Natural Fractures; Their Role in Resource Plays - Tight Oil From Shale Plays World Congress 2011

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Natural Fractures; Their Role in Resource Plays - Tight Oil From Shale Plays World Congress 2011
Tight Oil From Shale Plays
             World Congress 2011
      January 31st & February 1st , 2011 Denver, CO

      Natural Fractures;
Their Role in Resource Plays
                         By
                     Hutch Jobe
                     SM Energy
Natural Fractures; Their Role in Resource Plays - Tight Oil From Shale Plays World Congress 2011
Evolution of the Resource Play
1970’s                              1990’s                                    2010’s
Tight Gas Sands (TGS)               CBM become vogue
Confined to deep basin areas        Realization of sorbed & absorbed gas      Resource play targets not litho-
Recognize no distinct LKG           Recognition of coal composition           dependent
Recognized perm as a driver         Fractures and cavitation in coals
Recognized pervasive Sw             Dewatering concept                        Brittleness, TOC, natural fractures are key
Unconventional pay concept born     Pattern & high density drilling
                                    Antrim & Barnett Shale play emerge        Designer frac’s optimize induced fractures
                                    Image logging is greatly enhanced
                                                                              Source and carrier bed relationships

                                                                              Sequence stratigraphic framework

1980’s                              2000’s                                    Aggregate development drilling

TGS plays expanded/evolved          Shale Resource Plays explode              Surface array/Buried array micro-seismic
Recognition of over pressuring      Source rocks become reservoirs
Basin Center Gas concept            Horizontal drilling becomes an art form
Tight Gas tax credits               Horizontal logging and frac’ing evolve    Simal-fracs and Zipper-fracs
Improvements in 2D and 3D           Multi-stage completions
Role of natural fractures emerges   3D is a “must”                            Go horizontal in produced TGS fields
                                    Micro-Seismic becomes very popular
                                    Natural fractures are key to perm         Vertical drilling phases out to horizontal

                                                                              Shale oil and oil resource play focus
Natural Fractures; Their Role in Resource Plays - Tight Oil From Shale Plays World Congress 2011
Misconceptions about Resource Plays

    They are all shales; you stimulate them all the same;
stimulation of the matrix makes the play; and they should all
                     produce the same.

   The prospective Resource Play is an unconventional
                       reservoir.

  Since nothing shows up on seismic, the reservoir is not
   fractured; we drill in “quiet areas” where no faulting is
                            present.
Natural Fractures; Their Role in Resource Plays - Tight Oil From Shale Plays World Congress 2011
What is the definition of a Shale?
Grain Size and Bedding are the controlling factors defining a Shale

 Bedding Thickness

                        .0625 mm         .0039 mm           < .0039 mm
                        (1/16 inch)        (1/256 inch)

                                             Grain Size
                               (Modified Rose & Assoc.; from Levine, 2003)
Natural Fractures; Their Role in Resource Plays - Tight Oil From Shale Plays World Congress 2011
Thinly Laminated Shales Interbedded with
    Siliceous Layers; Woodford Shale
Natural Fractures; Their Role in Resource Plays - Tight Oil From Shale Plays World Congress 2011
Lithologies of High Profile Resource Plays

Closest to a Shale Closest to a Limestone Closest to a Siltstone Closest to a Dolomite

   Barnett               Eagle Ford        Haynesville (“stack”)      Bakken
  Woodford               Niobrara               Montney              Three Forks
 Fayetteville                                   Mancos               Collingwood
  Marcellus                                    Bossier??             (Utica)
   SWS??                                        SWS??
  Muskwa
 Conasauga
   Huron
 New Albany
   Antrim
  Bossier??
                             Closest to a Clastic/Congl

                                   Granite Wash
Natural Fractures; Their Role in Resource Plays - Tight Oil From Shale Plays World Congress 2011
A Statement from Experience

 All reservoirs have some component of
natural fracturing which contributes to the
       permeability within the rock
Natural Fractures; Their Role in Resource Plays - Tight Oil From Shale Plays World Congress 2011
What is a Natural Fracture?
---”discontinuity caused by brittle failure” (Narr etal, 2006); a compromise of the
    structural fabric in rock caused by stress (tectonic, HC, and impact generated)

---a fracture can be a crack, joint, fault, deformation band or vein, and
   predominantly perpendicular to bedding

---a fracture is a function of scale; some may have displacement, some may have
   have shear, but all impact the ability for fluid flow; transmissibility; permeability
Natural Fractures; Their Role in Resource Plays - Tight Oil From Shale Plays World Congress 2011
The Role of Fracturing on Permeability Upon
         Compaction in Sandstones

Fracturing therefore is beneficial for flow in Tight Gas Sands; natural and induced
Natural Fractures; Their Role in Resource Plays - Tight Oil From Shale Plays World Congress 2011
How Do We Describe Natural Fracturing?

Via Fracture Intensity>>>length, height, density, spacing, aperture,
                             patterns, bed thickness, rock composition;
                             relationships with curvature, structure, dip
                             and faulting; it’s 3-dimensional

          (Hennings, 2006)

       Understand the difference between closed/healed fractures
                      versus cemented fractures

        Closed fractures on a surface do not imply they are closed
             throughout the volume, cemented fractures can
Key Drivers to Resource Play Performance

Know the Structural History; Understand Natural Fractures

   Know the Rock; Sequence Stratigraphic Framework

        Brittleness: Understand Rock Properties

    TOC Content; % Percent by Weight, Kerogen Type
           (richness), and Maturity ( Ro--heat)

 3D Seismic and Micro-seismic; Fault Geometries, Fault
                   Magnitudes, SRV

                 Stimulation Procedures
Structural Setting Determines Natural
                Fracture Geometry
   Drape over                                                Enhancement via
structural highs                                             structural closure

                      Dip-slip & Strike-slip
                   faulting generate fracturing

   *Natural fractures can help
  determine productive limits
                                           (Modified Rose & Assoc.; Steward, 2009)
associated with Resource Plays*
Silo Field Isocum Map: Fractured Niobrara
           0 to 50 MBO                 100 to 150 MBO                 >200 MBO
                                                         12 wells have produced between
           50 to 100 MBO               150 to 200 MBO    200 MBO to 481 MBO

*Data comes from 114 producers; Swanson mean of 74 MBO; range is .3 to 481 MBO*
Silo Field Isocum Map: Fractured Niobrara
           0 to 50 MBO                 100 to 150 MBO                 >200 MBO
                                                         12 wells have produced between
           50 to 100 MBO               150 to 200 MBO    200 MBO to 481 MBO

*Data comes from 114 producers; Swanson mean of 74 MBO; range is .3 to 481 MBO*
Sequence Stratigraphic Framework Helps
      Define the Resource Target

                Off lap sands and
                washes

   (modified)

 Key attributes: position of the margin, geometry of margin, angle of slope,
 fauna diversity optimizes TOC, water depth governs TOC, water depth
 governs facies
Rock Properties

---Brittleness; the ability for rock to fracture
naturally or fracture via stimulation; it can be
proportional to permeability and stimulation
enhancement

---Brittleness and elasticity is a function of
lithology/composition

---Siliceous and dolomitic rocks tend to be
more brittle than limestones and clay rich
rocks; clay in rock correlates to more
ductility
Thermal Maturation Windows for
    Various Resource Plays
        Eagle Ford
        Marcellus

               TOC %   (modified: Bustin etal, 2008)
Kerogen Types and Their Link to Ro,
Tmax, HC Phase, and HC Efficiency

     Lacustrine,   Marine,                   Terrestrial,
     Oil Prone     Oil Prone                 Gas Prone

                               (After Rose & Assoc,; Modified Jarvie, 2009)
In Source Rock Resource Plays; Understanding Relationships Between
Fracturing Caused by Hydrocarbon Generation, Maturation, and Kerogen
                       Type Can be Important

                                                  (unpublished, MacKay, 2010)

 Thermal maturation of organic material can affect fluid type in terms of molecule
size and compressibility (this can influence the areal extent of the pressure event)
Micro-Seismic has Evolved into an Important
    Part of Resource Play Development
  ---Down-hole monitor approach: initial application; monitor well can be
  expensive or difficult to position; data is usually good from a vertical aspect;
  fair to good lateral data

  ---Surface array approach: gaining popularity; no monitor well is needed;
  reasonable expense; vertical resolution not as good as down hole; lateral data
  is good; additional permitting and preparation

  ---Buried array approach: gaining popularity; no monitor well is needed; fairly
  expensive but can be used multiple times; vertical resolution similar to the
  surface array; lateral data is good; usually covers the largest area; additional
  permitting and preparation

                                                 (Bennett etal Oilfield Review, 2006)
Depiction of Surface Array Design
---Vertical well case
                                   ---Horizontal well case
---Each radius approx. equal to
                                   ---Survey has an ellipse shape due
   depth of target
                                      to lateral wellbore length
---Multiple geophones per radius
                                   ---Multiple geophones per radius

(Duncan & Laking, 2006)
Depiction of Buried Array Design
                   ---Spacing of stations is a func. of
                      budget, development plan,
                      signal to noise, etc.
                   ---Depth of stations can vary but
                      100’ to 300’ foot is common
                   ---Multiple geophones are hung in
                      each station

                                       (MicroSeismic, 2010)
Map View & Cross Profile of Micro-Seismic Data

                    Gaps in events suggest         Varying vertical growth
                    poor stimulation coverage;     of events suggests fracs
                    and the possible need for      might not be confined to
                    more stages                    target interval

                                         (Modified; MicroSeismic Website, 2010)
Surface Array Micro-Seismic Application

               **Damage zones associated with faulting
               can be detrimental during stimulation**
Map View of Events Associated with “Relax-a-Frac” Periods
Cross-Sectional View of Total Events During Stage

Zone of
Interest
Final Distribution of Events Throughout Lateral
Learning's and Value of Micro Seismic
---Helps confirm in-zone stimulation
---Helps define lateral extents of stimulation
---Can calculate a stimulated rock volume (SRV)
---Identify fracture orientation
---Identify faulting
---Identify “thief” zones during stimulation
---Confirm spacing of frac stages along the length of the lateral
---Confirm conductivity intensity of frac fluids and design
---Helps identify well spacing, unstim. SRV, and potential recompl.

                                                           Potential Re-fracs
                                                           or new drill areas

                                                     (Pinnacle Technologies Website, 2010)
How Can Geo-Science Effect Stimulation Design?

---Accurate lithology/composition determines most effective frac design:
               a.) high clay content>>>more gel design
               b.) low clay content>>>more slick-water design
               c.) more brittle rock might not need as high a rate
               d.) elasticity of rock might give insight on pump procedures
---Natural fracture and fault knowledge effects:
               a.) well placement
               b.) stage periodicity along lateral (length and spacing)
               c.) propant size, volume, and timing
               d.) SRV aerial size and distribution
---3D Seismic and Micro-Seismic gives confidence to:
               a.) did we stay in zone
               b.) are we too close to a fault
               c.) did we land in the correct spot
               d.) does the target extend this far or in this direction
---Understanding the rocks direct us to which resource plays we should
   pursue and which one’s we should avoid
In the past, we were concerned with the trap
at the end of a hydrocarbon migration event.

Now we are concerned with the pathway of
     the entire migration process.
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