Questerre Energy Corporation Class A · TSX:QEC

Questerre Energy Corporation Class A — Technical Presentation (2011)

24 slides from Questerre Energy Corporation Class A's technical presentation, 2011

  1. Slide 1: The Stability of Fault Systems in the South Shore of the St. Lawrence Lowlands of Québec

    The Stability Of Fault Systems In The South Shore Of The St. Lawrence Lowlands Of Québec Implications For Shale Gas Development John Brodylo, Jean-Yves Chatellier,Guillaume Matton & Michel Rheault Copyright 2011, Society of Petroleum Engineers 1

  2. Slide 2: Outline

    Outline • Majority of Québec Utica shale gas exploration in south shore area of St. Lawrence Lowlands • Natural and man-made earthquakes in south shore • Tectonic domains, in-situ stress and fault styles • Fracture stimulation containment within shale gas target • Hydrofracturing Utica very unlikely

  3. Slide 3: Study Area

    Study Area St. Lawrence Québec Graben Québec City Ottawa-Bonnechere St. Lawrence Graben Lowlands Study Area Montréal 3

  4. Slide 4: Earthquake

    Earthquake • A sudden release of energy in the earth's crust or upper mantle as a result of fault slip • Destructive at magnitudes of 5 and above • Minor earthquakes magnitude 2 to 5 • Micro-earthquake is a very low intensity earthquake generally magnitude 2 or less 4

  5. Slide 5: Earthquake Magnitude Comparison Perspective

    Earthquake Magnitude Comparison Perspective Limit Micro-earthquakes Minor-earthquakes Light Moderate of measurement Imperceptible rarely felt felt shaking damage by man 2 X Hiroshima Atomic Bomb Utica Shale Gas Frac 30 tons TNT Microseismic Average Québec event Earthquake 1 kg TNT Impact of Stick of

  6. Slide 6: Southern Québec Earthquakes

    Southern Southern Québec Earthquakes Québec Earthquakes Major Charlevoix Basement Faults Impact Crator Most Active Earthquake Regions of Southern Québec Québec City South Shore Shale Gas Exploration Areas Montréal US Border 6

  7. Slide 7: Comparison of Induced Seismic Events

    Comparison of 10 Induced Seismic Events 9 Dams 8 Various 7 Global Manic 3 6 Waste Dam, Qc. 5 Water inj., 1975 TX. 2010 Magnitude 4 3 Micro- Mine 2 seismic Collapse, event Geothermal 1 Barnett NY. 1994 US Army. Utica Various Shale Co. Fluid 0 Shale countries. Fracs. TX. Inj., 1962 Fracs. -1 Québec, -

  8. Slide 8: Induced Seismic in Québec

    Induced Seismic in Québec SM3 Reservoir Impoundment Induced - unspecified Blasting St. Lawrence Lowlands 8

  9. Slide 9: Risk?

    Risk? The Earth Sciences Division of the U.S. Department of Energy’s Lawrence Berkeley National Laboratory has studied induced seismicity relating to oil and gas activity and to date hydraulic fracturing has resulted in no known surface earthquakes felt by man Update: Blackpool U.K. 2.3 M earthquake

  10. Slide 10: Stratigraphy

    Stratigraphy Queenston/Lorraine Sandstone, siltstone and shale Utica Shale Gas target Quartz/carbonate organic shale Potsdam Regional seismic reflector 10

  11. Slide 11: Major Tectonic Domains

    3 Major Tectonic Domains South Shore Utica Shale Gas Fairway Disturbed Domain Autochthonous Domain Grenville Basement Convergent margin Sediments Passive margin Sediments Granite & Metasediments U Ordovician Cambro-Ordovician Lorraine and Queenstown Shale gas target Image Modified from: TRIANGLE ZON

  12. Slide 12: Borehole Breakouts, Fractures and In-situ Stresses

    Borehole Breakouts, Borehole Breakouts, Fractures Fractures and In-situ Stresses and In-situ Stresses • Bore hole break outs in the N direction of Shmin = 315 degrees sHMAX • Drilling induced fractures in Azimuth of Borehole direction of SHmax = 45 degrees breakouts Present day in-situ Stress Breako

  13. Slide 13: Autochthonous Domain

    Autochthonous Domain Old Healed Fractures • Tensional passive margin Normal faulting From Rift Phase Strike Direction • Result of opening of the Iapetus Sea of Fractures • Hydraulic fractures propagate vertically • 488.3–443.7 million years old • Fractures in direction of SHmax = 38 degrees sv = s1

  14. Slide 14: Disturbed Domain

    Disturbed Domain Open Fractures • Compressional thrusting From Compressional • Hydraulic fractures in Phase s3=sv direction of SHmax = 325 In Situ Stresses degrees s1 = shMAX Strike Direction s2 = shmin sv = s3 of Fractures sHmax>shmin>sV sHMAX = s1 shmin = s2 14

  15. Slide 15: Wrenching

    Wrenching Present day in-situ Stress • Bore hole break outs in Breakout SHmax direction of Shmin = 315 degrees • Drilling induced fractures in Drill Induced Shmin direction of SHmax = 53 Fracture degrees In Situ Stresses sv = s2 s2=sv s3 = shmin s1 = sHmax shmin sHMAX = s3 = s1 sHmax>sV>shmin 15

  16. Slide 16: Coulomb Stress

    Fault Slip sn sn Coulomb Stress = tb + m(sn + P) tb = shear stress P = pore pressure m = coefficient of friction sn = normal stress 16

  17. Slide 17: Stress Affects on Completions

    Stress Affects on Completions Wrench Thrust Regime Regime Pre-completion Hydraulic fracturing stress stress state state More vertical fracturing fracturing ssHmax sV hmin sv More horizontal Hmax>>s > s> hmin Utica Pore Pressure sv sHMAX shmin 20 40 60 80 100 MPa 17

  18. Slide 18: Hydraulic Fracture Height Containment

    Hydraulic Fracture Height Containment GR Hi Y Low • Contrasts in fracture toughness form barriers Lorraine • High Young’s modulus (Y)=Brittle=low toughness Schematic • Low Young’s modulus=Ductile=high Thrust toughness Ductile • Frac target a brittle zone with low toughness between ductile zones Utic

  19. Slide 19: Micro-seismic

    Aquifer Micro-seismic Horizontal Shale Gas Well with Micro-seismic Events •Minimal vertical height growth •Formations above and below zone likely acting as barriers Microseismic events •No communication confined or propagation to to +/- 50 m of wellbore shallow aquifers. Utica 19

  20. Slide 20: Surface Lineament Analysis

    Surface Lineament Analysis South Shore Shale Gas Exploration Area (Study Area) There are a total of 14 minor > M2.5 earthquakes recorded in the South Shore Shale Gas exploration Area Matton and Rheault 2011 20

  21. Slide 21: Inset Map

    Inset Map Québec City Cap-Rouge Earthquake Neuville Fault Trace at Potsdam Level St. Lawrence Seismic Line 78-824 Lowlands Shale Gas Fairway 18 Focal Depth kilometers 3.6 Earthquake magnitude Earthquake < M2.5 21

  22. Slide 22: Summary

    Summary • South shore shale gas exploration region is in stress relaxed state and less prone to fault reactivation • No correspondance between natural and man-made earthquakes and shallow faults in study area • In- situ stress, rock toughness, and thrust faults all act as barriers to vertical propag

  23. Slide 23: Acknowledgements

    Acknowledgements Michael Binnion Questerre Energy Corporation Marianne Molgat Talisman Energy Inc Geoff Rait, - IEX Structural Geologist, Talisman Energy Scott McLellan, - IEX Geophysicist, Talisman Energy Heather Davey Exploration Specialist Geology

  24. Slide 24: Questions?

    Questions? 23

Questerre Energy — Technical Presentation (2011) on 6ix