Roberto Aguilera

Naturally Fractured Reservoirs

 DEDIC ATION

Dedi cated to my wife, Maria Ester; my daug hter, Maria Silvia ,

and, my sons, Roberto Federico and Carlos Gustavo.
Acknowledgements

I wish to thank the Society of Petroleum Engineers, the Petroleum Society of CIM, the
Society of Professional Well Log Analysts, the American Associati o n o j' Petroleum Geolo-
gists, Western Atlas, Schlumberg"r, Halliburton, Gulf PubliShing Co., l'ennWell Publishing
Co., and Petm/ellln Engineer for pe rmission to draw material from th eir publication s. In
addition, I express my gratitude to the various authors and organ izati ons that have pub-
li shed material o n the subject of natllTally fra ctured reservoirs.
Altho ugh I am the only perso n responsible for the final fo rm of this book, I would like
to thank Dr. H.K. van Poollen and Dr. G.R. Pickett, r.i.p., for their help and encouragement
during the devdopment of some of the concepts and techniques presented here. Me.
Alonso Marin, r.i .p., provided valuable help and guidance during my early years as it petro-
leum engineer.
During the last 16 years I have been teaching courses on the subject of naturally frac-
tured reservoirs all over the world. 1 thank my students for their questions and suggestions
that have led to this second edition of my book.
Since 1984 I have been privileged to cooperate with AAPG presenting a course on frac-
tured reservoir analysis with Dr. David Steams, Dr. Melvin Friedman, an d Dr. Ronald
Nelson . Chapter 1 of this book dealing with geologie aspects reflects many of the geolog-
ical techniques I have learned with Dave, Melvin. and Ron. However, the responsibility for
the way in which these techniques are presented is only mine.
Last, but not least, I wish to thank my wife, Maria Ester; my daught er Maria Silvia, and
my sons, Roberto Federico and Carlos Gustavo, for their patien ce and understanding dur-
ing the long evenings, weekends anti hOlidays needed for the preparation of this book.

vii
Preface
.~.

Since the publication of the first edition of my book on naturally fractured reservoirs in
1980, the science and art of evaluating these types of reservoirs has advanced at a rapid
pace. ,
The first edition included in a single book many subjects that are usually discussed in
separate volumes. There were nine chapters of the first edition that included geologic
aspects, drilling and completion methods, log interpretation, well testing, fracture d shales,
primary and secondary recovery, numerical simulation, case histories, and eco llOinic ('val
uatlons.
Initially I attempted to include the same nine chapters in this second edition. However,
I quickly realized that due to the many advances in the field, this was not going to be fea -
sible. Consequently, this second edition includes only six Chapters dealing with geologic
aspects, drilling and completion, formation evaluation by well log analysis, tight gas rcser-
voirs/ case histories, and economic evaluations and reserves. Presently I an1 working on a
second volume covering other aspects of naturally fractured reservoirs.
Chapter 1 deals with geOlogic aspects of naturally fractured reservoirs, reasons for gen-
erations of fractures including tectonic, regional, contractio nal and surface-related fra c-
tures, migration and accumulation of petr61eum, direct and indirect SOurces of informa-
tion, fractured reservoirs in varioll s lithologies, how to avoid \valking a'vvay fr01u a
commercial fractured reservoir due to an lInpropcr evaluatiOn, and tilt! importance of in-
situ stresses on the study of naturally fractured reservoirs.
Chapter 2 reviews some important drilling and completion concepts for deviated holes.
Since most fractures at depths of interest arc verti cal to subvcrticial, deviated and horizon-
tal wells probably stand better ch~nccs of l'il1ding hydrocarbons than vertical wells. The
advantages and disadvantages of open-hole vs. perforated compl etions are reviewed. Key
. elements a~sociatcd with hydraulic fracturing and aci dizing of naturally fractun:~d reser-
voirs are also discussed. '
Chapter 3, which focuses on formation evaluation by well log analysiS, examines the use
of many conventional and specialized well log curves in the qualitative and quantitative
evaluation of naturally fractured reservoirs. The iinportance of electric and sonic imaging
tools is discussed in detail. Special techniques dealing with the porosity exponent III and
the water saturation exponent Ii allow quantitative estimates of porosity and watc r satu-
ration in matriX, fractures and the combined matrix-fractures system. The effect o f lithol-
ogy variations and shalincss is rcvicwttl a.s well as logging of horizontal wells: Th e uncer-
tainty of calculating hydrocarbon s-in-place in fracture media and the effect of
miscallibrated logs is also analyzed.
Chapter 4 is concerned with tight gas reservoiIS where production is possible in many
cases thanks to the presence of natural fractures. Many of these reservoirs are also multi-
layered adding a great deal of complexity to the evaluation. The chapter covers both fra c-
. tured shales and tight gas sands. Geographical distribution is discussed, Various methods
of well log interpretation, well test analysis and performance forecasts are reviewed in
detail.
Chapter 5 pres~nts case histories of naturally fractured reservoirs around the world.
Giant, modest, and non-commercial oil and gas reservoirs are reviewed, highlighting the
most important features associale(l with each one of them. Fractured reservoirs in sand-
stones, ca'[bonates, cherts, shales, basement and tight gas sandstones are considered ill thj s
chapter. The case histories include the effect on recoveries of aqUifers, vario us inj ection

Ix
x Preface

schemes (w\\ter, gas, polymrs, C02, steam), subsidence, rapid pressure decline, strong
gravity scgr~gation with counterflow, fold and fault-related fractures, vertical communica-
tion through fractures, slanted and horizontal wells, and retrograde condensation.
Chapter 6 discusses some of the most important aspects of economic analysis. The opti-
mum equilibrium between well spacing, maximum efficient rate and economic recovery is
reviewed. Emphasis is placed in the economic analysis of acceleration projects as recovery
from most naturally fractured reservoirs is directly related to 'actual acceleration projects.
The effect of directional and horizontal wells on costs ,md recoveries is reviewed. The
chapte~ includes reserves definitions as provided by various organizations and some guide-
lines based on my experience for estimating oil and gas reserves in naturally fractured
reservoirs.

 Contents

CHAPTER 1 GEOLOGIC ASPECTS 1

What Is a Natural Fracture? 1
What Is a Naturally Fractured Reservoir? 1
Requirements for Hydrocarbon Accumulation 1
Porosity 4
Ductility and Brittleness 7
Reasons for Generation of Fractures 9
Storage Capacities 11
Fracture Morphology. 14
Permeability 14
Mechanical Behavior of Rock 20
Fractures ClaSSification 24
Migration and Accun~ulation 30
Sources of Information 32
Mapping Fractured Trends 42
Fractured Reservoirs 50
Exploring fo r Naturally Fractured Reservoirs 61
Subsurface Fracture Spacing 68
Imp~ct Fractures 77
Effect of Fractures on Flow Behavior 77
Undiscovered Naturally Fractured Reservoirs, Why and How? 77
Practical Applications 85
References 91

CHAPTER 2 DRILLING AND COMPLETION METHODS 97

Drilling Fluids 97
Drilling Mud 97
Air and Gas as Drilling Fluids 103 -
Directional Drilling 104
Horizontal Drilling 124
Completion Method s 137
Hydraulic Fracturing 148
" ,.: Acidizing 173
.... . Explosive Fracturing 177
References 177

xi
xii Contents

CHAPTER3 FORMATION EVALUATION BY WELL LOG ANALYSIS 181

Sonic Amplitude Logs 181
Variable Intensity Logs 183
Long Spacing Sonic 184
Shear-Wavc Splitting. 186
Induction Log!: 188
Dual Induction Laterolog 8 189
Sonic, Neutron and Density Logs 189
Comparison of Porosity IOstimates from Different Sources 190
Borehole Televiewer 191
Diprneter and Fracture Identification Log (I'lL) 192
Formation Microscanner and FulJbore Formation Microimager 194
Spontaneous Potential 201
Cnrrcction Curve on the CompcllSated Density Log 201
Comparison of Shale Volume to Uranium Index 202
Lithoporhsity Crossplot 203
Production Index Log 203
Temperature Log 205
Sibilation Log 207
Kerogen Analysis 209
Gamma Ray 210
Circllmferential Acollstical Log 210
Dual Laterolog-Microspherically Focused Log 211
P, Curve on the Litho-Density Log 215
Sonic Porosity Greater than Neutron-Density Porosity 215
Mud Log
Velocity Ratio Plot
218
219

Production Logs 221
Fracture Plausibility 225
Fracture Evaluation in Cased Holes 226
Quantitative Analysis 231
Lithology Det~rmination 251
Estimate of Water Saturation Exponent (n) from Logs 257
Flushed Fractures 259
Water Saturation of the Composite System 259
Practical Application 264
Estimates of Water Saturation in Matrix and Frattures 267
Fracture Completion Log 268
Shaly Formations 268
Nuclear Magnetic-Resistivity Comhination 280
Lithodensity-Resistivity Combination
Electromagnetic Propagation (EPT)--Resistlvity Combination
285
286

Borehole Gravimeter-Resistivity Combination 287
Effect of Variations in Water Resistivities 289
Horizontal Wells 291
Measnre of Uncertainty in Log Calculations 300
Original Oll-In-Place 300
Measure of Uncertainty 302
Hydrocarbon Recoveries from Logs 306
 Contents xiii

Geothermal Reservoirs 306

Miscalibration of Logs 306
General Remarks 309
References ".. 309

CHAPTER 4 TIGHT GAS RESERVOIRS 315

Fractured Shales 315
Worldwide Distribution of Black Sh ale 315
Oil and Gas Occurre nce in Fractured Shales 316
Remote Sensing Surveys 321
GeophYSical Investigatio n 322
Physical Characterization 322
Geochemical Cha racterizatIon 323
Stimulation 323
Interaction between Hydraulically Induced ami Natural Fractures 327
Metamorphism 327
Log Analysis 328
Formation Strength Parameters 342
Estimates of Gas-in-Place 343
Recoverable Gas 345
Well Testing 365
Tight Gas Reservoirs 369
References 379

CHAPTER 5 CASE HISTORIES 383

Fractured Sandstones 383
Fractured Carbona tcs 400
Fractured Ch erts 443
. Fractured Shales 447
Fractured Basement 447
Tight Gas Reservoirs 448
Naturally Fractured Reservoirs StatiSlics 450
Reiereliccs 457

CHAPTER 6 ECONOMIC EVALUATION AND RESERVES 461

Com pound Interest 461
Period, Effective, Nominal, and Continuous Interest Rates 464
Discounted Cash Flows 464 .
Net Present Worth 465
Future Worth 466
Rate of Return 466
Payout Time 468
Profit to Investment Ratio 469
Inflation 470
Acceleration Projects 470
Comparing Evaluation Methods 482
Depreciation, Depletion arid Amorti zation 482
 ,-
t
xlv Contents

Tax Treatment 487

Well Spacing 489
Risk Evahlatiort 490 ~
Size of Helds found 492
Monte Carlo Simulation 494
Direct.ional and Horizontal Wells 494
Reserves 496
Other Definitions 499
Guidelines for Estimating Oil and Gas Reserves 5,62
References 504

Appendix 507

Index 515

 CHAPTER 1

Ge olo gic As pec ts

Many of presen t-day produc ing natura lly fractur ed reservoir~ have
been accide ntally dis-
covere d when lookin g for some other type of reservoir. Some years
ago McNa ughton and
Garb (1975) estima ted that ultima te recovery from produc ing fractur
ed reservoirs would
surpas s 40 billion stock tank barrels of oil (STllO). Today I firmly
believe that this figure
Ii was very conser vative. I am con vinced that there are signifi cant
volum es of hydroc arbons
that have been left behind pipe as undisc overed , or behind plugge
d and aband oned wells
or becaus e of vertica l wells that have not interce pted vertica l fractur
es.
Figure 1-1 shows the locatio n of some impor tant natura lly fractur
ed reservoirs. They are
found allover the world, in all types of litholo gies and throug hout the
geolog ic strati-
graphi c colum n. This is demon strated in Chapt er 5 dealin g with
Case Histories.

WHA T IS A NATU RAL FRACTURE?

A natura l fracture is a macro scopic planar discon tinuity that
results from stresses that
exceed the ruptur e streng th of the rock (Stearns, 1990).
Anoth er definit ion proVided by Nelson (1985) is as follows:
itA reservo ir fracture is a natu!a lly occurr ing Inacro scopic planar
discon tinuity in rock due
to deform ation or physic al diagen esis."

WHA T IS A NATURALLY FRACTURED RESERVOIR?

A natura lly fractur ed reservo ir is a reservoir which contai ns fractur
es created by mothe r
nature . These natura l fractures can have a positiv e or a negativ e
effect on fluid flow. Open
uncem ented or partial ly minera lized fractures might have, for examp
le, a positiv e effect on
oil flow but anegativ e effect on water or gas flow due to coning
effects. Totally minera l-
ized natura l fractur es might create perme ability barriers to all types
of !low. This in turn
might genera te small compa rtment s within the reservoir that can
lead to unecon omic or
margin al recove ries.
In my opinio n a1l reservoirs cuntai n a certain alnoun t of natura
l fracturing. However,
froIn a geolog ic and a reservo ir engine ering point of view,
1 regard as natura lly fractured
reservoirs only those where the fractures have an effect, either
positiv e or negativ e, on
fluid tlow as sugges ted by Nelson (1985).

REQUIREMENTS FOR HYD ROC ARB ON ACC UMU LATI ON

In genera l, a petrole unl reservo ir consist s of source rock, reservo
ir rock, seal rock, trap, and
fluid conten t.
Source rock, Or source enviro nment , is believe d to be respon sible
for the origin of petro-
leum. Most geolog ists believe that the origin of petrole um is organi
c, related mainly to veg-
etables which were altered by pressure, temper ature, and bacteri a.
Some geolog ist (Hunt et
aI, 1992), howev er, believe that the origin of petrole um is igneou
s and indica te that oil
rises from depth in graniti c shield terrain s of the world.