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Abstract A significant reduction of drilling and completion costs in the Eumont and Jalmat Fields of Lea County, New Mexico has resulted in the continuation of Conoco's development program in a soft gas price environment. Average 1995 costs for drilling, completion and facilities have been reduced to $180,000 for single zone completion wells and $240,000 for two completion wells. This paper focused on the process and equipment changes that resulted in the cost improvements as well as the method used to identify the improvements. Introduction Conoco Inc. operates ninety-five (95) active gas wells in the Eumont and Jalmat Fields of Lea County, New Mexico shown in Figure 1. Combined oil and gas rates from the wells are 25 BOPD and 28,719 MCFPD. Gas production is from the Permian age Yates, Seven Rivers, and Queen formations. Over the past three years, Conoco has maintained an active development program yielding 10 MMBOE's of reserve additions illustrated in Figure 2. During the period from 1993 to 1995, Conoco Inc. drilled and/or recompleted 60 wells to the Eumont and Jalmat gas pools. As the more economically attractive projects were finished, cost containment became increasingly important to ensure profitability and ensure continuation of the program. Additionally, lower gas prices during 1995 intensified cost control requirements. Conoco Inc.'s Hobbs Operating Unit met the challenge by blending the robust skills of a multi-discipline team. As seen in Figure 3, the team identified completion processes and equipment specification changes that resulted in 37% and 27% well cost reductions for single and two zone wells, respectively. Reservoir Description The Yates, Seven Rivers, and Queen Formations are mostly dolomite with inter-bedded sandstone lenses at depths ranging from 2,600' to 3,600'. Recent development has primarily been in the gas productive inter-bedded sand lenses shown on the type log in Figure 4. These zones are from 250' to 500' thick with permeabilities and porosities ranging from 1 to 12 md and 4% to 18% respectively. Reservoir pressure of sand zones varies from 150 psia to 500 psia. Utilization of advanced technology in energized sand fracturing is required to enable these wells to produce at commercial rates of 200 to 2,000 MCFPD. Cost management is critical to keep the projects economical at the low end of the reserve range (<1 BCF). Team Approach Cost control became so critical during early 1995, the shallow gas program was halted. A special multi-discipline team was formed to identify cost saving proposals to get the gas well program "back on the tracks." Composition of the team included everyone involved in executing a shallow gas well completion from Land/Right of Way to the Production Operator. First, every step of the process listed below was thoroughly discussed:staking/building of surface location drilling logging running casing cementing perforating stimulating running tubing installing wellhead installing facilities including artificial lift
- North America > United States > New Mexico > Permian Basin > Jalmat Field > Yates Formation (0.99)
- North America > United States > New Mexico > Permian Basin > Jalmat Field > Tansill Formation (0.99)
- North America > United States > New Mexico > Permian Basin > Jalmat Field > Seven Rivers Formation (0.99)
- (2 more...)
- Well Drilling > Drilling Equipment (1.00)
- Well Completion > Hydraulic Fracturing (1.00)
- Management (1.00)
- (4 more...)
Abstract In the past, slickline service has been considered as an option suited only to routine mechanical well workovers. This is no longer the case. New technology has expanded slickline capabilities to include services for well interventions that have traditionally been reserved for other, more-costly alternatives. This paper will discuss the innovative equipment that has been developed to support this technological expansion, all of which plays an integral part in the expanded slickline concept, specifically:An electronic triggering device that provides a safe, efficient method for firing detonators A battery-operated, electro-mechanical tool that is capable of setting wellbore devices with slickline and braided line without explosives. An electronic measurement system that can automatically correct measurement inaccuracies resulting from line stretch and environmental stress factors. A collar locator that can provide verification of collar locations in a tubing or casing string. Data/job loggers or acquisition software systems that can be connected to the electronic measurement system to graphically record dynamic information that occurs during a wireline trip. A wireline inspection system that can determine integrity of both new and used mechanical wirelines during and before service. Case histories will be used to provide comparisons of cost, operational efficiency, and enhanced safety features of traditional service options and the new advanced slickline system. Methods for service strategies that support current economic trends and well solutions will also be discussed as well as methods to determine key needs for appropriate service alternatives. The combined use of these slickline tools provides a state-of-the-art service system that can provide efficient alternatives for the advanced service needs in the oilfield today. Introduction Modern slickline services have grown from their forerunners - flat measuring lines, that were used in the early days of the petroleum industry for measuring well depths. The flat measuring lines were calibrated with marked or stamped figures similar to those on a surveyor's tape. As well depths increased, so did the problems with the traditional tapes. Procuring tapes of sufficient length became difficult, stretching of the calibrated tapes under loads reduced accuracy (so that it was necessary to correct readings to get accurate depths), and when measuring lines had to be run in a well under pressure, the flat tape was difficult to run through packing in a stuffing box. These disadvantages initiated the adoption of the circular wire for measuring depth. The circular wire was tagged at equal increments of length, and the operator kept a record of the amount of line paid out and retrieved. Later, measuring devices with calibrated wheels came into use because they were more convenient and provided greater accuracy in measurement. The first slickline that came into general use was for following the plug during cementing operations. As well depths increased, and loads imposed on measuring lines increased, it became necessary to develop higher-strength slickline materials to keep the diameter size of the wire as small as possible. Since that time, many improvements have been made in the wire, slickline drives, and measuring devices, and slickline servicing provides an effective means for performing well maintenance by high speed mechanical deployment, manipulation and retrieval of downhole service tools. Its portability allows it to also be cost efficient for performing such services in remote locations and on satellite platforms.
- North America > United States > Texas > Permian Basin > Yeso Formation (0.99)
- North America > United States > Texas > Permian Basin > Yates Formation (0.99)
- North America > United States > Texas > Permian Basin > Wolfcamp Formation (0.99)
- (21 more...)
Abstract With re-entry drilling systems available for hole sizes as small as 3-7/8", slimhole reentry horizontal drilling offers operators an opportunity to improve field recovery and revitalize wells suffering from gas or water coning by infill drilling. In particular, the potential for coiled tubing drilling has created significant industry interest over the last 18 months. Offshore where there is no derrick in place, use of a coiled tubing drilling system makes it possible to redrill old wells and perform horizontal re-entries. To date, coiled tubing re-entry wells have used a conventional rig to cut the window, adding unnecessary costs and time to the program. It was recognized that a coiled tubing conveyed window cutting system will enhance the capabilities of coiled tubing drilling by eliminated the need to cut the window with a conventional rig. The problems of slimhole window cutting include controlling weight on bit while starting the window, and reducing torque while milling to prevent drillpipe failure. In the coiled tubing application, rotation is supplied by a downhole motor, which presents additional problems with respect to controlling weight on bit. A milling system that combines downhole motors with hydraulic thrusters to supply constant weight on bit has been bench-tested and field proven. While the prototype system required three milling runs after setting and orienting the packer, subsequent systems are in testing to reduce the number of milling runs to one. A description of the applications and requirements of the window cutting system is provided, along with bench test and field test results.
- North America > United States > Texas (0.46)
- North America > United States > Mississippi > Marion County (0.24)
- North America > United States > Texas > Permian Basin > Yeso Formation (0.99)
- North America > United States > Texas > Permian Basin > Yates Formation (0.99)
- North America > United States > Texas > Permian Basin > Wolfcamp Formation (0.99)
- (21 more...)
Abstract A discussion is presented on the improvement of shallow gas well production through the use of advanced low-temperature breaker technology. A systematic field evaluation has shown that the use of this new breaker system has increased well production in spite of inherent problems in the area due to severe proppant embedment. Previous use of an encapsulated breaker (EB) designed for well temperatures above 125 F had shown some improvement in production over conventional dissolved breakers. However. the current study has shown that the new breaker system, designed for temperatures <125 F and closure stress <1000 psi, has been able to improve production by an additional 15 to 22% in direct offset comparisons. Study criteria included selection of a suitable area, maintenance of a consistent drilling and completion program, and variance only in the breaker system used Laboratory development of the new breaker system also is discussed, including effects of temperature and closure stress on barrier properties, and fracture conductivity comparisons. Introduction Workovers and increased shallow drilling activity have stimulated continued interest in methods to improve the performance of low-temperature wells. Published data have shown improvement in these wells using encapsulated breakers; however, typical low-temperature conditions require that the breaker design be optimized to ensure achieving maximum efficiency/cost effectiveness. There is a significant amount of published literature regarding laboratory and field studies on the application and use of delayed release breakers from low- to high-temperature gas well conditions. However, there has been little if any systematic comparison of different encapsulated breaker designs on actual well production. This study specifically shows how optimized encapsulated breaker technology can significantly improve shallow gas well production. It also shows how a field evaluation can be accomplished in an area of typical marginal economics, provided prior planning in well selection and adequate study design are done. P. 835^
- North America > United States > Texas (1.00)
- North America > Canada (0.70)
- North America > United States > Texas > Permian Basin > Yeso Formation (0.99)
- North America > United States > Texas > Permian Basin > Yates Formation (0.99)
- North America > United States > Texas > Permian Basin > Wolfcamp Formation (0.99)
- (22 more...)
Abstract This paper concerns a cooperative effort between a major producing company and a major service company to establish a business relationship which emphasizes workmanship and productivity instead of traditional unit pricing. The general concepts of and reasons for productivity-based contracts are explored. The viability of these concepts for six common maintenance services are discussed as well as specific results from more than two years of operating experience relating to routine production maintenance (well servicing). Introduction The law of supply and demand has exerted a dramatic influence on the economics of the upstream petroleum industry over the past several years. Surplus productive capacity in the crude oil sector has predictably lowered producer margins as shown in Figure 1. This has dictated curtailment of activity and an overall trend toward cost control. Service companies have been pressured to lower their list price or to work at a percentage discount. The resulting price list reductions for goods and services have reduced service companies' margins to break even levels. In addition, staff reductions have forced producers to cut back project monitoring. Having reached the limit of price reductions, both producers and contractors must explore new methods to maintain job quality for a reasonable price. One means of assuring that both parties receive maximum benefits is to develop ways of "partnering". These agreements between operators and contractors are designed to produce a win-win situation where the parties share parallel goals. This type of relationship typically shifts the emphasis from job cost to job quality and performance thereby placing more responsibility and accountability for job performance and quality on the contractor or vendor. These goals may be accomplished through the use of contracts which enable both parties to benefit from performance which is superior to the norm. We refer to these agreements as "productivity-based" contracts as distinguished from those which employ unit pricing. pricing. Examples of productivity-based contracts are: * Turnkey - services are provided for a fixed amount based on a well defined scope of work. Compensation may be paid by the month, by the week, by the job or any combination of the three. * Footage - compensation varies according to the working depth of the well. * Production - compensation is based on barrels of oil sold. P. 9
- North America > United States > Texas > Permian Basin > Yeso Formation (0.99)
- North America > United States > Texas > Permian Basin > Yates Formation (0.99)
- North America > United States > Texas > Permian Basin > Wolfcamp Formation (0.99)
- (21 more...)
Abstract A novel foamed acid treatment has proven effective in the workover of more than 20 wells in the Permian Basin Delaware, Grayburg, and Upper Clearfork formations. The treatment described uses a foaming mutual solvent/acid system. This system provides the desirable wetting and solubilization properties of a mutual solvent and acid along with the inherent advantages of foam. The uniqueness of this treatment is derived from the prolonged stability of the foam, a property not characteristic of foamed mutual solvent systems. Data is presented from both laboratory and field tests comparing this procedure to conventional foamed acid techniques. Detailed treatment designs are presented which are applicable in coiled tubing and workover strings. These procedures have been used in treatment of injection and producing wells. The treatment described is especially effective in low pressure wells where previous workovers have resulted in poor performance. Introduction For over 20 years, foam has been used in the production of oil and gas. Foam is used in all phases of oil recovery including drilling, stimulation (acidizing and fracturing) and in secondary and tertiary recovery operations. Foam also finds use for diverting during workover, stimulation, enhanced recovery and completions (gravel packing). The initial attraction to foam for drilling and wellbore cleanout was due to its usefulness in low pressure situations. The good mechanical properties of foam:low hydrostatic head, ability to support fines, low leak-off rates, and shear thinning rheological behavior, made it an ideal fluid for completion of low pressure gas zones and fracturing low permeability formations. These properties, plus low liquid content and energized fluid return facilitated the use of foam in water sensitive formations. All of these benefits have made foam a common treatment fluid. Similarly, the benefits of mutual solvents are well known and well documented. In acidizing, these chemicals are used to reduce surface tension which improves acid penetration and promotes cleanup. Due to the "mutual solubility" of these materials, they are effective in penetrating and removing oily coatings on acid-soluble material. This provides for more complete acid spending, thus a more cost-effective job. The surface tension reduction properties of a mutual solvent also assist in removal of water blocks. Some mutual solvents are effective in reducing the possibility of forming an emulsion during acidizing. The use of mutual solvents is also advocated to aid in solubilization of other fluid additives and prevent their adsorption onto the formation. The exact mechanism and the extent to which any given mutual solvent performs any of these tasks is a subject of discussion and experimentation. However, their usefulness as a group is accepted, and depending on the exact application, one mutual solvent might be more suitable than another. A foamed acidizing system including a mutual solvent is not new, and foaming solvents have been in use for several years. P. 249^
- North America > United States > Texas (1.00)
- North America > United States > New Mexico (1.00)
- Materials > Chemicals > Commodity Chemicals > Petrochemicals (1.00)
- Energy > Oil & Gas > Upstream (1.00)
- North America > United States > Wyoming > Laramie Basin > Niobrara Formation (0.99)
- North America > United States > Texas > Permian Basin > Yeso Formation (0.99)
- North America > United States > Texas > Permian Basin > Yates Formation (0.99)
- (28 more...)