2015 Well Cost Study

Upcoming Summer Costs - Published April 30, 2015

E
PL
M
SA

© 2015 Petroleum Services Association of Canada (PSAC) - Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015

Table of Contents

page 1 Introduction

1 Objective

1 Well Information Provided

2 Methodology

3 Summer 2015 Costs

4 Well Summary Table

5 PSAC Area Map

6 Drilling Cost Directory

7 Completion Cost Directory

E
9 BC1 & BC2 British Columbia

64 AB1 Foothills

86 AB2 Foothills Front

PL 124

151

176

208
AB3 Southeastern Alberta

AB4 East Central Alberta

AB5 Central Alberta

AB6 Northeastern Alberta

221 AB7 Northwestern Alberta

M
253 SK1 Central Saskatchewan

281 SK2 Southwestern Saskatchewan

306 SK3 Eastern Saskatchewan

325 MB Manitoba
SA

Well cost data and consulting by N.L. Fisher Supervision & Engineering Ltd.
Schematics by Weatherford Completion Systems

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. and
Weatherford Completion Systems accept no liability for the contents of this Study.
PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015 1

Introduction

The semi-annual PSAC Well Cost Study has been produced by the Petroleum Services Association of Canada (PSAC) since
1981. N.L. Fisher Supervision & Engineering Ltd. is the official supplier of all well drilling and completion data estimates
for the Study. PSAC would also like to acknowledge Weatherford Completion Systems for providing the downhole
assembly schematics for each well in the Study.

Drilling and completion well costs are being provided in the 2015 Well Cost Study for a list of 51 wells. This selection of
wells is a reflection of current well types along with previously drilled wells which are left in the study for historical
tracking purposes. This accounts for recent operator interests in developmental and exploratory activity, as well as
horizontal, coil tubing, SAGD and natural gas from coal (NGC) drilling activity.

The wells listed in this study reflect wells drilled in western Canada. Each well has been sorted by PSAC area. A summary
table listing all of the “typical wells”, as well as their location, well status, well type and depth is contained on page 4. Some

E
of the wells are not included in this year’s study due to inactivity in the area. A PSAC area map is provided on page 5.

Objective

PL
The Well Cost Study is a popular tool used by oil and gas company exploration, drilling and completions personnel for
multiple purposes, some of which include:

• Scoping out typical drilling cost estimates and drilling times in new areas

• Benchmarking and comparing budgeted and actual costs

• General planning or forecasting of activity levels

M
When used in conjunction with the PSAC Canadian Drilling Activity Forecast, the Well Cost Study can help petroleum
service companies determine potential market sizes for drilling and completion products and services, as well as pricing
and activity direction.
SA

Well Information Provided

The following information is supplied for each typical well:

• Well description with drilling and completion assumptions

• Drill and complete AFE

• Detailed drilling estimate

• Detailed completion estimate

• Downhole assembly schematic

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. and
Weatherford Completion Systems accept no liability for the contents of this Study.
PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015 2

Methodology

Typical Well
Each typical well is named after a known field or major centre in the general vicinity. Well depths, pool names and
approximate locations are also supplied for terms of reference when proposing drilling and completion parameters.

Due to the multiplicity of variables associated with drilling and completion operations, the typical well cost is an
approximation of current prices, based on the experience of N.L. Fisher Supervision & Engineering.

Assumptions
• The estimates were constructed assuming summer drilling operations and includes pricing obtained from
discussions with various service providers.

• Camps were included in remote locations.

E
Detailed Cost Estimates
Detailed estimates were prepared based on current pricing in the industry and actual experience in the 51 locations.
Terminology has been adjusted in a few instances to more closely describe costs incurred. Discounts in areas of pad

PL
drilling or large shallow gas drilling can vary and should be treated as such.

At the time of writing, prices of various services are fluctuating. Considering that charges vary from supplier to supplier,
the estimates in this document provide the most up-to-date estimate of prices.

AFE Cost Summary Sheet

Each “typical well” AFE Sheet is a summary of the detailed drilling and completion costs provided.
M
Data Qualifications
Many factors directly impact drilling and completion costs even within a field or typical area, for example, leases
impacted by weather conditions. Costing is therefore at best speculative and should not be taken to represent “actual”
well costs. However, major services such as drilling rigs often set prices for a four-to-five month period. This pricing has
SA

been incorporated into the Study costs.

Factors that may influence well costs may include, but are not limited to:

• Type and size of company or operation • Sweet or sour production

• Company policy • Surface conditions

• Company drilling practices • Well location and nearby infrastructure

• Economic environment • Drilling program

• Commodity prices • Mud program

• Developmental or exploratory target • Evaluation program

• Oil or gas play • Completion methodology (i.e. dual zones)

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. and
Weatherford Completion Systems accept no liability for the contents of this Study.
PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015 3

Summer 2015 Costs

Major goods and services influencing the general direction of drilling and completion costs are as follows:

• Construction • Service rigs

• Trucking/rig moving • Road and site preparation

• Drilling fluids • Trucking

• Evaluation/logging • Cased hole logging and perforating

• Cement and cementing services • Tubing and attachments

• Casing • Stimulation

E
• Drill bits • Pumping equipment

• Wellsite accommodations • Wellheads

• Rentals • Safety services

PL
• Fuel

• Land, engineering, supervision and administration

• Completion costs
• Testing

• Rig rates

• Safety programs

For additional information or comments, please contact:

M
Peter Cameron, C.E.T.
NL Fisher Supervision & Engineering Ltd.
Tel: (403) 266-7478
Email: pcameron@nlfisher.com
SA

Website: www.nlfisher.com

For additional information or comments, please contact:

Mark Salkeld, President
Petroleum Services Association of Canada
Tel: (403) 781-7383
Email: msalkeld@psac.ca

Disclaimer:

While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, the Petroleum Services Association of
Canada (PSAC), N.L. Fisher Supervision & Engineering Ltd. and Weatherford Completion Systems accept no liability for the contents of this Study.

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. and
Weatherford Completion Systems accept no liability for the contents of this Study.
 PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015 5

PSAC Area Map

Tuktoyatuk

E
YT

Whitehorse NT

NU

PL BC2
Fort
Nelson
Fort
St. John
Grande
AB7

Prairie
Yellowknife

AB6
Fort
McMurray
NL
St. John's

BC3 BC1 AB2 AB5 SK1 SK3 MB

Edmonton
M
AB4
AB1 Lloydminster
Red PE
Deer Saskatoon ON QC Charlottetown
NB
Vancouver Calgary Fredericton NS
AB3 SK2
Regina
Victoria Quebec Halifax
Lethbridge Swift
Current Winnipeg Thunder Bay Montreal
SA

Ottawa

Toronto

BC1 Southern British Columbia SK1 Central Saskatchewan

BC2 Northern British Columbia SK2 Southwestern Saskatchewan
BC3 Coastal British Columbia SK3 Eastern Saskatchewan
AB1 Foothills MB Manitoba
AB2 Foothills Front ON Ontario
AB3 Southeastern Alberta QC Quebec
AB4 East Central Alberta EC Eastern Canada NB New Brunswick
AB5 Central Alberta NS Nova Scotia
AB6 Northeastern Alberta PE Prince Edward Island
AB7 Northwestern Alberta NL Newfoundland & Labrador
NC Northern Canada YT Yukon
NT Northwest Territories
NU Nunavut

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. and
Weatherford Completion Systems accept no liability for the contents of this Study.
PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015 6

Drilling Cost Directory

AFE DRILLING COST ITEM DETAILED DRILLING ESTIMATE SHEET CATEGORY

Well License / OGC Applications License Fees Pre-Drill & Planning
Surface Lease & Survey Lease Acquisition Pre-Drill & Planning
Surveying Pre-Drill & Planning
Preparation & Roads Total Construction Cost - Lease Clean-Up Construction
Cleanup Lease Clean-up Construction
Lease Clean-up Service & Supplies
Rig Move Rig Move Rig Contract
Rig Permit Rig Contract Rig Contract
Demob / Interwell Move Rig Contract
Rig-in / Tear-out Labour Rig Contract
Daywork Daywork Rig Contract
Additional Labour Costs Rig Contract
Standby Rig Contract
Directional Costs Directional Drilling Services Service & Supplies

E
Boiler Boiler Rig Contract
Bits Bits - Surface Hole Service & Supplies
Bits - Intermediate Hole Service & Supplies
Bits - Main Hole Service & Supplies
Bits - Openhole Service & Supplies
Fuel & Power Fuel Rig Contract

PL
Water
Mud & Chemicals

Crew Travel
Camp & Subsistence

Coring & Analysis

Fuel Storage
Water and Trucking
Surface Mud and Chemicals
Main Mud and Chemicals
Mud Logging
Crew Transportation
Crew Subsistence
CSA Extra Crew
Cores Cut
Rig Contract
Rig Contract
Service & Supplies
Service & Supplies
Service & Supplies
Rig Contract
Rig Contract
Rig Contract
Service & Supplies
DST & Analysis (1 DST) Drill Stem Tests Service & Supplies
M
Logging Electric Logging Service & Supplies
Surface Casing & access. Surface Casing Casing & Cementing
Attachments and Accessories Casing & Cementing
Tongs Casing & Cementing
Cementing - Surface Cement and Service Casing & Cementing
Intermediate Casing & access. Intermediate Casing Casing & Cementing
Attachments and Accessories Casing & Cementing
Tongs Casing & Cementing
SA

Cementing - Intermediate Cement and Service Casing & Cementing

Equipment Rentals Wellsite Trailer(s) Rentals
Sump Pump(s) Rentals
Surface Equipment Rentals
Solids Control Equipment Rentals
High Speed Mixer(s) Rentals
Tank Rental Rentals
Downhole Tool Rentals Service & Supplies
Geological Rentals Supervision & Administration
Transportation Trucking and Hauling Service & Supplies
Fluid Hauling Service & Supplies
Vacuum Truck and Disposal Service & Supplies
Supervision & Consulting Drilling Supervisor Supervision & Administration
Well Site Geologist Supervision & Administration
In-house Engineering (Drilling) Planning and Programs Pre-Drill & Planning
Communications Supervision & Administration
Equipment Inspection Inspection and Repair Service & Supplies
Well Insurance Insurance Supervision & Administration
Other Services (Safety) Safety Service & Supplies
Environmental Services Waste Management Service & Supplies
Misc. Costs Welding Service & Supplies
Contingency @ 5%
Miscellaneous @ 2%
Overhead Overhead on Subtotal @ 3,2,1
Abandonment Cost Abandonment Cement Casing & Cementing
Cement Plug Logging Casing & Cementing

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. and
Weatherford Completion Systems accept no liability for the contents of this Study.
PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015 7

Completion Cost Directory

DETAILED COMPLETION
AFE COMPLETION COST ITEM DETAILED DRILLING ESTIMATE SHEET ESTIMATE SHEET
Prod. Csg. & Accessories Production Casing (Casing & Cementing)
Attachments and Accessories (Casing & Cementing)
Tongs (Casing & Cementing)
Cementing - Production Cement and Service (Casing & Cementing)
Tubing & Accessories Tubing
Wellhead Equipment Wellhead
Remedial Cementing Remedial Cementing
Service Rig Service Rig
Boiler
CSA
Crew Transportation
Logging (cement bond log) Cased Hole Logs
Slickline/Wireline (Other) Wireline

E
Perforating Perforating and Logging
Stimulation (Frac or Acid) Stimulation
Testing / Pressure Surveys Production Test
Gas / Liquid Analysis Fluids Analysis
Transportation Hauling and Trucking
Equipment Rentals Surface Equipment Rentals

PL
Downhole Tools (intangibles)
Completion Fluids

Snubbing
Nitrogen
Inspection / Safety
Wellsite Supervision
In-house Engineering (Completions)
Downhole Equipment Rentals
Packers, Plugs, Retainers
Water and Trucking
Completion Fluids and Chemicals
Snubbing
Nitrogen
Inspection / Safety
Completions Supervisor

Other Services Vacuum Truck

M
Environmental
Lease and Road Maintenance
Misc. Costs Contingency @ 5%
Miscellaneous @ 2%
Overhead Overhead on Subtotal @ 3,2,1
SA

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. and
Weatherford Completion Systems accept no liability for the contents of this Study.
PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015 64

Area AB1 Foothills

AB1A Burmis - Foothills - Alberta Twp 7 Rge 6 W5M

AB1B Cutpick - Foothills - Alberta Twp 60 Rge 7 W6M
AB1C Cutpick - Foothills - Alberta Twp 60 Rge 7 W6M

Geology
Production is predominantly gas (sour), with varying levels of gas liquids. The principal zones are the Rundle Group of the Mississippian and
Cretaceous Cardium and Viking sands.

Area Highlights
Area AB1 encompasses the eastern slopes and foothills of the Rocky Mountains in Alberta. Wells drilled here are typically vertical and

E
some of the deepest in western Canada. These wells are technically challenging, and pose both safety and environmental regulatory
compliance issues. Wellsites are often remote from towns and service and supply centres. The cumulative result is that on a dollar-per-
metre basis, this is the generally most expensive area to drill in western Canada.

PLFort
Nelson

AB7 AB6
Fort
St. John Fort
M
McMurray
Grande
Prairie

AB2 AB5 SK1

SA

Edson Edmonton
AB4
AB1 Lloydminster
Red
Deer Provost
Saskatoon
r Calgary
AB3 SK2
Lethbridge
Swift
Current

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. and
Weatherford Completion Systems accept no liability for the contents of this Study.
PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015 65

AB1A Burmis - Foothills

Alberta Twp 7 Rge 6 W5M
Well Cost Estimate

Oil / Gas Gas Surface Casing Set Depth (m) 600

Vertical / Horizontal / Directional D Surface Casing Spec. 339.7 mm 90.78 kg/m J-55
Critical H2S (Y/N) Y Intermediate Casing Set Depth (m) 3340
Target Formation Wabamun Intermediate Casing Spec. 244.5 mm 79.6 kg/m L-80
Total Measured Depth (m) 4500 Production Casing Set Depth (m) 4500
Total Vertical Depth (m) 4000 Production Casing Spec 177.8 mm 43.20 kg/m L-80
Oil and Gas Lease (Hectares) 1.6 Production Casing Cementing Single
Freehold or Crown Land (F/C) C Liner Req'd (Y/N) N
Drilling Fluid Type Invert Liner Set Depth (m) 0
Drilling Fluid Hauled for Disposal Y Openhole Length (m) 0

E
Drill out of Sump (Y/N) N Tubing Spec. 88.9 mm 13.85 kg/m, J-55 SML
Land Spray While Drilling (Y/N) N Tubing Set Depth (m) 4300
Stimulation Y Packer (Y/N) Y
Estimated BHT ( Degrees C) 150 Packer Set Depth (m) 4300

PL
Estimated BHP (kPa)
Wellhead Capacity (kPa)

Total Days Rig-in to Tear-out

Rig Type/Size
Rig Loads
Rig Move (days)
35000
35000

188
Triple
50
4
Packer Type

Drilling Assumptions

Move in/Rig up (days)

Rig - Drilling Days (days)
Rig - Final Depth to RR (days)
N

Unit
8
165
15
Unit Cost
$14,800
$18,500
$20,125
Rig Transport Distance (km) 150
Rig - Standby Days (days) 0 $14,800
M
Rig Crew (# men) 12
Rig - Total Contract Days (days) 188 $18,500
Extra Men 1
Horizontal/Dir Drilling Days (days) 100 $9,500
Rig Fuel (litres/day) 4000
Drilling Rig Boiler Days (days) 0 $1,920
Fuel Cost ($/l) $0.75
Lease Construction Days (days) 18 $10,000
Camp Required (Y/N) Y
Survey Days (days) 3 $4,000
Camp (# of men) 40
Access Road length (km) 5 $5,000
SA

Camp Loads 8
Drill Stem Tests (number) 2 $10,000
Camp Cost $7,000
Cores Cut (number) 1 $15,000
Service Rig Days (days) 10 6480
Completion Assumptions
Service Rig Boiler Days (days) 0 1000
Service Rig Size Double
Single or Multi Zone Single
Sweet or Sour Sour
Remedial Cementing Req'd (Y/N) N
TCP / Underbalanced / Csg Guns TCP
Stimulation Required (Y/N) Y
Propped Frac or Acid Acid
Type of Frac N/A
Proppant Size and Tonnage N/A
Flow Test Required (Y/N) Y
Flow Test Duration (days) 8
Pressure Recorders Required Y

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. and
Weatherford Completion Systems accept no liability for the contents of this Study.
PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015 66

AB1A Burmis - Foothills DRILL AND COMPLETE AFE

Alberta Twp 7 Rge 6 W5M
Well Cost Estimate

DRILLING COMPLETION
ACCT # ACCT #
Well License / Applications $500 Prod. Csg. & Accessories $443,250
Surface Lease & Survey $14,600 Cementing - Production $112,500
Preparation & Roads $343,000 Tubing & Accessories $137,600
Cleanup $162,000 Wellhead Equipment $30,000
Remedial Cementing $0
SUB - TOTAL $520,100 Service Rig $75,300
Logging (cement bond log) $10,200
Rig Move $444,400 Slickline/Wireline (Other) $20,400
Daywork $3,465,000 Perforating $25,500
Directional Costs $950,000 Stimulation (Frac or Acid) $68,000

E
Boiler $0 Testing / Pressure Surveys $34,000
Bits $130,000 Gas / Liquid Analysis $2,000
Fuel & Power $564,000 Transportation $27,000
Water $159,800 Equipment Rentals $18,700
Mud & Chemicals $346,875 Downhole Tools (intangibles) $38,250

PL Crew Travel
Camp & Subsistence

SUB - TOTAL

Coring & Analysis

DST & Analysis
Logging
$65,800
$1,438,200

$7,564,075

$15,000
$20,000
$33,150
Completion Fluids
Snubbing
Nitrogen
Inspection / Safety
Wellsite Supervision
In-house Engineering (Completions)
Other Services
Misc. Costs
$34,600
$0
$0
$15,000
$17,400
$0
$17,300
$40,000
Overhead $7,700
M
SUB - TOTAL $68,150
Total Casing and Completion Estimate $1,174,700
Surface Casing & access. $129,300
Cementing - Surface $18,000 Total Drill, Case and Complete Estimate $14,684,765
Intermediate Casing & access. $860,050
Cementing - Intermediate $73,480 Assumptions include but not limited to:
SA

Oil / Gas Gas

SUB - TOTAL $1,080,830
Vertical / Horizontal / Directional D
Critical H2S (Y/N) Y
Equipment Rentals $1,952,310
Transportation and Hauling $571,000 Target Formation Wabamun
Supervision & Consulting $432,000 Estimated BHT ( Degrees C) 150
In-house Engineering (Drilling) $54,800 Estimated BHP (kPa) 35000
Equipment Inspection $12,600 Single or Multi Zone Single
Well Insurance $18,800 Sweet or Sour Sour
Safety $169,200 Total Days Rig-in to Tear-out 188
Environmental Services $15,000 Drill Stem Tests (number) 2
Misc. Costs $881,800 Cores Cut (number) 1
Overhead $126,900
Surface Casing Set Depth (m) 600
SUB - TOTAL $4,234,410
Surface Casing Spec. 339.7 mm 90.78 kg/m J-55
Production Casing Set Depth (m) 4500
Abandonment Cost $23,100
Production Casing Spec 177.8 mm 43.20 kg/m L-80
SUB - TOTAL $23,100 Stimulation Required (Y/N) Y
Propped Frac or Acid Acid
Total D & A Estimate $13,490,665 Type of Frac N/A
Proppant Size and Tonnage N/A
Total Drill and Case Est. $14,065,815 Flow Test Required (Y/N) Y
Tubing Set Depth (m) 4300
Tubing Spec. 88.9 mm 13.85 kg/m, J-55 SML
© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. and
Weatherford Completion Systems accept no liability for the contents of this Study.
PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015 67

AB1A Burmis - Foothills

Alberta Twp 7 Rge 6 W5M
Well Cost Estimate

20 Proposed Well Completion

19 Company
AB1-A Burmis - Foothills Reference
AB1-A
Prepared for Phone Location
Wabamun
18 Prepared by Sales Rep 7-6-W5M
Weatherford
16 Service Centre Drawn by Date

TUBULAR Size Weight Grade Thread Depth

15
Casing 1 339.7mm 90.78kg/m J-55 8 rd 600m

14 Casing 2 244.5mm 79.6kg/m L-80 8 rd 3340m

E
Casing
Liner 3 177.8mm
127mm 26.78
43.20kg/m
kg/m L-80 Premium 4400m
4500m
17
13 Tubing 1 88.9mm 13.84 kg/m L-80 Premium

Tubing 2 60.3mm 6.99 kg/m L-80 Premium

ITEM DESCRIPTION

PL 12

11
01.

02.

03.

04.

05.

06.
Nisku/ Leduc Perforations

60.3 mm Wireline Re-entry Guide

47.6 mm No-go Landing Nipple

60.3 mm Perforated Pup Joint

47.6 mm Landing Nipple

60.3 mm Pup Joint

07. 47.6 mm Landing Nipple

M
10
08. 60.3 mm Pup Joint

09. 60.3 mm Sealbore Tail Pipe Adapter

09 10. 68.27mm Sealbore Extension

11. 127 mm Permanent Sealbore Packer

08
12. 68.27 mm Locator Seal Assembly
SA

13. 60.3 mm Pup Joint

07
14. 47.6 mm Landing Nipple

15. 60.3 mm Tubing as Required

06
16. Crossover Sub

17. 88.9 mm Tubing

05
18. Heater String Catcher

19. 88.9 mm Tubing as Required

04
20. Heater String

03
NOTES
02
Casing is perforated and packer/ tail pipe assembly is set on wireline .
Seal assembly is run on final completion string
01
This document is confidential correspondence between Weatherford and the Customer named in this document . It may not be reproduced in any form
nor its contents disclosed to anyone other than employees of Weatherford and
/or the named Customer .

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. and
Weatherford Completion Systems accept no liability for the contents of this Study.
PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015 68

AB1A Burmis - Foothills DETAILED DRILLING ESTIMATE

Alberta Twp 7 Rge 6 W5M
Well Cost Estimate

No. of Drilled and Drilled and

Operations, Services or Equipment # Units Unit Type Cost Per Unit Comments and Detail Abandoned Cased

Predrill and Planning

Lease Acquisition 1.6 Hectares $2,600 Surface Lease Entry $2,600 $2,600
License Fees 1 Each $500 Per Well Fee $500 $500
Surveying 3 Days $4,000 Site and Plan $12,000 $12,000
Planning and Programs 200 Hours $180 Engineering and Programming $36,000 $36,000
$51,100 $51,100
Construction
Road 5 Kms $5,000 Engineering and Construction $25,000 $25,000
Location 18 Days $10,000 Engineering and Construction $180,000 $180,000
Lease Maintenance 180 Days $500 Labour and Equipment $90,000 $90,000
Lease Cleanup 0 Days $10,000 Labour, Materials and Equipment $0 $0

E
Bridges / Culverts / Cattle Guards 6 Each $5,000 Labour and Equipment $30,000 $30,000
Standby Equipment 0 Days $550 Grader, Hoe, Cat $0 $0
Supervision 18 Days $1,000 Daily Rate incl. Sub and Exp $18,000 $18,000
Lease Reclamation 18 Days $8,000 Labour and Equipment $144,000 $144,000
Lease Reclamation Supervision 18 Days $1,000 Daily Rate incl. Sub and Exp $18,000 $18,000

PL
Rig Contract
Rig Move
Rig Permit
Demob / Inter-well Move
Rig-in Set Up Labour
Daywork
Loader
50
4
40
8
180
180
Loads
Days
Loads
Each
Days
Days
$3,600
$500
$3,600
$14,800
$18,500
$500
$300/hr and 8 hr/100km/load
As required by area
$300/hr and 8 hr/100km/load
Move in, set up
Rig rate from Spud to RR w/ drillpipe
Rig loader
$505,000

$180,000
$2,000
$144,000
$118,400
$3,330,000
$90,000
$505,000

$180,000
$2,000
$144,000
$118,400
$3,330,000
$90,000
Additional Labour Costs 180 Days $250 Additional crew as required $45,000 $45,000
Camp 188 Crew Days $7,000 Camp / hotel including meals etc. $1,316,000 $1,316,000
M
CSA 188 Days $650 Crew Subsistence Allowance $122,200 $122,200
Crew Transportation 188 Each $350 Crew Truck, Mileage, Bus or Aircraft $65,800 $65,800
Boiler 0 Days $1,920 Basic rate fuel out $0 $0
Fuel 188 Days $3,000 Fuel $564,000 $564,000
Fuel Storage 0 Days $0 Additional fuel storage $0 $0
Standby 0 Days $14,800 Testing, logging, waiting on orders $0 $0
Water and Trucking 188 Days $850 Water access and supply $159,800 $159,800
SA

$6,137,200 $6,137,200
Rentals
Wellsite Trailer(s) 4 188 Days $185 Well site Unit rental $139,120 $139,120
Sump Pump(s) 1 188 Days $125 Centrifugal pump rental $23,500 $23,500
Surface Equipment 1 188 Days $1,800 Garbage bin, Pumps, Pason, Invert acc, etc $338,400 $338,400
Solids Control Equipment 2 188 Days $1,375 Cenrtiguge(s), BOS tank etc $517,000 $517,000
High Speed Mixer(s) 1 188 Days $675 High speed mixer, pill tank, lines $126,900 $126,900
Tank Rental 1 188 Days $205 Floc, Flare, 400 bbl tank etc $38,540 $38,540
Downhole Tool Rentals 1 188 Days $3,150 Perf Motors, subs, jars, stabilizers etc $592,200 $592,200
Drill string 80 188 Days $10 HWDP, Small inch drillpipe, etc. $150,400 $150,400
$1,926,060 $1,926,060

continued next page

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. and
Weatherford Completion Systems accept no liability for the contents of this Study.
PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015 69

AB1A Burmis - Foothills DETAILED DRILLING ESTIMATE (continued)

Alberta Twp 7 Rge 6 W5M
Well Cost Estimate

No. of Drilled and Drilled and

Operations, Services or Equipment # Units Unit Type Cost Per Unit Comments and Detail Abandoned Cased
Service and Supplies
Bits - Surface Hole 2 Each $5,000 Bit(s) required to drill surface hole $10,000 $10,000
Bits - Intermediate Hole 7 Each $10,000 Bit(s) required to drill intermediate hole $70,000 $70,000
Bits - Main Hole 5 Each $10,000 Bit(s) required to drill main hole $50,000 $50,000
Bits - Openhole 0 Each $10,000 N/A $0 $0
Surface Mud and Chemicals 250 Cubic metre $50 Cost per cubic metre water out $12,500 $12,500
Main Mud and Chemicals 500 Cubic metre $475 Cost per cubic metre Invert out $237,500 $237,500
Mud Logging 125 Days $775 Daily rate - crew plus costs $96,875 $96,875
Drill Stem Tests 2 Each $10,000 Unit, crew, analysis, samples $20,000 $20,000
Cores Cut 1 Each $15,000 Equipment, crew, analysis $15,000 $15,000
Electric Logging 3900 m MD $9 Cost per m logged all in $33,150 $33,150

E
Environmental Services 0 5 Each $750 Spray field sampling, reporting, etc $0 $0
Drilling Waste Management 1 10 Each $1,500 Cost per fluid samples and analysis $15,000 $15,000
Safety 188 Days $900 Daily Rate Crew and Equipment $169,200 $169,200
Directional Drilling Services 100 Days $9,500 Daily rate all in crews and tools $950,000 $950,000
Trucking 188 Days $1,500 Equipment and tool trucking $282,000 $282,000

PL
Fluid and/or Cuttings Hauling
Fluid and/or Cuttings Disposal
Vacuum Truck (LSWD)
Welding
Inspection and Repair

Casing and Cementing

Surface Casing
Attachments and Accessories
1
1
0
165
500
165
3
3

600
60
Days
Cubic metre
Days
Each
Each

Metres
Each
$1,600
$50
$1,400
$2,500
$4,200

$205
$25
Fluid hauling other than water
Drilling fluid hauled for disposal
Cost per day for Vac Truck
Cost per well
Cost per well

339.7 mm 90.78 kg/m J-55

Scratchers, centralisers, float equip
$264,000
$25,000
$0
$7,500
$12,600
$2,270,325

$123,000
$1,500
$264,000
$25,000
$0
$7,500
$12,600
$2,270,325

$123,000
$1,500
Tongs 600 Metres $8 Crew and Equipment $4,800 $4,800
M
Cement and Service 600 Metres $30 Pumping, tonnage, additives $18,000 $18,000

Intermediate Casing 3340 Metres $250 244.5 mm 79.6 kg/m L-80 $835,000 $835,000
Attachments and Accessories 334 Each $25 Scratchers, centralisers, float equip $8,350 $8,350
Tongs 3340 Metres $5 Crew and Equipment $16,700 $16,700
Cement and Service 3340 Metres $22 Pumping, tonnage, additives $73,480 $73,480
SA

Production Casing 4500 Metres $90 177.8 mm 43.20 kg/m L-80 $0 $405,000
Attachments and Accessories 450 Each $25 Scratchers, centralisers, float equip $0 $11,250
Tongs 4500 Metres $6 Crew and Equipment $0 $27,000
Cement and Service 4500 Metres $25 Pumping, tonnage, additives $0 $112,500
$0 $0
Liner 0 Metres $0 N/A $0 $0
Attachments and Accessories 0 Each $0 Scratchers, centralisers, float equip $0 $0
Tongs 0 Metres $0 Crew and Equipment $0 $0
Cement and Service 0 Metres $0 Pumping, tonnage, additives $0 $0
Abandonment Cement 2 Plugs $6,300 Pumping, tonnage, additives $12,600 $0
Cement Plug Logging 2 Plugs $5,250 Run plug logs, all in $10,500 $0
$1,103,930 $1,636,580
Supervision and Administration
Drilling Supervisor 1 188 Days $1,500 Drilling consultant rate all in $282,000 $282,000
Well Site Geologist 1 125 Days $1,200 Geological consultant rate all in $150,000 $150,000
Geological Rentals 125 Days $210 Gas detector etc $26,250 $26,250
Insurance 188 Each $100 Drilling insurance $18,800 $18,800
Communications 188 Days $100 $18,800 $18,800
$495,850 $495,850

Subtotal $12,489,465 $13,022,115

Contingency @ 5 % $624,500 $651,100
Miscellaneous @ 2 % $249,800 $260,400
Overhead on Subtotal @ 3,2,1 $126,900 $132,200

Total Cost Estimate $13,490,665 $14,065,815

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. and
Weatherford Completion Systems accept no liability for the contents of this Study.
PSAC 2015 Well Cost Study – Upcoming Summer Costs – published April 30, 2015 70

AB1A Burmis - Foothills DETAILED COMPLETION ESTIMATE

Alberta Twp 7 Rge 6 W5M
Well Cost Estimate

No. of Cost Drilled and

Operations, Services or Equipment # Units Unit Type Per Unit Comments and Detail Completed

Completion and Testing

Wellhead 1 Each $30,000 Type and accessories $30,000
Tubing 4300 Each $32 88.9 mm 13.85 kg/m, J-55 SML $137,600
Packers, Plugs, Retainers 1 Each $38,250 Anchors, packers, profiles, nipples etc $38,250
Service Rig 10 Day $6,480 Daily rig rate all in $64,800
Boiler 0 Day $1,000 Basic day rate fuel in $0
CSA 10 Day $750 Subsistence and accommodation $7,500
Crew Transportation 10 Day $300 Mileage, bus or air $3,000
Hauling and Trucking 10 Day $2,700 Tubing and other equipment $27,000

E
Vacuum Truck 10 Day $1,080 Rig days plus prod test days $10,800
Water and Trucking 10 Day $900 Water access and supply $9,000
Completion Fluids and Chemicals 160 Cubic Metre $160 Reformate, KCl, MeOH $25,600
Surface Equipment Rentals 1 Each $10,200 Rotating heads, frac heads etc $10,200

PL
Downhole Equipment Rentals
Cased Hole Logs
Perforating and Logging
Wireline
Remedial Cementing
Stimulation
Completions Supervisor
1
1
1
4
0
1
12
Each
Each
Each
Runs
Each
Each
Day
$8,500
$10,200
$25,500
$5,100
$15,000
$68,000
$1,450
mud motors, packers, frac strings
CBL etc.
TCP/Csg guns
Gauge ring, run and pull recorders
Includes perforating, D/H tools etc
Acid
Daily rate all in
$8,500
$10,200
$25,500
$20,400
$0
$68,000
$17,400
Inspection / Safety 10 Each $1,500 Environmental, operational, government $15,000
Environmental 2 Each $1,000 Technician $2,000
M
Lease and Road Maintenance 10 Day $450 Crew and Equipment $4,500
Production Test 8 Day $4,250 Includes equipment, crews and analysis $34,000
Fluids Analysis 4 Each $500 Oil, gas and water $2,000
Snubbing 0 Day $7,500 Unit and Crews $0
Nitrogen 0 Cubic Metre $3 $0
SA

Subtotal Completion $571,250

Contingency @ 5 % $28,600
Miscellaneous @ 2 % $11,400
Overhead on Subtotal @ 3,2,1 $7,700

Total Completion Estimate $618,950

Total Drill, Case and Complete Estimate $14,684,765

© 2015 Petroleum Services Association of Canada (PSAC) — Reproduction rights reserved. Nothing herein may be reprinted in part or in whole without explicit permission from PSAC.
While all reasonable effort is made to ensure the quality of the source of data and the accuracy of this report, PSAC, N.L. Fisher Supervision & Engineering Ltd. and
Weatherford Completion Systems accept no liability for the contents of this Study.