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Innovating Completion OptimizationOctober 2016
The Trends in Drilling & Completions
Innovation Required
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2010 2011 2012 2013 2014 2015 2016
WTI Prices: 2010 -Present
Drilling and Completion Trends in the Montney
Increased Frac Stages
2010: Average 10 stages
2016: Average 26 Stages
Increased Fluid Pumped
2010: ~2,500 cubic meters
2016: ~15,000 cubic meters
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Source: Raymond James, Jeremy McCrea
Drilling and Completion Trends in the Montney
Increased Completed Length
2010: ~1,250 meters
2016: >2,000 meters
Increased Total Proppant Placed
2010: ~750 tonnes
2016: ~2,500 tonnes
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Source: Raymond James, Jeremy McCrea
Drilling and Completion Trends in the Montney
Movement to Slickwater
2010: 20% of wells using Slickwater
2016: >70% of wells using Slickwater
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Source: Raymond James, Jeremy McCrea
The Drivers Behind the Changing Trends
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The Goal
The Requirements
The Solution
Superior Capital Efficiencies
Higher Productivity and EUR’s
Increased Stimulated Rock Volume
Longer Laterals Tighter SpacingHigher Pump
RatesSlickwater
Pinpoint Fracturing
The Challenges
Water Management and Social Impact
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Water Management Issues
o Slickwater becoming dominate completion
o Water to inflate coil tubing
o Potable water requirement for certain completion styles
o Ability to access adequate water for completion
Social Impact Issues
o Time on surface
o Noise
o Impact to residents in rural / urban corridors
o Traffic
o Pad size
o Perception of completions (high vs. low impact)
Current Systems Not Meeting all Design-Change Demands
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Based on 4.5-in (114.3-mm) Casing Plug & Perf(Clustered Stages)
Sliding Sleeve (Coil Tubing)
Ball-Drop
Unlimited stages Yes Yes No
Reduced pumping friction pressure Yes No No
Can use high fluid rates and sand concentration Yes No No*
Individual frac Isolation No Yes Yes
Wellbore unrestricted by ball seats or coil tubing while fracturing
Yes No No
Reduces pumping time on surface No No Yes
Water and chemicals conservation No No Yes
Re-closable sleeve for re-fracturing or shutoff No Yes No
Extended reach capability Yes No No
Production-ready wellbore No Yes Yes
Constant ID heel to toe Yes Yes No
Open hole or Cased hole application No Yes No
Cemented annulus Yes Yes No
Completed without coiled tubing Yes No Yes
* Restricted at the toe
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Risks and Limitations of Current Systems
Plug and PerfSliding Sleeve with Coil Ball-Drop
Significant time required to place plugs and perforate while frac
equipment is waiting
Controlling frac placement in cluster applications and ensuring all intervals
are stimulated
Perforating gun misfire and associated time to round trip tool string
Plug failures from skidding and pre sets from cast iron slips
Debris and fluids from drilloutscausing damage to the formation
Difficulty drilling plugs in extended reach applications
Additional fluid usage to place plugs and perforating guns
Sanding off with coil in the wellbore (Higher risk of being stuck in the
wellbore with coil)
Extra costs of friction reducers and potential inability to the toe of the
wellbore
Setting tool packer failure (limited number of sets per packer)
Fishing charges if tool becomes stuck or disconnected
Equipment failures such as coil tubing breakdowns
Pump rate limitations due to friction pressure
Limited stage count
Limit on horizontal length due to decreasing ball seat size
Pump rate limitations, particularly at the toe
Decreasing seat sizes restrict flow back
Risk of ball extrusion
Screenouts can potentially lead to partial or complete loss of wellbore
The Innovation
Stage Completions Inc.
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Stage Completions Inc. is a downhole technology company focused on providing innovative completion solutions
90% privately held, 10% to be acquired by Blackbird Energy Inc. (TSX-V: BBI)
Three main product lines that are fully patented:
SC Bowhead II: Collet-activated fracturing sleeve system designed for cased hole and open hole applications
SC Bowhead: Wireline deployed Baffle isolation fracturing system designed for cased and open hole applications
Cemented Ball Drop: ball activated fracturing sleeve designed for multiple frac stages in a well bore
All systems designed from 2 7/8” (71mm) right through to 5 ½” (139.7 mm) casing
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Production and Operational Advantages
Pinpoint fracturing
Longer Laterals and Increased
Stages
Higher Rates and Tonnages
Asset in the Wellbore
o 216 stages currently available (>700 available in near term)o Pump down collet (elimination of coil tubing) allows for industry leading lateral
lengtho Only system that can frac beyond current coil / wireline lengths
o Constant ID allows for higher pump rate and higher sand concentrations, particularly at the toe
o Elimination of coil and ball seats leads to reduced friction
o Optimize every fracture treatment / Accurately place every fracture treatmento Maximize stimulated reservoir volume
o Constant ID allows for maximum flowback recovery without interventiono Collets are retrievable and sleeves can be open / closed throughout life of
wellboreo Refrac available with re-pump down of existing collets and balls
Stage’s Advantages
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Reduced Risk
o Large bore access allows clean outs from heel to toe with no restrictions in coil or tubing size
o Collets can be removed at any point in time allowing full drift of liner
o Without retrieval, Stage system has largest flowback ID
o Ability to close specific sleeves for production challenges
o Elimination of ball extrusion
o Reduced risk of breached casing
o Sleeve and collet rated for 15k pressure limits
Reduced Cost
o Increased speed of completions – 20 -40 min vs. 1 hr 40 min or higher reduced direct and indirect costs (continuous pumping operations)
o Reduced fluids into formation and the associated cost
o No milling and drilling out of balls and seats
o Elimination of Coil Tubing
o Dissolvable ball allows for full wellbore access during flow back and production operations
o Reduction in pressure pumping and associated costs
Discussing Costs and Savings
The Cost and Savings Discussion
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Compared to Ball Drop
o Costs comparable to ball drop but with significant operational advantages
Compared to Plug and Perf
o No coil tubing unit to drill out plugs, no drill bits and accessories
o Reduction in treating and stimulation
o No stand by on frac equipment while having to set bridge plugs / perforate
o Fluid hauling is drastically reduced (reduction in fluid volume for pumping down wireline to set bridge plugs / perf)
Compared to Sliding Sleeve with Coil
o No coil tubing unit to open and fracture each sleeve
o No coil tubing packer and accessories
o Elimination of fresh water circulating costs to maintain coil integrity
o Fresh water disposal
o Reduction in treating and stimulation
Stage’s Deployment
Quality Assurance
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Ability to land collets at between 1 m3/min and 5 m3/min
Continuous completion
Over 100 surface tests
Varied pressures, temperatures and rates
100% success
Two wells successfully completed using Stage
Third well installed – testing in next two weeks
Blackbird 06-14-70-7W6M Pump Down
Innovation Being DeployedLargest Sliding Sleeve Completion in Elmworth /Pipestone Corridor
Blackbird’s 02/2-20 Montney Well
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Blackbird is implementing the largest sliding sleeve completion in the Elmworth / Pipestone Corridor
71-76 Stage sleeves
4,000 tonnes of proppant (~2.0 tonnes per linear meter)
~2,150 meter lateral
Slickwater
Pumpers: Step Energy Services
Estimated completion: November 8, 2016
Roll Out Achievement
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The Eagle Ford
The Cardium
The Uinta
The Bakken
The Montney
The Permian
China Successfully Being Deployed in Cased and Open Hole Applications
The Stage Advantage
Stage Checks All The Boxes
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Based on 4.5-in (114.3-mm) Casing
SC Bowhead II Plug & Perf (five clusters/stage)
Sliding Sleeve (Coil Tubing)
Ball-Drop
Unlimited stages Yes Yes Yes No
Reduced pumping friction pressure Yes Yes No No
Can use high fluid rates and sand concentration
Yes Yes No No*
Individual frac Isolation Yes No Yes Yes
Wellbore unrestricted by ball seats or coil tubing while fracturing
Yes Yes No No
Reduces pumping time on surface Yes No No Yes
Water and chemicals conservation Yes No No Yes
Re-closable sleeve for re-fracturing or shutoff
Yes No Yes No
Extended reach capability Yes Yes No No
Production-ready wellbore Yes No Yes Yes
Constant ID heel to toe Yes Yes Yes No
Open hole or Cased hole application Yes No Yes No
Cemented annulus Yes Yes Yes No
Completed without coiled tubing Yes No No Yes
* Restricted at the toe
Disruptive Completions Technology
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Higher Tonnages
Higher Rates
Longer laterals
More Stages
Stage’s Bowhead II Increased EUR’s
High Utility of Capital
Improved Water Management