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 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
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
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 3 rd Party Services
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
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
Abandonment Cost Analysis OUTSIDE # AVERAGE CONSULTING WELLS COST/ABAN TOTAL TERMINIS 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 # AVERAGE TERMINIS WELLS COST/ABAN TOTAL 2014 30 $38,844 $1,165,326 2015 27 $39,706 $1,072,067 TOTAL 57 $39,252 $2,237,392 AVERAGE COST/ABAN 62% REDUCTION Terminis reduced average abandonment costs by OVER 60% (52% Excluding 2012) IMPRESSIVE COST SAVINGS
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
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 – Downhole tool rentals and service
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