Horizontal Drilling in KansasCurrent Status and Case Histories

Presentation to theSociety of Petroleum Engineers

Wichita Chapter

January 12, 2000

by

Paul GerlachResearch Scientist

Petroleum Research SectionKansas Geological Survey

Horizontal Drilling in KansasCurrent Status and Case Histories

Horizontal Drilling in KansasBackground

History of Horizontal Drilling1891 - First Patent Issued 1929 - First Horizontal Oil Well Drilled 1950’s - Development of Hydraulic Fracturing suppressed

need for Horizontal Wells 1970’s – used long radius technology to develop fields

w/o navigational technology 1980’s – Advances in Directional Technology to Steer

Offshore Wells 1985 – First Austin Chalk Well 1990 – approx. 1,500 Horizontal Wells Worldwide 2000 – Est. 20,000 Horizontal Wells Worldwide

Horizontal Drilling in KansasBackground

What is a Horizontal Well ? No API Definition Any well put in a reservoir to expose as much permeability and porosity as possible A Controlled Directional Completion Procedure

Why Drill Horizontal Wells ? Produce Reserves not Drained by Vertical Wells Produce Reserves not Economic in Vertical Wells A More Efficient Use of Reservoir Drive Energy Provide better Rate of Return than Vertical Well

Horizontal Drilling in KansasCurrent Status

Current Status of Non-Vertical Wells (November, 1999)

68 Approved “Intent to Drill” Applications

34 Horizontal Wells Confirmed 1 Horizontal Well Reported (not confirmed)

3 Deviated Wells Confirmed• many more but unreported

2 Slant (high angle) Wells Confirmed

Horizontal Drilling in KansasDefinitions & Terms

Classification of Horizontal Wells

Horizontal Well Radius CategoriesTraditionally

Long - Medium - Short - UltrashortNo API Standard

CurrentlyClassified by Bend Rate of Curve

2o-8o / 100 Ft. – Long Radius8o-35o / 100 Ft. – Medium Radius1/2o-2o / Ft. – Short Radius

Determines:Lateral LengthSteering MethodCompletion TechniqueTreatment Methods

Horizontal Drilling in KansasDefinitions & Terms

MWD - “Measurement While Drilling”Azimuth, Inclination, Measured Depth

LWD - “Logging While Drilling”most standard vertical hole e-logs

PIF - “Productivity Improvement Factor”multiplier of production increase over offset vertical wells

Common Terms used to Describe Horizontal Wells

Horizontal Drilling in KansasDefinitions & Terms

Horizontal Drilling in KansasOpening Remarks

Caveat ContemplorDetermining Success of a Horizontal Well

Requires:Assessing if Basic Criteria was Accomplished Where it is drilled….

geology - structure & stratigraphy Why it is drilled….

reservoir & drive mechanism What it is drilled for….

reservoir management How it is drilled….

well design, drilling, & completion

Operator Reporting Prevents Accurate Assessment

Inaccurate Incomplete Non-existent

Horizontal Drilling in KansasCurrent Status

General Characteristics of the 34 Horizontal Wells 1st Horizontal Well in Kansas

Mar-1988, Phillips Petroleum, Trego Co.196 ft. Lateral in Marmaton Frmn.

Build Rate & Radius RangesShortest: 2.7o/ft. / 33 ft.Longest: 1.4o/100 ft. / 1087 ft.

Measured Depth / True Vertical DepthShallowest: 250 ft. / 200 ft.Deepest: 7969 ft. / 6190 ft.

Horizontal Lateral LengthShortest: 40 ft.Longest: 1877 ft.

Most Frequently Drilled FormationMississippian - Osage (7), St Louis (4), Spergen-Warsaw (3)

Horizontal Drilling in KansasSpatial Distribution and Formation

Marm Miss ArbkMcClthBevierPeruChse Gas Stg

Horizontal Drilling in KansasCurrent Status (December 2000)

024681012141618

Completions/Permitts

Year

Horizontal Drilling in KansasCurrent Status

Horizontal Wells by Formation

0

1

2

3

4

5

6

7

Gas Stg

Gas Stg

Mississippian, et al

Azimuth of LateralHeel to Toe Direction

0

1

2

3

4

5

6

7

0 15

30

45

60

75

90

105

120

135

150

165

180

195

210

225

240

255

270

285

300

315

330

345

360

Degrees from North

East South West NorthNorth

Horizontal Drilling in KansasCurrent Status

Horizontal Drilling in KansasCurrent Status

Lateral Length

0

1

2

3

4

5

6

7

0 200 400 600 800 1000 1200 1400 1600 1800 2000

Length (ft)

Horizontal Drilling in KansasCurrent Status

TVD vs Lateral Length

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

- 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

Lateral Length (ft)

Chase Group

Mississippian

Arbuckle

Viola

McClouth

Horizontal Drilling in KansasCase Histories

Marm Miss ArbkMcClthBevierPeruChse Gas Stg

Lost Springs

Riffe

Porter

Hugoton Wieland W Oppy S

Aldrich NE

Shuck

McClouth Field

Muhlheim

Coffeyville

Stillwell

Cunningham Gas Strg

Horizontal Drilling in KansasCase Histories - Winfield Formation

Toe Up

Permian Chase FormationHorizontal - Vertical Productivity Comparison

273,612

306,915

1,000

10,000

100,000

1,000,000

Jan-94 Jul-94 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Aug-98

Tate-Unrein 4 Mnthly. Rate

Avg. Offsetting Well Mnthly. Rate

Tate-Unrein 4 Cumulative

Avg. Offsetting Well Cumulative

Horizontal Drilling in KansasCase Histories - Winfield Formation

PIF: .89

Horizontal Drilling in KansasCase Histories - Osage Formation

Toe Up

Horizontal Drilling in KansasCase Histories - Osage Formation

Mississippian Osage FormationHorizontal - Vertical Productivity Comparison

9,738

30,802

100

1,000

10,000

100,000

Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99

Avg. Offsetting Well Mnthly. Rate

Avg. Offsetting Well Cumulative

Antrim-Cossman 1HZ Mnthly. Rate

Antrim-Cossman 1HZ Cumulative

Horizontal Drilling in KansasCase Histories - Osage Formation

PIF: 3.1

Horizontal Drilling in KansasCase Histories - Osage Formation

Mississippian Osage FormationHorizontal - Vertical Productivity Comparison

52,064

9,738

100

1,000

10,000

100,000

Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99

Billings 1 HZ Mnthly. Rate

Billings 1 HZ Cumulative

Avg. Offsetting Well Mnthly. Rate

Avg. Offsetting Well Cumulative

Horizontal Drilling in KansasCase Histories - Osage Formation

PIF: 5.3

Horizontal Drilling in KansasCase Histories - Spergen-Warsaw Formation

Mississippian Spergen-Warsaw FormationHorizontal - Vertical Productivity Comparison

17,053

7,850

100

1,000

10,000

100,000

Jun-97 Dec-97 Jun-98 Dec-98 Jun-99 Dec-99

Shearer B 1-26H Mnthly. Rate

Shearer B 1-26H Cumulative

Avg. Offsetting Well Mnthly. Rate

Avg. Offsetting Well Cumulative

Horizontal Drilling in KansasCase Histories - Spergen-Warsaw Formation

PIF: 2.2

Horizontal Drilling in KansasCase Histories - St. Louis Formation

Horizontal Drilling in KansasCase Histories - St. Louis Formation

Mississippian St Louis FormationHorizontal - Vertical Productivity Comparison

50,586

8,87113,407

100

1,000

10,000

100,000

Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99

McHargue Lease Mnthly. RateMcHargue Lease CumulativeAvg. Offsetting Well Mnthly. RateAvg. Offsetting Well Cumulative

Drill Horizontal Lateral in St. Louis Formation

Horizontal Drilling in KansasCase Histories - St. Louis Formation

PIF: 3.1

Horizontal Drilling in KansasCase Histories - McClouth Formation

Toe Up

Atokan McClouth FormationHorizontal - Vertical Productivity Comparison

31,240

5,655

100

1,000

10,000

100,000

Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99

Seaver 9-H Mnthly Rate

Seaver 9-H Cumulative

Avg. Offsetting Well Mnthly. Rate

Avg. Offsetting Well Cumulative

Horizontal Drilling in KansasCase Histories - McClouth Formation

PIF: 5.5

Horizontal Drilling in KansasCase Histories - Bevier Coal Formation

Cherokee Bevier FormationHorizontal - Vertical Productivity Comparison

127,790

30,031

100

1,000

10,000

100,000

1,000,000

Jan-98 Jul-98 Jan-99 Jul-99

SW 14-15S-24E Lease Mnthly. Rate

SW 14-15S-24E Lease Cumulative

Avg. Offsetting Well Mnthly. Rate

Avg. Offsetting Well Cumulative

Drill Horizontal Laterals

Horizontal Drilling in KansasCase Histories - Bevier Coal Formation

PIF: 3.4

Horizontal Drilling in KansasCase Histories - Peru Formation

Marmaton Peru FormationHorizontal - Vertical Comparison

224

385

1

10

100

1,000

Jan-92 Jul-92 Jan-93 Jul-93

Benning 1H Mnthly. Rate

Benning 1H Cumulative

Avg. Offsetting Well Mnthly. Rate

Avg. Offsetting Well Cumulative

Horizontal Drilling in KansasCase Histories - Peru Formation

PIF: .58

Horizontal Drilling in KansasCase Histories - Arbuckle Formation

Horizontal Drilling in KansasCase Histories - Arbuckle Formation

Horizontal Drilling in KansasCase Histories - Marmaton Group

Horizontal Drilling in KansasCase Histories - Viola Formation

Toe Up

Horizontal Drilling in KansasConclusions

Currently a Mixed Bag of Successes and Failures

Best Performing ReservoirsAtokan Group - McClouth Best PIF: 5.5Mississippian - Osage Best PIF: 5.3 to 3.1Mississippian - St. Louis Best PIF: 3.1Cherokee Group - Bevier Coal Best PIF: 3.4Mississippian - Spergen-Warsaw Best PIF: 2.2

Poorest Performing ReservoirsMarmaton Group - Peru Best PIF: .58Chase Group Best PIF: .89

Most Horizontal Candidates not Properly ScreenedAll Reservoir’s w/ Low BHP & Kh Perform Poorly

Chase Group, Marmaton, Peru, some MississippianAll Reservoir’s w/ High Rcrvy. Eff. Perform Poorly

Arbuckle, some Mississippian

Horizontal Drilling in KansasConclusions

Many Good Candidates not yet Tested

Thin Beds in Lansing-Kansas City

EOR in Multiple Reservoirs

SAG-D Thermal in Cherokee Sands of SE Kansas

Attic Oil in Large Structures (Ordv. and Miss.)

High BHP, Low Kh of Fractured Miss of SC Kansas

Horizontal Drilling in KansasConculsions

Horizontal Drilling Activity by Yearin

Kansas and Canada

-

200

400

600

800

1,000

1,200

1,400

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Year

Wel

ls D

rill

ed i

n C

anad

a

0

2

4

6

8

10

12

14

Wel

ls D

rill

ed i

n K

ansa

s

Canada

Kansas

Horizontal Drilling in KansasAcknowledgements

Petroleum Research SectionDr. Timothy Carr

Kansas Corporation CommissionConservation Division

Dave WilliamsDonna Dill