1 / 26

The Horizontal Mississippi Lime It’s Real and It’s Spectacular

The Horizontal Mississippi Lime It’s Real and It’s Spectacular. The Mighty Mississippi. Longhurst 3H-34. Ran Tubing, Flowing up Annulus. Merits of the Horizontal Mississippian. Observations. Momentum increased dramatically in last 18 months

sancha
Download Presentation

The Horizontal Mississippi Lime It’s Real and It’s Spectacular

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Horizontal Mississippi Lime It’s Real and It’s Spectacular

  2. The Mighty Mississippi Longhurst 3H-34 Ran Tubing, Flowing up Annulus

  3. Merits of the Horizontal Mississippian Observations • Momentum increased dramatically in last 18 months • SandRidge continues to lead the way (47% of 2012 Capex of $1.8 billion) • Liquid-weighted (~63%) with NGL component • Conventional carbonate reservoir: 3,000 – 6,000 ft vertical depths • Low well costs (~$3.5 million per location) • Low and improving drill times (currently ~24 days) • Low pressure rigs, fracs and completions (equipment availability) • Infrastructure already in place • Repeatability • IRRs ~100%

  4. Mississippian vs. Shales “Tudor, Pickering, Holt & Co. Securities Inc. analysts observed: ‘Horizontal moves to conventional activity: If it’s good for the goose, it’s good for the gander. Horizontal drilling, combined with fracing – makes shales productive. So, why shouldn’t that make conventional reservoirs productive? Answer: It should’ “ Nissa Darbonne - Oil & Gas Investor Mississippian vs. Bakken and Bone Spring Shale

  5. Eagle Energy Overview Obtained original property set 4Q 2009 Increased through additional leasing Spud first Mississippian well in June 2010 Began 2 rig program in July 2010 Current 3 rig line, moving to 4 Drilling our ~50th Mississippian horizontal

  6. Eagle Energy Position Highlights ~85,000 net acres in Mississippian Protected through term and drilling schedule Short spud to production time frame Flat topography in pro-oilfield area ~600 potential locations PV10 of P3 reserves in excess of $1.75 billion

  7. The Horizontal Mississippi Trend Source: 2012 SD Investor Presentation

  8. Horizontal Mississippian Overview • Low cost of ~$3.5 million/well • Mostly oil and liquids production • High permeability, carbonate reservoir • No seismic needed; ~17,000 vertical Mississippian data points • working off mud logs • Industry average peak 30-day production ~300 boepd • Rigs are abundant and only require ~1,000 HP • ~ 500 horizontal well data points currently, rig count increasing dramatically • Average lateral length of 3,000-4,000 feet • Fracturing with fresh water and acid • ~One fracture stage per 400-500 feet of lateral • 10,000-12,000 Hydraulic HP pressure pumping for completions, in contrast to 40,000 needed in deeper, tighter unconventional plays • Ottawa sand proppant is plentiful • IRRs ~100% Sources: SandRidge Energy April 2011 Investor Presentation and Oil and Gas Investor, April 2011.

  9. Geology • Vertical Mississippian wells provide control • Limestone, Dolomite & Chert • 10-15% porosity • 35-65% water saturation • Stacked progradational porosity wedges • Better porosity areas show vugs and dolomite rhomb development • Monoclinal dip

  10. Oil Weighting Breakeven play comparison to achieve 10% IRR Liquids content Note: Liquids includes oil and NGLs. Excludes primarily gas plays (i.e. Haynesville and Marcellus). Source:Wall street research, SandRidge investor presentation and EOG resources investor presentation. And Eagle internal data.

  11. Extensive infrastructure Extensive Existing Infrastructure • The area’s legacy production has significant existing available infrastructure

  12. Repeatable Play Takeaways • Horizontal drilling effectively connects existing porosity wedges • Exceptional horizontal well performance across the play by a variety of operators Single well economic summary

  13. Eagle Energy Type Well 513 MBOE (12/31)

  14. Eagle Energy Mississippian Production • Average peak 30 day production across all 32 wells is 658 BOE/day. • Average peak 30 day production across wells included in the type curve is 705 BOE/day. • Average peak 30 day production for wells with less than 12 months production is 803 BOE/day.

  15. Eagle Energy Mississippian Production

  16. Eagle Energy Mississippian Production

  17. The Mighty Mississippi Longhurst 3H-34 Ran Tubing, Flowing up Annulus

  18. Eagle Energy Mississippian Production • IP’s of Wells in Last 100 Days • Gas Volumes are Wet Gas • Berry 1H-32 290 BO, 2.2 MMCF (10 Day) • Baker 1H-33 313 BO, 3.2 MMCF (30 Day) • Zahorsky 1H-8 310 BO, 1.4 MMCF (30 Day) • Percival 1H-6 190 BO, 1.1 MMCF (30 Day) • Ames 3H-27 443 BO, 2.9 MMCF (45 Day) 492 BO, 3.0 MMCF (30 Day) • Leeper 1H-26 190 BO, 4.1 MMCF (45 Day) 195 BO, 4.5 MMCF (30 Day) • Lohmann 1H-29 115 BO, 1.8 MMCF (80 Day) 180 BO, 2.8 MMCF (30 Day) • Buckles 1H-9 165 BO, 2.8MMCF (100 Day) 200 BO, 2.9 MMCF (30 Day)

  19. Eagle Energy Wellbore Evolution • Evolution of current wellbore design. • Wenniger #1 – Re-Entry of Hunton wellbore • Brockman 1-H – 5 ½” long string • Leslie 1H-2 – 7” production – 4.5” liner • Evolution of targeting • Originally targeted the top 100’ of the Mississippian • Resulted in high water production, lower IP’s than expected • Currently targeting the top 60’ • Better IP’s • Lower water production

  20. Technology Improvements • Horizontal locations on top of thousands of historical vertical wells • Drilling days improve with experience Mississippian – Drilling times trend lower 30 Days 22 Days Source: SandRidge and Continental Resources investor presentation.

  21. Eagle Completion Summary • 500’ Stages (~425’ GPI) • Original design was too large • 3,500 bbls Water • 85,000# Sand • 200 bbls 15% HCl • Larger design combined with lower targeting resulted in higher water production and lower reserves. • Current design • 1,600 bbls Water • 20,000# 30/50 Sand • 575 bbls 15% HCl • 100bpm • Average treating pressure 3500psi • Better cleanup near wellbore • Natural permeability • Can re-stimulate to restore production. • 1 re-complete to date: ~300 MBOe added reserves at a cost of ~$1.40/BOe • Drill out with Coiled Tubing

  22. Wellbore Design

  23. Eagle Energy Production Summary • Infrastructure • Designed for Hunton dewatering • Artificial Lift • Initially running ESPs • High volume pumps • Quick recovery of frac load • Lowers fluid levels quickly • VSDs allow flexibility • Adaptable to individual wells

  24. Eagle Energy Well Performance • Highest average IP’s in the Mississippian trend • Longhurst 3H-34: ~3,000 BOe/d (24hr) • 30 Day: 1874 BO, 4.251 MMCF • 60 Day: 1833 BO, 4.453 MMCF • 210 Day: 1129 BO, 2.875 MMCF • To Date: 240+ MBO, 0.610+ BCF • IP’s based on Wet Gas • Sharp 1H-12: ~2,600 BOe/d (24hr) • Avard 1H-31: ~1,900 BOe/d (24hr) • Stelling 1H-23 ~1,700 BOe/d (24hr) • Avard 1H-30 ~1,900 BOe/d (24hr) • ~735 BOe/d Avg 30 day IP, leveling off at ~250BOe/d • Type Well = 513,300 BOe EUR • Liquid Content = 63% (45% Crude) • LOE = $2.06/BOe • F & D = $6.81/BOe

  25. Attractive Economics, Returns & Growth Conclusions • IRRs exceeding other liquids-rich plays • IRRs driven by low drilling and service costs coupled with attractive oil mix and EURs • Ample available infrastructure and equipment • Improving results and costs will drive economics higher; EURs have improved with recent results Rate of return Source: SandRidge investor presentation and Eagle internal data.

  26. E a g l e E n e r g y C o m p a n y o f O k l a h o m a, LLC

More Related