TIPRO s 3rd Annual East Texas Conference. Future Oil and Liquids Development in East Texas

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Aldous Cole
6 years ago
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1 TIPRO s 3rd Annual East Texas Conference Future Oil and Liquids Development in East Texas

2 Navidad Resources, LLC Founded in employees Based in Tyler, Texas. Management comprised of 30 year+ industry veterans Applying modern technology to old fields.

3 Navidad Ft. Trinidad Project

$Ft. Trinidad is located in the prolific fractured$ ICI GEORGETOWN KURTEN AUSTIN CHALK BUDA GEORGETOWN

ROSE BROOKELAND AUSTIN CHALK PEARSALL AUSTIN CHALK

GEORGETOWN MASTERS CREEK AUSTIN CHALK GIDDINGS

4 Ft. Trinidad is located in the prolific fractured carbonate belt. ICI GEORGETOWN KURTEN AUSTIN CHALK BUDA GEORGETOWN FT. TRINIDAD WOODBINE BUDA GEORGETOWN EDWARDS GLEN ROSE BROOKELAND AUSTIN CHALK PEARSALL AUSTIN CHALK BUDA GEORGETOWN PEACH CREEK AUSTIN CHALK BUDA GEORGETOWN MASTERS CREEK AUSTIN CHALK GIDDINGS AUSTIN CHALK BUDA GEORGETOWN PLEASANTON AUSTIN CHALK BUDA GEORGETOWN >1.5 Billion BO & 9 TCF from 20K+ wells

Multiple pay zones offsetting existing production in prolific trend using

Non-Productive Eagleford Shale Woodbine Sand Potential Frac Woodbine Dexter

Shale Georgetown Lime Dendritic Frac Kiamichi Shale technology.

5 Multiple pay zones offsetting existing production in prolific trend using proven Formation Type Proposed Stimulation Technique Austin Chalk Lime Non-Productive Eagleford Shale Woodbine Sand Potential Frac Woodbine Dexter Maness Shale/Sand Shale Slick Water Frac Buda Lime Dendritic Frac Del Rio Shale Georgetown Lime Dendritic Frac Kiamichi Shale technology. Edwards Lime Dendritic Frac Paluxy Sand Glen Rose Lime Dendritic Frac PROSPECT TECHNOLOGY STRATEGY

6 Fractured limestones behave in unconventional ways. SPE Estimation of Fracture Porosity of Naturally Fractured Reservoirs With No Matrix Porosity Using Fractal Discrete Fracture Networks PROSPECT TECHNOLOGY STRATEGY

$of fractures.$ Buda core with

7 The Matrix exhibits very low permeability and porosity with thousands of fractures. Buda core with Styolites Fractures often terminate when intersecting Styolites

8 Micro-faults, joints, and large fractures along with microfractures provide permeability.

$39 ) Fracture Theoretical Effective Fracture Permeability (laminar) flow between fracture walls 80,000$ Natural Fractures can 70,000 60,000 50,000 be >100,000x more permeable than the matrix.

Natural Fractures can 70,000 60,000 50,000 be >100,000x more permeable than the matrix.

9 Effective k, md in a 10 mm (.39 ) Fracture Theoretical Effective Fracture Permeability (laminar) flow between fracture walls 80,000 Natural Fractures can 70,000 60,000 50,000 be >100,000x more permeable than the matrix. 40,000 30,000 20,000 80,000md 10, md 1,000md - Matrix 262 ft. 3 ft. Spacing Between Fractures SPE MS Probabilistic Reserves Assessment Using A Filtered Monte Carlo Method In A Fractured Limestone Reservoir

10 Enormous productivity increases have been achieved using modern completion technology.

11 Research shows that Shear Dilation creates permanent high conductivity fractures. SPE , A Shear Dilation Stimulation Model for Production Enhancement From Naturally Fractured Reservoirs, Hossain, Rahman, and Rahman, 2002

$fracture$ that

12 Water Fracs create a complex fracture network that contacts a much larger volume of reservoir rock. Fracture Cluster Acid Job Water Frac Vertical Well Bore

$Without a water frac the results were very disappointing.$

13 Without a water frac the results were very disappointing. Pre Water Frac Reserves Cumulative Production at Last Production Date Cumulative Oil 5,954 bbl Cumulative Gas 9,238 mcf Cumulative Production at Effective Date Cum Oil at Eff Date 5,954 bbl Cum Gas at Eff Date 16,205 mcf Remaining Reserves Rem Oil (Decline) 0 bbl Rem Gas (Decline) 0 mcf Ultimate Reserves Ult Oil (Decline) 5,954 bbl Ult Gas (Decline) 16,205 mcf PRE-FRAC EUR of :1

$After a water frac$ exciting.

14 After a water frac the results are very exciting. 20 fold increases are not uncommon

15 Multi stage Water Fracing optimized for the Stage 4 target formations combined with Stage 3 rapid exploitation commingling. Stage 2 Stage 1 Buda Georgetown Edwards Glen Rose

16 Some areas best suited to horizontal drilling with multi-stage hydraulic fracturing.

17 Wells produce large quantities of Oil (thank Goodness).

18 Can t produce oil unless we can sell the gas!

19 Extracting the Natural Gas Liquids from the gas adds significant value.

How $2.00 Gas Gas Uplift Price Refrigeration Gas Component Recovered Percentage % of Stream % of Residue Stream Value ($/Mcf) 0.00% 0.00% 2.490% $ - 0.00% 0.00% 1.310% $ - 0.00% 0.00% 73.930% $ 1.

42 becomes $5-$7 Gas Cryo Gas Component Recovered Percentage % of Stream % of Residue Stream Value ($/Mcf) CO2 0.00% 0.00% 2.490% $ - N2 0.00% 0.00% 1.310% $ - CH4 0.00% 0.00% 73.930% $ 1.39 C2H6 80.

20 How $2.00 Gas Gas Uplift Price Refrigeration Gas Component Recovered Percentage % of Stream % of Residue Stream Value ($/Mcf) 0.00% 0.00% 2.490% $ % 0.00% 1.310% $ % 0.00% % $ % 1.30% % $ % 2.93% 2.930% $ % 1.67% 0.555% $ % 0.62% 0.110% $ % 0.44% 0.049% $ % % $ 5.42 becomes $5-$7 Gas Cryo Gas Component Recovered Percentage % of Stream % of Residue Stream Value ($/Mcf) CO2 0.00% 0.00% 2.490% $ - N2 0.00% 0.00% 1.310% $ - CH4 0.00% 0.00% % $ 1.39 C2H % 10.38% 2.594% $ 1.87 C3H % 5.57% 0.293% $ 2.15 C4H % 2.20% 0.022% $ 1.43 C5H % 0.72% 0.007% $ 0.60 C % 0.49% 0.005% $ % $ 7.90 Navidad Gas Quality Gas Price $ 2.00 Crude Price $ 90 Component Mole Percent Heat content vs CH4 GPM % of WTI Product price ($/Mcf or $/bbl) CO2 2.49% $ - Nitrogen 1.31% $ - Methane 73.93% % $ 2.00 Ethane 12.97% % $ Propane 5.86% % $ Butane 2.22% % $ Pentane 0.73% % $ Hexane 0.49% % $ Ethane

21 Sharing processing capacity with partners increases efficiency.

DEEPA TM Stimulation of Natural Fracture Networks in Austin Chalk

DEEPA TM Stimulation of Natural Fracture Networks in Austin Chalk Contents 1. Background 2. Laboratory Tests 3. Field Test - Vertical Well 4. Field Test - Horizontal Well Summary DEEPA TM in-situ acidizing