Corporate Presentation 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 actively managing Abandonment Liability – Inflated Costs for LLR calculation – Asset value has decreased with commodity prices • Oil Companies have not actively managed – Have only dealt with regulatory “must do’s” – Have not focused on abandonments/reclamation – Historic costs have been high • Affecting Asset Sales – Liabilities outweigh asset value in many cases – Transactions difficult given current liabilities – AER not allowing acquisition 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, Estimates, Waivers • Wellsite Supervision • Service Provider – Coiled tubing unit – Wireline – Pressure truck and water trailer – Downhole tools • Manage 3 rd Party Services
Equipment • Coiled tubing unit – Circulating string for cement jobs – Drill out plugs – Run plugs and retainers – Pressure test with packer if multiple zones • Pressure unit and water trailer – Pressure testing – Feed rate tests – Circulating over to fresh water • Wireline unit – Cement bond, temperature, noise, CHAT logs – Perforating – Setting plugs and retainers • 30 Tonne Crane – Tubing and rod transport
Case Study • Operator wanted to lower abandonment costs • Looking for innovative practices • 31 well program in 2014 • Focused on routine abandonments • Target – substantial reduction 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 – Multiple wells in small area – Allowed work around weather • Effective Project Management – Multi-well bids – Use rig to pull tubing and rods only – Effective use of third party contractor time – Purpose built equipment in 2015 – Experienced field team with multiple skills
Who is Terminis? • Gord Robinson – 33 years of operations and project management experience – Specialized in multi-well shallow gas and CBM programs • Shawn Erick – 30 years service industry experience • Owner Coil Tech Coiled Tubing until 2006, • Owner Lone Star Oilfield Services – Downhole tool rentals and service • Dan Nahajowich – 20 years service industry experience • Coil Tech Coiled tubing • Coiled Tubing Manager Big Eagle Services 2006-2010 • Dan Lien – Mechanic
Current Activity Map
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