[PPT] - Re-Plumbing the 100 Year Old Pennsylvanian Bartlesville y PowerPoint Presentation

SLIDE 1

Re-Plumbing the 100 Year Old Pennsylvanian Bartlesville y Sandstone Reservoirs in NE Oklahoma in NE Oklahoma

Tulsa Geological Society

April 12, 2011 Tulsa, Oklahoma Tulsa, Oklahoma

Bob Westermark

Grand Directions, LLC

SLIDE 2

Today’s Agenda y g

Questions and Answers

Questions and Answers

DOE Wolco Project

G d Di ti ’ A t/W l P j t

Grand Directions’ Avant/Wolco Project
What would we do differently?

SLIDE 3

How ?

How do I plan for a successful How do I plan for a successful horizontal well?

Drill for by-passed oil
Understand the depositional environment
Understand the depositional environment
Keep the cost down
Closely monitor the results
Closely monitor the results
Modify the mental model

SLIDE 4

Is there enough oil left? g

SLIDE 5

Where to drill?

Where is the remaining oil in my Where is the remaining oil in my depleted reservoir?

Understand the Depositional Environment

Structure and isopach maps
Fracture orientation
Paleo-topographic map

SLIDE 6

Why Spend the Money? y p y

To make money! To make money!

Geologic model

Geologic model
Reservoir model
History matching of past performance
History matching of past performance
3 dimensional, 3-phase black oil simulator

SLIDE 7

Once a history match is achieved is achieved, an economic analysis i f d is performed to determine viability.

SLIDE 8

SLIDE 9

What is the Cost?

Was your last horizontal well expensive? expensive?

SLIDE 10

Before w orrying about cost . . . y g

Let’s define a few drilling terms.

SLIDE 11

Definitions

Section View Plan View Plan View

Build Rate Build Rate Orientation End of Curve Kick Length Off Point g

SLIDE 12

What Determines Build Rate For Horizontal Wells?

Schlumberger Power Drive Rotary Steerable Assembly

Mud Motor + MWD + LWD = 10 to 30 degrees per 100’

SLIDE 13

What does Grand Directions use?

Rotary steerable assembly y y 90 degrees per 100’

SLIDE 14

What does Grand Directions use?

Reduce the cost of horizontal wells Reduce the cost of horizontal wells. Rotary steerable assembly Rotary steerable assembly

SLIDE 15

What does Grand Directions use?

Reduce the cost of horizontal wells Reduce the cost of horizontal wells. Air hammer

SLIDE 16

DOE Wolco Project j

Avant field

Avant field

Discovered 1904
Unitized by Shell Oil 1937
Unitized by Shell Oil 1937
Sold by Shell in 1965

“Co ld not be aterflooded” “Could not be waterflooded”

Various operators tried waterflooding . . .

economic failures economic failures

SLIDE 17

SLIDE 18

SLIDE 19

OSTI_ID: 3244 A NEW METHODOLOGY FOR OIL AND GAS EXPLORATION USING REMOTE SENSING DATA AND SURFACE FRACTURE ANALYSIS Topical Report p p August 1995 By Genliang Guo Genliang Guo Herbert B. Carroll February 1999 Performed Under Contract No. DE-AC22-94PC91008 (Original Report Number NIPER/BDM-0163) BDM-Oklahoma, Inc. Bartlesville, Oklahoma

SLIDE 20

SLIDE 21

SLIDE 22

SLIDE 23

DOE Wolco Project j

Toe-To-Heel
Central horizontal

injection well

Two adjacent

horizontal producing wells

Disposal well #1-A

SLIDE 24

DOE Wolco Project j

Toe-To-Heel*

The incredibly technical technical, rocket scientist explanation:

* Patent Pending

SLIDE 25

DOE Wolco Project

180 210 1 000 000 10,000,000

j

150 180 100,000 1,000,000 90 120 1,000 10,000 30 60 10 100

6 BOPD

1 12/10/03 4/23/05 9/5/06 1/18/08 6/1/09 10/14/10

Cum Water BOPD

6 BOPD Production of 5A & 6A

SLIDE 26

DOE Wolco Project

Not economic at $30/bbl

j

Not economic at $30/bbl

SLIDE 27

DOE Wolco Project j

Injector

Shut-in

$50,000

Producers

Plugged back and

ugged bac a d new laterals drilled in opposite direction

Disposal well #1A

$50,000

SLIDE 28

DOE Wolco Project

180 210 1 000 000 10,000,000

j

150 180 100,000 1,000,000 90 120 1,000 10,000 30 60 10 100

18 BOPD

1 12/10/03 4/23/05 9/5/06 1/18/08 6/1/09 10/14/10

Cum Water BOPD

18 BOPD Production after re-drilling 5A & 6A

SLIDE 29

(OSTI_ID: 13821) INTEGRATED APPROACH TOWARDS THE APPLICATION OF

DOE/BC/14851-26

INTEGRATED APPROACH TOWARDS THE APPLICATION OF HORIZONTAL WELLS TO IMPROVE WATERFLOODING PERFORMANCE Final Report Final Report January 1, 1993 - August 31, 1999 By Mohan Kelkar Mohan Kelkar Chris Liner Dennis Kerr Date Published: October 1999 Date Published: October 1999 Work Performed Under Contract No. DE-FC22-93BC14951 the University of Tulsa the University of Tulsa Tulsa, Oklahoma

SLIDE 30

1 2 3 1 2 3

SLIDE 31

1 2 3 1 2 3

DGI E

SLIDE 32