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2009 AADE Mid Continent Chapter Symposium
         Northeast US Operations
            January 14, 2009
Agenda

                    2009 AADE Mid Continent Chapter Symposium
                             Northeast US Operations...
Chesapeake and Shale Plays




    • Overview




3
Location of CHK Properties


                                                                                             ...
Appalachian Basin Statistics
    •   First oil in U.S. – 1859 drake discovery, Venago County, Pennsylvania @ 70 feet in De...
Early USGS Map of Devonian Shale Extents




6
Marcellus Shale Play Section




    • Geology Review




7
Appalachian Basin Petroleum Systems

                     Huron Shale
                                                    ...
Shale Basins




9
Early Mississippian ~360 MYA




10
•WEST            •Ohio Shale                                                      •EAST


  •PHASE THREE –                ...
OK – But What Does This Mean?
     •   Barnett Shale
         •   High Gas Yields – High Success Rates
         •   May be...
Operations and Production Section




     • Operations




13
Eastern US Areas of Interest




14
Marcellus Footprint and Drill Depth Map



                                                       966 data points
        ...
Black River Wellbore Schematic

                                    Drilling Procedure
                      Hydrothermal ...
Drilling Program


     Possible Problems:
     • Shallow Gas Potential
     • Salt Sections in 12-1/4” Hole
     • Very U...
CHK Marcellus Wells Drilled to Date

     • Re-entered 6 well bores to test Marcellus beginning July 2006
     • Initial v...
Marcellus Wellbore Schematic

                                           Drilling Procedure
                              ...
Marcellus Wellbore Schematic

                                  Drilling Procedure




               •   Drill 12 ¼” hole...
Drilling Program


 Possible Problems:
 • Lost Circulation Zones below the 9-5/8” casing
 • Directional / Targeting issues...
Drilling Program Opportunities

     Efficiencies expected from:
     • Pad drilling – expect up to 6 laterals per Pad
   ...
Improve As We Grow – Learn As We Expand




23
Lower Huron Wellbore Schematic

                                     Drilling Procedure




                  •   Drill 12...
Drilling Program

     Possible Problems:
     • Water flow below the 9-5/8” casing – instability
     • Dry Air Drilling ...
Lesson's Learned
     1. The Geologic Model works
         • Not all acreage will be prospective
         • Establish core...
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Kevin Ashley Mid Con Aade Presentation.Rev

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Chesapeake -DFW Rig Electification paper by Kevin Ashley

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  • Transcript of "Kevin Ashley Mid Con Aade Presentation.Rev"

    1. 1. 2009 AADE Mid Continent Chapter Symposium Northeast US Operations January 14, 2009
    2. 2. Agenda 2009 AADE Mid Continent Chapter Symposium Northeast US Operations January 14, 2009 • Overview of Eastern US • Geology • Operations • Lesson’s Learned Donald Rumsfeld at a Defense Department Briefing on February 12, 2002: “ There are known knowns. There are things we know that we know. There are known unknowns. That is to say, there are things that we now know we don’t know. But there are also unknown unknowns. There are things we do not know we don’t know.” 2
    3. 3. Chesapeake and Shale Plays • Overview 3
    4. 4. Location of CHK Properties Marcellus Shale ia ch ala pp rA he Ot & t rn Bel on ste st H ur Anadarko Ea hru er t er w Basin Lo Ov Woodford Fayetteville Shale Shale Scale: 1 inch = ≈275 miles es al Sh a am Barnett and Woodford Barnett ab Shale Plays Shale Al Permian Haynesville Shale Basin t Belt Thruschita Ark-La-Tex Delaware Oua Basin ast lf Co Gu xas Te La Thr ramide Counties with CHK leasehold ust Belt So xas Te uth Mississippian & Devonian black shales Thrust Belt CHK OKC headquarters CHK Eastern Division Headquarters CHK/CNR field offices 4 CHK operated rigs (145) CHK non-operated rigs (91)
    5. 5. Appalachian Basin Statistics • First oil in U.S. – 1859 drake discovery, Venago County, Pennsylvania @ 70 feet in Devonian Sandstone. 1823 first gas discovery made in Fredonia, NY. • Basin area: 185,000 square miles (118.4 mm ac) across 9 states and southern Ontario • Appalachian Basin = 2/3 size of Texas, 3x state of Oklahoma • Cumulative production 42 Tcf (7 Bboe) + 3 billion bbls oil = 10 Bboe produced • 257,000 wells in PI, 500,000+ total in basin? • Gas production approximately 2.0 Bcf/d, approximately 4% of U.S. production • New plays are emerging in deeper sections of basin, in unconventional tight gas shales (source rocks), sandstones, and hydrothermal dolomites. • 3-D seismic will reinvent the basin... • Marcellus Shale (31 MM ac.) is “Looming Giant” that will dwarf the Barnett Shale (2.7 MM ac.)! 5
    6. 6. Early USGS Map of Devonian Shale Extents 6
    7. 7. Marcellus Shale Play Section • Geology Review 7
    8. 8. Appalachian Basin Petroleum Systems Huron Shale USGS -30 Plays Identified Devonian Section Marcellus Shale Ohio, Huron, Marcellus Shales Alleghenian Orogeny Paleo-reconstruction Ordovician Section Acadian Orogeny Utica Shale Trenton-Black River Dolomite Taconic Orogeny 8
    9. 9. Shale Basins 9
    10. 10. Early Mississippian ~360 MYA 10
    11. 11. •WEST •Ohio Shale •EAST •PHASE THREE – •Marcellus Erosion of highlands Shale rapidly fills shallowing basin, Trough and •Rhinestreet Shale Bulge features migrate •Bulge and Trough Migrate West further west. •PHASE TWO–Collision ends and NA Plate rebounds. Deep, Anoxic, Sediment Starved Basin •Rhinestreet •Overriding shallows and both Bulge •Peripheral Bulge Shale African Plate and Trough migrate Cincinnati Arch westward. •Proximal Trough •PHASE ONE – Initial Collision - African Plate Overrides and Depresses NA Plate – Generating a very Deep, Anoxic, Sediment Starved Basin Termed a Proximal Trough •Marcellus Shale and associated Peripheral Bulge.
    12. 12. OK – But What Does This Mean? • Barnett Shale • High Gas Yields – High Success Rates • May be the largest natural gas field developed in the U.S. • Development of new technologies in horizontal drilling and hydraulic fracturing • Barnett Shale and Marcellus Shale • Although separated by 30 MY in time, both were generated by a similar depositional system and tectonic setting • Both were the initial sediments deposited in a very deep, sediment starved, anoxic trough that formed in response to an impinging tectonic plate • Marcellus Shale • Deep water depths – maximum preservation on organic material and higher maturity • Minimal Bioturbation resulting in maximum preservation of silt laminae and increased lateral permeability 12
    13. 13. Operations and Production Section • Operations 13
    14. 14. Eastern US Areas of Interest 14
    15. 15. Marcellus Footprint and Drill Depth Map 966 data points 11 core sites Marcellus Footprint 31 MM acres 15
    16. 16. Black River Wellbore Schematic Drilling Procedure Hydrothermal Fractured Dolomite Formation • Drill 17 ½” Surface hole on air • Set 13 3/8” casing and cement to surface • Drill 12 ¼” hole on air – Evaluate hole conditions • Set 9 5/8” casing and cement – if required • Drill 8 3/4” on air to KOP and switch to brine based mud • Drill from KOP and build angle at 12° per 100’ to top of Black River Formation • Set 7” casing and cement • Drill horizontal leg from 1,500’ to 4,000’ • Total drill days = 30 days 16
    17. 17. Drilling Program Possible Problems: • Shallow Gas Potential • Salt Sections in 12-1/4” Hole • Very Unstable Vernon Shale in 12-1/4” Hole • If these problems are minimized then by-pass the 9-5/8” casing • Fluid requirements for the Salt and Vernon shale must be maintained while building to horizontal • Lost circulation / returns while drilling fractured Dolomite formation 17
    18. 18. CHK Marcellus Wells Drilled to Date • Re-entered 6 well bores to test Marcellus beginning July 2006 • Initial vertical Marcellus test well spud March 2007 • Drilled 19 vertical Marcellus wells • Cored 6 vertical test wells thru Marcellus (analyzed 11 Marcellus cores) • Initial Horizontal well spud August 2007 • Drilled 15 horizontal wells – all successful • 19 vertical and re-entry Marcellus wells on line • 6 Horizontal Marcellus wells on line 18
    19. 19. Marcellus Wellbore Schematic Drilling Procedure Storage Fields • Drill 17 ½” Surface hole on air • Set 13 3/8” casing and cement to surface • Drill 12 ¼” hole on air to storage zones and then switch to brine based mud • Continue 12 ¼” hole to below storage zones • Set 9 5/8” casing and cement to above storage zones 8-1/2” • Drill 8 1/2” on air to KOP and switch to brine based mud • Build angle at 12° per 100’ • Drill horizontal leg from 3,000’ to 5,000’ • Total drill days = 25 days 19
    20. 20. Marcellus Wellbore Schematic Drilling Procedure • Drill 12 ¼” hole on air • Set 9 5/8” casing and cement • Drill 8 3/4” on air to KOP and switch to brine based mud • Build angle at 12° per 100’ • Drill horizontal leg from 3,000’ to 5,000’ • Total drill days = 21 days 20
    21. 21. Drilling Program Possible Problems: • Lost Circulation Zones below the 9-5/8” casing • Directional / Targeting issues in areas without 3D Seismic • Pad Drilling / Anticollision • Marcellus Shale Stability • Hole Cleaning in Extended Reach Horizontals 21
    22. 22. Drilling Program Opportunities Efficiencies expected from: • Pad drilling – expect up to 6 laterals per Pad • Learning curve efficiencies • Reduce days & costs with repeatable program • Water based mud in laterals • Reduce motor/MWD inefficiencies • Increased vendor competition • Economies of scale Coach Red Beaulieu: “That's kinda like my old man told me one time, Lynn. The only thing better than a crawfish dinner, is five crawfish dinners.” The Waterboy 22
    23. 23. Improve As We Grow – Learn As We Expand 23
    24. 24. Lower Huron Wellbore Schematic Drilling Procedure • Drill 12 ¼” hole on air • Set 9 5/8” casing and cement • Drill 8 3/4” on air to KOP • Set 7” casing and cement • Build angle at 10° per 100’ • Drill horizontal leg from 2,500’ to 4,000’ • Total drill days = 15 days • Run 4-1/2” Isolation String for completion 24
    25. 25. Drilling Program Possible Problems: • Water flow below the 9-5/8” casing – instability • Dry Air Drilling Horizontal Sections – Tool Reliability • Lower Huron Shale Stability • Flaring Gas while drilling on air • Tripping with Gas pressure 25
    26. 26. Lesson's Learned 1. The Geologic Model works • Not all acreage will be prospective • Establish core drilling areas for focus as new rigs arrive 2. The Rock Rules • Adapting drilling and completion techniques to various areas 3. People are the key • Strong Supports Teams are required (Contractors, Service Providers, Transportation) • Resources from Barnett, Fayetteville, Woodford, and Haynesville 4. Understand the full process and time requirements • Sourcing different water supplies • Sourcing different water disposal outlets • Changing service requirements • Fit-for-purpose rig designs 5. Education process for landowners, local and township governments, state government, local and state regulators 26
    27. 27. Divider Slide Title 27
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