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Progress Energy
Winter 2010/2011 |
Bids Due: Jan. 17, 2011 |
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Primary Contact: 403-299-8453
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Introduction Letter | Foreward & Disclaimer | Asset Sale Overview Fort St. John North: Overview | Beaverdam | Currant | Minor Properties Fort St. John South: Overview | Two Rivers | Stoddart | West Eagle | Flatrock | Teal Ojay: Overview | Area Activity | Nikanassin Development Potential | Cadotte/Falher Development Potential Copton: Overview | Geology & Area Activity | Cardium Development Potential | Cadotte Development Potential Two Creek: Overview | Jurassic 'A' and 'B' Pools | Jurassic 'A' Pool - ASP Upside Potential | Gething |
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TWO CREEK - JURASSIC 'A' POOL - ASP UPSIDE POTENTIAL
TWO CREEK - ASP FLOOD
The Two Creek Jurassic ‘A’ Pool appears to be an excellent candidate for an Alkaline Surfactant Polymer (ASP) tertiary flooding. Based on analogous ASP floods, applying this tertiary-recovery method may recover approximately 1.2 MMbbl of incremental oil reserves generating an estimated before tax NPV 10% of $16.4MM in addition to the engineered value of $10MM (2P).
WRENTHAM ASP ANALOGUE
The ASP process was initially introduced in Canada by Husky and applied to the Wrentham ‘C’ Pool. Husky commenced the Wrentham ‘C’ Pool ASP in 2001 and completed it in 2009. As a result of the ASP flood, the Wrentham ‘C’ Pool oil production more than doubled and the water cut was reduced from over 97% down to 80%. Based on publically available data an additional 15% of the 13.3 MMbbl of original oil in place (OOIP) was recovered (incremental oil recovery of 2.0 MMbbl). More recently the operator of the Mooney Bluesky Pool (16° API) has announced a successful ASP pilot project with estimated incremental recovery of 18%.
They are proceeding to a larger scale commercial project and have applied to the Alberta Government for royalty relief.
DEVELOPMENT POTENTIAL / GEOLOGY
The main production is oil from two separate Jurassic sandstone pools, the ‘A’ Pool in the northeast and the ‘B’ Pool in the southwest of Two Creek. The Jurassic sandstone consists of 8-10m thick reservoir consisting of sediments deposited in a marine to fluvial type depositional setting. The Jurassic sandstones overlie the Fernie shales which are believed to be a source rock and also act as a bottom seal. Overlying and in some places downcutting and removing the Jurassic sandstones are the mixed coal and fluvial deposits of the Gething Formation. Minor gas production comes from Gething channel reservoirs in the area.
In this area, the Jurassic sandstones tend to be porous and productive where overlying a thicker Fernie interval. Where the Fernie isopach thins, there tends to be an accumulation of Gething channel sands. Over the Company’s property there is a thickening of the Fernie isopach and a northwest-southeast trending, productive Gething channel trend that separates the Jurassic ‘A’ from the Jurassic ‘B’ Pool.
Jurassic ‘A’ Pool: The Jurassic ‘A’ Pool was discovered in 1995 and is currently producing from eight wells with three water injection wells.
The Jurassic sandstone of the ‘A’ Pool has an OOIP of 10,767 Mbbl of 18° API oil, with cumulative production to August 2010 of 883 Mbbl for a recovery factor of 8%.
There is opportunity to drill infill wells to increase recovery, drill peripheral wells to extend the pool edges, drill more water injection wells, or to consider an ASP flood.
THE ASP PROCESS
In the Alkaline Surfactant Polymer (ASP) process, a very low concentration of the surfactant is used to achieve ultra low interfacial tension between the trapped oil and the injection fluid/formation water. The ultra low interfacial tension also allows the alkai present in the injection fluid to penetrate deeply into the formation and contact the trapped oil globules. The alkai then reacts with the acidic components in the crude oil to form additional surfactant in-situ, thus, continuously providing ultra low interfacial tension and freeing the trapped oil. Polymer is used to increase the viscosity of the injection fluid, to minimize channeling, and provide mobility control.
Jurassic ‘B’ Pool: The Jurassic 'B' Pool represents a waterflood opportunity similar to the Jurassic 'A' Pool which has been under waterflood since late 2003. The 'A' Pool demonstrated a classic waterflood response, increasing oil production (2x) and a corresponding reduction in gas breakout.
Three potential injection wells are indicated above. Repressurization of the 'B' Pool may also condition it for a future ASP project.
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