e-Field: Efficient, Intelligent Operations

for Field Development

Rich DowneyUnconventional Reservoir Theme Manager

Schlumberger Oilfield Services

Houston, Texas

281-285-7231 or Downey2@slb.com

TIPRO’s 61st Annual Convention

Austin, Texas

February 28 - March 2, 2007

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Unconventional Reservoir Solution

Reservoir Evaluation and Production Enhancement services and solutions through the application of innovative Completion technologies

and answer products.

Increase Field Recovery

Maximize Production

Strong focus on reservoir description

Increase Efficiency

Technology Application Drivers

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Agenda

e-Field: Efficient, Intelligent Operations for Field

Development

� Completions Efficiency

� Operational Efficiency

� Production Efficiency

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Su

rfa

ce

E

ffic

ien

cy � Collaborative Environment

� i-field Initiatives

� Fit for Purpose Equipment and Services

� Timely Treatment Execution

� Operationally Knowledgeable Teams

� Best-in-Class Safety Performance

� Safety and Environmental Impact

Co

mp

leti

on

s E

ffic

ien

cy

� Collaborative Environment

� i-field Initiatives

� Reservoir Modeling… Reservoir Pressure, Drainage, Etc..

� Field Development Planning

� Optimize Drilling Process

� Stimulation and MLEF Optimization

� Accurate Production Prediction

� Risk Management

� Applying Technologies to Enhance SIMOPS

� Influencing Future Technology… Horizontal / Pad

$

MCF

Business Drivers

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Completions Efficiency

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Field Development WorkflowAnd Project Processes™Acquire, Inventory and QC

All Data

Special Log Analysis

Map Other

Associated Zones

Petrography

Map ThicknessCorrelate logs

Formation

Evaluation

STATIC

RESERVOIR MODEL

Structural

Analysis /

Fracture

Assessment

Fractures in Well

(FMI, Core, WTA)

Outcrop Studies

Core Description

Log Calibration

Tectonic

Interpretation

Seismic Data

Regional / Field

Structure, Gravity,

Magnetics,

Lineament Maps

Gas Resource

Map Thermal

Maturity

Map Gas Content

In-Situ Stress

Reservoir

Characterization

Hydrology

Analysis

Map Hydrologic

Properties

Production Analysis

Structural Model

Analyses

Original

Gas In-Place

Dynamic

Reservoir

Model

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FDP Workflow and Project Processes (continued)

Construct Time-

Dependent Deck

Production and Pressure Data

Initialize ModelReservoir & Geologic Data

Calibrate

Model Import Observed

Data

History Matching

Production Forecasting

Economic Analysis

Define Forecast Cases Client/Project Objectives

Deterministic

Forecasts

Probabilistic

Forecasts

Construct Baseline Model

Define Project/Analysis

Area

Distributions of

Variable Properties

Monte Carlo

Simulations

Construct Forecast Models

Run Forecast

Cases

Geologic Maps

Economic & Financial

Parameters

Production ForecastsConstruct

Cash-Flow

Model Development Schedule

Cash-Flows & Summaries

Construct Dynamic

Reservoir Model

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Reservoir Modeling and Simulation

Early in a play life, simulation is used to integrate all field data into a

forecasting model

� Estimate gas in place and recovery factors

� Provide gas/water forecasts and reserves

� Optimize stimulation designs in vertical/horizontal wells

� Evaluate well spacing and lateral length

� Identify best completion intervals

� Evaluate production practices

� Quantify storage and flow mechanisms

Appraise Each Well as a Catalyst to Continuously Improve Value

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Models Driving Business Decisions:3D Petrel Mechanical Earth Model

Integration of all data to provide a predictive tool to Integration of all data to provide a predictive tool to drive well location / drive well location / development strategy minimize drilling issues and optimize development strategy minimize drilling issues and optimize

stimulation effectiveness, maximizing productionstimulation effectiveness, maximizing production

Seismic-scale

faultsSub-seismic faults and fractures (FMI)

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Earth Model

Logging

Observations

Completion

Observations

Drilling

Observations

Reservoir

Observations

Drilling

SimulatorFracture

Simulator

Reservoir

Simulator

Petrophysics

Simulator

AgreementAgreementAgreementAgreement

BetweenBetweenBetweenBetween

Model & DataModel & DataModel & DataModel & Data

Decisions

Execute Plan

Local

Knowledge

YesNo

Refine

Model

Best

Practice

Integrated Earth Model Based Workflow

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FG-5_new - X-Permeability (md)

07/01/2003 00:00:00 0.0000 days

0.0020

0.0018

0.0016

0.0014

0.0012

0.0010

0.0008

0.0006

0.0004

0.0002

0.0000

Low Perm

Shale Matrix

High Perm

Orthogonal Sets of

Natural Fractures Matrix-Block - Gas Pressure (psia)

12/28/2003 00:00:00 180.0000 days

3500

3000

2500

2000

1500

1000

500

Eclipse – Model Naturally Fractured Reservoirs

10 Year Matrix

Pressure Drop

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0

0.2

0.4

0.6

0.8

1

1.2

3000

'-1:1

Anis-15

Fracs

3000

'-1:1

0 Anis-

15 F

racs

3000

'-1:1

Anis-10

Fracs

3000

'-1:1

0 Anis-

10 F

racs

3000

'-1:1

Anis-5

Fracs

3000

'-1:1

0 Anis

-5 Fr

acs

1500

'-1:1

Anis-10

Fracs

1500

'-1:1

0 Anis-

10 F

racs

1500

'-1:1

Anis-5

Fracs

1500

'-1:1

0 Anis-

5 Fr

acs

Vertical W

ell Ave

rage

$/M

CF

$/M

CF

$/M

CF

$/M

CF

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Re

serv

es

MM

CF

Re

serv

es

MM

CF

Re

serv

es

MM

CF

Re

serv

es

MM

CF

$/MCF20 Yr Reserves

Finding Costs & Reserve Comparison

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Operational Efficiency

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Hydraulic Fractures In Horizontal Wellbores

Wellbore azimuth 0 °°°°Longitudinal fractures

Surface

Reservoir

Minimum horizontal stress

Vertical Stress

Maximum horizontal stress

Wellbore azimuth 90°°°°Transverse fractures

Goal is to Create Surface Area

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Microseismic

�� Real TimeReal Time –– used as used as

required to adjust job required to adjust job

execution (good idea; execution (good idea;

needs more development)needs more development)

�� InterpretationInterpretation –– has led has led

to better understanding of to better understanding of

fracture geometry and fracture geometry and

subsequent job design subsequent job design

considerationsconsiderations

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• Low stress anisotropy

• Lower seismic anisotropy

• Wide fracture fairway

• High stress anisotropy

• Higher seismic anisotropy

• Narrow fracture fairway

3D Sonic Scanner - Stress Anisotropy

SH

SH

Sh

ShSH

SH

Sh

Sh

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Fracture Geometry Information from Horizontal Image LogsVariable Induced Fractures Infers Variable Stress

Transverse Fractures Only:

σσσσHHHH >> σσσσhhhh

No Fractures:

High High High High σσσσ’’’’

Long & Trans Fractures:

Low Low Low Low σσσσ‘ & ‘ & ‘ & ‘ & σσσσHHHH ~ σσσσhhhh

Long, Narrow Fracture FairwayLong, Narrow Fracture FairwayLong, Narrow Fracture FairwayLong, Narrow Fracture FairwayWide Fracture FairwayWide Fracture FairwayWide Fracture FairwayWide Fracture FairwayNo FracturesNo FracturesNo FracturesNo Fractures

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BBBB----21212121

BBBB----14141414

Dynamic MLEF Completion Optimization

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Hydraulic Fracturing Mapping

Integration of reservoir properties, fracture Integration of reservoir properties, fracture Integration of reservoir properties, fracture Integration of reservoir properties, fracture

modeling and micro seismic detection aid in modeling and micro seismic detection aid in modeling and micro seismic detection aid in modeling and micro seismic detection aid in

reservoir optimizationreservoir optimizationreservoir optimizationreservoir optimization

Well placement Well placement Well placement Well placement

with HFM fracture with HFM fracture with HFM fracture with HFM fracture

geometrygeometrygeometrygeometry

Well placement Well placement Well placement Well placement

without fracture without fracture without fracture without fracture

detectiondetectiondetectiondetection

• Improve the return on stimulation

investment

• Determine optimum well spacing &

placement

• Calibrate fracturing models

• Optimize fracturing design

Actual Microseismic map of a 6 stage Actual Microseismic map of a 6 stage Actual Microseismic map of a 6 stage Actual Microseismic map of a 6 stage

completioncompletioncompletioncompletion

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Mechanical Earth Modeling

� Basis for drilling simulator and optimization

� Completions modeling for hydraulic frac dimension

� Tie to StimMAP microseismic data for model validation

� Perforation and stage design

� Optimized Cfd

� Well locations and drainage area

� Aid to Drilling and Completions

� Natural fracture understanding for maximized productivity

� Fluid and proppant selection

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Production Efficiency

i-field

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i-fieldEfficiency and Production Enhancement

i-District

Operational Support Center

Production Center of Excellence

Planning and Logistics

Drilling Execution

Production Optimization

Reservoir Management

OSC

Hub

platform

platform Remote Site

Remote SiteRemote Site

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Process Change for Safe, Efficient Operation

24 hour completion operations including, simultaneous perforating and

fracing, optimizes time on location and reduces total completion time. An

average of (8) fracs/day are routinely stimulated.

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i-District Components

End-to-End Service Delivery Process

Resource Management Component

Service Oriented Architecture

Global Mobile Operation

i-District Setup

Business Process Manager

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Operation Support Center - OSC

Interactive service operations –a proven system for remotely monitoring, modeling, and controlling processes to optimize services while increasing safety and reducing risk

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Operational Support Centers/ Decision Support Center

Information available from the wellhead or the

server through any browser capable device

Production Enhancement Identification

Communication can be accomplished;

between wells

between each well and the server

Between the server and each well

Alarming on KPI;

Liquid Loading

Productivity Index

Fields Communication Office

DeviceManagement

AlarmManagement

Trender

Role Manager

Production W

atcher

Field InterfaceMonitoring & Surveillance

Reservoir Behavior Analysis

Best of breedCommunications

Kanak1.0

Production Optimization - Surveillance & Diagnostics

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Data Conditioning, Reporting, Management

Surveillance in real time

Production Optimization

Reservoir Optimization

Production Optimization in Real Time

Data Gathering & Transmission (BHP, WHP, Flowrate)

VALUEVALUEVALUEVALUE

Production Center of Excellence

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Web Interface

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Mechanical Earth Model – Continuous Knowledge

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i-field Summary

� Real-time data is valuable in optimizing the deliverability of the entire system• Maintain efficiency of the wellbore

• Maximize production from the reservoir

• Multi-well analysis for reservoir performance optimization

� Real-time data allows a time snap of the reservoir

� Information management:

� The right people, the right methodologies, the right processes

Thank you!