new albany shale gas project project review presented at rpsea unconventional gas conference 2010...
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New Albany Shale Gas Project
Project Review Presented at
RPSEA Unconventional Gas Conference 2010
Golden, CO. April 6, 2010
Iraj Salehi
Gas Technology Institute
2
New Albany ShaleAn Industry-RPSEA Cooperative R&D Project
Illinois Basin
86 to 160 Tcf New Albany
Shale ( Gas-in-Place)
• Large Geographic Area
• Multiple States• Complex Geology• Low Permeability
Large GIP with Limited
Production (.3 Bcf/y)+
Technically Complex =
R&D Target
3
New Albany ShaleA Fully Integrated Project
Reservoir Engineering
Formation Evaluation Geochemistry
Hydraulic Fracturing
Geology
Production Data
Research Quality Field Data
9 Industry participants providing data and wells of opportunity for field data acquisition and testing
9 Research organizations and 2 service companies performing the research together with engineers and geologists from the host companies
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Project Structure and Tasks
Field Data Acquisition, GTI
Geology, BEG
Geochemistry, Amherst
Formation Evaluation, ResTech
Fracture Modeling, A&M
Fracture DiagnosticsPinnacle
Reservoir Engineering, A&M, WVU
Technology Transfer, GTI
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> 360 feet of cores and complete suit of logs were taken for geological, geochemical, formation evaluation, reservoir engineering, and rock mechanics studies.
> 45 water samples for study of methanogenic bacterial population were taken.
> Production data from over 250 wells obtained.
> Several cores from public repositories studied.
> One geologic field trip carried out> Surveyed a Reversed Vertical Seismic
Profile (RVSP) for determination of the dominant natural fractures from velocity anisotropy
New Albany ShaleField Data Acquisition
RVSP
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Field Data Acquisition
> Coop work with CNX; Evaluation of Zipper Frac in NAS
─ Received log and core data─ Cored and logged a pilot hole─ CNX shall drill two parallel horizontal
wells─ Project will use fracture modeling and
microseismic imaging─ CNX shall provide production data
Coring & Logging in CNX well SA-005
7
Field Data Acquisition
> Coop work with NGAS
─ NGAS provides production data used
for Reservoir Engineering studies
─ Cored and logged a pilot hole
─ Geochemical and petrophysical
analysis of cores
─ Microseismic imaging of hydraulic
fractures completed
─ Production from the coop well awaits
installation of nitrogen rejection unit
Warsaw
Sellersburg
Ft. Payne
New Albany
Salem
Warsaw
Sellersburg
Ft. Payne
New Albany
Salem
Warsaw
Sellersburg
Ft. Payne
New Albany
Salem
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> Two cores from Noble Energy were studied. The project, in cooperation and cost sharing of Daugherty Petroleum (NGAS) and CNX Gas cut a total of 360 feet of cores that are being studied by BEG and other researchers.
> One geologic field trip carried out. > Natural fractures in the NAS are common
and have diverse origins.> Steep, partly or completely sealed
fractures are likely most important for completions in NAS.
> Calcite-sealed fractures form weak planes.> More complex fracture fill gives stronger
planes.
New Albany ShaleGeology
Location Of Cooperative Wells
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> 45 water samples were.> Extracted DNA from samples of microbial
population.> Analyzed 12 NAS samples from 12 cores.> Performed geochemical analysis on gas
samples from 10 NAS wells. > Currently completing bacteria and archaea 16S
clone libraries> High alkalinity and enriched residual 13C from
dissolved inorganic carbon that correlate with biogenic gas formation in previous studies have been observed.
> Analysis of Antrim samples indicates that bacterial methane generation continues and may have noticeable slowed the down production decline rate.
New Albany ShaleGeochemistry
Wells sampled, summer 2008 & summer 2009
1010
> 41 sets of logs and core data received from producing companies.
> Developed the cost matrix for various logging, coring, and core analyses for the project.
> Data from several geochemical analyses were aggregated to arrive at an average desorption isotherm.
> Investigated the effects of adsorbed gas on density and porosity calculation from logs and verified that the adsorbed gas has a 0.37 g/cc.
New Albany ShaleFormation Evaluation
0 200 400 600 800 1000 1200 1400 1600 1800 20000
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60
80
100
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Methane Adsorption Isotherm For Two Noble Wells in Sullivan County, Indiana,and Daugherty Well 2485-21 in Christian County, KY New Albany Shale
Daugherty Well 2485-21
Meas'd Data, Well #1
Meas'd Data,Well #2
Normalized Data, Well Daugherty 2488
Normalized Data, Well #1
Normalized Data, Well #2
Best Fit Isotherm, Two Wells
SE KY Isotherm, Three Wells
Shrewsbury KY Isotherm
Maple Corners KY Isotherm
Daugherty Well 2485-21 Isotherm
Pressure, psia
Gas
Con
tent
, sc
f/to
n
1111
> Determine effectiveness of the horizontal open-hole packer completion process in New Albany Shale and determine azimuth and extent of hydraulic fractures.
> Designed 3 microseismic and one tiltmeter fracture diagnostic surveys and performed a microseismic imaging in well DPI-2485.
> A second microseismic fracture imaging survey on well SA-005 is scheduled for April, 2010.
New Albany ShaleFracture Diagnostic
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Microseismic Mapping in the Western Kentucky Low-Pressure NAS
Warsaw
Sellersburg
Ft. Payne
New Albany
Salem
Toolstring 2
Toolstring 1
• Designed 3 microseismic and one tiltmeter fracture diagnostic surveys and performed a microseismic imaging in well DPI-2485
• Low-μ fluid (± 1MMSCF N2) created adequate length (1,000 – 1,600 ft) & high degree of far-field complexity, but may require minimal propping
• excessive height growth during the last 3 stages indicates the presence of fault
• Primary induced azimuth of N85°E suggests optimal area lateral azimuth of N15°W
• Horizontal stresses min and max were lower
in the NAS than in bounding layers, suggesting that (in absence of geological features) vertical confinement may be generally expected.
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Reservoir Engineering
> Reservoir engineering studies have been challenging due to extremely low permeability and data scarcity. The project has adopted a two-pronged approach
> Texas A&M is using various analytic and numerical techniques and West Virginia University is developing a top-down AI-geostatistical approach for field–level reservoir evaluation.
Pressure profile after 1 and 5 years of production
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Reservoir Engineering
30 Year Production:Arps exponential .14 BSCFArps Hyperbolic .74 BSCFModified Hyperbolic .26 BSCF
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> Parallel to the A&M studies, West Virginia University is taking a field-level approach using the FRACGEN and NFFLOW simulation packages.
> Using production data from over 250 wells obtained from Kentucky Geological Survey, WVU is developing an AI-based reservoir engineering technique for field study.
> Combination of the two approaches will be a valuable tool for reserve estimate and production forecasting.
Reservoir Engineering / Best Practice Analysis
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Fracture Modeling
- Parametric simulation nearing completion
- Modeling of NGAS well fracturing suggests that pore pressure distribution resulting from nitrogen injection has increased the virgin pore pressure by as much as 4 MPa in a large zone around the fracture. Although the calculated stress state does not show intact rock failure, the increased pore pressure is likely to trigger slip on pre-exiting cracks and induce micro-seismicity as in observed in the field.
Hydraulic fracture
Natural fault
d
xL = 0.15
2.969
1.184
1.38
4
2.96
9
y
0 0.5 1 1.5 2 2.5 30
0.5
1
1.5
2
2.5
3
0 0.5 1 1.5 2 2.5 30
0.5
1
1.5
2
2.5
3
0 0.5 1 1.5 2 2.5 30
0.5
1
1.5
2
2.5
3
Interaction between natural and hydraulic fractures
(a) 1.0 1.0x y ; (b) 2.0 1.0x y ; (c) 1.0 2.0x y .
Minimum principle stress after 10 minutes of injection in NGAS well
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Environmental Considerations
>States of Emphasis: Kentucky and Indiana
>Primary Regulatory Agencies Contacted─ Kentucky: Department of Natural Resources (DNR)
─ Indiana: Indiana Dept of Environ Mgt and the DNR
>Responses from Regulatory Agencies─ Minimal Environmental Impact
─ No or Minimal Flowback Water
─ Low Flow Produced Water -- stored in 50 bbl tanks, then transported to permitted Class II injection wells.
─ No Air Issues have surfaced (e.g. VOC’s)
─ Minimal Solid Waste Issues.
>Conclusion: NAS Enjoys Minimal Environmental Barriers.
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Technology Transfer
Major Publications & Presentations Venue Date
New Albany Shale Project HART’s Unconventional Natural Gas Report Dec-08
Identification of microbial in Illinois basin AAPG Bulletin Mar-09
Shale Evaluation New Albany Shale SPWLA Spring Topical Conference Philadelphia, Pa Mar-09
New Albany Shale Gas GTI Cooperative Project SPWLA Spring Topical Conference Philadelphia, Pa Mar-09
New Albany Shale Project Update RPSEA Unconventional Gas Meeting, Golden, CO Apr-09
Natural Franc in the NAS and their importance for production International Coaled and Shale Gas Symposium May-09
New Albany Shale Project Update GTI Forum Chicago, ill Jun-09
New Albany Shale Gas Project A Joint Industry Project Touch Briefings Exploration & Production Aug-09
Top-Down Intelligent Reservoir Modeling of NAS SPE Eastern Regional Meeting Charleston Sep-09
Economic Impact of Reservoir properties in NAS SPE Eastern Regional Meeting Charleston Sep-09
New Albany Shale Gas Research Project. World Gas Conference Buenos Aires, Argentina Sep-09
Poster Presentation of New Albany shale NAPE Conference Houston, Texas Feb-10
New Albany Shale Gas Project A Joint Industry Project American Oil & Gas Reporter Jun- 10
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Conclusions & Discussions
Project has developed knowledge and information for removing uncertainties regarding economics of New Albany Shale Gas, e.g.; reserve assessment, well performance; and development of efficient completion techniques
There are no environmental or regulatory obstacles at this time
Major Results: Gas content Gas type thermo vs bio result Fracture Stimulation
The NAS Resource: Is not a Barnett or Marcellus, but a truly a nanodarcy resource for the most parts Requires gas price support While D&C cost improvements have been significant; still requires a D&C cost breakthrough Approach to NAS will require economy of scale Nanodarcy technology is not yet developed NAS is a Barnett of the future with ongoing development. Technologies developed will be transferable to other shale gas basins that are presently
considered marginal