Production Analysis of Western Canadian Unconventional Light Oil Plays (SPE ) C.R. Clarkson and P.K. Pedersen T O C © TOC, 2011

Outline ULO Classification: plays chosen for analysis Pembina Cardium (Halo Play) MFHW Analysis Viewfield Bakken (Tight Oil) MFHW Analysis 2WS (Shale Oil) Vertical Well Analysis Conclusions and Future Work 2

ULO Classification: plays chosen Modified from Clarkson and Pedersen (2011), SPE Classification of Unconventional Light Oil plays in Western Canada. 2WS stands for 2 nd White Speckled Shale

Halo Oil: Pembina Cardium 4 Modified from Bustin, Bustin and Cui, 2008

Halo Oil: Pembina Cardium MFHWs 5 Modified from Bustin, Bustin and Cui, 2008 Production and flowing pressure data for multi-fractured horizontal wells CARD-1 (a), CARD-2 (b) and CARD-3 (c).

Halo Oil: Pembina Cardium MFHWs 6 Modified from Bustin, Bustin and Cui, 2008 Log-Log diagnostic plots for multi-fractured horizontal wells CARD-1 (a), CARD-2 (b) and CARD-3 (c). Blue line on log- log plot (b) is a ½ slope line.

Halo Oil: Pembina Cardium MFHWs 7 Modified from Bustin, Bustin and Cui, 2008 Linear flow analysis plots for multi-fractured horizontal wells CARD-1 (a), CARD-2 (b) and CARD-3 (c).

Halo Oil: Pembina Cardium MFHWs 8 Modified from Bustin, Bustin and Cui, 2008 Flowing material balance plot for multi-fractured horizontal well CARD-1.

Halo Oil: Pembina Cardium MFHWs 9 Modified from Bustin, Bustin and Cui, 2008 Type-curve analysis of multi-fractured horizontal wells CARD-1 (a), CARD-2 (b) and CARD-3 (c).

Halo Oil: Pembina Cardium MFHWs 10 Modified from Bustin, Bustin and Cui, 2008 History-match of CARD-1 using analytical flow model (a) log-log plot and (b) semilog plot.

Halo Oil: Pembina Cardium MFHWs Modified from Bustin, Bustin and Cui, History-match of CARD-3 using single-phase analytical flow model shown on (a) log-log plot and (b) semilog plot. Also illustrated is a history-match using a 2-phase (oil+gas) tank model with a horizontal well IPR shown on (c) log- log plot and (c) semilog plot.

Tight Oil: Viewfield Bakken Modified from Bustin, Bustin and Cui,

Tight Oil: Viewfield Bakken MFHWs Modified from Bustin, Bustin and Cui, Production and flowing pressure data for multi-fractured horizontal wells BAKK-1 (a) and BAKK-2 (b).

Tight Oil: Viewfield Bakken MFHWs Modified from Bustin, Bustin and Cui, Log-Log diagnostic plot (a), late-linear flow plot (b) and flowing material balance plot for BAKK-1. Blue line on log-log plot (a) is a ½ slope line.

Tight Oil: Viewfield Bakken MFHWs Modified from Bustin, Bustin and Cui, History-match of BAKK-1 using analytical flow model (a) log-log plot and (b) semilog plot.

15 Modified from Bustin, Bustin and Cui, Regional map showing trends in 2WS production. Oil production rates (green) and GOR plots (red) are shown for several wells. Multi-segment Arps decline curves are fit to the oil production to assist with EUR estimates.

Modified from Bustin, Bustin and Cui, Oil and Gas production from vertical well 2WS-1 (a) and log-log plot (b) used to analyze oil production signature. Blue line on log-log plot (b) is a ½ slope line. Shale Oil: 2WS Vertical Wells

Modified from Bustin, Bustin and Cui, Shale Oil: 2WS Vertical Wells Rate-transient analysis of 2WS-1: (a) early-radial flow analysis; (b) late (matrix) linear flow analysis and (c) flowing material balance analysis.

Modified from Bustin, Bustin and Cui, Shale Oil: 2WS Vertical Wells History-match of 2WS-1 using analytical flow model (a) log-log plot and (b) semilog plot.

Modified from Bustin, Bustin and Cui, Shale Oil: 2WS Vertical Wells History-match of gas and oil production for 2WS-1 vertical well using a numerical model (solid lines) and tank model (dashed lines) shown on (a) log-log plot and (b) semilog plot.

Modified from Bustin, Bustin and Cui, Shale Oil: 2WS Vertical Wells History-match of gas and oil production for 2WS-1 vertical well using a numerical model (solid lines) and tank model (dashed lines) shown on (a) log-log plot and (b) semilog plot. A single porosity model was used.

22 Shale Oil: 2WS Vertical Wells Relationship between matrix surface area, as established from late linear flow, and EUR for several 2WS vertical wells. A matrix permeability of 150 nd was assumed in the analysis.

23 Cardium: PLE Match to MFHW

Conclusions For the Halo Oil example analyzed (Pembina Cardium), the data quality was sufficient to yield reasonable estimates of OOIP, and effective wellbore length Only public data (ex. monthly production) were available for the Tight Oil (Viewfield Bakken) and Shale Oil (Second White Specs) plays, so extracted information is qualitative We are starting to develop techniques to allow analysis of multi- phase flow and demonstrated the utility of a multi-phase analytical (tank) model for providing preliminary estimates of reservoir properties prior to more rigorous numerical simulation We have created a correlation between vertical well EUR and contacted matrix surface area for the 2WS wells analyzed that would suggest that multi-fractured horizontal wells could work in the unstructured portions of the play if an artificially-induced contacted matrix surface area of several million cubic feet could be created 24