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Extended-Reach Slant Drilling Application MacKay River SAGD Project

Extended-Reach Slant Drilling Application MacKay River SAGD Project

Dwight Teotico & Amy van ThielJune 3, 2008

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 2

Introduction - ObjectivesIntroduction - Objectives

Oil Sands in Alberta

MacKay Area Overview

Objectives for MRX

MRX Extended Reach Planning

Execution & Accomplishments

Going Forward

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 3

Oil Sands in AlbertaOil Sands in Alberta

Athabasca Oil SandsSpans 40 000 square kmOver one trillion barrels of OBIP

10% accessible through economical surface mining methodsThermal in-situ method

Injection of steam to reduce viscosity of oilWell pairs drilled horizontal, parallel and vertically alignedFirst field tested at AOSTRA’s Underground Test FacilityEnvironmental surface impacts are minimized

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 4

MacKay Area OverviewMacKay Area Overview

Located 60 km northwest of Fort McMurray

Petro-Canada’s first commercial SAGD project.

Estimated lifespan of 25 to 30 years

Fort McMurray

Oil Sands Oil Sands RegionsRegions

Mining AreaALBERTA

Calgary

Edmonton

CROWN

MacKay River

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 5

MacKay Area Overview (Cont.)MacKay Area Overview (Cont.)

Executed Drilling ProgramsPad 20/21 – 25 well pairs (Sept. 2001)Pad 22/23 – 21 well pairs (Jul. 2005)Pad 40 – 2 well pairs (Jan. 2005)Pad 24/25 – 20 well pairs (Apr. 2008)

Current Drilling Program H Pattern – 4 well pairs to be completed June 2008

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 6

Objectives of MRXObjectives of MRX

Design the optimum well pairsEnsure bitumen supply of 40 000 bbl/day at central facilityDesign injector and producer to minimize liquid level build-upOptimize SOR by even steam chamber development

Conventional or … Larger Extended Reach Well Bores

Reduction of logistics costsReduction of drilling costsReduction of facilities costs

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 7

Extended Reach Cost SAVINGS Extended Reach Cost SAVINGS

Original plan -> 4 pads to drain 8 patterns (54 pairs)Revised plan -> 2 pads to drain 5 patterns (42 pairs)Reduction in pads equated to a savings for several areas

Drilling Facilities Logistics

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 8

Rig UtilizationRig Utilization

Horizon 301650 m Surface RigVertical or 45 degree slant drilling capabilityUtilized due to scheduling constraints

Precision Drilling 295SL2200 m Super SingleTM

45 degree slant drilling capabilityDesigned for specialty drilling such as SAGD

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 9

GeologyGeology

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 10

Geological ChallengesGeological Challenges

FormationsSURFACE - Unconsolidated sand, boulders, and gravel seamsINT. - High clay contentMAIN - Unconsolidated saturated highly porous bitumen pay

Limited True Vertical DepthSurface Casing (Kick of Point) ~ 60 mTVD ICP of ~ 135 mTVDSlant drilling with aggressive build ratesExtreme pull downs

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 11

Well Design ChallengesWell Design Challenges

Large diameter hole/casing sizes for surface and intermediate strings

BHA Design

Unconventional Torque and Drag Issues

Torque limitations for installation of slotted liner

Directional profile constraints

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 12

MRX Planning and Preparation MRX Planning and Preparation

Encapsulating Drilling Fluid System

Eliminate accretion issuesReduces abrasiveness Allows for mechanical solids separationProvides lubricity

Hole Cleaning CapabilityMaintain minimum annular velocityModeration of drilling rate to match hole cleaning capabilityMechanical cleaning methodsPremium fluid handling and solids control equipment

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 13

MRX Planning and PreparationMRX Planning and Preparation

Mud Cooling SystemIncreased well bore stabilityDecreased torque and dragReduction in cuttings volume

MGT ConveyanceSAGD producers were ranged to the existing OB wellsSAGD injectors were ranged to the producers

TractorCoiled Tubing

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 14

MRX Directional PlanningMRX Directional Planning

ChallengesMaintaining angle in sand on surface holeDrilling at base of producing zone without entering non-producing Limestone formationRanging constraints

Directional Planning & Execution

Maximum planned dogleg of 8’s on build sectionsClose directional control to reduce DLS and tortuosity

Extended reach drilling technologies investigated

Rotary SteerableAG-itatorSlider

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 15

711mm Hole Opener711mm Hole Opener

Used to ream open 311mm pilot hole to 711mm

~ 7000 lbs

Top Section Bottom Section

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 16

Liner Running Installation LimitsLiner Running Installation Limits

Torque limitations under combined loading of tension/ compression

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 17

SAGD Extended Reach Well DesignSAGD Extended Reach Well Design

7" WELL DESIGNPRODUCER INJECTOR

Spud @ 45deg inclinationG.ELEV (m): (see survey)KB. ELEV (m) :(see directional plan)Class I BOP (Diverter)

PETRO-CANADA MR1 SAGD

Surface Casing 13 3/8" (339.7mm) Surface Casing

177.8 x 244.5mm Debris Seal Packer

9 5/8" (244.5mm) Interm. Casing,

2 Blank Joints Overlap

7" (177.8mm) Inj./Prod Slotted Liner

INJECTOR

PRODUCER

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 18

AccomplishmentsAccomplishments

PC NNP1 – 1533mMD, 131mTVD, 1480m V.S.

11.3:1 V.S to TVD ratio

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 19

Accomplishments – NNP1Accomplishments – NNP1

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 20

Going ForwardGoing Forward

Continued Well DesignCasing/Tubing ConfigurationsSlotting DesignCement Integrity

Drilling ChallengesEquipment LimitationsRig Modifications

2006 Petro-CanadaMarch 24, 2006 MRX Well Design 21

QuestionsQuestions