TIN CUP MESA

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TIN CUP MESA FEDERAL 4-26 Geologic and
Engineering Report
Horizontal Well Drilling Lateral No.1 May 22, 2009
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ABSTRACT   The Paradox Basin of Utah, Colorado,
Arizona, and New Mexico contains nearly 100 small
oil fields producing from carbonate buildups
within the Pennsylvanian Desmoinesian) Paradox
Formation. These fields typically have one to 10
wells with primary production ranging from
700,000 to 2,000,000 barrels of oil per field and
a 15 to 20 percent recovery rate. At least 200
million barrels of oil will not be recovered from
these small fields because of inefficient
recovery practices and undrained heterogeneous
reservoirs. Several fields in southeastern Utah
and southwestern Colorado are being evaluated as
candidates for horizontal drilling and enhanced
oil recovery from existing vertical wells based
upon geological characterization and reservoir
modeling case studies. Geological
characterization on a local scale is focused on
reservoir heterogeneity, quality, and lateral
continuity, as well as possible reservoir
compartmentalization, within these fields. This
study utilizes representative cores, geophysical
logs, and thin sections to characterize and grade
each fields potential for drilling horizontal
laterals from existing development wells. The
results of these studies can be applied to
similar fields elsewhere in the Paradox Basin and
the Rocky Mountain region, the Michigan and
Illinois Basins, and the Mid-continent region.
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Horizontal Drilling Three factors create
reservoir heterogeneity within productive zones
in the Paradox Formation (1) variations in
carbonate fabrics and facies, (2) diagenesis
(including karstification and various stages of
dolomitization), and (3) fracturing. The extent
of these factors and how they are combined affect
the degree to which they create barriers to fluid
flow. Untested compartments created by these
conditions may be ideally suited for horizontal
drilling techniques. In addition, horizontal
drilling from existing wells minimizes surface
disturbances and costs for field development,
particularly in the environmentally sensitive
areas of southeastern Utah and southwestern
Colorado.
Figure A
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Horizontal Drilling Horizontal drilling,
developed primarily in the 1990s, is now a
common, economical technique to increase oil
production and reserves. Advances in downhole
motors, flexible drill pipe, and
measurement-while-drilling (MWD) technology have
resulted in improved success and reduced drilling
costs. Drilling horizontally (1) improves
well/reservoir productivity, (2) increases well
drainage area and reservoir exposure,
particularly critical if the reservoir is
fractured or thin (figure A, B, and C), (3)
delays interface breakthrough (coning) (figure
D), (4) improves sweep efficiency/ultimate
recovery, (5) accelerates well payoff and rate of
return, (6) reduces inertial (turbulence)
pressure losses, (7) accesses remote and isolated
zones, (8) improves reservoir characterization,
and (9) exploits gravity drainage mechanism
effectively (Kikani, 1993 Stark, 2003).
Figure B
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Horizontal Drilling Drilling techniques should
include new wells and horizontal, often multiple
and stacked, laterals from existing vertical
wells. Multiple laterals are recommended where
separate, geologically distinct zones are
present. Horizontal wells should generally be
drilled perpendicular to the dominant orientation
of open fractures, and above and parallel to the
low-proved oil or oil/water contacts. Finally, a
decision about drilling horizontally in Paradox
Formation fields should also be based on the
reservoir depth, regulatory requirements for
spacing, type of application, and surface
location to avoid topographic features.
Figure C
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Figure D
Historical Aspects The value of horizontal
drilling has not been demonstrated in any of the
over 100 smaller shallow-shelf carbonate
reservoirs in the Paradox Basin (Blanding
sub-basin Desert Creek zone, Blanding sub-basin
Ismay zone, and Aneth platform Desert Creek zone
sub-plays). The reservoirs are heterogeneous due
to lithofacies changes and extensive diagenesis
within the Ismay and Desert Creek zones, leaving
untapped compartments.
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Historical Aspects During the 1990s, horizontal
drilling was proven to be a viable alternative to
conventional vertical drilling. Many drilling and
logging problems associated with horizontal
drilling have been overcome. Successful
horizontal drilling programs have been applied to
widespread areas in the U.S. and elsewhere
including the Austin Chalk play along the Gulf
Coast of Texas, the Bakken Shale play in the
Williston basin, the Niobrara Chalk play in the
DJ basin, and the Lower Cretaceous Mannville
Group in the Alberta basin (Fritz and others,
1992 Stark, 1992). These plays targeted
reservoirs dominated by fractures. At this time
in the northern Paradox Basin, horizontal
drilling successfully reopened old fields and led
to discoveries in the Cane Creek shale the
Paradox Formation fractured shale sub-play
(Morgan, 1992). Carbonate reservoirs that have
successfully been drilled with horizontal wells
include pinnacle reefs in the Alberta basin, the
Madison Group in the Williston basin, Permian
Basin reefs, and Devonian and Silurian pinnacle
reefs in the Michigan basin. The purpose of
horizontal drilling for these carbonate
reservoirs was to solve water-, solvent-, and/or
gas-coning problems control water production
improve light oil production and encounter
off-reef lithofacies or karsted reef surfaces.
These drilling programs were not designed to
encounter untapped reservoir compartments. The
results of these drilling projects are summarized
by Jones (1992), LeFever (1992), and Wood and
others (1996). The horizontal wells in these
plays have generally higher success rates, higher
initial flowing potentials (20 to 50), lower
drilling costs, and require fewer wells to drain
a reservoir than vertical wells.
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Drilling operations There have been many
advances in horizontal drilling technology and
cost control over the last 15 years. The use of
modern angle build motors and MWD logging
equipment allow accurate entry into potential
reservoirs. Cost control using new methods and
equipment can reduce the cost of drilling
horizontally to less than 1.5 times that of
drilling a vertical well. Wells are prepared in
two ways. They are either whipstocked (preferred)
or sectioned, depending upon casing condition.
Mud-log interpretation and rate of penetration
(ROP) are the only source of reservoir quality
information in the lateral. Rate of penetration
is a real-time indicator used to steer the well.
In good porosity lithofacies, ROP averages
between 0.5 to 3 minutes/foot. In poor porosity
lithofacies, ROP slows down to 9 minutes/foot
(Amateis and Hall, 1997).
Cross sections serve more as a guide than an
absolute target since porosity and permeability
are not very predictable. Adjustments are made as
the laterals are drilled using the cuttings and
penetrations rates. The depth of horizontal wells
must be controlled to be above and parallel to
the low-proved oil or oil/water contacts. These
contacts may have moved upward during the
production history of the field so determining
their exact elevation is a key component in
drilling plans. Accurate determination of dip and
strike of the complex producing structures is
also critical to planning horizontal drilling
operations. Sophisticated MWD techniques are
applied to steer up and down the structure or
particular lithofacies within the target zone.
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Over 400 million barrels of oil have been
produced from the shallow shelf carbonate
reservoirs in the Pennsylvanian (Desmoinesian)
Paradox Formation in the Paradox Basin, Utah and
Colorado. With the exception of the giant Greater
Aneth field, the other 100-plus oil fields in the
basin typically contain 2 to 10 million barrels
of original oil in place. Most of these fields
are characterized by high initial production
rates followed by a very short productive life
(primary), and hence premature abandonment. Only
15 to 25 percent of the original oil in place is
recoverable during primary production from
conventional vertical wells.
Tin Cup Mesa Oil Field
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The proposed well will penetrate across the known
fractures of the reservoir thus accessing the
recoverable reserves. The original well permit
was approved for two laterals. The lateral to
the southeast was named Lateral No. 1. However,
when Weatherford designed the horizontal drilling
plan, they named the northwest lateral Lateral
No. 1. Since we are only drilling one lateral,
we have renamed the northwest lateral as Lateral
No. 1.
North
Proposed Northwest Lateral No. 1
Federal 4-26
Tin Cup Mesa Unit
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TIN CUP MESA Existing Wells
TIN CUP MESA FEDERAL 6-26
TIN CUP MESA FEDERAL 5-26
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TIN CUP MESA Existing Wells
TIN CUP MESA FEDERAL 2-23
TIN CUP MESA FEDERAL 3-26
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TIN CUP MESA Existing Wells
Tin Cup Mesa Federal 2-25
Tin Cup Mesa Federal 3-25
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TIN CUP MESA Equipment
Water Disposal Equipment
Oil Heater Treaters
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TIN CUP MESA Equipment
Storage Building and Gas Sales Equipment
Oil Tank Battery 3200-Barrel Capacity
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TIN CUP MESA Equipment
Field Office
Gas Processing Plant
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TIN CUP MESA Geologic Well Log
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TIN CUP STRUCTURAL CROSS SECTION
Fed 4-26 Geologic Cross Section
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TIN CUP MESA HORIZONTAL DIAGRAM
Whipstock Placement
Existing Well Bore
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