WOC 1: Exploration & Production of Natural Gas SG 1.2. Difficult reservoirs and unconventional natural gas resources Kamel Eddine CHIKHI Associations Director SONATRACH Moscow Meeting 25-27 September 2006

Study Group Topics Difficult reservoirs and unconventional resources 1. Difficult reservoirs and technologies for their exploration and production (sour gas, HT/HP, Deep Gas (>4,500m, basin center), shallow (<500 m) gas, tight reservoirs) 2. Unconventional resources and technologies for their exploration and production (coalbed methane, gas hydrates, aquifer gas).

Unconventional Reservoirs – A permanent Challenge

Difficult reservoirs – Areas of Concern Study Goals Definitions Definition of difficult reservoirs Sedimentology & Petrology : Depositional environments reconstitution Subsidence & its consequences Diagenesis & diagenetic sequences Natural fracturation : origin & effects on reservoirs qualities Porosity characterization & classification Geomechanics fundamentals Reservoirs Stimulation Exploration technologies Anisotropy assessment : spacial development geometry and distribution of  and k Natural fractures characterization & modeling Microfacies standardisation Seismic attributes as a tool to characterize and predict reservoirs properties Formation evaluation dedicated techniques Flow units characterisation & Multilayers modelling Resources & reserves assessment - Uncertainties quantification Drilling fluids design & wellbore stability HTHP & complex reservoirs testing techniques Production technologies Drainage models & Wells spacing optimization Hydraulic fracturation optimization Reservoir performance modelling Completion of poorly consolidated formation Advanced wells construction : Deviated and horizontal drilling applications Production monitoring & control

Difficult reservoirs Expected results Identification of key technology needs for understanding Difficult Reservoirs Address areas of technology improvements needed to face technical gaps in exploration & production Lower cost of difficult reservoirs development in particular for Play Resources assessment, Subsurface Imaging, Drilling, Well Completion, and Stimulation.

Unconventional Natural Gas Resources Study Goals Definitions & Standardization attempt Definition of unconventional gas resources Standardization of the different categories : Deep & basin centered natural gas, Tight natural gas sands, Shale gas, Coalbed methane, Geopressurized zones, Methane hydrates … Assessment & Outlook Exploration efficiency Assessment of unconventional Gas Reserves & Resources Technically & Economically recoverable UNGR Role of unconventional gas in world supply for mid & long terms Exploration & Production technologies Data (seismic & wells) integrated expert systems Basin scale petroleum systems Sourcing modeling Fracturation assessment & modeling Plays / Reservoirs characterization & modeling Well-log interpretation/petrophysical models for detection of marginal pay Dedicated drilling techniques Wells completion & stimulation : hydraulic, acid … Nanotechnology in reservoirs Monitoring Production Prediction & Optimization Lessons learned for UNGR development & Best practices inventory Cases studies

Unconventional Natural Gas Resources Expected results Review of Definition of what is exactly unconventional gas & propose a classification that, if accepted, can be used in different world regions Update of the Global trends & the role of unconventional Gas Reserves & Resources in world supply Fine tuning Exploration techniques & democratization of dedicated technologies for assessing UNGR Deliver a comprehensive overview of production techniques and best practices overview

Study Group 1.2 Meetings Themes Contribution 3 meetings / year : February, June, October Identify locations for forthcoming meetings – Proposals Themes Questionnaire concerning items to be studied Finalize, prior to next meeting, the list of themes Contribution Build a data base of external experts to be invited to contribute to the study Finalize list of members of the group Technical Secretary of SG 1.2

Unconventional Reservoirs