e-Field: Efficient, Intelligent Operations

for Field Development

Rich Downey
Unconventional Reservoir Theme Manager
Schlumberger Oilfield Services
Houston, Texas
281-285-7231 or Downey2@slb.com

TIPROs 61st Annual Convention

Austin, Texas
February 28 - March 2, 2007

Unconventional Reservoir Solution

Reservoir Evaluation and Production Enhancement services and
solutions through the application of innovative Completion technologies
and answer products.
Technology Application Drivers
Increase Efficiency
Strong focus on reservoir description
Increase Field Recovery
Maximize Production

2 RMD
Schlumberger

Agenda
e-Field: Efficient, Intelligent Operations for Field
Development

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Completions Efficiency

Operational Efficiency

Production Efficiency

Surface
Efficiency

Business Drivers






Completions Efficiency













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Collaborative Environment
i-field Initiatives
Fit for Purpose Equipment and Services
Timely Treatment Execution
Operationally Knowledgeable Teams
Best-in-Class Safety Performance
Safety and Environmental Impact

$
MCF

Collaborative Environment
i-field Initiatives
Reservoir Modeling Reservoir Pressure, Drainage, Etc..
Field Development Planning
Optimize Drilling Process
Stimulation and MLEF Optimization
Accurate Production Prediction
Risk Management
Applying Technologies to Enhance SIMOPS
Influencing Future Technology Horizontal / Pad

Completions Efficiency

5 RMD
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Field Development Workflow

And Project Processes

Acquire, Inventory and QC

All Data

Formation
Evaluation

Reservoir
Characterization

Special Log Analysis

Correlate logs

Petrography

Analyses

Map Thickness
Map Other
Associated Zones

Gas Resource

Structural
Analysis /
Fracture
Assessment

Core Description
Log Calibration

Map Thermal
Maturity

Outcrop Studies

Map Gas Content

Tectonic
Interpretation

Original
Gas In-Place

STATIC
RESERVOIR MODEL

Seismic Data
Fractures in Well
(FMI, Core, WTA)
Regional / Field
Structure, Gravity,
Magnetics,
Lineament Maps
Hydrology
Analysis

Structural Model

Map Hydrologic
Properties

In-Situ Stress

Production Analysis
6 RMD
Schlumberger

Dynamic
Reservoir
Model

FDP Workflow and Project Processes (continued)

Reservoir & Geologic Data
Initialize Model

Construct TimeDependent Deck

Construct Dynamic
Reservoir Model

Production and Pressure Data

Calibrate
Model

Import Observed
Data

History Matching

Define Forecast Cases

Client/Project Objectives

Production Forecasting
Deterministic
Forecasts

Probabilistic
Forecasts

Construct Forecast Models

Run Forecast
Cases

Economic Analysis

Construct
Cash-Flow
Model

Cash-Flows & Summaries

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Define Project/Analysis
Area

Geologic Maps

Construct Baseline Model

Distributions of
Variable Properties

Production Forecasts
Development Schedule
Economic & Financial
Parameters

Monte Carlo
Simulations

Reservoir Modeling and Simulation

Early in a play life, simulation is used to integrate all field data into a
forecasting model


Estimate gas in place and recovery factors

Provide gas/water forecasts and reserves

Optimize stimulation designs in vertical/horizontal wells

Evaluate well spacing and lateral length

Identify best completion intervals

Evaluate production practices

Quantify storage and flow mechanisms

Appraise Each Well as a Catalyst to Continuously Improve Value

8 RMD
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Models Driving Business Decisions:

3D Petrel Mechanical Earth Model
Integration of all data to provide a predictive tool to drive well location /
development strategy minimize drilling issues and optimize
stimulation effectiveness, maximizing production

Sub-seismic faults and fractures (FMI)

9 RMD
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Seismic-scale
faults

Integrated Earth Model Based Workflow

Local
Knowledge

Earth Model

Refine
Model

Decisions

No

Petrophysics
Simulator

Drilling
Simulator

Fracture
Simulator

Reservoir
Simulator

Yes

Agreement
Between
Model & Data

Best
Practice
Execute Plan

Logging
Drilling
Completion
Observations Observations Observations

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Reservoir
Observations

Eclipse Model Naturally Fractured Reservoirs

FG-5_new - X-Permeability (md)
0.0020

0.0018

10 Year0.0016
Matrix
0.0014
Pressure
Drop

High Perm
Orthogonal Sets of
Natural Fractures

Matrix-Block - Gas Pressure (psia)

0.0012
3500

3000

0.0010
2500

2000

0.0008
1500

0.0006
1000

Low Perm
Shale Matrix

500
12/28/2003 00:00:00

180.0000 days

0.0004
0.0002

0.0000
07/01/2003 00:00:00
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0.0000 days

30
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$/MCF
1.2
$/MCF
20 Yr Reserves

0.8

0.4

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3000

2500

0.6
2000

1500

1000

0.2
500

Reserves MMCF

Finding Costs & Reserve Comparison

4500

4000

1
3500

Operational Efficiency

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Hydraulic Fractures In Horizontal Wellbores

Goal is to Create Surface Area

Surface

Wellbore azimuth 0
Longitudinal fractures

Reservoir

Wellbore azimuth 90
Transverse fractures

Vertical Stress
Minimum horizontal stress
Maximum horizontal stress

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Microseismic

 Real Time used as

required to adjust job
execution (good idea;
needs more development)

 Interpretation has led

to better understanding of
fracture geometry and
subsequent job design
considerations

15 RMD
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3D Sonic Scanner - Stress Anisotropy

SH
Sh
Sh

SH

Sh
SH

Sh
SH

Low stress anisotropy

Lower seismic anisotropy

High stress anisotropy

Higher seismic anisotropy

Wide fracture fairway

Narrow fracture fairway

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Fracture Geometry Information from Horizontal Image Logs

Variable Induced Fractures Infers Variable Stress
Transverse Fractures Only:

No Fractures:

Long & Trans Fractures:

H >> h

High

Low & H ~ h

Long,Wide
Narrow
Fracture
Fairway
Fairway
NoFracture
Fractures

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Dynamic MLEF Completion Optimization

B-14

B-21

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Hydraulic Fracturing Mapping

Improve the return on stimulation
investment
Determine optimum well spacing &
placement
Calibrate fracturing models
Optimize fracturing design

Well placement
without fracture
detection
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Well placement
with HFM fracture
geometry

Integration of reservoir properties, fracture

modeling and micro seismic detection aid in
reservoir optimization

Actual Microseismic map of a 6 stage

completion

Mechanical Earth Modeling

Basis for drilling simulator and optimization

Completions modeling for hydraulic frac dimension

Tie to StimMAP microseismic data for model validation

Perforation and stage design

Optimized Cfd

Well locations and drainage area

Aid to Drilling and Completions

Natural fracture understanding for maximized productivity

Fluid and proppant selection

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Production Efficiency
i-field

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Schlumberger

i-field
Efficiency and Production Enhancement
i-District
Operational Support Center
Production Center of Excellence
OSC
Hub
Remote Site

platform
platform

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011010100110001001010110
0110101001100010010101

011010100110001001010101
01101010011001010010010

Remote Site Remote Site

Planning and Logistics

Drilling Execution
Production Optimization
Reservoir Management

Process Change for Safe, Efficient Operation

23 RMD
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24 hour completion operations including, simultaneous perforating and

fracing, optimizes time on location and reduces total completion time. An
average of (8) fracs/day are routinely stimulated.

i-District Components
Resource Management Component

i-District Setup

Business Process Manager

Service Oriented Architecture

Global Mobile Operation

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End-to-End Service Delivery Process

Operation Support Center - OSC

Interactive service
operations
a proven system for
remotely monitoring,
modeling, and controlling
processes to optimize
services while increasing
safety and reducing risk

25 RMD
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Production Optimization - Surveillance & Diagnostics

Fields

Communication

Office

Operational Support Centers/ Decision Support Center

Kanak1.0

Device
Management
Role Manager
Trender
Alarm
Management

Communication can be
accomplished;
between wells
between each well and the server

Production Watcher

Best of breed
Communications

Field Interface
Monitoring & Surveillance

Information available
from the wellhead or the
server through any
browser capable device

Reservoir Behavior Analysis

Production Enhancement Identification

Between the server and each well

Alarming on KPI;

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Liquid Loading
Productivity Index

Production Optimization in Real Time

Production Center of Excellence

Reservoir
Optimization

Production Optimization

VALUE
Surveillance in real time

Data Conditioning, Reporting, Management

Data Gathering & Transmission (BHP, WHP, Flowrate)

27 RMD
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Web Interface

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Mechanical Earth Model Continuous Knowledge

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i-field Summary

Real-time data is valuable in optimizing the deliverability of

the entire system
Maintain efficiency of the wellbore
Maximize production from the reservoir
Multi-well analysis for reservoir performance optimization

Real-time data allows a time snap of the reservoir

Information management:
The right people, the right methodologies, the right
processes

30 RMD
Schlumberger

Thank you!