Libertys Stomping Horse Bakken EOR Pilot Williston Basin Petroleum - PowerPoint PPT Presentation

Liberty’s Stomping Horse Bakken EOR Pilot Williston Basin Petroleum Conference y 23 rd 2018 May 2 2018 C. M Mark Pearson

The Size of the Bakken? By all estimates… the size of the prize is massive!! Slide Courtesy EERC “Liberty Resources’ EOR Pilot” • Page 2 “Liberty Resources’ EOR Pilot” • Page 2

Prior Bakken EOR Well Tests Max. Pres., Avg. Pres., Well Operator Test Year Max. Inj. Rate psi Avg. Inj. Rate psi Zone Cumulative injected 13,082 bbl #9660 Meridian a 1994 500 bpd 5000 bhp 200 bpd 3000 bhp UBS Water 1000 sdp #16713 EOG 2008 700 bpd 1500 sdp 580 bpd MB 30.7 MMscf CO 2 6950 bhp 38,177 bbl water b #17170 EOG 2012 3000 bpd 4000 bhp 1500 bpd 1000 bhp MB 88.7 MMscf #16986 EOG 2014 1500 Mscfd 5000 bhp 1500 Mscfd 4500 bhp MB field gas #24779 c Whiting 2014 31 gpm 3500 bhp 10.5 gpm 3500 bhp MB 3.4 MMscf CO 2 #32937 c Hess 2017 227 Mscfd 5500 sdp 105 Mscfd 4000 sdp MB 9.5 MMscf C 3 H 8 #11413 c XTO 2017 12 gpm 9480 bhp 9 gpm 9400 bhp MB 1.7 MMscf CO 2 Burning Enerplus 2009 3000 Mscfd 1848 bhp 1000 Mscfd NA MB 45 MMscf CO 2 Tree a Current operator is Burlington Resources. b Includes values reported prior to reported test start. c Vertical well. bhp = bottomhole pressure sdp = surface discharge pressure gpm = gallons per minute “Liberty Resources’ EOR Pilot” • Page 3 3

Liberty’s Average Gas Composition Gas Component Mole% Methane 60% Ethane 20% Propane 10% C4+ 9.2% CO2 0.80% “Liberty Resources’ EOR Pilot” • Page 4

Bakken Produced Gas Has Favorable Miscibility Liberty ND State 24-16H-TF Crude Oil Testing MMP of Methane/CO2 & Methane/Ethane Blends Courtesy Steve Hawthorne, EERC • Ethane in our lease gas is very effective at lowering MMP “Liberty Resources’ EOR Pilot” • Page 5

EERC (Energy & Environmental Research Center) at UND Oil Extraction Testing on Liberty’s Bakken Cores Middle Bakken recovery Ethane is an effective solvent for oil recovery . “Liberty Resources’ EOR Pilot” • Page 6

EOR Predictions from Reservoir Simulation & Lab Studies Enhanced Oil Recovery Additional Recovery of 250,000 – 500,000 BO/Well Primary Oil Recovery ~600,000 BO/Well Single Well Production with EOR predicted from reservoir studies Rate and recovery trend increases with EOR Huff & Puff gas injection • “Liberty Resources’ EOR Pilot” • Page 7

Liberty’s NDIC Approved Rich Gas EOR Pilot 2 TFH 3 MBH 1 TFH 1 MBH 2 MBH 3 TFH 4 MBH 5 TFH 5 MBH 6 TFH 6 MBH (Leon) (Larena) Pilot Boundary Well - MB. Pilot Boundary Well - TF . Proposed Injection Well Proposed Injection Well Pilot Boundary Well - MB‘. Proposed Injection Well Proposed Injection Well Proposed Injection Well Proposed Injection Well Operated Bakken Pool Pilot Boundary Well- TF ‘ Operated Bakken Pool Operated Bakken Pool Operated Bakken Pool Monitoring Well Monitoring Well Monitoring Well Monitoring Well Twp. 158N R96W Sections 8 & 17 Leon DSW Leon Wells Leon DSE Gohrick Leon Wells Central Facility Proposed Injection Well – Operated Bakken pool well proposed for rich gas injection during EOR pilot. Operated Bakken Pool Monitoring Well – Operated Bakken pool well collocated in the DSU to be used for monitoring purposes only. Pilot Boundary Well – Operated Bakken pool well to be used for monitoring purposes only in order to provide a pilot boundary on the eastern and western edges of the DSU “Liberty Resources’ EOR Pilot” • Page 8

9 Leon Central Production Facility • Handles production from 9 in-DSU wells and 8 offset-DSU wells. • Liberty’s first Central Production Facility operating since February 2015 • Environmental benefit of four stages of gas capture • Separate 3-phase metering of each well “Liberty Resources’ EOR Pilot” • Page 9

Downhole Configuration - Minimal Cost of Service Conversion No workover cost for injection conversion; artificial lift system designed for high gas-liquid ratios. Normal Production Operation Injection Operation • Hydraulic Jet Pump • Isolate AL “Path” • Pressurize 4-1/2” AL String • BHP Gauge Deployed BHP Gauge 4 ½” Hanger 4 ½” Hanger 7” 32# Casing 7” 32# Casing “Liberty Resources’ EOR Pilot” • Page 10 4 ½” 11.6# Liner 4 ½” 11.6# Liner

11 Surveillance Plan Surveillance includes production, bottom-hole pressure, and gas composition monitoring. Surveillance Plan • Oil, gas, and water rates will be monitored continuously from Liberty Operated Wells • Oil and Water are measured using Coriolis meter, Gas is measured using orifice plate meters • Data is gathered by a Scada system and is collected every 5 minutes • The two wellbores immediately offset the injector well will be equipped with a gas chromatograph, or samples will be taken for GC • The four wellbores immediately offset the injector (pattern allowing) will be equipped with bottom hole pressure gauges. Gauge data will be retrieved every two weeks at minimum. “Liberty Resources’ EOR Pilot” • Page 11 Anticipated EOR Pilot Start Date – July 2018

EERC Report Reviewing Bakken EOR “While each previous test offers some valuable learnings, none of them individually or as a whole should be considered to be representative of future Bakken EOR operations.” “Liberty’s proposed testing program is the first true field execution of EOR in the Bakken.” “Liberty Resources’ EOR Pilot” • Page 12

The future is bright ……. ……. it is time for some EBOR !!! (Enhanced Bakken Oil Recovery) Thanks to: - all our WIO partners - EERC - NDIC - NDPC - Liberty’s Engineering & Operations Teams

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Liberty Resources II LLC • An independent Denver-based E&P company with private-equity backing primarily from Riverstone Holdings; with industry leading expertise in developing tight-oil plays using advanced completion designs and reservoir technology. • Operates in the Williston Basin (ND) and Powder River Basin (WY) with gross operated and net production of ~8,000 boepd. • Liberty Midstream Solutions (LMS) operates the 30 MMSCFD capacity County Line Gas Plant near Tioga, and a 3-well PW disposal system with associated infrastructure. Team has been working the Bakken since 2009 and has already sold its assets once (Liberty • Resources I) in mid-2013; and then re-entered the basin in 1Q 2014 with a $455 Million transaction as Liberty Resources II LLC. • The company will be operating a one-rig program in the “North Nesson Anticline” area of the Williston Basin in 2018 where we have built our position to ~100,000 net acres. “Liberty Resources’ EOR Pilot” • Page 15

2015 to 2017 Bakken Development (2890 Wells) CANADA USA Liberty Resources II Wells • Advanced Completions • Drilling 3-mile laterals NORTH DAKOTA MONTANA 1 6 “Liberty Resources’ EOR Pilot” • Page 16

Non-Core Wells Generating Competitive Returns at $50 WTI The combination of drilling efficiencies and improved productivity from geoengineered Gen. 4 & 5 completion designs means that Liberty’s half-cycle well returns in 2017/18 at $50 WTI are better than what they were in 2013 at $90 WTI. “Making Liberty’s Leasehold Perform” • Page 17