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UPDATE – CRC/OXY HIGHLIGHTS
California Resources
Corporation• Greater Elk Hills Area
• Luis Romualdez, Chief Reservoir Engineer
GEHA ADM Supervisors:
• David George ~ 1.5 years
• Ken Haney ~ 0.6 years
2015 Chief RE Mandate:
• M.O.S.T. = Mentoring (20%), Optimization (30%), Surveillance (40%), Training (10%)
2013-2015 Highlights (numbered as per Attachments):
1) Streamlined and successfully implemented the GEHA Surveillance Process, critical in
surpassing the Elk Hills production target to date by about 5,000 boe/d
2) Assisted the Stevens RMT in booking an additional 8–10 MMBOE of proven reserves for the
Stevens 31S
3) Instrumental in determining the best methodology to book proven reserves for the contentious
ESOZ reservoir as corroborated by Central Reserves’ final decision (i.e., by fault block with
maximum b=1)
4) Successfully procured and implemented the 3DSL streamline waterflood re-alignment program
which has resulted in success at Yowlumne and many more CRC opportunities for
“incremental oil at zero cost”
5) Leading the initiative for “poor boy” EOR at CRC such as microbial, micro-emulsion and
electric heating.
6) Successfully implemented the RE development and mentorship programs
Achievement Highlights: 2013-2015
(1) 2015 GEHA Surveillance Process
Exception Based
Surveillance
(Losers/Gainers)
Operational ? ACTION
Operations
Engineer
Review
Resolved?
Scheduled
Operational
Checklist
Scheduled
Reservoir
Surveillance
ACTION
ACTION
Ongoing
Base/Wedge
Surveillance
Reservoir?
Forward Exception Well List
to Exception Surveillance
(Field Operations)
Well List
(Region/Strip/Pattern)
Well List
(PDP FC Deviation)
FIELD OPERATIONS
(daily / weekly)
OPERATIONS ENGINEER
(weekly / monthly)
RESERVOIR
MANAGEMENT TEAM
(monthly / yearly)
Y
N
Y
N
N
Y
(2) 31S Shales - PUD Location Map
(2014)
4
34S Area (NAB)
32S Area (NABCD)
West Half Flanks (NAB)
West Half Crest (NAB)
36S Area (NABCD)
• Analog wells are selected based on geologic similarity and vintage in areas with
similar producing characteristics
• Generally PUD/ P2 / P3 designation based upon one/two/three offsets away,
respectively, from active wells with rates that would support capital investment
Shales
RESERVE CATEGORY OPEN CLOSE
P1 77 54
P2 13 25
P3 1 10
C1 0 0
C2 62 69
C3 27 27
Shales TOTAL 180 185
Shales Transfers to PDP
RESERVE CATEGORY Number Drilled
P1 18
P2 3
P3 0
C1 0
C2 17
C3 0
Shales TOTAL 38
21
3
11
15
4
ESOZ PDP Estimation Methods
Method
Name Forecast Granularity Forecast Method
Hyperbolic Factor
Limitations
Base Well Set Used to
Define Initial Decline
Rate
Gross PDP Base
Reserves
(MMBOE)
Net PDP Base
Reserves
(MMBOE)
Reasonable
Certainty
Case 0 Fault Block Oil Rate vs. Time b ≤ 2 YE2009 99.97 69.99
Case 1 Fault Block Oil Rate vs. Time b ≤ 1 YE2009 49.66 34.77
Case 2 Individual Well Oil Rate vs. Time N/A N/A 49.74 34.82
Case 3 Fault Block Log(GOR) vs. Cumulative Oil N/A YE2013 73.90 51.73
Case 4 Fault Block Oil Rate vs. Cumulative Oil N/A YE2013 52.88 37.02
Case 5 Full Field Log(GOR) vs. Cumulative Oil b = 1 YE2013 83.75 58.63
Case 6 Full Field Log(GOR) vs. Cumulative Oil b = 1 YE2011 48.95 34.27
Case 7 Fault Block Oil Rate vs. Time b = 1 YE2013 90.42 63.30
(3) ESOZ PDP Results – 2014 Conclusions
**
*All volumes shown are reported as of YE2014
** The volumes are reasonable. This method assumes that all gas is being produced by the YE2011 base, which is an unreasonable assumption.
6
(4) RESULTS OF OPTIMIZATION (YOWLUMNE FIELD)
Lost one of main injectors
Start Optimizing Target Rates
Provide April Target Rates
Lost three producers
(Surface and
Downhole issues)
DailyProduction(BOEPD)
3.5 % monthly
exponential
Decline
2.3 % monthly
exponential Incline
(5) MEOR Technology
(6A) CAREER PATH – RESERVOIR ENGINEERING
Experience Level/DevelopmentStages
Foundation Intermediate Advanced Leadership
GRADE 21 - 22 GRADE 23 - 24 GRADE 25 - 26 GRADE 25+
Engineer, Staff Engineer
Sr Engineer, Engineering
Advisor
Sr Engineering Advisor,
Engineering Consultant
Chief Engineer,
Leader, Manager
Engineering Career Options,
Technical Skill Development
Specialized Technical
Skill Development
Advanced Technical Skill
and Expertise
BusinessUnit
Management
ROTATION AND MENTORSHIP
PROGRAM (0 - 5 YEARS):
RESERVOIR, COMPLETIONS,
OPERATIONS, FACILITIES
TRAINING: BASIC / FOUNDATIONAL INTERMEDIATE ADVANCED SPECIALIZED
CRC:
• GEHA RE Competency Matrix
• CRC Mentor Handbook
• CRC Mentee Handbook
Others:
• Oxy Technical Career Ladder Reference Guide
• Oxy Engineering Competency Matrix
• Detailed RE Technical Competency Matrix
*Mentoring Resources at S:asset development_ADM2015 GEHA RE Mentorship
(6B) GEHA Mentorship Resources* – Reservoir Engineering
(7) GEHA CENTRAL RESERVOIR ENGINEERING - WHO?
• CRC Geophysical Leadership
• RMT, Regulatory, Training
• CRC Specialist
Leadership
• CRC Data Reporting,
Training
• CRC Specialist
Leadership
• RMT, Community,
Training
• GEHA Geophysical
Support
• RMT, Regulatory,
Mentoring
• GEHA Operations
Geology
• Core Storage, RMT,
Training
• CRC Reservoir Engineering Leadership
• Mentoring, Optimization, Surveillance,
Training
2015 Team Projects:
• 26R Reservoir Analysis
• 31S Shale Gas Injection Evaluation
• 24Z/26Z Reservoir Analysis

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Luis Romualdez_CRC_Oxy

  • 1. UPDATE – CRC/OXY HIGHLIGHTS California Resources Corporation• Greater Elk Hills Area • Luis Romualdez, Chief Reservoir Engineer
  • 2. GEHA ADM Supervisors: • David George ~ 1.5 years • Ken Haney ~ 0.6 years 2015 Chief RE Mandate: • M.O.S.T. = Mentoring (20%), Optimization (30%), Surveillance (40%), Training (10%) 2013-2015 Highlights (numbered as per Attachments): 1) Streamlined and successfully implemented the GEHA Surveillance Process, critical in surpassing the Elk Hills production target to date by about 5,000 boe/d 2) Assisted the Stevens RMT in booking an additional 8–10 MMBOE of proven reserves for the Stevens 31S 3) Instrumental in determining the best methodology to book proven reserves for the contentious ESOZ reservoir as corroborated by Central Reserves’ final decision (i.e., by fault block with maximum b=1) 4) Successfully procured and implemented the 3DSL streamline waterflood re-alignment program which has resulted in success at Yowlumne and many more CRC opportunities for “incremental oil at zero cost” 5) Leading the initiative for “poor boy” EOR at CRC such as microbial, micro-emulsion and electric heating. 6) Successfully implemented the RE development and mentorship programs Achievement Highlights: 2013-2015
  • 3. (1) 2015 GEHA Surveillance Process Exception Based Surveillance (Losers/Gainers) Operational ? ACTION Operations Engineer Review Resolved? Scheduled Operational Checklist Scheduled Reservoir Surveillance ACTION ACTION Ongoing Base/Wedge Surveillance Reservoir? Forward Exception Well List to Exception Surveillance (Field Operations) Well List (Region/Strip/Pattern) Well List (PDP FC Deviation) FIELD OPERATIONS (daily / weekly) OPERATIONS ENGINEER (weekly / monthly) RESERVOIR MANAGEMENT TEAM (monthly / yearly) Y N Y N N Y
  • 4. (2) 31S Shales - PUD Location Map (2014) 4 34S Area (NAB) 32S Area (NABCD) West Half Flanks (NAB) West Half Crest (NAB) 36S Area (NABCD) • Analog wells are selected based on geologic similarity and vintage in areas with similar producing characteristics • Generally PUD/ P2 / P3 designation based upon one/two/three offsets away, respectively, from active wells with rates that would support capital investment Shales RESERVE CATEGORY OPEN CLOSE P1 77 54 P2 13 25 P3 1 10 C1 0 0 C2 62 69 C3 27 27 Shales TOTAL 180 185 Shales Transfers to PDP RESERVE CATEGORY Number Drilled P1 18 P2 3 P3 0 C1 0 C2 17 C3 0 Shales TOTAL 38 21 3 11 15 4
  • 5. ESOZ PDP Estimation Methods Method Name Forecast Granularity Forecast Method Hyperbolic Factor Limitations Base Well Set Used to Define Initial Decline Rate Gross PDP Base Reserves (MMBOE) Net PDP Base Reserves (MMBOE) Reasonable Certainty Case 0 Fault Block Oil Rate vs. Time b ≤ 2 YE2009 99.97 69.99 Case 1 Fault Block Oil Rate vs. Time b ≤ 1 YE2009 49.66 34.77 Case 2 Individual Well Oil Rate vs. Time N/A N/A 49.74 34.82 Case 3 Fault Block Log(GOR) vs. Cumulative Oil N/A YE2013 73.90 51.73 Case 4 Fault Block Oil Rate vs. Cumulative Oil N/A YE2013 52.88 37.02 Case 5 Full Field Log(GOR) vs. Cumulative Oil b = 1 YE2013 83.75 58.63 Case 6 Full Field Log(GOR) vs. Cumulative Oil b = 1 YE2011 48.95 34.27 Case 7 Fault Block Oil Rate vs. Time b = 1 YE2013 90.42 63.30 (3) ESOZ PDP Results – 2014 Conclusions ** *All volumes shown are reported as of YE2014 ** The volumes are reasonable. This method assumes that all gas is being produced by the YE2011 base, which is an unreasonable assumption.
  • 6. 6 (4) RESULTS OF OPTIMIZATION (YOWLUMNE FIELD) Lost one of main injectors Start Optimizing Target Rates Provide April Target Rates Lost three producers (Surface and Downhole issues) DailyProduction(BOEPD) 3.5 % monthly exponential Decline 2.3 % monthly exponential Incline
  • 8. (6A) CAREER PATH – RESERVOIR ENGINEERING Experience Level/DevelopmentStages Foundation Intermediate Advanced Leadership GRADE 21 - 22 GRADE 23 - 24 GRADE 25 - 26 GRADE 25+ Engineer, Staff Engineer Sr Engineer, Engineering Advisor Sr Engineering Advisor, Engineering Consultant Chief Engineer, Leader, Manager Engineering Career Options, Technical Skill Development Specialized Technical Skill Development Advanced Technical Skill and Expertise BusinessUnit Management ROTATION AND MENTORSHIP PROGRAM (0 - 5 YEARS): RESERVOIR, COMPLETIONS, OPERATIONS, FACILITIES TRAINING: BASIC / FOUNDATIONAL INTERMEDIATE ADVANCED SPECIALIZED
  • 9. CRC: • GEHA RE Competency Matrix • CRC Mentor Handbook • CRC Mentee Handbook Others: • Oxy Technical Career Ladder Reference Guide • Oxy Engineering Competency Matrix • Detailed RE Technical Competency Matrix *Mentoring Resources at S:asset development_ADM2015 GEHA RE Mentorship (6B) GEHA Mentorship Resources* – Reservoir Engineering
  • 10. (7) GEHA CENTRAL RESERVOIR ENGINEERING - WHO? • CRC Geophysical Leadership • RMT, Regulatory, Training • CRC Specialist Leadership • CRC Data Reporting, Training • CRC Specialist Leadership • RMT, Community, Training • GEHA Geophysical Support • RMT, Regulatory, Mentoring • GEHA Operations Geology • Core Storage, RMT, Training • CRC Reservoir Engineering Leadership • Mentoring, Optimization, Surveillance, Training 2015 Team Projects: • 26R Reservoir Analysis • 31S Shale Gas Injection Evaluation • 24Z/26Z Reservoir Analysis