An exploration and production (E&P) company had concerns over their field operating practices in its primary area of operations. Sproule Asset Management was engaged to perform a comprehensive review of daily operations activities, facility operational procedures, equipment inventory, and shut-in well review to identify areas of improvement, efficiency, and surplus equipment.
Project Highlights
- Junior E&P company with daily production of over 250 boe/d.
- Fraudulent time reports from contract operators.
- Unauthorized water disposal in E&P companies wells.
- Theft of equipment from operated and non-operated sites.
Challenge
- Reduced Production: Field operations erroneously reported wells were incapable of production and required costly well servicing.
- Cashflow: Excessive billing and time charged by field contract staff for daily operations was identified.
- Trespass: Unauthorized and unaccounted-for third-party water disposal was occurring in the company’s wellbore.
- Theft: Sproule discovered and reported that unauthorized removal of company-owned equipment was taking place by third parties.
Solution
- Operational Changes: Sproule developed a rotational schedule designed to maximize the efficiency of field operations and provide accountable daily reporting. Historical operational staff were replaced with a skilled new workforce and provided clear expectations for operational excellence, as well as environmental, health and safety standards.
- Asset Review: Sproule’s supervision staff successfully tested and returned numerous wells to production without wellbore intervention. These wells were previously shut in and awaiting workover operations.
- Surveillance: Sproule initiated remote wellbore surveillance systems that identified unauthorized fluid disposal in company wellbores and the identity of individuals suspected of equipment theft, ultimately resulting in equipment recovery.
Value
- Productivity: The new operational schedule and improvements in field operations led to higher staff productivity levels.
- Operational Safety: Enhanced measures and adherence to provincial environmental, health and safety standards improved overall operational safety and compliance.
- Cessation of Illegal Activity: Identification of unauthorized third-party water disposal activity and new security measures supported the client to deter further unauthorized activity.
- Cost Savings and Reliability: Enhanced security measures and proactive resource management led to significant cost efficiencies, improved operational reliability, and a successful return to industry-standard operating practices.
