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LEDUC (D-3) RE-ENTRY AND ELECTRICAL SUBMERSIBLE
PUMP INSTALLATIONS
ELECTRICAL SUBMERSIBLE PUMP INSTALLATIONS
Since 2001 there have been 13 high volume Electrical Submersible Pumps (“ESP”) installed on shut-in, suspended or low oil rate D-3 wells within the Leduc-Woodbend field. The ESP allows for very high total fluid production and even with higher water cuts and water rates, total oil rates are increased significantly. The 11-20-050-26W4 well had an ESP installed in July 2001; oil production increased from less than 20 bbl/d to over 100 bbl/d of oil, where it remained essentially flat for two years. Since installation the well has produced an incremental 116.9 Mbbl. A type curve based on 12 of the wells indicates an initial production rate of 41 bbl/d and recoverable oil of 67 Mbbl per well can be expected with an ESP installation. The increase in water production from the installations is easily handled at the Company’s operated facilities.
PROPOSED ESP INSTALLATIONS
The Company has identified 16 additional candidates for ESP installation in four existing Leduc producers, five shut-in/suspended Leduc producers, and seven abandoned historical Leduc producers which will also require re-entry and recompletion. Candidates were chosen on the basis of several criteria including the structure of the last known perforated interval, oil rates at the time of suspension or abandonment, cumulative recovery from the well and offset well performance. The Sproule engineering report has not included any reserves for ESP installations.
The capital cost of installation on existing producers and suspended wells is assumed at $250,000. The cost on abandoned wells, which will require the drilling out of plugs and recompletion, is assumed at $390,000. The installation of ESPs has proven to be a low cost, low risk operation which significantly increases oil rates and reserve recovery.
