Description of Coalbed Methane as a pdf file: Coalbed Methane.pdf
Coal Bed Methane
With
supply declining from conventional sources, coalbed methane (CBM) has
become an important source of natural gas supply, both in Canada and the
United States. Coalbed methane production accounted for 900 MMcfd (about
5%) of total raw gas output from the Western Canadian Sedimentary Basin (WCSB)
in 2008. Over 40 potential CBM plays have been identified in Canada in
basins and coal zones from coast to coast to coast. Coalbed methane is
also referred to as natural gas from coal (NGC) or coal seam gas (CSG).
Forward Energy provides two
kinds of analysis regarding Canadian CBM plays:
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Play Resource
Characterization - in-situ resource for CBM plays nationwide
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Production
Characterization of producing plays
There are 3 major
continuous gas accumulations developed in the WCSB that we consider as
tight gas areas: Deep Basin, Jean Marie and Medicine Hat/Milk River. All
of these regions demonstrate recent growth.
Play Resource Characterization
The in-situ gas resource of
CBM in Canada is estimated to be very large – between 400 and 700 Tcf.
However, this large resource is distributed in numerous basins and coal
zones (plays). Forward Energy has characterized the resources for over 30
CBM plays, ranging from Carboniferous coal measures in Nova Scotia to
Tertiary basins in British Columbia and including the major Jurassic
through Cretaceous coal zones in the Plains, Foothills and Front Ranges of
the WCSB. Each CBM play has different characteristics: age, depth, areal
extent, thickness, gas content, pressure, permeability, water saturation,
surface access, infrastructure, etc. What are the critical
characteristics of each play? Which plays are the most attractive?
Forward Energy has created
a summary Play Comparison Table of selected Canadian CBM
plays. The plays are ranked based on parameters prioritized by our
clients. Each play resource characterization is based on the best and
most current, publically-available information supplemented by data from
federal government reports and provincial agency databases. Comments on
uncertainty of interpretation, the availability of data for more detailed
analysis, Forward Energy’s play ranking and references are also
highlighted. The Table is delivered as an Excel file.
For
each play, a Play Descriptive Summary provides a brief written
description of the play and a compilation of key cross sections, maps,
tables and graphs that illustrate the risk, complexity and the
distribution of values. For the coal zones in the Alberta Plains and Nova
Scotia basins, the Play Descriptive Summaries include maps of coal zone
depth, coal thickness, gas content and in-situ resource density
(Bcf/section). Cross sections through the significant coal measures in
the Alberta Foothills and Front Ranges are included. CBM-targeted
drilling and production pilot project activity has been summarized for
those plays where commercial production has not been achieved or remains
confidential. The CBM Play Descriptive Summaries are delivered in
PDF format.
Custom Resource Characterization
In addition to the regional
play characterization described above, Forward Energy can also provide
custom characterization of the CBM resource in place, both for regional
plays and for focus areas. Additional local data on coal thickness, gas
content and pressure, combinations of selected coal zones and resource
density cutoff criteria can be incorporated into a custom analysis.
Production Characterization
As
Commercial CBM production
in Canada has been established in several plays in the Alberta Plains
region. Commerciality is based on either of the operator’s public
announcements or in areas of significant ongoing development:
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The Horseshoe Canyon
play in the Alberta Plains is the largest CBM producing play. Total
output was over 780 MMcfd onstream at year end 2008, as commingled
production from vertical wells in primarily “dry” coal measures.
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Over 120 MMcfd of
production has been established from multi-lateral horizontal wells in
“wet” coal seams of the Mannville play in the Corbett area |
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Play
sub-areas: Mannville producing and pilot areas; Horseshoe Canyon
sub-areas |
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Target play and
producing play assignment |
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Producing status |
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Year drilled and year
onstream |
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EUR / IP rate / decline rate estimation
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Well orientation and well completion type for
technology analysis |
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Township and section assignment for development density
analysis |
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Initial and current operator for performance
benchmarking |
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Monthly production data for type curve and production
analysis |
The Forward Energy CBM well
database currently contains data on almost 14,900 wells drilled to
year-end 2008. About 12,800 CBM wells had been connected and brought onto
production to year-end 2008.
Regional Play Overviews
From this proprietary database, Forward Energy has developed an overview
analysis of the two major producing plays and play sub-areas.
The overviews include:
Based on the Regional Play
Overviews, clients can then use their access to the CBM database to answer
questions with respect to focus areas, plays and benchmark operator
performance. The following is a list of some custom analysis options:
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Focus
area selection based on resource density, proprietary land, pilot
subareas, etc. |
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Play definitions
incorporating alternate play boundaries and zones |
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Local normalized
production profiles, water/gas performance
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Local EUR estimation:
custom type curves and periods |
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Apply cutoffs to EUR
per well to assess commercial success |
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Operator analysis and
performance benchmarking |
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Technology
comparisons, particularly well type |
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Spacing analysis by
play – trends in downspacing |
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Enhanced visualization
and mapping down to section and quarter section |
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Other |
Custom analysis is
conducted on a confidential and exclusive basis. Clients can realize
significant value added by integrating proprietary information on well
results/forecasts, capital and operating cost estimates, facility and
infrastructure positions, working interest positions, with Forward
Energy’s volumetric and physical data.
Forward Energy’s consistent
and rigorous study process, combined with our experience and insights are
a valuable resource for any client considering entry into, or evaluating
an existing position within, CBM plays in Canada.
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