VIETNAM NATIONAL UNIVERSITY

HO CHI MINH UNIVERSITY OF TECHNOLOGY

FACULTY OF GEOLOGY AND PETROLEUM
OFFICE OF INTERNATIONAL STUDY PROGRAM
---------------o0o---------------

ASSIGNMENT
INTEGRATED RESERVOIR & PROJECT MANAGEMENT

SUPERVISOR: DR. NGUYỄN XUÂN HUY

STUDENT: TRƯƠNG VŨ
STUDENT ID: 1552441

HO CHI MINH CITY, NOV. 2020

Homework
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1) Calculate the EL in MScf per month for a gas lease with WI = 100%, NRI = 87.5%, lease operating
expense = $5,000/month, condensate price = $60/Stb, gas price = $4.25/MScf, condensate yield = 5
Stb/MScf, and the severance tax for gas and condensate is 4.5% each.

Solution:
Because the problem does not give Ad valorem tax so T=0.

WI × LOE 100 % × $ 5,000

ELoil = = =19.6
NRI [ Pg ( 1−T g ) + Po ( 1−T o ) ( Y ) ] ( 1−T ) 87.5 % × [ $ 4.25× ( 1−4.5 % ) + $ 60 × ( 1−4.5 % ) ×5 ] ×(1−0)

2) An oil well has been drilled and completed. Te productive zone has been encountered at a depth of
7,815–7,830 feet. The log analysis showed an average porosity of 15% and an average water saturation of
35%. Te oil formation volume factor is determined in the laboratory to be 1.215 RB/ Stb. Experience
shows other reservoirs of about the same properties drain 80 acres with a recovery factor of 12%.
Compute the OOIP and the ultimate oil recovery.

Solution:
o The OOIP is:

7,758 ∅ ( 1−Sw ) hA 7,758 × 0.15× ( 1−0.35 ) ×15 ×80

N= =
Bo 1.215
N=747,067 STB

o The ultimate recovery is given by

N ul =N × E R =747,000× 0.12=89,648 STB

3) The initial rate and EL of the well in problem 3.15 is 1,680 Stb/month and 200 Stb/month,
respectively. At what exponential decline rate will it recover the reserves calculated in problem 3.15?
How long it will take the well to reach the EL?

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 Solution:
o Exponential decline rate:

( qi −qo ) × 12 (1,680−200)× 12
a= = =0.198108
N ul 89,648

o Time to take the well to reach the EL:

qi 1,680
ln ln
qo 200
t= = =10.7428 month
a 0.198108

4) A gas well is completed at a depth of 8,550 feet. The log analysis showed total formation thickness of
12 feet of 16% porosity and 30% water saturation. On potential test, the well produced dry gas with a
specific gravity of 0.75. The reservoir pressure was determined from a drill stem test (DST) to be 3,850
psi and the log heading showed a reservoir temperature of 155° F. The gas will be produced at the surface
where the standard pressure is 14.65 psi and the standard temperature is 60° F. The study of the offset
wells producing from the same formation has shown that the wells are capable of draining 160 acres at a
recovery factor of 85%. Compute the GIIP and the recoverable gas reserves. The gas formation volume
factor is 259.89 Scf/CF.

Solution:
o Calculate gas initial in place (GIIP):

GIIP=43,560 ∅ ( 1−Sw ) hA β g=43,560× 0.16 × ( 1−0.3 ) × 12×160 × 259.89=2,434 MMScf

o Recoverable gas reserves:

G R=G × E R=2,434 ×0.85=2,069 MMScf

5) In problem 3.17, the abandonment pressure has been determined to be 800 psi below which no gas
could be economically produced. Based on this information, compute the ultimate gas recovery and the

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recovery factor. The formation volume factor at abandonment pressure is 51.88 Scf/CF.

Solution:
o Calculate gas initial in place (GIIP):

G=43,560 ∅ ( 1−S w ) hA β g =43,560 × 0.16× ( 1−0.3 ) ×12 ×160 ×51.88=486 MMScf

o Recoverable gas reserves:

E R=G /GIIP=486 / 2,434=0.19967

6) An oil well has produced consistently for the last five years. The monthly oil production for each year
is given in the table below. It costs $2,000 per month to operate the well, the current oil price is $60/Stb,
and the severance tax is 7.085% of the gross value. The well is not producing any associated gas.
Compute the following:
a. The EL based on 100% WI and 87.5% NRI
b. The exponential decline based on a graphed plot of production versus time
c. The remaining oil reserves as of 1/1/2011
d. Production rate at the end of 2011
e. The remaining life of the well
f. Ultimate oil recovery
g. Production for 2011, 2012, and 2013

Month Oil Production, Stb

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 2006 2007 2008 2009 2010

January 2,399 1882 1637 1334 1151

Febuary 2,059 1621 1265 1177 1028

March 1,808 1536 1386 1208 1151

April 1,627 1551 1310 1191 1075

May 1,699 1526 1300 1370 1081

June 1,575 1553 1241 1315 983

July 1618 1514 1289 1268 1037

August 1660 1428 1299 1312 959

September 1575 1320 1240 1224 989

October 1538 1534 1290 1229 897

Novembe
1541 1309 1240 1202 1044
r

December 1702 1474 1348 1229 996

Solution:
a.

WI × LOE 100 % × $ 2,000

ELoil = = =41 Stb/month
GOR 87.5 % × [ $ 60 × ( 1−7.085 % ) ] ×(1−0)
[
NRI Po ( 1−T o ) + P g ( 1−T g ) ( 1,000 )] ( 1−T )
b. Exponential decline rate/year:
( 989−809.5 )
d= ∗100 ≈ 18 %
989
a=−ln ( 1−0.18 )=0.19845
c. Remaining oil reserves:

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d. Production Rate
q ot =qi ×e−a t =952 ×e (−0.19845×1) =780 Stb/month
o

e. Remaining Life:
952
ln
41
t= ≈ 16 years
0.19845
f. Ultimate Recovery:
N ul =N P + N r =82,344+55,086=137,430
g. Production:

Oil Production (Stb)

Month
2011 2012 2013
1 938 767 596
2 924 753 582
3 909 738 567
4 895 724 553
5 881 710 539
6 867 696 525
7 852 681 510
8 838 667 496
9 824 653 482
10 810 639 468
11 795 624 453
12 781 610 439
Total 10,347 8,261 6,633

7) Calculate by using cumulative production curve

Solution:

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