Sean McFadyen

Realising the Potential: Reservoir
Characterisation
Sean McFadyen
Geoscience Consultant
Technology Solutions Team, EESSA

© 2017 Halliburton. All rights reserved.
DID YOU KNOW
SAFETY IS NOT ONLY ABOUT TAKING
PRECAUTIONS, IT’S ALSO ABOUT TAKING
RESPONSIBILITY.
At Halliburton, solving customer challenges is second only to keeping everyone
safe and healthy. You can find more safety tips at www.halliburton.com/HSE.
There’s a catch phrase that’s being heard more and more these days. “See it. Own it.” That
phrase is particularly applicable to safety.
If you see an unsafe situation, or even a potentially unsafe situation, don’t just walk away.
Take responsibility for getting it corrected.
Whether it’s in the office, while you’re traveling, or at the work site, wherever you see
something that you believe is unsafe, or could lead to an adverse incident, speak up. If it’s
unsafe to actually do something about it yourself, keep others out of the unsafe zone and
contact your supervisor.
Think how you’d feel if you did nothing, then heard later that someone was injured.
Safety Moment Subject suggested by: Allen McClure, Halliburton Employee

3© 2017 Halliburton. All rights reserved.
Agenda
▌ Unconventional Reservoir
▌ CYPHERSM Service: What is it?
▌ Reservoir Characterisation – Where to Drill?
- Key Components
- Reservoir Characterisation Objectives
- An example of the tools used in the CYPHER workflow
- The Output – Interactive Earth Model
▌ The Value
- Case study example

What is Unconventional?
Coalbed MethaneShale Tight Gas/Tight Oil

Weight of the Properties for Success Changes Between Plays
Traditional Reservoir Tight Rock Reservoir
Trap
Reservoir Timing
Seal
Source
Source Rock Reservoir
Source
Productivity
Net Pay
Trap Reservoir
Continuity
Timing
Seal
Maturity
Brittleness
Original
Hydrocarbon in
Place
Areal Extent Average Depth
Net Thickness
Total
Organic
Content
Conventional Unconventional

Drilling Engineering Solutions Tech TeamsFormation Reservoir Solutions
Integration
Collaboration
+
Integrated Well Intervention Integrated Completion Solutions
Integrated Drilling Solutions
Halliburton - serves the upstream oil and gas industry throughout the lifecycle
of the reservoir
Artificial Lift Production Solutions Cementing

CYPHERSM Service: What is it?
▌ The premier optimisation solution designed to
solve the complex challenges of your
unconventional reservoirs
▌ A proprietary, collaborative workflow that
combines geosciences techniques and applied
engineering, enabling you to better predict and
produce unconventional reserves to maximize
profitability
▌ It optimises access to hydrocarbons through a
combination of lateral length, spacing,
orientation, and fracturing

© 2017 Halliburton. All rights reserved.
Reservoir Characterisation
Resolving uncertainty in the reservoir

Resolving uncertainty in the reservoir Delivering customized technologies
INSIGHT EXECUTION
Our end goal is to advance the reservoir understanding so that we can identify the best reservoir targets
within the field and target our wellbores to connect to the most prolific layers within these areas.

Five Key Components of the CYPHERSM Service
Acquire Data
Build an Earth Model
Plan and Drill Wells
Optimize Completions
History Match
▌ Non-linear
▌ Iterative
▌ Performed in series or concurrently
▌ May be repeated throughout the project
▌ Helps build interactive Earth Model
SINGLE WELL FULL FIELD OPERATIONS

Reservoir Characterisation
Key components
 Basin modeling
 Core analysis
 Petrophysical logging
 3D seismic
 Earth modeling

Structure – Reservoir structure map for key horizons
Thickness – Reservoir gross and net thickness maps
for key horizons
Porosity – Porosity determination using wireline,
logging while drilling (LWD), and core data
Saturation – Gas/oil saturation analysis using wireline,
LWD, and core data
TOC – Total organic carbon (TOC) using wireline, LWD,
and core data
Rock/Log – Integration and validation of petrophysical
and core
Pressure – Formation pore pressure prediction and
measurement data
Reservoir Characterisation Objectives
Fluids – Oil API gravity, gas gravity, gas/oil ratio,
H2S, CO2
Temperature – Geothermal gradient/temperature
analysis
Frac Design – Rock physics and rock mechanics,
rock brittleness
VRo – Thermal maturity/vitrinite reflectance analysis
Volume – Original-oil-in-place (OOIP) and original-gas-
in-place (OGIP) analyses and maps
Seismic – Seismic attribute analysis and
geohazard identification
and more…

AssetXpertSM – Advanced Low-Perm Asset Workflow Solution
▌ We need petrophysical solutions that will define the most optimum techniques to deliver the
most oil and gas to market.
▌ The Halliburton AssetXpertSM integrated analysis solution, based on a calibrated workflows
for tight/shale/carbonate reservoirs, can bring all the pieces together.
▌ It allows you to build reservoir models to exploit these resources.

▌ Features
- Uses a combination of all OH logging tools as
input and provides an integrated result
- Total Organic Content (TOC) estimation and
organic maturity
- Fluid and Minerals Evaluation (FAMETM)
- Advanced saturation modeling
- Mechanical properties and brittleness
- 3D stress and orientation
- Permeability
- Pay analysis
▌ Define the Sweet Spot
- Higher index of brittleness and low plasticity =
highest fracture complexity and most surface
area
- Lowest effective closure stress
- Highest effective porosity (most free gas)
- Least amount of clay layering per unit volume
(low VTI anisotropy)
- Most amount of microfractures per unit volume
(high HTI anisotropy)
- Highest TOC-FT when thermally mature
AssetXpertSM

The Output: Interactive Earth Model
▌ Enables constant upgrading of the platform for continuous recalibration and optimization of
drilling and completion designs
▌ Identifies sweet spots, well placement, and property extraction using 3D seismic data and
geostatistical capabilities
▌ Models natural fracture networks and interaction with hydraulic-induced fractures
▌ Decreases uncertainty and increases prediction, improving EUR

CYPHERSM Seismic-to-Stimulation Service – Well Placement
Well 1 – Client Placement
Well 2 – CYPHERSM Seismic-to-
Stimulation Service Placement
▌ Where to Drill?
▌ Validate well location in target
reservoir section
▌ Optimise perforation
placement
▌ Evaluate stimulation design

The Earth Model is also used to determine Where to Frac
- Frac Design and Placement
 Used in Most Wells in NA
 Pre-determined Intervals
 Pre-determined Fracture Designs
Under-Stimulated
Under-Stimulated
Under-Stimulated
Non-Productive
Non-Productive
Non-Productive

The Earth Model is also used to determine Where to Frac
- Frac Design and Placement
 Used in Most Wells in NA
 Pre-determined Intervals
 Pre-determined Fracture Designs
 Intervals Chosen by Reservoir Properties
 Frac Design Tailored for Reservoir Properties

The Value - Improve Your Economic Returns
OPERATIONAL EFFICIENCY
WELL PRODUCTIVITY
=
COST PER
BOE
~40%
▌ Optimise production of shale and tight reservoirs, improving EUR
▌ Reduce uncertainty for increased predictable results
▌ Reduce cost per BOE
▌ Maximise net present value
▌ Improve client’s economic returns

Case Study: Multi-discipline collaboration using Earth Model and CYPHER
service creates value in Permian Basin, USA
Challenges
 An operator in the Permian Basin drilled and completed three unconventional horizontal wells in the
Delaware Basin, but, after a year, results had not proven economical.
 Believing the field had more to offer, the operator turned to Halliburton to help solve its unconventional
challenge.
Solution
 Collaborated with the operator and applied the CYPHERSM Seismic-to-Stimulation Service to address the
challenges and improve well performance while achieving the lowest cost per BOE.
 To gain better subsurface insight, we built an interactive earth model, using DecisionSpace® Earth
Modeling software, which allows the drilling, reservoir, completion, and geological and geophysical (G&G)
disciplines to work together on a single platform.
 Along with the subsurface expertise, Halliburton provided the wellsite services for the drilling and
completion operations including cement, drill bits, mud, directional, completion tools, wireline logging, and
fracture stimulation.
Results
 Drilling time to total depth (of the well) was reduced from 60 days to 21 days - a new record for the area
 Drilled and completed four of the top five producing wells in the basin
 Reduced cost per BOE by 46 percent vs. offset competitor wells

Who to Contact, Where to Get More Information
Sean McFadyen
Geoscience Consultant,
Technology Solutions team, Consulting & Project Management, EESSA region
Sean.McFadyen@halliburton.com
www.halliburton.com/
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