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Horizontal Drilling

Current Status and Case Histories


Horizontal Drilling
Background

History of Horizontal Drilling


1891 - First Patent Issued
 1929 - First Horizontal Oil Well Drilled
 1950’s - Development of Hydraulic Fracturing suppressed

need for Horizontal Wells


 1970’s – used long radius technology to develop fields

w/o navigational technology


 1980’s – Advances in Directional Technology to Steer

Offshore Wells
 1985 – First Austin Chalk Well
 1990 – approx. 1,500 Horizontal Wells Worldwide
 2000 – Est. 20,000 Horizontal Wells Worldwide
Horizontal Drilling
Background

What is a Horizontal Well ?


 No API Definition
 Any well put in a reservoir to expose as much permeability
and porosity as possible
 A Controlled Directional Completion Procedure

Why Drill Horizontal Wells ?


 Produce Reserves not Drained by Vertical Wells
 Produce Reserves not Economic in Vertical Wells
 A More Efficient Use of Reservoir Drive Energy
 Provide better Rate of Return than Vertical Well
Gas

Oil
Water
Another Reasons
Kota Lensa
Lensa Offshore
Patahan Salt dome
Sungai Lapisan Tipis
Horizontal Drilling
Current Status in Kansas

Current Status of Non-Vertical Wells (November, 1999)

 68 Approved “Intent to Drill” Applications

 34 Horizontal Wells Confirmed


 1 Horizontal Well Reported (not confirmed)

 3 Deviated Wells Confirmed


• many more but unreported

 2 Slant (high angle) Wells Confirmed


Horizontal Drilling in Kansas
Definitions & Terms

Classification of Horizontal Wells


Horizontal Well Radius Categories
Traditionally
Long - Medium - Short - Ultrashort
No API Standard
Currently
Classified by Bend Rate of Curve
2o-8o / 100 Ft. – Long Radius
8o-35o / 100 Ft. – Medium Radius
1/2o-2o / Ft. – Short Radius
Determines:
Lateral Length
Steering Method
Completion Technique
Treatment Methods
Horizontal Drilling in Kansas
Definitions & Terms

Common Terms used to Describe Horizontal Wells

MWD - “Measurement While Drilling”


Azimuth, Inclination, Measured Depth
LWD - “Logging While Drilling”
most standard vertical hole e-logs
PIF - “Productivity Improvement Factor”
multiplier of production increase over offset vertical wells
Horizontal Drilling in Kansas
Definitions & Terms
Horizontal Drilling in Kansas
Opening Remarks

Caveat Contemplor
Determining Success of a Horizontal Well
Requires:
Assessing if Basic Criteria was Accomplished
 Where it is drilled….
geology - structure & stratigraphy
 Why it is drilled….
reservoir & drive mechanism
 What it is drilled for….
reservoir management
 How it is drilled….
well design, drilling, & completion

Operator Reporting Prevents Accurate


Assessment
 Inaccurate
 Incomplete
 Non-existent
Horizontal Drilling in Kansas
Current Status

General Characteristics of the 34 Horizontal Wells


 1st Horizontal Well in Kansas
Mar-1988, Phillips Petroleum, Trego Co.
196 ft. Lateral in Marmaton Frmn.
 Build Rate & Radius Ranges
Shortest: 2.7o/ft. / 33 ft.
Longest: 1.4o/100 ft. / 1087 ft.
 Measured Depth / True Vertical Depth
Shallowest: 250 ft. / 200 ft.
Deepest: 7969 ft. / 6190 ft.
 Horizontal Lateral Length
Shortest: 40 ft.
Longest: 1877 ft.
 Most Frequently Drilled Formation
Mississippian - Osage (7), St Louis (4), Spergen-Warsaw (3)
Horizontal Drilling in Kansas
Spatial Distribution and Formation

Chse Marm Peru Bevier McClth Miss Arbk Gas Stg


Horizontal Drilling in Kansas
Current Status

Horizontal Drilling Activity


1988 to 1999
11

10

0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Horizontal Drilling in Kansas
Current Status

Horizontal Wells by Formation

Mississippian, et al
6

4
Gas Stg
3

2
Gas Stg
1

0
Horizontal Drilling in Kansas
Current Status

Azimuth of Lateral
Heel to Toe Direction
7

0
0

15

30

45

60

75

90

105

120

135

150

165

180

195

210

225

240

255

270

285

300

315

330

345

360
North East South West North
Degrees from North
Horizontal Drilling in Kansas
Current Status

Lateral Length

0
0 200 400 600 800 1000 1200 1400 1600 1800 2000

Length (ft)
Horizontal Drilling in Kansas
Current Status

TVD vs Lateral Length

-
Chase Group
Mississippian
1,000 Arbuckle
Viola
McClouth
2,000

3,000

4,000

5,000

6,000

7,000
- 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
Lateral Length (ft)
Horizontal Drilling in Kansas
Case Histories

Riffe

McClouth Field

Muhlheim

Lost Springs
Stillwell
Aldrich NE

Hugoton Wieland W
Oppy S
Porter

Cunningham Gas Strg


Shuck
Coffeyville

Chse Marm Peru Bevier McClth Miss Arbk Gas Stg


Horizontal Drilling in Kansas
Case Histories - Winfield Formation

Toe Up
Horizontal Drilling in Kansas
Case Histories - Winfield Formation

Permian Chase Formation PIF: .89


Horizontal - Vertical Productivity Comparison
1,000,000
Tate-Unrein 4 Mnthly. Rate
Avg. Offsetting Well Mnthly. Rate 306,915
Tate-Unrein 4 Cumulative
Avg. Offsetting Well Cumulative
273,612

100,000

10,000

1,000
Jan-94 Jul-94 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Aug-98
Horizontal Drilling in Kansas
Case Histories - Osage Formation

Toe Up
Horizontal Drilling in Kansas
Case Histories - Osage Formation
Horizontal Drilling in Kansas
Case Histories - Osage Formation

Mississippian Osage Formation


Horizontal - Vertical Productivity Comparison
PIF: 3.1
100,000

30,802

9,738
10,000

1,000

Avg. Offsetting Well Mnthly. Rate


Avg. Offsetting Well Cumulative
Antrim-Cossman 1HZ Mnthly. Rate
Antrim-Cossman 1HZ Cumulative
100
Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99
Horizontal Drilling in Kansas
Case Histories - Osage Formation
Horizontal Drilling in Kansas
Case Histories - Osage Formation

Mississippian Osage Formation PIF: 5.3


Horizontal - Vertical Productivity Comparison
100,000
52,064

9,738
10,000

1,000

Billings 1 HZ Mnthly. Rate


Billings 1 HZ Cumulative
Avg. Offsetting Well Mnthly. Rate
Avg. Offsetting Well Cumulative
100
Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99
Horizontal Drilling in Kansas
Case Histories - Spergen-Warsaw Formation
Horizontal Drilling in Kansas
Case Histories - Spergen-Warsaw Formation

Mississippian Spergen-Warsaw Formation PIF: 2.2


Horizontal - Vertical Productivity Comparison
100,000
Shearer B 1-26H Mnthly. Rate
Shearer B 1-26H Cumulative
Avg. Offsetting Well Mnthly. Rate
17,053
Avg. Offsetting Well Cumulative

10,000

7,850

1,000

100
Jun-97 Dec-97 Jun-98 Dec-98 Jun-99 Dec-99
Horizontal Drilling in Kansas
Case Histories - St. Louis Formation
Horizontal Drilling in Kansas
Case Histories - St. Louis Formation
Horizontal Drilling in Kansas
Case Histories - St. Louis Formation

Mississippian St Louis Formation PIF: 3.1


Horizontal - Vertical Productivity Comparison
100,000
McHargue Lease Mnthly. Rate
McHargue Lease Cumulative 50,586
Avg. Offsetting Well Mnthly. Rate
Avg. Offsetting Well Cumulative
Drill Horizontal Lateral in St. Louis Formation
8,871
13,407
10,000

1,000

100
Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99
Horizontal Drilling in Kansas
Case Histories - McClouth Formation

Toe Up
Horizontal Drilling in Kansas
Case Histories - McClouth Formation

Atokan McClouth Formation PIF: 5.5


Horizontal - Vertical Productivity Comparison
100,000
Seaver 9-H Mnthly Rate
Seaver 9-H Cumulative
31,240
Avg. Offsetting Well Mnthly. Rate
Avg. Offsetting Well Cumulative

10,000

5,655

1,000

100
Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99
Horizontal Drilling in Kansas
Case Histories - Bevier Coal Formation
Horizontal Drilling in Kansas
Case Histories - Bevier Coal Formation

Cherokee Bevier Formation PIF: 3.4


Horizontal - Vertical Productivity Comparison

1,000,000
SW 14-15S-24E Lease Mnthly. Rate
SW 14-15S-24E Lease Cumulative
Avg. Offsetting Well Mnthly. Rate
Avg. Offsetting Well Cumulative 127,790
100,000

30,031

10,000

1,000

Drill Horizontal Laterals

100
Jan-98 Jul-98 Jan-99 Jul-99
Horizontal Drilling in Kansas
Case Histories - Peru Formation
Horizontal Drilling in Kansas
Case Histories - Peru Formation

Marmaton Peru Formation PIF: .58


Horizontal - Vertical Comparison
1,000

385

224
100

10

Benning 1H Mnthly. Rate


Benning 1H Cumulative
Avg. Offsetting Well Mnthly. Rate
Avg. Offsetting Well Cumulative

1
Jan-92 Jul-92 Jan-93 Jul-93
Horizontal Drilling in Kansas
Case Histories - Arbuckle Formation
Horizontal Drilling in Kansas
Case Histories - Arbuckle Formation
Horizontal Drilling in Kansas
Case Histories - Marmaton Group
Horizontal Drilling in Kansas
Case Histories - Viola Formation

Toe Up
Horizontal Drilling in Kansas
Conclusions

Currently a Mixed Bag of Successes and Failures


 Best Performing Reservoirs
Atokan Group - McClouth Best PIF: 5.5
Mississippian - Osage Best PIF: 5.3 to 3.1
Mississippian - St. Louis Best PIF: 3.1
Cherokee Group - Bevier Coal Best PIF: 3.4
Mississippian - Spergen-Warsaw Best PIF: 2.2
 Poorest Performing Reservoirs
Marmaton Group - Peru Best PIF: .58
Chase Group Best PIF: .89

 Most Horizontal Candidates not Properly Screened


All Reservoir’s w/ Low BHP & Kh Perform Poorly
Chase Group, Marmaton, Peru, some Mississippian
All Reservoir’s w/ High Rcrvy. Eff. Perform Poorly
Arbuckle, some Mississippian
Horizontal Drilling in Kansas
Conclusions

Many Good Candidates not yet Tested

Thin Beds in Lansing-Kansas City

EOR in Multiple Reservoirs

SAG-D Thermal in Cherokee Sands of SE Kansas

Attic Oil in Large Structures (Ordv. and Miss.)

High BHP, Low Kh of Fractured Miss of SC Kansas


Horizontal Drilling in Kansas
Conculsions

Horizontal Drilling Activity by Year


in
Kansas and Canada
1,400 14
Canada
1,200 Kansas 12
Wells Drilled in Canada

Wells Drilled in Kansas


1,000 10

800 8

600 6

400 4

200 2

- 0
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Year
Horizontal Drilling in Kansas
Acknowledgements

Petroleum Research Section


Dr. Timothy Carr

Kansas Corporation Commission


Conservation Division
Dave Williams
Donna Dill

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