Ypf Sa Class D · BCBA:YPFD
Ypf Sa Class D — Technical Presentation (March 2014)
36 slides from Ypf Sa Class D's technical presentation, Mar 17, 2014
Slide 1: Vaca Muerta Update
Vaca Muerta Update March 17th, 2014.
Slide 2: Disclaimer
Disclaimer Safe harbor statement under the US Private Securities Litigation Reform Act of 1995. This document contains statements that YPF believes constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements ma
Slide 3: Contents
Contents 1 Unconventional Development: General Overview 2 Increased Productivity: Sweet Spot Identification 3 Increased Productivity: Horizontal Well 4 Well Construction Cost Reduction 5 Principal Challenges for a large development 3
Slide 4: Shale concept
YPF | Shale concept ; Source rock Conventional Conventional reservoir Reservoir rock oil Reservoir rock » : Tight “ Reservoir rock
Slide 5: Opportunities in Shale / Tight Formations
Opportunities in Shale / Tight Formations Tested & Producing Other Opportunities 4,4 Vaca Muerta (shale oil / gas) Noroeste - Cretaceous NOROESTE Yacoraite Area 30,000 km2 (shale / tight oil & gas) CHACO PARANAENSE Noroeste - Tarija Lajas (tight gas) Los Monos (shale gas) Mulichinco (tight oil / gas
Slide 6: Argentina has the resources to increase production
Argentina has the resources to increase production Oil Potential Gas Potential (Bbls) (Tcf) NOROESTE CHACO 29 PARANAENSE 4.4 CUYANA NEUQUINA GOLFO 27 802 SAN JORGE AUSTRAL Conventional Conventional (Oil 3P + Resources) (Gas 3P + Resources) Unconventional Unconventional (resources) (resources Source:
Slide 7: Similarity to the US case
Similarity to the US case Gas Production (Tcf) Gas Imports (Tcf) Source: EIA 2012 Energy Outlook 7
Slide 8: Vaca Muerta vs. other unconventional resource plays
Vaca Muerta vs. other unconventional resource plays Desired Vaca Muerta Barnett Haynesville Marcellus Eagle Ford Wolfcamp TOC (%) >2 3-10 4-5 0.5 - 4 2 - 12 3-5 3 Thickness (m) > 30 30-450 60 - 90 60 - 90 10 - 60 30 - 100 200 - 300 Reservoir pressure (psi) High 4,500-9,500 3,000 – 4,000 7,000 – 12,0
Slide 9: High Quality Oil & Gas Characteristics
High Quality Oil & Gas Characteristics Pres.= 550 – 650 kg/cm3 at 2,800 m °API: 35 – 50 Pb: 120 – 200 kg/cm3 GOR: 100 – 500 m3/m3 Bo @ Pb: 1.5 – 1.9 Viscosity @ Pb: 0.3 – 0.8 cP No H2S, Minor CO2 M3/mm3 Bbl/mcft Plant C2 445.25 79.29 products - gas C3 366.07 65.19 C4 199.58 35.54 C5 64.92 11.56 C6 1
Slide 10: Continuing exploration focused in Vaca Muerta
Continuing exploration focused in Vaca Muerta Drilling or in Completion 2014 Drilling Campaign Progress in extended Drilled as of 31/01/2014 basin-wide delineation Oil Wet gas Hold the shale Dry gas acreage Increase the value of shale acreage Delineation of new development clusters 10
Slide 11: The next development clusters
The next development clusters Loma Campana Unconventional Development (395 km2) The Vaca Muerta Shale Exploratory delineation has enabled YPF to define three additional core areas with short to medium term feasibility of development: Bajada de Añelo - Bandurria - La Amarga Chica (850 km2) Narambuena
Slide 12: Bajada de Añelo - Bandurria - La Amarga Chica Area
Bajada de Añelo - Bandurria - La Amarga Chica Area Summary LACh.x-3 850 km2 defined by the YPF operated areas 5 oil producing vertical wells 1 well in completion BAñ.x-2 Light oil production (33 to 49°API) LCav.x-4 Wet gas is expected towards the west (80 km2) LCav.e-6 130 to 250 m thick (Vaca Muert
Slide 13: Narambuena - Bajo del Toro Area
Narambuena - Bajo del Toro Area Summary 250 km2 defined by the YPF operated areas 2 oil producing vertical wells 1 well to be drilled (slant geometry) Light oil production (35 to 37°API) 230 to 320 m thick (Vaca Muerta high TOC interval) N.x-8 Oil In Place Narambuena, YPF 100% (125 km2): 11.2 Billio
Slide 14: El Orejano - Pampa de las Yeguas I Area
El Orejano - Pampa de las Yeguas I Area Summary 105 km2 defined by the YPF operated areas 1 gas producing vertical well (connected to gas line) PdY.x-1 1 gas/condensate vertical well (flowback test) El Orejano block in the initial phase of a Development pilot project (16 wells, 4 wells already drill
Slide 15: Unconventional: Increase in Activity
Unconventional: Increase in Activity Investment growth Important Activity Increase Investments (MM USD) Drilling Rigs 19 17 1,124 9 4 Apr 2012 Dec 2012 Dec 2013 2014 YTD Wells in Production 380 161 142 59 42 2012 2013 Apr 2012 Dec 2012 Dec 2013 2014 YTD 15
Slide 16: Unconventional: Increase in Production
Unconventional: Increase in Production Oil (bbls/d) Gas (km3/d) 14.000 800 700 12.000 600 10.000 500 8.000 400 6.000 300 4.000 200 100 2.000 0 0 Wells in production 161 Current production 20,000 boe/day 16
Slide 17: Project Economical Feasibility
Project Economical Feasibility 2 Main Drivers to Reach an economical development Increased Productivity Well Construction Cost Reduction • Improve subsurface understanding • Casing Drilling Techniques • Identify the Sweet Spots • Local Sand Sourcing • Optimize completions • Operational efficiency op
Slide 18: Contents
Contents 1 Unconventional Development: General Overview 2 Increased Productivity: Sweet Spot Identification 3 Increased Productivity: Horizontal Well 4 Well Construction Cost Reduction 5 Principal Challenges for a large development 18
Slide 19: Hydraulically fractured vertical well productivity
Hydraulically fractured vertical well productivity Cumulative oil 55000 production, bbl 50000 45000 40000 35000 D 3,000 bbl 30000 25000 2011 Avg (15 wells) 20000 2012 Avg (10 wells) 15000 2013 Avg (103 wells) 10000 5000 0 0 1 2 3 4 5 6 7 8 9 10 11 12 Production month 19
Slide 20: Identifying the sweet spots: reservoir quality
High Identifying the sweet spots: Workflow for identification of sweet spots Reservoir Quality • Porosity • Water saturation • Permeability Reservoir quality (RQ) • TOC • Mineral content Room for Sweet • Maturation improvement spot • Pore pressure Completion Quality • Containment • Fracturability •
Slide 21: 2013 Results: Sweet Spot Economic View
2013 Results: Sweet Spot Economic View Pozos Vaca Muerta y Quintuco LLLN y LCm - PA 2013 High 2505600 2506400 2507200 2508000 2508800 2509600 2510400 2511200 2512000 2512800 2513600 2514400 2515200 2516000 2516800 2517600 2518400 2519200 2520000 2520800 2521600 2522400 2523200 2524000 2524800 252560
Slide 22: Hydraulically fractured vertical well productivity at the sweet spot
Hydraulically fractured vertical well productivity at the sweet spot Cumulative oil 55000 production, bbl 50000 45000 D 16,000 bbl 40000 35000 30000 25000 2011 Avg (15 wells) 20000 2012 Avg (10 wells) 15000 2013 Avg (103 wells) 10000 Avg West Sweet Spot (10 wells) 5000 Type well EUR 293 Kbbl 0 0 1 2
Slide 23: Contents
Contents 1 Unconventional Development: General Overview 2 Increased Productivity: Sweet Spot Identification 3 Increased Productivity: Horizontal Well 4 Well Construction Cost Reduction 5 Principal Challenges for a large development 23
Slide 24: Previous experiences with horizontal wells in Loma Campana
Previous experiences with horizontal wells in Loma Campana 500 SOil.a-2h LLL-514h LLL-523h 400 LLL-534h Oil rate, bbl/d LLL-546h 300 Hztl P50 Hztl P90 200 100 0 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Months 24
Slide 25: New Approach for Horizontal development
New Approach for Horizontal development Multidisciplinary team approach: YPF / SLB / Von Gonten Microseismic monitoring to: • Observe frac growth • Be prepared to take proactive actions Tackle ashbed/conductivity losses with increased pumped sand and frac conductivity Perforation re-design: re-accom
Slide 26: Microseismic monitoring from SOil-6: plan view
Microseismic monitoring from SOil-6: plan view Stage 24 N S 200 m
Slide 27: Horizontal well performance including SOil-4h
Horizontal well performance including SOil.-4h 600 Oil rate, bbl/d 500 SOil.a-2h 500 SOil-4h 400 LLL-514h 400 300 LLL-523h 200 LLL-534h 300 LLL-546h Oil rate, bbl/d 100 Hztl P50 0 0 5 10 15 20 25 30 35 40 45 Hztl P90 200 Days 100 0 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Mon
Slide 28: Deliverability Comparison
Deliverability Comparison SOIL 4H – 2300´ Eagleford Well A (1.1 MMbbl EUR) – 6100´ Normalization on Eagleford Well B (0.27 MMbbl EUR) – 3300´ Stimulated Length Eagleford Well C (0.45 MMbbl EUR) – 8500´ Infinite-acting linear flow (SOIL 4H) When normalized against the effectively-fractured length, SO
Slide 29: Contents
Contents 1 Unconventional Development: General Overview 2 Increased Productivity: Sweet Spot Identification 3 Increased Productivity: Horizontal Well 4 Well Construction Cost Reduction 5 Principal Challenges for a large development 29
Slide 30: Well Cost: Drilling & Completion
WELL COST Drilling & Completion USD 12 11.00 10.20 USD 11 EQ/SITE COMPLETION DRILLING Millions USD USD 10 8.10 USD 9 7.60 USD 8 USD 7 3.1 stg/well 4.5 stg/well USD 6 4.8 stg/well USD 5 5 stg/well USD 4 USD 3 USD 2 USD 1 USD 0 2011 2012 2013 2014 YTD COMPLETION COSTS DRILLING COSTS 19% MATERIALS/ DRI
Slide 31: Drilling: Time Improvements
Drilling: Time Improvements 50 45 43.2 40.3 40 35 31.7 Drilling Days 30 24.6 25 20 15 10 5 0 2011 2012 2013 2014 YTD Implemented Initiatives: Future Opportunities: • MPD / UBD Operational Procedure • Widespread use of Casing Drilling • Introduction of Casing Drilling • New automated rigs / skidding
Slide 32: Completion: Costs Improvements
Completion: Costs Improvements USD 1,60 Millon USD per stage USD 1,40 USD 1,20 USD 1,00 OTHERS USD 0,80 PROPPANT USD 0,60 FRAC USD 0,40 USD 0,20 USD - 2011 2012 2013 2014 YTD Implemented Initiatives: Future Opportunities: • Monthly “Bundle” contracts • Renegotiation of Bundle Contracts • Multiple pr
Slide 33: Contents
Contents 1 Unconventional Development: General Overview 2 Increased Productivity: Sweet Spot Identification 3 Increased Productivity: Horizontal Well 4 Well Construction Cost Reduction 5 Principal Challenges for a large development 33
Slide 34: Principal challenges for a large development
Principal challenges for a large development Enhance development economics + Increased Productivity • Improve subsurface understanding • Identify the Sweet Spots • Optimize completions • Successful horizontal development + Well Construction Cost Reduction • Casing Drilling Techniques • Local Sand So
Slide 35: Principal challenges: Design a sustainable development
Principal challenges for a large development Design a sustainable development + Minimize the environmental impact • Multiwell Rig Pad (Rigs “fit for purpose”) • Optimize Water and Sand logistics (Minimize truck transportation) • Pipe network for water pumping to well location • Railway to the site f
Slide 36: YPF - Nuestra Energía
YPF NUESTRA ENERGIA