Insurers' journeys to build a mastery in the IoT usage
Png 492 pec final-presentation[1][1]
1. Pure Energy Consultants, LLC
Field Development Plan of Texas
Creek Oriskany Sandstone
Client: Shell (Fm. East Resources)
Date: 7 April 2011
Mike Cronin Matt Minemier
716-479-2722 814-222-1854
mbc5043@psu.edu mtm5097@psu.edu
Zach Fidurko Naser Saleh
716-378-5970 814-441-1599
zmf5005@psu.edu nbs5043@psu.edu
2. Introduction
• Deliverables:
1) Reservoir Characterization
2) Reservoir Development Options w/ Economics
• Findings:
1) OGIP = 5.8 Bscf
2) Economics - Gas Price ($4/Mscf)
• Gas Storage Infeasible
• Infill Drilling Sub-Economic
3) Recommend Depleting Field to 500psi with Existing
Wells.
3. Reservoir Characterization
-OGIP = 5.8 Bscf
-Swcon = 25%
-Thickness = 30ft
-Net Pay = 15ft
-Porosity = 5%
-GWC at 6200ft
Structure Map with Water Saturation:
Looking NW
5. History Match
1600000 Graham 2
1400000
• Cumulative Gas
Cumulative Production (MMscf)
1200000
Produced vs. Time 1000000
800000
Graham 2
600000
Modeled
400000
200000
0
1/22/2010 5/2/2010 8/10/2010 11/18/2010 2/26/2011
-200000 Time (Days)
• Daily Gas Produced 16000 Graham 2
14000
vs. Time
12000
Daily Production (mscf)
10000
8000
Historical
6000
Modeled
4000
2000
0
1/22/2010
-2000 5/2/2010 8/10/2010 11/18/2010 2/26/2011
Time (Days)
9. Incremental Economics TW-1
TW- 1
• Gas produced 4.31
BCF
• Recovery Factor 74 %
• At $4 Mscf additional
revenue will equal
$1.8 million
• Cost to Drill Well
(from East AFE) $ 1.3
million
• NPV @ 10 % give
$-325,946
• ROR equals 3.3 %
NPV=Net Present Value
ROR=Rate of Return
11. Incremental Economics TW-2
TW- 2
• Gas produced 4.28
BCF
• Recovery Factor 73%
• At $4 Mscf additional
revenue will equal
$1.68 million
• Cost to Drill Well
(from East AFE) $ 1.3
million
• NPV @ 10 % give
$-355,968
• ROR equals 3.2 %
NPV=Net Present Value
ROR=Rate of Return
12. Economics of Abandonment
• Plan Produce Original Three Wells to Abandonment
Pressure (500 psi)
• Abandonment Date
• Total Gas Produced BCF
• At $4 Mscf
- Producing to Abandonment
- Stopping Production @ 1000 psi for injection
13. Gas Storage Strategy
Np, Pressures at inject
-Burst pressure (FG work)
Working Gas: OGIP-Np = 5.8-3.9 = 1.9 Bscf
No new wells, convert existing wells to injectors
-6month injection/production cycling
14. Gas Storage Results
• Losing X % per cycle
• -(Storage Cost + Summer Buy Price)*Vinj
• + (Winter Sell Price)*Vprod
• -12.5% *Value of Unproduced Accessible Gas
15. Economics
at t=0 Gas Produced vs. Injected Produced
6.00E+09
5.00E+09
4.00E+09
Cumulative Gas SC (ft^3)
3.00E+09
Production
2.00E+09 Injection
1.00E+09
0.00E+00
12/27/2014 5/10/2016 9/22/2017 2/4/2019 6/18/2020 10/31/2021
-1.00E+09
Date
