A Holistic workflow for evaluating and

developing SRR Cypher

Joe Dumesnil
China Unconventional Tech
Team Leader

2011 HALLIBURTON. ALL RIGHTS RESERVED.

Unconventional Source Rock Reservoirs (SRR)

Difficult-to-produce formations -
special completion techniques
Larger amounts of data & more
engineering manpower are
required.
Unconventional gas reservoirs vs
conventional reservoirs.
Reservoir usually Highly
Heterogeneous (Faulted or
Fractured)
Unconventional gas production
economically viable:
Advances in horizontal drilling Gas Window
More Mature Oil
Advances in completions, Window
Less Mature Oil
Advances in hydraulic fracturing Window
 Unconventional Team Organization

Organizational
Collaboration
Multidisciplinary team
All disciplines are interactive
when performing:
Assessment
Operational program
Optimization

2011 HALLIBURTON. ALL RIGHTS RESERVED.

3
Customer Reservoir Modeling

Earth
Model

Petroleum System Asset Valuation and

Analysis Planning
Geologist & Reservoir Engineering
Geophysical
Analysis Predict Reserves
Financial Backing
Earth
Modeling
Changes Are Limited

Basin Modeling
Slow Loop Customer Owned
Geochemistry
Petrophysics

Data Management
CYPHER Service Drilling & Completion Engineering
Fast Loop Halliburton Owned

Static Earth
Model

Petroleum System Completion / Drilling Asset Valuation and

Analysis Engineering Planning
Complex Planar Planar w/
Complex System Complex Planar Planar
w/ Fissures Fissures

YELLOW POINT 3-1 Stress

Stress Profile
7300 Differential
( max min)
Conductivity of each Fracture (mDft) 0 2 4 6 10

7400
Natural
7500
Fractures

Geophysical
0 SW SW HB HB HB
7600
2 SW HB HB HB CL
HB HB HB CL CL

Depth (ft)
4

7700 8 HB HB CL CL CL
10 HB CL CL CL CL
7800 12 CL CL CL CL CL
SW = SlickWater HB = Hybrid CL = Crosslinked
7900
Fluid System
Liquid Proppant Proppant
8000 Fluid Volume Fracture Density Brittleness
Production Volume Concentration

Analysis
100% LOW HIGH HIGH HIGH 0

8100
80% 2

60% 4

8200 Permeability Fracture Conductivity (mDft)

40% 6

Low High 0.00 100 200 300 400 500 600 700 800 900 1000
20% 8

8300 0% HIGH LOW LOW LOW 10

5000 5750 6500 7250 8000 0 250 500 750 1000

Closure Stress (psi) Length (ft)
Barnett Bakken Eagle Ford Haynesville

Completion Optimization

Integrated
Earth Field
Modeling Planning

Well
Dynamic Placement
Basin Modeling
Geochemistry
Integrated
Petrophysics Asset Model
Stimulation
Validation

Production
Analysis

Data Management
CYPHER Service

Static Earth
Model

Petroleum System Completion / Drilling Asset Valuation and

Analysis Engineering Planning
Complex Planar Planar w/
Complex System Complex Planar Planar
w/ Fissures Fissures

YELLOW POINT 3-1 Stress

Stress Profile
7300 Differential
( max min)
Conductivity of each Fracture (mDft) 0 2 4 6 10

7400
Natural
7500
Fractures

Geophysical
0 SW SW HB HB HB
7600
2 SW HB HB HB CL
HB HB HB CL CL

Depth (ft)
4

7700 8 HB HB CL CL CL
10 HB CL CL CL CL
7800 12 CL CL CL CL CL
SW = SlickWater HB = Hybrid CL = Crosslinked
7900
Fluid System
Liquid Proppant Proppant
8000 Fluid Volume Fracture Density Brittleness
Production Volume Concentration

Analysis
100% LOW HIGH HIGH HIGH 0

8100
80% 2

60% 4

8200 Permeability Fracture Conductivity (mDft)

40% 6

Low High 0.00 100 200 300 400 500 600 700 800 900 1000
20% 8

8300 0% HIGH LOW LOW LOW 10

5000 5750 6500 7250 8000 0 250 500 750 1000

Closure Stress (psi) Length (ft)
Barnett Bakken Eagle Ford Haynesville

Completion Optimization

Integrated
Earth Field
Modeling Planning

Well
Dynamic Placement
Basin Modeling
Geochemistry
Integrated
Petrophysics Asset Model
Stimulation
Validation

Production
Analysis

Data Management
Earth Modeling Workflow
Geologic Modeling
Geophysical Modeling
Advanced Petrophysical Analysis
Advanced Facies Distribution
Eagle Ford Model Mapping Brittleness Index
Well Placement and Fracture Design
EFFECTIVELY USING THE EARTH MODEL
 A Geologic Earth Model can be used to
capture all key reservoir attributes to
understand fracture growth behavior

Fracture growth will vary depending upon the mechanical

properties and the initiation point:
Height
Length
Conductivity
 A Geologic Earth Model can be used to
capture all key reservoir attributes to
understand fracture growth behavior

Fracture growth will vary depending upon the mechanical

properties and the initiation point:
Height
Length
Conductivity
Getting the Well in The Right Place

Drilling (Sperry/HDBS)

Drilling Fluids

Cementing

Completion Tools

Wireline / Perforating
$8,425,000.00
4.5 MMscf/d Pinnacle

Stimulation

Coiled Tubing (delta)

Drilling (Sperry/HDBS)
Drilling Fluids
Cementing
Completion Tools

$4,175,000.00 Wireline / Perforating

Pinnacle

8.2 MMscf/d Stimulation

Coiled Tubing (delta)

Ref. SPE 132990

 Improved Well Placement
Providing Improved Contact with
High Quality Reservoir

RGD Confidential Aug 8, 2012

The Optimization Workflow Completion Design

Iteration

Sensitivity
and
Uncertainty
Eff Perm
Frac Length
Frac Width
Frac Spacing

Optimized Well Design

Optimized Well Spacing
Data Relationships

FRAC LENGTH

Frac Length

MatrixPerm (nD)

Frac
Conductivity

FRAC SYSTEM
CONDUCTIVITY PERMEABILITY
The Optimization Workflow Calibration

Calibrated Design Tools

Effective Perm
Effective Porosity
Mech Properties
Production Data
Iteration

Production

Production
History
Matching Fracture Gradient
Closure Stress
Fracture Length
Fracture Conductivity
Well Placement Field
Cypher - Summary

Creates a collaborative environment and multi-discipline

cooperation
Focuses on reservoir understanding
Moves from costly and time consuming trial and error
techniques into computer modeling solutions to
expedited learning
Continuously updated models enable engineers and
geoscientists to make better decisions
CypherTM is a workflow that continuously narrows the
scope of uncertainty for shale developments.