Planning a Chemical Flood EOR Asia 2012 MB Dupont

2012 EOR AsiaKuala Lumpur, Malaysia

Mike Dupont P.Eng, EOR Implementation Manager

December 6th, 2012

Planning and Development of a Chemical

Flood in a Heavy Oil Pool - Coleville

Saskatchewan, Canada

2

Presentation Outline

• Introduction

• Industry Chemical Flooding Activity

• Discussion of Workflow & Screening

• Coleville Main Reservoir Parameters

• Geologic Setting

• Core Flood Results

• Simulation

• Pilot Review

• Results, Monitoring

• Commercial Project

3

Introduction

• Penn West Exploration has significant Heavy Oil

assets with over 1 billion bbls OOIP in

Saskatchewan, Canada

• Penn West is currently piloting an ASP flood in

Coleville, Saskatchewan

• This is the most viscous oil to ever be ASP flooded

with in-situ viscosities in the 700 - 2000 cp range

4

Coleville Main Pushing Limits of ASP Application

Successful Field Applications of Chemcial Flood

0

5

10

15

20

25

30

35

40

0 200 400 600 800 1000 1200 1400 1600 1800 2000

Oil Viscosity, cp

Oil

Gra

vit

y,

oA

PI

Polymer Alkali-Polymer Alkali-Surfactant-Polymer Polymer (East Bodo)

POLYMER FLOOD

East Bodo

AS

P F

LO

OD

AP flood

Thompson

Creek, WY

Coleville Main

Pelican

Chemical Flood Projects in Canada Industry Active and Proposed

Penn West land position

Penn West has the most

leverage to large scale oil

development using

horizontal multi-stage

fracturing technology

in North America

Cardium Viking

Spearfish

Carbonates

Penn West

Operated Pilot

Coleville / Hoosier

6

Workflow Coleville Project

1. Screening – Reservoir characteristics and performance

2. Preliminary modeling /forecasts and economics

3. Laboratory determination of flood performance

4. Simulation – Core and up-scaled predictions

5. Facilities Design

6. Procurement

7. Installation

8. Pilot

9. Lab and Simulation – Ongoing

10. Decision – Commercial or not?

Complete cycle to Commercial can take up to 5 years

7

Chemical FloodingPenn West Primary Screening Criteria

Key AttributePenn West

Acceptable Range

Coleville

MainComment

In-situ Viscosity (cp) 5-2000 700-2000 There must be an improvement in mobility ratio

Water Quality (TDS) 0-20000 9700Directly affects cost of chemical and water treatment.

Fe and H2S are also be considered

Target Formation Sandstone Sandstone Based on current worldwide experience

Permeability (md) >200 500Specific to Heavy Oil –

Formation must tolerate high MW polymers

Waterflood Performance Good to Excellent GoodFlood must show good conformance and

recoveries near theoretical for a water flood

Clay Content < 5% 0-5 %Low clay content and absence of

anhydrite prime considerations

Anhydrite Content 0 0

Underlying water/active

AquiferNone None

Pool Size (bbls) >10MM 475MM Larger fields provide economies of scale

8

Coleville Main Reservoir Parameters and Performance

Pool Area 9815 acres (39.6 km2)

Lithology Sandstone

Average Net Pay 36' (12 m)

Original Oil in Place, OOIP 475MM bbls (75.5 MM m3)

Cumulative Oil Produced 65.5 MM bbls (10.4 MM m3)

Current Oil Production Rate 1800 bpd (286 m3opd)

Current Water Cut 96%

Recovery Factor to Date 13.80%

Initial Pressure 993 psi (6850 kPa)

Current Pressure 725 psi (5000 kPa)

Bubble Point pressure, Pb 993 psi (6850 kPa)

Oil Viscosity at Pb 700

Oil API Gravity 13

Formation Volume Factor, Bo 1.07

Initial Solution GOR, Rs 22

Reservoir Temperature 84 F (29 C)

Average Water Saturation, Sw 24%

Average Porosity 24%

Depth 2667' (813 m)

Well Spacing 20 acre (300 m)

Current # of Wells

Producing/Injecting190/109

Coleville Main production

9

• Production

Initiated in 1951

• Water-flood

initiated in 1959

• Penn West

acquired 2004

10

Geology Regional Bakken Deposition

• The intervening areas between

the sand accumulations are filled

with shale and silt

• An erosional low truncates the

Bakken and is filled with

Mannville sediments

• The Bakken sand was deposited

in the form of offshore bars in a

near-shore, shallow marine

environment

• The sands were deposited in a

NE-SW trend and can attain a

thickness greater than 15 meters Coleville Main Field

11

Depositional Setting

Deposition of offshore mudstone and lower, middle and upper shoreface quartz sandstone lithofacies

of the Middle Bakken Member in a coastal marine environment

(From Smith and Bustin. 1996)

12

Coleville Main Type Well

13

Fluids Analysis Core Floods

14

Coleville Main Relative Permeability

• High Residual

Oil Saturation

15

Typical Phase Behavior Testing

There is approximately a 10 fold

reduction in IFT when Surfactant

is combined with Alkali.

16

Typical Linear Coreflood

78% OOIP Recovery

17

Radial Flood ASP

18

Coleville Main PoolCore Analysis

OOIP Recoveries

Area DateCoreflood

TypeWaterflood Polymer AP SP ASP Total

Coleville Main April 2010 Linear 50.3% 20.9% 6.8% 78.0%

Coleville Main April 2010 Radial 34.5% 31.9% 66.4%




Surtek Coreflood Results

19

Coleville Main Generic Simulations

Pattern Spacing (m)Injection

Well Type

Production

Well Type

Producing

Layers

Incremental Recoveries (%)Notes

Waterflood Polymer ASP

Line Drive 300 Vertical Vertical All 22.7 4.5 14

Line Drive 150 Horizontal Vertical Lower 6.4 11

Line Drive 150 Horizontal Vertical Upper/Lower 6.4 17

Inverted 5 Spot 150 Vertical Vertical All 5 12.5Injectors converted

to producers

Inverted 5 Spot 150 Vertical Vertical All 7 17.6Infill wells are

producers only

Simulations by Kade Technologies

Calgary, Alberta

20

Coleville Main ASP PilotSummary

• Number of injection wells in pilot: 4 (Vertical Line Drive)

• Injection rates per well: 440 bpd (70 m3/d)

• Project start: March 28, 2011

• Pore volumes injected to date

• 11.0% (to Hz Wells ~150 m)

• 5.0% (to Vertical Wells ~300 m)

• Lab coreflood response: 15 to 22% range

• Average well-head injection pressure: 798 PSI (6200 kPa)

• Chemical Additives: 0.75% Na2CO3, 0.1% surfactant, 1500 ppm HPAM

21

Coleville Main ASP Pilot

22

Coleville Main ASP Pilot Process Flow

0

23

Coleville Main ASP Pilot

24

Coleville Main PilotReservoir Simulation Results

• Polymer

Response time

< 1 year

assuming an

injection rate of

100 m3/d

25

Coleville Main PoolPilot Results

• Pilot is still in early phases

• 6 to 12 months until pilot enters sufficient pore volume to see strong results

26

Coleville Main ASP PilotBreakthrough Indicators - Water Analyses

Water Analyses

• Decreasing TDS

• Decreasing Cl

• Increasing pH

• Increasing CO3/HCO3 ratio

• Presence (concentration)

of polymer

27

Coleville Main PoolPilot Results: Section 19-31-23W3M

ASP Discussion

• Injection initiated March 2011

• Good flood conformance to date

• Injected 11% PV with no fresh

source water breakthrough

• Offsetting wells have seen Oil

cut increases from 10-17.6%Daily Oil (bbl)

Daily Water Injection (bbl)

WH Injection Press (psig)

Daily Water Cut (%)

ASP Injection Start

Oil Cut Increase

Shows Response

28

Coleville Main ASP PilotResponse Summary

29

Coleville Main PoolPilot Results

• Early pilot results to date, show oil cut increasing in some wells

30

Coleville Main ASP Injector Performance

Indication of Injection

Pressure Sensitivity

to the Initiation of

Offsetting Horizontal

Well production

31

Coleville MainCommercial Chemical Flood Strategy

• ASP flood to target residual oil Estimated 45% residual oil after waterflood

• Drill infill wells to increase recovery factor Assumed 3% average but could be up to 10%

• Increase current injection rates by 4x per well

• Rebuild and expand infrastructure New facility at Coleville Main, replace production lines,

cleanout and repair all existing injectors

• Access available source water Bakken or Mannville most likely zones

32

Proposed Coleville Main Phase 1

Pilot Area

Project Area

Coleville South

• Phase 1 Area – Selection Criteria

• Main battery located at 10 - 30

• Favorable Geology

• Relatively low recovery factor

• Good surface access

• Offset to pilot

• Plan Summary

• 10 acre spacing Inverted 5 spot

• 45 patterns

• Conversion of existing producers to injection

• 98 MM bbls OOIP in Phase 1

• Current EUR - 15 % OOIP

R23W3

T31

33

Coleville Main Pool Development Plan Overview

Each phase will consist of the following

• An infill program creating a 10 acre inverted 5 spot pattern

• All new wells will be producers

• Existing producers will be converted to injectors

• Expecting response time 6 to 8 months

• Chemical injection period - 5 to 6 years

34

Questions?

Stock Exchange

Toronto: PWT

New York: PWE

Legal Counsel

Burnet, Duckworth & Palmer LLP

Independent Reserves Evaluators

GLJ Petroleum Consultants Ltd.

Sproule Associates Limited

Transfer Agent

CIBC Mellon Trust Company

c/o Canadian Stock Transfer Company

Toll Free: 1-800-387-0825

Email: [email protected]

Website: www.canstockta.com

Investor Relations

Clayton Paradis, Manager, Investor Relations

Telephone: (403) 539-6343


Toll Free: 1-888-770-2633


Website: www.pennwest.com

Penn West Exploration

Suite 200, Penn West Plaza

207 – 9th Avenue SW

Calgary, Alberta, Canada T2P 1K3

Telephone: (403) 777-2707

Toll Free: 1-866-693-2707

Facsimile: (403) 777-2699

Website: www.pennwest.com

Documents

Planning a Chemical Flood EOR Asia 2012 MB Dupont