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Optimized Unconventional Shale Development with MPD Techniques Bhavin Patel, MPD Engineer, Global Business Unit Weatherford International DEA TECHNOLOGY FORUM - JUNE 2015

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Optimized Unconventional Shale Development with MPD Techniques

Bhavin Patel, MPD Engineer, Global Business Unit Weatherford International

DEA TECHNOLOGY FORUM - JUNE 2015

© 2015 Weatherford. All rights reserved.

U.S. Shale Plays - 16,696

exploratory and development wells drilled on US land during year 2010 (eia published data)

- 2544* wells spudded during FY 2014 on federal lands. *Bureau of Land Management published data

DEA TECHNOLOGY FORUM - JUNE 2015 1

© 2015 Weatherford. All rights reserved.

Global Shale Plays

DEA TECHNOLOGY FORUM - JUNE 2015 2

© 2015 Weatherford. All rights reserved.

Mechanical Specific Energy Concept of Mechanical Specific Energy (MSE)

𝑀𝑀𝑀 = 𝑊𝐴

+ 2𝜋𝐴

𝑁𝑁𝜇

Where: W = Thrust force or weight on bit A = Area of the hole N = Rotational speed, rpm T = Torque µ = ROP

DEA TECHNOLOGY FORUM - JUNE 2015 3

© 2015 Weatherford. All rights reserved.

Differential Pressure Effect on ROP

DEA TECHNOLOGY FORUM - JUNE 2015

Source: Applied Drilling Engineering – SPE textbook, Bourgoyne et al.

4

© 2015 Weatherford. All rights reserved.

Mechanical Specific Energy Concept of Mechanical Specific Energy (MSE)

MSE = (W/A)+(2π/A)(NT/µ) Where: W = Thrust force or weight on bit

A = Area of the hole

N = Rotational speed, rpm

T = Torque

µ = ROP

DEA TECHNOLOGY FORUM - JUNE 2015 5

© 2015 Weatherford. All rights reserved.

Mechanical Specific Energy Typical approach to Minimize MSE using open to atmosphere circulating system Limited to only minimizing the numerator MSE = (W/A)+(2π/A)(NT/µ)

o Decrease weight on bit (W) o Decrease rpm (N) o Decrease torque (T)

This approach limits drilling performance

DEA TECHNOLOGY FORUM - JUNE 2015 6

© 2015 Weatherford. All rights reserved.

MSE and Differential Pressure Applied Drilling Engineering study by Bourgoyne Jr, et al, 1991 Correlates ROP and differential pressure between hydrostatic of mud column and pore pressure

ROP2=ROP1ecD(MW1 – MW2)

Where:

ROP = Rate of Penetration MW1 = Mud weight at ROP1 MW2 = Modified mud weight D = Well depth C = constant based on formation, bit type, & WOB

DEA TECHNOLOGY FORUM - JUNE 2015 7

© 2015 Weatherford. All rights reserved.

Managed Pressure Drilling (Definition per IADC)

“Managed Pressure Drilling (MPD) is an adaptive drilling process used to precisely control the annular pressure profile through out the wellbore. The objectives are to ascertain the down hole pressure environment limits and to manage the annular hydraulic pressure profile accordingly. MPD is intended to avoid continuous influx of formation fluids to the surface. Any influx incidental to the operation will be safely contained using appropriate process.”

DEA TECHNOLOGY FORUM - JUNE 2015 8

© 2015 Weatherford. All rights reserved.

Optimized performance & enhanced control by closing the loop

DEA TECHNOLOGY FORUM - JUNE 2015 9

© 2015 Weatherford. All rights reserved.

ECD Components

Conventional – ECD = Hyd Pressure + Frictional Pressure

MPD – ECD = Hyd Press + Frictional Pressure + Back

Pressure

DEA TECHNOLOGY FORUM - JUNE 2015 10

© 2015 Weatherford. All rights reserved.

Monitoring of Critical parameter trends

Flow In & Out

Mud Density In & Out

Choke Pressure, Stand Pipe Pressure & Bottom Hole Pressure

Choke Position

DEA TECHNOLOGY FORUM - JUNE 2015 11

© 2015 Weatherford. All rights reserved.

Dynamic Pore Pressure Test

DEA TECHNOLOGY FORUM - JUNE 2015 12

© 2015 Weatherford. All rights reserved.

Benefits of MPD for Shale Drilling

MPD allows for added control and optimization of ECD – Allows for enhanced mud weight management during

drilling

Direct versus Invisible NPT – Elimination of Non productive events through better control

and handling of downhole issues High pressure low volume Gas stringers

– Improvement of drilling efficiency (i.e. ROP) via mud weight optimization

DEA TECHNOLOGY FORUM - JUNE 2015 13

© 2015 Weatherford. All rights reserved.

Mechanical Specific Energy CLD approach to Minimize MSE using closed circulating system

– Maximize the denominator

MSE = (W/A)+(2 x π/A)(NT/µ) – Increase rate of penetration (µ)

Decrease of MSE (via µ) allows for lighter weight drill pipe, less rpm and torque

– Therefore allows for utilization of smaller rigs and less capable and less expensive rigs

DEA TECHNOLOGY FORUM - JUNE 2015

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© 2015 Weatherford. All rights reserved.

ROP Impact on MSE

DEA TECHNOLOGY FORUM - JUNE 2015 15

© 2015 Weatherford. All rights reserved.

Haynesville Gas Shale – Results Reduced overall drilling time on 4 wells by 49% and saved more than $2

million USD. Improved ROP at curve and lateral through use of 14.8 vs 16.5 ppg mud. More time drilling and not circulating out kicks at high temperature. MPD enhanced safety through managing large quantities of gas at surface. Reduce NPT through early influx detection and precision control chokes

used to deplete the high volume-low volume fractures within hours Enhanced nuisance gas management capability Augmented well control from flow change identification via coriolis and

mass balance (even in high gas environment)

DEA TECHNOLOGY FORUM - JUNE 2015 16

© 2015 Weatherford. All rights reserved.

Haynesville Gas Shale – Results Well #2 Depth vs. Days

Plan vs. Actual10000

11000

12000

13000

14000

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17000

5/23

5/24

5/25

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5/28

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5/31 6/1

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DEPT

H in

FEE

T

DATE

15 Days Ahead of Plan

48% Improvement in Depth vs. Days Against Planned # of Days

DEA TECHNOLOGY FORUM - JUNE 2015 17

© 2015 Weatherford. All rights reserved.

Haynesville Gas Shale – Results 10000

10500

11000

11500

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13000

13500

14000

14500

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1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47

Mea

sure

d Dep

th, f

eet

Days From 7" Shoe to TD

10 Well Campaign Depth vs Days (Last 4 With MPD)

With Microflux MPD

DEA TECHNOLOGY FORUM - JUNE 2015 18

© 2015 Weatherford. All rights reserved.

Argentina – Shale Oil Vaca Muerta – Shale formation Pore pressure uncertainty LOC / Influx ~ differential stick UBD/MPD (42 wells since 2009) Drilling optimization = Reduce NPT and risk management

– Balloning, LOC, Influx – Ability for dynamic well control – Improve in safety (gas management)

Pore pressure validation Early identification of production Minimize formation damage

DEA TECHNOLOGY FORUM - JUNE 2015 19

© 2015 Weatherford. All rights reserved.

MPD Benefits - Non Conventional Resource Development

Consideration of “Assembly Line” approach in shale drilling & completion technologies is important. Even marginal increase in drilling efficiency can lead to significant saving in field development cost.

Improving drilling efficiency in shale drilling requires reduction in both visible and invisible non-productive time (NPT due to slow ROP). Improving ROP requires MSE optimization and improved drilling efficiency.

Real-time optimization of MSE by monitoring and control of drilling parameters is effective way to increase drilling efficiency and increase rate of penetration. Real-time adjustment of WOB, rotational speed and torque has proved helpful to optimize MSE.

DEA TECHNOLOGY FORUM - JUNE 2015 20

© 2015 Weatherford. All rights reserved.

MPD Benefits (Continued) Wellbore pressure (BHP) affects rate of penetration in a significant manner.

Optimizing BHP / ECD by manipulating mud density, surface back pressure and mud properties will improve ROP by optimizing MSE.

Managed Pressure Drilling (MPD) Techniques enables real-time monitoring and optimization of Bottom Hole Pressure. CBHP technique of MPD can reduce mud weight required to drill the well as compared with conventional drilling.

Real-time monitoring and control of ECD / BHP using automated MPD system will reduce amount of overbalance, yielding improved ROP and increased drilling efficiency.

MPD techniques have proven very effective in drilling challenging wells into conventional reservoirs. Similar success can be replicated with drilling into shale plays as well.

DEA TECHNOLOGY FORUM - JUNE 2015 21

© 2015 Weatherford. All rights reserved.

Acknowledgements Brian Grayson and Huub Gans as Co-authors of SPE

SPE-164565-MS. Weatherford Management IADC and DEA

DEA TECHNOLOGY FORUM - JUNE 2015 22

© 2015 Weatherford. All rights reserved. DEA TECHNOLOGY FORUM - JUNE 2015

Thank You

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