Well logs, formation evaluation,

volumetric estimation
how much oil or gas exists and can
be produced, and what will be the
return on investment?
Volumetric estimation is concerned with quantifying
how much oil and gas exists in an accumulation.
It is a current estimate and is expected to change over
time.

Introduction
Reserves & Resource Definition

Resources are defined as:

the total estimated in-place quantities of petroleum at a
specific date to be contained in known accumulations,
plus those estimated quantities in accumulations yet to
be discovered

Reserves are defined as:

the estimated remaining quantities of petroleum
anticipated to be commercially recoverable from known
accumulations at a specific date, under existing
economic condition, by established operating practices
and under current government regulations

- SPE 38044 -

Introduction (cont)
Reserves & Resource Definition
Total IP
penetrated by a
wellbore

Commercially
recoverable

Cumulative
Production

Discovered

Undiscovered

UR

Estimated
remaining
quantities

Reserves
Proved

Total
Production to
date

Total IP yet to
be discovered

RESOURCES

Unproved
Probable

Possible

How to find out how much?

Volumetric estimation/geologist's method?

Material balance?

Pressure decline analysis?

Volumetric method

Based on cores, welll logs analysis, geological

maps...
In place HC in new, non-producing wells and
new basins
Recoverable estimated from in-place, with RF
from analogues/simulation studies
After production - valuable check on estimates
fr other methods

HC in place calculation:
GRV X NTG X POROSITY X (1-Sw)
-------------------------------------------------

Bo
where,

GRV= gross rock volume

NTG= net to gross
Sw= water saturation
Bo= formation volume factor

OOIP (m3)

OOIP (STB)

Recoverable oil volume

Example A:
1. Calculate the initial oil in place (OIP) in the field
given the following data;

Area, A= 26,700acres

Net productive thickness, h= 49 ft

Porosity=8%

Sw= 45%

Bo=1.68 bbl/STB

2. Calculate the recoverable volume from 1.

Solution

OIP (STB) = 7758 x A x h x por x (1-Sw) x (1/Bo)

= 7758 x 26700 x 49 x 0.08 x (1-0.45) / 1.68
= 265827870 STB
=~266 MMSTB

OIP (cubic meter) = ?

Recoverable = ?

But if data not given, where to get??

Geologist
Petrophysist
Geophysicist

A
H

Area
Interval thickness

N/G

Net / Gross ratio

Porosity

Sw

Water Saturation

Bo

Shrinkage factor

RF

Recovery factor
Major Source
Minor Source

Reservoir
Engineer

But how/where do they get it?

Recoverable volume =
GRV x NTG x POR X (1-Sw) X 1/Bo x RF
GRV, Gross Rock Volume calculation
-Area
-Volume
-Lets try

But how/where do they get it?

Recoverable volume =
GRV x NTG x POR X (1-Sw) X 1/Bo x RF
Net To Gross
-gross
-cut off
-net

But how/where do they get it?

Recoverable volume =
GRV x NTG x POR X (1-Sw) X 1/Bo x RF
Porosity
Water saturation
-average over a zone or as weighted average

But how/where do they get it?

Recoverable volume =
GRV x NTG x POR X (1-Sw) X 1/Bo x RF
Formation volume factor
-change in oil volume between reservoir condition
and standard condition at surface
-function of fluid composition, reservoir P, T (thus
related to reservoir depth)
-for prospects usually use analogous offset field..

But how/where do they get it?

Recoverable volume =
GRV x NTG x POR X (1-Sw) X 1/Bo x RF
Recovery factor
-one of most important yet one of most difficult
-influenced by fvf, viscosity, density, solution
gas/oil ratio
-also depends on reservoir drive mechanism

RF based on drive mechanism:

Some industry standard for various natural drive
mechanisms,
Solution gas drive

2-30%

Gas cap drive

30-60%

Water drive

2-50%

PRIMARY COMPONENTS OF PROSPECT

VALUATION
EXPLORER MAIN RESPONSIBILITIES

Identifying the prospects

Measuring (Estimating) the:
Prospect Reserves = Size & Volume
Confidence level = chance of
success
Profitability of the venture = flow
rate, price schedule and economic
consideration

A lot of uncertainties.. how?

Volumetric Estimation
Deterministic

Probabilistic

Methods of Calculating Volume of oil: STOIIP

Deterministic method
Quick look estimation = single value
Sparse Data = use average field values

Probabilistic method
Statistical estimation = range of values
Sparse data = use distribution of field values
Take into consideration uncertainty associated
with the field data

How to calculate GRV?