A reduction in production operating costs. as a direct result of field consolidation, lowers a well's economic producing limit and enhances the current value of the producing property.
Field consolidation is examined in this paper as a method of reducing operating costs and increasing production in an effort to maximize product netback and field life. Consolidation schemes ranging from single well programs to the tie-in of multiple wells are addressed in terms of the incentives, relative costs and resulting economic benefits of consolidating or continuing to produce as single well batteries. Economic guidelines are provided to enable other operators to asses s the probable merit of a consolidation scheme.
As the major operator in the Kisbey field in southeastern Saskatchewan, Canadian Hunter Exploration Ltd. undertook an aggressive consolidation program in late 1988/early 1989 J tieing-in 18 producing oilwells and constructing full battery facilities. The new operating scheme has significantly increased the value of this property by immediately reducing operating costs and minimizing production downtime. Pre- and postconsolidation operating costs are discussed in detail to illustrate the magnitude of the cost savings. Ultimate hydrocarbon recovery in Kisbey will be maximized as a result of the incremental reserves attributed to the lower economic producing limit.
There are many ways and means of optimizing field production operations. One such method is the efficient and timely consolidation of producing wells within a defined producing area. In the early development stages of an oilfield J wells are typically produced to lease tanks and the fluid is trucked out for processing and/or sales. The solution gas is often flared. This single well battery approach to operating has both its advantages and shortcomings. In limited size reservoirs and/or in remote locations it is often the only way to produce the well. However J if the production reserve base is significant enough and the capital cost of building pipelines and process facilities is not prohibitive J a consolidation operating scheme can be very attractive. Consolidation here refers to tieing-in one or more oilwells to a central testing and process facility with a possible direct link to a sales pipeline. The Kisbey field in southeastern Saska tchewan will be used in this paper as an example of how consolidation can become the desired mode of operation.
The Kisbey field is located approximately 50 km northeast of Estevan. A location map is provided as Figure 1. The first Kisbey well, 13-12-8-6 W2 was put on production in June 1985. Production is obtained from the Frobisher/Alida zone at an average depth of 1200 mKB. The hydrocarbon reservoir is undersaturated and is experiencing an active water drive. Reservoir pressures in this field have stayed virtually constant due to the strong water aquifer. Development has proceeded on 32 hectare spacing and Canadian Hunter is the major operator in the field. Other operators producing out of the pool include Amoco, Encor and Kennibar. Canadian Hunter Exploration Ltd. proceeded with a consolidation program in the Kisbey field through late 1988/early 1989.
