becomes the number 1 oil producing play in the nation

20 Over View Argentum Energy Resources Basic Water Sourcing for the SCOOP / STACK Drought Conditions What If? Conclusion

21 Conclusion Questions and Answer Session Bespoke Solution Requests: Mobile: (832)