Shale Field Development Workflow. Ron Dusterhoft

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1 Shale Field Development Workflow Ron Dusterhoft

2 The Unique Challenges of Shale NO TWO SHALE PLAYS ARE ALIKE 2

3 Reservoir-Focused Completion-Driven Design Maximize Stimulation Potential Each Shale will have unique attributes to exploit: Total organic content Maturity Mechanical properties, mineralogy Local stresses Natural fractures Fracture containment Pore pressure Reservoir fluid Effective porosity 3

4 Decades of Technology Application Quantify Construct Complete Analyze Gas Rate Sim Gas Rate Oil Rate Oil rate Sim 4

5 5

6 Combined Workflow: Shale Field Development 6

7 Petroleum Systems Analysis Workflows (CPM and Tech Teams) Petrophysical Analysis Basin Modeling Basin Screening Completion Design Frac Design Geomechanics Seismic Anisotropy Pre Stack Mech Properties Earth Modeling Software Permedia, Mpath PRA BasinMod Drillworks DSD Geology GGX Prizm Insite, Drillworks ShaleLOG DSD Petrophysics DSD Geophysics Landmark Third Party DSD Earth Modeling Data Multiple 3 rd Party Multiple Internal Public Sources Newly Acquired Data Newly Acquired Data Database Insite Insite 7

8 Drilling and Completion Optimization Workflows Completion Design Frac Design Geomechanics Seismic to Stim Collaborative Well Planning For Shale Petrophysics Geomechanics Micro-facies Frac Monitoring DFIT History Match Production Studies Software FracPro, Gohfer, Complex Frac Mod QuikLook, Nexus Drillworks, DMS DSD Well Planning Compas GDX Prizm Drillworks Laser Strat DSD Stimulation PDAT FracPro Gohfer QuikLook, Nexus FracPro, Gohfer, CFM Pinvision, DSD DMS Data DSD gen VDB file Multiple 3 rd Party Public Sources Newly Acquired Data Insite Third Party Sources Database EDM, DMS EDM EDM, Insite EDM, Insite EDM, DMS 8

9 Reservoir Simulator for Unconventional Assets Locally refined grid structure enables multi well simulation Undefined gridding capability Multi-component porosity and permeability capabilities Natural fractures Matrix perm Kerogen perm Micro fracture perm Our Goal is to create a shale specific reservoir simulator with a simple, interactive user interface 9

10 Local Grid Refinement and Complex Gridding Capabilities Step 1 Step 2 or 3 Simple 3-D Fracture Network Calibrated to Match Surface Area of Mapped Fractures Experimental Gridding Code to Grid Complex Fractures Directly as Mapped Using Microseismic 10

11 Fracture Design and Well Optimization for Horizontal Wells Integration of fracture simulator, reservoir simulator and uncertainty Fracture planes can be defined in 3D space Initially simpler parallel fracture systems to be considered 11

12 Complex Fracture Model: From Microseismic Mapping to Statistical Design Tool New Complex Fracture Model maps fracture planes using microseismic data Statistical tools create complex grid defining natural fracture patterns Statistically equivalent fracture systems can be easily created and incorporated into well planing 12

13 Incorporating Frac Designs into Full Field Planning 13

14 14

15 Reservoir-Focused Completion-Driven Design Maximize Asset Performance with full field focus and reservoir understanding Sweet spot identification Target vertical layers Target regions Well design Lateral length Fracture spacing Well spacing Frac treatment design Fluid Injection rate Proppant volume 15

16 Thank You. Questions? 16

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