MIRAFLORES BLOCK

TIGHT UNCONVENTIONAL PLAY

MFL-X2 WO Proposal

Luis Pérez Melgar

Background
 Chaco-Stack - Cancambria Energy Study (as presented at Foro del Gas Bolivia 2019)
• Basin Centered Gas System (BCGS)
Devonian/Silurian SouthEast Bolivia
• Possible tight gas continuous
accumulations
• Unconventional petroleum system within
‘stacked’ silts and fine-grained sandstones
• Huamampampa – Icla – Santa Rosa Fms.
• MFL-X1 and MFL-X2 wells drilled
• Montney Play (Canada) marked as main
analogue
• 380 Tscf In Place Resource first estimate
• Relatively deep wells 3500 – 4500 m
target
 Miraflores Play - Chaco-Stack - Cancambria Energy Study

Unconventional Tight Gas Play requirements

accomplished by the Chaco Stack:
• Highly compacted formations (low
permeability, brittleness)
• Relaxed tectonic environment
• Hydrocarbon generation temperatures
• Observed overpressure
• Inverted Fluid Column
Cancambria Proposal:
• Expl: 4600 m depth investigation well in
order to gather more information
• Possible deep condensate gas development
Update Analysis (2022)
 MFL-X2 Well Revision

Miraflores X1,Texaco (1992), Hito Villazón Area => Dry Hole

Miraflores X2, 5 km West MFL-X1 (1996) Proposal

• Reasons to drill:
– Report establishes perforation fluid (KLM) caused
formation damage over drilled Devonian formations in
MFL-X1 well

– Low resistivity logs response caused by thin laminated,

silty layers

– High content of Iron, Chlorite and Illite increases water

saturation (Sw)

– Santa Rosa formation was not reached by MFL-X1 well,

producer in North Argentina wells
 MFL-X2 Well Results
Texaco results and conclusions:

❑ Three Devonian targets selected for test and stimulation

• Santa Rosa sandstone zone perforated, hydraulic fractured and tested with very little gas and formation
water recovered (26,000 ppm)
• Icla zone perforated, but fracture treatment and tests aborted due to multiple packer failures
• Huamampampa sandstone zone perforated, hydraulic fractured and tested with formation water
recovered (28,000 ppm)

❑ One Carboniferous target

• Chorro sandstone perforated underbalance. Weak gas flow then swabbed recovering water with no
hydrocarbons

❑ Information obtained from tests and stimulation indicate that the Devonian formations are very tight

❑ Formation water properties from test samples are useful to improve the electric logs interpretation
 MFL-X2 – Hydraulic Fracture and Test - Santa Rosa Target

Operations Summary:
• TCP guns 4049 – 4052 m perorated interval
• RIH packer Test/Fracturing assembly to 4043 m
• Step Rate Test with 2% KCl solution (101 bbl)
• Main Fracture treatment:
– 729 bbl gelled fluid
– 69,000 lb proppant
– Average rate 7.7 bpm at 9100 psi
– ISIP = 7720 psi
• Open well to flow on choke SRS
• Flowback 19 hrs, 460 bbl fracturing fluid and gas
TSTM
• WHP 0 psi. Swab well 24 hrs recovered 698 bbl of 15 Ohm-m
fluid and low gas
• Total fluid recovered 1022 bbl, chlorides 26000
ppm
• Kill and circulate well
 MFL-X2 – Hydraulic Fracture and Test – Huamampampa Target

3964-3967 m Frac HMP

• TCP guns 3964 – 3967 m perorated interval

• RIH test BHA with packer
• Perform Main Fracture treatment
– Pump 350 bbl gel pad at 7 bpm at 8800 psi
– Pressure decreased to 7800 psi
– Increase rate to 9 bpm at 8000 psi
– Increase rate to 10 bpm at 8200 psi (4 ppg at perforations)
– Increase rate to 12 bpm at 8200 psi (5 ppg at perforations)
– Pressure suddenly increased at 11000 psi (screen out?)
– Shut down and flowback
15 Ohm-m
– Total proppant 40,000 lb (design 70,000 lb). Total fluid 1177 bbl
– Flowback: Recovered 1000 bbl foamy water and gas tstm
– Next 48 hrs: Recovered a total of 1700 bbl of water. Fluid
chlorides 28,000 ppm
– Reverse circulation to kill the well. POH assembly

Screen Out
8600 psi
 MFL-X2 – Chorro Test

Chorro Test
Chorro 2184 - 2022 m

• TCP guns 2184 – 2202 m perorated interval

• RIH test BHA with packer at 2165 m (9 5/8” casing)
– Well test performed
– Swabbing
– Weak gas and water recovered
– No flow after 24 hours
• Conclusion: Water zone
2184-2202
Opportunities
 MFL-X2 – Mud Log

Hydrocarbon shows
Gas Shows over all Devonian
column. C1-C5
 Geochemical Studies Miraflores (Pluspetrol 2000)

• Pluspetrol Report: “Evaluación de Roca

Madre de Hidrocarburos en los pozos MFL-
X1, MFL-X2, Miraflores, Bolivia” H. Villar

• Evaluation depth: 2560 – 3600m on MFL-X1

(Iquiri – Los Monos)

• VRE 0.5-11% Ro, congruent with TAI and

Tmax at Givetian age

• Iquiri, Los Monos Oil and light oil window

maturity
 Miraflores-X2

• Iquiri Formation 2450-2800 (350 m). BEICIP-FranLab top

re-interpretation (2016)

• Low permeability thin sandstone layers

• Zones with hydrocarbon potential observed:

– Gas shows Iquiri (0.18%-17.4%)
– C1-C5 (chromatography available only from 2630 m)
– Gas kick at 2700 m. MW raised from 9.8 ppg to 12.2
ppg)

• Pore overpressure 0.6 psi/ft on Iquiri

• Hydrocarbon saturation after petrophysical evaluation

• Overpressure: Possible continuous accumulations

 MFL-X2 Iquiri Petrophysics
Rw: CRD-X1 NaCl 23ppk
2450 – 2550 m
m=1.74, a=1 YPFB CTP Iquiri TTR
PHIE (Dens – Neutron)
SWE (Simandoux)
PHIE GR baseline alta (Iquiri Ar. Mic, Feldspar)
Sw cutoff = 45%. Min So para kro

+30
18%
UGT

9% +30
UGT
No Cromatography
3%

+20
10%
UGT
45%
 MFL-X2 Iquiri Petrophysics

2550 – 2650 m

+10
11% UGT

7% Sin Cromatografía

+20
12% UGT

14% +100
UGT

Sw cutoff = 45%
 MFL-X2 Iquiri Petrophysics

2650 – 2750 m

14% +20
UGT Sin Cromatografía
10%

6% +110
UGT

Inicia Cromatografía

4% +1000
UGT
Gas kick
C1-C5

Sw cutoff = 45%
 Hydraulic Fracturing MFL-X2 (Iquiri)
• MFL-X2, leak off tests:
– 14.8 ppg @1000m = 0.77 psi/ft
– 18.4 ppg @ 3305m = 0.95 psi/ft
• MFL-X1, injection frac:
– 3118 – 3140 m (Los Monos)
– 7,200 psi WH. 11,650 psi BH no se pudo
fracturar. Frac.grad = 1.14 psi/ft
• Mud Log Iquiri Frac grad. 13.5 ppg = 0.7 psi/ft

• Iquiri objectives
– Max prof. 2800 m
– Max grad. 1.14 psi/ft
– Fracture pressure: 10,475 psi
– Phydrostatic: 3980 psi.
– dP loss 5%: 520 psi
– Estimated pump pressure = 7000 psi
– Pump capacity required: 10K psi
Tatarenda Field Analogue
Production Technology
 Tatarenda Field

Low permeability Iquiri sandstones using available technology

Capital Investments halted
due to government lack of
definition about Law 767

Cierre
TTR-33
 Iquiri Reservoirs Description

• The Iquiri formation is lithologically described as

the interbedding of shales, siltstones and sands
of variable thickness.

• Reservoirs are fine grained, with lower porosity

and low permeability

• Light oil (47-50º API). GOR: 500-1500 scf/stb.

Low viscosity fluid 0.8 cp

• Up to 15 oil bearing zones identified, some

tested and some producers

• Hydraulically independent. Variable fluid contacts

(5 – 15 m net pay)

• Low permeability sandstones 0.1 – 2.5 mD

(except Tatarenda reservoir). Effective porosity
4-9%
 Low Permeability Reservoirs Production
• High extension massive hydraulic fractures
• High-rate pumping 11 – 15 bpm, low proppant concentration (1 – 4
ppg), slickwater + gel fluid Resources Pyramid
• Production enhancement, variable between zones (x1.5 – x10)
• Possible sweet spots, stress and lithology dependent

TTR-8 Well (2016) BPD

La Yunta + Itai PreFrac Production Test 20
La Yunta PostFrac Production Test 220
Itai PostFrac Production Test 290
Total Well Post-Frac Production Test +500
TTR-7 Well (2017) BPD
La Yunta PreFrac Production Test 34
La Yunta PostFrac Production Test 280
 Recent Petrophysics Reevaluation

• Oil behind casing identified through saturation logs in abandoned Wells

• Low resistivity zones bypassed due to complex mineralogy and conductive minerals
• C/O pulsed neutron logs to estimate So. Spectrography logs shows +Fe components in Mid Iquiri sandstones

PNL Logs 2017

Possible Unconventional Play
 Possible Basin Centered Hydrocarbon Accumulation
Llanura Chaqueña
Overpressure zones

• Iquiri: 0.1 – 2 mD (tight sands interbedded w.

rich shales)

• Los Monos: 1x10-6 mD (Shale) Source Rock,

lower TOC

• Huamampampa: 0.001 – 0.1 mD (tight sands)

• Icla - Santa Rosa (tight sands interbedded w.

shales)
 Basin Centered Hydrocarbon Accumulations

Continuous hydrocarbon accumulation challenges the concepts of

traditional petroleum geology: Limitation properties and Trap
Prospecting:

• Self sourcing and near-source reservoirs continuously distributed

over a large area, without a clear trap boundary.

• Hydrocarbon accumulation Not driven by buoyancy - only weakly

affected by hydrodynamics

• Pervasively distributed Nanometer-pore-throat network (100-500 nm)

• The key for exploration is to define the reservoir range through

techniques such as 3D pre-stack seismic

• For development Methods such as micro-seismic monitoring, horizontal

drilling and high-volume fracturing used to increase permeability
 Basin Centered Hydrocarbon Accumulations
Attributes common to BCGSs
A Continuous Accumulation that:

• Is regional in extent
• Can have diffuse boundaries
• Does not have an obvious seal or trap
• Does not have a well-defined oil/gas-water contact
• Has hydrocarbons that are not held in place by
hydrodynamics
• Commonly abnormal pressured
• Has large in-place resource number, but low recovery factor
• Has geologic “sweet spots” of production
• Typically has reservoirs with very low matrix permeabilities
• Commonly has natural reservoir fracturing
• Has reservoirs generally in close proximity to source rocks
• Has little water production (except from coal-bed gas)
• Has water commonly found up-dip from gas
• Has few truly dry holes
• Has well EURs generally lower than from conventional
accumulations
MFL-X2 Work Over Proposal
 MFL-X2 Iquiri Targets
To be confirmed with cased hole logs (C/O saturation logs)

Ar. Iquiri 1

Ar. Iquiri 3

Ar. Iquiri 2
Ar. Iquiri 4
 Productivity (Ar. Iquiri 1 - MFL-2)
2613 – 2618 m

IPR Model: Darcy – Fetkovich

Pore grad = 0.435 psi/ft

Pressure = 3800 psi (2600 m)
Net Pay = 5 m
Fluid = Oil 49°API
GOR=1200 scf/stb
Skin = +2 K=1.0 mD
Perm = 0.5 – 1.0 – 1.5 mD (Sensitivity) K=0.5 mD

Well Diam = 8.25 in

Tubing = 2 3/8” (ID=1.99”)
WHP = 30 psig (Sep.)

Less GOR or More Skin can limit the

production response (slow restitution)
 Productivity with Hydraulic Fracture (Ar. Iquiri 1 - MFL-2)

IPR Model: Cinco Ley Samaniego

(Analogue TTR)

Proppant 20/40
Pump rate = 12 – 14 bpm
Concentration = 1 – 4 lb/gal

P = 7500 psi (extension)

L = 75 m (Lenght propped)
width = 0.05 in
FracPerm = 100 D K=1.0 mD
K=0.5 mD
Conductivity= 400 mD-ft

WHP = 30 psi (Sep)

Qo = 130 - 250 bpd (pseudoesteady)

Objective: Enable Horizontal Wells

 Productivity with Horizontal Well (Ar. Iquiri 1 - MFL-2)

Analytic Model Herge - Larsen

Horiz. Length 200 m Horiz. 200 m + 2 Stage Frac Horiz. 400 m + 4 Frac
Qo = 90 - 180 bpd Qo = 225 - 400 bpd Qo = +450 bpd
 Proposed Investigation Work Over

• Stage 1. Intervention:
– MFL-X2 road and well pad conditioning
– Well head installation (casing was cut superficially)
– Cement plugs rotation with small/médium size WO rig until 3100 m (Iquiri – Los Monos)
– Well passage verification (csg 7”). Mechanical integrity test. Cased hole logs (MFC, VDL)

If stage 1 is OK:
• Stage 2. Logging and Testing:
– Cased hole logs: GR, Pulsed Neutron Logs (C/O only – low salinity)
– Hydrocarbon zones confirmation. Sw comparison with resistivity logs
– High penetration perforations (two casings) on Iquiri targets
– Run in hole test BHA or DST tool
– Well test. Due to low permeability, there could be no recovery or very low recovery
– with swabbing

• Stage 3. Hydraulic Stimulation:

– High extension hydraulic fracture required. Min pumping rate 10-15 bpm, low proppant
Liner 7”
concentrations 0.5 - 4 ppg, slick water and very soluble transport gel recomended
– Production well test, pressure well test
– BHA completion installation
 Appraisal Phase

• Overpressure identified at Iquiri in wells near the area, such as CRD-X1, BAL-X1,
MYP-X1, MFL-X1 and TUP-X1 -> can be related to a regional tight accumulation
phenomena

• If Workover at MFL-X2 brings positive results then:

• Appraisal Drilling
– Vertical wells drilling with Iquiri targets for area investigation (lateral mapping)
and possible moderate oil production, using high extension fracture
completions.
– Horizontal wells drilling on studied/identified optimal ‘landing zones’
– Multi-stage hydraulic fracture to measure and calibrate productivity response

• Development
– Multilateral drilling. Grid spacing, logistics and production optimization
– Well materials and operations costs optimization

• Investigation Drilling
– Deep vertical investigation well for Los Monos, Huamampampa, Icla and
Santa Rosa (tight gas objective)
– Image logs, coring, laboratory tests
– Horizontal sidetracks for production testing on targets. Hydraulic fracture
testing
– Productivity measurements to verify feasibility of development
US Tight Oil Production