Arkanova Energy Company · OTC:AKVA
Arkanova Energy — Technical Presentation (June 2009)
63 slides from Arkanova Energy's technical presentation, June 2009
Slide 1: TMCBSU, Montana Schlumberger Private Field Study – Phase 2
TMCBSU, Montana Schlumberger Private Field Study – Phase 2 Provident Energy Associates of Montana, LLC Production & Completions Group Consulting Services, DCS NGC June 2009
Slide 2: Agenda
Agenda Phase 1 Review – Workflow & Results • TMCBSU Inventory (OFMTM) Schlumberger Private • Total Field Production & Injection Phase 2 – Objectives & Deliverables – Cut Bank Formation – Production Analysis (by Yanil Del Castillo) – Operations Review (by Eddie Rodriguez) ¾ Conclusions & Recommen
Slide 3: Phase 1 – Data Acquisition
Phase 1 – Data Acquisition DNRC IHS Well Files Source (Department of Natural Resources (Public Database) (Arkanova Energy) and Conservation, Montana) Schlumberger Private Format Electronic Electronic & Hard Copies PRD: 1978 - 2008 PRD: 1960-1978 Data INJ: 1996 – 2008 INJ: 1968-1986 (68,283 records)
Slide 4: Phase 1 – Building a Database (OFM)
Phase 1 – Building a Database (OFMTM) 1290000 1296000 1302000 1308000 1314000 1320000 Locations included 570000 570000 Dry Hole EOR P&A Water Inj in the TMCBSU: Expired Location Expired Permit Oil Producer 31N 6W 32N 6W 21-1521-14 22-14 P&A Water Inj 1–5 21 – 22 P&A WaterSource 28-0128-0228-03X PA O
Slide 5: Phase 1 – OFM Inventory
Phase 1 - OFM Inventory 21-15 Active Oilwell CUT BANK / LOWER CUT BANK Formation 28-01 28-07 28-03X 28-03 28-05 27-07 27-03 27-05 Dry Hole PA Oilwell SI OilWell 28-09 28-11 27-09 TA OilWell 27-11 26-09 26-11 12 Active Producers 28-15 28-13 27-15X 27-13 26-15 33-01 33-03 34-01X 34-01 34-03 76 SI or T
Slide 6: Phase 1 – Total Field Production & Injection
Phase 1 – Total Field Production & Injection Cut Bank / Lower Cut Bank 6 10 Oil Production ( bbl ) Water Production ( bbl ) Gas Production ( Mcf ) Cut Bank / Lower Cut Bank Formation: Water Injection ( bbl ) LEASE (IHS) Lease_Monthly_Oil Production (per well) + Lease Prd Lease_Monthly_Water Oil Cum:
Slide 7: Phase 2 – Objectives & Deliverables
Phase 2 - Objectives & Deliverables I) Two-day Field Visit ¾ QA/QC current Dataset - Done II) Data Inventory Review ¾ Validate OFMTM/Access Database - Done - Identify available data, such as well files, logs, maps, PVT and Schlumberger Private core data, waterflood reports Preliminary Review of TM
Slide 8: Cut Bank Formation
Cut Bank Formation *Reference: BLM Report 1996 & Blackfeet Nation Article Southwest extension of the larger Cut Bank field Monocline, west side of Sweetgrass Hills Arch Lower Cretaceous Cut Bank Sandstone Schlumberger Private – Upper Sand 0-38ft (not productive) – Lower Sand 0-47ft (oil bearin
Slide 9: Cut Bank Formation
Cut Bank Formation Schlumberger Private Two Medicine Cut Bank Sand Unit (TMCBSU)
Slide 10: Cut Bank Formation North/South Cross-Section
Cut Bank Formation North/South Cross-Section 21-15 21-14 22-14 28-01 28-0228-03X 28-03 28-04 27-01 27-02 27-03 A Cross-section (A to A’) 28-08 28-07 28-06 28-0527-08 27-07 27-06 27-05 28-10 28-11 28-12 27-09 28-09 28-10X 27-10 27-11 27-12 26-09 26-10 26-11 27-03 34-11 Schlumberger Private 28-16 28-1
Slide 11: North/South Cross-Section
North/South Cross-Section 11-05 (Shut In): Ground Level: 3,643 ft Ref. Depth: 3,643 ft – 450 ft: 3,193 ft (updip to the south) Top of formation: 3,104 ft Perfs (upper): 03-13 (Shut in) Ground Level: 3,535 ft 3,066 – 3,076 ft Ref. Depth: 3,535 ft – 450ft: 3,085 ft Top of Formation: 3,012 ft 34-11 (Ac
Slide 12: Cut Bank Formation West/East Cross-Section
Cut Bank Formation West/East Cross-Section 21-15 21-14 22-14 28-01 28-0228-03X 28-03 28-04 27-01 27-02 27-03 Cross-section (B to B’) 28-08 28-07 28-06 28-0527-08 27-07 27-06 27-05 28-10 28-11 28-12 27-09 28-09 28-10X 27-10 27-11 27-12 26-09 26-10 26-11 08-05 28-16 28-15 28-14 28-13 27-16 27-15X Schl
Slide 13: Cut Bank Formation
Cut Bank Formation Perfs (upper): (updip to the east) 3,100 – 3,138 ft 10-01 Ground Level: 3,739 ft Ref. Depth: 3,739 ft – 300 ft: 3,439 ft 01-09 Top of Formation: 3,290 ft Ground Level: 3,740 ft Ref. Depth: 3,740 ft – 300 ft: 3,440 ft Schlumberger Private 09-03 Top of formation: 3,154 ft Ground Lev
Slide 14: Agenda
Agenda Phase 1 Review – Workflow & Results • TMCBSU Inventory (OFMTM) Schlumberger Private • Field Production & Injection Phase 2 – Objectives & Deliverables – Cut Bank Formation – Production Analysis (by Yanil Del Castillo) – Operations Review (by Eddie Rodriguez) ¾ Conclusions & Recommendation
Slide 15: TMCBSU Phase 2: Production Field Review
TMCBSU Phase 2: Production Field Review Schlumberger Private Provident Associates of Montana Production & Completion, DCS NGC 9 June 2009
Slide 16: Overview
Overview Phase 2 – Objective : Identify Best Candidates for Reactivation Schlumberger Private – Field / Waterflood Review – Candidate Recognition (Key Production Indicators) – Best 12 months of Production – Last 6 Month Average (Oil, Water) – Total Liquid Production per perforated interval – Histo
Slide 17: Field / Waterflood Review
Oil Cum: 7748 MBO Winj Cum 51143 MB Well: Well Type: <Ambiguous> Gas Cum: 2 MMCFG Location: <Ambiguous> <Ambiguous> W 6.0 Upper_Perfs_(Top): 3400' Water Cum: 22595 MBW Field / 10 6 Operator: <Ambiguous> Lower_Perfs_(Base): 3440' 10 WaterFlood 10 5 5 Review 10 4 3 10 1 Axis 1 2 Oil Production ( bbl )
Slide 18: Cumulative Oil Production Map
Date:12/1/2008 1290000 1296000 1302000 1308000 1314000 1320000 OilCum 570000 Cumulative Oil Production ( Mbbl ) 570000 0.00 139.28 278.57 WinjCum 21-15 A 21-14 22-14 Reactive 28-01 28-02 28-03X 28-03 28-04 27-01 27-02 27-03 564000 564000 Area 28-08 28-07 28-06 28-05 27-08 27-07 C 27-06 27-05 28-09 2
Slide 19: Cumulative Production Map
Date:12/1/2008 1290000 1296000 1302000 1308000 1314000 1320000 OilCum 570000 Cumulative Oil Production ( Mbbl ) Cumulative Water Production ( Mbbl ) 570000 WaterCum 21-15 21-14 A Cumulative Gas Production ( MMcf ) 22-14 28-01 28-02 28-03X 28-03 28-04 27-01 27-02 27-03 564000 564000 28-08 28-07 28-06
Slide 20: Cumulative Water Injection Map
Date:12/1/2008 1290000 1296000 1302000 1308000 1314000 1320000 WinjCum 570000 Cum Water Injection ( Mbbl ) 570000 21-15 A 21-14 22-14 High WinjCum Low WinjCum 28-01 28-02 28-03X 28-03 28-04 27-01 27-02 27-03 Low WaterCum 209 103 113 Low WaterCum 564000 564000 28-08 28-07 28-06 28-05 27-08 C High Oil
Slide 21: Cumulative Water Injection Map
1290000 1300000 1310000 1320000 133000 #10-11 10-9 11-12W#11-11 30-02 31-03 C708X 577500 #28-01 29-02 31-02 WInjCum Cum Water Injection ( Mbbl ) #10-13#10-14#10-15#10-16 11-13 15-3 15-1 14-3 #35-02#35-01 #34-02 43-05 37-05 #33-04 100-W 33-W10 232-02 3#32-0432-0532-01 39-0140-02 40-01 G607 G707 LEASE
Slide 22: Best 12 Months
Best12Mo 1290000 1296000 1302000 1308000 1314000 1320000 Best 12 Months 570000 PeakOilAvg >= 0, < 625 570000 Avg. Oil Rate 21-15 21-14 >= 625, <1250 >=1250, <1875 >=1875, <2500 22-14 >=2500, <3124 vs. OilCum 564000 28-01 28-02 28-03X 28-03 28-04 27-01 27-02 27-03 >=3124, <3749 >=3749, <4374 >=4374,
Slide 23: Cumulative Oil Production Map
Date:12/1/2008 1290000 1296000 1302000 1308000 1314000 1320000 OilCum 570000 Cumulative Oil Production ( Mbbl ) 570000 21-15 21-14 22-14 28-01 28-02 28-03X 28-03 28-04 27-01 27-02 27-03 564000 564000 28-08 28-07 28-06 28-05 27-08 27-07 27-06 27-05 28-09 28-10 28-10X 28-11 27-09 28-12 27-10 27-11 27-
Slide 24: Best Months vs. First yrs OilCum
Best 12 Months vs. First 5 yrs OilCum Schlumberger Private Correlation exists: Best 12 Months vs. OilCum (First 5 yrs & Final)
Slide 25: Last 6 Month Average Oil & Water
Last6MoAvg 1290000 1296000 1302000 1308000 1314000 1320000 Last 6 Month 570000 MvAveWater MvAveOil 570000 0.00 1225.00 2450.00 Avg. 21-15 21-14 Oil & Water 22-14 28-01 28-02 28-03X 28-04 28-03 27-01 27-02 27-03 564000 564000 28-08 28-07 28-06 28-05 27-08 27-07 27-06 27-05 28-09 28-10 28-10X 28-11 27
Slide 26: Last Month Avg. Oil & Water - Cross-Plot
Last 6 Month Avg. Oil & Water - Cross-Plot 6000 data 1 data 2 10-13 x mean 5000 02-09X x std MvAvg. Water Rate (bbl/month) y mean y std Schlumberger Private 4000 3000 35-11X 2000 04-07 34-05 09-05 1000 Mean Oil Rate: 64 26-09 bbl/month Mean Water 0 Rate: 615 bbl/month 0 100 200 300 400 500 600 700 8
Slide 27: Total Fluid / Only Active Wells (Top 20)
1290000 1296000 1302000 1308000 1314000 1320000 Last 6 month 570000 570000 MvAvg_Water6 Total Fluid / Only active well (top 20) 21-15 2.83 2731.67 5460.50 Perforated 564000 28-01 28-03X 28-03 27-03 564000 28-07 28-05 Active, Low Wcut Interval 27-07 27-05 28-09 28-11 27-09 27-11 26-09 26-11 28-15 28-
Slide 28: Criteria to Rank Candidates
Criteria to Rank Candidates Initial Candidate Selection (Match 3 Criteria) • Best 12 months production indicator. • High Last 6 month Avg. Oil Rate ( above mean oil rate) . Schlumberger Private • High Last 6 month Total Fluid per perforated interval. Wells with last 6 month Water Cut > 90 % were exc
Slide 29: Initial Candidate Selection
Initial Candidate Selection Schlumberger Private Last 6 Month Avg. Best 12 Months Liq./ft Perf
Slide 30: Final Candidate Selection
Final Candidate Selection Schlumberger Private 11-11 & 11-17 are producing based on Arkanova_TMCBSU_Map2
Slide 31: Well 11-05 Production History
W e ll U W I : 1 2 5 0 0 1 1 1 4 5 0 1 W e l l A l ia s : 1 1 - 0 5 1000 O i l R a te ( C a l . D a y) ( b b l /d ) 1 1 - 0 5 500 O i l .C a l d a yA vg R e g ( b b l /d /w ) :T M C B S U : T M C B S U 100 50 10 5 Schlumberger Private 1 1 9 6 86 9 7 0 7 1 7 2 7 3 7 4 7 5 7 6 7 7 7 8 7 9 8 0 8 1 8 2
Slide 32: Well 11-11 Production History
W e ll U W I : 1 2 5 0 0 1 1 1 4 5 0 3 W e ll A lia s : 1 1 - 1 1 1000 O i l R a te ( C a l . D a y) ( b b l /d ) 1 1 - 1 1 500 O i l .C a l d a yAvg R e g ( b b l /d /w ) :T M C B S U : T M C B S U 100 50 10 5 Schlumberger Private 1 1 9 6 86 9 7 0 7 1 7 2 7 3 7 4 7 5 7 6 7 7 7 8 7 9 8 0 8 1 8 2 8 3
Slide 33: Candidate Wells Map
1290000 1296000 1302000 1308000 1314000 1320000 570000 570000 MAvg_W ater 0.00 1225.00 2450.00 21-15 21-14 22-14 PRIMARY 28-01 28-02 28-03X 28-03 28-04 27-01 27-02 27-03 OTHERS 564000 28-08 28-07 28-06 28-05 27-08 SECONDARY 564000 27-07 27-06 27-05 28-10 28-09 28-10X 28-11 28-12 27-09 27-10 03-15 Hi
Slide 34: Conclusions & Recommendations
Conclusions & Recommendations Candidate selection based on Best 12 months, Last 6 months average oil/water and total fluid per perforated interval was representative of well performance. Historical well production was compared to field averages (oil / water) to verify candidate selection. Schlumbe
Slide 35: Conclusions
Conclusions South Part of the field (D & B ) seem to be less productive (possibly associated with low reservoir quality). North part of the field (C) cumulated high oil production (low Schlumberger Private cumulative water) without receiving comparable volumes of water injection. This area seem
Slide 36: Recommendations
Recommendations Review workover program during 91-93 (Mont-Mill operating co.) which increased field oil production. Detail waterflood evaluation to identify areas were the flood Schlumberger Private channeling is more severe (identify unswept areas). Identify opportunities for recompletion: R
Slide 37: TMCBSU Operations Review
TMCBSU Operations Review Schlumberger
Slide 38: Agenda
Agenda • Objective • Key Findings • Conclusions • Recommendations
Slide 39: Objective of Operations Review
Objective: To present key findings regarding the operations review and field visit of the Provident operated TMCBSU.
Slide 40: TMCBSU Unit Field Curve
Oil Cum: 8551 MBO Operator: <Ambiguous> Upper_Perfs_(Top): 34 Gas Cum: Water Cum: 5 2 MMCFG 37075 MBW TMCBSU Unit Field Curve Location: <Ambiguous> <Ambiguous> W 6.0 Well: <Ambiguous> Lower_Perfs_(Base): Well Type: <Ambiguous> BHP_Q1_2009 36065PSI 34 10 All wells(238) Oil Rate (Cal. Day) ( bbl/d ) W
Slide 41: Active Wells
Active Wells 21-15 21-14 22-14 Pumping Wells 28-01 28-02 28-03X 28-03 28-04 27-01 27-02 27-03 28-08 28-07 28-06 28-0527-08 28-05 27-07 27-06 27-05 Pending Reinstatement 28-10 28-11 28-12 28-09 28-10X 27-09 27-10 27-11 27-09 27-12 26-09 26-10 26-11 28-15 28-14 28-13 27-16 27-15X 28-16 28-15 27-14 27-
Slide 42: Fluid Levels/Extrapolated BHP
Fluid Levels/Extrapolated BHP 1290000 1296000 1302000 1308000 1314000 1320000 565000 28-01 28-02 28-03X 28-03 28-04 27-01 27-02 27-03 Active Oilwell 565000 Dry Hole 28-08 28-07 28-06 28-0527-08 1 psi 27-05 27-07 27-06 EOR P&A Water Inj Expired Location 28-10 28-11 28-12 28-09 28-10X 27-09 27-10 27-1
Slide 43: Beam Pump Inventory
1290000 1296000 Beam Pump Inventory1302000 1308000 1314000 1320000 565000 565000 27-03 57 Pumping Wells 28-05 27-05 @ pumped off conditions n/a Pending Reinstatement 27-09 160 26-09 21 each – 160 6 each-114 160 @ 170 BFPD 114 @ 142 BFPD 160 28-15 160 2 each -57 57 @ 51 BFPD 27-13 26-15 560000 160 1
Slide 44: Existing Active Wells
1295000 1300000 Existing 1305000 Active1310000 Wells 1315000 1320000 568000 568000 - Partial Communication LastOil6MoMvAve ( bbl ) - All wells have low fluid production Last_Wtr_6MoMVAvg ( bbl/d ) LastBF_6mo_Mov_AVG ( bbl/d ) 1 42 - Poor MTBF Active_Empty_?? Last_WC_6MoMvAvg ( fraction ) 0.03 0.46 2
Slide 45: Missing Critical Well Information
Missing Critical Well Information Wellfiles do not adequately reflect well history, such as: • Lost in hole equipment • Equipment presently in the hole • Previous fluid levels / scale problems • Remedial work performed after the initial completion • Well deviations (dog leg severity) – evident by ho
Slide 46: Caution! Incremental Oil via Optimized Pumping
Incremental Oil via Optimized Pumping • Preliminary Estimates (below) indicate 79 BOPD incremental Oil • Troubling: Too many assumptions had to be made • Urgent need to validate well tests on active wells. • Test casing integrity above top perfs on future pullings/workovers • Reconfirm fluid levels
Slide 47: Portable Well Test Equipment
Portable Well Test Equipment How to Improve Well Tests
Slide 48: Test Pumping Unit
Test Pumping Unit How to Test Reactivation Candidates
Slide 49: Why did the Waterflood Fail?
Why did the Waterflood Fail? ay Provident Schlumberger
Slide 50: Premature Water Channeling
Oil Cum: 502 MBO Operator: <Ambiguous> Upper_Perf s_(Top): 3434' Water Cum: Water_Inj_Cum: 6 10 1299 MBW Premature Water Channeling 55702 MBWI Location: <Ambiguous> <Ambiguous> W 6.0 Well: Well Ty pe: P&A_INJ Lower_Perf s_(Base): 3450' Well_Status_Data: P&A_INJ Water Injection Rate (Cal.Day ) ( bbl/
Slide 51: Horizontal Wells found in Glacier County, Mt.
Horizontal Wells found in Glacier County, Mt. (none found in Pondera County)
Slide 52: Cutbank Horizontal Wells
Cutbank Horizontal Wells Well Name Section Location (T-R) TCBSU 11-7 11 32N-6W TCBSU 11-5 11 32N-6W CBAU 1-22H 22 33N-6W CBAU 2-22H 22 33N-6W CBAU 1-14H 14 33N-6W ARMSTRONG 3-14H 14 33N-6W ARMSTRONG 2-14H 14 33N-6W Klemens C405 5 32N-5W CBAU 1-23-14H 23 33N-6W Quicksilver Resources, Inc. CBAU 1-14H
Slide 53: Production Rates
QUICKSILVER RESOURCES INCORPORATED CBAU ARMSTRONG (2-14H) CBAU ARMSTRONG - CUT BANK 10,000 1,000 43 BOPD Water Production (bbl) 20 BWPD Oil Production (bbl) Gas Production (mcf) Production Rates Oil Production (bbl) 100 Gas Production (mcf) Water Production (bbl) 10 1 1993 1995 1997 1999 2001 2003 2
Slide 54: Production Rates
QUICKSILVER RESOURCES INCORPORATED C B A U - CUT BANK 10,000 C B A U (1-14H) 1,000 36 BOPD Oil Production (bbl) Production Rates Oil Production (bbl) Gas Production (mcf) Water Production (bbl) Water Production (bbl) 5 BWPD 100 10 1992 1993 1994 Time
Slide 55: Production Rates
K2 AMERICA CORPORATION DAMSON CB SU - CUT BANK DAMSON CB SU (11-5) 10,000 164 BWPD 1,000 Bbls/mo 17 BOPD Production Rates Oil Production (bbl) 100 Gas Production (mcf) Oil Production (bbl) Water Production (bbl) Water Production (bbl) 10 Gas Production (mcf) 1 1974 1977 1980 1983 1986 1989 1992 1995
Slide 56: Production Rates
K2 AMERICA CORPORATION DAMSON CB SU - CUT BANK 10,000 DAMSON CB SU (11-7) 1,000 30 BWPD 16 BOPD Production Rates Oil Production (bbl) Oil Production (bbl) 100 Water Production (bbl) Gas Production (mcf) Water Production (bbl) 10 Gas Production (mcf) 1 1974 1978 1982 1986 1990 1994 1998 2002 2006 201
Slide 57: Conclusions
Conclusions • TMCBSU reservoir pressure is close to original BHP. • There is incremental production to be gained from existing active wells. • Some active wells do not appear to be properly communicated with the reservoir. • There is missing critical well and field information • Portable Pumping Uni
Slide 58: Recommendations
Recommendations Short term production/reserves • Focus on existing production of active wells / reactivations Long term reserves • Need to source missing data and to evaluate Engineering, Geological and Operational information to opt for either: – Horizontal Well Drilling – Waterflood reinstallation
Slide 59: Support Slides
Support Slides ay Provident. Schlumberger
Slide 60: Isopach Map
Isopach Map 21-15 21-14 22-14 28-01 28-02 28-03X 28-03 28-04 27-01 27-02 27-03 28-08 28-07 28-06 28-05 27-08 27-07 27-06 27-05 28-09 28-10 28-10X 28-11 27-09 28-12 27-10 27-11 26-09 27-12 26-10 26-11 28-16 28-15 27-16 28-14 28-13 27-15X 27-14 27-13 26-16 26-15 26-14 27-29 32-04 33-01 33-02 33-03 33-
Slide 61: Structure Map
21-15 21-14 22-14 Structure Map 28-01 28-02 28-03X 28-03 28-04 27-01 27-02 27-03 28-08 28-07 28-06 28-05 27-08 27-07 27-06 27-05 28-09 28-10 28-10X 28-11 27-09 28-12 27-10 27-11 27-12 26-09 26-10 26-11 28-16 28-15 27-16 28-14 28-13 27-15X 27-13 27-14 26-16 26-15 26-14 27-29 32-04 33-01 33-02 33-03 3
Slide 62: Oil Bubble Map
21-15 21-14 Date:12/1/2008 22-14 28-01 28-02 28-03X 28-03 28-04 27-01 27-02 27-03 Oil Bubble Map 28-08 28-07 28-06 28-05 27-08 27-07 27-06 27-05 28-09 28-10 28-10X 28-11 27-09 28-12 27-10 27-11 27-12 26-09 26-10 26-11 28-16 28-15 27-16 28-14 28-13 27-15X 27-14 27-13 26-16 26-15 26-14 27-29 32-04 33-
Slide 63: Proposed Next Steps
Proposed Next Steps ¾ Begin Lifting Optimization & Testing Operations • Operations & Lifting experts can be sourced from Schlumberger ¾ Secure Missing Information - Complete Well Files Schlumberger Private • Schlumberger involvement key (Identify, Compile and Catalog data) ¾ Consider Geological Mode
Arkanova Energy Company — Technical Presentation (June 2009) on 6ix