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z= SPE 38903 Society of Petroleum Engineers Advanced Decline Curve Analysis Identifies Fracture Stimulation Potential E. J. Fetkovich, SPE, Phillips Petroleum Company Cay 1957, Soaty ef Palla Engineers. gem at nan rece th SE hr Toric Coe ‘toma cova a sore nari by Beacon) Carers ow pape Sb (rec nan nt nn reo oy Sac Porcine Enger a re ope ‘Sroston ty tw aur The net ar precoder na nce Yt =) {ston ta Gacy of Poroium Engrar, fete, 9 manbers Pope pasesed ot Seems we Be penn rae Soe Come be Sy ois Pema oon wpe ew os rate an 3 Sovesunas enw eToonoss USA movernoseams TO Abstract The following report discusses a decline curve study that was, performed on the Phillips State 35 lease located in Lea County, New Mexico and the resulting fracture stimulation ‘opportunity that was identified at both State 35 and the East Vacuum Grayburg San Andres Unit (EVGSAU). This study ‘emphasizes the use of fundamental reservoir engineering techniques to identify differential depletion and an ‘opportunity to increase production and reserves through stimulation of the low permeability layer. Application of the technique known as Decline Curve Analysis to each well in the State 35 lease allowed for the determination of differential depletion occurring between the two major reservoir packages, the Upper and Lower San Andres formations. Stimulations of the tighter, Upper San Andres, layer were. performed to improve performance from this layer. Validation of the technology allowed for the work to be continued to EVGSAU. Decline curve concepts, fracture techniques, and production results will be discussed. Introduction Many view oil and gas in West Texas as a generally played cout series of fully developed fields, The only remaining potential is that of waterflood or COs. Although significant ‘opportunity does exist with this technology, there is another technology that presents an opportunity that has not been greaily recognized. This opportunity lies in the recognition of reservoir vertical heterogeneity and its implications to production and ultimate reserves recovery. This vertical heterogeneity is referred to as layered no-crossflow which means that there is no pressure or rate communication 27 anywhere between reservoir layers except at the wellbore (Fig. 1). This layered no-crossflow, differential depletion, behavior becomes important when the layers are depleting at significantly different rates. This situation can be found anytime there isa tight, non productive, layer between productive layers. The non productive layer can be as little as a few feet thick and still provide an effective barrier. Differential depletion can occur between layers because of any one or a combination of permeability, thickness, layer area, porosity, water saturation, pressure, and/or skin. Notice that thickness, layer area, water saturation, and pressure all determine layer volume. Throughout this paper, reference will bbe made to the high versus low permeability layer. This terminology is used in order to remain consistent with previous works on the subject. Although permeability is the most significant, the discussion is really between the high versus low deliverability layers as evidenced by the number of contributing variables. Recognition of the layer(s) that are not being adequately rained compared to the other layer(s), ie. differential depletion, is where the opportunity lies. Stimulation of the less produetive layer(s) can allow for both increased production rates and reserves. Various techniques can be used to identify layered no-crossflow performance such as measuring the pressure of individual layers or running production logs which would show wellbore backflow during shut-ins or rate reductions. Decline Curve Analysis can be used to recognize layered no-crossflow production from surface production data. With this method, data captured for allocation and state reporting requirement is plotted either by well, by lease, or by field in a log-log format. From this format and using the Fetkovich type curve, a determination of whether a well is performing under transient or depletion decline can be established. See Ref. 2 for a discussion of type curve matching, Ifthe production data is determined to be in depletion decline, the data will follow a character that can be described by a decline curve exponent b value. The significance of the decline curve exponent b value is that for single layer performance, the b value will lie between 0 and 0.5. With layered no-crossflow performance, however, the b value can be between 0.5 and 1.0. The further the b 2 EJ. FETKOVICH valve is driven towards a value of 1.0, the more volume that remains in the less productive layer with respect to the more productive layer. Field Overview ‘This decline curve approach was applied at the Philips State 35 and EVGSAU leases located in Lea county, New Mexico, 20 miles northwest of Hobbs (Fig. 2). The Vacuum Field general was discovered in 1929 by Vacuum Oil Company. Phillips began its development in the area in 1938. First production commenced from both leases in 1939. Both leases have experienced in-fill drilling, waterflood, and CO; flood programs. CO, flooding at State 35 began in late 1996. Production is from the San Andres, a dolomite formation with two major depositions, an Upper San Andres and a Lower San, ‘Andres formation, which are separated by the Lovington Sand, a non-productive sandstone. The horizons are located from approximately 4300" (top of Upper San Andres) to 4700" (bottom of Lower San Andres hydrocarbon pay). Additional layers can be described within both the Upper San Andres and Lower San Andres intervals. Fig, 3 shows a typical log, section. State 36 Lease - Production Performance Initial production from the lease commenced in 1938 (Fig 4). Production continued at a top allowable production rate of 600 BOPD until 1983 when the leases were unitized for waterflood, After unitization, wells were released from top allowable which resulted in peak lease oil production 18 months later at rates of 5,000 BOPD, 1,250 MSCFGD, and 1,000 BWPD. A rapid decline in production (a typical layered ‘no-crossflow response) occurred over the next 12 years. There currently are 36 total wells, 29 producers and 6 injectors producing 650 BOPD, 415 MSCFGD, and 10,000 BWPD ‘with 11,000 BWPD injected, Production is through both beam and electric submersible if. East Vacuum Lease - Production Performance East Vacuum has followed a similar, but more extensive development. Initial production from the lease commenced in 1938 (Fig 5). Production continued at a top allowable production rate of 1,500 BOPD until untization in 1978 for Waterflood. ARer unitization, wells were released from top allowable which resulted in peak lease oil production four years later at rates of 16,000 BOPD, 7,200 MSCFGD, and 50,000 BWPD. A gradual decline in production has occurred since. CO, injection commenced in September 1985 which has further curtailed decline from the lease. There currently are 316 total wells, 209 producers, 60 water injectors and 47 WAG injectors producing 7,850 BOPD, 22,000 MSCFGD, and 49,000 BWPD with 60,000 BWPD and 40,000 MSCFGD injected. Production is through both beam and electric submersible lift with some plunger lift and natural flow 628 ‘SPE 38903 Identifying the Opportunity - Reservoir Engineering Techniques The key to maintaining maximum production is through monitoring individual well and total lease performance. The advantage of using production data is that it is readily available since the data is reported to the state. Decline curve, material balance, and backpressure curve analysis techniques use this readily available data. The material balance and backpressure curve techniques are routinely plotted for gas wells since wellhead data can easily be converted to bottom hole or reservoir conditions (or visa versa). The better these techniques can be utilized, the faster opportunities can be identified and exploited. A reservoir engineer that is well versed in the use of these tools can, in many cases, eliminate or significantly reduce costly and time consuming elaborate geologiciteservoir studies. ‘An understanding of layered no-crossflow performance behavior was critical to identifying this opportunity. The significance of decline curve analysis in this study is that it allowed for identification of layered no-crossflow performance using only readily available historical production data. Another significant advantage of decline curve analysis is that the analysis is quick and inexpensive. Decline Curve/Layered No-Crossflow Concepts. Decline Curve Analysis involves the plotting of production data in a rate versus time log-log format and analyzing the graphical character of the data. It is possible for a reservoir to produce under one of two decline methods, transient decline or depletion decline, In transient decline, the boundaries of the reservoir have not been reached and the reservoir is basically producing through fluid expansion. Once the boundaries are reached, the volume of the “tank” is known and depletion decline begins. It is not until the onset of depletion decline, that whatever drive mechanism the reservoir will produce under will become active,’ ‘There are times when the production data is too scattered or erratic to allow for conclusive determination of a single decline curve b value. Smoothing techniques such as 3 or 6 month time averaging have been used very successfully to add better definition tothe character of the data Fig. 6 represents the standard Arps depletion decline curves. Ten curves are shown in the figure. Each curve is described by a b value which ranges from 0 to 1 in increments of 0.1. All of the values have meaning and should be understood in order to apply decline curve analysis properly. ‘The basic depletion decline equations are: For hyperbolic or harmonic decline, 0 | i | 20 i suas | aso | iso | 200 12 639 4 Ed. FETKOVICH ‘SPE 38603 Two oF more reservoirs or reservoir layers producing totally independently to one another, ie. they have their own porosity, permeability, water saturation, reservoir radius, thickness, and skin ‘There is absolutely no communication of pressure or rate anywhere between the reservoirs except atthe wellbore, This vertical heterogeneity is much mote prevalent ‘than is presently realized. Highs presere Iyer ines epced i depletion pf sytem, In waefloods, thins exaly opposite. oe ‘Genealyatbuted with lower perma. Baris Brie Baier Lower pretur laer is mre depleted in depen systam, Te waterfode, thi exactly opie Genet ateated wi higher pera = ak | New ol klahoma | ‘State 33 East Vacuum pts Odessa Texas Fig, 2 Project Area Fig. |-Description of Layered No-Crossflow Performance 10000 1 | i | fone ie State 35/East Vacuum Type Log fae | Gamma Rey/ Porosity Log er] | Elevation: KB=4026 feet wel saan vachoncsa un oT) Well TD: 4800 fest 1000 ! sent gee | at sr, F 100. ~ 1 = 10 10 195) 1960 19 1980 198 HD i Fig. 4-State 35 Lease Historical Oil, GOR, and Water Production + ‘o0:n0 ; 4 3 i k +000 i 2 i ‘on ‘00 Fig. 3-State 35/East Vacuum Type Log. Major Rock Types Rann Labeled Fig, st Vacuum Historical Oil, GOR, and Water Production SSPE 38008 ADVANCED DECLINE CURVE ANALYSIS IDENTIFIES FRACTURE STIMULATION POTENTIAL 6 Layered No-Croseow Beton 05

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