Core Lab Breakout Notes
David M. Demshur, chairman, president, and CEO of CoreLab, (ticker: CLB) presented today at EnerCom’s The Oil & Gas Conference® 22.
CoreLab is an oilfield service company that specializes in reservoir description and production enhancement services and technologies. The company has a medley of proprietary technologies and services built to bolster production and reservoir understanding for its clients.
During the company’s breakout session, management was asked the following questions:
- What GORs do most companies in the Permian Basin report? How does this affect the mobile oil production?
- Do these high GORs reported limit the productivity of the well or well performance? Are these limitation also applicable in the Eagleford shale? What is your over and under on shale productivity? For the super majors, how does this productivity variance influence Final Investment Decisions (FIDs) on shale and offshore developments? If the big oil companies are focused on short term investment on shale cycles, is that good or bad?
- What are your thoughts on the current decline rates in the unconventional regions? Do you have any numbers for Non-OPEC countries? What about numbers for the Lower 48?
- Currently, how much is the Deepwater operations vs shallow water operations down? Is Deepwater operations more down than the shallow water operations?
- Do you see the Reservoir characterization/optimization enhancements as applicable to revitalizing old abandoned reservoirs? Are the collection of new cores a requirement in these old abandoned reservoirs? Will this be similar for abandoned conventional reservoirs?
- At what stage of the well (when) is your technology applied? How long does the entire process occur?
- How much of the West Texas Intermediate show up in the reservoir description?
- Have you applied any of these proposed unconventional EOR technologies to an existing asset? Do you envision this being similar to a Huff-n-Puff or are you contemplating placing another lateral parallel to the existing wellbore?
- In the current environment, what is the future for CO2 EOR in unconventionals? What effect does CO2 injection have on perforation technology and proppant injection
- For lower quality reservoirs (Tier 1 is highest quality), will this technology still be applicable or should we be worried of reduced productivity even with the application of the technology (unconventional EOR). For example, how will you compare the Delaware basin vs Midland basin? Do you believe this technology will be applicable in the Wolfcamp A where fewer wells are being drilled?
- Are you injecting in the fluids back into the reservoir in the liquid phase?
- Is your technology driving the perforations and penetration displacement lengths?
- Does the recent listing on Amsterdam exchange have an impact on company value? What percent of the entire company is this 20% value?
- Where has this technology being applied?
- Can you bring us up to date on the nature of the decline in these unconventional reservoirs?
- What will you do differently in the current operational environment? Will you target missed countries such as Libya and Nigeria?
- For the countries that are financially strapped, how long will is their production expected to occur?
- In reference to the slide showing number of rigs required for higher recovery/EUR, what is your observation on the importance between ultimate recoveries versus production? Will the decline curve be less steep or will it flatten out?
- How much of the drilled well today on average are Tier 1, 2 and 3?
- Are the re-injected engineered gases universal?
- At an oil price of $50 and below, what will be your recommendations for clients? How do clients justify more spending using your technology for profitability? How will board room discussions rationalize spending versus supply and demand changes with $50 oil price.
- Do you feel confident in evaluating different assets?
- Are you still having the typical 100 or more deals from clients?
- Three years from now, what are the drivers for North American production? Will the drivers be in terms of recovery or IRR? How with North America look like now and in the future?
Core Lab presented at EnerCom’s 2017 The Oil & Gas Conference®.
You can listen to the company’s presentation by clicking here.
