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Action Learning Modules

expand/collapsePLAN: Reservoir Engineering Fundamentals

Scenario
You are part of a team of E&P specialists responsible for evaluating a recent discovery in the Republic of Sucre. Your immediate objective is to determine formation properties and estimate hydrocarbon recovery potential, based on the limited information currently available. This will be the first step in developing a detailed reservoir model and, if justified, a long-term reservoir management plan.
Task Summary:
Collect representative formation fluid samples and measure their PVT properties. Obtain core material and analyze reservoir rock characteristics. Describe the subsurface stress environment. Use volumetric and material balance methods to estimate the reservoir's initial hydrocarbon in place, define the primary drive mechanisms and determine a primary recovery factor. Use the computer as a tool for solving reservoir engineering problems, managing databases and enhancing job productivity. Review interdisciplinary resources for describing the reservoir.

expand/collapseReservoir Rock and Fluid Properties(a1)Module information - Printer Friendly

Competency Statement:

Define the properties of the reservoir rock/fluid system.

Learning Objective:

Upon completing this Learning Module assignment, the participant should be able to
  • define the following reservoir properties and understand their importance in the overall reservoir development scheme:
    • Rock properties: porosity, permeability, fluid saturation, compressibility, anisotropy
    • Fluid properties: phase behavior, PVT relationships, density, viscosity, compressibility, formation volume factor, gas-oil ratio
    • Rock/fluid interactions: wettability, interfacial tension, capillary pressure, relative permeability
  • read and understand wellsite descriptions of recovered core material, evaluate the core handling and preservation techniques employed, and select sample intervals for laboratory analysis
  • generate a procedure for preparing and analyzing selected core samples, specifying the tests to be run and the information to be obtained; describe the laboratory techniques and perform the calculations used for determining rock properties
  • design procedures for obtaining representative surface and subsurface formation fluid samples
  • describe procedures for generating PVT analyses of reservoir fluid samples, and interpret the resulting reports
  • use published correlations to estimate reservoir fluid properties

Assignment Instruction:

In this assignment, you will define the basic rock and fluid properties of a recently discovered reservoir in the Republic of Sucre.

You will be in charge of obtaining representative fluid samples and determining their Pressure-Volume-Temperature (PVT) characteristics. You will also design a coring and core analysis program for a new well, and use the results to define basic rock properties and rock-fluid interactions.

The discovery well, Well 4E1-NE, tested at 1550 STB/D of 35 degree API oil [246 m3/D, 0.85 specific gravity], with a producing gas-oil ratio of 680 SCF/STB [121 m3/m3] and a water cut of about three percent. It is currently on an extended production test.

The second well drilled in this field , Well 5C1-SW, tested all water and was subsequently suspended.

Before your company acquired these drilling blocks, a medium-sized independent had run a series of seismic surveys in the area. Your company purchased these data, from which the Geology and Geophysics departments constructed a subsurface contour map showing the approximate structure boundaries and the top of the Upper Sand.

You are now part of the interdisciplinary team charged with characterizing the reservoir and developing an optimal exploitation strategy. Right now, you do not have much to work with—just the contour map and the well data obtained so far. (You can access this material by clicking on the References that accompany each assignment question.)

What you will need to do at this point, then, is to use the available data to try to define some basic reservoir rock and fluid properties.

Background Learning Prerequisites:

expand/collapseRock Mechanics Fundamentals(a2)Module information - Printer Friendly

Competency Statement:

Apply rock mechanics fundamentals to discribe well, reservoir and production behavior.

Learning Objective:

Upon completing this Learning Module assignment, the participant should be able to
  • define the following rock mechanical properties under various conditions of confining pressure, describe how these properties influence wellbore stability, directional drilling considerations, well completion design and other aspects of reservoir development, and know how they are measured in the laboratory:
    • Brinell hardness
    • Tensile strength
    • Normal/shear stress relationships and failure mechanisms (Mohr circles)
    • Young’s modulus
    • Poisson’s ratio
    • Compressive strength
    • Shear strength

Assignment Instruction:

Rock mechanics is a basic element of reservoir description, well design and production optimization. Knowledge of rock mechanical properties is critical to successful reservoir management.

In this assignment, you will define rock mechanical properties based on an analysis of core samples from Well 2A5-NE. You will:

  (1) select core samples for measuring rock mechanical properties
  (2) estimate the overburden and pore pressuress at reservoir depth
  (3) determine rock mechanical properties under reservoir conditions
  (4) calculate rock compressive strength, Young's Modulus and Poisson's ratio,
  (5) Use a Mohr diagram to interpret the reservoir's shear stress rate

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Coring and Core Analysis

Structural Geology

expand/collapseStability and Rock Deformation Models(a3)Module information - Printer Friendly

Competency Statement:

Generate a stability and rock deformation model.

Learning Objective:

Upon completing this Learning Module assignment, the participant should be able to
  • identify the presence and orientation of fracture systems in the reservoir

Assignment Instruction:

To understand formation stress response, we start by measuring the mechanical properties of representative core samples in the laboratory. This gives us information about the rock's strength and stability under a given set of conditions.

We then apply this empirical knowledge to the formation by combining our core observations with such geologic information as well logs, structure maps and regional outcrop studies.

In this assignment, you will review core descriptions for evidence of natural fractures and other tectonic activity. You will then incorporate your observations with other data sources to determine the principal stress directions in the formation.

Core analysis, including rock mechanical properties tests, have been done on selected samples from Well 2A5-NE. Early seismic measurements and log data from offset wells indicate that the reservoir is bounded by normal faults on the east and west.

Your objective in reviewing this core information is to

  (1) determine the formation’s principal stress directions,
  (2) and find indications of tectonic activity.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Coring and Core Analysis

Structural Geology

expand/collapseReservoir Drive Mechanisms(a4)Module information - Printer Friendly

Competency Statement:

Identify and interpret production mechanisms to predict the behavior of oil, gas and gas condensate reservoirs.

Learning Objective:

Upon completing this Learning Module assignment, the participant should be able to
  • identify primary reservoir drive mechanisms (solution gas drive, water drive, gas cap drive) by observing production and pressure trends.
  • estimate original hydrocarbons in place, using both volumetric and material balance methods, and develop a range of estimates for technical recovery factors and reserves.

Assignment Instruction:

The ultimate goal of reservoir management is to optimize economically the development and production of hydrocarbons. This requires answers to three questions:
  (1) How much hydrocarbon is there?
  (2) How much of it is recoverable?
  (3) How fast can it be recovered?

In other words, we need to determine , respectively, the oil and gas in place, the reserves, and the production rate.

Your job in this assignment scenario is to review the reservoir data that have been collected to this point and

  • estimate the original hydrocarbon in place using volumetric and material balance methods,
  • qualitatively evaluate the reservoir drive mechanisms, and
  • estimate the reservoir’s primary recovery factor

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Fundamentals of Reservoir Engineering

Reservoir Modeling and Reserves Evaluation

expand/collapseMultidisciplinary Reservoir Management(a6)Module information - Printer Friendly

Competency Statement:

Contribute to the efforts of a multidisciplinary reservoir management team, based on a general knowledge of related disciplines.

Learning Objective:

Upon completing this Learning Module assignment, the participant should be able to
  • demonstrate a basic knowledge of disciplines outside of reservoir engineering (i.e., Geology, Sedimentology, Petrophysiscs, Geophysics, etc.), and establish a working relationship with specialists from these disciplines.
  • understand the role of different disciplines in the overall process of reservoir characterization and exploitation.

Assignment Instruction:

Much of our reservoir data comes from disciplines outside of reservoir engineering. The initial structure map, for example, may be generated from seismic measurements and geological interpretation, with subsequent information coming from well logs, cores, production data and other sources.

In this assignment, you will review the well and field data that have been gathered to date for the Upper/Middle sands, so that you can have an idea of what tools are available for describing the subsurface environment. You will also look at how various E&P disciplines may fit into the overall reservoir management task.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Reservoir Environments and Characterization

Fundamentals of Reservoir Engineering

Issues in Reservoir Management

expand/collapsePLAN: Basin Analysis

Scenario

Basin analysis is a geologic method by which the history of a sedimentary basin is revealed by analyzing the sediment fill. Aspects of the sediment--namely its composition, primary structures, and internal architecture--can be synthesized into a history of the basin development. The ultimate goal is to identify the extent of hydrocarbons and hydrocarbon-bearing rocks. Basin analysis is carried out on both the surface outcrop and the subsurface strata. In this Learning Plan you will study techniques used by the petroleum industry to understand the subsurface rocks and application to hydrocarbon exploration.

Task Summary:

Basin analysis is the term broadly applied to a group of geological disciplines that can be used to analyze the formation and evolution of sedimentary basins. Therefore basin analysis is used to aid in the evaluation of potential hydrocarbon reserves. The modules in this Learning Plan will help to give you a better understanding of how to analyze the basin's depositional environments, the age and position of the stratigraphic sequences in the basin, and the size and internal geometry of the stratigraphic units. Then you will review the geochemistry analysis to determine the hydrocarbon potential critical to the exploration of a basin.

expand/collapseSedimentology(a480)Module information - Printer Friendly

Competency Statement:

Identify sedimentary rocks and processes from such information as outcrops, thin sections studies, core reports, cuttings and well logs.  Describe sedimentary and diagenetic processes through conventional and specialized studies including XRD / XRF analysis. Determine the rock's framework grains, matrix, porosity and various types of cements.  Define depositional environments and facies architecture within the context of basin analysis.

Learning Objective:

  • Use core, outcrop and thin section data to define lithofacies and depositional environments in terms of composition, texture, geometry, sedimentary structure, porosity and diagenesis.
  • Use core data, well cuttings, and well logs to construct lithostratigraphic columns, infer depositional environments and build geologic cross-sections.
  • Review facies trends and extrapolate them to a regional scale.
  • Use sedimentological interpretations as a basis for building facies distribution maps and net-to-gross sand isopach maps.

Assignment Instruction:

As a member of the New Ventures Team for Beta Exploration, Inc., your responsibility is to evaluate new hydrocarbon exploration opportunities. Your role is to understand the sedimentary development and hydrocarbon potential of basins that Beta Exploration, Inc. desires to explore. In many cases, recommendations must be made with a limited amount of data.

This learning module will allow you to use the data available in this region to interpret the depositional systems.

The existing information in this exploration area is limited. Some wells have been drilled in the past and SP and gamma logs are available. New wells have been drilled recently and intervals of interest were cored. Gathering, defining and interpreting well data are important tasks of exploration geologists to construct correlations and maps.

The base map of the region is below. The data set used for this exercise includes surface outcrop information, core descriptions and electric logs of wells.

You will have the description of grain size and texture, primary sedimentary structures, ichnofacies and other data to classify the lithofacies and complete the facies analysis for certain wells. Additionally, you will calibrate cores to well logs to complete your analysis.

Using this information, you will interpret the facies successions and depositional environments in each well. Subsequently you will construct a correlation with 5 wells (1, 2, 3, 4 and 5) and map paleoenvironments distribution.

Finally, you will make a net sand map to observe the trend of sandstone deposition.

Base Map

LP1_LM1_ref2857

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Geologic Cross-Sections

Subsurface Mapping

Subsurface Facies Analysis

Marginal Marine Sandstone Reservoirs

expand/collapseSequence Stratigraphy(a481)Module information - Printer Friendly

Competency Statement:

In recent years, a better understanding of the geologic and sedimentary processes associated with sequence stratigraphy revived interest in its application to basin analysis. Sequence stratigraphy provides a means of interpreting the depositional history of a basin in terms of base level movements driven by eustatic sea level changes and by tectonic activity. These allogenic (external) drivers of base level movement interact with sediment supply to determine the creation (BL rise) or destruction (BL fall) of accommodation space for sediments in a basin.

Given that base level is continually changing, the key point for sequence stratigraphy is that this results in a number of distinct sedimentary surfaces that reflect depositional breaks and/or changes of depositional trend which bound stratigraphic sequences.

These surfaces include Material Based surfaces such as a Subaerial Unconformity (SU), a Regressive Surface of Marine Erosion (RSME), a Shoreline Ravinement (SR), a Maximum Regressive Surface (MRS), a Maximum Flooding Surface (MF), or a Slope Online Surface (SOS) and Time based surfaces termed the Basal Surface of Forced Regression (BSFR) and the Correlative Conformity (CC). Recognition and use of these surfaces in sequence stratigraphy are explored.

Upon completion of this module the learner will be able to place a stratigraphic succession into a chronostratigraphic framework to determine depositional environments and related facies by analyzing well logs, core samples, outcrops, seismic lines and other information. You will use a predictive model to evaluate the basin-wide distribution of petroleum source, reservoir and cap rocks.

Learning Objective:

  • Recognize and explain the principle material based surfaces used in sequence stratigraphy (e.g., SU, RSME, SR, MRS, MFS, and SOS) and the chronostratigraphic surfaces (BSFR and CC).
  • Construct stratigraphic cross-sections based on sequence stratigraphy correlation methods.
  • Interpret the stratigraphic evolution of a basin.
  • Predict petroleum reservoir occurrences utilizing the relationships between accommodation space, sediment supply, stacking patterns and unconformities in a sequence stratigraphic framework.

Assignment Instruction:

As a member of the Exploration team for Beta Petroleum Co., you have been selected for a sequence stratigraphy study in the Eastern Venezuelan Basin, one of the largest oil producing basins of the world. As part of your responsibilities, you will have to provide information on the continuity of reservoirs and regional seals that might be useful for the rest of your team.

The section comprises a fluvial deltaic system deposited during the Early Miocene (18.5 Ma) and Middle Miocene (13.8 Ma). The units deposited since the Early Miocene unconformably overlie Cretaceous shales with high organic matter content, which constitutes most of the source rock which for the hydrocarbons of the basin.

The geological interpretation of well logs was integrated with the biostratigraphic and sedimentological information obtained from core and sidewall samples. This integration allowed for the sedimentary section to be subdivided into geometrical packages bounded by unconformities. Based in this interpretation, third order sequences were identified.

To carry out this exercise GR and resistivity logs of 5 wells were used, as well as information from two cores taken from Wells 1 and 4.

The figure below shows the location of the wells studied.

Wells location map.

Well location map

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Nonmarine Sandstone Reservoirs

Marginal Marine Sandstone Reservoirs

Classic Sequence Stratigraphy

Stratigraphic Disciplines and Sequence Stratigraphy

expand/collapseSeismic Sequence Stratigraphy(a482)Module information - Printer Friendly

Competency Statement:

Upon completion of this module the learner will be able to define sequence stratigraphic units with seismic reflection data. Analyze systems tracts and determine depositional environments from the established sequence stratigraphy framework. Predict the basin-wide distribution of petroleum source, reservoir and seal rocks from seismic data.

Learning Objective:

  • Explain key concepts of seismic sequence stratigraphy and the techniques used to evaluate seismic data.
  • Use seismic data to interpret depositional sequences and bounding surfaces to establish a basic sequence stratigraphic framework.
  • Integrate available well, biostratigraphic and outcrop data into the framework.
  • Determine depositional environments and facies.
  • Predict petroleum reservoir occurrences using seismic data.

Assignment Instruction:

As a member of the New Ventures Exploration Team, your responsibility is to evaluate new petroleum exploration opportunities for Beta Exploration, Inc. As the Seismic Sequence Stratigrapher your role is to evaluate the seismic data to identify potential source, reservoir, and seal rocks in the strata of prospective basins and to locate favorable petroleum traps.

The study area is located to the northeast of the Australian Platform (Location map). The stratigraphic section ranges in age from Upper Triassic to Lower Cretaceous. This exercise is roughly based on a paper by Erskine and Vail (in Bally, A. W. (editor), Atlas of Seismic Stratigraphy, AAPG 1987).

Three seismic lines are available for the exercise.  In addition, two wells A and B support the stratigraphic interpretation of the area. See location map below.

Four unconformities, as well as their correlative surfaces, bound three third-order sequences identified from older to younger as I, II and III. Systems Tracts are labeled. The age of the unconformities were determined through paleontological data obtained from wells drilled in the area and from the global marine cycles chart. The sequence boundaries are named SB132, SB129, SB127 and SB126.

TD (Time Depth) plots were derived for both wells by means of synthetic seismograms calculated from sonic logs taken in the wells. The creation of synthetic seismograms allows well information in depth to be tied to seismic data in time.  Thus, we are able to evaluate the same lithological intervals in the well and on the seismic line.

As a final remark, a composite stratigraphic cross section, which integrates the seismic and the well data, is provided to show the result of this seismic stratigraphy exercise. (See Integrated stratigraphic section in Assignment 5 - Prediction of potential source, reservoir, and seal rocks)

Location map

Location Map

Background Learning Prerequisites:

expand/collapseBiostratigraphy(a483)Module information - Printer Friendly

Competency Statement:

Use plant and animal fossils from well cuttings, cores or outcrops to differentiate rock units, determine the ages of the units, and infer the sedimentary depositional environment.

Learning Objective:

  • Identify the different groups of microfossils used in biostratigraphy.
  • Infer sedimentary depositional environments of sediments based on identification, classification, and occurrences of microfossils.
  • Use microfossils for estimating the ages of rock units.
  • Demonstrate the use of microfossil abundance and diversity charts.
  • Use microfossils to correlate rock units between wells.

Assignment Instruction:

Beta Exploration Inc. is planning a bid for a new block in a basin. As a member of the exploration team, your role is to analyze the biostratigraphic information available from four wells in the area. You will integrate the biostratigraphic analysis with well-logs and seismic profiles near the block.

This exercise begins with biostratigraphic analysis by examination of microfossils. Several groups of microfossils help to estimate the ages of rock units through biostratigraphy and to interpret sedimentary depositional environments.

Biostratigraphic units (biozones) were inferred from first occurrences of microfossils down hole in each well. The ages were assigned using the zonal schemes from the area. The accompanying charts with equivalent zonal schemes will enable you to build a biostratigraphic correlation of the 4 wells.

Microfossil indicators of depositional environments allow interpretation of biofacies changes through the stratigraphic section. You will make a paleoenvironment map of the area.

The integration of biostratigraphy with other geological disciplines, such as geophysics, sedimentology, petrophysics, and geochemistry facilitates sedimentary basin analysis and petroleum exploration. This is essential for planning and developing favorable petroleum prospects.

The Chronostratigraphic chart is from 'Chronostratigraphic equivalence of the palynological zonations for northern South America and Venezuela' (modified from Lorente and others, 1997) and contains ages of stage boundaries (in Ma) according to Haq and others (1987) and Berggren and others (1995).

A chronostratigraphic correlation between the wells using biostratigraphy allows interpretation of maximum flooding surfaces (mfs) in well 4 and their association with important chronostratigraphic species (bioevents) and global sea level curves.

Base map with wells

Base map with wells

Chronostratigraphic chart

Chronostratigraphic chart

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Subsurface Facies Analysis

Classic Sequence Stratigraphy

expand/collapsePetroleum Geochemistry(a484)Module information - Printer Friendly

Competency Statement:

Upon completion of this module the learner will understand geochemical concepts relating to the origin and occurrence of petroleum. Describe oil and gas chemical composition and classification. Identify source rock based on geochemical analysis. Interpret petroleum migration from source rock to subsurface hydrocarbon accumulation.

Learning Objective:

· Understand chemical composition and classification of oil and gas.

· Describe the types of kerogen and the generation, expulsion and migration of petroleum.

· Use principal tools and methods for evaluation of source rock quality and maturity.

· Evaluate one-dimensional geochemical model.

 

Assignment Instruction:

As a member of the New Ventures Exploration Team, you are assigned to evaluate a regional integrated geochemical study of a sedimentary basin relevant to hydrocarbon habitat. The study includes source rock evaluation, oil geochemistry and their correlation with source rock, reconstruction of the hydrocarbon generating area and geochemical modeling of a pilot well.

The drainage area of the basin is bounded to the north and northeast by faults, and to the southeast, south, and west by mountains (Figure 1). The tectonic setting of the basin evolved during the Cretaceous Period and the Cenozoic Era. The present structural configuration of the basin developed during the Miocene to Holocene Epochs as it became an intermontane basin in a foredeep position.

An Aptian to Albian Age marine transgression deposited a thick shallow water carbonate platform and associated sediments. During maximum transgression between the Cenomanian Age and the Coniacian Age, the sedimentation was pelagic and euxinic facies of limestones and calcareous shales. During Paleocene Epoch, clastic sediments were deposited in the southwest and western basin areas and a shallow marine platform occurred in the central basin. During the lower to middle Eocene Epoch, the sedimentation was mainly fluvial in the southwest, fluvio-deltaic to deltaic on the platform, and turbidite and flysch in the east.

Geochemical analyses of cores and cuttings from nearly 100 wells included TOC, pyrolysis, visual kerogen, UV, GC, GC-MS biomarkers, and TTI. The important oil prone source rocks were deposited during the Cretaceous. Organic carbon (OC) ranges between 1.5% and 9.6% (average of 3.8%) in limestone and calcareous shales with high concentrations of extractable organic matter (>2000 ppm) and hydrocarbons (>1000 ppm). The Paleocene and Eocene sequences in the basin contain mainly gas prone type III organic matter with low potential.

 Figure 1 - Location of wells studied in the basin

Location of the oil wells

Background Learning Prerequisites:

expand/collapsePLAN: Dynamics of Deformation

Scenario

Identifying new petroleum exploration opportunities requires a solid understanding of a basin's structural development history as a result of global plate tectonics. The tectonic setting, the formation, the sedimentation and the deformation of a basin influence the creation of hydrocarbons and the potential hydrocarbon trapping style and production in the basin. Structural geology tools interpret different structural styles and predict potential trapping configurations. Rock properties and mechanics are applied to exploration problems related to tectonics, seismic evaluation, or reservoir performance.

In this learning plan you will apply tectonic plate movement to the genesis, evolution, structural deformation, and hydrocarbon potential of the Caribbean region. Use structural geology to evaluate the structural style of the overall petroleum system. Analyze reservoir characteristics and seismic response with rock mechanical properties.

Task Summary:

You will complete assignments related to the role of global plate tectonics on the formation, the tectonic evolution and the resultant hydrocarbon traps of the Maracaibo Basin in the Caribbean region.

Emphasis will be on the evolution of the main faults, their movement, periods of deformation and type of basin formed as a result. Examination of the different stages of the paleogeographic evolution of the basin including rifting, foreland basin structural deformation and passive margin development will focus on petroleum exploration.

Evaluate the structural style and potential hydrocarbon trapping configurations in the basin.

Calculate rock mechanical properties of a reservoir target to estimate the acoustic response to different fluids.

expand/collapseTectonics(a521)Module information - Printer Friendly

Competency Statement:

Recognize the global plate tectonic setting of petroleum exploration areas using plate movement maps, paleogeographic maps and ages of structural deformation. Describe the type of basin and its structural evolution determined by tectonic setting. Illustrate resulting styles of structural deformation which may trap hydrocarbons.

Learning Objective:

  • Determine plate tectonic setting and history for prospective geographic area.
  • Describe basin development and structural evolution based on tectonic setting.
  • Define resulting structural styles in basin.
  • Identify potential hydrocarbon traps resulting from structural styles.

Assignment Instruction:

Beta Exploration Inc. has assigned the New Ventures Exploration Team to evaluate a lease sale in the Maracaibo Basin. An accurate understanding of the regional tectonics is necessary for the team to interpret the stratigraphy and petroleum potential of the lease blocks. You will provide an evaluation of the plate tectonics setting, basin development and potential trapping style.

You will apply global plate movement and lithosphere formation and subduction to the genesis, tectonic evolution and structural deformation of the Maracaibo Basin in the Caribbean region. Interpret the development of the main fault systems, their movement, periods of deformation and type of basin formed. Examine the different stages of the paleogeographic evolution of the basin including rifting, foreland basin structural deformation and passive margin development.

You will use sample seismic lines and a structural contour map to interpret the structural style and the type of faulting present in the basin. Identify the hydrocarbon migration routes and potential hydrocarbon traps resulting from this structural style.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Divergent Margins and Rift Basins

Convergent Margin Basins

Plate Tectonics and Sedimentary Basins

expand/collapseStructural Geology(a522)Module information - Printer Friendly

Competency Statement:

Use structural contour maps and cross sections based on seismic and well log data to identify and interpret different structural styles related to the tectonic setting. Analyze and predict potential hydrocarbon trapping configurations based on the structural style. Evaluate the effect of structural style on the overall petroleum system of a basin.

Learning Objective:

    • Use surface geologic maps, subsurface structural contour maps, block diagrams and cross sections drawn from well logs and seismic data to interpret structural styles in a basin.
    • Predict the potential types of faults and folds associated with a structural style.
    • Identify key characteristics of different types of faults and folds.
    • Determine potential hydrocarbon traps resulting from different structural styles.

Assignment Instruction:

Beta Exploration Inc. has assigned the New Ventures Exploration Team to evaluate a lease sale in the central part of the Maracaibo Basin for Lake Oil Ventures Ltd, a subsidiary of Beta Exploration Inc. You will identify the tectonic setting and structural style, determine potential trapping configurations corresponding to the structural style, and evaluate petroleum potential of the lease blocks.

Structural style is based on comparative tectonics that identifies patterns in deformation which can be observed on a global scale. Structural geology examines regional structural features, their interrelationships, evolution, and effects on sedimentation. Structural geology and structural style allow prediction of source and reservoir rocks, hydrocarbon migration paths, and potential hydrocarbon traps prior to exploration.

You will identify the structural style and the type of faulting present in the central part of the Maracaibo Basin using a structural contour map and block diagrams and cross sections drawn from well logs and seismic data. Predict potential hydrocarbon traps resulting from a structural style.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Structural Geology

expand/collapseRock Properties and Mechanics(a520)Module information - Printer Friendly

Competency Statement:

Identify rock mechanical properties from core, cuttings, and electrical logs. Use analysis to address issues related to fractures, subsurface pressures, subsidence and compaction. Illustrate an understanding of rock properties that effect seismic response.

Learning Objective:

  • Define basic rock mechanical properties, describe how they are measured.
  • Understand the differences between laboratory measurements and in-situ properties.
  • Predict formation subsurface pressure environment and principal stress directions.
  • Define rock properties and how they affect the seismic response.

Assignment Instruction:

Rock Mechanics is a very powerful approach for reservoir description and management. It provides useful and efficient links between mechanical and acoustical properties which lead to a deep understanding of the stress-strain behavior of subsurface beds. Used properly, together with geostatistical concepts, it can substantially help to elaborate an accurate picture of our geological targets.

You are a rock mechanics specialist assigned to the Exploration New Ventures team. Exploration team members come to you to gain insight and support in applying rock properties and mechanics to exploration problems. These problems may be related to tectonics, seismic evaluation, or reservoir performance. You often have a limited dataset to interpret.

In this assignment, you will calculate the elastic modulus of a reservoir target using laboratory data from well cores and well logs. Using these characterizations together with fluid substitution concepts and storage (porosity) and transport (permeability), you will be able to estimate the acoustic response to different saturation fluids.

In this sense, you will:

  • Calculate porosity and permeability from laboratory data
  • Use stress-strain relationships for linear elasticity to estimate the elastic modulus
  • Use inversion from acoustic logs and laboratory data to estimate the elastic modulus
  • Give a very educated guess for the stress state on the subsurface
  • Estimate the seismic signature of fluids and porosity

Note: Answers are used as input for subsequent questions.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Reservoirs

Seismic Stratigraphic Modeling

Sand Control

Coring and Core Analysis

Well Logging Tools and Techniques

Synthetic Seismogram Modeling

Hydraulic Fracturing

Overview of Formation Evaluation

expand/collapsePLAN: Drilling, Workover and Well Servicing Fundamentals

Scenario
Petros Corporation's Drilling Department has asked you to work on several projects related to the Sucre discovery.
  • First, you will develop a well plan and monitor drilling and completion operations for a new appraisal well.
  • Next, you will plan a possible re-entry and sidetrack of Well 5C1-SW, which is currently suspended.
  • Finally, you will perform an initial screening to help determine whether horizontal wells should be considered as part of the reservoir development project.
Your assistance with these projects will be of great help to the Drilling Department, which is currently short of personnel due to increased rig activity worldwide.
Task Summary:
Establish basic drilling parameters (i.e., target depth, formation markers, directional drilling requirements, mud specifications and casing points). Generate a casing design. Monitor and optimize the drilling fluid and hydraulics programs. Plan and execute the casing and primary cement jobs. Calculate the target coordinates and trajectory for a possible sidetrack and re-drill of Well 5C1-SW. Compare the productivity of vertical and horizontal well completions to determine the feasibility of a horizontal drilling program.

expand/collapseWell Planning(a41)Module information - Printer Friendly

Competency Statement:

Identify, monitor and evaluate drilling, workover, stimulation and well servicing proposals and activities in the context of optimizing the overall reservoir exploitation scheme.

Learning Objective:

Upon completion of this module, the participant should be able to
  • contribute to the well planning process by understanding the reservoir engineering aspects of the proposed work and having a knowledge of drilling, workover and well servicing fundamentals
  • work with the geologist and the drilling engineer to select well locations, target depths and casing points

Assignment Instruction:

Long-term exploitation strategies for this reservoir are currently being considered for the Upper/ Middle Sand reservoir. Management has appropriated funds for continued drilling, and has already approved a new well proposal for Block 5A1-SW. In this assignment, you will recommend the target depth and radius for well 5A1-SW. You will determine what mud weights to use during drilling, specify casing points, and decide on formation evaluation requirements. This reservoir has been on production for just over two years. A total of six wells have been drilled, one of which was abandoned. Production is currently averaging about 2000 barrels of oil per day under solution gas drive at well over its bubble point pressure. These wells, although initially designated as "Upper Sand" producers, expose both the Upper and Middle sand reservoirs.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Well Planning

Drilling Problems and Drilling Optimization

expand/collapseWell Completion Design(a42)Module information - Printer Friendly

Competency Statement:

Select the appropriate tubing and accessories for completing wells in keeping with the production method required for the reservoir, and to facilitate future workover, servicing and stimulation work.

Learning Objective:

Upon completion of this module, the participant should be able to
  • select the proper sizes and grades of tubulars to maintain the integrity of the wellbore and handle anticipated production
  • select the downhole casing and tubing accessories needed to optimize production and future well work

Assignment Instruction:

Well 5A1-SW is currently in the planning stage. The well specifications established so far include target depth and radius, well profile, mud weight requirements, approximate casing points and formation evaluation needs.

In this assignment, you will work on the well's completion design. You will select the completion type and tubing configuration, specify the casing and tubing diameters to be used, and design the surface and production casing strings.

The success of your design will depend on how well it handles the anticipated production, compatibility of the various hole, casing and tubing sizes, adequacy of the casing design loads, and cost.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Well Planning

Basic Completion Design and Practices

expand/collapseDrilling and Workover Fluids(a43)Module information - Printer Friendly

Competency Statement:

Select the appropriate drilling/workover fluid for meeting well objectives and, minimizing formation damage with no impact on the environment.

Learning Objective:

Upon completion of this module, the participant should be able to
  • evaluate the features, benefits and limitations of various mud systems and additives, and select the one most appropriate for a given well
  • specify controls on fluid properties in order to optimize drilling and workover operations

Assignment Instruction:

Drilling and completion fluids are essential to safe and successful well operations. In this assignment, you will select the appropriate fluids for drilling and completing Well 5A1-SW, monitor their properties, and recommend changes as needed. By the time you complete this module, you should be able to evaluate the features, benefits and limitations of various mud systems and additives, and specify controls on fluid properties for optimizing drilling and workover operations.

The AFE for drilling Well 5A1-SW has been approved, and operations are getting underway. Once drilling begins, your job will be to closely monitor the properties of the mud system you have selected, and to make changes in the mud system as operating conditions may require.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Drilling Fluids and the Circulating System

Drilling Problems and Drilling Optimization

expand/collapseDrilling and Workover Hydraulics(a44)Module information - Printer Friendly

Competency Statement:

Maximize penetration rates, minimize formation damage and ensure hole stability through the proper application of drilling hydraulics principles.

Learning Objective:

Upon completion of this module, the participant should be able to
  • determine the pressure losses that occur in the rig circulating system
  • use basic calculation methods to determine optimal bit nozzle size, annular velocity and other rig hydraulics parameters
  • diagnose drilling problems resulting from poor hydraulics practices

Assignment Instruction:

The objective of a drilling hydraulics program is to maximize bit life and penetration rate by efficiently removing drilled cuttings and by cleaning, cooling and lubricating the bit and drill string. The key to a sucessful hydraulic program is to deliver an optimal amount of energy to the bit.

The easiest way to control and optimize drilling hydraulics is to select the appropriate bit nozzle diameters for delivering the maximum amount of hydraulic energy to the bottom of the hole.

In assignment, you will learn to use drilling hydraulics principles to maximize penetration rates, ensure hole stability, optimize hole cleaning characteristics and minimize formation damage.

By the time you complete this module, you should be able to determine pressure losses in the rig circulating system and select the appropriate bit nozzle diameters for optimizing hydraulic energy.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Drilling Problems and Drilling Optimization

Drill Bits

expand/collapseCementing(a45)Module information - Printer Friendly

Competency Statement:

Determine the most appropriate procedures, equipment, tools and cementing materials for assuring a high-quality cement job.

Learning Objective:

Upon completion of this module, the participant should be able to
  • determine the volume, displacement and density requirements for cementing a casing string
  • select the cement additives appropriate to a given job
  • specify the casing accessories to be use on a primary cement job
  • outline the steps involved in cementing a string of casing
  • evaluate the results of a primary or squeeze cementing operation
  • calculate the volumes and displacements required to set a cement plug

Assignment Instruction:

In this assignment, you will determine the appropriate procedures, materials and equipment for assuring a high-quality cement job on Well 5A1-SW. By the time you complete this module, you should be able to determine cement volume, density and displacement requirements, select cement additives, specify casing accessories, outline cementing procedures, evaluate job results, and make basic cement plug calculations.

Well 5A1-SW has been drilled to T.D., and the openhole formation evaluation program has been completed. It is now time to run and cement the production string. The purpose of this primary cement job, in which cement slurry is pumped down through the casing and up the casing-hole annulus, is to form a seal between the casing and formation, and to support the weight of the casing string.

In this module, you will determine how much cement you need for the production casing, what materials and additives you should use, what casing accessories and equipment you need, and what procedures you should follow. You will then evaluate the success of the primary cement job and, if necessary, recommend remedial work.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Cementing

expand/collapseDirectional, Horizontal and Multilateral Wells(a46)Module information - Printer Friendly

Competency Statement:

Contribute to the planning and design of non-conventional well completions.

Learning Objective:

Upon completion of this module, the participant should be able to
  • identify reservoirs that are suitable candidates for horizontal or multilateral wells
  • apply knowledge of the reservoir to a selection of the well trajectory
  • select the best general completion design for a horizontal or multilateral well in a given reservoir

Assignment Instruction:

Without directional drilling much of the world's oil and gas would be unrecoverable. Horizontal and multilateral wells, which are special applications of directional drilling technology, are a proven means of improving productivity and reducing overall development costs in certain types of reservoirs.

In this assignment, you will define basic directional drilling parameters and establish the trajectory for a possible re-drill of an existing well. You will look at the feasibility of horizontal and multilateral wells from a reservoir management perspective, and consider some of the issues involved in planning and designing these wells. By the time you complete this module, you should be able to calculate a simple well trajectory, identify candidate reservoirs for horizontal wells and select the best general completion design for a given reservoir.

Well 5C1-SW was the second well drilled in the Upper/Middle sands. Detailed log analysis and an open hole formation test indicated that the top of the Upper Sand at 14800 ft [4511 m] was below the oil-water contact. The well was subsequently plugged back with cement to the surface casing and suspended

Several members of the reservoir management team have suggested re-drilling this well upstructure to Block 5B1-NE. The drilling department will evaluate the feasibility and costs of re-drilling from below the surface casing. Your job will be to establish some of the basic directional parameters and calculating a trajectory for this well, which will be designated 5C1-SW R/D.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Directional and Horizontal Drilling

Horizontal Wells: Completion and Evaluation

expand/collapsePLAN: Production Fundamentals

Scenario
One of your jobs in this Learning Plan is to select the subsurface production equipment configuration for Well 5A1-SW, which will soon be selectively perforated in the Upper and Middle sands, and to predict the well's flowing performance. Other tasks will involve artificial lift screening, stimulation planning and production optimization, as well as developing general guidelines for testing new well in the Sucre field.

The team now feels that it has enough information to begin planning surface production facilities for the Sucre field. The other members want your input in determining the size and rough layout of these facilities.

Task Summary:
Select a general well configuration and specify requirements for subsurface production equipment. Describe the production system using nodal analysis, and predict flowing well performance. Evaluate potential artificial lift methods. Optimize well performance. Diagnose operating problems. Develop general well testing guidelines. Determine surface facility handling requirements, equipment needs and overall layout.

expand/collapseProduction Methods(a81)Module information - Printer Friendly

Competency Statement:

Apply basic production engineering principles to optimizing the reservoir exploitation scheme.

Learning Objective:

Upon completion of this module, the participant should be able to
  • select the optimal completion design and the proper surface and subsurface equipment for producing a flowing oil well efficiently and economically
  • optimize flowing well performance based on knowledge of inflow performance, vertical lift performance and surface choke performance
  • determine when artificial lift will be necessary in order to maintain oil production at desired levels, and select the most appropriate lift method for a given well
  • specify design and equipment requirements for placing a well on artificial lift

Assignment Instruction:

In this Learning Module, you will specify the completion design for Well 5A1-SW and evaluate its performance potential. By the time you complete this module, you should be able to optimize flowing well performance using nodal analysis principles, determine when artificial lift will be necessary in order to maintain oil production, and select the best lift method for a given set of operating conditions.

Well 5A1-SW has been recently drilled to the Upper/Middle sands. It is to be completed by selectively perforating the 7-inch casing, which has been cemented at a depth of 14400 ft. In this module assignment, you will review actual and estimated field data, select the general well configuration, and specify requirements for subsurface producing equipment. You will define the well's inflow performance relationship (IPR), determine its vertical lift performance for various producing rates, and establish surface flow parameters. You will then combine these analyses to define and predict the flowing well's performance. You will also review various artificial lift methods to determine how this well will be produced once it can no longer flow.

Background Learning Prerequisites:

expand/collapseProduction Optimization(a82)Module information - Printer Friendly

Competency Statement:

Optimize the perfomance of individual producing wells.

Learning Objective:

Upon completion of this module, the participant should be able to
  • analyze well behavior, using nodal analysis and interpreting historical production trends
  • diagnose equipment problems and/or detect production deviations
  • identify production problems relating to pressure decline, water, gas or sand production, low productivity, formation damage or equipment failure
  • recommend actions required for optimizing production, identify candidate wells for well servicing, stimulation and/or sand control and indicate the best method to use

Assignment Instruction:

In this Learning Module, you will review the actual performance of Well 5A1-SW, as well as that of several other wells in offsetting fields, in an effort to optimize their production rates. By the time you complete this module, you should be able to analyze well behavior using nodal analysis and historical production trends, diagnose equipment problems and/or detect production deviations, and recommend the appropriate action for optimizing production.

Well 5A1-SW has been completed in the Upper/Middle sands, and a production and buildup tests have been completed. You now need to see if the well's actual performance matches what was predicted before its completion. You will be looking for ways to optimize this well's production under both current and future reservoir conditions. You will also look at other wells, including two that are currently producing using electric submersible pumps and one that is planned as a rod pump completion, and make recommendations regarding their performance.

Background Learning Prerequisites:

expand/collapseProduction Facilities(a83)Module information - Printer Friendly

Competency Statement:

Determine surface facility requirements for handling the gas and liquid production volumes established for the reservoir.

Learning Objective:

Upon completion of this module, the participant should be able to
  • determine fluid handling and transport requirements for surface facilities and equipment
  • identify the surface facility components needed to handle the field's production, specifying their capacities and pressure ratings
  • generate a general surface facilities layout showing the path of the produced fluids from the wellhead to the transportation point (pipeline or loading rack)

Assignment Instruction:

In this Learning Module, you will make preliminary recommendations regarding the surface production facility design for the Sucre field. By the time you complete this module, you should be able to determine basic requirements for handling produced oil, water and gas, and develop a general surface facility layout showing the path of the produced fluids from the wellhead to the sales point.

A production forecast has been generated for the Upper/Middle sands based on extended production tests and currently available rock and fluid data. You will decide how to use this forecast in sizing the surface facilities, and you will determine what types of fluid handling, separation and treating equipment will be needed. You will also specify the path that the produced fluids will follow through the production facility. Although your work will be of a very preliminary and general nature, it will be instrumental in future cost analyses, budget planning, and, ultimately, selection of an optimal reservoir development scenario.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Wellheads, Flow Control Equipment and Flowlines

Fluid Separation and Treatment

Natural Gas Fluid Properties

expand/collapseWell Testing(a84)Module information - Printer Friendly

Competency Statement:

Design and execute a well test.

Learning Objective:

Upon completion of this module, the participant should be able to
  • select candidate wells for testing and specify test objectives
  • design a pressure transient test and select equipment in keeping with the stated objectives
  • monitor the test and interpret the results

Assignment Instruction:

In this Learning Module, you will establish basic objectives and procedures for testing new wells in the Upper/Middle sands of the Sucre field. You will also review tests that were run in other reservoirs, and use the results of a drill stem test (DST) to determine well deliverability parameters. By the time you complete this module, you should be able plan, execute, monitor and interpret a simple pressure transient test.

Formation evaluation of the Upper/Middle sands--including successful production tests of Wells 4E1-NE and 5A1-SW--has established this reservoir's commercial hydrocarbon potential. The reservoir management team has generated estimates of oil in place and recovery factors; it has even predicted a production schedule and outlined basic surface facility specifications. These estimates are, however, very preliminary, and based on assumptions which may or may not prove valid over time. There is still a good deal of appraisal and planning to be done before the reservoir moves into the development stage of its life.

Your assignment in this Learning Module is to assist in the reservoir appraisal by developing general guidelines for a well testing program, based on your understanding of formation evaluation objectives and test procedures. You will also be looking at DST results from wells in other fields so that you may become familiar with basic methods of test monitoring and interpretation. In later assignments, you will become more involved in the analysis of pressure transient tests, particularly with respect to modern interpretation methods.

Background Learning Prerequisites:

expand/collapsePLAN: Surface Geology and Reconnaissance

Scenario

In this Learning Plan you will learn to read surface geologic maps and how to evaluate geologic cross-sections based on these maps. You will use remote sensing data to interpret surface geology exposed over a larger geographic area. Combining knowledge from old maps with newer maps and other representations of the earth's surface requires geodetic coordinate systems. Working with rocks in both the outcrop and wellbore is critical to understanding the stratigraphy and structures of a basin. You will be exposed to the role of various stratigraphic tools including magnetostratigraphy, chemostratigraphy, isotopic dating and learn about their pitfalls and use in the exploration for hydrocarbons.  Identify main applications for gravity, magnetics and electro-magnetic surveys to explore basins for petroleum at a relatively low cost.

Task Summary:

As a member of a petroleum exploration team you will use various geologic methods and reconnaissance surveys to understand the development of a basin targeted for exploration and production activity. You will be asked to evaluate the surface geology and tie it into the subsurface. You will interpret the geomorphology and the surface geologic features of the basin using Landsat and radar images. Use geodetic coordinate systems to develop a topographic base map for a seismic survey and other geophysical surveys for initial exploration activity. Apply magnetostratigraphy, chemostratigraphy, and radiometric dating to determine the chronostratigraphy of the basin. Estimate the depth to basement and thickness of sediments in the basin with gravity, magnetics, and electromagnetic surveys.

expand/collapseSurface Geology(a560)Module information - Printer Friendly

Competency Statement:

Identify geologic units and structural elements on a surface geologic map. Demonstrate the use of geologic cross sections to tie these surface features into the subsurface.

Learning Objective:

  • Demonstrate ability to read surface geologic maps.
  • Understand various geologic cross-section preparation techniques and factors to evaluate the relationship between the surface geology and the subsurface geology.
  • Locate a particular rock unit and define the geographic distribution of that rock unit on a surface geology map.
  • Use outcrop descriptions from a stratigraphic column to interpret rock units on a geologic map.

Assignment Instruction:

As a Geologist in the New Ventures Team for Beta Exploration, Inc., your assignment is to evaluate new hydrocarbon exploration opportunities in the Eastern Venezuela Basin (see Location Map). Use the surface geologic map, geologic cross section and stratigraphic column provided in References and Field Data to interpret the surface geology and tie it into the subsurface. This information will aid in understanding the stratigraphy, structure, and petroleum system.

The studied area is located at the southern flank of the eastern Serrania del Interior (see Location Map). The surface geologic map shows the geographic distribution of the Cretaceous sedimentary rocks that outcrop in the area. The map was drawn using outcrop information, topography, and aerial photography.

The Cretaceous stratigraphic section consists of the Barremian to Albian age Barranquin, Garcia and El Cantil Formations and the Campanian age San Antonio Formation:

• The Barranquin Formation consists of coarse grained quartz sandstones, siltstones and shales of fluvial-deltaic environments that interbed with fossiliferous limestone towards the top.

• The Garcia Formation represents a rapid deepening of the environments, as well as deposition of 90 meters of dark, calcareous, highly fossiliferous shales.

• The El Cantil Formation is characterized by a shallowing trend of marine limestones and sandstones with carbonaceous shales.

• The San Antonio Formation is in fault contact with the Barranquin, Garcia and El Cantil Formations in the southern geologic map area.

Geologic cross section A-B presents the stratigraphic and structural configuration of the Early Cretaceous Formations on a west to east topographic profile across northern geologic map area.

The characteristic shaly and fossiliferous lithology of the Garcia Formation represents the maximum marine transgression for the Early Cretaceous of Eastern Venezuela and is a potential source rock. The stratigraphic column is located east of Pico Garcia where the type section of the Garcia Formation outcrops in a continuous manner (see Geologic Map).

Location Map for Eastern Venezuela Basin and Serrania del Interior range

 Relative location map Venezuela Eastern Basin

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Geologic Cross-Sections

Photogeology and Remote Sensing

expand/collapseRemote Sensing(a562)Module information - Printer Friendly

Competency Statement:

Understand different remote sensing data and apply it to petroleum exploration. Use remote sensing techniques to identify geomorphic and structural characteristics of the surface geology exposed over a larger geographic area.

Learning Objective:

• Understand how remote sensing data is acquired, processed and used to identify geomorphic and geologic elements on the Earth’s surface.

• Interpret drainage, surface geology, and structures from Landsat satellite imagery and radar images.

• Analyze regional structural styles from remote sensing images to aid in petroleum exploration.

Assignment Instruction:

As a Geologist in the New Ventures Team for Beta Exploration, Inc., your assignment is to use remote sensing data to evaluate new hydrocarbon exploration opportunities on the western edge of the Barinas-Apure Basin in Venezuela (see Location Map).

After the Landsat satellite photo imagery is processed, analyze the Landsat image at a 1:100,000 scale and radar images provided in References and Field Data to interpret the geomorphology and the related surface geologic features of the area:

1. Locate drainage patterns based on the surface hydrology.

2. Identify geomorphic features including valleys, terraces, and alluvial fans.

3. Map geologic elements such as strata, unconformities, folds, lineaments and faults.

Evaluate radar images to validate the Landsat image interpretation.

Location Map of the western Barinas-Apure Basin, Venezuela

Location Map in the Barinas-Apure basin

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Photogeology and Remote Sensing

expand/collapseGeodetic Coordinate Systems(a563)Module information - Printer Friendly

Competency Statement:

Understand the differences between coordinate systems and the variables that define them. Recognize the need to convert data from one system to another. Determine the most appropriate cartographic system for the area of interest.

Learning Objective:

  • Distiguish between different coordinate systems.
  • List variables necessary to define a coordinate systems.
  • Identify strengths and weakness of different coordinate systems.
  • Descripe work flow to establish coordinate system of different data types.
  • Describe the Global Positioning System and how it is used in determining geodesic positions.
  • Review and convert cartographic data and maps to the most applicable geographic system.

Assignment Instruction:

In this assignment, Beta Exploration Inc. has assigned the New Ventures Exploration Team to select the geodectic coordinate system for an area where they wanting to shoot a new seismic survey for exploration purposes. You need to understand geodetic coordinate systems; the following two projects will help with your understanding:

  • Create a geodetic survey to help analyze and interpret field data used to make a geologic map of Mexico
  • Develop a topographic survey in the Eastern part of Venezuela to place shot point and receiver for a seismic survey

You will establish the coordinate system for the two areas, taking into consideration the legal and technical standards of the two coordinate systems.  Your boss has asked for transformation, precision, and specific ties to be verified by horizontal and vertical control points.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Surveying and Mapping on Land

expand/collapseMagnetostratigraphy, Chemostratigraphy and Radiometric Dating(a561)Module information - Printer Friendly

Competency Statement:

Understand principles and techniques of magnetostratigraphy, chemostratigraphy and radiometric dating. Describe the practical application of these techniques in non-fossiliferous rock units. Explain how they provide pertinent information in petroleum exploration.

Learning Objective:

  • Describe the basic principles and techniques used in magnetostratigraphy.
  • Describe the basic principles and techniques used in chemostratigraphy.
  • Describe the basic principles and techniques used in radiometric measurements.
  • Demostrate an understanding of the geologic reasons to apply these techniques.
  • Incorporate these dating techniques with outcrop and surface geological maps.
  • Understand dating techniques for subsurface samples like conventional cores.
  • Understand advantages and disadvantages of each dating technique.

Assignment Instruction:

In this assignment you will use different dating techniques (Magnetostratigraphy, Radiometry, and Chemostratigraphy) to provide a geochronologic framework for exploration of several frontier areas.

Background Learning Prerequisites:

expand/collapseGravity, Magnetic and Electromagnetic Exploration Methods(a564)Module information - Printer Friendly

Competency Statement:

Recognize uses and limitations of gravity, magnetics and electromagnetic (EM) methods of exploration. List survey design criteria for each technique. Estimate the thickness of the sedimentary section of a basin using different data types.

Learning Objective:

  • Describe the basic principles and tools used in gravity, magnetic and electromagnetic techniques.
  • Identify main exploration application for gravity, magnetics and electro-magnetic surveys.
  • Outline design considerations of gravity, magnetic and electromagnetic surveys.
  • Apply basic interpretation techniques to determine depth to basement.

Assignment Instruction:

Potential Fields (Gravity, Magnetism and Electromagnetic) data are very often neglected as an exploration tool.

In the early history (1900 to 1960) of the petroleum industry, these methods played a significant role in the discoveries of most of the reserves already consumed worldwide.  These discoveries included almost 100% of the onshore fields in Texas, California, Russia, Iraq, Iran, Saudi Arabia and Venezuela, which are still under exploitation today.

Since the 90′s, an integrated interpretation (using gravity, magnetism, seismic, well and outcrop data) is the common standard in many major O&G companies.

Electromagnetic methods were the preferred tool of choice used by the Russians in the exploration and discovery of its vast reserves until the 70`s, using either magneto-telluric or conventional arrays.  Also, in the present, electrical methods are used to detect aquifers which are of interest for water formation disposal and /or CO2 sequestration.

In this Assignment, you will play the role of a Geophysical advisor to diverse E&P teams within your company.  Your duties will include:

  • Defining the feasibility of gravity and/or magnetic surveys (establishing if a given geological configuration is detectable using gravity and/or magnetic measurements)
  • Defining parameters for gravity data acquisition and processing
  • Interpreting gravity and/or magnetic data in order to detect and characterize causative bodies (basement and/or within the sedimentary section), and for establish next steps in exploration
  • Interpreting Magneto-Telluric data to interpret basement structural features
  • Defining the feasibility of electrical surveys (establishing if a given geological configuration is detectable using conventional electrical methods)
  • Defining parameters for acquisition and processing of electrical data
  • Interpreting electrical data in order to recommend future activities in either water formation disposal and /or CO2 sequestration, produced at fields presently under exploitation

Background Learning Prerequisites:

expand/collapsePLAN: Seismic Methods

Scenario

The seismic methods Learning Plan offers a brief summary of some of the more commonly used seismic techniques and interpretive methods. The aim of this plan is to provide a practical guide focusing on the connection between geology and seismic sections. We will begin with seismic reflection methods which depend on the generation and detection of acoustic waves. Reflection of energy takes place at boundaries between sediment/rock layers of differing acoustic impedance contrast. Reflected energy is detected by receivers and processed electronically to improve the signal/noise ratio. Returning signals from each shot are displayed against time as one line across a seismic record, time zero being at the shot instant. Successive shots are display as adjacent lines/scans on the recorder, building up a profile. This profile is then manipulated to enhance the geological features through experimentation with processing parameters and the data is converted to depth in order to make accurate drilling location proposals.

Task Summary:

This learning plan is designed for you to use some of the same data from exercise to exercise, imulating real world techniques. We suggest that you keep notes of your work and answers. The exercises are set up to mimic real life situations in an oil and gas company.

 

In this learning plan you start with the basics of seismic data acquisition; you learn about issues you will face and how to use existing data to start your research. You learn about the instruments involved in a geophysical shoot and how to design the survey for optimum signal/noise ratio. You will learn how to process the data, from removing bad data to enhancing good. The processed data is used for interpretation and you will learn what attributes are best for the different areas of study. And you will finish by creating a seismic cube which can be transformed into a structural map to give to management for determining future drilling or seismic surveys.

expand/collapseSeismic Data Acquisition(a600)Module information - Printer Friendly

Competency Statement:

Select the most favorable seismic acquisition configuration for the area of interest. Select source and receiver array for proposed survey. Evaluate trade-off between 2D and 3D acquisition for the exploration objective.

Learning Objective:

  • Understand the primary principles of seismic survey design.
  • Identify the basic concepts and field operations involved in seismic data acquisition.
  • Contrast differences between 2-D and 3-D acquisition.
  • Describe key elements of marine vs. non-marine acquisition.
  • Evaluate horizontal and vertical seismic resolution.
  • Evaluate practical considerations in survey design.

Assignment Instruction:

You are a member of the geophysics E&P team for Acme Inc.  Your team is presently involved in the seismic data acquisition process in Bass Basin, offshore Australia.

Seismic prospecting is one of the most widespread tools for hydrocarbon exploration based on its ability to describe structurally the area of interest or obtain acoustic (sometimes elastic) response of the rocks and fluids contained within. Seismic acquisition represents more than 80% of the exploration financial investment. Therefore, good survey design is crucial not only for the quality of the image but also for economical reasons.

In this scenario you will design a simple 3D marine seismic survey based on an initial geological description and some basic seismic information. The main parameters for this design are:

  • Areal extent of the survey
  • Line length
  • Migration aperture
  • Line interval
  • Group interval
  • Shot interval
  • Vertical and horizontal resolution

Basin depositional models indicate that probable reservoir sands are within the oil window, giving deep unexplored portions of the Bass basin considerable petroleum potential. The survey objective is to highlight all Paleocene formations through the area with 48 fold coverage near structural traps. For this exercise the complexities of shot interval calculation due to vessel speed and air-gun recovery are not taken into account.

The Assignment Pages should be done sequentially as all answers can be used as input for subsequent questions; take note of all your findings while completing this exercise.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Introduction to Field Work

Positioning and Mapping at Sea

Multiple Coverage

Choosing the Field Variables

Quality Control in the Field

3D and 4D Seismic

expand/collapseGeophysical Instrumentation(a601)Module information - Printer Friendly

Competency Statement:

Evaluate the physical mechanics of source and receivers. Describe receivers and possible receiver configurations depending on noise. Review application of field testing. Evaluate basic recording instrument types. Incorporate quality control during data collection.

Learning Objective:

  • Describe different types of seismic sources, receivers and their applications.
  • Identify the most common types of recording instruments.
  • Identify the most common types of restrictions that limit configuration of a seismic program.
  • Describe different data formats for the acquisition process.
  • Propose a work flow to monitor and maintain quality control over seismic acquisition procedures.

Assignment Instruction:

Subsurface seismic imaging involves wave generation and wave recording, usually at surface level and quite complex because targets are several kilometers deep. You need a strong and clean signal (emission and reception) to enhance your subsurface image. However, the amount of seismic information can easily exceed the terabyte size and there are many noise sources which degrade the quality of the seismic data.  The instruments you select must be adequate to topographic and environmental conditions to obtain the best possible signal/noise ratio.

In this assignment you have been requested to analyze an area for environmental, topographical, and cultural considerations affecting a seismic survey. You will propose the best source/receiver configuration for the survey.

Specifications and descriptions for available seismic equipment are located in Reference and Field Data. It is strongly suggested to read this material before attempting this exercise. You can also save the information on your hard drive to keep it easily available.  

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Introduction to Field Work

Choosing the Field Variables

Quality Control in the Field

Vertical Seismic Profiles

3D and 4D Seismic

Initial Processes

Stacking, Filtering and Display

expand/collapseSeismic Survey Design(a607)Module information - Printer Friendly

Competency Statement:

Describe environmental factors requiring modification to normal marine/non-marine seismic data acquisition. Include access, water depth, surface terrain, noise, and obstructions. Indicate appropriate source, receiver, or geometries considerations for each case.

Learning Objective:

  • List non-conventional seismic survey types and their application.
  • List non-conventional source and receiver types and their application.
  • List source and receiver limitations for a transition zone seismic survey.
  • Describe possible shooting solutions for seismic acquisition in an existing field with obstructions.
  • Describe exploration reasons for shear wave acquisition.

Assignment Instruction:

Seismic survey design is a complex task. In addition to wave propagation, survey design depends on costs, logistics, safety regulations, environment, and geographical settings. The design for a particular survey should take into consideration all geological and geophysical requirements as well as the survey environment. A successful seismic survey design not only generates a good seismic image of the subsurface but does so economically, safely, efficiently, and as environmentally friendly as possible.

In this assignment your responsibility is to make decisions regarding the design of three seismic surveys:

  • Project #1: A seismic survey in a transition zone.
  • Project #2: A seismic survey in an area with obstructions
  • Project #3: A shear wave survey in a marine environment

As part of your responsibilities, you will:

  • Decide which seismic source and receiver type is most appropriate for a specific area.
  • Decide which operational technique is most suitable for specific areas of a transition zone survey.
  • Make decisions when faced with operational limitations in a transition zone.
  • Identify possible shooting solutions when obstacles are encountered.
  • Decide between telemetry and distributed systems depending on environmental factors.
  • Identify important aspects of shear wave acquisition.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Introduction to Field Work

Multiple Coverage

Array Design

Vibroseis

Choosing the Field Variables

Multicomponent Seismic Applications

3D and 4D Seismic

expand/collapseSeismic Data Processing(a602)Module information - Printer Friendly

Competency Statement:

Design the seismic processing sequence by selecting the appropriate processing methods. Perform the data processing and quality control, and work with the interpreter to make sure that the outcome truly reflects the geological characteristics of the area.

Learning Objective:

  • Describe the basic seismic processing sequence from pre-processing and deconvolution through stacking and velocity analysis, to migration and post-processes.
  • Understand the application of different types of deconvolution, velocity analyses, and migration techniques.
  • Review processing steps in the context of the objectives of the seismic interpretation.

Assignment Instruction:

Reflection seismic methods, as part of the seismic data processing process, are the tools of choice for hydrocarbon exploration because they can give an image of the subsurface and its structural and sometimes, stratigraphic features. Seismic data processing is the cornerstone for this image generation from the raw data recorded at seismic surveys. Different processes are applied to improve the quality of the image, not only for the purpose of interpretation but also for extracting acoustic and elastic information from seismic sections or volumes.

This assignment introduces you to the basic theoretical concepts and its applications at different seismic processing stages.

During this exercise you will process a 3D onshore seismic survey.

  • The survey area is about 500Km2 with low structural complexity.
  • One well is drilled in the survey.
  • The target is around 3 seconds two-way travel time.
  • The seismic source used was dynamite.
  • From previous 2D seismic information, the main faulting system is extensional with some half-graben interpreted.

Your task is to go through the QC (Quality Control) of a processing sequence applied to seismic data.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Basic Processing

Initial Processes

Velocities

Stacking, Filtering and Display

Seismic Migration

Deconvolution

Static Corrections

expand/collapseWellbore Seismic(a603)Module information - Printer Friendly

Competency Statement:

Evaluate the applicability of wellbore seismic technology to a particular well.  Determine the need for check shot survey, synthetic seismogram, vertical seismic profiling (VSP), and cross-well tomography. Use seismic sections, petrophysics, and geological information to determine the wellbore seismic program.

Learning Objective:

  • Identify the applicability of a wellbore seismic program for the exploration objective.
  • Acquisition configurations for different wellbore seismic techniques.
  • Describe the acquisition and QC of the check shot survey / VSP.
  • Describe the generation and QC of a synthetic seismogram from well logs and check shot data.

Assignment Instruction:

Surface seismic is the tool of choice for reservoir delineation. However, the generated image is always an offset-time image. In order to obtain an offset-depth image (which corresponds to a more accurate subsurface picture) several techniques have been developed. Synthetic seismograms, check shots, and VSP (Vertical Seismic Profile) surveys are some of these techniques.

This assignment introduces you to synthetic seismograms generation and how it correlates with seismic data. You will also develop a VSP project in which you will learn the usefulness of seismic-well calibration.

You are assigned to two different projects for the Upstream Technology Group, Inc. (UTC). The project descriptions are:

Synthetic Seismogram Building and Seismic-Well Calibration: In an exploratory block a 3D seismic survey has been acquired. Only one well has been drilled (Well UTC-1X). This well has a total depth of 6390’; GR, density, and DT logs were run from 4000’ to final depth. An T-Z table was obtained using a local check shot.

Zero-Offset VSP survey acquisition, processing and interpretation: An offshore exploratory block has 3D prestack seismic data. A successful well has been drilled (Well UTC-1Y) and UTC wants to calibrate the seismic with the well information to give a better picture of the prospecting horizons in their areal extent.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Other Geophysical Techniques

Vertical Seismic Profiles

Synthetic Seismogram Modeling

expand/collapse2D Seismic Interpretation (a604)Module information - Printer Friendly

Competency Statement:

Evaluate seismic sections to interpret chronostratigraphic units and structural elements.  Use the techniques of seismic interpretation to pick horizons and faults over an interval of interest. Tie existing well information to the seismic section using a synthetic seismogram. Combine the seismic interpretation and well data to create a seismic time map.

Learning Objective:

  • Tie well information to the seismic section using the synthetic seismogram or check shot survey.
  • Identify major reflections in the seismic data set.
  • Enumerate criteria for picking faults based on the regional structural style.
  • Describe conformable and unconformable seismic reflection geometry.
  • Describe the steps to complete a seismic time map.

Assignment Instruction:

Your company is planning to bid on an offshore area. The only information available is 160 Km of 2D seismic and two wells with logs (see below).  As a member of the exploration team, you will use this information to evaluate the hydrocarbon potential of the area. You will propose to your management whether or not to bid by providing the seismic interpretation of the area. By mapping structural and stratigraphic features with exploration potential, you will also propose further seismic surveys and/or reprocessing of existing seismic lines as needed.

2D seismic lines and wells distribution

 2D seismic lines and wells distribution


Data Provided:

  • Six 2D seismic lines
  • Well A Info (TD=11940 ft), Sonic log, gamma ray log, density log, check shot survey
  • Well B Info (TD=12585 ft)
  • Map with seismic lines and wells location

Do the assignment sequentially as all answers might be used as input for subsequent questions. You should take notes of all your answers.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Classic Sequence Stratigraphy

Introduction to Field Work

Seismic Contouring

Velocity Interpretation and Depth Conversion

Seismic Reflection

Fault Interpretation

expand/collapse3D Seismic Interpretation(a606)Module information - Printer Friendly

Competency Statement:

Interpret a 3D seismic survey using seismic sections and time slices to interpret horizons and faults. Display an understanding of the use of time slices, horizon slices and other 3D techniques play in 3D interpretation.

Learning Objective:

  • Identify common horizon auto-picker parameters and their effects.
  • Enumerate criteria for picking faults on time slices.
  • Describe various 3D survey display options.
  • Describe creation and uses of horizon slices.
  • List parameters for amplitude extraction of a 3D horizon.

Assignment Instruction:

Your company is interested in a deep water basin (see map below) that will be up for auction soon. They have assigned you to evaluate the area for future investment. Only four wells have been drilled in the basin, the results were:

  • Well A: dry
  • Well B: dry with gas shows
  • Well C: oil discovery well
  • Well D: oil and gas discovery well

The first step in your assignment is to analyze structure maps, time slices, and attributes maps/horizons created from the interpretation of two 3D seismic volumes. Once you have analyzed the data, you will:

  • Use the information to present a structural and stratigraphic framework for the area
  • Recommend the use of certain techniques to improve the knowledge of the basin
  • Convey to your company the meaning of seismic amplitudes and the character of the seismic reflection data
  • Use the available data to propose and support potential prospects in the area
  • Rank the prospect in economic terms

Scenario Map

Scenario Map

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Prospect Generation

Hydrocarbon Indicators

Seismic Stratigraphic Modeling

3D and 4D Seismic

Fault Interpretation

expand/collapseSeismic Attributes and Direct Hydrocarbon Indicators (DHI)(a608)Module information - Printer Friendly

Competency Statement:

Evaluate seismic attribute sections to enhance conventional seismic interpretation. Identify the seismic effects of a 'bright spot' anomaly and their physical cause. Describe the Amplitude Vs. Offset (AVO) effect and the physics that govern the response. List the attributes of the Hilbert Transform and their mathmatical formulation.

Learning Objective:

  • List possible effects to seismic amplitude response on 'Bright Spot' prospect.
  • Describe AVO response and its causes.
  • Explain the limitations of AVO response.
  • Review Hilbert transform attributes.
  • Describe work flow for evaluating attribute effectiveness.

Assignment Instruction:

Surface seismic is the most important tool for delineating a reservoir. In the past, most of the effort was focused on structural imaging. However, due to the advances in computational hardware and new theoretical approaches to sedimentation processes and wave phenomena, seismic attribute analysis has become a major focus for locating hydrocarbon indicators. AVO, amplitude analysis, frequency decomposition, wave attenuation, and elastic inversion are only a few techniques which transform wave information into hydrocarbon indicators. The following assignment teaches us the importance of attribute characterization.

Your team is working in a gas prone area. Two exploratory wells have been drilled in the area; the first well is located over a structural high and successful and the second is located down dip and dry. Drilling plans and locations for both wells were planned using 2D conventional seismic. A new 3D seismic survey was acquired in order to give a better picture of the gas-water contact distribution. Interpretation uses seismic attributes as hydrocarbon indicators.

The main target is the reservoir discovered by the first well at 4500’ depth (2000ms, two way time). Other possible reservoirs might exist at 3500ms and 7000ms. You will use the 3D seismic to extract and analyze seismic attributes; you are responsible from the seismic QC to AVO characterization. You will also make a proposal for the potential reservoirs.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Hydrocarbon Indicators

Seismic Stratigraphic Modeling

Basic Processing

Velocities

expand/collapsePLAN: Well Logging and Subsurface Mapping

Scenario
The project team is compiling an information database for the Sucre field during this, the appraisal stage of its life. You need to give your ideas on how this database will contribute to the reservoir management task, and what information it should contain. Meanwhile, drilling has begun at Well 2A5-NE. The team's field geologist is at another location evaluating core material, and so you have been put in temporary charge of this well's open hole logging program.
Task Summary:
Establish general data acquisition requirements for an integrated reservoir study. Select and apply the appropriate tools for an open hole logging survey. Define basic logging parameters, establish log scales, monitor tool responses, and confirm the validity of the acquired log data. Interpret the logs to obtain an initial evaluation of hydrocarbon potential.

expand/collapseInterdisciplinary Data Acquisition(a121)Module information - Printer Friendly

Competency Statement:

Gather, view, classify and validate the multidisciplinary information required for conducting integrated reservoir studies.

Learning Objective:

Upon completing this Learning Module assignment, the participant should be able to
  • access PDVSA engineering and geoscience databases and identify information that is relevant to the field under study.
  • classify information according to discipline and what reservoir parameters it helps to define.

Assignment Instruction:

In this Learning Module, you will establish general data acquisition requirements for an integrated reservoir study of the Sucre field. You will consider both existing and potential data sources, and determine what information you need to start building a reservoir model. By the time you complete this module, you should be able to determine information needs, identify and access interdisciplinary data resources, and compile reservoir information based on the parameters to be defined.

In this Learning Module assignment, the reservoir is in the early appraisal stage of its life. Its status at the time of this assignment is as follows:

  • A structure contour map has been generated from seismic data and interpretations of regional geological data.
  • Well 4E1-NE, the discovery well, is currently on an extended production test.
  • Well 5C1-SW tested all water, and was subsequently suspended.
  • Drilling is in progress on Well 2A5-NE. A conventional coring program has been authorized, and should be getting underway soon.

The reservoir management team is already at work compiling a database of reservoir information. Your job in this assignment is to provide some ideas of what this database can contribute to the task of reservoir management, and what information should be added to it.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Hydrocarbon Indicators

Oil Well Testing

Reservoir Environments and Characterization

Fundamentals of Reservoir Engineering

Reservoir Modeling and Reserves Evaluation

Issues in Reservoir Management

Overview of Formation Evaluation

expand/collapseWireline Well Logging(a122)Module information - Printer Friendly

Competency Statement:

Select and apply the appropriate well logging tools for a particular set of well conditions and reservoir study parameters.

Learning Objective:

Upon completing this Learning Module assignment, the participant should be able to
  • select the appropriate logging tool(s) for evaluating a given reservoir prameter, taking into account operating conditions and limitations.
  • specify procedures, surface equipment, and auxiliary tools to be employed on a logging job.

Assignment Instruction:

In this Learning Module, you will select and apply the appropriate tools for conducting open hole logging surveys at Well 2A5-NE, based on well conditions and formation evaluation objectives. By the time you complete this module, you should understand the basic operating principles of commonly used logging tools and be able to determine their areas of application.

Conductor casing has been set at Well 2A5-NE, and the surface hole is currently being drilled. Your tasks in this assignment are to review the surface logging program, and then to select the appropriate tools for logging from Target Depth to the shoe of the surface casing.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Logging Equipment and Procedures

Well Logging Tools and Techniques

Overview of Formation Evaluation

expand/collapseWell Log Quality Control(a123)Module information - Printer Friendly

Competency Statement:

Validate the quality of information supplied by the logging service company to ensure that the data can be used in generating a petrophysical reservoir model.

Learning Objective:

Upon completing this Learning Module assignment, the participant should be able to
  • monitor the quality control of logging procedures, including calibration, correction and choice of scales)

Assignment Instruction:

In this Learning Module, you will be in charge of well log quality control at Well 2A5-NE. By the time you complete this module, you should be able to define basic survey parameters, establish log scales, monitor tool responses, and confirm the validity of the data acquired from commonly used logging devices.

You are approaching target depth on Well 2A5-NE, and you will shortly be calling out the service company crew to log the 8 1/2 inch hole interval. Your job in this assignment is to establish some general guidelines for conducting logging operations, review tool calibrations and monitor survey progress.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Logging Equipment and Procedures

Well Logging Tools and Techniques

Overview of Formation Evaluation

expand/collapseWell Log Interpretation(a124)Module information - Printer Friendly

Competency Statement:

Determine reservoir rock properties using well log analysis.

Learning Objective:

Upon completing this Learning Module assignment, the participant should be able to
  • Use log analysis to identify reservoir rock properties (fluid saturation, porosity, fluid contacts, permeabilities, bulk shale content, net oil sand, fractures)

Assignment Instruction:

In this Learning Module, you will use basic well log interpretation techniques to identify potential pay zones, define basic reservoir properties and estimate the hydrocarbons in place in terms of reservoir volume per unit area. By the time you complete this module, you should be able to apply log analysis methods to the task of generating a petrophysical reservoir model.

The open hole formation evaluation program at Well 2A5-NE is in progress, and field copies of the lithology, resistivity and porosity logs are now available. Your job in this assignment is to review these logs and make an initial evaluation of the well's hydrocarbon potential. Your evaluation is an important first step in deciding whether to complete the well, so be sure to carefully examine the log data.

Background Learning Prerequisites:

expand/collapseSubsurface Mapping(a125)Module information - Printer Friendly

Competency Statement:

Develop geological, petrophysical and sedimentological maps for use in generating a reservoir model.

Learning Objective:

Upon completing this Learning Module assignment, the participant should be able to
  • generate geologic cross sections from well logs.
  • draw subsurface contours and construct geologic and geophysical maps.

Assignment Instruction:

The original structure contour map for the Upper/Middle Sand reservoir was derived from seismic data acquired from an independent operator. Since then, three wells have been drilled, and the seismic data have undergone reprocessing and extensive additional interpretation. As a result, you now have a new base map, which shows the locations of the new wells and depth markers to the top of the Upper Sand. In this assignment, you will revise the Upper Sand structure map to reflect these new data (be careful--the updated map may or may not be similar to the original map!)

To complete the assignment, you will consider several additional formation parameters that may be conducive to subsurface contour mapping, and consider how they could be used to describe this reservoir.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Geologic Cross-Sections

Subsurface Mapping

Seismic Contouring

Reservoir Environments and Characterization

Issues in Reservoir Management

Structural Geology

expand/collapseReserves Definitions, Reporting and Mapping(a126)Module information - Printer Friendly

Competency Statement:

Elaborate and update from the maps generated during the modeling of the reservoir, the maps required by the Ministry of Energy and Mines in offical format, for the administration and control of the reserves.

Learning Objective:

Upon completing this Learning Module assignment, the participant should be able to
  • access the applications used to generate MEM maps in official formatt
  • generate a map using the applciations.

Assignment Instruction:

The Ministry of Natural Resources is a department of the National Executive of the Republic of Sucre. Its responsibilities include establishing norms and regulations for business operations in the hydrocarbon sector, in accordance with laws established by the National Legislature.

The Ministry's organization and objectives are basically the same as those of the Ministry of Energy and Mines (MEM) in the neighboring Republic of Venezuela, and the norms that it has established for oil and gas operations are identical to MEM standards. For this reason, the questions that you are asked in this assignment use MEM standards as primary reference sources.

To access the MEM references, click on the "Practical Knowledge" link

In this Assignment, you will review the present status of the Upper/Middle sand reservoir, determine what reports you need to submit to the Ministry, and decide how to classify well locations and estimated hydrocarbon reserves in keeping with established norms. You will also ensure that the symbols and conventions used in the official maps that are submitted with these reports are consistent with Ministry standards. By the time you complete the Assignment, you should be able to comply with MEM standards for reporting reserves and generating subsurface maps using accepted symbols, conventions and nomenclature.

The current status of the Upper/Middle sand reservoir is as follows:

  • Well 4E1-NE, the discovery well, is on an extended production test. Permanent completion is pending.
  • Well 5C1-SW was suspended after well logs and a formation test indicated that it exposed the Upper Sand below the water-oil contact.
  • Well 2A5-NE has been drilled and tested, and a successful open hole formation test has been carried out.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Subsurface Mapping

Fundamentals of Reservoir Engineering

Reservoir Modeling and Reserves Evaluation

expand/collapsePLAN: Reservoir Characterization and Modeling

Scenario
Based on a re-evaluation of seismic data, and with the information obtained from recently drilled wells in the Sucre field, your supervisor has asked you to review and, if necessary, revise the structure contour map for the top of the Upper Sand. You will also be doing some additional mapping of an older offset reservoir. Once you complete your mapping assignments-and after examining some issues involving compaction and subsidence in a nearby field-you will re-join the Sucre project team as it works on building a reservoir model.
Task Summary:
Review and, if necessary, revise the existing structure contour map of the Upper sand horizon. Develop supplemental maps of an offset reservoir, incorporating geological, petrophysical and geophysical data. Evaluate the impact of compaction, subsidence and settling on reservoir performance. Interpret pressure and production data-in particular, pressure transient test results-for incorporation into the reservoir model. Identify reservoir flow units. Apply analytical and numerical simulation techniques to the development, testing and refining of a reservoir model.

expand/collapseCompaction and Subsidence(a127)Module information - Printer Friendly

Competency Statement:

Analyze, calculate and validate compaction, subsidence and settling parameters to predict their influence on the behavior of the project and their impact on recovery, using the results of this analysis to optimize exploitation projects.

Learning Objective:

Upon completing this Learning Module assignment, the participant should be able to
  • measure compaction, subsidence parameters.
  • determine the significanc of these parrmeters with re determining drive mechanisms, etc.

Assignment Instruction:

A sedimentary formation is the product of rock particle deposition, an ongoing process in which an underlying layer of particles is buried and forced downward by succeeding layers. As deposition and burial proceed, the underlying layer is subjected to a progressively increasing overburden pressure. This increased overburden results in compaction--a reduction in the thickness and bulk volume of the underlying layer.

Compaction also takes place when fluids are withdrawn from a subsurface formation. Fluid withdrawal causes a decrease in pore pressure, which in turn increases the grain-to-grain, or matrix pressure of the rock particles and causes them to compact. The amount of compaction that occurs in a given formation depends only upon the difference between the vertically applied overburden pressure and the fluid, or pore pressure. Thus, the uniaxial compaction of a rock sample of thickness h can be expressed as

    DVb/ Vb = Dh/h

Depending on geological conditions, subsurface compaction may be associated with varying degrees of subsidence, or sinking of the ground at the surface.

Compaction and its associated effect of surface subsidence can, in certain situations, have significant effects on reservoir management strategies and field operations. In this Assignment, you will build your general understanding of these phenomena and see how they can influence reservoir engineering decisions. You will also look at a system that has been developed by PDVSA to describe and predict compaction and subsidence in areas where they are of particular concern.

By the time you complete this assignment, you should be able to identify situations where compaction and subsidence may be important considerations in a reservoir management strategy, and you should be able to begin using computer-based tools for predicting compaction and subsidence under various conditions.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Reservoirs

Porosity Evolution in Sandstone Reservoirs

Drilling Problems and Drilling Optimization

Reservoir Environments and Characterization

Fundamentals of Reservoir Engineering

expand/collapsePressure/Production Data Analysis(a128)Module information - Printer Friendly

Competency Statement:

Analyze and interpret pressure and production data for incorporation into the reservoir model.

Learning Objective:

Upon completion of this module, the participant should be able to
  • review and acquire well test information
  • validate pressure test information
  • prepare well test data for analysis
  • diagnose and interpret the pressure test
  • design and interpret production records; analyze production behavior

Assignment Instruction:

Well 4E1-NE is the first well drilled in the Upper/Middle Sand reservoir. The well was completed with 7-inch casing, selectively perforated and placed on an extended production test. Testing was conducted in several stages. The first stage, which is the subject of this assignment, involved testing 16 feet of interval in the upper portion of the identified pay intervals. This test was designed to gather information on reservoir flow characteristics, and in particular, to determine the nature of a nearby fault that had been identified on the structure map. Your job in this assignment is to review the data from this initial test and evaluate the reservoir permeability, near-wellbore effects and boundary effects.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Well Log Interpretation

Fundamentals of Well Testing

Oil Well Testing

expand/collapseFlow Unit Determination(a129)Module information - Printer Friendly

Competency Statement:

Establish flow units within the reservoir.

Learning Objective:

Upon completing this Learning Module assignment, the participant should be able to
  • Establish the areal and vertical distribution of zones with similar behavior in agreement with the reservoir model.
  • Identify and delineate the rock volumes with sedimentological, petrophysical and reservoir properties that enable hydraulic communication.

Assignment Instruction:

Most reservoirs are not homogeneous. Rather, they exhibit complex variations in continuity, thickness patterns and other properties, including porosity, permeability and capillary pressure. A reservoir is typically subdivided into zones or areas based upon differences in rock properties. The complexity of reservoir rock imposes a challenge to geoscientists and engineers in applying available technologies and their experience to improving oil and gas recovery.

The purpose of geological mapping is to identify flow units that contain oil and gas, and once they are found, to apply geologic evidence and concepts toward achieving the most efficient development and production of these prospects. However, it is important to remember that these geologic maps are never finished. When new wells are drilled or old wells are re-examined, new information becomes available, and the extent and geometry of flow units must be updated. Original maps may be based upon a few scattered control points. This means that in the early stages of geological work, a careful study of the local area should be made.

Lithofacies maps are quite helpful in defining various reservoir rock types. The correlation of a number of reservoir properties, including porosity and permeability, becomes much more meaningful when applied to a specific rock type.

During the production phase of a reservoir, more information about flow units is obtained by transient well testing and careful monitoring of individual well performance. Reservoir pressure maps are particularly useful for evaluating reservoir continuity. The areal distribution of reservoir pressure in different zones as a function of time can help us to identify pay discontinuities and flow barriers. Vertical pressure profiles are also useful in defining the effect of vertical permeability within a given reservoir section.

History matching of field performance, using a numerical reservoir simulator, can provide great insight into the continuity of flow units and reservoir properties in inter-well areas where there is no measurements. In this process, the geological properties such porosity, permeability and pay continuity are changed in order to match the observed field performance.

Different steps in gathering data for flow unit determination are:

In the geological phase:

  • General reservoir configuration
  • Fluids distribution
  • Continuity and thickness
  • Rock type, porosity and permeability cutoffs
  • Fluid contacts
  • Vertical stratification

During the production phase:

  • Logging
  • Well performance
  • Well testing
  • Relative permeability, capillary pressure and wettability tests
  • Inter-well tracers

In this assignment, you will be taking a short break from your work in the Sucre field, while the geologists on the reservoir management team prepare an analysis of some of the information that has been gathered so far from the upper/middle sands. During this time you will work on identifying the flow units within another reservoir where your company is actively involved in the Nuri formation.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Geologic Cross-Sections

Subsurface Facies Analysis

Classic Sequence Stratigraphy

Applications of Petroleum Geochemistry

Cased Hole Logging

Reservoir Environments and Characterization

Fundamentals of Reservoir Engineering

expand/collapseReservoir Simulation(a130)Module information - Printer Friendly

Competency Statement:

Apply analytical and numerical simulation techniques to the development, testing and refining of a reservoir model, and the generation of an optimal reservoir exploitation plan.

Learning Objective:

Upon completion of this module, the participant should be able to
  • define reservoir simulation objectives
  • define simulator geometry and dimensions, and assign flow equations to the proposed model
  • define simulator grid and boundary conditions
  • compile reservoir model input parameters
  • develop finite-difference approximations to solve the flow equations
  • plan numerical simulation computer runs and interpret the results
  • use simulation results to determine the optimum exploitation scheme

Assignment Instruction:

A typical reservoir simulation study is conducted in four stages:
  1. Gather all relevant reservoir data.
  2. Initialize the developed model.
  3. Validate the model using a history matching process.
  4. Forecast the reservoir's future behavior.

Once the structure, thickness, porosity and permeability maps are obtained, the data need to be discretized according to the gridding system used. Fluid properties are entered into the model either using a data table or in the form of a correlation. For multi-phase flow problems, relative permeability relationships and capillary pressure curves also need to be obtained.

Models are typically initialized with respect to the water/oil or gas/oil contact depths and a reference datum-level pressure value.

For the initialization, the simulator is run until the hydrostatic equilibrium of the existing phases is established.

Validation of the model requires a detailed production history of all wells in the reservoir. The production data should contain information about open intervals, well stimulations and production rate of each phase (oil, gas, water).

After the model is history matched against the existing production data, it can be used to predict future reservoir behavior for different development scenarios.

Keep in mind that these predictions are only as good as the basic input that was entered into the model.

Your assignment here is to gather all the iso-surface maps and fit a body-centered grid on top of the reservoir structure.

You also need to collect all the PVT data that will be used during the simulation.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Fundamentals of Reservoir Engineering

Improved Recovery Processes

Reservoir Modeling and Reserves Evaluation

expand/collapsePLAN: Reservoir Description and Characterization

Scenario

Beta Petroleum is drilling the Gama 1 petroleum exploration well on the Gama Structure in the New Basin. If the "wildcat" exploration well is successful, three additional appraisal wells may be drilled to delineate the structure and characterize the reservoir. The learning module assignments will use well logs, geologic samples, geophysical data, and geostatistical methods to evaluate the reservoir quality, size, continuity, and petroleum reserves to determine if the Gama Structure can be developed into an economic hydrocarbon field.

Task Summary:
  • Prepare an exploration well logging program and use the logs to calculate basic petrophysical parameters of petroleum reservoir.
  • Interpret well logs and samples to direct an appraisal well drilling program to define the extent of petroleum reservoir.
  • Estimate original hydrocarbons in place with well logs and a geological reservoir model.
  • Analyze and interpret seismic and geological data to help describe a reservoir.
  • Use statistical methods to describe and characterize the hydrocarbon-bearing reservoir.

expand/collapsePetrophysical Evaluation(a640)Module information - Printer Friendly

Competency Statement:

Prepare a logging program for a petroleum exploration well. Determine lithology and pore fluid properties using open hole wireline logs, mud logs, wireline formation tester samples and side wall samples. Use log data to calculate petrophysical properties of a petroleum reservoir including clay volume, porosity, and water saturation.

Learning Objective:

  • Define key petrophysical properties measured by logging tools and their application to petroleum reservoir characterization.
  • Understand the operating principles, capabilities, limitations and uses of common open hole logging devices.
  • Describe basic response and limitation of each log curve type.
  • Determine the petrophysical parameters of a petroleum reservoir: lithology, clay volume, porosity and water saturation.

 

Assignment Instruction:

Beta Petroleum is planning to drill an exploration well on the Gama structure in the New Basin (see location map). As the Operations Geologist, you will consult with the Petrophysicist to:
  • Develop a data acquisition program (mud-logging and wireline logging) for the Gama 1 well.
  • Understand Quick Look evaluation of log responses for a variety of lithology and pore fill possibilities.
  • Use Quick Look evaluation of the Gama 1 well logs to select wireline formation tester (WLFT) pressure measurement and sample points and to select side wall sample (SWS) depths. You will interpret the fluid distribution in the well and determine the petrophysical parameters of the petroleum reservoir: clay volume, porosity and water saturation.
Apply the petrophysical principles from the Background Knowledge Selector to the Quick Look test log and to the Gama 1 logs provided in References and Field Data to complete each assignment.

Location Map of Gama Structure
Figure 1 Location Map of the Gama Stucture

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Well Log Interpretation

Sampling and Analysis of Drilled Cuttings

Other Geophysical Techniques

Mud Logging

Logging Equipment and Procedures

Well Logging Tools and Techniques

expand/collapseInterpretation of Well Logs(a641)Module information - Printer Friendly

Competency Statement:

Use resistivity, radioactive, acoustic, other wireline well logs, and well samples and cores to interpret stratigraphic and petrophysical characteristics of subsurface formations. Determine basic petrophysical properties and extent of potential petroleum reservoirs.

Learning Objective:

  • Describe common log responses for source, reservoir and seal units
  • Describe common log patterns that define reservoir fluid content
  • Calculate clay volume, porosity and water saturation from well logs in appraisal wells Gama 2, 3, and 4
  • Apply log interpretation methods and core information to determine porosity, permeability, and boundaries of the petroleum reservoir on the Gama Structure
  • Validate log response using core and well cuttings.

Assignment Instruction:

Beta Petroleum has drilled the exploration well Gama 1 on the Gama structure in the New Basin. As the Operations Geologist, you have carried out the initial Quick Look evaluation of the well logs at the wellsite.

Based on the log interpretation results of Gama 1, you will make recommendations to company management regarding production testing of Gama 1 and the appraisal strategy for the Gama structure. Base your recommendations on the geology, depositional environment and uncertainties associated with the Gama structure.

You will be on the well site for the drilling and logging of each appraisal/development well. You will make the initial interpretation regarding the fluid distribution in each well and calculate clay volume, porosity and water saturation. Based on the results of each well, you will make recommendations to management on further drilling to determine the extent of hydrocarbons in the Gama Structure.

Gama Structure with well locations

Background Learning Prerequisites:

expand/collapseReservoir Geology(a642)Module information - Printer Friendly

Competency Statement:

Define a petroleum reservoir in terms of depostional environment, lithology, continuity and thickness of reservoir sands, and structural geometry to generate a geological reservoir model of the Gama Field. Estimate the original oil volume in place by using petrophysical parameters developed from well log analysis and the Stock Tank Original Oil In Place - STOIIP calculation.

Learning Objective:

  • Interpret well log, core, and pressure data for a petroleum reservoir model
  • Integrate depositional facies, their distribution, and the reservoir architecture into a geological model of the reservoir
  • Determine petrophysical properties of reservoir sands including Net to Gross ratio of net reservoir sands to total reservoir thickness, porosity, and oil or gas saturation
  • Estimate original hydrocarbons in place of the Gama Field

Assignment Instruction:

Beta Petroleum drilled the Gama 1 "wildcat" discovery well and three appraisal (delineation) wells (Gama 2, Gama 3 and Gama 4) on the Gama structure in the New Basin.

The discovery well found oil and gas in the Lower Graben Sand Formation but only defined the oil down to (ODT = lowest known hydrocarbons) depth and water up to (WUT = highest known water) depth. Gama 2, the 1st appraisal well, defined the oil/water contact (OWC). All of the wells have been logged and a whole core was taken of the reservoir in Gama 3. Gama 3 and 4 penetrate the same hydrocarbon bearing reservoir and display similar fluid contacts as Gama 1 and 2, but this needs to be verified using the available pressure information.

As the Exploration Geologist, develop a static reservoir model and determine the oil in place (Stock Tank Original Oil In Place - STOIIP) for the Lower Graben Sand Reservoir of the Gama Field:

1) Interpret flow units in and between each of the Gama wells to assess the reservoir properties across the Gama structure. The Lower Graben Sand can be sub-divided into 4 Flow Units each with different properties based on a type log from well F2-2A (Ref. 3448) located 8.6 km to the northwest. The top of the Lower Graben Sand is picked at the occurence of the first large sand beds below the marine shales of the Middle Graben Shale package.

2) Determine the local, or prospect depositional environment from well logs and with core data from Gama 3. Based on regional information, the Lower Graben Sand is interpreted as a fluvial-deltaic to a tidal delta depositional system, building out in a northern direction. The Lower Graben Sand is subdivided into four "Flow Units":

  • tidal distributary channel fills,
  • tidal channel bars,
  • channel margins and
  • lagoonal backwash systems.

3) Using the depositional environment, define the reservoir continuity of the individual permeable and non-permeable beds defining the “flow units” that control the direction of fluid flow through the reservoir into the producing wells. In the fluvio-deltaic/tidal distributary environment for this scenario, the width/thickness ratio of the sand bodies is 100 and the length/width ratio is 5.

4) To calculate the STOIIP, review the structure map of top of Lower Graben Sand in Gama Field (below and Ref. 3465) derived from well and seismic data. The structure is faulted, displays 4 way dip-closure, and appears to be filled to spill point. The crest of the structure is at 3025 m and is located northwest of the discovery well. The structure is broken up by two sets of normal faults, forming a NW-SE trending 1.5 km wide Triassic-age crestal graben. Younger north-south trending faults break up the eastern and northeastern flanks of the field. The throw of the faults varies from 10 - 85 m. The faults are partly sealing and may control some compartmentalization of the field. Variations in reservoir properties can be distributed across the structure to cover uncertainties in the subsurface model. However, in this module the average properties found in the wells will be used as input in the volumetric calculation of oil in place.

Specific information to complete the following assignments are listed in each Assigment Instruction and located in References and Field Data.

Structure Map of top of Lower Graben Sand in Gama Field

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Reservoirs

Subsurface Mapping

Subsurface Facies Analysis

Porosity Evolution in Sandstone Reservoirs

Fundamentals of Reservoir Engineering

Reservoir Modeling and Reserves Evaluation

Subsurface Environment

expand/collapseReservoir Geophysics(a643)Module information - Printer Friendly

Competency Statement:

Analyze and interpret seismic and geological data to help describe a reservoir. Convert seismic time horizons to depth, based on well and seismic velocities. Evaluate seismic facies and their depositional environment to produce analogs of a potential reservoirs.

Learning Objective:

  • Analyze seismic interpretation to determine best methodology for depth conversion
  • Present Pros and Cons of different depthing approaches
  • Select depositional model analog that best fits the regional and seismic facies characteristics
  • Evaluate seismic facies with reservoir properties determined from wells, to gain insight to reservoir property distribution

Assignment Instruction:

As the geophysicist you have to generate depth maps for the development of a reservoir, drilled by a number of wells. 

Firstly you have to make a correlation between well information and surface seismic data.  For this you will have to generate synthetic seismograms. 

Next you will have to decide on the strategy for depth conversion, for which you will have to consider various options and types of data.  You will have a 3D dataset complete with stacking velocities.

Lastly, you will have to consider using available VSP data.

Setting the scene

In the development of hydrocarbon resources, many disciplines play important roles. Typically a reservoir is considered for development if commercial volumes have been established by exploration and appraisal wells.

Even though circumstances may be different in various countries and within different operating companies, a common sequence of events can be distinguished.

Once a new reservoir has been identified the seismic 3D/2D is re-interpreted. Possibly after it has been reprocess using the new subsurface information. All available well data is integrated in the seismic evaluation, together with up-to-date laboratory and petrophysical analyses.

This module treats this sequence of seismic evaluation.

In parallel a careful review is being made of all geological data.  By the time the seismic evaluation is yielding its first results, geologists and geophysicists should have jointly create reservoir models.  In this phase a feedback loop between the team members is essential to define the interwell geometries and continuity of the productive strata.

In this assignment you will explore the various techniques and working practices of all peripheral, yet vitally important, activities around seismic interpretation itself, starting from basic principles.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Velocity Interpretation and Depth Conversion

expand/collapseExploration Geostatistics(a644)Module information - Printer Friendly

Competency Statement:

Use statistical methods to describe the characteristics of the hydrocarbon-bearing system. Validate the description by comparing data with reservoir analogs. Establish supporting trends for predicting properties in both drilled and non-drilled areas. Characterize dependence among multiple variables. Describe risk and uncertainty using probabilistic distributions.

Learning Objective:

  • Apply preliminary statistical analysis methods to geological data.
  • Apply conventional techniques to validate reservoir data and trend maps.
  • Demonstrate an understanding of risk and uncertainty in probabilistic distributions. 
  • Build single model variograms for simple reservoir properties.
  • Apply basic Kriging techniques to generate representative reservoir parameter maps.

Assignment Instruction:

Beta Petroleum has drilled a wildcat (Gama 1) and three delineation wells (Gama 2, Gama 3, and Gama 4) on a structure in the New Basin. All of the wells have been logged and a whole core taken of the reservoir in Well # 3 and conventional core analysis undertaken on 10 plugs. A facies Scheme has been developed.

You are to:

  1. Extend and extrapolate the well data across the field, by creating maps of petrophysical properties, for the purpose of developing a static reservoir model
  2. Assist in the refinement of the facies model, by investigating possible scenarios consistent with the data and interpretation, to provide a framework for the properties;
  3. Using this model (properties and geometrical framework) to predict likely bounds on the oil in place
  4. Extend this work to the development of a preliminary dynamic model, including fluid flow characteristics

Background Learning Prerequisites:

expand/collapsePLAN: Wellsite Geological Operations

Scenario

Beta Petroleum is drilling the Gama 1 exploration well on the Gama Structure in the New Basin. If the "wildcat" exploration well is successful, three additional appraisal wells may be drilled to delineate the structure and to help with the economic evaluation of the discovery. The Wellsite Geological Operations learning plan will focus on both the Prospect Geologist duties and the Well Site Geologist duties during the exploration, appraisal/delineation, development and production drilling phases of the Gama Field project.

The Prospect Geologist will use a Database to rank prospects and recommend a prospect for drilling and then prepare a well proposal.

The Well Site Operations Geologist will oversee the day to day geological operations of all wells. Responsibilities include determining monitoring and data collection programs, contract supervision, communication with management, the subsurface team, and the drilling team, and applying the reservoir geological model to the preparation of the Field Development Plan.

Task Summary:
  • Determine the necessary geological and operational resources for carrying out an exploratory drilling project.
  • Understand the data collection responsibilities of the Well Site Operations Geologist for exploration and appraisal wells.
  • Make decisions in the delineation, development, and production phases of the Gama Field
  • Prepare a Field Development Plan

expand/collapseGeological Operations and Logistics(a680)Module information - Printer Friendly

Competency Statement:

Determine the necessary geological and operational resources for carrying out an exploratory drilling project. Build a drilling plan to address permitting, environmental and safety considerations, location construction, contracts, evaluation and specialized services. Balance the cost versus the benefit to the company in all the aspects of the drilling program to make the best possible decisions.

Learning Objective:

  • Assemble Database to rank prospects and recommend a prospect for drilling
  • Coordinate the drilling plan and construct a timeline for all drilling activities.
  • Collect and evaluate requests for exploratory well data and evaluate impact on budget.
  • Prepare data collection program for exploratory well.
  • Tender required services to the industry at large and award contracts for exploratory services.

Assignment Instruction:

In this scenario, assignments will be given to both the Prospect Geologist and the Well Site Geologist. Beta Petroleum is drilling the Gama 1 "wildcat" exploration well on the Gama structure in the New Basin. If this first exploratory well is successful, three additional appraisal wells may be drilled to determine the potential size of the discovery. As both the Prospect Geologist and Well Site Geologist in charge of well site geological operations, you will be involved in all stages of the exploratory drilling program. You will:

  • Use a Database to rank prospects and recommend a prospect for drilling
  • Develop a data acquistion plan, monitor drilling, and report progress to management and the exploration team.
  • Understand the objectives for the successful drilling and evaluation of the well. Respond to exploration data requests, evaluate data and distribute the information to management at company headquarters.
  • Coordinate the drilling plan. This includes location confirmation, permitting, site preparation, coordination and communication with the drilling engineers, the drilling contractor and the contractors providing data collection services. Construct a timeline for all drilling activities.
  • Tender the drilling services to select contractors.
  • Prepare a budget and track overall cost and cost of operational expenditure areas for the Exploration Manager.
  • Plan for contingencies with alternatives for the drilling and evaluation program that still conform to the overall objectives of the well.

Refer to materials in References and Field Data and read topics in Background Knowledge as needed to complete the assignments.

Proposed Gama 1 Well Location on Gama Structure Prospect Map

Fig.1 Example Prospect Map

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Sampling and Analysis of Drilled Cuttings

Reservoirs

Prospect Generation

Drilling and Well Completion

Production Technology

Well Planning

Drilling Problems and Drilling Optimization

Mud Logging

Coring and Core Analysis

Fluid Sampling and Analysis

Borehole Imaging

Logging Equipment and Procedures

Well Logging Tools and Techniques

Dipmeter Surveys

Overview of Formation Evaluation

expand/collapseData Logging and Geological Information(a682)Module information - Printer Friendly

Competency Statement:

Understand the data gathering responsibilities of the Well Site Operations Geologist during drilling operations. Design well logging programs and other data collection programs (e.g. coring) for exploration and appraisal/development drilling programs. Determine the necessary evaluation programs to collect data for a Reservoir Geological Model.

Learning Objective:

  • Specify well logging and mud logging requirements including: cuttings collection intervals, sampling preparation, hydrocarbon indicators and lithology reporting.
  • Use Daily Drilling Reports and Daily Geological Reports
  • Design a coring program and specify procedures for sample collection, handling and analysis.
  • Identify other data collection services (e.g. fluid sampling) that maybe needed for successful well evaluation.
  • Prepare and interpret well completion logs and Final Well Reports.
  • Propose evaluation programs for appraisal wells after exploration discovery well

Assignment Instruction:

Beta Petroleum is drilling the Gama 1 "wildcat" exploration well on the Gama structure prospect in the New Basin. If this first exploratory well is successful, three additional appraisal wells may be drilled to determine the potential size of the discovery. As the Well Site Operations Geologist you will be involved in all phases of the drilling program:

  • Understand the objectives of the wells and subsequent evaluation programs.
  • Design well logging programs and other data collection programs (e.g. coring) to collect data for a Reservoir Geological Model.
  • Monitor and report progress on the drilling of wells to management and the exploration team.
  • If the Gama 1 well has hydrocarbons and reservior based on mud log and drilling results, determine the changes needed to the initial data collection program.
  • Describe the priority of additional evaluation data to balance enhanced evaluation requests with available funds in the budget.
  • Propose data acquisition and evaluation programs for appraisal wells.

Refer to materials in References and Field Data and read topics in Background Knowledge as needed to complete the assignments.

Proposed Gama 1 Well Location on Gama Structure Prospect Map

Fig.1 Example Prospect Map

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Sampling and Analysis of Drilled Cuttings

Drilling and Well Completion

Subsurface Facies Analysis

Well Planning

Reservoir Management

Mud Logging

Coring and Core Analysis

Logging Equipment and Procedures

Well Logging Tools and Techniques

Dipmeter Surveys

Overview of Formation Evaluation

expand/collapseExploratory and Delineation Drilling(a681)Module information - Printer Friendly

Competency Statement:

The Exploratory and Delineation Drilling module will primarily focus on the role and responsibilities of the Well Site Operations Geologist in the delineation and field development phases of the Gama Field.

Learning Objective:

  • Evaluate results from exploration and appraisal/delineation wells and update the database.
  • Understand the drilling problems encountered
  • Make recommendations for well designs, mud programs, and casing and cement designs
  • Determine well completion options
  • Prepare a Field Development Plan for the economic life of the field.

Assignment Instruction:

Beta Petroleum has drilled the Gama 1 "wildcat" exploration well as a discovery on the Gama structure prospect in the New Basin. Three additional appraisal wells have also been drilled to determine the potential size of the discovery. The Well Site Operations Geologist will now:

  • Evaluate all well test results based on objectives of the well and subsequent economic evaluation program.
  • Understand and make recommendations to the well design, the mud program, and the well completion methods.
  • Update and maintain the Reservoir Geological Model.
  • Prepare the Field Development Plan for the Gama Field in coordination with the subsurface team and company management.

Fig.3

Refer to materials in References and Field Data and read topics in Background Knowledge as needed to complete the assignments.

 

 

 

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Sampling and Analysis of Drilled Cuttings

Wellheads, Flow Control Equipment and Flowlines

Well Planning

Drilling Problems and Drilling Optimization

Horizontal Wells: Completion and Evaluation

Fundamentals of Well Testing

Drillstem Testing

Issues in Reservoir Management

Reservoir Management

Mud Logging

Offshore Production Facilities

Cementing

Basic Completion Design and Practices

expand/collapsePLAN: Reservoir Surveillance

Scenario
Your project team has generated geological and petrophysical models for the Sucre project and incorporated them into a reservoir model. Your next step is to obtain additional reservoir data, and use it to validate and, if necessary, refine your models to reflect actual reservoir behavior.
Task Summary:
Establish a plan for acquiring and optimizing information for reservoir surveillance. Employ multidimensional seismic information and geological data as reservoir management tools. Use production records, well logs, core analyses and other data. to update the geological and petrophysical models of the reservoir. Incorporate new data into the reservoir model, and refine the model by reconciling differences between predicted and actual behavior.

expand/collapseData Acquisition(a161)Module information - Printer Friendly

Competency Statement:

Acquire and analyze the necessary data for optimizing reservoir surveillance.

Learning Objective:

Upon completion of this module, the participant should be able to acquire and analyze pressure data, PVT reports, production records, injection records, production tests, fluid sampling, injectivity tests, and other information for the purpose of monitoring reservoir behavior.

Assignment Instruction:

Reservoir surveillance is a process of identifying, gathering and interpreting the information needed to effectively manage the reservoir and maximize economic hydrocarbon recovery. This process become more and more critical as a field passes through the various phases of primary, secondary and enhanced recovery.

In this assignment, you will plan a data acquisition program for the Upper/Middle Sands that includes the following elements:

  1. Present and future objectives
  2. Data requirements
  3. Data sources
  4. Acquisition methods
  5. Interpretation of collected data

By the time you complete this assignment, you should be able to acquire and analyze pressure data, PVT reports, production records, injection records, production tests, fluid sampling, injectivity tests, and other information for the purpose of monitoring reservoir behavior.

The exploration/appraisal program for this reservoir is currently in its third year. So far, four wells have been drilled: 4E1-NE, 5C1-SW (suspended), 2A5-NE and 5A1-SW.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Reservoir Environments and Characterization

Fundamentals of Reservoir Engineering

Reservoir Modeling and Reserves Evaluation

Issues in Reservoir Management

Integrated Reservoir Characterization

expand/collapseGeologic/Seismic Integration(a162)Module information - Printer Friendly

Competency Statement:

Integrate multidimensional seismic information and geological data to optimize the processes of reservoir monitoring and exploitation.

Learning Objective:

Upon completion of this module, the participant should be able to establish a basis for integrating geophysical and geological data and incorporating them into the reservoir surveillance program.

Assignment Instruction:

Reservoir surveillance is a process of gathering and analyzing the information necessary to control operations and maximize the economic recovery of hydrocarbons. Geologists and geophysicists play a key role in this process, from early exploration and appraisal to the mature stages of production.

In this assignment, you will consider how various geological and geophysical tools can be used for reservoir monitoring, and determine their applicability to the surveillance program for the Upper/Middle Sands.

By the time you complete this assignment, you should be able to establish a basis for integrating geophysical and geological data and incorporating them into the reservoir surveillance program.

The exploration/appraisal program for this reservoir is currently in its third year. So far, four wells have been drilled: 4E1-NE, 5C1-SW (suspended), 2A5-NE and 5A1-SW.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Cased Hole Logging

Reservoir Environments and Characterization

Other Geophysical Techniques

Crosswell Seismology

Integrated Reservoir Characterization

Synthetic Seismogram Modeling

Gravity and Magnetics

expand/collapseGeological Model Updating(a163)Module information - Printer Friendly

Competency Statement:

Update the geological model of the reservoir.

Learning Objective:

Upon completion of this module, the participant should be able to apply information from newly acquired well logs, core samples and other data sources to refine the geological model of the reservoir, including its structure, stratigraphy, dimensions and boundaries.

Assignment Instruction:

The geological model is a basic element of any reservoir description. It characterizes such parameters as reservoir structure, stratigraphy and dimensions based on logs, core analyses and other data. These parameters are essential to estimating hydrocarbon-in-place and reserves potential.

In this assignment, you will review available information from the Upper/Middle Sands and compare it with the present geological model. You will then revise the geological model as necessary. Based on your interpretations, you will develop important insights into the reservoir continuity and depositional environment, and establish or confirm the reservoir limits.

By the time you complete this module, you should be able to apply information from well logs, core samples and other data sources to refine the geological model of the reservoir, including its structure, stratigrapy, dimensions and boundaries.

The exploration/appraisal program for the Upper/Middle Sands has been completed, and the reservoir is currently entering its first development year. Wells drilled and evaluated to date are 4E1-NE, 5C1-SW (suspended), 2A5-NE, 5A1-SW and 5A2-SE.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Well Log Interpretation

Subsurface Facies Analysis

Reservoir Environments and Characterization

Fundamentals of Reservoir Engineering

expand/collapsePetrophysical Model Updating(a164)Module information - Printer Friendly

Competency Statement:

Update the petrophysical model of the reservoir.

Learning Objective:

Upon completion of this module, the participant should be able to use well logs, cores, correlations and other tools to establish the distribution of petrophysical properties in the reservoir.

Assignment Instruction:

Reservoir quality is determined primarily by the distribution of petrophysical properties such as porosity and permeability, pore size distribution and pore geometry, and the presence of pore-filling materials that may have an effect on productivity or hydrocarbon recovery efficiency. Other important factors, such as relative permeability and capillary pressure relationships, are related to rock wettability and capillary pressure effects. Thus, in order to fully describe reservoir quality, it is necessary to have a knowledge of the composition and characteristics of the reservoir fluids, as swell as the rock pore system.

In this assignment, you will determine reservoir properties for input into the Upper/Middle Sands petrophysical model. By the time you complete this assignment, you should be able to use well logs, cores, correlations and other tools to establish the distribution of petorphysical properties in the reservoir.

The exploration/appraisal program for the Upper/Middle Sands has been completed, and the reservoir is currently entering its first development year. Wells drilled and evaluated to date are 4E1-NE, 5C1-SW (suspended), 2A5-NE, 5A1-SW and 5A2-SE.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Well Log Interpretation

Coring and Core Analysis

Logging Equipment and Procedures

Well Logging Tools and Techniques

expand/collapseReservoir Model Updating(a165)Module information - Printer Friendly

Competency Statement:

Update the reservoir model.

Learning Objective:

Upon completion of this module, the participant should be able to
  • Incorporate new production data (selective & differential) into the reservoir model, along with new information from well/core analyses.
  • Refine the reservoir model based on differences between predicted and actual pressure and production data.

Assignment Instruction:

A preliminary reservoir model of the Upper/Middle Sands was generated during the exploration/appraisal period. In this assignment, you will review the most current available data and history-match the reservoir’s actual performance with that predicted by the original model. Based on the results of the history match, you may choose to modify one or more of the following parameters:
  • Data summary
  • Grid data
  • Thickness data
  • Porosity data
  • Permeability data
  • Saturation data

With this updated reservoir model, you can test different exploitation scenarios to determine which one results in the optimal economic recovery.

The field is presently under development, during which time it has been placed on limited production. Active wells include 4E1-NE, 2A5-NE, 5A1-SW and 5A2-SE.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Perforating

Fundamentals of Reservoir Engineering

Reservoir Modeling and Reserves Evaluation

Issues in Reservoir Management

expand/collapsePLAN: Reservoir Development Strategies

Scenario
Based on its reservoir model, your project team has developed several exploitation strategies. In this Learning Plan, you will evaluate these strategies economically with the goal of finding out which one represents the most attractive investment opportunity. In addition to fiscal considerations, you will have to account for such details as work programs, budgets, permitting requirements, personnel matters and regulatory compliance issues. You will be looking beyond the reservoir's primary production phase and developing plans for improved recovery. In each of the Learning Plan assignments, you will be asked to make management and control decisions to ensure project success.
Task Summary:
Use economic evaluation methods to select an investment opportunity and formulate a project budget. Prepare the required permission requests for drilling, workover/recompletion, stimulation, abandonment and well servicing operations to satisfy the established legal requirements of regulatory organizations. Properly apply health, safety and environmental regulations to the task of reservoir management. Optimize reservoir management/control decisions using surveillance techniques, information and technology systems, and technical and financial indicators. Develop an improved recovery scheme for a reservoir.

expand/collapseEconomic Evaluation(a201)Module information - Printer Friendly

Competency Statement:

Use economic evaluation methods to select the most profitable project and/or exploitation strategy, and formulate a project budget.

Learning Objective:

Upon completion of this module, the participant should be able to apply economic evaluation techniques that are necessary for analyzing proposed long-range exploitation strategies and/or projects in the areas of reservoir, drilling and production.

Assignment Instruction:

Based on reservoir model and well performance predictions that were generated during the exploration/appraisal period, the reservoir management team is currently looking at 3 potential development scenarios for the primary recovery stage:

 

Case 1a

Case 2a

Case 3a

MDR
(Maximum Design Rate)

7500 STB/D
[1193 m3/D]

15000 STB/D
[2385 m3/D]

22500 STB/D
[3578 m3/D]

Exploration/appraisal wells to be completed

4

4

4

Additional wells to be drilled and completed

1

6

11

Total number of wells

5

10

15

The simulator runs used to generate these cases were based on the following assumptions:

  • Volumetric (closed pressure boundary) reservoir.
  • Production begins in the first production year at the MDR, even though the reservoir actually produced at low rates under test conditions during the exploration/appraisal stage.
  • Average initial production per well = 1500 STB/D [apx. 240 m3/D]—under the assumed reservoir parameters, this appears to be the maximum natural flow rate that is sustainable for a significant time period.

In this assignment, you will compile the available information and generate net discounted cash flow predictions for each of these cases. You will then evaluate each case in terms of its primary economic indicators, taking into account the sensitivity of the evaluation to uncertainties in the input parameters.

NOTE: An MS Excel spreadsheet, Proj_Template, has been included as a reference for this assignment. You may use this spreadsheet to enter input parameters and run economics for each Case. If you do so, be sure to save each case as a separate file, because you will be referring back to it as you progress through the assignment.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Risk Analysis Applied to Petroleum Investments

expand/collapsePermitting for Well Operations(a202)Module information - Printer Friendly

Competency Statement:

Prepare the required permission requests for drilling, workover/recompletion, stimulation, abandonment and well servicing operations to satisfy the established legal requirements of governmental regulatory organizations.

Learning Objective:

Upon completion of this module, the participant should be able to follow proper procedures for obtaining permission to conduct drilling, workover/recompletion, stimulations, abandonment proposals and well servicing operations, in accordance the established legal requirements of the MEM, MARNR and other official organizations.

Assignment Instruction:

The Ministry of Natural Resources is a department of the National Executive of the Republic of Sucre. Its responsibilities include establishing norms and regulations for business operations in the hydrocarbon sector, in accordance with laws established by the National Legislature.

As is true for similar regulatory agencies in other countries, the Ministry of Natural Resources oversees the permitting of oil and gas operations, including those that pertain to well drilling, completion workover and abandonment.

The Ministry's permitting requirements are basically the same as those of the Ministry of Energy and Mines (MEM) in the neighboring Republic of Venezuela, and the norms that it has established for oil and gas operations are identical to MEM standards. For this reason, the questions that you are asked in this assignment use MEM standards as primary reference sources.

In this learning module assignment, you will apply the permitting requirements of the Ministry in the following areas:

  • Drilling of a new well
  • Workover and abandonment operations
  • Project management as it relates to improved recovery operations, well spacing critieria and gas utilization requirements.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

expand/collapseHealth, Safety and Environment(a203)Module information - Printer Friendly

Competency Statement:

Apply the laws, regulations and norms relating to personal, environmental and industrial safety as they apply to oil and gas operations.

Learning Objective:

Upon completion of this module, the participant should be able to
  • apply the laws, regulations and norms in matters of personal, industrial and environmental safety, with the objective of protecting the integrity of persons, installations, equipment and the environment.
  • identify instances in which safe practices are not being followed, and take steps to correct the situation

Assignment Instruction:

The reservoir is currently in its development and early production stages. Drilling, construction and production activities are fully underway. In each of these activities, it is imperative to maintain safe operations, protect the health and well-being of personnel, and preserve the environment.

In this module assignment, you will be observing drilling rig operations with an eye toward your own personal safety and that of others at the wellsite. You will review incident descriptions from various field locations and try to determine what went wrong in each case and how the incident could have been prevented. And you will look at several issues related to fire protection at an upstream production facility.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Oilfield Safety

expand/collapseReservoir Management and Control(a204)Module information - Printer Friendly

Competency Statement:

Optimize reservoir management and control decisions using surveillance techniques, information systems, technical indicators and financial guidelines.

Learning Objective:

Upon completion of this module, the participant should be able to do the following:

  • Manage available resources (e.g., reserves, assets, personnel, budget) in order to maximize hydrocarbon reserves and minimize recovery cost.
  • Make appropriate reservoir management and control decisions with the aid of surveillance techniques, information systems and technology applications to generate pressure and production histories, maps and other key reservoir data.

Assignment Instruction:

The Upper/Middle Sands have been on production for about 11 months. Fifteen wells are currently active, and the information that you have available includes both detailed and summary reports of pressure and production behavior. In this assignment, you will use this information to refine the reservoir description, improve well performance and work toward developing an optimal exploitation strategy.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Oil Well Testing

Fundamentals of Reservoir Engineering

Improved Recovery Processes

Reservoir Modeling and Reserves Evaluation

Issues in Reservoir Management

Fluid Flow and the Production System

Basic Completion Design and Practices

expand/collapseImproved Recovery(a205)Module information - Printer Friendly

Competency Statement:

Evaluate the improved recovery potential of the reservoir.

Learning Objective:

Upon completion of this module, the participant should be able to

  • Apply basic screening criteria and determine a reservoir’s suitability for various improved recovery processes, including waterflooding and enhanced oil recovery.
  • Observe waterflood performance and perform basic recovery calculations, based on a frontal advance model and analysis of fractional flow curves.
  • Determine the displacement efficiency of a pilot waterflood.

Assignment Instruction:

Improved recovery, in the context of this assignment, refers to processes that supplement natural reservoir drive mechanisms. These processes are generally grouped into two main categories:

  • secondary recovery, which includes waterflooding and immiscible gas injection
  • enhanced oil recovery (EOR), which includes miscible, chemical and thermal methods.

Although individual processes vary widely in type and applicability to particular conditions, they have one objective in common: to improve the displacement efficiency of hydrocarbons from the reservoir.

In this assignment, you will review the performance of the Upper/Middle Sands under primary depletion and conduct a preliminary waterflood screening, including a pilot flood to serve as a field trial of the process. The reservoir has been on production for just over one year. There are currently 15 active wells.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Oil Well Testing

Fundamentals of Reservoir Engineering

Improved Recovery Processes

Reservoir Modeling and Reserves Evaluation

Issues in Reservoir Management

Fluid Flow and the Production System

Basic Completion Design and Practices

expand/collapsePLAN: Reservoir Management Practices

Scenario
In this Learning Plan, you will evaluate the Sucre Project in terms of how it affects Petros Corporation's overall performance. You will need to consider the project in the context of the overall hydrocarbon value chain, and consider the role of contractual agreements, the application of new technologies, and the project's contribution to the company's knowledge base.
Task Summary:
Evaluate reservoir exploitation schemes through the use of corporate management indicators. Use reservoir studies to develop a resource base (drilling plans, future improved recovery, information acquisition, application of new technologies, facilities and production infrastructure). Research new technologies and determine their applicability to various aspects of reservoir management. Compare actual reservoir behavior to model predictions; account for differences and evaluate the effectiveness of the exploitation strategy. Analyze scenarios, make suitable contract models and study special projects in areas of the exploitation macroprocess, assuring business profitability and respecting the prevailing laws and norms of contracts.

expand/collapseImplementation of Reservoir Development Strategies(a206)Module information - Printer Friendly

Competency Statement:

Develop a strategic scenario and budget for implementing a reservoir development scheme and producing actual reserves.

Learning Objective:

Upon completion of this module, the participant should be able to

  • Use reservoir studies to develop a resource base (drilling plans, future improved recovery, information acquisition, application of new technologies, facilities and infrastructure).

Evaluate reservoir exploitation schemes through the use of corporate management indicators

Assignment Instruction:

The Upper/Middle sands project is about to complete its ninth year (fourth production year). You have recently concluded a twenty-month pilot waterflood in the fault block occupied by Wells 4E2-SE and 4D2-SW. In this assignment, you will evaluate the results of this pilot project in preparation for implementing a field-wide waterflood. You will then address the practical aspects of implementing the full-scale project, generate a development scenario based on the data that you have gathered during the primary production stage, and formulate a project budget.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Fundamentals of Reservoir Engineering

Improved Recovery Processes

Reservoir Modeling and Reserves Evaluation

Issues in Reservoir Management

expand/collapseReservoir Surveillance and Control(a208)Module information - Printer Friendly

Competency Statement:

Understand and apply reservoir surveillance and control techniques to confirm the materialization of the proposed strategies in the reservoir exploitation scheme

Learning Objective:

Upon completion of this module, the participant should be able to

  • compare actual reservoir behavior to various performance prediction tools and account for differences
  • evaluate the effectiveness of the exploitation strategy

explain reasons why actual reservoir performance deviated from initial predictions

Assignment Instruction:

The Upper/Middle Sands have been on production for more than 20 years, 15 of them under waterflood. On the basis of daily average production, this reservoir has already passed its economic limit, with water cuts routinely exceeding 90 percent. But thanks to the efforts of field personnel in applying good production practices and bringing operating costs down to a minimum, the field is still making a small profit. It remains to be seen whether this field has additional potential through a realignment of the waterflood or implementation of enhanced oil recovery methods.

Background Learning Prerequisites:

expand/collapseContracts(a209)Module information - Printer Friendly

Competency Statement:

Analyze scenarios, make suitable contract models and study special projects in areas of the exploitation macro process, assuring business profitability and respecting the prevailing laws and norms of contracts.

Learning Objective:

Upon completion of this module, the participant should be able to
  • analyze field projects and generate contract models
  • evaluate contracts in terms of project profitability

Assignment Instruction:

As a reservoir manager, you are certain to spend much of your time dealing with companies that provide products, materials or services ranging from downhole tools to simulation software to engineering expertise. You may also work with research institutions, government agencies, other operating companies, and even with private individuals. All of these working relationships are governed by legal agreements, or contracts.

A contract defines the rights that each party has in a business relationship, the obligations that each party has toward the other, and the legal, fiscal and operating terms under which these rights and obligations are maintained. When properly drafted and negotiated in good faith, a contract works to the mutual benefit and protection of both parties. It is important, therefore, that you understand and be able to apply key contract provisions.

In this Learning Module, you will focus on two types of contracts: a term sheet for a Turnkey Drilling Contract with Daywork Provisions, patterned after the International Association of Drilling Contractors’ model (IADC--1998), and a Master Agreement for Contract Services, patterned after models developed by the IADC and the International Association of Geophysical Contractors (IAGC).

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

expand/collapsePLAN: Drilling and Well Completion Practices

Scenario
The Asset Management Team responsible for PETROS Corporation’s portion of the Tremont onshore field has recently completed an appraisal of the 6th Zone reservoir, and has proposed Adams 8 as the first development well. Your job in this assignment is to develop this initial proposal into a well plan and oversee drilling operations. The goal is to drill a well that meets reservoir management objectives at minimum cost, while maintaining a perfect safety record throughout the operation.
Task Summary:
Establish drilling objectives and identify key issues related to well planning. Define basic well design parameters. Design casing strings and outline cementing requirements. Design the mud program. Establish well control procedures. Design drill string and bottomhole assembly. Plan bit and hydraulics programs. Evaluate rig specifications and capabilities. Optimize drilling performance. Ensure HSE compliance. Anticipate and address drilling problems. Oversee formation evaluation, casing and cementing operations. Prepare well for completion.

expand/collapseInitial Well Planning(a241)Module information - Printer Friendly

Competency Statement:

Define basic drilling and well completion requirements based on reservoir management objectives. Identify critical logistical issues and HSE considerations. Generate budget cost estimate.

Learning Objective:

Upon completion of this module, the participant should be able to
  • Review an initial well proposal and identify key drilling and completion objectives.
  • Gather and evaluate offset data and other information pertinent to the well objectives.
  • Document and evaluate indicators of potential drilling hazards and/or HSE risks.
  • Identify appropriate methods for predicting pore pressures, fracture pressures, and subsurface temperatures, and plot predicted pressures and temperatures versus depth.
  • Determine formation fluids to be encountered and potential contaminants.
  • Outline critical issues relating to surface location, including those related to logistics, safety and environmental protection.
  • Generate a budget-level estimate of dry-hole and total well costs.

Assignment Instruction:

The Asset Management Team responsible for PETROS Corporation’s portion of the Tremont onshore field has recently completed an appraisal of the 6th Zone reservoir, and is now preparing a development program. The team has given you a proposed bottomhole location for the first development well, Adams 8. The target location is in Block D-4, approximately 0.5 km [1640 ft] from the property boundary between PETROS Corporation and Apex Oil & Gas Company. The discovery well for the 6th Zone anticline was Apex's Copley 1. Four additional wells (Copley 3, Adams 4, Adams 6 and Adams 7) have either tested or are currently producing commercial quantities of oil; Three others (Copley 2, Stuart 1 and Adams 5) were drilled outside of the structure boundaries and subsequently abandoned. Your tasks in this assignment are to establish the drilling objectives for this well in keeping with the overall reservoir management strategy, and to identify some of the key issues to be addressed in the well planning process.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Well Planning

Drilling Problems and Drilling Optimization

expand/collapseWell Design(a242)Module information - Printer Friendly

Competency Statement:

Define basic well design parameters, including well profile, casing points and casing/hole diameters. Design casing strings and outline cementing requirements. Select surface equipment components. Generate preliminary cost estimates for inclusion in AFE.

Learning Objective:

Upon completion of this module, the participant should be able to
  • Select a surface location for a new well and establish an optimal target radius
  • Pick casing points and specify casing and hole diameters for each drilled section
  • Establish a well trajectory in keeping with overall drilling objectives
  • Select casing weights, grades and connections based on consideration of maximum load conditions
  • Determine general requirements for primary cementing operations.
  • Specify wellhead equipment components and their working pressure ratings.

Assignment Instruction:

An initial review of the Adams 8 well proposal served to clarify the drilling objectives, identify critical well planning issues and provide some knowledge of the surface and subsurface environments. It is now time to start the designing the well. The starting point will be to finalize the surface and bottomhole locations so that you can establish a well profile. At the same time, you will pick your casing points, decide on the casing and hole diameters for each interval and recommend the working pressure ratings for the wellhead components. You will then specify the weights, grades and connections to be used for each casing string, and outline the primary cementing requirements for the surface casing. Finally, you will provide a cost estimate to be used in preparing the AFE for this well.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Wellheads, Flow Control Equipment and Flowlines

Well Planning

Directional and Horizontal Drilling

Drilling Problems and Drilling Optimization

Completion Equipment

expand/collapseDrilling Program Planning and Implementation(a243)Module information - Printer Friendly

Competency Statement:

Design mud program for each hole section. Establish well control precautions and procedures. Design drill string and bottomhole assembly. Plan bit and hydraulics programs. Evaluate rig specifications and capabilities.

Learning Objective:

Upon completion of this module, the participant should be able to:
  • Outline mud system specifications for individual hole sections based on well conditions and drilling objectives.
  • Establish basic well control requirements.
  • Specify circulating system requirements and evaluate hydraulics practices based on offset well performance.
  • Review offset bit performance as a basis for developing bit selection criteria for a new well.
  • Provide general recommendations for the drill string configuration and design of the bottomhole assembly.
  • Review rig specifications and capabilities in the context of drilling program requirements.

Assignment Instruction:

In this assignment, you will address various aspects of planning and carrying out the drilling program for Adams 8, a new development well in the Tremont field. Your work will include designing the mud and hydraulics programs, reviewing basic well control precautions, establishing guidelines for bit selection, and designing the drill string. Although you will not be directly involved in reviewing bids and selecting the drilling contractor, you will be providing input regarding power requirements, hoisting capabilities and circulating system capacities that will be valuable in the rig selection process. Your goal in this assignment is to develop a program that ensures safe well operations, minimizes drilling cost and meets the design requirements of the well.

Background Learning Prerequisites:

expand/collapseDrilling Operations(a244)Module information - Printer Friendly

Competency Statement:

Monitor drilling parameters and well progress. Take steps to optimize bit runs, mud system performance and directional control. Ensure HSE compliance. Anticipate drilling problems and work to minimize their impact.

Learning Objective:

Upon completion of this module, the participant should be able to:
  • Optimize drilling performance through careful monitoring and analysis of well parameters.
  • Select bottomhole assembly configurations for various hole intervals and operating conditions.
  • Oversee routine cementing operations in shallow hole intervals.
  • Diagnose a stuck pipe incident and outline fishing procedures.
  • Monitor drilling parameters for indications of abnormal pore pressure and take the approriate initial actions in response to a potential kick situation.

Assignment Instruction:

The drilling crew is ready to spud Adams 8, and you are in charge of day-to-day operations. To begin this assignment, you will approve the bottomhole assembly configuration for the surface hole interval and supervise the running and cementing of a 13 3/8 inch [339.7 mm] casing string. Next, you will monitor the progress of the intermediate hole section and take steps to optimize drilling performance. Finally, you will begin drilling below the intermediate casing, paying particular attention to detecting a pressure transition zone that has already been identified at other 6th Zone wells. By way of caution, note that drilling operations do not always proceed smoothly. Although this assignment is fairly straightforward, be prepared to address problems that may occur.

Background Learning Prerequisites:

expand/collapseWell Completion Operations(a245)Module information - Printer Friendly

Competency Statement:

Prepare well for formation evaluation. Ensure that logging and testing operations proceed smoothly. Run and cement production casing. Evaluate primary cement job and need for remedial cementing operations. Prepare well for final completion.

Learning Objective:

Upon completion of this module, the participant should be able to:
  • Prepare the well for open-hole logging operations and take steps to ensure that such operations proceed smoothly.
  • Alert the wellsite geologist and service company logging engineer of hole conditions that may require modifications or special precautions in the logging program.
  • Assist in planning and carrying out a drill stem test.
  • Determine safe operating parameters for running a production casing string.
  • Plan and carry out a simple single-stage primary cementing operation.
  • Use temperature surveys to determine the top of cement in the casing/hole annulus.
  • Outline the steps involved in preparing the well for final completion and releasing the drilling rig.

Assignment Instruction:

As you approach target depth at Adams 8, your concern now shifts from optimizing the drilling process to preparing the well for logging, testing and completion operations. Although you are not directly involved in planning the formation evaluation program, you are responsible for monitoring hole conditions, getting tools safely to bottom and in general ensuring that operations proceed according to plan. Once these operations are completed, you will focus on the crucial task of running and cementing the 7-inch [178 mm] production casing. At the conclusion of this assignment, the well should be ready for a workover rig to perforate the production casing, run tubing and turn the well over to the Production Department.

Background Learning Prerequisites:

expand/collapsePLAN: Production and Operating Practices

Scenario
The pace of activity at Petros Corporation has increased over the past year, and so have your areas of responsibility as a production engineer. You are now involved with several reservoirs, each of which has its own set of concerns. In the Main Body Sand of the Firestone field, for example, you will be designing the production system for a flowing well, while in other fields, you will be evaluating artificial lift methods, designing well stimulations, reviewing problem wells and planning workovers. You will also be helping generate specifications for an upstream surface facility. At all times, you will be focused on maintaining safe operations and complying with all policies, procedures and regulatory standards.
Task Summary:
Use systems analysis methods to optimize flowing well production. Evaluate potential artificial lift systems and specify equipment requirements. Diagnose problems related to formation damage and recommend appropriate remedies. Identify workover candidates and outline procedures for meeting well objectives, while complying with all environmental and safety regulations. Generate equipment requirements for upstream surface facilities. Maintain safety and ensure regulatory compliance in all surface operations.

expand/collapseFlowing Well Performance and Production System Analysis(a281)Module information - Printer Friendly

Competency Statement:

Establish Inflow Performance Relationship (IPR) and determine flowing well potential. Use systems analysis approach to predict and optimize production.

Learning Objective:

Upon completion of this module, the participant should be able to
  • Use production data to define a well's IPR and flow potential under current operating conditions.
  • Predict changes in well potential resulting from declining reservoir pressures.
  • Evaluate the effects of various operating parameters on flowing well performance.
  • Design a single-well production system based on analysis of individual system components.
  • Select the appropriate tubing and flowline diameters for optimizing well performance.
  • Predict future production rates based on changing operating conditions.

Assignment Instruction:

Well TR-34 is a recently completed development well in the Main Body sands of the Firestone Field. You have just completed an extended production test of this flowing well in preparation for tying it into the field's main production facilities. In this assignment, you will treat this well as a single production system extending from the reservoir to the first-stage production separator. You will analyze the test results to determine the well's potential and the effect of various operating parameters on its performance. You will then use your analysis to establish an optimal production rate and size the tubing and surface flowline.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Fluid Flow and the Production System

expand/collapseArtificial Lift Methods(a282)Module information - Printer Friendly

Competency Statement:

Determine need for artificial lift. Evaluate and design system.

Learning Objective:

Upon completion of this module, the participant should be able to
  • Distinguish among the common methods of artificial lift and understand their advantages and limitations.
  • Select the most appropriate artificial lift method for a given set of well and economic conditions.
  • Perform basic surface and subsurface design calculations for gas lift and pump-assisted systems.
  • Monitor artificial lift performance .

Assignment Instruction:

Artificial lift is a means of reducing the backpressure on a well so that it can be produced at some desired rate. This may be accomplished by reducing the density of the wellbore fluid column, as is done in gas lift, or by using a pump to physically displace the fluids to the surface. In this Assignment, you will consider both types of artificial lift as you evaluate three scenarios: (1) a flowing well that has experienced a significant decline in production rate as reservoir pressure has decreased, (2) a well that is to be incorporated into an existing gas lift system, and (3) the installation of an Electrical Submersible Pump (ESP) at a water source well. Although these scenarios do not cover all of the artificial lift systems and combinations of methods that are currently available, they will give you a good idea of the issues that you must consider in designing such a system.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Artificial Lift Methods (Superseded December 2006)

Artificial Lift Methods

expand/collapseWell Stimulation and Sand Control(a283)Module information - Printer Friendly

Competency Statement:

Diagnose production problems related to formation damage and recommend appropriate solutions.

Learning Objective:

Upon completion of this module, the participant should be able to
  • Diagnose various types of formation damage and identify stimulation candidates.
  • Design a matrix acid stimulation treatment based on specific well conditions and reservoir characteristics.
  • Specify the materials, equipment and pumping schedule for a hydraulic fracturing procedure.
  • Apply traditional and modern sand control methods to optimize well productivity

Assignment Instruction:

Well stimulation treatments, which are designed to restore or enhance well productivity, are of two basic types. Matrix treatments are performed at pressures that are below the formation fracture pressure; they are primarily designed to remove near-wellbore damage. Fracture treatments, on the other hand, are performed at pressures above the formation fracture pressure; they are designed to open up highly conductive flow paths between the reservoir and the wellbore, thereby bypassing near-wellbore damage and changing the flow patterns around the well.

Sand control technolgy is built around preventing loose sand and other unconsolidated formation solids from plugging the formation or entering the wellbore. As you will see in this assignment, stimulation and sand control technologies are in some ways closely related, and under certain circumstances, may even overlap.

In this assignment, you will carry out preliminary design work both for a matrix acid stimulation and a hydraulic fracture treatment, and will also select the appropriate sand control measures for a flowing production well. In each case, you will evaluate the nature and extent of the near-wellbore damage that has made stimulation and/or sand control necessary.

Background Learning Prerequisites:

expand/collapseWorkover Planning and Operations(a284)Module information - Printer Friendly

Competency Statement:

Identify workover candidates and outline procedures for accomplishing well objectives.

Learning Objective:

Upon completion of this module, the participant should be able to
  • Evaluate well performance and identify workover or abandonment candidates.
  • Plan safe workovers using the tools and methods appropriate to individual wells.
  • Apply procedures and standards in accordance with recognized safe practices and regulatory requirements.

Assignment Instruction:

A review of the producing wells in the Adams portion of the Tremont Field has indicated that several wells need attention and may be workover candidates. In this assignment, you will evaluate conditions at these wells, take steps to troubleshoot these conditions, and recommend remedial action. You will also be getting ready to perforate the production casing in Adams 8, a newly drilled Sixth Zone producer.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Oilfield Safety

Perforating

Completion Equipment

Cementing

Slickline Well Intervention

Fluid Flow and the Production System

Basic Completion Design and Practices

expand/collapseSurface Production Operations(a285)Module information - Printer Friendly

Competency Statement:

Generate production facilities requirements. Promote safe practices in production operations.

Learning Objective:

Upon completion of this module, the participant should be able to:
  • Review surface flowing well conditions with the goal of optimizing production.
  • Describe the basic layout of an upstream producing facility and the functions of its major components.
  • Outline the general requirements for separating and treating produced oil as a basis for a detailed facility design.
  • Plan and oversee routine field maintenance work, and maintain a safe operation through proper application of good work practices and the careful control of site activities.

Assignment Instruction:

The Sucre field's existing upstream surface facilities are designed for primary recovery, but that is about to change as preparations begin for a full-scale water injection project in The Upper/Middle Sands. As part of these preparations, you will address some of the general issues involved in modifying these facilities. You will also be involved in ongoing field operations; specifically, you will be responsible for safely completing repair and maintenance work on one of the field's main production separators.

Background Learning Prerequisites:

In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

Wellheads, Flow Control Equipment and Flowlines

Fluid Separation and Treatment

Oilfield Safety

Oil Systems and Equipment

Gas Systems and Equipment

Water Systems and Equipment

Instrumentation

Fluid Flow and the Production System

expand/collapsePLAN: Exploration Project Management

Scenario

The Exploration manager has responsibilities for both the quality of a prospects technical assessment and its commercial and economic success.  Because of the risks, complexities, and the sheer magnitudes of the investment decision process, your company has implemented a Decision Review Board that makes decisions regarding the expenditure of capital.  To support this business structure your company has divided the analysis and decisions into discreet, sequential stages using a disciplined project management approach used in most oil & gas companies. In Learning plan  7 you will work through these defined stages and processes and make your recommendations to the review board for equity funding.

Task Summary:

As the Exploration Manager you are being asked to understand the success potential of prospects coming to you via your team’s efforts and from outside requests for participation.

You will analyze these opportunities using both technical and economic metrics with the goal of securing equity capital from your company.  To make these decisions you will guide your team through an approved exploration process governed by sound exploration project management processes and methodologies.   Project Management plays an important role in this process as it assures your decision management team that critical information has been gathered, analyzed, and presented as part of their decision process.

Economic analysis of your team’s prospects will be critical to securing the company funding.  Therefore building financial models to demonstrate key economic metrics is covered giving you a solid baseline to measure the various opportunities.

Oil and Gas exploration is a technology intensive business with the goal of reducing uncertainty and risk.  You will analyze the role of technology, its cost, and its economic affect on a prospects value to the company.

Given this understanding of the key metrics associated with capitalizing a new wildcat well you will take on the role of a decision review board member and make a decision on appropriating the necessary funds.

expand/collapseExploration Process(a725)Module information - Printer Friendly

Competency Statement:

Learn the technical and management steps that are followed to move an exploration opportunity from play to a prospect by applying a series of progressively expansive data collection steps beginning with aerial or satellite imaging, then gravity and magnetic surveys, seismic surveys, exploration and appraisal well drilling, reservoir characterization, resources estimation and economic analysis.

Learning Objective:

  • Learn the progressively more expansive data collection and analysis steps that are applied to an exploration opportunity from the negotiation of a host country agreement to the request for funds to move to Field Development Planning.
  • Learn how the exploration process involves making decisions to acquire data under conditions of uncertainty. (value of information)

  • Learn how exploration and appraisal wells are located to delineate a prospect.

  • Learn how resources are estimated using the SPE system under conditions of uncertainty

  • Generate prospect economics based on estimated reserves and project economic indicators.

  • Learn how to assess geological risk

  • Assignment Instruction:

    Your company has negotiated with a host country an exploration agreement to explore for oil & gas. In this assignment your team will follow an exploration workflow process to advance a play concept to a drillable prospect. In your role as the exploration manager, you will need to guide your team through this defined process involving commercial data management, geotechnical, operational, and knowledge management steps so as to progress an opportunity to a drilling decision.

    If the exploratory well is successful your team will need to examine the SPE resource definitions and how this may affect future financing. Based on this information your team will need to propose several delineation wells that will identify the extents of the reservoir(s) while minimizing exploration capital. You will then revise your economic estimates based on new information and economic indicators.

    Background Learning Prerequisites:

    In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

    expand/collapseProject Economics, Risk and Uncertainty Analysis(a724)Module information - Printer Friendly

    Competency Statement:

    Perform economic analysis of petroleum projects under conditions of uncertainty. Develop simple examples of project metrics using spreadsheet Monte Carlo simulations for stochastic analysis. Build financial models to show project cash flow streams for both capital investment and income cash flow and calculate key metrics such as profit/investment ration, profit, payout period, net present value, internal rate of return and expected monetary value. Where there are uncertainties in the variables, use standard software to prepare sensitivity and stochastic analysis to show the potential variations in the metrics because of these uncertainties.

    Learning Objective:

    In this module you will learn:

    • To analyze the economics of a prospect under conditions of uncertainty
    • To build deterministic and stochastic models
    • To build E&P financial models to demonstrate project cash flows
    • To calculate project economic metrics including profit/investment ratios, profit, payout period, net present value, internal rate of return and expected monetary value
    • To prepare sensitivity and stochastic analysis to measure potential variations in project metrics

    Read all the reference material included under the Reference Selector and Field Data and Reference tabs.

    Assignment Instruction:

    In this Action Learning Module you will learn how to prepare a typical Prospect Economic Metrics Profile for a Southeast Exploration Prospect by answering a set of questions. You will be asked to consider two funding scenarios:

    (a) where the prospect capital is fully funded with shareholder equity funds and

    (b) where 50% of the funds are obtained through debt financing.

    Initially you will develop the Profile for a set of “Base Case” assumptions and then you will learn how to analyze uncertainty in the key Base Case variables using the three traditional ways of analyzing uncertainty: Deterministic, Tornado Diagram and Monte Carlo Simulation

    At the top of each assignment page we have provided you with downloadable Reference Files and links to IPIMS Background Knowledge. Please use these resources to assist in answering the assignment questions.  

    At the end of the learning program you will be asked whether, as the Exploration Manager, you would approve the investment in this Prospect.

     


     

    Oceana – A Petroleum Prospect Economics Workshop

    Assignment Background

    Your company has identified an exploration prospect in the Republic of Oceana, a small country in Southeast Asia, near Indonesia, and you, as Team Leader, have been asked to analyze the economics of the prospect and submit a summary of its key prospect metrics to management.

    figure 1

    You are to evaluate this exploration opportunity and build a financial model that will integrate the risks associated with this investment. The model will account for the proposed host country agreement and then incorporate revenue, capital and operating costs, financing costs, and tax projections for the life of the project. You will also be asked to submit your recommendation to management based on the performance metrics that are the outcome of your analysis

    Analysis to Be Performed 

    You will analyze your prospect economic metrics by completing a series of assignments. In doing so you will calculate each of the metrics and summarize them in an appropriate table to be provided to your management along with your recommendations as to whether the prospect should be pursued. 

    You will need a computer with Excel or comparable spreadsheet software and, if possible, with Crystal Ball as an add-on in order to perform some of the project uncertainty calculations. If you do not have Crystal Ball you will be able to complete the exercises using an “IHRDC Apps” to perform the Tornado Diagram and Monte Carlo Simulation exercise that are located later in the learning assignments.

    Assignment Memorandum

    You have been provided with the following Confidential Memorandum from your Director of Regional Exploration.

     


    Confidential Memorandum

    Oceana Exploration Corporation

    Southeast Asia Exploration Group

    TO:  Director, Financial Analysis Group
    FROM:  Director, Regional Exploration
    RE: Summary of Exploration Potential of the Baru Prospect

     

    This memorandum is a summary of our team’s analysis of the Baru Prospect, Republic of Oceana, including its exploration potential, dry hole costs, development options and operating costs, markets and estimate of reserves. We ask that you prepare the financial metrics for the opportunity by completing a series of assignments. 

    The Baru Prospect is located onshore the Republic of Oceana in the East Oceana Basin. The main producing target is the Brad Sandstone, which we expect to penetrate at a depth of about 4500 feet below sea level. We have collected substantial data from two nearby analog fields owned by competitors that are producing from the same formation.

    Our geological analyses of the basin and the prospect are based on the analysis of regional geological data, including well logs, geochemical data and a substantial 2D seismic survey, which we performed last year. A subsurface structural map of the prospect is shown in the image below.


    figure 1

    On the basis of the prospect information and the performance of two other existing fields we project the following prospect fundamentals: 

    Project Development Schedule

    We expect a project schedule (see below) that begins with three years of Exploration (E1-E3). If we have a discovery that is economical to develop, we will follow exploration with two years of Field Development (D1-D2), and 20 years of Production (P1-P20) when all developments and prospect rights must be returned to the host government. The project schedule is shown below.

    figure 1

    Exploration Risk

    Our exploration team has analyzed the five major requirements of a prospect (source rock, migration path, reservoir rock, trap and seal) and has estimated that the probability of an exploration well success is 64%.

    Host Country Bonus Payments

    We have agreed to pay the host country two forms of bonus payments:

    Signature Bonus (E1) $5,000,000
    Discovery Bonus (E2) $10,000,000

     Exploration and Dry Hole Cost

    We expect that we will need to commission a detail seismic survey in E1, drill an exploration well in E2 so as to “drill into and test the reservoir” with the following estimated costs: 

    Year E1: Seismic Surveys and Interpretation $5,000,000
    Year E2: Exploration Well $15,000,000

     Please note that these costs are subject to some uncertainty.

    Appraisal of Discovery: Appraisal Wells

    In order to confirm the discovery, evaluate the reservoir properties and the areal extent of the field we feel that there will be a need to drill at least two appraisal wells during Year E3.

    Year E3: Two Appraisal Wells $ 30,000,000

    All three wells will be vertical wells and can be completed as producers during the development period for an additional cost of $500,000 per well.

    Expected Reserves and Market Prices

    If we have a discovery we expect the hydrocarbons to be medium grade crude oil, which should sell at a small discount to the Dubai Marker Crude prices, and associated gas. We expect a gas-to-oil ratio (GOR) of about 750 SCF/stock tank bbls. We have a preliminary understanding from the Oceana Power Company that it will buy our produced gas for $2.50/MCF delivered at our field processing center.

    On the basis of the existing 2D seismic survey and data from the other producing fields we estimate the crude oil resources to be approximately 500 million bbl of stock tank oil initially in-place (STOOIP).  We expect that the recovery factor will be equal to 20% of these resources if we rely on natural depletion drive, and up to 40% with enhanced recovery using bottom water injection. Because of its higher recovery factor we ask that this option we used in your analysis. 


    End of Memorandum


    Cash Flow Analysis of the Prospect

    Your study team begins its financial analysis of the prospect by calculating its “best estimate” for both the Investment and Income Cash Flow projections.  Then you are to prepare the Investment Cash Flow projection by preparing the field development plan and its cost.

    Field Development Plan

    Your team plans to initiate enhanced recovery of the reservoir at the outset by installing water injection wells and treatment/pumping facilities during the Development Period. The reservoir engineering team recommends that the reserves be produced over a 20-year period at a fixed production rate of 32,000 STB/D for 11 years and declining 2000 STB/D annually through P20. The production rate in P20, then, will be 14,000 STB/D. The sustained production rate per well from P1 to P11 is estimated to be 2500 STB/D.

    Facilities Needed to Develop the Field 

    Your team estimates that it will take two years to develop the field (D1 and D2) and require 13 producing wells, which can be achieved by converting three exploration wells to producing wells and drilling 10 new development wells. It recommends using five water injection wells to replace the produced oil, surface separation facilities to separate and treat the produced fluids, a water treatment plant for the injected water and a 160- km crude oil pipeline, storage and port facilities to be located within the Oceana Industrial Park. These are all shown schematically below.

     

    figure 1


    Background Learning Prerequisites:

    In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

    Risk Analysis Applied to Petroleum Investments

    Energy Project Economics and Risk Analysis

    expand/collapseValue of Information(a723)Module information - Printer Friendly

    Competency Statement:

    You will analyze the economic “value of information” that can be achieved during the exploration process by applying various decision making technologies at progressively higher costs to reduce uncertainty, thereby providing better estimates during the decision process.

    Learning Objective:

    The objectives of this learning module are to:

    • Measure the value of data vs. the cost to acquire the data.
    • Determine multiple data acquisition scenarios that can accomplish the goals and measure their impact on the prospects economics
    • Understand the cost-benefit decision process and exploration uncertainty in making both technical and business decisions.

    Review all the supplied reference materials included under both the Reference Selector, and Background Knowledge buttons. The reference material file includes downloadable tools you will use to answer the assignment questions

     

    Assignment Instruction:

    The exploration team has presented both structure and stratigraphic maps associated with a prospect. However, the maps and therefore the associated reservoir economic estimates are based on old vintage 2D data and low density well and outcrop data in the area. Based on the available data it appears that both structure and traps are present and that reservoir properties (sand/shale, porosity, and permeability) are sufficient for hydrocarbon trapping and production, however, you recognize the uncertainty associated with this assumption and the risks it presents to the success of the prospect.

    To reduce this uncertainty and improve your estimate of resources you ask your team to evaluate the introduction of various technology solutions. The team will need to look at their costs, the potential amounts of uncertainty reduction, and the potential upside it would bring to the prospects economics. Your team will then rank the technology solutions based on the value they can bring to the project.

    Review all the supplied reference materials included under both the Reference Selector, and Background Knowledge buttons above. The reference material file includes downloadable tools you will use to answer the assignment questions.

    Background Learning Prerequisites:

    In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

    expand/collapseExploration Business Management(a722)Module information - Printer Friendly

    Competency Statement:

    Upon successful completion of this module you will understand, and have used, key methodologies and business processes involved in the approval of an exploration well, and other projects, by a company's exploration and senior management. These include a critical technical and economic review of an exploration prospect and its risked and unrisked economic analyses in the context of both the corporate economic measure of merit hurdles required to be cleared in order to receive funding support and the potential for company exploration budget constraints. The learner will have experienced ways to address project uncertainties and followed the sequence of internal company and partner decision and approval processes before exploration drilling preparations can start. Finally, you will understand the importance of aligning exploration efforts with company strategy and will have an insight into host government strategies to attract exploration.

    Learning Objective:

    Upon successfully completing Learning Module 4, you should be able to:

    • Perform a critical technical review of an exploration prospect.
    • Perform a critical economic review of an exploration prospect.
    • Use discounted cash flow techniques and calculate a range of different economic measures of merit when capital is rationed.
    • Utilize economic thresholds in investment decision making.
    • Address project uncertainty in the decision making process.
    • Incorporate risk analysis in investment decision making.
    • Identify the key components and stages of the decision process to approve well activities.
    • Review oil company and host country exploration strategies.
    • Align exploration acreage acquisition efforts with company strategy.

    Read all the reference material included under the Reference Selector, and References and Field Data tabs.

     

    Assignment Instruction:

    Your company, the Greque Oil Company, is a successful and ambitious oil company. In Assignments 1 and 2, the company has entered into an agreement to explore a 1,500 square kilometer offshore block in a foreign country. As a member of the Executive Review Board, you will conduct critical technical reviews of an exploration prospect at two different stages (one year apart) of its maturity.

    In Assignment Page 3, the Greque Oil Company has four wells in one of its fields, each with investment opportunities. You are asked to maximize the value of these potential projects under the company's current capital rationing constraints, prioritizing the well activities appropriately.

    In Assignment Page 4, you will address the risks and uncertainties in these well projects as part of the investment decision making process.

    In Assignment Page 5, you will follow the key stages of the decision processes required in order for the Executive Review Board to approve well activities.

    In Assignment Page 6, you will experience matching exploration acreage acquisition targets to the company strategy as defined by the Executive Review Board.

     

    Background Learning Prerequisites:

    In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

    Habitat of Hydrocarbons in Sedimentary Basins

    Play Analysis

    Risk Analysis Applied to Petroleum Investments

    Plate Tectonics and Sedimentary Basins

    expand/collapseExploration Project Management(a720)Module information - Printer Friendly

    Competency Statement:

    In this learning module you will be introduced to the project management stage-gate process, with attention to Stage One, the Exploration Stage. Specific focus is placed on the host country licensing agreement and its commercial terms, the value of information as it applies to the exploration process; including the manner in which an opportunity progresses from play to prospect, the drilling of exploratory wells and the formation evaluation decisions.

    The estimation of resources using the SPE resources management system, and the project economic analysis using both deterministic and stochastic analysis will be covered.

    Learning Objective:

    Upon complication of this module, the learner will be able to

    • Describe the Exploration Project Management methodology and its role in the exploration process
    • Understand the Exploration Process from both a technical and business management perspective
    • Apply the SPE Resources Management System to exploration opportunities
    • Understand the role of risk and uncertainty and the costs associated with risk reduction and its impact on profitability
    • How to develop business metrics for an exploration prospect using project economics under conditions of uncertainty
    • How to review the business and technical criteria necessary to move an opportunity from play to prospect through disciplined process that leads to a commitment to move to Stage Two: Planning Field Development

    Assignment Instruction:

    In this learning module you will be introduced to the project management stage-gate process, with attention to Stage One, the Exploration Stage. Specific focus is placed on the host country licensing agreement and its commercial terms, the value of information as it applies to the exploration process; including the manner in which an opportunity progresses from play to prospect, the drilling of exploratory wells and the formation evaluation decisions.

    The estimation of resources using the SPE resources management system, and the project economic analysis using both deterministic and stochastic analysis will be covered. In this module we will use as a case study, an offshore exploration opportunity in the hypothetical Republic of Nicola, to demonstrate how the Stage-gate Process is applied in practice. We will follow the exploration and development of the Agbami Field, a deepwater oilfield located about 70 km offshore Nigeria. This challenging project came onstream in 2008, almost 10 years after oil was discovered on November 20, 1998.

    Please continue now to Stage One where you will learn what happened during the exploration of the Nicola opportunity. Learn how our Technical and Commercial Teams worked together to prepare their report to management in support of undertaking exploration in that country.

    Upon complication of this module, you will be able to:

    Describe the Exploration Project Management methodology and its role in the exploration process.

    Understand the Exploration Process from both a technical and business management perspective.

    Apply the SPE Resources Management System to exploration opportunities.

    Understand the role of risk and uncertainty and the costs associated with risk reduction and its impact on profitability.

    How to develop business metrics for an exploration prospect using project economics under conditions of uncertainty.

    How to review the business and technical criteria necessary to move an opportunity from play to prospect through disciplined process that leads to a commitment to move to Stage Two: Planning Field Development

    Background Learning Prerequisites:

    In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

    expand/collapsePLAN: Corporate Exploration Planning and Management

    Scenario

    Exploration planning and management examines scenario planning and business analysis from the corporate perspective and the investment profile of plays and prospects in the context of company strategy and future growth.  In Learning Plan 8 you will examine processes and best practices generally accepted across the industry and you will be placed in the role of a decision review board member making investment decisions and portfolio adjustments for your company.

    Task Summary:

    In Learning Plan 8, you participate in the process of scenario planning and business analysis for the company learning key input data.  You will examine best practices and procedures at the corporate level that define how to move an exploration idea from concept to drilling.  The role of diversification is examined as you learn how to develop a corporate portfolio and then to manage it to its maximized potential.  Finally today’s drilling activities need to be done in the context of being a good corporate citizen.  You will participate in the development of an environmental impact evaluation with the goal of obtaining the necessary permits to proceed with an exploration project and securing the capital funding necessary to drill the exploratory well.

    expand/collapseStrategic Scenario Planning and Business Analysis(a761)Module information - Printer Friendly

    Competency Statement:

    You will learn how to apply strategic scenario planning and business analysis techniques to analyze different options and select the optimal approach for business expansion into new strategic opportunities and areas.

    Learning Objective:

    Upon completing this Learning Module, you should be able to:

    • To understand the principles of strategic planning and the role of the planning process in addressing the aspirations of the enterprise and managing the economic growth of the organization

    • To develop corporate strategies, using scenario planning techniques, in order to improve profitability, respond to new business opportunities, and achieve sustainable competitive advantage

    • To learn the key elements that lead to corporate advantage and that create value for your enterprise

    • To apply the principles of the balanced scorecard while implementing decision making processes

    Note: For this action learning module, you must first read the material under the Reference and Field Data or Reference Selector tabs.

    Assignment Instruction:

    Your company's major product, methanol, relies for feedstock upon a long term supply of low cost natural gas.  Recently your business has been impacted by the loss of key gas supplies because of exhaustion of reserves and curtailment caused by geopolitical conditions.

    This has prompted your company to look worldwide at how it can stabilize the gas supplies either by entering the gas exploration business or purchasing gas in other countries.

    You are asked to evaluate several new business opportunities using scenario analysis.  Opportunities include traditional exploration, unconventional gas, joint ventures in existing projects and direct purchase.  You will use financial models and related business analysis methods to prepare recommendations to the board.

    Note: For this action learning module, you must first read the material under the Reference and Field Data tab in the assignment section.

    Background Learning Prerequisites:

    In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

    expand/collapseExploration Project Best Practices and Procedures(a762)Module information - Printer Friendly

    Competency Statement:

    You will learn how best practices and procedures, including workflow management, are applied to Petroleum exploration and how they lead to streamlined, predictable and efficient use of the company's resources and improved business performance.

    Learning Objective:

    • Learn the essentials of the five-stage life cycle of a petroleum project that are an integral part of the corporate planning and exploration management process
    • Learn the standard documents and procedures that should be applied to petroleum exploration
    • Learn the key components of Stage One: Assessment of Exploration Opportunities
    • Learn a typical exploration workflow and best practices used in petroleum exploration

    Assignment Instruction:

    In this assignment your methanol company elects to explore for its own natural gas resources and it is up to you to develop the standard best practices and workflow management that should be applied to exploration projects as they are processed through stage one of the stage-gate process.

    This consists of pursuing a workflow sequence of activities and preparing documents and procedures that lead to a disciplined project management approach to the exploration process.

    Background Learning Prerequisites:

    In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

    expand/collapseCorporate Portfolio Management(a763)Module information - Printer Friendly

    Competency Statement:

    Petroleum exploration opportunities, like investments in the stock market, face a wide range of risks with substantial impact on ultimate financial performance. However, with careful planning, analysis and selection, these projects can be grouped into portfolios with relatively predictable outcomes. In this module you will learn how energy opportunity diversification using portfolio management processes leads to a predictable commercial outcome. Global exploration opportunities are studied in the context of reserve and income replacement.

    Learning Objective:

    Upon completing this Learning Module, the learner should be able to:

    • Learn the key business fundamentals of an enterprise, including existing businesses and their historical performance

    • Analyze and characterize the portfolio of existing and potential businesses, and rank them in terms of business performance fundamentals and the strategic objectives of the enterprise.

    • Learn how to apply risk to your decision process and its effect on the portfolio.

    Note: For this action learning module, you must first read the material under the Reference and Field Data or Reference Selector tabs.

    Assignment Instruction:

    It turns out that the decision by your methanol company to invest in exploration five years ago has led to substantial financial success for the company. With this new found wealth it is time for you to expand your exploration presence by investing in a portfolio of opportunities and making investment decision on worldwide opportunities based on your corporate vision and mission.  

    You will be presented with a group of new investment opportunities and must select those that meet your portfolio objectives.  You may choose to add additional investment to the current portfolio or divest your current interests and replace with new opportunities that will achieved an improved portfolio performance.

    Background Learning Prerequisites:

    In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

    expand/collapsePortfolio Performance Optimization(a764)Module information - Printer Friendly

    Competency Statement:

    Using modern portfolio management theory and practice the learner will use your methanol company’s current enterprise wide operating assets and new exploration opportunities to optimize the performance of its integrated portfolio. In the process you will learn to build and manage the portfolio as you review the current assets and new opportunities using portfolio management techniques and within the existing investment environment.

    Learning Objective:

    • Learn to apply Portfolio Management to exploration opportunities
    • Learn what an efficient frontier is and its role in portfolio performance optimization
    • Learn the various ways you can go about rebalancing your enterprise portfolio
    • How to apply passive and active portfolio rebalancing

    Note: For this action learning module, you must first read the material under the Reference and Field Data or Reference Selector tabs.

    Assignment Instruction:

    The decisions for this assignment take place ten years after your methanol company's initial analyses regarding the construction of a corporate portfolio. Your team receives data about the performance of the enterprise businesses, as well as information about the current business environment and changes in the global trends that are affecting your petroleum investments.

    You will be offered a new slate of business opportunities for consideration. You will need to develop recommendations to optimize your enterprise portfolio by maximizing return on capital employed and other key business criteria.

    INSTRUCTIONS AND HELPFUL HINTS

    This training course places you in the role of a business analyst in a division that produces gas feedstock for a methanol production plant. There is a single consistent expectation that is reflected throughout this role: you must select the optimal approach for developing a diversified portfolio that maximizes a trio of financial values and a pair of performance ratios. The existing portfolio is composed of a variety of LAND based, SEA based, BIOMASS based, and even LANDFILL based investments. Your portfolio strategy is to maximize the levels of Earnings and Reserves in the portfolio, as well as the Return on Capital Employed (ROCE) and a Corporate Social Responsibility ratio that measures strategic and social performance levels. One of your primary challenges will involve the need to maximize outcome metrics like Earnings and Reserves while minimizing the amount of capital employed to generate them.

    You will be asked to develop a baseline assessment of the performance of your existing LAND portfolio. Then you will be asked to expand that baseline assessment to the comparative performance metrics of your SEA, BIOMASS, and LANDFILL projects, followed by a variance analysis on your total portfolio.

    After you complete your baseline evaluation with the construction of an efficient frontier chart, you will proceed to address more complex evaluative considerations. For instance, you will assess whether a passive portfolio rebalancing strategy is sufficient to achieve your investment goals, and will then explore several active portfolio opportunities as well.

    How will you decide on the optimal option? You will need to develop a methodology that computes the relative impact of each portfolio management strategy on your financial performance metrics. At times, you will also need to apply your professional judgment to situations when the metric measurement methodologies may themselves may require reassessment.

    Background Learning Prerequisites:

    In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain:

    expand/collapseEnvironmental Impact Evaluation(a760)Module information - Printer Friendly

    Competency Statement:

    The learner will be introduced to the systematic process that is used by international companies to identify, mitigate, and manage environmental impacts of proposed upstream oil and gas projects using World Bank Standards and the Equator Principles.

    Learning Objective:

    • Learn the scope and application of environmental regulations necessary to receive environmental permits to proceed with exploration projects
    • Learn the essence of environmental and social impact statements (EIS), their scope and implementation for exploration projects using the World Bank process as a universal model
    • Learn how to apply the Equator Principles for international projects that require bank financing
    • Learn how to manage the EIS process from initiation to final audit for an E&P project
    • Review summaries of EIS filings for actual exploration projects

    Assignment Instruction:

    Your team has proposed an exploration drilling program located on the continental slope in an area of uniformly smooth seabed ranging in depth from 1,900m to 1,950m. To the north the continental slope continues to decline steadily reaching depth in excess of 2,500m in the Romit trough. The scope of this assignment is all operational activities relating to the drilling of the exploration well.

    To secure the proper permits you and your team will need to demonstrate to the national Directorate of Environment that the management of all environmental and socio-economic impacts have been considered.

    Background Learning Prerequisites:

    In order to successfully complete this assignment, you will need to complete the following Background Learning subtopics, or be familiar with the subject matter that they contain: