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PETE 410 Design Project:

Low-Permeability Well Production Optimization

Final Project Guidelines

The design project is open-ended in the sense that there is no one absolutely unique
and perfect solution. There are multiple goals of the project.
 Demonstrate that you have the knowledge concerning the basic principles of
production engineering.
 Demonstrate that you are able to extend your knowledge using available resources
(books, papers, computer programs, etc.) if it is necessary.
 Demonstrate that you can apply your knowledge in a professional manner to solve
a particular design problem, including realistic constraints.
 Demonstrate that you can learn new concept and approach by reading SPE papers
and other literatures.
 Demonstrate that you can work in a team while preserving your integrity and
taking the personal responsibility for the final product.

 It is expected a professional and exhaustive effort on these problems. As the
"solution" may be open-ended, it will not only grade on the best execution
(presence/lack of technical errors), but will be also considered the approach and
methodology used to solve each problem.
 Lack of consistency and a poor approach will result in penalties. Original ideas,
especially if they are supported by logical arguments, will result in additional

1. Report should not be shorter than 5 pages and not longer than 10 pages
2. Report should have the format as
a. Abstract
b. Problem statement
c. Approach
d. Results, discussion and recommendation
e. Conclusions
f. References if any
1. Using Excel/VBA to program
2. Identify the input and output section
3. Results should be automatically plotted when changing input

Generate a PowerPoint file to summarize the project. The file should be between 7-10
slides including problem definition, background, approach, result and conclusions.

Due Date: Dec. 8

PETE 410 Design project
PETE 410 Design Project
Low-Permeability Well Production Optimization
You are assigned to design a development plan to produce from a gas reservoir that is 640 acres
and has low permeability. Your choices are (1) 16 vertical well, (2) 4 bi-wing fractured vertical
well, and (3) 5 horizontal wells with 20 fractures. Suggested plans are shown in the figure. You
are required:
1. Develop a program for well productivity and production rate for each case
2. Evaluate the economic benefit for each plan and recommend the one that is the best

Gas specific gravity (air=1) 0.75
Reservoir temperature 180 ˚F
Average viscosity (with respect to gas) 0.02 cp
Average Z value 0.90
Initial reservoir pressure 4613 psia
Average reservoir pressure 4120 psia/decline: 0.5 psi/MMscf
Depth 8000 ft
Net pay thickness 155 ft
Total drainage area 640 acres
Porosity 0.05
for IPR calculations use well radius 0.328 ft
formation permeability (with respect to gas) 0.01 md
Minimum bottomhole flowing pressure 2500 psi
Total Compressibility 1.5x10-5 1/psi
Pre-treatment skin 10
Required minimum tubinghead pressure 125 psig
Wellbore radius 0.328 ft
Tubing diameter 2.875 in
Available Proppant 150,000 lbm for vertical well / 100,000 lbm for each
stage in horizontal well multiple fracturing
proppant specific gravity 2.65 (water=1)
proppant pack porosity 0.38
proppant pack permeability 1 Darcy
Suggested CfD,opt 2
Fracture fluid viscosity Up to 100 cp
Poisson ratio 0.2
Young modulus 7.4105 psi
max slurry injection rate Up to 80 bpm
max proppant in slurry Up to 6 ppg
Leakoff coefficient in the net pay 0.003 ft/min1/2

1. Generate VLP curves for all cases.
2. Case 1: Calculate cumulative production of 16 vertical wells (as shown in scenario 1) for
the first 3 years assuming pseudo-steady state.
3. Case 2: Calculate cumulative production of 4 fractured vertical wells (as shown in
scenario 2).
a. Design your fracture treatment with limitations on proppant mass and pumping
capacity. A suggested CfD,opt value is 2.

PETE 410 Design project

b. Use MFrac to simulate your fracture treatment and compare with part a.
c. Calculate cumulative production of 4 fractured vertical wells for the first 3 years
assuming pseudo-steady state.
4. Case 3: Calculate cumulative production of 5 horizontal wells with 20 fractures (as
shown in scenario 3)
a. Use MFrac to design the fracture treatment for a single fracture.
b. Calculate cumulative production of 5 horizontal wells with multiple fractures for the
first 3 years using Bello & Wattenbarger (2010) mode. Suggested time step is one
5. Estimate economic benefit of the plan for 3 years (do not discount cash flow, using
constrain in pwf and pressure decline)
a. Vertical drilling and completion: $1,000,000
b. Horizontal drilling and completion: $2,000,000
c. Single fracture vertical well: $800,000
d. Single fracture horizontal well: $200,000/stage
e. Operating cost: $1/Mcf
f. Gas price: $3/Mcf

Scenario 1 Scenario 2

Scenario 3

PETE 410 Design project