Progressing C-SAGD recovery of bitumen from the Grosmont D reservoir

Transcription

1 Progressing C-SAGD recovery of bitumen from the Grosmont D reservoir LARICINA ENERGY Steve Brand P. Eng. WHOC Organized by:

2 Outline Project overview 1D experience and knowledge gained Early cycle performance 3D well Modelling progress based on 3D results Summary

3 Forward-looking Statements Advisory This Laricina Energy Ltd. (the Company ) presentation contains certain forward-looking statements. Forward-looking statements may include, but are not limited to, statements concerning estimates of exploitable original-bitumen-in-place, predicted recovery factors, steam-to-oil ratios and well production rates, estimated recoverable resources as defined below, expected regulatory filing, review and approval dates, construction and start-up timelines and schedules, company project potential production volumes as well as comparisons to other projects, statements relating to the continued overall advancement of the Company s projects, comparisons of recoverable resources to other oil sands projects, estimated relative supply costs, potential cost reductions, recovery and production increases resulting from the application of new technology and recovery schemes, estimates of carbon sequestration capacity, costs for carbon capture and sequestration and possible implementation schedule for carbon capture and sequestration processes or related emissions mitigation or reduction scheme and other statements which are not historical facts. You are cautioned not to place undue reliance on any forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both generally and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. Although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct and, accordingly that actual results will be consistent with the forward-looking statements. Some of the risks and other factors that could cause results to differ materially from those expressed in the forward-looking statements contained in this presentation include, but are not limited to geological conditions relating to the Company s properties, the impact of regulatory changes especially as such relate to royalties, taxation and environmental changes, the impact of technology on operations and processes and the performance of new technology expected to be applied or utilized by the Company; labour shortages; supply and demand metrics for oil and natural gas; the impact of pipeline capacity, upgrading capacity and refinery demand; general economic business and market conditions and such other risks and uncertainties described from time to time in the reports and filings made with security regulatory authorities, contained in other disclosure documents or otherwise provided by the Company. Furthermore the forward-looking statements contained in this presentation are made as of the date hereof. Unless required by law the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this presentation are expressly qualified by this advisory and disclaimer.

4 Pilot Location and Geology Grosmont Grosmont relative to the Wabiskaw McMurray formation Laricina acreage is in the heart of a significant resource Laricina Acreage

5 Initial Volume In-place (bnbbl) Grosmont Trend and Activity Map Athabasca Cold Lake Peace River * Information based on AER filings Source: Alberta Energy Regulator. Increasing industry focus on the Grosmont Formation Second largest bitumen resource after McMurray Dolomitized carbonate platform Regionally extensive subcrop exposure Concentrated area of thick bitumen Resource capture with an exploration mindset Scale, quality and proximity to infrastructure Captured resource in the sweet spot of the trend

6 Project Description Saleski Pilot project 1,800 bpd facility, approved Initially SAGD with transition to SC-SAGD in stage 2 Currently using cyclic thermal process (C-SAGD) Steam injection and production Solvent Injection through the same well Alternate between injection and production phases Increasing steam injection volumes in subsequent cycles Longer production periods in subsequent cycles Co-injection test performed in the C in 2012 NEXT STEPS 4 well pairs and 1 single cyclic well 2 well pairs in Grosmont D 1 single cyclic well in Grosmont D 2 well pairs in Grosmont C Grand Rapids water for steam generation Grosmont and Cooking Lake disposal zones Facility operating since Dec

7 Type Well- Grosmont

8 1 st Generation Drilled with water, highly overbalanced with no cuttings to surface Slotted liners run in the production section with acid washes D wells drilled this way: 1D and 2D. Saleski Pilot Well Lay-out 100m 115m 2 nd Generation Drilled with foam near balanced pressure to minimize fluid/cuttings losses, all cuttings back to surface No liner along production section with selective (packers) stimulation D well drilled this way: 3D

9 C-SAGD Cyclic Steam-Assisted Gravity Drainage Steam injection pressure < fracture pressure Gravity dominates flow (solution gas drive/thermal expansion also contribute) Initial C-SAGD injection C-SAGD production green: bitumen blue: water red: steam brown: heated matrix

10 Conversion from SAGD to C-SAGD Acid stimulation improved pressure differential between producer and injector Conversion to C-SAGD resulted in better oil rates and SOR Ongoing production continuing with benefit from underlying C heat CDOR Peak rate Cycle 1D Performance (m 3 /day) (m 3 /day) SOR SAGD Dec 2010 Jan Cycle 1 Feb 2012 May Cycle 2 July 2012 Sept Cycle 3 Oct 2012 Jan Cycle 4 Jan 2013 Present Life to date

11 Communication through the CD Marl Increased temperature at the toe of 1D following shut-in indicates heat communication from below Direct steam communication from 1C to 1D resulted in rapid temperature increase

12 2 nd Generation Saleski D Well Main Objective: Optimize production from Grosmont D by drilling a new generation D well 1D Well 3D Well Well Length 800m 800m Formation 1-2m above Marl Below the fractured mudstone layer 3-4m above Marl Above the fractured mudstone layer Drilling Over Balanced Near Balanced Completion Slotted Liner Perforated Liner Acidization After Steaming/Production Bullheaded at heel and toe Before Steaming Staged open-hole

13 3D Well Performance Well 3D began production in Q Peak oil production rate of 820 bbl/d (gross) SOR of 6.4 and calendar day oil rate of 110 bbl/d over first four cycles Predictable injection rate increase with progressive cycles Notes: BHT refers to bottom hole temperature BHP refers to bottom hole pressure Cycle CDOR (bbl/d) Cycle Cycle SOR

14 Modelling Approach Started with the question, if fractures were less prominent in the Grosmont D, could we model it like a clastic? Utilized a single porosity model (inter-granular porosity only)

15 History Match Single Porosity Model Single porosity model missed the early peak

16 Well 3D FMI Fracture Interpretation Heel Toe HEF: 36 healed fractures 76 open fractures BEICIP: 5 healed fractures 177 open fractures

17 History Match Dual Permeability Model Dual porosity model produced earlier

18 Temperature Cycle 3 End of Injection Single Porosity Model Dual Perm Model - Matrix Dual Perm Model - Fracture Uniform heat and oil drainage profile Steam injection shaped by fracture system Oil Saturation Single Porosity Model Dual Perm Model - Matrix Dual Perm Model - Fracture

19 Temperature Cycle 3 End of Production Single Porosity Model Dual Perm Model - Matrix Dual Perm Model - Fracture Uniform heat and oil drainage profile Matrix production shaped by fracture drainage Oil Saturation Single Porosity Model Dual Perm Model - Matrix Dual Perm Model - Fracture

20 Oil Rate vs Temp Field data indicates a repeated trend of peak production occurring at 150 o C with a decline in peak rate cycle over cycle Dual permeability model has replicated this production trend.

21 Summary C-SAGD potential is established at the Saleski Pilot Potential to co-develop the Grosmont C and D has also been demonstrated Long duration production cycle from 1D benefitting from C heat A new Grosmont D well, 3D, has presented an opportunity to evaluate standalone D potential Modelling of the Grosmont D requires consideration of both matrix and fracture permeability Ongoing modelling work can continue to refine the potential of the Grosmont D