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EORI Wyoming Joint Producers Meeting

CO2 in Wyoming

The Beaver Creek Madison CO2 Project

NORWEST QUESTA ENGINEERING June 26, 2007

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Beaver Creek Madison CO2 Flood Project

Overview

• Geographic Setting• Geologic and Reservoir setting• History of the field & evaluation• Phased Evaluation Methodology• Project Status

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COCO22 Floods in WyomingFloods in Wyoming

Merit EnergyWertz/Lost Soldier

Anadarko Patrick Draw Monel Unit

AnadarkoSalt Creek Field

Devon Beaver Creek Field

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Beaver Creek Madison Structure Beaver Creek Madison Structure

10

1516

9

ApproximateOil - Water

Contact

-5700- 5700

0065-

0036-

-620

0

0016

-

0016-

0006

-

0006-

- 590

0

0095-

0085

-

- 58 00

Active Oil Producer

Active Water Injector

W

4317

31 22

55

403844

3266

41 68

11

5614

39-M45 46

30

42

52

34

5769

77

81

96

107

104

117

127

124137

136139

143146

147

FEET

0 1,518

PETRA 12/13/2005 5:04:00 PM

Geologic CharacteristicsLimestone/Dolomite MatrixApprox. Prod. Area = 974 AcresApprox. Oil Column Height = 820’Avg. Net Pay Thickness = 212’Avg. Depth to Madison Top = 11,100’

Reservoir CharacteristicsPorosity = 10%Permeability = 9 mdReservoir Temp = 234o FBHPi = 5301 psiaGORi = 288 scf/bblBubble Pt. = 673 psiaSwi = 10%Oil Gravity = 39.5

o API

Type Log

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Madison Log Section(GR/ Bulk Density)

• BCU #127 Well• Top @ 11224’ MD• Bottom @ 11723’ MD

Madison Base

F Zone Top

E Zone Top

D Zone Top

C Zone Top

B Zone Top

A Zone Top

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Backthrust(Eastern Fault)

Madison (HW)Main Block

Madison (FW)Subthrust

Beaver Creek Structure Viewed From the South

Beaver Creek Madison StructureBeaver Creek Madison Structure

3D Seismic View

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Background & Evaluation History

• Madison reservoir discovered January 1954• Waterflood initiated in 1959 with peripheral flood• Water injection expanded to pattern flood through 1964 -• Reservoir developed with 36 completions• Currently have 21 active wells including 12 producers and 9

injectors• Current Production of 300 bopd, 29,000 bwpd & 13,000 bwipd• CO2 flood potential originally identified in Amoco’s 1987 CO2

Feasibility StudyDetermined marginally economic in 1987(low oil price)Identified need to review fracture intensityObtain measured rel/perm and rock data

• Devon revived the project idea in January 2005

Beaver Creek Madison FieldBeaver Creek Madison Field

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Beaver Creek Madison UnitProduction History

10

100

1,000

10,000

100,000

Jan-50 Jan-60 Jan-70 Jan-80 Jan-90 Dec-99 Dec-09

Mon

thly

Vol

umes

(Bpd

, Mcf

d)

OilGasWaterWINJ

Main Block (Target)OOIP = 109 MMboCum Oil = 42.5 MMbo (39% OOIP)Rem = 2.6 MMbo

Early waterflood

Beaver Creek Madison Production HistoryBeaver Creek Madison Production History

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Evaluation Methodology

Phase 1 - Initial scoping and feasibility review

Phase 2 - Data acquisition & detailed sector modeling

Phase 3 - Final full field 3D modeling and flood design

Three Phase Evaluation ProcessThree Phase Evaluation Process

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Phased Evaluation

Phase 1 - Initial scoping and feasibility reviewPhase 1 - Initial scoping and feasibility review

• Gathering & Evaluation of Existing Data

• Review Against Screening Criteria

• Analytical Simulation

• Preliminary economic evaluation

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Phased Evaluation

Phase 2 - Data acquisition & detailed sector modelingPhase 2 - Data acquisition & detailed sector modeling

• Build production and well history database• Reservoir engineering analysis• Secure special core and PVT data• Build 3D compositional model

Mechanistic numerical simulation (fine scale)Sector Forecast

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Phased Evaluation

Phase 3 - Final full field modeling and flood designPhase 3 - Final full field modeling and flood design

• Full field 3D compositional modelHistory matchingIdentified where remaining oil existsForecast

Base (as is) forecast4 Development pattern options

Sensitivity analyses WAG cyclesSurface facilities limitations

• Final Economic analysis

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Phase 3 - Full Field Compositional 3D Model

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Phase 3 - Forecast

Flood Design Options

Plan 1: Peripheral CO2-WAG Plan 2: Pattern CO2-WAGPlan 3: Combined Plan 1 & Plan 2Plan 4: Peripheral-Gravity drainage

Flood Design Options

Plan 1: Peripheral CO2-WAG Plan 2: Pattern CO2-WAGPlan 3: Combined Plan 1 & Plan 2Plan 4: Peripheral-Gravity drainage

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2008 Status

14 Injectors:8 WAG injectors6 CO2 injectors

17 Producers

12 Shut-in or producingfrom other formation orTA

Detail:3 well conversion (prod->Inj):

44, 146, 1438 old producers:

11, 38, 41, 46, 68, 147, 66, 812 shut-in:

14, 966 old injectors:

40, 17, 30, 32, 45, 1397 new producers:

D, E, F, G, H, I, J, L4 new injectors:

A, B, C, K1 Injector reactivation:

311 Producer reactivation:

77

57

61

34

40

42

43

56

55

69

22

77

39

127

11

38

41

44

46

66

68

81

143

146

147

14

17

30

32

45

96

139

ctivector

tive

Low confidence inside this area

us

C

B

A

D

E

F

HJ

G

I

KL

Plan 1 – Peripheral CO2-WAG

16

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

57

61

34

40

42

43

52

56

55

69

22

77

39

127

11

38

41

44

46

66

68

81

143

146

147

14

17

30

32

45

96

139

Remaining oil in place (rb/acre)

Red = InactiveBlue = injector

Black = active

Low confidence inside this area

Well status

C

B

A

D

E

F

HJ G

I

KL

WG

2008 Status

18 Injectors:All WAG injectors

14 Producers

Detail:2 well conversion (prod->Inj):

44, 146, 9 old producers:

11, 38, 41, 46, 68, 147, 66, 81, 1438 old injectors:

40, 17, 30, 32, 45, 139, 14, 964 new producers:

L, D, E, J8 new injectors:

A, B, K, H, F, G, I, C1 Producer reactivation:

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Plan 2 - Pattern CO2-WAG

17

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2006 2008 2010 2012 2013 2015 2017 2019 2021 2023 2025 2027

Oil

rate

(stb

/d)

Plan 1Plan 2Plan 3Plan 4

Results - Summary

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•Convert 3 wells from producer to injector

• Rework or recomplete 15 wells

• Drill 8 new producers & 4 new injectors

• Construct Production & Injection Facilities

• Install New Flowlines for Producers & Injectors

• Build CO2 Supply Pipeline

Beaver Creek Madison CO2 Flood

Work Requirements

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Where Are We Today?

Drilling program initiatedRework/recompletion program under wayCO2 gas contract in placeCO2 pipeline construction to begin SeptemberDistribution and flow lines orderedCompressor & Dehydrator orderedFacilities construction to begin this week

July 2008 project start

Beaver Creek Madison CO2 Flood

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Modeling Risk Reduction

0

4

8

12

16

Δcu

m O

il (M

Mst

b) MaxMin

Phase-IAnalytical

Phase-IINumerical

(Sector Model)

Phase-IIINumerical(Full Field)

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