years experience in corporate sales, and is now

coordinating activities with Feketes corporate

Kevin Dunn is the Manager of Technical Sales at Fekete clients. Niel is responsible for the F.A.S.T. RTA
software, and is now in the process of ensuring that
all clients have direct access to their production data
through F.A.S.T. RTAs new database interface
My name is Kevin Dunn and I am the Manager tools.
of the Technical Sales department at Fekete
Associates Inc. Over the past year, we have grown Russel Walsh has been tasked with managing
our sales department to meet the increasing needs F.A.S.T. Fieldnotes activities and ensuring Many reservoirs have properties that are for PVT and formation properties. All
pressure dependent. This is particularly PVT properties can be customized, or
of our clients. Our software is in use by almost easy access to support for the software. F.A.S.T. correlations used. Relative permeability
800 companies around the world with thousands Dave Anderson is a Senior true of overpressured formations. The
Fieldnotes is currently being rebuilt to include Geomechanical option in F.A.S.T. (two and three phase) can be specified
of users. To ensure the prompt and attentive Technical Advisor at Fekete or input based on correlations.
many new tools that clients have requested. Contact RTA allows users to integrate the
service our clients deserve, we have focused Russ for more information on new functions, effects of stress dependent permeability
individual sales people on specific software and or for technical support in using the software. Fekete announces the long anticipated and/or pore compressibility into their Enhanced Results Visualization and
market groups. It is important to know that you release of F.A.S.T. RTA version 3.0. interpretation. The geomechanical Mapping
This upgrade contains a variety of model can be coupled with the
can always contact any salesperson at Fekete for Jesse Dunlop is a recent addition to our department. The existing Map in F.A.S.T. RTA has
new features designed to enhance advanced type curve methods
assistance, and we will ensure that you are taken Jesse represents the F.A.S.T. Welltest and and flowing material balance, as been enhanced to include additional
interpretation, modeling, and reporting colour plotting options, including
care of. Allow me to introduce my group. Validata software, and is quickly learning the well as analytical and numerical
of your production performance kh, xf, abandonment pressure and
many tools available in these packages. Contact models. Forecasts may be generated,
analysis. transient/boundary dominated flow.
Leanne Christie is the assistant manager of Jesse to access information about the software and comparing ultimate recovery under
The bubble map parameter has also
conditions of compaction, against that
our department. Leanne is responsible for the to coordinate analysis with Feketes welltest group. New Features been extended to include OG(O)IP
of a conventional reservoir. and EUR, in addition to drainage area.
majority of the lease renewals that are completed
New Models Fractured wells can be bubble-mapped
at Fekete. She also coordinates many of the sales Melissa Gillard is Feketes customer service - Multi-Phase (Numerical) Enhanced Flowing Material Balance as ellipses.
for small and intermediate producers. specialist and contacts many of our clients to - Composite
The Flowing Material Balance page has
coordinate lunch-and-learns, internal courses and - Multi-Layer been enhanced to include a Flowing Enhanced Reporting / Printing
Chris Wizniak is a sales engineer at Fekete who technical support. - Dual Porosity p/z plotting function, in addition to Capabilities
is focused on three software packages, including - Geomechanical the existing Normalized Rate vs.
Enhanced Flowing Material Balance Normalized Cumulative plot. The output reports and printouts in
F.A.S.T. Piper, F.A.S.T. CBM, and F.A.S.T. Eris Latham is Feketes course coordinator. Eris Advanced Properties Section F.A.S.T. RTA have been redesigned
Virtuwell. Chris is the primary contact for handles the registration for all public courses, and Enhanced Results Visualization and Advanced Properties Section with full customization in mind. The
training sessions, lunch-and-learns, and one-on- also coordinates any in-house courses for clients. Mapping user can now design and collate custom
one support for these software packages. Enhanced Reporting / Printing By enabling Advanced Properties, the report templates with full accessibility
Capabilities user can access the powerful controls to all plots, grids and annotations.
Naoko Yamaoka (not pictured) is Feketes software
In March 2005, Niel Beckie joined Fekete as a coordinator, and is responsible for processing all
New Models
senior sales engineer. Niel has more than 11 software licensing at Fekete.
An extensive portion of our upgrade is
devoted to new and enhanced modeling
capabilities.

The user can now model oil above AND

below the bubble point, using the fully
implicit numerical engine, without
having to resort to the time and resource
commitment of full-fledged reservoir
simulation. The interface offers the
convenience and flow of our existing
models while providing the power and
versatility of the numerical engine.
History matching can be performed
using rates or pressures.

In addition, the user can model more

complex single-phase reservoir behavior
using the Radial Composite, Multi-
Layer and Dual Porosity models. The
option of a time-dependent skin is also
From Left to Right: Back Row: Russ. W., Jesse D., Chris W., Niel B., Melissa G. Front Row: Eris L. , Kevin D., Leanne C. available.

F.A.S.T RTA 3.0 Release - p1 Tech Talk: Evaluation of Tight Gas Reserves - p2-3 Feketes Sales Group - p4
 When evaluating gas reservoirs, the industry they do not stipulate that the well must meet FMB analysis for the same well. From analog wells
standard methodology includes volumetrics, decline stabilized conditions. In tight gas reservoirs, the in the area, the recovery factor is estimated to be
analysis, and material balance analysis. Volumetric reported static pressure is typically lower than true 85% and the resulting EUR is calculated to be 1.30
Casey OShea is a Project Engineer at Fekete in-place estimates do not vary between conventional reservoir conditions, resulting in an erroneously low BCF. It is clear from this example that the reserves
and tight gas reservoirs since production is not a calculation of OGIP (Figure 2). assigned to this well could easily be understated.
Gary Metcalfe is the Vice-President of Evaluations at Fekete component of the calculation. However, there are
several limitations in decline and material balance Advanced decline analysis methods, such as The use of F.A.S.T. RTA is not limited to the
methods that can lead to erroneous results in tight those in Feketes F.A.S.T. RTA, have allowed determination of OGIP or reserves. With good quality
Evaluation of Tight Gas Reserves gas reservoirs. for a greater reliability in the estimation of gas- early time data, F.A.S.T. RTA is an effective tool for
in-place and recoverable reserves. Although reservoir characterization. For example, in Texas,
With recent high gas prices, strong market demand,
Decline analysis is an empirical observation of applicable to all types of reservoirs, F.A.S.T. a company is entitled to receive tax credits for the
and the steep decline in conventional gas reserves in
production data. It is simply a best-fit line through RTA is ideal for low permeability reservoirs. production of tight gas. Recently, the Texas Railroad
North America, gas producers are turning to more
a cartesian plot of production rate vs. cumulative The Flowing Material Balance (FMB), one of the Commission accepted the results from a F.A.S.T.
unconventional resources that were previously
production. Two major assumptions are implicit methods incorporated into F.A.S.T. RTA, is a RTA analysis that proved the permeability of the
uneconomical. It is estimated that current
when applying this technique: 1) the well is in practical alternative to conventional decline and reservoir to be under the prerequisite 0.1 mD. This
unconventional gas production now accounts for
boundary dominated flow, and 2) there is no change material balance analysis. The FMB incorporates resulted in increased net cash flows and eliminated
approximately one-tenth of Canadas, and one-third
in the flowing conditions of the well. flowing rates and pressures in the calculation production downtime and lost revenue.
of the United States, current supply.
of gas-in-place. The well reaches stabilization Flowing Material Balance
In a tight gas reservoir, a well may take months, or while producing, and shut-ins are not required.
In the spectrum of unconventional gas reserves,
even years, to reach pseudo steady-state flow. This
tight gas is the next immediate resource that will be Rate vs. Cumulative Prod.
often results in an underestimation of reserves in
exploited. CBM, shale gas and gas hydrates round out
the early life of the well (Figure 1). In addition, this
the resource spectrum and, while they are considered
method can only quantify the expected ultimate
to be tight, the focus of this article is on low-
recovery (EUR) from this well and does not tell us
permeability sandstone and carbonate reservoirs.
the original gas-in-place (OGIP).
The definition of tight gas is not as precise as
it may seem. While there is no specified cut-off Material Balance Analysis
between conventional and tight gas, tight is a
general term for low-permeability. In general, we
consider a formation permeability less than 0.1
millidarcy to be tight. In the Western Canadian
Sedimentary Basin, tight gas exists everywhere but
is predominant along the front ranges of the Rocky
Mountains. In the U.S., tight gas formations are
Normalized Cumulative Production (BCF)
found throughout Wyoming, Colorado, Oklahoma, Cumulative Production (BCF)
Texas and the Appalachian mountains. Figure 4: Flowing Material Balance

Decline Analysis Figure 3: Traditional Decline Analysis

Conclusion
Once stabilization is achieved, the FMB plot produces Traditional evaluation methods have a tendency
Cumulative Production a straight line trend that points to OGIP, similar to to underestimate reserves during early production
a conventional material balance. In transient flow, of tight gas pools. Conducting a F.A.S.T. RTA
Figure 2: Erroneously Low OGIP Calculated in a Tight Gas Reservoir the FMB calculates a minimum contacted fluid-in- analysis when evaluating tight gas reserves
place volume that is typically higher than traditional provides an early radar of EUR and total gas-
methods. in-place. F.A.S.T. RTA reduces the potential
Under most conditions, material balance is the most of understating tight gas reserve bookings and
definitive method of determining the original gas-in- Traditional decline analysis assumes constant open- therefore, is extremely valuable in the early life
place. Static reservoir pressures are obtained from flow conditions at the surface. By incorporating the of a pool. Based on the results from a F.A.S.T.
build-up tests, static gradients, and/or deliverability flowing pressures the true potential is determined. RTA analysis, we can predict the production
tests and are plotted vs. cumulative production. The Once the well is in pseudo steady-state flow, and performance for a variety of infill scenarios and
extrapolation of a best-fit line yields the original gas- the pressure is constant, results from the traditional determine the optimal well density based on
in-place (OGIP). For tight gas, the time to reach decline analysis will approach the FMB results. economics. Early time data analysis using F.A.S.T.
Cumulative Production (MMSCF) stabilization could last years and there could be RTA can also identify reservoir characteristics,
Figure 3 shows traditional decline analysis results
significant lost production if the well is left shut-in such as permeability, without shutting the well in.
for a tight gas well in early time production. The
for this duration. While some regulatory agencies in As a consequence, there is minimal lost production
Figure 1: Underestimation of EUR during Transient Period EUR is calculated to be 0.86 BCF under assumed from well downtime.
North America require reservoir pressure surveys, constant flowing conditions. Figure 4 shows the
 When evaluating gas reservoirs, the industry they do not stipulate that the well must meet FMB analysis for the same well. From analog wells
standard methodology includes volumetrics, decline stabilized conditions. In tight gas reservoirs, the in the area, the recovery factor is estimated to be
analysis, and material balance analysis. Volumetric reported static pressure is typically lower than true 85% and the resulting EUR is calculated to be 1.30
Casey OShea is a Project Engineer at Fekete in-place estimates do not vary between conventional reservoir conditions, resulting in an erroneously low BCF. It is clear from this example that the reserves
and tight gas reservoirs since production is not a calculation of OGIP (Figure 2). assigned to this well could easily be understated.
Gary Metcalfe is the Vice-President of Evaluations at Fekete component of the calculation. However, there are
several limitations in decline and material balance Advanced decline analysis methods, such as The use of F.A.S.T. RTA is not limited to the
methods that can lead to erroneous results in tight those in Feketes F.A.S.T. RTA, have allowed determination of OGIP or reserves. With good quality
Evaluation of Tight Gas Reserves gas reservoirs. for a greater reliability in the estimation of gas- early time data, F.A.S.T. RTA is an effective tool for
in-place and recoverable reserves. Although reservoir characterization. For example, in Texas,
With recent high gas prices, strong market demand,
Decline analysis is an empirical observation of applicable to all types of reservoirs, F.A.S.T. a company is entitled to receive tax credits for the
and the steep decline in conventional gas reserves in
production data. It is simply a best-fit line through RTA is ideal for low permeability reservoirs. production of tight gas. Recently, the Texas Railroad
North America, gas producers are turning to more
a cartesian plot of production rate vs. cumulative The Flowing Material Balance (FMB), one of the Commission accepted the results from a F.A.S.T.
unconventional resources that were previously
production. Two major assumptions are implicit methods incorporated into F.A.S.T. RTA, is a RTA analysis that proved the permeability of the
uneconomical. It is estimated that current
when applying this technique: 1) the well is in practical alternative to conventional decline and reservoir to be under the prerequisite 0.1 mD. This
unconventional gas production now accounts for
boundary dominated flow, and 2) there is no change material balance analysis. The FMB incorporates resulted in increased net cash flows and eliminated
approximately one-tenth of Canadas, and one-third
in the flowing conditions of the well. flowing rates and pressures in the calculation production downtime and lost revenue.
of the United States, current supply.
of gas-in-place. The well reaches stabilization Flowing Material Balance
In a tight gas reservoir, a well may take months, or while producing, and shut-ins are not required.
In the spectrum of unconventional gas reserves,
even years, to reach pseudo steady-state flow. This
tight gas is the next immediate resource that will be Rate vs. Cumulative Prod.
often results in an underestimation of reserves in
exploited. CBM, shale gas and gas hydrates round out
the early life of the well (Figure 1). In addition, this
the resource spectrum and, while they are considered
method can only quantify the expected ultimate
to be tight, the focus of this article is on low-
recovery (EUR) from this well and does not tell us
permeability sandstone and carbonate reservoirs.
the original gas-in-place (OGIP).
The definition of tight gas is not as precise as
it may seem. While there is no specified cut-off Material Balance Analysis
between conventional and tight gas, tight is a
general term for low-permeability. In general, we
consider a formation permeability less than 0.1
millidarcy to be tight. In the Western Canadian
Sedimentary Basin, tight gas exists everywhere but
is predominant along the front ranges of the Rocky
Mountains. In the U.S., tight gas formations are
Normalized Cumulative Production (BCF)
found throughout Wyoming, Colorado, Oklahoma, Cumulative Production (BCF)
Texas and the Appalachian mountains. Figure 4: Flowing Material Balance

Decline Analysis Figure 3: Traditional Decline Analysis

Conclusion
Once stabilization is achieved, the FMB plot produces Traditional evaluation methods have a tendency
Cumulative Production a straight line trend that points to OGIP, similar to to underestimate reserves during early production
a conventional material balance. In transient flow, of tight gas pools. Conducting a F.A.S.T. RTA
Figure 2: Erroneously Low OGIP Calculated in a Tight Gas Reservoir the FMB calculates a minimum contacted fluid-in- analysis when evaluating tight gas reserves
place volume that is typically higher than traditional provides an early radar of EUR and total gas-
methods. in-place. F.A.S.T. RTA reduces the potential
Under most conditions, material balance is the most of understating tight gas reserve bookings and
definitive method of determining the original gas-in- Traditional decline analysis assumes constant open- therefore, is extremely valuable in the early life
place. Static reservoir pressures are obtained from flow conditions at the surface. By incorporating the of a pool. Based on the results from a F.A.S.T.
build-up tests, static gradients, and/or deliverability flowing pressures the true potential is determined. RTA analysis, we can predict the production
tests and are plotted vs. cumulative production. The Once the well is in pseudo steady-state flow, and performance for a variety of infill scenarios and
extrapolation of a best-fit line yields the original gas- the pressure is constant, results from the traditional determine the optimal well density based on
in-place (OGIP). For tight gas, the time to reach decline analysis will approach the FMB results. economics. Early time data analysis using F.A.S.T.
Cumulative Production (MMSCF) stabilization could last years and there could be RTA can also identify reservoir characteristics,
Figure 3 shows traditional decline analysis results
significant lost production if the well is left shut-in such as permeability, without shutting the well in.
for a tight gas well in early time production. The
for this duration. While some regulatory agencies in As a consequence, there is minimal lost production
Figure 1: Underestimation of EUR during Transient Period EUR is calculated to be 0.86 BCF under assumed from well downtime.
North America require reservoir pressure surveys, constant flowing conditions. Figure 4 shows the
 years experience in corporate sales, and is now
coordinating activities with Feketes corporate
Kevin Dunn is the Manager of Technical Sales at Fekete clients. Niel is responsible for the F.A.S.T. RTA
software, and is now in the process of ensuring that
all clients have direct access to their production data
through F.A.S.T. RTAs new database interface
My name is Kevin Dunn and I am the Manager tools.
of the Technical Sales department at Fekete
Associates Inc. Over the past year, we have grown Russel Walsh has been tasked with managing
our sales department to meet the increasing needs F.A.S.T. Fieldnotes activities and ensuring Many reservoirs have properties that are for PVT and formation properties. All
pressure dependent. This is particularly PVT properties can be customized, or
of our clients. Our software is in use by almost easy access to support for the software. F.A.S.T. correlations used. Relative permeability
800 companies around the world with thousands Dave Anderson is a Senior true of overpressured formations. The
Fieldnotes is currently being rebuilt to include Geomechanical option in F.A.S.T. (two and three phase) can be specified
of users. To ensure the prompt and attentive Technical Advisor at Fekete or input based on correlations.
many new tools that clients have requested. Contact RTA allows users to integrate the
service our clients deserve, we have focused Russ for more information on new functions, effects of stress dependent permeability
individual sales people on specific software and or for technical support in using the software. Fekete announces the long anticipated and/or pore compressibility into their Enhanced Results Visualization and
market groups. It is important to know that you release of F.A.S.T. RTA version 3.0. interpretation. The geomechanical Mapping
This upgrade contains a variety of model can be coupled with the
can always contact any salesperson at Fekete for Jesse Dunlop is a recent addition to our department. The existing Map in F.A.S.T. RTA has
new features designed to enhance advanced type curve methods
assistance, and we will ensure that you are taken Jesse represents the F.A.S.T. Welltest and and flowing material balance, as been enhanced to include additional
interpretation, modeling, and reporting colour plotting options, including
care of. Allow me to introduce my group. Validata software, and is quickly learning the well as analytical and numerical
of your production performance kh, xf, abandonment pressure and
many tools available in these packages. Contact models. Forecasts may be generated,
analysis. transient/boundary dominated flow.
Leanne Christie is the assistant manager of Jesse to access information about the software and comparing ultimate recovery under
The bubble map parameter has also
conditions of compaction, against that
our department. Leanne is responsible for the to coordinate analysis with Feketes welltest group. New Features been extended to include OG(O)IP
of a conventional reservoir. and EUR, in addition to drainage area.
majority of the lease renewals that are completed
New Models Fractured wells can be bubble-mapped
at Fekete. She also coordinates many of the sales Melissa Gillard is Feketes customer service - Multi-Phase (Numerical) Enhanced Flowing Material Balance as ellipses.
for small and intermediate producers. specialist and contacts many of our clients to - Composite
The Flowing Material Balance page has
coordinate lunch-and-learns, internal courses and - Multi-Layer been enhanced to include a Flowing Enhanced Reporting / Printing
Chris Wizniak is a sales engineer at Fekete who technical support. - Dual Porosity p/z plotting function, in addition to Capabilities
is focused on three software packages, including - Geomechanical the existing Normalized Rate vs.
Enhanced Flowing Material Balance Normalized Cumulative plot. The output reports and printouts in
F.A.S.T. Piper, F.A.S.T. CBM, and F.A.S.T. Eris Latham is Feketes course coordinator. Eris Advanced Properties Section F.A.S.T. RTA have been redesigned
Virtuwell. Chris is the primary contact for handles the registration for all public courses, and Enhanced Results Visualization and Advanced Properties Section with full customization in mind. The
training sessions, lunch-and-learns, and one-on- also coordinates any in-house courses for clients. Mapping user can now design and collate custom
one support for these software packages. Enhanced Reporting / Printing By enabling Advanced Properties, the report templates with full accessibility
Capabilities user can access the powerful controls to all plots, grids and annotations.
Naoko Yamaoka (not pictured) is Feketes software
In March 2005, Niel Beckie joined Fekete as a coordinator, and is responsible for processing all
New Models
senior sales engineer. Niel has more than 11 software licensing at Fekete.
An extensive portion of our upgrade is
devoted to new and enhanced modeling
capabilities.

The user can now model oil above AND

below the bubble point, using the fully
implicit numerical engine, without
having to resort to the time and resource
commitment of full-fledged reservoir
simulation. The interface offers the
convenience and flow of our existing
models while providing the power and
versatility of the numerical engine.
History matching can be performed
using rates or pressures.

In addition, the user can model more

complex single-phase reservoir behavior
using the Radial Composite, Multi-
Layer and Dual Porosity models. The
option of a time-dependent skin is also
From Left to Right: Back Row: Russ. W., Jesse D., Chris W., Niel B., Melissa G. Front Row: Eris L. , Kevin D., Leanne C. available.

F.A.S.T RTA 3.0 Release - p1 Tech Talk: Evaluation of Tight Gas Reserves - p2-3 Feketes Sales Group - p4