Kamel Eddine CHIKHIAssociations DirectorSONATRACH

Moscow Meeting25-27 September 2006

Study Group Topics Difficult reservoirs and unconventional resources

1. Difficult reservoirs and technologies for their

exploration and production (sour gas, HT/HP, Deep Gas

(>4,500m, basin center), shallow (<500 m) gas, tight

reservoirs)

2. Unconventional resources and technologies for their

exploration and production (coalbed methane, gas

hydrates, aquifer gas).

Unconventional Reservoirs – A permanent Challenge

Difficult reservoirs – Areas of Concern Study Goals

Definitions Definition of difficult reservoirs Sedimentology & Petrology : Depositional environments reconstitution Subsidence & its consequences Diagenesis & diagenetic sequences Natural fracturation : origin & effects on reservoirs qualities Porosity characterization & classification Geomechanics fundamentals Reservoirs Stimulation

Exploration technologies Anisotropy assessment : spacial development geometry and distribution of and

k Natural fractures characterization & modeling Microfacies standardisation Seismic attributes as a tool to characterize and predict reservoirs properties Formation evaluation dedicated techniques Flow units characterisation & Multilayers modelling Resources & reserves assessment - Uncertainties quantification Drilling fluids design & wellbore stability HTHP & complex reservoirs testing techniques

Production technologies Drainage models & Wells spacing optimization Hydraulic fracturation optimization Reservoir performance modelling Completion of poorly consolidated formation Advanced wells construction : Deviated and horizontal drilling applications Production monitoring & control

Expected results Identification of key technology needs for

understanding Difficult Reservoirs

Address areas of technology improvements needed to face technical gaps in exploration & production

Lower cost of difficult reservoirs development in particular for Play Resources assessment, Subsurface Imaging, Drilling, Well Completion, and Stimulation.

Difficult reservoirs

Unconventional Natural Gas Resources Study Goals

Definitions & Standardization attempt Definition of unconventional gas resources Standardization of the different categories :

Deep & basin centered natural gas, Tight natural gas sands, Shale gas, Coalbed methane, Geopressurized zones, Methane hydrates …

Assessment & Outlook Exploration efficiency Assessment of unconventional Gas Reserves & Resources Technically & Economically recoverable UNGR Role of unconventional gas in world supply for mid & long terms

Exploration & Production technologies Data (seismic & wells) integrated expert systems Basin scale petroleum systems Sourcing modeling Fracturation assessment & modeling Plays / Reservoirs characterization & modeling Well-log interpretation/petrophysical models for detection of

marginal pay Dedicated drilling techniques Wells completion & stimulation : hydraulic, acid … Nanotechnology in reservoirs Monitoring Production Prediction & Optimization Lessons learned for UNGR development & Best practices inventory Cases studies

Unconventional Natural Gas ResourcesExpected results

Review of Definition of what is exactly unconventional gas & propose a classification that, if accepted, can be used in different world regions

Update of the Global trends & the role of unconventional Gas Reserves & Resources in world supply

Fine tuning Exploration techniques & democratization of dedicated technologies for assessing UNGR

Deliver a comprehensive overview of production techniques and best practices overview

Meetings 3 meetings / year : February, June, October Identify locations for forthcoming meetings – Proposals

Themes Questionnaire concerning items to be studied Finalize, prior to next meeting, the list of themes

Contribution Build a data base of external experts to be invited to

contribute to the study Finalize list of members of the group Technical Secretary of SG 1.2

Study Group 1.2

Unconventional Reservoirs

Bureau.scf