BlackGold Project Annual Performance Project Annual Performance - ... AER Presentation ... T24 T23...
Transcript of BlackGold Project Annual Performance Project Annual Performance - ... AER Presentation ... T24 T23...
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Contents
•
Introduction
•
Subsurface Update
•
Surface Operations Update
•
Compliance Update
•
Q&A
AER Presentation •
Novermber
2013 2
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BlackGold
Scheme of Amendments/Approvals
•
Commercial Scheme Approval No. 11387 on Feb. 03 2010 for BG First
Phase to produce 1,590 m3/d bitumen.
•
Amendment Approval No. 11387A on Sep. 1st 2010 transfer of BlackGold
Oil Sands Lease from KNOC Canada to Harvest Operations Corp.
•
Amendment Approval No. 11387B on Jan. 30 2012 confirming a minor modifications to the plot plan and modification of well trajectories.
•
Amendment Approval No. 11387C on Mar. 07 2012
confirming a minor modifications to CPF.
•
Amendment Approval No. 11387D on Sep. 26 2013, for Second Phase Application to produce an additional 3,180 m3/d bitumen.
AER Presentation •
Novermber
2013 3
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BlackGold
Project Location
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Harvest hold 100% ownership of 15 sections in 76-7-W4M , located approximately 10 km southeast of Conklin
AER Presentation •
Novermber
2013 4
DEVON ENERGY JACKFISH PROJECT 1
DEVON ENERGY JACKFISH PROJECT II
HARVEST OPERATIONSBLACKGOLD PROJECT
CENOVUS / CONOCOCHRISTINAL LAKE REGIONAL PROJECT
NEXEN / OPTIJACKFISH PROJECT
PETROBANK ENERGYWHITESANDS
EXPERIMENTAL PROJECT
MEG ENERGYCHRISTINA LAKE
REGIONAL PROJECT
R4W4R5R6R7R8R9R10
R3W4R4R5R6R7R8R9
T74
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HARVEST BLACK GOLD
ALBERTA
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20
30
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60
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90
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10
30
W5510
1520
25
W4
510
15
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W6510
R 1W4R2R 3R4R 5R6R7R8R 9R10R 11R 12R13R14R 15R16R 17R18R19R20R 21R 22R23R24R25R26R27R 28R 29R 30R 1W5R 2R3R4R 5R 6R7R 8R 9R 10R 11R12R13R14R15R16R 17R 18R19R20R 21R 22R23R 24R 25R26R27R 28R1W6R2R3R4R 5R6R7R8R 9R 10R11R12R 13
R1W4R 2R 3R4R5R6R7R 8R 9R 10R 11R12R 13R14R15R 16R17R 18R19R20R21R 22R23R 1W5R2R 3R 4R 5R6R7R8R 9R10R 11R 12R13R 14R15R16R 17R18R 19R20R21R22R 23R1W6R 2R3R 4R 5R6R7R8R9R10R11
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Project Area & Exploration Activity
AER Presentation •
Novermber
2013 5
: Initial Project Area
: Expansion Project Area
: Central Production Facility
: IDA (Initial Development Area)
• Project Area
• Exploration Activity : Drilled before 2006 (52 wells)
: Drilled 2007 (19 wells)
: Drilled 2008 (32 wells)
: Drilled 2009 (30 wells)
: 3D Seismic (23
km2)
: 4D Seismic (4.3
km2)
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General Stratigraphy
AER Presentation •
Novermber
2013 7
Stratigraphic Column Reference Well 9-1-76-7W4M
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Average McMurray Reservoir Properties
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Reservoir Depth: 400mTVD (~205mSSL)•
McMurray Thickness: 45-55m
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Pay Thickness: 25-35m•
Porosity: 31%
•
Perm.: Khmedian
=4D, Kv
/Kh
~ 0.7•
Oil Saturation: 68%
•
Virgin Reservoir Pressure: 2.6 MPaa•
Virgin Reservoir Temp: 12�C
Deterministic Pay Cut-Offs•
Sw<50%
•
Φe>20%•
Minimum SAGD Pay Isopach > 10m
AER Presentation •
Novermber
2013 8
1AA/08-12-076-07W4/00
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Phase 1 Representative Well Log
AER Presentation •
Novermber
2013 14
Top BHLTop BHL
Top McMTop McM
Top WabTop Wab
2-12
Net Bitumen Interval
McMurray Regional Barrier
Clearwater Regional Caprock
40m
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Cores & FMI Logs
AER Presentation •
Novermber
2013 15
: Expansion area
: Initial area
: Initial Development Area
: Well with core (131 wells)
: Well with FMI Logs (24 wells)
Legend
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BlackGold
Lease Cross-Section
AER Presentation •
Novermber
2013 16
South to North
Pay zone
Pay zone
Southeast North
A
A’
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4D Seismic
AER Presentation •
Novermber
2013 18
2.4km
1.8k
m
4D Seismic Parameters
Area 4.26 km2
Bin size 10m x 10m
Shot interval 20m
Shot line 80m
Receiver interval 20m
Receiver line 120m
Record length 1000 ms at 1/2 ms
Source typeSingle vibe, 8‐200Hzlinear@12000ms
Receiver type GS‐30CT, 6 over 1 m
Geophone
type10‐14 Hz spiked
geophone
Type of
instrument
Telemetry
Pad 102
Pad 101
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Harvest acquired 4D seismic for initial development area in February 2012
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Surface Deformation Monitoring
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2007 five corner reflectors have been installed.
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2007 June to August SAR analysed, no surface deformation observed.
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Additional corner reflectors will be installed in Phase 1 area.
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Harvest will acquire the new SAR data before and after steam injection
AER Presentation •
Novermber
2013 19
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BlackGold
Reservoir Geomechanics
Overview
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Minifrac
physical testing results obtained in 2008.
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The in-situ minimum stress in the McMurray shale is: 6.01 –
6.9 MPaa
(16.7 –
19.2 KPa/m).
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BG geomechanical
modeling confirmed that BG McMurray caprock integrity has Maximum Downhole Pressures of 6 MPaa.
AER Presentation •
Novermber
2013 20
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Reservoir Engineering/Modeling Plans•
BlackGold
Phase 1:
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Pad scale simulation is underway to forecast scheme performance,
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Maximum Operating Pressure (MOP) during SAGD start-up is 4MPaa,
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Wellpairs
are expected to be converted to SAGD after 90 –
120 days of steam circulation,
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Operating SAGD Chamber Pressure (OSCP) is between 2.6 –
3MPaa,
AER Presentation •
Novermber
2013 21
BG Phase 1 West Side Model
BG Phase 1 East Side Model
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Layout for Initial SAGD Well Pair
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Pad 101 : 5 well pairs
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Pad 102 : 10 well pairs
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Reservoir Depth : ~400m TVD
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Horizontal Length : 750~850m
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Well Spacing : 80~100m
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Vertical Separation : 5m
AER Presentation •
Novermber
2013 22
Pad 102
Pad 101
1
12
13 24
100m100m100m100m100m100m100m100m
100m10
0m10
0m80
m80
m
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Drilling Operations
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Key Features:o Well Integrity o BoreHole
Quality o Bond Log quality o Sand control
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Finished drilling in September, 2012
AER Presentation •
Novermber
2013 23
Nabors 103 on PAD 102
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Sand Control
-
FacsRite
= Flush Absolute Cartridge System
AER Presentation •
Novermber
2013 25
Harvest installed Facsrite
sand control system in 15 producers:-sand retention and retained permeability properties,
-tolerates wider variation in PSDs,
-higher OFA than gap-based media,-premium media discs flush-mounted and tightly secured into the base pipe,-316 SS, 25.4 mm disc with open flow area of 3.61% (OFA) @ 22 discs/ft.
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Well Schematic Diagram –
Producer(SAGD)
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Harvest plans to install ESP (Electric Submersible Pump) in producer after the circulation period
AER Presentation •
Novermber
2013 28
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Instrumentation
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Producers:o 15 DTS fiber system during
circulation and SAGD phase,
o 15 heel bubble tube during circulation phase,
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Injectors:o 8 DTS fiber system during
circulation and SAGD phase,
o 15 heel bubble tube during circulation and SAGD phase.
AER Presentation •
Novermber
2013 29
I & P with InstrumentationProducer with instrumentation
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Instrumentation Observation Wells
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Harvest drilled 12 observation wells in 2011 to monitor performanceo 4 clamp type wells installed thermocouples and pressure gaugeo 8 spool in type wells installed thermocouples
AER Presentation •
Novermber
2013 30
: Pres./Temp. Sensor : Temp. Sensor Only
BHL/WOC
McMurrayReservoir
Wabiskaw/McMurray
Shale
Thermocouples(2 ~4m interval)
PressureSensors
Thermal Cement
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Artificial Lift
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All producers will be equipped with 250C ESP systems.
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All ESPs
will have downhole pressure/temperature monitoring systems.
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ESP total fluid production capacity will vary between 300 to 730 m3/day.
AER Presentation •
Novermber
2013 31
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Brackish Water Wells
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1-11-76-7W4M & 7-11-76-7W4M
o Depth : 350 to 353 mTVD
o Formation : Clearwater
o TDS : 4,320 to 4,550 mg/L
o Estimated production rate 350m3/day/well
AER Presentation •
Novermber
2013 32
7-11(Source Water Well)Formation : ClearwaterTDS : 4320~4340 ppm
1-11(Source Water Well)Formation : Clearwater
TDS : 4550 ppm
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Water Usage and Balance
AER Presentation •
Novermber
2013 33
Injection/Production Wells
Brackish Water Wells
Source Water Pipeline Skim
Tank
Utility WaterTreatmentPackage
Utility WaterTank
Produced
WaterTank
WaterTreatmentPackage
BoilerPackage
Pipeline CPF
Produced Water
(4,291 m3/d)
Bitumen Emulsion
Steam(4770m3/d)
Utility Water(50m3/d)
Safety Shower
10% Steam Lossto the Formation
(477m3/d)
Daily Make-up Water
(608m3/d)Make-up Water to WT System including Loss
from WT System(558m3/d)
Oil/WaterSeparatorWater in Sales
(8 m3/d)
Loss to Air (73 m3/d)
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Phase 1 Future Plan
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Well completions scheduled for Q1 2014.
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Commissioning of wells and pads end of Q1 2014.
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First steam in Q3 2014
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ESP conversion in Q4 2014.
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Harvest will acquire next a 4D survey in 2015.
AER Presentation •
Novermber
2013 34
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Update Facility Construction –
Main Activities•
93% progress achieved by end of 2013
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Completed civil work
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Completed Mechanical (modules & equipment) Installation
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Erected and hydro-tested all Field Tanks(12ea)
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Completed Pipelines by middle of Nov 2013
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Completed Buildings Exterior by end of Dec 2013
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Completed construction of Wellpads
by Jan 2014
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Ongoing piping and cabling etc.AER Presentation •
Novermber
2013 36
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CPF Construction Status
AER Presentation •
Novermber
2013 38
Main Elec. B/D(ELM-02)
Water Treatment Pkg.(Area 31)
Flare stack Area(Area 60)
Sales Oil/Off Spec Tanks(Area 70)
Water Treat. TK(Area 30)
Oil Treat. Area(Area 20/21)
Boiler Pkg.(Area 40)
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•
Harvest submitted the following plans in accordance with the EPEA Approval
o Caribou Protection Plan Update (Oct. 2013)
o Conservation and Reclamation Report
(Mar. 2013)
o Baseline Soil Monitoring Program Proposal (Nov. 2012)
o Fugitive Emissions Leak Detection and Repair Program (Nov. 2012)
o Historical Resources Act Clearance
(July 2012)
AER Presentation •
Novermber
2013 41
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Environmental Issues
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Wildlife Monitoring Program Initiated (Oct. 2012)
o Installation of 9 wildlife cameras,
o Photography of caribou, fisher, sandhill
crane, deer, wolf and bear,
o Track count intersects were conducted
AER Presentation •
Novermber
2013 42
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Participation in Regional Initiatives
•
Harvest will join appropriate Regional Initiatives and will continue to review in this regard
o Cumulative Environmental Management Association (CEMA)
o Wood Buffalo Environmental Association
(WBEA)
o Alberta Biodiversity Monitoring Institute (ABMI)
o Alberta Biodiversity Monitoring Program (RAMP)
o Ecological Monitoring Committee for the Lower Athabasca (EMCLA)
o Conklin Area Wildfire Prevention GroupAER Presentation •
Novermber
2013 43
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Non Compliance Issue
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Harvest was issued 1 low risk notice of non-compliance by AER for failure to notify prior to start of pipeline construction (Oct. 2013)
o Harvest has submitted letter to respond to the notice.
•
Harvest was investigated by AESRD due to a public complaint pertaining to unreported releases.
o The investigation determined the allegations were unsubstantiated.
AER Presentation •
Novermber
2013 44
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Self Disclosure
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Self-disclosure to AER to notify of licensed pipelines to remove line segments which were not constructed.
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Self disclosure to AER of changes to pipeline licenses to change piping material to duplex stainless steel (31803) in place of
carbon steel for produced gas pipeline.
AER Presentation •
Novermber
2013 45
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Statement Confirming Compliance
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Harvest is currently in compliance with all regulatory approval conditions related to the development of the BlackGold
Initial
Project.
AER Presentation •
Novermber
2013 46
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Amendments to the Approvals
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Harvest obtained the approval for amendment of Groundwater Monitoring Program pursuant to condition 4.6.4 of EPEA Approval No. 246984-00-0 (Aug. 2013)
AER Presentation •
Novermber
2013 47
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Future Plan -
Regulatory
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Application to amend Alberta Environment and Sustainable Resource Development Approval No. 246984-00-00 for Project Expansion is amended as 246984-00-02 December 5, 2013.o CPF Facility Modificationso Well Pad Modifications
AER Presentation •
Novermber
2013 48
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2100, 330-5th Avenue SW CalgaryAlberta Canada T2P 0L4 T: 1-866-666-1178 F: 403-265-3490 E: [email protected]