Transcript 2011 MRO Template

Number of Completion Stages – Does it Matter
2012 Williston Basin
Petroleum Conference
Bismarck, ND
May 22 - 24, 2012
Jim Thompson
Bakken D&C Manager
Marathon Oil Corporation
Topics of Discussion
 Bakken completion stages
 Effect on IP and cumulative production
 Optimum number of stages
– Other considerations
 Proppant types and selection criteria
 Function
 Selection
 Transport
 Messenger word of thanks
 Drilling & Completion Team
 SS Team
– Ahmad Salman
 UT Team
– Steve Baumgartner
Marathon Oil Corporation
2
Bakken Completion Stages
16”
 Single Stage Completions
 OH
9-5/8”
 Uncemented preperforated liner
 Crosslinked polymer , linear gel, and/or slickwater fracs
Diverter slugs or balls
UBS
7”
9000+’
MBS
6” Hole
LBS
Marathon Oil Corporation
3
Bakken Completion Stages
Bakken #Frac Stages Comparison
NDIC Posted Production Data
Cumulative Oil Production, MBBL
180
160
140
120
100
80
60
40
20
0
0
50
100
150
200
250
300
350
400
Days of Production
0-1 Stage
Marathon Oil Corporation
4
Bakken Completion Stages
16”
 Multi Stage Completions
 Plug and Perf
9-5/8”
 Frac Sleeves
 Rapid adoption of 10 stage Sleeve Technology
― ¼” graduated ball seats
 Linear Gel and Crosslinked polymer fracs
UBS
7”
9000+’
MBS
6” Hole
LBS
Marathon Oil Corporation
5
Bakken Completion Stages
Bakken #Frac Stages Comparison
NDIC Posted Production Data
Cumulative Oil Production, MBBL
180
160
140
120
100
80
60
40
20
0
0
50
100
150
200
250
300
350
400
Days of Production
0-1 Stage
Marathon Oil Corporation
10-14 Stage
6
Bakken Completion Stages
 Evolved to 20 stage sleeve technology with 1/8” graduated ball seats
 Decreased spacing between stages
 Increased amount of stimulated rock volume (SRV)
– Versus 10 stage
 Progression to 40 stages continued with move to 1/16” graduated ball seats
 Number can be tweaked to operators preference with mixing of sleeves and
plug and perf typically referred to as hybrid completion
UBS
MBS
LBS
Marathon Oil Corporation
7
Bakken Completion Stages
Bakken #Frac Stages Comparison
NDIC Posted Production Data
Cumulative Oil Production, MBBL
180
160
140
120
100
80
60
40
20
0
0
50
100
150
200
250
300
350
400
Days of Production
0-1 Stage
Marathon Oil Corporation
10-14 Stage
8
Bakken Completion Stages
Bakken #Frac Stages Comparison
NDIC Posted Production Data
Cumulative Oil Production, MBBL
180
160
140
120
100
80
60
40
20
0
0
50
100
150
200
250
300
350
400
Days of Production
0-1 Stage
10-14 Stage
Marathon Oil Corporation
15-19 Stage
9
Bakken Completion Stages
Bakken #Frac Stages Comparison
NDIC Posted Production Data
Cumulative Oil Production, MBBL
180
160
140
120
100
80
60
40
20
0
0
50
100
150
200
250
300
350
400
Days of Production
0-1 Stage
10-14 Stage
Marathon Oil Corporation
15-19 Stage
20-24 Stage
10
Bakken Completion Stages
Bakken #Frac Stages Comparison
NDIC Posted Production Data
Cumulative Oil Production, MBBL
180
160
140
120
100
80
60
40
20
0
0
50
100
150
200
250
300
350
400
Days of Production
0-1 Stage
10-14 Stage
15-19 Stage
Marathon Oil Corporation
20-24 Stage
25-29 Stages
11
Bakken Completion Stages
Bakken #Frac Stages Comparison
NDIC Posted Production Data
Cumulative Oil Production, MBBL
180
160
140
120
100
80
60
40
20
0
0
50
100
150
200
250
300
350
400
Days of Production
0-1 Stage
10-14 Stage
15-19 Stage
Marathon Oil Corporation
20-24 Stage
25-29 Stages
30-34 Stages
12
Bakken Completion Stages
Bakken #Frac Stages Comparison
NDIC Posted Production Data
Cumulative Oil Production, MBBL
180
160
140
120
100
80
60
40
20
0
0
50
100
150
200
250
300
350
400
Days of Production
0-1 Stage
10-14 Stage
15-19 Stage
20-24 Stage
Marathon Oil Corporation
25-29 Stages
30-34 Stages
35-39 Stages
13
Bakken Completion Stages
Bakken #Frac Stages Comparison
NDIC Posted Production Data
Cumulative Oil Production, MBBL
180
160
140
120
100
80
60
40
20
0
0
50
100
150
200
250
300
350
400
Days of Production
0-1 Stage
10-14 Stage
15-19 Stage
20-24 Stage
25-29 Stages
Marathon Oil Corporation
30-34 Stages
35-39 Stages
40 Stages
14
2006 – 2011 Dunn County Middle Bakken Wells
2006 – 2007
2006 – 2007
Open Hole Completion Wells
1
Open
Hole Wells
Average Proppant Density (lb/ft):
2008
0.9
Staged Wells
0.8
Cumulative Distribution Function
0.7
0.6
71
2008 Stage Completion Wells
Average # of Stages:
Average Proppant Density (lb/ft):
2009
Staged Wells
6
144
2009 Stage Completion Wells
Average # of Stages:
Average Proppant Density (lb/ft):
2010
Staged Wells
9
171
2010 Stage Completion Wells
Average # of Stages:
Average Proppant Density (lb/ft):
2011
Staged Wells
19
268
2011 Stage Completion Wells
0.5
Average # of Stages:
Average Proppant Density (lb/ft):
20
228
0.4
0.3
Mean
12 Month Cumulative
Oil Production
(BBL Oil)
0.2
Open
Hole
6 Stage
Completion
9 Stage
Completion
19 Stage
Completion
20 Stage
Completion
41,000
45,000
59,000
88,000
91,000*
0.1
2011 staged wells cumulative oil production based on extrapolation
Data obtained from NDIC public information.
0
0
50,000
100,000
150,000
200,000
250,000
12 Month Cumulative Oil Production (BBL)
Marathon Oil Corporation
15
Bakken Completion Stages
 Conclusions
 Number of completion stages does have an effect on IP and cumulative production
during first year
– Increases stimulated rock volume
 Other considerations which may effect optimum number of stages
– Geology or rock quality
• Understand natural fractures to determine vertical vs horizontal growth dominance
– Flowback practices
• Conservative or Aggressive choke management
– Be consistant to evaluate proper number of stages
– Frac design per stage
• Fluid volumes
• Proppant volumes
• Proppant type
• Consistency is key to determine effect of varying the number of stages
– Change one variable at a time keeping others the same
– Understand cost implications of each variable for well economic considerations
Marathon Oil Corporation
16
Proppants and Selection Criteria
2012 Williston Basin
Petroleum Conference
Bismarck, ND
May 22 - 24, 2012
Jim Thompson
Bakken D&C Manager
Marathon Oil Corporation
Proppant Types and Selection Criteria
%Fines per API/ISO procedure
Marathon Oil Corporation
18
Proppant Types and Selection Criteria
Marathon Oil Corporation
19
Proppant Types and Selection Criteria
 Proppant Function
 Keep the created fracture (length and height) open
 Provide conductivity contrast to accelerate flow to the wellbore
 Proppant Selection
 Cost
 Proppant pack conductivity – minimum 500 md-ft
– Size – as large as you can place with frac design
– Effective Closure Stress on Proppant = Minimum Horizontal Stress – Fracture Face Flowing
Pressure (Pressure in the Producing Propped Fracture)
– Fracturing fluid damage – slick water, linear gel, cross link fluids
 Crush test
– Less than 10% fines generated at maximum closure stress
 Predict-K
– Tool to predict proppant pack conductivity of planned fracture treatments
– Evaluate conductivity of what can be placed, 2 lb/ft2 of 20/40 versus 2.5 lb/ft2 of 30/50,
etc.
Marathon Oil Corporation
20
Proppant Types and Selection Criteria
 Proppant Selection (cont’d)
 Proppant pack conductivity over the life of well
– Production damage (scale, salt, fines, etc.)
– Proppant degradation from stress cycling
– Embedment into formation face
 Proppant Transport
 Larger proppant provides higher conductivity but may be more difficult to place
– Settling rate increases in proportion to the diameter squared
 Bridging
– Perforation diameter should be six times larger than proppant diameter
– Pumping hydraulic fracture width should be three times larger than proppant diameter
Marathon Oil Corporation
21
Questions
Thank You
22