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This paper was prepared for presentation at the SPE Annual Technical Conference and Exhibition held in Florence, Italy, 19–22 September 2010.
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 have not been reviewed
by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect any position of the Society of Petroleum Engineers, its officers, or
members. Electronic reproduction, distribution, or storage of any part of this paper without the written consent of the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is
restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of SPE copyright.
Abstract
The industry is faced with the task of producing hydrocarbons from increasingly tighter reservoir rock including ultra low
permeability sand and shale. As a consequence, the selection of an appropriate well type and fracture stimulation design is
becoming even more critical to project success. The purpose of this paper is to provide some clarity by providing a general
understanding about the effects of well type selection and hydraulic fracturing on hydrocarbon recovery for various reservoir
permeability scenarios. Well types modeled include vertical, stimulated vertical, horizontal, axial stimulated horizontal and
transverse stimulated horizontal with variations in compartment length and effective fracture length. This information has proven
useful in the evaluation and planning of moderate to low to ultra low permeability well projects.
The summaries that will be presented in this paper are a compilation of the results from numerous simulator runs for gas, black
oil and gas condensate cases. These simulator runs included sensitivities on well type and permeability in order to compare
recovery and production. Important conclusions pertaining to the recovery of hydrocarbons from ultra low permeability reservoirs
and shale are made. In addition the obvious conclusion about the increasing difficulty of recovering hydrocarbons from lower
permeability rock, a primary conclusion is that as reservoir permeability decreases, proper well type selection and effective
hydraulic fracture stimulation design become much more crucial. The conclusions also show that for a given permeability,
obtaining significant recovery of oil can be a much more difficult problem than with that of dry gas. These conclusions are
supported by Bakken and Barnett Shale case histories which are included in this publication.
Background
Commercial extraction of oil and gas from reservoir rock requires a multi-domain, reservoir-specific solution. In the past, most
reservoirs were of high quality and required only wellbore contact for economic production. However, today, many wells are being
planned for completion in poor-quality reservoir rock in which traditional approaches to well design and completion result in
marginal production. These poor-quality rocks include not only ultra-low permeability sandstones and shale, but also higher-
permeability rock, such as gas-condensate reservoirs, which experience significant relative-permeability effects over the life of a
well project.
Economic success in poorer-quality reservoirs requires changing well-construction objectives from drilling and completing for
a low cost, to creating the necessary connectivity into the target reservoir. This shift involves placing primary importance on
devising effective strategies and methods to create the needed stimulated area and/or stimulated reservoir volume. This means that
issues related to hydraulic-fracture effectiveness and other formation-stimulation methodologies must be made of primary
importance in well and project decisions. The purpose of this paper is to provide a general understanding to support the paradigm
shift required for successful exploitation of low-permeability reservoirs.
2 SPE 133985
Modeling Strategy
Depending on reservoir permeability, the type of well drilled and its stimulation design can have a dramatic effect on the flow
of fluids to a wellbore. The purpose of this study is to quantify, in a general way, these effects and the significance that other well
decisions can have on productivity. Listed next is the modeling strategy.
• Choose an appropriate 3-D, 3-phase, 4-component numerical reservoir simulator to model production outcomes (Pacheco
et al. 2009; Ansah et al. 2006; Guglielmo et al. 2005).
• Fix reservoir volume (thickness, porosity, water saturation, drainage area, pore pressure, etc.).
• Select parameters to evaluate effect on production.
o Dry gas—well/frac type and permeability.
o Oil—well/frac type and permeability.
o Gas condensate—well/frac type and permeability.
• Model the gas and oil production for the various well types and frac conditions and summarize results.
• Support modeling results with case histories.
For purposes of this evaluation, six well and frac types were selected. They are; vertical, hydraulic fractured vertical,
horizontal, longitudinal hydraulic fractured horizontal, orthogonal fractured horizontal with five hydraulic fractures and an
orthogonal fractured horizontal with eleven enhanced hydraulic fractures. The fracture lengths for the horizontal well type with 11
orthogonal fractures were increased by 300 ft from the values in table 1 to estimate recovery potential from a more optimal
completion. The drainage area used in the simulations for all well types was a quarter section or 160 acres, and the lateral length
for all horizontal scenarios was 2,000 ft.
A numeric reservoir simulator was used to determine the production for the six well types for the four permeabilities selected.
Figure 1 contains comparisons of the well recovery after 10 years for the resulting 24 simulator runs. As can be seen, for the high-
permeability cases (0.5 mD), all well types with the exception of the unfractured vertical well produced about 85% of the gas in
place after 10 years. This is in sharp contrast to the 0.0005 mD cases where the horizontal well with 11 transverse hydraulic
fractures recovered about 79% of the original gas in place, followed by the horizontal well with five transverse fractures at 47%
and all the other well types producing significantly less.
SPE 133985 3
100%
90%
80%
60%
50%
40%
30%
20%
10% 0.5
0.05
0%
Vertical
0.005 Permeability, md
Vertical Frac
Horizontal 0.0005
Horizontal
Axial Frac Horizontal 5
Transv. Horizontal 11
Transv.
Well Type Fracs
Fracs
Figure 1—Comparisons of gas recovery after 10 years for the 24 simulator runs.
The pore-pressure distribution at 10 years for the well type and frac types modeled for the 0.0005 mD permeability cases are
shown in Figure 2. It can be seen that the areas of the reservoir with the most depletion occur only where a hydraulic fracture is in
close proximity. Within the scope of the well types evaluated, a horizontal wellbore oriented perpendicular to the maximum
principal stress is the most effective platform from which to generate the high number of hydraulic fractures or fracture contact
area necessary to produce gas from permeability 0.01 mD and below.
In conclusion, assuming no damage for the high permeability, 0.5 mD case, well-type selection and fracture area are not critical
to hydrocarbon recovery. However, for increasingly lower permeability, gas recovery becomes more directly related to the fracture
area created. It should also be noted that, even for the lowest-permeability case, with the proper well and hydraulic fracture
selection, gas recoveries can approach 80% of the recovery for the 0.5 mD cases.
(a) (b)
(c) (d)
(e) (f)
Figure 2—Pore pressure distribution at 10 years for the 0.0005 mD dry gas reservoir case with (a) vertical well, (b) hydraulic fractured
vertical well, (c) horizontal well (lateral length = 2,000 ft), (d) horizontal axial fracture, (e) hydraulic fractured horizontal with 5 transverse
fracs, and (f) hydraulic fractured horizontal with 11 transverse fracs (Xf=1,300 ft)
4 SPE 133985
For purposes of the oil-reservoir evaluation, the same six well and frac types have been selected. They are: vertical, hydraulic
fractured vertical, horizontal, longitudinal hydraulic fractured horizontal, orthogonal hydraulic fractured horizontal with five
hydraulic fractures, and an orthogonal fractured horizontal with eleven enhanced hydraulic fractures. The fracture lengths for the
horizontal with 11 orthogonal fractures were increased by 300 ft from the values in table 2 to estimate recovery potential from a
more optimal completion. The drainage area used in the simulations for all well types was a quarter section or 160 acres, and the
lateral length for all horizontal scenarios was 2,000 ft.
A numeric reservoir simulator was used to determine the production for the six wells types for the four permeabilities selected.
Figure 3 contains comparisons of the well recovery after 10 years for the 24 simulator runs. As can be seen, for the high-
permeability cases (5 mD), all the horizontal well types produced the most oil, with about 25% of the original oil in place
recovered after 10 years of production. The vertical fractured well produced 22%, while the unfractured vertical well produced
19% of the original oil in place. This is in sharp contrast to the 0.005 mD cases where the horizontal well with 11 transverse
hydraulic fractures recovered about 11% of the original oil in place, followed by the horizontal well with 5 transverse fractures at
5% and all the other well types producing significantly less.
30%
25%
Recovery at 10 Years, Cum/OOIP
20%
15%
10%
5%
5
0.5
0%
0.05 Permeability, md
Vertical
Vertical
Horizontal 0.005
Fraced Horizontal
Axial Frac Horizontal 5
Transv. Horizontal 11
Transv.
Well Type Fracs
Fracs
Figure 3—Comparisons of oil recovery after 10 years for the 24 simulator runs.
SPE 133985 5
The pore-pressure distributions for the various well and frac types for the 0.005 mD permeability simulator runs are shown in
Figure 4. It can be seen that the areas of the reservoir with the most depletion occur only where a hydraulic fracture is in close
proximity. It can also been seen that all of these scenarios would have benefited from a longer fracture length. Based on our
experience, the 500 ft half length should be consistently achievable for this permeability. The 800 ft half length however, may be
overly optimistic and should be considered an idealized case. Within the scope of the well types evaluated, a horizontal wellbore
oriented perpendicular to the maximum principal stress is the most effective platform from which to generate the fracture area and
conductivity necessary to produce oil from permeability 0.1 mD and below.
In conclusion, for the high permeability (5 mD) case, well-type selection and fracture area are not overly critical to
hydrocarbon recovery, assuming no damage. However, for increasingly lower permeability, oil recovery becomes more directly
related to the fracture area created. It should also be noted that, in the lower-permeability cases, even with the better well and
hydraulic-fracture selection, oil recoveries are only about 45% of that achieved by the 5 mD cases. This is attributed to the
permeability ranges selected and associated hydraulic-fracture lengths used. The challenge of obtaining oil recovery from low-
permeability rock is a much more difficult task than the dry gas case and can require closer well spacing to increase oil recovery.
(a) (b)
(c) (d)
(e) (f)
Figure 4—Pore pressure distribution at 10 years for the 0.005 mD black oil reservoir case with (a) vertical well, (b) hydraulic fractured
vertical well, (c) horizontal well (lateral length = 2,000 ft), (d) horizontal axial fracture, (e) hydraulic fractured horizontal with 5 transverse
fracs, and (f) hydraulic fractured horizontal with 11 transverse fracs (Xf = 800 ft)
The simulated scenario assumed a deep gas condensate reservoir (9,100 ft TVD). Figure 5 shows the liquid condensation curve
used for these simulations. The reservoir fluid yields up to 16 to 17% condensate when the pressure is dropped below dew point
pressure (4,950 psi). The initial pore pressure is 5,200 psi with bottomhole temperature of 215°F. Oil gravity is 52°API and gas
gravity is 0.675. The producing condensate-gas ratio is 100 bbl/MMscf. For all the runs, the production was constrained at 1,500
psi minimum flowing bottomhole pressure.
As noted before, six well and frac types were evaluated. They are vertical, hydraulic fractured vertical, horizontal, hydraulic
fractured horizontal with longitudinal fracture (axial frac), hydraulic fractured horizontal with five transverse fractures (evenly
spaced with 500 ft frac spacing), and hydraulic fractured horizontal with eleven transverse fractures (evenly spaced with 200 ft frac
spacing). We note that higher permeability reservoirs typically drain larger area than lower permeability reservoirs. The drainage
area used in the simulations for all well types was fixed at 160 acres. This assumed constant drainage area was necessary for the
purpose of comparing the recovery factors of the reservoir having different permeabilities and produced under different well
completion conditions.
Figure 6 and Figure 7 show comparisons of the gas and oil recovery factors after 10 years for the gas condensate case. All
well types produced 60 to 65% of the Initial-Gas-In-Place (IGIP) after 10 years for the high permeability cases (0.5 mD). In
comparison, for the 0.0005 mD cases, the horizontal well with 5 transverse hydraulic fractures recovered only 30% of the IGIP and
with 11 transverse hydraulic fractures recovery was 45%. Other well types produced less than 10% of the IGIP after 10 years of
production. The oil recovery factor followed the same trends as the gas recovery factor except for the high permeability case (0.5
mD) where boundary effect controls the depletion the most. In such a case, while the gas production is significantly accelerated
using either hydraulic fracturing, horizontal well, or both; long-term oil productivity may be decreased. Thus, proper selection of
well and frac types becomes even more crucial in gas condensate reservoirs. There can be loss of condensate production that might
not be recovered when well type selection and hydraulic fracture design are less than optimal.
SPE 133985 7
Figure 6―Comparison of gas recovery after 10 years for the gas condensate case
Figure 7―Comparison of oil recovery after 10 years for the gas condensate case
8 SPE 133985
The pore pressure distribution at 10 years for all the well types for the 0.0005 mD permeability case is shown in Figure 8. The
recovery factors appear to be similar for the hydraulic fractured vertical well and horizontal axial fracture cases. The vertical well
case assumed a fracture length of 2,000 ft (tip to tip), while the axial frac case assumed 2,000 ft horizontal wellbore. The results
suggest that for the low permeability cases (0.01 mD or below), the optimum completion strategy is to drill horizontal wells with
multiple transverse fractures to create maximum reservoir and wellbore contact area. If less drawdown in the reservoir can be
achieved through either hydraulic fracturing, horizontal well or both, single-phase gas production above the dew point pressure can
be extended for a longer time, which may significantly improve hydrocarbon recovery. For the more moderate reservoir
permeability cases (0.1 to 1 mD), horizontal wells (open-hole) without stimulation may be adequate if the reservoir is not
damaged.
Figure 8―Pore pressure distribution at 10 years for the gas condensate reservoir case with (a) vertical well, (b) hydraulic fractured
vertical well (Xf = 1,000 ft), (c) horizontal well (lateral length = 2,000 ft), (d) horizontal axial fracture, (e) hydraulic fractured horizontal with 5
transverse fracs, and (f) hydraulic fractured horizontal with 11 transverse fracs.
60 6000
Avg. Best Month Production [MMscf/month]
Total Well Count
Hz./Dir. Well Count
Start of active
50 5000
horizontal drilling.
Avg. Best Month Production [MMscf/month]
Well Count
30 3000
20 2000
10 1000
0 0
1985
1990
1995
2000
2005
2010
Year
Figure 9―Barnett Shale Development Timeline, 1985 – 2009 (Data Source: HPDI)
After 2005, the ratio of horizontal wells drilled and completed to the total well count exceeded 85%. As indicated previously,
significant increases in well productivity were obtained by this change in well type. As the percentage of horizontal wells reached
a plateau in 2007, further productivity increases were obtained, most likely as a result of refinements in hydraulic fracture
treatment design.
In an effort to identify completion practices that led some of these production gains, the authors reviewed an internal database
of 82 wells horizontal wells in the Barnett Shale. The database represented completion practices from 10 operators and consisted
of information derived from fracture treatment reports (perforations, injection rates, proppant mass and injected fluid volume) and
microseismic mapping projects (fracture geometry and stimulated reservoir volume (SRV)). Furthermore, this information was
coupled with public production records to allow quantification of well productivity. Wells in the database were distributed across
the resource play with a majority being located in Erath, Johnson, and Montague counties. Additional details from the database and
some median values were provided in Table 4 below. The range reported in this table represents ±1 standard deviation from the
median value. Minimum and maximum values were not reported.
Additional details
• Completion Dates: Sept. 2006 – Dec. 2008
• The primary completion was a cased-and-cemented wellbore with plug-and-perforating
used for staging.
• Slickwater and natural sands (100-mesh and 40/70) were the typical materials used.
10 SPE 133985
Figure 11––Relationship between injected volume and proppant Figure 12––Relationship between normalized injected volume,
mass to well productivity and created SRV normalized proppant mass, and stage spacing to well
productivity
SPE 133985 11
Interpretation of the data presented in Figure 12 showed that productivity gains in the Barnett Shale were not only influenced
through increasing the injected volume and proppant mass, but also through the degree of compartmentalization within the lateral.
Higher productivity resulted from a combination of larger fluid volumes, larger quantities of proppant, and attempts to stimulate
shorter sections of reservoir per treatment stage.
The results reported here lead to conclusions that seem to be consistent with the work of previous authors who investigated the
production benefit of stimulating shorter sections of reservoir and the influence of proppant distribution and conductivity on well
productivity (Cipolla, et al, 2009)
Elm Coulee
Average Best Month Oil BBL
Well Count
8000 800
6000 600
4000 400
2000 200
0 0
53
55
57
59
61
64
66
69
76
78
80
82
84
86
88
90
92
94
96
98
00
02
04
06
08
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
Year
Figure 14 compares the average gas show observed during the drilling of the 19 Bakken horizontals to the resulting best month
cumulative oil production for horizontal wellbores with varying degrees of hydraulic-fracture compartmentalization. Of particular
interest is that completions with no or minimal fracture compartmentalization (small number of hydraulic fractures) follow a trend
of a low slope compared to the trend of highly compartmentalized hydraulic-fracture completions (larger number of fractures),
which define a trend with a much steeper slope. If it is assumed that the average gas show is a relative indicator of permeability
(natural fracturing) and that wellbores with higher gas shows have more permeability than wellbores with lower gas shows, the
conclusions that can be drawn by interpretation of these field results are remarkably similar to the conclusions drawn from the oil-
12 SPE 133985
reservoir-well type versus permeability simulator summaries. That is, as permeability decreases (lower gas shows), well-type
selection becomes extremely important to production and that increasing the number of frac compartments results in more
production due to the greater fracture area along the lateral. This information is useful because it justifies why the change to the
more expensive compartmentalization hydraulic-fracture completion needed to obtain commercial production in noncore, less-
permeable Bakken areas.
20000
Highly Compartmentalized
18000 Moderate Frac Compartmentalization
No Frac Compartmentalization
16000
14000
Best Month Oil Cum BBL
12000
10000
8000
6000
0
0 500 1000 1500 2000 2500
Avg Total Gas
Figure 14―The average gas show observed during the drilling of the 19 Bakken horizontals compared to the resulting best month
cumulative oil production for horizontal wellbores with varying degrees of compartmentalized hydraulic fracturing.
Conclusions
This work supports the following conclusions:
• Well production and recovery are directly related to the amount of fracture area created for the lowest permeability
scenarios; however, in the high-permeability cases, well type has much lesser or no significance.
• Recovery after 10 years of production for the dry-gas well cases ranged from less than 1% to approximately 85%, while
the recovery for the oil cases ranged from less than 1% to 25%.
• For oil wells with permeability below 0.1 mD, a horizontal well with the orthogonal or transverse oriented fractures
resulted in the highest recovery. At permeability of 0.05 mD and below, recovery is directly related to the amount of
hydraulic fracturing performed.
• For dry gas wells with permeability below 0.01 mD, a horizontal well with the orthogonal or transverse oriented fractures
resulted in the highest recovery. At permeability of 0.005 mD and below, recovery is directly related to the amount of
hydraulic fracturing performed.
• Fracture stimulation of the horizontal wellbore improved 10-year recovery for all but the highest-permeability cases,
while fracture stimulation improved recovery for all of the vertical-well cases.
• The Bakken case-history data supports compartmentalized hydraulic fracturing of horizontal wellbores to distribute and
create the fracture area required for recovery from low- and ultralow-permeability oil reservoirs.
• Fracturing condensate reservoirs early in the life of the well to avoid formation of a large condensate bank around the
wellbore that will have severe and potentially irreversible effects can be a critical factor.
• The effect of a condensate bank formed during the radial-flow period on the ultimate recovery of a fractured well
becomes more critical as the formation permeability gets smaller.
• This modeling exercise is intended to provide general understanding only. Additional modeling with specifics must be
performed to evaluate well type, fracture design, and spacing requirements for a specific well or formation.
SPE 133985 13
Nomenclature
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