Hydraulic Fracture Optimization Study

1. Hydraulic Fracture Optimization Study Goals: • Understand relationships between fracture design and economics: • History match previous fractured wells • understand field wide matrix permeabilities and fracture lengths • Understand importance of dimensionless conductivity • Fracture conductivity - variable • Fracture length

2. Goals: • Design fractures that yield optimal production profiles • Optimal economic fracture conductivity and length • Include safety factor for uncertain matrix permeability • Post Fracture Analysis

3. 350 Acre Single Well Hydraulic Fracture Grid

4. Pressure Profile For 50 foot Hydraulic Fracture

5. Effect of Fracture Conductivity • No effect over 100 fold difference in Kf*H

6. Effect of Fracture Length • Large Influence – 0 versus 50 versus 100 feet

7. Effect of Under Designing Fracture in Good Perm. Area • Production losses smaller • For 600 versus 1200 foot fracture half length • Production acceleration reduced

8. Effect of Under Designing Fracture in Low Perm. Area • Production losses larger • For 600 versus 1200 foot fracture half length • 20% lost reserves at year 5 • Production acceleration greatly reduced

9. History Match of Post Fracture Production • Include tubing curves to match tubing pressures • Needed because no bottom hole buildup data

10. History Match of Post Fracture Production • Match tubing pressures

11. Predictive runs - 17- 20% recovery factor in 10 years

12. Hydraulic Fracture Optimization Study Conclusions • Fracture conductivity not important • Fracture length critical to design • Fracture length should be overdesigned unless matrix perm known with certainty because: • Production acceleration losses are large • Reserves lost – 20% over 5 years