ROZs in the Permian Basin: Exploi6ng via Horizontals and EOR
L.StephenMelzerMelzerConsul2ng
PresentedattheFt.WorthConferenceCenter
April4,2017
Overwhelmed by the Shales…
There is a Second Horizontal Revolu6on in the PB
ROZs in the Permian Basin: Exploiting via Horizontals and EOR
Outline of Talk
• WhatisaResidualOilZone(ROZ)?And,WhyalltheFuss?• TheScience
§ Origins• TheUnderpinningNo2onsandtheStudies• TheThreeTypesofROZs
§ OilCharacterandOilSatura2onTargets• TheEngineering
§ MobilizingMechanics–CaseHistories• DepressuringViaHorizontalWells(akaDewatering)• EnhancedOilRecovery
• Summary
What is a Residual Oil Zone? • AROZisaNaturallyWaterFloodedPaleoOilZone
• ROZsExistBecauseaStage(s)ofTectonicsOccurredAYerOriginalOilEntrapmentwhereWaterhasMovedinandReplacedtheMobileOil
• Historically,TheyHaveBeenMistakenlyCalledTransi2onZones(Brownfields,i.e.,belowMainPayzones)buttheyalsoExistwithoutOverlyingMainPayzones(“Greenfields”)
• TheGroundbreakingWorkWasDonethisCenturyinthePBwhereCO2EORwasExtendedintotheROZbeneathExis2ngFields(Wasson,Seminole,etc)
• TheOil&RockPropertyDataAcquiredBelowtheOil/WaterContactswasFundamentaltotheEvolvingUnderstanding.ThePropertyDataintheBrownfieldshasnowbeenAppliedtotheGreenfieldswithEqualSuccess
The Science Behind ROZs FundamentalPremise:MotherNatureCanMoveOiland
WaterAroundAYerOriginalOilEntrapment
• DoesSheDoitinaFashiontoPreserveSomeResidualOilSatura2on(Sorw)?
• DoesSheDoWhilePreservingOilProper2esandGasinSolu2on?
• WhyarethereAmpleSorwValuesintheseLongLivedNaturalWaterFloods?
Key Refs: 1. Melzer, L.S., “Stranded Oil in the Residual Zone,” US Department of Energy report, February 2006. 2. Trentham, R.C., Melzer, L.S., and Vance, D., “Commercial Exploitation and the Origin of Residual Oil Zones: Developing a Case History in the Permian Basin of New Mexico and West Texas,” Research Partnership to Secure Energy for America report, June 2012. 3. Trentham, R.C., Melzer, L.S., Vance, D., Kuuskraa, V.A., and Petrusak, R., “Identifying and Developing Technology for Enabling Small Producers to Pursue the Residual Oil Zone (ROZ) Fairways in the Permian Basin San Andres Formation,” RPSEA Final Report, Dec. 21, 2015.
Website Source for Documents: www.ResidualOIlZones.com
Three Types of ROZs
1. PostEntrapmentBasinTilt
2. BreachedorLeakySeals
3. AsymmetricBasinUpliYandLateralSweep
Mapping the San Andres ROZs*
* Latest Mapping Ref: Trentham, R.C., Melzer, L.S., Vance, D., Kuuskraa, V.A., and Petrusak, R., “Identifying and Developing Technology for Enabling Small Producers to Pursue the Residual Oil Zones (ROZ) Fairways in the Permian Basin San Andres Formation,” RPSEA Final Report, Dec. 21, 2015.
Website Source for Documents: www.ResidualOIlZones.com
San Andres
Outcrop Region
Exploitation of ROZs Via Horizontals and CO2 EOR
MostoftheROZUnderstandingsComefromtheEORStudies
San Andres ROZ Oil Saturation and Oil Property Targets - Examples
ROZ Brownfield Example
300’
Seminole Field
MPZ
ROZ Greenfield Example Near Tall Cotton Project
300’
ROZ Oil Properties Seminole Field
1st Engineering: Exploitation Via Horizontal Well Depressuring and CO2 EOR
Western Yoakum County Horizontal Well Activity (as of Early 2016)
Estimated Ultimate Recoverable Oil*
37,980
63,345
105,651
P2
P5
P10
P20
P30
P40
P50
P60
P70
P80
P90
P95
P98
P42.468,427
Swanson's Mean
-2
1,000 10,000 100,000 1,000,000
OIL EUR per 1,000 ft (barrels)
Lognormal regression
Input data samples
P10 / P90 SLOPE = 2.78
* Russell K. Hall & Associates, Apr ‘16
5000’ Lateral = 340,000 bbls
Seminole Field (Hess,
Operator)
7 Miles
2nd Engineering: Exploitation Via Horizontal Well Depressuring and CO2 EOR
Western Gaines County – KM’s Tall Cotton Project – Phase I Production Curve
West Seminole Field (Oxy,
Operator)
KM's Tall Cotton Pure Greenfield ROZ Project Production History
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Nov
-14
Jan-
15
Mar
-15
May
-15
Jul-1
5
Sep
-15
Nov
-15
Jan-
16
Mar
-16
May
-16
Jul-1
6
Sep
-16
Nov
-16
Mo-Yr
Oil
Prod
uctio
n in
bop
d
0
2
4
6
8
10
12
14
16
18
Prod
ucin
g W
ell C
ount
Oil Production in Bbls/Day
Producing Well Count (Rt Scale)
CO2 Injection Begins (11/14)
Phase 1: 9 CO2 Injectors, 16 Producers
Summary
• OilBasinsareDynamicPlaces,OilandWatercanMoveAroundAYerOriginalOilEmplacement–thisResultsinNaturalWaterFloods
• ContrarytoCommonBelief,theOilintheNaturallyWaterFloodedZonesCanbe‘Fresh’
• IftheOilhasSufficientSolu2onGas,itcanBeExploitedbyHorizontalWells(Depressuring,akaDewatering)
• IftheOilisnotBadlyDegraded,itCanbeExploitedbyEnhancedOilRecoveryTechniques
The Permian Basin is Actively
Exploiting by Both
Techniques
Thank you
Time for Ques6ons?
Backup Slides
P2
P5
P10
P20
P30
P40
P50
P60
P70
P80
P90
P95
P98
-2
0 10 20 30 40
OIL CUT (PERCENT)
Input data samples
LMS FIT (Normal Distribution)
P90 – 9.5%
P10 – 27%
P50 – 18.3%
HZ San Andres Performance
Typical 1-Mile Lateral Hor Well Performance