Transcript Perspectives on Montana’s Petroleum Industry” MREA

“Perspectives on Montana’s
Petroleum Industry”
MREA-MPA-MONTAX
“Bridges to the Future” Conference
October 15, 2009
Dave Ballard
President
Ballard Petroleum Holdings LLC
Billings, Montana
Presentation Overview
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Industry Overview and Economic Contribution
Meet the Producers
Producing Areas and Trends
Geologic Elements of an Oil Field
Regional Geology
• Field Examples and the Technology of
Discovery and Production
• Have We Reached Peak Production?
Field Examples and the Technology of
Discovery and Production
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Surface Geologic Mapping
Subsurface Geologic Mapping
Seismic Mapping
Shallow “Tight” Gas Frac Stimulation
• Horizontal Drilling and Frac Stimulation
• Waterflood Enhanced Oil Recovery
• CO2 Flood Enhanced Oil Recovery
• Sensitive Environment Operations
Bell Creek Oil Field, Powder River County, Montana
Encore Acquisition Company
Waterflood Status as of 12/31/07
Current rate
1,350 BOEPD
Injector
Producer
From: Encore Acquisition Company 8-K Report for 3/4/08
Williston
Bell Creek CO2 Project – Overview
Map
North Dakota
Beulah
Manning
Glendive
Cedar Creek (EAC)
Montana
Terry
Bell Creek Field
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21,771 acres (15 X 3.5 miles)
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Muddy Sandstone – 350 MM barrels Original Oil-in-Place
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Encore Operated: (WI=100%, NRI=85.3%)
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Current Production 1,233 BOPD
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Successful Waterflood – 38% Recovery Factor
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CO2 Flood Potential = 30 MM barrels
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Peak CO2 Oil Rate Uplift = 7,000 barrels per day
Wibaux
N. Dakota
Miles City
Baker
Cedar Hills (COP)
Ekalaka
Broadus
Harding
Bell Creek (EAC)
Wyoming
Sheridan
S. Dakota
Buffalo
Gillette
Rapid City
Ten Sleep
~ 225 mile route
Madden (COP)
Lost Cabin
8” – 100 MMSCF/Day Capacity
Casper
Nebraska
La Barge (XOM)
RBS RUL ES!
La Barge
Bairoil
Bell Creek CO2 Project –
Development Phasing
Project divided into seven phases
5
4
3
2
1
6
5
4
8
9
10
11
12
7
8
9
10
17
16
15
14
13
3
• Reservoir Parameters:
1
6
5
4
11
12
7
8
9
16
2
BELL CREEK UNIT A
BELL CREEK UNIT B
8S 53E
20
8S 54E
18
17
16
15
14
13
18
17
8S 55E
21
22
23
24
19
20
21
22
23
24
19
20
29
28
27
26
25
30
29
28
27
26
25
30
29
28
32
33
34
35
36
31
32
33
34
35
36
31
32
33
5
4
3
2
1
6
5
4
3
2
1
6
5
4
9
10
11
12
7
8
9
10
12
7
8
9
13
18
17
18
17
21
BELL CREEK UNIT D
BELL CREEK UNIT C
9S 53E
8
11
BELL CREEK UNIT E
17
16
15
14
Phase 1 CO2 Installation
16
15
14
13
Post-2014 Expansion
20
21
22
23
24
19
20
29
28
27
26
25
30
32
33
34
36
31
35
9S 54E
21
22
23
24
19
20
21
29
28
27
26
25
30
29
28
32
33
34
35
36
31
33
32
0
7,930
FEET
PETRA 5/27/2008 3:11:11 PM
16
9S 55E
RANCH CREEK UNIT (F)
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–
–
–
–
–
–
–
–
–
–
0
API gravity: 33 -41 API
Depth: 4500’
Flood Pressure: 2300 psi
0
Temperature: 108 F
Porosity: average = 24%
Permeability : average= 900 md
Gross Thickness: 25-30 feet
Original Oil-In-Place: 350 MM barrels
Remaining Oil-In-Place : 221 MM barrels
Minimum Miscibility Pressure: 1250 – 1850 psi
40-acre spacing – 5-spot pattern
• Bell Creek CO2 injection will be
installed in multiple phases between
2011 and 2025