TGS Gas Shale Presentation

Hart Energy DUG East

Pete Dotsey
TGS N&S Am Business Development Mgr
PeteD@tgsnopec.com

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 DUG East Conference Agenda

Regional Petrophysical Analysis of the Marcellus Shale

Pete Dotsey, North and South America Business Development Manager,
TGS

12:15 p.m. Luncheon (and special guest speaker)

Author, journalist and former White House official, Karl Rove brings his
unique perspective on politics to the luncheon audience at DUG East on the
day following the 2010 mid-term election, sharing insights on the election
results and their potential impact on shale gas development and the energy
industry.

Karl Rove
An update on mid-term elections and their impact on the gas
industry.

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 TGS Gas Shale & Well Log Data Objectives

1. Understand Gas Shales

• Geological Properties - Extent and Thickness
• Geochemical Properties - Maturity and TOC
• Petrophysical Properties - Porosity and Lithology

2. Build Value Added Products

Utilize our well log database, public domain databases, and expertise
to provide our clients with accurate gas shale properties to identify the
more prospective areas within the play

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Major Points for Marcellus Shale Gas Presentation

• TGS has built a well log database that contains over 18,500
wells within the Marcellus trend with well log data and over
14,500 wells with porosity log data.

• TGS has interpreted the Marcellus and other major

geological units in 3,000 wells.

• TGS has developed a calibrated TOC model to calculate

TOC and porosity for the Marcellus interval.

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 TGS Well Log Data History

1. 2002 TGS Acquires A2D (1.5 MM Logs)

2. 2003 TGS Acquires Riley’s (3.7 MM Logs)

3. 2006 – 2007 TGS developed significant support to digitize

onshore US well dB

4. 2010 TGS surpasses 500,000 digitized wells

5. 2010 – TGS Launches two initiatives

a) Building Well Tops Databases
b) Petrophysical Processing of Well Curve Data

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 Gas Shale Occurrence in North America

(Canadian National Energy Board 2009)

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 TGS Well Log Database in North America

7 Over 500,000 Digitized Wells

 Marcellus Shale Occurrence

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 Marcellus Gas Shale Trend

Coleman and Swezey

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 TGS Marcellus Trend Well Log Data

• 14,079 Wells with

Resistivity and
Porosity Log Data

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 Understanding Gas Shale

Methane is predominately trapped within tiny pores and

fractures

The shale acts as source, seal and reservoir

Conventional log analysis needs to be modified for gas

shale analysis

Determining the maturity of the shale is vital for TOC and

Porosity calculations

TOC and Porosity determination is critical for gas-in-place

(GIP) estimations
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 Understanding Gas Shale

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 Evaluating the Marcellus Gas Shale

1. First, identify the Marcellus Interval in your well log data

2. Second, develop a calibrated TOC model based on TOC

measurements vs. well log response

3. Third, calculate TOC and Porosity, based on your

calibrated model

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 First: Identify the Marcellus Shale Interval

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 First: Identify the Marcellus Shale Interval

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 First: Identify the Marcellus Shale Interval

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 Second: Develop a Calibrated TOC Model
Due to the presence of organic rich
material and gas:
1. GR increases
2. Sonic interval transit time
increases (slower)
3. Neutron increases
4. Density decreases
5. Resistivity increases

Passey et al 2010, SPE 131350. “From Oil-

Prone Source Rock to Gas-Producing
Shale Reservoir – Geologic and
Petrophysical Characterization of
Unconventional Shale-Gas Reservoirs”

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 Second: Develop a Calibrated TOC Model

∆ log R = Log10 (R/RBaseline) + 0.02 * (∆t – ∆tBaseline)

∆ log R = Log10 (R/RBaseline) + 4 * (NPHI – NPHIBaseline)

∆ log R = Log10 (R/RBaseline) – 2.5 * (RHOB – RHOBBaseline)

TOC measured values and ∆ log R are then

substituted into the equation below to solve for LOM:

TOC = (∆ log R) * 10 (2.297 – 0.1688 * LOM)

*Passey et al. AAPG-BUL-1990-A Practical Model for Organic Richness from Porosity and Resitivity Logs

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 Second: Develop a Calibrated TOC Model

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 Marcellus Trend Calibrated TOC Model

Delta Log R Correlation between Geochem TOC (red

dots) and calculated TOC (blue line) is
excellent - note brown curve is TOC %vol
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 Third: Calculate TOC and Porosity

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 Third: Calculate TOC and Porosity

∆ log R = Log10 (R/RBaseline) + 0.02 * (∆t – ∆tBaseline)

∆ log R = Log10 (R/RBaseline) + 4 * (NPHI – NPHIBaseline)

∆ log R = Log10 (R/RBaseline) – 2.5 * (RHOB – RHOBBaseline)

LOM and ∆ log R are now substituted into the

equation below to solve for TOC:

TOC = (∆ log R) * 10 (2.297 – 0.1688 * LOM)

*Passey et al. AAPG-BUL-1990-A Practical Model for Organic Richness from Porosity and Resitivity Logs

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 Third: Calculate TOC and Porosity
Conventional methods for calculating porosity
need to be modified

Density Log Sonic Log

ρg − ρb ∆ t − ∆ t ma
φ = φ =
ρ g − ρ fl ∆ t fl − ∆ t ma

• TOC matrix density is much lower then surrounding shale (gives pseudo porosity)
• Corrections must be applied to remove TOC matrix values
• Gas can be stored in both micro pores of shale (free) and adsorbed to the matrix
material (adsorbed)
• Total porosity includes both adsorbed and free gas, there are equations for reconciling
the two

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 Third: Calculate TOC and Porosity
TOC effect on porosity calculation needs to be calculated.
TOC wt% needs to be converted to vol% in order to be incorporated into porosity
calculations
For example, if a shale matrix was 2.5 g/cc and TOC matrix was 1.25 g/cc @ 5
%wt, then the actual volume occupied would be closer to 10%vol

Non – source
RHOB
shale density Density of TOC

ρg − ρb ρg − ρtoc
φ= − TOC (vol %) *
ρg − ρfl ρg − ρfl

Density of fluid – needs

to be correct for gas

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 Third: Calculate TOC and Porosity

• When RHOB is not available, we can estimate porosity using sonic.

• Sonic is not as ideal because it doesn’t detect fracture porosity as well

DT log Non – source shale DT DT of TOC

∆t − ∆tma ∆tma(toc) − ∆tma

φ= − TOC (vol %) *
∆tfl − ∆tma ∆tfl − ∆tma

DT of fluid – needs to
be corrected for gas

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 TGS Petrophysical Workflow for Marcellus Wells
HQLD (high quality log data) Processing - Choose curves with greatest
coverage and character. Environmentally correct every well in the scope
of project from first to last reading. Depth shift any logs off depth.
Remove all cased hole data. Bad data in rat hole will be removed with
RHOB and DT de-spiked where necessary.

Identify bad hole sections running algorithms based on CALI and DRHO.
This will highlight potential logging problems which may lead to falsely
calculated parameters such as TOC and PHI

Estimate VSH using a variety of methods such as GR, Neutron/Density,

Neutron/Sonic and SP to indicate composition of rock (best 2 methods
delivered)

Flag potential pyrite areas based on PEF, RHOB, DT and RD responses

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 TGS Petrophysical Workflow for Marcellus Wells
Estimate level of maturity based on TOC vs. Delta LogR cross plots for
wells with available Geochem data and Vitrinite Reflectance (Ro) data

Calculate TOC% for wells with porosity log data using Passey calibrated
method

Calculate total porosity using modified conventional equations with

RHOB and DT

Calculate lithology for entire well

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Clean-up Raw Curve Data & Identify Bad Hole Flags

Choose curves with greatest coverage and character. Bad hole flag
Environmentally correct every well from first to last calculated from
reading. Depth shift any logs off depth. Remove all DCAL and
cased hole data. Bad data in rat hole will be removed DRHO
with RHOB, and DT despiked where necessary.
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 Calculate Volume of Shale (Vsh)

V-Shale from a range of sources including GR, RHOB/NPHI, DT/NPHI, SP

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 Use PE data to Flag Pyrite

Pyrite Flag – Reduces delta log R, which in turn reduces TOC estimation
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 TGS Marcellus Trend PE and GRS Well Data

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 Use All Tools to Estimate Lithology

Lithology track
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 Marcellus Trend Calibrated TOC Model

Correlation between Geochem TOC (red

Delta Log R dots) and calculated TOC (blue line) is
33 excellent Note pyrite effect
 Marcellus Trend Porosity Calculation

PHIT can be estimated from both RHOB and DT. TOC corrections applied

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 Processed Well Based on Calibrated Model

H_EMCH_A_PYLES-1 Average High Low

PHIT 0.055 0.1356 0
Delta Log R 1.745 3.243 0
TOC 5.838 10.856 0

• Best of the 4 wells shown, 5.5% average PHIT, increasing to 13.5% in some areas
• Average TOC 5.38 wt% and as high as 10.9 wt% - excellent potential
• No bad hole recorded, wireline response is real – huge Delta Log R cross over
• LOM 12.5 from Ro maps
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 TGS Marcellus Shale Deliverables
The following deliverables are provide for the entire well:
Fully corrected wireline data sets
Calculated Lithology
Formation Tops

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 TGS Marcellus Shale Deliverables Cont’d
The following deliverables are provide for the Marcellus interval:
VSH – best two methods where possible
Bad hole flag indicating poor hole conditions
Delta Log R curve (RD and porosity curve data needs to be present)
TOC curve (low, high and estimated) based on range of estimates from
LOM. TOC vol% will also be delivered based on best TOC wt curve.
Pyrite flag curve indicating areas of possible pyrite presence based on
PEF, RHOB, DT, RD
Total porosity – sensitivity tests run to allow varying TOC densities (low,
high and estimated) TOC densities will be used as this depends on
kerogen type)

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 Summary
TGS has excellent well data coverage in North America including the
Marcellus trend.

We have established a correlation framework in the Marcellus that can

be filled-in with additional well data from our well log dB Log-Line Plus.

We have developed a calibrated TOC model utilizing available

geochemical data for the Marcellus trend.

We can deliver quality curve data and well top control for the entire trend
for over 18,500 wells.

We can calculate accurate TOC and porosity values for over 14,000
wells within the Marcellus gas shale trend.

Each well is interpreted on an individual basis, providing the most

accurate results – no batch processing.
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 Leonard Harrison State Park is a
585-acre (237 ha) Pennsylvania
state park near Wellsboro in Tioga
County, Pennsylvania in the United
States. It is on the east rim of the
800-foot (240 m) deep Pine Creek
Gorge, also known as the Grand
Canyon of Pennsylvania, carved by
Pine Creek.

Thank you

Pete Dotsey
713-860-2151
PeteD@tgsnopec.com
Booth 426
www.tgsnopec.com

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