ntm-dly gas resm%oir detection ,optimization

,.

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.

Ntm-dly htctured~ight ~fi$

Gas Resm%oir Detection ,Optimization

Prepared for:

U.S. Department of EnergyFederal Energy ~eclmology Center

Contract No, DE-AC21-93MC30086

Quarterly i%atys Report_.. .__.———————

Period of Performance: January 1,1999- March 31,1999

Date of Submission: April 30, 1999

Prepared by:

Advanced Resources International, Inc.

....

1110 N. Glebe Road, Suite 600Arlington, VA 2220

.*

.-

DISCLAIMER

This report was prepared as an account of work sponsoredby an agency of the United States Government. Neitherthe United States Government nor any agency thereof, norany of their employees, make any warranty, express orimplied, or assumes any legal liability or responsibility forthe accuracy, completeness, or usefulness of anyinformation, apparatus, product, or process disclosed, orrepresents that its use would not infringe privately ownedrights. Reference herein to any specific commercialproduct, process, or service by trade name, trademark,manufacturer, or otherwise does not necessarily constituteor imply its endorsement, recommendation, or favoring bythe United States Government or any agency thereof. Theviews and opinions of authors expressed herein do notnecessarily state or reflect those of the United StatesGovernment or any agency thereof.

DISCLAIMER

Portions of this document may be illegiblein electronic image products. Images areproduced from the best available originaldocument.

Quarterly Status Report

CONTRACT NO.: CONTRACTOR

DE-AC21-93MC3 0086 Advanced Resources International, Inc.1110 N. Glebe Road, Suite 600Arlington, VA 22201

CONTRACT NAME: CONTRACT PERIOD:

Naturally Fractured 9/30/93 - 4/30/99Tight Gas ReservoirDetection Optimization

CONTRACT OBJECTIVE: No change.

TECHNICAL APPROACH CHANGES: No change.

FIELD PERFORMANCE TEST PLAN:

Introduction

In March, work continued on characterizing probabilities for determining natural fracturingassociated with the GGRB for the Upper Cretaceus tight gas plays. Structural complexity, basedon potential field data and remote sensing da% was completed. A resource estimate for the Frontierand Mesa Verde play w=” also completed. Further, work was also conducted to determine thresholdeconomics for the play based on limited current production in the plays in the Warnsutter Ridgearea. These analyses culminated in a presentation at FETC on 24 March 1999 where quantifiednatural fracture domains, mapped on a partition basis, which establish “sweet spot” probability fornatural fracturing, were reviewed. That presentation is reproduced here as Appendix 1.

The work pkm for the quarter of January 1, 1999- March31, 1999 comprised five tasks:

1. Evaluation of the Gt3113 partitions for structural complexity that can be associatedwith natural fractures,

2. Continued resource analysis of the balance of the partitions to determine areas withhigher relative gas richness,

3. Gas field studies,

IAD2234.wpd -1-

[q~~~f~~,~

JAN0 Cz~~f4. 9$$?7Threshold resource economics to determine which partitions would b th & s

prospective.5. Examination of the area around the Table Rock 4H well

The following sections describe the tasks performed during this quarter as part of the GGRBanalysis effort.

TaskL Evaluationof the GGRB Pati”tionsfor StructuralComplm”ty That Can BeAssociatedwithNaturalFractures

As an integral part of identifying potential “sweet spots” of enhanced natural fracturingwithin the Greater Green River basin, Advanced Resources derived an index of structuralcomplexity associated with natural fracture intensity, created based on the analysis of LandsatThematic Mapper (TM) multispectral satellite imagery and potential field dat~ as follows:

This task was accomplished by applying a strict set of photogeologic criteria to mapgeomorphic features that indicate structural control of topography. Anomalous geomorphicfeatures, such as straight linear valleys, ridges, or streambeds, indicate the presence of underlyingfractures - fauks or joints -in the bedrock, that affect erosion and landform morphology. Straighttopographic features were interactively mapped on the satellite imagery using widely acceptedtec~lques for photogeologic analysis. We separated linear features into three categories: straightescarpments, straight valley, and straight stream channels. Features were computer-mappedonscreen at a working scale of approximately 1;100,000 (at larger scales, individual TM imagepixels become obvious, and no additional geologic detail is apparent). To minimize confusion withcultural influences - roads, fencelines, plowing patterns, etc. - no features shorter than about onekilometer were mapped. Two separate rounds of quality control review were conducted to refinethis primary dataset.

lB.

The struct&d importance of sin-face linear features is assessed by comparing them with ananalysis of the underlying basement configuration. For thk study, Advanced Resources usedregional aeromagnetic and isostatic residual gravity data from the U. S. Geological Survey, DigitalData Series 9. These data show variations in magnetic susceptibility and density of the crust.Low-frequency variations reveal changes in depth-to-basement or in basement composition. Abruptchanges create steep gradients in the potential field data that suggest the presence of a physicalbo~dary in the basement, such as a major fault or shear zone that has juxtaposed different crustalblocks or caused a vertical offset in basement topography. The spatial coincidence of abruptpotential field gradients with surface linear features indicates the presence of an important structuralfeature that has affected the physical properties of the basement and the present-day land surface,

L4D2234.wpd -2-

and presumably the intervening strat~ includlng the reservoir rocks. To integrate the surface and

basement analyses, we mapped the aeromagnetic and gravity databy assigning an 8-bit “rainbow”of colors to the range of data values found within the study area. Low magnetic intensity ornegative gravity anomaly appears purple; high magnetic intensity or positive gravity anomalyappears red. The color-coded potential field data were then digitally merged with the satellite

imagery for easier refwence. Regionally extensive, abrupt gradients in the basement properties areshown by sharp changes in color. These gradients were delineated onscreen to show significantaeromagnetic and gravity alignments.

3C. . .al Coqk@@mhg

Structural complexity was then determined by township. To determine the index ofstructural complexity (ISC), the presence or absence of abrupt potential field gradients within agiven township was determined and weighted by a value of two-thirds. Surface linear features weresummed for each township and weighted by a value of one-third. The township values were binnedby ISC ranking with the highest 10% categorized as “best”, the next 20% categorized as “good”, thenext 30°/0 categorized as moderate and the 40°/0 balance categorized as “poor”.

Task2. ContinuedResourceAnalysisof theBalanceof thePartitionsto Determ”neAreaswithHigherRelati”veGasRichness

Using the partitions previously defined (see Appendix I), analysis for this task during thisquarter culminated in a determination of the relative resource richness in the G(3RB UpperCretaceus tight gas play in overpressured areas. The purpose of the effort was to highlight thoseareas that would be most prospective for exploration. Work included fi,u-ther determination of theoverpressured portions of the basin. Over 300 wells were analyzed as part of the investigation todefine net pay, porosity, and other parameters necessary to the resource calculation.

Results show substantial resource present in the GGRB, approximately 850 Tcf Gil? for theMesa Verde play andl 50 Tcf for the Frontier play. Results show that the Mesa Verde has anaverage drill depth of 10,300 fi porosity of 9.5 ‘XO,and net sand thickness of 275 ft in the play. TheFrontier has an average drill depth of 14,700 ft, porosity of 8.5 ‘%0,and net sand thickness of 32 ftin the play.

Task3. GasFieldStudies

Further field studies were conducted to examine the reservoir settings for gas accumulation in the

Upper Cretaceus section in the GGRB. During the quarter, we examined the Table Rock Jonah,Siberia Ridge and Yampa-Lay fields.

IAD2234.wpd -3-

Task4. ThresholdResourceEconom”cstoDeterm”neWhichPti”tions WouldBe theMostProspective

On the basis of the partitions, natural fracture ranking was reltated to resource richness for

the GGRB. Resource recovery economics were run for the Mesa Verde and Frontier plays based oncurrent technology (Case 1), advanced technology (use of advanced completions and horizontalwells, Case 2), and advanced technology with natural fracture ranking (Case 3). Among the mostprospective partitions are the Pinedale, Farson Deep Sand Wash Deep and Wamsutter Archpartitions for the Mesa Verde play. For the Frontier play, prospective partitions include the FarsonDeep, Sand Wash Deep, Pinedale and Green River Deep partitions.

Task5. Exanu”nationof the GeologyandFaultSystemsNearthe TableRock 4H Well

A full 3D seismic data set that covers approximately 36 sections was extracted from theTable Rock and Continental Divide 3D surveys. It was decided to apply a coherency filter to furtherenhance the data. The coherency processing brings out in finer detail the fault-relateddiscontinuities in the seismic data allowing for better analysis and fault mapping.

Using the filly processed 3D dam the thrust and strike-slip fault system north of Table Rockwas shown in great detail. Furthermore, two small splay faults were identified in the data that occurin the region of the horizontal drilling location.

Using the more complicated fault system geometry, a geomechanical model was petiormed.This new model showed regions of possible tensile failure associated with the smaller faults. It ispossible that the Table Rock 4H horizontal well may have crossed into one of these tensile failurezones. The success’ of the horizontal well in encountering clusters of natural fractures near smallfaults is in agreement with the fault mapping and geomechanical model.

IAD2234.wpd -4-

L4D2234.wpd

Appendix 1

-5-

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outline

o Greater Green River Basin Regional Partitioningand Fligh-Grading

— Resource-in-Place

Structural Characterization

Resource Recovery Economics

~ Prospect Delineation

– Table Rock Horizontal Drilling Project

o Conclusions & Discussion

2 JAFOA606.ppt Advanced Resources International, Inc. A<

Project Evolution forNaturally”

Fractured Deep Gas Exploration

Regional Hiqh-Grading

Geologic Databaset

Regional Structuret-

$urface Structure fromField and Imagery I

Basement Mappingfrom Potential Field Data I

3 JAFOA606.@

Prospect Delineation

Prosnect TestLocal ReservoirCharacteristics t

-1Subsurface Mapping _using Seismic Data

i

Fault Mapping andStress Modeling

I Exploration Drilling IProgram J

~ Coring& LoggingProgram

-iWell Testing

--iReserve Estimates

i

Prediction of “Fracture Occurrence

Advanced Resources lntemat~onal, km.A

Project Evolution forNaturally-


Regional Hiqh-GradingProspect Delineation

I Geologic Databaset-

Subsurface Mapping Lusing Well Data

Reservoir Characterand Extents t

I Regional Structurer

ISurface Structure from I

I Field and Imagery

Basement Mappingfrom Potential Field Data }

-b$EzE_t

4 Subsurface Mapping _using Seismic Data

i

Fault Mapping andStress Modeling

Prospect Test

Exploration DrillingProgram

~

Well Testing

-1 Reserve Estimates

Advanced Resources International, inc.AJAFOA606.ppt

I

Essential Data and ToolsI

~ Geologic Database– Existing well information (completion, production)

- Existing borehole data (logs and core)

– Outcrop studies of natural fractures

I o Potential Field and Image Data– Basement mapping from potential field surveys (both

standard and high-resolution aeromagnetics plus gravitydata)

– Regional and local structures from satellite imageryanalysis

~ Seismic Surveysregional 2-D regional data

5 JAFOA606.p@ Advanced Resources International, Inc.‘A

Greater Green River Basin

\ , I 1I

The overpressured Y

Group and the deepFrontier Formation gasplay in the Greater GreenRiver basin of SWWyoming serves as thecase study.

,

6 JAFOA606.@ Advanced Resources International, Inc.A

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Resource Assessment (Cent’d)Methodology

e Gas-in-Place was assessed, by partition, for eachof the requisite parameters

Area

Net pay thickness

Porosity

Gas saturation

Temperature

Gas compressibility

Primary database was derived from weli control, selecting thedeepest, complete well in a township to represent the many ofthe parameters for that township.

9 JAFOA606.ppt Advanced Resources International, Inc.A

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Davis

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/

Mountain Fuel C&K Petroleum

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See, 23, T26N, R97W Sec. 29, T23N, R94W Sec. 15, T20N, R9~W Sec. 32, T17N, R96WSec. O,TI 2N, R97W Sec. 19, T9N, R96W

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12 JAFOA606.@Advanced Resources International, Inc.A

Upper Cretaceus Tight Gas Play

Determination of thetop of the

overpressure of tightgas play wasaccomplished byexamination ofmudweights, tlSTs,pressure of gasvitrinite reflectance,and seismicvelocities.

Amoco

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Sec. 36, T15N, R95W B’Sec. 6, T15N, R98W

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Advanced Resources International, Inc.A13 JAFOA606,p@

Mesaverde Drill Depth

Average propertiesfor the MV:

Drill depth 10,300

porosity = 9.5%

net sand = 275 ft.

15 JAFOA606.pptAdvanced Resources International, Inc.A

Mesaverde Production

Study is limited toMesaverdesection below theUpper Almond inoverpressu redareas,

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Overpressuring ofthe MesaverdeGroup is not

present throughoutthe basin.

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Greater Green River E3asinRegionalPatiitioning and High-Grading

Structural Characterization

Regional Structural High-Grading

o Basin-wide analysis for structural high-grading

~ Structural high-grading for the G(3RB wasaccomplished by utilizing:

aeromagnetic and gravity data for basement mapping,and

outcrop and/or image analysis for surfacemanifestations of structure.

● Risk mitigation using probability assessment ofstructural complexity

2 JAFOC606.ppt Advanced Resources International, Inc.A

Structural Control of Natural Fractures

● Natural fractures are typically classified as“regkmal”and“tectonic”(local).

-

Regional fracture systems are comprised of a dominantset with consistent spacing paraUel to maximumhorizontal stress.

Local fracture systems are typically formed assecondary features to larger structures such as faultingand folding.

● Local natural fracture sets are responsible for thehighly IPreductive “sweet spots.”

3 JAFOC606.p@ Advanced Resources International, Inc.A

Natural Fracture Settings

Reqional Natural Fractures(vertical well)

Good Production (horizontal well),

r//

Natural Fracture Cluster Natural Fracture Cluster Maior FaultFault-Related

High Production

Fd ‘-< .

Fiexure-Related Pressure Barrier

High Production ~J~ater

* ,% *.

4 JAFOC606,pptAdvanced Resources International, Inc.A

Types ofNatural Fracttires Obsemed In Cores

The type of natural fracture observed in core isimportant information that will help determine the methodof quantitative stress modeling.

extension fracture

5 JAFOC606.ppt

shear fracture withextensional component(mixed mode)

01

Q

shear fracture


Structural High~Grading

- Delineate regions of significant structural “complexity.”

~ Rationale

Since local natural fracture development is directlyrelated to local structural features, mapping regionswith significant occurrences of basement and surfacestructures identify areas prone to local naturalfracturing.

Q Results

– Regions graded by density and correlation of significantstructures.

6 JAFOC606,@ Advanced Resources International, Inc.A

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Regional Surface Features:Image Analysis

A seven sceneLandsat-TMsatellite imagemosaic wasconstructed andprovides the basisof the surfacelinear featuresanalysis.

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6 High-grading procedure depends on spatialdistribution and spatial correspondence:– Surface linear features are summed by township.

- Density of surface linear features is spatially comparedto basement anomalies.

c Township Rankings(Best) 1. Basement anomalies and dense surface linear features

(Good) 2. Basement anomalies and nominal surface linear features

(Moderate) 3. Basement anomalies or dense surface

(Poor) 4. No basement anomalies and sparse tolinear features

linear features

nominal surface

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● As the final step in the structural high-grading,the distribution of structural ranks in eachpartition is ~alculated.

Q Distribution is analogous to EUR distributionsince well productivity is related to local fracturesystems.– This distribution is necessary for developing

appropriate wellespecially those

15 JAFOC606,ppt

distribution for each partition,partitions with limited well information.


.“

Natural Fracture Rank and DistributionI

ofSelected Partitions I

Ranking

Partition Best Good Moderate Poor

Township Count

Pinedale

Green River DeepSand Wash DeepHobackFarson DeepCherokee ArchWamsutter ArchRed DesertVermilion

444421100

532112173

72013

322662

1236

72017137

5112

16 JAFOC606.ppt Advanced Resources International, Inc.A

Greater Green River Basin RegionalPatiitioning and li-ligh=Grading

Resource Recovery Economics

integration ofNatural FractureProspectivity with Resource Assessment

* On a partition basis, the natural fracture rankingwas related to resource

Q Simple resource recovery economics were runfor the Mesaverde and Frontier plays:

f 8 JAFOC606.Ppt

(Case 1) current technology

(Case 2) advanced technology (use of advancedcompletions and horizontal wells)

(Case 3) advanced technology plus natural fractureprospecting


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Integration Methodology

ParameterTechnology Advanced WI

Case Current Advanced Natural Fracturing

●

●

●

●

●

●

●

●

●

Structural Compexity All Ranks All Ranks Best, Good

EUR,Bcflwell varied by partition dependent on resource magnitude

O&M $.40 $.30 $.30

well cost, x$1000 MV 650 f300 1300

well cost, x$1000 Ftr 800 1600 1600

NRI 85% 85% 85%

spacing, acres 160 320 320

dry hole rate, MV 30% 22.5% 17.5%

dry hole rate, Ftr 50% 37.5% 25%

Data were modeled to define a re[ative cost for production in $/mcf

20 JAFOC606.ppt Advanced Resources International, he.A

Calibration of Structural ComplexityRankina to Production

Wamsutter area

is the only area

with significant

MV production.

ElJR/well was

developed based

on 5x highest full

year of

production.,

21 JAFOcX06.ppt

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Estimated Gas Recovery: 30 Years(Blue Rim 31-7 Reservoir Assessment)

Vertical WellV&tical VWellf Horizontal Laterals

Permeability (Small Frac)(Bcf)

(Bcf)(~ d)

1,000 ft.2 2,000ft”310 1.9 4.1

5.6

25 2.8 8.3

20

7 Uses 760 acre spacing per well2 Uses 320 acre spacing per well3 Uses 640 acre spacing per yell

25 JAFOBOQ@ Advanced Resources International, Inc.A

1,000

750

500

250

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Federal 31-1

Megas Field, Frontier Completion

o

26 JAFOC606.ppt

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Production Time, days

Advanced Resources International, inc.A

FRONTIER 31-1(YelXe=l)

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Xf --38 feet

Xe/Xf -20.0 .

100 - . . . . . .

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33 JAFOC606.ppt

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Frontier Patiitions with Potential

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34 JAFOC606,ppt

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Table Rock Horizontal Drilling Project

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Prospect Identification*

● Next stage in exploration process is to delineateprospects within high-graded regions.

o The prospect delineation process for naturaHy -fractured reservoirs involves

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2 JAFOB606,ppt

Characterizing the local natural fractures present intarget reservoir

Mapping local structural features such as faults

Predicting the location, intensity and orientation of thefractures.

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Project Evolution forNaturallym


Regional Hiqh-Gradinq

I Geologic Databaset

Subsurface Mappingusing Well Data t

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Reservoir Characterand Extents }

Regional Structure andStress Regime

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Surface Structure fromField and Imagery I

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Well Testing

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The steps necessary for a prospect delineation at Table Rock:

A. Characterizing Natural Fractures in the Frontier Fm.

- Examine Govt. Union #4 and Frewen Deep cores.

B. Fault Mapping using 3-D Seismic DataI

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Post-stack depth-conversion of 3D data.

Map and develop structure and isopach maps.

Coherency processing for fault identification.

Map fault geometry for input to stress model.

C. Predicting Fault-Related Natural Fractures

- Assemble fault geometry and displacements.

- Determine area(s) of enhanced natural fracturing basedon geomechanical model.

5 JAFOB606.pPt Advanced Resources lnternaf;onal, Inc.

IIUaturallFractures Observedh Frontier Fm. Core

Types of natural fractures identified in the Govt.Union #4 core include:

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Shear fractures with an extensionalcomponent exhibiting oblique-reverse slip

Large voids located between overlappingshear fractures

Bitumen-filled splay fractures

Minor calcite- and quartz-filled extensionalfractures

Advanced Resources International, inc.

Govt. union#4 core

7 JAFOE160fj,ppt Advanced Resources International, Inc. A

Natural Fractures Obsewed In cores

Shear(ed) fractures are identified in core by:

Rhomb voids or mineral depositsdeveloped between step-overs

Anastomosed or Offset

braided fractures\

8 JAFOB606.ppt

Splay fracturesw

Extensional fracturesbetween shear fractures

Strike-slip component ofshear indicated by rhombsin core break


INatural Fracture Characterization

● The natural fractures present are fault-relatedshowing dominantly oblique-reverse shear withan extensional component

I ● Open isolated voids in core result from step-overs in the shear fractures.

● The voids are connected by single fractures that.* are typically filled with mineral deposits.

o Open voids represent storage for gas whereasIthe connecting shear fractures provide thedeliverability (i.e., the controlling factor inpermeability).

9 JAFOB606.ppt AAdvanced Resources International, Inc. /

Fault Mapping Wing 3.D Seismic Data

● Two-stage interpretation of the 3D seismic data

- “Regional” mapping of fault system using 2D slicesfrom the 3D cube

- Local fault mapping of 21 sections around Table Rock4H horizontal drilling project.

I o JAFOB606,ppt Advanced Resources International, Inc.

Regional Fault MappingIJsing 3-D Seismic Data

Selected seismic lines in the Table Rock andContinental Divide Phase II 3-D seismic surveys at1/2 mile spacing were post-stack depth convertedand mapped to:

1)

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If JAFOB606.ppt

Examine a 5 township area around thehorizontal drilling location for structure andhistory of deformation associated with faultsystems and,

Provide a regional fault geometry in spatialcoordinates for use in stress model.


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The northwardextension of thethrust systemterminates belowthe Frontier Fm.

The strike-slipfault acts as anoblique tear faultaccommodatingstrain on thethrust.

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3-I) Stress Model: Input Criteria

o Inputs into model include fault geometry, orientationof remote stresses deduced from displacementgeometry, and material properties.

● Remote stress orientations were calculated based ondisplacement amounts of the fault system. Thegreatest compression stress is N30W, nearlyperpendicular to the thrust fault, and given a relativevalue of twice the other applied stresses.

o Frictional component,value for sandstones.

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3=D Seismic: IRegionallFault MappingConclusions

● Analysis of seismic and structural data suggest atwo-stage deformation.

—

21 JAFOB606.ppt

The strike-slip fault moved once the level of thrust”related strain needed accommodating.

The accommodation occurred on a pre-existingbasement shear zone, causing the strike-slip tear to beslightly oblique to the thrust fault.

A mechanically-connected geometry of the thrust andstrike-slip faults should be used in the stress model andthe northern continuation of the thrust ignored.


3-D Seismic: Local Fault Mapping

s A full 3D data set was extracted around thehorizontal drilling location to map the local faultgeometry.

- Depth-converted to map faults in space rather than time.

– Use coherency processing to optimize fault identification.

● Local geometry of fault systems permit theprediction of local natural fracture development.

22 JAFOB606,ppt Advanced Resources International, Inc.

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3D Seismic: Depth slice 16,000’

0 Frontier horizon shown in yellow.

23 JAFOB606.ppt

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3D seismic:Depth slice 16,500’

0 A depth=slice further below the Frontier Fm.shows consistency of structure.

27 JAFOB606.ppt Advanced Resources In@-n#ona],Inc.A

3D Seismic: Coherency Slice 16,500’

● Again, the faults are detected by the coherencyprocessing.

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Detailed 3-D Stress Model: Results

The results of thegeomechanicalmodeling of thedetailed faultgeometry indicate atensile regionnortheast of the TableRock 4H horizontalwell.

This result wasconfirmed when thewell encounterednumerous fracturesin the horizontal leg.

31 JAFOB606.ppt Advanced Resources /nternationa/, k. A

I

Summary of Prospect Delineation at Table Rock

● Depth-converted 3-D seismic data shows aconnected thrust and strike-slip fault system inthe region of Table Rock Field.

● Regional analysis of fault-related stressconcentrations, using a quantitative numericalmodel, predicts that natural fractures exist in aprospective area of 8 milez for the Frontier Fm. at13,500’ to 15,500’.

32 JAFOB606.ppt Advanced Resources International, Inc.

II>

Summary of Prospect Delineation at Table Rock

o Detailed analysis of 3D data, aided by coherencyprocessing, reveals a complex fault geometry:- small northwest-trending faults in the vicinity of Table Rock

horizontal well.

o Geomechanical tnodelling this more complex systemindicates a more diverse and expanded potential fornaturally fractured “sweet Spots’y

33 JAFt)B606,ppt

It is predicted that the Table Rock horizontal well hasencountered an area of increased probability for tensilefractures.

Other prospects are indicated such as Section 36 of T20N,R97W


Conclusion

I

Conclusions for Prospecting

e Natural fractures are controlled by local structuralcomplexity such as faults.

● Structural complexity of the play necessitates a two”stage methodology as outlined by AdvancedResources that must include a prospect delineationphase before drilling.

● Prospect delineation stage requires detailed naturalfracture characterization, fault mapping using 3Dseismic, and geomechanical modelling.

o Complexity of the play is retained at the well-borescale- A single vertical drilling does not necessarily test the play

35 JAFOB606.ppt Advanced Resources International, Inc.

Conclusions (cent’d)

● Prospect Delineation Is Driven by CriticalTechnologies . . ..- Seismic attributes

– Structural imaging

- Geomechanical modeling

- Which must be integrated to define drillable prospects

I

,

36 JAFOB61)6.ppt Advanced Resources international, Inc.

Lessons Learned

A “tank” concept is too simplistic for determiningsuccess in tight gas plays--resource variation should *be defined.

Fracture-related permeability is localized as “sweetspots!’ and controlled by structure complexity suchas faults. Such structural complexity can betractably, statistically delineated within a ba~in.

Needs remain, however defining the true local natureof fracturing--heterogeneity which can result inhighly variable EUR values within a developed gasfield -- is a critical step.

Success be use of 3D seismic and geomechanicalmodeling is confirmed by Table Rock.

37 JAFOB606,ppt Advanced Resources International, Inc.

ntm-dly gas resm%oir detection ,optimization

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