Inland Ocean Inc
PO Box 6949
San Antonio, Texas 78209
Dirks #4
Bee County, Texas
United States of America
API/UWI 42-025-33864
Stimulation Cost Estimate
Prepared for: Mr. Hans Helland
September 17, 2013
Version: 1
Submitted by:
Andrew Lu
Halliburton
8610 N. New Braunfels Ave.
Ste 614
San Antonio, Texas 78217
(210) 824-6190
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Halliburton appreciates the opportunity to present
this proposal and looks forward to being of service to you.
Foreword
Enclosed is our Cost Estimate for Stimulation Services in the referenced well. The information in this proposal includes well data, calculations, materials requirements, and cost estimates. This proposal is based on information from our database, our valuable field personnel and previous stimulation services in the area.
Halliburton Energy Services recognizes the importance of of supplying the highest quality products and services to our customers. Communication is a vital link in the completion process. Changes in well conditions which difer considerably from those provided for this recommendation should be discussed for changes in procedure or design. Laboratory testing, running of computer programs for job optimization, and equipment for the execution of this recommendation can be coordinated with the service center listed below.
Halliburton maintains Health, Safety & Environment (HSE) as a top priority and provides support on HSE matters as they relate to our business activities. Helping to define, establish and incorporate HSE responsibility and accountability through every level creates value for our customers. Our vision is to create an incident-free environment and to conduct business with no adverse environmental impact. By integrating HSE into all of our business activities, Halliburton demonstrates industry leadership in HSE performance.
Technical information on products and services can be accessed easily at http:\\
We appreciate the opportunity to present this proposal for your consideration and we look forward to being of service to you. Our Services for your well will be coordinated through the Service Center listed below. If you require any additional information or additional designs, please feel free to contact myself or our field representative listed below.
Prepared and Submitted by:
Andrew Lu
Account Representative
SERVICE CENTER:Mission, Texas
SERVICE COORDINATOR:Billy Roschel, Steve Brininger, Tommy Leathers,
David Wilson, Mike Guthrie
PHONE NUMBER: 1-281-575-5552
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Technical Discussion
One Simple Change Can…
- Decrease Completion Cost
- Lower treating pressure can result in savings of $60,000 per well
- Establishing rate quicker reduces pumping time by more than 10%
- Increase Production Rates
- Easier placement of large proppant sizes means greater conductivity
- Reduce the Risk of Screenout
- More competent near wellbore area results in less bridging
*Multiple stage averages
Ask your Halliburton Representative how you can gain the same benefits.
Well InformationDelta Frac 140
Well Name: DirksWell #: #4
Tubulars
Name / Measured Depth (ft) / Outer Diameter (in) / Inner Diameter (in) / Linear Weight (lbm/ft) / Grade2 3/8" Tubing / 0 - 3002 / 2.375 / 1.995 / 4.7 / J-55
4 1/2" Casing / 0 - 4276 / 4.5 / 4.052 / 10.5 / J-55
Perforations
Interval Name/ Depth (ft) / Shot Density (spf) / # of Perfs / Perf Discharge Coef.Perforation Interval / 3113 - 3123 / 4 / 41 / 0.8
Perforation Interval / 3098 - 3106 / 4 / 33 / 0.8
Lithology
Treatment/ Depth (ft) / BHST (degF) / Frac. Grad. (psi/ft)Hockley /3098 - 3123 / 126 / 0.72
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Job Fluids SummaryDelta Frac 140
30# Delta Frac 140Volume / Base Fluid / Breaker / Surfactant / Biocide
9750 (Gal) / 7% KCL Water* / SP Breaker / Gasperm 1100 / BE-6
Totals / 9750 (Gal) / 4.88 (lbm) / 19.5 (Gal) / 1.46 (lbm)
20# Water Frac G
Volume / Base Fluid / Surfactant / Biocide / Breaker
3290 (Gal) / 7% KCL Water* / Gasperm 1100 / BE-6 / SP Breaker
Totals / 3290 (Gal) / 6.58 (Gal) / 0.49 (lbm) / 1.64 (lbm)
JOB TOTALS
Volume / Base Fluid / Breaker / Surfactant / Biocide
(Gal) / (Gal) / (lbm) / (Gal) / (lbm)
7% KCL Water* / SP Breaker / Gasperm 1100 / BE-6
13040 / 6.52 / 26.08 / 1.95
Proppant Additive System
Proppant / System / Mass (lbm) Coated / Volume (Gal)
Premium White-20/40 / SandWedge Max NT / 30500 / 73.2
Proppant
Designed Qty / Requested
Premium White-20/40 / 30500 (lbm) / 30500 (lbm)
Customer Supplied Items *
Designed Qty / Tank Bottom / Requested w/ Tank Bottom
7% KCL Water / 13040 Gal / 0 Gal / 13040 Gal
Bring 2500 lbs of 100 Mesh and 1000 lbs of WLC-4
Treatment 1Delta Frac 140
Well Name / Dirks / 20# Water Frac G / 3290 GalJob Name / Delta Frac 140 / 30# Delta Frac 140 / 9750 Gal
No. of Perfs/Jets / 74 / SandWedge Max NT / 73.2 Gal
Mid Perf Depth / 3110.5 ft / Premium White-20/40 / 30500 lbm
Estimated Pump Time / 0.6 hrs
BHST / 126 degF
Frac Gradient / 0.72 psi/ft
Casing (Surface)
Trt-Stage / Stage Desc. / Flow Path / Fluid Desc. / Rate-Liq+Prop / Clean Vol. / Proppant / Proppant Conc. / Prop. Mass
1-1 / Load Well / IN / 20# Water Frac G / 5 / 600 / 0 / 0
1-2 / Shut-In / IN / 20# Water Frac G / 0 / 0 / 0 / 0
1-3 / Fluid Efficiency Test / IN / 20# Water Frac G / 10 / 2000 / 0 / 0
1-4 / Shut-In for FET Analysis / IN / 20# Water Frac G / 0 / 0 / 0 / 0
1-5 / Pad / IN / 30# Delta Frac 140 / 10 / 4000 / 0 / 0
1-6 / Proppant Laden Fluid / IN / 30# Delta Frac 140 / 10 / 1000 / Premium White-20/40 / 2 / 2000
1-7 / Proppant Laden Fluid / IN / 30# Delta Frac 140 / 10 / 1500 / Premium White-20/40 / 4 / 6000
1-8 / Proppant Laden Fluid / IN / 30# Delta Frac 140 / 10 / 1750 / Premium White-20/40 / 6 / 10500
1-9 / Proppant Laden Fluid / IN / 30# Delta Frac 140 / 10 / 1500 / Premium White-20/40 / 8 / 12000
1-10 / Flush / IN / 20# Water Frac G / 10 / 690 / 0 / 0
Totals / 13040 / 30500
Casing
BHTP / = Fracture Gradient x Mid Interval Depth( TVD) / = 0.72 psi/ft x 3110.5 ft / 2240 psig
Ph / = Pressure Gradient x Mid Interval Depth (TVD) / = 0.452 psi/ft x 3110.5 ft / 1406 psig
Pf / Friction Loss in Pipe / @ rate / 1200 psig
Ppf / Friction Loss in perfs / @ rate / 300 psig
Pw / BHTP - Ph + Pf + Ppf / 2240 psig - 1406 psig + 1200 psig + 300 psig / 2333.61 psig
HHP (Liquid) / (Pw x Rate) / 40.8 Required on Location / 2333.61 x 10 / 40.8 = / 572 hp
(Recommended: 4000 hp)
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Fluid Details - Treatment 1Delta Frac 140
20# Water Frac GVolume (Gal) / Base Fluid / Surfactant (gal/Mgal) / Biocide (lbm/Mgal) / Breaker (lbm/Mgal)
7% KCL Water * / Gasperm 1100 / BE-6 / SP Breaker
3290 / 0 - 3290 / 2 / 0.15 / 0.5
30# Delta Frac 140
Volume (Gal) / Base Fluid / Breaker (lbm/Mgal) / Surfactant (gal/Mgal) / Biocide (lbm/Mgal)
7% KCL Water * / SP Breaker / Gasperm 1100 / BE-6
9750 / 0 - 9750 / 0.5 / 2 / 0.15
Proppant Additive System
Proppant / System / Mass (lbm) Coated / Volume (Gal)
Premium White-20/40 / SandWedge Max NT / 30500 / 73.2
* Customer Supplied
Cost EstimateDelta Frac 140
Mtrl Nbr / Description / Qty / U/M / Unit Price / Gross Amt / Discount / Net Amt342341 / PE BOM-GELLED WATER FRAC - CONVENTIONAL / 1 / JOB / 0.00 / 0.0% / 0.00
224400 / MOBILIZATION CHGS FRAC SOL SVC CH / 150 / MI / 160.00 / 24,000.00 / 72.0% / 6,720.00
BARRELS/CUBIC METRES (BBL/M3) / BBL
RATE PER BBL\CUM / 10
PRESSURE UNITS (PSI/MPA/BAR) / PSI
PRESSURE / 2334
224401 / FRACTURING -SOLUTION SERVICE CHARG / 1 / JOB / 44,425.00 / 44,425.00 / 72.0% / 12,439.00
BARRELS/CUBIC METRES (BBL/M3) / BBL
RATE PER BBL\CUM / 10
PRESSURE UNITS (PSI/MPA/BAR) / PSI
PRESSURE / 2334
77612 / STIM FRACTURING CHGS, MIN 2HRS ON LOC / 3285 / HHP / 1.59 / 5,223.15 / 72.0% / 1,462.48
HOURS OR FRACTION (MIN2) / 2
HR/DAY/WEEK/MTH/YEAR/JOB/RUN / WEL
216319 / Proppant Handl & Stor. Sol Chg Per lb / 30500 / LB / 0.09 / 2,745.00 / 72.0% / 768.60
216318 / Proppant Del Sol Chg, per ton mile / 2288 / TNM / 4.05 / 9,266.40 / 72.0% / 2,594.59
SubTotal / USD / 85,659.55 / 72.0% / 23,984.67
*** Stimulation Materials ***
756855 / SBM WATER FRAC G (PPT) / 3290 / GAL / 14,476.00 / 90.0% / 1,447.60
TOTAL GEL PPT / 20
UNIT OF MEASURE - MLB / MLB
756850 / SMB DELTA FRAC 140 (PPT) / 9750 / GAL / 69,322.50 / 90.0% / 6,932.25
TOTAL GEL PPT / 30
UNIT OF MEASURE - MLB / MLB
100003800 / BE-6 / 3 / LB / 333.35 / 1,000.05 / 90.0% / 100.00
100003624 / SP BREAKER - 10# BOX / 17 / LB / 39.20 / 666.40 / 90.0% / 66.64
101770761 / GASPERM 1100 / 27 / GAL / 245.92 / 6,639.84 / 90.0% / 663.98
101237068 / GBW-30 / 10 / LB / 73.74 / 737.40 / 85.0% / 110.61
433176 / SANDWEDGE MAX / 30500 / LB / 1.56 / 47,580.00 / 90.0% / 4,758.00
100003678 / SAND-PREMIUM WHITE-20/40 / 305 / SK / 180.00 / 54,900.00 / 96.0% / 2,196.00
SubTotal / USD / 195,322.19 / 91.67% / 16,275.08
*** Non Discounted Items ***
21711 / PE Environmental Charge / 1 / JOB / 254.00 / 254.00 / 254.00
3232 / STIM FUEL TRUCK / 1 / EA / 2,500.00 / 2,500.00 / 2,500.00
NUMBER OF JOBS / 1
426423 / PE Proppant Mobilization/Transportation / 30500 / LB / 0.02 / 646.60 / 646.60
373061 / PE DOT Vehicle Charge / 10 / EA / 241.00 / 2,410.00 / 0.0% / 2,410.00
Total / USD / 286,792.34
Discount / USD / 240,721.99
Discounted Total / USD / 46,070.35
Primary Plant:Mission, TX, USAPrice Book Ref:30 South Texas - NEW
Secondary Plant:Mission, TX, USAPrice Date:9/17/2013
Wewill charge for actual horsepower used, or the proposal stated amount, whichever is greater.
Note: We are presently in a time of proppant supply and proppant trucking shortages. In some instances proppant for your job may need to be supplied from outside of our usual delivery points. When this occurs an additional charge of 6 cents per pound will be added to your field ticket in order to cover the added transportation expense to location. Also, any additional hourly trucking charges (Demurrage) incurred during a job for waiting due to delays will added to the invoice at the rate below.
***Extra Delivery Fee***3130 / Demurrage Charge per LB / 1 / LB / 0.06 / 0.06 / 0.0% / 0.06
***Demurrage***
3130 / Demurrage Charge per Hour / 1 / H / 75.00 / 75.00 / 0.0% / 75.00
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Conditions
NOTE
The cost in this analysis is good for the materials and/or services outlined within and shall be valid for 30 days from the date of this proposal.In order to meet your needs under this proposal with a high quality of service and responsive timing, Halliburton will be allocating limited resources and committing valuable equipment and materials to your area of operations. Accordingly, the discounts reflected in this proposal are available only for materials and services awarded on a first-call basis. Alternate pricing may apply in the event that Halliburton is awarded work on any basis other than as a first-call provider.
The unit prices stated in the proposal are based on our current published prices. The projected equipment, personnel, and material needs are only estimates based on information about the work presently available to us. At the time the work is actually performed, conditions then existing may require an increase or decrease in the equipment, personnel, and/or material needs. Charges will be based upon unit prices in effect at the time the work is performed and the amount of equipment, personnel, and/or material actually utilized in the work. Taxes, if any, are not included. Applicable taxes, if any, will be added to the actual invoice.
It is understood and agreed between the parties that with the exception of the subject discounts, all services performed and equipment and materials sold are provided subject to Halliburton’s General Terms and Conditions contained in our current price list, (which include LIMITATION OF LIABILITY and WARRANTY provisions), and pursuant to the applicable Halliburton Work Order Contract (whether or not executed by you), unless a Master Service and/or Sales Contract applicable to the services, equipment, or materials supplied exists between your company and Halliburton, in which case the negotiated Master Contract shall govern the relationship between the parties. A copy of the latest version of our General Terms and Conditions is available from your Halliburton representative or at: your convenient review, and we would appreciate receiving any questions you may have about them. Should your company be interested in negotiating a Master Contract with Halliburton, our Law Department would be pleased to work with you to finalize a mutually agreeable contract. In this connection, it is also understood and agreed that Customer will continue to execute Halliburton usual field work orders and/or tickets customarily required by Halliburton in connection with the furnishing of said services, equipment, and materials.
Any terms and conditions contained in purchase orders or other documents issued by the customer shall be of no effect except to confirm the type and quantity of services, equipment, and materials to be supplied to the customer.
If customer does not have an approved open account with Halliburton or a mutually executed written contract with Halliburton, which dictates payment terms different than those set forth in this clause, all sums due are payable in cash at the time of performance of services or delivery of equipment, products, or materials. If customer has an approved open account, invoices are payable on the twentieth day after date of invoice.
Customer agrees to pay interest on any unpaid balance from the date payable until paid at the highest lawful contract rate applicable, but never to exceed 18% per annum. In the event Halliburton employs an attorney for collection of any account, customer agrees to pay attorney fees of 20% of the unpaid account, plus all collection and court costs.
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