Alabama Shales Update. Test-program Results Conference Call

Transcription

1 Alabama Shales Update Test-program Results Conference Call Tuesday, December 2,

2 Alabama Shales 660,000 total acres (330,000 net to Energen) Focus on Chattanooga and Conasauga shales Test-program results neither positive nor conclusive Energen plans additional testing Chesapeake to end participation 2

3 Notable Domestic Shale Trends Foreland Basin Thrust Front 3

4 Alabama Shale Plays Total Acreage Leased: 660,000 Black Warrior Basin Chattanooga Sub-Basin Play Total Acreage Leased: 213,000 Conasauga Play Total Acreage Leased: 351,000 Marchant No. 1 Lamb 1-3H No. 1 Krout No. 1 Chattanooga Thrust/Floyd Play Total Acreage Leased: 82,000 4

5 Conasauga Shale Results of the Marchant well in Bibb County 5

6 Conasauga Play Marchant No. 1 Black Warrior Basin Lamb 1-3H No. 1 Marchant No. 1 Krout No. 1 Chattanooga Sub-Basin Play Chattanooga Thrust/Floyd Play Conasauga Play 6

7 Malleable Unctuous SHale ale, Weak-layer Accretion in a Ductile Duplex Present Day Setting After Tectonic Event and Erosion Compression Event and Mushwad Formation Sea Level Compression Deposition of Overlying Competent Layers and Initial Compression Sea Level Compression Graben Cambrian Deposition of Ductal Conasauga Shale Sea Level Graben Initial Tensional Rifting Sea Level Modified after Thomas - AAPG Bulletin Volume 85 #10 (2001) Graben Tension 7

8 Conasauga Geological Interpretation Geological Model Geological Survey of Alabama, Monograph 16 (2005) Seismic Interpretation Regional seismic data published courtesy of Seitel,, Inc. 8

9 Marchant No.1: 1 Mud Log 6,500-8,000 8,000-9,500 9,500-11,000 11,000-12,400 Zone of Interest Completed Interval 9

10 Marchant No.1: 11,525-11,730 11,730 Completed Interval 11,525 11,525 11,670 11,730 11,560 11,730 10

11 Marchant No. 1 3,000 4,000 Zone Thick Conasauga interval with low structural dip rates Higher shale content than lower intervals 11

12 Drilling Results Results of Marchant No. 1 Carbonate-dominated facies Strong mud log shows Good wellbore (minimal deviation) and cement to 12,400 Gas present approx. 75 miles southwest of Dominion discovery 6-88 potential pay zones Large gas-in in-place potential Future Plans Completion Results Hydraulically stimulated 11,558 11,723 on Sept. 15, ,000 gal. of x-link x gel 220,000 lbs. sand Flowback analysis: low porosity and permeability Disappointing flow of < 50 mcf/d Examine larger, alternative fracture stimulation designs Perform lateral drill-outs 12

13 Chattanooga Shale Results of the Lamb well in Greene County 13

14 Chattanooga Sub-Basin Play Lamb 1-3H 1 No. 1 Black Warrior Basin Marchant No. 1 Lamb 1-3H 1 No. 1 Krout No. 1 Chattanooga Sub-Basin Play Chattanooga Thrust/Floyd Play Conasauga Play 14

15 Lamb 1-3H 1 No. 1 Penn Sands Penn Sands Penn Sands Penn Sands Zone of Interest Completed Interval Penn Sands Floyd Shale Chattanooga Shale 6,000-7,700 7,700-9,350 15

16 Multi-stage Frac Stimulation Schematic of Lamb 1-3H 1 No. 1 Frac Design Total: 2,000,000 gal Fluid & 2,000,000 # Sand Stage 3 500,000 gal. Fluid 500,000 # Sand Stage 4 500,000 gal. Fluid 500,000 # Sand Stage 2 500,000 gal. Fluid 500,000 # Sand Stage 1 500,000 gal. Fluid 500,000 # Sand 9,150 Chattanooga Shale 2,035 16

17 Results of Lamb 1-3H No. 1 Drilling Results Chattanooga Shale (93 gross, 91 net) Gas shows in Penn Sands Poor well conditions make detailed analysis inconclusive Completion Results Hydraulically stimulated 2,035 lateral in Chattanooga section (9,150 vertical depth) on Oct. 30, stages 2,000,000 gal. slickwater 2,000,000 lbs. sand 50% recovery: No meaningful gas flows Future Plans Drill addl well to test Chattanooga and evaluate Penn Sands 17

18 Chattanooga Thrust/Floyd Play Results of the Krout well in Bibb County 18

19 Floyd/Chattanooga Thrust Play Krout No. 1 Black Warrior Basin Marchant No. 1 Lamb 1-3H No. 1 Krout No. 1 Chattanooga Sub-Basin Play Chattanooga Thrust/Floyd Play Conasauga Play 19

20 Krout No. 1 Floyd/Chattanooga Thrust Interpretation John Goodson No. 1 1,000 Cambrian 3,000 Cambrian- Ordovician Rock Creek School Thrust Fault 5,000 Pennsylvanian Helena Thrust Fault Knox Group / Ketona 7,000 9,000 Mississippian Ordovician? Overturned Beds? Knox Group / Ketona* Chattanooga Floyd Floyd Chattanooga Chattanooga Chattanooga Chattanooga 11,000 Cambrian- Ordovician 11,197 in Knox 10,716 20

21 Chattanooga Krout No. 1 Floyd Chattanooga Zone of Interest Completed Interval Chattanooga Chattanooga Chattanooga 21

22 Results of Krout No. 1 Drilling Results Geologically complex setting Five, separate Chattanooga zones (262 net) Floyd Shale section (416 gross, 158 net) Completion Results Hydraulically stimulated lower Chattanooga interval (8,210-8,250 & 8,300-8,390) 8,390) on Oct. 8, ,000 gal. x-link x gel, slickwater 150,000 lbs. sand Flowback analysis: Very low permeability (structurally related) Disappointing flow of < 50 mcf/d Future Plans Examine Floyd section 22

23 Alabama Shales Financial capacity to move forward with additional testing Company fundamentals strong Environment improving for quality acquisition opportunities 23

24 Alabama Shales Update Test-program Results Conference Call Tuesday, December 2,