Corporate Presentation Calgary Office (587)475-1340 Camrose Office - - PowerPoint PPT Presentation

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 3rd 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

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

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

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