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Appendix E – Well Performance Analysis

E.1 Introduction
A well performance analysis compares the current production (or
injection) rate with a rate calculated using ideal conditions (as if the
well were producing without problems).
Current well-production or injection data are generally directly
accessible from the client. In North America, production data are
available from published data bases (Dwights, Rex, PI).
Simulated production or injection data will be generated using a
reservoir/fluid flow model. The choice of the reservoir model and
the parameter values used to generate those data are obviously
very critical for the validity of the study.
The tools or software programs currently available within Dowell
to evaluate well performance are
• NODAL* Analysis, which is accessible through SAM*
(Systems Analysis Model) software.
• ProCADE* software Production Data Analysis Design
Evaluation Model developed by NAM
• SABRE, a three-dimensional, three-phase reservoir
simulator.
NODAL Analysis is an efficient and reliable method for evaluating
well performance. It is easy and quick to use.
ProCADE is a more powerful and versatile tool that can be used
to evaluate the production performance of a wide variety of
reservoir and well types. In addition, ProCADE permits history
matching of measured production data to obtain estimates of the
reservoir properties. These results can be used to forecast the
future production.
For more details on SABRE see SABRE on page 230.

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E.2 Critical Parameters for Well Performance Analysis

For a well performance analysis, it is important to identify those
items that are critical for the study.
The critical step is to obtain the best match between the simulated
production data from the reservoir/flow model output and the
current well performance. A good match clearly indicates that the
well data and the reservoir parameters used are as close as
possible to their true values.
When a match is obtained, the engineer can discuss the possible
ways to improve the performance of the candidate well.
The model will also be used to predict the well production after the
appropriate treatment and, thus, the proper data for the economic
analysis will be generated.
The critical reservoir parameters needed for the well performance
analysis include (Figure 3-1)
• Group 1
- average porosity
- net pay height
- reservoir fluid saturations
• Group 2
- reservoir fluid characteristics
- initial reservoir pressure
- reservoir drainage radius
• Group 3
- average reservoir pressure
- average net pay permeability
- existence of fissures or fractures and their characteris-
tics
- skin factor.

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Each group of parameters is typically obtained from a specific

group of data (Table E-1), and their values are determined using
purpose-written computer programs
• Group 1 from well logs using WellLOG
• Group 2 from production history using OilMAT orGasMAT
• Group 3 from well test data using WellTEST.
The order in which groups are listed corresponds to the
investigation procedure. The parameters of group 1 need to be
determined first. Their values and the production data will be used
to determine the parameters of group 2. Finally, the parameters of
group 3 will be determined using well test data and the parameters
of the first two groups.
Table E-1. Critical Parameters, Sources and Tools
Critical Parameters Sources Dowell tools to process the data
Average porosity, Φ CNL*, Litho-Density*, DSI*, IPL* and WellLOG (for openhole logs only)
Platform Express* logs
Net pay height, h SP, GR, TDT*, any resistivity logs WellLOG (for openhole logs only)
(MicroSFL*, MLL,...) and CMR* logs
Reservoir fluid saturations: So, Sw, Sg, RST*, WFL*, TDT* and CMR* logs WellLOG (for openhole logs only)
Sw,irr
Reservoir fluid characteristics Formation fluid analysis, RFT*, MDT* FluidPRO or any other PVT correlations
available from most of the programs
Initial reservoir pressure Production history OilMAT, GasMAT
Reservoir drainage radius, re Production history OilMAT, GasMAT

Average reservoir pressure, Pr Well test data, production data, RFT, MDT WellTEST
Average net pay permeability, k Well test data, production data, EPT*, WellTEST
NML* (crossplots porosity/permeability),
CMR
Existence of fissures or fractures and their Well test data, FMS*, FMI*, UBI*, DSI* WellTEST
characteristics
Skin factor, S Well test data, RFT, MDT WellTEST

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E.3 Production History Data

Production history data should include
• oil or gas (or total fluid) production rate, preferably per day
• wellhead flowing pressure (WHFP)
• bottomhole flowing pressure (BHFP) when available
• wellhead flowing temperature (especially important for a
gas well)
• gas/oil ratio (GOR) or any equivalent measurement
• water/oil ratio (WOR) or any equivalent measurement
• liquid/gas ratio (LGR) for a gas well.
Production data (production rate, WHP, GOR and WOR), is often
inaccurate because it is derived from estimates, frequently based
on surface measurements of pressure drops through chokes and
calculated using empirical formulas. Care should be exercised
when using estimated data to evaluate the performance of a well.

E.4 Well Test Data

One of the most reliable sets of data for a rigorous performance
analysis will come from a well test such as
• a pressure buildup test
• a drawdown test
• falloff test (for an injection well).
Using transient analysis methods (Well Testing on page 311), well
tests give access to the major well parameters, such as
• average reservoir pressure
• average net pay permeability
• skin factor
which can be determined using the WellTEST software.
Well test interpretation gives access to other valuable information
such as
• reservoir boundaries
• existence of fissures or fractures and their characteristics
• existence of layers and their degree of isolation.

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This information is not easily determined and is the result of

advanced well test interpretation performed most of the time from
specifically designed well tests.

E.5 Injection Wells

The well performance analysis as described in Figure 3-1 has
been developed for oil or gas producers, but can be widely applied
to injection wells.
Injection data are generally more accurate. The attributes of
injected water are normally known. Likewise, the injection rate and
the injection pressure are either predetermined or measured
easily.
Transient analysis of an injection well is simple as long as the
mobility ratio of the injected fluid and the in-situ fluids is
approximately one. This is a reasonable approximation in most
cases.

E.6 Production Matching and Production Prediction

E.6.1 Introduction
As indicated above, the critical step is to match the well production
history with the simulated production using the appropriate
reservoir/flow model.

E.6.2 NODAL System Analysis

NODAL* Analysis is one of the key tools used for well performance
analysis. NODAL Analysis is a systematic analysis method that
examines the entire producing system of a well. The analysis
provides results that can be used to optimize the deliverability of
a producing oil or gas well. NODAL Analysis also can be used to
optimize injection wells.
NODAL Analysis can analyze oil- or gas-producing wells or
injection wells to determine whether the production rate or
injection rate of the well is compatible with the reservoir potential.
Discrepancies between the computed values derived from
NODAL Analysis and the actual well producing (or injecting)
values is evidence of a problem in the producing (or injecting)

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system. The problem may exist in the production string, at the

completion point (interface of wellbore and formation) or in the
reservoir matrix.
Additional data must be examined to determine the exact nature
and location of the problem.
A typical NODAL Analysis plot Figure A-41 shows the intercept
between
1. The Inflow Performance Relationship curve or IPR
curve describes the relationship between the production
rate across the reservoir-wellbore interface and the
wellbore pressure across the thickness of the producing
zone.
In Figure A-41 two IPR curves, which correspond to two
different values of skin, 210 and 0, are depicted.
At zero flow (intercept with the Y axis), the corresponding
pressure is the average reservoir pressure.
2. The Tubing Intake curve illustrates the relationship
between the bottomhole flowing pressure, the rate of flow
through the production tubing and the wellhead pressure.
It allows an evaluation of the friction losses developed
through the plumbing system (basically, the production
tubing) as a function of the fluid flow rates. On Figure A-41
a tubing intake curve is shown for a WHP of 1632 psia.

Figure A-41. A typical NODAL analysis plot.

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The value at the intercept point of the Inflow Performance

Relationship curve and the Tubing Intake curve, is the calculated
production rate. A match with the current production rate allows us
to estimate the skin value.
For injection wells, both curves can be drawn using the same
principle. A typical plot shows the intercept between:
1. the curve illustrating the relationship between the
bottomhole injection pressure and the injection rate. At zero
flow the BHIP is equal to the reservoir pressure. As the
injection rate increases, the BHP also increases to a
maximum value equal to the fracturing pressure
and
2. the curve describing the correlation between the friction
losses through the tubing and the injection flow rates, for a
given wellhead injection pressure.

E.6.3 ProCADE
ProCADE, Production Data Analysis Design Evaluation program
is a software package developed by NAM specifically for well
performance analysis and production prediction.
The types of reservoirs that can be evaluated with this model are
single- and dual-porosity, infinite-acting or finite reservoirs with
vertical/slanted wells, finite-conductivity fractures or infinite-acting
conductivity horizontal wellbores.
The types of reservoir fluid analyses available are oil solution-gas,
dry or wet gas, and brine reservoir analyses.
ProCADE permits
• history matching of measured production data to obtain
estimates of the reservoir properties
• forecasting the future production using the results obtained
from the history matching procedure.
A general design mode allows the user to specify a relatively
arbitrary inner boundary schedule for prediction of the future well
production.

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E.6.4 Production Prediction

The last step of the well performance analysis is to predict the well
performance:
• without any work having been performed on the well
• with the appropriate treatment of the well.
In particular any change in the water production should be studied
to develop the proper recommendation.
The production prediction data will be valuable input for the
economic analysis.

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