Delphi Energy

The largest single operating cost for producers in the Berland field, southwest of Fox Creek, is related to transportation of produced water for disposal.  Often times, trucking costs vary greatly depending on the distance from a producer’s development to their nearest disposal option.  In a low commodity environment, when the disposal option is at a great distance from the producing field, the trucking costs alone can make a play uneconomic.

Specifically, the Berland field is home to prolific Montney acreage with water production that required producers to haul produced water distances greater than 160 km away, often leading to hauling times in excess of four hours round-trip.  Producers in this field have long been after a water management solution that will allow them to focus on executing their development plans.

Delphi Energy identified that Catapult’s solution and partner rate would lower their water handling OPEX below their existing cost of trucking water volumes alone.  The savings will enable Delphi to deploy more capital towards drilling more wells and increasing production.  Being pipeline connected to Catapult’s Berland facility not only eliminates the costs for trucking water but also promotes environmental and social governance. Less trucks on the roads also has the benefit of increasing safety while lowering Delphi’s carbon footprint.  It’s estimated the solution will eliminate >15,000 annual truck trips, thus reducing CO2 emissions by >1200 tonnes.

Highlights:

  • Infield facility drastically reduces local operators’ water handling OPEX
  • Pipeline connection to producer’s battery, reducing damage to infield road infrastructure
  • Pipeline connection allows for interrupted production through periods of bad weather or during spring break-up season
  • Catapult drilled an exploratory Bigstone Leduc well at our own risk
  • Freed up capital, allows producers to drill additional wells

Associated Links:

Berland Grand Opening

Press Release: Delphi & Catapult Partnership

 

Tower Case Study

Water sourcing and disposal costs make up a large portion of most oil and gas operators’ OPEX. The lifecycle of a water molecule, from being sourced to being reused or disposed of, can vary greatly depending on the water management options nearby. Catapult met with a Montney producer in the Tower field of British Columbia, to listen to their water management challenges and set out to lower their all-in water management costs.

Based on analysis of the operator’s water production in their main fields and forecasting future water requirements, Catapult developed a water management solution that could significantly cut the producer’s water handling costs. Developing a pipeline connected water management facility infield and adjacent to their main central battery eliminates not only the costs for trucking water but also promotes environmental and social governance. Less trucks on the roads also has the benefit of increasing safety while lowering the operator’s carbon footprint.

Highlights:

  • Pipeline connection to the producer’s battery eliminated trucking 

  • Acquired suspended wells for future water disposal purposes

  • Additional wells available to aid in future disposal expansion

  • Developed water reuse plan to complement long-term strategy in the area

 

Paramount Resources

After the advent of horizontal drilling, the oil and gas activity in the Kaybob field in the Fox Creek area has exploded.  With an increase in drilling activity in the Kaybob, came a dramatic need for water management services.  Wait times at local water disposal facilities were in excess of eight hours; increased wait times result in an increase in water management costs for oil and gas producers.  Aware of the problem, Catapult met with local Kaybob producers in an effort to help lower their water management OPEX.

One such company who faced increased wait times and a dramatic increase in water management OPEX was Trilogy Energy (now Paramount Resources).  After meeting with Trilogy to understand their specific water challenges, Catapult identified a solution that would be of direct benefit to them.  Trilogy provided Catapult with a suspended well bore that would later be converted to a disposal well.  In return, Catapult included a dedicated riser and preferential partner pricing for Trilogy once Catapult’s Fox Creek 7-7 water management facility became operational. 

By listening to Trilogy’s water management challenges, Catapult created a partnership that not only reduced Trilogy’s wait times and water management OPEX, but also provided the regional market with an increase in water disposal capacity.  Catapult’s creation of a mutually beneficial partnership model is transforming the water management industry and has set the bar for the level of client service that a water management company should provide.

Highlights:

  • Priority access for Paramount (Trilogy)

  • Dedicated riser that reduced wait-times

  • Future growth complemented long-term strategy in the area

  • Expanded Fox complex to meet increased demand

 

“Catapult Water Midstream has created a realistic approach to partnerships in the disposal sector. Through our partnership agreement, [Paramount] is able to drive down op-costs and generate greater returns for our shareholders.” – John Williams, EVP Kaybob, Paramount Resources