--> Operational and Business Efficiency in Unconventional Projects, Haskett, William J.; Jenkins, Creties; Walls, Joel D., #90100 (2009)
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Operational and Business Efficiency in Previous HitUnconventionalNext Hit Projects

Haskett, William J.1
 Jenkins, Creties2
 Walls, Joel D.3

1Decision Strategies Inc., Houston, TX.
2
DeGolyer and MacNaughton,
Dallas, TX.
3
Object Reservoir,
Houston, TX.

In order to extract maximum value and benefit from Previous HitunconventionalNext Hit oil and gas projects, companies must recognize the need for a fully Previous HitintegratedNext Hit business and operational approach. An Previous HitintegratedNext Hit approach starts with a probabilistic assessment of the production potential of a region based on a solid geotechnical foundation, but true maximization of value can only be realized from operational efficiency within an Previous HitintegratedNext Hit business context.

Companies are forced to make large development decisions using scant real data. As such, it becomes critical to understand which learning objectives will have the greatest impact when fulfilled. Projects are phased and each activity must take uncertainty into account in order to achieve reliability and reduce investment risk. These activities include:
- Characterizing the resource potential
- Quantifying the production uncertainty by well and project aggregate
- Conducting efficient early development testing using the best available technology
- Leveraging the early results to provide a reliable competitive advantage,
- Developing and implementing a sound competitive plan.

Factors controlling the distribution of gas Previous HitresourcesNext Hit include organic richness, maturity, gas content, and gas saturation state, in addition to conventional elements such as porosity and water saturation. While reviewing the available core and log data it is critical to assess their variability and underlying controls as limited data may not be fully representive of in-situ reservoir properties.

Two thirds of the value uncertainty in a typical Previous HitunconventionalNext Hit gas play is attributable to production uncertainty. This can be reduced through the use of state-of-the-art technologies such as reservoir models capable of better predicting well performance profiles and recoveries. This type of technology needs to be part of a larger plan to quantify critical unknowns, and to show their business impact.

Thresholds for pilot well performance as well as early development need to be assessed prior to the pilot phase of a project. If well planned and executed, a company’s play entry and early development strategy can lead to value maximization, competitive advantage, and downside risk mitigation (early and clean exit when warranted). Competitive advantage is both the driving force, and the reward for good decision making in Previous HitunconventionalTop plays.


AAPG Search and Discover Article #90100©2009 AAPG International Conference and Exhibition 15-18 November 2009, Rio de Janeiro, Brazil