Horizontal Drilling and Completion in Thin Sand Target with Water Zone Above

1. 1 Horizontal Drilling and Completion in Thin Sand Target with Water Zone Above SPE Shekou, China Thanh Tran, CACT You HongQing, CACT

2. 2 Geology and reservoir target review. Well planning Completion Landing Lateral drilling Drilling execution Result Agenda

3. 3 Mature Oil Fields Challenges Increasing water cuts.

4. 4 Opportunities To recover ReserveIn Mature Fields

5. 5 HZ 26-1-9SaSb Drilling/Completion Challenges Summary

6. 6 HZ26-1 FieldM12 Top Structure Map

7. 7 Cross Section Showing Proposed Pilot and Horizontal Wells

8. 8 Cross Section Showing Control Wells

9. 9 Well Planning Issues Well completion Water isolation strategies Primary cement isolation Secondary water isolation with mechanical packers Water isolation equipment Mechanical packer? Swell packer? Casing setting point In the shale zone above sand target? In the sand target? Precise well landing in thin reservoir target Neutralize structural, stratigraphic and formation dip uncertainties Precise well placement in thin reservoir target Reservoir quality changes in thin pay zone

10. 10 Multi Disciplinary Team Work

11. 11 Recommended Well Plan Landing plan Incorporate 5 m TVD tangent drilling above sand target to reduce sub-surface uncertainties. Use LWD with near bit sensors to detect thin shale layer above target and verify formation dip. Land well and set 7” liner right below sand target. Lateral drilling plan Geosteer within good sand quality layer. Drill +- 300 m lateral if possible Completion plan Ensure good primary cement behind 7” liner as primary water isolation. Set one mechanical packer and one swell packer right outside 7” liner as secondary water isolation. Completion BHA included. Stand alone screen for sand control ICD (Inflow Control Devise) and isolation packers to improve oil reserve recovery.

12. 12 Completion Plan Diagram

13. 13 HZ 26-1-9SaLanding Plan Summary Start tangent drilling @ 87 deg approximately 1 m TVD below M10d Marker Maintain 87 degree tangent drilling to bottom of M10 Build to 88.5 degree. Once the ADN image crosses the shale layer above M12; verify formation dip. If formation is dipping up more than 1deg; the inclination angle may be increased accordingly to achieve 35m MD of shale section above M12Top. Stop drilling 20m MD below M10Btm. Run and cement 7” liner Drill out cement, land the well to 89.6deg .5-1m below top of M12. This inclination angle may be changed based on the new dip data. (*) Collect shale samples below L60 bottom and above M12 top for shale reactive possibility.

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15. 15 Landing Log Correlation ShowedStratigraphic Uncertainty

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17. 17 HZ26-1-9SaSb Final Data

18. 18 HZ26-1-9SaSb Production Result

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