Wyoming EORI 3nd Annual Wyoming CO 2 Conference 6/23/09 The Beaver - PowerPoint PPT Presentation

Wyoming EORI 3nd Annual Wyoming CO 2 Conference 6/23/09 The Beaver Creek Field Madison CO 2 Project – Spring 2009 Update Chuck Peterson, PE – Sr. Advisor - Reservoir Engineering

Beaver Creek Field Madison CO 2 Flood Project Presentation Overview Geographic S etting Geologic and Reservoir setting Field History Final Proj ect Design Proj ect Construction Flood S tatus & Response NYS E: DVN www.devonenergy.com page 2

CO 2 Floods in Wyoming CO 2 Floods in Wyoming Devon Beaver Creek Field Anadarko Salt Creek Field Merit Energy Anadarko Wertz/Lost Soldier Patrick Draw Monel Unit NYS E: DVN www.devonenergy.com page 3

Beaver Creek Madison Structure Beaver Creek Madison Structure 0 0 3 6 - 57 Reservoir Characteristics Type Log 69 Approximate 0 0 1 6 - Porosity = 10% Oil - Water 0 0 0 6 - Contact Permeability = 9 md 30 0 34 0 9 5 o F - Reservoir Temp = 234 147 BHPi = 5301 psia 107 GORi = 288 scf/bbl 39-M 46 45 Bubble Pt. = 673 psia 127 9 10 - 42 5 00 8 Swi = 10% 104 0 2 0 6 o API 11 - 52 Oil Gravity = 39.5 14 56 77 68 41 0 - 32 0 7 5 5 Geologic Characteristics 66 7 - 40 0 44 96 0 117 38 - 6 - Limestone/Dolomite Matrix 81 6 1 0 0 55 0 0 0 - 5 Approx. Prod. Area = 974 Acres 8 0 31 0 0 146 22 0 6 5 143 - Approx. Oil Column Height = 17 43 139 136 820’ W 0 137 0 9 5 124 Avg. Net Pay Thickness = 212’ - Active Oil Producer Avg. Depth to Madison Top = Active Water Injector 11,100’ 16 15 0 1,518 NYS E: DVN www.devonenergy.com page 4 FEET PETRA 12/13/2005 5:04:00 PM

Madison Log Section A Zone Top GR/ Bulk Density B Zone Top C Zone Top D Zone Top BCU #127 Well Top @ 11224’ MD E Zone Top Bottom @ 11723’ MD F Zone Top Madison Base NYS E: DVN www.devonenergy.com page 5

Beaver Creek Madison Beaver Creek Madison Pre- -CO CO 2 Flood Production History Pre 2 Flood Production History Beaver Creek Madison Unit Production History 100,000 10,000 Monthly Volumes (Bpd, Mcfd) Oil Gas Water 1,000 WINJ 100 Discovered January 1954 Main Block (Target) OOIP = 109 MMbo Waterflood initiated in 1959 Cum Oil = 42.5 MMbo (39% OOIP) Developed with 36 completions Rem Primary/Secondary = 2.6 MMbo 10 Jan-50 Jan-60 Jan-70 Jan-80 Jan-90 Dec-99 Dec-09 NYS E: DVN www.devonenergy.com page 6

Flood Plan Peripheral CO 2 -WAG 14 Injectors: 8 WAG injectors 6 CO2 injectors 57 16 Producers 69 Low confidence B inside this area 12 Shut-in or producing 30 34 A from other formation or 147 E TA F C Detail: 39 3 well conversion (prod->Inj): 45 46 D 127 44, 146, 143 J H G 8 old producers: 42 11, 38, 41, 46, 68, 147, 66, 81 L 11 K 2 shut-in: 14 56 14, 96 68 77 6 old injectors: I 41 40, 17, 30, 32, 45, 139 7 new producers: 32 66 44 40 D, E, F, G, H, I, J, L 96 38 4 new injectors: us A, B, C, K 55 81 tive 1 Injector reactivation: 61 ctive 31 ctor 146 22 17 1 Producer reactivation: 143 77 139 43 NYS E: DVN www.devonenergy.com page 7

Flood Preparation Work Requirements • Convert 2 wells from producer to injector • Rework or recomplete 9 producers & 7 injectors • Drill 7 new producers & 5 new injectors • Construct Production & Injection Facilities • Install New Flowlines for Producers & Injectors • Build CO2 Supply Pipeline NYS E: DVN www.devonenergy.com page 8

Madison CO 2 Flood Status Where Are We At Today? Construction & Wellwork � CO 2 source pipeline completed & tested S pring 2008 � Inj ection facilities completed S pring 2008 � Production facilities completed Fall 2008 � Drilling, completion and other wellwork completed Fall 2008 � Recycle compressors installed and on line S pring 2009 CO 2 Flood Process � CO 2 Inj ection initiated July3, 2008 � 10.7 Bcfg inj ected to date � Flood response observed in 7 of the 16 producers � CO 2 indications observed in 9 if the 16 producers � Continued monitoring of production data and adj usting our flood � Flow rate adj ustments � Gas distribution adj ustments NYS E: DVN www.devonenergy.com page 9

Madison CO 2 Flood Production 100000.00 Initiated CO 2 Injection Current Rate Pre-Flood 10000.00 7/3/08 1200 Bopd 320 Bopd 22000 Bwpd 32000 Bwpd 1000.00 Water (Bwpd) Oil (Bopd) 100.00 Well count Oil Cut (%) 10.00 1.00 Oil Cut Increase from 1% to 5% 0.10 January-2007 January-2008 January-2009 January-2010 NYS E: DVN www.devonenergy.com page 10

Madison CO 2 Injection Response 6/09 Oil Production Increase 2 6 0 0 7 6 0 0 6 6 6 0 900 0 1 6 0 0 5 6 0 0 0 0 6 0 8 0 6 0 6800 4 6 G BCU 10-21 BCU 30 0 0 3 58 6 0 0 9 5 7 0 BCU 147 0 0 G BCU 10-12 0 G 0 BCU 10-41X 0 2 0 0 6 8 5 BCU 10-22-2 0 35 6 9 10 7 BCU 10-32 BCU 46 00 6 BCU 45 0 7 0 G 0 0 BCU 10-42 0 0 6 1 BCU 10-12-2 6 6 0 0 BCU 10-22 0 5 0 0 6 900 BCU 11 BCU 10-13 0 6 0 0 6 G 6 BCU 10-33 0 BCU 10-43 0 BCU 10-23 0 0 161 BCU 77 0 BCU 68 5 0 BCU 41 7 0 9 5 0 82 G BCU 32 0 0 5 6 0 0 300 6 7 BCU 66 G 50 5 BCU 40 0 BCU 44 BCU 96 5 BCU 38 104 8 0 0 BCU 81 0 BCU 31 6 BCU 146 4 0 0 BCU 143 G BCU 17 G BCU 139 6 6 0 6 0 0 7 0 0 Zone: MADISON - WELL_UTILITY [CAP] Contains "prod" 0 6 6 5 300 Zone: MADISON - WELL_UTILITY [CAP] Contains "giw" 0 1,017 5 9 Zone: MADISON - WELL_UTILITY [CAP] Contains "wag" 0 0 6 2 FEET 0 0 PETRA 6/16/2009 5:11:02 PM NYS E: DVN www.devonenergy.com page 11

Madison CO 2 Injection Response 6/09 Produced Gas CO 2 % 2 6 0 0 7 6 0 0 6 6 6 0 9 0 0 1 6 0 0 0 5 6 0 0 0 0 6 0 8 0 0 6 6800 4 6 G BCU 10-21 BCU 30 0 0 3 11 3/09 6 0 0 9 5 7 0 0 BCU 147 0 G BCU 10-12 62 3/09 G 0 BCU 10-41X 0 2 0 0 8 6 5 BCU 10-22-2 90 6/09 2 3/09 6 9 10 7 BCU 10-32 BCU 46 1 3/09 0 6 BCU 45 0 7 0 G 0 BCU 10-42 0 0 6 1 BCU 10-12-2 6 6 0 0 61 6/09 93 6/09 BCU 10-22 1 6/09 1 6/09 6 BCU 11 900 BCU 10-13 0 0 6 0 6 G BCU 10-33 6 0 1 6/09 BCU 10-43 BCU 10-23 0 95 6/09 86 6/09 BCU 77 0 BCU 68 5 BCU 41 7 0 9 0 5 0 88 6/09 G BCU 32 0 6 0 80 6/09 5 0 0 6 7 BCU 66 G 5 5 BCU 40 0 0 BCU 44 84 6/09 BCU 96 5 BCU 38 8 0 0 BCU 81 BCU 31 6 4 BCU 146 0 0 BCU 143 G BCU 17 G BCU 139 6 6 0 0 6 0 7 0 0 0 Zone: MADISON - WELL_UTILITY [CAP] Contains "prod" 6 6 5 300 Zone: MADISON - WELL_UTILITY [CAP] Contains "giw" 0 1,017 5 9 Zone: MADISON - WELL_UTILITY [CAP] Contains "wag" 0 0 6 2 FEET 0 0 PETRA 6/16/2009 6:09:36 PM NYS E: DVN www.devonenergy.com page 12

BCU 10-41 Injection Wellhead page 13 www.devonenergy.com E: DVN NYS

page 14 BCU 10-33 & BCU 10-41 2 Well Pad Location www.devonenergy.com E: DVN NYS

page 15 CO 2 Injection Header www.devonenergy.com E: DVN NYS

page 16 Production Header www.devonenergy.com E: DVN NYS

8” CO 2 Supply Pipeline Delivery Point page 17 www.devonenergy.com E: DVN NYS

page 18 CO 2 Recycle Compression www.devonenergy.com E: DVN NYS

Recycle Compression Facility page 19 www.devonenergy.com E: DVN NYS

Storage Tanks / Dehydration page 20 www.devonenergy.com E: DVN NYS

Separation/Dehydration Facility page 21 www.devonenergy.com E: DVN NYS

page 22 Separation Vessels www.devonenergy.com E: DVN NYS

page 23 Production Facility Building www.devonenergy.com E: DVN NYS

Production Facility Building NYS E: DVN www.devonenergy.com page 24

Managing Start-up Operations page 25 www.devonenergy.com E: DVN NYS

Thank You.