Coalbed Methane / Unconventional Gas
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Conference

 
2004 11 17-19
6th Annual
Unconventional Gas Conference
Unconventional Gas: Key to Energy Supply
 Program PDF (.3 MB)   Invitation   Gala Event

North America's Largest Conference on Natural Gas from Coal, Shale, Low Permeability Reservoirs, and Hydrates

  
Date:
November 17-19, 2004		   Location:
 Hyatt Regency,
Imperial Ballroom,
Calgary, Alberta, Canada 		 

AGENDA

Wednesday
Nov. 17, 2004
Sponsored by Schlumberger
 
07:30 Registration – continental breakfast, exhibit area opens
 
  08:15   Introductions – Mike Dawson, Conference Co-chair
 
NGC in Canada – Chairs: Paul Arnott, Mike Simpson
  08:30   Update on NGC Activity in Canada, Bill Prescott, Perspective Consulting
Using information compiled from a large variety of public sources, this presentation will review recent NGC (CBM) developments in Canada with respect to levels of activity including: experimental schemes, holding applications, well licenses and available production information, categorized by play. The presentation will include a brief discussion on the different strategies employed by junior, NGC-focused, Canadian senior and U.S. senior companies.
 
  09:00   An Update on the Major NGC Plains Plays in Alberta, Murray Rodgers, Trident Exploration Corporation
The Ardley (Scollard), Horseshoe Canyon, and Upper Mannville NGC plays of the Alberta Plains are all at different stages of exploration and development. The current status of each of these plays is directly attributable to some unique geologic and reservoir characteristics that affect their economics and broad accessibility.
 
  09:30   Reservoir Potential for Quaternary/Tertiary Paleochannel Deposits in Northeastern British Columbia, Vic Levson, B.C. Ministry of Energy and Mines
This presentation will discuss the occurrence of quaternary hosted shallow gas in the northern WCSB and the potential for similar types of shallow plays elsewhere in northeastern B.C. Also included, is an introduction of the geological setting and possible reservoirs and an outline of B.C.’s and Alberta’s approaches for identifying buried paleovalleys that may be potential target areas.
 
Unconventional Reservoir Properties – Chairs: Basim Faraj, Thomas Gentzis
  10:00   morning break
 
  10:15   Enhanced Fluid Flow in Critically Stressed Fractures – Implications for Reservoir Permeability, Balz Grollimund, GeoMechanics International
Many aspects of producing hydrocarbons from fractured reservoirs, including unconventional gas applications such as CBM, rely on a thorough understanding of fracture permeability. This presentation will focus on optimizing drainage of fractured reservoirs and the requirements for understanding of the distribution and orientations of permeable fracture networks and cleat systems.
 
  10:45   Progress toward Natural Gas Resource Estimates from Continuous Type Accumulations as a Function of Technological and Economic Burdens: A Petroleum System Approach, Kirk Osadetz, Geological Survey of Canada
The authors propose to develop a stochastic, map-based, “Petroleum System” approach that incorporates the parameters affecting the economic and technological classification of potential petroleum supply from gas hydrate resources or other low permeability, pervasively gas-saturated non-conventional reservoirs.
 
  11:15   Tight Rock Integration Analysis Using Borehole Logs and Laboratory Measurements, Roberto Suarez-Rivera, TerraTek
This presentation describes an integrated evaluation of tight gas shale material properties and reservoir heterogeneity, for analysis of reservoir quality and identification of potential barriers to hydraulic fracture propagation. This knowledge is fundamental for optimizing completion design and may result in better hydraulic fracturing treatments, higher reservoir productivity, and a potential reduction in the number of wells to obtain the desired production.
 
  11:45   Awards Ceremony – Student Scholarships and the Sproule Lifetime Achievement Award
Lunch Entertainment – Todd Butler, Musical Comedian and Political Satirist
Todd Butler is a guitarist, songwriter, comedian, satirist, entertainer, festival performer, emcee, and former Mormon flower child who spent his formative years on a farm near Onoway, Alberta and now resides in Courtenay, B.C. Consequently, he can milk a cow, write a song about you and make dim sum for his wife (from scratch), all in the same day! Todd believes in social justice, equality, free enterprise, corporate accountability, making fun of selfish and/or stupid people, recycling and UFOs.
 
 Economic and Business Challenges – Chairs: Paul G. Gagnon, Phil Geiger
  13:30   Comparative Performance and Economics of Vertical and Horizontal Coal Wells, John Seidle, Sproule Associates Inc.
In recent years, horizontal coal wells have moved from the realm of mine degasification to viable reservoir completions. Coals of different ranks, ages, and geologic settings have been tested with horizontal wells, yet many questions remain about relative performance and economic viability of vertical and horizontal coal wells. Gas profiles, generated both from theory and reported production behavior, coupled with public domain well costs and operating expenses are used in economic comparisons of vertical and horizontal coal wells.
 
  14:00   Constraints Mapping: A Strategic Method to Address Land Development, Jack O’Neill, AXYS Environmental Consulting Ltd.
Constraints mapping is a modern technique to identify the environmental liability associated with land development. Using modern mapping technology as the communication medium, constraints mapping can be used to empower stakeholders in the planning stages of a land development and adjusted as a project matures. This presentation will present the technology used, the generic constraints mapping process, and present examples of how the process can identify opportunities and restrictions to land development.
 
  14:30   Freehold Ownership of CBM/NGC and Regulation of the Industry in Alberta – Where are we at and where are we headed? Patricia Steele, Gowling Lafleur Henderson LLP
This presentation will include a discussion of the recent Supreme Court of Canada decision, Anderson v. Amoco Canada Oil and Gas, a status report on the development of a CBM/NGC policy by the Province of Alberta, and introduce an industry-driven process to assist in the resolution of the freehold split title dilemma.
 
15:00 afternoon break
Production Optimization – Chairs: Cam Matthews, Greg Bell
15:30 A Petroleum Rock Mechanics Database and Its Application to Drilling and Completing Wells in Unconventional Gas Reservoirs, Pat McLellan, Advanced Geotechnology Inc.
Rock mechanical properties such as Young’s modulus, Poisson’s ratio, compressive strength and pore volume compressibility can be important parameters for designing economic wells to exploit unconventional low permeability gas reservoirs. ROCKSBank™ is a worldwide database of rock mechanical and petrophysical properties of reservoirs and cap rocks that has been developed to store and analyze these sometimes difficult to obtain core and log-derived data. Examples in this talk will show applications of the database to hydraulic fracturing in tight gas sands, assessing sand production risks for a horizontal gas well, and wellbore stability for a coalbed methane horizontal well.
 
16:00 Reservoir Performance Monitoring, Wayne Redecopp, Halliburton Energy Services
Fibre optics, manometers and acoustic telemetry now supplement down-hole single point electronic gauges to bring a greater variety of data gathering and transmission methods to permit active real time reservoir management. Novel data transmission methods such as external casing systems, both external and internal tubing systems and a wide variety of retrievable systems (electronic, acoustic and fibre optic) are also available. This presentation will discuss all of the above and some new data management software developments.
 
16:30 Developments in Distributed Compression, Ron Schmitz, VaporTech Energy Services Inc.
This presentation will discuss some recent developments in low horsepower distributed compression, with a focus on scroll compression and screw compression packages under 35 horsepower. It will also discuss some of the economic issues associated with compression in unconventional gas, including the choice between larger horsepower centralized compression and lower horsepower distributed compression.
 
  17:00   Ice Breaker Reception

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Thursday
Nov. 18, 2004
Sponsored by Encana
 
08:00 Registration – continental breakfast, exhibit area opens
 
08:30 Introductions – Denis Gaudet, Conference Co-chair
 
Coal Characterization and Evaluation – Chairs: Andrew Beaton, Brad Van Den Bussche
08:45 Importance of Coal Fabric in Determining Production Profiles and Gas Compositional Shifts during Coalbed Methane (CBM) Production, Marc Bustin, University of British Columbia
Relative permeability to gas changes throughout production history as a function of cleat spacing and aperture. CO2 desorbs more rapidly than CH4 due to differences in diffusion affinity, resulting in rapid increases in CO2 concentration followed by a steady decline in concentration during desorption experiments.
 
09:15 Cleat Characterization and Mineralization of the Scollard and Coalspur Formations Coal Seams, Western Alberta: Regional Seal Development and Implications for CBM Exploration, Basim Faraj, Faraj Consultants
Cleat types, orientation and mineralization of the Scollard and Coalspur formations in western Alberta are discussed. Stable isotopes and fluid inclusions indicate calcite precipitation from highly 18O depleted meteoric water. The upper Val d’Or coal zone in general, is preferentially mineralized in comparison to the Arbour, Silkstone and Mynheer coal zones. This preferential mineralization is thought to have influenced the development of a regional hydrogeologic seal in the basin that has profound impact on CBM exploration strategies of these coals.
 
09:45 Economic CBM in the Foothills: The Puzzle, Thomas Gentzis, CDX Canada Inc.
Despite the high gas content, economic CBM production in the Foothills remains a major challenge because of the low coal permeability and complexities related to structural deformation. The talk presents permeability data obtained from long-term field testing and analyzes evidence from active coal mines which could be useful in choosing the appropriate drilling and completions techniques.
 
10:15 morning break
 
10:30 Artificial Lift Optimization, Darren Wiltse, Weatherford Canada
The sensitivity of various artificial lift systems relative to unknown CBM well parameters will be discussed. The robustness of a Jet Pumping system for this type of application will be presented. Finally an analysis of actual field data comparing the performance of various artificial lift systems including Jet Pumping will be made.
 
11:00 Analyzing Coals using Petrophysics, Salman Khalid, Schlumberger of Canada
Any coal exploration effort should start with a good understanding of the quality of coal, the amount of gas associated and the ability to produce the gas. Petrophysics can answer some very significant questions in this regard. In this talk we will overview how and where petrophysics can help optimize the understanding and producibility of CBM plays. Very basic to highly advanced log analysis approaches will be discussed.
 
11:30 Multicomponent Seismic Applications in CBM Development, Don Lawton, University of Calgary
Increasing interest and activity in coalbed methane production in Western Canada has led to an urgent need for effective and efficient technologies for coal evaluation. Surface seismic methods are effective in delineating lateral coal zone continuity and areal extent, and for mapping faults, channel-cuts and small-scale structures that may hinder transmissivity and methane production. Some numerical modelling and field examples of high-resolution surface seismic data will be shown.
 
12:00 Luncheon Presentation – The Urgent Need for Unconventional Gas to Sustain Canada’s Natural Gas Production, Dave Russum, AJM Petroleum Consulting
This presentation examines Canada’s natural gas resources, reserves and production in both a historical and global context and provides some predictions for the future.
 
Reservoir Stimulation – Chairs: Joanne McNichol, Eric Schmelzl
13:00 Empirical Review of High-Rate N2 Stimulation in MGV Energy’s Palliser Project Area, Jens Stemo, MGV Energy Inc.
This paper summarizes reasoning behind the N2 stimulation approach in MGV’s Horseshoe Canyon coal seams in the Palliser Project area. By means of fracture mapping, varying N2 rates and volumes, performing pre-frac and post-frac testing, and utilizing production logging; MGV was able to better describe the nature of stimulation in these coals, and understand the strength of correlations between various stimulation factors and the coal productivity. Results from these efforts have allowed MGV to design N2 stimulations suitable to these coals which are appropriate both technically and economically.
 
13:30 Real Time Bottomhole Pressure Calculation during High Rate Nitrogen Stimulation of NGC, Dwight Bobier, Calfrac Well Services Ltd.
Understanding bottomhole conditions while performing High Rate Nitrogen treatments is critical to improving the success of NGC wells. This paper presents a new rigorous formulation, from engineering first principles that will calculate pressure, temperature and nitrogen flow velocities at bottomhole conditions. Provided on a real-time basis, these calculations will ensure all coal seam stimulations are optimized and gas production is maximized.
 
14:00 Optimizing Hydraulic Fracturing Treatments for CBM Production Using Data from Post-frac Analysis, Murray Reynolds, APA Petroleum Engineering Inc.
Often the challenge to commercial development is determining the appropriate technology to extract the coal gas in an economically viable manner The paper utilizes data from a CBM project to illustrate the complexity and challenges of designing fracture treatments in a tectonically active area.
 
14:30 afternoon break
NGC Case Studies – Chairs: Gerhard Pflug, Ken Sinclair
14:45 Unconventional Reservoirs Often Require Unconventional Approaches – the Role of Internal Service Provision, Marty Stromquist, Pioneer Natural Resources Inc.
The inherent nature of many large unconventional reservoir systems lend themselves to development strategies within which internal provision of well services can play a fundamental role in effective and orderly resource development. Using Evergreen Resources’ well service group as a working template, the authors will discuss the operating and financial drivers surrounding vertical integration of key services, such as hydraulic fracturing, highlighting issues on quality, technology adaptation, risk tolerance, and local community benefits.
 
15:15 A Comparative Study of the Coalbed Methane Potential in the Ardley Zone, Alberta Plains, Thomas Gentzis, CDX Canada Inc.
This study presents results obtained in two coreholes drilled in the Ardley Coal Zone, one in the Edson Block and the other in the Pembina Block of the Alberta Plains.
 
15:45 Horseshoe Canyon Case Study, David Cox, Trident Exploration Inc.
 
  17:00   Ice Breaker Reception
 
18:00 "Ain't that a Gas" Gala Evening, Sponsored by MGV Energy

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Friday
Nov. 19, 2004
Sponsored by Nexen
 
08:00 Registration – continental breakfast, exhibit area opens
 
08:45 Introductions – Kin Chow, President of CSUG
 
09:00 Overview of the History and Present State of the Unconventional Gas Industry, Michael Gatens, Chairman of CSUG; Facilitator: George Kupfer
 
  09:20   Process and Ground Rules for the Day, Facilitator: George Kupfer
Panel Discussions – Water Management and Protection: What Does it Mean for Unconventional Gas Development Areas? Chair: Cameron Cline; Open Space Facilitators: Kyla Fisher, Denis Gaudet, Florence Murphy
09:30 Panelist Introductions and Brief Remarks, David Trew, Alberta Environment; Les MacDonald, B.C. Ministry of Water, Land and Air Protection; Roger Clissold, Hydrogeology Consultant; Mary Griffiths, Pembina Institute for Appropriate Development
Discussions may include: Can usable water be safely disposed of into water systems? What treating and/or testing might be required? Can ‘coal aquifers’ be depleted and the water diverted to other acquifers or surface without seriously affecting the overall ground water in an area? Are the current regulations sufficient and/or how do they need to be changed? With respect to drilling/completion operations, potential areas of interest are: Are current drilling practices adequate? Is there any experience that leads us to believe that there is a greater risk from drilling/completion operations or is this just speculation?
 
10:20 Panel Q&A and Discussion
 
10:45 morning break
 
11:05 Provincial Perspective, Curtis Evans, Alberta Energy and Utilities Board; Kaisa McCandless, B.C. Ministry of Energy and Mines
The Alberta Energy and Utilities Board maintains extensive data on applications and gas production in Alberta. Virtually all of this data is available to the public and industry. Mr. Evans will be talking about what data is available from the EUB, how it is accessible and touch on its relationship to Natural Gas in Coal development in the province.
British Columbia and the Oil and Gas Commission are seeking to address concerns and misconceptions about how coalbed gas will be developed and regulated in B.C. We have learned that we must work more collaboratively and constructively with landowners, NGOs, Regional Districts, mayors and councils, local environmental groups, and First Nations to: (1) increase information sharing and stakeholder dialogue in oil and gas development decision-making, (2) establish credibility of our regulatory framework, and (3) demonstrate that British Columbia’s commitment to environmental protection and stewardship.
 
11:45 Panel Q&A and Discussion
 
12:00 Luncheon Presentation – The Multi-advisory Committee (MAC): Collaborative Process to Address Issues, Mike Ekelund, Alberta Department of Energy; Peter Watson, Alberta Environment
 
13:30 Engaging Communities: Key to Success, Bill Gourley, Nexen Inc.; Judy Winter, Butte Action Committee
Building trust through open, honest, and transparent actions; these are the tools of the 21st Century needed to build lasting relations between the oil and gas industry and its stakeholders. Judy Winter from the Butte Action Committee will inform the audience on the province-wide Supporting Synergy initiative and will also provide her personal experience in working with industry. Bill Gourley, who works at Nexen, will then review the benefits and challenges of synergy groups using the Fort Assiniboine Joint Venture as a case study.
 
Panel Discussions – Multiple Stakeholder Perspectives – Use and Enjoyment of the Surface in Unconventional Gas Development Areas, Chair: Michael Gatens; Open Space Facilitators: Kyla Fisher, Denis Gaudet, Florence Murphy
14:10 Panelist Introductions and Brief Remarks, Tom Hegan, Community Action Group; Tom Byrnes, Alberta Energy and Utilities Board; Phyllis Kobasiuk, Municipal Reeve/Mayor
Discussions may include: Are the current processes (notification, hearings, synergy groups, single well applications, resource applications) adequate? If not, what changes are required? Should there be a different weighting on Alberta public interest versus local interest? Do special interest groups have too much or too little input? How much influence should external groups have? Are surface land rights adequately protected? Are mineral rights adequately protected?
 
15:00 Panel Q&A and Discussion (afternoon break served in-session)
 
15:30 The Future of the Industry: A Collaborative and Responsible Approach, Mike Ekelund, Alberta Department of Energy
 
15:45 Closing Comments, Mike Dawson, Conference Co-chair
Program sessions subject to change.

DISCLAIMER: The Canadian Society for Unconventional Gas and PTAC make no representation regarding ownership or quality of the conference materials.
For further information
please contact: 		Kerri Markle, PTAC
Society Coordinator - CSUG
phone: (403) 218-7720
fax: (403) 920-0054
kmarkle@ptac.org

Denis Gaudet, PTAC
Director, Technology Transfer
(403) 218-7710
dgaudet@ptac.org

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