SANTA MARIA BASIN MONTEREY SHALE ONGOING DEVELOPMENT (PROVED-INFILL) DRILLING PROGRAM THIRD QUARTER

Size: px

Start display at page:

Download "SANTA MARIA BASIN MONTEREY SHALE ONGOING DEVELOPMENT (PROVED-INFILL) DRILLING PROGRAM THIRD QUARTER"

Bathsheba Harrington
6 years ago
Views:

1 SANTA MARIA BASIN MONTEREY SHALE ONGOING DEVELOPMENT (PROVED-INFILL) DRILLING PROGRAM THIRD QUARTER 2013

2 California: MONTEREY SHALE BACKGROUND 3 rd Largest Oil Producing State 4 th Largest Oil & Gas Producing State 4 of 10 Largest Currently Producing Oil Fields are in Southern California Monterey Shale Production History of More Then 100 Years OOIP >500 Billion Bbls Prolific Reservoir EUR 2.5B Bbl. In Existing Fields 6 of 20 Largest US Oil Fields Sourced in Monterey Shale 27 Existing Fields with 1 Billion Bbls or Greater EURs

3 CASMALIA SMV NW CASMALIA

4 SANTA MARIA VALLEY FIELD PROJECTS In-fill Drilling Project in Well Established Fields Reservoir is 100 to 600 Feet Thick Highly Fractured Monterey Shale PROVEN PRODUCER. Cumulative Production: ~230,000,000 BO to date. Formation with 40-80% Oil Saturation having 15-35% RF. ~17,000 Acreage Leasehold. All Projects are in the Prolific Santa Maria Basin at a Depth of Only 1,000 to 5,000 Feet (Depends on field). Est Lateral D&C Well Costs of $1,800,000/well. Significant Potential in Exploratory Targets. Two ~2,000 Lateral Producers Planned for August, 2013

5 SANTA MARIA VALLEY GENERAL LEASE MAP AVERAGE 3 TO 5 YEAR LEASES * Note: This is an older map. Current status , all leases should be outlined in red.

6 SANTA MARIA VALLEY FIELD CA STATE FIELD OUTLINE & CROSS SECTION Development area

7 SANTA MARIA VALLEY FIELD - SUMMARY PROVED RESERVES ONLY (5-1-13) CURRENT PRODUCTION ~60 BOPD SMV MONTEREY UNITS NUMBER OF ADDITIONAL WELLS PROPOSED 73 Laterals WORKING INTEREST % 100 NET REVENUE INTEREST % 79 COST PER 2,000 LATERAL WELL $ ~1,800,000 PROJECT DEVELOPMENT COST $ $183,633,000 NUMBER OF FACILITIES EXISTING / PLANNED X 1 / 6 AVG FACILITY COST $/FACILITY +$1,250,000 - INITIAL PRODUCTION RATE PER WELL BOPD 500 to 800 BOPD NET RECOVERABLE RESERVES ( D&M) BO 18,752,300 BO CRUDE PRICE ( , Plains) $/B $100 AVG WELL OPERATING EXPENSE $/WELL/MO $12,500 FUTURE NET REVENUE, UNDISC $ $1,207,475,750 FUTURE NET REVENUE, DISC 10% $ $701,745,932 RETURN ON INVESTMENT, UNDISC X 6.5 : 1 RETURN ON INVESTMENT, DISC X 4:1 IRR % >250

8 Current SMV Field Status Two 45 TO 50 angle Directional Wells drilled to date ( ): - Tog 200 on production IP +200 BOPD, Current 32 BOPD. Plan: add perfs & perform completion acid job. (Cemented & perf d completion). - Tog 102 on production IP 50 BOPD, Current 28 BOPD. Plan: Still producing back load acidize later. BOTH INITIAL WELLS WERE NOT DRILLED TO IDEAL LOCATIONS, AND NEITHER WERE DRILLED AS LATERAL WELLS (AS IS PLANNED FOR ALL FUTURE WELLS).

9 FUTURE SMV PLAN (2013) Four Infill (proved)~2,000 Lateral wells permitted and drilling locations & preparations currently underway. Rig available and being contracted, ALL PRODUCTION PERMITS IN PLACE. SWD Well also permitted and planned from same Pad location. PETREL model predicts 500 BOPD to 800 BOPD per well. Permitting in place to continue drilling an additional +25 Lateral Wells.

10 CASMALIA FIELD Producing zone is the Monterey ~1000 depth. Average production rate per well after steam stimulation is anticipated to be 30 to 50 BOPD. The results from initial development provides a good foundation for additional +1,000-acre field extension. PUD & PROB Reserves 2.5 acre well spacing. Permitting Cyclic Steam Project CONTIGUOUS TO IDENTICAL DOWNDIP CYCLIC STEAM PROJECT THAT CUM D ~1,400,000 BO.

11 CASMALIA FIELD

12 CASMALIA FIELD - SUMMARY PROVED RESERVES ONLY (5-1-13) UNITS CASMALIA CURRENT PRODUCTION ~8 BOPD MONTEREY NUMBER OF WELLS CURRENT / PLANNED 5 / 55 WORKING INTEREST % 100 NET REVENUE INTEREST % 79 DRILL AND COMPLETE COST $/WELL 350,000 NUMBER OF CURRENT FACILITIES (temp) X 1 FACILITY COST (FOR STEAM INJECTION) M$/FACILITY 2,500,000 AVG POST STEAM PROD RATE PER WELL BOPD NET RECOVERABLE RESERVES ( D&M) BO 3,000,000 CRUDE PRICE $/B 100 OPERATING EXPENSE (STEAMING) $/WELL/MO 12,000 FUTURE NET REVENUE, UNDISC $ 125,218,000 FUTURE NET REVENUE, DISC 10% M$ 56,544,000 RETURN ON INVESTMENT, UNDISC X 4.6 : 1 RETURN ON INVESTMENT, DISC X 2 : 1 IRR % 128

13 Current Casmalia Field Status Drilled 5 wells in July, 2012 to test Lower Monterey and extend Upper Monterey field westward. Built Temp Production Facility & placed on production Tested Lower Monterey at +20 BOPD, 800 BWPD (each). One well converted to SWD. Current production from 2 wells: 7 BOPD, 1,600 BWPD. WAITING ON STEAM PERMITS. Expected 9/2013.

14 FUTURE CASMALIA PLAN When Cyclic Steaming Permit received in : - Plug wells back to Upper Monterey. - Begin cyclic steaming with similar program to offset (contiguous lease to east). - Expected Production rate: 200 BOPD. - Begin drilling an additional 4 more infill producers from existing pad. - Start next facility to north and continue drilling in that area.

15 NW CASMALIA FIELD - EXPLORATION Field Plan Confirm with Seismic - Drill and Complete 2 Wells: 1 - Shallow 3,000 L. Knoxville confirmation Well. 1 - Deep 11,500 Monterey confirmation Well 1 - Temporary Ready-to-Operate Production Facility Total Initial Investment for Discovery: $3,500M TARGET: Monterey Shale Overthurst with >1,000 pay. Confirmed shallow Lower Knoxville pay. Enormous Resource Potential (+100,000,000 BO)

16 NW CASMALIA ACREAGE INVENTORY (~8,000 acs)

17 NW CASMALIA FIELD SUMMARY FIELD UNITS NW CASMALIA PHASE I & II MONTEREY L KNOX PHASE I PHASE II PHASE I PHASE II NUMBER OF WELLS X WORKING INTEREST % NET REVENUE INTEREST % DRILL AND COMPLETE COST M$ 2,249 25, ,000 NUMBER OF FACILITIES X FACILITY COST M$/FACILITY INITIAL PRODUCTION RATE BOPD 1,000 1, EST ULT RECOVERY (NET) MB 756 7, ,649 CRUDE PRICE $/B OPERATING EXPENSE $/WELL/MO 5,000 5,000 3,500 3,500 FUTURE NET REVENUE, UNDISC M$ 47, ,663 7, ,684 FUTURE NET REVENUE, DISC 10% M$ 32, ,663 4, ,456 RETURN ON INVESTMENT, UNDISC X RETURN ON INVESTMENT, DISC X IRR % >1000 > >1000

Bakken Shale: Evolution of a Giant Oil Field

Continental Resources Inc. Bakken Shale: Evolution of a Giant Oil Field Jack Stark Sr. VP Exploration Feb.16, 2011 Continental Resources Highlights #3 largest oil producer in the Rockies 310MM boe proved