1. 2017 capl conference what will be unconventional next
2017 capl conference what will be unconventional next? “Well Completions” Art Flaws VP Drilling and completions Canbriam Energy Inc. Sept 2017

2. Agenda Canbriam: Background and facts
Common completions systems used in Unconventional plays
What’s on the horizon?
Future Challenges for the Industry

3. Canbriam: Background
Private Company: Formed in 2007/2008 to chase “unconventional plays”
Completed two Farm-ins in NEBC
Farrell Creek 94-B-1 (Montney)
- Dry gas
- Over pressured kpa/m
Altares 94-B-8 (Montney)
- Liquids rich gas (~15 bbls/mmcf LPG and 30 to 50 bbls/mmcf free Condie)
- ~300m of Montney Fm.
- Being developed over 4 targets
- over pressured to highly over pressured (18 to 23 kpa/m)
Processing Capacity ~40,000 boe/day through 2 – 100% owned refrigeration plants
Current production capability ~35,000 boe/d (80% gas)

4. Completions in Unconventional plays (General)
Completion design
Completion system – “connecting the wellbore to the reservoir”
Fluid systems - unconventional plays predominantly frac’d with Slickwater systems
Sand is transported by fluid velocity and NOT suspension as with older style gelled fracs historically performed on conventional reservoirs
Water is the main component (fresh, produced or blend)
Chemical program
Friction reducer
Scale control, biocides, scale inhibitor, surfactants
Stimulation design – Stage spacing (m), proppant type and loading (Tonnes/m), pump rate (m3/min)
Some Unconventional plays are being frac’d with slightly gelled fluid to provide viscosity to gain frac width and help carry higher concentrations of sand
This presentation will discuss at a high level the different technologies being used to contact the reservoir

5. Common Completion systems used in Unconventional Plays
Plug and Perf (P&P)
Open Hole Ball Drop (OHBD)
Cemented Sleeve Ball Drop (CSBD)
Cemented Sleeve Pinpoint Annular (CSPA)
Disclaimer:
Everyone has their favorite system that works for them in their area.
Not all completion systems are applicable in all areas due to: Depth, Formation, Pressure, Drilling challenges

6. Plug and Perf (P&P)
Casing Frac
Casing is cemented full length during drilling operation
Perf guns and bridge plugs are run on wireline (pumped down)
The plug is set above the last frac interval
The stage is perforated in 3-5 intervals then the guns are pulled to surface
The stage is frac’d and the process is continued for the rest of the well
Widely used in Canada and the US
Advantages
Proven technology
High rate: resulting in high sand concentrations
Suitable for many casing sizes and pressures
Theoretically no limit to HZ length
Disadvantages
Frac efficiency is poor (not all perfs are stimulated) resulting is inconsistent stimulation of the reservoir
Poor entry efficiency can create large frac length impacting offset wells
Casing is cemented full length during drilling operation
Perf guns and bridge plugs are run on wireline (pumped down)
The plug is set above the interval just frac’d
Stage is perforated in 3-5 intervals then the guns are pulled to surface
The stage is frac’d and the process is continued for the rest of the well
Widely used in Canada and the US
Advantages
Proven technology
High rate: resulting in high sand concentrations
Suitable for many casing sizes and pressures
Theoretically no limit to HZ length
Disadvantages
Frac efficiency is poor (not all perfs are stimulated) resulting is inconsistent stimulation of the reservoir
Poor entry efficiency can create large frac length impacting offset wells
20-30 m Perf Spacing
80-90 m Stage Spacing, 3-4 Perf Clusters

7. Open Hole Ball Drop (OHBD)
Casing Frac
System consists of packers and ball seats run as part of the casing string
Packers are hydraulically set in the HZ and the casing is cemented above the packers
Widely used in Canada and the US
Advantages
Proven technology
High rate resulting in High sand concentrations
Suitable for many casing sizes and pressures
Cost effective: a well can be frac’d in a short period of time
Disadvantages
Since a large section of the Hz is open, the exact location of frac is unknown
Due to limited ball/seat sizes and stage spacing, Hz length is limited
More on this RE: Hybrid systems
Courtesy of Weatherford

8. Cemented Sleeves Ball Drop (CSBD)
Casing Frac
System consists of sleeves and ball seats run as part of the casing string
The casing is cemented full length
Can be single entry point or multiple entry points to simulate limited entry P&P
Gaining momentum in Canada and the US
Advantages
Emerging technology in shallow lower pressure reservoirs
High rate resulting in High sand concentrations
Cost effective: a well can be frac’d in a short period of time
Disadvantages
Currently limited to lower pressure reservoirs
Due to limited ball/seat sizes and stage spacing, Hz length is limited
More on this RE: Hybrid systems
Courtesy of Trican

9. Cemented Sleeves Annular Frac (CSAF)
System consists of sleeves or ports run as part of the casing string
Casing is cemented full length
Frac Operation consists of combination Coil and Frac ops.
Single sleeve is located and opened by a tool located at the end of the coil
Frac is pumped down the casing/coil annulus
Gaining momentum in Canada and the US
Advantages
Pinpoint fracturing - exact location of frac is known
Overcomes inefficiency of other completion systems
Theoretically unlimited number of sleeves can be run
High sand concentrations
Cost effective - lower pump rates result in lower horsepower requirements
Downhole pressure is monitored during the frac via the coil
Ports can be closed after stimulation
Dual downhole pressure gauges can be used to optimize stage spacing of future wells
Disadvantages
Frac rates can be limited by Hz length (friction)
Hz length limited by coil length and well trajectory
Courtesy of NCS Multistage

10. Casing Frac or combination of casing and annular fracs
Hybrid Systems
Casing Frac or combination of casing and annular fracs
Multiple systems are run as part of the casing string
Usually consists of a ball drop style of completion at the toe and P&P or Annular frac system for the heel section
Gaining momentum in Canada and the US
Advantages
Longer laterals can be completed reducing overall well costs
Theoretically unlimited number of intervals can be completed
Disadvantages
D&C operations become higher risk with longer laterals and multiple completions systems run

11. What’s on the Horizon? Emerging Technology
Longer Laterals to reduce overall development costs, enhance EUR and increase IRR
The majority of the drilling costs are spent getting down to the zone of interest
Innovation in Drilling and Completion technologies have made this possible
More aggressive stimulations to increase IP and EUR
Companies experimenting with higher proppant loading and shorter stage spacing resulting in more fracs
Tools/techniques to help increase frac efficiency and save money
Advances in frac chemistry, fluid systems and Proppant types
Micro-seismic and Passive Frac Imaging (PFI) for optimized frac placement
Downhole Fiber optics to monitor frac location
3D Seismic interpretation to better define reservoir characteristics
3D Reservoir modelling integrated with 3D seismic to optimize well spacing and recoveries
SMART completion systems
ReFrac Technology

12. Future Challenges for the Industry
Unconventional reservoirs are highly variable.
Unconventional plays span large areas
reservoir quality and fluid types vary widely - multiple completion systems are effective
Once a resource play is identified, the completion system must be tailored for the specific area; a learning curve is required.
Water usage
Parent/Child interaction
Becoming more of an issue as infill development intensifies
Contributing factors: reservoir thickness, well spacing and age of “parent wells”
Cracking the nut on normally pressured (or close to normally pressured) unconventional reservoirs (especially liquids rich reservoirs)
Companies are testing different fluid systems to make these plays work
Long term production has been a challenge

13. Appendix

14. Parent/Child interaction
Child wells: being completed
Parent wells: offset producers