SOS 2015 DECK.key - Shale Play Water Management

Experience with a
Centralized Brine-Treatment
Facility
Rex E Crick
Sionix Oilfield Solutions
Culbertson, MT
Organization
TOTAL BAKKEN SYSTEM
•
Geology & Geography
•
Reserves
•
Technology
•
Economics
BRINE TREATMENT FACILITY (MONTANA)
•
Location
•
Process
•
Products
•
Results
BAKKEN TPS
(Total Petroleum System)
BAKKEN STRATIGRAPHY
BAKKEN STRUCTURE
RESERVE ESTIMATES
(Bakken TPS)
BILLION BOE
USGS 2008
4.02
USGS 2013
8.63
CONTINENTAL RES. 2014
60
WELLS TO BE DRILLED
(Bakken TPS)
WELLS REQUIRED
57,000
WELLS TODAY
13,000
TO BE DRILLED
44,000
ADVANCES IN
TECHNOLOGY
•
Lease tracks & lease/pad design
•
Orphan capture
•
Infilling
•
Decreased well spacing
•
Stacked Fracks
•
Fat Fracks
ADVANCES IN
TECHNOLOGY RESULT IN:
•
Well costs down by as much as 25%
•
Spud to rig release time as low at 15-19 days
•
Initial and ultimate recovery up by 20-45%
•
Example:
Average Lateral (ft) Average Fluid (bbl)
2006
6,167
9,925
2014
9,719
89,747
1,280 block
Ultimate with Orphan
Capture
Infilling
Infilling
Stacked Fracks
Fat Fracks
OIL PRICES & HEDGING
The major players are strong:
9 of 10 are public companies
COMPANY
HEDGED %
AVERAGE $/BBL
Halcon
88% of 2015
production
$87.29
Whiting
Mixed
$55 to $70
Oasis
50%
$88 (floor)
Perspective:
• Companies report 25+% internal rate of return at $50/bbl.
• some Bakken wells break-even as low as $25-27/bbl.
BAKKEN BOTTOM-LINE
•
Decades of reserves
•
Overall E&P costs declining per well
•
Production increasing per well
•
Break-even crude price declining
•
Demand for water is unabated
•
Produced volume increasing
•
Water management opportunities are long-term and
challenging
SOS
Sionix Oilfield Solutions
WATER REFINERY
BASIC PROCESS
USUAL WAY
SOS WAY
TURBIDITY
TSS
TDS
QUALITY vs COST