5 Steps to Lowering Your Cost per Barrel

Step 1 Build

Develop a calibrated petrophysical volumetric analysis model for the area, tie the wireline log data to all available core and production test data. Key deliverables are original oil or gas in place. Applicable to both conventional and organic shale reservoirs. For conventional reservoirs develop a calibrated permeability model from integrating the petrophysical model outputs with well test permeability. Sources of permeability include DFITS (Diagnostic Fracture Injection Tests), pressure buildup tests, single rate permeability matching with flow models, and production decline history matching. For vertical wells develop a relationship between pump in test ISIP (instantaneous shut-in pressure) and reservoir pressure per SPE 90483 (Barba and Shook 2004)

Step 2 Develop

For all wells develop a rock properties model where closure stress and Young’s modulus can be obtained from standard logging suites (“triple combo” density-neutron-resistivity logs). Develop the model using coherent dipole sonic data using only data points with coherency greater than 90%. For all wells develop a vertical profile of oil in place or gas in place (OIP/GIP) and closure stress. For conventional reservoirs add a calibrated log derived permeability profile to the OIP/GIP profile. Summarize the OIP/GIP per acre and compare to EUR per acre from production decline analysis, estimate remaining mobile oil and gas in place (ROIP/RGIP), compare with historical recovery factors and offset estimated ultimate hydrocarbon recovery (EURs). Develop an estimate of the likely producing height from the recovery factor analysis per SPE 174994 (Barba 2015), use that and the recovery factor data to forecast production for future completions.

Step 3 Create

For new wells develop a perforating and completion program that integrates the hydrocarbons in place with the closure stress profile, execute the treatment using frac “best practices.” For refracs identify the highest RGIP/ROIP wells. For unconventional organic shale reservoirs estimate the volume of hydrocarbons in “new rock,” design a program that focuses treatment on new rock vs simply refracting old rock. Employ a combination of mechanical and chemical diversion for best results. If old rock remaining reserves are significant stage fracs to treat new and old separately if RGIP/ROIP in old rock low focus primarily on the new rock.

Step 4 Conduct

For conventional vertical wells conduct short DFITs on each existing perf cluster, use the relationship between ISIP and reservoir pressure to reduce test time and costs. For both horizontal organic shale wells and conventional wells design a stimulation program that effectively treats each cluster thus avoiding stranded hydrocarbons.

Step 5 Complete

Execute the treatment using “best practices,” follow up with production logs and tracer analysis to verify success and refine future treatments. “Best Practices” reference for both conventional and unconventional reservoirs “Refrac Candidate Selection, Execution, and Performance Evaluation” school.