Reduced Emissions CompletionsJonah Case StudyBonnie EllwoodEnvironmental EngineerEnCana Oil & Gas (USA) Inc. |Denver, CO | October 20, 2009Outline•Hydraulic fracturing review•Traditional surface setup•Reduced Emission Completions (REC) surfacesetup•Applicability•Case studyCompletion OperationsWellbore Perforating•Casing perforated with jetchargebased on geologic correlation•Penetrates casing and cement•Connects the reservoir to the wellboreFracturing OperationsHydraulic Fracturing•Sand in gel (guar) and water•Pressure initiates fracture•Sand pumped into fracture•Fluid flowed back•Sand stays in formation•Some fluid recovered duringcompletion•Remainder produced overtime or stays in the reservoir•Fracture creates conductivepath•Very controlled systemduring fracturingFracturing OperationsPlug and Repeat•After flow back a compositeplug set•Isolates previous stage•Next Stages is perforated•Another fracture treatment isperformed•Repeated every 200’ to 250’as neededFracturing OperationsProduction•Composite plugs drilled out•Tubing string run in hole•Well put on productionthrough tubing•Gas will follow path of leastresistance into wellbore andto surface through tubing•Pressure gradient allows gasto move only up tubingDown Hole Frac Fluids•Water Fracs–Cross Linked Gel – increasesviscosity–Breaker – breaks viscosity•Energized Systems–N2, CO2–Foams or assistProppant Types•Low Strength–Sand•Resin Coated–Use various substrate•Intermediate Strength–Man-made proppants–Aluminum silicate•High Strength–BauxiteHistorical set upEarthen PitFlow backslurryWell headUsually not hooked up topermanent sales line untilwell is completed andtubing landedREC Set UpFlow backslurryWell headFlareWater TankLiquidPreviouslyinstalledsales lineValveTemporarymeterLess Than 100% Captured

RateWaterGas 

# PressureMinimum P to entersales lineVolume ofgas flaredTimeEnergized Fluids

RateWaterGasTimeN2, CO2Minimum percent ofenergized fluid forsales compositionVolume ofgas flaredDistinct Phases

RateWaterGasTimeVolume ofgas flaredVolume of gas flared does notwarrant feasible time for RECNon applicable scenarios•No permanent sales line–Step out wells, exploratory, wild cat•Gas pressure relative to the sales line•Energized fluids–N2 and CO2 limits for sales gas•Distinctive liquid to gas interface with no sand–Time–Volume of gas–Gas pressure for level controller pneumaticsJonah Field LocationEstimated Flared VolumeYearTotal Gas thru Unit% FlaredMMCF/YR200100.00%200200.00%20034593.70%20046,2371.01%200517,9850.61%2006*9,4611.46%20078,4920.87%200814,8320.45%2009YTD2,8480.10%Cost of REC•Daily rate * number of days in completions–Flow back unit–Crew–Iron rentals–Temporary meter skid•Cost to install pipeline to well head after completionsEconomics of Captured GasYearGas to SalesPrice NWPCost of FlowBackGas SaleRevenueMMCF/YR$/MCFUnit and Crew2003442$4.62($3,036,200)$2,040,97320046,174$5.87($8,857,800)$36,260,555200517,876$7.80($9,112,400)$139,454,7132006*9,323$6.34($16,800,000)$59,151,09920078,418$4.43($37,728,000)$37,268,080200814,766$7.01($40,425,000)$103,438,4622009YTD2,845$3.19($9,075,000)$9,063,281NPV 2003: US$190,070,000Conclusions•Fits well into resource play development•Economical•Environmental benefit•Not always viable•Improves our social license to operateThank You