GOOD ECONOMICS GIVE A LIFT TO NATURAL GAS PLAY IN MONKMAN AREA
The economics of the Monkman gas play in Northeast British Columbia are turning out to be as successful as the geology.
Careful planning and precise drilling are reining costs despite mountainous terrain and tricky structures.
BP Canada Resources' Ted Bogle says well costs in the area have been cut as much as 40% from a decade ago. Recent wells cost $4.5-6 million (Canadian), compared with previous costs of $8-10 million.
Wells drilled into the Triassic tip fold structures in the region typically have target depths of 6,600-11,500 ft.
Seismic data acquisition costs can exceed $40,000/ mile. Helicopter portable recording equipment has been used in the rugged terrain.
Good seismic data are essential to defining and hitting targets in the Pardonet and Baldonnel formations, made up mainly of dolomite and sandy dolomite interbedded with sand, silt, and limestone.
TRIMMING COSTS
Bogle says Monkman region wells are still costly because of the terrain but large reserves and good deliverability have kept finding and development costs relatively low.
Air hammer drilling in the upper portion of holes has speeded operations and helped cut drilling time - and thus costs - to 60-70 cays from 90-100 days.
BP, as operator, has used different casing configurations and reduced drillbit sizes for cost control.
The company also is mixing gas moved by pipeline to a processing plant at Pine River to keep acid content to about 20% and thus reduce processing costs. Acid content from wells can range as high as 50%. Processing costs can account for as much as 75% of operating costs, so acid content is a critical factor.
Bogle credits BP's marketing department for an effective job in selling gas to contract and spot buyers in the British Columbia and export markets.
Ivor Bond, exploration vice-president for Ocelot Energy Inc., says drillsites have been chosen so wells can be tied in to pipelines in the shortest possible time. Wells generally are tied in within 18 months. Several were tied-in in less than 1 year.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.