A Millidarcy Makes Big Difference

NMR Does Well in Lobo Trend

Nuclear magnetic resonance tools are becoming a standard part of the logging suite for many oil companies, and for good reason.

Traditional methods of acquiring formation permeability measurements - whole core, rotary sidewall and percussion cores, pressure transient analysis and production history matching - can be expensive and time consuming.

On the other hand, NMR logging technology developed over the last decade makes it possible to achieve a continuous permeability measurement through wireline logging that is available immediately and can be used to:

  • Proactively estimate reserves and initial production.
  • Design and evaluate the effectiveness of various stimulation programs.

What's next, you ask?

Service companies realize they must demonstrate the superior capabilities of the new technology - and to achieve that goal they are teaming up with clients on studies to test just how valuable an addition NMR is to the wireline logging suite.

Recently Schlumberger joined Conoco, for example, to test wireline logging methods that included NMR tools to develop a continuous permeability measurement.

Stacy Kerchner with Conoco and Bruce Kaiser, Michael Donovan and Ruben Villarreal with Schlumberger Oilfield Services presented a paper on the study at the recent Society of Petroleum Engineers annual meeting. The paper was titled "Development of a Continuous Permeability Measurement Utilizing Wireline Logging Methods and the Resulting Impact on Completion Design and Post Completion."

The project was conducted in Conoco's Lobo Trend in South Texas, and the objectives were:

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Nuclear magnetic resonance tools are becoming a standard part of the logging suite for many oil companies, and for good reason.

Traditional methods of acquiring formation permeability measurements - whole core, rotary sidewall and percussion cores, pressure transient analysis and production history matching - can be expensive and time consuming.

On the other hand, NMR logging technology developed over the last decade makes it possible to achieve a continuous permeability measurement through wireline logging that is available immediately and can be used to:

  • Proactively estimate reserves and initial production.
  • Design and evaluate the effectiveness of various stimulation programs.

What's next, you ask?

Service companies realize they must demonstrate the superior capabilities of the new technology - and to achieve that goal they are teaming up with clients on studies to test just how valuable an addition NMR is to the wireline logging suite.

Recently Schlumberger joined Conoco, for example, to test wireline logging methods that included NMR tools to develop a continuous permeability measurement.

Stacy Kerchner with Conoco and Bruce Kaiser, Michael Donovan and Ruben Villarreal with Schlumberger Oilfield Services presented a paper on the study at the recent Society of Petroleum Engineers annual meeting. The paper was titled "Development of a Continuous Permeability Measurement Utilizing Wireline Logging Methods and the Resulting Impact on Completion Design and Post Completion."

The project was conducted in Conoco's Lobo Trend in South Texas, and the objectives were:

  • Develop a field-specific method to reliably estimate permeability using wireline logging methods.
  • Demonstrate how this information impacts economic and engineering considerations related to the hydraulic stimulation program.
  • Describe the importance of knowledge of permeability in post-audit analysis.
  • Recommend "best practice" guidelines for use of a particular method to obtain permeability.

Well, Well, Well

Advances in 3-D seismic interpretation have improved reservoir descriptions within the depletion drive reservoirs in the Lobo Trend, according to Kerchner, particularly with respect to reservoir boundaries.

Reserve estimates in the trend, however, are frequently calculated on a statistical basis, because on a program basis, statistical estimates continue to provide better estimates of ultimate recovery.

The team members decided that:

  • The continuous permeability measurement model had to be portable.
  • The permeability output had to be valid in all areas of the Lobo Trend and available for real time delivery.
  • The final logging program needed to be cost-effective over other permeability measurement methods.
  • The permeability output had to match core permeability measured from rotary core plugs taken from the test wells.

The study included three evaluation wells followed by a control or project well.

  • The logging program for Well 1 included a typical suite of array induction tool, density tool, compensated neutron log and gamma ray to establish petrophysical correlation with offset wells.

The NMR tool was run for pore size distribution to relate to permeability, and an elemental capture spectroscopy tool was run for clay typing to be used in petrophysical analysis and completion design.

A dipole shear imaging tool was run for mechanical properties to aid in the hydraulic fracture design.

  • Well 2 was to be a test and refinement of the model built from Well 1, but borehole conditions prevented the collective of adequate data.
  • In Well 3, the logging program was optimized from Well 1 based on results from the first well. The same tool string was run for primary petrophysical analysis, elemental capture spectroscopy was run for clay typing, and the NMR tool was again run for pore size distributions. Rotary cores were taken to provide the control for the permeability measurement.

In Well 3 the core coverage was increased to improve the model, but the initial NMR results still were not consistent, much like Well 1. The NMR permeability matched core permeability in the upper pay intervals, but not in the lower pay interval.

Several evaluations of permeability equations were made to combat this problem. A robust expression of NMR permeability was developed by using the nuclear magnetic resonance form of the K-Lambda equation. To provide further validation, Well 1 was reprocessed with this new NMR permeability expression.

A subsequent test well was logged with the new expression and the results compared with core permeability. The results gave Conoco the confidence to remove rotary sidewall cores from the logging program in the study area. Additional wells have since been logged using the NMR permeability as input to the completion design.

Comparisons Are Made

The continuous measurement of permeability was used directly in the fracture optimization process. Conoco and Schlumberger engineers used one case to compare a composite permeability model with the continuous permeability model.

Proppant selection, fluid selection, optimum rate and optimum max proppant concentration were the main parameters required for the optimum fracture stimulation. Once these main parameters were selected, the net present value was analyzed to determine the optimum fracture geometry that meets the composite system permeability of 0.003 millidarcies.

Based on these parameters and the analysis, engineers noted that to achieve the optimum frac half-length of 795 feet, a considerable amount of proppant and fluid would be wasted without any additional benefit due to the low stress contrast between layers.

"From a completion standpoint, it appeared that only three options were available for completing the wells," Kerchner said, "proceed with frac design to achieve optimum frac, reduce frac volumes to meet budget, or produce well until enough capital is raised for frac."

However, when a closer look was taken at the log-derived continuous measured permeability and stress contrast, engineers found that some layers have permeability values of about 0.238 millidarcies. To take advantage of this they could design an optimum frac for 0.238 millidarcies, perform the fracture treatment and model if refracing later provides additional benefit.

"By targeting the high permeability zone first, the optimum frac half length required is 388 feet and the fluid volume and proppant requirement are considerably less than the pervious net present value run," the authors wrote. "By reducing the volume of fluid and proppant mass needed, a reduction in net pressure is expected and a lower value for frac height is also expected. However, this will only take advantage of the high permeability layers, leaving the low permeability layers under stimulated."

A solution to the problem of under stimulating lower permeability layers was to refrac later to improve the production from those zones without sacrificing production.

"Stimulating the high permeability layers and producing them will increase the stress contrast between layers due to depletion," they wrote. "The lower permeability layers can then be stimulated much more efficiently - all we need to find is when to refrac."

Results

Conoco and Schlumberger compared the composite permeability and continuous measured permeability methods by determining the differential cumulative production between the two options.

A three-year cumulative production comparison showed that the frac/refrac using the continuous permeability model provided better return at a lower overall cost. Cost differential was $65,291, and the three-year cumulative gas differential was 292 million cubic feet.

"Obtaining permeability data within the Lobo Trend allows engineers to complete the most economical stimulation design for a given 'tank size' and a calculated recovery factor based on the permeability," Kerchner said.

"For a typical 40-acre block with 40 feet of net pay interval, the cost estimate for a Conoco stimulation design for a permeability of 0.005 millidarcies is $78 thousand, while the same design for a permeability of 0.1 millidarcies is $85 thousand," he added.

The identical design for a permeability of 2.0 millidarcies is $91 million.

"The cost difference justifies the cost of the NMR for areas where permeability is unknown or highly variable," Kerchner said.

The study's conclusion? Continuous permeability measurement using magnetic resonance techniques can greatly improve well efficiencies by better understanding the permeability distribution across the zone of interest, Kerchner said, which not only leads to better completion but also enhances the overall hydrocarbon recovery.

"Using gas prices of about $3 per thousand cubic feet," she said, "this completion process using the continuous measured permeability model brings to the bottom line $65,291 in cost savings plus $876,000 in additional revenue from gas production."

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