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PILOT PROJECT
DESIGN BASIS MEMORANDUM
Submitted to:
ORION OIL CANADA LTD.
Norwest Corporation
Suite 400, 205 9th Ave SE
Calgary, Alberta
T2G 0R3
Tel:
(403) 237-7763
Fax: (403) 263-4086
Email calgary@norwestcorp.com
www.norwestcorp.com
T ABLE OF CONTENTS
INTRODUCTION............................................................................................................................................................. 2-1
2.1
2.2
2.3
2.4
2.5
2.6
FACILITIES OVERVIEW..............................................................................................................................................5-1
RAW W ATER SUPPLY................................................................................................................................................5-2
STEAM GENERATION AND W ATER SOFTENING.....................................................................................................5-2
A IR COMPRESSION.....................................................................................................................................................5-3
PIPING, INSULATION , SUPPORTS AND CONTROLS.................................................................................................5-3
PRODUCTION WELLHEAD CONTROLS.....................................................................................................................5-3
INJECTION WELLHEAD CONTROLS .........................................................................................................................5-3
PRODUCTION TREATMENT AND SEPARATION (EMULSIONS)...............................................................................5-3
PRODUCTION GAS VENT...........................................................................................................................................5-4
PRODUCED W ATER TREATMENT AND DISPOSAL..................................................................................................5-4
TANKS AND PRODUCT SHIPPING/TRUCKING FACILITIES.....................................................................................5-4
5.12
5.13
5.14
5.15
5.16
5.17
6
POWER.........................................................................................................................................................................6-1
NATURAL GAS ...........................................................................................................................................................6-1
COMMUNICATIONS....................................................................................................................................................6-1
CAMP FACILITIES.......................................................................................................................................................6-2
CONSTRUCTION FACILITIES .....................................................................................................................................6-2
Appendix A Geology
Appendix B Preliminary Project Schedule
List of Tables
Table 3-1
Table 3-2
Table 3.3
Table 3-4
Table 3-5
Table 7-1
Table 9-1
List of Figures
Figure 2-1
Figure 2-2
Figure 2-3
Figure 2-4
Figure 3-1
Figure 4-1
Figure 4-2
Figure 4-3
Figure 4-4
Figure 4-5
Figure 4-6
Figure 4-7
Figure 4-8
Figure 4-9
Figure 4-10
Figure 5-1
Figure 5-2
Figure 5-3
Figure 5-4
Figure 5-5
Figure 5-6
Figure 5-7
Figure 5-8
Figure 5-9
Figure 5-10
Figure 5-11
Figure 5-12
Figure 5-13
Figure 6-1
Project Location
Infrastructure in Project Vicinity
THAI Schematic
Preliminary Project Schedule
THAI Process Schematic
Well Spacing
Spacing Detail
Vertical Injection Well
Wellhead Design Vertical Injector Well
Horizontal Production Well
Wellhead Design Horizontal Production Well
Observation Well Completed for Temperature Measurement
Temperature Observation Well
Pressure Observation Well
Water Disposal Well
Production Facilities and Access
Project Site Plan
Plant Layout
Process Flow Diagram
P&ID Block Diagram
Water Treatment P&ID
Steam Generator P&ID
Air Compressor P&ID
Wellhead, Inlet Separator and Cooler P&ID
Secondary Separator P&ID
Aerial Cooler, Treater and Vent Stack P&ID
Storage Tank and Pump P&ID
Process Utilities P&ID
Development Area Terrain
Figure A-1
Figure A-2
Figure A-3
Figure A-4
Figure A-5
Figure A-6
Figure A-7
Figure A-8
Figure A-9
Figure A-10
Figure A-11
Figure A-12
Figure A-13
Figure A-14
Abbreviations
AENV ..........................................................................................Alberta Environment
AOSTRA.................................... Alberta Oil Sands Technology and Research Authority
ASRD .........................................................Alberta Sustainable Resource Development
AXYS................................................................. AXYS Envir onmental Consulting Ltd.
CCME .............................................. Canadian Council of Ministers of the Environment
CMG ..................................................................................Computer Modelling Group
CO.................................................................................................... Carbon monoxide
CO2 ...................................................................................................... Carbon dioxide
COFCAW.......................................Combination Forward Combustion and Water Flood
EDTA.....................................................................Ethylene Diamine TetraAcetic Acid
EUB ........................................................................ Alberta Energy and Utilities Board
GJ/hr ............................................................................................... Gigajoule per hour
H2 S..................................................................................................Hydrogen sulphide
IHS........................................................................... Inclined Heterolithic Stratification
km................................................................................................................Kilometre
kPa.............................................................................................................. Kilopascal
m........................................................................................................................Metre
m3 /d...............................................................................................Cubic metre per day
MJ/m3 .................................................................................. Megajoule per cubic metre
mKB........................................................................................ Metres below Kelly Bar
MW..............................................................................................................Megawatt
NO2 ........................................................................................... Nitrogen dioxide (gas)
NOx ..................................................................... Oxides of Nitrogen (NO, NO2) (gas)
Orion ......................................................................................... Orion Oil Canada Ltd.
POB .....................................................................................Pressure Observation Well
ppm .................................................................................................... Parts per million
S.....................................................................................................................Standard
SAGD.........................................................................Steam Assisted Gravity Drainage
SARA..........................................................Saturates, aromatics, resins and asphaltenes
SO2 ...................................................................................................... Sulphur dioxide
STARS .............................Steam, Thermal and Advanced Processes Reservoir Simulator
THAI ................................................................................. Toe-to-Heel Air Injection
TOB .............................................................................. Temperature Observation Well
TRS...........................................................................................Total Reduced Sulphur
VAPEX ............................................................................... Vapour Extraction Process
C......................................................................................................... Degree Celsius
EXECUTIVE SUMMARY
Orion Oil Canada Ltd. (Orion), a wholly owned subsidiary of Petrobank Energy and Resources
Ltd., plans to construct and operate the WHITESANDS Experimental Pilot Project (the Project).
The Project will be located on Orions oil sands lease (Agreement 7400010012) approximately 13
km west of Conklin, Alberta. The Project will be designed to evaluate the THAI (Toe-to-HeelAir-Injection) in-situ combustion process under actual field conditions. It will produce up to 300
m3 /d of partially upgraded oil, referred to as THAI OIL. Orion has the right to use the patented
THAI process.
This document provides the design basis for the WHITESANDS Experimental Pilot Project.
THAI is a revolutionary combustion technology for the in-situ recovery of bitumen and heavy
oil by using a vertical air injection well at the toe of a horizontal production well. During this
process a combustion front is created where approximately 10% of the bitumen in the reservoir is
combusted. This generates heat, which reduces the viscosity of the bitumen and enables it to flow
by gravity drainage to horizontal production wells. The combustion front sweeps the oil from the
toe to the heel of the horizontal producing well efficiently recovering an estimated 80% of oil in
place while upgrading the crude oil in-situ. The process has been extensively tested in laboratory
physical models and its potential at a field scale confirmed through numerical simulations.
The major advantages and benefits of the THAI process include:
lower capital and operating costs,
significantly higher recovery potential than current in-situ processes,
minimal use of natural gas and fresh water,
lower greenhouse gas emissions,
production of partially upgraded crude oil (THAIOIL),
potential to operate in thinner and deeper reservoirs than steam-based processes, and
potential application as a steam follow-up process.
The design provides for a wide range of flexibility in the operation appropriate for the worlds
first field pilot of the THAI process. The pilot is aimed at demonstrating the commercial
viability of the technology in a safe manner with a robust approach to the design. The pilot will
have three vertical/horizontal well pairs plus several temperature and pressure observation wells.
Data collection is a major objective of the pilot with an array of observation wells and facility
instrumentation to obtain production and analytical compositional measurements. The pilot will
have a small foot print and will be designed and operated to meet or exceed all environmental
regulations. The pilot facilities will be designed for an anticipated five-year operating life, with
start-up planned for late 2004 or early 2005.
INTRODUCTION
2.1
2.2
PROJECT OVERVIEW
Orion Oil Canada Ltd. (Orion) , a wholly-owned subsidiary of Petrobank Energy and Resources
Ltd., plans to conduct a field pilot of the THAI (Toe-to-Heel-Air-Injection) in-situ combustion
oil sands technology. The Project will be located on Orions oil sands leases approximately 13
km west of Conklin, Alberta (see Figure 2-1).
The surface facilities and access roads for the Project will be located in Sections 12 and 13,
Township 77, Range 9, west of the 4th Meridian (see Figure 2-2). The reservoir target is wholly
contained within Section 12. The Project is in an area that has been extensively explored and
developed for natural gas and oil sands. The Leismer Gas Plant (BP Energy Canada) is located
approximately 3 km north of the development area. Delineation drilling on the site in November,
2003 confirmed the presence of a high quality oil sands reservoir in which to conduct the Project.
A summary of the geology and oil sands resource in the development area is provided in
Appendix A. A separate report (Resource Assessment WHITESANDS Project Area, January,
2004, Fekete Associates) on the results of the 2003 drilling program is also available.
Three pairs of vertical air injector and horizontal producer wells will each have a peak productive
capacity of 100m3 /d of partially upgraded bitumen, hereinafter referred to as THAIOIL.
Production will be treated onsite and produced water will be disposed of via deep wells.
Additional information on the production process is found in Section 3. THAIOIL will be
stored on site in tankage and trucked to a market outlet.
THAI is an innovative new combustion process for the in-situ recovery of bitumen, which
combines a vertical air injection well with a horizontal production well as shown in Figure 2-3.
During this process a combustion front is created where a portion of the bitumen in the reservoir
is combusted. This generates heat, which reduces the viscosity and partly upgrades the bitumen
enabling it to flow, by a combination of induced pressure gradient and gravity drainage, to the
horizontal production well. The combustion front sweeps the oil from the toe to the heel of the
horizontal producing well efficiently recovering an estimated 80% of bitumen in place. The
process has been extensively tested in laboratory physical models and its potential at a field scale
confirmed through numerical simulations. Orion has the right to use the patented THAI
process.
The potential advantages/benefits of the THAI process include :
lower capital and operating costs,
significantly higher recovery potential than current in-situ processes,
minimal use of natural gas and fresh water,
lower greenhouse gas emissions,
production of partially upgraded crude oil,
potential to operate in thinner and deeper reservoirs than steam-based processes, and
potential application as a steam follow-up process.
The preliminary project schedule is illustrated in Figure 2-4. A preliminary detailed schedule is
provided in Appendix B. Pending regulatory approval, site preparation and delineation drilling is
expected to begin in early 2004 with start-up scheduled for late 2004. The initial phase of the
Project is anticipated to last five years with the potential for a second phase if operating results
warrant.
FIGURE 2-4
PRELIMINARY PROJECT SCHEDULE
2003
2004
2005 - 2010
2.3
PROJECT OBJECTIVES
The purpose of the Project is to evaluate the THAI process under actual reservoir conditions, in
commercial length horizontal wells, in order to advance the technology to commercial
application. The pilot will generate an array of technical, environmental and economic
information on which to plan and evaluate a commercia l scale operation.
The principle objectives of the pilot are to:
Understand the dynamics and operating characteristics of the process,
Obtain information on the THAIOIL, water and gas production rates,
Enhance the numerical simulation model using field data,
Obtain information on the characteristics of the produced THAIOIL to evaluate its
commercial value,
Obtain information on produced water to evaluate its corrosion characteristics and
recycle potential,
2.4
2.5
RISK MANAGEMENT
All experimental projects have a number of technical, operational, execution and business risks
and uncertainties. The challenge is to accurately identify and rank these at each stage in the
project development to determine the significance and undertake appropriate design mitigation or
management actions. Several of these will be resolved during the detailed engineering design
stage. Others will have to be managed during the operational phase of the Project. A preliminary
assessment of the design and operational risks is provided in Section 9.
2.6
PROJECT EXECUTION
The preliminary detailed schedule shown in Appendix B lists the major project execution
activities required to take the Project through to start-up. During detailed engineering a Project
Execution Plan (PEP) will be prepared to address these activities in more detail and develop plans
for:
contracting and procurement,
QA/QC,
modularization,
staffing,
change management,
safety systems,
environmental protection systems,
regulatory compliance,
start-up and commissioning, and
operation.
3.1
PROCESS OVERVIEW
The THAI recovery process for the pilot will be a dry combustion process operated at a high
temperature in the reservoir to promote in-situ upgrading of the bitumen and avoid the need to
inject fresh water with the air. In the event that production rates are too low or there is a need to
lower the combustion front temperature, water can be injected with the air. Steam may be
injected to control oxygen levels if necessary.
The THAI process operates with an array of parallel horizontal production wells (producers)
placed near the base of the oil sands zone. Vertical air injector wells (injectors) are drilled with
an offset from the toe of the producers and are opened at the top of the pay zone as shown in
Figure 3-1. A near-well steam preheat is then conducted to establish communication between the
injector and the producer. When air is injected, ignition occurs and a combustion front develops.
The front is quasi-vertical and remains vertical for the entire duration of the reservoir
exploitation. This ensures that a high-oxygen flux is maintained and only high-temperature
oxidation occurs.
Toe
Cold Heavy
Oil
Production Well
Mo
bile
Oil
Zon
e
Air
Co
mb
us
Co
tion
ke
Zo
Zo
ne
ne
FIGURE 3-1
THAI P ROCESS SCHEMATIC
Heel
Hot combustion gases contact the bitumen ahead of the coke-burning (combustion) zone and heat
the bitumen to over 400C. The high temperatures, in the presence of reservoir clays , cause
thermal cracking and upgrading of the bitumen by 7 to 10 API gravity to form THAIOIL. The
PROPRIETARY AND CONFIDENTIAL
hot, lighter cracked oil, reservoir water and combustion gases drain downward into the horizontal
well for transmission directly to the surface by gas lift. Some bitumen warmed by conductive
heating ahead of and behind the combustion front also drains into the horizontal well. Up to
ten percent of the bitumen, the heavier, higher boiling point fraction, is left behind on the sand
matrix and becomes the combustion fuel as the burning front advances. In addition to bitumen,
the only other raw materials consumed by the THAI process are the associated gases and
interstitial water in the oil sands formation. The reservoir design parameters are provided in
Table 3-1.
TABLE 3-1
R ESERVOIR D ESIGN PARAMETERS
Steam
Preheat
Period
(months)
Water
Rate
3
(m /d/well)
Frontal
Advance
Rate
(m/d)
Peak
Temperature
(C)
Temperature
in Swept Zone
(C)
Wellbore
Temperature
(C)
Gas/oil
Ratio
3
3
(m /m )
20
0.28
>600
215260 after
5 years
200300
944
Injection Forecast
During the start-up period, steam requirements will be 500 m3 /d/well pair. Each well pair will be
treated separately for approximately a three-month period. Computer simulation studies indicated
an optimum air injection rate of 85,000 Sm3 /d per injector, with a well spacing of 100 m and a
pay thickness of 20 m.
Production Forecast
Total gas production is expected to be very close to the air injection rate of 85,000 Sm/d, because
the combined volume of the generated N2 , CO and CO2 and hydrocarbon gas will be
approximately equal to the volume of oxygen consumed. The anticipated steady state production
temperature is expected to average 250C.
THAIOIL production is forecast to commence at 20 m3 /d/well and increase to 90 to 100
m3 /d/well over a five-year period. The water cut is expected to be 23 percent.
3.2
RECOVERY STRATEGY
The THAI recovery process strategy consists of three stages:
steam preheat,
combustion ignition, and
steady-state combustion
Steam Preheat
The purpose of the steam preheat is to ensure that there is a heated communication channel
between the vertical injection and horizontal production well. The steam preheat also ensures
that the production well is heated through its entire length so that mobilized bitumen does not
cool and plug the well.
The steam preheat occurs in three steps:
1. Steam injection, accompanied by circulation into the horizontal production well at below
fracture pressure, will begin with injection of steam into the long tubing landed near the
toe of the horizontal production well. The condensed steam and mobilized bitumen will
be produced via short tubing landed a short distance above the liner in the horizontal
well. The steam circulation will continue with pressure/rate cycles to promote bitumen
production.
2. The total section of reservoir around the vertical injection well must be heated to a high
enough temperature (100C) for spontaneous ignition to occur upon subsequent injection
of air. Following the development of heat communication between the toe of the
horizontal well and the vertical injection well, steam injection from the heel of the
horizontal well will end and continuous injection of steam via the vertical well into the
toe of the horizontal well will be conducted for a period of time until the horizontal well
temperature rises to steam temperature less 50C. Bitumen, liquid water and steam will
be produced at the heel end of the horizontal well.
3. In preparation for ignition, steam will be injected into the upper part of the reservoir to
create a heated volume, approximately 10 m in radius around the well at the top of the
reservoir, which will become linked to the lower steam heated area and the horizontal
well.
Combustion Ignition
At the conclusion of steam preheat, air will be injected at up to 85,000 m3 /day, at below
formation fracture pressure, through the upper screens of the vertical well to ignite the reservoir
and initiate the THAI recovery process. The objective is to ignite the reservoir without
damaging the vertical injection well while avoiding fracturing the reservoir. Any flow-back of
gas or fluid into the injection well is to be avoided as this has a high probability of drawing
combustion fuel into the well and damaging or destroying the well. Data from a large number of
combustion tube tests indicates that spontaneous ignition of Athabasca bitumen will readily occur
at temperatures exceeding 100C. Ignition will be confirmed from the analysis of the produced
gas. Once ignition is confirmed, the air injection rate will be gradually brought up to the design
rate. Once at design rate, it is expected that the combustion front will move progressive ly from
the toe toward the heel of the horizontal production well. If high temperatures in the production
well occur or if there are difficulties in distributing heat along the well, hot water or steam may be
injected along with the air.
PROPRIETARY AND CONFIDENTIAL
The steam stimulation and ignition process will be conducted in sequence for the three THAI
well pairs in order to learn from each preceding well pair how to improve the start-up and
production methods for the next pair.
Steady state combustion
Steady state combustion will be maintained throughout the projected five-year life of the wells. It
is anticipated that the air injection rate will be constant in order to obtain steady-state data for
computer model history-matching.
3.3
water or steam will be injected to cool the wells. In addition, the air injection rate may be
reduced.
3.4
3.5
Oil
Recovery
74%
Air:Oil Ratio
3
1650 Sm /m
Peak
Temperatures
500600C
Frontal Advance
Rate
1.2 m/d
TABLE 3-3
ORION NUMERICAL MODEL INPUT
Simulator
Components (8)
Grid size, m
Number of grids
Wells
Heterogeneity
Permeability
Porosity
Oil viscosity, cP
(bitumen)
Temperature, C
Reservoir pressure,
kPa
STARS 2003.1
water, bitumen, upgrade, methane, CO2 , CO/N2, oxygen,
coke
2.5 x 2.5 x 1.0
40,000 in element of symmetry (design model)
1 vertical steam injector for communication pre-heating, 1
vertical air injector, 1 discretized horizontal well with tubing
for well pre-heating.
Homogeneous
6.4 D (horizontal), 3.4 D (vertical) (Kirby Lake)
33 % (Kirby Lake)
340,900 @ 10C (Kirby Lake)
20 (WHITESANDS)
2600 (Kirby Lake)
3.6
WATER DISPOSAL
The produced water generated by the Project will be separated from the THAIOIL at the plant
site and then disposed of into the Clearwater Sandstone via deep well injection. The amount of
produced water will depend on whether the continuous co-injection of steam (wet combustion)
is required for process control purposes. With normal dry combustion, the produced water will
consist of condensed start-up steam (first year only) and interstitial water from the reservoir.
With the wet combustion method, the produced water will consist of condensed start-up steam
(first year only), interstitial reservoir water and the optional injected steam as noted above. The
estimated disposal volumes for Year 1, Year 2 and Years 3 to 5 are 244,550 m3 , 229,950 m3 and
251,850 m3 , respectively, with approximate disposal rates of 670 m3 /d, 630 m3 /d and 690 m3 /d,
respectively. The recycle of produced water is not required because the Project will use less than
500,000 m3 /y of fresh water. The pilot will collect data on produced water quality to allow the
design of treatment facilities for reuse in future commercial operations or for export off-site to
other potential water users.
3.7
PRODUCED GAS
The anticipated produced gas composition is provided in Table 3-4. Produced gas will be cooled
to 80C and vented.
The vent stack will be 75 m in height and will be equipped with a chemical sweetener to remove
H2 S. The vent stack will discharge in-situ combustion gases that are entrained within, and
removed from, the produced THAIOIL stream. While these combustion product gases will be
comprised primarily of N2 , CO2 , and CO, they are also expected to contain trace amounts of
hydrocarbons and other compounds. Because of the high N2 , CO2 , and CO content (~97 to 98%
on a dry basis), the heating value of the vent gas is low. The maximum H2 S content is expected
to be 150 ppm (on a dry basis). Following sweetening, the maximum H2 S content will be less
than 10 ppm. Representative carbon disulphide (CS2 ), benzene (C6 H6 ), and ethylene (C2 H4 )
emission values are also provided in the table to account for the other TRS (Total Reduced
Sulphur) compounds and other hydrocarbon species that are of potential interest. Table 3-5
provides the preliminary parameters for the vent and flare stack design.
TABLE 3-4
PRODUCED GAS COMPOSITION
Compound
CH4
C2H4 (Ethylene)
C2H6
C3 H6
C3H8
C4H10
C5H12
N2
CO2
CO
O2
H2
SO2
H2O
H2S
C6H6 (Benzene)
CS 2
3
Heating value (MJ/m )
Dry Basis
Wet Basis
(mole %)
0.96
0.01
0.04
0.03
0.08
0.07
82.05
12.12
3.04
1.45
0.12
0.01
0.00
(mole %)
0.88
0.01
0.04
0.03
0.07
0.06
74.99
11.08
2.78
1.33
0.11
0.01
8.60
(ppm)
150
11
13
0.91
(ppm)
137
10
12
0.83
TABLE 3-5
PRELIMINARY FLARE AND V ENT STACK PARAMETERS AND EMISSIONS
6168879
484286
13.0
0.152
425
13.72
1.445
25
1000
1273
0.27
-3
5.6 10
-5
6.5 10
Vent Stack
(Wet Basis)
6168851
484315
75.0
0.203
277,000
80
353
121.2
75.1
0.869
Flare Stack
Stack Location
Stack Location
Stack Height
Stack Diameter
Gas Flow Rate
Effective Stack Height
Pseudo Stack Diameter
Fraction Heat Radiated
Stack Exit Temperature
Stack Exit Velocity
SO2 Emission Rate
(UTM m N)
(UTM m E)
(m)
(m)
3
(m /d)
(m)
(m)
(%)
(C)
(K)
(m/s)
(kg/d)
(g/s)
CO Emission Rate
(kg/d)
(g/s)
9124
105.6
NO X Emission Rate
(kg/d)
(g/s)
0.41
0.0048
(kg/d)
(g/s)
>4
>.05
CS 2 Emission Rate
(kg/d)
(g/s)
10.7
0.124
(kg/d)
(g/s)
32.8
0.380
(kg/d)
(g/s)
9.2
0.106
3.8
3.9
3.10
The coke plug will be continuously removed by burning as the front advances and new
coke will be deposited. Oxygen must not be allowed to enter the wellbore ahead of the
burning front as this will overheat the wellbore and also reduce production rates.
Should the pool of oil or coke plug not adequately restrict the entry of oxygen, water
and/or steam can be injected at the lower perforations of the vertical injection well to
restrict oxygen from entering the horizontal production well.
Should temperatures in the horizontal well become excessive, steam and/or water can be
circulated through the well using the long tubing to reduce the temperature. In this
regard, it is important that the long tubing be regularly pulled back to a point near the
combustion front so that the tubing will not become stuck in the wellbore because of coke
deposits. Wellbore temperatures measured by the thermocouples will be used to locate
the position of the combustion front. The long tubing will also be available to plug-off a
section of the wellbore in case of screen failure or to isolate a tail section for any reason.
If the oxygen content of the production gas exceeds a level (for example 1-3%) that may
pose a possibility of explosion or combustion in production lines, the air injection will be
reduced or stopped.
3.11
3.12
recovery between the horizontal production wells and outside of the unconfined THAI pilot
pattern will be key to the design of the well spacing to be used for commercial operations.
3.13
3.14
CORROSION
The THAI process will produce CO2 and SO 2 in a wet environment, so corrosion can be
expected. The minimum production temperature in the horizontal well is expected to be 250C.
At temperatures over 190C all water will be in the vapour phase. The water in the production
well is expected to be as steam at the production temperature, but corrosion will still be a concern
as the production cools as it passes through the horizontal production well. Turbulent flow in the
horizontal well is expected to coat the wellbore with bitumen (the metal is oleophilic), which may
reduce the corrosive effect of the acids.
In the surface facilities, the steam will condense upon cooling and the combination of liquid
water, CO2 and SO 2 can be expected to cause corrosion. The timely separation of produced
THAIOIL from produced gas and neutralization of the fluids may reduce the opportunity for
corrosion. The coating of the insides of wells and vessels by the produced THAIOIL will help
to provide corrosion protection.
Orion has commissioned a corrosion study by Dr. Bill Shaw at the University of Calgary. The
program is to evaluate the performance of a variety of material compositions under a range of
temperature, pressure and fluid conditions that may be experienced in the THAI process. It is
expected that the study conditions will represent the worst case scenario by exposing bare metal
to the potentially corrosive fluids. The program will define the potential severity of corrosion and
identify design or operating solutions. The results of this study will be available for consideration
during the detailed design stage of the Project.
4.1
4.2
244.5 mm, 48.1 kg/m, H-40, Round Thread Conn., length 150 m
177.8 mm, 34.3 kg/m, L-80, VAM-SW Conn., length 420 m
177.8 mm x 3 m length, 316LSS Rib with 0.006 open, 2 required
114.3 mm, 18.8 kg/m, J-55, Premium Conn., length 400 m
60.3 mm, 6.85 kg/m, J-55, Premium Conn. , length 410 m
177.8 mm x 120.6 mm retrievable, thermal element
177.8 mm x 101.6 mm retrievable, thermal element
working pressure 14,800 kPa @ 345C
The completion is designed to inject air at the top of the McMurray zone and provide for the
option of injecting steam or hot water at the bottom of the zone if required for temperature control
in the horizontal well and or prevention of air breakthrough to the horizontal well. The design
pressure rating for the injection wellhead is 14,800 kPa at 345C. A wellhead drawing is
provided in Figure 4-4.
4.3
339.7 mm, 71.4 kg/mm, H-40, Round Thread Conn., length 150 m
244.5 mm, 59.5 kg/m, L-80, VAM-SW Conn., length 550 m
177.8 mm, 38.7 kg/m, L-80, VAM-SW Conn., length 535 m
177.8 mm, 316LSS Rib with 0.008 open
73.0 mm, 4.77 mm, WT, QT700, length 1050 m
88.9 mm, 4.77 mm, WT, QT700, length 500 m
38.1 mm, 2.77 mm, WT, QT700, length 1020 m
Underground Type K, 18 measuring points, cable length 1020 m
working pressure 14,800 kPa @ 345C
The intermediate and horizontal casings require premium connections such as the VAM-SW
shown above. Another equivalent premium connection may be used depending on the
determination of the casing supplier.
Produced fluids are expected to flow to the surface. If lift assist is required during start-up, then
steam can be injected at the toe end through the 73.0 mm tubing, or gas lift can be implemented
by injecting natural gas down the intermediate casing for return up the 88.9 mm production
tubing. The wellhead is designed for top access to the 88.9 mm tubing for swabbing or pumping.
Figure 4-6 shows the horizontal wellhead design. Pressure rating is 14,800 kPa at 345C.
Provision has been made for top entry into the 73.0 mm and the 88.9 mm tubing strings and the
ability to pull the 73.0 mm tubing back as the combustion front advance from toe to heel.
4.4
OBSERVATION WELLS
Seventeen temperature observation wells and two pressure observation wells are planned. Their
locations relative to the horizontal production wells and the vertical air injectors are shown on
Figure 4-1.
The observation wells numbered one through nine will be drilled first and used to position the
horizontal sections and vertical air injectors. They will then be completed as temperature
measurement wells as shown on Figure 4-7. Eleven thermocouples will be placed through the
production zone at 2 m spacing and five thermocouples will be placed above the production zone
at 10 m spacing. The material list for each observation well is as follows:
Surface Casing:
Production Casing:
Tubing:
Thermocouples:
177.8 mm, 25.3 kg/m, H-40, Round Thread Conn., length 150 m
114.3 mm, 14.1 kg/m, J-55, Round Thread Conn., length 430 m
60.3 mm, 6.99 kg/m, J-55, EUE, 8R, length 420 m
Underground Type K, 16 measurement points, cable length 420 m
The temperature observation wells (TOBs) numbered one through five will be completed as
shown in Figure 4-8. They will have the same arrangement of thermocouples as the temperature
measurement wells. The temperature observation wells numbered six through eight are planned
for the future. The material list for each TOB well is as follows:
Surface Casing:
Tubing:
Thermocouples:
114.3 mm, 14.1 kg/m, J-55, Round Thread Conn., length 150 m
60.3 mm, 6.99 kg/m, J-55, EUE, 8R, length 430 m
Underground Type K, 16 measurement points, cable length 420 m
Two pressure observation wells are planned. One will be drilled and completed at the start of the
Project (POB1), and the other (POB2) will be added in the future. They will be completed as
shown on Figure 4-9. Pressure will be measured at the top of the Wabiskaw Formation and at the
top of the lower Clearwater Shale. The placement of perforations will be determined during
detailed engineering, giving due consideration to the relative location of the water disposal wells.
The material list for each POB well is as follows:
Surface Casing:
Production Casing:
Tubing:
4.5
177.8 mm, 25.3 kg/m, H-40, Round Thread Conn., length 150 m
114.3 mm, 14.1 kg/m, J-55, Round Thread Conn., length 350 m
60.3 mm, 6.99 kg/m, J-55, EUE, 8R, length 320 m
Water disposal wells will be completed as shown on Figure 4-10. Surface casing will be set 25 m
into the Clearwater Sandstone with thermal cement to surface. Production casing will be set
through the Clearwater Sandstone with thermal cement to surface. Two or more disposal wells
may be required depending on injectivity test results. The material list for each disposal well is as
follows:
Surface Casing:
Production Casing:
Tubing:
Packer:
4.6
244.5 mm, 48.1 kg/m, H-40, Round Thread Conn., length 320 m
177.8 mm, 29.8 kg/m, J-55, Round Thread Conn., length 335 m
73.0 mm, Fibreglass, length 325 m
177.8 mm x 73 mm
4.7
The
4.8
LIFT SYSTEM
The production lift will be provided by the combustion gas flow with the THAIOIL/water
production. The minimum gas/liquid ratio will be 650. The down hole pressure will be
maintained at a minimum of 4000 kPa to ensure sufficient lift pressure. Provision for a gas lift
system should be incorporated into the detailed design.
BASE OF McMURRAY
420mKB
60.3mm TUBING
Set at 425mKB. Thermal Cement To Surface
Inside and Out
THERMOCOUPLE CABLE
BASE OF McMURRAY
420mKB
114.3mm CASING
Thermal Cement to Surface
60.3mm TUBING
PERFORATIONS
PACKER
PERFORATIONS
TOP OF Mc MURRAY ZONE
400mKB
5.1
FACILITIES OVERVIEW
Site access will be via an all-weather road, which will intersect the BP well access road to the gas
plant about 2 km northwest of the Project site (Figure 5-1).The surface facility will consist of
connections to the three injection wells and three production wells, a steam generation plant, an
air compression plant and a production treating facility. Plot plans of the facilities are shown in
Figures 5-2 and 5-3.
As shown in the Process Flow Diagram (PFD) (Figure 5-4), the production consisting of
THAIOIL, water and gas will flow directly from the wellheads to the production treatment
facility. The facilities are designed on the basis of the predictions provided in Section 3.4. The
block Process and Instrument Diagram (P&ID) corresponding to the PFD is shown in Figure 5-5.
The first element in the production facility is a wellhead separator. This provides damping for
production slugs and separates the produced gas from the liquids.
The produced liquids are cooled to an operating temperature (to approximately 90C) acceptable
for separating partially upgraded bitumen and water. The liquid production (total fluid and water
cut) of each production well will be metered. The metered data from each well will be reconciled
with THAIOIL sales volumes and the metered produced water volumes.
The produced gas will be cooled to approximately 80C, passed through a liquid knockout vessel
and then vented to the atmosphere through a stack. The vented gas from each production well
will be metered and analyzed for composition. A gas sweetening unit will be installed and
operating at all times.
Water and hydrocarbons condensed from the produced gas will be combined with the other
produced liquids. The water will flow to the produced water tanks and ultimately be sent to deep
well disposal. As the production wells will have a screened liner, the amount of produced solids
is expected to be small; it will be periodically removed from the treater and tankage and disposed
of in an environmentally acceptable manner.
THAIOIL will flow to production tanks from where it will be trucked to sales. Tank gauging
will be used to meter the produced THAIOIL volume.
The injection steam is to be used to preheat the injection and production wells. It is expected that
the preheating of the three THAI well pairs will be completed in less than a year, after which
time the steam generation facilities will be retained for stand-by.
5.2
5.3
5.4
AIR COMPRESSION
The drivers are expected to run on natural gas (about 23,300 m3 per day of natural gas) but
alternatively may be designed to run on electricity that could be made available by power line
extension from a nearby existing line. The air compressor P&ID is provided in Figure 5-8. The
P&ID indicates three trains of compressors, however, two larger trains could be incorporated as
an alternate design approach.
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
PROCESS UTILITIES
Process utilities will include a fuel gas scrubber and instrument air package as shown in the P&ID
(Figure 5-13).
5.13
5.14
5.15
5.16
HEAT RECOVERY
Heat recovery will not be incorporated into the pilot design, but data necessary to evaluate and
design a heat recovery system for a commercial operation will be collected. Production stream
volumes, temperatures and pressures will be measured to support an assessment of the
commercial viability of a heat recovery system to reduce net process energy intensity.
5.17
DILUENT SYSTEM
Diluent will be available to blend with the THAIOIL to reduce the gravity and promote
separation.
6.1
POWER
An existing 3-phase electricity line is located approximately 2.5 km NE of the Project site.
Discussions with Aquila Networks indicate that once an agreement is signed it takes up to 20
weeks to install the service. The electrical demand for the Project will depend on whether
electrical drivers or gas drivers are specified for the compressors.
6.2
NATURAL GAS
Discussions with ATCO Gas indicate that a high-pressure natural gas pipeline is located north of
the development area. Approximately eight months lead-time is required to install gas service
once an agreement is signed.
6.3
COMMUNICATIONS
A computerized data collection with direct link to the Orion Calgary office will be installed with
the capability to provide 24-hour continuous real-time access to the data generation, control
measurements and data base material at the site from the Orion office. The objective is to provide
the identical access to site information at the Calgary office as is available at the Project site.
Direct control of the Project operations will be restricted to the control room on site.
Discussions with Telus indicate that the area is covered by cell phone service and that both
conventiona l copper wire and high speed fibre optic cable service is available from the Highway
881 corridor. The estimated time for telecom service installation is three to six months depending
on the type of service required.
6.4
CAMP FACILITIES
Two large full-service open camps are located at the Conklin 4-corners intersection,
approximately 13 km east of the site. It is planned that both construction and operating personnel
will use these camps. Contractors may opt to provide on-site facilities.
6.5
CONSTRUCTION FACILITIES
Temporary construction facilities will include:
construction office,
warehouse,
lay-down yard, and
parking lot.
OPERATING DESIGN
7.1
7.2
accomplished by injecting steam or hot water (to avoid thermal shock) to prevent the
flow back and then filling the well with water to prevent inflow.
The horizontal production wells should be shut down under pressure to eliminate the
possibility of oxygen entering the well and causing damage by combustion in the well in
the manner described for vertical wells. The horizontal well design incorporates the
capability of circulating the well to flush out material that may have settled in the well or
to reheat the well as necessary if shut down for an extended period.
The focus of the data collection program will be to address the uncertainties in the experimental
parameters and to achieve regulatory compliance.
THAIOIL, water and gas production, and water and air injection are to be
metered for each well and reconciled with total THAIOIL sales, total water
disposal and total gas production.
Produced gas will be monitored continuously for O2 , H2 S and CO content. On a
routine basis, gas chromatography will be used to obtain a full compositional
analysis including CO2 .
On a routine basis, THAIOIL samples will be analyzed for density, viscosity
and SARA (saturates, aromatics, resins and asphaltenes) components.
On a routine basis, produced water will be analyzed for pH, anions, cations,
dissolved solids and entrained oil.
A test program will be initiated to analyze potential corrosion problems with the
downhole tubulars.
Thermocouples will be installed in the injection wells, the production wells and a
number of observation wells to monitor in-situ temperatures.
A systematic program will be initiated to test various chemical additives in the
breaking of the produced emulsions.
A corrosion- monitoring program will be in place for the surface facilities.
A number of benchmarks will be placed strategically in and around the Project
site. Baseline elevations will be checked periodically to confirm that there is no
ground movement.
THAIOIL samples will be collected on a routine basis and forwarded to an
external lab for analysis.
The Project performance data will be used to develop a history match and improve the predictive
capability of the numerical simulation.
7.3
WELL INTEGRITY
There are two main issues related to the well operations as follows:
The horizontal production wells have a risk of being damaged by combustion heat. The
main interventions are to inject cooling water or steam into the vertical injector and/or the
horizontal well to cool the production. This can be done on a slug basis or on a
continuous basis. If the overheating cannot be remedied, then reducing or stopping air
injection will be necessary.
Excessive sand production may result if the sand control slots or wire wrap is eroded by
high velocity gas carrying sand into the well. The effect is like sand blasting and the
holes will become larger. This is a common problem with conventional in-situ
recovery operations between vertical wells. Repair of this problem would be difficult.
However, as the combustion front with the THAI process moves along the horizontal
well, the erosion is most likely at the combustion front where the bulk of the production
and gas will enter. If the sand control is breached at the combustion front, the breached
section will disappear behind the production front as the front moves forward.
7.4
waste s normally associated with conventional steam generation will only be produced during the
start-up period.
TABLE 7-1
W ASTE STREAMS
Waste Stream
Produced solids
Flow Rate
3
Net solids: 1 m /d
7 m /d (during start up
only)
3
20 m /d (during start up
only)
3
3
0.4 10 Sm /d (day)
Combustion Gas
255 10 Sm /d (dry)
Produced Water
120 m /d
Storage/Disposal
Enclosed tank with
vapour recovery &
trucked out
Disposal well
Disposal well
Flared (incinerated)
Vented
Disposal well
Characterization
Sand with a
hydrocarbon constituent
residue
Highly mineralized
water
Highly
mineralized
water
Methane, carbon
dioxide with a H2S
component
Nitrogen, carbon dioxide
with sulphur
components
Water created by the
THAI process & water
from the oil sands
Produced Solids
The production wells are completed with sand exclusion liners to prevent sand and other solid
materials from being carried into the production wells. It is expected that very fine solids will
pass through the sand exclusion liners and be co-produced with the THAIOIL. The solids will
accumulate in the oil/water separation facilities and production tanks. Approximately once per
year the solids (with residual hydrocarbon) will be removed for off-site disposal at a commercial
approved facility.
Lubricants
Various rotating equipment and air compression facilities will require regular change out of
lubricants. The used lubricants will be collected and disposed of by an approved used-oil
handling third party contractor.
Other Oily Wastes
Oily rags, filter cartridges and any other contaminated solid wastes will be stored in a dedicated
oily waste bin and disposed of by a third party contractor.
Sewage and Grey Water
All sewage and grey water will be collected in holding tanks that will be emptied as required by a
third party contractor and disposed of at an approved facility.
REGULATORY COMPLIANCE
This section summarizes the regulatory compliance requirements that will impact the final design
and construction of the Project. At the time of writing, February 2004, applications for approval
have been submitted (October, 2003) to the Alberta Energy and Utilities Board (EUB), under the
Oil Sands Conservation Act and to Alberta Environment (AENV) under the Environmental
Protection and Enhancement Act. Approval of these applications is anticipated in the first quarter
of 2004. Applications for several additional approvals will be submitted in 2004, after the
decision to proceed.
Regulatory approvals associated with the provision of natural gas and electrical services will be
the responsibility of those providing the service.
8.1
8.2
AENV and ASRD administer a number of guidelines, standards and codes of practice dealing
with air, water, land and waste management that will impact the Project. These should be
evaluated during final design.
8.3
8.4
OTHER
Depending on the final design of the Project, additional approvals and compliance requirements
may arise. These include for example flare stack lighting and tower and radio frequency
approvals from Transport Canada.
Risk Description
Excess heat in the production
well
Preliminary Design
Considerations
The injection and production
wells are completed with the
facility to inject steam/water to
control excess heat in the
production well
Thermocouples in the well to
identify heating
Continuous monitoring of O2
content in production gas stream
System to inject steam/water to
control excess heat in the
production well
Control of overheating through
steam/water injection
Provide instrumentation
and monitoring system
details
Define air/water/steam
injection rates and
monitoring system
Risk Description
Excessive corrosion in
production well related to
produced fluids
Preliminary Design
Considerations
Ongoing monitoring of well
temperatures
Control well temperatures to
maintain any water in the gas
phase
Continuous monitoring of O2 in
the produced gas
Operate the well to maintain a
pool of oil or water above the
production well as a seal to
prevent oxygen entry by
increasing bottom hole pressure
Continuous monitoring of O2 in
the produced gas
Adjust air injection to reduce O2
content
Shutdown at specified level
Drilling program in Project area
confirmed existence of
competent cap rock
Confirm preliminary
design approach or
identify alternatives
Monitoring program
None
Risk Description
Combustion is not symmetrical
about the production well
Emulsion formation
Preliminary Design
Considerations
The interventions available to
control combustion
conformance are air injection
rates and individual well
production rates and use of wet
combustion
Add diluent and optimize
demulsifying chemicals as
needed
None
Include flexibility to
resolve any issues
following operational
start-up
Review corrosion test
results
Confirm preliminary
design approach or
identify alternatives
Develop corrosion
monitoring program
Identify metallurgical
solutions
Confirm preliminary
design approach
Resolve problems during
drilling and completion
process
Confirm preliminary
design approach or
identify alternatives
Define in start-up,
operating and shutdown
procedures
Confirm preliminary
design approach or
identify alternatives
Risk Description
Erosion of pipes and valves by
sand in the production stream
Preliminary Design
Considerations
Sparing of key components and
replacement as necessary
Continuous monitoring of H2 S
content in the produced gas
Gas sweetening capability
incorporated
Shutdown at defined level
APPENDIX A
GEOLOGY
GEOLOGY
RESOURCE DESCRIPTION
Orion currently holds 45 sections of land under oil sands lease agreements in the Conklin area of northeastern Alberta. The site of the planned Project in Sections 12 and 13, Twp 77, R. 9, W4M is held under
Oil Sands Agreement 7400010012 (Lease 012), which expires in 2015-01-13. The natural gas rights in
the Clearwater Formation are held by BP Canada. The natural gas rights in the McMurray Formation in
Sections 12 and 13 are undisposed Crown rights.
Orion has conducted an extensive review of the regional geological database. Within the six township
(Twp 76 to 77 Ranges 8 to 10 W4M) area surrounding the site, 187 wells have been drilled which
includes 93 gas wells, 46 standing wells, 45 dry and abandoned wells and 3 water disposal wells. Of the
28 wells on Orion oil sands leases, 7 had log results indicating bitumen saturation in McMurray channel
sandstones. Orion has also closely followed the recent review of geological data in the Leismer Field by
the EUB in dealing with the ongoing gas-associated-with-bitumen issue. Based on this abundance of data
and the resulting interpretation, Orion is very confident of its characterization of the regional geology as it
directly relates to the proposed Project site.
In early 2003 Orion conducted a 3-D seismic program of an approximate 20 km2 area in Lease 012, which
includes the Project site (see Figure A-1 McMurray Seismic Character Correlation Map). The objective
was to obtain data that could be correlated to wells in close proximity to the area, which would enable
Orion to identify a Project location with acceptable reservoir characteristics and which also was a suitable
development site within reasonable proximity to existing infrastructure.
REGIONAL GEOLOGY
The bitumen resource target for the Project is found in the McMurray Formation, which is the basal unit
of the Lower Cretaceous Mannville Group. The McMurray Formation contains the significant bitumen
reserves that constitute the Athabasca oil sands deposit of Northeastern Alberta. The study area for this
regional discussion encompasses Township 76 and 77 Ranges 8 to 10 W4M.
The Mannville Group is composed of very weakly consolidated clastic sedimentary rocks that rest
unconformably on the carbonates of the Devonian Beaverhill Lake Group (Figure A-2 Generalized
Stratigraphic Section). In Northeastern Alberta, the Mannville Group is divided into three formations.
From oldest to youngest these formations are: the McMurray, the Clearwater, and the Grand Rapids. The
Mannville Group is overlain by Cretaceous Colorado Shale that is truncated by Quaternary glacial
deposits as shown in Figure A-3 (Project Site Cross-Section).
GEOLOGY OF THE M CM URRAY FORMATION PRODUCTION ZONE
The regional McMurray Formation consists of a lower member of fining upward fluvial to
estuarine sandstones and an upper member of coarsening upwards brackish bay fill deposits,
PROPR IETARY AND CONFIDENTIAL
separated by a mappable flooding surface. Generally, the regional McMurray, especially the
Upper McMurray exhibits a horizontally layered package. The thickness of the Lower
McMurray, however, is controlled by topography on the pre-Cretaceous unconformity surface, as
illustrated by the Devonian Structure map (Figure A-4) and the Clearwater Marker to Devonian
Isopach (Figure A-5).
Due to lowstand sea level events during the Upper McMurray time, at least two incised valley
systems are interpreted to have eroded up to 30 m of the regional McMurray Formation. Stacked
estuarine channel sandstones, which infilled these valleys, comprise the target reservoir for the
Project. A large-scale sedimentary structure, known as inclined heterolithic stratification (IHS) is
often observed within valley fill channel sandstones.
Structure on the top of the McMurray Formation, as shown on the McMurray Structure map
(Figure A-6), is influenced by both drape over the pre-Cretaceous unconformity surface as well as
differential compaction over the incised valley sequences. These structural influences diminish
up the stratigraphic section, as seen on the Base Clearwater Structure map (Figure A-7).
Structurally, the McMurray Formation top dips approximately 1.7 m per km to the southwest (see
McMurray Top Structure Map Figure A-6). Together with the surface topography, the resulting
depth to the McMurray top varies from 300 m to 480 m in the regional study area. Based on an
estimated fracture gradient of 20 kPa per metre of depth, the fracture pressure of the McMurray at
400 m would be 8,000 kPa.
CLEARWATER FORMATION
The Clearwater Formation is made up of two sand-shale sequences in the Project area, described
below:
Wabiskaw Member
The lowermost part of the Clearwater Formation is made up of the Wabiskaw Member,
which directly and sharply overlies the McMurray Formation. This member, typically
around 10 m thick, consists of upward cleaning, transgressive marine silty sands.
Sufficient stratigraphic variability occurs in this member to develop numerous small traps
for gas and some minor amounts of bitumen (Wabiskaw Gas Pay Map, Figure A-8). A
regionally correlatable, initial transgressive shale at the base of the Wabiskaw Member
separates it from the McMurray Formation.
Lower Clearwater Shale - Production Zone Caprock
Abruptly overlying the Wabiskaw Member is a shale sequence that is about 22 m thick
forming a major caprock between the Clearwater Sandstone Member above and the
WabiskawMcMurray below (Figure A-9 Caprock to McMurray Isopach Map). It
includes the five-metre thick Wabiskaw Marker, a regionally correlatable bentonite bed.
Over a five-metre interval, this shale sequence quickly grades into the overlying
Clearwater Sandstone (Figure A-10 Clearwater Sandstone Isopach)
Clearwater Sandstone Water Disposal Zone
The Clearwater Sandstone is a very uniform, 35 m thick marine shoreface complex that
hosts a significant, structurally-controlled gas accumulation, extending into the
northeastern-most part of the Orion lease holdings (Figure A-11 Clearwater Sandstone
Gas Pay Map). This Clearwater Sandstone is the proposed water disposal zone for the
Project.
Upper Clearwater Shale
The Clearwater Sandstone is sharply overlain by a series of interbedded shales and
cleaning-upward sandy siltstone packages that total 22 to 36 m in thickness, which form
the seal for the Clearwater Sandstone gas pool.
The top of the Clearwater Formation has a short, transitional contact with the base of the
Grand Rapids Formation.
GRAND RAPIDS FORMATION
The Grand Rapids Formation can be divided into an upper and lower member:
The Lower Grand Rapids Member is a 30 to 40 m thick upward-coarsening sandstone, which is
water wet throughout the area.
The Upper Grand Rapids member consists of 38 to 60 m of up to four stacked coarseningupwards sand cycles separated by impermeable, thin marine shales. Gas is trapped in combined
structural-stratigraphic traps in the upper cycles in the regional study area.
COLORADO GROUP
Tight marine shales of the Cretaceous Colorado Group overlie the Grand Rapids Formation. The
Colorado Group is dramatically truncated at the unconformable contact with the unconsolidated
Quaternary glacial drift. Preserved Colorado Group thickness varies from as little as 5 m to more
than 80 m in the study area (Figure A-12 Preserved Colorado Isopach Map). In the vicinity of the
proposed Project, 40 to 60 m of Colorado section is expected. The Colorado Group Shale forms
an effective seal between the brackish water- and hydrocarbon-charged Cretaceous sediments
below and the freshwater-bearing glacial sediments above.
QUATERNARY WATER SOURCE HORIZON
The surficial glacial drift is made up of gravel, sand, silt and clay. The Empress Formation is the
proposed fresh water source for the Project at an estimated depth of 145 m to 150 m below
surface in the area of the Project site.
Reservoir Quality
Reservoir quality is considered to be good to excellent based on petrophysical log responses. The
four wells with log indicated bitumen pay in the seismic survey area have a weighted average of
21.4 m of pay at 33 percent sandstone density porosity, using cut-offs of 20 ohm-m and 30
percent porosity as shown in the Net Bitumen Pay Map (Figure A-14). Core from the test holes
in the pilot site area confirmed petrophysical responses. The sands are well sorted, upper fine to
lower medium grained, with local matrix supported intraformational conglomerate. Pay in the
pilot site area is 23 to 24 metres thick with a minimum bitumen saturation of 70 per cent and a
minimum porosity of 30 percent. Porosity values are as high as 39 percent and bitumen
saturation can exceed 90 percent of pore volume. Permeability is greater than one Darcy, with
over 11 Darcies observed. Higher gamma ray values in the pay column corresponded to
intraformational conglomerate.
WATER DISPOSAL ZONE
Orion proposes to dispose of water produced from the Project into the Clearwater Sandstone.
Water is currently being disposed into the Clearwater Sandstone by Devon Canada Corporation
using a well at 3-7-77-7W4M, about 11 km from the proposed Project site. Since 1982, at the 37-77-7W4 well, 240,309 m3 of water have been disposed into the Clearwater Sandstone at rates as
high as 509 m3 per day.
Mapping and correlation based on petrophysical logs indicate that the geology for the Clearwater
Sandstone disposal zone at the proposed Project site is the same as at the 3-7 disposal well. At
the proposed Project site, more than 24 m of wet sandstone underlying 7m of gas charged
sandstone is anticipated. A nearby well at 10-18-77-8W4 cored Clearwater sandstone with
permeabilities from 1.5 to 6 Darcies and porosities consistently above 30 percent. The
Clearwater Sandstone underlies the entire study area and is as thick as 40 m elsewhere on the
Orion lease.
An application, under Section 26 of the Oil and Gas Conservation Act and Guide-51, for
subsurface water disposal into the Clearwater Sandstone will be prepared and submitted under a
separate cover in 2004.
APPENDIX B
PRELIMINARY PROJECT SCHEDULE
Task Name
Duration
Start
Finish
Public Consultation
324 days
Mon 10/20/03
Wed 12/29/04
Business Plan
176 days
Mon 3/15/04
Mon 11/1/04
1 day
Mon 3/15/04
Mon 3/15/04
95 days
Thu 7/1/04
Mon 11/1/04
Qtr 4, 2003
Oct Nov
Dec
Qtr 1, 2004
Jan Feb
Qtr 2, 2004
Apr May
Mar
Jun
Qtr 3, 2004
Jul
Aug
11
12
13
14
3/15
15
16
230 days
Mon 3/1/04
Fri 12/31/04
17
Project Management
DBM Complete
1 day
Mon 3/1/04
Mon 3/1/04
18
1 day
Mon 3/15/04
Mon 3/15/04
3/15
19
1 day
Mon 3/15/04
Mon 3/15/04
3/15
20
1 day
Mon 3/15/04
Mon 3/15/04
3/15
21
1 day
Mon 5/3/04
Mon 5/3/04
22
Staffing
228 days
Wed 3/3/04
Fri 12/31/04
23
1 day
Mon 3/1/04
Mon 3/1/04
174 days
Wed 2/18/04
Mon 10/4/04
1 day
Fri 2/20/04
Fri 2/20/04
3/1
5/3
3/1
24
25
Regulatory Approvals
26
27
10 days
Wed 2/18/04
Tue 3/2/04
28
45 days
Thu 4/1/04
Tue 6/1/04
29
44 days
Mon 3/1/04
Thu 4/29/04
30
23 days
Mon 3/15/04
Wed 4/14/04
31
77 days
Tue 6/29/04
Mon 10/4/04
2/20
3/15
6/29
32
33
47 days
Wed 10/29/03
Wed 12/31/03
34
6 days
Wed 10/29/03
Wed 11/5/03
35
Liason with Local Alta Sustainable Resources Development Officer re access road
5 days
Mon 11/3/03
Fri 11/7/03
36
3 days
Thu 11/6/03
Sun 11/9/03
37
6 days
Mon 11/10/03
Mon 11/17/03
38
39
23 days
Mon 12/1/03
Wed 12/31/03
40
Core Analysis
Core Analysis at Core Lab
11 days
Mon 12/1/03
Mon 12/15/03
41
11 days
Mon 12/1/03
Mon 12/15/03
42
23 days
Mon 12/1/03
Wed 12/31/03
1 day
Mon 3/15/04
Mon 3/15/04
43
44
3/15
45
46
47
48
49
50
51
52
53
54
55
165 days
Mon 3/1/04
Fri 10/1/04
53 days
Mon 3/15/04
Tue 5/25/04
1 day
Mon 3/15/04
Mon 3/15/04
13 days
Tue 3/16/04
Thu 4/1/04
1 day
Fri 4/2/04
Fri 4/2/04
11 days
Fri 4/2/04
Fri 4/16/04
5 days
Mon 4/19/04
Fri 4/23/04
6 days
Mon 4/26/04
Sat 5/1/04
Drilling Programs
24 days
Tue 3/30/04
Fri 4/30/04
Drill OB wells
18 days
Sat 5/1/04
Tue 5/25/04
9 days
Wed 5/26/04
Sat 6/5/04
1 day
Sat 6/5/04
Sat 6/5/04
3/15
4/2
56
57
58
6/5
59
60
82 days
Thu 4/1/04
Tue 7/20/04
61
22 days
Thu 4/1/04
Fri 4/30/04
62
22 days
Thu 4/1/04
Fri 4/30/04
Page 1
Sep
Qtr 4, 2004
Oct Nov
Dec
Qtr 1, 2005
Jan Feb
Mar
Qtr 2, 2005
Apr May
Jun
Qtr 3, 2005
Jul
Aug
Sep
Qtr 4, 2005
Oct Nov
Dec
Qtr 1, 2006
Jan Feb
Task Name
Duration
Start
Finish
63
7 days
Sun 6/6/04
Mon 6/14/04
64
7 days
Tue 6/15/04
Wed 6/23/04
65
12 days
Wed 6/16/04
Thu 7/1/04
66
12 days
Tue 6/15/04
Wed 6/30/04
67
13 days
Fri 7/2/04
Tue 7/20/04
Qtr 4, 2003
Oct Nov
Dec
Qtr 1, 2004
Jan Feb
Mar
Qtr 2, 2004
Apr May
Jun
Qtr 3, 2004
Jul
Aug
68
69
111 days
Thu 4/1/04
Sun 8/22/04
70
22 days
Thu 4/1/04
Fri 4/30/04
71
11 days
Thu 4/1/04
Thu 4/15/04
72
11 days
Sun 6/6/04
Fri 6/18/04
73
7 days
Mon 6/21/04
Tue 6/29/04
74
Lease Construction
6 days
Wed 7/21/04
Tue 7/27/04
75
13 days
Thu 7/22/04
Wed 8/4/04
76
15 days
Thu 8/5/04
Sun 8/22/04
77
78
142 days
Thu 4/1/04
Fri 10/1/04
79
21 days
Thu 4/1/04
Thu 4/29/04
80
11 days
Thu 4/1/04
Thu 4/15/04
81
Survey
11 days
Sun 6/6/04
Fri 6/18/04
82
83
84
85
7 days
Mon 6/21/04
Tue 6/29/04
13 days
Fri 7/16/04
Sat 7/31/04
4 days
Mon 8/23/04
Thu 8/26/04
23 days
Wed 9/1/04
Fri 10/1/04
95 days
Mon 5/10/04
Mon 9/6/04
11 days
Mon 5/10/04
Mon 5/24/04
86
87
88
89
90
91
92
93
Drilling Operations
1 day
Fri 7/23/04
Fri 7/23/04
14 days
Sat 7/24/04
Sat 8/7/04
5 days
Sun 8/8/04
Thu 8/12/04
14 days
Mon 8/2/04
Tue 8/17/04
8 days
Fri 8/27/04
Mon 9/6/04
7/23
94
95
79 days
Thu 4/1/04
Thu 7/15/04
96
21 days
Thu 4/1/04
Thu 4/29/04
97
11 days
Thu 4/1/04
Thu 4/15/04
98
77 days
Mon 4/5/04
Thu 7/15/04
99
7 days
Thu 4/1/04
Fri 4/9/04
100
Survey
11 days
Mon 5/17/04
Mon 5/31/04
101
14 days
Wed 5/12/04
Mon 5/31/04
102
6 days
Tue 6/1/04
Sun 6/6/04
103
104
161 days
Mon 3/1/04
Mon 9/27/04
105
Completion Operations
Confirm Tubular Metalurgy
11 days
Mon 3/1/04
Mon 3/15/04
106
69 days
Wed 5/5/04
Mon 8/2/04
107
21 days
Mon 5/3/04
Mon 5/31/04
108
8 days
Thu 8/12/04
Sun 8/22/04
109
5 days
Mon 8/23/04
Fri 8/27/04
110
6 days
Fri 8/27/04
Thu 9/2/04
111
2 days
Tue 9/7/04
Wed 9/8/04
112
Recompletion of OB Wells
13 days
Thu 9/9/04
Mon 9/27/04
197 days
Mon 3/15/04
Tue 11/30/04
93 days
Mon 3/15/04
Fri 7/16/04
3/1
113
114
115
Page 2
Sep
Qtr 4, 2004
Oct Nov
Dec
Qtr 1, 2005
Jan Feb
Mar
Qtr 2, 2005
Apr May
Jun
Qtr 3, 2005
Jul
Aug
Sep
Qtr 4, 2005
Oct Nov
Dec
Qtr 1, 2006
Jan Feb
Task Name
Duration
Start
Finish
116
1 day
Mon 3/15/04
117
11 days
Tue 3/16/04
Tue 3/30/04
118
Soils testing
11 days
Wed 3/17/04
Wed 3/31/04
119
79 days
Mon 3/15/04
Mon 6/28/04
120
46 days
Tue 5/18/04
Fri 7/16/04
Qtr 4, 2003
Oct Nov
Dec
Qtr 1, 2004
Jan Feb
Mon 3/15/04
Mar
Qtr 2, 2004
Apr May
3/15
Qtr 3, 2004
Jul
Aug
Jun
Sep
Qtr 4, 2004
Oct Nov
Dec
Qtr 1, 2005
Jan Feb
121
122
101 days
Thu 5/27/04
Fri 10/1/04
123
Procurement
Place order for Equipment
50 days
Thu 5/27/04
Fri 7/30/04
124
Equipment Delivery
74 days
Thu 7/1/04
Fri 10/1/04
103 days
Fri 3/19/04
Mon 8/2/04
7 days
Tue 6/1/04
Mon 6/7/04
10 days
Tue 6/1/04
Thu 6/10/04
125
126
127
128
Completed Site Prep Plan including road requirements & facility locations
129
1 day
Mon 5/31/04
Mon 5/31/04
130
9 days
Thu 6/3/04
Fri 6/11/04
131
Upgrade BP Road
9 days
Mon 6/14/04
Thu 6/24/04
132
15 days
Tue 6/15/04
Mon 7/5/04
133
1 day
Mon 8/2/04
Mon 8/2/04
5/31
8/2
134
135
9 days
Fri 3/19/04
Wed 3/31/04
136
1 day
Fri 3/19/04
Fri 3/19/04
3/19
137
Natural Gas
1 day
Fri 3/19/04
Fri 3/19/04
3/19
138
Telecommunications
9 days
Fri 3/19/04
Wed 3/31/04
3/19
Fri 11/26/04
139
Site Utilities
190 days
Mon 3/22/04
140
Gas
190 days
Mon 3/22/04
Fri 11/26/04
141
Power
114 days
Mon 3/22/04
Mon 8/16/04
142
Telecommunication
142 days
Thu 4/1/04
Fri 10/1/04
91 days
Mon 8/2/04
Tue 11/30/04
91 days
Mon 8/2/04
Tue 11/30/04
350 days
Wed 9/1/04
Sat 12/31/05
65 days
Wed 9/1/04
Tue 11/30/04
143
144
145
Construction
Production Facilities Construction
146
147
148
Inspection
149
Commisioning
150
Start up of Operations
151
23 days
Wed 12/1/04
Fri 12/31/04
261 days
Mon 1/3/05
Sat 12/31/05
186 days
Mon 3/1/04
Mon 11/1/04
152
186 days
Mon 3/1/04
Mon 11/1/04
153
Ignition Procedure
183 days
Mon 3/1/04
Wed 10/27/04
154
Communication Procedure
183 days
Mon 3/1/04
Wed 10/27/04
155
183 days
Mon 3/1/04
Wed 10/27/04
156
183 days
Mon 3/1/04
Wed 10/27/04
Fri 11/26/04
1/3
157
158
182 days
Thu 4/1/04
159
HS&E Management
Environment Protection Plan
83 days
Fri 6/11/04
Fri 9/24/04
160
182 days
Thu 4/1/04
Fri 11/26/04
161
1 day
Mon 11/1/04
Mon 11/1/04
162
2 days
Thu 4/1/04
Fri 4/2/04
163
4 days
Mon 11/15/04
Thu 11/18/04
309 days
Mon 11/10/03
Thu 12/30/04
97 days
Mon 10/20/03
Mon 3/1/04
6/11
11/1
164
165
166
167
Page 3
Mar
Qtr 2, 2005
Apr May
Jun
Qtr 3, 2005
Jul
Aug
Sep
Qtr 4, 2005
Oct Nov
Dec
Qtr 1, 2006
Jan Feb