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The Emerging Rogersville Shale Play: Hurry up and Wait

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Title The Emerging Rogersville Shale Play: Hurry up and Wait
Presentation Type Energy
Presenter Harris, Dave
Date 4/13/2016
Location Pittsburgh, PA
Meeting AAPG Pittsburgh Playmaker Forum

For video of presentation visit

http://www.aapg.org/resources/videos/details/lvid/32197/mvid/12601/dave-harris-the-emerging-rogersville-shale-play-hurry-up-and-wait

Published in: Science
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The Emerging Rogersville Shale Play: Hurry up and Wait

  1. 1. The Emerging Rogersville Shale Play: Hurry up and Wait… Dave Harris John Hickman Kentucky Geological Survey University of Kentucky Lexington AAPG Playmaker Forum Pittsburgh April 13, 2016
  2. 2. Outline of Presentation • Rogersville geologic and geochemical framework • Play status and recent activity • KGS research initiatives and recent Kentucky legislation
  3. 3. Previous work • Rome Trough Consortium (1999-2002) • Regional stratigraphic and structural study • Cross sections, core descriptions, maps, field study • Hydrocarbon and source rock geochemistry • 2004 Open-file report available at KGS • Study did not consider the unconventional resource potential of the Rogersville Shale • Bob Ryder (USGS) regional cross sections for Appalachian Basin– most available for download at usgs.gov
  4. 4. Middle Cambrian Paleogeography Ron Blakey, Colorado Plateau Geosystems, Arizona USA
  5. 5. Rome Trough Structural Features
  6. 6. Pre-Knox Stratigraphy • Inconsistent names across 3-state area • Problems in defining Rome and Conasauga, Mt. Simon, basal sandstone • Use of Rome in Ohio (Janssens, 1973)
  7. 7. Stratigraphic Problem 1000 feet 0 200 GR 2 3 RHOB 0 200 GR 2 3 RHOB 0.3 -0.1 NPHI 0 200 GR 2 3 RHOB 0.3 -0.1 NPHI 4000 7000 800090001000011000120001300014000 Scioto Co., OH Elliott Co., KY Johnson Co., KY DATUM: BASE KNOX GROUP Kentucky River Fault Zone Irvine-Paint Creek Fault Zone • Correlations across growth faults • Biostrat data lacking • Important for prediction of reservoir and source distribution
  8. 8. 0 200 GR 2 3 RHOB 0.3 -0.1 NPHI Maynardville Ls Nolichucky Shale Maryville Limestone Rogersville Shale Rutledge Ls Pumpkin Valley Sh Rome Formation Rome Fm-Middle Shady Dolomite Basal Sandstone Precambrian Rome Fm-Lower 8000 9000 10000 11000 12000 13000 14000 ConasaugaGroupRomeFm. Pre-Knox Type Log U.S. Signal Elkhorn Coal Johnson Co. Kentucky Gamma ray shaded By log-calculated lithologies
  9. 9. FEET 0 89,186 Cross Section Index Map North South SW NE
  10. 10. Kentucky River Fault Zone Irvine-Paint Creek shelf Irvine-Paint Creek Fault Zone Rowan KY Elliott KY Elliott KY Morgan KY Morgan KY Wolfe KY Breathitt KY Perry KY Leslie KY <7.63MI> <7.86MI> <7.17MI> <16.66MI> <5.91MI> <12.60MI> <11.93MI> <11.95MI> 0 200 GR 2 3 RHOB 0 200 GR 0.3 -0.1 NPHI 0 200 GR 2 3 RHOB 0.3 -0.1 NPHI 0 200 GR 2 3 RHOB 0.3 -0.1 NPHI 0 200 GR 2 3 RHOB 0 200 GR 2 3 RHOB 0.3 -0.1 NPHI 0 200 GR 0.3 -0.1 NPHI 0 200 GR 2 3 RHOB 0.3 -0.1 NPHI 0 200 GR 60007000 70008000 7000 700080009000100001100012000 7000800090001000011000 80009000 80009000 North South 1,000 feet CONASAUGAROME Grenville Basement
  11. 11. Pulaski KY Jackson KY Lee KY Wolfe KY Johnson KY Mingo WV Lincoln WV <42.20MI> <19.75MI> <20.67MI> <35.95MI> <30.91MI> <24.92MI> 0 200 GR 2 3 RHOB 0.3-0.1 NPHI 0 200 GR 2 3 RHOB 0.3-0.1 NPHI 0 200 GR 2 3 RHOB 0.3-0.1 NPHI 0 200 GR 2 3 RHOB 0.3-0.1 NPHI 0 200 GR 2 3 RHOB 0.3-0.1 NPHI 0 200 GR 2 3 RHOB 0 200 GR 2 3 RHOB 0.3-0.1 NPHI 3000400050006000700080009000 40005000600070008000900010000 3000400050006000700080009000 50006000700080009000100001100012000 7000800090001000011000120001300014000 110001200013000140001500016000170001800019000 110001200013000140001500016000170001800019000 HS=175000 SW NE PETRA 10/1/2004 6:29:01 PM (cross section.CST) 1,000 feet Rome
  12. 12. East Tennessee Conasauga Outcrops From Rankey and others, 1994 • Large scale depositional cycles • Carbonate ramp thick- ens to east • Intrashelf shale basin to west
  13. 13. Wayne Lawrence Elliott Carter Morgan Johnson MartinFEET 0 34,330 PETRA 4/25/2014 6:18:23 PM Rome Trough Production Inland 529 White (32 bbl/day Maryville) Exxon Smith Rogersville core Homer Field Carson 1 Kazee 11MMCFD Ashland 1 Williams (1MMCFD Nolichucky Sh.) Faults: Surface Basement
  14. 14. Exxon #1 Smith core: 11,191-11,200’
  15. 15. Cambrian Source Rocks in Rome Trough
  16. 16. RTC Maturity and Kerogen Data
  17. 17. min0 10 20 30 40 50 pA 0 500 1000 1500 2000 2500 FID1 A, (Z:HP6890~1HPCHEM1DATAH01-1218WE32682A.D) n-C8 n-C9 n-C10 n-C11 n-C12 i-C13 i-C14 n-C13 i-C15 n-C14 i-C16 n-C15 n-C16 i-C18 n-C17Pr n-C18Phy n-C19 n-C20 n-C21 n-C22 n-C23 n-C24 n-C25 n-C26 n-C27 n-C28 n-C29 n-C30 n-C31 n-C32 n-C33 n-C34 19 17 1513 pr ph Bitumen Extract - Rogersville Shale No. 1 Smith Wayne Co., WV 11,161.5 ft Oil – Source Rock Correlation 15 13 17 19 ph pr Oil*– Maryville Limestone No. 529 White Boyd Co., Ky 7,574 – 7,598 ft *Data provided by Richard W. Beardsley
  18. 18. Additional TOC/Rock-Eval Data • GeoMark, 2007 • Talisman, 2009 – 96 samples, 8 wells, no reliable results > 1% • Petro-Hunt, 2011 – 137 samples, 12 Ky. Wells, highest TOC was 0.24% • Cimarex data (2012 and 2014) – Sampled Rogersville cuttings in 12 wells – Of 131 samples, only 4 had TOC > 1% (Exxon Smith and Ashland Williams wells)
  19. 19. 7000.0 8000.0 9000.0 10000.0 11000.0 12000.0 13000.0 14000.0 15000.0 16000.0 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 Depth(ft) Total Organic Carbon (percent) Rogersville Shale (core) Rogersville Shale (cuttings) Rogersville TOC: sample type Exxon Smith core
  20. 20. Rogersville Shale Summary • 5,000 to 10,000 ft deep in eastern Kentucky • 2–4.8% TOC in parts, and has generated gas & condensate • Up to 1,100 ft thick in Kentucky, but limited to deeper parts of Rome Trough– not all is organic rich
  21. 21. Rogersville Play Concept • Clues: mature source rock, a few mud logs shows, scattered deep shows and production, reports of overpressure (Gates & Watson, 1975, SPE 5447) • Challenges: mostly 1970’s-vintage logs, poor log data due to borehole washouts, few cores, limited production, precipitous fall in oil and gas prices
  22. 22. Keys to proving the concept • Confidence in one good data point (Exxon core) • Explaining other discouraging TOC results • Targeting wet gas/condensate area for liquids • Exploiting gray area in regs to keep data tight for 5 years–stratigraphic test drilling permits • Securing strong lease position after first well
  23. 23. Current Play Status • Five wells drilled to date – Bruin Expl. (Cimarex): apparent discovery (shut-in) Lawrence Co., Kentucky – Cabot Oil & Gas: 1 vertical, Putnam Co., West Virginia, producing dry gas, zone unknown – Chesapeake Energy: 2 verticals (shut-in), Lawrence County, Kentucky – Horiz. Tech. Energy (EQT): 1 horizontal, (under evaluation?), Johnson Co., KY • Three undrilled horizontal lateral permits • Activity on hold due to low prices
  24. 24. Chesapeake LAW1 Northup Est Bruin Expl 1 Walbridge Hard Rock Expl 1 Young, GD Cabot 50 Amherst Industries Chesapeake LAW1 Stephens, J Bruin Expl 1 Young, S Horiz. Tech Energy 572360 EQT
  25. 25. Bruin #1 Young Lawrence County • Slickwater frac (677,000 gal fluid, 600,000 lb sand), 576 ft interval • Tested 115 MCFPD and 19 BOPD (5/6/2014), 2599 psi SIP • Shut-in 5/30/2014 • 4,800 ft horizontal lateral permitted Corniferous Rose Hill Shale Clays Ferry & Lexington Knox Nolichucky Maryville Conasauga Rogersville Conasauga 1,968 2,599 3,819 5,333 7,072 7,613 9,652 10,468 11,044 TD 11,967, Rome
  26. 26. Resulting Leasing Boom • Key Ky. counties: Johnson, Magoffin, Lawrence • More than 4,275 deep leases in 18 months ending 6/15 • Prices per acre: $250- 300 ($25-50 was common 5 years ago) Wes Cate, Global Natural Resource Mgmt, 2015
  27. 27. Cabot #50 Amherst Industries, Putnam County, WV • Completed in 2015; producing dry gas from ?? 0 10 20 30 40 50 60 70 80 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec MonthlyGas(MMCF) 079-01538 Cabot 50 Amherst Industries Actual Hyperbolic decline Qt=Qi/((1+0.67*0.5*t)^(1/0.67)) 67.4 2015 | 2016 Projected 20-month cumulative: 305 MMCFG Decline analysis by Brandon Nuttall, KGS 11.6
  28. 28. Other wells • Horizontal Technology Energy Corp. (EQT) – Johnson County, KY: 4,300 ft lateral drilled/tested • Chesapeake Energy – Two vertical wells re-permitted as oil & gas wells, the Northup as a 5,200 ft lateral
  29. 29. KGS Research Efforts • Two monitoring programs to collect baseline data: – Microseismic: 12 stations installed; partnering with Cimarex Energy, Nanometrics – Groundwater quality from domestic wells • Establishing background data prior to development will allow recognition of natural vs. man-made events • Goal: avoid induced seismicity, fracking concerns seen in other areas
  30. 30. KGS Microseismic Station Installation 10/19/2015 Chesapeake #1 Stephens 10/19/2015 Microseismic stations
  31. 31. New Regulations: 2015 • Senate Bill 186 passed – Provides regulatory certainty for deep shale dev. – New deep well definition (>6,000 ft) – High-volume horizontal fracs: >80,000 gal per stage or 320,000 gal total – For deep HVHF, notify surface owners within 1,000 ft of well head before frac, and surface water/groundwater testing required – FracFocus disclosure required for HVHF within 90 days
  32. 32. New Regulations: 2016 • Senate Bill 188 passed – Clarifies confidentiality on stratigraphic test permits – Limit of 3 years confidentiality on strat tests – Converting strat test to oil and gas permit reduces confidentiality to 1 year (same as oil and gas permit)
  33. 33. Conclusions • Cambrian Rogersville Shale petroleum system exists in Rome Trough • Rogersville unconventional play concept has been proven– economic success has not • Data is very scarce, leading to hype and speculation • Activity on hold due to low prices • Play status: WOD (waiting on data)

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