UNCONVENTIONAL GAS RESOURCES

Transcription

1 UNCONVENTIONAL GAS RESOURCES Exploration, Development and Planning Support Services

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3 RPS is an international consultancy providing world-class local solutions in energy and resources, infrastructure, environment and urban growth. We employ more than 4500 people across the UK, Ireland, the Netherlands, the United States, Canada, Brazil, Africa, the Middle East, Australia and the Asia Pacific region and undertake projects in many other parts of the world. Since 2003, RPS has strengthened its capability using a mix of organic growth and acquisitions of leading consulting companies around the world, some of which have over three decades of experience in the exploration and development of unconventional gas. Our strength is that we are uniquely placed to provide a fully integrated response to our clients changing needs and specialised support to a specific function. We have extensive local knowledge supported by the international network of expertise and capabilities within our organisation. RPS & UNCONVENTIONAL GAS RPS is globally renowned for its expertise and experience in support of the exploration, development, production and commercialisation of gas assets. Our Unconventional Gas History RPS first became involved with tight gas, Coal Bed Methane (CBM)/Coal Seam Gas (CSG), shale gas and ultra-tight gas through project work in the United States with the Gas Research Institute and the Department of Energy. RPS is actively involved in the transfer of technology and leveraging our North American experience with unconventional gas evaluation and development to the other operating regions. We have steadily expanded our involvement in frontier hydrocarbon developments such as Underground Coal Gasification (UCG) and gas hydrates. Our participation in research and development has extended to support pilot testing of Underground Coal Gasification (UCG) and gas hydrate coring and production tests. Our greatest contribution to the commercialisation of new sources of energy has been through: n Identification and evaluation of new business opportunities n Technical support to data acquisition and interpretation n Application and dissemination of leading edge evaluation and development technologies n Facilitation of E&P activities through the timely management of the required approvals n Preparation of evaluations used in raising finances. How RPS Can Help RPS provides strategic and commercial advice and technical support to gas exploration and development worldwide. As with all projects, success requires a coordinated and integrated approach not only to geoscience, engineering and commercial analysis, but also to Environmental Impact Assessments (EIAs) and stakeholder and approvals management. We have been involved with several unconventional gas projects in North America, South America, Australia, UK, Europe, Africa, China, India and Indonesia. RPS offers support to geoscience operations in planning, permitting, positioning and quality control (QC) of seismic acquisition, as well as in processing and interpretation of data. New plays depend heavily on the accurate description of the cap rock and potential pay zone, fit-for-purpose coring programs with proper handling of cores, complete analysis and detailed core description, as well as DST or injectivity test planning and analysis. Our well site teams offer all of these services. Unconventional gas production poses operational challenges in the supply of water for field operations, the treatment and disposal of flow-back fluids,associated permitting and aquifer monitoring requirements.

4 UNCONVENTIONAL GAS RESOURCE PLAYS Unconventional gas resources will play an increasingly important role in fulfilling future energy requirements as conventional sources of natural gas mature and decline or become more costly to exploit. Unconventional gas is generally contained in large accumulations which challenge our common perceptions of what constitutes reservoir rock. Non-conventional drilling, stimulation or operating procedures are usually required in order to produce at commercial rates of gas flows. The key to commercialisation is to identify enabling technologies and the most productive sweet spots. Unconventional wells generally produce at rates that are deemed uneconomic by the conventional gas industry. In 2008, more than 65,000 unconventional wells in North America were producing on average only 0.12 MMscf/d/well. However, the well costs are paid out under initial transient production conditions when much higher rates are achieved, especially from fractured stimulated tight sands and shale gas wells. Operating at low average rates requires economies of scale and close attention to operating expenses and maintenance costs. Non-conventional materials are used to minimise costs and corrosion. Ongoing drilling and gas compression are significant components of the gas supply costs. By taking advantage of well manufacturing processes over large land holdings, unconventional gas Finding and Development (F&D) costs can be kept relatively low. Legend Major basins with unconventional resources 0 2,000 Km Modified after EIA

5 EXPLORATION AND DEVELOPMENT PLANNING Unconventional gas is generally in the first three stages of the E&P process that precede Front End Engineering and Design (FEED) and Field Development Planning (FDP). RPS Energy has the resources and considerable experience to support client activities at each of these stages. STAGE 1A Opportunity Identification Identification of a successful resource play is based on detailed basin and geochemical studies in comparison with the major unconventional resource developments in North America. RPS has completed scouting studies and due dilligence excercises for acreage acquisition purposes in many basins around the world. Exploration is not the only entry option. RPS has the ability to evaluate and quickly characterise large data-sets in a way that facilitates forecasting the likely range of performance for acquisition or farm-in opportunity analysis. STAGE 1B Exploration Support Managing Data Acquisition and Quality Control Good data is critical to unconventional gas exploration and evaluation. 0 RPS offers support to geoscience operations in planning, permitting, positioning and quality control (QC) of seismic acquisition, management of the interpretation process Land Access, Environmental Impact Assessments and Planning Approvals RPS can supply staff and approvals management services required for an exploration programme, including land access, surveying, EIAs and applications, cultural heritage assessments, seismic pegging teams, as well as Health, Safety, Environmental and Risk Management (HSERM) services. Well Site Geological and Log QC Services New plays depend heavily on the accurate description of the cap rock and potential pay zone, fit-for-purpose coring programs with proper handling of cores, complete analysis and detailed core description, as well as DST or injectivity test planning and analysis. STAGE 2 Delineation and Pilot Testing Programs Design of Delineation Wells Many unconventional gas plays depend on properly designed and executed well completions. The tight rocks and shales need high pressure fracture stimulations for which the well tubulars, treating equipment and fluids must be properly designed and pre-qualified. RPS is focused on the dissemination of this expertise from our centre of excellence for well engineering in Calgary, Canada. Resource Evaluation Pilot testing programs need to be properly planned and evaluated to establish commerciality. Knowledge of how productivity may vary within a play based on reality checks against reasonable analogies, adds credibility to theoretical estimates of future performance. Water Supply Management Unconventional gas delineation poses operational challenges in the supply of water for field operations, the disposal of treating fluids and associated permitting and aquifer monitoring requirements. RPS helps clients identify and implement cost-effective water treatment for use, disposal or re-injection, and compliance plans for water-dependent ecosystems. 1 Km 2 Km 10 s km Historic well Exploration well Pilot Study Exploration Licence Area Production Licence Area Development Outline

6 STAGE 3 Field Development and Pipeline Route Planning RPS brings a clear understanding of the options for planning a cost-effective, fit-forpurpose phased development programme for unconventional resource plays. Non-Conventional Well Designs and Stimulation Programmes RPS assists with the appropriate use of non-conventional well designs and the associated economic optimisation of well and fracture stimulation treatment size in the context of the available local services and equipment costs and gas price. Development Planning Applications RPS offers knowledge of the planning applications, EIA and approval requirements, as well as the commercial drivers for success. Our enabling services include: Environment RPS provides a diverse range of pragmatic and cost-effective environmental management services for the E&P project lifecycle. We provide both strategic and technical advice based on our operational history, as well as political sensitivity and commercial acumen. We provide companies with both in-house and external environmental management support, undertake EIAs/Environmental Impact Statements (EIS ) and manage the full range of environmental regulatory approvals processes. Our environmental services include: n Negotiation and communication with regulatory agencies and stakeholders n Cultural heritage n Ecological studies and reports on flora, fauna and habitats n EIAs/EIS, environmental auditing, monitoring and regulatory compliance. Water RPS covers all aspects of the water cycle from dewatering to water supply, stormwater management and wastewater disposal. We offer clients sound, practical and cost-effective solutions and aquifer impact assessments. Planning and Development RPS has extensive experience in the provision of timely, quality and cost effective planning and development services. Our planning team has detailed knowledge of relevant legislation, including the Significant/Major Projects requiring EIS. We work closely with our clients, our specialist teams and external consultants to provide comprehensive approval strategies, permit applications and reporting. We are adept at key stakeholder identification and liaison ensuring community support is achieved. Our planning services include: n Approval identification and strategies n Stakeholder management plans n Stakeholder liaison and community consultation n Development and permit applications and approvals n Environmental Impact Statements n Regulatory compliance assessments.

7 OUR EXPERIENCE Technical Evaluation of Shale Gas Developments RPS prepared an overview of recent shale gas developments in North America and the associated challenges with them. Our work included: n The development history of the main plays and their resource potential n A summary of geology, reservoir characteristics and evaluation techniques n A description of drilling and completion technologies and postfracture evaluation techniques n An overview of the production facilities, including costs and schedules n A review of emerging technologies n A summary of the environmental aspects of shale gas development n An outlook on shale gas exploration and the impact of gas prices. Environmental Impact Report and Statement of Environmental Objectives RPS developed the Environmental Impact Report and Statement of Environmental Objectives that form the approvals framework for CSG and UCG drilling and production testing in the St Vincent and Walloway Basins, South Australia. Australian CBM Project We have supported CBM producers and drilling contractors in Australia with HSE Management Systems and Audits; Seismic and Pipeline Survey Services; and Regulatory Submissions for pipelines and infrastructure. US CBM Production Modelling Integrated production modelling of over 2000 well CBM project in North America. Evaluation of Shale and Tight Sand Gas Potential for Frontier Basins in Australia and India RPS has undertaken both screening level studies for proponents and data room visits on behalf of potential investors. Where the results of the preliminary analysis were positive, the study was expanded to include the determination of prospective resources in specified areas. Shale Gas Exploration Potential and Resource Evaluation of European Basins RPS has carried out fully integrated multi-disciplinary studies of several UK and European basins for exploration sweet spot delineation and evaluation of hydrocarbon resources for Competent Persons Reports. Low Permeability Unconventional Study RPS was commissioned by an international oil company to undertake a Low Permeability Unconventional (LPU) study with the objective of identifying where the largest gas reserves and production would be located in 20 years. The first phase was to catalogue and evaluate all U.S. unconventional plays, including productivity characteristics, geologic setting and ultimate recovery. The objective of the second phase was to apply the knowledge of the U.S. plays to other areas and basins worldwide. Resource-to-Reserves Evaluation RPS was commissioned to undertake a study to evaluate the tight gas resource-to-reserves conversion for various operators in the Piceance Basin, Colorado. We also estimated the impact of development plans on earnings. Data Room Support on Shale Gas Opportunities in North America RPS has recently reviewed the Marcellus, Eagle Ford and Haynesville Shales in the U.S. and the Horn River and Cordova Shales in Northern Canada. Well Engineering and Stimulation Planning RPS has been involved in the application, design and analysis of Multi-Fracced Wells (MFW) since the late 80s, including attempts to drive down the drilling and completion costs for the fracturing of horizontal wells (MFHW) to commercialise unconventional oil and gas plays. UK CBM Project Planning (including EIA) and regulatory approval for CBM exploratory and pilot testing well sites in the UK for clients including Composite Energy Ltd, & Greenpark Energy Ltd (40+ schemes). Technical support, project management, planning, site design and civil construction support for Centrica Energy Ltd for multiple sites within South Wales. Barnett Shale Acreage Evaluation RPS examined public records, interviewed people active in the area and purchased, reprocessed and interpreted seismic data critical to characterising the Barnett shale potential on the edge of the Forth Worth Basin. This work led to the client contracting RPS to obtain a lease/ farm-out agreement that best met their needs.

8 For further information please contact: Printed on FSC certified, 100% post consumer recycled paper, bleached using an elemental chlorine free process. UK USA Australia Brazil Canada Malaysia Middle East Norway Russia Singapore August 2015