classification: external 05-23-12
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Tweaking the Frac. Russell Rankin | Bakken BU | May 23, 2012. Classification: External 05-23-12. Forward Looking Statements. - PowerPoint PPT PresentationTRANSCRIPT
Classification: External 05-23-12
Tweaking the FracRussell Rankin | Bakken BU | May 23, 2012
Classification: External 05-23-12
This presentation contains certain forward-looking statements that involve risks and uncertainties. In some cases, we use words such as "believe", "intend", "expect", "anticipate", "plan", "target" and similar expressions to identify forward-looking statements.
All statements other than statements of historical fact, including, among others, statements such as those regarding: plans for future development and operation of projects; reserve information; expected exploration and development activities and plans; expected start-up dates for projects and expected production and capacity of projects; the expected impact of USD/NOK exchange rate fluctuations on our financial position; oil, gas and alternative fuel price levels; oil, gas and alternative fuel supply and demand; the completion of acquisitions; and the obtaining of regulatory and contractual approvals are forward-looking statements.
These forward-looking statements reflect current views with respect to future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including levels of industry product supply, demand and pricing; price and availability of alternative fuels; currency exchange rates; political and economic policies of Norway and other oil-producing countries; general economic conditions; political stability and economic growth in relevant areas of the world; global political events and actions, including war, terrorism and sanctions; the timing of bringing new fields on stream; material differences from reserves estimates; inability to find and develop reserves; adverse changes in tax regimes; development and use of new technology; geological or technical difficulties; the actions of competitors; the actions of field partners; the actions of governments; relevant governmental approvals; industrial actions by workers; prolonged adverse weather conditions; natural disasters and other changes to business conditions. Additional information, including information on factors which may affect Statoil's business, is contained in Statoil's 2010 Annual Report on Form 20-F filed with the US Securities and Exchange Commission, which can be found on Statoil's web site at www.statoil.com.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity, performance or achievements will meet these expectations. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Unless we are required by law to update these statements, we will not necessarily update any of these statements after this Capital Markets Day, either to make them conform to actual results or changes in our expectations.
Forward Looking Statements
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Classification: External 05-23-12
Agenda
Evolution of Statoil in the W.B.
Pilot programs
Applying other technologies
Evolution of the frac
HSE
Background
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Statoil - 40 years of growth
MARKET CAPITALISATION OF ABOUT *
USD 88 billionListed on New York and Oslo stock exchanges
* Updated March 23, 2012
EMPLOYEES WORLDWIDE
21,300
COUNTRIES OPERATING
36HEADQUARTERS
Norway
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Classification: External 05-23-125 -
Classification: External 05-23-12
Marcellus – Dry Gas
• Joint development with Chesapeake since 2008
• 665,000 net acres
• 24 Chesapeake operated rigs
• Resource potential: 2.5-3.0 billion boe
Eagle Ford – Wet Gas
• Joint development with Talisman since 2010
• ~82,000 net acres across
• 8 Talisman operated rigs
• Resource potential: ~640 million boe
Bakken - Oil
• Statoil acquisition of Brigham, Dec 2011
• ~375,000 net acres across
• 17 operated rigs
• Resource potential: ~300-500 million boe
NORTH AMERICA
Statoil’s Onshore Portfolio
Statoil’s Onshore Portfolio Driving Growth
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Classification: External 05-23-12
• Objective is zero harm to areas where we operate
• Statoil expects its operators and suppliers to follow relevant regulations and best practices
• Actively manage environmental risks and employ advanced technology to mitigate impact
• “Good Neighbor”
STATOIL IS RECOGNIZED FOR
HSE & Integrity Focus#1 ranked in sustainability amongst O&G companies in 2011
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ENGINEERING EVOLVES OVER TIME
Evolution of the Frac
1947 – Stanolind Oil, Hugoton field, Kansas
* Photo credit: JPT Online, Hydraulic Fracturing: History of an Enduring Technology
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ENGINEERING EVOLVES OVER TIME
Evolution of the Frac
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2012 – Statoil, Williston Basin, North Dakota
Classification: External 05-23-12
Late 1980’sHorizontal DrillingBicentennial / Elkhorn
2009
2001-2005
2006
Introduction of Fracture Stimulation
1st Long Lateral High Frac Stage Completion
2012 More Fracs/Smaller Frac Intervals
Elm Coulee (MT)
Parshall / Austin / Sanish Swell Packers
2006North Dakota
~EUR(2)
2,700’ Lateral, Upper Bakken Shale, Openhole
152,000 Boe
9,500’ Lateral, Single-Uncontrolled Frac
304,000 Boe
9,500’ Lateral, 20 Frac Stages ~475’/interval
431,000 Boe
9,500’ Lateral, 30-38 Stages ~250’ - 300’/interval
600,000 Boe
5,000’ Lateral, 7 Frac Stages ~715’/interval
354,000 Boe
9,500’ Lateral, Single-Uncontrolled Frac
123,000 Boe
ENGINEERING EVOLVES OVER TIME
Evolution of Completions in the Williston Basin
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Reservoir Contact in Tight Rock is Critical
• Propped fractures touch more rock than multi-lateral wells• It is more effective to touch rock with a fracture than with a drill bit• Simple, single laterals designed for stimulation• With 150 fracs, estimate ~6,000,000 ft2 of contact
5 laterals drilled from one wellhead Propped fractures
*Overhead, map view
Multi-lateral: 15,000 ft of drilled length in 5 laterals
= <24,000 ft² of reservoir contact
Tiny frac, perhaps 20,000 lbs of proppant at 1 lb/sq ft
2 wings * 2 faces * 200 ft * 50 ft
= 40,000 ft² of reservoir contact
L = 200 ft
Half-length
f
h = 50 ft
Classification: External 05-23-12
0
200
400
600
800
1,000
1,200
0 25,000 50,000 75,000 100,000 125,000
Cumulative Oil, Bbls
Ra
te, B
op
d
>10 Stages<10 Stages
• Smaller dataset
• Similar lateral length and close proximity
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Field Results Learned from Short Laterals
Classification: External 05-23-12
Single stage fracs gave low, but remarkably similar production.
3
0
100
200
300
400
500
600
700
Rat
e, B
op
d
Normalized to Date of Peak Rate
Well A Well B Well C Well D
Corroborates Vertical Well Control Indicating Consistent Reservoir Attributes Across ~19 Miles in Study Area A
Single stage well IPs ~150 to 300 Bopd
BCD
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SETTING A BASELINE FOR OLD TECHNOLOGY
Field Results
Corroborates vertical well control indicating consistent reservoir attributes across ~19 miles in Study Area A
A
BCD
Classification: External 05-23-12
Operator’s first 20-stage completion:
IP: 1,200 BOPD
BCD
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COMPLETING A WELL WITH SWELL PACKERS & 20 STAGES
Field Results
0
500
1,000
1,500
0 25,000 50,000 75,000 100,000 125,000
Cumulative Oil, Bbls
Ra
te,
Bo
pd
Well A Well B Well C Well D Well E
Well E: 20-stage completion
4x - 9x IP
A
CD
E B
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APPLYING RESULTS FROM SHORT LATERALS
Increased Stages in Long Laterals
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
0 25,000 50,000 75,000 100,000 125,000 150,000 175,000
Cumulative Oil, Bbls
Ra
te,
Bo
pd
29-38 Stages
26-28 Stages
23-24 Stages
18-20 Stages
10-12 Stages
7-9 Stages
Single Stage
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Williams
Mountrail
McKenzie
Missouri River
Mo
nta
na
No
rth
Dak
ota
Richland
Roosevelt
Bakken Density Pilot Bakken / Three Forks Density Pilot
Increased Proppant HiWay Frac Multi-port Frac Sleeves
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Pilots
Classification: External 05-23-12
* Downtime removed
Hi-Way Frac Study
A
B
C
DHi-way fracPlug & perf frac
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A B
C
D
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New technology frac sleevesPlug & perf frac
* Downtime removed
New Technology Frac Sleeves Study
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350 Lbs/ft of lateral250 Lbs/ft of lateral
* Downtime removed
Increased Proppant Volume Study
A
B
C
D
F
E
G
H
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A
B C D
F
E
GH
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Microseismic Preliminary Results• 90% of the microseismic events occur within ~330’ of the lateral for both wells
• Nearly twice as many microseismic events were recorded in Well B (increased proppant) vs. Well A
0
50
100
150
200
250
300
350
100' 400' 700' 1000'
Nu
mb
er o
f E
ven
ts
Distance to Lateral
Well A
Well B
Surface location
Well A
250#s per ft
398Events
BHL
Well B
350#s per ft
762Events
BHL
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• Smart pad development
• Fluids management
• Integrated operations
• Gas lift
• Using natural gas as a fuel
• Infrastructure efforts
UNLOCKING VALUE BY APPLYING TECHNOLOGY
Above & Beyond Tweaking the Frac
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Classification: External 05-23-12
Statoil
Russell RankinBakken Business UnitE-mail address: [email protected]
www.statoil.com
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