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While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Table of Contents
page 1 Introduction
1 Objective
1 Well Information Provided
2 Methodology
3 Summer 2015 Costs
4 Well Summary Table
5 PSAC Area Map
6 Drilling Cost Directory
7 Completion Cost Directory
9 BC1 & BC2 British Columbia
64 AB1 Foothills
86 AB2 Foothills Front
124 AB3 Southeastern Alberta
151 AB4 East Central Alberta
176 AB5 Central Alberta
208 AB6 Northeastern Alberta
221 AB7 Northwestern Alberta
253 SK1 Central Saskatchewan
281 SK2 Southwestern Saskatchewan
306 SK3 Eastern Saskatchewan
325 MB Manitoba
Well cost data and consulting by N.L. Fisher Supervision & Engineering Ltd.
Schematics by Weatherford Completion Systems
SAMPLE
1PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
The semi-annual PSAC Well Cost Study has been produced by the Petroleum Services Association of Canada (PSAC) since
1981. N.L. Fisher Supervision & Engineering Ltd. is the official supplier of all well drilling and completion data estimates
for the Study. PSAC would also like to acknowledge Weatherford Completion Systems for providing the downhole
assembly schematics for each well in the Study.
Drilling and completion well costs are being provided in the 2015 Well Cost Study for a list of 51 wells. This selection of
wells is a reflection of current well types along with previously drilled wells which are left in the study for historical
tracking purposes. This accounts for recent operator interests in developmental and exploratory activity, as well as
horizontal, coil tubing, SAGD and natural gas from coal (NGC) drilling activity.
The wells listed in this study reflect wells drilled in western Canada. Each well has been sorted by PSAC area. A summary
table listing all of the “typical wells”, as well as their location, well status, well type and depth is contained on page 4. Some
of the wells are not included in this year’s study due to inactivity in the area. A PSAC area map is provided on page 5.
Objective
The Well Cost Study is a popular tool used by oil and gas company exploration, drilling and completions personnel for
multiple purposes, some of which include:
• Scoping out typical drilling cost estimates and drilling times in new areas
• Benchmarking and comparing budgeted and actual costs
• General planning or forecasting of activity levels
When used in conjunction with the PSAC Canadian Drilling Activity Forecast, the Well Cost Study can help petroleum
service companies determine potential market sizes for drilling and completion products and services, as well as pricing
and activity direction.
Well Information Provided
The following information is supplied for each typical well:
• Well description with drilling and completion assumptions
• Drill and complete AFE
• Detailed drilling estimate
• Detailed completion estimate
• Downhole assembly schematic
Introduction
SAMPLE
2PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Typical Well
Each typical well is named after a known field or major centre in the general vicinity. Well depths, pool names and
approximate locations are also supplied for terms of reference when proposing drilling and completion parameters.
Due to the multiplicity of variables associated with drilling and completion operations, the typical well cost is an
approximation of current prices, based on the experience of N.L. Fisher Supervision & Engineering.
Assumptions
• The estimates were constructed assuming summer drilling operations and includes pricing obtained from
discussions with various service providers.
• Camps were included in remote locations.
Detailed Cost Estimates
Detailed estimates were prepared based on current pricing in the industry and actual experience in the 51 locations.
Terminology has been adjusted in a few instances to more closely describe costs incurred. Discounts in areas of pad
drilling or large shallow gas drilling can vary and should be treated as such.
At the time of writing, prices of various services are fluctuating. Considering that charges vary from supplier to supplier,
the estimates in this document provide the most up-to-date estimate of prices.
AFE Cost Summary Sheet
Each “typical well” AFE Sheet is a summary of the detailed drilling and completion costs provided.
Data Qualifications
Many factors directly impact drilling and completion costs even within a field or typical area, for example, leases
impacted by weather conditions. Costing is therefore at best speculative and should not be taken to represent “actual”
well costs. However, major services such as drilling rigs often set prices for a four-to-five month period. This pricing has
been incorporated into the Study costs.
Factors that may influence well costs may include, but are not limited to:
• Type and size of company or operation
• Company policy
• Company drilling practices
• Economic environment
• Commodity prices
• Developmental or exploratory target
• Oil or gas play
Methodology
• Sweet or sour production
• Surface conditions
• Well location and nearby infrastructure
• Drilling program
• Mud program
• Evaluation program
• Completion methodology (i.e. dual zones)
SAMPLE
3PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Major goods and services influencing the general direction of drilling and completion costs are as follows:
• Construction
• Trucking/rig moving
• Drilling fluids
• Evaluation/logging
• Cement and cementing services
• Casing
• Drill bits
• Wellsite accommodations
• Rentals
• Fuel
• Land, engineering, supervision and administration
• Completion costs
Summer 2015 Costs
• Service rigs
• Road and site preparation
• Trucking
• Cased hole logging and perforating
• Tubing and attachments
• Stimulation
• Pumping equipment
• Wellheads
• Safety services
• Testing
• Rig rates
• Safety programs
For additional information or comments, please contact:
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, the Petroleum Services Association ofCanada (PSAC), N.L. Fisher Supervision & Engineering Ltd. and Weatherford Completion Systems accept no liability for the contents of this Study.
SAMPLE
Tuktoyatuk
Whitehorse
Yellowknife
FortNelson
FortSt. John
Vancouver
Edmonton
Calgary
Lethbridge
Saskatoon
Lloydminster
Winnipeg Thunder Bay
Toronto
Ottawa
Montreal
Quebec Halifax
Fredericton
Charlottetown
St. John's
ReginaSwift
Current
FortMcMurray
RedDeer
Victoria
GrandePrairie
NT
YT
BC2
BC1BC3
AB6
AB4
AB5AB2
AB1
SK1 SK3 MB
AB7
ON QC
NL
NS
NB
PE
NU
AB3 SK2
5PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
PSAC Area Map
BC1 Southern British Columbia
BC2 Northern British Columbia
BC3 Coastal British Columbia
AB1 Foothills
AB2 Foothills Front
AB3 Southeastern Alberta
AB4 East Central Alberta
AB5 Central Alberta
AB6 Northeastern Alberta
AB7 Northwestern Alberta
SK1 Central Saskatchewan
SK2 Southwestern Saskatchewan
SK3 Eastern Saskatchewan
MB Manitoba
ON Ontario
QC Quebec
EC Eastern Canada NB New Brunswick
NS Nova Scotia
PE Prince Edward Island
NL Newfoundland & Labrador
NC Northern Canada YT Yukon
NT Northwest Territories
NU Nunavut
SAMPLE
6PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Prod. Csg. & Accessories Production Casing (Casing & Cementing)Attachments and Accessories (Casing & Cementing)Tongs (Casing & Cementing)
Cementing - Production Cement and Service (Casing & Cementing)Tubing & Accessories TubingWellhead Equipment WellheadRemedial Cementing Remedial CementingService Rig Service Rig
BoilerCSACrew Transportation
Logging (cement bond log) Cased Hole LogsSlickline/Wireline (Other) WirelinePerforating Perforating and LoggingStimulation (Frac or Acid) StimulationTesting / Pressure Surveys Production TestGas / Liquid Analysis Fluids AnalysisTransportation Hauling and TruckingEquipment Rentals Surface Equipment Rentals
Downhole Equipment RentalsDownhole Tools (intangibles) Packers, Plugs, RetainersCompletion Fluids Water and Trucking
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Casing is perforated and packer/ tail pipe assembly is set on wireline . Seal assembly is run on final completion string
NOTES
This document is confidential correspondence between Weatherford and the Customer named in this document. It may not be reproduced in any formnor its contents disclosed to anyone other than employees of Weatherford and/or the named Customer.
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SAMPLE
68PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Predrill and PlanningLease Acquisition 1.6 Hectares $2,600 Surface Lease Entry $2,600 $2,600License Fees 1 Each $500 Per Well Fee $500 $500Surveying 3 Days $4,000 Site and Plan $12,000 $12,000Planning and Programs 200 Hours $180 Engineering and Programming $36,000 $36,000
$51,100 $51,100ConstructionRoad 5 Kms $5,000 Engineering and Construction $25,000 $25,000Location 18 Days $10,000 Engineering and Construction $180,000 $180,000Lease Maintenance 180 Days $500 Labour and Equipment $90,000 $90,000Lease Cleanup 0 Days $10,000 Labour, Materials and Equipment $0 $0Bridges / Culverts / Cattle Guards 6 Each $5,000 Labour and Equipment $30,000 $30,000Standby Equipment 0 Days $550 Grader, Hoe, Cat $0 $0Supervision 18 Days $1,000 Daily Rate incl. Sub and Exp $18,000 $18,000Lease Reclamation 18 Days $8,000 Labour and Equipment $144,000 $144,000Lease Reclamation Supervision 18 Days $1,000 Daily Rate incl. Sub and Exp $18,000 $18,000
$505,000 $505,000Rig ContractRig Move 50 Loads $3,600 $300/hr and 8 hr/100km/load $180,000 $180,000Rig Permit 4 Days $500 As required by area $2,000 $2,000Demob / Inter-well Move 40 Loads $3,600 $300/hr and 8 hr/100km/load $144,000 $144,000Rig-in Set Up Labour 8 Each $14,800 Move in, set up $118,400 $118,400Daywork 180 Days $18,500 Rig rate from Spud to RR w/ drillpipe $3,330,000 $3,330,000Loader 180 Days $500 Rig loader $90,000 $90,000Additional Labour Costs 180 Days $250 Additional crew as required $45,000 $45,000Camp 188 Crew Days $7,000 Camp / hotel including meals etc. $1,316,000 $1,316,000CSA 188 Days $650 Crew Subsistence Allowance $122,200 $122,200Crew Transportation 188 Each $350 Crew Truck, Mileage, Bus or Aircraft $65,800 $65,800Boiler 0 Days $1,920 Basic rate fuel out $0 $0Fuel 188 Days $3,000 Fuel $564,000 $564,000Fuel Storage 0 Days $0 Additional fuel storage $0 $0Standby 0 Days $14,800 Testing, logging, waiting on orders $0 $0Water and Trucking 188 Days $850 Water access and supply $159,800 $159,800
$6,137,200 $6,137,200RentalsWellsite Trailer(s) 4 188 Days $185 Well site Unit rental $139,120 $139,120Sump Pump(s) 1 188 Days $125 Centrifugal pump rental $23,500 $23,500Surface Equipment 1 188 Days $1,800 Garbage bin, Pumps, Pason, Invert acc, etc $338,400 $338,400Solids Control Equipment 2 188 Days $1,375 Cenrtiguge(s), BOS tank etc $517,000 $517,000High Speed Mixer(s) 1 188 Days $675 High speed mixer, pill tank, lines $126,900 $126,900Tank Rental 1 188 Days $205 Floc, Flare, 400 bbl tank etc $38,540 $38,540Downhole Tool Rentals 1 188 Days $3,150 Perf Motors, subs, jars, stabilizers etc $592,200 $592,200Drill string 80 188 Days $10 HWDP, Small inch drillpipe, etc. $150,400 $150,400
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
Service and SuppliesBits - Surface Hole 2 Each $5,000 Bit(s) required to drill surface hole $10,000 $10,000Bits - Intermediate Hole 7 Each $10,000 Bit(s) required to drill intermediate hole $70,000 $70,000Bits - Main Hole 5 Each $10,000 Bit(s) required to drill main hole $50,000 $50,000Bits - Openhole 0 Each $10,000 N/A $0 $0Surface Mud and Chemicals 250 Cubic metre $50 Cost per cubic metre water out $12,500 $12,500Main Mud and Chemicals 500 Cubic metre $475 Cost per cubic metre Invert out $237,500 $237,500Mud Logging 125 Days $775 Daily rate - crew plus costs $96,875 $96,875Drill Stem Tests 2 Each $10,000 Unit, crew, analysis, samples $20,000 $20,000Cores Cut 1 Each $15,000 Equipment, crew, analysis $15,000 $15,000Electric Logging 3900 m MD $9 Cost per m logged all in $33,150 $33,150Environmental Services 0 5 Each $750 Spray field sampling, reporting, etc $0 $0Drilling Waste Management 1 10 Each $1,500 Cost per fluid samples and analysis $15,000 $15,000Safety 188 Days $900 Daily Rate Crew and Equipment $169,200 $169,200Directional Drilling Services 100 Days $9,500 Daily rate all in crews and tools $950,000 $950,000Trucking 188 Days $1,500 Equipment and tool trucking $282,000 $282,000Fluid and/or Cuttings Hauling 1 165 Days $1,600 Fluid hauling other than water $264,000 $264,000Fluid and/or Cuttings Disposal 1 500 Cubic metre $50 Drilling fluid hauled for disposal $25,000 $25,000Vacuum Truck (LSWD) 0 165 Days $1,400 Cost per day for Vac Truck $0 $0Welding 3 Each $2,500 Cost per well $7,500 $7,500Inspection and Repair 3 Each $4,200 Cost per well $12,600 $12,600
$2,270,325 $2,270,325Casing and CementingSurface Casing 600 Metres $205 339.7 mm 90.78 kg/m J-55 $123,000 $123,000Attachments and Accessories 60 Each $25 Scratchers, centralisers, float equip $1,500 $1,500Tongs 600 Metres $8 Crew and Equipment $4,800 $4,800Cement and Service 600 Metres $30 Pumping, tonnage, additives $18,000 $18,000
Intermediate Casing 3340 Metres $250 244.5 mm 79.6 kg/m L-80 $835,000 $835,000Attachments and Accessories 334 Each $25 Scratchers, centralisers, float equip $8,350 $8,350Tongs 3340 Metres $5 Crew and Equipment $16,700 $16,700Cement and Service 3340 Metres $22 Pumping, tonnage, additives $73,480 $73,480
Production Casing 4500 Metres $90 177.8 mm 43.20 kg/m L-80 $0 $405,000Attachments and Accessories 450 Each $25 Scratchers, centralisers, float equip $0 $11,250Tongs 4500 Metres $6 Crew and Equipment $0 $27,000Cement and Service 4500 Metres $25 Pumping, tonnage, additives $0 $112,500
$0 $0Liner 0 Metres $0 N/A $0 $0Attachments and Accessories 0 Each $0 Scratchers, centralisers, float equip $0 $0Tongs 0 Metres $0 Crew and Equipment $0 $0Cement and Service 0 Metres $0 Pumping, tonnage, additives $0 $0Abandonment Cement 2 Plugs $6,300 Pumping, tonnage, additives $12,600 $0Cement Plug Logging 2 Plugs $5,250 Run plug logs, all in $10,500 $0
$1,103,930 $1,636,580Supervision and AdministrationDrilling Supervisor 1 188 Days $1,500 Drilling consultant rate all in $282,000 $282,000Well Site Geologist 1 125 Days $1,200 Geological consultant rate all in $150,000 $150,000Geological Rentals 125 Days $210 Gas detector etc $26,250 $26,250Insurance 188 Each $100 Drilling insurance $18,800 $18,800Communications 188 Days $100 $18,800 $18,800
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. andWeatherford Completion Systems accept no liability for the contents of this Study.
No. of Cost Drilled and Operations, Services or Equipment # Units Unit Type Per Unit Comments and Detail Completed
Completion and Testing
Wellhead 1 Each $30,000 Type and accessories $30,000
Tubing 4300 Each $32 88.9 mm 13.85 kg/m, J-55 SML $137,600