Wyoming EORI 2nd Annual Wyoming CO2 Conference 5/29/08

Transcription

1 Wyoming EORI 2nd Annual Wyoming CO2 Conference 5/29/08 The Beaver Creek Madison CO2 Project Spring 2008 Chuck Peterson Sr. Reservoir Engineering Advisor

2 Beaver Creek Madison CO 2 Flood Project Overview Geographic Setting Geologic and Reservoir setting Field History Final Project Design Project Construction NYSE: DVN page 2

3 CO2 Floods in Wyoming Devon Beaver Creek Field Anadarko Salt Creek Field Merit Energy Anadarko Patrick Draw Monel Unit Wertz/Lost Soldier NYSE: DVN page 3

4 Beaver Creek Madison Structure Reservoir Characteristics Porosity = 10% Permeability = 9 md Reservoir Temp = 234 o F BHPi = 5301 psia GORi = 288 scf/bbl Bubble Pt. = 673 psia Swi = 10% Oil Gravity = 39.5 o API 9 Approximate Oil - Water Contact Type Log M Geologic Characteristics Limestone/Dolomite Matrix Approx. Prod. Area = 974 Acres Approx. Oil Column Height = 820 Avg. Net Pay Thickness = 212 Avg. Depth to Madison Top = 11,100 NYSE: DVN page Active Oil Producer Active Water Injector W ,518 FEET

5 Beaver Creek Madison Structure 3D Seismic View Backthrust (Eastern Fault) Madison (HW) Main Block Madison (FW) Subthrust Beaver Creek Structure Viewed From the South NYSE: DVN page 5

6 Madison Log Section (GR/Buld Density) A Zone Top B Zone Top C Zone Top D Zone Top BCU #127 Well MD MD E Zone Top F Zone Top Madison Base NYSE: DVN page 6

7 Background & Evaluation History Madison reservoir discovered January 1954 Waterflood initiated in 1959 with peripheral flood Water injection expanded to pattern flood through Reservoir developed with 36 completions Currently have 21 active wells including 12 producers and 9 injectors Current Production of 300 bopd, 29,000 bwpd & 13,000 bwipd CO 2 flood potential originally identified in Amoco s 1987 CO Feasibility 2 Study Determined marginally economic in 1987(low oil price) Identified additional data needs to mitigate risk Devon revived the project idea in January 2005 NYSE: DVN page 7

8 Beaver Creek Madison Production History Beaver Creek Madison Unit Production History 100,000 Early waterflood 10,000 Monthly Volumes (Bpd, Mcfd) 1,000 Oil Gas Water WINJ Main Block (Target) OOIP = 109 MMbo Cum Oil = 42.5 MMbo (39% OOIP) Rem = 2.6 MMbo NYSE: DVN Jan-50 Jan-60 Jan-70 Jan-80 Jan-90page 8 Dec-99 Dec-09

9 Phased Evaluation Phase 3 - Final full field modeling and flood design Full field 3D compositional model History matching Identified where remaining oil exists Forecast Base (as is) forecast 4 Development pattern options Sensitivity analyses WAG cycles Surface facilities limitations Final Economic analysis NYSE: DVN page 9

10 Phase 3 - Full Field 3D Compositional Model NYSE: DVN page 10

11 Phase 3 Modeling Forecast Flood Design Options Plan 1: Peripheral CO 2 -WAG Plan 2: Pattern CO 2 -WAG Plan 3: Combined Plan 1 & Plan 2 Plan 4: Peripheral-Gravity drainage NYSE: DVN page 11

12 Plan 1 Peripheral CO2-WAG 14 Injectors: 8 WAG injectors 6 CO2 injectors 17 Producers B Low confidence inside this area 12 Shut-in or producing from other formation or TA Detail: 3 well conversion (prod->inj): 44, 146, old producers: 11, 38, 41, 46, 68, 147, 66, 81 2 shut-in: 14, 96 6 old injectors: 40, 17, 30, 32, 45, new producers: D, E, F, G, H, I, J, L 4 new injectors: A, B, C, K 1 Injector reactivation: 31 1 Producer reactivation: 77 us tive ctive ctor NYSE: DVN page L A 127 D E H I 143 J F G C K

13 Plan 2 - Pattern CO2-WAG 18 Injectors: All WAG injectors 14 Producers Detail: 2 well conversion (prod->inj): 44, 146, 9 old producers: 11, 38, 41, 46, 68, 147, 66, 81, old injectors: 40, 17, 30, 32, 45, 139, 14, 96 4 new producers: L, D, E, J 8 new injectors: A, B, K, H, F, G, I, C 1 Producer reactivation: 77 Remaining oil in place (rb/acre) 110, , ,000 NYSE: DVN page 13 90,000 80,000 70,000 60,000 40,000 30,000 20,000 10,000 0 Well status Black = active Red = Inactive Blue = injector A L 55 D E H B 96 J I F 38 G Low confidence inside this area C K WG

14 Flood Preparation Work Requirements Convert 2 wells from producer to injector Rework or recomplete 9 producers & 7 injectors Drill 7 new producers & 5 new injectors Construct Production & Injection Facilities Install New Flowlines for Producers & Injectors Build CO2 Supply Pipeline NYSE: DVN page 14

15 Beaver Creek Madison CO 2 Flood Where Are We At Today? Construction & Wellwork Initiation Infrastructure Work Under Way May 2007 Drilling Program Initiated July 2007 Flowline Construction February 2008 Facilities Construction underway Progress to Date Drilling program 7 Wells D&C, 3 Drilled, 2 WO Rig Rework/recompletion 95% complete CO 2 gas contract in place CO 2 pipeline construction 100 % Completed 75% hydro-tested Distribution and flow lines installation complete Compressors & Dehydrator Fabricated and Ready for Delivery Process Vessels Set Piping in Progress July 2008 Project Startup NYSE: DVN page 15

16 Drilling Operations In Progress NYSE: DVN page 16

17 Nabors Rig M-40 NYSE: DVN page 17

18 State of the Art Rig Controls NYSE: DVN page 18

19 Driller s View NYSE: DVN page 19

20 Automated Pipe Racks NYSE: DVN page 20

21 Flex Mud Lines to Accommodate Walking Rig NYSE: DVN page 21

22 Mud Pit NYSE: DVN page 22

23 CO 2 Delivery Line ROW Terrain CO2 Line coming off Beaver Rim 8 inch CO2 Line NYSE: DVN page 23

24 Recycle Compressor Fabrication NYSE: DVN page 24

25 Intermediate Pressure Compressor Skid NYSE: DVN page 25

26 Madison Well #66 Production Line- 1st ditch dug Kevin Watson (L) and Bill Skelton (R) NYSE: DVN page 26

27 Carbon Steel Production Line Pipe NYSE: DVN page 27

28 High Volume Gas Gathering Lines 6 Sweet Gas Line From Riverton Dome 10 Low Pressure Line: Beaver Creek Sweet NYSE: DVN page 28

29 Production Header Leveling Up Production Lines NYSE: DVN page 29

30 Production Header NYSE: DVN page 30

31 Injection Header Building Construction NYSE: DVN page 31

32 Oil Tanks / Compressor Foundations / Cooler Foundations NYSE: DVN page 32

33 Thank You.