SPE Applying Hydraulic Fracture Diagnostics to Optimize Stimulations in the Woodford Shale

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1 SPE Applying Hydraulic Fracture Diagnostics to Optimize Stimulations in the Woodford Shale Travis Vulgamore, Pinnacle Technologies Tim Clawson, Antero Resources; Charles Pope, GMX Resources; Steve Wolhart; Mike Mayerhofer; Sean Machovoe; and Charlie Waltman, Pinnacle Technologies

2 Presentation Outline Background Woodford Shale Project Objective Project Set-up & Mapping Results Project 1 Project 2 Project 3 Summary & Conclusions

3 PETRA10/1/2049:48:4AM F t/in Black Shale Belt Arkoma Basin Cincinnati Arch Woodford Shale Diablo Platform Central Basin Platform Wichita Uplift Red River Uplift Bend Arch Arbuckle Anticline Hunton Arch Ozark Dome Arkoma Basin Ouachita Mts Ft. Worth Basin Black Warrior Basin Nashville Dome Appalachian Basin Increasing development in the Oklahoma/Arkansas area Only 22 completions in 2004 Marfa Basin Marathon Uplift Regan Uplift Val Verde Basin Kerr Basin Llano Uplift Gulf of Mexico Black Shale Belt Appalachian-Ouachita-Marathon Thrust Belt Devonian-Mississippian Shales Estimated 350 wells drilled in 2007 IP s up to 10 MMcf/d reported

4 Woodford Shale Type Log Thickness ranges from ft Main exploitation with long horizontal wells and large slickwater fracs Lateral lengths ft 10,000 30,000 bbls/stage 200k 500k lbs proppant/stage Barnett-style stimulations to maximize stimulated reservoir volume (SRV)

5 Woodford Mapping Project Early stages of development in the Woodford Objective measure hydraulic fracture geometry in order to optimize future well locations and completion/stimulation design Wellbore Trajectory Land the lateral high, low or midway within the Woodford? Transverse or longitudinal fracs being created? Payzone coverage (fracture height & lateral depth) Wellbore Coverage (along the lateral) Diversion & Staging Methods Perf balls, bridge plug, frac staging systems, etc. Well Spacing

6 Project 1 Layout Horizontal well mapped 3 stages MSM 1 ReFrac Observed Stage 1 and 2 from Obs. Well #1 Obs. Well #1 Carr Estates 13 Tool Array - 1H 2,700 2,700 2,600 2,600 2,800 Treatment Pettigrew 18 well Treatment well - 1H 3,500 3,500 2,600 2,600 1,500 1,500 Observed Stage 2 ReFrac and 3 from Obs. Well #1 and Obs Well #2 Stage 2 ReFrac and Stage 3 preformed approx 40 days following initial treatments 17-28K bbls Slickwater BPM Pettigrew Obs Well 19 #2 - Tool Array - 1H 70k-550k lbs 30/70-20/40 sand

7 Project 1 Plan View N57 E E Carr Estates Obs Well 13#1 - Tool Array - 1H Treatment Pettigrew 18 well Treatment well - 1H Stage 1 1 Stage 2 2 Stage 2 RF2 RF Stage 3 3 Three stages Complex growth wide network Data affected by Feature (fault or natural fracture system) Azimuth N57 o E Frac lengths ft Asymmetry Pettigrew 19 Tool Array Obs Well #2-1H

8 Project 1 Edge View Fracture Lengths Stage 1: 2500 Stage 2: 3300 Stage 3: 1400 Stage 4: 1200 Fracture Heights Stage 1: 250 Stage 2: 280 Stage 3: 280 Stage 4: 280 Well contained

9

10 Project 2 Layout Horizontal well mapped 6 stages MSM 2 different Obs wells Observed Stage 1 from Obs. Well #1 Observed Stage 2-6 from Obs. Well #2 9-16K bbls Slickwater BPM 70k-235k lbs 30/70-20/40 sand

11 Project 2 Plan View Six stages Azimuth N60 o E to N110 o E Half-lengths 400 ft to 1300 ft Data seem more symmetrical about the wellbore (than previous job) Data clustering at the end of stage 5 may indicate intersection with fault or natural fracture system

12 Project 2 Side View Fracture Lengths Stage 1: 1350 Stage 2: 800 Stage 3: 990 Stage 4: 400 Stage 5: 530 (1600 ) Stage 6: 800 (1400 ) Fracture Heights Stage 1: 390 Stage 2: 110 Stage 3: 170 Stage 4: 140 Stage 5: 130 Stage 6: 180 Well contained

13 Project 3 Layout Horizontal well mapped 5 stages MSM 4300 ft to stage 5 Observed Stage 1-5 from Obs. Well # K bbls Slickwater BPM 100-mesh sand for diversion 70k-370k lbs 30/70-20/40 sand

14 Project 3 Map View 5 intervals Data affected by Fault Azimuth N60 o E Fracture lengths 1,300 4,300 ft Asymmetry

15 Project 3 Side View Fracture Lengths Stage 1: 2130 Stage 2: 4360 Stage 3: 3400 Stage 4: Stage 5: Fracture Heights Stage 1: 350 Stage 2: 500 Stage 3: 250 Stage 4: Stage 5: Caney Shale Mayes Sycamore Woodford Shale Hunton Viola Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 MS Tools Looking West

16 Project 3 Magnitude Vs. Distance Plot

17 Summary Mapping completed in three wells in the Woodford Shale Observation distances similar to the Barnett (core area) Dominant fracture azimuth NW-SE Project 1 N57 o E Avg. Project 2 N60 o E Avg. Project 3 N60 o E Avg. Indications of complexity MS data show secondary azimuths Possible fracture network Interaction with faults

18 Summary Project 1 fracture lengths ranged from 2000 ft 2500 ft Data intersection with fault near toe of obs well Data concentrated within the targeted Woodford Asymmetrical fracture development Project 2 - fracture lengths ranged from 400 ft 1350 ft Azimuth on stages 4-6 affected by formation feature Project 3 - fracture lengths ranged from 2100 ft 4300 ft Indication of fault near Obs well Heel Treatments tend to move in the direction of the fault 100-mesh was used to divert fracture treatments

19 Summary Frac height was contained on most of the stages SRVs can be similar to the Barnett Mapping indicates that formation faults or features can effect the created fracture geometry Reviewing fracture staging strategy Diversion can help if the fault is relatively small Development continues in this field Using fracture geometry from mapping to assist with locating wells

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