international csg development & economics
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Phasis presentation in Brisbane, Queensland, AUSTRALIA, May 2007.TRANSCRIPT
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
International CSG Development
& EconomicsBettina Pierre-Gilles, Principal, Phasis Consulting
5th Annual CSM - CMM Summit, Brisbane , May 2-4 2007
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International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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www.phasis.biz» Agenda
{CBM = CSG = CBG = CSM = CMM}
“No matter how you call it, it’s still unconventional!”
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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Introduction2006 CBM Drilling in CanadaDrilling Practices per formationOverview of CBM Development GloballyCBM EconomicsDiscussions / Conclusion
Agenda
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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Colors Denote Age of Coal
Source: Canadian Society for Unconventional Gas (CSUG)
» Overview of North American ActivitiesAgenda
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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www.phasis.bizOverview of North American Activities
0
10000
20000
30000
40000
Cum
ulat
ive
Rigs
0
100
200
300
400
500
600
700
800
Num
ber o
f Rig
s
Jan 1999 Jan 2000 Jan 2001 Jan 2002 Jan 2003 Jan 2004 Jan 2005 Jan 2006 Jan 2007Date
Cumulative Number of Rigs
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Canada Rigs: 1999−2007Oil & Gas
Canadian Rigs 1999 to 2007
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0
20000
40000
60000
80000
100000
120000
Wel
ls
0
50
100
150
200
250
300
350
400
Mcf
/wel
l/da
y
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Year
Wells
Adapted from CAPP, 2005© 2005 Phasis Consulting
Natural Gas − Overall Production History
Overview of North American Activities
Canadian Natural Gas Production 1996 to 2004
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Wel
ls
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Adapted from CAPP, 2005© 2005 Phasis Consulting
Overall Well History
Oil Gas Dry/Other
Overview of North American Activities
Canadian Wells Drilled by Type 1991 to 2005
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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0
2
4
6
8
10
Tcf
1990 1995 2000 2005 2010 2015 2020 2025
Year
Associated / Dissolved Alaska
Nonassociated Offshore Nonassociated Onshore on Conventional
Onshore on Conventional
Adapted from: EIA’s 2004 Annual Energy Outlook© 2005 Phasis Consulting
US Dry Natural Gas Production1990−2025
Overview of North American Activities
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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www.phasis.biz» Canadian Coalbed Methane Potential
British Columbia Alberta (Alberta Geological Survey)
2.7 BCf/d1.8 BCf/d
d/fCM
M004
f
h
g
de
abc
Tsable River
Telkwa W & PC
Tulameen
GrahamIsland
Coalfields
Tuya RiverCoalfield~ 66 Bcf
Coal RiverCoalfield
~6 Bcf
East KootenayCoalfields
~19 Tcf(33 Tcf incl
mined areas)
Suquash Coalfieldup to 45 Bcf Comox Coalfield
up to 1 Tcf
Nanaimo Coalfieldup to 300 Bcf
Bowron RiverCoalfield
up to 50 Bcf
Klappan andGroundhogCoalfields
up to 8.1 Tcf
TelkwaCoalfield
up to 130 Bcf
Peace RiverCoalfield
60-200 Tcf
Hat CreekCoalfield
up to 0.5 Tcf MerrittCoalfield
TulameenCoalfield~42 Bcf
PrincetonCoalfield
80 Bcf
Prince Rupert
FortSt. John
Fort Nelson
Victoria
Vancouver
Sedimentary Basins
Gas Pipeline
Oil Pipeline
Alliance Pipeline
Anthracite
Coking
High Volatile Bituminous
Sub-bituminous to Lignite
Area Underlain by Coal(above 2000 m depth)
abcdef
gh
Fording River
Greenhills
Line Creek
Elkview
Coal Mountain
Bullmoose
Quinsam
Willow Creek
Wolverine+Perry Creek (W&PC)TulameenTsable RiverTelkwa
Mines
Properties
MMCf/d
BCf/d
Million Cubic Feet per day
Billion Cubic Feet per day
BcfTcf
= Billion Standard Cubic Feet= Trillion Standard Cubic Feet
Estimated Coalbed Methane Gas in Place(to maximum 2000 m depth)
Basin Outlines : Geological Survey of Canada, unpublished: P. Hannigan, P.J. Lee, K Osadetz et al., 1993-1998.
Coalfields and Coalbed Methane Potentialin British Columbia
Overview of North American Activities
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www.phasis.bizCanadian Coalbed Methane Potential
Key Indicators:
Alberta Horseshoe Canyon Mannville
Producing Wells 10,723 9,762 (91%) 822 (7.7%)
Water Variable Dry Saline
Resources Recovery -
60 - 118 Tcf 26% - 39%
239 Tcf 21 - 38%
Drilling 94.1% Vertical5.9% Horizontal/Directional
96.3% Vertical3.7% Horizontal/Directional
48.4% Vertical51.6% Horizontal/Directional
Median Daily Production Variable 94 Mcf/d 83 Mcf/d
Top Three Operators Encana, Quicksilver, Apache Encana, Quicksilver, Apache Trident/Nexen, Encana, Apache
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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www.phasis.bizCanadian Coalbed Methane Potential
Key Indicators:
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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0
1000
2000
3000
4000
5000
6000
Wel
ls
0
20
40
60
80
100
Mcf
/d
0 12 24 36 48
Months on Production
Median Production Wells
Regression Line 95% Prediction Interval
© 2007 Phasis Consulting
Production Profile by Time on Production
0
1000
2000
3000
4000
5000
6000
Wel
ls
0
50
100
150
200
250
300
Mcf
/d
2000 2001 2002 2003 2004 2005 2006
Date
Active wells
© 2007 Phasis Consulting
Median Daily Production
Canadian Coalbed Methane Potential
Canadian CBM Production Profile
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www.phasis.bizCanadian Coalbed Methane Potential
Costs ($CAD)* Horseshoe Canyon Mannville (Horizontal)
Capital Costs (x1,000)
Drilling and Completion (including facilities) $475 $1.2 - 2.4 M
Operating Costs
Fixed (per well/m) $675 $5,000
Variable $0.20/Mcf $0.43/Mcf
Water Disposal $0 Varies
Canadian CBM Economics:
* 1 CAD ≈ 1.08 AUD
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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www.phasis.biz» US Coalbed Methane PotentialCanadian Coalbed Methane Potential
Basin (State) Field Name Type of Resource Total Basin Gas Production
San Juan (New Mexico, Colorado) San Juan Basin Gas Area CBM/Tight Gas Sands 1.4 Tcf
Ft. Worth (Texas) Newark East (Barnett) Gas Shale 496.5 Bcf
Powder River (Wyoming) Wyodak/Big George Fairway CBM 336.1 Bcf
GGRB (Wyoming) Jonah Tight Gas Sands 273.1 Bcf
Denver (Colorado) Wattenberg/DJ Basin Tight Gas Sands 179.1 Bcf
East Texas (Texas) Carthage Tight Gas Sands 214.1 Bcf
Michigan (Michigan) Antrim Gas Shale 164.9 Bcf
Piceance (Colorado) S.Piceance Basin Gas Area Tight Gas Sands 5.9 Bcf
Gulf Coast (Texas) Giddings Tight Gas Sands/Chalk -
Major US Unconventional Gas Fields
Adapted from EIA 2005 Annual Reserves Report
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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www.phasis.bizUS Coalbed Methane Potential
0 5,000 10,000 15,000 20,000
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
Adapted from EIA© 2006 Phasis Consulting
CBM Reserves vs. Production
Reserves ProductionBcf
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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www.phasis.bizUS Coalbed Methane Potential
Advanced Resources(2004)
National Petroleum Council (2003)
US Geological Survey (1995-2003) Mean Estimate
Tight Gas Sands 350 Tcf 175 Tcf 186 Tcf 204 Tcf
Coalbed Methane 84 Tcf 58 Tcf 68 Tcf 70 Tcf
Gas Shales 77 Tcf 35 Tcf 71 Tcf 61 Tcf
Total 511 Tcf 268 Tcf 325 Tcf 368 Tcf
US Recoverable Unconventional Gas
Adapted from: Advance Resources International Inc. JAF02442
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Costs ($USD)* San Juan Uinta Powder River Raton
Drilling & Completion $275,000 $375,000 $75,000 $330,000
Average F&D costs in the US basins: $1.05/Mcf
US CBM Economics:
* 1 USD ≈ 1.26 AUD
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www.phasis.biz» International Coalbed Methane PotentialUS Coalbed Methane Potential
Countries with active CBM development:Australia
ChinaIndia
Others worth mentioning:
Southeast Asia Africa
Some European countries
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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China:
World’s largest producer (and consumer) of coal.
CBM Resource estimates: 36.8 tcm (found at depth of less than 2,000 m).
CBM can be extracted from 14 basins with average per basin reserves of 500 bcm.
7 CBM basins have reserves above 1,000 bcm: Ordos, Quinshui, East Yunnan, West Ginzhu, Jungar, Tuha and Erlianhote Basins.
International Coalbed Methane Potential
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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India:
3rd largest coal producer in the world.
CBM Resource estimates: 13.4 Tcf.
NELP-VI results: ONGC awarded 25 blocks (operator of 24), Reliance awarded 7 deepwater blocks, and 1 offshore block was awarded to Cairn Energy.
NELP-VII: to be announced April 2007. Expectations: 100 blocks to be offered.
International Coalbed Methane Potential
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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Other Countries Worth Mentioning: Southeast Asia:
Indonesia: Resource potentials: ~400 Tcf
Southern Sumatra will be the focus for ‘07
Africa:
Testing currently in progress to evaluate CBM potentials
Ukraine:
Actively promoting development of its CBM potentials
Donetsk area CBM pilot projects may be underway in ‘07
International Coalbed Methane Potential
International CSG Development & Economics | May 2007Bettina Pierre-Gilles
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Unconventional gas resources are now a necessary and permanent addition to the energy supply mix.
In the US, unconventional gas accounts for over 10% of natural gas production.
In Canada, more and more companies are looking at developing unconventional resources, as are many international countries.
Unconventional gas, whether CBM (CSG), shale gas or tight gas (sands) is here to stay. Whether in the US, Canada, Australia or any other basins, an understanding of the coal formations’ characteristics and the use/implementation of the proper drilling and completions technologies are necessary for successful and continued development, as well as to keep the projects economic.
International Coalbed Methane Potential» Conclusion
Short Title of Presentation. To edit: A-Master | Month YearBettina Pierre-Gilles
Thank you!
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