SPE Reservoir Evaluation & Engineering
Volume 11, Number 5, October 2008, pp. 912-920

SPE-108176-PA

Improving Reserves Estimates From Decline-Curve Analysis of Tight and Multilayer Gas Wells

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DOI  More information 10.2118/108176-PA http://dx.doi.org/10.2118/108176-PA

Citation

  • Cheng, Y., Lee, W.J., and McVay, D.A. 2008. Improving Reserves Estimates From Decline-Curve Analysis of Tight and Multilayer Gas Wells. SPE Res Eval & Eng11 (5): 912-920. SPE-108176-PA.

     

Discipline Categories

  • 6.7 Reserves Evaluation
  • 6.7.3 Deterministic Methods

Summary

Decline-curve analysis is one of the most commonly used techniques to estimate reserves from production data. In tight formations that have been stimulated--especially when there are multiple layers that communicate only at the wellbore--the uncertainty in reserves estimates from this technique is quite large because forecasting future performance is quite difficult. This uncertainty can affect the classification of reserves, and could limit what we should call "proved developed reserves." In this paper, we present new procedures to mitigate the complexity of decline-curve analysis in multilayer tight gas wells. Using synthetic and field examples, we demonstrate how reserves can be estimated more reliably.

For tight and multilayer gas wells, it is not uncommon that decline-curve analysis yields an Arps decline-curve parameter b greater than unity (Arps 1945). Single-layer hydraulically fractured tight gas wells also appear to have b-values greater than unity. Different practices are used to handle such complexity. For forecasts, some analysts simply use the b-value obtained from matching production data, while others force the b value to be unity. Still others use the hyperbolic decline and the matched value of b, but, when the decline rate reaches a predetermined limit, they switch to exponential decline for the remainder of the forecast. Thus, forecasted performance differs significantly when different analysts analyze the data. Consequently, the reserves estimate has large uncertainty, which can, in turn, affect its classification.

In this paper, we first present an in-depth investigation of decline behavior of tight, single-layer and multilayer gas wells by analyzing depletion characteristics using simulated data sets. We illustrate the long-duration transient effects present in single-layer stimulated tight gas wells and the complex flow regimes present when wells in layered reservoirs are produced commingled. Our work indicates that, as observed in field data, transient effects and coexistence of different flow regimes between layers lead to abnormal decline behavior (b > 1.0) in multilayer tight gas wells, which leads to errors in production forecasts. Our new procedure provides a method to minimize these errors.

Introduction

Decline-curve analysis is one of the most commonly used techniques to predict future production performance and estimate reserves from routinely available production data. Although Arps' decline equations were developed empirically (Arps 1945), the parameter b in the decline equations was proved to be related to fluid properties and production conditions (Chen and Teufel 2002; Fetkovich et al. 1996). Conventional decline-curve analysis inherently assumes a single-layer reservoir, the well producing at constant bottomhole pressure (BHP), and stabilized flow conditions (Fetkovich et al. 1996). In addition, use of Arps’ equations implies that there are no changes in completion and operating conditions. It is well documented that the decline exponent should range between zero and 1.0 when these assumptions are satisfied (Arps 1945; Fetkovich et al. 1996).

Tight gas reservoirs are characterized by permeabilities less than 0.1 md. Gas wells in tight formations usually require hydraulic fracturing of multiple layers to be viable commercially. Therefore, analysis of decline behavior in tight gas wells presents unique technical challenges (Cox et al. 2002; Neal and Mian 1989). It is often very difficult, if not impossible, to estimate reserves accurately in a timely and consistent fashion with decline-curve analysis. Long times--often years--are required to reach so called pseudosteady-state flow (actually, boundary-dominated flow because the term "pseudosteady state" strictly applies only to constant-rate production). The production data available for decline-curve analysis are, therefore, typically not stabilized. As a result, it is not uncommon for tight gas wells to exhibit Arps' decline constants, b, that exceed 1.0 (Maley 1985). With b-values greater than 1.0, future performance and remaining reserves will be greatly overestimated. In conventional practice, some analysts simply use the b value obtained from matching of production data, while others force the b value to be 1.0. Still others use the hyperbolic decline and the matched value of b, but, when the decline rate reaches a predetermined limit, they switch to exponential decline for the remainder of the forecast. However, this latter procedure has no physical basis. This type of decline behavior is highly unlikely in nature.

Another complication in analysis of decline data in tight gas wells is that, in most cases, production is commingled from multilayered formations that are hydraulically fractured with multiple stages. Because of variations in formation permeability and fracture half-length, different flow regimes may coexist in different layers. Lower-permeability zones may be in transient flow, while higher-permeability zones have established stabilized, boundary-dominated flow. The profile of production contribution by individual layers changes constantly with time. Given these complications, decline-curve analysis of multilayer tight gas wells is especially difficult, particularly with regard to estimating long-term production and reserves.

The objective of our work is to develop method to improve reserves estimates from decline-curve analysis of tight and multilayer gas wells, particularly those dominated by transient flow. In this paper, we propose a new, improved technique to analyze transient-flow-dominated production data. The distinctions of our method from other methods currently in use are that we determine the b value for stabilized (boundary-dominated) flow a priori, history match multiple periods of late production data in a backward fashion to determine a set of decline parameters qi and Di , and then extrapolate these parameters to qi and Di corresponding to the end of history for use in projecting future production.

We generated synthetic production-data sets using reservoir simulation for two cases: a single-layer gas well and a multilayer gas well. We show that, with existing decline-curve methods, analysis of stabilized-flow data is sufficient to produce accurate production forecasts and reserves estimates, but analysis of transient-flow-dominated production data can result in large errors. Using the new proposed method, significant improvement in the accuracy of production forecasts and reserves estimates for transient-flow-dominated gas wells is demonstrated for both the synthetic cases and a field example.

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History

  • Original manuscript received: 20 February 2007
  • Meeting paper published: 1 April 2007
  • Revised manuscript received: 10 April 2008
  • Manuscript approved: 19 April 2008
  • Version of record: 25 October 2008