Unconventional Gas Modelling using CMGs Reservoir Simulation Technology

Jim Erdle VP/USA & LA Houston Perth - December 6, 2011

Incorporates slides from Matt Mavors 2004 CMG Technical Symposium Presentation

Unconventional Gas Resources

Tight Gas CBM Shale Gas Natural Gas Hydrates

GEM Uses
Secondary Recovery
Miscible gas injection (CO2, N2, Sour Gas) Gas condensate production with cycling GOGD using in naturally fractured reservoirs VAPEX heavy oil recovery (isothermal and thermal)

CBM & Shale Gas Production

Multi-component desorption/adsorption, diffusion & coal swelling/shrinkage

CO2 & Acid Gas Sequestration

Oil reservoirs, Saline aquifers & Coal beds Geochemical reactions

Asphaltene modelling during primary and secondary recovery

Precipitation, Flocculation, Deposition & Plugging

Naturally Fractured Reservoirs

Dual Porosity (DP), Dual Permeability (DK), SubDomain (SD), MINC & SD-DK

Hydraulically fractured wells with non-Darcy flow & Compaction

Single Plane Fracs (Vertical & Horizontal Wells) Complex Fracture Networks (Shale Gas Wells)

Coupled Surface Facilities Coupled Geomechanics

GEOMECH GAP & FORGAS

GEM Uses Shale Gas

Secondary Recovery
Miscible gas injection (CO2, N2, Sour Gas) Gas condensate production with cycling GOGD using in naturally fractured reservoirs VAPEX heavy oil recovery (isothermal and thermal)

CBM & Shale Gas Production

Multi-component desorption/adsorption, diffusion & coal swelling/shrinkage

CO2 & Acid Gas Sequestration

Oil reservoirs, Saline aquifers & Coal beds Geochemical reactions

Asphaltene modelling during primary and secondary recovery

Precipitation, Flocculation, Deposition & Plugging

Naturally Fractured Reservoirs

Dual Porosity (DP), Dual Permeability (DK), SubDomain (SD), MINC & SD-DK

Hydraulically fractured wells with non-Darcy flow & Compaction

Single Plane Fracs (Vertical & Horizontal Wells) Complex Fracture Networks (Shale Gas Wells)

Coupled Surface Facilities Coupled Geomechanics

GEOMECH GAP & FORGAS

Shale Gas
Natural Gas stored in organic rich rocks:

Shale Shaly Siltstone

Shaly Sandstone

Carbonaceous Shale

A dark-gray or black shale with significant carbon in the form of small disseminated particles or flakes; it is commonly associated with coal seams.

(Bates & Jackson: Glossary of Geology, 1980)

Shale Gas Flow Schematic

Wellbore Induced Fracture Fracture Porosity Macro-Porosity Micro-Porosity

Darcy Flow &

Sorption Diffusion

Non Darcy &

Darcy Flow

Pipe Flow

Barnett Shale Location

Barnett Horz vs Vert Well Productivity

Horz Well BHFP HM with GEM

Horz Well Water HM with GEM

Old Way of Modelling Horizontal Shale Gas Wells

Cartesian LGR to represent Frac corridors

Fracture Geometry Scenarios

New way to Model Single Plane Fracs in Vertical Wells

2008 BUILDER HF Wizard Creates LS-LR grids for accurate
representation of propped fractures but with reasonable run times

Automatically calculates
Forchheimer Equation Beta Correction and scales proppant absolute permeability

Results in excellent match to finegrid reference models and analytical solutions for infinite and finite conductivity fractures

New way to Model Multiple Single Plane Fracs in Horizontal Wells

2009 BUILDER HF Wizard Extends 2008 capabilities to multiple single plane propped fractures in horizontal wells

New Way of Modelling Horizontal Shale Gas Wells

CMGs LS-LR-DK Tartan Grid

for

Modelling Complex fracture networks

CMGs LS-LR-DK Tartan Grid

LS-LR matrix gridblocks used to explicitly represent main propped fracture network in the SRVs LS-LR-DK gridblocks used to account for different natural fracture spacings/intensities in the SVR using standard DK fracture element scaling Unrefined DK gridblocks used outside of SVR to represent unpropped (or closed) natural fractures

Validation of LS-LR-DK Grid Concept

Multimillon cell Vertical & Horizontal well single porosity reference models
Complex Fracture Networks modelled Explicitly

Coarsened models evaluated

Dual Permeability (DK) and MINC without refinement Logarithmically-Spaced Locally-Refined grids in SRVs plus Dual Permeability (LS-LR-DK) Non-Darcy flow Forchheimer number permeability correction Extensions of LS-LR-DK approach tested Model multi-stage horizontal well re-stimulation Model stress dependent fracture permeability

LS-LR-DK vs Ref Model (incl. Non-Darcy Flow)

Very Good Agreement at a Fraction of the Run Time/Model Size

Re-stimulation of Horizontal Well

Green - 0.0001 md Shale Yellow 0.001 md-ft Fracture Conduit Orange - 2.00 md-ft Fracture Conduit Red - 20 md-ft Propped Fracture Conduit Black - Horizontal Well Path

Initially Three Stages Stimulated

After Two Years Four More Stages Stimulated

Re-stimulation of Horizontal Well

Very Good Agreement at a Fraction of the Run Time/Model Size

Stress-Dependent Fracture Permeability

Unpropped Fracture Compaction Table
1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 1000

Conductivity Multiplier

Propped Fracture Compaction Table

1500 2000 2500 3000 3500 4000

Conductivity Multiplier

Pressure (psi)

1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 1000

1500

2000

2500

3000

3500

4000

Pressure (psi)

Stress Dependent Fracture Permeability

Very Good Agreement at a Fraction of the Run Time/Model Size

Complex Fracture Network Creation

2010 BUILDER Wizard

Can create SRV from

microseismic data or from user selection

Creates LS-LR-DK grid

within SVR

Shale Gas Modelling Workflow Demo from Microseismic to Simulation

Shale Gas History Match - Case Study

Post-processor Pre-processor Simulator

Frac Stages/MS Data

Rigorous Representation of Physics

Sensitivity Analysis History Matching Optimization Uncertainty Assessment

Importing Microseismic Data into BUILDER

Microseismic events can be viewed in 2D and 3D Each stage shown in a different color

Importing Microseismic Data into BUILDER

Ability to create SRV using the MS data in an existing geomodel Else, grid can be created automatically around the MS events: User is able to rotate and resize grid area Easy to align grid along wells and fractures

Defining SRVs by Frac Stage in BUILDER

Stimulated Reservoir Volumes (SRV) can be added by Frac Stage through hydraulic fracture wizard
LS-LR Grid automatically created and fracture properties defined

Noise can be filtered from microseismic data by adding conditions when creating SRV
Connect disconnected blocks so there is a path to well from each stimulated block Number of Events Magnitude Confidence

3D Stimulated Reservoir Volume

Pressure Profile in SRV

Fracture width & property pseudoization gives accurate results with reasonable run times by using fewer grid blocks

Pressure Transients around The HFs

Logarithmic spaced grids around the fractures captures the pressure transients around the HFs

Base Case Results

Water Production
10,000 120 100 8,000
Water Rate SC - Daily (m3/day)

Initial model with assumed values does not match historical production data
Too much gas produced Not enough water produced

Cumulative Water SC (m3)

80 6,000 60 4,000 40

2,000 20

0 2009-4 2009-7 2009-10 2010-1 Time (Date)

Cumulative Water SC - Simulation Cumulative Water SC - Production History Water Rate SC - Simulation Water Rate SC - Production History

Gas Production
1.00e+8 8.00e+5

Cumulative Gas SC (m3)

8.00e+7

6.00e+5

6.00e+7 4.00e+5 4.00e+7 2.00e+5

2.00e+7

0.00e+0 2009-4 2009-7 2009-10 Time (Date) 2010-1

0.00e+0

Cumulative Gas SC - Simulation Cumulative Gas SC - Production History Gas Rate SC - Simulation Gas Rate SC - Production History

Gas Rate SC - Daily (m3/day)

Sensitivity Analysis using CMOST

Reservoir parameter uncertainty
Fracture Permeability Fracture Width Pressure Dependent Permeability of Fracture (CROCKTAB) Langmuir Adsorption parameters Diffusivity Initial Water Saturation in Fractures (to model water from the HF fluid)

Sensitivity Analysis using CMOST

History Match Error Reduction

Objective Function Error Reduced from 55% to 1.4%

History Match Final Results

History match error reduced from 55% to 1.4%
Final Gas Rate Match error = 0.70% Final Water Rate Match error = 2.13%

Total Calendar Time to complete HM = 25 hrs

Man Time = 10 hrs Computing Time = 15 hrs
using 2 CPUs/Job and running 8 concurrent Jobs
Langmuir Maximum Initial Water Rock Fracture Fracture Fracture Diffusivity Adsorption Adsorption Saturation Parameter Compaction Width Permeability Conductivity 2 in Propped (cm /s) Constant Mass (mD) (mD-m) (m) Table Shift Fractures (1/kPa) (gmol/kg) Initial Final 1.0000 1.0833 0.0006 0.0006 7.20E-05 6.00E-05 0.055 0.020 0.00200 0.00233 30000 9500 60.0 22.1 0.20 0.45

History Match Final Results

Gas Production
1.00e+8 6.00e+5 12,000

Water Production
140

5.00e+5 8.00e+7
Cumulative Water SC (m3) Gas Rate SC - Daily (m3/day)

10,000

120

100 8,000 80 6,000 60 4,000 40

4.00e+5 6.00e+7 3.00e+5 4.00e+7 2.00e+5

2.00e+7 1.00e+5 2,000 20

0.00e+0 2009-4 2009-7 2009-10 2010-1 Time (Date)

0.00e+0

0 2009-4 2009-7 2009-10 2010-1 Time (Date)

Cumulative Gas SC - Production History Cumulative Gas SC - Simulation Gas Rate SC - Production History Gas Rate SC - Simulation

Cumulative Water SC - Production History Cumulative Water SC - Simulation Water Rate SC - Production History Water Rate SC - Simulation

Water Rate SC - Daily (m3/day)

Cumulative Gas SC (m3)

Thank You!

Any Questions?

IMEX Uses
Primary recovery
Black Oil & Volatile Oil Dry & Wet Gas Gas Condensate Secondary recovery Waterflooding Polymer Flooding Dry Gas Injection GOGD in naturally fractured reservoirs WAG Pseudo-miscible Displacement Gas Storage

Naturally Fractured Reservoirs

Dual Porosity (DP), Dual Permeability (DK), SubDomain (SD), MINC & SD-DK Hydraulically fractured wells with non-Darcy flow & Compaction Single Plane Fracs (Vertical & Horizontal Wells) Complex Fracture Networks (Shale Gas Wells) Coupled Surface Facilities Modelling GAP, FORGAS, METTE & Avocet IAM

IMEX Uses Tight Gas

Primary recovery
Black Oil & Volatile Oil Dry & Wet Gas Gas Condensate Secondary recovery Waterflooding Polymer Flooding Dry Gas Injection GOGD in naturally fractured reservoirs WAG Pseudo-miscible Displacement Gas Storage

Naturally Fractured Reservoirs

Dual Porosity (DP), Dual Permeability (DK), SubDomain (SD), MINC & SD-DK Hydraulically fractured wells with non-Darcy flow & Compaction Single Plane Fracs (Vertical & Horizontal Wells) Complex Fracture Networks (Shale Gas Wells) Coupled Surface Facilities Modelling GAP, FORGAS, METTE & Avocet IAM

STARS Uses
Chemical EOR

Emulsions, Gels, Foams ASP. SP, ASG MEOR LoSAL Brightwater

Thermal EOR
Hot water Steam flood & cycling SAGD & ES-SAGD Combustion (LTO & HTO) ISC of Oil Shale

Naturally Fractured Reservoirs

Dual Porosity (DP), Dual Permeability (DK), SubDomain (SD), MINC & SD-DK

Cold Heavy Oil Recovery (CHOPS) Natural Gas Hydrates Complex Thermal Wellbore Configurations
Discretized Wells (transient, segregated flow of steam and bitumen in single tubing horizontal wells) FlexWells (transient, segregated flow of steam and bitumen in multiple tubing, undulating wells)

Coupled Geomechanics
GEOMECH

STARS Uses Natural Gas Hydrates

Chemical EOR

Emulsions, Gels, Foams ASP. SP, ASG MEOR LoSAL Brightwater

Thermal EOR
Hot water Steam flood & cycling SAGD & ES-SAGD Combustion (LTO & HTO) ISC of Oil Shale

Naturally Fractured Reservoirs

Dual Porosity (DP), Dual Permeability (DK), SubDomain (SD), MINC & SD-DK

Cold Heavy Oil Recovery (CHOPS) Natural Gas Hydrates Complex Thermal Wellbore Configurations
Discretized Wells (transient, segregated flow of steam and bitumen in single tubing horizontal wells) FlexWells (transient, segregated flow of steam and bitumen in multiple tubing, undulating wells)

Coupled Geomechanics
GEOMECH