HILDA LAKE SAGD PILOT PERFORMANCE SUMMARY 2004 AEUB PRESENTATION BLACKROCK VENTURES INC

Transcription

1 HILDA LAKE SAGD PILOT PERFORMANCE SUMMARY 2004 AEUB PRESENTATION BLACKROCK VENTURES INC FEBRUARY, 2004

2 HILDA LAKE SAGD PILOT PERFORMANCE SUMMARY PRESENTATION OUTLINE PRODUCTION SUMMARY P1 AND P3 RECOMPLETION P1 PUMP INSTALL FIBER REPLACEMENT P1 OPERATION RE: OPTIC FIBER DATA - PUMP PERFORMANCE P3 OPERATION - STEAM RATES FLUID RATES I3 STEAM ALLOC. OBSERVATION WELL DATA COOLING AND GAS EVOLVEMENT FLUID RATES - LIFT POTENTIAL P3 ENVIRONMENTAL MONITORING PILOT PLANT FACILITY

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8 P1/I PERFORMANCE SUMMARY P1 WORKED OVER EARLY IN 2003, TO INSTALL ARTIFICIAL LIFT, AND REPLACE OPTIC FIBER STRING CONVENTIONAL ROD LIFT PUMP INSTALLED, WITH HYDRAULIC JACK MAXIMUM FLUID LIFT CAPACITY OF NEAR 330M3/FLUID/DAY DURING 2003, WELL FLUID RATES NEAR 140/STEAM NEAR 80 INSTRUMENT GUIDE STRING INSTALLED, OPEN ENDED INSTRUMENT STRING TO ALLOW FOR GAS INJECTION WELL PUMPED NEAR HEEL, WITH LOWER THAN EXPECTED EFFICIENCIES DUE TO STEAM AND VAPOR BREAKOUT STEAM REDUCED TO HALF OF PROJECTED RATE DUE TO PUMP EFF. AND BREACH IN SAGD FLOW

9 HILDA LAKE SAGD PILOT OPTIC FIBER DATA OBSERVATIONS FIBER TRACE OVERLAY SHOWN FOR BOTH FLOWING CONDITIONS, AND 13 HR/24 HR SHUTIN DURING LATE 2003 RESIDUAL HEAT SHOWS PRESENCE OF STEAM BREACH IN BOTH HEEL AREA, AND IN NEAR TOE REGIONS EVIDENT DURING WELL SHUTDOWN BREACHES APPEAR TO HAVE DEVELOPED IN CLOSE APPROACH AREAS, RATHER THAN DIRECTLY NEAR TUBING TERMINATIONS DURING EARLY STEAMING(1998) HOT WELL PUMP TEMP, AND WELL FLUID LEVELS EVIDENT IN FIBER DATA TRACES

10 HILDA LAKE SAGD PILOT OB4 TEMP. TRACES Blackrock Ventures ObservationWell 4 Depth (m) Temperature (DegC) ZomIn ZomOut GammaRay(API) 3/26/0123:53:26 3/26/0123:53:26 28/12/20019:21:24 28/12/20019:21:24 28/12/20019:21:24 28/12/20019:21:24 28/12/20019:21:24 28/12/20019:21:24 28/12/20019:21:24 28/12/20019:21:24 28/12/20019:21:24 28/12/20019:21:24 GammaRay (API) TEMPERATURE AT TOE REGION CONTINUES TO BUILD AT LOWER STEAM RATES UNDER MECHANICAL LIFT WELL POS. AT 38 M FROM PAIR AXIS SHOWS CONTINUED CONDUCTIVE HEATING AS HAD EARLIER DATA RECENT TEMPERATURE LEVELS NEAR 80 DEG. C NO EVIDENCE OF HEATING EFFECTS ABOVE OR BELOW TARGETED ZONE

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14 P1I1 PRODUCTION BEHAVIOR CURRENT -FUTURE EXPECTATIONS- CURRENT WELL BITUMEN RATE NEAR 25-30M3/DAY, AT 80 TONNES/DAY STEAM INJECTION AT I1 RATE HAS SEEN MINIMAL CHANGE IN ONE YEAR, AT SOR OF NEAR 3.0 OR LESS OPERATIONAL OPTION, MAY BE SUCCESSFUL LONGER TERM TO CAPTURE SAGD RESERVES, AT LESSER STEAM DEMAND, IN SPITE OF DAMAGED WELL PAIR EXERCISE HAS SHOWN DETRIMENTAL EFFECTS OF EXCESSIVE STEAM RATES IN CLEARWATER, AND LENDS SUPPORT TO LESS AGGRESSIVE STEAMING AS OUTLINED FOR ORION PAIRS FURTHER DEMONSTRATES RESILIENCY OF PROCESS IN SPITE OF WELL DAMAGE

15 P3I3 SUMMARY OF PERFORMANCE 2003 WELL CONTINUES TO FLOW FROM SINGLE STRING FLOW ALTERED FROM HEEL TO TOE IN MID 2003, AND OPERATED WITHOUT GAS LIFT FOR SEVERAL MONTHS - STEAM 70% TO HEEL OF I3 WHEN TOE PRODUCES, 50/50 OTHERWISE FLUID PROD NEAR 240 M3/DAY EQUIV TO CWE STEAM VOLUME FLUID BALANCE SHOWS EXCESSIVE STEAM LOSS IN LIFT PROCESS, DUE AT LEAST IN PART TO COOLER FLOW FROM PORTIONS OF WELL STEAM BUILD AWAY FROM WELL IN MID TO TOE REGIONS, MAY BE CONTINUING DUE TO EXCESSIVE WELL LENGTH PERIODS OF IMPROVED FLOW EXTENDING TO SEVERAL MONTHS SUGGEST PARTIAL RELEASE OF HOT FLUID BUILD

16 HILDA SAGD PILOT P3 WELL FIBER DATA COMPARISON FIBER UNDER CONTINUOUS FLOW SHOWS BUILD OF HOT FLUIDS TOWARDS HEEL AREA UNDER EITHER FLOW ARRANGEMENT BACKGROUND HEATING EFFECTS APPEAR SIMILAR OVER MOST OF THE WELL FOLLOWING A SHUTIN PERIOD OF SEVERAL HOURS DISCREET FLOW EFFECTS EVIDENT IN MOST OF WELL

17 SEQUENTIAL TEMP. - FIBER IMAGES P3 SAGD PRODUCER

18 HILDA LAKE SAGD PILOT P3 WELL PERFORMANCE BEHAVIOR FUTURE EXPECTATIONS PARTIALLY OPTIMIZED WELL AT EXCESSIVE OFFSET HAS YIELDED OIL RATES OF 50 TO 70 M3/DAY FOR VARYING PERIODS OVER THE PILOT HISTORY SOR BEHAVIOR ABOVE IDEAL LEVELS FOR MOST OF THIS PERIOD LARGELY A FUNCTION OF COOLER FLUID INFLOW, ASSOCIATED WITH AN EXCESSIVELY LONG WELL WELL BEHAVIOR HAS NECESSITATED CONSIDERABLE FIELD EXPERIMENTATION NOTABLY, WITH STEAM SWINGS, STEAM BOOSTS, GAS LIFT, AND FLOW BACK-PRESSURE OPERATION TO MAINTAIN FLOW, AND DISTRIBUTION OF PROCESS HEATING THOUGH A NON-IDEAL CONFIGURATION, P3 CONTINUES TO DEMONSTRATE RESILIENCY IN ACTUAL SAGD DRAINAGE ACHIEVABLE IN THE FIELD WHEN HIGHLY VARIABLE SUBCOOL LIMITS ARE PRESENT IN A SINGLE WELL-PAIR SYSTEM ARTIFICIAL LIFT STILL A CONSIDERATION FOR P3

19 Hilda Lake Compliance EUB 1. Experimental Approval 8093 (Amendment E) expires Sep Water Disposal Wells Approval 8175 B SWD1 (02/ ) SWD2 (03/ ) Formation Granite Wash McMurray Perf d Interval mkb mkb Allowed Press kpa 3400 kpa Operating Press kpa 100 kpa Daily Vol ~ 550 m 3 ~ 160 m 3 Packer isolation tests conducted Aug 12/02. No operational issues in Production Audit conducted in Sep 02. Deficiency letter sent to BlackRock in Dec 03 with response required by Feb One operational incident occurred in Feb 02 when plant upset caused rupture of the flare knockout drum.

20 Hilda Lake Compliance Alberta Environment Approval No Monthly Reporting of Total Sulphur and H 2 S from 8 static monitoring stations and SO 2 emissions. Annual Air Emissions Report filed for Annual Groundwater Use & Monitoring Report filed for Annual Industrial Runoff Report filed for Annual Conservation and Reclamation Report filed for No exceedences above Approval limits were reported in Significant items for 2003: Groundwater Monitoring Program will be expanded by 6 additional surface groundwater wells per requirements from AE. Soil Monitoring Program to be submitted and approved by AE in Temporary Groundwater Diversion Approval from the Muriel Lake aquifer for the removal of up to 600 m3/day will expire on Dec 31, 2003.