Examining the Technology of CBM Multiple-lateral

Horizontal Well

Dr. S. K. Singh
VP & Head-Technical-Unconventional

Unconventional Gas Asia Summit (UGAS 2013)

New Delhi, 18-19 April 2013

Agenda

Essar CBM Portfolio

Key CBM Success Factors
Well completion types, Traditional approach & its limitation
Horizontal Well types & its Criteria
Horizontal vs. Vertical Well
Horizontal Well Design
Key Challenges in CBM Multi-lateral
Economics
Application of horizontal well technology in India
Conclusion

Essar Portfolio

CBM:
CBM Resources c. 13 TCF

Essar Leading in the Unconventional Energy Space

Pioneering CBM E&P

work in India
Among the largest CBM
acreage & resources
Successful CBM venture
at Raniganj
Technical manpower &
reservoir understanding

The Raniganj CBM Success so far

Field overview
113 BCF of (Proved+2P reserves,) 2C resources of

Reserves/ Resources

445 BCF, Un-risked Prospective is 297 BCF .

Peak Prod. Estimate of about 3.0 mmscmd

Location : Raniganj Coalfield

State
: West Bengal

Phase I & II successfully completed and block is

currently in Phase III (since May, 2012).

Current status

Presently block producing c. 55,000 scmd

One GGS is Completed and operational ,revamp

under Progress. 2nd is being commissioned and 3rd

is under progress.

About 350 more development wells in coming

Key milestones

years for achieving full production

Surface facilities like GGS, MCS and Gas pipeline
being laid down under a BOO model
Provisional Gas sales approval received from DGH,
India. Final approval expected soon.
Gas sales tied-up in both small and bulk scale.

The Raniganj CBM Success So Far

Drilling Rig For CBM

Hydrofrac Unit

PC Pumps running
at test wells

Separators installed
at test wells

CSR: Plantation at test well

site

Essar Gas sales customer

end-point

Completed GGS at site

Model Well site

Key CBM Success Factors

1. Coal Thickness
Number, thickness and extent of coal seams
Typically need > 3m in aggregate
2. Gas Content and Gas saturation
Biogenic and Thermogenic sourcing
Coal Rank and Type: bituminous/sub-bituminous
Gas content and composition: > 2 m3/t, 92+% CH4
Sorption properties of coal: >60% saturation
3. Permeability
Governed by presence of cleats and natural
fractures
Coal Rank: 0.4 < Rvmax > 1.6 to promote cleating
Stress Setting: to promote cleat/fracture opening
4. Dewatering capability
Isolation from pervasive aquifers

Global CBM Plays Reservoir Characteristics

Basin

Raniganj East Black Warrior

India
Basin US

North
Appalachian
Basin US

Powder River
Basin US

San Juan
Basin US

Quinshui Bowen
Basin
Basin
China Australia

Depth (ft)

1300 - 4500

800 - 3500

1030 - 6570

400 - 1800

500 - 5000

Thickness of coal formation (ft)

20 - 160

1 - 10

2 - 20

70 - 150

Coal Rank

HV Bit

HV LV Bit

HV LV Bit

Gas Content (scf/tn)

88 - 353

125 - 680

26 - 445

25 - 75

100 - 600

300 - 900

200 - 400

Permeability (md)

0.5 - 40

0.01 - 40

0.01 - 40

1 - 1000

1 - 60

1-5

100

Reservoir Fluid Saturation (%)

70 - 100

80 - 100

50 - 100

100 - 100

100 - 100

Reservoir Pressure (psi)/(psi/ft)

0.433 - 0.5

0.0875 - 0.12

0.3

0.4

No of coal seams

Reserves (Bscf/well)

1-2

0.5 1.5

0.2 0.5

3 - 15

Source: SPE 103514

20 - 40

Lignite - Sub Bit Sub Bit - LV Anthracite

50 - 100
Bit

0.4 0.8 2.5 3.5

Schematic of CBM Well

20
Casing

9 5/8
Casing

Cement
behind
9 5/8
Casing,
up to
surface

5 1/2
Casing

PCP &
NTT

PCP & NTT

Different Completion Types

Open Hole Completion
Simple, cheap & Fracturing not
required
Generally in high permeability and
high thickness areas
No Casing is left to obstruct mining
activities
Cementing does not damage the coals
Gives unobstructed access to the coal
face from the wellbore

Different Completion Types

Open Hole Cavitation
Increases well radius
Thick seams.
Good permeability.
Extensive cleating.
Ranks of coal beyond the coalification
break.
Low ash content.
Over pressured zones
High in-situ stress

Different Completion Types

Cased Hole Completion
Multiple seams per well.
Thin seams of inches to a few feet thick.
Marginal economics for producing.
Large volumes of water produced early in
the life.
Normally pressured (some under
pressured).
Depth (1,0004,500 ft).
Coal fines.
Optimum coal rank, hvAb-lvb.
Good permeability.

Successful Well Completion Types

Open-hole (Barefoot)

Cavitation

Under-reamed

e.g. Powder River (USA)

e.g. San Juan (USA)

e.g. Powder River (USA)

Surat Basin (Australia)

Fracture Stimulation
e.g. San Juan ,Powder River
Quinshui Basin (China)

Different Technologies; Pad Drilling, Directional well

Challenges of Vertical wells in CBM

Low gas rate
High well density: 16 wells per

section on 40 acre spacing

Partial reserve recovery: 10 to 20 ft
coal exposure per well

Complex gathering system

Individual well pumps
Large expensive locations
Large scale logistic rig movement

Horizontal Wells Different Completion Types

Lateral in Single zone / Multi zone

Multilaterals
e.g. Qinshui Basin (China)

In seam & production from vertical

e.g. Bowen basin (Australia)

Multilateral pinnate pattern

e.g. Bowen basin (Australia)

Criteria for Vertical, Directional and Horizontal Wells

Well Type
Vertical/Directional
Cased hole, hydraulic
fracture

Common Scenarios
Low-medium permeability (1-30 md)
Multiple coals / low net/gross ratio
Low-medium permeability (<1 to 10 md)

Horizontal or Multi-lateral

Single or few thick coals

Desire for rapid degasification

Restricted surface access

When to choose
Horizontal Well

Source: Schlumberger, Challenges in Developing Coalbed Methane Resources using Horizontal Drilling

Advantages of CBM multiple lateral Horizontal wells

Increased exposure inside reservoir coal

seam per well

Better connectivity of cleats and fractures

exposure, increased permeability.

Increased production, better recovery of

coal seam gas, 50-75% in 1.5 to 4.5 mD

Dewatering time reduction thereby faster

production

Fewer wells results reduction in surface

facility and land requirement

Lower CAPEX / OPEX improved returns

Horizontal Well Types

Design selection for placement of horizontal drain hole in reservoir
Multi-Seam lateral
Single seam Multi-lateral, duel, triple, quadi, pinnet
Horizontal Length of laterals
Spacing between laterals

Process : CBM Multilateral design

Multilateral drain hole placement Design options based on

TVD of coal seams, Number of seams and thickness

Vertical separation between Coal seam
Areal extent of coal seam, and structural dip
Proximity to adjacent formations, like aquifer sand, fractures barrier
In-situ -stress orientation, directly affect permeability
Stability of roof and floor formation of coal seam

Completions design based on

Suitable for placement of drain hole design as per reservoir characteristics

Dewatering and gas production requirement
Future work over requirement
Cased hole completions tubing and casing sizes design based on maximizing
required flow rate.

Process : Directional Trajectory

Directional trajectory design:

Long Radius
angle build rates : 2 to 6 deg/30 m.
(long horizontal intervals): 1500 to
2000 m.
Medium Radius
angle build rates : 8 to 20 deg/30 m.
(horizontal intervals): 1200 to 1300 m.
Short Radius
angle build rates : 20 70 deg/30 m.
(horizontal intervals) : 300 to 400 m.

CBM Multilaterals, Medium Radius

Profile are most suitable, with wide range
of DLS 6-20deg/30m, for placing drain
hole within available TVD

Key Consideration CBM multilaterals

Finding optimal design for drain-hole placement for reservoir

Prediction of In situ stress orientation

Selection of simplest trajectory to achieve the drain hole placement objectives

with minimizing torque / drag and hole cleaning issue.

Maintaining well trajectory inside coal seam, with help of real time logs.

Selection of drilling fluid to stabilize formation without damaging flow

characteristics of reservoir

Ensuring Hole stability while drilling horizontal sections in coal seams

Cost effective completions design to achieve higher multilateral length in reservoir

Selection for dewatering equipment appropriate for selected multilateral design

Fracture Orientation and Horizontal Well Placement

Horizontal well to be drilled in the direction

of minimum horizontal stress (minimum

permeability), perpendicular to maximum
horizontal stress direction.

Key Challenges - Geosteering with LWD

Use of advanced error model survey techniques for proper landing of the
well in the reservoir with minimum deviation from Geological marker
Use of near bit inclination and Azimuthal Gama and geosteering technique
for placement of drain hole inside coal seam
Selection of logging tool parameter specific for identification of coal

Well Cost : Vertical-Deviated-Horizontal

Directional Well : 1100 1400 m

Vertical Well : 1100 - 1400 m

14%

16%

Drilling

Drilling

HF

11%
51%

Completion

53%

Surface Facility

22%

20%

Horizontal Well : 500 m

lateral, 1200 m depth
10%
0%

HF

13%

Drilling

10%

HF
Completion
Surface Facility
80%

Completion
Surface Facility

Worldwide CBM Well Costs

Comparitive CBM Well Costs US$000
3000
2500
2000

Surface Facilities
Stimulation
Completion
Drilling

1500
1000
500
0
Australia

USA
Core Hole

China

Australia

USA

China

Vertical - 600 m

Australia

USA

China

Vertical - 1000 m

Australia Australia
Single
Lateral

Dual
Lateral

USA

China

Tri
Lateral

Tri
Lateral

Marked difference observed in drilling and completion costs for vertical and horizontal wells
Source: RISC Analysis, Geof Barker, 5th annual CBM & Unconventional Gas June 2012

Cost Analysis of CBM Horizontal Well Performance

Horizontal vs Vertical well
30000
Horizontal Well 240 Acre
Vertical Welll 40 Acre

25000

Gas Rate M3/D

4 Vertical Wells 40 Acre

20000
15000
10000
5000
0
0

2000

4000

6000

8000

10000

12000

Days

Porosity Permeability
2%

10 mD

Gas
Gas
Content Saturation
7.5
80%
m3/ton

Lateral
Length

Depth

Thickness

Bulk
Density

Vl

Pl

500 m

1200 m

10 mD

1.41 g/cc

15 g/cc

583 psi

Application of Horizontal Well Technology in India

Horizontal multilateral wells have
advantages

EDT - 02
RL-72.00
0.00
18.00

1 horizontal well gas recovery

equivalent to 4 vertical wells gas
recovery
Smaller surface requirement for
horizontal wells
1 horizontal well cost equivalent
to 2 vertical wells cost

Top Soil
Tertiary

75.00

Panchet

Up-Stock
Operation

Surface
Casing

Performance of Horizontal wells in

multi-seam reservoirs?

~~
~~
~~
~~

Carrier String With Up stock on bottom

300.00

300.00

365.58-367.18
374.54-376.62

1.60
2.08

397.76-400.00

2.24

432.82-433.54

0.72

468.40-470.62

2.22

488.40-493.00

4.60

504.20-507.20
511.30-513.94

3.00
2.64

563.96-567.78

365.58-367.18
374.54-376.62

1.60
2.08

397.76-400.00

2.24

432.82-433.54

0.72

468.40-470.62

2.22

Raniganj
488.40-493.00

4.60

504.20-507.20
511.30-513.94

3.00
2.64

563.96-567.78

3.82

Ironstone
Shale

625.00

TD - 700.00

Lower
Coal
Seam

RN-3

3.82

625.00

Upper
Coal
Seam

RN-4

RN-1&2

Possibility of Horizontal Wells in Indian CBM Basins

Jharia (2)
2 horizontal wells 1000 m depth, 1000 m
lateral, Side -lateral/Pinnate Wells 2000 m
side-laterals
Seam thickness 5 m, permeability 3-5 mD
Side-lateral collapsed
~5 MSCMD production from upper zone after
isolations

Bokaro (3)
1 horizontal well 1000 m depth,
1000 m lateral
Good gas production

Sohagpur (6)
In-seam well - 800 m lateral
Seam thickness 8 m, permeability 200 mD
Peak production ~4 MSCMD but couldnt
sustain due to very high water production

Tertiary coal
sequence

Typical
Gondwana
multi-seam
thickness

Conclusion
Structured data gathering for planning horizontal wells during exploration
phase
Need integrated approach for planning of horizontal well involving
geology, reservoir, completion and drilling teams; detailed simulations
need to be done for arriving at cost effective horizontal well solutions
In Indian basins, there are potential locales with application of horizontal
wells for faster CBM production
With proper planning, horizontal wells could be a very cost effective tool
for field development