2017 CO 2 & ROZ Conference Week

Transcription

1 CO 2 & ROZ Conference Week Wednesday, December 6, 2017 Recap & Discussion of Tuesday s Seminar: ROZ Science, Activity Updates on Horizontal Depressuring the San Andres Formation, and ROZ CO 2 EOR Given by Cliff Horseshoe Facility Education Room Midland, Texas

2 2 CO 2 ROZ Conference Shortcourse/Seminar #20 Introduction to the ROZ Topic and On-Going Exploitation Case Histories What is the ROZ all About and How Did the Industry Get Here? Setup for the Seminar AM Session - the Science PM Session - ROZ Exploitation and Case Histories

3 5:30-7:30 pm - Reception at Susie s South Forty Confections Outline for the 2017 Seminar; Tues Dec 5, 2017 ROZ Science, Activity Updates on Horizontal Depressuring the San Andres Formation, Section H and ROZ CO 2 EOR Introduction and Update to Current ROZ Exploitation Steve Melzer 3 I J Review of ROZ s Work Beneath Major San Andres Oilfields....John Allison Greenfield ROZ s: Science and ROZ Fairways Robert Trentham Morning Break K L M ROZ Reservoir Diagnostics (Conventional Rocks and Unconventional Oils) Steve Melzer Engineering Tools Overview Rob Laronga GeoSteering and Data Integration Lunch and Keynote Speaker..David Christmas N Case Histories a. Tall Cotton ROZ CO 2 EOR...Allison and Melzer b. Horizontal Depressuring Lance Taylor O Performance Variability in the Horizontals Panel......L. Taylor; Russell Hall Afternoon Break P Q R Horizontal Completion Advances Hydrofracturing Cudd Energy Services Open Hole Experience Ben Azar What Follows Reservoir Depressuring? George Koperna, Jim Erdle S. Panel and Group Discussion: Questing for ROZ s Elsewhere in the World.....Illinois and Williston Basins, and Australia Panelists Wrapup & Adjourn

4 Seminar Presenters/Instructors Hosting Organization: The Applied Petroleum Technology Academy Steve Melzer: Coordinator and Instructor - Melzer Consulting, APTA John Allison, Firethorn Petroleum Dr. Robert (Bob) Trentham UTPB, APTA Russell Hall, Russell K Hall & Associates Robert Laronga, Schlumberger Well Services David Christmas, Schlumberger, V.P. Permian Basin Lance Taylor, President, Steward Energy II Cudd Energy Services Ben Azar, ROZ Resources George Koperna, Advanced Resources International Jim Erdle, Computer Modeling Group

5 5 Two Ways to Produce S orw Method 1 EOR Can Also Be Done Via Vertical Flooding Method 2 Depressuring Works with Horizontal Wells and Rarely Commercial Using Vertical Wells

6 6 Key Concepts/Definitions for Residual Oil Zones ROZ Definition: That Portion of a Reservoir Below the Oil/Water Contact Where Residual Oil Resides but the Mobile Phase is Water Brownfield: Defined as a ROZ that Exists Under a Developed Oil Field (Main Payzone {MPZ}) Example: Seminole San Andres Unit Greenfield: A ROZ that has no Overlying MPZ (Example: Tall Cotton Project) Fairway: A Large Region Where Greenfield ROZs Exist and Align Geographically ROZ Microbes: Those Naturally Occurring Anaerobic Bacteria that Must Live in Water that Use Hydrocarbons for their Life Processes (Their effects are inhibited in the MPZs)

7 7 Let s Quickly Examine the ROZ Myths We Tend to think first about the Rock when we say reservoir Let s Change that and Include the Oil and the Gas Entrained in the Oil Residual Oil Zones are Just Transition Zones Residual Oil is Always Heavy Oil Residual Oil is Never Gassy Oil Coming Back Later this AM and We ll take a Look at the Oil Properties of the ROZs with You

8 8 Review of ROZ Work Beneath Major San Andres Fields 2017 CO 2 Conference Midland,TX. John D. Allison, Jr. President Firethorn Petroleum, LLC.

9 What Have We Learned About the ROZ?? 9 ROZ porosity has different (usually better) log characteristics and rock properties than Main Pay. Pervasive dolomitization is key to high quality ROZ reservoir. ROZ has significant Secondary Porosity from Dolomitization Process. Oil saturations below OWC are best referred to as ROZ. CO 2 is great fluid to flood ROZ Production response tremendous. ROZ resource is VERY LARGE in Permian and potentially elsewhere Melzer, ARI, DOE, APTA, REPSEA, CO 2 Conference high number of studies on ROZ over last 10 years. ROZs have MOVEABLE oil recoverable with horizontals upon depressuring. HOW HAVE WE LEARNED?

10 10 Greenfield ROZ s: Science and ROZ Fairways Dr. Bob Trentham University of Texas of the Permian Basin 23 rd Annual CO 2 Conference December 5, 2107

11 11 ROZ BACKGROUND The 3 types of Residual Oil Zones The Evidence suggests Type 3 are common in the Permian Basin

12 There are Many ROZ Profile Type but Here are Three Common Ones on the NW Shelf

13 Section H ROZ Reservoir Diagnostics (Conventional Rocks and Unconventional Oils) Steve Melzer APTA and Melzer Consulting

14 The ROZ Oil Database A very thorough laboratory study was accomplished on San Andres ROZ oils and water at the Seminole Field by Honarpour et al (Ref 3) while working at the Hess Corporation. Some pressurized oil samples were obtained to avoid the issues of degassing, i.e., the liberation of light ends as samples are brought to the surface. The SPE Paper (#133089) they wrote forms the platform to add additional insight using the Regional ROZ Sweep understandings from the RPSEA ROZ research (Refs 1,2)

15 SUMMARY (3) The Data and Models Show that 1. The Oil Degases with Decreasing Pressure 2. Viscosities Increase (Gravities Decrease) 3. Densities Increase 4. Formation Volume Factor Decreases The Lab Tests also Show a Very High Swelling Factor (77%) when Saturated with CO 2 and a Minimum Miscibility Factor (to CO 2 ) of 1300 psi This compared very closely to the MPZ Oil Samples that Seminole tested earlier

16 SUMMARY (4) Using the Hess Data and Models, the Science of Lateral Sweep of the ROZ along with the Regional Work Observations of Decreasing Gas with Depth in the Thicker ROZs, we can hypothesize: A. GORs Decrease with Depth B. Viscosity Increases with Depth C. Densities Increase with Depth D. Formation Volume Factor Decreases with Depth E. The Natural Water flood Pore Volume Sweep Increases with Depth Success of the Seminole ROZ and Tall Cotton ROZ Projects Suggest that Much of the Full Interval of ROZ is Miscible to CO 2 Horizontal Depressuring Laterals are less Successful the Deeper the Lateral is Landed (or Frac d) into the ROZ interval

17 17 Characterization Tools for ROZ Exploitation via Lateral Wells Robert Laronga*, Jorge Gonzalez Iglesias, Elia Haddad, Farhan Alimahomed & Lance Smith

18 Petrophysics Geomechanics Geology Reservoir Monitoring ROZ Characterization Challenges 18 Saturation? m & n salinity Wettability? Matrix Stress direction Stress magnitude Mechanical properties Diagenetic facies mapping Correlation to m & n Fault & fracture mapping Flood efficiency 3-Phase saturation CO2 breakthrough How much oil is left? How is the frac contained? Where does the fairway go? How effective is the flood? Can we get it? Optimum frac design? Are there thief zones?

19 Fault Zone Observed in San Andres ROZ Good indication of a clear gouge zone with obvious conductive zone boundaries From the image conductivity we can interpret the fault plane being non-sealed boundary, and could be source of fluid leak-off The two faults are modeled using a commercial E&P simulation platform Alimahomed et al, 2018, SPE

20 20 Summary ROZ HC volume evaluation requires a strong set of measurements & has been well-addressed in verticals. Smart tailoring of the FE workflow is needed moving from verticals to laterals. Efficient logging methods in both open & cased wellbores introduce a growing portfolio of cost-effective advanced measurements. Horizontal logging methods include advanced acoustic logging, which is essential information in the event that wells are completed with multistage fracs. Horizontal logging methods include microelectrical imaging, essential to identifying thief zones, understanding diagenetic trends, and tying back to some of the petrophysical uncertainties. New methods of resolving the 3-phase saturation problem (oil-water-co 2 ) have been developed as part of the above effort.

21 21 Section M Data Acquisition, GeoSteering and Integration Steve Melzer APTA and Melzer Consulting

22 22 In this Age of Horizontal Drilling... Our Industry Is Learning Things about our Reservoirs we Could only Speculate about Before Examples: Lateral Variability of the Rock (i.e, Compartmentalization) Presence, Nature, and Density of Vertical Fracturing What are the Data we are Acquiring? Examples of Geosteering Data ROP, Torque, Mudlogs (Conventional and Mass Spectrometry), Gamma Ray, Through Pipe Logging, Microseismic Data Analytics for Assistance with Completion Engineering Now we ll take a look at some examples of Several Displays of the Data being acquired and at lunch get Schlumberger s Perspective on this New Age

23 Hor San Andres: Lateral Display Example #1 23 Note: Horiz Scale Exaggeration 3x Well Encountered a Major Fracture 30

24 24 Next we Adjourned to Lunch Followed by a Special Keynote Address by David Christmas V.P. Permian Basin, Schlumberger Perspectives on Innovation and the Need to Focus on Tools for the ROZ

25 25 Section N Tall Cotton CO 2 EOR ROZ Greenfield Flood John Allison Firethorn Petroleum

26 ROZ Projects in the Permian Basin 26

27 27 (Regional) Structure on Top of the San Andres Porosity W. Seminole (SA) Field Riley, N (Clearfork) Field

28 Corrected Whole Core Saturations in the Vicinity of Tall Cotton 28

29 Horizontal San Andres Case Histories December 4-7, 2017 Midland, TX Unconventional Development of Conventional Oil Fields You will Hear Much of this Today

30 The Steward Energy Story 30 Concerned with commodity price instability and cost structure of unconventional plays Goal: build an E&P that would thrive in extended $40/BBL environment Refocus on the fundamental marriage of science and business necessary for an independent E&P Assemble an enhanced team Unconventional Development of Conventional Oil Fields FOUNDED REEVES CO. ENTRY EXIT ESCROW PERIOD FOUNDED SAN ANDRES ENTRY CONFIRMATION EXPANSION DEVELOPMENT PROGRAM DEVELOPMENT PROGRAM Steward Energy Build 10k acre Reeves Co. position Prove 5000 column with vertical drilling & testing program and 1 HZ Wolfcamp A 2mile lateral Marketed sale to APC 2.95X ROI in 2 yrs Study markets Scout prospects Assemble team Steward Energy II Masten, Michael, Arrowhead, & Ariel Prospects ~30,000 net acres Masten, Browning, Colt, Arrowhead all gather key petrophysical data and test concepts Additional equity raised 5 bank RBL Credit Facility Bronco, Mustang, & Corona strategically add to core footprint 1.5 rig program Leasehold commitments Build production base 1 rig program drilling from cash flow Extend commercial limits throughout 100k acres leasehold Down spacing tests A

31 Scale Cleanout Identification Backslider 4H The Backslider 4H began experiencing excessive decline in water production quickly followed by a decline in oil production Pump Intake Pressure (PIP) also declined steeply and the well was immediately pulled following acquisition The tubing and ESP were stuck with scale and the lateral was approximately 75% full of scale Each perf stage was converted, acidized, and inhibited per normal procedure Post cleanout production increased from 25 to 220 BOPD 31 A

32 Steward II Total Production 32 8/8 th operated production of all assets Buoyed by the success of the workover program and positive drilling results, production decline has been arrested and production base has more than doubled in 1 year since Bronco acquisition

33 Northwest Shelf Horizontal San Andres Play Russell K. Hall You will Hear Much of his Presentation Today

34 PRODUCTION (BARRELS PER MONTH) 1,000,000 HZ Well Performance , , ,000 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 OIL PRODUCTION (BOPM) GAS PRODUCTION (MCFPM) WELLS 1

35 Oil Performance -2 P2 P5 1.5 MILE LATERALS AVG 59,266 BARRELS PER 1,000 FT 89, ,194 P10 P20 1 MILE LATERALS AVG 67,894 BARRELS PER 1,000 FT 55,373 62,500 P30 P40 P50 P60 P70 P80 34,281 36,784 P90 P95 P98 1,000 10, ,000 1,000,000 Oil EUR PER 1,000 FT PERFS (barrels) 1 MILE LATERALS 1.5 MILE LATERALS

36 A Look Into Fracturing The San Andres CO 2 & ROZ Seminar Danny Ratliff Cudd Energy Services

37 Frac Fluids Fluid Systems Borate Crosslinked Guar Use of same Non-Emulsifier compatible with low gravity San Andres crude lb/1000 gals Guar Enzyme Breaker Polymer specific, breaks guar molecule into simple sugars that are easily removed from fracture / matrix Biocide must be compatible with frac fluids. Prefer to run demand test to determine loading.

38 Current Practices Treatment Design Stage Spacing Typical 1 mile laterals, some 7,500 laterals stage length stages on a 5,000 lateral 3 6 clusters of perforations spaced geometrically across stage. Job Design Rates are typically higher than what we would recommend bpm 150, ,000 lbs Proppant 2,500 3,500 bbls total fluid

39 Evolving Practices Engineered stage placement and design Lower Rates, smaller volumes to reduce water production Transition from slickwater to gelled and XL fluids Introducing CO 2 into treatment fluid

40 Hunton De-Pressuring and Open Hole Completions North Central Oklahoma Ben Azar ROZ Resources, LLC.

41 North Central Oklahoma Hunton ROZ Where Hunton De-Pressuring Began Twin Cities-Central Dolomite Field 83 Multi-Lateral HZ Wells Holding Over 50,000acres Privately Owned Electric, Gas, Water, and Oil Gathering and Production Facilities

42 North Central Oklahoma Hunton ROZ Well Design After Drilling 1 st Lateral, Trip Back to Near Casing Shoe & Select An Intentionally-Created Open Hole Dogleg & Time-Drill a Trough After Several Hours of Gently Time Drilling, the Trough Becomes Deep Enough Take Weight And The 2nd Lateral Is Now Kicked Off Drill 2 nd Lateral At Planned Azimuth to Lease Line Repeat in Opposite Direction For 3 rd Lateral

43 Section R What Follows Reservoir Depressuring? George Koperna Advanced Resources International Jim Erdle Computer Modelling Group

44 44 GOR Looking at GOR in another way, the more gas in the system, the less crude oil will be in place for a given saturation (34%). GOR scf/stb Boi res bbl/ std bbl OIP MMBbls WIP MMBbls GIP Bcf "Primary" Oil MBbls Recovery Factor (RF) % OIP "Primary" Gas MMscf

45 45 EOR Configuration The layout for CO 2 -EOR employs vertical production wells drilled on the flanks of the horizontal wells.

46 46 Transition and optimization to CO 2 -EOR At the end of primary production, reservoir pressure is down to 750 psia, well below MMP. Straight water injection re-pressures the system quickly. However it will add some expense of separation in EOR. WAG injection for re-pressuring puts CO 2 in-situ, which can then be used beneficially for EOR. 1:3 WAG 1:1 WAG Time to reach MMP (months) 15 8 Cum Injected CO 2 (Bcf) after 15 years Incremental Oil (MBbls) after 15 years The horizontal producer is switched to WAG injection after 5 years of primary production and production then occurs from vertical wells Using the horizontal well for injection allows higher injectivity. Vertical production wells create contact with the bottom section of the ROZ for eventual CO 2 -EOR flooding. Vertical Wells Cumulative CO 2 Injected (Bcf) Oil Recovery (MBbls) Gross Utilization (Mcf/Bbls)

47 47 Conclusions Drilling for the Low GOR Oils is Not Economic for either Primary Depletion Drive or Cyclic Injection With Sunk Costs after Primary Depletion, Cyclic Injection Appears to Have Economic Potential if Total Costs of CO 2 Delivered to Site is <$2.00 Mcf

48 48 Questing for ROZ s Elsewhere in the World A Discussion with Reps from the Illinois Basin and Williston Basin

49 49 Are You Hungry for More than the? The Unabridged Version A Four Day Short Course on ROZ Depressuring and CO 2 EOR in Midland on January Petroleum Professional Development Center