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A Holistic workflow for evaluating and developing SRR – Cypher Joe Dumesnil China Unconventional Tech Team Leader © 2011 HALLIBURTON. ALL RIGHTS RESERVED.

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A Holistic workflow for evaluating and developing SRR – Cypher

Joe Dumesnil China Unconventional Tech

Team Leader

© 2011 HALLIBURTON. ALL RIGHTS RESERVED.

Unconventional Source Rock Reservoirs (SRR)

Difficult-to-produce formations - special completion techniques

Larger amounts of data & more engineering manpower are required. ‒ Unconventional gas reservoirs vs

conventional reservoirs.

Reservoir usually Highly Heterogeneous (Faulted or Fractured)

Unconventional gas production economically viable: ‒ Advances in horizontal drilling ‒ Advances in completions, ‒ Advances in hydraulic fracturing

Less Mature Oil Window

More Mature Oil Window

Gas Window

Unconventional Team Organization

Organizational Collaboration

Multidisciplinary team All disciplines are interactive

when performing: – Assessment – Operational program – Optimization

© 2011 HALLIBURTON. ALL RIGHTS RESERVED. 3

Petroleum System Analysis

Customer Reservoir Modeling

Basin Modeling Geochemistry Petrophysics

Earth Modeling

Geophysical Analysis

Data Management

Asset Valuation and Planning

Earth Model

Geologist & Reservoir Engineering

Predict Reserves

Financial Backing

Changes Are Limited

Slow Loop – Customer Owned

Data Management

Dynamic Integrated

Asset Model

Completion / Drilling Engineering

5000 5750 6500 7250 8000 8300

8200

8100

8000

7900

7800

7700

7600

7500

7400

7300Stress Profile

Closure Stress (psi)

Permeability

Low High

Fracture Conductivity (mD·ft)

0.00 100 200 300 400 500 600 700 800 900 1000

Conductivity of each Fracture (mD·ft)

YELLOW POINT 3-1

0 250 500 750 1000Length (ft)

Dept

h (ft

)

Completion Optimization

Complex SystemComplex Planar

w/ FissuresComplex Planar

Planar w/ Fissures

Planar

Stress Differential

(σmax − σmin)0 2 4 6 10

Natural Fractures

0 SW SW HB HB HB2 SW HB HB HB CL4 HB HB HB CL CL8 HB HB CL CL CL

10 HB CL CL CL CL12 CL CL CL CL CL

SW = SlickWater HB = Hybrid CL = Crosslinked

Liquid Production

Fluid VolumeProppant Volume

Proppant Concentration

Fracture Density Brittleness

100% LOW HIGH HIGH HIGH 0

80% 2

60% 4

40% 6

20% 8

0% HIGH LOW LOW LOW 10

Barnett Bakken Eagle Ford Haynesville

Fluid System

Well Placement

Stimulation Validation

Production Analysis

Integrated Field Planning

CYPHER Service

Petroleum System Analysis

Basin Modeling Geochemistry Petrophysics

Earth Modeling

Geophysical Analysis

Asset Valuation and Planning

Static Earth Model

Drilling & Completion Engineering Fast Loop – Halliburton Owned

Data Management

Dynamic Integrated

Asset Model

Completion / Drilling Engineering

5000 5750 6500 7250 8000 8300

8200

8100

8000

7900

7800

7700

7600

7500

7400

7300Stress Profile

Closure Stress (psi)

Permeability

Low High

Fracture Conductivity (mD·ft)

0.00 100 200 300 400 500 600 700 800 900 1000

Conductivity of each Fracture (mD·ft)

YELLOW POINT 3-1

0 250 500 750 1000Length (ft)

Dept

h (ft

)

Completion Optimization

Complex SystemComplex Planar

w/ FissuresComplex Planar

Planar w/ Fissures

Planar

Stress Differential

(σmax − σmin)0 2 4 6 10

Natural Fractures

0 SW SW HB HB HB2 SW HB HB HB CL4 HB HB HB CL CL8 HB HB CL CL CL

10 HB CL CL CL CL12 CL CL CL CL CL

SW = SlickWater HB = Hybrid CL = Crosslinked

Liquid Production

Fluid VolumeProppant Volume

Proppant Concentration

Fracture Density Brittleness

100% LOW HIGH HIGH HIGH 0

80% 2

60% 4

40% 6

20% 8

0% HIGH LOW LOW LOW 10

Barnett Bakken Eagle Ford Haynesville

Fluid System

Well Placement

Stimulation Validation

Production Analysis

Integrated Field Planning

CYPHER Service

Petroleum System Analysis

Basin Modeling Geochemistry Petrophysics

Earth Modeling

Geophysical Analysis

Asset Valuation and Planning

Static Earth Model

Earth Modeling Workflow

Geologic Modeling

Geophysical Modeling

Advanced Petrophysical Analysis

Advanced Facies Distribution

Eagle Ford Model Mapping Brittleness Index

EFFECTIVELY USING THE EARTH MODEL Well Placement and Fracture Design

Fracture growth will vary depending upon the mechanical properties and the initiation point: Height Length Conductivity

A Geologic Earth Model can be used to capture all key reservoir attributes to understand fracture growth behavior

A Geologic Earth Model can be used to capture all key reservoir attributes to understand fracture growth behavior

Fracture growth will vary depending upon the mechanical properties and the initiation point: Height Length Conductivity

Drilling (Sperry/HDBS)

Drilling Fluids

Cementing

Completion Tools

Wireline / Perforating

Pinnacle

Stimulation

Drilling (Sperry/HDBS)

Drilling Fluids

Cementing

Completion Tools

Wireline / Perforating

Pinnacle

Stimulation

Coiled Tubing (delta)

$8,425,000.00

$4,175,000.00 8.2 MMscf/d

4.5 MMscf/d

Ref. SPE 132990

Getting the Well in The Right Place

Coiled Tubing (delta)

Improved Well Placement Providing Improved Contact with

High Quality Reservoir

RGD Confidential – Aug 8, 2012

The Optimization Workflow – Completion Design

Iteration

Sensitivity and

Uncertainty Eff Perm Frac Length Frac Width Frac Spacing

Optimized Well Design Optimized Well Spacing

FRAC LENGTH

FRAC CONDUCTIVITY

SYSTEM PERMEABILITY

Frac Length

MatrixPerm (nD)

Frac Conductivity

Data Relationships

The Optimization Workflow – Calibration

Iteration

Production History

Matching

Production Data

Calibrated Design Tools

Effective Perm Effective Porosity Mech Properties

Fracture Gradient Closure Stress Fracture Length Fracture Conductivity

Production

Well Placement – Field

Cypher™ - Summary

Creates a collaborative environment and multi-discipline cooperation

Focuses on reservoir understanding Moves from costly and time consuming trial and error

techniques into computer modeling solutions to expedited learning

Continuously updated models enable engineers and geoscientists to make better decisions

CypherTM is a workflow that continuously narrows the scope of uncertainty for shale developments.