Horn River Basin Unconventional Shale Gas Play Atlas JUNE 2014 | BC Oil and Gas Commission About the BC Oil and Gas Commission
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Horn River Basin Unconventional Shale Gas Play Atlas JUNE 2014 | BC Oil and Gas Commission About the BC Oil and Gas Commission The BC Oil and Gas Commission (Commission) is the single-window regulatory agency with responsibilities for regulating oil and gas activities in British Columbia, Purpose of Report including exploration, development, pipeline transportation and reclamation. Table of Contents Horn River Basin Unconventional Shale Gas Play Atlas The Commission’s core services include reviewing and assessing applications for About the BC Oil and Gas Commission 2 industry activity, consulting with First Nations, cooperating with partner agencies, and The Commission’s regulatory role includes understanding the impacts and distribution of the ensuring industry complies with provincial legislation and all regulatory requirements. natural gas and petroleum resource base in the province. Horn River Basin Unconventional Shale Gas Play Atlas 3 The public interest is protected by ensuring public safety, respecting those affected by Background 4 oil and gas activities, conserving the environment, and ensuring equitable participation This report includes regional mapping of the Muskwa, Otter Park and Evie Formations within the in production. Unconventional Gas in the Horn River Basin 4 Horn River Basin (HRB). Geology for Horn River Basin 5 For additional information regarding this report please contact: The series of maps were derived from non-confidential well and core data to aid in the Reservoir Characteristics 6 delineation and distribution of these formations within northeast British Columbia. Each map in June Barker this report links to a larger map available online at www.bcogc.ca. Drilling And Completions 6 Senior Petroleum Geologist Water Usage and Disposal 6 [email protected] Regional Cross Sections 7 250-419-4400 Maps Commission Mission 1: Horn River Basin: Muskwa Otter Park Pool Designation Areas 9 We regulate oil and gas activities for the benefit of British Columbians. Figure 1: Unconventional Gas Play Trends of NE British Columbia 2: Horn River Basin: Evie Pool Designation Areas 10 We achieve this by: 3: Horn River Basin: Top Muskwa Structure 11 • Protecting public safety, • Respecting those affected by oil and gas activities, 4: Horn River Basin: Muskwa Otter Park Isopach 12 • Conserving the environment, and 5: Horn River Basin: Evie Isopach 13 • Supporting resource development. 6: Horn River Basin: Otter Park Marl Isopach 14 Through the active engagement of our stakeholders and partners, we provide fair and timely decisions within our regulatory framework. 7: Horn River Basin: Muskwa Otter Park Evie Total Net Pay 15 We support opportunities for employee growth, recognize individual and group 8: Horn River Basin: Muskwa Otter Park Temperature 16 contributions, demonstrate accountability at all levels, and instill pride and confidence 9: Horn River Basin: Muskwa Otter Park Temperature Gradient 17 in our organization. 10: Horn River Basin: Evie Temperature 18 We serve with a passion for excellence. 11: Horn River Basin: Evie Temperature Gradient 19 Vision 12: Horn River Basin: Muskwa Otter Park Pressure 20 To be the leading oil and gas regulator in Canada. 13: Horn River Basin: Muskwa Otter Park Pressure Gradient 21 Values 14: Horn River Basin: Evie Pressure 22 Respectful 15: Horn River Basin: Evie Pressure Gradient 23 Fort Nelson Accountable 16: Horn River Basin: Muskwa Otter Park TOC 24 Effective Fort St. John 17: Horn River Basin: Evie TOC 25 Efficient Dawson Creek 18: Horn River Basin: Muskwa Otter Park CO2 Per Cent 26 Responsive 19: Horn River Basin: Evie CO2 Per Cent 27 Transparent Kelowna Victoria BC Oil and Gas Commission | Horn River Basin Unconventional Shale Gas Play Atlas | June 2014 3 Background Geology for Horn River Basin Unconventional Gas in the Horn River Basin The Horn River Basin is an unconventional shale play targeting Figure 2: Horn River Basin Production History Figure 4: Horn River Basin Geology dry gas from mid-Devonian aged over pressured shales of the The Horn River Basin encompasses approximately 1.1 million Muskwa, Otter Park and Evie Formations. The Horn River Basin hectares of land in northeastern British Columbia, north of Fort is confined to the west by the Bovie Lake Fault Zone and to the Nelson and south of the Northwest Territories border. Natural gas East and South by the time equivalent Devonian Carbonate Barrier exploration and development occurring in the Horn River Basin Complex. Stratigraphically, the organic rich siliciclastic Muskwa, over the past few years has been unconventional in nature. The Otter Park and Evie shales of the Horn River group are overlain by advent of horizontal drilling combined with multi-stage hydraulic the Fort Simpson shale and underlain by the Keg River platform fracturing increased interest in unlocking the potential of shale gas. carbonates. Prior to 2005, operators were targeting Devonian pinnacle reefs, with the basinal shales then considered a seal and source rock for The Evie Shale consists of dark grey to black, organic rich, pyritic, gas. After 2005, operators began applying horizontal drilling and variably calcareous and siliceous shale. This shale exhibits multi-stage hydraulic fracturing technology from the analogous relatively high gamma ray readings and high resistivity on well Barnett shale in Texas to investigate economic recovery in the Horn logs. The unit is at its thickest immediately west of the barrier reef River Basin. complex, generally thinning westward towards the Bovie Lake Fault Structure. Production in the Horn River Basin has been steadily increasing as shown in Figure 2. As of December 31, 2012, the Horn River The Otter Park Shale thickens considerably in the southeast Basin represented 28 per cent (11.1 tcf) of the province’s remaining corner of the Basin, characterized by increasingly argillaceous and recoverable raw gas reserves. In 2012, 0.15 tcf was produced from calcareous facies. Limestone marls were deposited at the expense the Muskwa-Otter Park and Evie Formations, accounting for 10 of shale. The unit thins to the north and west, exhibiting higher per cent of total production in the province. By December 2013, gamma ray readings. daily gas production reached 580 mmcf per calendar day from 203 producing wells. The Muskwa Shale consists of grey to black, organic rich, pyritic, siliceous shale, and is also characterized by high gamma ray As of December 2013, 291 horizontal and 78 vertical wells have readings and high resistivity on well logs. A gradational contact been drilled across the Horn River Basin targeting shale gas. The Figure 3: Daily Production Split for Northeast British Columbia (December 2013) Figure 5: Horn River Basin Pool Designation Areas exists between the overlying silt-rich shale of the Fort Simpson play concept has extended several kilometres south and east of Formation. Generally, the Muskwa Formation thickens westward the pre-existing production as a result of 2012/13 drilling activity. Denotes wells drilled and the pool designation areas (PDAs) for the Muskwa-Otter towards the Bovie Lake Structure. This shale thins and extends A considerable quantity of well data, held confidential under the Park (Blue outlines) and Evie (Green outlines). over the top of the barrier reef complex and continues eastward terms of Special Project Innovative Technology approvals, is now into Alberta, stratigraphically equivalent to the Duvernay Shale. publicly available. Muskwa and Otter Park formations were mapped in combination and analyzed as one interval. From a geomechanical perspective, the Muskwa and Otter Park Formations are considered as one flow unit after hydraulic fracturing with few barriers to fracture propagation. The Evie formation was evaluated and mapped as a separate unit. Mapping completed thus far has defined areas of reservoir variability within the Basin, particularly within the Otter Park Formation. Net Pay values mapped for each interval were derived from qualitative analysis of available open hole logs and should be considered estimates only. In general, gas pay is identified by increasing gamma ray, resistivity and density values and decreasing neutron response. 4 BC Oil and Gas Commission | Horn River Basin Unconventional Shale Gas Play Atlas | June 2014 BC Oil and Gas Commission | Horn River Basin Unconventional Shale Gas Play Atlas | June 2014 5 Regional Cross Sections Reservoir Characteristics A general range of reservoir parameters is provided in the Table 1: Horn River Shale Reservoir Parameters Regional Cross Section A - Maxhamish to Snake 200/c-001-L 094-O-15/00 200/b-055-B 094-O-15/00 200/a-076-F 094-O-09/02 200/c-015-G 094-O-09/00 200/a-029-B 094-O-09/00 200/c-100-G 094-O-08/00 200/c-089-G 094-O-08/00 200/d-085-G 094-O-08/00 200/a-045-G 094-O-08/00 200/d-094-A 094-O-08/00 200/d-099-I 094-O-01/00 200/b-052-I 094-O-01/00 200/d-020-F 094-J-16/00 following Table 1. A <=18243.5m=> <=26655.6m=> <=9099.9m=> <=8986.0m=> <=12054.5m=> <=1166.6m=> <=3147.1m=> <=4503.9m=> <=8857.3m=> <=9760.6m=> <=6058.6m=> <=44963.0m=> A' 24059 24574 25511 22518 22556 22526 24355 24325 24973 23498 25743 26613 26006 HCAL (MM) RHOZ (K/M3) NPOR (V/V) NPOR_LIM (V/V) DPHI_LIM (V/V) DPHI_LIM (V/V) NPOR_LIM (V/V) NPHI (PU) HNPO_LIM (V/V) NPOR_LIM (V/V) NPRL (PERC) CNCLS (PU) PZLS (pu) DPHI_LIM (V/V) 125.00 375.00 2000.00 3000.00 0.45 -0.15 0.45 -0.15 0.45 -0.15 0.45 -0.15 0.45 -0.15 45.00 -15.00 0.45 -0.15 0.45 -0.15 45.00 -15.00 45.00 -15.00 45.00 -15.00 0.45 -0.15 GR (GAPI) TNPH (V/V) GR_S (GAPI)