The Hunt for Acquisition and Drilling Prospect Leads*
Search and Discovery Article #40122 (2004)
*Adapted from oral presentation, entitled “Using Industry Applications Software for Analyzing Data to High Grade Acquisition and Drilling Prospects,” at AAPG Mid-Continent Section Meeting, Tulsa, OK, October 12-14, 2003, and at Tulsa Geological Society Meeting, March 9, 2004.
Recent years have seen remarkable technological advances in industry applications software that is capable of analyzing large corporate and/or industry databases, giving geoscientists and engineers the capability of high grading and screening acquisition and drilling prospects.
Using industry applications software, geoscientists and engineers can sort through large datasets to categorize/compile information in order quickly to make generalizations and gain knowledge and background information on a play or trend. This presentation will provide many methods for analyzing data in order to high grade acquisitions, identify field development opportunities, identify areas within a basin that have significant multiple pay zone potential, set up regional or basin-type databases for quick look determinations for auction or acquisition screening and evaluations, and to focus on hot areas of activity.
This presentation will also demonstrate methods of how to use industry software applications and industry data to identify areas of permeability and bypassed productive pay zones that either a geoscientist or engineer could use quickly to sort data and generate acquisition and drilling prospect leads.
Figure Captions (1-6)
· Landmark – GeoGraphix (Figure 1)
· Geoplus – Petra (Figure 2)
· Schlumberger – GeoQuest (Figure 3)
Reserves and Economic Software (Figure 4)
· IHS – Power Tools
· OGRE Partners –OGRE
· Landmark – Aries
· Schlumberger – Merak Peep
Automated EUR Reserve Estimates (Figure 5)
Access Database Exports (Figure 6)
· Mapping attribute, net pay, isopach, and structure
· Cross sections—stratigraphic and structural
· Gridding and contouring techniques
· Management presentations
· Acreage position management
· Field development management
· Mainly used by drafting and geo-tech personnel
· Contact A&D brokers to see what they represent that is for sale.
· Make contacts of larger companies that typically sell large volumes of properties and attempt a negotiated purchase.
· Analyze existing HBP acreage position for infill or extensional opportunities.
· Analyze offset operators to HBP acreage position for anomalies or drainage problems.
· Identify field extension opportunities.
· Analyze existing non-producing acreage position for drilling potential..
· Petrophysical and detailed log analysis
· Volumetric reserve analysis of reservoirs
· Identify/compare performance and success
· Determine continuity and compartmentalization of reservoirs.
Petrophysical and Detailed Log analysis (Figure 9)
· Log calculations – porosity, Sw, K, lithology
· Identify O/W or G/W contacts.
· Calculate volumetric reserves.
Volumetric Reserve Analysis (Figure 11)
· Calculate volumetric reserves by producing interval of a field, basin, or region.
· Compare theoretical with actual reserves.
· Identify anomalies for rework, recompletion, or redrill opportunities.
Analyzing Performance and Success of Other Operators
· Identify most successful operators by year comparing EUR’s and dry holes with drilling/completion dates.
· Map areas of regions successful operators are active.
· Compare their activity and success with your regional interpretation.
· Verify/confirm continuity or compartmentalization of a reservoir.
· Identify gas chromatograph fingerprints of oil or gas sample from producing zone(s).
· Compare fingerprints of zones of offset wells to identify extensional or development opportunities.
Under-Utilized Acquisition and Drilling-Prospect Analysis
· Perform kh equivalent and EUR analysis.
· Perform DST analysis for permeability indicators.
· Perform Darcy’s calculation for well productive analysis.
· Identify high PI well anomalies
· Calculate first two years of production.
· Determine minimum and maximum with statistical analysis.
· Normalize the data.
· Map it just like you would with kh data.
· Compare it with EUR’s with overlays.
· Use to analyze regions or basins for prospect leads.
· Compare areas of high permeability with EUR’s for anomalies.
· Identify areas of high permeability and low EUR’s as indicative of damaged zones.
· ISIP=FSIP, reservoir not depleted or limited
· IHP=FHP and >SIP’s, no significant mud loss and a good test for using data
· Large fluid recoveries = good permeability
· Calculate ratio of FFP/FSIP.
· Higher ratio is indicative of good k.
· FP/SIP ratios with fluid recoveries – 75% higher than without fluid recovery, indicating higher k.
· High FP/SIP with little or no fluid recovery is indicative of near wellbore damage.
· High k, where FP is closer to SIP
· Low k, where FP is much smaller than SIP
· FSIP<ISIP is indicative of depletion or limited reservoirs.
· Calculate which wells should be capable of producing if no damage exists.
· Compare theoretical flow rates with actual flow rates for anomalies.
· Identify wells that can be reworked or redrilled.
Darcy's Radial Flow Equation
Q = (7.08)(kh)(DP) / (Bo )(m)(ln re /rw ), bopd
Q = (0.703)(kh)( DP) / (z)(BHT)( m)(ln re /rw ), mcfd
ln re/rw = 6 to 8; therefore use 7 as a good estimate.
High PI Well Anomalies
· Calculate Productivity Index (PI) for region or basin.
· Identify areas of high PI potential.
· Compare PI’s with EUR’s for anomalies.
· Use Darcy’s Equation to calculate and populate zones for mapping and contouring.
· (Q / DP) = (7.08)(kh) / (Bo)(m)(ln re/rw)
· Calculate Bcf/1000 psi or Mmbo/1000psi for each well in region or basin.
· Identify anomalies for acquisition or drilling prospects.