JVViews: March 2014 Issue
Editor's Note
Obituary for PJVA Member Gerry DeWulf
When is Calculating Unit Tract Factors Based on Contributed Acreage a Bad Thing?
Please note the March Pub Night is scheduled for the 19th, NOT the 16th as previously promoted!
1995 Annual Report Request
PASC Education: Introduction to the 2011 Accounting Procedure
Luncheon Director's Note
January Luncheon Review
- Pipeline Water Crossing Risk and Mitigation with Corey Simard, Crescent Point Energy
February Luncheon Review
Upcoming Events
eStudies and Web Based Learning - The JV Analyst I course is now online!
Looking for a New Opportunity?
PJVA LinkedIn® Group
Editor's Note
A Note from the Editor...The optimist in me believes that spring will soon be here. The brutally cold days of February are behind us, the days are getting longer and we are once more adjusting to the daylight savings time change. Q1 is winding down and the approach of spring breakup usually means an opportunity to pick up projects or issues that have fallen to the bottom of the pile. It feels safe to start planning summer activities.
This year PJVA is celebrating the 10th anniversary of our Summer Kickoff breakfast. If members have any suggestions for enhancing this year's event, please contact either Rein Evelein or Connie Pruden.
Our thanks to Marcel Savoie for this month's JV Dynamics - Quick Tips article on When is Calculating Unit Tract Factors Based on Contributed Acreage a Bad Thing? Please note that unitization guidelines should always be obtained from the appropriate provincial governing ministry.
PJVA is considering a "members news section" to track notifications of members on the move, retirements, etc. These announcements would be reviewed by PJVA to ensure appropriateness and would be published only with the individual's written permission. Please contact either Connie Pruden or me with thoughts, concerns or announcements for publication.
Joan Lee
Obituary for PJVA Member Gerry DeWulf
DEWULF, Gerald (Gerry) Benoit
July 16, 1948 - Lafleche, SK
February 25, 2014 - Calgary, AB
Throughout the years, Gerry was dedicated to his work as an Engineer in the Oil and Gas Industry. Whether this was in the fields of Southern Saskatchewan, Wyoming or in the offices of Calgary, he was well respected amongst peers. Gerry's career was spent with Marathon Oil, Aberford, Encor, Morrison Petroleum, Northstar Energy, Devon, Petrobank, Direct Energy and Avenir. Gerry had been retired since 2010.
He never met a sport he didn't like, but his passions were slo-pitch, baseball and golf.
He was devoted to his four grandchildren and his eyes would light up with joy whenever he had the opportunity to play with them. He was truly a "papa" extraordinaire.
His wife, daughters, sons-in-law, four sisters, one brother, many special nieces, nephews, friends and colleagues will miss him terribly.
Memorial Services will be held at the Country Hills Golf Club (1334 Country Hills Blvd. N.W.) on Friday, March 7, 2014 at 2 p.m. In lieu of flowers, donations can be made in Gerry's name to either the Calgary Minor Softball Association www.calgaryminorsoftball.com or to Kidney Cancer Canada www.kidneycancercanada.ca. All donations will go towards research being conducted by Dr. Danny Heng at the Tom Baker Cancer Centre in Calgary. Danny is outstanding in his field of oncology and is a warm and wonderful man who supported us everyday - from beginning to end. Condolences may be forwarded through www.mcinnisandholloway.com. In living memory of Gerry DeWulf, a tree will be planted at Big Hill Springs Park Cochrane by McInnis & Holloway Funeral Homes, Chapel of the Bells, 2720 Centre Street North, Telephone: 403-276-2296.
When is Calculating Unit Tract Factors Based on Contributed Acreage a Bad Thing?
Units. We're all aware of them. Some of us even work with them on a daily basis. But what do we know about how to calculate a tract factor when we are forming a new unit? It should be easy, right? Base it all on working interest share of unit contributed acreage and we're done. Easy. Elegant in its simplicity. Just move forward.Putting a bit more thought into it, you might realize that not all reservoir rock is created equal. Even within the boundaries of a potential unit, the rock will vary from one section to another. You might want to even consider that there might be more oil (or gas) in a given tract of land. Let's look at an example:
We have a pool in Alberta that is 100% crown owned between 4 companies sharing in primary oil production. The largest area owners wants to start a waterflood with the thought that they would eventually like to try a solvent EOR scheme. The land area encompassed by this pool is 3 sections, as shown on the map below.
Based on the following data, let's see what kind of a difference it can make to the calculation:
Simple methods to determine tract factors
In reality, there are almost an infinite number of combinations, permutations and weightings that could be done to finalize the tract factor formula; 50% acreage, 25% net pay, 25% OOIP, or any other combination of these three categories. Production could also be brought into the mix. Hydrocarbon Pore Volume, Permeability, Porosity could each be included in the calculation in varying proportions. It all depends on what makes sense and what is negotiated.
In conclusion, when negotiating unitization or other forms of pooling, each party needs to be open minded and flexible. It helps to discuss some of the reservoir and geological characteristics with your engineers and geologists before entering into the negotiation. If the other negotiator thinks this way and you don't, your company can be leaving a considerable amount of money on the table.
For the PJVA
Marcel J. Savoie
PASC Education: Introduction to the 2011 Accounting Procedure
For more informaiton and online registration, please visit PASC web site.
Please note the March Pub Night is scheduled for the 19th, NOT the 16th as previously promoted!
Click here to RSVP1995 Annual Report Request
If anyone has a copy of the 1995 Annual Report could you please forward a scan or original to the PJVA office. It will be in preparation of the 25th Anniversary Golf Networking event!PASC Education: Introduction to the 2011 Accounting Procedure
For more informaiton and online registration, please visit PASC web site.
Luncheon Director's Note
Please continue to foward your input on the past year's luncheons as well as any ideas of topics or speakers you would like to see for 2014.Your input is important as the PJVA wants to offer a variety of luncheon presentations that are of interest to the most important aspect of our association - YOU!
We had a variety of topics since September when I took over; from legal, to software to technical. Here's your chance to voice your valued opinion!
- How did you find the past year's topics?
- What would you like to see in the future?
- Are there past luncheons you would like to see revisited?
- Do you know someone who is looking to present?
I look forward to hearing from you!
Cheers to an exciting 2014!
Richelle Lindsay
Luncheon Director, PJVA
January Lunch Review - Pipeline Water Crossing Risk and Mitigation with Corey Simard, Crescent Point Energy
This was an educational luncheon on pipeline infrastructure and the risks associated with water crossings. Corey Simard of Crescent Point Energy Corp. walked us through the efforts required for companies to mitigate risk when dealing with water crossing pipelines.Oil and Gas production is transported through a network of pipeline infrastructure within Alberta. Industry has thousands of water crossings throughout the 415,000 km inventory of pipelines. This inventory is of significant risk. Water crossings present significant operating liability in terms of regulatory, environment, company image, and economic consequences but the risks can be managed through regular inspections and detailed assessments where required.
February Lunch Review
This session from ScotiaMcLeod explained option strategies that can protect your portfolio and create the ability to hedge market volatility; strictly for your peace of mind.Please login to download an attached file.
Upcoming Events
Pub Night Networking - March 19, 2014Early Morning Discussion - March 26, 2014
March Luncheon - March 27, 2014
Pub Night Networking - April 16, 2014
PJVA/PASC/CAPPA Seminar: 13th Month Adjustments - April 22, 2014 - Full!
April Luncheon - April 24, 2014
Land Agreements Overview - April 29, 2014
2 day Seminar: JV Agreements - May 6-7, 2014
May Luncheon - May 15, 2014
Intro to JV Accounting - May 27, 2014
June Luncheon - June 19, 2014
To Register, please go to PJVA website: https://securegs.com/pjva/
eStudies and Web Based Learning
PJVA has a suite of web based courses geared towards practicing and prospective JV professionals and personnel involved in the development and operation of a Joint Venture facility.These courses, available via the eStudies link at www.pjva.ca, are a supplement to the Joint Venture Certificate Program offered through PJVA and Mount Royal University. The courses offered on eStudies are identical to the courses offered at Mount Royal, the only distinction being that the Mount Royal courses are applicable towards the Joint Venture Certificates while eStudies are not. As well, the eStudies courses are offered in segments such that the student can customize and streamline their learning experience.
eStudies courses include Joint Venture Agreements, with modules in Construction, Ownership and Operating Agreements, Unit Agreements, and Service Agreements, Joint Venture Administration as well as Joint Venture Analyst Levels 1 and 2. The Agreements courses offer excellent background knowledge to anyone who works with or is bound by a Joint Venture Agreement. Joint Venture Administration details exactly how work is to be conducted within the legal framework of Joint Venture agreements. The Analyst courses provide understanding of Joint Ventures techniques and processes.
PJVA is excited to offer customizable and accessible web-based learning options to industry professionals. Check out www.pjva.ca today and click on eStudies!
Looking for a New Opportunity?
Check out the PJVA Job Board for recent postings.PJVA LinkedIn® Group
PJVA is now on LinkedIn®, the world's largest professional network. It's a great way to stay connected and exchange ideas with other PJVA members and industry professionals.Click here to join the discussion!
PJVA was incorporated in 1985 to represent individuals and organizations involved in petroleum joint ventures. JVViews is published to keep members informed about upcoming PJVA and industry events, courses and seminars offered and/or sponsored by PJVA and current projects being facilitated by the Association.