kent perry
TRANSCRIPT
>
Kansas Next Step2007 Seminar: New Technology, Seismic and Seismic
Interpretation
Hays, Kansas
August 8-9, 2007
Kent F. Perry
Gas Technology Institute
2
Advanced Drilling Technologies Coiled Tubing Rig
• Niobrara Chalk• 4 ¾” Open Hole• One 3000’ Well/Day
3
Unconventional Gas Growth
Non-Arctic U.S. and Canadian Production Outlook
2003 NPC Study
0
5
10
15
20
25
30
2000 2005 2010 2015 2020 2025
Tcf
ASSOCIATED
CONVENTIONAL
NONCONVENTIONAL
4 Tcf
4
NiobraraArea
of Activities
Area of Drilling Activity
Googleearth.com
5
Niobrara Chalk High O (30 to 50%)
Low k (.01 to 3 md)
Depth = 1500 to 3000 Ft.
Biogenic Gas
Low Relief Structures
Under Pressured
Requires Fracture Stimulation
IP = 50 Mcf/Day or Less
W.Lynn Watney – U. of Kansas
6
8 3/4” open hole to 376 ft.5 1/2” casing @ 376 cemented with 145 sacks neat cement
Surface
Estimated Cost Savings From Conventional Rig from
25% to 35% per well
Conventional Well = $125,000Microhole = $88,000
4 ¾” Open Hole to 1180 ft.2 7/8” “ casing @ 1179’ cemented w/45 sacks
Cement
Niobrara Chalk Formation
k = .002 md - .5 mdPorosity = 20 -35%IP After Frac = 30 - 50 Mcf/d
Microhole Well Completion – Goodland, Kansas Niobrara
All Wells Fracture Stimulated
7
Benefits of Rig Utilization
1. Efficient Rig Mobilization
2. Small Environmental Footprint
3. Rapid Drilling
4. Good Hole Quality and Cement
5. Rig Capable of Drilling, Running Casing, Tool Handling, Logging
6. Benefits of Continuous Tubing
7. Low Noise, Emissions
8. Mud Recycle, Minimum Cuttings and Zero Discharge if Required
9. Improved Safety Saves Money, Environment and Enables Marginal
Resources
8
1. Efficient Rig Mobilization
50 Feet
9
2. Small Environmental Footprint
50ft70ft
10
3. Rapid Drilling
0
100
200
300
400
500
600
Duell
Irvin
Gut
sch
Topliff
Mel
ba
Bradsh
aw Rita
Crum
rine
Linen
1
Linen
1M
Conrad
Emm
a
Villin
es
Moore
13
Moore
33
Ella M
ay 2
2
Ella M
ae 1
4
Walte
r21
Rudolp
hAlv
in
Iser
nhag
en 1
2
Iser
nhag
en 2
1
Walte
r 33
Av
era
ge
RO
P -
Ft/
Hr
ROP Range = 200 to 500 ft/hr
First WellsMay, 2005
Bit Design Change
Project WellsOctober, 2005
11
PDC Bit
Size: 4.75 inches
4. Good Hole Quality and Cement
12
5. Rig Capable of Drilling, Logging, Running Casing, Cementing
13
6. Benefits of Continuous Tubing Drilling
• Rapid Drilling Through Pay Zone
• No Pressure Surges Due to Connections
• Minimized Fluid Loss• Minimized Formation Damage
• Gauge Hole • Straight Hole• Good Cement
14
7. Low Noise - Low Emissions
15
8. Mud Recycle, Minimum Cuttings and Zero
Discharge if Required
16
• Small Crew
• No Drill Pipe – No Connections
• Limited Loads to Move
9. Improved Safety
17
3100 Ft. Well Drilled in 19 Hours
Casing/Cement20%
MIRU - RDMO16%
Pick Up BHA16%
Drilling21%
Lay Down BHA16%
Logging11%
Allocation of TimeTotal = 19 Hrs.
18
Barriers to Microhole Usage
> Production Engineers Have Long Term Concerns
– Ability to Rework Wells
– Handling of Significant Fluids
– Limited Space for Mechanical Equipment
– Future Use of Wellbores
> Lack of Experience/Familiarity
> Depth Limitation
> Difficult Drilling Environments – Stuck Pipe
> Issues with State of Colorado – Ability to Adequately Complete
Wells, P&A
> Hard Formations – Heavy Muds
19
Precision Replacing Horsepower
Pay
Pay
Wellbore
Wellbore
Ideal World
Real World
Pay
Pay
Wellbore
Wellbore
Ideal World
Real World
1960’s 1980’s 2000’s
Nuclear Stimulation Massive Hydraulic Fractures
Horizontal Wellbore Fracturing
From Pinnacle Technology
20
U.S. Onshore Drilling By Depth Interval
0
10,000
20,000
30,000
40,000
50,000
60,000
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
Year
All
We
lls
pe
r Y
ear
>15k
10-15k
5-10k
0-5k
Actual Forecast
Source: EEA Base Case January 2006
$3.4 Billion Savings at 25% market penetration of shallow wells.
21
North American Resource Base is Large and Diverse
Technically Recoverable Resource Base
1,969 Tcf
284
329
303
• Deeper on Land• Tighter Rocks• Unconventional• Deeper in Water• Less Accessible• Heavily Explored
NPC 2003
But:
Therefore TechnicallyChallenging
Impact on Gas Resources
0 to 5000’ Technically Recoverable
Unconventional = 130 Tcf
Added Through Lower Cost of Microhole
Drilling = 14 Tcf
22
Activity Trend Rig Has Drilled + 300,000 Feet of Hole
• Colorado – Kansas
Microhole Well Numbers Increasing
• Total Has Grown to + 40
2900’ – 6 ¼ “Wells Drilled in One Day
Drilling Faster Than Permitting
Second Rig Built and Running
Significant Interest in Additional Rigs
23
Summary
> “Fit For Purpose” Microhole Coiled Tubing Drilling– Less Impact on the Environment
– Fast and Efficient
– Enhances Safety
> Saves Money– Enables the Development of Marginal Oil and Gas
Resources
> Future Direction– Smaller Holes, Horizontal Capabilities
– Greater Market Penetration