ECONOMICRECOVERYOF OIL TRAPPEDAT FANMARGINSUSING HIGH ANGLEWELLSAND MULTIPLEHYDRAULICFRACTURES. Performed Under Contract No.

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1 ,7, DE/Bc/ (OSTI ID: 14233) ECONOMICRECOVERYOF OIL TRAPPEDAT FANMARGINSUSING HIGH ANGLEWELLSAND MULTIPLEHYDRAULICFRACTURES Quarterly Technical Prgress Reprt April l-june 3, 1998 By Mike L. Laue Repfi Issue Date: Nvember 6, 1998 Perfrmed Under Cntract N. DE-FC22-95BC1494 Atlantic Richfield C. Bakersfield, Califrnia.

2 . DE/Bc/ Distributin Categty UC-122. Ecnmic Recvery f Oil Trapped at Fan Margins Using High Angle Wells and Multiple Hydraulic Fractures By Mike L. Laue Octber 1999 Wrk Perfrmed Under Cntract N. DE-FC22-95BC1494 Prepared fr U.S. Department f Energy Assistant Secreta~ fr Fssil Energy Dan Fergusn, Prject Manager Natinal Petrleum Technlgy Office P.O. BOX 3628 Tulsa, OK 7411 Prepared by Atlantic Richfield C. P.O. Bx 147 Bakersfield, CA 9332 r-r., =--.,,. -. -, ,.....,,-..,*... -;..>:,.- -,...>l,+,,,x...-.,>;.-.:.: -..,,,.,.2,. :

3 . TITLE: ECONOMIC RECOVERY OF OIL TRAPPED AT FAN MARGINS USING HIGH ANGLE WELLS AND MULTIPLE HYDRAULIC FRACTURES Cperative Agreement N.: Cntractr Name and Address: Date f Reprt: Award Date: DE-FC22-95BC Atlantic Richfield C., P.O. Bx 147, Bakersfield, Califrnia 9332 Nvember 6, 1998 September 28, 1995 hticipated Cmpletin Date: September 28,21 \ Gvernment Award fr Current Fiscal Yea~ Principal Investigatr: Prject Manager: Reprting Perid: $3,926,267 Mike L. Laue, ARCO Dan Fergusn, NPTO April 1 t June 3, 1998 Disclaimer This reprt was prepared as an accunt f wrk spnsred by an agency f the United States Gvernment. Neither the United States Gvernment nr any agency theref, nr any f their emplyees, makes any warranty, express r implied, r assumes any legal liability r respnsibility fr the accuracy, cmpleteness, r usefulness f any infrmatin, apparatus, prduct, r prcess disclsed, r represents that its use wuld nt iniiinge privately wned rights. Reference herein t any specific cmmercial prduct, prcess, r service by trade name, trademark, manufacturer, r therwise des nt necessarily cnstitute r imply its endrsement, recmmendatin, r favring by the United States Gvernment r any agency theref. The views and pinins f authrs expressed herein d nt necessarily state r reflect thse f the United States Gvernment r any agency theref. Objective This prject attempts t demnstrate the effectiveness f expliting thin-layered, lw-energy depsits at the distal margin f a prgrading turbidite cmplex thrugh the use f hydraulically fractured hrizntal r high-angle wells. The cmbinatin f a hrizntal r high-angle well and hydraulic fracturing will allw greater pay expsure than can be achieved with cnventinal vertical wells while maintaining vertical cmmunicatin between thin interbedded layers and the wellbre.

4 DISCLAIMER Prtins f this dcument may be illegible in electrnic image prducts. Images are prduced frm the best available riginal dcument.

5 A high-angle well will be drilled in the fan-margin prtin f a slpe-basin elastic reservir and will be cmpleted with multiple hydraulic-fracture treatments. Gelgic mdeling, reservir characterizatin, and he-grid reservir simulatin will be used t select the well lcatin and rientatin. Design parameters fr the hydraulic-.tiacture treatments will be determined, in part, by fracturing an existing test well. Fracture azimuth will be predicted by passive seismic mnitring f a fracture-stimulatin treatment in the test well using lgging tls in an ffset well. summary f Technical Prgress The remaining pay intervals in Ywlumne Unit B 91X-3 were perfrated during the furth quarter f The well was allwed t prduce during the secnd quarter f Prductin trends were mnitred t determine the extent f cleanup. Analysis f stimulatin ptins cntinued, with a fcus n mitigating frmatin. damage frm drilling peratins. Prductin Perfrmance The remaining pay intervals in Ywlumne Unit B 91X-3 (behind the 7 in. liner) were perfrated in Nvember Figure 1 shws the lcatin f all perfrated intervals relative t the majr Stevens sand layers. The well has been allwed t prduce and clean up since then while future stimulatin ptins are being evaluated. Prir t perfrating the remaining pay intervals, the well was prducing 16 BOPD and 8 BWI?D. Initial prductin fllwing the wellwrk was 22 BOPD and 2 BWPD. The well has nw stabilized at apprximately 15 BOPD and 15 BWPD and is declining slightly (Fig. 2). Inflw perfrmance relatinship (IPR) curves were established by layer (Fig. 3). The 24 BPD ttal liquid rate fr Sand C represents the initial prductin rate frm the lwer perfratins. Adding perfratins in Sands A and B were expected t add 17 BPD, hwever, the actual increase was nly 8 BPD. Future Plans Prductin surveillance will be cntinued t cnfirm the well has cleaned up t the maximum extent pssible thrugh cntinued peratin. The new perfratins will be stimulated t imprve prductin similar t an earlier stimulatin f the lwer perfratins. A nn-acid reactive fluid cnsisting f a blend f KC1 water, irn chelating agents, mutual slvents, surfactants, and nitrgen was pumped thrugh ciled tubing int the lwer perfratins. This treatment f the riginal cmpletin interval successfully increased prductin frm a trace f il and 4 BWPD t 22 BOPD and 2 BWPD. Fllwing stimulatin f the upper perfratins, the well will be prduced fr a perid f time t clean up and bserve prductin trends and pressure behavir.....,... L,.,>....,.,, >4,. W??S.:..-~,+ :,.>..,,:..,~... T.:-zs, /c...,.,*., >., J,

6 Based n these results, a hydraulic fracture treatment may be cnsidered fr these perfratins. Technlgy Transfer Preparatins fr a public wrkshp cntinued during the secnd quarter. The wrkshp is being planned fr August 2, 1998 in Bakersfield, Califrnia. The purpse f this wrkshp is t review the prject t date with industry and ther interested parties. Attentin will be fcused n general prject infrmatin, well planning, drilling peratins and cmpletin peratins t date. During the secnd quarter, an invitatin list fr the wrkshp was develped. In additin, materials were selected fr a cmpact disc t be distributed t wrkshp participants, as well as thse unable t attend.

7 3t-l Cn m l-i m+ (x c N m+ t+ R A+ in + t-l.z N I-1 m + m

8 {. 6. 1, 1% 1, $ -! -. &2, It T $ T... 1% u c(u 7. 1, 4_ < x \ %. --I.---J-.4-M G2==---=+:-=+: z., z sz%i-akr---~j _ -.-._ ~ rn 1 I 1 1 I I i 1 1 9/97 1/97 11/97 12/97 1/98 2/ /98 5/98 6/98 % % -e-il, Bpl) --Ttal Liquid, BPD u GOR, SCF/STB + Water Cut, YO Figure 2. Well tests befre and after perfrating Sands A and B.

9 Ttal Liquid Rate, BPD Figure 3. Vgel IPR curve fr Sand C and expected IPR curves fr Sands A and B.

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