|Theme||Visible||Selectable||Appearance||Zoom Range (now: 0)|
Swiss oil trader Vitol said on 30 April that its oil and gas subsidiary, Vencer Energy, was buying Hunt Oil Company's assets in the Permian Basin for an undisclosed sum. Media outlets including Bloomberg and Reuters cited sources that pegged the asking price at around $1 billion. Houston-based Vencer was established last year as the trading giant's first foray into the upstream sector. The assets include leases on 44,000 acres in the Midland Basin side of the Permian, with an output about 40,000 BOE/D. "This is an important day for Vencer as it establishes itself as a significant shale producer in the US Lower 48. We expect US oil to be an important part of global energy balances for years to come, and we believe this is an opportune time for investment into an entry platform in the Americas," said Ben Marshall, the head of Vitol's Americas business unit.
Brinkley, Kourtney (Devon Energy) | Ingle, Trevor (Devon Energy) | Haffener, Jackson (Devon Energy) | Chapman, Philip (Devon Energy) | Baker, Scott (Devon Energy) | Hart, Eric (Devon Energy) | Haustveit, Kyle (Devon Energy) | Roberts, Jon (Devon Energy)
Abstract This case study details the use of Sealed Wellbore Pressure Monitoring (SWPM) to improve the characterization of fracture geometry and propagation during stimulation of inter-connected stacked pay in the South Texas Eagle Ford Shale. The SWPM workflow utilizes surface pressure gauges to detect hydraulically induced fracture arrivals athorizontal monitor locations adjacent to the stimulated wellbore (Haustveit et al. 2020). A stacked and staggered development in Dewitt County provided the opportunity to jointly evaluateprimary completion and recompletion efforts spanning three reservoir target intervals. Fivemonitor wells at varying distances across the unit were employed for SWPM during the stimulation of four wells. An operational overview, analysis of techniques, correlation with seismic attributes, image log interpretations, and fracture model calibration are provided. Outputs from this workflow allow for a refined analysis ofthe overall completion strategy. The high-density, five well monitor array recorded a total of 160 fracture arrivals at varying vertical and lateral distances, with far-field fracture arrivalsprovidingsignificant insight into propagation rates and geometry. Apronounced trend occurred in both arrival frequency and volumes pumped as monitor locations increased in distance from the treatment well. Specific to target zone isolation, it was identified that traversing vertically in section through a high stress interval yielded a 30% reduction inarrival frequency. An indirect relationship between horizontal distance and arrival frequency was also observed when monitoring from the same interval. A decrease in fracture arrivals from 70% down to 8% was realized as offset distance increased from 120 to 1,700 ft. The results from this study have proven to be instrumental in guiding interdisciplinary discussion. Assessing fracture geometry and propagation during stimulation, particularly in the co-development of a stacked pay reservoir, is paramount to the determination of proper completion volume, perforation design, and well spacing. Leveraging the observations of SWPM ultimately provides greater confidence in field development strategy and economic optimization.
Guo, Yifei (The University of Texas at Austin) | Ashok, Pradeepkumar (The University of Texas at Austin) | van Oort, Eric (The University of Texas at Austin) | Patterson, Ross (Hess Corporation) | Zheng, Dandan (Hess Corporation) | Isbell, Matthew (Hess Corporation) | Riopelle, Austin (Marathon Oil Corporation)
Abstract Well interference, which is commonly referred to as frac hits, has become a significant factor affecting production in fractured horizontal shale wells with the increase in infill drilling in recent years. Today, there is still no clear understanding on how frac hits affect production. This paper aims to develop a process to automatically identify the different types of frac hits and to determine the effect of stage-to-well distance and frac hit intensity on long-term parent well production. First, child well completions data and parent well pressure data are processed by a frac hit detection algorithm to automatically identify different frac hit intensities and duration within each stage. This algorithm classifies frac hits based on the magnitude of the differential pressure spikes. The frac stage to parent well distance is also calculated. Then, we compare the daily production trend before and after the frac hits to determine the severity of its influence on production. Finally, any evident correlations between the stage-to-well distance, frac hit intensity and production change are identified and investigated. This work utilizes 3 datasets covering 22 horizontal wells in the Bakken Formation and 37 horizontal wells in the Eagle Ford Shale Formation. These sets included well trajectories, child well completions data, parent well pressure data and parent well production data. The frac hit detection algorithm developed can accurately detect frac hits in the available dataset with minimal false alerts. The data analysis results show that frac hit severity (production response) and intensity (pressure response) are not only affected by the distance between parent and child wells, but also affected by the directionality of the wells. Parent wells tend to experience more frac hits from the child frac stages with smaller direction angles and shorter stage-to-parent distances. Formation stress change with time is another factor that affects frac hit intensity. Depleted wells are more susceptible to frac hits even if they are further from the child wells. Also, we observe frac hits in parent wells due to a stimulation of a child well in a different shale formation. This paper presents a novel automated frac hit detection algorithm to quickly identify different types of frac hits. This paper also presents a novel way of carrying out production analysis to determine whether frac hits in a well have positive or negative influence long-term production. Additionally, the paper introduces the concept of the stage-to-well distance as a more accurate metric for analyzing the influence of frac hits on production.
Dontsov, Egor (ResFrac Corporation) | Suarez-Rivera, Roberto (W. D. Von Gonten Laboratories) | Panse, Rohit (W. D. Von Gonten Laboratories) | Quinn, Christopher (W. D. Von Gonten Laboratories) | LaReau, Heather (BP America Production Company, BPx Energy Inc.) | Suter, Kirke (BP America Production Company, BPx Energy Inc.) | Hines, Chris (BP America Production Company, BPx Energy Inc.) | Montgomery, Ryan (BP America Production Company, BPx Energy Inc.) | Koontz, Kyle (BP America Production Company, BPx Energy Inc.)
Abstract As the number of wells drilled in regions with existing producing wells increases, understanding the detrimental impact of these by the depleted zone around parent wells becomes more urgent and important. This understanding should include being able to predict the extent and heterogeneity of the depleted region near the pre-existing wells, the resulting altered stress field, and the effect of this on newly created fractures from adjacent child wells. In this paper we present a workflow that addresses the above concern in the Eagle Ford shale play, using numerical simulations of fracturing and reservoir flow, to define the effect of the depletion zone on child wells and match their field production data. We utilize an ultra-fast hydraulic fracture and depletion model to conduct several hundred numerical simulations, with varying values of permeability and surface area, seeking for cases that match the field production data. Multiple solutions exist that match the field data equally well, and we used additional field production data of parent-child well-interaction, to select the most plausible model. Results show that the depletion zone is strongly non-uniform and that large reservoir regions remain undepleted. We observe two important effects of the depleted zone on fractures from child wells drilled adjacent to the parents. Some fractures propagate towards low pressure zones and do not contribute to production. Others are repelled by the higher stress region that develops around the depletion zone, propagate into undepleted rock, and have production rates commensurate to that from other child wells drilled away from depleted region. The observations are validated by the field data. Results are being used to optimize well placement and well spacing for subsequent field operations, with the objective to increase the effectiveness of the child wells.
Shale producer Oasis Petroleum said Monday that it is acquiring Williston Basin assets from Diamondback Energy in a cash deal valued at $745 million. Oasis will take on about 17,700 B/D in existing oil production on 95,000 net acres of leases at a cost of nearly $28,000 per BOED, the company said in its announcement. The acquisition's production will add to the operator's first-quarter base of about 36,800 B/D of oil, bringing pro forma production to an estimated 54,500 B/D. "This exciting acquisition is a great example of how Oasis is addressing the needs of tomorrow, by taking action in our new industry paradigm, today," Danny Brown, Oasis' CEO, said in a statement. "This acquisition materially enhances scale in our core Bakken asset at an attractive valuation, with the purchase price almost entirely based on PDP and very little value attributed to the development of the top-tier inventory or potential synergies," he continued.
US shale producer Chesapeake Energy announced on Wednesday that CEO Doug Lawler is stepping down. The interim chief will be Mike Wichterich who was appointed by the company's creditors as its new chairman upon its exit from bankruptcy in February. "On behalf of the Board of Directors, Chesapeake's employees and its shareholders, I would like to thank Doug for the vision and leadership he provided for the past 8 years. He guided Chesapeake through a difficult period, repositioned Chesapeake's portfolio of assets, and built a corporate culture which will serve as a platform for future success. I firmly believe that the investment thesis supporting Chesapeake is compelling, and my confidence in the renewed strength of the company continues to grow," Wichterich said in a statement.
Abstract Shale wells are often shut-in after hydraulic fracturing is finished. Shut-in often lasts for an extended period in the perceived hope to improve the ultimate oil recovery. However, current literature does not show a strong consensus on whether shut-in will improve the ultimate oil recovery. Because of the delayed production, evaluating the benefits of shut-in in improving the ultimate oil recovery is crucial. Otherwise, shut-in would merely delay the production and harm the economic performance. This paper uses a numerical flow-geomechanical modeling approach to investigate the effect of imbibition on shut-in potentials to improve the ultimate oil recovery. This paper proposes that imbibition is one of the strongly confounding variables that cause the mixed conclusions in the related literature. The investigation methodology involves probabilistic forecasting of three reservoir realization models validated based on the same field production data. Each of the models represents different primary recovery driving mechanism, such as imbibition-dominant and compaction-dominant recovery. A parametric study is conducted to explore and identify the specific reservoir conditions in which shut-in tends to improve the shale oil recovery. Ten reservoir parameters which affect the imbibition strength are studied under different shut-in durations. Comparison among the three models quantitatively demonstrates that shut-in tends to improve the ultimate oil recovery only if the shale reservoir demonstrates imbibition-dominant recovery. A first-pass economic analysis also suggests that when the shale oil reservoirs demonstrate such an imbibition-dominant recovery, shut-in tends to not only improve the ultimate oil recovery, but also the NPV. A correlation among ultimate oil recovery, flowback efficiency, and NPV also shows that there is no strong relationship between flowback efficiency and ultimate oil recovery. This study is one of the first to emphasize the importance of quantifying the imbibition strength and its contribution in helping recover the shale oil for optimum flowback framework and shale well shut-in design after hydraulic fracturing.
Fakher, Sherif (Missouri University of Science and Technology) | Elgahawy, Youssef (University of Calgary) | Abdelaal, Hesham (University of Lisbon) | Imqam, Abdulmohsin (Missouri University of Science and Technology)
Abstract Carbon dioxide (CO2) injection in low permeability shale reservoirs has recently gained much attention due to the claims that it has a large recovery factor and can also be used in CO2 storage operations. This research investigates the different flow regimes that the CO2 will exhibit during its propagation through the fractures, micropores, and the nanopores in unconventional shale reservoirs to accurately evaluate the mechanism by which CO2 recovers oil from these reservoirs. One of the most widely used tools to distinguish between different flow regimes is the Knudsen Number. Initially, a mathematical analysis of the different flow regimes that can be observed in pore sizes ranging between 0.2 nanometer and more than 2 micrometers was undergone at different pressure and temperature conditions to distinguish between the different flow regimes that the CO2 will exhibit in the different pore sizes. Based on the results, several flow regime maps were conducted for different pore sizes. The pore sizes were grouped together in separate maps based on the flow regimes exhibited at different thermodynamic conditions. Based on the results, it was found that Knudsen diffusion dominated the flow regime in nanopores ranging between 0.2 nanometers, up to 1 nanometer. Pore sizes between 2 and 10 nanometers were dominated by both a transition flow, and slip flow. At 25 nanometer, and up to 100 nanometers, three flow regimes can be observed, including gas slippage flow, transition flow, and viscous flow. When the pore size reached 150 nanometers, Knudsen diffusion and transition flow disappeared, and the slippage and viscous flow regimes were dominant. At pore sizes above one micrometer, the flow was viscous for all thermodynamic conditions. This indicated that in the larger pore sizes the flow will be mainly viscous flow, which is usually modeled using Darcy's law, while in the extremely small pore sizes the dominating flow regime is Knudsen diffusion, which can be modeled using Knudsen's Diffusion law or in cases where surface diffusion is dominant, Fick's law of diffusion can be applied. The mechanism by which the CO2 improves recovery in unconventional shale reservoirs is not fully understood to this date, which is the main reason why this process has proven successful in some shale plays, and failed in others. This research studies the flow behavior of the CO2 in the different features that could be present in the shale reservoir to illustrate the mechanism by which oil recovery can be increased.