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SPE 38903
Society of Petroleum Engineers
Advanced Decline Curve Analysis Identifies Fracture Stimulation Potential
E. J. Fetkovich, SPE, Phillips Petroleum Company
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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 b2 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
6394
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.
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‘State 33
East Vacuum
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Fig, 2 Project Area
Fig. |-Description of Layered No-Crossflow Performance 10000 1
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i Fig. 4-State 35 Lease Historical Oil, GOR, and Water Production
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Fig. 3-State 35/East Vacuum Type Log. Major Rock Types Rann
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Fig,
st Vacuum Historical Oil, GOR, and Water ProductionSSPE 38008 ADVANCED DECLINE CURVE ANALYSIS IDENTIFIES FRACTURE STIMULATION POTENTIAL 6
Layered No-Croseow
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