IHS ENERGY

Presentation
Upstream Consulting

IHS Technical Upstream Consulting Capabilities

2015

2015 IHS

ihs.com

 Core Capabilities

Contents

Approach
References
IHS Team / Key Contacts

2015 IHS

Strength in core upstream technical disciplines for optimizing

oil and gas assets
Technical Upstream Sub-surface Core Consulting Offerings

Reservoir
Engineering &
Simulation
Geology

Integrated
Reservoir
Management
Reserves
Evaluation

Regulatory
Applications
Well Test
Analysis

2015 IHS

Production
Engineering &
Integrated Asset
Management

Our consulting capabilities are predicated on

strength in core E&P disciplines Geosciences,
Reservoir and Production engineering.

We offer some discipline-specific services that

regularly get combined to address more complex
reservoir challenges in a holistic manner.
Additionally, we provide expert witness testimony
in regulatory/legal proceedings and have
developed communities to promote collaboration
between operators to advance development of
certain unconventional plays.

The integration of these disciplines is the strength

of our expertise, resulting in practical and
technically rigorous reservoir management
solutions for clients.
Through this approach we help clients improve
the management of their reservoir assets and
optimize production.
3

Geology

The strength of our expertise lies in the interdisciplinary cooperation between

our geological, petrophysical, and reservoir engineering staff. The integration of
these disciplines produces a practical and technically rigorous reservoir
interpretation.
The geoscience teams interpretation of oil and gas reservoirs incorporates all
pertinent stratigraphic, structural and petrophysical analyses. Gross and net pay
analyses and the areal extent of reservoirs are determined through detailed
correlations of hydrocarbon zones and surrounding strata. The stratigraphy,
lithology, depositional environment, and subsurface structure are assessed. IHS
determines reservoir parameters from petrophysical logs, core analyses,
drillstem tests, seismic data and well completion information. Mapping and
modeling of reservoirs is completed utilizing all available information for a study
area. Geophysical expertise is incorporated as required.

Software used: IHS Fekete Reservoir Engineering Software Suite, gDC MJ

Raster Logs, LogSleuth (MJ Systems), GeoGraphix Discovery, Petrel 2012,
Global Mapper, Oracle Crystal Ball.
Our project list includes:
Petrophysical evaluation
Sequence stratigraphy
Sedimentology
Geochemistry
Static reservoir characterization - 2D and 3D
Probablistic resource assessment
Expert witness
2015 IHS

Reservoir
Engineering &
Simulation

IHS provides an integrated team of reservoir engineers, geologists,

geophysicists, petrophysicists, production engineers, simulation
engineers, and computer specialists. Our results combine static and
dynamic modeling into a comprehensive reservoir model that yields
additional reserves and successful drilling locations.
Simulation projects begin with a detailed review of data quality and a
scoping analysis of data uncertainty. Simulation proceeds only after the
analysis determines that the model is representative of the reservoir,
that it will generate dependable results, and that it is economically
justified.
In addition to its specific suite of services, IHS is often engaged to
investigate unique reservoir situations for which no precedent exists
and the solution path is unclear.
Software: IHS Harmony, Eclipse (Black Oil and Thermal), CMG
(IMEX, GEM, STARS and CMOST).
Our project list includes:
Waterflood design and optimization
Thermal oil recovery
Tertiary EOR schemes
Infill drilling and pool depletion strategies
Shale gas/oil development and optimal well spacing
Coalbed methane
Gas storage
Carbon sequestration
Gas hydrates

2015 IHS

Well Testing & Rate

Transient Analysis

By combining our well test (pressure transient) and advanced decline (rate
transient) analysis services, IHS provides a comprehensive understanding
of reservoirs, completion efficiency, and optimization potential.
Well Testing (Pressure Transient Analysis)

Design and analysis of multi/single point flow and buildup for

conventional and multi-fractured horizontal wells, injection and falloff
(including mini-frac analysis), DST and perforation inflow tests
Determination of near wellbore reservoir parameters (permeability, skin,
fracture parameters)
Estimation of reservoir pressure, distances to reservoir boundaries
and/or heterogeneities
Prediction of deliverability potential at various flowing conditions
Recommend potential stimulation (for damaged wells) or optimization
candidates (utilizing tubing performance curves and liquid lift
calculations)

Rate Transient Analysis (RTA)

2015 IHS

Reservoir characterization (permeability, skin, fracture half-length)

Diagnose changing skin or permeability conditions
Monitor well performance in competitive drainage situations
Monitor productivity to ensure proper production allocation
Analytical and numerical production modeling single zone vertical to
multi-frac horizontal wells
Determination of stimulated reservoir volume, optimal well spacing and
EUR/well for unconventional reservoirs
Proof of tight gas for government tax credits
RTA provides good opportunity to determine reservoir size early in life of
conventional offshore developments.
6

Production
Engineering

Our Production Engineering services complement geological and

reservoir engineering studies by incorporating the practical
aspects of field operations.
Our services include:
Wellbore nodal analysis
Artificial lift; rod pump, plunger lift, gas lift
By-passed pay evaluation
Workover recommendations and programming
Fracture stimulation optimization
Waterflood surveillance
Water disposal
Acid gas disposal
CO2 disposal/sequestration
Blowout rate estimates
Utilize IHS Virtuwell for TPC/AOF calculations.

2015 IHS

Integrated Asset
Management

Using our IHS Piper software, IHS engineers build an integrated model of
downhole and surface assets including:

Reservoirs, including conventional reservoirs, tight and shale reservoirs,

and coal seam gas
Wellbores, including the ability to view inflow curves with outflow curves
and predict when liquid loading will occur
Surface gathering system, including all pipelines with elevation changes,
displayed on a scale

GIS map capable of layering additional shape or image files

Facilities, including compression, separation, dehydration and

refrigeration

The model is tuned to existing conditions and then used to forecast

production from individual wells or at any node in the system. Multiple
production scenarios are evaluated to answer such questions as:

How are bottlenecks in my gathering system impacting bottom line

production?
Where is pipeline capacity available for new well production?
What is the impact of additional compression at my sales point?
How much compression is needed?
When will each well be subject to liquid loading?
How much production can be hedged?
What area of my field has the greatest uplift potential from system
optimization?

IHS has worldwide Integrated Asset Management experience including

multizone systems in Alberta, CBM in Wyoming, high pressure gas in
Pakistan and tight gas in Australia and the USA (Piceance Basin).
2015 IHS

Reserves
Evaluation

IHSs qualified reserves evaluators use our considerable in-house

experience and specialized expertise to truly understand your
reservoirs, to accurately model and forecast production, and to
provide reserves estimates with confidence. We prepare
professional NI 51-101 documents and SEC compliant reserves
reports for Canadian and United States regulators.
We provide a variety of reports including:
Annual corporate reserves evaluations
Individual property reports for acquisition/divestment
Audit of company reserves to satisfy banking requirements
Fair market value appraisals/estate valuations
Submissions to regulatory authorities regarding issues that
require economic evaluations
Assessments of prospective undeveloped lands
Energy pricing analysis and forecasting
As we conduct our review of your wells and properties, we make
recommendations on reservoir management issues which allow
you to:
Increase well density to maximize recovery
Provide alternative pipeline/compressor routes to alleviate
deliverability restrictions
Enhanced recovery techniques
Conduct a pressure buildup test to determine pool
delineation or wellbore damage

2015 IHS

Integrated
Reservoir Studies

Some clients choose to use specific IHS services to augment their

reservoir understanding. Alternatively, we are hired to combine and
coordinate all of IHSs expertise in conducting integrated reservoir
management studies leading to master development plans for
Greenfield or Brownfield developments.
Static 3D Model
Geophysics
Petrophysics
Sedimentology
Stratigraphy
deviation survey,
Wells,
completions and stimulations
Dynamic Model
Geophysics
Petrophysics
Sedimentology
Stratigraphy
properties
Fluid
PVT
properties
Rock-fluid
Static
reservoir
Production datapressure
Reservoir drive analysis
Material balance
Populate 3D model

2015 IHS

Numerical Simulation
design
Experimental
black oil, thermal,
Gas,
compositional simulation
modeling and
Stochastic
production forecasting
Economic Analysis
evaluation
Economic
assessment
Risk
tree analysis
Decision
Monte
Carlo

10

IHS Energy
Unconventional
Community of Best
Practice

A collaborative environment to accelerate understanding and

improve performance in specific unconventional oil and gas plays.
IHSs Community of Best Practice is a cooperative environment where
companies learn about reservoir behavior and well performance. Each
community represents an active unconventional play. Community members
have access to a growing body of knowledge that includes raw completion
and production data plus well test analyses completed by our experts .
By sharing well data and following a common methodology for interpretations,
community members gain valuable information on well performance, and
improve their understanding of plays in order to best develop resources.

Workshops with clients are conducted twice per year, RTA primary analysis tool.
Communities:
1.

2.

3.

4.

5.

2015 IHS

Eagle Ford Carrizo, Conoco, Talisman, Pioneer, Murphy, Newfield, EP

Energy, Freeport McMoran, Statoil, Hunt, Shell, Marathon

Bakken Conoco, Hess, Whiting, WPX

Montney Birchcliff, Murphy

Duvernay under development

Permian - tentative

11

 Core Capabilities

Contents

Approach
References
IHS Team / Key Contacts

2015 IHS

12

Our team can

tackle a wide
variety of projects

The list below is for illustrative purposes

only. We would need to discuss your
requirements and priorities to develop a
mutually agreed, fit-for-purpose project
scope.

Develop detailed static models

to assess effectiveness of
depletion strategy.

Rectify specific, high priority

(impact) operational
subsurface and surface
issues.

Evaluate production/operations
history and identify potential
operational improvements.

Review current production

plans and recommend
improvements to enhance
effectiveness.

Conduct reviews to advise on

field development practices
(e.g., horizontal drilling in tight
reservoirs, reservoir souring,
water encroachment, etc.).

2015 IHS

Optimize proposed Warra field

waterflood project design.

Assess causes and

technological improvements to
optimize performance of
injection and treating facilities.

Develop surveillance programs

to facilitate improved analysis
of reservoirs exhibiting
abnormal performance.

Advise on planned seismic

programs and support
interpretation.

13

Tactical or strategic inter-related paths to reservoir

performance improvements
Reservoir performance improvements can be
achieved through a combination of tactical and
strategic approaches , though the characteristics of
each do differ:

Generic Reservoir Production Curve

1) Tactical Operational Improvement:

Resolve subsurface and/or surface issues well
production/injection, safety, operating costs.

Rate, q

Actual production history

Step-change
transformation in
reservoir performance

Low capital investment

Near-term implementation (< 3 months)

Incremental production increase

2) Strategic Reservoir Management:

2

Abnormal production
performance deviation
indicative of operational issue

Cumulative Production
Legend

2015 IHS

Actual

Trend Decline

Theoretical Decline

Potential Forecast

Quick hit
performance
improvement

Improved reservoir
management

Optimize reservoir development and recovery.

Typically a more significant capital investment

Intermediate implementation (6 to 18 months)

Sustained, step-change improvement in

production and/or recovery efficiency
(reserves)

Regardless, the starting point is always a review of

historical production and current development plans
and forecasts.
14

IHS generally takes a two-pronged

approach where we diagnose operational
issues in tandem with a more detailed
review of the reservoir.

A two-pronged
approach to field
optimization

IHS Approach to Integrated Reservoir Studies:

1. Current
State
Assessment

1.

Current State
Assessment:
Develop a solid
understanding of the
field/reservoir in question
through a current state
review of operational
performance and existing
geologic/reservoir
interpretations.

2015 IHS

2.

2. Operational
Troubleshooting

3. Reservoir Management

Operational
Troubleshooting (OT):
Define and mitigate
surface and downhole
operational issues that
negatively impact one or
more of the following:
productive capacity, safe
operations or economic
performance.

3.

Reservoir Management
(RM):
Optimize reservoir
development and
depletion strategies to:
maximize reserves
recovery, improve
production and overall
field economics.

15

Operational Troubleshooting delivers quick win

improvements and the analysis informs the reservoir
interpretation
Phase 2 - Operational Troubleshooting (OT) Approach*:

Outcomes

Key activities

A. Field Review

B. Problem-specific
Analysis

C. Solution Design

D. Solution
Implementation

Conduct review sessions (field

visit) with engineering and
operations personnel to identify
pressing operational issues
Surface and downhole
issues
Collect relevant operations
performance measures (fluid
rates, pressures, costs, etc.)
Compare actual performance
with typical operating
parameters
Identify likely causes
(hypotheses) related to
performance issues

Assess pool/well decline profile

and EURs (or leverage from
Phase 3 RM)
Conduct workshop with crossfunctional team to fully diagnose
problems
Scope costs/benefits of problem
resolution (e.g., production
increase, reserves, opex/capex)
Prioritize improvement
opportunities based on scoping
economics and constraints
Perform root-cause analysis of
high priority problems and
develop solution hypotheses

Engage relevant expertise to

inform specific problem solution
design
Develop solution options
Test solution(s) in lab or field
pilot
Refine solution design based on
test results
Update economic analysis
(costs/benefits) associated with
large scale solution
implementation
Define recommended
improvement program
Solicit management approval for
recommended program

Operational performance gap

analysis (actual vs. typical)
Preliminary list of opportunities
and root-cause hypotheses

Prioritized list improvement

projects
Root cause analysis and
preliminary solution hypotheses

Solutions for individual

Monitoring program and expected
operational issues
operations performance standards
Approved improvement program Improved well/pool/facility
for large-scale implementation
performance

2015 IHS

Develop surveillance program

(data collection and testing
requirements) to monitor
performance
Implement solutions
Monitor well/pool/facility
performance
Assess effectiveness of
implemented solutions compared to
historical and typical parameters
(ongoing)
Continuously improve solution
design based on operational
feedback and new technology
advancements (ongoing)

*Note: Generic approach is customized to reflect fit-for-purpose analysis according to project scope and the level of detail required by a given client..

16

Reservoir Management provides detailed insight into past/future

performance and opportunities to optimize recovery efficiency

Phase 3 Reservoir Management (RM) Approach*:

Outcome
s

Key activities

A. Pool Performance
Assessment

B. Geologic Review**

C. Reservoir Analysis**

Quality assure data, analyze

individual well performance
production history, decline trend and
EUR
Review field drilling, completion and
development history
Assess pool decline profile in
consideration of reservoir drive
mechanism
Assess impact/effectiveness of
historical depletion strategies and
operational improvements
Identify preliminary reservoir
development hypotheses

Review regional setting and pool

depositional history
Review and quality assure petrophysical,
seismic and core data (as available)
Generate cross-sections
Develop basic maps to characterize
reservoir structure, thickness, porosity-net
pay, etc.)
Estimate OOIP based on volumetric
calculations and/or Monte Carlo simulation of
reservoir parameters
Refine geologic interpretation base on
results of Reservoir Analysis and acquired
new data

Qualitative assessment of field

performance
Production forecasts, decline rates
and EUR (well/field)

Geologic interpretation
Basic reservoir material balance model
Original oil-in-place estimate (OOIP)
Reservoir development projects
Actual (to-date) and expected recovery factor Detailed reservoir study scope
based on OOIP and EUR trend analysis

2015 IHS

Evaluate key reservoir data, including: PVT

properties, production/injection volumes, pressure
history, capillary pressure, relative permeability from
special core analyses
Material balance analysis (simple models) for OOIP
Calculate reservoir voidage and voidage
replacement ratio (waterfloods)
Evaluate reservoir pressure trends and impact to
recovery
Assess reserves and generate forecasts
Identify opportunities for enhancements to
development plans (e.g., infill drilling, well
recompletion, secondary recovery, etc.)
Scope economics of recommended reservoir
development projects and review with management
Determine need for and define focus/scope of
detailed reservoir study
Refine interpretation based on newly acquired data

*Note: Generic approach is customized to reflect fit-for-purpose analysis according to project scope and level of detailed required by a given client.
**Note: Although the Performance Assessment, Geologic Review and Reservoir Analysis are depicted in a linear sequence, they actually are concurrent.

17

Reservoir Management Approach contd

Phase 3 Reservoir Management (RM) Approach:

Outcomes

Key activities

D. Detailed Reservoir Study

2015 IHS

E. Implement Development Recommendations

Develop 3-D geologic model that includes a detailed reservoir facies

description plus areal and vertical distribution of porosity, water
saturation, permeability and pay thickness
Generate detailed maps facies, structure, thickness, porosity, and net
pay
Identify reservoir compartments
Integrate reservoir analysis (results of decline and material balance
analysis (with geologic model and refine the geologic interpretation;
establish parameters for reservoir modeling grid size, orientation, etc.
Build static 3-D model of reservoir geometry
Develop and initialize model for numeric reservoir simulation upscale
3-D model, import data (fluid properties, pressures, etc.)
Refine model to develop history match
Evaluate existing development plan and proposed changes
Forecast production/reserves, estimate costs and scope economics of
proposed changes
Review changes in development plan with management and solicit
approvals for investment

Design details associated with approved reservoir

development projects
Develop surveillance program (data collection and testing
requirements) to monitor reservoir performance
Implement development program; generally introduce
changes in a staged sequence
Conduct lookback on development projects; assess actual
vs. forecast performance
Refine reservoir and geologic models and interpretations
with acquired new data
Continuously improve depletion plan, well design and
production configuration based on operational feedback and
new technology advancements (ongoing)
Troubleshoot operational issues as needed (Phase 2 OT)

3-D geologic model (detailed reservoir characterization)

Reservoir simulation model (detailed interpretation)
Recommended development plan with scoping economics

Monitoring program and expected reservoir and operations

performance standards
Improved well/pool/facility performance

18

 Core Capabilities

Contents

Approach
References
IHS Team / Key Contacts

2015 IHS

19

A cross-section of recently completed field development and

reservoir evaluation projects

Field Development

Project
Type

2015 IHS

Client Name

Year

Country/Area

Project Description

Independent

2012

Tunisia/Offshore

Independent

2012

Tunisia/Remada
Sud

Major IOC

2012

Egypt/Nile Delta

Confidential

2012

Nigeria/Niger Delta
OMLs 30, 34 and
42

Listed AIM Company

2012

Kurdistan/New
Discovery

Reservoir simulation and risk assessment for go/no-go

decision on offshore field development plan.
Field development plan for horizontal well development of
low permeability sands and presentation of results to
Tunisian government.
Construct an Integrated Asset Model (IAM) of a gas field in
Egypt.
Prepare Master Development Plan complete with reservoir
management and workover recommendations to optimize
production rates and ultimate hydrocarbon recovery for 3 bid
blocks.
Initial well test analysis and reservoir feasibility study on
newly discovered reservoir.

Multinational Producer
(confidential)
Confidential

2012

Canada/ Alberta

Development study for new play concept in tight carbonates.

2012

Iraq

Confidential IOC

2013

Argentina

Developed detailed cost models and developed risk

uncertainties for new investment into Iraq. Reviewed drilling
programs and geological formations.
IHS provided a comprehensive assessment of prospectivity
and resource potential in the Vaca Muerta formation of the
Neuqun Basin and other secondary targets

Asian NOC

2013

Tanzania

Technical evaluation of joint venture opportunity on

exploration block, offshore Tanzania.
20

A cross-section of field development and reservoir evaluation

projects contd

Expert
Witness

Heavy Oil

Asset Evaluation

Project
Type

2015 IHS

Client Name

Year

Country/Area

Project Description

Confidential

2013

Independent

2012

Nigeria/Niger Delta
OMLs 52, 53, 55, 83 &
85
Papua New Guinea

Confidential

2013

Canada/ Montney
Shale

International E&P
Company

2010

Brazil/Offshore

Private Equity

2014

Canada

International E&P
Company

2012

Canada/Alberta/Peace
River

Canadian Oil
Sands Producer

2012

Canada/ Alberta/
Oilsands

Model methane injection well performance for repressurization of gas zone overlying bitumen.

US Department of
Justice

2013

Gulf of Mexico

Technical evaluation and expert witness testimony on the spill

volume from BP Macondo blowout.

Technical evaluation of reserves, prospects and production

forecasts. Economic analysis in support of acquisition bid.

Evaluation of exploration concessions in Papua New Guinea

for acquisition.
Extensive evaluation of historical shale gas production
performance using RTA technology to characterize hydraulic
fracture effectiveness and optimal well spacing in support of
gas supply to contemplated LNG project.
Evaluation of 3 offshore blocks.

Technical evaluation of operations and reserves of Canadian

SAGD company for financing offering.
Acquisition evaluation of cold heavy oil production.

21

1) Waterflood Simulation Study North Sea

Initial situation
A client developed a thin, high permeability offshore oil accumulation in
North Sea. The water-cut was increasing, and they asked IHS to investigate
if water production would plateau
The static model was built by a third party with detail geological study, the
client also asked IHS to evaluate the geomodel, and come up with a solution
to upscale the model and honor the properties in the model

What IHS Consulting did

The water saturation profile from Petrophysist were evaluated to find any
trends exists, and how to represent them in the dynamic model
Production performance analysis was conducted to find any relationships
with operations
RCA & SCAL data were evaluated to establish the permeability-Porosity
Transform, and rock-fluid properties
PVT data were evaluated for simulation purpose
Water oil contacts and aquifer strength evaluation

Impact
Study results indicate that the water saturation profile could be matched by a
capillary pressure curves, which honors the petrophysists results, while
initializes the model with equilibrium to ensure the runs are stable
The geomodel is built reasonably good to capture the special features, such
as shale or poor quality rock
Simulation results indicated that the rise in water cut was a result of cusping
of the underlying water. However, further increase in water-cut was
dependent on expansion of the surrounding aquifer associated with only a
slow increase in water-cut and good oil recovery effect on field production
performance.
2015 IHS

22

2) Waterflood Simulation Study Montney 200+ Hz Wells

Initial situation
The client has developed a low permeability light oil reservoir using
horizontal wells at small well-spacing. The water cut had increased
prematurely
The client asked IHS to investigate the reasons for the increased water-cut
and feasibility of expansion of the waterflood

What IHS Consulting did

Static and dynamic simulation models were built
History matching was conducted to investigate parameters that could
explain the premature rise in water-cut
The laboratory work was reviewed to investigate the compatibilty of the
injected water with the formation
The workover and production data were reviewed to investigate any
indications of wellbore collapse
2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

Field Oil production rate

700

100
300
400
600
500 [sm3/d]
700
[sm3/d],
Liquid200Flowrate

Symbol legend

600

PRDINJ20111102Observ ed 1
BaseCase2Krw S6_2_2_2Kro_21
BaseCase2Krw S6_2_2_2Kro_21_RS
BaseCase2Krw S6_2_2_2Kro_21_RS1
BaseCase2Krw S6_2_2_2Kro_21_RS2_3

500
400
300
200
2400000
1600000
800000

4000000
3200000

PRDINJ20111102Observ ed 1
BaseCase2Krw S6_2_2_2Kro_21
BaseCase2Krw S6_2_2_2Kro_21_RS
BaseCase2Krw S6_2_2_2Kro_21_RS1
BaseCase2Krw S6_2_2_2Kro_21_RS2_3

3200000

2400000

Field Oil production cum ulative

Symbol legend

Liquid Production Volume [sm3], [sm3]

4000000

1600000

100

800000

Impact

2000

2002

2004

2015 IHS

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

History matching required introduction of either extreme heterogeneity or

small effective wellbore length
Review of the laboratory work indicated incompatibility of the reservoir shale
with the injected water
Review of the workover and production data showed many of the wells with
openhole completion had collapsed, leading to low effective wellbore length
and poor sweep efficiency
Forecasted simulations showed low oil recovery, unless a larger portion of
the horizontal wells were made effective. A change in completion technique
was recommended for the waterflood expansion area

23

3) Waterflood Simulation Study Carbonate Reservoir

Initial situation
A client, operating a light oil reservoir in Alberta, asked IHS to determine the
optimum waterflood pattern to maximize oil recovery and mitigate water
breakthrough,
Identify optimal location for new development wells, and calculate the
projected VRR schedule
The reservoir was initially under solution gas drive until water injection
commenced. The cumulative VRR was below 1.0

What IHS Consulting did

A model was built using the structure/porosity/net pay/water saturation maps
The model was calibrated by matching the primary and water flood
production periods

Then, the calibrated model was used to evaluate the effect of infill drillings
and additional water injection on cumulative VRR and Recovery Factor

Impact
Simulation results indicated the water flood was not effective
A secondary gas cap was created throughout the reservoir during the
course of water flood
The largest uncertainty existed on the geological models which was subject
to further investigation

2015 IHS

24

4) Waterflood Design Tunisia Offshore Oil

Initial situation
A client asked IHS to come up with a development plan for an multi-sand
under-saturated offshore reservoir with a small edge aquifer in Tunisia. The
client wanted to know I) the optimized well location and number of wells, II)
the effects of uncertain subsurface parameters, and III) optimum operating
strategies

What IHS Consulting did

IHS conducted a detailed evaluations on DST and RFT measurements to
estimate the permeability, and water-oil contact
RFT, Shale Gouge Ratio, and fault throw were evaluated to identify
possibility of the open or sealed faults, which has a significant effect on
water injection
Available PVT measurements were evaluated to estimate fluid properties
Different injector/producer combinations as well as operating strategies
were simulated to optimize the development plan
The effect of uncertain subsurface parameters on filed performance were
investigated

Impact
The study showed that the reservoir fluid is an under-saturated
Fault tansmissibility (the fault is open or sealed) is the biggest uncertainty. It
has the largest effect on field production performance
The continuity of the sand body is another uncertain parameters, which
affect the well spacing and producer/injector locations
A development plan that met the economic requirements was developed
considering these 2 big uncertain parameters

2015 IHS

25

5) Waterflood Pilot Design Cardium Oil

Initial situation
A client in Alberta asked IHS to examine the waterflood potential of a tight oil
formation with permeability in the range of 0.1 to 2 mD

The effect of well-spacing and completion techniques were of interest as

well

What IHS Consulting did

The primary production of a typical horizontal well was calibrated , and the
base-case properties were evaluated
The 4 well per section cases were compared between primary and
waterflood
The 8 well per section was compared, and tried to find the optimized well
spacing

For the final well spacing and fracture parameters, effects of permeability
and other uncertain parameters were investigated

Impact
Simulation results suggested that a significant improvement can be obtained
by waterflooding
For the range of permeability, down spacing to 8 well per section will not
lead to interference, and the results are not very sensitive to the completion
parameters within the range of investigation
An optimal well spacing was recommended to the client with the
consideration of the risk factors, such as, matrix permeability, fracture half
length, and different completion techniques

2015 IHS

26

6) Waterflood Simulation Study Doe Creek Oil Pool

Initial situation
A client was interested to conduct a simulation study to understand I)
reservoir performance under GPP, II) effect of water injection on oil
recovery, and III) the effect of additional gas cap production

What IHS Consulting did

A 3-D Geocellular model was built based on the structure maps, gross
thickness, and NTG provided by client,
The model was calibrated by matching the primary production to investigate
any necessary modifications should be made to the model
The effect of water injection on the production performance and it feasibility
were evaluated

Impact
Simulation results indicate that most of the investigated scenario are not
favor for water flooding, only one scenario could result in an enhanced
recovery of 13 %
The advantage of water flooding over primary depletion is not strong due to
a gas cap exists

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27

7) Waterflood Design Lloydminster Oil Pool

Initial situation
A client was interested to conduct a simulation study to understand I)
reasons for high GOR in some wells, II) the ultimate primary recovery factor,
III) effect of water injection on oil recovery, and IV) the size of the pool

What IHS Consulting did

A 3-D Geocellular model was built based on the structure maps, gross
thickness, and NTG provided by client
The model was calibrated by matching the primary production
The effect of water injection on the production performance and its feasibility
were evaluated

Impact
Simulation results indicate that the high GOR in some well is caused by
secondary gas cap, of which, free gas was migrated to a structure high area
The recovery factor of the AS-IS case is 2.4 %, full primary development
5%, and recovery factor under water flood is about 7 %, which is not a good
candidate for water flooding

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Carbonate
Reservoir
Development

Depositional Environment
Examples:
Reefs

Oolite shoals
Onshore and near-shore
deposits similar geometries
as clastic systems
Carbonate Ramps (mixed
with clastic beds)
Transgressive Carbonate
Shelf Deposits
Carbonate-Evaporite
Sabkha Deposits

Deep Water Deposits

2015 IHS

The depositional environment and diagenesis

control or influence the fabric and
characteristics of the rock; grain size,
porosity, permeability, tortuosity, wettability,
heterogeneity, irreducible oil and water
saturations
Diagenesis
Result of groundwater flow
through existing permeability
Can enhance or destroy
limestone/dolomite porosity
and permeability
Severe porosity infilling can
compartmentalize pool

Tectonics
Fault throws can
compartmentalize pool
Severe tectonics can
enhance fracture
permeability but may destroy
seals

Heterogeneity
Increases uncertainty in rock
property values (A, h, , Sw)
and OOIP estimates.
Handled with Monte Carlo
Simulation.
Can affect well productivity
and may increase reservoir
compartmentalization.
Use logs, core and
geological analogs integrated
with well test methods (PTA
and RTA), analysis of well
production and material
balance to describe reservoir
internal geometry.
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IHS staff have assessed carbonate reservoirs

producing gas and oil under solution gas
drive, gas cap expansion, aquifer pressure
support and waterflood.

IHS Carbonate
Experience

We have also evaluated carbonate reservoirs

for CO2/H2S sequestration.

Swan Hills Carbonate Bank

Deposits Alberta Soln gas
drive and aquifer pressure
support
Swan Hills Kaybob Field Alberta
CO2/H2S disposal well
evaluation

Progress Field Boundary Lake B

Pool Alberta Waterflood
Optimization
Mississippian Platform Subcrop
Southern Alberta Gas storage
reservoir: characterization,
geocellular modeling and
simulation

Devonian Reefs Central and

Northern Alberta Soln gas
drive, gas cap expansion and
aquifer pressure support

Mississippian Thrust Belt

Fractured Carbonates - Alberta
Foothills primary gas expansion

Nisku Formation Carbonates

Alberta Soln gas drive

Slave Point Carbonate Alberta

Waterflood Evaluation

Mississippian Platform
Carbonates SE Saskatchewan
Soln gas drive and waterflood

Mississippian CarbonateEvaporate Deposits SW

Manitoba Soln gas drive and
waterflood

Pouce Coupe Boundary Lake B

Pool Alberta Waterflood
Evaluation

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Fractured Carbonates Iran Gas cap injection

Druhma massive, shallow-marine

(shoal) limestone Kharg Island,
Iran CO2/H2S disposal well
drilling and completion programs

Permian Basin - Texas Multiple

CO2/H2S disposal well aquifer
evaluations

Devonian gas exploration West

Texas

Abenaki Formation Carbonate

Platform Margin Deep Panuke
offshore Nova Scotia gas
development

Aguathuna peritidal, shallow

marine carbonates West
Newfoundland Wildcat Oil
Exploration and Development

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 Core Capabilities

Contents

Approach
References
IHS Team / Key Contacts

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If you have any questions or would like additional

information and references , please feel free to contact:
Ray Mireault, Senior Principal Engineer, Upstream Consulting
Calgary, Canada
Ray.mireault@ihs.com

Mohammad Tavallali, Principal Reservoir Engineer, Upstream Consulting

Calgary, Canada
Mohammad.tavallali@ihs.com

Nick Sharma, Managing Director, Upstream Research & Consulting, Head APAC
Singapore
nick.sharma@ihs.com

IHS Customer Care:

Americas: +1 800 IHS CARE (+1 800 447 2273); CustomerCare@ihs.com
Europe, Middle East, and Africa: +44 (0) 1344 328 300; Customer.Support@ihs.com
Asia and the Pacific Rim: +604 291 3600; SupportAPAC@ihs.com
2015 IHS. No portion of this report may be reproduced, reused, or otherwise distributed in any form without prior written consent, with the exception of any internal client distribution as may be permitted in the license agreement between client and IHS.
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