Shale Gas Completions and Fracturing Technology

Gregory Dean
Engineering Manager
India
Unconventional Gas
Slide 3 of 53
Agenda
Shale Gas Systems
Shale Gas Properties
Game Changing Technology
Evolution of Treatment and Completion
Beyond the Barnett
Shale Gas Technologies
Understand the Reservoir First
Slide 4 of 53
Unconventional Gas Reservoirs
Tight Gas
Reservoirs with Permeability < 0.1 md.
Geo-Pressure Zone
Extreme depths up to 30,000 ft.
Result of compaction of silts and clays forcing gas into bounding
layers
Deep Gas
Depths > 15,000ft. Now considered part of tight gas
Natural Gas Hydrates
Frozen water and natural gas crystals found beneath permafrost
Coalbed Methane (CBM)
Gas produced from coal
Significant reserves throughout the world
Shale Gas
Significant shale gas development in North America
Earliest shale gas production dates to 1821
Fine grained silt and clay formation interbedded with sands and
carbonates
Unconventional Gas Reservoirs
Slide 5 of 53
Shale Gas
Shale Gas Reservoirs
Free Gas
Much like conventional reservoirs
Adsorbed Gas
Gas volume relative to organic content and thermal maturity
Thermal maturity is relative to vitronite reflectance of
reservoir
Lower VR
o
Indicates oil (0.5<1.0%)
Higher VR
o
Indicates gas (1.0-1.4%)
Gas From Natural Fractures
Slide 7 of 53
Shale Gas Systems
Biogenic Systems
System produced as result of life process
Low Vitronite Reflectance (VR
o
) 0.5-0.75%
Antrim Shale in Michigan one of few biogenic
Thermogenic Systems
Most productive shales are thermogenic type systems
Higher VR
o
1.0-1.8%
Result of thermo cracking of organic matter
Lower thermal maturity reservoirs can produce higher
volumes of liquid hydrocarbons
Slide 8 of 53
Gas Shale Characteristics
Defined by particle size - finest grained clastic rocks; predominantly
clay-sized particles
Clay - < 5 microns
Silts - 5 to 63 microns
Sand - > 63 microns
Contain free gas and adsorbed gas
Zone thickness can be significant
Extremely tight (low permeability)
Shale - 10
-4
to 10
-6
md
Tight Sand - 10
-1
to 10
-3
md
Are currently or have been naturally fractured
Slide 9 of 53
Critical Production Drivers: Other Geological Issues
Mineralogy & Geomechanics
Brittle, fracturable shale / mudstone with low-
swelling clay is best
More plastic rock is a major problem requiring
specialized fracturing fluids and techniques
95%+ Quality Surfactant Foam +ULWP
Geomechanical variability within the reservoir
Geomechanical properties of bounding layers
Karsts/Faults/Wet Zones
Brinell Hardness Tests with Injection Fluids
Haynesville Shale has relatively low hardness and reacts negatively
to prolonged contact with injected water, ultimately resulting in higher
proppant embedment. Reducing fluid contact time is critical
B
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H
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K
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/
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Low Permeability Reservoirs

In Low Permeability Reservoirs, Gas Does Not Want to Flow Through
the Rock
Radial Flow Makes it even Harder
Fracturing Provides Massive Inflow Area and Reservoir Contact
30 m of 8.5 vertical open hole = 20.3 m
2
500 m of 6.25 horizontal open hole = 250 m
2
8 x 100 m x 4.5 multilaterals = 287 m
2
100 m x 30 m elliptical fracture = 20,773 m
2
Slide 12 of 53
Low Permeability Reservoirs
There is No Substitute for Inflow Area in Tight and Shale Gas
Formations.
The Lower the Permeability, the Greater the Inflow Area Needs to be.
For a given production rate, there is a direct inverse relationship between
permeability and inflow area.
If the permeability decreases by a factor of 10, the inflow area needs to
increase by a factor of 10.
Slide 13 of 53
Major US Shale Basins
Economides & Martin, 2007
Slide 14 of 53
Hydraulic Fracturing Issues in Shale Gas Wells
Proppant selection
Short- and long-term crush resistance
Short- and long-term embedment potential
Ease of transport
Max particle size that will enter the induced fractures
Frac fluid cleanup / load recovery
Does load recovery matter in gas shales?
Anecdotal studies from key shale operators said yes
Fracturing under-pressured shales
Ultra-high quality foam / ULWP proppant is the problem-
solver
Effective stimulation along full-length of the lateral
Again, MicroSeismic is the tell-tale
Clay control
Mineralogy from XRD, ESEM
Shale Plays Provide Game Changing Technology
Crosslinked Fluid Treatments
Polymer damage, Expensive
Slickwater Frac Treatment
Economical, Non-damaging, Improved formation contact
Horizontal Wells
Significant improvement in reservoir contact, Significant
production enhancement
Simultaneous Frac
Additional improvement in reservoir contact,
Completion of multiple wells at same time
Proppants
Smaller mesh proppant (40/70, 100 mesh), Ultra Light
Weight proppant
Slide 16 of 53
Microseismic
Diagnostics of fracture treatment
Understanding the reservoir,
frac orientation
Fracture network
Fracture fairway as result of
large volume slickwater
Communication with offset wells
Offset well communication can
result in improved results
Where does it go and what
does it touch?
Fisher et al, 2002
Slide 17 of 53
Example of Fracture Treatment Evolution
Barnett Shale discovery well history (CW Slay #1)
Economides & Martin, 2007
Slide 18 of 53
Example Reservoir Study
Barnett Shale Vertical, Deviated, Horizontal
Slide 19 of 53
Hz Wells with Multiple Fracs
Field Development
20
Horizontal Completion Evolution
Uncemented to cemented laterals with solid-body Centralizers and
zero free-water cement slurries.
Overcame fracture initiation challenges with Limited-entry perf
design and acid stages, ball-sealers and abrasive jet cutters.
Increased pump rate and number of stages.
Sliding sleeves, packers
Uncemented liner, no diversion
Pay now or pay more later?
Increased number of perforation clusters and tighter spacing.
Larger fluid and sand volumes.
Tighter spacing between laterals.
(Managed interference)
Multiple laterals off of the same pad site.
Simultaneous offset fracs of pairs and now quads.
Slide 21 of 53
Horizontal Wellbores End Member Fracture Geometries
s
h,max
s
h,max
s
h,min
s
h,min
Transverse Longitudinal
Simultaneous Fracturing
Slide 23 of 53
Simultaneous Fracturing
Slide 24 of 53
Simultaneous Fracturing
Economides & Martin, 2007
Slide 25 of 53
Going Beyond the Barnett
Industry had to Re-Invent Fracturing and Completing for
the Barnett
The Barnett is Probably the Easiest North American Shale
Gas Play to Develop
6,500 to 8,500 ft, 200 F
Extensive natural fracture networks
Barriers to prevent fracturing into water
Extensive fracturing industry infrastructure
Slide 26 of 53
Going Beyond the Barnett
How Applicable is Barnett Shale Experience to Other
Shale Gas Plays?
Do Operators have the Ability to Experiment in Other
Shale Gas Plays?
US & Canada yes
Rest of the World - ?
Slick Water Fracturing Techniques CANNOT be Applied
to Deeper, Higher Temperature Formations
Slide 27 of 53
Barnett, Haynesville, Marcellus, & Others
Haynesville
High pressure, high temperature, large volume fracs
requiring excellent equipment reliability and job execution
Substantial use of Hybrid or Crosslink Frac Designs
Strong potential for proppant pack degradation through
scaling
Barnett, Marcellus
Lower pressures & temperatures, slick water fracs requiring
less technology
Huron
Underpressured reservoir, with best frac results using
minimum water technology fluids & ULW Proppants
New Albany, Chattanooga
Also underpressured, few data points
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Going Beyond the Barnett
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North American Gas Shales
Break Even at 10% Rate of Return
Credit Suisse, 2008
Dec 09
Slide 29 of 53
Activity So Far, Outside the USA and Canada
Germany 3 wells/fracs
Saudi Arabia 3 wells/fracs
Lots of Interest in Continental Europe
NW Poland, SE France
Most at Science Project stage
Some drilling and fracturing planned over the next 2 or 3
years.
Several years away from any major projects
Australia 1 well/frac
India?
Slide 30 of 53
Key Barnett Shale Gas Technologies
Open Hole Horizontal Multi-Zone Fracturing
Horizontal Wells
Allow much greater production from a single wellbore
Open hole allows much better contact between fracture and
wellbore
Multi-Zone Completions
Allow zonal isolation and control of fracture initiation
Rapid stimulation of entire wellbore
Slide 32 of 53
Fracpoint/DirectStimSystem for Multi-
Zone Applications
Slide 33 of 53
DirectStim Frac Sleeve System
LiteProp
TM
LiteProp 108 is neutrally buoyant in a 1.08 SG brine
Low friction pressure (with friction reducers)
No polymer damage
Easy fluid recovery
Low cost fluids
Slide 36 of 53
Benefits:
Simplified BHA
no straddle reqd
no restriction on depth
limits
high frac rates
CT acts as a dead leg
immediate clean-up
no perforating
>300 stages in
Horizontal US and
Canada
Fracturing Treatment Size Trends
38
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
0
1000
2000
3000
4000
5000
6000
7000
8000
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B
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J
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Historical Fracturing Jobs and Fluid Volume
Jobs Avg bbl/job Bbls/mo. Poly. (Jobs) Poly. (Avg bbl/job)
Microseismic
Fisher et al, 2005
Slide 39 of 53
IntelliFrac Service
A Combination of Fracturing and Fracture
Mapping (BHI) Services
Real-Time Control of the Fracture Operation
Ability to Stay Out of Hazards like Faults
Improves Well Spacing
Optimizes Development Program
Reduces Fracturing Costs through Efficiency
Slide 40 of 53
How to Get There Quicker
Understand the Reservoir First
Completion / stimulation best practices
Well problem analysis
Look back studies
Slide 41 of 53
Example Reservoir Study
Barnett Shale
Log
10
Cumulative 1
st
6
months production
All wells
Location
Location
Location
Slide 42 of 53
Well-Equipped Laboratories
Geological Services
Geomechanics
Special Core Analysis
Do the Homework
Slide 43 of 53
Figure II-6
Young's Modulus of Sample 1F (loading segment)
E (3rd) = 196973 psi
E(2nd) = 228717 psi
E (initial) = 101927 psi
E (ave) = 39470 psi
0
200
400
600
800
1000
1200
0.000 0.005 0.010 0.015 0.020
Axial Strain in/in
A
x
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S
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p
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1st loading cycle
(drained)
2nd loading cycle
Undrained
3rd loading cycle
(drained)
Thank you.
Any Questions?