Harmon Valley South HCSS Pilot Approval 11895 Annual Performance Presentation · 2020-03-13 ·...

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11-Feb-2015 Harmon Valley South HCSS Pilot Approval 11895 Annual Performance Presentation

Transcript of Harmon Valley South HCSS Pilot Approval 11895 Annual Performance Presentation · 2020-03-13 ·...

Page 1: Harmon Valley South HCSS Pilot Approval 11895 Annual Performance Presentation · 2020-03-13 · 11-Feb-2015 Harmon Valley South HCSS Pilot Approval 11895 Annual Performance Presentation

11-Feb-2015

Harmon Valley South HCSS Pilot Approval 11895Annual Performance Presentation

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Subsurface Agenda

1. Background

2. Geology

3. Drilling and Completions

4. Artificial Lift

5. Well Instrumentation

6. 4D Seismic

7. Scheme Performance

8. Future Plans

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Subsurface Agenda

1. Background2. Geology

3. Drilling and Completions

4. Artificial Lift

5. Well Instrumentation

6. 4D Seismic

7. Scheme Performance

8. Future Plans

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Background – Primary Development

Primary scheme development began in 2004 under Approval No. 11060

The Harmon Valley South (HVS) Primary field has 18 primary wells operating on 8 wellpads

Currently there are 30 wells within 1,000m of the HVS Pilot Project, both primary producing and stratigraphic wells

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Background – Thermal Approval

Approval 11895 21-Sep-12 Original Pilot Approval

Approval 11895A 28-Nov-12Revised bottomhole location for pilot wells

AUC Approval for Pilot Power Plant 3-Oct-12

AUC Approval received

Approval 11895B 3-Mar-14

Increase maximum bottomhole operating pressure from 14,500 kPag to 21,500 kPag and light hydrocarbon circulation prior to steam injection

Approval 11895C 11-Aug-14

Increase steam injection volume above 14,500 kPag from 2,500 m3 to 12,500 m3

and reduction in maximum bottomhole injection pressure from 21,500 kPag to 20,000 kPag

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Background – Pilot Objectives

A three well HCSS project in the Bluesky Formation

80% quality steam injected at the heel of the well

Inject steam at a target rate of 500 m3/d CWE

Evaluate technology in various reservoir conditions:• Well 100/07-36: Tight, viscous conditions

• Well 102/15-06: High water saturation

• Well 103/14-06: High permeability

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Subsurface Agenda

1. Background

2. Geology3. Drilling and Completions

4. Artificial Lift

5. Well Instrumentation

6. 4D Seismic

7. Scheme Performance

8. Future Plans

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Geology – Bluesky Formation Overview

Series of north/south oriented, stacked tidal distributary channels

Fine to medium grained litharenite

Average depth is 675m TVD

Thickness up to 26m

Porosities from 24% to 30% (Avg 25%)

Permeability from 450 to 4,200 mD

Oil Saturation from 55% to 85% (Avg 76%)

API Gravities of 8.7 to 9.8 API at 15.6°C

Viscosities from 11,000 to 300,000 cSt at 20°C

10-06-083-17W5 Type Log

Bluesky

Gething

Wilrich Mkr

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Geology – Thermal Pilot Location

Pilot HCSS Wells

• 100/07-36-082-18W5

• 102/15-06-083-17W5

• 103/14-06-083-17W5

Observation Wells

• 100/10-06-083-17W5

• 100/15-06-083-17W5

• 102/14-06-083-17W5

• 100/15-36-082-18W5

• 100/02-06-083-17W5

• 100/11-06-083-17W5

14-0615-06

10-06

15-36

02-06

11-06

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Geology – 3D Seismic

3D-HVS09 (North)

• Shot in January 2009

• Processed in January 2009

3D-HVS (South)

• Shot in March 2008

• Processed in March 2008

3D-HVS09

3D-HVS

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Geology – Bluesky Top Structure Map

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Geology – Bluesky Base Structure Map

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Geology – Net Pay Map

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Geology – Structural Cross-Section

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Geology – Structural Cross-Section100/07-36-082-18W5

Wilrich Mkr

Bluesky

Gething

Pay Top

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Geology – Structural Cross-Section102/15-06-083-17W5

Wilrich Mkr

Bluesky

Gething

Pay Top

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Geology – Structural Cross-Section103/14-06-083-17W5

Wilrich Mkr

Bluesky

Gething

Pay Top

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Geology - Cored Wells

Cored Wells

CSS Thermal Well

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Geology – Core Photos

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Geology – Average Reservoir Properties (Pilot)

*Based on the pilot project area

Net pay (m) 14.7Area (ha) 184Porosity (%) 27Water Saturation (%) 24Formation Temperature (˚C) 22Formation Pressure (kPa) 4,800Viscosity (cSt at 20oC) 30,000Average Hz Permeability (mD) 1,500Formation Volume Factor 1.02OBIP (e3m3)* 5,441

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Geology – Fracture Pressure

In 2011, a mini-frac test was conducted in 100/03-06-083-17W5

Penn West performed two new MDT mini-frac tests to determine the closure stress in the Wilrich and Bluesky Formations:• Wilrich Fm depth of 672m MD

• Bluesky Fm depth of 698m MD

After processing the data, the following gradients are calculated:

The MOP granted by the AER for the pilot is 20MPa (29.8 kPa / m)

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Subsurface Agenda

1. Background

2. Geology

3. Drilling and Completions4. Artificial Lift

5. Well Instrumentation

6. 4D Seismic

7. Scheme Performance

8. Future Plans

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Drilling and Completions – Wellbore Design

60.3mm guide string to the toe

38.1mm coil tubing thermocouple instrumentation line inside the guide string

114.3mm injection and production string landed at the heel

Bubble tube strapped to the guide string

Injection/Production String:114.3 mm, 18.97 kg/m, L-80 Hydril 503

Reciprocating Rod Pump

Surface Casing:339.7 mm, 81.10 kg/m, J-55, ST&C

Production Casing: 244.5 mm, 59.53 kg/m, L-80, Hydril 563

ICP

Guide String:60.3 mm, 6.99 kg/m, L-80 Hydril 503

Bubble tube strapped to guide string.

Thermal cement to surface

Slotted Liner:177.8 mm, 34.23 kg/m, L-80 Hydril 563

CT Instrumentation String: 38.1 mm coil tubing

Cement to surface

Liner Hanger

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Subsurface Agenda

1. Background

2. Geology

3. Drilling and Completions

4. Artificial Lift5. Well Instrumentation

6. 4D Seismic

7. Scheme Performance

8. Future Plans

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Artificial Lift

3.25” insert rod pumps run on all three wells initially

Due to low reservoir temperatures in Well 103/14-06 following steam cycle 1, pump could not produce the viscous oil • Weatherford 56-1500 Insert PCP run in May 2014 to

enable continued production

• Intend to return to rod pump following second steam cycle on Well 103/14-06

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Subsurface Agenda

1. Background

2. Geology

3. Drilling and Completions

4. Artificial Lift

5. Well Instrumentation6. 4D Seismic

7. Scheme Performance

8. Future Plans

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Well Instrumentation – HCSS Wells

Multiple thermocouples to monitor temperature from wellhead to the toe of the well (1,600 – 1,800m MD)

Heel pressure measurement via bubble tube strapped to the 60.3mm guide string

Toe pressure measurement via bubble tube in instrumentation coil

Ability to perform N2 purge from surface

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Well Instrumentation – Observation Wells

Five observation wells to measure reservoir response at various locations along the horizontal lengths of the wells

Real-time pressure and temperature monitoring via thermocouples and single point pressure gauges spaced in the reservoir

Permanent passive micro-seismic monitoring from 2 observation wells to monitor casing and caprock integrity

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Subsurface Agenda

1. Background

2. Geology

3. Drilling and Completions

4. Artificial Lift

5. Well Instrumentation

6. 4D Seismic7. Scheme Performance

8. Future Plans

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4D Seismic

No current plans to conduct 4D Seismic at HVS

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Subsurface Agenda

1. Background

2. Geology

3. Drilling and Completions

4. Artificial Lift

5. Well Instrumentation

6. 4D Seismic

7. Scheme Performance8. Future Plans

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Scheme Performance – Well 100/07-36

3-Jun-14 23-Jul-14

0

2

4

6

8

10

12

0

500

1,000

1,500

2,000

2,500

3,000

01-Jun-14 11-Jun-14 21-Jun-14 01-Jul-14 11-Jul-14 21-Jul-14 31-Jul-14

c SO

R

Cum

ulat

ive

Volu

me,

m3

Produced Oil Produced Water Total Steam Total cSOR

Well shut-in due to rod hang-up.

Awaiting next steam cycle.

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Scheme Performance – Well 100/07-36

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

01-Jun-14 11-Jun-14 21-Jun-14 01-Jul-14 11-Jul-14 21-Jul-14

Pres

sure

, kPa

Wellhead Pressure, kPa Heel Pressure, kPa Toe Pressure, kPa

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Scheme Performance – Well 100/07-36

0

50

100

150

200

250

300

350

400

01-Jun-14 11-Jun-14 21-Jun-14 01-Jul-14 11-Jul-14 21-Jul-14

Tem

pera

ture

, deg

C

489mKB 944mKB 1047mKB 1092mKB

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Scheme Performance – Well 100/07-36

686

688

690

692

694

696

698

700

702

704

20 22 24 26 28 30

Form

atio

n D

epth

, mK

B

Temperature, degC

3-Jun 10-Jun 14-Jun 30-Jun

685

690

695

700

705

710

715

20 22 24 26 28 30 32

Form

atio

n D

epth

, mK

B

Temperature, degC

3-Jun 10-Jun 14-Jun 30-Jun

100/02-06-083-17W5 100/15-36-082-18W5

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Scheme Performance – Well 102/15-06

5-May-14 26-Aug-14 18-Sep-14

0

2

4

6

8

10

12

14

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

01-Apr-14 21-May-14 10-Jul-14 29-Aug-14 18-Oct-14 07-Dec-14

c SO

R

Cum

ulat

ive

Volu

me,

m3

Produced Oil Produced Water Total Steam Total cSOR

Well shut-in due to rod hang-up.

Repairs completed on

steam plant prior to commencing

next steam cycle.

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Scheme Performance – Well 102/15-06 Bottomhole Conditions

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

01-May-14 20-Jun-14 09-Aug-14 28-Sep-14 17-Nov-14

Pres

sure

, kPa

Wellhead Pressure, kPa Heel Pressure, kPa Toe Pressure, kPa

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Scheme Performance – Well 102/15-06 Bottomhole Conditions

0

50

100

150

200

250

300

350

400

18-Sep-14 28-Sep-14 08-Oct-14 18-Oct-14 28-Oct-14 07-Nov-14 17-Nov-14

Tem

pera

ture

, deg

C

450mKB 752mKB 785mKB 832mKB 879mKB 923mKB 973mKB1,020mKB 1,068mKB 1,115mKB 1,162mKB 1,209mKB 1,256mKB 1,303mKB1,350mKB 1,397mKB 1,444mKB 1,491mKB 1,538mKB 1,585mKB

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Scheme Performance – Well 102/15-06 Bottomhole Conditions

0

50

100

150

200

250

300

350

400

0 200 400 600 800 1000 1200 1400 1600 1800

Tem

pera

ture

, deg

C

Measured Depth of Thermocouple, mKB

Cycle 1 Cycle 2

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Scheme Performance – Well 102/15-06

675

680

685

690

695

700

705

20 25 30 35 40 45 50

Form

atio

n D

epth

, mK

B

Temperature, degC

5-May 18-May 26-Aug

18-Sep 23-Nov 31-Dec

670

675

680

685

690

695

700

0 20 40 60 80 100 120

Form

atio

n D

epth

, mK

B

Temperature, degC

5-May 18-May 26-Aug

18-Sep 23-Nov 31-Dec

100/10-06-083-17W5 100/15-06-083-17W5

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Scheme Performance – Well 103/14-06

5-Mar-14 11-Sep-14 14-Dec-14

0

2

4

6

8

10

12

0

1,000

2,000

3,000

4,000

5,000

6,000

01-Nov-13 21-Dec-13 09-Feb-14 31-Mar-14 20-May-14 09-Jul-14 28-Aug-14 17-Oct-14 06-Dec-14

c SO

R

Cum

ulat

ive

Volu

me,

m3

Produced Oil Produced Water Total Steam Total cSOR

Well shut-in awaiting next steam cycle.

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Scheme Performance – Well 103/14-06 Bottomhole Conditions

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

01-Mar-14 20-Apr-14 09-Jun-14 29-Jul-14 17-Sep-14 06-Nov-14 26-Dec-14

Pres

sure

, kPa

Wellhead Pressure Heel Pressure Toe Pressure

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Scheme Performance – Well 103/14-06

680

682

684

686

688

690

692

694

696

698

20 22 24 26 28 30

Form

atio

n D

epth

, mK

B

Temperature, degC

3-Mar 15-Mar 30-Mar 8-Apr

1-Sep 14-Dec 31-Dec

670

675

680

685

690

695

700

705

20 40 60 80 100

Form

atio

n D

epth

, mK

B

Temperature, degC

3-Mar 15-Mar 30-Mar 8-Apr

1-Sep 14-Dec 31-Dec

100/11-06-083-17W5 102/14-06-083-17W5

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Scheme Performance – Steam Injection

0

60

120

180

240

300

360

420

480

0

10

20

30

40

50

60

70

80

01-Dec-13 20-Jan-14 11-Mar-14 30-Apr-14 19-Jun-14 08-Aug-14 27-Sep-14 16-Nov-14

Stea

m T

empe

ratu

re, S

team

Rat

e

Stea

m Q

ualit

y, S

team

Pre

ssur

e

Steam Pressure, MPa Steam Quality, % Steam Rate, m3/d Steam Temperature, degC

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Thermal WellPrimary Well

Scheme Performance – Offsetting Primary Wells

Offsetting primary wells are thermally compatible

To date, Penn West has not identified any communication between the thermal wells and the offsetting primary wells

Temperature of the produced fluids is monitored to identify any potential steam migration, and will be shut in if temperatures show a significant increase

860m

585m

400m

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Scheme Performance – Recovery Factor

Cycle 1 Production, m3 2,067Cycle 2 Production to Date, m3 1,335Total Production to Date, m3 3,402OBIP, m3 5,441,000Current Recovery, % 0.1%Estimated Ultimate Recovery*, % 3%

*Estimated Ultimate Recovery is low due to the large project area defined. Typical primary recovery in this area is 5%.

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Subsurface Agenda

1. Background

2. Geology

3. Drilling and Completions

4. Artificial Lift

5. Well Instrumentation

6. 4D Seismic

7. Scheme Performance

8. Future Plans

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Future Plans

Complete second steam cycle on Well 103/14-06 in Q1 2014

Begin second steam cycle on Well 100/07-36

Evaluate second production cycles on all three pilot wells to determine third steam cycle schedule

With the increased injection volumes, Penn West is still early in the evaluation phase of pilot results and the technology’s application in the specific reservoir conditions

Continuously evaluating project economics in light of current market conditions

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Harmon Valley South HCSS PilotSurface Review

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Surface Agenda

1. Facilities

2. Measurement and Reporting

3. Water Use

4. Water Treatment

5. Water and Waste Disposal

6. Sulphur Production

7. Environmental

8. Compliance

9. Non-Compliance

10. Future Plans

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Surface Agenda

1. Facilities2. Measurement and Reporting

3. Water Use

4. Water Treatment

5. Water and Waste Disposal

6. Sulphur Production

7. Environmental

8. Compliance

9. Non-Compliance

10. Future Plans

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Facilities – Pilot Plot Plan

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Facilities – Process Flow Diagram

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Facilities - Modifications

Pilot plant facility construction completed in Q4 2013 with the following major equipment:• 14.65 MW OTSG

• Water Treatment Package

• Water Tank Farm

• Produced Fluids Tank Farm

• MCC / Instrument Air Building

• Diesel and Natural Gas Generators

• Glycol System

• HP/LP Flare

• Three HCSS wells with electrically powered pump jacks

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Facilities - Modifications

Drilled one horizontal source water well (14-25-082-18W5) and one vertical source water well (16-36-082-18W5) and connected to the facility via pipeline in Q3 2013

Constructed 8” 23.4km fuel gas pipeline from TransCanada 05-09-085-17W5 to pilot facility

Constructed telecommunications infrastructure in Q3 2013 including tower, microwave and radio equipment and UPS

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Facility Performance

Bitumen Treatment:

• Successfully produced sales spec oil with existing facility

• Each production well is tied into common header/production system

Steam Generation:• OTSG capacity 14.65MW and 80% steam quality

• Design to steam one well at a time

• Have not run the OTSG consistently at full capacity and steam quality due to injectivity constraints caused by the reservoir conditions

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Facility Performance

Other Equipment:• Genset Packages: installed diesel and natural gas

generators. Downtime for various reasons, such as overcurrent trips, cooked wires, detonation problems, fan failure, VFD faults.

• Glycol Heaters: Downtime caused by variety of reasons, such as overloads, coolant leaks, cooked VFD, VFD faults.

• The fuel gas lines were mostly installed without insulation or heat tracing – moisture in lines caused variety of problems and equipment trips.

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Facility Performance

Radar level transmitters in produced fluids tanks failed to provide correct tank level feedback. Tank level gauges installed instead.

Significant work required to swing well from steaming to production service. In future, use spectacle blinds instead of removable spools in places where possible.

The flare knock-out drum was not fitted with separate liquid transfer pump. The vacuum truck is used as a solution. Operating costs should be considered when looking into decisions aimed at capital savings.

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Facility Performance – Power Consumption

Harmon Valley South Thermal Pilot operates using an natural gas generator with a diesel generator as back-up.

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Facility Performance – Fuel Use

Month

Purchased Gas Vent Gas Flare Gas Produced GasProduced Gas

Recovery

e3m3 e3m3 e3m3 e3m3 %Jul-13 22.3 0 0 0 0%Aug-13 206.4 0 0 0 0%Sep-13 186.5 0 0 0 0%Oct-13 239.9 0 0 0 0%Nov-13 304.7 0 18.1 0 0%Dec-13 639.5 0 6.2 0 0%Jan-14 389.6 0 6.2 0 0%Feb-14 277.3 0 6.2 0 0%Mar-14 280.6 0 6.2 0 0%Apr-14 210.9 0 5 0 0%May-14 261.2 0 6.9 0.1 0%Jun-14 293.7 0 11.5 0.3 0%Jul-14 73.5 0 6.9 0.3 0%Aug-14 92.4 0 6.7 0.2 0%Sep-14 256.2 0 3.6 0.2 0%Oct-14 527.2 0 10.6 0 0%Nov-14 419.7 0 18.1 0 0%Dec-14 435.7 0 17.1 0.1 0%

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Surface Agenda

1. Facilities

2. Measurement and Reporting3. Water Use

4. Water Treatment

5. Water and Waste Disposal

6. Sulphur Production

7. Environmental

8. Compliance

9. Non-Compliance

10. Future Plans

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Measurement and Reporting

• Updated MARP submitted in August 2014 – Revision 6

• Oil production volumes are estimated on lease by tank gauge and measured at the sales point by coriolis meter

• Gas produced with emulsion and casing gas flows directly to HP Flare and is measured by annubar meter. Solution gas from the produced fluid tanks is directed to LP Flare and measured by ultrasonic meter. Both meters to be updated on new MARP revision.

• Steam injection volumes are measured by differential pressure meter across the flow nozzle

• Water to injection facility from source water wells is measured at each well by turbine meters

• Fuel gas supply from TransCanada Pipeline is measured at facility by vortex meters

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Measurement and Reporting

Test separator equipped with watercut analyzer used to prorate oil volumes to each well

Wells put into test on rotation

Reporting as per Directive 017 requirements

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Measurement and Reporting - Proration Factors

Multiple wells producing Jun-14 through Sep-14

0

1

2

3

4

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Jun-14 Jul-14 Aug-14 Sep-14

Num

ber o

f Wel

ls O

nlin

e

Pror

atio

n Fa

ctor

Harmon Valley South Proration FactorsOil Proration Factor Water Proration Factor Wells Online

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Measurement and Reporting – Water Balance

MonthTOTAL IN TOTAL OUT

INVENTORY ADJUSTMENT BALANCE

m3 m3 m3 m3 %Nov-13 2,808 2,463 315 -29 1.0%Dec-13 5,420 5,428 -8 0 0.0%Jan-14 2,749 2,807 26 85 3.1%Feb-14 717 908 -51 140 19.5%Mar-14 3,231 3,157 71 -3 0.1%Apr-14 1,601 1,598 3 0 0.0%May-14 2,969 2,849 -43 -164 5.5%Jun-14 2,515 2,544 -104 -74 3.0%Jul-14 0 0 0 0 0.0%Aug-14 43 0 41 -2 4.8%Sep-14 3,077 2,992 85 0 0.0%Oct-14 6,081 6,117 -36 0 0.0%Nov-14 4,368 4,368 0 0 0.0%Dec-14 3,566 3,512 54 0 0.0%

INJECTION FACILITY AB IF 0128299

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Surface Agenda

1. Facilities

2. Measurement and Reporting

3. Water Use4. Water Treatment

5. Water and Waste Disposal

6. Sulphur Production

7. Environmental

8. Compliance

9. Non-Compliance

10. Future Plans

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Water Use

Water source wells: 1F1/16-36-082-18W5 and 100/14-25-082-18W5

A Water Act Application was not required as water is sourced from the Paddy-Cadotte Aquifer of the Peace River Formation, which is approximately 4,700 ppm TDS in this area

Brackish Water, m3

1F1/16-36-082-18W5 100/14-25-082-18W5Nov-13 461 931Dec-13 4,272 1,139Jan-14 2,578 171Feb-14 592 125Mar-14 1,554 1,677Apr-14 63 1,527May-14 1,347 1,622Jun-14 413 2,102Jul-14 0 0Aug-14 23 0Sep-14 1,887 1,105Oct-14 6,063 18Nov-14 4,313 55Dec-14 2,637 928

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Surface Agenda

1. Facilities

2. Measurement and Reporting

3. Water Use

4. Water Treatment5. Water and Waste Disposal

6. Sulphur Production

7. Environmental

8. Compliance

9. Non-Compliance

10. Future Plans

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Water Treatment

Water Treatment Package designed to treat saline water and produce BFW quality suitable for OTSG

The source water is treated by a softening system consisting of multimedia filter, primary and secondary WAC softeners, neutralization, regen and dosing systems

Water Treatment Package designed with condensed equipment and piping spacing, resulting in limited maintenance access

Separate heated storage for chemicals currently being constructed

Harmon Valley South Pilot facility does not recycle produced water due to make up water requirements of less than 500 000 m3/year

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Surface Agenda

1. Facilities

2. Measurement and Reporting

3. Water Use

4. Water Treatment

5. Water and Waste Disposal6. Sulphur Production

7. Environmental

8. Compliance

9. Non-Compliance

10. Future Plans

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Water and Waste Disposal

Produced water from the facility is sent for disposal to the Class II Disposal facility at 14-18-082-17W5

Class II Disposal Scheme Approval No. 11913 for disposal in the Leduc Formation

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Water Disposal

Includes all disposal water injected at 100/14-18-082-17W5

0

1000

2000

3000

4000

5000

6000

0

100

200

300

400

500

600

2013-Jan-01 2013-Apr-11 2013-Jul-20 2013-Oct-28 2014-Feb-05 2014-May-16 2014-Aug-24 2014-Dec-02

Inje

ctio

n Pr

essu

re, k

Pa

Inje

cted

Vol

ume,

m3/

d

100/14-18-082-17W5 Disposal WellInjected Volume Injection Pressure

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Surface Agenda

1. Facilities

2. Measurement and Reporting

3. Water Use

4. Water Treatment

5. Water and Waste Disposal

6. Sulphur Production7. Environmental

8. Compliance

9. Non-Compliance

10. Future Plans

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Sulphur Balance

Month

SulphurProduction

Sulphur in Flared Gas

Sulphur in Recovered Gas

tonne/d tonne/d tonne/dJan-14 0.000 0.0000 0.0000

Feb-14 0.000 0.0000 0.0000

Mar-14 0.000 0.0000 0.0000

Apr-14 0.000 0.0000 0.0000

May-14 0.000 0.0000 0.0000

Jun-14 0.000 0.0000 0.0000

Jul-14 0.000 0.0000 0.0000

Aug-14 0.000 0.0000 0.0000

Sep-14 0.000 0.0000 0.0000

Oct-14 0.000 0.0000 0.0000

Nov-14 0.000 0.0000 0.0000

Dec-14 0.000 0.0000 0.0000

2014 Total Sulphur Production = 0 tonne

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SO2 Production

EPEA Approval for Harmon Valley South Pilot facility does not require real-time Sulphur Dioxide (SO2) emission monitoring

Site is equipped with passive air monitoring for SO2, nitrogen dioxide (NO2) and hydrogen sulphide (H2S) emissions

Reports submitted monthly

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SO2 Emissions

Peak Reading (ppb) Average Reading (ppb)Aug-13 0.4 0.3

Sep-13 0.3 0.2

Oct-13 0.3 0.3

Nov-13 0.5 0.3

Dec-13 0.5 0.4

Jan-14 0.1 0.1

Feb-14 0.4 0.3

Mar-14 0.4 0.4

Apr-14 0.2 0.2

May-14 2.8 1.9

Jun-14 0.4 0.2

Jul-14 0.6 0.4

Aug-14 0.1 0.1

Sep-14 0.2 0.1

Oct-14 0.3 0.2

Nov-14 0.5 0.4

Dec-14 0.5 0.5

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Surface Agenda

1. Facilities

2. Measurement and Reporting

3. Water Use

4. Water Treatment

5. Water and Waste Disposal

6. Sulphur Production

7. Environmental8. Compliance

9. Non-Compliance

10. Future Plans

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Environmental

Penn West received EPEA Approval No. 303255-00-00 on October 23, 2012• Additional burners on new emulsion tanks added Q2

2014 operating under Director’s Authorization

Monitoring ongoing as per EPEA Approval conditions:• Air Emissions

• Industrial Wastewater and Industrial Runoff

• Groundwater

• Soil Monitoring

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Surface Agenda

1. Facilities

2. Measurement and Reporting

3. Water Use

4. Water Treatment

5. Water and Waste Disposal

6. Sulphur Production

7. Environmental

8. Compliance9. Non-Compliance

10. Future Plans

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Statement of Compliance

To the best of our knowledge, Penn West is in compliance with all the requirements and conditions of Commercial Scheme Approval No. 11895C and all other approvals related to the Harmon Valley South HCSS Pilot.

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Surface Agenda

1. Facilities

2. Measurement and Reporting

3. Water Use

4. Water Treatment

5. Water and Waste Disposal

6. Sulphur Production

7. Environmental

8. Compliance

9. Non-Compliance10. Future Plans

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Non-Compliance – Voluntary Self-Declarations

Jan 2013: High Risk Enforcement due to application for Directive 056 Facility License prior to Directive 042 MARP Approval

April 2014: Exceeded steam injection volume to 103/14-06-083-17W5 during steam cycle 1• Injected 3,569 m3 above 14.5MPa due to faulty

cumulative steam calculated tag

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Surface Agenda

1. Facilities

2. Measurement and Reporting

3. Water Use

4. Water Treatment

5. Water and Waste Disposal

6. Sulphur Production

7. Environmental

8. Compliance

9. Non-Compliance

10. Future Plans

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Future Plans

Evaluating project success with increased injection volumes

Evaluating project economics in light of current market conditions

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Questions?

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Stock ExchangeToronto: PWTNew York: PWE

Legal CounselBurnet, Duckworth & Palmer LLP

Independent Reserves EvaluatorSproule Associates Limited

Transfer AgentCanadian Stock Transfer CompanyToll Free: 1-800-387-0825Email: [email protected]: www.canstockta.com

Investor RelationsClayton Paradis Manager, Investor Relations Telephone: (403) 539-6343Email: [email protected]

Toll Free: 1-888-770-2633Email: [email protected]: www.pennwest.com

Penn WestSuite 200, Penn West Plaza207 – 9th Avenue SWCalgary, Alberta, Canada T2P 1K3Telephone: (403) 777-2707Toll Free: 1-866-693-2707Facsimile: (403) 777-2699Website: www.pennwest.com