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Fruit from the Dunvegan Delta: A Geological and Completions Overview of Resource Oil and Gas Plays April 28, 2016 Michele Innes, B.Sc., MBA, P.Geol Jeffrey Horton, B.Sc., EIT
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Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

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Page 1: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

Fruit from the Dunvegan Delta:A Geological and Completions Overview of Resource Oil and Gas Plays

April 28, 2016

Michele Innes, B.Sc., MBA, P.Geol

Jeffrey Horton, B.Sc., EIT

Page 2: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

Disclaimer

Disclaimers

The information contained herein has been prepared solely for information purposes and is not intended to be used for trading or investment purposes or as an offer to sell or the solicitation of an offer to buy any security or financial product. The information has been compiled by Canadian Discovery from internal sources as well as prepared from various public and industry sources that we believe are reliable, but no representation or warranty, expressed or implied is made by Canadian Discovery, its affiliates or any other person as to the accuracy or completeness of the information. Such information is provided with the expectation that it will be read as part of a mosaic of analyses and should not be relied upon on a stand-alone basis. Past performance should not be taken as an indication or guarantee of future performance, and Canadian Discovery makes no representation of warranty regarding future performance. The opinions expressed in this report (presentation) reflect the judgment of Canadian Discovery as of the date of this report and are subject to change without notice. This report (presentation) is not an offer to sell or a solicitation of an offer to buy any securities. To the full extent provided by law, neither Canadian Discovery nor any of its affiliates, nor any other person accepts any liability whatsoever for a direct or consequential loss arising from any use of this report (presentation) or the information contained herein. As in all aspects of oil and gas evaluation, there are uncertainties in the interpretation of engineering, reservoir and geological data: therefore, the recipient should rely solely on its own independent investigation, evaluation, and judgment with respect to the information contained herein and any additional information provided by Canadian Discovery or its representatives. All trademarks, service marks, and trade names not owned by Canadian Discovery are the property of their respective owners.

Forward-Looking Statements

This presentation may contain certain forward-looking information as defined in applicable securities laws (referred to herein as “forward-looking statements”). Forward-looking statements involve known and unknown risks, uncertainties and other factors which are beyond Canadian Discovery’s ability to predict or control and may cause Canadian Discovery’s actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements.

Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are made as of the date hereof, or such other date or dates specified in such statements. Canadian Discovery undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.

Page 3: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

OUTLINE

• Introduction

• Activity and Play Development

• Regional Setting

• Completions Trends

• Detailed Areas

Karr (Oil)

Kaybob South (Oil)

Resthaven/Smoky (Gas)

• Wrap Up

Page 4: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

Introduction

Page 5: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

WCSB Resource Plays

Oil Sands

Spirit River

Viking

Cardium

Horn River

Montney

Duvernay

Montney

Cardium

Heavy Oil

Williston Basin

Viking

Bakken/TorquayMidale

~29,000 Resource WellsSince 2005

~400 DunveganResource Wells

Dunvegan

Page 6: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

PRODUCTION METRICSWCSB Resource Plays – Average IPmax

Avg of Median

Dunvegan Oil Dunvegan Gas

Near Top of Class

Powered by IHS Data

Page 7: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

Avg of Median

Powered by IHS Data

PRODUCTION METRICSSelected Resource Plays – Average IPmax

Page 8: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

Year2013201220112010 2014 2015

PRODUCTION METRICSSelected Resource Plays – Average IPmax Trends

Cardium

Bakken

Duvernay

Viking

Montney

SpiritR

Powered by IHS Data

Quarterly Aggregated TrendsDunv Gas

Dunv Oil

Page 9: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

PRODUCTION METRICSSelected Resource Plays – Average $K/BOEPD

Avg of Median

Powered by IHS Data

Page 10: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

PRODUCTION METRICSSelected Resource Plays – Average $K/BOEPD Trends

Cardium

Bakken

Duvernay

Viking

Montney

SpiritR

Year2013201220112010 2014 2015

Powered by IHS Data

Dunv Oil

Dunv Gas

Quarterly Aggregated Trends

Page 11: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

Activity and Play Development

Page 12: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

ACTIVITYDunvegan Resource Oil and Gas

Kaybob S

Simonette

Elmworth

Karr

Resthaven

Powered by IHS Data

~400 DunveganResource Wells

Mixed Fluvial/Shoreline

Prograding Delta

Shallow Shelf

Page 13: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

ACTIVITYDunvegan Oil Production Rate vs Time

Powered by IHS Data

Page 14: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

ACTIVITYDunvegan Resource Gas Production vs Time

Powered by IHS Data

Horizontal “Resource” WellRecovery (84 wells)cum gas: 101 Bcf

Page 15: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

Regional Setting

Page 16: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

REGIONAL SETTINGDunvegan Paleogeography

SE ProgradingDelta

Page 17: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

REGIONAL SETTINGDunvegan Schematic Cross-Section

Page 18: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

REGIONAL SETTINGStudy Areas

Map Generated in AccuMap; Powered by IHS Data

Prograding Deltaic Sands and Shales

Fluvial

Shelf

Page 19: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

REGIONAL SETTINGDunvegan Regional Log Cross-Section

Cross-Section Generated in AccuLogs; Powered by IHS Data

Fluvial Reworked MarineDeltaic Shelf

Page 20: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

REGIONAL SETTINGDunvegan/Doe Creek Deep-Cut Yield Map

Kaybob S

Simonette

Elmworth

Karr

Resthaven

Powered by IHS Data

Oil Prone

Liquids-Rich

Dry Gas

Page 21: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

REGIONAL SETTINGDunvegan Resource IPmax/Section Map

Powered by IHS Data

Page 22: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

REGIONAL SETTINGDunvegan Resource EUR Map

Kaybob S

Simonette

Elmworth

Karr

Resthaven

Data from CDL’s Catalyst

Page 23: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

Completions Trends

Page 24: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

COMPLETIONSAvg Completed Length by Year and Area

Data from CDL’s Well Completions & Frac DB

Increased Completed LengthMore Stages

Page 25: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

COMPLETIONSAvg Fluid Pumped Per Well by Year and Area

Data from CDL’s Well Completions & Frac DB

Increased Fluid Pumped

Page 26: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

COMPLETIONSAvg Proppant Placed per Well by Year and Area

Data from CDL’s Well Completions & Frac DB

Increased Proppant Placed Per WellDecreased Proppant Placed Per Stage

Page 27: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

COMPLETIONSAvg IP90 Oil Per Well by Year and Area

Data from CDL’s Well Completions & Frac DB

Increased Oil Rates

Page 28: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

COMPLETIONSAvg IP90 Gas Per Well by Year and Area

Data from CDL’s Well Completions & Frac DB

Increased (?) Gas Rates

Page 29: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

Detailed Areas

Page 30: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

KARR OILDetailed Map

Page 31: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

KARR OILDetailed Cross-Section

Fluvial Channels on the Prograding Delta Plain

10–15% porosity1–10 mD permeability

Page 32: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

KARR OILDaily Oil vs Time Graph

Cum 6 mmbo

Page 33: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

KARR OIL IPmax vs Time Graph

Variable But Increasing Rates

Page 34: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

KARRKarr Type Curves

BOE Rate

Oil Rate

Data from CDL’s Catalyst

From CDL’s P50 type curve

EUR244 mboe123 mbo

Page 35: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

KARR OILCompletions Trend Graphs

Quartiles by Proppant Tonnage Quartiles by Completed Length

Stimulation Fluid Type Quartiles by Number of Stages

Data from CDL’s Well Completions & Frac DB

Slickwater More Stages

Less (?) Tonnage Longer

Page 36: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

KAYBOB SOUTH OIL Detail Map

Page 37: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

KAYBOB SOUTH OILDetailed Cross-Section

Reworked Marine Shoreface Sands

8–20% porosity0.1–10 mD permeability

Page 38: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

KAYBOB SOUTH OILDaily Oil vs Time Graph

Cum 6 mmbo

Page 39: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

KAYBOB SOUTH OILIPmax vs Time Graph

Variable But Slightly Decreasing Rates

Page 40: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

KAYBOB SOUTH OILType Curves

BOE Rate

Oil Rate

Data from CDL’s Catalyst

EUR136 mboe

71 mbo

From CDL’s P50 type curve

Page 41: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

Kaybob South Oil Completions Trend Graphs

Quartiles by Proppant Tonnage Quartiles by Completed Length

Stimulation Fluid Type Quartiles by Number of Stages

Data from CDL’s Well Completions & Frac DB

Surfactant More Stages

Greater Tonnage Longer

Page 42: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

RESTHAVEN GAS Detail Map

Map Generated in AccuMap; Powered by IHS Data

Page 43: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

RESTHAVEN GAS Detailed Cross-Section

Cross-Section Generated in AccuLogs; Powered by IHS Data

Fluvial Channels

3–10% porosity0.1–1 mD permeability

Page 44: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

RESTHAVEN GAS Daily Gas vs Time Graph

Powered by IHS Data

Horizontal “Resource” WellRecovery (39 wells)cum gas: 79 Bcf

Horizontal “Resource” WellCurrent Production (24 wells)Calendar Daily Gas: 28 mmcf/d

Cum 79 Bcf

Page 45: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

RESTHAVEN GAS IPmax vs Time Graph

Powered by IHS Data

Variable But Increasing (?) Rates

Page 46: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

RESTHAVEN GAS Resthaven/Smoky Gas Type Curves

BOE Rate

Gas Rate

Raw

Gas

Rat

e (

mcf

/d)

BO

E R

ate

(b

oe

pd

)

Data from CDL’s Catalyst

EUR1,100 mboe

4,217 mmcf

From CDL’s P50 type curve

Page 47: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

RESTHAVEN GAS Completions Trend Graphs

Quartiles by Proppant Tonnage Quartiles by Completed Length

Stimulation Fluid Type Quartiles by Number of Stages

Data from CDL’s Well Completions & Frac DB

Slickwater More Stages

Greater Tonnage Longer

Page 48: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

Wrap Up

Page 49: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

WRAP UPIPmax Rates Distribution by Area

Powered by IHS Data

Karr Kaybob South

Resthaven/Smoky

Page 50: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

WRAP UPIPmax Box Plots by Completion Fluid

Resthaven/Smoky (Gas-Condensate)

Karr (Oil)

Data from CDL’s Well Completions Frac DB

Slickwater!

Page 51: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

WRAP UPP50 Type Curves by Area

CDL’s P50 EUR (mboe) Resthaven/Smoky: 1,100

6:110:1

Elmworth: 272Karr: 244Simonette: 248Kaybob South: 136

Page 52: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

WRAP UPFinal Words

• Dunvegan is a prolific oil and liquids-rich gas resource play

• Variations in geology overwhelmed by completions technique

• Other factors affecting production rates

Reservoir heterogeneity

Optimal well spacing and production acceleration

Quality of drill targets in later development stages

• Completions trends

Completed length

Frac stages

Fluid pumped per stage

Slickwater usage = rate increase especially in gas

Page 53: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

WCSB Deepest Penetration by Section

Thank you to other contributors

• Pearl Meyer – ppt maestro

• Paul Patton – graphic designer

• Svetlana Suvorova – graphic designer

• Zenith Phillips – graphic designer

• Candace Keeler – cartographer

• Josh Lee – EURs

• Meridee Fockler – organizer

• Ben McKenzie – data maestro

CDL products used for this presentation:

Powered by IHS Data

Page 54: Fruit from the Dunvegan Delta - Canadian Discovery Ltd. · PDF fileFruit from the Dunvegan Delta: A Geological and Completions Overview of ... Data from CDL’s Well Completions &

Contact Information

For inquiries with respect to this presentation, please contact:

[email protected]

403.269.3644

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