SHALLOW GAS EXPLORATION & PRODUCTION IN SOUTH …

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SHALLOW GAS EXPLORATION & PRODUCTION IN SOUTH DAKOTA PAST, PRESENT, AND FUTURE BY GERALD (MACK) McGILLIVRAY 2008 ROCKY MOUNTAIN UNCONVENTIONAL GAS CONFERENCE OCTOBER 15-17, 2008

Transcript of SHALLOW GAS EXPLORATION & PRODUCTION IN SOUTH …

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SHALLOW GAS EXPLORATION & PRODUCTIONIN

SOUTH DAKOTA

PAST, PRESENT, AND FUTURE

BY

GERALD (MACK) McGILLIVRAY

2008 ROCKY MOUNTAIN UNCONVENTIONAL GAS CONFERENCE

OCTOBER 15-17, 2008

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HISTORY OF SHALLOW GAS IN SDHISTORY OF SHALLOW GAS IN SDA TimelineA Timeline

Waaay back: Pierre Gas Field 1889Waaay back: Pierre Gas Field 1889--1948 1948

Oil & Casing Head Gas (Too Deep & Low BTU): 1954Oil & Casing Head Gas (Too Deep & Low BTU): 1954--PresentPresent

Not so far back: Harding Co. Eagle/ShannonNot so far back: Harding Co. Eagle/ShannonWSPH & Cady Creek Fields: 1977WSPH & Cady Creek Fields: 1977--PresentPresent

Recent Past (Last Five Years) and Present: Pierre Gas Field ReviRecent Past (Last Five Years) and Present: Pierre Gas Field Revisited, sited, SubSub--Glacial Gas, and New Field in Harding Co.Glacial Gas, and New Field in Harding Co.

Future???Future???

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PIERRE GAS FIELD PIERRE GAS FIELD 18991899--19481948

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PIERRE GAS FIELD HISTORYPIERRE GAS FIELD HISTORY

1889 Pierre Gas Plant installed 1889 Pierre Gas Plant installed 1892 Gas from Indian School water well 1892 Gas from Indian School water well flaredflared until 1939until 19391894 1894

Locke Hotel; cook, heat, lightsLocke Hotel; cook, heat, lightsCity Gas Plant; “(every) home…”City Gas Plant; “(every) home…”City Streets; all lit with gasCity Streets; all lit with gas

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GAS ANALYSESGAS ANALYSES

State Capitol WellState Capitol WellCH4………94 %CH4………94 %N2……….. 5.7N2……….. 5.7O2……….. 0.13O2……….. 0.13CO2………0.06CO2………0.06Btu………..907Btu………..907

Analysis by S.D. StateAnalysis by S.D. StateCollegeCollege

Pierre City WellsPierre City WellsMethane…….78.8%Methane…….78.8%Ethane………13.2Ethane………13.2Propane……..10.7Propane……..10.7Butane………..1.3Butane………..1.3

Analysis by Carter Oil Analysis by Carter Oil CompanyCompany

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Pierre Area Natural Gas Production Pierre Area Natural Gas Production 1899 1899 -- 19481948

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MMCF GAS

SD Department of Environment & Natural Resources

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Dakota SandstoneInyan Kara Group (Fall River & Lakota Sandstone)

MissouriRiverPierre Shale

Igneous andMetamorphic

Rock

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HARDING COUNTY OIL HARDING COUNTY OIL & GAS FIELDS HISTORY& GAS FIELDS HISTORY

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HARDING COUNTY OIL HARDING COUNTY OIL & GAS FIELDS HISTORY CONTD.& GAS FIELDS HISTORY CONTD.

1954: Buffalo Field discovered. Cum 1954: Buffalo Field discovered. Cum gas production 172 BCF, mostly gas production 172 BCF, mostly casinghead gas (low BTU) used on casinghead gas (low BTU) used on site or vented. site or vented.

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HARDING COUNTY – BUFFALO FIELD 1943

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HARDING COUNTY – BUFFALO FIELD 195?

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HARDING COUNTY OIL HARDING COUNTY OIL & GAS FIELDS HISTORY CONTD.& GAS FIELDS HISTORY CONTD.

19761976--78: West Short Pine Hills & 78: West Short Pine Hills & Cady Creek fields discovered. Cum Cady Creek fields discovered. Cum gas production 24 BCF, all salable gasgas production 24 BCF, all salable gas

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South Dakota Natural Gas Production South Dakota Natural Gas Production 1899 1899 -- 20072007

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SD Department of Environment & Natural Resources 02/20/08

Methane production from the DakotaSandstone, Pierre Gas Field, 1899-1953

Casing head gas associated withOil production 1954-Present

Methane production from the Eagle/Shannonmembers of the Pierre Shale 1979-Present

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South Dakota Natural Gas Production South Dakota Natural Gas Production 1899 1899 -- 20072007

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TOTAL GASSALABLE GAS

SD Department of Environment & Natural Resources 02/20/08

Methane production from the DakotaSandstone, Pierre Gas Field, 1899-1953

Casing head gas associated withOil production 1954-Present

Methane production from the Eagle/Shannonmembers of the Pierre Shale 1979-Present

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HARDING COUNTY OIL HARDING COUNTY OIL & GAS FIELDS HISTORY CONTD.& GAS FIELDS HISTORY CONTD.

20072007--08: Spyglass Jump Off Field 08: Spyglass Jump Off Field discovered. Cum gas production discovered. Cum gas production (June & July 2008, 50 days) 75,523 (June & July 2008, 50 days) 75,523 MCFMCF

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2008 MONTHLY SALABLE GAS PRODUCTION

35,950 33,283 33,869 31,55631,741

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MCF

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RECENT “WILDCAT” SHALLOWRECENT “WILDCAT” SHALLOWGAS EXPLORATION GAS EXPLORATION

2004: McCook Co. Glacial/Cretaceous 2004: McCook Co. Glacial/Cretaceous Test by Sheirer (Landowner). Show Test by Sheirer (Landowner). Show of Gas, but also producing water. Still of Gas, but also producing water. Still testing methods to reducetesting methods to reduce

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RECENT “WILDCAT” SHALLOWRECENT “WILDCAT” SHALLOWGAS EXPLORATION CONTD.GAS EXPLORATION CONTD.

2005 & 2007: Stanley & Hughes Co. 2005 & 2007: Stanley & Hughes Co. Cretaceous Gas Tests by Huston Expl Cretaceous Gas Tests by Huston Expl (Forest Oil) & Fidelity Expl.(Forest Oil) & Fidelity Expl.

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RECENT “WILDCAT” SHALLOWRECENT “WILDCAT” SHALLOWGAS EXPLORATION CONTD.GAS EXPLORATION CONTD.

2007: Spink Co. Cretaceous Gas Tests 2007: Spink Co. Cretaceous Gas Tests by BioRock.by BioRock.

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THE FUTURE,WHAT DOES IT

HOLD, AND WHAT CAN WE DO TO HELP?

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CURRENT PUBLICATIONS

ANDSERVICES

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NEW STUFF!!

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Revise 74:10:03:16. Procedures for setting surface casing and production casing.The rule currently requires a minimum of 100 feet of surface casing to protect shallow aquifers in all oil and gas wells. Operators that are exploring for shallow oil and gas in the state asked the department to change the current rule because some of the oil and gas they are targeting is at depths of less than 100 feet. In addition, there are areas in the state where 100 feet of surface casing is not necessary due to the surface geology (shale, glacial till). This rule change will eliminate the minimum 100 feet of surface casing requirement and allow the department to determine how much surface casing isrequired on a case-by-case basis as we do now when more than 100 feet is required.

REVISED RULES

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Williston Basin

Kennedy Basin

Sioux Ridge

BlackHills

ChadronArch

Powder RiverBasin

Forest CityBasin

Canadian Shield

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A’

B’C’D’

E’F’

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Cross Sections of Geophysical Logs of Phanerozoic Rocks in South Dakota

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Cross Section Showing Geophysical Logs of Phanerozoic Rocks In the Northern Portion of the Williston Basin in South Dakota

By J.E. Fox (SDSMT) and K.A. McCormick and T.N. Haggar (SDGS)

Currently under Construction and will be available asa SDGS publication July, 2008

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Stratigraphic Correlation Chartof South Dakota

Joint effort by DENROil & Gas Section

AndSouth Dakota Geological Survey

Became availableas a SDGS publication

(Oil & Gas Investigation 1)July, 2007

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THE DENR OIL &GAS OFFICE AND SDGS HAVE SCANNED ALL OF THE WELL LOGS IN OUR FILES, AND THEY ARE CURRENTLY AVAILABLE IN TIFF

AND PDF FORMATS BY REQUEST.

HOPEFULLY, THEY WILL BE AVAILABLE ON THE WEB SOON.

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FOR MORE INFORMATION,

SEE OUR WEBSITE http://www.state.sd.us/denr/DES/Mining/Oil&Gas/O&Ghome.htm

OR CONTACT:

FRED STEECE (SUPERVISOR) email: [email protected]

MACK MCGILLIVRAY (SENIOR GEOLOGIST) email: [email protected]

SOUTH DAKOTA DEPARTMENT OF ENVIRONMENT & NATURAL RESOURCESMINERALS & MINING PROGRAM - OIL & GAS SECTION

2050 WEST MAIN, SUITE #1RAPID CITY, SD 57702-2493

PHONE: (605)394-2229 FAX: (605)394-5317