SPE Aberdeen Simplified Series 2014 Demystifying Petroleum Engineering

SPE Aberdeen Simplified Series 2014 Demystifying Petroleum Engineering Sponsored by Shell UK Limited Ross Lowdon June 4 th 2014

SPE Aberdeen Simplified Series 2014 Demystifying Petroleum Engineering WELLBORE SURVEY SIMPLIFIED Kindly Sponsored by Shell UK Limited Ross Lowdon June 4 th 2014

Agenda n Defining a survey n History of Wellbore surveying n Why do surveys matter? n Survey errors n Future of surveying 3

What is a Survey? MEASUREMENTS OFF SURFACE LOCATION start point J-67 M-66 K-57 I-67 G-67 D-57 O-66 P-66 K-66 MD = length Of wellbore Along path E-57 A-67 C-67 P-76 DEPTH measured from a datum P-56 J-66 D-66 Existing well Currently drilling Surface well location Wellbore trajectories 4 Wellbore TVD = Vertical depth Independent Of path INCLINATION from vertical AZIMUTH aligned to a North ref

History of Wellbore surveying n Texas 1890’s n Next door “stealing oil” n “Prove it” n Jam Jar acid level 5

History of Wellbore surveying n 1930 Photo Magnetic single shot n 1930 Photo Gyroscopic survey n 1980 Measurement While Drilling n 1999 Gyro While Drilling 6

Survey Technologies n Magnetic – Robust and RT 5 second surveys – Poor reference – Affected by offset casing n Gyroscopic – Excellent Reference – Sensitive RT 2 -7 mins – Not affected by offset casing 7

Why Does a Wellbore Survey Matter n Avoiding wells collisions n Avoiding well control issues n Relief wells n Ensure you hit the your targets n LWD to reservoir model tie in n Reserves estimates n Legal requirements 8

The Value of Good Surveying Practice Shorter gyro run 9 $15 K Saved casing survey $125 K Production ‘shut in’ $700 K Target sidetrack $2– 3 M Dry well $25 M Major collision blowout $$$? ?

Avoiding other Wells n Well avoidance – Complex and contradictory data – Managing the survey data – Poor data quality/missing data n Survey Management – Ensuring data accuracy – Ensuring reserves estimates – Ensuring HSE 10

Lateral MWD Survey Errors Main = Bm Crustal = Bc Disturbance = Bd DS interference = Bds Total Magnetic Field = Bm + Bc + Bd ± Bds 11

Improving Definition n BGGM 54 degree n HDGM 720 degree n Mag. Var 5, 400 degree 12

Capturing the Crustal Field Aeromag or Marine Aeromag schematic 13 3 D mag cube

Optimising Lateral Survey Accuracy Local magnetic map Multi-station correction IFR = 65% Lateral EOU reduction 14 Advanced survey QC

TVD Survey Errors n BHA misalignment n Mechanical and temperature pipe stretch n Survey frequency n Measurement error 15

BHA Mis-alignment MWD sensor aligned with wellbore axis Measured Actual Tilted MWD sensor from wellbore axis n What effect does it have? – <0. 1° to 1. 0° in inclination – 0 ft to 100+ ft of TVD – Stabilizer wear? 16

Mechanical and Temperature Stretch n Steel expands with temperature and stress n Pipe stretch – – Vertical—TVD error Horizontal—MD error 1. 3 m/1, 000 m/100 deg. C—thermal Mechanical 1 m/1, 000 m—force n Can be corrected 17

Survey Frequency What is happening between 90 ft surveys? n Well placement issues – Reservoir modeling – Geo-steering – Log interpretation n Well engineering issues – Running casing – Completion flow modeling – ESP flow modeling 18

Sensor Errors n Inclination measurements ± 0. 1º – – 19 Industry standard Gyro tools same specification Calibrated Capable of higher accuracy

TVD Optimisation—is the Accuracy Real? Case Study n n n 20 Use RSS + MWD D&I EMS used to confirm MWD LWD proved TVD Captured stabilizer wear Saved appraisal well 12 m TVD error at 12, 5 km

Future of Surveying n Combined magnetic and gyro tools n Real time inertial surveying n Hole curvature measurements n Autonomous drilling machines 21

Questions? 22

NEXT SIMPLIFIED SERIES PRESENTATION SPE Simplified Series Sponsored by Shell UK Limited • Simplified Series is held every first Wednesday of each calendar Month • Next Venue – Wednesday July 2, 2014 • Station Hotel Aberdeen (The Ballroom) • Russel Morrice North Sea Drilling Engineering Manager BP • Drilling Engineering Simplified

SPE Aberdeen Simplified Series 2014 Demystifying Petroleum Engineering Organised by SPE Aberdeen Young Professionals Contact us: george. grangeon@reefsubsea. com or ross. taylor@maerskoil. com SPE Simplified Series Sponsored by Shell UK Limited