January 2011 to September 2012 Kirby ERCB Directive 54 Annual Performance Presentation

Transcription

1 January 2011 to September 2012 Kirby ERCB Directive 54 Annual Performance Presentation September 26, 2012 Premium Value Defined Growth Independent

2 OUTLINE PAGE # Kirby Approval (South) 5-69 Background of Scheme / Project 6-9 Geology - Stratigraphic Schematic - Strat Wells - Pay Maps - Type Logs / Cross Sections - Seismic Program - Cap Rock Exploitation - Subsurface Schematic - Volumetrics & Initial Pad and Well Layout Drilling and Completions - Injection / Production / Observation / Disposal Well Schematics Artificial Lift / Instrumentation in Wells Slide 2

3 OUTLINE PAGE # Future Plans - Drilling Update & Results - Potential Amendment Applications Surface Facilities Overview / Modifications / Performance Measurement and Reporting 45 Water Treatment Technology Cavern Update 48 Water Production, Injection and Uses: - Water Forecast - Water Well Map - Water Source Wells UWIs - Waste Disposal Wells UWIs - Pressure Balance Scheme Update Overview of 2010 Surface Activities Slide 3

4 OUTLINE ERCB Approval Compliance Summary 68 PAGE # Environmental Summary - Compliance and Amendments - Monitoring Programs and Reclamation - Regional Initiatives Kirby Approval (North) Background and Approvals 74 Reservoir Mapping 75 Site Activities 76 Slide 4

5 Kirby Approval (South) September 26, 2012 Premium Value Defined Growth Independent

6 Background - Location of Kirby Project T Approved Project Area Slide 6

7 Scheme Approval Project Area ERCB defined Project Area Slide 7

8 Background Applications and Approvals Aug 31, 2010 Sept 22, 2010 Sept 28, 2010 Oct 1, 2010 Nov 25, 2010 Nov 29, 2011 EPEA Approval received from AENV ERCB Scheme approved ERCB Scheme Amendment A application submitted Directive 56 License F42290 received for CPF (LSD 00/ W4M) ERCB Amendment 11475A approved (development of well pads A through G) ERCB Amendment 11475B approved (change interwell spacing for 2 well pairs in Drainage Area D) Slide 8

9 Background Applications and Approvals Dec 16, 2011 Dec 22, 2011 May 1, 2012 Kirby Expansion Project Application (includes Kirby North and Kirby South Project Areas) submitted as amendment to ERCB Approval 11475B ERCB Amendment 11475C approved (change interwell spacing for 2 well pair sets in Drainage Area B) ERCB Amendment 11475D approved (change interwell spacing of Drainage Area E) June 8, 2012 Aug 21, 2012 Sept 6, 2012 ERCB Amendment 11475E approved (evaluation of on-lease McMurray formation brackish water) ERCB Amendment 11475F approved (change interwell spacing of Drainage Area G) ERCB Amendment 11475G approved (change interwell spacing of Drainage Area F and addition of small area to Drainage Area D) Slide 9

10 Directive 54 Section Subsurface Issues Related to Resource Evaluation and Recovery September 26, 2012 Premium Value Defined Growth Independent

11 Geology- Stratigraphic Schematic Slide 11

12 GEOLOGY: DRAINAGE AREAS & 2011, 2012 STRAT WELLS 2012 strat wells 2011 strat wells Future well pairs CPF site Slide 12

13 GEOLOGY: SAGD PAY ISOPACH 1 1 Slide 13

14 SAGD PAY BASE STRUCTURE Slide 14

15 SAGD PAY TOP STRUCTURE Slide 15

16 PROJECT AREA SAGD PAY ISOPACH Slide 16

17 GEOLOGY: TYPE WELL (1AA/ W4) Clearwater Shale Wabiskaw McMurray SAGD Pay Top Transition Zone Top Bottom Water Top SAGD Pay Base Paleozoic Slide 17

18 GEOLOGY: STRUCTURAL SECTION THROUGH DRAINAGE AREA A Clearwater Shale Wabiskaw McMurray SAGD Pay Top SAGD Pay Base Bottom Water Top Paleozoic Slide 18

19 GEOLOGY: SEISMIC PROGRAM NO NEW SEISMIC ACQUIRED Sept 2011 to August 2012 Slide 19

20 GEOLOGY: CAP ROCK Cap rock interval varies in thickness from 9-11m Mini-Frac location (2011) Source: Kirby South Project Application 2007 Volume 1 Figure B Slide 20

21 GEOLOGY: CAP ROCK 100/ W4 Kirby South Mini-Frac Well Colorado Grand Rapids Cap rock interval is defined from the top of informally named Clearwater A Shale to the top of the Wabiskaw Valley Fill Clearwater Clearwater A Shale Wabiskaw McMurray PLZC Slide 21

22 GEOLOGY: CAP ROCK Mini-Frac Test Results in the Kirby South Area (100/ W4): Clearwater A shale minimum stress is 7.7 MPa, and the stress gradient is 16.2 kpa/m Target Operating Pressure is MPa Clearwater A Slide 22

23 Exploitation - Subsurface Schematic Slide 23

24 Exploitation - Project Area Volumetrics Average Pay Thickness (m) Average Oil Saturation (%) Average Porosity (%) DBIP (m3) DBIP (bbls) 2007 Kirby Project Application ,000, ,000, Kirby Project Amendment Application ,000, ,000,000 Volumetric calculation: Area X Pay Thickness X Oil Sat. X Porosity No change from 2010 Application Slide 24

25 Exploitation Initial Drainage Area, Pad & Well Layouts CPF Drainage Area A B C D E F G # of Initial Well Pairs Inter well Spacing (m) Future well pairs F8, F9, F10 D9, D10 E7 N Initial Development 49 well pairs on 7 pads Slide 25

26 Exploitation Initial Drainage Area Volumetrics Drainage Area Area (m 2 ) Oil Saturation (%) Porosity (%) Pay Thickness (m) DBIP (m 3 ) DBIP (bbls) A 599, % 33.3% ,670,000 23,100,000 B 669, % 32.8% ,840,000 24,100,000 C 629, % 33.4% 25 4,210,000 25,600,000 D 793, % 33.3% ,530,000 34,800,000 E 487, % 34.2% ,910,000 18,300,000 F 480, % 33.3% ,582,000 16,241,000 G 637, % 33.2% ,180,000 26,300,000 Slide 26

27 Drilling and Completions Injection Well Schematic mm (13 3/8 ) Surface Casing ~ mkb mm (9 5/8 ) Casing ~ mkb 88.9 mm (3 1/2 ) short tubing ~ mkb 88.9 mm (3 1/2 ) Long Tubing ~ mkb Liner Hanger ~20 m behind ICP Slotted Liner mm (7 ) m Hz sections Slide 27

28 Drilling and Completions Production Well Schematic mm (13 3/8 ) Surface Casing ~ mkb mm (9 5/8 ) Casing ~ mkb 114 mm (4 ½ ) tubing to Pump landed ~50 m behind Liner Hanger Pump Slotted Liner mm (7 ) 48 mm (1.9 ) guide string for instrumentation Liner Hanger ~20 m behind ICP m Hz sections Slide 28

29 Drilling and Completions Observation Well Schematic 8 to 20 Temperature measurement points (Basal McMurray to CLWT) 222mm Surface Casing 139.7mm Production Casing Thermal cement to surface CLWTR WAB CLWTR A shale External casing pressure Transmitter (Pressure and Temperature sensor) Mid MCM MCM McMurray Transition zone or Water Note: Shows a plan for new drill observation wells, as existing wells won t have external casing transmitters Slide 29

30 Drilling and Completions Disposal Well Schematic mm Surface Casing to ~450m TVD Cemented to surface mm Production Casing to ~540m TVD Thermally Cemented to surface 88.9 mm Production Tubing ~10m of Perforations Slide 30

31 Artificial Lift Current plan is to use both rod pumps and ESP s depending on required production rates. Completion will be optimized as required. Slide 31

32 Instrumentation Blanket gas pressures will be used to monitor bottom hole pressures for SAGD injection wells. SAGD production wells will have temperature monitoring along the lateral, surface bubble tubes for the heel and toe pressure. SAGD observation wells will gather multiple temperatures and pressures at various elevations. Slide 32

33 Drilling Update & Upcoming Drilling Plans Drilled: Pad A (6 WP) Pad C (7 WP) Pad B (7 WP) Pad D (8 WP) Currently drilling: Pad E (6 WP) Future well pairs F8, F9, F10 D9, D10 E7 N Upcoming drills: Pad F - Nov 2012 Pad G - Mar 2013 Slide 33

34 Drilling Results to Date A Pad Unforeseen bit wear. C Pad Slight toe-up trajectories used on multiple wells to maximize pay above the producers. Base of pay rises to the West. Drilled through a significant I.H.S. body sitting on a PLZC high during C1P (producer). B Pad Minor fluids losses encountered in a couple laterals. Occurred close to a mapped PLZC Karst feature. Able to continue drilling in all occasions. D Pad Full losses seen in all laterals except D1P, D1I & D2I. Losses corresponded with mapped PLZC Karst locations. Able to drill laterals to all planned total depths and landed all liners successfully. No losses while drilling build sections of producers or injectors. Slide 34

35 Future Plans Potential Amendment Applications 2017 production forecast requires an 8 th SAGD well pad. Therefore, a pad add amendment application is expected to be submitted to the ERCB in Slide 35

36 Directive 54 Section Surface Operations, Compliance, and Issues Not Related to Resource Evaluation and Recovery September 26, 2012 Premium Value Defined Growth Independent

37 Surface Facilities Overview Detailed Site Plot Plans: Kirby SAGD Production Pad Plot Plan Dwg No. KBF-G Kirby In-Situ Oil Sands Project Central Plant Plot Plan Dwg No. DBP Simplified Schematic: Kirby In-Situ Oil Sands Project Simplified Schematic Slide 37

38 Surface Facilities Overview Summary of Modifications Since Sept 2011 Heat integration changes Added Inlet Emulsion Trim Cooler Removed PW/BFW Exchanger Temporary Salt Cavern Wash Water Filtration Slide 38

39 Facility Performance Salt cavern washing System commissioned December 2011 Initial filtration plugging issues Additional temporary filtration installed System operation has improved and continues to operate Slide 39

40 Facility Performance Gas Usage on a monthly basis Month Total Flared Gas e 3 m 3 October November December January February March April May June July Slide 40

41 Facilities Greenhouse Gas Emissions Kirby Greenhouse Gas Emissions Month tonne CO 2 October November December January February March April May June July Total 111 Slide 41

42 Measurement and Reporting MARP approved in October 2011 Will be reviewed against ERCB Thermal In Situ Water Use Directive when Directive is finalized MARP as submitted is compliant with all current regulatory requirements, including Directive 17 Slide 42

43 Water Treatment Technology Mechanical Vapor Compression (MVC) evaporators selected for BFW treatment Treatment of both recycled produced water and makeup water Evaporator blow down solids disposal to on-site salt cavern Silica Sorption process selected vs. high ph process from application Slide 43

44 Water Treatment Technology Mechanical Vapor Compression Evaporator: Slide 44

45 Cavern Update Salt Cavern #1 102/ W4M Cavern Volume (as of July 25, 2012 sonar) 9719 m 3 Wash Water (as of August 15, 2012) 139,197 m 3 Salt Cavern #2 100/ W4M Cavern Volume (as of July 25, 2012 sonar) 4009 m 3 Wash Water (as of August 15, 2012) 94,169 m 3 Slide 45

46 Produced and Make-up Water Forecast Majority of steam generated from recycled produced water Most non-saline water used during start-up Rate (m3/d) 25,000 20,000 15,000 10,000 5,000 0 Produced Water Grand Rapids Fm Make-up McMurray PB Water Empress Fm Water Water Sources Saline McMurray Fm TDS = 14,500 ppm Pressure balancing, make-up and wash water Non-Saline Grand Rapids TDS 2,450 ppm Make-up and wash water Empress Fm TDS = 550 ppm Make-up and utility water Year Disposal - 5 % Produced Water Recycle 95% Slide 46

47 Pressure Balancing, Source, Disposal and Observation Well Map WSW, WDW, Pressure Obs Wells and Surface Water Withdrawal Location Slide 47

48 Source Wells - Saline McMurray Source Wells Well Name Use Unique Well Identifier CNRL WSW01 Kirby Make-up Source 1F1/ W4M CNRL WSW MC01 Kirby Make-up Source 1F1/ W4M CNRL WSW MC02 Kirby Make-up Source 1F2/ W4M McMurray Off-Lease Saline Source Evaluation Well CNRL WSW MC03 Kirby Make-up Source 1F1/ W4M Slide 48

49 Source Wells Non-Saline GRAND RAPIDS Formation Grand Rapids Source Wells Well Name Use Unique Well Identifier CNRL WSW02 Kirby Make-up Source 1F2/ W4M CNRL WSW GR01 Kirby Make-up Source 1F3/ W4M EMPRESS Formation Source Wells CNRL WSW Kirby Utility Source 1F2/ W4M RAX WS1 Kirby Utility Source 1F1/ W4M MURIEL LAKE Formation - Source Wells CNRL WSW ML03 Kirby Domestic Source 1F4/ W4M ETHEL LAKE Formation - Source and Standby Wells CNRL WSW EL01 Kirby Domestic Source 1F1/ W4M CNRL WSW EL02 Kirby Domestic Source No UWI No license required Slide 49

50 Disposal Wells McMurray Disposal Wells Well Name Use Unique Well Identifier RAX Kirby Disposal 00/ W4M CNRL WDW01 Kirby Disposal 00/ W4M CNRL WDW02 Kirby Disposal 02/ W4M CNRL WDW03 Kirby Disposal 00/ W4M Salt Cavern Wells CNRL CAVERN VERT KIRBY Lotsburg 100/ W4M CNRL CAVERN DD KIRBY Prairie Evaporate 102/ W4M Slide 50

51 Pressure Balance Scheme Update Salt cavern wash water being produced from: McMurray Formation Basal Aquifer (1F1/ W4/00 and 1F2/ W4/00) Rate ranges from 700 to 2,300 m 3 /d Lower Grand Rapids Formation Aquifer (1F2/ W4/00, TDL# ) Production started in July 2012 at an average rate of 574 m 3 /d Slide 51

52 Pressure Balance Scheme Update Currently disposing of salt cavern wash water into McMurray Fm Basal Aquifer disposal wells at 102/ W4/00, 100/ W4/00 and 100/ W4/00 Disposal rate equal to McMurray and Grand Rapids production rate Starting July 2012, McMurray water disposal rate is greater than McMurray water production rate (574 m 3 /d average difference) Pressures in McMurray Fm Basal Aquifer being monitored below McMurray bitumen reservoir at 100/ W4/00, 1AA/ W4/00 and 100/ W4/00 Additional monitoring well located between McMurray Fm Basal Aquifer source and disposal locations at 100/ W4/00 Pressure instrumentation installed; currently fixing problems related to well completion and/or instrumentation Slide 52

53 Pressure Balance Scheme Update McMurray Disposal, Pressure Balance and Pressure Observation Well Locations Slide 53

54 Pressure Balance Scheme Update Pressure readings in observation wells beneath reservoir Pressure declines in McMurray Fm basal aquifer are greater than predicted Approximate 300 kpa decline noted about 1.8 km away Grand Rapids Fm water produced as of July 2012 to manage McMurray Fm pressure drop Pressure oscillation at MC02 source well due discontinuous pumping. pump was only on during day shift until May, 2012 and is shut-off frequently thereafter for maintenance Slide 54

55 Pressure Balance Scheme Update Changes to observation well pressures do not correlate to changes in wellhead pressures at disposal wells Pressure at observation wells more influenced by nearby source wells Kirby Disposal Wells Wellhead Pressure with Basal McMurray Aquifer Observation Well Pressure 3000 Disposal Well Average Daily Wellhead Pressure (kpa) Approximate McMurray Formation Pressure Disposal Well Disposal Well Disposal Well OBS Well Pressure OBS Well Pressure OBS Well Pressure Observation Well Reservoir Pressure (kpa) Jan Jan Mar Apr May Jun Jul Aug-12 Date Slide 55

56 Pressure Balance Scheme Modelling In order to calibrate model, Basal Aquifer connectivity needed to be reduced (more compartmentalized) Low permeability cells Slide 56

57 Overview of 2012 Surface Activities Central Plant Major project infrastructure completed including temporary power, camp, roads, etc. Equipment foundations completed Major equipment set in place across plant plot area, i.e. Evaporator towers / Steam Generators Major piperack modules set in place Field mechanical and electrical installation in progress Process building erection underway Admin / Control Room building constructed and occupied by Operations staff Pads Earthwork completed on 6 of the 7 pads prepared; surface facility construction has commenced on Pads A and C Pipelines Main connecting pipelines from pads to Central Plant completed and ready for commissioning Steam-in date planned for Q4, 2013 Slide 57

58 Kirby Central Plant Q Slide 58

59 Kirby Central Plant Q Slide 59

60 Kirby Central Plant Flare Stack Lift Q Slide 60

61 Evaporator Lift Q Slide 61

62 Inlet Pipelines Q Slide 62

63 Steam Generators Q Slide 63

64 Central Facility Q Slide 64

65 2011/2012 Compliance Summary Scheme Approval 11475E Clause 14 Pressure balance monitoring at 100/ W4/00 Not in compliance due to pressure instrumentation problems ERCB self disclosure letter sent August 27, 2012 ESRD Water Act Compliance Reporting 1F4/ W4M Construction Office Domestic Water produced for 3 months prior to receipt of license following application TDL received September 2011 Term License received Dec 12, W4M - Construction Camp Domestic Three monthly water levels not measured Three monthly water diversion amounts recorded but not reported 1F2/ W4M Drilling and Construction Water Production for approximately 1 month after TDL expired New TDL acquired August 21, 2012 Slide 65

66 2011/2012 Environmental Summary - Compliance & Amendments Compliance issues for non-ercb approvals - Contravention Notification ESRD Reference #257539: request for extension for submission of Wildlife Mitigation and Monitoring Program not received by ESRD Amendments to non-ercb approvals - EPEA Approval Amendment Application (submitted Dec 16, 2011) via the Kirby Expansion Project Application Slide 66

67 2011/2012 Environmental Summary - Monitoring Programs / Reclamation Environmental Monitoring - Wildlife sighting cards provided to workers and compiled information reported to ESRD through the Fish and Wildlife Management Information System - Environmental Monitor on site to oversee construction - Water quality testing of accumulated water on construction site prior to being pumped-off (EPEA Approval No and Directive 55) - Approved Wetlands / Hydrology Monitoring Program (as req by EPEA Approval) commenced Q Wildlife Monitoring Program (as req by EPEA Approval) expected to commence in 2013 Reclamation Programs - No reclamation required or conducted in 2011/2012 Slide 67

68 2011/2012 Environmental Summary - Provincial/Federal Programs Alberta Biodiversity Monitoring Program and associated Ecological Monitoring Initiatives Canadian Oil Sands Innovation Alliance (COSIA) Lower Athabasca Regional Plan (LARP) Ongoing participation in the development and implementation of regional frameworks Joint Canada/Alberta Implementation Plan for Oil Sands Environmental Monitoring Participation in the implementation of the program Cumulative Environmental Management Association (CEMA) Participation in various Working Groups/subgroups Oil Sands Developers Group Participation in various committees Slide 68

69 2011/2012 Environmental Summary - Provincial/Federal Programs Regional Aquatics Monitoring Program (RAMP) Participation in various subcommittees Regional Groundwater Monitoring Evaluation and Reporting (MER) Group for the Athabasca Oil Sands Participation in various subcommittees Wood Buffalo Environmental Association (WBEA) Participation in various committees Provincial and Federal Woodland Caribou Draft Policies Plan to contribute to range-level planning and subsequent implementation Slide 69

70 Kirby Approval (North) September 26, 2012 Premium Value Defined Growth Independent

71 Background Applications and Approvals Sept 22, 2010 Sept 27, 2010 Nov 18, 2011 ERCB Approval to Enerplus for Kirby North 2010 Canadian Natural purchases all Enerplus assets in Kirby region ERCB Approval 11472A to revise Project Area Dec 2, 2011 Dec 16, 2011 ERCB Approval 11472B to relocate Kirby North 2010 CPF Kirby Expansion Project Application submitted (includes Kirby North and Kirby South Project Areas) Slide 71

72 Updated Reservoir Mapping Updated Reservoir Mapping Slide 72

73 Site Activities To Date Facility License F44051 issued Dec 16, 2011 CPF site has been cleared Access road constructed Slide 73

74 THE FUTURE CLEARLY DEFINED Premium Value Defined Growth Independent

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77 Diluent Tank Diluent from Pipeline Prod Gas Butane Storage Vessels (x2) Trucked-in Butane Pads Emulsion Prod Gas Inlet Separator Inlet Separator Emulsion Prod Gas Free Water Knock Emulsion Out Oily Prod Water Oil Treaters (x2) Dilbit Gas Boot Sales Oil Tanks (x2) Dilbit to Sales Slop Oil Centrifuge Slop Oil Tanks (x2) Skim Tanks (x2) Source Water Tank Source Water Wells Fuel Gas from Pipeline Mixed Gas Drum ISF Deoiled Prod Water Mixed Fuel Gas Produced Water Storage Tank Steam Steam Generators Boiler Feed Water Evaporator Trains (x3) Evaporator Blowdown Salt Caverns Disposal Water Tanks Disposal Wells Magnesium Oxide & Sodium Hydroxide KIRBY IN-SITU OIL SANDS PROJECT SIMPLIFIED SCHEMATIC 9/15/2011 REV 0.