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SPE 57459
Coiled Tubing Ultrashort-Radius Horizontal Drilling in a Gas Storage Reservoir:
A Case Study
E. Kevin Stiles, SPE, CNG Transmission; Mark W. DeRoeun, SPE, Schlumberger IPM; I. Jason Terry, SPE,
Schlumberger Oilfield Services; Steven P. Cornell, Schlumberger-Dowell; Sid J. DuPuy, Schlumberger IPM
Copyright 1999, Society of Petroleum Engineers Inc.
This paper was prepared for presentation at the 1999 SPE Eastern Regional Meeting held in
Charleston, West Virginia, 21–22 October 1999.
This paper was selected for presentation by an SPE Program Committee following review of
information contained in an abstract submitted by the author(s). Contents of the paper, as
presented, have not been reviewed by the Society of Petroleum Engineers and are subject to
correction by the author(s). The material, as presented, does not necessarily reflect any
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Box 833836, Richardson, TX 75083-3836, U.S.A., fax 01-972-952-9435.
Abstract
The subject paper is a review of the philosophy, planning,
execution and results for the first successful Coiled Tubing
Drilling ultra short radius horizontally drilled well into a gas
storage reservoir. The paper will seek to describe the process
and results for the just mentioned areas.
The philosophy behind CTD and the idea of using it
as a tool to enhance gas storage deliverability and the
associated costs are considered. This well achieved an 800%
increase in gas deliverability after sidetracking, as compared
to the original wellbore. The idea of rate of penetration
enhancement is strongly conveyed to help the audience
understand how this drives drilling parameters and hence,
cost.
Planning for CTD operations is discussed and
includes a geological discussion. The use of Coiled Tubing
and the BHA used to perform this operation are discussed.
One tool for several functions drives down cost by reducing
process steps.
Execution of the project from mobilization to
demobilization is briefly discussed as are lessons learned.
Ideas are suggested for further improvement. Some of the
issues identified to date will be much more refined prior to
paper delivery. This is due to the idea that more work is on
the immediate horizon
The first well (KW-34) was re-entered and
sidetracked in September, 1998.
Introduction
Late in 1997, CNG Transmission began making plans to effect
a horizontal drilling project with Coil Tubing as a re-entry of
an existing storage well (Well KW-34) in the South Bend Gas
Storage Reservoir in Armstrong County, PA. The objectives
of the project were two-fold.
1) To demonstrate that an existing gas storage well could be
successfully side-tracked and drilled horizontally with Coiled
Tubing
2) To use available mapping data and State of the Art
openhole logging technology and analysis to plan a horizontal
well course to effect a high-deliverability openhole completion
in the Storage horizon.
This project was deemed to have considerable upside
potential at CNG Transmission. Horizontal sidetracks of
existing wells, if successfully proven to be feasible, would
result in low-cost projects to improve storage field
performance.
Some advantages of employment of this technology
were anticipated to be as follows:
• Pipeline infrastucture/Surface Facilities already in place
• Small-Footprint Drilling Equipment (Coil) - Minimal
Environmental Impact
• Potential to drill Underbalanced (Eliminate risk of
formation damage)
• Potential to drill multi-lateral completions from one
existing wellsite/drilling pad
Storage Field Description/History
The South Bend Storage Field is located in Armstrong and
Indiana Counties, Pennsylvania. It is a depleted-reservoir
storage pool in the 100 Foot Sandstone. The production pool
was discovered in 1922, and was depleted over the next
several decades. Gas Storage operations were commenced in
1951. Compression is provided by South Bend Station, with
six engines delivering 12,000 total horsepower. Maximum
withdrawal rate from the pool is 200 million cubic feet per day
(MMcfd/d), which is station dehydration capacity.
2 E.K. Stiles, M.W. DeRoeun, I.J. Terry, S.P. Cornell, S.J. DuPuy
The field is comprised of 65 wells (61
injection/withdrawal and 4 observation). Reservoir capacity is
17.34 billion cubic feet (BCF), with 5.81 BCF (33.5%) being
turnable top gas.
Geology/Reservoir Description
The South Bend Storage Field is a stratigraphic trap,
meandering, fluvially-deposited reservoir trending NE/SW.
The storage horizon is in the 100 Foot Sand (Upper Devonian
System) and averages approximately 100’ thick, and is located
at an average depth of 1530’. Reservoir extent is 6977 acres.
The sand quality and resultant well deliverability are very
heterogeneous at South Bend, primarily due to the meandering
nature of the channel deposit and resultant changes in facies
and net sand thickness. Twenty percent of the wells at South
Bend make up 75% of the deliverability. The average well test
value at South Bend is 2.6 MMcfd at a delta-pressure squared
of 100,000. Maximum storage pressure at full inventory is 710
psig wellhead (738 psig bottomhole). Permeability derived
from well tests varies widely, from 10 to over 700
millidarcies. Reservoir temperature is 73 degrees Fahrenheit.
Candidate Selection/Well Planning
The objectives of this project were two-fold.
1) To demonstrate that an existing storage well could be
successfully side-tracked and drilled horizontally with Coiled
Tubing
2) To use available mapping data and State of the Art
openhole logging technology and analysis to plan a horizontal
well course to effect a high-deliverability openhole completion
in the Storage horizon.
In order to enhance the chances for success of the
South Bend Project, efficient and economic CTD methods had
to be modeled in order to proceed. It was decided that more
petrophysical information was needed in order to properly
model the drillability of the 100 Foot Sand with CTD
Technology, and to refine the target interval. Since most wells
in the field were “open hole completed”, the first objective
was to clean out the existing wellbore allowing the geologic
target to be re-evaluated with newer and state-of-the-art
technology. An openhole wireline Suite consisting of Hi-
Resolution Litho-Density, Digital Array Sonic, Formation
MicroImager, and Dual Laterallog were implemented to
determine the target zone for directional drilling as well as
mechanical properties for drillability and proper azimuthal
coordinates for well path direction and build rate.
The information derived from logging was utilized to
model the project and drill the well on paper. The regional
dip of the 100 Foot Sand was 3 – 4 degrees dipping to the
SSW at approximately 205 degrees azimuth. The Hi-Res
Density information coupled with the FMI Image data
determined the target porosity to be 14’ thick. The plan was
then to steer the BHA into the targeted zone, traversing the
targeted porosity layer at high angle until a 500’ lateral section
had been achieved.
SPE 57459
The re-entry/sidetracking plan for KW-34 was further
complicated by the fact that a depleted “Thief Zone” existed
above the 100 Foot Sand in the South Bend Field. This
horizon (the Murrysville Sandstone) was found behind pipe in
the candidate well at a depth of 1500’-1612’ MD. The
existing 5 ½” casing in KW-34 was set at 1622’ MD, therefore
an openhole sidetrack from a cement whipstock plug was
mandated, as opposed to the more conventional and error-
proof technique of setting a mechanical whipstock, and
milling a window to initiate sidetracking operations. A
summary of the engineering parameters from the candidate
well is illustrated below.
• Existing Casing- 5 1/2" at 1622'
• PBTD: 1575' (Cement whipstock plug inside 5 1/2
casing-set on 5/28/98)
• Gross Reservoir Depth- 1660'-1732'
• Horizon- 100' Sandstone (Upper Devonian-Channel
deposit)
• Target Depth- 1706'-28'
• Direction- South 25 degrees West (205 degrees)
• KOP- +/- 1645' (off of cement plug in openhole)
The well path was planned to intercept and traverse
the Basal porosity in the 100' Sand as described by the LDT-
CNL.
The well path (azimuthal direction) was supported by
FMI analysis of current direction and bedding profiles, and
was confirmed and supported by CNG’s in-house Isopotential
and Isopach maps.
Candidate Preparation-Phase 1
The Candidate well underwent conventional Coiled Tubing
cleanout (CTCO) operations, openhole logging, and cement
plugback on May 26-28,1999. The well was cleaned out to a
depth of 1760’ with 1 ¾” coil tubing, a 4 ¾” mill, 2 7/8”
motor, and 70 Quality foam as the drilling medium. The well
was then killed with 9.3 ppg brine water, and logging
operations commenced. A logging suite consisting of a
Gamma-Ray (GR) Caliper (CAL) Slimhole Lithodensity
(SLDT) Compensated Neutron (CNL) Dual Laterallog (DLL)
Slimhole FMS (SFMS) and Array Sonic was run from TD to
casing point. Logging tools were broken down and run
separately to compensate for the inadequate amount of rathole
in the existing openhole completion. Coil tubing was then
rigged back up on the well, and plugback operations were
effected through the coil. A cement plug consisting of a 16.0
ppg Class A slurry with 0.75% Fluid loss additive and 3% KCl
was spotted from 1760’ to 1573’. Phase 1 operations were
complete at this point, and equipment was rigged down and
demobilized from location.
Well Plan-Phase 2-Directional Drilling
The well plan for the KW-34 was designed to achieve the
objective of landing a lateral in the defined porosity interval of
the 100’ sand, with the objective of increasing the
SPE 57459 Coiled Tubing Ultrashort-Radius Horizontal Drilling in a Gas Storage Reservoir: A Case Study 3

deliverability and injectivity indices of the well. The selection Steering/BHA Specifications/Drilling Parameters
of the interval was determined by evaluation of the logs
obtained in phase one of the operation. This process was This well was drilled with double articulated steerable mud
described in the preceding candidate selection/well planning motors, a wired MWD telemetry system, and 2 3/8” wired
section. Bearing in mind that the KW-34 well was drilled and coiled tubing. The proposed well path included an openhole
cased in 1922, rotation of a drill string in a well of this vintage sidetrack at 1627’ TVD (true vertical depth). A build rate of
was less than desirable, further validating the selection of the 65 degrees per 100'’to 87 degrees inclination was planned to
CTD process. The well plan for the actual drilling of the intercept the target top at 1714' TVD.
sidetrack section was as follows: Performance of the articulated system was
exceptional and the desired build rates were exceeded. The
• Move in and rig up. highest build rates achieved were 100 degrees/100’ over a five
• Test BOP foot interval. Formation hardness, abrasiveness, and sand to
• Dress cement plug from 1575’ to the KOP of 1627’ (5’ shale laminations affected the actual build rates achieved. The
outside the casing shoe.) hardness and abrasiveness of the formation also adversely
• Run Gyro at 1627’ to determination direction if any. affected bit life. Insert type rock bits were used to drill the
• Drill +/- 30’ until Directional tools were out of the curve and the lateral, and a total of 7 rock bits were used to
original wellbore. Build angle at 75 degrees/100’. drill 290’ of 4 ¾” hole.
• Run Gyro. Continue to build angle until landed in 100’ Hydraulic hole cleaning was efficient, and due to the
sand. Build angle at 75 degrees/100’ and maintain 215 frequent bit trips, short tripping was not required. The well
degree azimuth. was drilled at a 200 psi overbalance pressure (due to lower
• POOH for lateral drilling BHA assembly. than anticipated reservoir inventory), but drilling fluid losses
to the formation were minimal.
• Drill +/- 500’ of lateral.
Due to lower than anticipated ROP (rate of
After the lateral was drilled the plan was to
penetration) and a tight economic ceiling on the project, the
immediately conduct completion operations. This was to be
directional plan was revised mid-well and a lateral length of
accomplished with nitrogen and a smaller (1 ¾”) CT reel.
173.5’ was drilled in the target porosity (1714’-1728’ TVD).
A total of 4.125 days elapsed from the dressing of the cement
CT Drilling Equipment Specifications
plug to the TD and final trip out with the drilling assembly,
prior to CT completion operations. A total of 290’ of 4 ¾”
The coiled tubing used to drill the well was 2 3/8” (2.375”)
hole was drilled (curve plus lateral) with 173.5’ in the target
OD with a 7-conductor cable installed within, the cable
interval.
supplied power to the down hole steering BHA as well as sent
data in “real time” back to surface. The large-pipe reel was
mobilized from the Gulf Coast region with the 2.375” coiled
Completion/Well Testing
tubing aboard and set along side a “bobtail” coiled tubing unit
which powered the hydraulics on the drilling reel. A reel of
Immediately after drilling of the lateral section was concluded,
1.75” “non-wired” coiled tubing was also loaded on the
the CT drilling reel was swapped out for a 1 ¾” CT reel,
“bobtail” unit to be used for other runs where the wired reel
affixed with a jetting nozzle, and run into the well. Nitrogen
was not needed. The coiled tubing unit had an injector head
was pumped at varying rates from 1500 to 3000 standard
capable of pulling /pushing 80,000 lbs (force) and was
cubic-feet per minute (SCFM) while three passes were made
mounted on an elevated substructure / drilling platform which
with the coil tubing and nozzle through the lateral section. The
served as a working platform above the BOP stack and
well was flowed on a 32/64” and 48/64” choke during this
allowed the injector head to be hydraulically moved from over
operation, and flowback/cleanup operations continued after
the well so that the down hole tools could be quickly
the coil was pulled from the well. Drilling equipment was
deployed.
rigged down and demobilized from the site at this point, and
The coiled tubing forces and pipe life were carefully
site reclamation/well reconnect operations were undertaken.
monitored using computer software that tracked pipe life and
Two months subsequent to the drilling operations, a
tubing forces in “real time” by constantly monitoring
multi-point isochronal test was conducted on the KW-34 well.
differential pressure, pipe weight, and past tubing cycles,
Analysis of the data indicated that the well had increased in
electronic devices were also installed on the coiled tubing reel
performance from 0.337 MMcfd to 2.83 MMcfd at a delta-
that actually measured the pipe diameter at several different
pressure squared of 100,000, translating to an 840% increase
axis and calculated the ovality of the coil so that any possible
in performance.
damage to the coil could be detected. This software also
allowed prediction of the tubing forces required to deploy the
steering BHA and motor and set limits for the operating range
of the coil. (see plot 1)
4 E.K. Stiles, M.W. DeRoeun, I.J. Terry, S.P. Cornell, S.J. DuPuy SPE 57459

Conclusions

The reentry drilling that was conducted on the KW-34 has

been evaluated to be both a technical and an economic Figure 1
success. The tool systems that accomplished the drilling of
the high build rate angle had been designed for high build up Time Distribution - Percentage
rate of up to 75 degree/100’ but exceeded this by building at
up to a measured 100 degree/100’ in one interval- an industry
record for CTD. The well’s deliverability increased by 840%. 14. N/U BOP's
Several ideas have been identified to improve CTD in this gas 9. Handling 2%
storage reservoir and will be incorporated in work to be done BHA 10. Dev.
in the early third quarter of 1999. These include: 7% Survey 15. Press. Test 1. Rig
8. Repairs
1% 1% Up/Dow n
2%
• Enhance bit design/selection for increased on bottom 6. Tripping CT
28%
time. Rock bit life on the first well was short due to the 12%
highly abrasive formation. 5. Circ. &
• Underbalanced drilling will be conducted in future wells Cond.
to enhance penetration rate while drilling the lateral 2%
3. Reaming
section of the hole and should yield a secondary benefit of
2%
negating formation damage. 2. Drill
• The interaction of the operator and the service companies 41%
as an integrated project team was a seamless operation.
The team conducted the operation with no safety or
environmental incidents. Future wells are planned with
an integrated services team approach.

Nomenclature
BCF= billion cubic feet
BOP= blowout preventer
BUR= build rate
BHA= bottomhole assembly
Figure 2
CT= Coil Tubing Cost Distribution by Activity
CTD= Coil tubing drilling
KCl= Potassium Chloride
KOP= kickoff point
Mmcfd= million cubic feet per day
MD= measured depth
MWD= measurement while drilling
OD= outside diameter Demob. Previous
PBTD= plugged back total depth 8% Activities
PPG= pounds per gallon
25%
TVD= true vertical depth

Acknowledgements
The authors wish to thank CNG Transmission and the
Schlumberger Companies. A special thanks is also offered to Drilling Mobilization
Devin Rock, Schlumberger IPM, for his assistance in 14%
53%
preparation of this paper, and his tireless efforts as the Project
Engineer for the 1999 CTD Program at CNG Transmission.
SPE 57459 Coiled Tubing Ultrashort-Radius Horizontal Drilling in a Gas Storage Reservoir: A Case Study 5

FIGURE 3-WELL SCHEMATIC AS DRILLED

5 1/2”Csg End of Lateral

@ 85.40° Incl.
@ 1622’
213.2° Azm
Cement
Plug 1935’ TD
1728’ TVD
1706’
Target Sand
1728’

Total Displacement
257 ft
 6 E.K. Stiles, M.W. DeRoeun, I.J. Terry, S.P. Cornell, S.J. DuPuy SPE 57459

Figure 4- KW-34 Directional

WELL FIELD STRUCTURE
KW-34 Armstrong County, PA South Bend

-400 -200 0

PLAN VIEW Scale (1 in = 200 feet) 0

True North
Tot Corr ( W 9.24°
Mag Dec ( W 9.24°

Surface Location: North:186405.61 ft, East:1517700.87 ft NAD83 Pennsylvania State Planes, Northern Zone, US Feet
-200
Grid Coord Local Cooord
Target Name N(+)/S(-) E(+)/W(-) TVD VSEC N(+)/S(-) E(+)/W(-) Shape Major Axis
ft ft ft ft ft ft
End of Build 186326.94 1517662.60 1714.00 -79.37 - 79.37 - 36.79 Point
End of Well 185606.48 1517310.03 1728.00 -806.28 - 806.28 - 375.76 Point

-400

Vertical Section View

-600

1600
Proposal
Survey

-800

1700

0 100 200 300 400 500 600 700 800

Vertical Section Departure at 205.00 deg from (0.0, 0.0). (1 in = 100 feet) Quality Control
Date Drawn: 22-Sep-1998
Drawn by: ______________
Sid Doiron
Checked by: ______________
Client OK: ______________