Report Date: Mar 31, 2003

Semi-Annual Technical Progress Report

PREFERRED WATERFLOOD MANAGEMENT PRACTICES FOR THESPRABERRY TREND AREA

DOE Contract No.: DE-FC26-01BC15274

Harold Vance Department of Petroleum EngineeringTexas A& M University3116 TAMUCollege Station, TX 77843-3116(979) 845-2241

Contract Date: September 1, 2001Anticipated Completion Date: September 1, 2003

Program Manager: C. M. SizemorePioneer Natural Resources

Principal Investigator: David S. SchechterHarold Vance Department of PetroleumEngineering

Contracting Officer’s Representative: Dan FergusonNational Petroleum Technology Office

Report Period: Sept 1, 2002- Feb 28, 2003

US/DOE Patent Clearance is not required prior to the publication of this document.

ii

DISCLAIMER

This report was prepared as an account of work sponsored by an agency of the UnitedStates Government. Neither the United States Government nor any agency thereof, norany their employees, makes any warranty, express or implied, or assumes any legalliability or responsibility for the accuracy, completeness, or usefulness of anyinformation, apparatus, product, or process disclosed, or represents that its use would notinfringe privately owned rights. Reference herein to any specific commercial product,process, or service by trade name, trademark, manufacturer, or otherwise does notnecessarily constitute or imply its endorsement, recommendation, or favoring by theUnited States Government or any agency thereof. The views and opinions of authorsexpressed herein do not necessarily state or reflect those of the United States Governmentor any agency thereof.

iii

TABLE OF CONTENTS

DISCLAIMER .............................................................................................................................ii

TABLE OF CONTENTS.............................................................................................................iii

LIST OF TABLES.......................................................................................................................iv

LIST OF FIGURES .....................................................................................................................v

Objectives ....................................................................................................................................1

Germania Spraberry Field Demonstration Status ........................................................................1

Development of Reservoir Management Database Software ......................................................1

References....................................................................................................................................2

iv

LIST OF TABLES

Table 1 Coupling between injectors and producers ................................................................3

Table 2 List of well locations associated with water injections..............................................4

v

LIST OF FIGURES

Fig. 1 Location of new water injection wells in Germania Spraberry Unit .........................5

Fig. 2 Water injection rate from six injectors.......................................................................6

Fig. 3 Response of GSU well 318A to water injection ........................................................6

Fig. 4 Database of Germania Unit Area with wells outside the unit....................................7

Fig. 5 Production history of on-trend wells..........................................................................8

Fig. 6 Production history of off-trend wells.........................................................................8

Fig. 7 Germania database front page....................................................................................9

Fig. 8 Well location and information in Germania Unit ......................................................10

Fig. 9 Zoom-in and zoom-out features.................................................................................10

Fig. 10 Result of zoom-in feature...........................................................................................11

Fig. 11 A note feature in the Germania map ..........................................................................11

Fig. 12 Task and petroleum tools in menu bars .....................................................................12

Fig. 13 Example of production history of well 1-Meek, C ....................................................12

Fig. 14 Graph dialog feature ..................................................................................................13

Fig. 15 Example of decline curve analysis using hyperbolic option......................................13

Fig. 16 PVT application front page........................................................................................14

Fig. 17 PVT chart builder.......................................................................................................14

Fig. 18 Directional survey application ...................................................................................15

Fig. 19 Well trajectory chart ..................................................................................................16

Fig. 20 Material balances application ....................................................................................16

1

Objectives

The objective of this report is to significantly increase field-wide production in theSpraberry Trend in a short time frame through the application of preferred practices formanaging and optimizing water injection. Our goal is to dispel negative attitudes and lackof confidence in water injection and to document the methodology and results for publicdissemination to motivate waterflood expansion in the Spraberry Trend.

Germania Spraberry Field Demonstration Status

The water injection began on Feb 3, 2003 from six injectors. The six injectors consist ofthree wells converted to water injection (17, 407A and 410A), two wells returned towater injection (11W and 22W) and a new injection well (214W) as shown in Fig. 1. Wedeveloped preferred management practices based on all prior experience in the ETO’Daniel Pilot Area and also based on the response measured during old water injectionperformance as discussed in previous report (Schechter et al, 2003). We monitor thewater injection response by associating the water injection rate with the expectedresponse in near-trend and on-trend producers as presented in Table. 1. An average of270 bpd water is injected through each of those six injectors (Fig. 2). Up to now somewells have responded to water injection. Production GSU well 308A has increased fromaverage 10 bopd to 19 bopd (Fig. 3). The water production from this well shows almostsimilar response to oil production rate, which indicates this well is strongly dependent onwater injection. However, as of this date other wells still do not show a definite response.

In order to observe the response of water injection, we also included the wells outside theGermania Lease as shown in Fig. 4. These wells were included to track the response ofwater injection since the water injection may travel to great distance as observed in ourprevious work in ET O’Daniel Pilot Area. Oil, water and gas production are carefullymonitored in wells along the entire perimeter of the area expected to respond within theGermania Unit. The production rate history of on-trend and off-trend wells were totaledand plotted prior to water injection as can be seen in Figs. 5 and 6. These production datawill be updated until the end of the project. Any increase in oil production during thewaterflood period will be identified and used for our economic analysis.

Development of Reservoir Management Database Software

Properly managing a reservoir that is so large and communicates, via the fractures, overgreat distances, poses a complicated technological and data management constraint. Thisproblem acts as a deterrent for waterflood operations in Spraberry reservoirs. Reservoirengineering, by definition, requires precise injection, production and pressure data.Acquisition and control of this data has always been a constraint to providing theoptimum method for water injection. The result is large volumes of oil that could havebeen recovered via water injection remain untapped. We believe by proper data

2

acquisition and precise reservoir engineering techniques, any lack of confidence inwaterflooding can be overcome.

In this report period, even though we are still using Oil Field Manager (OFMΤΜ) as ourproduction database system, we are also developing our own database system to performa better analysis for this particular area. This database software is written using a visualbasic programming language. It has the capability to perform similar tasks as the OFMdatabase system such as decline curve analysis, material balances, bubble map plot and inaddition it would have unique features such as plotting the ellipse map following thefracture trend, PVT analysis, risk analysis, well trajectory and simulation.

This program would be applicable for any type of reservoir. The current progress isintended to show the use of this program for managing the data in the Germania Unit.Fig. 7 shows the front page of the database software. The production and injection inputdata format follows the TOW data format for an easy access updating of the productiondata. Figure 8 shows the result of uploading the well location, well information, andproduction/injection data. Once we have uploaded the well data, we can zoom-in andzoom-out the picture to find specific information on a certain well in the cluster location(Fig. 9). The zoom-in result can be seen in Fig. 10. By pointing the cursor to a certainwell, the menu bar in the right hand side shows some information on the selected well.For the wells that have a different status, we created a note at the bottom as seen in Fig.11. Figure 12 shows the two menu bars, Task menu and Petroleum Tools menu. Taskmenu consists of production history, data entry and a well diagram. Figure 13 shows anexample of the production history of well 1-Meek C with unique API, surface locationand present operator. We can view the data graphically by clicking the view chart buttonin the table. In the graph dialog, we can perform decline analysis with a user-definedrange. We have three options for decline analysis: exponential, harmonic and hyperbolicdeclines. We can also allow the program to select the best-fit option automatically basedon extended Spivey algorithm (1986). The example of decline curve analysis usinghyperbolic option is presented in Fig. 15.

In addition, Petroleum Tools has several engineering applications such as PVT (Figs. 16and 17), directional survey (Figs. 18 and 19), bubble mapping and material balances (Fig.20). We are going to add more features in this menu in the near future.

References1. Schechter et al.: “Preferred Waterflood Management Practices for the Spraberry Trend

Area,” Semi-Annual Report (DOE Contract No.: DE-FC26-01BC15274), March – Sept2002.

2. Spivey, J.P.: “A New Algorithm for Hyperbolic Decline Curve Fitting,” paper SPE 15293presented at the Symposium on Petroleum Industry Application of Microcomputers, June18-20, 1986.

3

Table 1 – Coupling between injectors and producers

GSU #11 WIW GSU #17 WIW GSU #214 WIW119A on trend 124A on trend 113A on trend

142A (PUD) on trend 131A near trend 144A (PUD) near trend205A near trend 16 near trend 215A (PUD) near trend206A near trend 207A near trend 308A on trend212A near trend 311A near trend 324A on trend309A near trend 326A near trend 325A near trend

31 near trend 331A (PUD) on trend316A on trend 5 on trend

323A near trend

GSU #22 WIW GSU #407 WIW GSU #410 WIW132A near trend 117A on trend 26 on trend

14 on trend 13 near trend 318A near trend146A (PUD) on trend 145A (PUD) on trend 412A near trend

317A near trend 21 near trend 413 (PUD) near trend330A (PUD) near trend 216A (PUD) near trend

408A near trend 310A on trend327A on trend

329A (PUD) near trend409A near trend

GSU #11 WIW GSU #17 WIW GSU #214 WIW119A on trend 124A on trend 113A on trend

142A (PUD) on trend 131A near trend 144A (PUD) near trend205A near trend 16 near trend 215A (PUD) near trend206A near trend 207A near trend 308A on trend212A near trend 311A near trend 324A on trend309A near trend 326A near trend 325A near trend

31 near trend 331A (PUD) on trend316A on trend 5 on trend

323A near trend

GSU #22 WIW GSU #407 WIW GSU #410 WIW132A near trend 117A on trend 26 on trend

14 on trend 13 near trend 318A near trend146A (PUD) on trend 145A (PUD) on trend 412A near trend

317A near trend 21 near trend 413 (PUD) near trend330A (PUD) near trend 216A (PUD) near trend

408A near trend 310A on trend327A on trend

329A (PUD) near trend409A near trend

4

Table 2 – List of well locations associated with water injections

Off Trend Wells Near Trend Wells On Trend Wells Water Injectors114A 13 113A 11 WIW115A 131A 117A 17 WIW116A 132A 119A 214 WIW118A 144A (PUD) 124A 22 WIW120A 16 14 407 WIW121A 205A 142A (PUD) 410 WIW122A 206A 145A (PUD)123A 207A 146A (PUD)125A 21 26127A 212A 308A128A 215A (PUD) 310A133A 216A (PUD) 316A134A 309A 324A

14 31 327A141A (PUD) 311A 331A (PUD)

2 317A 5208A 318A

213A (PUD) 323A25 325A28 326A

312A 329A (PUD)313A 330A (PUD)314A 408A

319A (PUD) 409A320A (PUD) 412A

321A 413 (PUD)322A328A

332A (PUD)405A411A

415A (PUD)502A503A602A603A

5

864000 864000

868000 868000

872000 872000

876000 876000

880000 880000

884000 884000

1525000

1525000

1530000

1530000

1535000

1535000

1540000

1540000

1545000

1545000

1550000

1550000

11"Meek, C."

1011

113A

114A

115A

116A

117A

118A

119A

11W12

120A

121A

122A

123A

124A

125A

126A

127A

128A

129A

13

130A

131A

132A

133A

13KS

14

14KS 1516

16KS

1718

1919W

1Erwin

1Heidelberg

1Mashburn

1Meek Unit

1PL

1xxx

2

2

20

205A

206A

207A

208A

209A

21

210A

211A

212A

214W

2222W23

2425

262727W

2829

30

308A

309A

31

310A

311A

312A

313A

316A

317A

318A

323A

325A

326A327A

328A

405A

406A

407A408A

409A410A

411A

412A

5

502A503A

6

602A

603A

6ER

6W

78

9

Abandoned InjectorDry HoleOil ProducerPlugged & AbandonedTemp. Abn'd OilWater InjectorWater Supply

Fig.1 – Location of new water injection wells in Germania Spraberry Unit

6

160

180

200

220

240

260

280

300

2/1/

03

2/6/

03

2/11

/03

2/16

/03

2/21

/03

2/26

/03

3/3/

03

3/8/

03

3/13

/03

3/18

/03

3/23

/03

3/28

/03

4/2/

03

4/7/

03

4/12

/03

4/17

/03

4/22

/03

4/27

/03

Time (Date)

Wat

er In

ject

ion

Rat

e (B

WPD

)

GSU #11WIW GSU #17WIW GSU #22WIWGSU #214WIW GSU #407WIW GSU #410WIW

Start Up @3:30pm on 2/3/03

Fig. 2 – Water injection rate from six injectors

0

5

10

15

20

25

30

35

3/11/97 11/16/97 7/24/98 3/31/99 12/6/99 8/12/00 4/19/01 12/25/01 9/1/02 5/9/03 1/14/04

Time (Date)

Oil

and

Wat

er R

ate

(BPD

)

Oil Rate (BOPD) Water Rate (BWPD)

Water Injection Started2/3/2003

Fig. 3 – Response of GSU well 318A to water injection

7

862500 862500

870000 870000

877500 877500

885000 885000

892500 892500

900000 900000

1524000

1524000

1530000

1530000

1536000

1536000

1542000

1542000

1548000

1548000

1554000

1554000

1

1"Graves, M.L."

1"Meek, C."

1"Morrison, H.P."

1011

113A

114A

115A

116A

117A

118A

119A

11W12

120A

121A

122A

123A

124A

125A

126A

127A128A

129A13

130A

131A

132A

133A134A

13KS

14

14KS 1516

1662 Ltd. Snyder

16KS

1718

1919W

1Arick

1Atchison

1Billington

1Billington A

1Billington B1Billington C

1Billington Unit

1Bristow

1Clements

1Douglas B

1Erwin

1Graves

1Gray Unit

1Heidelberg

1Jones E

1Joyner

1Kaderli Unit

1Kennedy Unit

1Mashburn

1Matthews

1Meek Unit

1Morrison A

1Morrison B1Morrison C

1Nance

1PL

1Ringener

1Sale

1Seminary

1Shanks Unit

1Snyder A1Snyder C

1Snyder-Arnett

1Tom

1xxx

2

2

20

205A

206A207A

208A209A

21

210A211A

212A

214W

2222W23

2425

262727W

2829

3

30

308A

309A

31

310A

311A

312A

313A

314A315A

316A

317A

318A

321A322A

323A324A

325A

326A327A

328A

405A406A

407A408A

409A410A

411A

412A

4ER

5

502A503A

6

602A603A

6ER

6W

78

9

Abandoned InjectorDry HoleOil ProducerPlugged & AbandonedTemp. Abn'd OilWater InjectorWater Supply

Fig. 4 – Database of Germania Unit Area with wells outside the unit

8

0

1000

2000

3000

4000

5000

6000

3/11/97 7/24/98 12/6/99 4/19/01 9/1/02 1/14/04

Time (Date)

Prod

uctio

n R

ate

0

2

4

6

8

10

12

14

NU

mbe

r of W

ells

Oil rate (BOPM)

Gas rate (SCFM)

Water rate (BWPM)

Fig.5 – Production history of on-trend wells

0

5000

10000

15000

20000

25000

3/11/97 7/24/98 12/6/99 4/19/01 9/1/02 1/14/04

Time (Date)

Prod

uctio

n R

ate

0

5

10

15

20

25

30

35

Num

ber o

f Wel

ls

Oil rate (BOPM)

Gas rate (SCFM)

Water rate (BWPM)

Fig.6 – Production history of off-trend wells

9

Fig. 7 – Germania database front page

10

Fig. 8 – Well location and information in Germania Unit

Fig. 9 – Zoom-in and zoom-out features

11

Fig. 10 – Result of zoom-in feature

Fig. 11 – A note feature in the Germania map

12

Fig. 12 – Task and petroleum tools in menu bars

Fig. 13 – Example of production history of well 1-Meek, C

13

Fig. 14 – Graph dialog feature

Fig. 15 – Example of decline curve analysis using hyperbolic option

14

Fig. 16 – PVT application front page

Fig. 17 – PVT chart builder

15

Fig. 18 – Directional survey application

16

Fig. 19 – Well trajectory chart

Fig. 20 – Material balances application