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Acadian Energy is a junior exploration and production company focused on New Albany Shale (NAS) oil and natural gas in the Illinois Basin.  Acadian completed a third party NAS greenfield oil analysis predicting production rates, estimated ultimate recovery (EUR) and well spacing parameters.  Results indicate a strong economic outcome for wells drilled at today’s oil prices for revenue and reserves.  Acadian has NAS acreage under lease, and seeks to add Shale Oil resources to its gas base.    Acadian’s management team were prolific gas drillers in a prior company, and instrumental in its 2006 sale for $833 million.

Shale Gas

Acadian has six horizontal wells in the hydrocarbon rich New Albany Shale. 

 

Acadian has six horizontal wells in the hydrocarbon rich New Albany Shale. Natural fracture orientation and patterns in the New Albany Shale allows for production of natural gas without the need of invasive hydraulic fracturing.

• Basin: Illinois Basin
• Target:  New Albany Shale
• Natural Gas Reserves are: 44.7 Bcf, 16.6 Bcf Proved.  (Reserves by Forest Garb and Associates 2010)

Shale Oil

Basin: Illinois Basin Target:  New Albany Shale

The New Albany Shale is the primary hydrocarbon source rock for the basins nearly 4 billion bbl of oil production to date.

Acadian is on track for its Greenfield strategy, which is focused on the production of shale oil from the hydrocarbon rich New Albany formation.

Status:

Acadian Energy Inc. awarded Fekete Associates Inc., of Calgary to complete a Greenfield Oil Simulation Project to assist in realizing the oil potential in the New Albany Shale. Greenfield simulations are meant to optimize operations and planning and to help mitigate risk. Fekete provides practical and advanced solutions for reservoir engineering and production optimization projects for the oil and gas industry.

Results:

Fekete Associates Inc. completed the engineering – geologic evaluation of the New Albany Shale within the Illinois Basin of Illinois and Indiana.  The established project objectives were as follows; 

First, analyze gas production data from existing producing wells to obtain a reservoir description and generate a type-well production forecast. 

Second, compare the type-well forecast against actual production histories to ensure the relative consistency between the type-well forecast and actual well performance. 

Third, use the model to forecast oil and/or gas production and estimate:

-Original-Oil-in-Place (OOIP)

-Original-Gas-in-Place (OGIP)

-Estimated Ultimate Recovery (EUR)

-1,000 Barrels (Mbbl)

Fourth, perform sensitivity analyses to illustrate the relative importance of different well/reservoir/completion parameters on a 30-year cumulative oil production forecast.

Two well scenarios were modeled for a 160 acre drainage area with an OOIP of 2,470 Mbbl; a vertical well and a horizontal well with 5000 ft horizontal length.  Sensitivity analyses were performed on the following reservoir parameters to determine their impact on the estimated ultimate oil recovery (EUR); porosity, water saturation, vertical and horizontal permeability and reservoir pressure.

Estimated oil recovery for vertical and horizontal wells in two different permeability reservoirs are summarized below:

Low permeability scenario – (0.0026 horizontal permeability; 0.0015 vertical permeability)

            Frac Stimulated Vertical Well             7 Mbbl              

            Horizontal Well – no stimulation      20 Mbbl

            Frac Stimulated Horizontal Well       70 Mbbl

Higher permeability scenario – (0.034 horizontal permeability; 0.015 vertical permeability)

            Frac Stimulated Vertical Well           35 Mbbl

            Horizontal Well – no stimulation    125 Mbbl

            Frac Stimulated Horizontal Well     200 Mbbl

Low permeability reservoirs, drilled vertically and frac-stimulated calculated an EUR of 7 Mbbl. The low permeability horizontal multi-frac stimulated well produced an EUR of 70 Mbbl.

In comparison, higher permeable shale reservoirs with a vertical completion would produce an EUR of 35 Mbbl.  A horizontal multi-frac well’s estimated EUR was 200 Mbbl.

Geochemical data suggests that in an area of 640 acres, an OOIP of 9,880 Mbbl would be calculated.  Thus 4 horizontal multi-frac stimulated wells could recover 800 Mbbl and a minor amount of natural gas.  The results compare favorably with other North American oil resource plays.

Acadian is currently in the process of interviewing joint-venture partners and investors. 

Reef Oil

Basin: Illinois Basin Target: Terre Haute Reef Bank

The bulk of Acadian’s leasehold position is strategically located overlying the Silurian shelf edge known as the “Terre Haute Reef Bank“.  Within the Terre Haute Reef Bank, the Silurian induced structures produce oil and gas from multiple carbonates and sandstones within the Pennsylvanian, Mississippian and Devonian sections.

Partnership:       Area of mutual interest with Riverside Exploration LLC

Status:                  Seismic testing began mid 2011, initial results expected soon

No info available.