SLIDE 1
Corporate Presenta,on
Calgary Office (587) 475-1340 Camrose Office (780) 679-4779
Outline
- What is the Issue?
- How can Terminis help?
- 2014/2015 Abandonment Program Results
- Success Factors
- Who we are
Corporate Presenta,on Calgary Office ( 587 ) 475-1340 Camrose - - PowerPoint PPT Presentation
Corporate Presenta,on Calgary Office ( 587 ) 475-1340 Camrose - - PowerPoint PPT Presentation
Corporate Presenta,on Calgary Office ( 587 ) 475-1340 Camrose Office (780) 679-4779 Outline What is the Issue? How can Terminis help? 2014/2015 Abandonment Program Results Success Factors Who we are What is the Issue? LLR
SLIDE 2
SLIDE 3
What is the Issue?
- LLR has become an issue
– AER is acNvely managing Abandonment Liability – Inflated Costs for LLR calculaNon – Asset value has decreased with commodity prices
- Oil Companies have not acNvely managed
– Have only dealt with regulatory “must do’s” – Have not focused on abandonments/reclamaNon – Historic costs have been high
- AffecNng Asset Sales
– LiabiliNes outweigh asset value in many cases – TransacNons difficult given current liabiliNes – AER not allowing acquisiNon of only Best Assets
- Officers and Directors are being held accountable
SLIDE 4
Industry Average Abandonment Costs
Of the 961 wells reviewed, industry average abandoment cost was $117,000 In the first two years Terminis reduced a Client’s average abandonment cost by OVER 60%
New Approach Reduces Cost
SLIDE 5
How Can Terminis Help?
- Full Service Abandonment Company
- Focused on reducing total well cost
- Programming, EsNmates, Waivers
- Wellsite Supervision
- Service Provider
– Coiled tubing unit – CemenNng – Wireline – Downhole tools
- Manage 3rd Party Services
SLIDE 6
Equipment
- Coiled tubing unit
– CirculaNng string for cement jobs – Drill out plugs – Run plugs and retainers – Pressure test with packer if mulNple zones
- CemenNng unit
– Cement squeezes – Pressure tesNng – CirculaNng
- Wireline unit
– Cement bond, temperature, noise, CHAT logs – PerforaNng – Sefng plugs and retainers
- 30 Tonne Crane
SLIDE 7
Case Study
- Operator wanted to lower abandonment costs
- Looking for innovaNve pracNces
- 31 well program in 2014
- Focused on rouNne abandonments
- Target – substanNal reducNon in downhole
abandonment costs
- Results led to a second program in 2015
SLIDE 8
Abandonment Cost Analysis
Terminis reduced average abandonment costs by OVER 60% (52% Excluding 2012)
62%
AVERAGE COST/ABAN REDUCTION
IMPRESSIVE COST SAVINGS
TERMINIS # WELLS AVERAGE COST/ABAN TOTAL 2014 30 $38,844 $1,165,326 2015 27 $39,706 $1,072,067 TOTAL 57 $39,252 $2,237,392 OUTSIDE CONSULTING # WELLS AVERAGE COST/ABAN TOTAL 2007 17 $74,990 $1,274,830 2008 8 $83,879 $671,032 2009 6 $88,669 $532,014 2010 9 $92,982 $836,838 2011 3 $70,609 $211,827 2012 9 $166,238 $1,496,142 2013 4 $71,575 $286,300 TOTAL 56 $94,803 $5,308,983
TERMINIS
SLIDE 9
Success Factors
- Minimize Squeeze intervals
– Integrated geologic/engineering approach – Challenge AER requirements
- Project approach
– MulNple wells in small area – Allowed work around weather
- EffecNve Project Management
– MulN-well bids – Use rig to pull tubing and rods only – EffecNve use of third party contractor Nme – Purpose built equipment in 2015 – Experienced field team with mulNple skills
SLIDE 10
Who is Terminis?
- Gord Robinson
– 33 years of operaNons and project management experience – Specialized in mulN-well shallow gas and CBM programs
- Bruce Mitchell
– 40 years service industry experience
- Willco Wireline, Turnkey Abandonments, Snub Secure
- Inventor holds numerous patents
- Shawn Erick
– 30 years service industry experience
- Owner Coil Tech Coiled Tubing unNl 2006,
- Owner Lone Star Oilfield Services