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Developing the Heavy Oil and Oil Sands Assets

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 Heavy Oil and Oil Sands

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Heavy Oil and Oil Sands Opportunities

Heavy Oil and Oil Sands Dene the assetDetermine asset quality and quantity Precise well placementMaximize reservoir exposure and drainage Optimize wellbore construction/completion Minimize non-productive time/maximize reliability Optimize production from sales meter to reservoir Maximize recovery and minimize maintenance ExpertisePeople and Delivery

Each will be discussed with technological solutions that are deliverable today; however, more technical advancements are coming in the near future. Please discuss your asset challenges with your local Halliburton representative.

Heavy Oil and Oil Sands

 Heavy Oil and Oil Sands

Low-cost drilling, production and processing have led natural gas and light crude oil to be the prominent hydrocarbons recovered first from producing fields. However, high oil prices and reduced oil discoveries have increased interest in recovering heavy oil. Heavy oil is characterized below:

Other areas of the world have heavy oil/oil sands and the areas are being investigated for potential development, at a more rapid rate than ever before. Key Opportunities Heavy oil and oil sands should be considered differently than traditional light crude developments. Planners should first examine the path from the sales meter back to the reservoir. Because of its low API number, metals and sometimes sulfur content, the price of heavy crude may be discounted. Also, the unconsolidated sands present unique challenges often associated with higher costs. Therefore, the producer should consider developing the asset from the sales meter back to the reservoir, and not the reverse. This is a different approach and personnel assigned to the project must have the skills to manage this different approach. Operators must maximize the value of the crude downhole while overcoming production/drilling issues such as crude mobility. Further, high permeability and porosity create well construction/completion and recovery issues; many heavy oil and oil sands reservoirs have low reservoir pressure, requiring pressure maintenance. Finally, the cost expended to obtain the crude cannot exceed revenue from the produced crude. The extra processing, costs incurred for sand production/disposal, and the environmental impact the entire heavy crude production and processing system have to be considered in the economic development. This document addresses the key opportunities to help make heavy oil/oil sands development profitable.

Chemically characterized by the asphalitic content and usually having sulfur and metal entrained in the oil molecules. Crude gravity (below 22 API) and extra heavy crude (equal to or below 10 API). Viscosity (100 centipoise to greater than 104 centipoise) Often reservoirs have low pressure some time during the value cycle.

This manual covers value-added solutions applicable in any location whether the heavy oil/oil sands are located offshore, deepwater, land or in the Arctic. The Western Hemisphere has 69% of the worlds technically recoverable heavy oil, with an estimated 434 billion barrels of oil. From a global perspective, a few of the large heavy-oil-deposit areas include the Athabasca, Canada deposits; Peace River, Canada deposits; Cold Lake, Canada deposits; Orinoco South America deposits; Volga Russia deposits; Bohai Bay Penglai China deposits; Baghewala oilfield in Rajasthan, India; Frade offshore Brazil; and Bakersfield, California, USA deposits.
Literature: Rao, Vik. 2007. From Rock Face to Fuel Pump. Petroleum Review, February: 28-31.

Defining Asset Quality and Quantity


Asset and crude characteristics determine recovery and processing systems

Defining Asset Quality and Quantity

Fluid samples, temperature data, and pressure data are obtained using the Reservoir Description Tool (RDTTM) tester that helps define overall asset values.

The asset owner must define the asset and continuously refine the asset value from exploration through final abandonment. In this section, we discuss some of the value-added solutions (VAS) that help define the quality and quantity of assets in the exploration phase and throughout the hydrocarbon value chain to get the maximum economic value.

Evaluation of the Asset While Drilling Especially in a new field, several determinations must be made at the beginning when the heavy oil/oil sands reservoirs are first exposed. Value determinations are made by coring and logging while drilling (LWD) evaluations on early wells. Dependent on the economic cost breakeven of the field/well, some services may be used while others may not be. For example, in offshore nonthermal operations with a potential future waterflood operation, operators may apply many of the technologies described herein to help define assets while thermal multiwell operations may use only a few of the services discussed in this section. Individual Value-Added Solutions are described with typical asset applicability noted.

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Defining Reservoir Quality and Quantity By Coring Information obtained from core analysis is used in a variety of oilfield disciplines, impacting decisions pertaining to field development, reserves calculation, production estimates/performance, drilling performance, and others. For the oil company, the key parameters of formation evaluation are: (1) amount of hydrocarbon in place, (2) the amount recoverable and (3) the type of crude. Coring provides the only direct means of access to the relevant parameters of porosity and permeability without requiring interpretations such as what logs require. Core analysis data contributes to correlations with well logs and makes logging data more valuable to the operator. While conventional well logs play an important role in well reservoir identification and analysis, only coring allows the physical measurement of actual formation samples. This means that core samples are among the most valuable sources of data for the study of subsurface reservoirs, making coring a vitally important method of obtaining data for geologists, drilling engineers, petrophysicists and reservoir engineers. Coring deliverables include:

In addition, special core analyses, such as flow tests on full-sized cores, can provide more complex measurements, often used in reservoir engineering applications. Information from more advanced tests can be used to:

Quantify capillary pressures (oil-in-place) Quantify relative permeability (fluid flow characteristics) Quantify wettability Estimate enhanced recovery Correlate log-related parameters, such as formation factor, porosity and acoustical properties Evaluate drilling, completion, workover and injection fluid reactions with reservoir rock


Defining Asset Quality and Quantity

In unconsolidated heavy oil or oil sands, two keys are important in coringrecovery and quality-for meaningful data to be acquired.
Good quality core, in general, usually implies that the core is mechanically undisturbed and not invaded, or at least not fully invaded. To reduce the likelihood of mechanical damage to the core, several key areas can be addressed: including optimizing core head selection and parameters, including core barrel stabilization, and using specific surface services to preserve quality. In order to obtain accurate results from core analysis, samples must be recovered in good condition. Types of damage suffered by heavyoil/oil sands cores include:

Geological identification of pay zone and cap rock Porosity, variations Saturations Permeabilities, relative permeabilities, variations Wettabilities Sedimentology Delineation of fields, pay zones Rock mechanics measurements Selection of completion type Selection of sand screen pore sizing Selective presence of hydrocarbons

Mechanical Damage Compression stress During coring, most mechanical damage occurs due to stress release as the core sample enters the inner tube.

Composition of hydrocarbon Selection of recovery mechanisms

Torsional stress If the inner core barrel rotates in relation to the core bit, the core may be subject to torsional stress, resulting in shearing off or milling of the core. This may also occur if the inner gauge of the core head is too aggressive. In unconsolidated sandstones, cores can be easily washed out of the barrel and not recovered if the rate of penetration is too high or other factors occur.

In the core barrel, as long as the well pressure is higher than the core pressure By osmosis, when tripping the core barrels out of the well and while the core is in the barrels on the surface

Defining Asset Quality and Quantity

Thermal Damage The action of the cutting structure of the core bit, (especially the cutters toward the inner diameter of the bit, as well as some friction between the core and the inner gauge/barrel) can generate heat that can cause chemical and physical changes to the rock. Physical Damage The core sample is subject to infiltration by drilling mud, which can physically contaminate the core and render measurements of wettability inaccurate. In addition, changing pressures that occur while tripping out of the hole during core retrieval may impact various core properties. If the coring fluid does not create a good mud cake for prevention of mud invasion and ROP of the core bit is too high, then the core may not be recovered and the core may be unusable. Specialized coring fluids are required for retrieving unconsolidated core with quality data as the end goal. Contact your local drilling fluid representative to address these needs as the formation may require a synthetic fluid or low fluid loss water base fluid depending on the amount of invasion. Chemical Damage Similarly, those factors that may cause physical damage to a core sample can also result in chemical changes to the core sample. Core Invasion Often the heavy oil/oil sand reservoir is unconsolidated, with high porosity and high permeability. Core invasion happens at different times during the core acquisition process as listed below:

Low invasion coring services deliver a core sample untouched by coring fluids, which avoids chemical alteration and enables advanced core analyses. These systems include specially designed core heads, plug taking and trimming, and tracing to measure mud invasion. A special procedure for tripping out of the hole and preserving plugs also helps prevent mechanical damage and atmospheric exposure. Cutting cores on-site while running a core gamma logger allows better core location identification and better core quality (less invasion). Additional specialized heavy oil/oil sands coring VAS tailored for unconsolidated sandstone are presented to help ensure core recovery and core quality. The Full Closure System (FCSTM) is ideal for recovering core in soft, sandy, unconsolidated formations. It is hydraulically activated, which minimizes the number of mechanical parts and increases reliability. The system receives the core. Hydraulic pressure collapses the sleeve to totally enclose the core before pulling off bottom. The system incorporates the Hydro-Seat Barrel (HSBTM), which provides clear indication of jamming at the surface. The Full Closure System is available on either the standard core barrel or wireline systems.

Ahead of the core head if the speed of the filtrate in the rock is higher than the ROP Ahead of the core head when core is cut

The Full Closure System (FCSTM)

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The patented PosiCloseTM system is designed to maximize core recovery in soft, unconsolidated formations. Unrestricted entry eliminates jamming from premature catcher-core contact. The catcher system fully closes to help ensure complete retention throughout retrieval. The PosiClose systems inner sleeve provides smooth, unrestricted bore for core entering the inner tube, which helps prevent jamming from premature contact with both core catchers. The inner sleeve is lifted after ball drop from surface, leaving the system ready to engage the core. Activated by upward drillstring movement, the clamshell catcher PosiCloseTM system closes, fully retaining the core.
#11 Posi Close COR 02-1-4C &7C WLC 02-1-3C

A natural gamma log can be performed with the Core Gamma Logger (CGL), a portable device that provides gamma ray logs immediately after the core has surfaced. CGL is used mainly to correlate cored sections with anticipated lithology by delineating shale from non-shale sections. Reliable, on-site analysis enables operators to make quick, real-time decisions on further coring, testing, and well-completion activities. Defining the Reservoir While Drilling Generally, MWD/LWD value-added services will be utilized in heavy oil/oil sands reservoirs where rig costs are exceptionally high or asset is remarkably strategic. Often the production mechanism will involve secondary recoveries, such as flood fronts, nonthermal operations, and/or identification of MLT placement. Minimal MWD/ LWD but key evaluations (such as gamma ray) is used in high well-count fields, where the reservoir is well known, or in tight-budget operations. This section discusses heavy oil fields with high infrastructure costs needing value-added solutions. The InSite ADRTM, azimuthal deep resistivity sensor, provides a new level of reservoir navigation capability. By combining a geosteering solution and traditional resistivity measurement in one package, the InSite ADR sensor addresses the need for stratigraphic navigation and a highly accurate petrophysical evaluation in one tool. While drilling the pay zone, the InSite ADR system provides extra shallow to deep (up to 16 ft (~5 m)) azimuthal resistivity readings that can detect approaching bed boundaries and determine if the approaching boundary is above, below, or to the side of the well trajectory. The resistivity and advanced structural modeling, allows the StrataSteer 3D service to make recommendations and the well trajectory can then be steered to keep the borehole in the reservoir and help maintain the desired distance from top of pay or water zone.

Defining Asset Quality and Quantity

The Sponge CoringTM system provides the most realistic petrophysical data, where oil seeping from the core and can help:

Acquire accurate reservoir data for planning and managing enhanced oil recovery. Identify oil zones for secondary and tertiary recovery, transition zones, oil/water contact, depleted zones and mobile oil zones. Measure in-situ conditions, oil and water saturation, permeability, relative permeability, capillary pressure, and gas saturation.

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When the core is retrieved on surface, surface coring services can be performed, including gamma logging, plug taking, core marking, preservation, and packaging prior to shipping to a lab. Due to the fragile condition of unconsolidated sandstone often found in heavy oil/oil sands, special handling to protect the integrity of the core, special alignment devices, and shipping preparations are required for transport.

Permeability indication and hydrocarbon type


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Identifies changes in oil viscosity Identifies low pay zones Finds fluid contacts

Real-time evaluation of high-cost exploration wells Reservoir evaluation in high-angle and horizontal wells

Defining Asset Quality and Quantity

Insite ADR sensor provides shallow to deep (>16 ft, ~5 m) azimuthal resistivity readings that detect reservoir boundaries.
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As part of the StrataSteer 3D geosteering service, the numerous directional resistivity measurements from the InSite ADR sensor are analyzed and visualized in the industrys most advanced geosteering model today. This comprehensive consulting service gives the operating company the ability to maximize contact with the productive interval. Combining Insite ADR sensor, StrataSteer 3D software, and the onsite and/or remote geosteering consulting services, Sperry Drilling Services can contact the most productive interval with minimal non-productive time.

BATTM (Bi-modal AcousTic) LWD Sonic tool VAS can provide compressional and shear slowness (t) logs in both fast and slow formations. In high-angle and horizontal wells, where wireline pipe-conveyed logging can be expensive and problematic, the BAT tool reliably delivers early and accurate sonic travel time data. With the BAT sensor, wireline-quality measurements are obtained while drilling, before the onset of borehole washouts or alteration. Running an LWD quad combo with the BAT tool can save rig time, while delivering superior data quality and maximum reservoir deliverability. BAT Sonic dual-transmitter, dual-frequency, and dual-receiver array configuration provides measurement redundancy for superior reliability. In 2008, QBATSM LWD service is being introduced with improved signal to noise ratio with new wideband receivers to provide more comprehensive borehole coverage and better data quality in poor borehole conditions. Also, Wireline sonic value-added technology available is called the WaveSonic diagnostic tool and provides the same data as the BAT and QBATTM LWD services.

MRIL-WDTM value-added imaging tool technology provides bound fluid, free fluid, and total porosity in real time while drilling. Unlike traditional porosity devices, which are affected by rock matrix changes, the MRIL-WD tool can be used in complex or mixed lithology sequences to provide measurements of porosity that are mineralogy independent. The MRIL-WD tool measurements dissect the pore fluids into moveable fluids and capillary/clay-bound water, which provides an indication of the reservoirs permeability. The MRIL-WD service provides the same high-quality information as the wireline MRIL Prime and MRIL-XLSM services.

Sonic services provide the following measurements.

Petrophysical

MRIL-WD Service Applications include:

Porosity determination Formation mechanical properties Gas detection from Vp/Vs ratio Complex lithology

Real-time identification of free- and bound-fluid volumes Mineralogy-independent porosity measurement Identification of free-fluid type: gas, oil, or water

Drilling

Pore pressure application Rock strength calculations provide optimum mud weight Bit selection and bit wear prediction Borehole stability analyses

Geophysical Time-to-depth seismic correlation while drilling Real-time synthetic seismograms AVO (amplitude versus offset) analysis

Halliburtons Reservoir Description Tool (RDTTM), provides clean, truly representative samples of a wells formation fluid, along with a broad range of valuable reservoir data. RDT enables the heavy oil operator to optimize well completions and right size/facilities design surface based on field properties and Dual Probe Section reservoir conditions. This is accomplished through:

Defining Asset Quality and Quantity

Zero ShockTM PVT (pressure-volume-temperature) bottomhole sampling tool Formation fluid properties monitoring Permability anisotropy testing and monitoring Field wide pressure trends Asset reservoir compartmentalization Interwell communications Reservoir Isolation

Quartz Gauge Section

Flow-Control Pumpout Section

Defining Reservoir After Drilling We have discussed the MRIL Prime, MRIL-XL and WaveSonic tool in relation to their complementary LWD services. These are generally used in the heavy oil reservoirs that involve high rig rates (i.e., offshore), highly strategic reservoirs or those that are involved with secondary recovery systems (i.e., waterfloods). In any heavy oil/oil sands reservoir, no matter where it is located, fluid samples may need to be taken to determine fluid quality. Crude quality can be a very important variable in determining economic viability. Therefore, downhole crude sampling providing accurate data is critical because the design of the well completions, pipelines, and facilities can often be dependent on the information. Also, different owners may have different leases or different zones. Every owner must know the crude quality so crude pricing can be adjusted accordingly.

Reservoir Description Tool (RDTTM) tester

For the heavy oil asset, the dual probes, special oval pads and straddle packers have been developed to obtain the heavy oil samples successfully. Through its advanced digital control feedback system, which makes instantaneous changes in pumpout flow rates to maintain a prescribed pressure, the RDT Zero Shock PVT sampling tool method eliminates pressure transients during pumping and sampling ensuring reliability. The in-situ PVT test determines the bubble point and ideal sampling control pressure. Sample chambers are filled against hydrostatic pressure and additional pressure can be applied to maintain single-phase integrity against thermal gradients. The RDT tool enables up to eight fluid and formation properties to be monitored during testing: resistivity/capacitance, viscosity, density, bubble point, compressibility, horizontal permeability, vertical permeability, and anisotropy. By monitoring these properties in real time, operators can determine the optimum point at which to take the samples; a steady state condition indicates that minimum filtrate contamination has been achieved and sampling can begin.

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ALDTM service (Azimuthal Lithodensity Sensor) provides density and valuable formation dip and borehole shape information for geosteering and hole-quality applications. This technology can be used in MLT and offshore applications; real-time and recorded azimuthal data can be displayed in either log curve or formation image formats.

Multi-Chamber Section

Use of the Reservoir Description Tool (RDTTM) tester includes:


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Contamination minimized through faster pumpout times Sample integrity ensured through Zero Shock pressure control tool High-quality PVT samples Rig time reduced Accurate, reliable hydrocarbon/fluid typing Accurate permeability estimates Built-in redundancies for high reliability assurance

Defining Asset Quality and Quantity

In mature, heavy oil, cyclic steam operations, reservoir surveillance and monitoring are critical. Typical reservoir surveillance and monitoring include the following: temperature, steam identification (as it relates to vapor or liquid), and oil saturation. Utilizing the Reservoir Monitoring Tool (RMTTM) system, Krypton spinner surveys and downhole steam (vapor) flow profiling, can indicate how multi-wells may or may not be receiving the heat quality that is required for crude recovery. Indonesia heavy oil operations utilize these solutions for monitoring steam operations. The delivery method of deploying wireline tools such as the length of the toolstring and logging timing can play a part in deepwater, horizontal, multilateral, or shallow heavy oil/oil sands wells economics. The LOGIQTM open hole system provides a high data rate (via telemetry technologies) and shorter toolstring length without any penalties in temperature or pressure rating specifications. Comparing the LOGIQTM system with the common quad combo, configuration of the tool length is reduced by more than 50 feet (15.24 meters). Time spent drilling the rathole to permit evaluation of pay zones near the bottom of the well is also significantly reduced. In addition, shorter logging toolstrings have a lower potential to become stuck than longer length tool strings in highly unconsolidated sandstone. The above LOGIQTM are significant advantages in heavy oil/oil sands operations. When logging conditions prohibit use of a mechanical caliper, or when mechanical caliper data is otherwise absent, the electrical caliper Array Compensated Resistivity Tool, (ACRtTM) system uses short-spaced induction data and variable vertical resolution filters (1, 2 , and 4 feet, 0.3-1.2 meters) to provide the balance of vertical resolution and accuracy. The ACRt system, part of the LOGIQ system, can provide high-fidelity samplings at near and deep wellbore regions, as well as real-time computed radial borehole curves.

Heavy oil reservoirs are thick but they often have varying pay quality. To optimize completion techniques and production, a VAS defining the pay is required. The Oil Mud reservoir Imager (OMRITM) tool generates crisp, high-resolution digital images of the wellbore down to 2.54 centimeters (1 inch) of vertical resolution, instead of the 30.5 centimeters (1 foot) of vertical resolution generally available with conventional logging tools in oil-base mud fluid systems. The extra resolution makes thin bed pay and other important features clearly visible and improves images, in less than ideal borehole conditions. Exploration and Production (E&P) risks are reduced using the OMRI tool by:

Identifying important reservoir characteristics, such as structural changes, stratigraphic dips, sedimentary geometry and texture, borehole stresses, and lithologic unit thickness Recognizing permeability barriers, sand attributes, clasts, vugs, and etc. Complementing core information Quantifying important reservoir characteristics such as lithology, porosity, water saturation, permeability, fluid profile, and flow potential when integrated with other logs and well information Identifying and quantifying thin bed pay

Understanding the Asset GeoGraphix integrated Windows -based E to P software provides streamlined workflows for the heavy oil/oil sands operator. GeoGraphix software domains include: geologic and geophysical interpretation, engineering optimization, and economics domains. It is one of the most utilized software systems in the industry for high multi-well heavy oil/oil sand assets.

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The GeoGraphix DiscoveryTM suite is a geologic and geophysical interpretation system that integrates software solutions. GeoGraphix Discovery on OpenWorks software contains the same tools as Discovery software but works off the Landmark OpenWorks system environment, a widely used project data management application. The Discovery suite is supported by a common database and project architecture. Geoscientists use this tightly integrated system to easily interpret reservoirs, support field development, and exploit mature assets. The collaborative environment provides the ability to easily share and compare analytical results from many different viewpoints and/or team members. Using advanced methodologies for correlating, log analysis, and time-to-depth conversion, geoscientists can build more accurate subsurface models.

Defining Asset Quality and Quantity

LOGIQTM Quad has a shorter toolstring length and faster data transmission compared to the Quad Combo DITSTM tool.

For heavy oil/oil sands operators, cost is a major consideration. Wireline units with well tractors can deploy tools quicker than free falling tools (particularly in heavy oil) such as the magnetic guidance survey tool, pressure gauges, and other intervention tools. Halliburton well tractors can reduce costs by providing real-time monitoring, and travel in both directions (in or out of the well) to deploy tools as compared to using large coiled tubing (CT) units. The well tractor has an integrated casing collar locator (CCL) and modular drive improving speed and accuracy for intervention. With heavy oil/oil sands wells, often unconsolidated sand has to be cleaned out or fill has to be checked. CT and slickline units with specialized tools are available from Halliburton. Contact your local representative for these requirements.

Geologic and Geophysical Interpretation Domain smartSECTION software, the industrys leading cross-section tool, delivers log correlation, structural analysis, and sequence stratigraphic workflows. It supports digital and depth-calibrated well log data in high-performance workflows.

Discovery FrameBuilderTM software is an interpretation system that allows geologists to create complex three-dimensional structural and stratigraphic frameworks. Geologists can leverage surface-to-surface thickness relationships to build multi-surface conformable interpretations cut by faults and unconformities. Cross section and map views within Discovery smartSECTION software depict different views of the same 3D earth model as the interpretation evolves.

PRIZMTM software enables high-performance log analysis for multi-well, multi-zonal petrophysical projects and provides customizable functions for data editing, log analysis, and curve displays.

XSectionTM software lets geologists create, edit, and display geologic cross-sections of vertical or deviated wellbores. XSection software technology is fully integrated with PRIZM software, so curves or edits made within PRIZM software are displayed instantly in active cross-sections.

LogMTM advanced synthetics software ties seismic and well data together with the industry-standard synthetic package. LogM software technology is fully integrated with SeisVision software for seamless workflows. Also, included are WavXTM, AVO/AVA, and Fluid Substitution programs. LogM modeling software helps operators predict seismic responses from geologic data using structural or stratigraphic forward models. To confirm interpretations, models can be saved to SeisVision software for real-time comparison with actual seismic data.

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Defining Asset Quality and Quantity

Engineering Optimization Domain The Data Manager package includes the database for the Discovery multi-user project environment plus the components for project management:
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TracPlannerTM and SeisVisionTM applications help plan the well.

Project Explorer controls and organizes project data and manages the interpretive environment where applications integrate. WellBaseTM software environment is the portal into the powerful relational database. GeoAtlas software is the common mapping environment for the Discovery suite. The software can display and modify map attributes, and add drawings, objects, and annotations to create 2D /3D maps and montages. IsoMap software allows access to a wide variety of powerful functionalities, including a large number of gridding algorithms, control on gridding parameters, incorporation of faults, and calculation of volumetrics. LandNet software imports and manages land grid and cultural data, and creates layers of each for display in GeoAtlas applications. LeaseMap software technology is the mineral interest and leasehold mapping system that enables analysis of land ownership for a geographic region. Using LeaseMap software, land ownership maps for a company, partners, and/or competitors can be created.

SeisVisionTM 2D/3D software lets operators interpret 2D and 3D seismic data in either time or depth. SeisVision software technology is equally effective in interpreting complex structural plays or subtle stratigraphic traps. The interpretation workflows integrate fully with geologic data and seismic for maximum asset team efficiency. PStaX software helps operators evaluate new processing results more quickly. Apply post-stack processing to seismic data, with functions such as deconvolution, filtering, phase, and instantaneous attributes. Processing flows are set up through a user-friendly flowchart. SCANTM (Semblance Computation and AnalysisTM) software bolsters confidence in seismic interpretations by enhancing resolution of discontinuities and subtle stratigraphic changes. Using the patented Event Similarity PredictionTM (ESPTM) algorithm, it also outputs a semblance seismic volume.

Adaptation to any type of asset, company organization, and data system and connects to OpenWorks, Engineers Data ModelTM (EDMTM), ARIESTM and the GeoGraphix databases, enabling tighter collaboration between disciplines.

TracPlannerTM and GeoAtlas applications help geoscientists plan the optimum wells.

Economics Domain ARIES system software combines decline-curve analyses and economic evaluation to enable the management of capital projects, properties, and assets of an entire company. With the speed and robustness of ARIES software, users can easily evaluate and aggregate future production, reserves, and values of individual and multiple properties to support management decisions at any level of business. ARIES International software allows operators to accurately model complex international contracts and allows for combining domestic and international assets results into reserves and portfolio management systems, saving time and preserving accuracy. ARIES Reserves Management System technology improves evaluation, approval, reconciliation and reporting of reserve values. By accessing ARIES data directly and securely, RMS software increases the accuracy, speed, and control of the results. Built-in government and corporate reports save additional time and effort. Companies can easily update and report reserves throughout the fiscal year. ARIESTM DecisionSuiteTM software provides graphical decision-tree analyses that support evaluations of individual economic cases and expected value summaries. It also enables operators to perform Monte Carlo simulations through links from economic data to Crystal Ball technology. Defining the quality and quantity of the heavy oil/oil sand asset is critical. Placing the well in the most optimum location along with using the best recovery solutions greatly affects the overall value of the asset.

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Defining Asset Quality and Quantity

TracPlannerTM Xpress for DiscoveryTM software provides the right amount of technology for geoscientists who need to accomplish the task of modeling proposed wells. TracPlanner Xpress software is integrated with Discovery applications specifically for the use of the geoscientist utilizing GeoGraphix Discovery applications who has the need for a tool to enable the modeling of proposed wells. SeisBaseTM software is a database for 2D shot point lines. It stores time, depth, and velocity interpretations, and creates contour maps. SeisMap software allows operators to perform seismic time to depth calculations and horizon shifts on SeisBase data. SDE Connect software lets operators dynamically display spatial data from an Oracle server using the Spatial Data Engine program in GeoAtlas software.

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Dynamic Surveillance SystemTM (DSSTM) software technology integrates all the information necessary to manage assets. Monitoring well(s), production, and facility data enables engineers to proactively identify opportunities to increase production across an asset, while at the same time reducing downtime. By replacing spreadsheets with a dedicated surveillance tool, one engineer can easily manage an asset with more than 500 wells. DSS software technology allows:

Automatic refreshes, of high-frequency electronic meter readings, help operating companies improve well and reservoir performance in real-time.

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Precise Well Placement


Maximize reservoir exposure and drainage

Precise Well Placement

Precise Well Placement Value-Added Solutions result in maximizing the recovery.

Optimal wellbore placement is critical in maximizing heavy oil and oil sands asset recovery. Where the oil is heavier and more viscous, greater effort is required for crude recovery and more influence on the mobility of crude must be applied. Further, accessing the thick, multiple zones can present numerous challenges that operators must address. In this section, we address well construction, evaluation methods and productionenhancement options available to operators exploring heavy oil and oil sands assets.

Improving Crude Mobility at Optimum Reservoir Locations Three techniques that can improve crude oil mobility and decrease crude viscosity are:

Steam-assisted gravity drainage (SAGD) Vapor extraction (VAPEX) Cyclic steam stimulation (CSS)

SAGD yields one of the highest recovery percentages (4060%) in very high-viscosity (>104 cp), low-gravity (712 API) crudes by utilizing steam to increase recovery.

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Production can be as high as 1,500 BOPD from a well pair. In the SAGD process, two horizontal wells are stacked, one over the other. The upper horizontal lateral supplies steam that creates a heat chamber. The steam chamber is nonuniform in shape. After steam communication is established, the lower lateral is converted to a producing well and the upper lateral is still used as a steam injector. Pairs of laterals are generally drilled 8001200 meters (2625-3937 feet) in length with 80-150 meter (262-493 feet) separation at surface. Laterals of an individual pair is spaced out at ~5 meters (16 feet) downhole. Originally developed by the Alberta, Canada Department of Energy (formerly AOSTRA), SAGD reduces oil viscosity, improves sweep and displacement efficiency, and provides a higher percentage of recovery than conventional methods. The VAPEX process injects light-end hydrocarbons into the top lateral; the injectant migrates into the heavy oil/bitumen, increasing mobility. While the light hydrocarbons are not heated, the VAPEX process is introduced here as it has well construction practices similar to those of SAGD. The CSS process yields a lower recovery (1520%) than the SAGD process. Steam is injected, at a pressure above fracture injection pressure, into a well (vertical, directional or horizontal) for a certain time period. The well is shut in and production begins. This process may or may not use horizontal well construction. However, it may use similar drilling practices; high-temperature cementing and completion packer fluids as the SAGD process. New value-added mobility solutions are evolving. Various types of in-situ heater, microwave, laser and various other solutions are under development, noted through patents, lab development tests and field trials. These in-situ systems increase the mobility of the crude, making it easier to produce. Specialized well construction practices are called into play for well architectures created for SAGD, VAPEX, CSS and revolutionary new mobility solutions. A discussion of the well construction solutions that help

develop these solutions follows, beginning with hole opening and progressing in sequence up the drillstring. Opening the Hole in Unconsolidated Formations In thermal or nonthermal operations, unconsolidated formations must be opened while maintaining borehole quality. In high-cost heavy oil and oil sands drilling, an efficient underreaming job performed while drilling can economically resolve a number of costly well problems. When conditions such as lost circulation due to tight equivalent circulating density (ECD) tolerances compromise drilling, or when there is a need to enlarge wellbore size beyond drill-bit diameter, the Near Bit Reamer (NBR ) tool provides a proven alternative to bi-center hole enlargement operations in low cost drilling operations.
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Precise Well Placement

The NBR tool is a hole enlargement tool that can be positioned between the bit and downhole motor with minimal influence on steerability, providing hole enlargement without interrupting drilling. Even in horizontal sections of heavy oil wells, NBR tool technology provides simultaneous drilling and hole opening capabilities, enabling the operator to manage the risk of lost circulation in tight ECD applications, helping assure that the hole is uniformly and concentrically enlarged without affecting BHA steerability and performance. By contrast, use of bi-center bits often produces inconsistent hole size and results in reduced ECD control, bit durability and directional control, thus limiting the performance efficiency of the entire operation.

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Through years of experience, Security DBS Drill Bits has optimized the NBR cutter pistons for maximum durability, capitalizing on the cutting structure design capability embedded in the NBR tool technology. NBR cutter pistons incorporate modified diamond reinforcement (MDR) diamond-coated impact arrestors to prevent and arrest erosion, as well as thermally stable polycrystalline (TSP) backup cubes positioned across all cutter pockets not equipped with MDRs to reinforce the gauge drop-in PDC cutters used. The on-demand activation mechanism allows drilling through a casing shoe with arms retracted; once the NBR tool is at the reaming point, the arms activate on demand by increasing the flow rate. The NBR tool technology is also capable of nonsimultaneous application. By nature of its design, the NBR tool can be used to ream a predrilled pilot section. Appropriate BHA configurations can be run to address deviated predrilled hole sections. These features are now standard for heavy oil applications where erosion, durability and maintaining the gauge of the enlarged hole are critical elements for operational success. Unlike other underreaming-while-drilling tools, the NBR tool does not produce any additional pressure drop to the drilling system, so it can be used on small rigs. It also helps optimize hydraulic horsepower at the drill bit to help optimize the rate of penetration. To date, the NBR tool has been utilized successfully for hole enlargement in a number of highly deviated and horizontal heavy oil wells, dramatically reducing NPT while delivering a high-quality wellbore that helps maximize recovery.

Case History: Cold Lake Alberta, Canada In the heavy oil reservoir of Cold Lake Alberta, which has a history of severe lost circulation, the challenge was to reduce equivalent circulating density (ECD) by drilling an oversized hole. Over the course of some 20 wells, hole enlargement was accomplished using bi-center bits, which typically required drilling out the intermediate casing shoe, tripping for a bit change, then drilling ahead using the bi-center bit. Besides the cost of the extra bit trip, using bi-center bits in these wells reduced directional responsiveness and tool durability, and often resulted in inconsistent hole size. As a solution, Security DBS Drill Bits recommended use of the NBR 800 tool, capable of enlarging an 21.6 centimeters (8 1/2inches) hole to 25 centimeters (9 7/8inches) diameter. The NBR 800 tool was employed for 11 runs, achieving an average run length of 1100 meters (3609 feet) of enlarged hole. In the horizontal sections of these wells, use of the NBR tool increased the average penetration rate from 90 m/hr (295.3 ft/hr) to 190 m/hr (623.3 ft/hr) and provided significantly improved directional control. As a result, all horizontal liners were run with minimal drag and without the need for an additional trip to change bits. In addition, improved NBR tool durability in the erosive conditions effectively lowered bit costs, since the bi-center bits run previously were essentially purchased due to damage. In terms of performance efficiency, an overall on-bottom 90% rate of penetration (ROP) increase was realized with use of the NBR tool, resulting in a substantial cost savings.

Precise Well Placement

Literature: Bews, R. 2008. A World-Class Oil and Gas Operator Effectively Manages Lost-Circulation and Simultaneously Increases ROP in Heavy Oil Utilizing the Security DBS Near-Bit Reamer. Paper WHOC 2008-343 presented at the World Heavy Oil Congress, Edmonton, Alberta, Canada, 1012 March.

Directing the Bit for Optimum Drainage Placement In this discussion, the solutions may be applied to either thermal processes and/or nonthermal processes. Each technology is noted as applicable in SAGD and/or multilateral (MLT) operations. The most critical real-time data required for drilling directional wells is the angle of the drill bit. With the at-bit inclination (ABI ) sensor, inclination is measured within a few feet of the bit and sent uphole in real time during drilling and at pipe connections. This technology can be applied in any drilling application but is significantly valuable in SAGD. Reaction time is greatly improved, which means that wellpath corrections are quick and results are verified immediately.

With relative wellbore placement being critical to the success of the SAGD/MLT operation, the ABI sensor is an essential for locating the bit in the optimum drainage location. The multiple resistivity measurements of the EWR -PHASE 4 sensor facilitate the use of various interpretation models for evaluating invaded and anisotropic formations. Invasion is a common characteristic of heavy oil unconsolidated sandstone formations due to high permeability. The sensor is often utilized in SAGD operations.

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Precise Well Placement

Less time is spent in the oriented (sliding) mode, usually resulting in a higher average rate of penetration. The number of sidetracks due to unpredictable directional tendencies is reduced. More precise wellbore placement in the reservoir is achieved, which can result in better production rates, increased recoverable reserves and maximum reservoir deliverability.

Sperry Drilling Services EWR-PHASE 4 service provides eight different resistivity curves with differing depths of investigation. This tool uses a high-frequency LWD induction resistivity sensor; it includes four radiofrequency transmitters and a pair of receivers. This tool has extended transmitter-receiver spacings to increase the depth of investigation, minimizing borehole effects in large boreholes. For logging smaller boreholes, the 7.94 centimeters (3 1/8 inches) tool is suitable for coiled-tubing drilling, through-tubing rotary drilling and conventional rotary drilling applications in borehole diameters as small as 9.525 centimeters (3 3/4 inches) where extensions or branches to a MLT might occur. The INVAMOD program computes Rt, Rxo, and Di in invaded formations, which can be particularly applicable when logging after drilling if formations may be invaded. The ANIMOD program computes the vertical and horizontal formation resistivity values (Rv and Rh) and relative dip angle when logging anisotropic formations at high relative dip angles. For geosteering applications, the forward modeling capability of the StrataSteer 3D software provides synthetic log along the proposed wellpath to use as a correlation road map.

With the ABI sensor, the hole is smooth and straight, requiring a minimum of drilling time. Because there is a greater overall percentage of rotary drilling, penetration rates are higher and there is a reduced probability of pipe sticking. Smoother wellbores also help reduce casing-running problems. Casing sag (loss of inclination due to washout at the casing shoe) can be detected and compensated for immediately, using only the bit and ABI sensor. The ABI sensor helps reduce uncertainty and provides immediate feedback, making it suitable for wells with difficult directional drilling tendencies, especially thick, unconsolidated sand/sandstone sections. The ABI sensor helps in shallow kickoffs. The reduction of wellbore tortuosity in the build section may result in reduced torque, drag and casing wear, particularly in horizontal well applications.

Placement of Well Pairs in the SAGD process When relative placement among two or more wells is important, active magnetic ranging (AMR) systems are used to help ensure proper spacing and are critical in SAGD well construction.

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Precise Well Placement

A magnetic field generated by the MGT magnetic guidance tool in the lower (producer) well is measured by the Sperry DWD (directional while drilling) survey sensor in the injector well above. This data provides exact coordinates to the position of the upper horizontal well relative to the lower reference well. Sperry has drilled over 80% of the SAGD wells drilled to date. Most well pairs drilled for SAGD have used MGT magnetic guidance tool technology.

Magnetic Field Measurements

For greater separation distances, the RMRS (rotary magnet ranging system) uses a magnetic bit sub in combination with a wireline receiver tool to precisely control the separation of a SAGD well pair. Vertical and horizontal separations are measured with +/- 5% precision while drilling the second wellbore in separation distances up to 80 meters (260 feet). Together, the MGT and RMRS systems have been used to drill the overwhelming majority of SAGD pairs worldwide. Sperry has used these technologies to drill greater than 500 well pairs and has constructed more well pairs than all other companies combined. Magnetic survey tools rely on the principle of measuring the direction of the wellbore relative to the direction of the local magnetic field. The hole direction is then referenced to a geographic coordinate system from a knowledge of the direction of the local geomagnetic field relative to a grid or true north. Infield referencing measures the geomagnetic field at, or close to, a drilling site at constant time intervals and can make corrections for the earths geomagnetic fields.

Injection well

Electromagnetic field from MGT tool is measured by MWD probe

Production well MGT Tool


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MGT tool transmits electromagnetic field


Magnetic Guidance Solutions enable the drilling of closely spaced wells.

Literature: Vandal, B., Tracy, S., Grills, P., and Wilson, C. 2004. A Comprehensive Comparison between the Magnetic Guidance Tool and The Rotating Magnet Ranging Service. Paper presented at the Canadian International Petroleum Conference, Calgary, Alberta, Canada, 810 June.

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AMR systems allow two or more wellbores to be positioned within extremely tight tolerances. This technology is used to enable drilling two wellbores to be accurately spaced at 5 meters (16.4 feet) separation. When observation wells are required to be placed with precision for accurate monitoring of SAGD fields, For well collision avoidance and infill drilling, AMR allows operators to place wells in tighter proximities to one another with far greater certainty than conventional survey methods allow.

Sperry Drilling Services, in conjunction with the British Geological Survey, developed a technique that results in improved magnetic survey accuracy at drilling locations remote from an observatory site. IIFR (interpolated infield referencing) service provides corrected surveys by using the magnetic field parameters that correspond to each survey measurement.

The IIFR service significantly reduces lateral position errors for magnetic surveys. MWD surveys processed using the IIFR service have accuracy comparable to that of high-accuracy, north-seeking gyro systems. The wellsite readings are correlated with those from a remote permanent observatory or observatories, and an interpolation algorithm is applied that relates the measurements recorded at the permanent observatory to magnetic field parameters at the wellsite. This IIFR service technique is particularly applicable in areas of volatile magnetic intensity, such as the North Sea, North America, and Europe (near the magnetic poles and/or the geomagnetic electrojet). The IIFR service can be used during disturbed solar periods, when theoretical information is not reliable or whenever higher accuracy surveys are required. This also eliminates some of the uncertainties associated with apparent MWD tool problems. The identification of unstable magnetic background conditions removes the ambiguities when irregular magnetic readings are observed. This removes the possibility of mistakenly replacing the MWD tools during unstable periods. IIFR

Due to the fast drilling environment, an enormous amount of drilling and formation data acquired by the evaluation tools. Data transmission to the surface must be quick because heavy oil/oil sand formations can change quickly. Real-time drilling responses must be acted on appropriately and not miss high value opportunities. EM (electromagnetic telemetry) is accepted and widely used by SAGD operators for high speed data trandmission. EM data transmission method utilization is spreading to operations that have greater well depths by using repeaters which increase the data signal strength. Electromagnetic telemetry(EMT) MWD/LWD systems allow data transmission without a continuous fluid column, providing an alternative to negative and positive pulse systems. The system has many applications; to date, more than 70% of downhole runs using the service have been performed where high data density and low survey time are key factors to successful drilling operations. The EMT system establishes a two-way communications link between the surface and the tool downhole. Using low frequency electromagnetic wave propagation, the EMT system facilitates high-speed data transmission to and from the surface through any formation. Data formats can be readily customized to suit the drilling needs of the particular well.

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Precise Well Placement

More accurate borehole placement More economical than gyro-based surveys Virtual elimination of wasted rig time due to geomagnetic disturbance More efficient than gyro services Less sliding and steering resulting in more rotary, and better ROPs Smaller ellipses of uncertainty Quick, constant verification of MWD performance
Electromagnetic telemetry solutions enable continuous subsurface data transmission.
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Service Benefits:

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The electromagnetic MWD/LWD system encodes data into electromagnetic waves with frequencies in the 2- to 15-hertz range. The signal is transmitted from the downhole tool through the drillpipe and earth, and is detected at the surface as a very low-voltage potential between the wellhead and a remote electrode. The EM value-added telemetry is fully compatible with logging while drilling (LWD) and Geo-Pilot rotary steerable systems.

In MLT, a latch coupling may provide full-bore inside diameter (ID) access to the main bore and creates precise axial and azimuthal placement of the window. The latch coupling can be installed to allow accurate locators for reentry of the well, repeatability of landing and precisely oriented retrievable whipstocks. Junction construction systems use a pre-milled window joint with either a single, double or triple window exit in close proximity to each other. The StacRite system is most commonly used for Technical Advancement of Multilaterals (TAML) Level 2 junctions and is often associated with short-radius drilling techniques.

Precise Well Placement

Nonthermal Operations with Multilaterals The multilateral (MLT) drainage architecture was developed to increase production capability and reduce overall field development costs by increasing the amount of reservoir exposure. Production from status quo wellbores (i.e., a single horizontal well) is no longer acceptable in many heavy oil fields. Often these fields have extremely thick pay zones with high viscosity/low mobility crude and multiple locations that must be tapped. Multilateral systems enable multiple reservoirs (or areas within a reservoir) to be produced simultaneously. Multilateral technology connects a lateral wellbore (or a multitude of lateral wellbores) to the main borehole at the multilateral junction. The junction can be designed in a new well application or created in an existing wellbore for a re-entry application. From the lateral bore, additional laterals, branches, or splays can be added to access additional reservoir targets. The main and lateral bore designs can be vertical, directional or horizontal, with the multilateral system selection based on the individual requirements of the heavy oil/oil sand reservoir.

MachRite (Mechanically Attached Multilateral System), a TAML Level 3 system, provides mechanical integrity at the junction for this system and is created using a pre-milled transition joint exiting outside the window. A large-ID access to the lower main bore and full-gauge access to the lateral liner allows increased production capability and reentry to the lateral and main bore.

MachRite (Mechanically Attached Multilateral System)

Literature: Fipki, S. and Celli, A. 2008. The Use of Multilateral Well Designs for Improved Recovery In Heavy Oil Reservoirs. Paper SPE 112638 presented at the IADC/SPE Conference and Exhibition, Orlando, Florida, 4-5 March. Lougheide, D., Lutchman, K., Anthony, E., Waterman, B., Cavender, T., Flores, D., and Ramsook, V. 2004. Horizontal Gravel Packs Successfully Deployed in Trinidads First Multilateral Well Planning, Implementation, and Remedial Strategies. Paper SPE 90220 presented at the SPE Annual Technical Conference and Exhibition, Houston, Texas, 26-29 September.

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Case History: Using the SperryRite LatchRite system, an operator in Venezuelas Orinoco region placed two additional wellbores into the reservoir from a single surface location. Two 24.45 centimeters (9 5/8-inches) LatchRite windows were installed in the main bore at approximately 80 degrees inclination. Long lateral legs were drilled from each window and a third lateral was drilled from the shoe of the lower main bore. The laterals have 17.8 centimeters (7-inches) slotted liners installed with liner lengths up to 1828.8 centimeters (6,000 feet) long. The top of the lateral liners was stage cemented and then washed over, providing sand control at the LatchRite junctions. Once installed, the LatchRite junctions did not restrict access to the lower main bore and allowed progressive cavity pumps to be placed below the lower window junctions. The placement of the pumps below the lower window enabled gravity feed drainage from the two upper laterals while still drawing from the lateral coming from the bottom of the main bore.

The LatchRite Pre-Milled Window Multilateral System (TAML Level 2, 4, or 5) provides a high-strength TAML Level 4 junction with sand control and full-gauge access to the lateral and lower main bore. It utilizes an industry-proven, patented, protected multilateral washover operation and achieves hydraulic integrity using cement. The LatchRite system can also be used to construct a TAML Level 2 junction that eliminates the disadvantages of conventional milling. A MillRite Milled Exit Multilateral System (TAML Level 2 or 4) is constructed using a track-guided milling system to create a consistent, geometrically controlled window to create a high-strength TAML Level 4 junction. This construction process eliminates rolloff and dogleg severity problems associated with conventionally milled windows and allows repeatable lateral re-entry for the life of the well. It utilizes the successful multilateral washover operation and achieves hydraulic integrity using cement. The MillRite system can also be used to construct a TAML Level 2 junction. The FlexRite Isolated Tie-Back Multilateral System (TAML Level 5), an aluminum-wrapped, premilled window system, incorporates a flexible junction with two semicircular sections to maximize cross-sectional flow area and load-carrying capability. The high strength of the junction allows the installation of long lateral screens for increased reservoir exposure and production capability. The FlexRite system offers through-tubing intervention and lateral re-entry with separate workover capabilities.

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Literature: Cavender, T. 2004. Summary of Multilateral Completion Strategies Used in Heavy Oil Field Development. Paper SPE 86926 presented at the SPE International Thermal Operations and Heavy Oil Symposium and Western Regional Meeting, Bakersfield, California, 16-18 March. Cavender, T. 2004. Heavy Oil Development: Summary of Sand Control and Well Completion Strategies Used with Multilateral Applications. Paper SPE 87966 presented at the IADC/SPE Asia Pacific Drilling Technology Conference and Exhibition, 13-15 September.

Operations such as production logging, stimulation, cleanout, and water and gas isolation, can be performed on both the lower main bore and lateral liners. The system also has an intelligent completion interface capability. The ReFlexRite Milled Exit Isolated Tie-Back Multilateral System (TAML Level 5) has applications in both new and existing wells. The window exit is constructed with the MillRite system and the junction is completed with the FlexRite system. The ReFlexRite system combines the unique advantages of both multilateral systems. Generally, this would be applied in an offshore heavy oil field, if MLT was the recovery mechanism of choice. The FloRite Multi-String Multilateral Completion System (TAML Level 5) is specifically designed for wells that require full junction pressure isolation while allowing reentry capability to access the laterals through the completion. This capability eliminates the need to pull the completion should access be required for cleanup, stimulation or data acquisition. Also, the most likely applications would be in an offshore operation or a very thick multi-layered reservoir where economics for the system can be justified.

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Precise Well Placement

ReFlexRite Milled Exit Isolated Tie-Back Multilateral System

Heavy Oil Multilateral Completions

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Overall Field Design for Maximum Drainage In heavy oil and oil sands fields, specialized field architecture including well(s), pad(s), and facilities require designs that help ensure minimal environmental impact and minimal capital-cost impact. Sperry Drilling Services has the capability to lay out the complete field. Asset layout considerations include well surface locations, piping layout, pad facilities sizing/layout, access to pipeline, roads, central locations and surface topography. Well considerations include wellhead spacing, access to producer for ranging operations, single- or double-row wells on a pad, drilling rig footprint, slot orientation, rig/workover access and rig design considerations.

Case History: A Canadian operator and Sperry Drilling Services collaborated closely to optimize surface layouts, profile geometry, and drilling procedures to achieve the most efficient operation possible.

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Drilling completed five months ahead


of schedule to spud
Precise Well Placement

Average of 4.2 days per well spud 99% of total meters drilled were
within the required separation SAGD pair window

All 50 wells completed without

unplanned sidetracks due to geological uncertainty or directional drilling trajectory control

From the reservoir perspective, design for interwell spacings, regional/structural geology, and well path orientation has to be considered. In SAGD architecture, well pairs per pad, downhole well pattern drainage, wellbore orientation, horizontal spacing between well pairs, vertical spacing between production/injection wells and anti-collision issues have to be addressed. Once the field design has been determined, the well construction design has to be modeled and value-added solutions addressing thermal or nonthermal environments must be considered.

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No trips required for failures

24 Optimize Wellbore Construction

Optimize Wellbore Construction


Minimize non-productive time/maximize reliability

Value-Added Well Construction Technologies for Heavy Oil Assets.

By some estimates, there are twice as many heavy oil reserves as that of conventional reserves. Given high demand and favorable economic conditions for hydrocarbons, coupled with abundance of these reserves, the industry has an acute interest in heavy oil. With the help of new technology, operators are overcoming the challenges of heavy oil well construction. Heavy oil will undoubtedly play an important role in the industrys future. Reservoir potential and development methods must be identified, analyzed and executed for each reservoir. Economic development hinges, in part, upon a well engineered drilling and completions approach that helps

operators optimize drilling efficiency, reduce non-productive time (NPT) and establish sustainable health, safety, and environment (HSE) performance. Heavy oil development demands optimized well planning activities, accurate well placement, wellbore analysis and designs for production and injection wells. Drilling program planning and well engineering must also strive to minimize environmental impact while dealing with the attributes of heavy oil and challenging subsurface conditions over the life of the well. Well planning plays an important role, as well as the drilling fluids and cementing practices.

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Integrated Database and Software Modeling Yields Benefits Landmarks comprehensive drilling and completions software ecosystem offers integrated technology solutions addressing well path planning, trajectory and anti-collision, wellbore analysis, tubular design, operations reporting, well data management, economic decision-making and resource management. From well planning to operations reporting, integrated data and software more effectively align your asset team, workflows, and technology to meet the challenges presented by heavy oil. The result is a more reliable heavy oil asset performance. The software is proven in every kind of crucible, and provides features which have high value in heavy oil asset drilling and development scenarios. For example, Landmark technology can play an important role in steam assisted gravity drainage (SAGD) and other production technologies, such as cyclic steam stimulation (CSS), toe-to-heel air injection (THAI) and other evolutionary production methods. Well Planning and Engineering Design Workflows Landmarks collaborative well planning suite enables optimum pad positioning (including orientation, number of wells, wellhead spacing, etc.), target selection, bottomhole well pattern and multi-well path planning for production and injection wellbores, all in the visual context of geological, geophysical, and engineering data. The result is more viable well plans in less time, more accurate well placement, reduced NPT, and greater productivity for engineers and geoscientists. Landmark well planning workflows are tied to real-time MWD/LWD data feeds via OpenWire software supporting more accurate real-time well path positioning, updating the interpreted earth model, engineering analysis, and design.
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Landmark Drilling and Completions Software for Heavy Oil Well Planning Workflow

Challenges with SAGD-type well designs include directional well path planning and anti-collision assessment. Accurate planning of horizontal and multilateral wellbores is important to optimize drainage and cost management in heavy oil assets. Anti-collision assessment, however, is critical. COMPASSTM software is the industrys premiere application for directional path planning, survey data management, plotting the as-drilled well trajectory and anti-collision analysis. Because steam injection and production wells lateral branches can be as close as 5 meters (>15 ft) apart, traditional collision avoidance models are inappropriate as the horizontal and vertical uncertainty components of the survey tool models result in errors that could easily overlap the well pairs. Additional wellbore proximity techniques such as magnetic ranging, measure and maintain desired separation between the wellbores. These additional correction measurments are taken into Landmarks directional well planning software.

OpenW ire

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Design for Wellbore Integrity Landmarks tubular analysis and design software suite provides precise solutions for both wellbore analysis and integrated casing and tubing design for heavy oil drilling and production. Integrated analysis tools enable safer, better quality designs for complex drilling and production environments. WELLCATTM software provides a comprehensive analysis of loads and stresses on casing and tubing, including service life analyses. Detailed analysis and interaction of the entire casing system is provided. The software also models injection steam quality and the thermal effect as it applies to well completions. Capabilities for temperature and pressure modeling for vacuum insulated tubing (VIT) add critical technology aimed specifically at solving VIT applications in heavy oil problems. The capabilities are designed for high temperature steam injection scenarios including huff and puff, and SAGD projects, reducing the need for artificial lift techniques and increasing total ultimate recovery through reservoir drawdown. Landmarks WELLPLANTM suite helps anticipate all aspects of well construction that must withstand downhole conditions and production techniques unique to heavy oil assets.

WELLPLANTM OptiCemTM Cementing software delivers the technology to design and simulate the optimum cement job, regardless of wellbore complexity or type of program. WELLPLANTM Well Control models well kick scenarios and provides critical information engineers need at the rig site. WELLPLANTM BHA software enables the design and monitors the performance of the bottomhole assembly (BHA) selection for complex drilling scenarios using nonlinear 3-D finite element analysis (FEA) technology.

26 Optimize Wellbore Construction

Well Data Management An integrated approach to operations reporting, well data management, and engineering can improve efficiency and cost effectiveness. For heavy oil operators, OpenWells software is particularly adept at recording well construction and well servicing operations for large numbers of shallow, artificial lift producers or other types of heavy oil wells.

The WELLPLAN suite includes the following integrated technologies that can help optimize rate of penetration (ROP) and HSE performance while reducing potential NPT. WELLPLANTM Torque/Drag software models the BHA and casing design for running it to bottom through a high dogleg, build section and/or through a horizontal section. WELLPLANTM Surge software optimizes fluid densities to avoid well control problems and formation damage. WELLPLANTM Hydraulics software enables accurate circulation system analysis. A challenge during heavy oil well construction is hole cleaning in the horizontal section. WELLPLAN Hydraulics software technology enables engineers to determine mud flow rates and rheologies to prevent cuttings buildup.

The reporting system is well integrated with a broad spectrum of engineering technology through the Engineers Data ModelTM platform. If operations are not meeting plan, design changes can be easily updated. Any design change automatically updates all related design parameters. Reach the Optimum Target Location While Minimizing NPT Complex horizontal and multi-lateral drilling operations are often required to reach and produce heavy oil reservoirs onshore, offshore, and deep water. The unconsolidated formations non-stable formations and carbonate formations, where many heavy oil/oil sands assets reside, provide unique drilling challenges that must be addressed by the drilling fluid and solids handling equipment.

Baroids new Inhibi-TARTM additive has proven effective in separating heavy oil from the cuttings returned to the surface. The additive is added to the active system to help encapsulate cuttings as they travel up the wellbore, preventing further degradation and increased surface area. The ability to more easily remove the oil at the surface helps reduce risk in the environment during the cuttings disposal processes. During the sliding operations required by horizontal drilling, the bitumen and heavy oil in the reservoir can adhere to the drillstring and create a significant buildup of material that impairs drilling and impacts the hydraulics. A similar accretion at the casing shoe can increase the risk of stuck pipe or packoff. Baroid offers a range of demulsifiers that can help reduce interfacial tension and partly solubilize the heavy oil or bitumen so that the risk of sticking and pack off is significantly reduced throughout the reservoir drilling operation. Additionally, Baroid recently developed a new experimental fluid for heavy oil/oil sand drilling that is designed to reduce the natural adhesive properties of bituminous materials. Hole cleaning can be problematic in horizontal and multi-lateral, MLT and ERD wells. Increases in torque and drag can indicate that cuttings are settling on the low side of the hole. Pumping sweeps is a common practice to help augment the removal of these cuttings. Baroids acclaimed DFGTM hydraulics modeling software can help operators optimize drilling parameters such as rheology, pump rate, penetration rate, sliding versus rotating time, and sweep properties to help ensure that effective hole cleaning is taking place. The software evaluates existing parameters and can quickly model a wide range of What if? scenarios to help operators fine tune the factors that influence hole cleaning. High temperature production well design and equipment installations can be subjected to uncontrolled heat transfer to outer annuli and heat loss from the production or steam injection tubing. This can be detrimental to the integrity of outer annuli, reduce well productivity, promote paraffin and asphaltene depositions, and contribute to the formation of gas hydrates. In a worst-case scenario, the temperature and pressure changes can cause casing collapse.
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27 Optimize Wellbore Construction

Reduction in Pump Rate Affects Cuttings Loading and Hole Cleaning Efficiency. DFGTM hydraulics modeling helps to predict pump rates for cuttings cleaning.

Baroids N-SOLATETM aqueous-based insulating packer fluids can provide thermal stability to 600F and are available in 8.3-14.7 lb/gal density ranges. The thermal conductivity values are < 0.200 BTU/hftF and the systems are environmentally friendly. N-SOLATE packer fluids are designed for temperatures encountered in geothermal, steam injection, and steam recovery processes. Because heavy oil sands are typically relatively shallow, the formations can be unconsolidated and prone to lost circulation. In the tophole intervals, Baroid personnel have successfully treated losses with HOLEPLUG sealing and plugging agent. The sized sodium bentonite material has a high swelling potential that allows it to develop a superior seal rapidly. No premixing is required. HOLEPLUG bentonite has proven effective in stabilizing the wellbore in gravel and other weak or unconsolidated formations.

Baroid Surface SolutionsTM services has extensive experience with centralized, long-term waste management in heavy oil fields. Their collection, transport, and processing methods are designed to help minimize waste volumes, decrease the overall footprint of heavy oil drilling operations, and recover and recycle useful byproducts for construction and road-building projects. As a result, operators can reduce environmental exposure and improve safety on the job for drilling and waste treatment personnel.

28 Optimize Wellbore Construction

Baroid Surface SolutionsTM services: Thermo Mechanical Cuttings Cleaner (TCC).

The Thermo Mechanical Cuttings Cleaner (TCC) thermal desorption unit provides an efficient, environmentally friendly option for treating oilcontaminated drill cuttings and waste. The oil on the cuttings is reduced to less than 0.5% for safe disposal. The water and oil are cleaned, contained and removed as separate streams. Low retention time and temperatures can result in significantly higher quality recovered oil that can be recycled. Wellbore Integrity Providing wellbore integrity that may last for the life of the well is always challenging. Thermal heavy oil wells, subjected to extreme temperature cycling during their life, pose the greatest challenge. The associated mechanical stresses transmitted to the cement sheath because of the extreme temperature cycling can cause the sheath to fail and create a path for the injected steam to go to non-target zones or even return to the surface. It is possible to have excellent zonal isolation as assessed by logs soon after the cement job only to find a loss of zonal isolation and interzonal communication after temperature cycling. Therefore, additional factors should be taken into account when designing long-lasting completions for thermal heavy oil wells, whether SAGD, huff and puff, or steamflood operations.

Operators can assess the mechanical properties of the set cement sheath when it is subjected to the anticipated temperature cycles and other possible well events using WellLife computer modeling. Cement can be analyzed and designed to survive in the conditions that the well is expected to endure. Examples of the properties of casing, formation, and cement sheath that are input into the software include Youngs modulus, Poissons ratio, tensile strength, thermal expansion and thermal conductivity. Parameters such as Youngs modulus and tensile strength can greatly affect the cement sheaths capability to withstand cyclic stress loading during the wells life. It is important to look at this data to model and measure under downhole conditions. The mechanical properties of the cement can be modified by incorporating certain additives into the cement. Mechanical modification additives have been developed for and successfully deployed in high-temperature applications in various areas of the world.

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Another cement design consideration to bear in mind is that for temperatures above 110C, the industry recommends the use of silica flour to help prevent strength retrogression of the cement. For cements, that will be used in thermal recovery operations, however, operators should consider increasing the silica concentration to higher levels to help prevent silica starvation in the event that there is no source of in situ silica in the formation where the cement is being placed. Lost circulation is often experienced in shallow heavy oil thermal recovery wells and this should also be addressed. Usually, lightweight cements are used to help minimize equivalent circulating density (ECD). By foaming slurries prepared with hollow glass bubbles and latex, it is possible to prepare and place cements for use in thermal recovery wells at densities as low as 1.02 SG and achieve circulation of cement to the surface where it has not been possible to achieve before.

Table 1 provides an overview of the features and benefits of the various specialty cements that are suitable for cementing thermal heavy oil wells. To achieve the excellent zonal isolation required in these thermal wells, care should be taken when drilling the hole section in question to provide a stable and gauge hole. During placement of the chosen solution, cementing best practices should be diligently employed to maximize mud removal in order to achieve the required displacement efficiency.
Table 1 Thermal Heavy Oil Well Cementing Options

It is extremely important to displace all the mud from the annulus and replace it with the chosen cement system along the entire annulus in thermal recovery wells. Any uncemented voids in the annulus present the danger that any trapped fluids left may expand during thermal recovery operations, causing point loading on the casing and possibly casing collapse.

29 Optimize Wellbore Construction

Significant Lost Circulation Potential Benefits


SteamSeal foamed cement Tuned Light cement LifeSeal foamed cement

Negligible Lost Circulation


CorrosaCem cement SteamCem cement ThermaCem LifeCem cement cement

Achieves cement returns to surface Achieves good hole cleanout and no fallback Mixes effectively at densities other than the design density Maintains thermal stability for the life of the well cement sheath competency Simplifies foaming the spacer for curing losses and lowering the initial hydrostatic of the mud in the annulus Provides CO2 attack protection Cure losses while drilling and cementing the casing under total or partial losses Provides the possibility of tensioning the casing Increases elasticity to handle stresses from thermal cycling Reacts and responds in the event of sheath failure.


*With the inclusion of specialty WellLife Additives

30 Optimize Wellbore Construction

A new cementing fluid technology has been developed to provide an extra level of zonal isolation assurance ideal for the extreme cyclic loads that may occur in thermal heavy oil wells. The additional built in mechanism gives the cement sheath the capability to react and respond to a failure should it ever occur. This capability is imparted to the cement sheath by means of incorporating certain additives into the cement. If the sheath does fail as a result of unexpected events, then the cement sheath automatically reacts and seals the annulus in the event of influx from formation fluids and without the need for intervention services. Both LifeCemTM and LifeSealTM cements incorporate this feature. The react and respond (RAR) capabilities engineered into these cement systems should be capable of closing micro-annuli or sheath cracks on the order of 100 to 250 microns, stopping flow of fluids through the annulus, and thus preventing sustained casing pressure or leaking steam to the surface. At the end of 2007, over 70 primary cementations have been performed with LifeCemTM cements. These have been delivered at densities ranging from 1.32 to 2.30 SG, at temperatures up to 285C. Therefore, they are suitable for use in thermal recovery wells. The second mechanism addresses the challenge of the incomplete mud removal. Certain situations exist when even the diligent application of cementing best practices will fail to achieve 100% mud removal, resulting in an incomplete cement sheath. These situations include, for example, (1) underreamed hole sections, where effective centralization is not possible, (2) long horizontal sections, (3) tight annular clearance, (4) narrow mud-weight windows which mean circulation and displacement rates will be slow, and/or (5) losses during the primary cement job, are almost inevitable.

Judicious placement of Cement AssuranceTM tools is a potential remedy for the incomplete mud removal situation. These swelling-element tools are run as an integral part of the casing string. Standard casing running procedures can be performed because no special handling, running precautions, or actuating procedures are required, and an on-location specialist is not required to run the tool. The tools are simply placed on the casing and spaced out at key intervals. They should be placed to separate formations of different pressures and in locations where poor casing standoff is likely to occur. As many of these tools can be run on a single casing or liner string as required to isolate different zones. Once the tools are in place, it will use in situ resources like heat, wellbore fluids, and flowing reservoir materials to swell the element, filling in any uncemented area or void space. In this manner, Cement AssuranceTM Tool the necessary zonal isolation is established in the event that a complete cement sheath was not placed. Swellable tools currently available are rated for up to 200C, which is adequate in select heavy oil operations. Verification of the cement integrity in heavy oil/oil sands operations is critical. Many operations have very close well spacing as well as high temperatures. Cement sheath integrity must be sustainable and can be checked by the FASTCASTTM wireline logging system, which provides cement evaluation or pipe inspection, at speeds up to five times faster than previous technologies.

Literature: Ravi, K., Hunter, B., and Kulakofsky, D. 2008. Job Design and Cement System to Contain Steam and Improve Heavy Oil Recovery. Paper WHOC 2008-381 presented at the World Heavy Oil Congress, Edmonton, Alberta, Canada, 1012 March. Tahmourpour, F. and Griffith, J. 2008. Heavy Oil Best Practices for Long-Lasting Zonal Isolation. Paper WHOC 2008-305 presented at the World Heavy Oil Congress, Edmonton, Alberta, Canada, 1012 March.

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The FASTCASTTM tool data acquisition system is versatile and programmable at the well site based on the customers requirements and on the characteristics of the borehole. The FASTCAST tool provides real time true measurements around the complete borehole which is unavailable from most other acoustic, electric or mechanical devices. The factors that influence the logging speed are:

Horizontal coverage Borehole size smaller holes are logged faster because they require fewer shots per scan for the same amount of horizontal coverage Vertical resolution lower resolution, implying higher speed

The FASTCASTTM system can provide complete borehole coverage in both open and cased holes. In cased hole, ultrasonic pipe inspection and cement evaluation can be obtained simultaneously and much faster. The FASTCAST tool in cement evaluation mode is used primarily to determine cement bonding and image channels in the cement directly behind casing, but it can also be used to measure casing characteristics such as thickness, internal and external diameters. Images can be oriented to either the tool body or the high side of the borehole.

FASTCASTTM system evaluates cement borehole coverage.

ACE processing has been proven effective on cementing jobs in all parts of the world. ACE processing will:

Deliver a reliable index of cement bond. Work with existing logging evaluation programs. Determine cement quality for multiple casing strings. Deliver answers right away in minutes, on location, using log or data tape.

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When combined with a cement bond log (CBL) tool, the cement evaluation log can be acquired at over 60 ft/min and up to 120 ft/min (depending on well conditions) or twice as fast as previous generation tools. Yet the tool provides the same quality product as the previous technology for all cement types through Halliburtons proprietary advanced cement evaluation, i.e. ACETM. The statistical-variation process distinguishes cement from fluid, even when both have the same impedance. In addition, new bond-index curves and special log presentations make interpretation quick and unambiguous.

31 Optimize Wellbore Construction

32 Optimize Production from Sales Meter to Reservoir

Optimize Production from Sales Meter to Reservoir


Maximize throughput and minimize maintenance

Reliable heavy oil/oil sands value-added completion and intervention solutions result in profitable project economic viability.

Maximize Recovery and Minimize Maintenance Heavy oil and oil sands require a different production approach than that used in developing conventional crude assets. Optimization begins at the sales meter and goes back to the sand face rather than in the reverse. Crude quality, crude volume, and maintenance greatly affect the economics of a project. Some of the revelant reservoir and crude differences include:

Crude quality, viscosity, and mobility Sand production Highly variable permeability (both horizontal
and vertical)

Formation porosity Frequency of equipment maintenance Management/integration of data, workflows, and


personnel dealing with high well count and complex facility processing

Technological solutions related to heavy oil/oil sands production issues are discussed in this section.

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Case History: In Canadas conventional heavy oil production. Traditional rod pump completions are problematic due to numerous rod failures. Progressing cavity pump (PCP) completions are commonly used. OpenWells software provides the heavy oil market with fit-for-purpose operating forms to enable
Management/Integration of Data, Workflows, and Personnel From lifting to processing, the physical nature of heavy oil presents challenges not present in other operating environments. Unique approaches to extraction (steam-assisted gravity drainage [SAGD], vapor extraction process [VAPEX], nonthermal production, waterflood, etc.) and processing (upgrading) are employed. Multiple stakeholders from different disciplines participate in the production equation. The tight integration and mutual dependence of surface-processing facilities and subsurface reservoirs introduce additional considerations that are often unnecessary in traditional oil and gas production. Numerous solutions and processes are required to effectively tackle the problem and an easy approach to integration is a must to (1) understand the asset holistically, and (2) ultimately optimize performance. As previously mentioned in the Optimize Wellbore Construction section, OpenWells software is the data collector/management system for both well construction and production. OpenWells data is fed into DecisionSpace for Production software, which allows one wells data to be integrated across the value chain and within the complexity of the field(s) setting allowing easy access to personnel. A modular and scalable solution designed to drive higher production, lower operating expenses, and deliver more efficient operations, the following integrated products comprise DecisionSpace for Production software:

operators to record PCP completion details, enabling them to monitor the PCP completion design, fluid parameters, and failure frequency to analyze and monitor trends. Operators reduce their lifting costs by identifying successful completion designs and installation operations that can be applied to future wells.
33

AssetObserverTM software is the base operating environment that uses a web-based, services-oriented architecture hierarchy to virtually capture the entire heavy oil asset. Integration is achieved without data duplication and a common context is provided to all stakeholders.

Optimize Production from Sales Meter to Reservoir

o AssetS lver

Real-time Optimization

WellSolver

se Alarmi ng, tObs Sch e ed rve uli ng

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s

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AssetConnect Expert

AssetConnect Enterprise

tor rec ent Di agem n r Ma s

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Visualization & Collaboration Environment

Modeling & Simulation Environment

DecisionSpace Integration Infrastructure Full Physics Models Mature Fields Models

AssetObserver Core

AssetConnect

OpenWorks

EDM

Completion

Historian

Financial

Other

Prosper Gap

EXCEL

Nexus

HYSYS

ARIES

Other

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DecisionSpace for Production suite

34 Optimize Production from Sales Meter to Reservoir

Data connectivity, mapping and validation are achieved with ease through a highly intuitive user interface. Visibility to relevant production data is provided in right (when it is needed) to real time, with common and role-based views. Numerous standardized, but modifiable, reports can be generated and shared via secure access provided to any remote user. Security, stability, and integrity functionalities are extensive and provide the high level of assurance necessary to commit production-critical information to a common dependable source. AssetObserver AdvisorTM software enables management by exception. The system notifies users instantly by e-mail, text message, pager, or the web user interface when issues arise, so that timely action can be taken to improve performance and mitigate loss. System- and user-defined business rules with predefined action plans determine who should be notified about a specific problem and when they should be notified. Advisories are prioritized based on certain events and business logic. Rules can be defined to promote/escalate any unresolved events to management based on certain predefined parameters for time, cost, and severity. Advisories are captured and stored in the user interface for further scrutiny as required for key performance indicator (KPI) or scorecard alignment. AssetConnectTM software simplifies the creation of multi-domain workflows with an intuitive drag-anddrop interface. Now you can connect all your existing applications from all disciplines into a single workflow. The output from one automatically becomes the input for another. Only by identifying how changes impact the entire value chain can you analyze the full potential of an entire heavy oil asset. Once you design an automated workflow in your AssetConnect application, the AssetConnect runtime module will run the workflow as well as other pre-built workflows in an automated fashion. The AssetConnectTM Expert software option provides the workflow platform with advanced capabilities, including Monte Carlo uncertainty analysis, design of experiments and numerical optimization.

The AssetConnectTM Enterprise software option supports scaleable and seamless connection of workflows where workflows span organizational domains or extend beyond geographic locations. This option enables distributed execution and centralized or remote modeling or management to help ensure the consistency and automation of workflows across the enterprise. AssetSolverTM software provides a unique modeling and optimization environment to support integrated production operations. All aspects of the heavy oil production value chain are modeled and supported. Historical operating data and existing full physics simulators are used seamlessly in a robust decision support solution. AssetSolver software establishes a crucial subsurface/surface interface. By embedding a proxy of the reservoir, wellbore and facility simulator models into a single environment, critical constraints can be respected at all times, uncertainty and risk can be reduced and optimal decisions can be achieved without sacrificing speed and accuracy, or compromising safety. The comprehensive, single view of the entire asset can be leveraged within an integrated production operations environment (e.g., AssetObserverTM software) to enable total asset awareness, based on a common understanding of effective performance, to facilitate managementby-exception using real-time monitoring and predictive analytics, and to help achieve sustained production optimization by using interactive, collaborative, and advanced process automation technologies. WellSolverTM software, when integrated with downhole data from WellDynamics SmartWell intelligent completion technology, effectively closes the loop on well optimization, allowing you to model, measure and optimize intelligent well completions. WellSolver software employs first-principles reservoir and well models, together with historical production data, as the foundation for an accurate operating model.

Downhole pressure, temperature and flow data from SmartWell gauges and sensors are transmitted to the WellSolver model and used as input. You can optimize well performance by running the WellSolver model and applying its results back downhole to the SmartWell instrumentation and valves.

In this collaborative environment, models that once required hours to solve can now be solved in seconds so decisions are faster, and actions can be taken in time to impact production. WellSolver software provides monitoring, diagnostics and forecasting capabilities for all well types and helps asset teams to manage high-value and multi-well production installations. Integrating real-time well data online into a shared collaborative environment, individual modules monitor and present results in real time and predict well behavior. By engaging team members before issues arise, without the painstaking effort of individual engineering analyses, key production personnel can manage by exception and focus time on proactive, value-adding testing of multiple optimization scenarios simulated by WellSolver software. Determine Reservoir Attributes and Place Steam Efficiently While applying steam to hydrocarbon fluids reduces viscosity and consequently increases fluid mobility, the steam also creates high-temperature, corrosive conditions that make it difficult to monitor steam efficiency and coverage. WellDynamics OptoLog DTS HT fiber optic technology and sSteamTM valve are designed to work at extreme downhole well temperatures accurately and reliably, making it possible to identify channeling or non-flow zones and ensuring proper steam placement and coverage, both in injector and producer wells.

WellDynamics high-temperature sSteamTM valve, scheduled for commercialization in mid 2008, efficiently manages steam flow management, particularly in CSS/SAGD operations. The sSteamTM valve allows for the placement of steam uniformly across the entire length of the horizontal wellbore and is suitable for temperatures up to 650F for CSS operations and 550F for SAGD operations. The high-temperature steam conditions require special hydraulic control fluid that allows remote control of six to ten valves in a single completion. Manage Water and Gas Breakthrough Heavy oil reservoirs are often characterized by variable high-permeability, unconsolidated intervals that can require waterflooding to maintain or increase reservoir pressure. In these reservoirs, precisely determining the source of water breakthrough can be difficult due to the cross-flowing that can occur from a zone of high pressure to one of low pressure. WellDynamics OptoLog DTS can help in identifying these areas and deciding where to close off high water-producing intervals.

35 Optimize Production from Sales Meter to Reservoir

OptoLog DTS HT can monitor transient temperature anomalies along the entire horizontal section, allowing assessment of flow distribution. It uses a pure-core, single-mode fiber optic technology that does not contain germanium, so it is extremely effective in hightemperature, hydrogen-rich environments that are typically detrimental to standard multi-mode fiber.

Halliburton offers a wide range of solutions to improve recovery in heavy oil from balancing the inflow from the reservoir, to delaying water breakthrough to water managment.

Once oil mobility is increased, it is important to balance the inflow throughout the completion to improve initial and ultimate recovery as well as delay the onset of water or gas breakthrough. EquiFlowTM inflow control device (ICD) can be used to optimize production in a variety of heavy oil applications. In high-viscosity oil wells, where permeability differences exist or water challenges exist, EquiFlow ICD equalizes the flow throughout the horizontal interval length. This process increases productivity and ultimate recovery, delaying unwanted water or gas production.

Literature: Kaura, J. 2008. Successful Field Application in Continuous DTS Monitoring Under Harsh Environment of SAGD Wells Using Improved Optical Fiber TechnologyCase Study from Canada. Paper WHOC 365 presented at the World Heavy Oil Congress, Edmonton, Alberta, Canada, 1012 March.

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36 Optimize Production from Sales Meter to Reservoir

One of the challenges related to heavy oil is high viscosity and the differences in the mobility factor between the oil and gas/water. Highly mobile water will flow faster than oil and, when water breakthrough occurs, reduces oil production. A way to avoid this is a proper placement of the ICD along the wellbore to balance the inflow along the entire wellbore. The adjoining plots show the difference in inflow profiles with and without an ICD. The permeability variation is 5 darcies to a maximum of 7 darcies, and the average permeability is maintained at 6 darcies. The inflow profile in ICD completion is more uniform, resulting in better recovery efficiency. The low-permeability zones are stimulated (represented by green) while the high-permeability zones are choked back (representedby red). Another challenge presented by viscous oil is that the pressure drop from frictional loss in the tubing is higher than in conventional wells. In horizontal wells of low drawdown, this can result in a higher production from the heel than from the toe of the well. If not controlled, this condition can eventually lead to coning in the heel. The EquiFlow ICD can be used to balance the inflow and reduce the coning and a potential breakthrough of highly mobile fluid.

Water coning due to pressure drop in the tubing resulting in higher influx from the reservoir in the heel part of the well.

Uneven influx due to permeability contrasts in the reservoir can result in early water breakthrough of highly mobile water.

Permeability distribution (top) and influx profile (bottom). The shaded red area represents a reduction in inflow compared to a completion without the ICD. The green area represents an increase in inflow.

EquiFlowTM inflow control device (ICD) equalizes the inflow along the wellbore by applying a pressure drop across the completion from annulus to production tubular. The pressure drop required is simulated before any installation to help ensure optimization.

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Case History: In a heavy oil field, the oil had a density of 98 cp and oil viscosity 19 API. The oil flowed at 4,000 BOPD. The lateral length was 4,000 ft. Influx along the wellbore reduced with an ICD from 30% to 14%, resulting in an improved ultimate recovery.
Zonal isolation and placement methods are determined by use of well data and simulation software. Implementing the right zonal isolation solution is a critical success factor in the life of the horizontal well. The correct zonal isolation will optimize well production and enhance EquiFlow ICD performance by restricting annular flow and limiting water-entry points to smaller compartments. Placement and packer selections are dependent on the specific application required. Use of SwellpackerTM isolation technology allows the zones to be isolated in any shape annulus and does not require a perfectly circular shape that might be present in an unconsolidated sand formation. Conformance may be needed due to gas or water breakthrough but is used predominately where waterfloods are applied in heavy oil operations. BackStopSM, ThermatekSM, H2Zero and WaterWeb service have been used in the last 12 months in Ecuador, Colombia, and Venezuela operations.

The BackStop service is a slurry-squeeze system designed primarily for water-shutoff operations in heavy oil nonthermal operations. The entire wellbore in the selected interval can be filled with the slurry and squeezed. After allowing time for the filtrate to gel, the wellbore can be cleaned and production can be restarted. In addition to shutting off unwanted water, BackStop service can also be considered as an alternative to many other standard cement-squeeze operations, such as repairing of casing leaks and sealing off thief zones or lost-circulation zones. BackStop service offers the following advantages:

37 Optimize Production from Sales Meter to Reservoir

There is no need for zonal isolation, as with standard


sealant operations.

Slurry is bullheaded or can be placed with


coiled tubing.

Standard, low-temperature and high-temperature


H2Zero service formulations can be used.

Unlike cement, BackStop slurry left in the hole does

not have to be drilled out and can be jetted out with coiled tubing. Backstop service should not be used in steam operations.

Compared to widely used chromium crosslinked polymer systems, the organically crosslinked H2Zero service can provide these important benefits:

Deep penetration into the formation Long effective life Usable in temperatures from 125F to 325F
(51C to 160C)

Easy mixing Easy pumping Predictable reaction rates


System behavior and effects have been studied in extensive laboratory testing. Factors studied include temperature, component concentration, brine type, salinity, pH, reservoir fluids and rock types. Based on this data, formulations can be designed to meet job requirements precisely.

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SwellpackerTM Isolation Technology

38 Optimize Production from Sales Meter to Reservoir

Thermatek fluid invasion control treatments using rigid setting fluids are used to provide engineered solutions for a wide range of problems encountered when drilling or producing unconsolidated or watered out formations. This service is also an ideal solution for plugging and abandonment operations. Following are important features of Thermatek service:

Flexible design technology Characteristic right-angle set Near-wellbore treatment Rapid generation of high compressive strength Tolerance of 50%+ drilling-fluid contamination Acid-soluble (100%) and removable from the
wellbore / formation

Pumpable through drillstrings/BHA/coiled tubing Zero shrinkage


With WaterWeb service, the improved oil/gas recovery stems from a reduced water column giving improved natural lift for the residual oil and/or gas. In addition, it helps justify prolonged and sustained production by enhancing reservoir drainage. WaterWeb service works by adsorbing onto the rock surface, reducing permeability to water seven to ten times more than it reduces permeability to hydrocarbons. In effect, WaterWeb service creates resistance that holds water back while allowing oil and gas to pass freely. These unique properties make it your best option when accurate placement is not feasible. WaterWeb service requires no special placement techniques. It is unaffected by multivalent cations, oxygen, and acids. It does not require rig time, zonal isolation, or a catalyst, and it does not gel or set up.

H2Zero Conformance Treatment Process.

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Optimize Production in High Permeability and Sandstone Heavy oil and oil sand reservoir characteristics include high permeabilities and high porosities, which often result in unconsolidated sand. Current processes have different methods of handling the sand. Some leave the wellbore open and produce the sand, such as in the cold heavy oil production with sand (CHOPS) process, while others place screens or liners in the completion to hold back some of the sand. Generally, total elimination of sand production is not achieved without a serious detriment to production. PetroGuardTM Advanced Mesh screen, the leading filtration technology, brings reliable sand control, efficient crude production and long-term reliability. This unique technology is formed from a series of custom-designed, diffusion-bonded, surface filter layers that give precise pore size control and provide the highest degree of solids retention and plugging resistance possible. Originally developed for heavy oil sand-control applications, its multilayered construction makes PetroGuard Advanced Mesh screens ideal for a broad range of solids-control applications. PetroGuard screen filters out progressively smaller particles from the production stream as flow moves toward the basepipe. This construction, combined with testing against the producing fields unique particle distribution, make PetroGuard screens the best choice for solids control in completions that typically require a pumped sand-control solution.

When hanging sand-control screens off the tubulars, problems have arisen in cementing and placing liners in high-permeability unconsolidated sand conditions. Often, extensive reaming and rotating have to be performed to get the liner hanger down to the proper location due to the sand falling in and around the borehole. Installers may have to deploy the liner in difficult conditions that require rotating the liner at acceptable circulation rates to mitigate the risk of the well bridging off and the hanger pre-setting. The VersaFlex expandable liner hanger system can be used in nonthermal operations in multilaterals, slotted liners, PoroflexTM or PetroGuardTM screens. With superior liner-top seal integrity, this expandable linerhanger system has a streamlined design that withstands aggressive reaming or even drilling to depth. The system has no external parts such as slips, hydraulic-setting cylinders or liner-top packers used in conventional liners to complicate the completion. The robust design of the VersaFlex expandable liner hanger improves rig-time efficiency and helps avoid costly redundant conditioning trips, hanger damage and premature setting. Maintenance from Subsurface to Sales Meter To sustain production of heavy oil and oil sands crude, following a diligent program of intervention and maintenance procedures is necessary. Such intervention may be necessary all the way from subsurface formations, through completion equipment, pipelines and process facilities, to the sales meter. This section presents technology and methods that can contribute significantly to sustained and profitable production. Heavy oil and oil sands crude contain a significant volume of asphaltenes, in the form of colloidal, suspended, solid particles.

39 Optimize Production from Sales Meter to Reservoir

Specialized heavy oil sand screens PetroGuard Advanced Mesh.

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40 Optimize Production from Sales Meter to Reservoir

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Important features of DuraKleen service include:

Dissolves asphaltene deposits Dispersed by surfactant Strips asphaltenes and waxes from tubulars
and formation

Long-term duration effect Water-wets formation, delays deposition of


asphaltene deposits or xylene)

Maintenance does not stop at the well, but continues through to the pipeline, facilities and sales meter. Halliburton Pipeline and Process Services has delivered over 30 years of facility/pipeline chemical cleaning using a broad range of proprietary and specialized chemicals and chemical cleaning techniques. Certain circumstances (i.e., multi-diameter systems) may dictate gels be used due to mechanical pigging may not be possible. A variety of mechanical techniques, including high-pressure jetting, milling, and pigging tools are available to assist in the removal of the most stubborn deposits encountered in todays pipelines and flowlines. Wax deposits can also be removed using exothermic treatments, which typically involve mixing inorganic salts and solvents to create a heat-generating reaction. The mix can be deployed in several ways, including the use of pig trains, composite coiled tubing, or time-release technologies.

Contains no BETX (benzene, ethyl benzene, toluene, Flashpoint greater than 145F (63C) Less transport of chemical components due to high
water content (less environmental footprint)

Components fully miscible Batch-mixed or mixed on-the-fly


Historically, xylene has been used to remove asphaltene deposits; however, xylene does not change the wettability of the rock surface, so treatment effectiveness is often short-lived. Further, xylene mixtures have a low flashpoint (7784F) and contain objectionable components such as benzene, ethyl benzene, and toluene (BETX).

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Under static reservoir conditions, asphaltenes are normally held in a stable suspension. Changes in fluid temperature and pressure associated with oil production may cause the asphaltenes to flocculate and precipitate out of suspension and adsorb to the rock or pipe surfaces, complicating production and increasing the possibility of expensive mechanical failure. Because the crude is highly viscous, it is often difficult to log or do any type of well intervention. DuraKleen service uses an environmentally enhanced water/aromatic solvent emulsion system that represents an important advancement in easing maintenance operations and helping to maintain long-term production rates.

DuraKleen agent has proved highly successful in cleaning/dissolving paraffin and asphaltene deposits for the long term. You can view the effectiveness of DuraKleen agent below.
DuraKleen agent augments production and well-intervention operations, leading to increased production rate and reduced intervention time.

Flow assurance is critical in the heavy oil industry and Halliburtons operational experience enables the application of practical solutions in an effective and usable manner. Halliburtons SureStream services help solve the most challenging flow assurance problems.

SureStream service capabilities include the following:

Troubleshooting, operational advice and technical


support

41 Optimize Production from Sales Meter to Reservoir

Economic and remnant life evaluation (of pipelines) Integrity assessment Chemical, mechanical, and thermal cleaning
programs

Intrusive intervention techniques to help remove the


most stubborn deposits and restrictions from facility equipment and pipelines

Remediation experience and expertise

Literature: Lightford, S., Pitoni, E., Armesi, F., and Mauri, L. 2006. Development and Field Use of a Novel Solvent-Water Emulsion for the Removal of Asphaltene Deposits in Fractured Carbonate Formations. Paper SPE 101022 presented at SPE Annual Technical Conference and Exhibition, San Antonio, Texas, 24-27 September.

42 Expertise People and Delivery

Expertise People and Delivery

Oil sand and heavy oil assets require specialized people with the ability to handle reservoir challenges while keeping the assets profitability in sight. Halliburton can deliver this capability through multiple avenues, from consultant-led field development programs and technologies, to in-field project management engineering teams, to the design and support of a Real-Time Operations Center (RTOC). Our consulting services conducted multiple mature-field revitalization programs in many countries, including Mexico, Argentina and Russia. These programs helped clients turn traditionally low- and non-producing assets into economic opportunities. We use our proven methodologies, built on multidisciplinary teams, global best practices and leading technologies to execute these programs.

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Case History: In Mexico, our consultants assisted the operator with a shallow heavy oil horizon program. This project identified scenarios to produce shallow heavy oil as the production of deeper, light oil in the area declined, making the total area with an enhanced economic value.

Case History: Halliburton helped a Russian operator with a new-field heavy oil accumulation study to evaluate multiple development approaches and generated an optimum development pilot program.

Case History: Halliburton consultants assisted an operator in Argentina with a set of mature fields that contained heavy oil assets. As part of the overall field revitalization study, we conducted a field development plan for the heavy oil zones by modeling the reservoir using Landmarks thermal simulator and Decision Management System software technologies to perform multiple development scenarios. This in turn helped identify the optimal development approaches with the greatest production potential. Due to the success of this study, we are now finalizing the pilot program plans.

Halliburton is the pioneer of building and supporting real-time collaborative environments. Optimum decisions can be made for reducing non-productive time, maintenance, and capital expense, or increasing reserves/production in these environments. Decisions are made during the operation, not after the fact. This is particularly critical when attempting to optimize the bottom hole location for maximum drainage in a high permeability/porosity reservoir in a rapid drilling/ evaluation/modeling environment. If your staff needs specialized help, Halliburtons consultants can provide it. We have experience in every major basin around the world and help clients develop comprehensive value added technology plans based on industry best practices using our unique insights and global experience. If operators are looking for heavy oil/oil sands experience, they will find that Halliburton has a wealth of specialized heavy oil/oil sand solutions and experts. Please contact your local Halliburton representative for information about our specialists and how we can serve your needs from total asset management to providing technical specialists, or supplying a service.

43 Expertise People and Delivery

Collaborative environment allows different disciplines to discuss the issues and determine the optimum solution.

Our Project Management engineering teams deliver field development plans and pilots. Project Management provides a full range of differentiated services for well planning, construction and intervention. We take a unique, collaborative approach to understanding our clients challenges and prescribe customized, asset-specific solutions that produce the best business outcomes. Our network of engineering professionals leverages Halliburton products and services, spanning the entire oilfield lifecycle, to help ensure that each client receives optimal, expert in-field implementation solutions.

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Project management provides continuous improvements to the Heavy Oil/Oil Sands project.

Sales of Halliburton products and services will be in accord solely with the terms and conditions contained in the contract between Halliburton and the customer that is applicable to the sale.

H06153 03/08 2008 Halliburton. All Rights Reserved.

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