Unconventional Gas Modelling

using CMG’s
Reservoir Simulation Technology
Jim Erdle – VP/USA & LA – Houston

Perth - December 6, 2011

Incorporates slides from Matt Mavor’s 2004 CMG Technical Symposium Presentation
Unconventional Gas Resources

Tight Gas

CBM
Shale Gas

Natural Gas Hydrates

GEM Uses
 Secondary Recovery
 Miscible gas injection (CO2, N2, Sour Gas)
 Gas condensate production with cycling
 GOGD using in naturally fractured reservoirs
 VAPEX heavy oil recovery (isothermal and thermal)
 CBM & Shale Gas Production
 Multi-component desorption/adsorption, diffusion & coal swelling/shrinkage
 CO2 & Acid Gas Sequestration
 Oil reservoirs, Saline aquifers & Coal beds
 Geochemical reactions
 Asphaltene modelling during primary and secondary recovery
 Precipitation, Flocculation, Deposition & Plugging
 Naturally Fractured Reservoirs
 Dual Porosity (DP), Dual Permeability (DK), SubDomain (SD), MINC & SD-DK
 Hydraulically fractured wells with non-Darcy flow & Compaction
 Single Plane Fracs (Vertical & Horizontal Wells)
 Complex Fracture Networks (Shale Gas Wells)
 Coupled Surface Facilities
 GAP & FORGAS
 Coupled Geomechanics
 GEOMECH
GEM Uses Shale Gas
 Secondary Recovery
 Miscible gas injection (CO2, N2, Sour Gas)
 Gas condensate production with cycling
 GOGD using in naturally fractured reservoirs
 VAPEX heavy oil recovery (isothermal and thermal)
 CBM & Shale Gas Production
 Multi-component desorption/adsorption, diffusion & coal swelling/shrinkage
 CO2 & Acid Gas Sequestration
 Oil reservoirs, Saline aquifers & Coal beds
 Geochemical reactions
 Asphaltene modelling during primary and secondary recovery
 Precipitation, Flocculation, Deposition & Plugging
 Naturally Fractured Reservoirs
 Dual Porosity (DP), Dual Permeability (DK), SubDomain (SD), MINC & SD-DK
 Hydraulically fractured wells with non-Darcy flow & Compaction
 Single Plane Fracs (Vertical & Horizontal Wells)
 Complex Fracture Networks (Shale Gas Wells)
 Coupled Surface Facilities
 GAP & FORGAS
 Coupled Geomechanics
 GEOMECH
Shale Gas

Natural Gas stored in organic rich rocks:

Shale

Shaly Siltstone

Shaly Sandstone
 Carbonaceous Shale

A dark-gray or black shale

with significant carbon in the
form of small disseminated
particles or flakes; it is
commonly associated with
coal seams.

(Bates & Jackson: Glossary of Geology, 1980)

Shale Gas Flow Schematic
Wellbore
Induced
Fracture
Fracture Porosity

Macro-Porosity

Micro-Porosity

Darcy Flow & Non Darcy &

Pipe
Sorption Diffusion Darcy Flow
Flow
Barnett Shale Location
Barnett Horz vs Vert Well Productivity
Horz Well BHFP HM with GEM
Horz Well Water HM with GEM
Old Way of Modelling Horizontal Shale Gas Wells

Cartesian LGR to represent Frac corridors

Fracture Geometry Scenarios
New way to Model Single Plane Fracs in
Vertical Wells

 2008 BUILDER HF Wizard

 Creates LS-LR grids for accurate
representation of propped
fractures but with reasonable run
times
 Automatically calculates
Forchheimer Equation Beta
Correction and scales proppant
absolute permeability
 Results in excellent match to fine-
grid reference models and
analytical solutions for infinite and
finite conductivity fractures
New way to Model Multiple Single Plane Fracs in
Horizontal Wells

 2009 BUILDER HF Wizard

 Extends 2008 capabilities to multiple single plane propped
fractures in horizontal wells
New Way of Modelling Horizontal Shale Gas Wells

CMG’s LS-LR-DK “Tartan” Grid

for
Modelling “Complex” fracture networks
 CMG’s LS-LR-DK “Tartan” Grid

 LS-LR matrix gridblocks used to explicitly represent main propped

fracture network in the SRVs
 LS-LR-DK gridblocks used to account for different natural fracture
spacings/intensities in the SVR using standard DK fracture element
scaling
 Unrefined DK gridblocks used outside of SVR to represent unpropped (or
closed) natural fractures
Validation of LS-LR-DK Grid Concept

 Multimillon cell Vertical & Horizontal well single

porosity reference models
Complex Fracture Networks modelled Explicitly
 Coarsened models evaluated
Dual Permeability (DK) and MINC without refinement
Logarithmically-Spaced Locally-Refined grids in
SRVs plus Dual Permeability (LS-LR-DK)
Non-Darcy flow Forchheimer number permeability
correction
 Extensions of LS-LR-DK approach tested
Model multi-stage horizontal well re-stimulation
Model stress dependent fracture permeability
LS-LR-DK vs Ref Model (incl. Non-Darcy Flow)

Very Good Agreement at a Fraction of the Run Time/Model Size

 Re-stimulation of Horizontal Well

Green - 0.0001 md Shale

Yellow – 0.001 md-ft Fracture Conduit
Orange - 2.00 md-ft Fracture Conduit
Red - 20 md-ft Propped Fracture Conduit
Black - Horizontal Well Path
After Two Years
Initially Three Stages Stimulated Four More Stages Stimulated


Re-stimulation of Horizontal Well

Very Good Agreement at a Fraction of the Run Time/Model Size

 Stress-Dependent Fracture Permeability

Unpropped Fracture
Compaction Table

1
Conductivity Multiplier

0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2 Propped Fracture
0.1
Compaction Table
0
1000 1500 2000 2500 3000 3500 4000
1
Pressure (psi)

Conductivity Multiplier
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
1000 1500 2000 2500 3000 3500 4000
Pressure (psi)
Stress Dependent Fracture Permeability

Very Good Agreement at a Fraction of the Run Time/Model Size

Complex Fracture Network Creation

 2010 BUILDER Wizard

 Can create SRV from
microseismic data or from
user selection
 Creates LS-LR-DK grid
within SVR
 Shale Gas Modelling Workflow
Demo
from Microseismic to Simulation
Shale Gas History Match - Case Study
Post-processor
Pre-processor Simulator

Rigorous
Frac Stages/MS Representation
Data of Physics

Sensitivity Analysis
History Matching
Optimization
Uncertainty Assessment
Importing Microseismic Data into BUILDER

 Microseismic events can be viewed in 2D and 3D

 Each stage shown in a different color
Importing Microseismic Data into BUILDER

 Ability to create SRV using the MS data in an existing geomodel

 Else, grid can be created automatically around the MS events:
 User is able to rotate and resize grid area
 Easy to align grid along wells and fractures
 Defining SRVs by Frac Stage in BUILDER

 Stimulated Reservoir Volumes

(SRV) can be added by Frac Stage
through hydraulic fracture wizard
 LS-LR Grid automatically created
and fracture properties defined
 Noise can be filtered from
microseismic data by adding
conditions when creating SRV
 Connect disconnected blocks so
there is a path to well from each
stimulated block
 Number of Events
 Magnitude
 Confidence
3D Stimulated Reservoir Volume
 Pressure Profile in SRV

 Fracture width & property pseudoization gives accurate

results with reasonable run times by using fewer grid
blocks
Pressure Transients around The HFs

 Logarithmic spaced grids around the fractures

captures the pressure transients around the HFs
 Base Case Results
Water Production
10,000 120

100
8,000

 Initial model with assumed values does

Water Rate SC - Daily (m3/day)

Cumulative Water SC (m3)
80
6,000

60

not match historical production data 4,000

40

2,000
20

 Too much gas produced 0

2009-4 2009-7 2009-10 2010-1
Time (Date)
0

Cumulative Water SC - Simulation

Cumulative Water SC - Production History

 Not enough water produced

Water Rate SC - Simulation
Water Rate SC - Production History

Gas Production
1.00e+8 8.00e+5
Gas Rate SC - Daily (m3/day)

8.00e+7
Cumulative Gas SC (m3)

6.00e+5

6.00e+7
4.00e+5
4.00e+7

2.00e+5
2.00e+7

0.00e+0 0.00e+0
2009-4 2009-7 2009-10 2010-1
Time (Date)
Cumulative Gas SC - Simulation
Cumulative Gas SC - Production History
Gas Rate SC - Simulation
Gas Rate SC - Production History
Sensitivity Analysis using CMOST

 Reservoir parameter uncertainty

Fracture Permeability
Fracture Width
Pressure Dependent Permeability of Fracture (CROCKTAB)
Langmuir Adsorption parameters
Diffusivity
Initial Water Saturation in Fractures (to model water from
the HF fluid)
Sensitivity Analysis using CMOST
History Match Error Reduction

 Objective Function Error Reduced from 55% to 1.4%

 History Match – Final Results

 History match error reduced from 55% to 1.4%

Final Gas Rate Match error = 0.70%
Final Water Rate Match error = 2.13%
 Total Calendar Time to complete HM = 25 hrs
Man Time = 10 hrs
Computing Time = 15 hrs
 using 2 CPU’s/Job and running 8 concurrent Jobs

Langmuir Maximum Initial Water

Rock Fracture Fracture Fracture
Diffusivity Adsorption Adsorption Saturation
Parameter Compaction 2 Width Permeability Conductivity
(cm /s) Constant Mass in Propped
Table Shift (m) (mD) (mD-m)
(1/kPa) (gmol/kg) Fractures
Initial 1.0000 0.0006 7.20E-05 0.055 0.00200 30000 60.0 0.20
Final 1.0833 0.0006 6.00E-05 0.020 0.00233 9500 22.1 0.45
 History Match – Final Results
Gas Production Water Production
1.00e+8 6.00e+5 12,000 140

120
5.00e+5 10,000
8.00e+7

Water Rate SC - Daily (m3/day)

Gas Rate SC - Daily (m3/day)
100

Cumulative Water SC (m3)

Cumulative Gas SC (m3)

4.00e+5 8,000
6.00e+7
80

3.00e+5 6,000

60
4.00e+7
2.00e+5 4,000
40

2.00e+7
1.00e+5 2,000
20

0.00e+0 0.00e+0 0 0
2009-4 2009-7 2009-10 2010-1 2009-4 2009-7 2009-10 2010-1
Time (Date) Time (Date)
Cumulative Gas SC - Production History Cumulative Water SC - Production History
Cumulative Gas SC - Simulation Cumulative Water SC - Simulation
Gas Rate SC - Production History Water Rate SC - Production History
Gas Rate SC - Simulation Water Rate SC - Simulation
Thank You!

Any Questions?
IMEX Uses
 Primary recovery
 Black Oil & Volatile Oil
 Dry & Wet Gas
 Gas Condensate
 Secondary recovery
 Waterflooding
 Polymer Flooding
 Dry Gas Injection
 GOGD in naturally fractured reservoirs
 WAG
 Pseudo-miscible Displacement
 Gas Storage
 Naturally Fractured Reservoirs
 Dual Porosity (DP), Dual Permeability (DK), SubDomain (SD), MINC & SD-DK
 Hydraulically fractured wells with non-Darcy flow & Compaction
 Single Plane Fracs (Vertical & Horizontal Wells)
 Complex Fracture Networks (Shale Gas Wells)
 Coupled Surface Facilities Modelling
 GAP, FORGAS, METTE & Avocet IAM
IMEX Uses Tight Gas
 Primary recovery
 Black Oil & Volatile Oil
 Dry & Wet Gas
 Gas Condensate
 Secondary recovery
 Waterflooding
 Polymer Flooding
 Dry Gas Injection
 GOGD in naturally fractured reservoirs
 WAG
 Pseudo-miscible Displacement
 Gas Storage
 Naturally Fractured Reservoirs
 Dual Porosity (DP), Dual Permeability (DK), SubDomain (SD), MINC & SD-DK
 Hydraulically fractured wells with non-Darcy flow & Compaction
 Single Plane Fracs (Vertical & Horizontal Wells)
 Complex Fracture Networks (Shale Gas Wells)
 Coupled Surface Facilities Modelling
 GAP, FORGAS, METTE & Avocet IAM
STARS Uses
 Chemical EOR
 Emulsions, Gels, Foams
 ASP. SP, ASG
 MEOR
 LoSAL
 Brightwater
 Thermal EOR
 Hot water
 Steam flood & cycling
 SAGD & ES-SAGD
 Combustion (LTO & HTO)
 ISC of Oil Shale
 Naturally Fractured Reservoirs
 Dual Porosity (DP), Dual Permeability (DK), SubDomain (SD), MINC & SD-DK
 Cold Heavy Oil Recovery (CHOPS)
 Natural Gas Hydrates
 Complex Thermal Wellbore Configurations
 Discretized Wells (transient, segregated flow of steam and bitumen in single tubing horizontal wells)
 FlexWells (transient, segregated flow of steam and bitumen in multiple tubing, undulating wells)
 Coupled Geomechanics
 GEOMECH
STARS Uses Natural Gas Hydrates
 Chemical EOR
 Emulsions, Gels, Foams
 ASP. SP, ASG
 MEOR
 LoSAL
 Brightwater
 Thermal EOR
 Hot water
 Steam flood & cycling
 SAGD & ES-SAGD
 Combustion (LTO & HTO)
 ISC of Oil Shale
 Naturally Fractured Reservoirs
 Dual Porosity (DP), Dual Permeability (DK), SubDomain (SD), MINC & SD-DK
 Cold Heavy Oil Recovery (CHOPS)
 Natural Gas Hydrates
 Complex Thermal Wellbore Configurations
 Discretized Wells (transient, segregated flow of steam and bitumen in single tubing horizontal wells)
 FlexWells (transient, segregated flow of steam and bitumen in multiple tubing, undulating wells)
 Coupled Geomechanics
 GEOMECH