UNCONVENTIONAL GAS RESOURCES AND DEVELOPMENT · 3 JAF02368.PPT Advanced Resources International,...
Transcript of UNCONVENTIONAL GAS RESOURCES AND DEVELOPMENT · 3 JAF02368.PPT Advanced Resources International,...
JAF02368.PPT1 Advanced Resources International, Inc.NOV 5, 2004
UNCONVENTIONAL GAS RESOURCES AND DEVELOPMENT
Prepared for:
Mid-Continent Coalbed Methane Symposium
Prepared by:
Vello A. Kuuskraa ([email protected] )Advanced Resources International, Inc.
November 7-9, 2004
JAF02368.PPT2 Advanced Resources International, Inc.NOV 5, 2004
ABSTRACT
In a span of 20 years, the outlook for unconventional gas resources has grown from modest expectations to a major source of domestic natural gas supply, now exceeding natural gas production from the offshore Gulf of Mexico.
During this time, coalbed methane, one of the three primary unconventional gas sources, has changed from a scientific curiosity to providing, last year, over 1.6 Tcf (4.4 billion cubic feet per day) of pipeline quality natural gas.
Looking forward to the next 20 years, unconventional gas is expected to become the largest single source of domestic natural gas supply, with growth in all three resources - - tight gas, gas shales and coalbed methane.
The presentation reviews the major progress in knowledge and technology that has provided the foundation for the remarkable growth of this domestic natural gas resource.
JAF02368.PPT3 Advanced Resources International, Inc.NOV 5, 2004
OUTLINE OF PRESENTATION
1. Background and Outlook for Unconventional Gas
2. A Look at Key Plays• Powder River Basin (CBM)• Fort Worth Basin (Barnett Shale)• Piceance Basin (MV Tight Gas Sands)
3. Concluding Remarks
JAF02368.PPT4 Advanced Resources International, Inc.NOV 5, 2004
1. BACKGROUND AND OUTLOOK FOR UNCONVENTIONAL GAS
JAF02368.PPT5 Advanced Resources International, Inc.NOV 5, 2004
BACKGROUND AND OUTLOOK
1. The future of domestic natural gas supply rests on the successful development of unconventional gas.– Maturity of conventional gas plays– Large unconventional gas resources– Critical issues of technology and costs
2. Many of the concepts and technologies of CBM are applicable to other unconventional gas resources:– “Continuous” deposition– Subtle “sweet spots”– Advanced completion/stimulation– Potential for cost-efficiencies
JAF02368.PPT6 Advanced Resources International, Inc.NOV 5, 2004
MATURITY OF CONVENTIONAL GAS PLAYS
Source:• Conventional/Offshore – EIA 2001 Annual Reserve Report.• Unconventional – Advanced Resources International data base.
0.4
0
5
10
15
20
TotalDomestic
Production
OnshoreConventional/
Other
5.01.6
FederalOffshore
UnconventionalGas
6.3
19.8 4.3
U.S.
Nat
ural
Gas P
rodu
ctio
n (T
cf)
U.S.
Nat
ural
Gas P
rodu
ctio
n (T
cf)
33% of total
Source: Advanced Resources International data base.
8.5
0.5
4.51.66.5
19.44.4
8.4
2001 2002
TightGas
SandsCoalbedMethane
GasShales
5.0
4.0
3.0
2.0
1.0
0.0
JAF02368.PPT7 Advanced Resources International, Inc.NOV 5, 2004
MATURITY OF CONVENTIONAL GAS PLAYS
Decline In Gulf Of Mexico OCS Reserves And Production
*Wet, after lease separation
+0.8+2.3-3.5-5.9Change
2000-2004
4.1(e)10.06.6(e)12.52004
4.210.57.814.82003
3.37.710.218.42000
(Beginning of Year)
Production*(Bcfd)
Reserves*(Tcf)
Production*(Bcfd)
Reserves*(Tcf)
GOM SlopeGOM Shelf
JAF02368.PPT8 Advanced Resources International, Inc.NOV 5, 2004
LARGE UNCONVENTIONAL GAS FIELDS
Nine Of The Twelve Largest U.S. Natural Gas Fields Are Unconventional Gas Fields**
0.5Gas ShaleMichigan, MIAntrim9
*Recent discoveries or rediscoveries.**Fifteen of twenty largest gas fields, based on proved reserves, hold unconventional or high CO2 gas.Sources: EIA 2002 Annual Reserve Report; Advanced Resources Data Base.
0.4Tight Gas/ChalkEast Texas, TXGiddings11
0.5Tight Gas SandsDenver, COWattenberg/DJ Basin10
0.5Tight Gas SandsEast Texas, TXCarthage8
0.6Gas ShaleFt. Worth, TXNewark East*6
0.6Tight Gas SandsGGRB, WYJonah*5
0.9CBMPowder River, WYWyodak/Big George*4
1.6CBM/Tight Gas SandsSan Juan, NMBasin2
2.3CBM/Tight Gas SandsSan Juan, NM/COBlanco/Ignacio-Blanco1
Year 2002Production
(Bcfd)Type of
ResourceBasin/StateField NameRank(in 2002)
JAF02368.PPT9 Advanced Resources International, Inc.NOV 5, 2004
LARGE DOMESTIC COALBED METHANE RESOURCES
Wind River6 Tcf
Greater Green River
84 Tcf(+230 Tcf/Deep)
Uinta10 Tcf(2.0)
Piceance81 Tcf(0.1)
San JuanFruitland Coal = 50 TcfMenefee Coal = 34 Tcf
(17.8) Raton12 Tcf(1.6)
Cherokee/Arkoma10 Tcf(0.3)
Warrior19 Tcf(2.5)
CentralAppalachia
5 Tcf(1.7)
NorthernAppalachian
61 Tcf
Illinois21 Tcf
Powder River75 Tcf(3.0)
Forest City
*LEGEND5 Tcf, Gas In-Place(1.7) Produced/Reserves, Tcf
As of 2002
Hanna-Carbon15 Tcf
Gulf Coast6 Tcf
Western Washington24 Tcf
Source: Advanced Resources Int’l. (2002)
JAF02368.PPT10 Advanced Resources International, Inc.NOV 5, 2004
R&D AND PERFORMANCE BASED INCENTIVES LAUNCHED THE COALBED METHANE PLAY
0 10
196
956
1,600
0
200
400
600
800
1000
1200
1400
1600
1800
1980 1985 1990 1995 2003
Years
CB
M P
rodu
ctio
n (B
cf p
er Y
ear)
Source: Advanced Resources Int’l (2004), EIA (2004)
Jaf2
0040
24.X
LS
1982-1992:Sec. 29 Tax
Credits
1992-TodayCBM Commercial w/o Incentives
1980-1992DOE/GRI
Coalbed R&D
FutureECBM w/Carbon Sequestration
JAF02368.PPT11 Advanced Resources International, Inc.NOV 5, 2004
NPC STUDY SHOWS SIZE OF RESOURCE BASE AND PROGRESS IN TECHNOLOGY HAVE LARGEST IMPACTS
High Resource Base P10
High Supply Technology
Increased Access
High LNG Imports
Less Access
No Alaska Pipeline
Low LNG Imports
Change in Price vs. Reactive Path
Values shown are averages for the 2011 to 2025 periodSource: NPC, 2003
Change in Volumes (Bcf/Yr)Vs. Reactive Path
-4.00 -2.00 0.00 +2.00 +4.00 -2.00 0 +2.00 +4.00-4.00
Static Supply Technology
Low Resource P90
JAF02368.PPT12 Advanced Resources International, Inc.NOV 5, 2004
2. A LOOK AT KEY PLAYS
JAF02368.PPT13 Advanced Resources International, Inc.NOV 5, 2004
Areas of CBMDevelopment
Areas of CBMDevelopment
• Currently producing at 0.9 Bcfd, up 20 fold from five years ago.
• Over 12,000 producing CBM wells.
• Play expanding to deeper area of basin.
• Multi-seam technology essential for future development.
COALBED METHANE
DEVELOPMENT, POWDER RIVER
BASIN
JAF02368.PPT14 Advanced Resources International, Inc.NOV 5, 2004
END-OF-YEAR CBM PRODUCTION AND PRODUCING WELLS FOR POWDER RIVER BASIN *
360 6521,683
4,506
8,197
10,727
0
2,000
4,000
6,000
8,000
10,000
12,000
Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02
Num
ber o
f CBM
Well
s
12,144
Dec-03
54111
232
547
829
958
CBM
Prod
uctio
n Ra
te (M
Mcf/D
ay)
943
Dec-03
1,20014,000
1,000
800
600
400
200
0Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02
*Wyoming portion of the PRB only.Source: Wyoming Oil and Gas Commission (WOGCC) May, 2003.Source: Wyoming Oil and Gas Commission (WOGCC) May, 2003.
JAF02368.PPT15 Advanced Resources International, Inc.NOV 5, 2004
200’
600’
800’
1,000’
1,200’’
1,400”
400’
200’
600’
800’
1,000’
1,200’’
1,400
400’
24 Miles 12 Miles Mine
Williams Draw Area2000 Exploration
Bonepile Area1998 Step-Out
Marquis AreaDevelopment
BIG GEORGE
WYODAK
ANDERSON
FELIX
Datum
120’ Average
Deeper Coals40’-140’
65’ Average
A A’
JAF01860.CDR
PRB COALBED METHANE FAIRWAYS
Big George Exploration Fairway Wyodak Development Fairway
Wyodak Well250-300 Mcfd
0.3 Bcf
Big George WellPotential for Higher Rates and Reserves
JAF02368.PPT16 Advanced Resources International, Inc.NOV 5, 2004
MONTANA
WYOMING
Gillette
Buffalo
Sheridan
Favorable for Multi-Seam Technology
Favorable for Multi-Seam Technology
Uneconomic Without Multi-
Seam Technology
Uneconomic Without Multi-
Seam Technology
Source: Submitted to State of Wyoming by one of the basin’s main CBM operators.
SINGLE- SEAM WELL COMPLETIONS ARE
INADEQUATE
Northern portion of PRB CBM play marginally economic with current technology.
Illustrates critical need for multi-seam well completion technology for expanding the Powder River Basin CBM play.
JAF02368.PPT17 Advanced Resources International, Inc.NOV 5, 2004
BENEFITS OF OPTIMUM MSC TECHNOLOGY FOR THE POWDER RIVER BASIN CBM PLAY
The Volume of Economically Recoverable CBM from the Powder River Basin Depends Greatly on the Realized Wellhead Price and Progress in Technology
SCENARIO #2Economically Recoverable Resource,
Declining Basis Differential
SCENARIO #1Economically Recoverable Resource,
High Basis Differential45.045.0
16.9
38.4
Multi-SeamTechnology
Multi-SeamTechnology
24.3
2.7
40.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
CurrentTechnology
CurrentTechnology
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
JAF02368.PPT18 Advanced Resources International, Inc.NOV 5, 2004
• Core Area. Area of existing drilling and production.
• Extension Area #1. Area of emerging drilling and production.
• Extension Area #2. Production not established.
Total Barnett Shale gas production area covers over 6,000 mi2 with three plays:
Wise Denton
Parker Tarrant
Montague Cooke
Jack
Hood Johnson
Dallas
Collin
GraysonClay
Palo Pinto
Erath SomervellEllis
HillBosque
Rockwall
Kaufman
Navarro
Hamilton
Archer
Young
Stephens
Eastland
Comanche
Mills
Coryell
LampasasSan SabaMcCulloch
Coleman Brown
Callahan
Shackelford
Throckmorton
Baylor
Wichita
McLennan
Wilbarger
Tillman
JacksonHarmon
Hardeman
Foard
Knox
Haskell
Jones
Taylor
Runnels
Concho
Mason
Menard
Kimble
Kerr
Gillespie
LlanoBurnet
Blanco
Kendall
BanderaReal
Muenster Arch
Qua
chita
Thr
ust F
ront
OK
TX
Llano Uplift
Eastern Shelf
Red River Arch
#
USGS Bend Arch-Fort Worth Basin Boundary
#100 ftBarnettIsopach
#
Western limit ofViola/Simpson
Extension #1Extension #1
Extension #2Extension #2
Core AreaCore Area
BARNETT SHALE RESOURCE AND
PLAY AREAS
JAF02368.PPT19 Advanced Resources International, Inc.NOV 5, 2004
FORT WORTH BASIN – BARNETT SHALEGEOLOGY/STRATIGRAPHY
• Maximum 1,000 ft thick near SW fault boundary of S. OK aulocagen. Thins to the SW as it crops out along the flanks of Llano uplift.
• Average shale thickness is 500 ft in current producing trend. Lower 200-300 ft section originally completed, with upper 100-200 ft added in recent wells.
• Production limit set at 100 foot shale thickness contour and 1.1% Ro contour.
JAF02368.PPT20 Advanced Resources International, Inc.NOV 5, 2004
SUMMARY: FORT WORTH BASIN-BARNETT SHALE
• The Barnett Shale emerged as an interesting new gas shale play in the mid-1980s.
• Based on published data, as of the end of 2003, the Barnett Shale:– Producing at nearly 1 Bcfd;– Has provided 1 Tcf cumulative recovery;– Nearly 3 Tcf of proved reserves;– About 2,500 producing wells.
JAF02368.PPT21 Advanced Resources International, Inc.NOV 5, 2004
BARNETT SHALE
• Assessments of technically recoverable resources have grown steadily:
1.4 Tcf (USGS, 1990)
10 Tcf (ARI/USGS, 1998)
20 Tcf (Devon, 2003)
26 Tcf (USGS, 2004)
• Reserves per well in core area have steadily improved with refracs
• Horizontal drilling used in expansion areas.Barnett Producing Well
Devon AcreageFuture Location
OK
TX
10 Miles
Core Area
Dry Gas Prone
Oil Prone
Lower Frac Barrier Absent
JAF02368.PPT22 Advanced Resources International, Inc.NOV 5, 2004
BARNETT SHALE/NEWARK EAST FIELD
Devon Denton Creek Trading Co. No. 1 Fracture Reorientation
10
100
1,000
10,000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001Time, Years
Gas P
rodu
ctio
n, M
cf/d
JAF2003027.XLS
JAF02368.PPT23 Advanced Resources International, Inc.NOV 5, 2004
PERFORMANCE OF REFRACED WELLS
The Denton Creek Trading #1 well is the “poster child” for the refrac program:• Drilled in late 1992, deliverability testing indicated a BHP of 3,840
psig and a CAOF of 16,000 Mcfd;• Completed from 7,738’ to 8,007’ and stimulated with a large frac
containing 789,000 gal water and 1,548,000 lb sand;• From late 1992 through early 2000 (6 years), well recovered 770
MMcf, was producing 140 mcfd, and had an EUR of 1.02 Bcf;• In 2000, well was refractured, restoring gas rate to 1,000 Mcfd;
since the refracs, well has produced an additional 1 Bcf and hasan EUR of 2.20 Bcf.
JAF02368.PPT24 Advanced Resources International, Inc.NOV 5, 2004
PERFORMANCE OF REFRACTURED BARNETT SHALE WELLS*(1999-2000 PROGRAM)
*Based on analysis by Advanced Resources.**Cumulative gas recovery at date of refrac.***Cumulative gas recovery as of February 2004
1.271.920.65Average
1.511.931.420.420.291984Johnson #27
0.530.920.920.390.271984Young #26
1.622.401.720.780.711984Joleson #35
1.382.141.450.760.571992Ted Morris #14
1.211.851.030.640.391991Logan #23
1.482.001.670.520.361993Talley #12
1.182.201.691.020.771992Denton Creek #11
IncreasedRecovery
(Bcf)EURCum
Recovery***EURCum
Recovery**DateWell Name
After Refracture(Bcf)
Original Stimulation(Bcf)
JAF02368.PPT25 Advanced Resources International, Inc.NOV 5, 2004
HORIZONTAL WELL PERFORMANCE
First horizontal well, Thomas Sims #1, drilled in 1992. Two additional wells drilled in 1998, Wilson #1 and Wilson #2.
• The initial gas flow rate for Sims #1 of 400 to 500 Mcfd, lower than vertical wells, was discouraging.
• Subsequent recompletion raised the EUR for the Sims #1 well to 2.8 Bcf, giving more promise to this option; the two Wilson wells are lower performers.
• Three additional horizontal wells were drilled in 2002 and early 2003 provide the longest sustained gas production for assessing performance.
JAF02368.PPT26 Advanced Resources International, Inc.NOV 5, 2004
HORIZONTAL WELL PRODUCTION PROFILE
Barnett Shale-Horizontal WellMcCallister 16
0
20
40
60
80
100
120
0 5 10 15Months
Mon
thly
Pro
duct
ion
(MM
cf)
1
2
4
3
Dai
ly P
rodu
ctio
n (M
Mcf
d)
JAF02368.PPT27 Advanced Resources International, Inc.NOV 5, 2004
PICEANCE BASIN/MESAVERDE (WILLIAMS FORK) TIGHT GAS PLAY
T1S
Structure Contours on Top of Rollins Sandstone(TOP ILES FM)
MESAVERDE OUTCROP
N
JAF01955.CDR
RULISON310 Total Wells293 Active Wells88 MMcfd
RULISON310 Total Wells293 Active Wells88 MMcfd
MAMM CREEK355 Total Wells347 Active Wells64 MMcfd
MAMM CREEK355 Total Wells347 Active Wells64 MMcfdGRAND VALLEY/
PARACHUTE459 Total Wells452 Active Wells135 MMcfd
GRAND VALLEY/PARACHUTE459 Total Wells452 Active Wells135 MMcfd
Piceance Basin/Williams Fork is a “rediscovered” tight gas play with 1,400 wells, 800 Bcf of past production, and 1,700 Bcf of proved reserves.Reserves per well are on increase:
- 0.6 Bcf (pre-1995)- 1.1 Bcf (1999-2001)- 1.5 to 2.0 Bcf (Recent)
Undiscovered recoverable resources:- 3.1 Tcf (USGS, 2002)- 29.7 Tcf (ARI, 2004)
Future resources and technology:- Intensive resource development: 20
acres/well; full completion of stacked sands
- Improved D&C technology
JAF02368.PPT28 Advanced Resources International, Inc.NOV 5, 2004
UNCONVENTIONAL GAS RESOURCE
Gas In-Place (Bcf per Section), Williams Fork/Mesaverde, S. Piceance Basin.R92WR96W R94W
30
5070 90
110
110
130
150
170
0 5 10 15
Statute Miles
N
JAF01968.CDR
Intensive Resource
DevelopmentStudy AreaRulison Field
Case Study Area
R96W R94W R92W
SouthPiceance
Basin
T6S
T8S
T10S
JAF02368.PPT29 Advanced Resources International, Inc.NOV 5, 2004
INTENSIVE DEVELOPMENT OF MASSIVE SAND PACKAGE ENABLES SMALL AREAS TO PROVIDE
LARGE RESERVES
Intensive Field Development Pilot, Sec. 20, Rulison Field*
Expected Results from Intensive Field Development (Sec. 20, Rulison)
CLOUGH19
CLOUGH21
RMV3-20
RMV6-20
RMV25-20
RMV33-20
RMV40-20
RMV55-20
RMV58-20
RMV57-20
RMV65-20
RMV67-20
RMV201-20
RMV200-20
RMV202-20 RMV
203-20
RMV64-20
RMV66-20
NW-1
20
R94W
T6S
20 Acre Pilot Infill Wells
N
JAF01862.CDR*For wells drilled through 1997.1 Estimated Based on ARI-Tight Type Curve Model.
741.95TOTAL (38 Wells)
202.58 Wells @ <20 A/WLatest
281.716 wells @ 20 A/W1997-2000
101.76 Wells @ 40 A/W1996-1997
81.94 wells @ 80 A/W1995
42.22 wells @ 160 A/W1994
42.12 wells @ 320 A/WInitial
Reserves/Section
(Bcf)
Reserves/Well1(Bcf)Wells and SpacingDate
JAF02368.PPT30 Advanced Resources International, Inc.NOV 5, 2004
A'NORTHEAST
ASOUTHWEST
7 Stage Mesaverde Compl. 6881-8683’ grossIPF 1680 MCFD 10 BCPD 32 BWPD
FTP 2050# Compl. 6-11-96 Cum. Prod. 0.4 Bcf
4 Stage Mesaverde Compl. 5600-7468’IPF 1680 MCFD 10 BCPD 32 BWPD
FTP 2050# Compl. 6-11-96 Cum. Prod. 0.7 Bcf
5 Stage Mesaverde Compl. 5495-7426’IPF 3000 MCFD 29 BCPD 30 BWPD
FTP 2000# Compl. 12-6-95 Cum. Prod. 0.7 Bcf
4 Stage Mesaverde Compl. 5542-7370’ IPF2600 MCFD 25 BCPD 35 BWPD
FTP 1900# Compl. 9-15-95 Cum. Prod. 0.8 Bcf
BARRETT (96)RMV 40-20
SW NW Sec.. 20, T6S - R94W
BARRETT (95)RMV 55-20
SW NE Sec.. 20, T6S - R94W
BARRETT(95)RMV 58-20
NW NE Sec.. 20, T6S - R94W
BARRETT(95)RMV 33-20
NE NE Sec.. 20, T6S - R94W
APPROXIMATE TOP OF GAS SATURATED SECTION WILLIAMS FORK FORMATION
TD 8784' KB 5457' TD 7533' KB 5469' TD 7589' KB 5504' TD 7600' KB 5449'
Proposed Pilot WellRMV 201-20
Proposed Pilot WellRMV 200-20
Inte
rpre
tatio
n of
Neu
tron
Por
osity
and
Res
istiv
ity L
og
Inte
rpre
tatio
n of
Neu
tron
Por
osity
and
Res
istiv
ity L
og
Inte
rpre
tatio
n of
Neu
tron
Por
osity
and
Res
istiv
ity L
og
Inte
rpre
tatio
n of
Neu
tron
Por
osity
and
Res
istiv
ity L
og
UNCONVENTIONAL GAS RESOURCE(Cont’d)
Sand Continuity in Closely Spaced Wells, Section 20, Rulison Field.
JAF02368.PPT31 Advanced Resources International, Inc.NOV 5, 2004
DEVELOPING UNCONVENTIONAL GAS RESOURCES
Intensive Resource Development, Rulison Field Case Study Piceance Basin, Colorado
Traditional Intensive160-Acre Development
4 Wells/Section w/o Old Technology3 Bcf, 2.5% Recovery of GIP
20-Acre Development32 Wells/Section w/ New Technology
48 Bcf, 40 % Recovery of GIP
Source: Modified from Williams, 2003
JAF02368.PPT32 Advanced Resources International, Inc.NOV 5, 2004
DEVELOPING UNCONVENTIONAL GAS RESOURCES
Increasing Prospect Size with Intensive Resource Development and Advanced E&P Technology: Rulison Field Case Study.
1.5
0.9
Reserves/Well(Bcf)
3,400484 to 6~100%2,30020Future
Strategy
20031 to 285%288160TraditionalPractices
Reserves/Prospect (Bcf)
Reserves/Section
(Bcf)
No. ofCompletions
Per WellSuccess
RateNo. of WellLocations
WellSpacing
(A/W)
FieldDevelopment
Options
*For two townships (72 square miles or sections); based on Sec. 20; T6S-R94W results.
JAF02368.PPT33 Advanced Resources International, Inc.NOV 5, 2004
INTEGRATION OF GEOMECHANICS AND 3-D SEISMIC OFFERS PROMISE FOR DEFINING “SWEET SPOTS”
(Tight Gas, Rulison Field, Piceance Basin)
Inside Envelope (12 wells) 2.5 Bcf/Well
• Savage Fed . 1-3 2.0 Bcf 2.8 Bcf
Outside Envelope (23 wells) 1.2 Bcf/Well
• Fed. RU 34-6 0.2 Bcf 0.3 Bcf• Fusiler 2-11 0.8 Bcf 1.5 Bcf
Natural FractureCluster Area
Cum.Recovery
Est. Ult.Recovery
Results of Geomechanics/3-D Seismic Technology Test
33. 37. 39. 36. 36. 46. 69. 102. 141. 159. 152. 137.
48. 67. 74. 77. 78. 84. 117. 206. 206. 416. 426. 278.
67. 104. 125. 146. 168. 200. 314. 787. 1480. 517. 311. 231.
87. 151. 196. 253. 337. 510. 1040. 2989. 715. 397. 261. 206.
105. 203. 285. 406. 615. 1114. 3095. 690. 419. 260. 185. 158.
116. 254. 387. 607. 1041. 2493. 472. 333. 227. 149. 112. 108.
113. 292. 484. 837. 1724. 41. 169. 158. 118. 80. 63. 68.
92. 303. 529. 1001. 15760. 23. 95. 101. 81. 58. 47. 45.
100. 277. 435. 662. 70. 72. 97. 92. 74. 55. 42. 34.
163. 211. 218. 140. 66. 90. 93. 83. 67. 50. 37. 28.
JUHAN1
GV15-36
FED 7-94-SJ-1
FED 7-94-SK-2
YOUBERG31-12V
RULISON FED1-13KEPHART F
2-15
RMV16-35
RMV20-35
RMV15-35
JUHAN22-35
RU 11-7
FEDERAL1-43
SAVAGE1-13
SAVAGE1-24
SAVAGE1-22
SAVAGE1-32
SAVAGE1-31
SAVAGE
1-21
SAVAGE1-34
SAVAGE1-44
FEDERAL-RU14-6
FEDERAL1-43
SAVAGE1-14
SAVAGE1-13
SAVAGE1-22
SAVAGE1-32
SAVAGE1-31
SAVAGE1-21
SAVAGE1-34
SAVAGE1-44
YOUBERG RU13-7
YOUBERG RU22-7
HUGGARD2-13
FEDERAL1-42
RMV48-35
39.28. 0
-107.50. 0 -107.48. 0
miles0.2 0. 0.2 0.4 0.6 0.8 1.
T5
T7
T4T3
T6
T9
T10
T8
T1
T2
12
11 12
5
6
7
8
17
35 36 31 32
T7S
T6S
R94W R93W
N
A
A'
NW4
NW5(?)
Outine of Moderate IntensityNatural Fracture Envelope
Outine of High IntensityNatural Fracture Envelope
FUSILIER2-11 SAVAGE FED
1-3
FEDERAL RU34-6
JAF1746.CDR
Source: Advanced Resources Int’l (2001)
JAF02368.PPT34 Advanced Resources International, Inc.NOV 5, 2004
3. Concluding Remarks
JAF02368.PPT35 Advanced Resources International, Inc.NOV 5, 2004
CONCLUDING REMARKS
• “The future is not what it used to be” - - it’s unconventional.
• There is not a shortage of resources, but a shortage of ideas and technology.
• The wildcatter of the future will be exploring for the “sweet spots” in unconventional gas prospects.
• Each unconventional gas play has unique challenges, requiring its own base of data and knowledge.
• The successful unconventional gas producers will be those that invest in or rapidly adopt “best technology”.
JAF02368.PPT36 Advanced Resources International, Inc.NOV 5, 2004
U.S. NATURAL GAS PRODUCTION, BY SOURCE 1990-2025 (Tcf)
10
Source: Based on data from Energy Information Agency (2004).
Lower 48 NAconventional onshore
Lower 48 AD
Alaska
Lower 48 NA unconventional
Lower 48 NA offshore
PROJECTIONSHISTORY
8
6
4
2
01990 1995 2002 2010 2015 2020 2025
JAF02368.PPT37 Advanced Resources International, Inc.NOV 5, 2004
AdvancedResources
Internationalwww.adv-res.com
Office LocationsWashington, DC4501 Fairfax Drive, Suite 910Arlington, VA 22203Phone: (703) 528-8420Fax: (703) [email protected]
Houston, Texas9801 Westheimer, Suite 805Houston, TX 77042Phone: (713) 780-0815Fax: (713) 780-3819
Denver, Colorado1401 Seventeen St., Suite 400Denver, CO 80202Phone: (303) 295-2722Fax: (303) 295-2833
Advanced Resources International, Inc.