1-2 3-5
page
CELEBRATING
of TECHNICAL EXCELLENCE
1973 - 2013
Since its inception in 1973, Fekete
has been at the leading edge of
reservoir engineering research. As
2013 marks our 40th year of technical
excellence, we will be kicking off our
anniversary year with the release of
our brand-new website. We will also
be giving away DVD’s that include
technical resources such as our
published papers and technical video
series at the upcoming 2012 ATCE.
Be sure to check out our YouTube
channel,
youtube.com/user/feketesoftware,
for additional video resources.
We hope you will join us in
celebrating Fekete’s 40 years of
technical excellence!
Copyright © 2012 Fekete Associates Inc. Printed in Canada
CONGRATULATIONS
Louis Mattar has been recognized as a SPE Distinguished
Member for 2012. Congratulations Louis!
6
Community of Best Practice
UPDATE
We are pleased to announce that the Eagle
Ford Community of Best Practice continues
to grow. Formed in October, 2011 by Fekete
with Newfield, El Paso, Murphy, Conoco,
Talisman, and Pioneer, the Community has
since added Plains Exploration, Shell, and
Marathon as members.
A number of resources have been developed
to help Community members. Many of our
initial findings were delivered at the March
mid-year conference, and data updates and
improved completions and operations
information is being distributed to
Community members as we continue to
identify common challenges across the play.
Fekete has recorded a range of webinars,
complemented by one-on-one
conversations with Fekete engineers. This is
part of a learning management strategy to
assist with the onboarding of engineers new
to the Eagle Ford.
A key opportunity for the Community to learn
and to identify common challenges is taking
place in Houston in September. This is the
Community of Best Practice Annual
Conference—the first such conference for
the Eagle Ford Community. Members will
listen to new findings, review work
completed since the mid-year conference,
and discuss the Community’s direction for
the next six-month cycle.
Connect with us to start discussing how the
IN MEMORY
This newsletter is dedicated to the memory of our
respected colleague Brian Tegart.
VISIT FEKETE AT BOOTH 850
Community of Best Practice can benefit
your development program. As part of a
Community, you’ll face challenges with an
expanding team of top performing reservoir
engineers that, like you, will have access to
broader industry findings to develop
improved solutions.
For information regarding the Eagle Ford
Community of Best Practice, or any of the
other Communities that are currently
forming, please contact
community@fekete.com.
As we go into development, it is critical
that we share in the collective knowledge
with other Eagle Ford operators as well
as benefit from the evaluation expertise
that Fekete offers. This will accelerate
our advancement up the learning curve
and, ultimately, maximize the value of
our assets
Martha McGuire, Reservoir Engineering Lead,
Newfield Exploration
news
46
page
Using Fekete Software to
Analyze Oil
Fall 2012
news
Engineering & Business News from Fekete Associates Inc.
Using Fekete Software to Analyze Oil
Evaluate Liquids-Rich Plays Including Conventional Oil, Tight / Shale Oil
and Gas Condensates
Dave Anderson, P. Eng.
VP Software Technical Development
Fekete is well known for its expertise and software for evaluating,
analyzing and optimizing natural gas reservoirs, wells and gathering
systems. What many of our clients don’t realize is that Fekete also has
much to offer in the evaluation of liquids-rich plays, including
conventional oil, tight/shale oil and gas condensates. Furthermore, we
are continually developing new and improved tools for analysis of
unconventional oil and liquids-rich plays.
There are two major areas where Fekete software can provide assistance
in the analysis of oil:
1. Rate Transient Analysis of unconventional (tight) oil and
liquids-rich gas plays
2. Analysis and surveillance of conventional oil plays
Rate and Pressure Transient Analysis of Tight and Shale Oil
(F.A.S.T. RTA™ and F.A.S.T. WellTest™)
Many of the PTA and RTA methods (type curves, flowing material
balance and analytical models) that have become popular for gas wells
over the past 10 years were actually developed using the assumption of
page
Practical Pointers and Rules of Thumb Celebrating 40 Years of Technical Excellence
for RTA of Unconventional Plays Community of Best Practice Update
ATCE 2012
single phase oil flow in the reservoir. In conventional oil reservoirs, this
assumption is usually invalid as reservoir pressure drops rapidly during
single phase flow and the reservoir quickly develops a gas saturation.
However, in low permeability reservoirs, transient flow may last for
months or even years, during which produced GOR’s tend to remain
relatively constant, and the assumption of single phase flow has been
shown to remain valid. This means we can use all the standard RTA
techniques on a wide variety of tight/shale oil plays and obtain reliable
results.
Fall 2012
In cases where multi-phase flow cannot be ignored, F.A.S.T. RTA™
and F.A.S.T. WellTest™ are equipped with new and improved gridded
numerical models. These models are easy to use and provide reliable
results, consistent with a commercial reservoir simulator (but in a
1 2
fraction of the time). Fekete’s numerical models are ideal for history Oil Material Balance
matching and forecasting both conventional and unconventional oil The Oil Material Balance feature in F.A.S.T. DeclinePlus™ contains
wells that are on primary recovery. powerful diagnostic plots to help identify drive indices as well as
history match plots for static measured pressures. The model can
handle volumetric, gas-cap, overpressured and volatile oil systems.
Conventional Oil Production Analysis and Waterflood
Surveillance (F.A.S.T. DeclinePlus™)
Waterflood Surveillance
With the current high price of oil, many E&P companies are Waterflood analysts can use the Surveillance module in F.A.S.T.
returning to their conventional oil assets to re-evaluate and optimize DeclinePlus™ to generate Hall Plots and Voidage Replacement Ratio
EOR schemes. F.A.S.T. DeclinePlus™ offers a variety of powerful
(VRR) analyses. The Hall plot is a simple but powerful tool that
tools, fully integrated into the Fekete Harmony™ environment, to analyzes steady-state flow at an injection well. The VRR analysis
assist with this process.
assists in optimizing different regions of the field in order to reach or
maintain voidage replacement targets.
Type Well Analysis
Analysts can quickly identify P90, P50 and P10 production profiles
for statistical well groupings with this powerful feature. They can
then create type-well decline curves to be used for new locations.
Ratio Forecasting
F.A.S.T. DeclinePlus™ provides several convenient ratio forecasts,
including WOR, WOR+1 and GOR. Ratio forecasting allows the oil
forecast limit to be controlled by a pre-defined watercut, or allows
the oil forecast itself to be determined based on a total liquid rate
and water-oil ratio.
news
Visit fekete.com to learn more about using Fekete software to
evaluate liquids-rich plays.

CELEBRATING
of TECHNICAL EXCELLENCE
1973 - 2013
Since its inception in 1973, Fekete
has been at the leading edge of
reservoir engineering research. As
2013 marks our 40th year of technical
excellence, we will be kicking off our
anniversary year with the release of
our brand-new website. We will also
be giving away DVD’s that include
technical resources such as our
published papers and technical video
series at the upcoming 2012 ATCE.
Be sure to check out our YouTube
channel,
youtube.com/user/feketesoftware,
for additional video resources.
We hope you will join us in
celebrating Fekete’s 40 years of
technical excellence!
Copyright © 2012 Fekete Associates Inc. Printed in Canada
CONGRATULATIONS
Louis Mattar has been recognized as a SPE Distinguished
Member for 2012. Congratulations Louis!
Community of Best Practice
UPDATE
We are pleased to announce that the Eagle
Ford Community of Best Practice continues
to grow. Formed in October, 2011 by Fekete
with Newfield, El Paso, Murphy, Conoco,
Talisman, and Pioneer, the Community has
since added Plains Exploration, Shell, and
Marathon as members.
A number of resources have been developed
to help Community members. Many of our
initial findings were delivered at the March
mid-year conference, and data updates and
improved completions and operations
information is being distributed to
Community members as we continue to
identify common challenges across the play.
Fekete has recorded a range of webinars,
complemented by one-on-one
conversations with Fekete engineers. This is
part of a learning management strategy to
assist with the onboarding of engineers new
to the Eagle Ford.
A key opportunity for the Community to learn
and to identify common challenges is taking
place in Houston in September. This is the
Community of Best Practice Annual
Conference—the first such conference for
the Eagle Ford Community. Members will
listen to new findings, review work
completed since the mid-year conference,
and discuss the Community’s direction for
the next six-month cycle.
Connect with us to start discussing how the
IN MEMORY
This newsletter is dedicated to the memory of our
respected colleague Brian Tegart.
VISIT FEKETE AT BOOTH 850
Community of Best Practice can benefit
your development program. As part of a
Community, you’ll face challenges with an
expanding team of top performing reservoir
engineers that, like you, will have access to
broader industry findings to develop
improved solutions.
For information regarding the Eagle Ford
Community of Best Practice, or any of the
other Communities that are currently
forming, please contact
community@fekete.com.
As we go into development, it is critical
that we share in the collective knowledge
with other Eagle Ford operators as well
as benefit from the evaluation expertise
that Fekete offers. This will accelerate
our advancement up the learning curve
and, ultimately, maximize the value of
our assets
Martha McGuire, Reservoir Engineering Lead,
Newfield Exploration
news
46
1-2 3-5
page
page
Using Fekete Software to
Analyze Oil
Fall 2012
news
Engineering & Business News from Fekete Associates Inc.
Using Fekete Software to Analyze Oil
Evaluate Liquids-Rich Plays Including Conventional Oil, Tight / Shale Oil
and Gas Condensates
Dave Anderson, P. Eng.
VP Software Technical Development
Fekete is well known for its expertise and software for evaluating,
analyzing and optimizing natural gas reservoirs, wells and gathering
systems. What many of our clients don’t realize is that Fekete also has
much to offer in the evaluation of liquids-rich plays, including
conventional oil, tight/shale oil and gas condensates. Furthermore, we
are continually developing new and improved tools for analysis of
unconventional oil and liquids-rich plays.
There are two major areas where Fekete software can provide assistance
in the analysis of oil:
1. Rate Transient Analysis of unconventional (tight) oil and
liquids-rich gas plays
2. Analysis and surveillance of conventional oil plays
Rate and Pressure Transient Analysis of Tight and Shale Oil
(F.A.S.T. RTA™ and F.A.S.T. WellTest™)
Many of the PTA and RTA methods (type curves, flowing material
balance and analytical models) that have become popular for gas wells
over the past 10 years were actually developed using the assumption of
6
page
Practical Pointers and Rules of Thumb Celebrating 40 Years of Technical Excellence
for RTA of Unconventional Plays Community of Best Practice Update
ATCE 2012
single phase oil flow in the reservoir. In conventional oil reservoirs, this
assumption is usually invalid as reservoir pressure drops rapidly during
single phase flow and the reservoir quickly develops a gas saturation.
However, in low permeability reservoirs, transient flow may last for
months or even years, during which produced GOR’s tend to remain
relatively constant, and the assumption of single phase flow has been
shown to remain valid. This means we can use all the standard RTA
techniques on a wide variety of tight/shale oil plays and obtain reliable
results.
Fall 2012
In cases where multi-phase flow cannot be ignored, F.A.S.T. RTA™
and F.A.S.T. WellTest™ are equipped with new and improved gridded
numerical models. These models are easy to use and provide reliable
results, consistent with a commercial reservoir simulator (but in a
1 2
fraction of the time). Fekete’s numerical models are ideal for history Oil Material Balance
matching and forecasting both conventional and unconventional oil The Oil Material Balance feature in F.A.S.T. DeclinePlus™ contains
wells that are on primary recovery. powerful diagnostic plots to help identify drive indices as well as
history match plots for static measured pressures. The model can
handle volumetric, gas-cap, overpressured and volatile oil systems.
Conventional Oil Production Analysis and Waterflood
Surveillance (F.A.S.T. DeclinePlus™)
Waterflood Surveillance
With the current high price of oil, many E&P companies are Waterflood analysts can use the Surveillance module in F.A.S.T.
returning to their conventional oil assets to re-evaluate and optimize DeclinePlus™ to generate Hall Plots and Voidage Replacement Ratio
EOR schemes. F.A.S.T. DeclinePlus™ offers a variety of powerful
(VRR) analyses. The Hall plot is a simple but powerful tool that
tools, fully integrated into the Fekete Harmony™ environment, to analyzes steady-state flow at an injection well. The VRR analysis
assist with this process.
assists in optimizing different regions of the field in order to reach or
maintain voidage replacement targets.
Type Well Analysis
Analysts can quickly identify P90, P50 and P10 production profiles
for statistical well groupings with this powerful feature. They can
then create type-well decline curves to be used for new locations.
Ratio Forecasting
F.A.S.T. DeclinePlus™ provides several convenient ratio forecasts,
including WOR, WOR+1 and GOR. Ratio forecasting allows the oil
forecast limit to be controlled by a pre-defined watercut, or allows
the oil forecast itself to be determined based on a total liquid rate
and water-oil ratio.
news
Visit fekete.com to learn more about using Fekete software to
evaluate liquids-rich plays.
 3
Fall 2012
PRACTICAL POINTERS AND
RULES OF THUMB FOR
RTA of
Unconventional
Plays
Dave Anderson, P. Eng.
VP Software Technical Development
Rate Transient Analysis has gained acceptance over the past 10 years
as a high-tech, yet practical method for understanding and optimizing
well performance and for supporting oil and gas reserves evaluations.
However, it is clear that the application of this technology to
unconventional plays presents significant challenges, primarily due to
the complexity of low permeability, fractured reservoirs and the
uncertainty in even basic reservoir properties such as reservoir
pressure, permeability and net pay. Nevertheless, in the course of
analyzing hundreds of unconventional wells, our technical specialists
have been able to identify several useful pointers and rules of thumb
that can provide valuable guidance for analysts tasked with
conducting RTA on unconventional wells.
Reservoir and PVT Properties
Reservoir Pressure
Let’s start with the basic measurements required for every well
evaluation. The most important of these is reservoir pressure. In
unconventional plays, this is particularly difficult to obtain because
the low permeability of the rock inhibits achieving a stabilized
pressure on a buildup test. A practical alternative is to conduct a
pre-completion DFIT (diagnostic fracture injection test), which will
provide a reliable reservoir pressure for very little time and cost. In
the absence of a measured initial pressure, using a pore pressure
gradient from an analog well is acceptable, provided the analog is
from a similar depth and depositional environment.
PVT
PVT (Pressure-Volume-Temperature) data is critical for reliable RTA. In
dry shale gas plays, a basic laboratory gas analysis, yielding gas
gravity and impurities is sufficient. However in rich gas condensate
and oil plays, it is important to obtain a more detailed laboratory PVT
analysis. Reliable downhole samples are difficult and expensive to
collect in deep, low perm environments and therefore most lab work is
done using surface samples. When entering PVT data from a
laboratory analysis, pay particular attention to the recombined
liquid-gas ratio used in the analysis. Ensure that this ratio is
reasonably consistent with the observed production data. In
gas-condensate systems, RTA requires the stock tank gravity of the
condensate and the separator temperature and pressure. The liquids
produced at surface should be mathematically recombined with the
produced gas using a CGR based on the average of the first 1-3
months. In oil systems, the stock tank gravity and bubble point
pressure are required. If reliable PVT data is available, it should be
entered directly as custom tables. If not, the standard oil correlations
can be used to predict oil properties such as formation volume factor,
solution GOR and viscosity.
Geomechanics
In overpressured unconventional plays, geomechanical effects may
be important to well performance; specifically in cases where the
pore pressure gradient exceeds 0.75 psi/ft. In these wells, set initial
formation compressibility to a minimum of 10 microcips (higher
than what the Hall correlation predicts), and set the “gamma” factor,
which controls how permeability and formation compressibility
change with pressure, to a minimum of 1e-5. The value of gamma
to be used in a specific well analysis will often be determined based
on the model history match.
Wellbore Considerations
Tubing versus Annular Pressures
Availability of surface measured rates/pressures is widespread in
unconventional plays. To perform reliable RTA, pressures must be
converted to sandface conditions. In tubingless completions, it is
important to look out for subcritical gas velocity, which will make the
pressure loss calculations much less reliable. If tubing exists without
a packer in place, as is often the case in shale plays such as the
Marcellus, use annular (quiet side) pressures as the source, if
possible. In deeper plays, this may not be possible. A simple plot of
annular (casing) and tubing pressure versus time will indicate whether
or not the annular pressure is in hydraulic communication with the
sandface.
Supercharge Effect
Due to the high volume of frac fluids injected and low rock
permeability, the early production period (may be several months)
may yield calculated sandface pressures that are “supercharged”
(abnormally high). Since RTA does not address the complex physics
of this flow period, it is best to ignore or apply a simple correction to
this data. One option is to simply remove the produced liquid rates
during the early time. In the event that initial pressure is estimated
and not measured, it may be best (and easiest) to shift it upwards to
be consistent with the BHP data.
Artifical Lift
Some unconventional plays use gas lift or downhole pumps to
reduce wellbore pressure loss. In gas lift applications, the produced
and injected gas volumes must be tracked separately in order to
obtain a reliable analysis. In performing BHP calculations, the total
(produced + injected) gas volumes should be used to calculate the
pressure loss through the tubing, whereas only the produced gas
volumes should be used in the actual rate transient plots and
models. Wells equipped with rod pumps require continuous
measurement of annular (casing) pressure and frequent
measurement of annular liquid level (monthly is acceptable, but
daily is better).
Analyzing and Forecasting Unconventional Well Performance
Superposition or Square Root?
Now we’re into the analysis of the sandface data. Specialized linear
flow analysis (consisting of normalized pressure plotted against a
time function) has been observed to be one of the simplest and best
methods of identifying linear flow and extracting key well
performance parameters. But which time function should we use?
Using linear superposition time on the x-axis yields a more accurate
estimate of Asqrt(k) (slope) and FCD’ (y-intercept), than does a
similar plot with square root time on the x-axis. However, the square
root time plot has less bias, and is therefore better for initial flow
regime identification. It is also simpler to identify the minimum
HCPV, based on time-to-end of transient flow, using the Square root
time plot. To maximize analysis value, both plots should be used.
Positive and Negative Intercepts
When generating specialized linear flow plots, we have observed a
wide variety of y-intercept behavior. Some plots exhibit y-intercepts
very near the origin, while some are significantly positive or negative.
It is tempting to attribute intercept behavior directly to some sort of
reservoir response. However, the analyst should first rule out simple
data issues. For example, if the “supercharge” effect (previously
introduced) is present in the data, a negative intercept will often be
exhibited. Once data quality has been validated, the specialized plot
intercept can be attributed to the “condition” of fractures in the
reservoir. A zero intercept is indicative of linear flow from matrix into
an infinitely conductive fracture (or connected fracture network). A
positive intercept indicates some kind of apparent skin that inhibits the
full productivity of the fracture system. It may be inclusive of low
fracture conductivity, fracture face skin, convergence, non-darcy flow,
and/or proppant embedment, among others. In contrast, a negative
intercept suggests that the fracture has been enhanced, and not
damaged. One explanation of this is a planar fracture with “hair” or
small branches that extend orthogonally to the primary fracture plane,
created through shear failure of the rock during leakoff in hydraulic
fracturing.
Modeling and Automatic Parameter Estimation
Models provide a validation of your interpretation and a basis from
which to forecast production and predict ultimate recovery. When
choosing a model, pick the simplest model that is able to
accurately history match the measured data while maintaining basic
“believability” in its geometry and reservoir characteristics. The
analytical Horizontal Multi-frac Uniform model is suitable in a wide
variety of cases. To obtain the best possible history match, use
Automatic Parameter Estimation, but on as few simultaneous
parameters as possible. The trick is figuring out which
parameters must remain anchored in order to obtain a unique
result. Since “xfsqrt(k)” is usually a known value from well
performance, it is not a good idea to apply APE on both xf and k
simultaneously. Repeatable, consistent results can be obtained
by anchoring xf, based on the minimum contacted HCPV and
applying APE to k and FCD to obtain the optimum solution.
History Matching to the “Texture” of the Data
When history matching with models, pay close attention to
operational changes such as choke changes and well shut-ins,
especially if the data is of good quality. These events can often
be matched better by adjusting geomechanical parameters or
invoking time dependent skin. In the Haynesville, for example,
these events have provided “texture” to the history match,
releasing information that would not have otherwise been
available from simpler diagnostic plots.
Final Thoughts
Obtaining reliable results from RTA is difficult and requires
skill and experience. The rules of thumb provided here are not
a replacement for that skill and experience, but they can point
you in the right direction and save you time when evaluating
your unconventional well performance data. Fekete offers
technical and practical, hands-on workshops for RTA of
unconventional plays using our Fekete Harmony™, F.A.S.T.
news
RTA™ and F.A.S.T. DeclinePlus™ software.
For more information visit us at fekete.com or call us at
403.213.4200 or toll-free within North America at
1.800.625.2488.
5
 3
Fall 2012
PRACTICAL POINTERS AND
RULES OF THUMB FOR
RTA of
Unconventional
Plays
Dave Anderson, P. Eng.
VP Software Technical Development
Rate Transient Analysis has gained acceptance over the past 10 years
as a high-tech, yet practical method for understanding and optimizing
well performance and for supporting oil and gas reserves evaluations.
However, it is clear that the application of this technology to
unconventional plays presents significant challenges, primarily due to
the complexity of low permeability, fractured reservoirs and the
uncertainty in even basic reservoir properties such as reservoir
pressure, permeability and net pay. Nevertheless, in the course of
analyzing hundreds of unconventional wells, our technical specialists
have been able to identify several useful pointers and rules of thumb
that can provide valuable guidance for analysts tasked with
conducting RTA on unconventional wells.
Reservoir and PVT Properties
Reservoir Pressure
Let’s start with the basic measurements required for every well
evaluation. The most important of these is reservoir pressure. In
unconventional plays, this is particularly difficult to obtain because
the low permeability of the rock inhibits achieving a stabilized
pressure on a buildup test. A practical alternative is to conduct a
pre-completion DFIT (diagnostic fracture injection test), which will
provide a reliable reservoir pressure for very little time and cost. In
the absence of a measured initial pressure, using a pore pressure
gradient from an analog well is acceptable, provided the analog is
from a similar depth and depositional environment.
PVT
PVT (Pressure-Volume-Temperature) data is critical for reliable RTA. In
dry shale gas plays, a basic laboratory gas analysis, yielding gas
gravity and impurities is sufficient. However in rich gas condensate
and oil plays, it is important to obtain a more detailed laboratory PVT
analysis. Reliable downhole samples are difficult and expensive to
collect in deep, low perm environments and therefore most lab work is
done using surface samples. When entering PVT data from a
laboratory analysis, pay particular attention to the recombined
liquid-gas ratio used in the analysis. Ensure that this ratio is
reasonably consistent with the observed production data. In
gas-condensate systems, RTA requires the stock tank gravity of the
condensate and the separator temperature and pressure. The liquids
produced at surface should be mathematically recombined with the
produced gas using a CGR based on the average of the first 1-3
months. In oil systems, the stock tank gravity and bubble point
pressure are required. If reliable PVT data is available, it should be
entered directly as custom tables. If not, the standard oil correlations
can be used to predict oil properties such as formation volume factor,
solution GOR and viscosity.
Geomechanics
In overpressured unconventional plays, geomechanical effects may
be important to well performance; specifically in cases where the
pore pressure gradient exceeds 0.75 psi/ft. In these wells, set initial
formation compressibility to a minimum of 10 microcips (higher
than what the Hall correlation predicts), and set the “gamma” factor,
which controls how permeability and formation compressibility
change with pressure, to a minimum of 1e-5. The value of gamma
to be used in a specific well analysis will often be determined based
on the model history match.
Wellbore Considerations
Tubing versus Annular Pressures
Availability of surface measured rates/pressures is widespread in
unconventional plays. To perform reliable RTA, pressures must be
converted to sandface conditions. In tubingless completions, it is
important to look out for subcritical gas velocity, which will make the
pressure loss calculations much less reliable. If tubing exists without
a packer in place, as is often the case in shale plays such as the
Marcellus, use annular (quiet side) pressures as the source, if
possible. In deeper plays, this may not be possible. A simple plot of
annular (casing) and tubing pressure versus time will indicate whether
or not the annular pressure is in hydraulic communication with the
sandface.
Supercharge Effect
Due to the high volume of frac fluids injected and low rock
permeability, the early production period (may be several months)
may yield calculated sandface pressures that are “supercharged”
(abnormally high). Since RTA does not address the complex physics
of this flow period, it is best to ignore or apply a simple correction to
this data. One option is to simply remove the produced liquid rates
during the early time. In the event that initial pressure is estimated
and not measured, it may be best (and easiest) to shift it upwards to
be consistent with the BHP data.
Artifical Lift
Some unconventional plays use gas lift or downhole pumps to
reduce wellbore pressure loss. In gas lift applications, the produced
and injected gas volumes must be tracked separately in order to
obtain a reliable analysis. In performing BHP calculations, the total
(produced + injected) gas volumes should be used to calculate the
pressure loss through the tubing, whereas only the produced gas
volumes should be used in the actual rate transient plots and
models. Wells equipped with rod pumps require continuous
measurement of annular (casing) pressure and frequent
measurement of annular liquid level (monthly is acceptable, but
daily is better).
Analyzing and Forecasting Unconventional Well Performance
Superposition or Square Root?
Now we’re into the analysis of the sandface data. Specialized linear
flow analysis (consisting of normalized pressure plotted against a
time function) has been observed to be one of the simplest and best
methods of identifying linear flow and extracting key well
performance parameters. But which time function should we use?
Using linear superposition time on the x-axis yields a more accurate
estimate of Asqrt(k) (slope) and FCD’ (y-intercept), than does a
similar plot with square root time on the x-axis. However, the square
root time plot has less bias, and is therefore better for initial flow
regime identification. It is also simpler to identify the minimum
HCPV, based on time-to-end of transient flow, using the Square root
time plot. To maximize analysis value, both plots should be used.
Positive and Negative Intercepts
When generating specialized linear flow plots, we have observed a
wide variety of y-intercept behavior. Some plots exhibit y-intercepts
very near the origin, while some are significantly positive or negative.
It is tempting to attribute intercept behavior directly to some sort of
reservoir response. However, the analyst should first rule out simple
data issues. For example, if the “supercharge” effect (previously
introduced) is present in the data, a negative intercept will often be
exhibited. Once data quality has been validated, the specialized plot
intercept can be attributed to the “condition” of fractures in the
reservoir. A zero intercept is indicative of linear flow from matrix into
an infinitely conductive fracture (or connected fracture network). A
positive intercept indicates some kind of apparent skin that inhibits the
full productivity of the fracture system. It may be inclusive of low
fracture conductivity, fracture face skin, convergence, non-darcy flow,
and/or proppant embedment, among others. In contrast, a negative
intercept suggests that the fracture has been enhanced, and not
damaged. One explanation of this is a planar fracture with “hair” or
small branches that extend orthogonally to the primary fracture plane,
created through shear failure of the rock during leakoff in hydraulic
fracturing.
Modeling and Automatic Parameter Estimation
Models provide a validation of your interpretation and a basis from
which to forecast production and predict ultimate recovery. When
choosing a model, pick the simplest model that is able to
accurately history match the measured data while maintaining basic
“believability” in its geometry and reservoir characteristics. The
analytical Horizontal Multi-frac Uniform model is suitable in a wide
variety of cases. To obtain the best possible history match, use
Automatic Parameter Estimation, but on as few simultaneous
parameters as possible. The trick is figuring out which
parameters must remain anchored in order to obtain a unique
result. Since “xfsqrt(k)” is usually a known value from well
performance, it is not a good idea to apply APE on both xf and k
simultaneously. Repeatable, consistent results can be obtained
by anchoring xf, based on the minimum contacted HCPV and
applying APE to k and FCD to obtain the optimum solution.
History Matching to the “Texture” of the Data
When history matching with models, pay close attention to
operational changes such as choke changes and well shut-ins,
especially if the data is of good quality. These events can often
be matched better by adjusting geomechanical parameters or
invoking time dependent skin. In the Haynesville, for example,
these events have provided “texture” to the history match,
releasing information that would not have otherwise been
available from simpler diagnostic plots.
Final Thoughts
Obtaining reliable results from RTA is difficult and requires
skill and experience. The rules of thumb provided here are not
a replacement for that skill and experience, but they can point
you in the right direction and save you time when evaluating
your unconventional well performance data. Fekete offers
technical and practical, hands-on workshops for RTA of
unconventional plays using our Fekete Harmony™, F.A.S.T.
news
RTA™ and F.A.S.T. DeclinePlus™ software.
For more information visit us at fekete.com or call us at
403.213.4200 or toll-free within North America at
1.800.625.2488.
5
 3
Fall 2012
PRACTICAL POINTERS AND
RULES OF THUMB FOR
RTA of
Unconventional
Plays
Dave Anderson, P. Eng.
VP Software Technical Development
Rate Transient Analysis has gained acceptance over the past 10 years
as a high-tech, yet practical method for understanding and optimizing
well performance and for supporting oil and gas reserves evaluations.
However, it is clear that the application of this technology to
unconventional plays presents significant challenges, primarily due to
the complexity of low permeability, fractured reservoirs and the
uncertainty in even basic reservoir properties such as reservoir
pressure, permeability and net pay. Nevertheless, in the course of
analyzing hundreds of unconventional wells, our technical specialists
have been able to identify several useful pointers and rules of thumb
that can provide valuable guidance for analysts tasked with
conducting RTA on unconventional wells.
Reservoir and PVT Properties
Reservoir Pressure
Let’s start with the basic measurements required for every well
evaluation. The most important of these is reservoir pressure. In
unconventional plays, this is particularly difficult to obtain because
the low permeability of the rock inhibits achieving a stabilized
pressure on a buildup test. A practical alternative is to conduct a
pre-completion DFIT (diagnostic fracture injection test), which will
provide a reliable reservoir pressure for very little time and cost. In
the absence of a measured initial pressure, using a pore pressure
gradient from an analog well is acceptable, provided the analog is
from a similar depth and depositional environment.
PVT
PVT (Pressure-Volume-Temperature) data is critical for reliable RTA. In
dry shale gas plays, a basic laboratory gas analysis, yielding gas
gravity and impurities is sufficient. However in rich gas condensate
and oil plays, it is important to obtain a more detailed laboratory PVT
analysis. Reliable downhole samples are difficult and expensive to
collect in deep, low perm environments and therefore most lab work is
done using surface samples. When entering PVT data from a
laboratory analysis, pay particular attention to the recombined
liquid-gas ratio used in the analysis. Ensure that this ratio is
reasonably consistent with the observed production data. In
gas-condensate systems, RTA requires the stock tank gravity of the
condensate and the separator temperature and pressure. The liquids
produced at surface should be mathematically recombined with the
produced gas using a CGR based on the average of the first 1-3
months. In oil systems, the stock tank gravity and bubble point
pressure are required. If reliable PVT data is available, it should be
entered directly as custom tables. If not, the standard oil correlations
can be used to predict oil properties such as formation volume factor,
solution GOR and viscosity.
Geomechanics
In overpressured unconventional plays, geomechanical effects may
be important to well performance; specifically in cases where the
pore pressure gradient exceeds 0.75 psi/ft. In these wells, set initial
formation compressibility to a minimum of 10 microcips (higher
than what the Hall correlation predicts), and set the “gamma” factor,
which controls how permeability and formation compressibility
change with pressure, to a minimum of 1e-5. The value of gamma
to be used in a specific well analysis will often be determined based
on the model history match.
Wellbore Considerations
Tubing versus Annular Pressures
Availability of surface measured rates/pressures is widespread in
unconventional plays. To perform reliable RTA, pressures must be
converted to sandface conditions. In tubingless completions, it is
important to look out for subcritical gas velocity, which will make the
pressure loss calculations much less reliable. If tubing exists without
a packer in place, as is often the case in shale plays such as the
Marcellus, use annular (quiet side) pressures as the source, if
possible. In deeper plays, this may not be possible. A simple plot of
annular (casing) and tubing pressure versus time will indicate whether
or not the annular pressure is in hydraulic communication with the
sandface.
Supercharge Effect
Due to the high volume of frac fluids injected and low rock
permeability, the early production period (may be several months)
may yield calculated sandface pressures that are “supercharged”
(abnormally high). Since RTA does not address the complex physics
of this flow period, it is best to ignore or apply a simple correction to
this data. One option is to simply remove the produced liquid rates
during the early time. In the event that initial pressure is estimated
and not measured, it may be best (and easiest) to shift it upwards to
be consistent with the BHP data.
Artifical Lift
Some unconventional plays use gas lift or downhole pumps to
reduce wellbore pressure loss. In gas lift applications, the produced
and injected gas volumes must be tracked separately in order to
obtain a reliable analysis. In performing BHP calculations, the total
(produced + injected) gas volumes should be used to calculate the
pressure loss through the tubing, whereas only the produced gas
volumes should be used in the actual rate transient plots and
models. Wells equipped with rod pumps require continuous
measurement of annular (casing) pressure and frequent
measurement of annular liquid level (monthly is acceptable, but
daily is better).
Analyzing and Forecasting Unconventional Well Performance
Superposition or Square Root?
Now we’re into the analysis of the sandface data. Specialized linear
flow analysis (consisting of normalized pressure plotted against a
time function) has been observed to be one of the simplest and best
methods of identifying linear flow and extracting key well
performance parameters. But which time function should we use?
Using linear superposition time on the x-axis yields a more accurate
estimate of Asqrt(k) (slope) and FCD’ (y-intercept), than does a
similar plot with square root time on the x-axis. However, the square
root time plot has less bias, and is therefore better for initial flow
regime identification. It is also simpler to identify the minimum
HCPV, based on time-to-end of transient flow, using the Square root
time plot. To maximize analysis value, both plots should be used.
Positive and Negative Intercepts
When generating specialized linear flow plots, we have observed a
wide variety of y-intercept behavior. Some plots exhibit y-intercepts
very near the origin, while some are significantly positive or negative.
It is tempting to attribute intercept behavior directly to some sort of
reservoir response. However, the analyst should first rule out simple
data issues. For example, if the “supercharge” effect (previously
introduced) is present in the data, a negative intercept will often be
exhibited. Once data quality has been validated, the specialized plot
intercept can be attributed to the “condition” of fractures in the
reservoir. A zero intercept is indicative of linear flow from matrix into
an infinitely conductive fracture (or connected fracture network). A
positive intercept indicates some kind of apparent skin that inhibits the
full productivity of the fracture system. It may be inclusive of low
fracture conductivity, fracture face skin, convergence, non-darcy flow,
and/or proppant embedment, among others. In contrast, a negative
intercept suggests that the fracture has been enhanced, and not
damaged. One explanation of this is a planar fracture with “hair” or
small branches that extend orthogonally to the primary fracture plane,
created through shear failure of the rock during leakoff in hydraulic
fracturing.
Modeling and Automatic Parameter Estimation
Models provide a validation of your interpretation and a basis from
which to forecast production and predict ultimate recovery. When
choosing a model, pick the simplest model that is able to
accurately history match the measured data while maintaining basic
“believability” in its geometry and reservoir characteristics. The
analytical Horizontal Multi-frac Uniform model is suitable in a wide
variety of cases. To obtain the best possible history match, use
Automatic Parameter Estimation, but on as few simultaneous
parameters as possible. The trick is figuring out which
parameters must remain anchored in order to obtain a unique
result. Since “xfsqrt(k)” is usually a known value from well
performance, it is not a good idea to apply APE on both xf and k
simultaneously. Repeatable, consistent results can be obtained
by anchoring xf, based on the minimum contacted HCPV and
applying APE to k and FCD to obtain the optimum solution.
History Matching to the “Texture” of the Data
When history matching with models, pay close attention to
operational changes such as choke changes and well shut-ins,
especially if the data is of good quality. These events can often
be matched better by adjusting geomechanical parameters or
invoking time dependent skin. In the Haynesville, for example,
these events have provided “texture” to the history match,
releasing information that would not have otherwise been
available from simpler diagnostic plots.
Final Thoughts
Obtaining reliable results from RTA is difficult and requires
skill and experience. The rules of thumb provided here are not
a replacement for that skill and experience, but they can point
you in the right direction and save you time when evaluating
your unconventional well performance data. Fekete offers
technical and practical, hands-on workshops for RTA of
unconventional plays using our Fekete Harmony™, F.A.S.T.
news
RTA™ and F.A.S.T. DeclinePlus™ software.
For more information visit us at fekete.com or call us at
403.213.4200 or toll-free within North America at
1.800.625.2488.
5

CELEBRATING
of TECHNICAL EXCELLENCE
1973 - 2013
Since its inception in 1973, Fekete
has been at the leading edge of
reservoir engineering research. As
2013 marks our 40th year of technical
excellence, we will be kicking off our
anniversary year with the release of
our brand-new website. We will also
be giving away DVD’s that include
technical resources such as our
published papers and technical video
series at the upcoming 2012 ATCE.
Be sure to check out our YouTube
channel,
youtube.com/user/feketesoftware,
for additional video resources.
We hope you will join us in
celebrating Fekete’s 40 years of
technical excellence!
Copyright © 2012 Fekete Associates Inc. Printed in Canada
CONGRATULATIONS
Louis Mattar has been recognized as a SPE Distinguished
Member for 2012. Congratulations Louis!
Community of Best Practice
UPDATE
We are pleased to announce that the Eagle
Ford Community of Best Practice continues
to grow. Formed in October, 2011 by Fekete
with Newfield, El Paso, Murphy, Conoco,
Talisman, and Pioneer, the Community has
since added Plains Exploration, Shell, and
Marathon as members.
A number of resources have been developed
to help Community members. Many of our
initial findings were delivered at the March
mid-year conference, and data updates and
improved completions and operations
information is being distributed to
Community members as we continue to
identify common challenges across the play.
Fekete has recorded a range of webinars,
complemented by one-on-one
conversations with Fekete engineers. This is
part of a learning management strategy to
assist with the onboarding of engineers new
to the Eagle Ford.
A key opportunity for the Community to learn
and to identify common challenges is taking
place in Houston in September. This is the
Community of Best Practice Annual
Conference—the first such conference for
the Eagle Ford Community. Members will
listen to new findings, review work
completed since the mid-year conference,
and discuss the Community’s direction for
the next six-month cycle.
Connect with us to start discussing how the
IN MEMORY
This newsletter is dedicated to the memory of our
respected colleague Brian Tegart.
VISIT FEKETE AT BOOTH 850
Community of Best Practice can benefit
your development program. As part of a
Community, you’ll face challenges with an
expanding team of top performing reservoir
engineers that, like you, will have access to
broader industry findings to develop
improved solutions.
For information regarding the Eagle Ford
Community of Best Practice, or any of the
other Communities that are currently
forming, please contact
community@fekete.com.
As we go into development, it is critical
that we share in the collective knowledge
with other Eagle Ford operators as well
as benefit from the evaluation expertise
that Fekete offers. This will accelerate
our advancement up the learning curve
and, ultimately, maximize the value of
our assets
Martha McGuire, Reservoir Engineering Lead,
Newfield Exploration
news
46
1-2 3-5
page
page
Using Fekete Software to
Analyze Oil
Fall 2012
news
Engineering & Business News from Fekete Associates Inc.
Using Fekete Software to Analyze Oil
Evaluate Liquids-Rich Plays Including Conventional Oil, Tight / Shale Oil
and Gas Condensates
Dave Anderson, P. Eng.
VP Software Technical Development
Fekete is well known for its expertise and software for evaluating,
analyzing and optimizing natural gas reservoirs, wells and gathering
systems. What many of our clients don’t realize is that Fekete also has
much to offer in the evaluation of liquids-rich plays, including
conventional oil, tight/shale oil and gas condensates. Furthermore, we
are continually developing new and improved tools for analysis of
unconventional oil and liquids-rich plays.
There are two major areas where Fekete software can provide assistance
in the analysis of oil:
1. Rate Transient Analysis of unconventional (tight) oil and
liquids-rich gas plays
2. Analysis and surveillance of conventional oil plays
Rate and Pressure Transient Analysis of Tight and Shale Oil
(F.A.S.T. RTA™ and F.A.S.T. WellTest™)
Many of the PTA and RTA methods (type curves, flowing material
balance and analytical models) that have become popular for gas wells
over the past 10 years were actually developed using the assumption of
6
page
Practical Pointers and Rules of Thumb Celebrating 40 Years of Technical Excellence
for RTA of Unconventional Plays Community of Best Practice Update
ATCE 2012
single phase oil flow in the reservoir. In conventional oil reservoirs, this
assumption is usually invalid as reservoir pressure drops rapidly during
single phase flow and the reservoir quickly develops a gas saturation.
However, in low permeability reservoirs, transient flow may last for
months or even years, during which produced GOR’s tend to remain
relatively constant, and the assumption of single phase flow has been
shown to remain valid. This means we can use all the standard RTA
techniques on a wide variety of tight/shale oil plays and obtain reliable
results.
Fall 2012
In cases where multi-phase flow cannot be ignored, F.A.S.T. RTA™
and F.A.S.T. WellTest™ are equipped with new and improved gridded
numerical models. These models are easy to use and provide reliable
results, consistent with a commercial reservoir simulator (but in a
1 2
fraction of the time). Fekete’s numerical models are ideal for history Oil Material Balance
matching and forecasting both conventional and unconventional oil The Oil Material Balance feature in F.A.S.T. DeclinePlus™ contains
wells that are on primary recovery. powerful diagnostic plots to help identify drive indices as well as
history match plots for static measured pressures. The model can
handle volumetric, gas-cap, overpressured and volatile oil systems.
Conventional Oil Production Analysis and Waterflood
Surveillance (F.A.S.T. DeclinePlus™)
Waterflood Surveillance
With the current high price of oil, many E&P companies are Waterflood analysts can use the Surveillance module in F.A.S.T.
returning to their conventional oil assets to re-evaluate and optimize DeclinePlus™ to generate Hall Plots and Voidage Replacement Ratio
EOR schemes. F.A.S.T. DeclinePlus™ offers a variety of powerful
(VRR) analyses. The Hall plot is a simple but powerful tool that
tools, fully integrated into the Fekete Harmony™ environment, to analyzes steady-state flow at an injection well. The VRR analysis
assist with this process.
assists in optimizing different regions of the field in order to reach or
maintain voidage replacement targets.
Type Well Analysis
Analysts can quickly identify P90, P50 and P10 production profiles
for statistical well groupings with this powerful feature. They can
then create type-well decline curves to be used for new locations.
Ratio Forecasting
F.A.S.T. DeclinePlus™ provides several convenient ratio forecasts,
including WOR, WOR+1 and GOR. Ratio forecasting allows the oil
forecast limit to be controlled by a pre-defined watercut, or allows
the oil forecast itself to be determined based on a total liquid rate
and water-oil ratio.
news
Visit fekete.com to learn more about using Fekete software to
evaluate liquids-rich plays.