Pad Design Key For Marcellus Drilling

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1 APRIL 2011 The Better Business Publication Serving the Exploration / Drilling / Production Industry Pad Design Key For Marcellus Drilling By Robert Kuntz, James Ashbaugh, Benny Poedjono, John Zabaldano, Irina Shevchenko and Christopher Jamerson WARREN, PA. As in other shale and tight sands plays, drilling multiple horizontal wells from a single pad has become a common approach in the Marcellus Shale in response to the economic, real estate, water disposal, regulatory and other challenges operators face in developing the play. However, multiple-well pad drilling makes proper surveying and anti-collision monitoring imperative. Designing, surveying, preplanning and executing successful multiwell pad drilling operations require extensive collaboration between service providers and operators. Some of the main obstacles unique to the Marcellus Shale for all operators are the topographical features that limit surface hole locations, and water disposal and supply issues. In addition, since many of the roads in the region are restricted for heavy equipment and the area has limited pipeline capacity, drilling single wells poses significant challenges. For these reasons, many operators are moving to multiwell pad drilling. The stratigraphic nomenclature used for the rocks immediately above and below the Marcellus Shale varies from one area to another across the Appalachian Basin, but the Marcellus is a member of the Middle Devonian-aged Hamilton Group. Depths to the bottom of the shale range from 3,000 feet in eastern Ohio and the northwest corner of Pennsylvania to more than 9,000 feet in southern Pennsylvania and northern West Virginia. Pennsylvania General Energy holds a 439,000-acre lease position in the Marcellus Shale play. In certain parts of its leasehold, drill sites have to be constructed on top of mountains by leveling the ridges of the mountains to build well locations. Operators started drilling single wells in these areas (one well bore per site), but since have moved to pads with 14 or more wells on seven-foot centers at each site. Traditional Appalachian Basin oil and gas development has used well established conventional drilling technology and practices. Air drilling has been commonly used in the Appalachian region, which makes for a more difficult survey program while drilling, since hole control can become more challenging. Anti-Collision Management Since most conventional drilling projects used single vertical wells, surveying was not a priority. Before Marcellus Shale development took off, the vast majority of drilling operations in the Appalachian region utilized basic gyros and steering tools with marginal quality control on the surveys. However, horizontal multiwell pad drilling in the Marcellus play makes it critical for operators to have a good understanding of the proper surveying techniques and anti-collision management processes, as well as the differences in the gyro tools used. In the case of one Pennsylvania General Energy-operated multiwell pad design, the specific technical requirements and drilling restrictions included drilling the 17.5-inch surface hole blind on air and surveying it after drilling to a depth of ±1,000 feet. After drilling and surveying the 17.5-inch section, a inch water protection string was drilled with air hammers/air motors using gyro measurement-while-drilling tools to begin separation of wells on the pad. Deviations in rate of penetration are strongly affected by bit dull grading in this section, and trips are optimized using the information gained based on the penetration rate drop. Following the inch section, an 8.75-inch hole section was drilled on air as deep as feasibly possible. This particular multiwell Marcellus pad was drilled with a rotary steerable system and MWD. The pad was optimized to finish the directional work in the inch section and minimize the tangent sail angle during separation of the well bores. Rotary steerable tools and motors are susceptible to extreme drilling mechanics, including shock and stick-slip, in this laminated section. Drilling mechanics must be monitored closely to reduce the number of bit, MWD, motor and rotary steerable system failures. Roller reamers instead of stabilizers were used to reduce the effects of stick-slip during rotation to the kickoff point. While drilling the tangent section in the inch section, directional assemblies have experienced a dropping tendency of degrees per 100 feet in rotation while separating the well bore for anti-collision purposes and pad integrity. Proactive Approach To fully maximize the potential of the well site, a proactive approach was used to design the pad for a multiwell drilling program of seven pairs of wells that targeted the Marcellus as well as other formations. Pennsylvania General Energy recognized that developing a proper pad design would minimize the risks of well collision. The operator and contractor collaborated on the pad design to ensure that the well and financial objectives were met. Reproduced for Schlumberger with permission from The American Oil & Gas Reporter

2 FIGURE 1A Original Slot Map with Naming Conventions FIGURE 1B Original Pad Design with Well Bore Separation The contractor utilized its experience in the offshore drilling environment, where small-footprint, multiwell drilling programs are the norm and anti-collision procedures are integral to executing drilling projects. The proposed pad design included a detailed surveying program to prevent well collision. The operator reviewed and agreed to the design at each stage, and both parties agreed to use a new anti-collision risk management standard for well placement (specified in SPE ). The operator and contractor agreed on several criteria for the multiwell pad design. The definition of the slot grids, naming convention and bottom-hole locations optimized the corresponding surface locations to the assigned reservoir to meet production objectives for the first two phases. The first phase consisted of five Marcellus and two other well bores, and the second phase consisted of the remaining corresponding pairs. Defining a series of uncertainty areas for anti-collision purposes followed the surveying program at three true vertical depths: 1,000, 2,500 and 5,000 feet. North-seeking gyro-while-drilling measurements were used to a maximum inclination of 20 degrees until free of external magnetic interference from the nearby well bores. After that, MWD surveys were utilized to drill to total depth. Using existing drilling tools and procedures, a maximum well bore trajectory was defined from each of the slots to the center of its respective uncertainty area. The 17.5-inch section to a TVD of approximately 1,000 feet would be drilled with air without directional control. The inch section to a TVD of approximately 2,500 feet would be drilled with air and minimum directional control to prevent well bore collision at shallow depths. A maximum dogleg severity of 1.25 degrees/100 feet was used and the sail angle ranged from 13 to 20 degrees. A maximum dogleg severity of 10 degrees/100 feet with a minimum negative section was used to drill the 8.75-inch section to the TVD of the targeted reservoirs. The corresponding reservoir entry had to have 200 feet of separation distance from its pair going in the opposite direction. FIGURE 2A Vertical Section View of Original Pad Design FIGURE 2B Underneath View of Original Pad Design

3 TABLE 1 Reservoir Targets and Slot Options Well Name Reservoir Slot Options AA55-T Marcellus A,B,C,D AA56-T Marcellus A,B,C,D,E,F AA57-B Marcellus A,B,C,D,E,F,G AB77-B Other A,B,C,D,E,F,G AB78-T Marcellus B,C,D,E,F,G AB79-B Other C,D,E,F,or G AB70-T Marcellus E,F,G FIGURE 3 Original Pad Design with Corresponding Uncertainty Areas Anti-collision analysis of the trajectories was performed to ensure that the well bores were properly separated to minimize the risk of well collision, and then to optimize the trajectory of each bore hole to its respective reservoir target. Multiwell Pad Design After the initial pad planning meeting with the operator, the contractor received the first draft set of surface and target coordinates with the restrictions of the surface hole location and targets to be used on each slot. These data were plotted for the preliminary pad visualization. Targets and surface hole coordinates had been assigned so that none of the planned trajectories would cross one another at any depth, while maintaining an optimum volume of total footage drilled. Figure 1A shows the original slot map with naming conventions. The graphical size of each well bore corresponds to the size of the ellipsoid of uncertainty as defined in the survey program. Figure 1B shows the original pad design with the well bores separated from one another to their respective landing points. The vertical section view of the original pad design in Figure 2A shows optimal surface hole locations and target assignments to ensure that targets are hit in the two horizontal reservoirs. Figure 2B is the view from underneath the original pad design, showing landing points with the negative sections layout and no well bores crossing one another at any depth. For an accurate pad execution, intermediate (2,500 feet TVD) and deeper (5,000 feet TVD) uncertainty areas were added to the well paths. Based on well plans at those respective depths, these FIGURE 4A Final Slot Assignment FIGURE 4B Final Pad Design

4 SpecialReport: Drilling Technology FIGURE 5A Phase One and Two Final Well Trajectories FIGURE 5B Underneath View of Final Pad Design transitional uncertainty areas provided accountability for each well bore s actual trajectory deviation from the plan without creating anti-collision issues. Figure 3 shows the original pad design with corresponding uncertainty areas at depths of 2,500 feet TVD (red circles) and 5,000 feet TVD (yellow circles) to the landing points. Several pad design iterations were completed after the actual surveyed surface hole coordinates were received, and after another revision of the geological targets. ROBERT KUNTZ is the executive vice president at Pennsylvania General Energy Company LLC and oversees the geology and engineering department. He has 18 years of experience in the oil and gas industry. Kuntz holds a B.S. in geology from the University of Pittsburgh. JAMES ASHBAUGH is the senior engineer at Pennsylvania General Energy, where he oversees drilling and completions. He has 25 years of experience, with the last 10 years at PGE. Ashbaugh previously worked for Mobil as an operations engineer and for Pennsylvania State University as an instructor in geology and petroleum engineering. He holds a B.S. and an M.S. in petroleum and natural gas engineering from Penn State University. BENNY POEDJONO is the Schlumberger Drilling & Measurements surveying business development manager for North America and Latin America. He is involved in various efforts to achieve more accurate Because of the permitting requirements, the operator specified which targets should be drilled from which slot option locations. Table 1 outlines the slot assignment options based on Pennsylvania General Energy s reservoir requirements. The final pad design was created after the phase one surface holes were drilled and surveyed. Based on actual surface hole trajectories, all wells were replanned and anti-collision was reassessed. In addition, uncertainty areas were recalculated to meet the permitting requirements shown well bore placement real-time solutions, and to assess, reduce and safely manage the associated drilling risks. Poedjono has worked for various segments of Schlumberger for 28 years, with assignments in 22 countries. He holds an engineering degree from the Institute of Technology Bandung in Indonesia. JOHN ZABALDANO is the southeastern United States lead drilling engineer for PathFinder, a Schlumberger company, in Houston. His role focuses on the Haynesville and Eagle Ford shales. Zabaldano began his career as an offshore measurements field engineer in the Gulf of Mexico. Previously, he served as the southwestern U.S. lead drilling engineer, where his work focused on the Marcellus, Woodford and Permian. He holds a bachelor s in mechanical engineering from the Bagley College of Engineering at Mississippi State University. IRINA SHEVCHENKO is a drilling engineer working on North America land directional drilling projects in the in Table 1. Figure 4A shows the final slot assignment. The phase one drilling campaign is denoted in red after drilling the surface hole, while the well plans for the second phase are shown in blue. Again, the graphical size of each well bore corresponds to the size of the ellipsoid of uncertainty defined in the survey program. Figure 4B shows the final pad as designed to meet the approved permit specified by the operator. Figure 5A displays the final pad design Rockies basin for PathFinder, a Schlumberger company. She has nine years of drilling engineering experience on various assignments within Schlumberger Drilling & Measurements. Shevchenko provided technical support and drilling engineering studies for Drilling & Measurements projects onshore the United States and Russia, as well as in the Gulf of Mexico and offshore Canada. She holds a master s in petroleum engineering from Gubkin Russian State University of Oil and Gas in Moscow. CHRISTOPHER JAMERSON is a drilling engineer with Apache Corporation in Tulsa. Previously, he was drilling services manager for Schlumberger in the northeastern United States. Before assuming this role, he served as directional drilling coordinator and drilling engineer in Schlumberger s Mid- Continent region. Jamerson previously served as drilling service failure analyst at Weatherford-Dailey. He holds a B.S. in chemical engineering from Louisiana State University.

5 SpecialReport: Drilling Technology with the red trajectories denoting the phase one drilling campaign and the blue trajectories denoting the phase two drilling campaign. Figure 5B is the view from beneath the final pad design, showing landing points with the negative section layout of both the first and second drilling campaign phases. This Marcellus development area is still active, with drilling ongoing in the region. The contractor and operator have sought to improve the drilling program by introducing new techniques and fit-forpurpose technology. The concept and implementation of the pad design is a stepchange in how future drilling and reservoir development will occur in this area. For this particular project, the original prepared pad design was not optimal. The permitting and surveying restrictions placed on the original design required the surface locations to be modified. The experience gained from working offshore was applied to the region to reduce the risk of collision and its associated costs. For the operator, the ability to drill multiple horizontal wells on the same size of surface footprint as a single vertical well ensures the economic viability of its Appalachian drilling and development program. r

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