New Albany Shale Gas Project by djh75337

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									New Albany Shale Gas Project

                 Project Review Presented at
          RPSEA Unconventional Gas Conference 2010
                  Golden, CO. April 6, 2010
                         Iraj Salehi
                   Gas Technology Institute
                New Albany Shale
An Industry-RPSEA Cooperative R&D Project

                         Illinois Basin

                                          •   Large Geographic Area
                                          •   Multiple States
                                          •   Complex Geology
                                          •   Low Permeability

                                               Large GIP
                                              with Limited
                                          Production (.3 Bcf/y)
        86 to 160 Tcf
         New Albany                       Technically Complex
            Shale                                   =
       ( Gas-in-Place)                        R&D Target

                 New Albany Shale
                 A Fully Integrated Project

                     Research Quality Field Data
              Geology                                  Geochemistry

                                                     Production Data

            Hydraulic             Reservoir
            Fracturing           Engineering

 9 Industry participants providing data and wells of opportunity for
  field data acquisition and testing
 9 Research organizations and 2 service companies performing the
  research together with engineers and geologists from the host
Project Structure and Tasks
 Field Data Acquisition, GTI
 Geology, BEG
 Geochemistry, Amherst
 Formation Evaluation,

 Fracture Modeling, A&M
 Fracture Diagnostics

 Reservoir Engineering,
    A&M, WVU

 Technology Transfer, GTI

                   New Albany Shale
                      Field Data Acquisition
> 360 feet of cores and complete suit of
  logs were taken for geological,
  geochemical, formation evaluation,
  reservoir engineering, and rock
  mechanics studies.
> 45 water samples for study of
  methanogenic bacterial population were
> Production data from over 250 wells
> Several cores from public repositories
> One geologic field trip carried out
> Surveyed a Reversed Vertical Seismic
  Profile (RVSP) for determination of the
  dominant natural fractures from velocity
Field Data Acquisition
> Coop work with CNX; Evaluation of
  Zipper Frac in NAS
    ─ Received log and core data
    ─ Cored and logged a pilot hole
    ─ CNX shall drill two parallel horizontal
    ─ Project will use fracture modeling and
      microseismic imaging
    ─ CNX shall provide production data
                                                Coring &
                                                Logging in
                                                CNX well

Field Data Acquisition
> Coop work with NGAS                            Salem

   ─ NGAS provides production data used          Warsaw

      for Reservoir Engineering studies
                                                 Ft. Payne

   ─ Cored and logged a pilot hole               New Albany

   ─ Geochemical and petrophysical              Sellersburg

      analysis of cores

   ─ Microseismic imaging of hydraulic
      fractures completed

   ─ Production from the coop well awaits
      installation of nitrogen rejection unit

New Albany Shale

                    > Two cores from Noble Energy were
Location Of
                      studied. The project, in cooperation and
Cooperative Wells
                      cost sharing of Daugherty Petroleum
                      (NGAS) and CNX Gas cut a total of 360
                      feet of cores that are being studied by
                      BEG and other researchers.
                    > One geologic field trip carried out.
                    > Natural fractures in the NAS are common
                      and have diverse origins.
                    > Steep, partly or completely sealed
                      fractures are likely most important for
                      completions in NAS.
                    > Calcite-sealed fractures form weak planes.
                    > More complex fracture fill gives stronger

                   New Albany Shale
Wells sampled, summer 2008 &
        summer 2009              > 45 water samples were.
                                 > Extracted DNA from samples of microbial
                                 > Analyzed 12 NAS samples from 12 cores.
                                 > Performed geochemical analysis on gas
                                   samples from 10 NAS wells.
                                 > Currently completing bacteria and archaea 16S
                                   clone libraries
                                 > High alkalinity and enriched residual 13C from
                                   dissolved inorganic carbon that correlate with
                                   biogenic gas formation in previous studies have
                                   been observed.
                                 > Analysis of Antrim samples indicates that
                                   bacterial methane generation continues and
                                   may have noticeable slowed the down
                                   production decline rate.

                       New Albany Shale
                           Formation Evaluation
> 41 sets of logs and core data received                                     Daugherty Well 2485-21
                                                                             Meas'd Data, Well #1
                                                                             Meas'd Data,Well #2
                                                  120                        Normalized Data, Well Daugherty 2488

  from producing companies.                                                  Normalized Data, Well #1
                                                                             Normalized Data, Well #2
                                                                             Best Fit Isotherm, Two Wells
                                                  100                        SE KY Isotherm, Three Wells

> Developed the cost matrix for various
                                                                             Shrewsbury KY Isotherm
                                                                             Maple Corners KY Isotherm

                                            Gas Content, scf/ton
                                                                             Daugherty Well 2485-21 Isotherm
  logging, coring, and core analyses for                           60
  the project.                                                     40

> Data from several geochemical                                    20

  analyses were aggregated to arrive at                             0

  an average desorption isotherm.                                       0                 500                        1000
                                                                                                                    Pressure, psia
                                                                                                                                          1500             2000

> Investigated the effects of adsorbed                                      Methane Adsorption Isotherm For Two Noble Wells in Sullivan County, Indiana,
                                                                               and Daugherty Well 2485-21 in Christian County, KY New Albany Shale

  gas on density and porosity
  calculation from logs and verified that
  the adsorbed gas has a 0.37 g/cc.

                New Albany Shale
                     Fracture Diagnostic
> Determine effectiveness of the
  horizontal open-hole packer
  completion process in New Albany
  Shale and determine azimuth and
  extent of hydraulic fractures.
> Designed 3 microseismic and one
  tiltmeter fracture diagnostic
  surveys and performed a
  microseismic imaging in well DPI-
> A second microseismic fracture
  imaging survey on well SA-005 is
  scheduled for April, 2010.

   Microseismic Mapping in the Western
       Kentucky Low-Pressure NAS
• Designed 3 microseismic and one       •Horizontal stresses τmin and τmax were lower
tiltmeter fracture diagnostic surveys   in the NAS than in bounding layers, suggesting
and performed a microseismic            that (in absence of geological features) vertical
imaging in well DPI-2485                confinement may be generally expected.

•Low-μ fluid (± 1MMSCF N2) created
adequate length (1,000 – 1,600 ft) &
high degree of far-field complexity,
but may require minimal propping
                                                   Toolstring 2
•excessive height growth during the
last 3 stages indicates the presence                                            Toolstring 1

of fault                                                          Warsaw

                                                                  Ft. Payne
• Primary induced azimuth of N85°E                                 New Albany
suggests optimal area lateral
azimuth of N15°W                                                  Sellersburg

Reservoir Engineering

> Reservoir engineering studies
  have been challenging due to
  extremely low permeability and
  data scarcity. The project has
  adopted a two-pronged
> Texas A&M is using various
  analytic and numerical
  techniques and West Virginia
  University is developing a top-
  down AI-geostatistical
  approach for field–level          Pressure profile after 1 and 5 years of
  reservoir evaluation.
Reservoir Engineering
                   30 Year Production:
                   Arps exponential
                       .14 BSCF
                   Arps Hyperbolic
                       .74 BSCF
                   Modified Hyperbolic
                       .26 BSCF

    Reservoir Engineering / Best Practice Analysis

> Parallel to the A&M studies, West
  Virginia University is taking a field-
  level approach using the FRACGEN
  and NFFLOW simulation packages.
> Using production data from over 250
  wells obtained from Kentucky
  Geological Survey, WVU is developing
  an AI-based reservoir engineering
  technique for field study.
> Combination of the two approaches
  will be a valuable tool for reserve
  estimate and production forecasting.

Fracture Modeling
   Interaction between natural and hydraulic fractures
             σ                    y




           1.184                                        σx
                     L = 0.15
                                        Natural fault

                                                             (a) σ x σ y = 1.0 1.0 ; (b) σ x σ y = 2.0 1.0 ; (c) σ x σ y = 1.0 2.0 .
- Parametric simulation nearing completion

- Modeling of NGAS well fracturing suggests that
  pore pressure distribution resulting from nitrogen
  injection has increased the virgin pore pressure
  by as much as 4 MPa in a large zone around the
  fracture. Although the calculated stress state
  does not show intact rock failure, the increased
  pore pressure is likely to trigger slip on pre-
  exiting cracks and induce micro-seismicity as in                                                Minimum principle stress after 10 minutes of
  observed in the field.                                                                                   injection in NGAS well

Environmental Considerations
> States of Emphasis: Kentucky and Indiana
> Primary Regulatory Agencies Contacted
  ─ Kentucky: Department of Natural Resources (DNR)
  ─ Indiana: Indiana Dept of Environ Mgt and the DNR
> Responses from Regulatory Agencies
  ─ Minimal Environmental Impact
  ─ No or Minimal Flowback Water
  ─ Low Flow Produced Water -- stored in 50 bbl tanks, then
    transported to permitted Class II injection wells.
  ─ No Air Issues have surfaced (e.g. VOC’s)
  ─ Minimal Solid Waste Issues.
> Conclusion: NAS Enjoys Minimal Environmental Barriers.
Technology Transfer
           Major Publications & Presentations                                        Venue                       Date
New Albany Shale Project                                    HART’s Unconventional Natural Gas Report             Dec-08
Identification of microbial in Illinois basin               AAPG Bulletin                                        Mar-09

Shale Evaluation New Albany Shale                           SPWLA Spring Topical Conference Philadelphia, Pa     Mar-09
New Albany Shale Gas GTI Cooperative Project                SPWLA Spring Topical Conference Philadelphia, Pa     Mar-09
New Albany Shale Project Update                             RPSEA Unconventional Gas Meeting, Golden, CO         Apr-09
Natural Franc in the NAS and their importance for production International Coaled and Shale Gas Symposium        May-09
New Albany Shale Project Update                             GTI Forum Chicago, ill                               Jun-09

New Albany Shale Gas Project A Joint Industry Project       Touch Briefings Exploration & Production             Aug-09
Top-Down Intelligent Reservoir Modeling of NAS              SPE Eastern Regional Meeting Charleston              Sep-09
Economic Impact of Reservoir properties in NAS              SPE Eastern Regional Meeting Charleston              Sep-09
New Albany Shale Gas Research Project.                      World Gas Conference Buenos Aires, Argentina         Sep-09

Poster Presentation of New Albany shale                     NAPE Conference Houston, Texas                       Feb-10
New Albany Shale Gas Project A Joint Industry Project       American Oil & Gas Reporter                          Jun- 10

Conclusions & Discussions
 Project has developed knowledge and information for removing uncertainties regarding
  economics of New Albany Shale Gas, e.g.; reserve assessment, well performance; and
  development of efficient completion techniques
 There are no environmental or regulatory obstacles at this time
 Major Results:
        Gas content
        Gas type thermo vs bio result
        Fracture Stimulation

 The NAS Resource:
        Is not a Barnett or Marcellus, but a truly a nanodarcy resource for the most parts
        Requires gas price support
        While D&C cost improvements have been significant; still requires a D&C cost breakthrough
        Approach to NAS will require economy of scale
        Nanodarcy technology is not yet developed
        NAS is a Barnett of the future with ongoing development.
        Technologies developed will be transferable to other shale gas basins that are presently considered

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