Hydraulic Fracture Optimization Study Goals: Understand relationships between fracture design and economics: History match previous fractured wells understand field wide matrix permeabilities and fracture lengths Understand importance of dimensionless conductivity Fracture conductivity - variable Fracture length

Goals: Design fractures that yield optimal production profiles Optimal economic fracture conductivity and length Include safety factor for uncertain matrix permeability Post Fracture Analysis

350 Acre Single Well Hydraulic Fracture Grid

Pressure Profile For 50 foot Hydraulic Fracture

Effect of Fracture Conductivity No effect over 100 fold difference in Kf*H

Effect of Fracture Length Large Influence – 0 versus 50 versus 100 feet

Effect of Under Designing Fracture in Good Perm. Area Production losses smaller For 600 versus 1200 foot fracture half length Production acceleration reduced

Effect of Under Designing Fracture in Low Perm. Area Production losses larger For 600 versus 1200 foot fracture half length 20% lost reserves at year 5 Production acceleration greatly reduced

History Match of Post Fracture Production Include tubing curves to match tubing pressures Needed because no bottom hole buildup data

History Match of Post Fracture Production Match tubing pressures

Predictive runs - 17- 20% recovery factor in 10 years

Hydraulic Fracture Optimization Study Conclusions Fracture conductivity not important Fracture length critical to design Fracture length should be overdesigned unless matrix perm known with certainty because: Production acceleration losses are large Reserves lost – 20% over 5 years