advancing the reliable evaluation of unconventional...

JOIN 120+ RESERVOIR ENGINEERING AND CORPORATE RESERVES LEADERS THIS JUNE

Tel: +1 713 554 8380 Email: [email protected]

www.reu-us.comJune 19 – 21, 2018 | Houston, TX

Advancing the Reliable Evaluation of Unconventional Reserves to Enhance Asset Development, Bankability & Reporting

20 Expert Speakers Include:

Ron Harrell Chairman EmeritusRyder Scott

Mike Jackman Senior Counsel Securities & Exchange Commission

Matt ParsonsSenior Staff Reservoir Engineer, Subsurface Lead Hunt Oil Company

Hoss BelyadiSenior Reservoir EngineerEQT Corporation

Richard Cao Staff Reservoir EngineerShell

Sabrina ChengSenior Reservoir EngineerShell Canada

2018 Partners

Why Attend: The only focused annual meeting for reservoir engineering and corporate reserves teams to focus on unconventional reserves estimation

Gain a full 360° view on practical strategies and tools for improving the appraisal, forecasting and bankability of reserves

An Operator-led program with actual use cases and interactive panels to give you hands on strategic and technical know-how to implement in your own organization

8th Reserves Estimation Unconventionals HoustonJune 19 – 21, 2018 | Houston, TX


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Hoss Belyadi from EQT and Ebrahim Fathi from WVU share their work on the application of machine learning in prediction and quantification of well interference “frac-hit” in Marcellus Shale

Richard Cao from Shell will identify optimum well spacing in the Permian and the impact of parent depletion on child completion effectiveness

Matt Parsons from Hunt Oil will present a Permian Basin case study, exploring enhanced field development in the Southern Midland Basin and results for proved reserves

Mike Jackman from the SEC will share SEC trends and developing issues in reserves reporting and enforcement

Brent Haas from R Lacy shows how he is reducing EUR uncertainty and optimizing completions and stimulation practices to improve well recovery in the Haynesville

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Thank you for the great conference! Topics discussed and networking during the REU are incredible and I have not seen anything similar on other conferences. Alfiya Nikolaeva, Reservoir Engineer, Schlumberger

Would highly recommend the conference to anyone wishing to learn more about current practices regarding forecasting and reserves analysis. Abby Miller, Reserves Engineer, EQT Corporation

Welcome to REU Houston 2018We’re moving into an exciting phase in the application of unconventional reserves estimation tools and techniques. However the lack of long-term production history means there are still huge challenges to overcome in order to reliably forecast and book reserves.

The 8th Annual REU Houston Conference brings together 120 + reservoir engineering, corporate reserves, finance and asset leaders, to share practical tools for improving field development decision-making and ensuring reserves reporting falls within the boundaries required by the SEC and investors.

In addition to the main program, the pre-conference workshop day will give you a deep dive into production forecasting and reserves estimation in shale reservoirs with multi-phase flow.

Agenda Case Study Highlights Include:

Discover Emerging Strategies & Advances In:

1. 2. 3. 4. 5.Improving the reliability of reserves evaluation and reporting through optimal modelling and forecasting

Better understanding parent/child well relationships and infill spacing to maximizing EUR

Reserves evaluation through data analytics and Machine Learning: Strengths, weaknesses, challenges, and opportunities

Simulation tools for unconventional reservoirs to improve engineering decision-making

Field Development Planning: Linking reserves to completion strategies and production optimization



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Your Expert Speakers

Richard CaoStaff Reservoir EngineerShell

Stuart CoxVice President - Reservoir EngineeringPetroEdge

Mike JackmanSenior CounselSecurities & Exchange Commission

Dr John LeeProfessor, Harold Vance Department of Petroleum EngineeringTexas A&M University (Via Video Link)

Brent HaasVice President of EngineeringR Lacy

Stephen GardnerSenior Reservoir EngineerBBVA Compass

Senior Representative3esi Enersight

Ron HarrellChairman EmeritusRyder Scott

Jim ShussManager, Business Development & Evaluations PDC Energy

Chris BeatoCEOExaro Energy


Ace AlexanderManaging Director – EngineeringConstellation Energy

Larry PhillipsSenior Vice President - Reservoir Engineering UnconventionalEagle Energy Exploration

Matt ParsonsSenior Staff Reservoir Engineer, Subsurface LeadHunt Oil Company

Joe DavisSenior Vice President, GeoscienciesKalnin Ventures

Rod SidleIndustry Advisor – Reserves Management3esi Enersight


Tracy LenzArea Engr Manager - Reserves & ReservoirJones Energy

Ebrahim FathiAssistant Professor of Petroleum and Natural Gas EngineeringWest Virginia University

Duc LamSenior Reservoir EngineerUnconventional Subsurface Integration

Conference was very well organized and to the point. Looking forward to next year’s conference. Keep up the great work!

Will Smith, Reservoir Engineer, New Century Exploration

Conference Day One | Wednesday, June 20


8.30 Chair’s Opening Remarks

Industry Trends & Optimizing Evaluation & Reliability of Well Performance Forecasting

Ace AlexanderManaging Director – EngineeringConstellation Energy

8.40 Understanding the Impacts of the Commodity Price and Costs on Reserves Estimation: Lessons Learned from the Past and Innovations to Take Us Into the Future• Commodity price forecasting basics for engineers• Delving into industry trends on reserves development and reserves economic

evaluations• Increasing recoverable resources in light of the pricing environment and impact of

technology • Price sensitivities in reserves and planning: Handling the challenges of expected higher

vendor costs and how improved reserves estimation can better support investment decisions

• Driving value from increasingly reliable forecasting to develop a balanced portfolio of new wells, infills and refracs within the FDP

• Sustaining and growing profitability through deeper subsurface understanding


Chris BeatoCEOExaro Energy


9.10 Panel Discussion: Leveraging Minimal Data for the Optimal Evaluation and Reliability of Well Performance Forecasting• Evolutions of the B factor and terminal decline discussion within and outside of the

typical model • Which decline curve analyses are most accurately tracking longer-term decline across

major basins, and why? • Understanding the uncertainties of decline curve analysis vs production time evaluated

– how does that error bar shrink with time?• Exploring developments and practical limits of Arps and other methods: Applicability

for field development and reporting • Optimizing type well selection for reliability• Benchmarking well performance using 60 month estimated cum vs EUR • Understanding data requirements and sources for data gathering, including

collaboration within the industry

10.00 Speed Networking & Morning Refreshments

Improving Reserves Evaluation & Reporting to Better Meet SEC & Investor Requirements

Stephen GardnerSenior Reservoir EngineerBBVA Compass

Joe DavisSenior Vice President, GeoscienciesKalnin Ventures

11.00 Panel Discussion: Better Understanding the Reserves Evaluation Parameters that Investors Are Most Focused On• Responsible financial metrics to understand unconventional investments: Long-lived,

front-end and dominated forecasts• Reserves in a private equity world: Exploring the balance between full-field and

mid-field in terms of risk, return and field development• How are people qualifying proved volume beyond the standard 1 offset rule?



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Mike JackmanSenior CounselSecurities & Exchange Commission

11.50 SEC Keynote: Trends and Developing Issues in Reserves Reporting and Enforcement• Gaining knowledge from the regulator to provide investors with “apples-to-apples”

comparison of their investment options• SEC Enforcement priorities for oil & gas industry reporting and examples of

enforcement actions• The importance of effective internal controls over proved reserves reporting• Comments and issues from the 2017 filings season

12.20 Lunch & Networking

The Role of Parent/Child Relationships & Well Spacing in Maximizing EUR

Richard CaoStaff Reservoir EngineerShell

2.00 Case Study: Identifying Optimum Well Spacing in the Permian and the Impact of Parent Depletion on Child completion effectiveness• Exploring trial and error, pilots, and modelling for identifying optimal well spacing • Developing a novel integrated statistical workflow• Data analysis, pilots and detailed geomechanical and statistical reservoir modeling • Integrating EUR reduction factors from workflow with economic criteria to determine

optimum well spacing• Reservoir modelling to understand the hydraulic fracturing and production process

more fully and the impact on parent/child well interference

2.30 The Integration of Planning and Reserves: People, Processes, and Performance• Distinct workflows energy companies are using to integrate reserves data and business

planning in one ecosystem• Using the right data for the purposes with less data mining, and more analysis• How does reserves data impact the rest of the business? How can this data be

leveraged by other teams for maximum insight, and vice versa?• How integrated planning and reserves provides a unified view of assets, increases in

efficiencies, enhanced collaboration and more informed decision-making

3.00 Afternoon Refreshments & Networking


3.30 Refresher on 2007 Principle-Based Reserves Estimating and Auditing Standards• Professional qualifications for preparers of petroleum reserves estimates or audits• Discussing standards pertaining to the estimating and auditing of oil and gas reserves

information • Gaining industry alignment on estimates or audits• Clarifying audit guidelines

Jim ShussManager, Business Development & Evaluations PDC Energy


Rod SidleIndustry Advisor – Reserves Management3esi Enersight

3.50 Panel Discussion: Clarifications on the Five Year Rule as We Move into the Mature Phase of the Rule• Exploring previous letters for comment: What are the core experiences and aspects to

learn from?• What the rule means for acreage trades and asset swaps that aren’t cash transacted,

and accounting for these in the reserves record• How do we marry SEC reporting requirements with increasingly reliable technical

estimations that may not be accepted by SEC, but work for field development planning?

• Understanding the balance of drivers for level or accuracy of estimation• Is it accurate to declare reserves technically proven but not SEC proven in specific

cases?

4.40 Chair’s Closing Remarks

4.50 Close of Day One



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Conference Day Two | Thursday, June 21


8.30 Chair’s Opening Remarks

Field Development Planning: Linking Reserves toCompletion Strategies & Production Optimization

Matt ParsonsSenior Staff Reservoir Engineer, Subsurface LeadHunt Oil Company

8.40 Permian Basin Case Study: Enhanced Field Development in the Southern Midland Basin• Evaluating well performance and different completion characteristics• Accurate prediction of draining radius • Depletion impacts from neighbouring well completions and depletions • Increased cost of parent well vs child well productivity • Well stacking and spacing assumptions and results for proved reserves

Brent HaasVice President of EngineeringR Lacy

9.10 Case Study: Reducing EUR Uncertainty and Optimizing Completions/Stimulation Practices to Improve Well Recovery in the Haynesville• Identifying workflows, completion and stimulation practices to optimize EUR• Streamlining integration of 3rd party public data into analytics and visualization tools • Incorporating multivariate regression analysis on datasets to reduce EUR uncertainty • Exploring different stimulation approaches, including better stimulations with multiple

horizontal fracs

Dr John LeeProfessor, Harold Vance Department of Petroleum EngineeringTexas A&M University Via Video Link

9.40 Keynote Presentation: Construction of Type Wells

10.10 Morning Refreshments & Networking

Reserves Evaluation Using Data Analytics & Machine Learning: Strengths, Weaknesses, Challenges, Opportunities for Enhancing Forecasting and Bankability of Assets

Ebrahim FathiAssistant Professor of Petroleum and Natural Gas EngineeringWest Virginia University


10.40 Case Study: Application of Machine Learning in Prediction and Quantification of Well Interference “Frac-Hit” in Marcellus Shale• Developing a driven model to locate and determine frac-hits in Marcellus shale using

hard data to address significant increase in frac-hit occurrences due to infill wells being completed

• Combining Adaptive Moment Estimation (ADAM) Neural Networks with designated parameters and target outputs in conjunction with gas flowrate, tubing pressure, and cumulative gas prediction

• Results of NN training and test results and predicting the moment of the frac-hits to new infill wells


11.10 Case Study: Optimizing the Value of the Asset Through Improved Type Wells Analytics• Methodology for maximizing use of available data in analyzing type wells • Forecasting & typing wells • Analyzing drilling and completion data & practices • Choosing wells appropriate as type wells for developing your type curves



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11.40 Lunch & Networking

Reliability & Use of Simulation Tools for Unconventional Reservoirs

Duc LamSenior Reservoir EngineerUnconventional Subsurface Integration

1.00 An Integrated Engineering View on Reserves Estimation for Permian Wolfcamp Shale• What is the current state? • Detailing the Reservoir Simulation model and its use• Subsurface parameters and their effect on IPs and EURs• Merging simulation, cloud based computing and traditional DCA• Conclusions

1.30 Roundtables: Sharing Best Practices and War Stories for Analytics Tools and other Technologies to Improve Reserves Estimation and Bankability of Assets• Data analytics and Machine Learning: Reliable technologies for optimizing reserves

estimation• Increasing importance of data analytics as operators start to move into a

development/manufacturing drilling mode • Best practices on application of technologies and decline curve methodologies; and

how this has led to improved reporting and investment decisions • Focusing on data that ‘makes the most sense’ to engineering to perform analytics on in

order to drive the best business decisions • Marrying the science and the analytics together

2.00 Chair’s Summary

2.10 Afternoon Refreshments & Networking

2.40 Close of Conference

Pre-Conference Workshop Day | Tuesday, June 19

An important topic that has arisen in the last few months is rising gas-oil-ratios in liquid-rich reservoirs, notably in the Permian basin. Because of this issue and public claims that were made, the value of one stock dropped by about $7 billion in less than a day. Claims have often been based on bad technology. This issue, generally one that arises in ultra-tight volatile oil reservoirs, needs a thorough focus. The morning will focus on the fundamentals, followed by case histories and practical examples of applying to datasets in afternoon. The day will finish by running through a workflow that you can take home and apply within your own organization. Join us to discuss:• Examples of where models are changing over time with

changes in EURs and EGRs (gas, liquids and NGLs)• Impacts of substantial increase of gas oil ratio on

production and reserves

• For retrograde (or condensate gas) reservoirs, what happens once the reservoir reaches the dew point pressure and how would that impact, future production and reserves?

• Recovery factors and lift methods for moving oil in retrograde and volatile oil reservoirs: The potential to enhance oil recovery from these reservoirs

• How can recovery be enhanced from retrograde gas reservoirs? Potential for maintaining reservoir pressure above dew point pressure

• E.g. Injecting gas to maintain reservoir pressure • Rate transient analysis for single phase and how

successfully is this being applied for multi-phase?• Exploring simulation for multiphase modelling• Yield and variation with yield, not just with time but with

stress data and geomechanics etc• Leveraging infield data pressures

Production Forecasting & Reserves Estimation in Shale Reservoirs with Multi-Phase Flow8:30 – 4:00



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SNAPSHOT OF COMPANIES WHO ATTENDED IN 2017:

Lead Partner3esi-Enersight is the E&P industry’s leading provider of solutions for integrated strategy, planning and reserves,

trusted by thousands of executives and technical decision makers in companies that include NOCs, Super Majors, Emerging Operators, investors, and consultants. From corporate strategy and planning to operations, capital management and reserves, 3esi-Enersight solutions are deployed in every region of the globe, helping customers make better investment decisions across conventional, unconventional, onshore and offshore assets.

www.3esi-Enersight.com

Expertise PartnerUSI provides an innovative solution that combines advanced reservoir simulation techniques and high-

powered cloud-based computing along with traditional DCA methods to improve the accuracy of reservoir forecasting. Our primary mission is to assist reservoir engineers and reserve evaluators in delivering the best EUR estimation backed up by the highest quality of technical analysis with minimal time spent across all unconventional assets.

www.techusi.com

PARTNER WITH US

BECOME A PARTNERAndrew ChristofiPartnerships DirectorHanson WadeT: +1 713 554 8380E: [email protected]

As oil prices increase, now is the time to help operators improve their reserves forecasting and booking.

It’s increasingly important for onshore operators to reliably forecast reserves for internal and external investment purposes.

If you have a solution can help operators improve reserves estimation, then you could be a candidate to be a sponsored partner. We restrict the number of exhibitors and sponsors at the event to ensure a good balance of each stakeholder in the room.

Contact us today to discuss the different packages available.



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VENUE

Full payment is due on registration. Cancellation and Substitution Policy: Cancellations must be received in writing. If the cancellation is received more than 14 days before the conference attendees will receive a full credit to a future conference. Cancellations received 14 days or less (including the four-teenth day) prior to the conference will be liable for the full fee. A substitution from the same organization can be made at any time.

Changes to Conference & Agenda: Hanson Wade reserves the right to postpone or cancel an event, to change the location or alter the advertised speakers. Hanson Wade is not responsible for any loss or damage or costs incurred as a result of substitution, alteration, postponement or cancellation of an event for any reason and including causes beyond its control including without limitation, acts of God, natural disasters, sabotage, accident, trade or industrial disputes, terrorism or hostilities.

Data Protection: The personal information shown and/or provided by you will be held in a database. It may be used to keep you up to date with developments in your industry. Sometimes your details may be obtained or made available to third parties for marketing purposes. If you do not wish your details to be used for this purpose, please write to: Database Manager, Hanson Wade, Suite A, 6 Honduras Street, London EC1Y 0TH

TERMS & CONDITIONS

Code: 9666

Hilton Houston Post Oak By The Galleria2001 Post Oak Blvd.

Houston , TX 77056-4401

10% discount – 3 delegates

15% discount – 4 delegates

20% discount – 5+ delegates

Please note that discounts are only valid when three or more delegates from one company book and pay at the same time.

Contact: [email protected]

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A unique opportunity to hear real-life case studies and other advances in reserves estimation directly from operators

Network with key stakeholders from the majors, large and small independents, government and banking in an informal setting

Register with your colleagues to maximize the practical, actionable intelligence to take back to your company and implement immediately

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