Table of Contents

Vol. 7, No. 2
2nd Quarter 2001

2000 Basin-Centered Gas Symposium

October 6, 2000 (Denver, CO) by Rocky Mountain Region, Rocky Mountain Association of  Geologists and the Gas Technology Institute

BOTTOM LINE

Basin-centered gas production from "unconventional" tight sands is a huge resource that, if developed, could significantly revive onshore exploration in the United States.

PROBLEM ADDRESSED

It is becoming critical that the U.S. industry more fully develops the Nation's large "unconventional" gas resources. At present about 15% of the U.S. total gas production is from "unconventional" basin-centered (synclinal) gas resources. Basin-centered gas production is in its infancy, but will increase as more explorationists become aware of this enormous gas resource. More effective exploration and exploitation strategies will be necessary in the near future to meet the increasing emphasis on this resource. This symposium was presented to increase the industry's knowledge of basin-centered gas systems and to stimulate new exploration ideas.

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Technology Updates for the Permian Basin

April 6, 2000 (Hobbs, NM) by Southwest Region

BOTTOM LINE

Technology advances in underbalanced drilling, mud logging equipment, real-time monitoring of hydraulic fracturing treatments, well stimulation with water fracs, and borehole imaging and cased-hole logging tools each, when applied properly, can improve well/lease profitability. But this improved profitability comes only when the advantages/limitations and proper application environment of each technology advance are known and applied.

PROBLEM ADDRESSED

Technology advances are occurring in all areas of upstream oil and gas operations. Within this broad realm, independents are challenged with staying abreast of these changes that could favorably impact their well/lease profitability. Brief presentations about advances, supported with field examples, provide a valuable service by alerting independents to proven newer technologies. Given this information, independents can make informed decisions about which technologies are appropriate for their operations.

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Reservoir Characteristics of Morrow/Incised-Valley Fill Plays

February 16, 2000 (Wichita, KS) by North Midcontinent Region

BOTTOM LINE

Identifying certain Morrow and related-age reservoirs in Kansas as fluvial origin in spite of their occurrence in a marine shale context, gives operators the needed perspective to successfully explore for similar reservoirs and develop existing reservoirs more efficiently.

PROBLEM ADDRESSED

Exploration for and development of elongate reservoirs encased in fine-grained marine sediments of the Pennsylvanian Morrow in Kansas has resulted in remarkable success in recent years, but a better understanding of the depositional context and internal architecture is needed for continuing success in exploration and increasing recovery from existing reservoirs.

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Mapping, Locating and Recoverying By-Passed Hydrocarbons

May 22 & 23, 2000 (Long Beach & Bakersfield, CA) by West Coast Region

BOTTOM LINE

By-passed hydrocarbons are best located using a variety of reservoir characterization techniques and technologies. Well-defined petrophysical properties are fundamental to understanding fluid saturation and distribution in reservoirs. New techniques such as Moving Domain, and recent advances in accurate 3-D geologic modeling and nonparametric statistics can significantly improve predictive capabilities.

PROBLEM ADDRESSED

A major problem facing California independent producers is selection of effective techniques to estimate remaining oil in reservoirs that have been inherited from major oil companies. Locating remaining pockets of recoverable oil is neither easy nor is it inexpensive. Part of the solution for these problems is a solid understanding of detection methods and the causes for trapped oil. Reservoir characterization and new computer methodologies such as "Moving Domain" and "Earth Vision" that can make the search more efficient, and thus enhance the bottom line, can facilitate such understanding.

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New Technologies for Handling Produced Water—Downhole Oil/Water or Gas/Water Separators

July 14, 2000 (Lansing, MI) by Midwest Region

BOTTOM LINE

Downhole oil/water separators (DOWS) or gas/water separators (DGWS) are a relatively new technology that can help reduce water handling costs and produce more hydrocarbons to the surface per day. DOWS installations are expensive and not cost effective for all wells. Features critical for success include a high water-to-oil ratio, the presence of a suitable injection zone that is isolated from the production zone, compatible water chemistry between the producing and injection zones, and a properly constructed well with good mechanical integrity.

PROBLEM ADDRESSED

DOWS are devices placed in the bottom of the well that separate water from the oil and gas stream. Some water is reinjected into another formation or horizon, while the oil, gas, and remaining water are produced to the surface. DOWS have a great potential to save money and reduce the environmental impacts of managing produced water at the surface. Because the technology is still in its infancy, not all problems have been solved. Success has been mixed. The cost of installing DOWS, including the well workover, is substantial. With continued high oil prices, DOWS are likely to find wider popularity and use.

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Innovative Technology for Coalbed Methane in the Appalachian Basin

September 13, 2000 (Beckley, WV) by Appalachian Oil & Natural Gas Research Consortium, West Virginia University and Appalachian Region

BOTTOM LINE

The central and northern parts of the Appalachian Basin, when viewed from the perspectives of recent technological advances in both formation and reserves evaluation, well completion and reservoir management, are areas that should be given serious consideration for development of coal-associated gas.

PROBLEM ADDRESSED

The technology of coaled methane has evolved tremendously over the past two decades, but in spite of what has been learned about exploration, reservoir characterization and reservoir management in the context of this resource, considerable potential remains essentially untested in the Appalachian Basin. Coalbed methane has moved well past the novelty stage to a legitimate and established source of energy, and in the Appalachian Basin its promising potential exists and remains to be developed in proximity to major markets.

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May 2001 Case Studies

PC-based simulation optimizes horizontal well development plan

Jim Buchwalter and Greg Hazlett, Gemini Solutions, Inc., Houston, Texas, and Paul McDonald and Charles Sharp, Pioneer Natural Resources, Irving, Texas

Bottom line: Pioneer Natural Resources, with support from Gemini Solutions, Inc., used quick-turnaround, PC-based reservoir simulation to evaluate infill horizontal development in the tight gas Edward formation in Pawnee field, Bee County, Texas. The reservoir model, refined through history matching, vertical well performance, reliably predicted production rates and flowing tubing head pressures of three horizontal wells. Model predictions indicate that gas recovery (through 2030) will be increased from 54% of gas-in-place with existing vertical wells to nearly 80% with horizontal well development.

Hydrochloric/phosphonic acid combination improves well performance

Richard Russell, St. James Oil Corp., Los Angeles, California, and Walt North, RMC Consultants, Inc., Tulsa, Oklahoma

Bottom line: St. James Oil Corp. used a combination hydrochloric / phosphonic acid stimulation treatment in four wells in the Los Angeles Downtown oil field to improve well performance and inhibit calcium carbonate scaling. In the four treated wells, combined production response has averaged about 122 bopd, a 220% increase over production prior to acid treatment, and slightly higher than would be expected with conventional hydrochloric acid treatments. Post-treatment decline rates (3 to 16 months after treatment, depending on the date the well was treated) also have been measurably flatter than would be expected following conventional treatments.

Designing a water shut-off treatment for fractured, multi-layered sandstone

Leo A. Giangiacomo, P.E., Extreme Petroleum Technology, Inc., Casper, Wyoming

Bottom line: Thorough research and design increased the probability that a gel-polymer water shut-off treatment of a Tensleep producer at Teapot Dome would be successful. The treatment did not go as planned, even with real-time modifications to the treating procedure, based on Hall plot data. It did significantly reduce water production and operating expenses, but oil production was not increased. Additional treatments and thorough post-treatment analysis will help develop a set of experience-based guidelines tailored more specifically to this reservoir.

Using a new biological option to repair polymer-induced formation damage

Scott Bailey, Micro-Bac International, Inc., Round Rock, Texas, and Stan Atnipp, SLA, Inc., Midland, Texas

Bottom line: Treatments with biological stimulation fluids effectively repaired reservoir damage caused by polymer fluids in two wells. Production from a gas well in southwest Texas (which produced about 1,500 Mcf per month prior to being essentially shut-off by damage from copolymer fracturing fluids) initially increased to more than 14,000 Mcf per month after biological treatment. The well stabilized at about 3,000 Mcf per month six months later. A similar biological stimulation treatment to remove polymer damage in a West African oil well increased production more than 40%.

Log on to the World Oil website for full versions of these case studies: http://www.worldoil.com/magazine/MAGAZINE_DETAIL.asp?ART_ID=1383&MONTH_YEAR=May-2001