Oil Gas March 13

Waterflooding
A Tried and True Technique for

Secondary Oil Recovery
Houston Bar Association
Oil, Gas and Mineral Law Section
March 26, 2013
F. J. Deacon Marek, P.E
President
William M. Cobb & Associates, Inc.
Dallas, Texas
Brian R. Sullivan, P.E

Attorney/Petroleum Engineer
McElroy, Sullivan, Miller, Weber &
Olmstead, LLP
Austin, Texas
WilliamM.Cobb&Associates,Inc.
General Topics
Whatisawaterflood?
Howdoesitwork?
Whattypesofpropertiesmakebettercandidates?
Unitization
Whyisitsometimesneeded?
Howdoestheprocesswork?
Exampleequityformula
Page 2
What is a Waterflood?
Itistheinjectionofwaterintoawellboreto
push,ordriveoiltoanotherwellwhereit
canbeproduced
Recognizedenhancedoilrecoverytechnique
sinceearly1900s
Someoilreservoirshavenaturalwaterinflux,
whichincreasesoilproduction
Calledwaterdrivereservoirs
Theyarenaturalwaterfloods
Page 3
How Does a Waterflood Work?

OilreservoirsandOriginalOilinPlace
Oilrecoveryunderprimaryproduction
Targetoilforwaterfloodrecovery
Page 4
Bulk Volume Calculations

Reservoir Area
Area
Reservoir Bulk Volume (BV) :
BV = Area x Thickness
Area
h
Page 5
Calculating Original Oil in Place (OOIP)

BulkVolume
Area
Thickness
Porosity
Porespacewithintherock
Generally5%to30%ofthe
bulkvolume
Page 6

BulkVolume
Area
Thickness
Porosity
Fluidsaturations
Water(usually10%to50%of
porespace)
Oil
Page 7

BulkVolume
Area
Thickness
Porosity
Fluidsaturations
Water
Oil
Shrinkage(oilformation
volumefactor)
Page 8
Formation Volume Factor (Bo)

Oilshrinksasitisproducedfromthereservoirto
thesurfacedueto
gasevolvingfromtheoil
Lowertemperatureatthesurface
Thesalesunitforoilisastocktankbarrel,orSTB,
whichisequalto42USgallons
UnitsofBoareRB/STB(reservoirbarrelsperstock
tankbarrel)
Bointypicalwaterfloodprojectsrangesfromabout
1.1to1.5RB/STB
Page 9

OOIP = 7,758*A*h**(1-Sw)/Bo
Where:
OOIP = original oil in place, STB
7,758 = factor converting acre-feet to barrels
A = reservoir area, acres
h = average reservoir thickness, feet
= average reservoir porosity, fraction bulk volume
Sw = average water saturation, fraction pore volume

Bo = oil formation volume factor, RB/STB
Page 10
Example Calculation
Problem - Calculate OOIP oil for a new oil well with the following
conditions:
Reservoir area = 40.0 acres
average reservoir thickness = 25 feet
average reservoir porosity = 22%
average water saturation = 30%
oil formation volume factor = 1.32 RB/STB
Page 11
Example Calculation
OOIP = 7,758*A*h**(1-Sw)/Bo
OOIP = 7,758*40*25*0.22*(1-.30)/1.32
OOIP = 905,100 STB
Page 12
So once weve calculated

OOIP
Page 13
So once weve calculated

OOIP
How much of that oil is
recoverable?
Page 14
The Amount of Recoverable Oil Depends on the

Natural (Primary) Reservoir Drive Mechanism
SolutionGasDrive
Recovers5%to15%OOIP
Leavingbehind85%to95%oftheOOIP
SolutionGasDrive+GasCapExpansion
Recovers15%to25%OOIP
NaturalWaterDrive
Recovers25%to50%OOIP
Page 15
Why would you need to waterflood?

MANY(majority?)oilreservoirsaresolutiongasdrive
Waterfloodingcanrecovermuchoftheoilleft
behindunderPrimaryproduction,especiallya
solutiongasdrivesystem
Sincewaterfloodingusuallyfollowsprimary
production,itisoftencalledasecondaryrecovery
technique
Page 16
How does a waterflood work?

Certainoilwellsareconvertedtowater
injectionwells
Otheroilwellsremainasproducers
Theinjectedwaterdisplaces,orpushesoil
totheproducingwells
Page 17
Page 18
Waterflood Example
PRIMARY PRODUCTION
producing well (21)

water injection well (0)
Page 19
Waterflood Example
WATERFLOOD OPERATIONS
producing well (8)

Page 20
Waterflood Example
WATERFLOOD PATTERN
5-SPOT
producing well (8)

Page 21
5-Spot Waterflood Pattern
well
well
A single 5-Spot pattern has:

One net producer, and
one net injector, or two
total wells
full well
well
well
Page 22
Waterflood Progression
Time 1
Early in life of waterflood.
Producer making 100% oil.
Page 23
Time 2
Still relatively early in life of
waterflood. Water banks
expanding, but producer still
making 100% oil.
Page 24
Time 3
Mid-life of the waterflood.
Water has reached the
producing well. Producer
now makes oil and water.
Page 25
Time 4
Late in the life of the
waterflood. Producer now
making large volume of water
compared to the oil volume.
Page 26
Time 4
Late in the life of the
waterflood. Producer now
making large volume of water
compared to the oil volume.
The effectiveness of the water
sweeping the area of the
pattern is called the areal
sweep efficiency, or Ea .
Page 27
A waterflood also works in the

vertical dimension..
Page 28
Permeability
Permeability,measuredinmilidarcys(md.),is
ameasurementofarocksabilitytotransmit
fluid
Waterinjectionratewillbeafunctionof
permeability
Mostoilreservoirshavemultiplelayerswith
varyingpermeabilityvalues
Page 29
Injection Well
Producing Well
Oil reservoir with eight layers . . . . .
Layer 1
Layer 2
Layer 3
Layer 4
Layer 5
Layer 6
Layer 7
Layer 8
Page 30
Injection Well
Producing Well
. . . . . with variable permeability.
Layer 1
200 md.
Layer 2
400 md.
Layer 3
50 md.
Layer 4
500 md.
Layer 5
75 md.
Layer 6
100 md.
Layer 7
10 md.
Layer 8
300 md.
Page 31
Injection Well
Producing Well
producing
100% oil
Waterflood early time
Layer 1
200 md.
Layer 2
400 md.
Layer 3
50 md.
Layer 4
500 md.
Layer 5
75 md.
Layer 6
100 md.
Layer 7
10 md.
Layer 8
300 md.
Page 32
Injection Well
Producing Well
Waterflood at water breakthrough
Starts to
make some
water
Layer 1
200 md.
Layer 2
400 md.
Layer 3
50 md.
Layer 4
500 md.
Layer 5
75 md.
Layer 6
100 md.
Layer 7
10 md.
Layer 8
300 md.
Page 33
Injection Well
Producing Well
Waterflood late life, near abandonment
producing
at a high
water to oil
ratio (WOR)
Layer 1
200 md.
Layer 2
400 md.
Layer 3
50 md.
Layer 4
500 md.
Layer 5
75 md.
Layer 6
100 md.
Layer 7
10 md.
Layer 8
300 md.
Page 34
Injection Well
Producing Well
The effectiveness of the water
sweeping the layers of the
reservoir is called the vertical
sweep efficiency, or Ev .
producing
at a high
water to oil
ratio (WOR)
Layer 1
200 md.
Layer 2
400 md.
Layer 3
50 md.
Layer 4
500 md.
Layer 5
75 md.
Layer 6
100 md.
Layer 7
10 md.
Layer 8
300 md.
Page 35
Factors Affecting Waterflood Success

Timingofflood earlierisbetter
Higherprimarydepletion(lowerpressure)increases
gassaturation
Highgassaturationdecreasesoilrecovery
Wellspacing
Tighterwellspacingisbetter
IncreasesEa andEv
accelerateswaterfloodrecovery
Patternselection
BalancedpatternsimproveEa andWORperformance
Page 36
Waterflood Recovery Potential

Shouldrecoveranadditional10%to40%of
thereservoirOOIP
Atermcommonlyusedisthesecondaryto
primaryratio(S/P)
Primaryistheexpectedultimateprimaryoil
recovery
Secondaryistheincrementalwaterfloodrecovery
S/Pratioof1+isgenerallyexpected
Page 37
Types of Oil Reservoirs More

Favorable for Waterflood
Shallowerisbetter
Cheaperdrillingandoperatingcosts
Typicallylowerprimaryrecovery
Lowenergyoil(lowBo)
Lowerprimaryoilrecovery
Lowergassaturation
Higherpermeabilityisbetter
Processthewaterfloodfaster
Mayutilizewiderwellspacing(cheaper)
Page 38
Unitization for Waterflooding

Maybeneededwhenreservoirunderlies
differentleaseswithdifferentownership
Awaterfloodunitcombinestheleasesintoa
commonentityforwaterfloodoperations
Allowsformoreefficientdevelopmentand
operation
Maximizesoilrecovery
Requiresanequityformulatoproperly
compensateallowners
Page 39
Unitization Example
Lease A
Lease B
Lease C
producing well (8)

Page 40
Unitization in Texas
Legal Perspective
Page 41
Atermfrequentlyusedinterchangeablywith
Pooling,butmoreproperlyusedtodenominate
thejointoperationofallorsomeportionofa
producingreservoir asdistinguishedfrom
pooling,whichtermisusedtodescribethe
bringingtogetherofsmalltractssufficientforthe
grantingofawellpermitunderapplicable
spacingrules.
Williams&Meyers,ManualofOilandGas
Terms
Page 42
UnitizationDOESNOTrequireapprovalofthe
TexasRailroadCommission.
PrivateUnits
SayNoBoundaries
Page 43
Commissionapprovedunitsmustcomplywith
TexasNaturalResourcesCodeChapter101
titledCooperativeDevelopment
Statutefirstpassedin1949
NotUpdated
Page 44
UnitAgreement
NegotiatingtheEquityFormula
blueeyedgrandchildren
UnitOperatingAgreement
Page 45
Page 46
Page 47
Page 48
Page 49
RailroadCommissionRequirements
65%RoyaltyInterestSignUptotheUnit
Agreement
85%WorkingInterestSignuptotheUnit
Agreement
TheTwentyQuestions
Allinterestownersofferedtoparticipateonthesame
yardstickbasis
Page 50
1. Personsenteringintoandsubmittingagreementownor
controlproduction,leases,royaltyorotherinterestsin
samefield.
2. Agreementwasvoluntarilyenteredinto(a)toestablish
pooledunitsforsecondaryrecoveryoperations,or(b)to
establishpooledunitforconservationandutilizationofgas.
3. AgreementisnecessarytoaccomplishpurposesinNo.2.
4. Suchagreementisininterestofpublicwelfareas
reasonablynecessarytopreventwasteandpromote
conservation.
5. Rightsofallownersinfield,whethersigningornot,willbe
protected.
Page 51
6. Estimatedadditionalcostwillnotexceedvalueof
additionaloilandgas.
7. Otheravailablemethodsinadequate.
8a.Areacoveredcontainsonlysuchpartoffieldas
reasonablydefinedbydevelopment.
8b.Theownersofinterestintheoilandgasundereach
tractwithinareareasonablydefinedbydevelopment
havebeengivenopportunitytoenterintosuch
agreementonsameyardstickbasisasownersof
interestsinoilandgasinothertractsintheunit.
9. Unitdescribedinunitagreementsufficientto
accomplishpurposesofUnitizationAct.
Page 52
10. Suchagreementissubjecttoanyvalidorder,rule,orregulationof
theCommissionrelatingtolocation,spacing,proration,
conservationorothermatterswithintheauthorityofthe
Commission.
11. Suchagreementdoesnotattempttocontainfieldrulesforthe
areaorfield.
12. Suchagreementdoesnotprovidefornorlimittheamountof
productionofoilorgasfromtheunitproperties.
13a.Suchagreementdoesnotbindanylandowner,royaltyowner,
lessor,lessee,royaltyinterestowneroranyotherpersonwho
doesnotexecutesame,butbindsonlythepersonswhoexecute
it.
13b.Nopersonhasbeencompelledorrequiredtoenterintosuch
agreement.
Page 53
14.Suchagreementdoesnotprovidedirectlyorindirectlyfor
thecooperativerefiningofcrudepetroleum.
15. Suchagreementdoesnotprovideforthecooperative
refiningofcrudepetroleum,condensate,distillateorgas,
oranybyproducethereof.
16. Suchagreementisnotavoluntaryagreementforthejoint
developmentandoperationofjointlyownedproperties.
17.Suchagreementdoesnotrestrictanyoftherightswhich
personsnowhavetomakeandenterintounitizationand
poolingagreements.
18a.Suchagreementdoesordoesnotprovideforthelocation
andspacingofinputwellsandfortheextensionofleases
coveringanypartoflandscommittedtotheunit.
Page 54
18b.Nosuchagreementshallrelieveanyoperatorfrom
theobligationtodevelopreasonablythelandsand
leasesasawholecommittedthereto.
19.Agreementmayprovidethatthedrygasafter
extractionofhydrocarbonsmaybereturnedtoa
formationunderlyinganylandscommittedtothe
agreement.
20.Whenitappearsfromsuchagreementorotherwise
thatownershipofanylandsorpropertiesdescribedin
suchagreementisanypartyorpartiesnamedin
Sections2and3ofsaidAct,therequirementsofsaid
SectionsofsaidActshouldbecompliedwith.
Page 55
HouseBill100 Taylor
OilandGasMajorityRightsProtectionAct
ProposedChapter104ofTNRC
CompulsoryUnitization
70%RoyaltyInterestSignUp
70%WorkingInterestSignup
Appliesto
Repressuring
Waterflooding
PressureMaintenance
Tertiaryrecoveryoperations
Anyothersimilaroperations
Commissionmayinvestigatethesoundnessoftheequityformula
(remembertheblueeyedgrandchildren)
Page 56
Unit Tract Participation Factors - Example
Tract
Lease
Phase I
Tract
Participation
0.100
Surface
acres
0.400
OOIP
MSTB
TOTAL>
1.000
0.400
current
BOPD
0.100
useable
wells
Lease 'A'
0.28149773
200
2,100
31
Lease 'B'
0.28827399
100
1,600
52
Lease 'C'
0.43022828
220
2,500
74
TOTALS
1.00000000
520
6,200
157
21
Page 57
Lease 'A' Ownership
Owner
NetRev.
Interest
Tract
Participation
Unit
Ownership
GoodOperating,Inc.
0.750000
0.281498
0.211123
JohnGeologist
0.050000
0.281498
0.014075
JamesFarmer
0.120000
0.281498
0.033780
EdithFarmer
0.080000
0.281498
0.022520
1.000000
0.281498
Page 58

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Waterflooding

A Tried and True Technique for

Brian R. Sullivan, P.E

William M. Cobb & Associates, Inc.

How Does a Waterflood Work?

William M. Cobb & Associates, Inc.

Bulk Volume Calculations

Calculating Original Oil in Place (OOIP)

William M. Cobb & Associates, Inc.

Calculating Original Oil in Place (OOIP)

William M. Cobb & Associates, Inc.

Calculating Original Oil in Place (OOIP)

William M. Cobb & Associates, Inc.

Formation Volume Factor (Bo)

Calculating Original Oil in Place (OOIP)

Sw = average water saturation, fraction pore volume

William M. Cobb & Associates, Inc.

William M. Cobb & Associates, Inc.

So once weve calculated

William M. Cobb & Associates, Inc.

So once weve calculated

William M. Cobb & Associates, Inc.

The Amount of Recoverable Oil Depends on the

Why would you need to waterflood?

William M. Cobb & Associates, Inc.

How does a waterflood work?

William M. Cobb & Associates, Inc.

William M. Cobb & Associates, Inc.

producing well (21)

William M. Cobb & Associates, Inc.

producing well (8)

William M. Cobb & Associates, Inc.

producing well (8)

William M. Cobb & Associates, Inc.

5-Spot Waterflood Pattern

A single 5-Spot pattern has:

William M. Cobb & Associates, Inc.

William M. Cobb & Associates, Inc.

William M. Cobb & Associates, Inc.

William M. Cobb & Associates, Inc.

William M. Cobb & Associates, Inc.

A waterflood also works in the

William M. Cobb & Associates, Inc.

William M. Cobb & Associates, Inc.

Oil reservoir with eight layers . . . . .

William M. Cobb & Associates, Inc.

. . . . . with variable permeability.

William M. Cobb & Associates, Inc.

Waterflood early time

William M. Cobb & Associates, Inc.

Waterflood at water breakthrough

William M. Cobb & Associates, Inc.

Waterflood late life, near abandonment

William M. Cobb & Associates, Inc.

William M. Cobb & Associates, Inc.

Factors Affecting Waterflood Success

Waterflood Recovery Potential

Types of Oil Reservoirs More

Unitization for Waterflooding

producing well (8)

William M. Cobb & Associates, Inc.

William M. Cobb & Associates, Inc.

William M. Cobb & Associates, Inc.