Candidate Evaluation and Selection


Criteria

There are seventeen Tensleep wells that could be treated with a polymer gel. In order to select the best well for treatment, the following criteria are proposed:

  1. It should be evident that fractures contribute the water, preventing adequate oil recovery from the matrix. This could be evidenced by high AOF potential, along with increased oil cut with increased drawdown.
  2. The well should be producing at a low percentage of its absolute open flow potential (AOF).
  3. There should be adequate oil-in-place to pay out the treatment.
  4. The candidate well should be an active producer with good baseline production to quantitatively evaluate treatment results and minimize expenditures on production equipment.



Candidate Well Review

In order to obtain the data required to rank the candidate wells, a detailed log analysis study was undertaken on each well. The available electric and porosity logs were digitized through the Tensleep at a one-foot interval. Water saturation was calculated on a per foot basis. Effective porosity was also calculated. Net pay sand was determined using an 8% density porosity cutoff and a 70% water saturation cutoff. Using these porosity, net thickness, and water saturation values, a unit STBO in place per acre was calculated for each well. This number seemed to correlate well with the well's cumulative production, considering the time that the well was drilled and produced.

Existing production data was analyzed to determine the well's absolute open flow potential. This number was compared to the well's current production rate to estimate the degree of draw down for each well.

Table 1. Candidate Well Data

Well

Casing Size

Status

BOPD

BWPD

OOIP Per Acre

AOF

Current% AOF

43TpX10

7

FL 12/99

0.4

413

16,936

3,492

12

43-2TpX10

7

P

12

1546

3,624

1,945

79

44-1TpX10

5 ½

FL 12/99

0.5

1101

14,868

6,431

17

46TpX10

7

SI 7/96

6.5

4275

3,537

6,360

67

51TpX10

7

SI 8/87

0.3

2230

 

3,492

64

52-1TpX10

9 5/8

TA

0.3

5500

 

6,360

86

53TpX10

7

SI 6/97

13.3

1596

 

3,492

46

54TpX10

7,4½

SI 9/99

0.2

372

30,138

5,844

6

55TpX10

5 ½

P

13.9

2154

20,556

2,853

75

56TpX10

7

P

12.0

4745

44,830

5,560

85

62TpX10

7

SI 9/96

14.6

5490

16,614

9,825

56

63TpX10

7

P

18.5

8834

4,298

9,799

90

72TpX10

7

SI 2/00

5.5

1505

6,677

3,322

45

73TpX10

7

P

11

4600

6,996

6,124

75

74TpX10

7

PA

 

 

 

 

 

75TpX10

7

P

26.7

7331

 

9,825

75

76TpX10

7

P

18.5

7416

21,342

9,850

75



Candidate Well Selection

Based on the above data, a rough economic evaluation was performed for each well. It was assumed that the well could produce the oil projected at a pumped off condition and that the water could be reduced by 50%. The cost of the work was estimated to be $60,000 for each well. The wells were assigned points based on their relative rank for each of the selection criteria. Thus, the well with the lowest score is the best candidate for the treatment. The ranked candidates are presented below.

Table 2. Ranking of Candidate Wells

Wells

Points

Net Present Value

Discounted Payout, Years

63Tpx10

4

$1,549,870.00

0.1

76Tpx10

9

$674,996.00

0.3

53Tpx10

12

$632,845.00

0.3

55Tpx10

19

$452,752.00

0.5

62Tpx10

22

$324,333.00

0.4

43-2Tpx10

22

$403,366.00

0.5

56Tpx10

22

$374,600.00

0.5

75Tpx10

32

$200,617.00

0.7

54Tpx10

33

$232,904.00

0.8

44-1Tpx10

33

$97,966.00

1.6

73Tpx10

35

$172,372.00

0.7

72Tpx10

44

$47,683.00

1.3

43Tpx10

46

$60,831.00

2

46Tpx10

52

($47,824.00)

10

51Tpx10

54

($51,202.00)

10



It was initially recommended that the top three wells be treated. Well 63TpX10 was the top ranked candidate well for the shut-off treatment. However, this well was already selected to test a propellant stimulation technology and therefore was not available for the treatment. Due to limitations in available capital, only one well could be treated. Therefore, Well 76TpX10 was selected for the polymer gel water shut-off treatment.