Table of Contents

Vol. 7, No. 3
3rd Quarter 2001


Solutions From the Field

 

Modern Salt Tectonics

July 26, 2000 (Jackson, MS) by Eastern Gulf Region

BOTTOM LINE

Recent developments in understanding of salt tectonics will facilitate oil and gas exploration and development in the Eastern Gulf Region.

PROBLEM ADDRESSED

Salt deformation plays a large role in the spatial and temporal distribution of reservoirs as well as hydrocarbon generation, migration, and entrapment. Breakthroughs in modern evaluation of salt tectonics include two basic concepts. First, differential loading drives salt tectonics and the process of diapirism is therefore more passive than had been believed. Second, lateral flow is locally important. A major component of salt tectonics is development of salt sheets, tongues, and allochthonous nappes. Passive diapirism, differential loading, extension, contraction, strike-slip faulting, and near-diapir faulting may trigger salt deformation.


Developments in Well Stimulation and Slim-Hole Technology

December 5, 2000 (Lafayette, LA) by Central Gulf Region

BOTTOM LINE

Coiled tubing has several distinct advantages for well fishing operations. It offers additional tensile strength above that of braided line and the ability to use heavier tools is helpful in most applications. The capacity to circulate fluid through the system can also be helpful in some situations. Coiled tubing drilling operations are also increasing, with cost savings of 50% or more reported. With both fishing and drilling operations, operational know how is required to reap maximum benefit. For selected wells, high-energy gas fracturing technologies provide a low cost alternative to hydraulic fracturing.

PROBLEM ADDRESSED

Applications of coiled tubing in both drilling and well maintenance are expanding, but the nature of the technology makes it critical that producers apply prior lessons learned. These insights come only from those who have been out there doing it. With mature, often marginal, wells, producers are looking for low cost yet effective stimulation treatments to improve well productivity. High-energy gas fracturing technologies being developed are one alternative, but producers must be exposed to theory/field performance data to develop the confidence to apply this evolving technology.

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Reservoir Characterization of the Upper Devonian Elk Sands in the Appalachian Basin

September 7, 2000 (Pittsburgh, PA) by Appalachian Region

BOTTOM LINE

Successful gas production established from Elk sands at Council Run field in Center County, Pennsylvania, has great potential for being duplicated using modern technologies from Elk-sand-equivalent facies in similar Appalachian Basin settings, several of which have been tested in the past and rejected based on the technologies then available for establishing production.

PROBLEM ADDRESSED

Lack of detailed knowledge of the factors that are responsible for production at the Council Run gas field, coupled with a lack of familiarity with depositionally-equivalent rocks in other Appalachian Basin locations, has led to under-exploration for similar reservoirs. This workshop addressed both aspects of the problem, reviewing the Council Run field in great detail and documenting promising historical exploration efforts and regional studies performed on the equivalent rocks.

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Hunton Play in Oklahoma (Including Northeast Texas Panhandle)

October 17, 2000 (Norman, OK) by South Midcontinent Region and Oklahoma Geological Survey

BOTTOM LINE

The Hunton Play, in spite of many decades of production from numerous Oklahoma basins, has remained too poorly understood to undertake confident exploration programs under adverse conditions, such as in the deep Anadarko Basin or in unfamiliar areas, such as the Carney play on the Cherokee Platform.

PROBLEM ADDRESSED

The stratigraphic, paleogeographic and structural context of a number of Hunton producing fields is compiled in a comprehensive regional study that builds on work done in the past, and adds the new dimensions of sequence stratigraphy to better understand and predict the occurrence of Hunton reservoirs.

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Petroleum Potential of the Greybull Sandstone in Montana

October 24-25, 2000 (Billings, MT) co-sponsored by Rocky Mountain Region and Montana Bureau of Mines and Geology

BOTTOM LINE

The Greybull Sandstone on the Northern Cheyenne and Crow Indian reservations in Montana contains good drilling leads.

PROBLEM ADDRESSED

Leads in the Greybull Sandstone (upper Kootenai Formation) on the Northern Cheyenne and Crow Indian Reservations of south-central Montana have been identified where the east-west oriented valley fill channels cross anticlinal structures. Surface geochemical testing has confirmed one of these leads. Oil-stained outcrops of the Greybull Sandstone near the Soap Creek Oil Field indicate that oil migrating through the Greybull did accumulate in favorable structural positions.

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Wellbore Management

March 22, 2001 (Midland, TX) by Texas Region

BOTTOM LINE

Operators must focus their efforts on wellbore management, paying attention to the total wellbore system (reservoir, downhole and surface equipment) and involving all relevant staff in a team effort to realize the significant reductions in well failures cited for examples discussed during the workshop. Field data must be gathered, thoroughly analyzed, remedial work done, and post-work performance evaluated. Accurate and complete records must be maintained. Doing this and learning from field experience, failure reductions to only a fraction of prior rates can be cost effectively achieved.

PROBLEM ADDRESSED

Wellbore maintenance is an important component of lifting cost. Poorly managed wellbore maintenance leads to high failure frequencies, which can cause lifting cost to spiral out of control. There is a body of knowledge on procedures, approaches and actions that will not only control current costs but also help retain wellbores long term.

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September 2001 Case Studies

Solid propellants provide cost-effective stimulation in marginal wells

Dr. Richard A. Schmidt, J Integral Engineering, Inc., West Linn, Ore [jintegral@thegasgun.com], and Wilford M. Ashley, Ashley Oil, Inc., Casey, Ill.

Bottom line: Many oil and gas wells can be stimulated effectively with a progressively burning, solid propellant that produces multiple fractures. Ashley Oil, Inc., treated five marginal Trenton limestone oil wells in Illinois, recovering about 10,000 bbl of incremental oil to date, with production still averaging 300% of pre-treatment rates a year or more later. Treatments typically paid out in two weeks or less. In another application, Royal Drilling and Producing experienced sustained injectivity improvements from injection well treatments.

Well-based pump-off controller reduces electricity costs

Doug Torr, CamWest, Inc., McKinney, Texas [dtorr@camwestlp.com]; and Dan Mooney, Aurion Technologies, Inc. Dallas, Texas [danmo@auriontech.com]

Bottom line: CamWest, Inc., an independent based in Denver, Colorado, and McKinney, Texas, operates more than 120 oil wells in Lander, Wyoming. These wells are located in a remote region. CamWest installed web-based pump-off controllers. Electricity costs were reduced by about 15%, and the operator fully expects to realize additional value from production optimization, reduced well servicing costs and quicker response times.

Producing partial waterdrive gas reservoir at high rate maximizes profitability

Dana Westphal, Ocean Energy, Lafayette, La.; and John McMullan, Louisiana State University, Baton Rouge, La., [jmcmul2@lsu.edu]

Bottom line: Ocean Energy achieved a 70% recovery and maximized profitability from a downdip waterdrive gas completion by aggressively producing the zone at high rates. Simulation confirmed that high production rates were not detrimental to recovery in this partial waterdrive gas reservoir, allowing accelerated project pay-out. Completing the entire interval also yielded the highest ultimate recovery. The reservoir was efficiently depleted from a single wellbore in spite of its downdip location.

Small-scale 3-D seismic shoot adds new oil reserves

Dale Helpingstine [dale@shakespeare-oil.com]; and Don Williams, Shakespeare Oil Company; Phil Caserotti [pcaserotti@juno.com]; Geophysical and Geological Consultant; and Steve Gustison [gustison@isgs.uiuc.edu], Midwest Region PTTC

Bottom line: Shakespeare Oil redefined the structural interpretation of the Devonian Geneva dolomite reservoir in Tonti field, Marion County, Ill., using data from a 0.375-sq-mi 3-D seismic survey, which cost only $32,000. The survey indicated that the central well, completed in 1940, was not on the true structural high.

A new well, drilled in March 2000, on the true structural high, came in 12 ft high to the old central well. Initial potential was 58 bopd and no water. In June 2001, production was still averaging 10 bopd and 40 bwpd. Incremental attic oil reserves developed by using the limited-scale 3-D seismic survey are estimated at 50,000 to 60,000 bbl.

Log on to the World Oil website for full versions of these case studies: http://www.worldoil.com/magazine/MAGAZINE_DETAIL.asp?ART_ID=1546&MONTH_YEAR=Sep-2001


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