SPE-195666-MS

Production Strategy of a Tight Gas Carbonate Reservoir in Pakistan

Naeem Ul Hussain Dahraj, Tariq Aziz, Afnan Asghar, Adeel Aslam, Kamran Rashid, Shariq Hashmi, Pakistan
Petroleum Limited
Copyright 2018, Society of Petroleum Engineers

This paper was prepared for presentation at the PAPG/SPE Annual Technical Conference and Exhibition held in Islamabad, Pakistan, 10-12 December 2018.

This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents
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Abstract
Appraisal and development of tight gas discoveries in Pakistan is a longstanding yet unsettled challenge
to local oil and gas E&P industry. Major challenges include but not limited to marginal gas in-place
volumes, sustainability of production rates, lengthy cleanup period, significantly higher capital costs due
to imported technologies and services, less volume of work, lower competition among the service
providers, lower quality gas, lower recovery factors due to tightness and water production, complex
reservoir geology and petrophyics. Several such technical discoveries are being made by local and
multinational E&P companies time to time but due to one or the other mentioned challenges such
discoveries are presumed to be non-commercial and left unexploited. This paper shares a case study of a
real tight gas carbonate reservoir located in Middle Indus Basin of Pakistan which may help the E&P
professionals’ kick-off the thought process to understand such discoveries and adopt new strategies to
bring them on production.

The well Naushahro Feroze X-1 (NF X-1) was drilled as an exploratory well to target Chiltan Carbonate
Reservoir in the Naushahro Feroz block in Sindh, Pakistan. A tight gas discovery was made in the Chiltan
formation based on the well logs and testing results. It was concluded as naturally fractured carbonate
reservoir (NFR) and classified as Type-II NFR, Nelson (2001)1 i.e., mainly fractures provide essential
flow capacity. Reservoir evaluation indicated reservoir is over pressured and its permeability is in micro
Darcies. Subsequent horizontal appraisal well i.e., NF Hor-1(RE) drilled with a lateral section of ~1300
meters. The well was completed with an open-hole-multistage string and ten stages were selectively acid
stimulated, acid fractured and hydraulically fractured to establish the sustainable commercial gas rates.
The performance of both the exploration and appraisal wells exhibited typical production behavior of tight
gas wells with continuous decline in gas rate and wellhead flowing pressures, however, the appraisal well
proved to be better in terms of production due to better drilling, completion and stimulation strategy.

Sustainable production rate in the appraisal well could not be established due to extremely tight nature of
the matrix and water production from the deeper intervals. Surface separator multirate test was performed
followed by an extended buildup period and the surface data was recorded. The data was then used to
understand the reservoir behavior on short term and long-term basis using various analytical and numerical
analysis techniques. A 3D Black Oil dual porosity model was developed for reservoir simulation and
understanding the reservoir behavior. In the static model, the natural fractures were characterized using
the seismic attributes across the Chiltan formation. The model was then initialized, and history matched
using the available rock and fluid properties, multirate test and extended buildup data. After completing
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the analysis, an understanding was developed about the production strategies and well wise range of gas
recoveries in such tight gas discoveries which has been shared in this paper.

Introduction
Naushahro Feroz discovery is located on the northern part of Lower Indus Basin of Pakistan about 60 km
ENE of Dadu city. The exploration well NF X-1 was spud-in with a planned total depth of 3754 m (MD)
KB. The objective of the well was to test the hydrocarbon potential of Chiltan (Upper Jurassic) formation.
The well reached TD with fair to good gas shows observed in the Chiltan formation. Interpretation of
wire-line logs including FMI data suggested lesser fractures in the target formation. To test the potential
of the well, an open hole DST was conducted which resulted in gas flare at surface. However, during
reaming the hole, drill string got stuck and attempts ended unsuccessful leaving a fish in the parent hole
i.e Hole-A.

Well was side tracked and a new hole i.e. Hole-B was drilled in the target formation. Based on the gas
shows encountered during the drilling and wireline logs evaluation including FMI, a Cased Hole Drill
Stem Test was carried out in the Chiltan formation of Hole - B. After acidizing, the well flowed good
quality gas at a maximum rate of ~11 MMscfd with a flowing wellhead pressure of 2635 psia, however,
both rates and flowing wellhead pressures declined sharply to a rate of 2~ MMscfd with a flowing
wellhead pressure of 375 psia.

Subsequently, a horizontal appraisal well i.e., NF Hor-1(RE) drilled with a lateral section of ~1300 meters
from the parent Hole-A. The well was completed with an open-hole-multistage string and ten stages were
selectively acid stimulated, acid fractured and hydraulically fractured to establish the sustainable gas rates.
The performance of both the exploration and appraisal wells exhibited typical production behavior of the
tight gas wells with continuous decline in gas rate and wellhead flowing pressures, however, the appraisal
well performed better than the vertical well i.e., Hole-B in terms of production rates and declining trend
due to better drilling, completion and stimulation strategies as shown in Figure 1.

Figure 1. Production Performance Comparison of NF X-1 (Hole-B) and NF Hor-1(RE)

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Well Placement
The well’s (NF Hor-1(RE)) appropriate location and trajectory was the key to better performance of the
tight gas carbonate reservoir. Well path of the appraisal well was designed to cut maximum number of
critically stressed fractures while drilling horizontally in the Chiltan formation. Seismic interpretation,
seismic attributes and previously drilled wells data were the main source to define the trajectory of the
well. Ant-Tracking attribute cube, generated from seismic cube, enhanced the impression of faults and
fractures. Considering the vertical relief of the structure and high dips of natural fractures, well was
planned to land in the top 30-40 meters of the Chiltan formation to minimize the risk water production
from the natural fractures. The trajectory of the well planned to intersect the maximum number of
interpreted fracture corridors (Figure 2). Figure 3, 4 and 5 show pre-and post-drill fracture corridors.
Well encountered all the major interpreted fracture corridors.

Figure 2. Faults and Fractures Impression on Ant Tracking Attribute at Top Chiltan and 10ms below
Top Chilton
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A B

Figure 3. Pre- and Post Drill Natural Fractures Comparison

Figure 4. Pre- and Post Drill Natural Fractures Comparison

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Figure 5. Pre-and Post Drill Natural Fractures Comparison in different holes

Completion and Stimulation Strategy

The well NF X-1 (Hole-B) provided adequate insight about the matrix permeability and fracture behavior.
Initial success in Hole-B was mainly driven by better stimulation. Thus, it was decided after detailed
deliberations that the well NF Hor-1 (RE) will be drilled as a completely horizontal well to encounter
maximum natural fractures and enhance the well’s contact with the reservoir. Moreover, acid stimulation,
acid fracturing and hydraulic fracturing were performed altogether in different zones across the well as
shown in Table-1. The rationale was to establish the future stimulation strategy for upcoming appraisal or
development wells in the field. For this sake, ten fracture corridors which were identified based on the
ant-tracking and FMI results, were completed with ten packers and SSDs for each zone between every
two packers as shown in Figure 6. Such completion provided leverage on zonal isolation and enabled to
perform focused stimulation across each zone. Only bottom most zone (zone-1) was tested as pre-
stimulation, other zones were tested combined after stimulation and hydraulic fracturing. Production
logging established that major contribution was only coming from zone-1 (at toe), zone-4 and zone -5.
Interestingly all these zones were acid treated. However, zones even with better fracture presence like
zone-10 (at heel) which was prop fracked could not contribute at all. This evidently suggested high rate
acid stimulation may be the best possible strategy for tight carbonate reservoirs. Whereas prop fracking
in naturally fractured reservoir could have reversed the effect by clogging the fractures!

Figure 6. NF Hor-1 (RE) Open Hole Multi Stage Frac Completion String
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Table 1. Zone Wise Stimulation Description of NF Hor-1 (RE)

Tight Gas Well Testing

Prominent feature of production from tight gas wells is their continuous decline in rates and pressures
from the beginning of production. An example of such is reproduced from the literature, which is pretty
much aligned with NF Hor-1 (RE) performance as shown in Figure 7. Intuitively, the initial high rate
production is governed by the gas storage in the secondary porous medium (i.e. fractures) and subsequent
sharp decline is due to low storage capacity of natural fractures. However, stabilization happens at low
rates after a relatively long production time. Stabilization is primarily governed by the reservoir matrix.

Since stabilization in such cases may be practically achieved after weeks or in some instances in months
even. Therefore, testing may not always be practically possible due to regulated flaring and cost
limitations. Precisely same transpired in NF X Hor-1 (RE) testing, as the well was tested with and without
rig for around 50 days but stabilization in rates and pressures were hardly achieved (Figure 8).
Nevertheless, relative stabilization in WGR and chlorides were noticed at 32/64” choke size at the end of
the test period, suggesting satisfactory well clean-up (Figure 9 and 10).

Figure 7. Tight Gas Well Performance (k=0.007 mD), SPE-71516-MS

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Figure 8. NF Hor-1 (RE) Rigless Testing Summary

Figure 9. NF Hor-1 (RE) WGR Tracking

Figure 10. NF Hor-1 (RE) Water Analysis: Pre and Post Clean-up Chlorides
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Reservoir Characterization Challenges

As a matter of fact, it is hard to achieve infinite acting radial (IARF) and pseudo steady state (PSS)
conditions in extremely tight reservoirs. Thus, conventional objectives of estimating reservoir initial
pressure and permeability from the well test data may be a dream for a reservoir engineer in such cases.
However, mini fall-off data may be critical for estimating these parameters. Alternatively, reservoir
pressure may be estimated from very first static gradient survey (SGS) before the start of any flow. In the
case under discussion, initial reservoir pressure was estimated from the data frac as well initial SGS, Table-
2 and Figure 11.

Table 2. Initial Reservoir Pressure and Permeability

Initial Static BHP ~7000 psia
DFIT (ACA) 7025- 7400 psia
Far Field Reservoir 0.01-0.001 mD
Permeability

Figure 11. Mini Fall-off Test Analysis

Production Strategy

In green fields, for low rate gas wells, it is quite challenging to produce economically due to higher capex
and opex. The situation off course worsens if the well produces water along with gas which is in the case
under discussion as well. It has been established that the well NF Hor-1 (RE) does not have the capacity
to sustain production at higher rates. Initial analysis was carried using a history matched analytical model
(Figure 12), which clearly indicates that if the well continues from where the testing was terminated, it
may sustain lower production rates (less than 1 MMSCFD), if not loadup due to water production.
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Figure 12. Analytical Model History Matched Over NF Hor-1 (RE) Well Test Data

Cyclic Production

In order to produce the well NF Hor-1 (RE) at decent rates and make a better case of commercial green
field, it was decided to establish a case of cyclic production using 3D reservoir simulation. It means the
well will produce for certain number of days and remains shut-in for other certain number of days.
However, in that case, in order to maintain continuous feed at plant at least two wells may be required.
The thought came primarily after observing the well’s flow performance before and after the shut-in
periods during the testing. It suggests that if after flowing for a certain period the well is shut-in for similar
duration then the matrix has the capability to charge the fracture system and deliver the similar rates again.
The charging of the matrix was established during the build up and the flow periods as shown in Figure
13 and 14.

Figure 13. Pressure Buildup Showing Clear Indication Matrix Support / Charging
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Figure 14. Reciprocal Rate vs Cum Gas Plot Showing End of Linear Flow
and Matrix Support During the Flow , SPE-161335

3D Reservoir Modelling
In order to substantiate decent production rates and recoveries from the well NF Hor-1 (RE) using cyclic
production concept; a 3D dual porosity numerical model was built, and history matched using the well
test data. An integrated approach was adopted to identify and characterize the natural fractures and their
distribution in the reservoir including geophysical interpretation, core data, borehole image (BHI) log
interpretation, well test and production data. A 3D static model was built for Chiltan formation for this
discovery. The same model was used to develop the BHI-based fracture model and to generate the fracture
porosity, fracture permeability tensors and fracture-to-matrix communication factor, also known as the
“Sigma factor”.

The seismic interpretation, which included faults and horizons, used for this study. The image log based
available open fracture interpretations were analyzed and fracture sets were interpreted for modeling in
3D. These data items were used to model fracture intensity in 3D using different seismic attributes. The
fracture corridor cube was converted in Implicit Fracture Model (IFM), matching in orientation and dip
of the open fractures seen from the image logs. Fracture porosities were calculated based on the fracture
apertures from the image logs. Fracture permeability was assigned into this model using a cubic law.
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Figure 15. Matrix Porosity (Left) and Permeability (Right) Distribution in 3D Static Geoceluller
Model

Figure 16. East-West cross-sections of 3D Static Geocelluler Model Showing Vertical

and Lateral Distribution of Matrix Porosity (Left) and Permeability (Right)

Figure 17. Fracture Porosity (Left) and Permeability (Right)

Distribution in 3D Static Geoceluller Model
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Figure 18. East-West cross-sections of 3D Static Geocelluler Model Showing Vertical and Lateral
Distribution of Fracture Porosity (Left) and Permeability (Right)

After dynamic model initialization, in order to achieve an acceptable history match, the major parameters
tuned-in were; drainage area (Figure 19), fracture porosity, fracture permeability and sigma (matrix-
fracture interaction). Figure 20 shows the history matching results. It was understood based on the history
match that the well NF Hor-1 (RE) intersected the low volume, highly permeable, poorly connected
fractures and extremely tighter matrix which basically led to sharp decline in production.
.

Figure 19. Drainage Area Sensitivity -Low volume – Highly Permeable and Poorly Connected Fractures

Figure 20. 3D Dynamic Model History Matching Results

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Continuous vs. Cyclic production

To substantiate the usefulness of the cyclic production scheme, sensitivity cases were run during the
forecasting phase with and without production cycle (Figure 21 and 22). It can be noticed from Figure
21 that the model shows no sustainable production at gas rate of 5 MMSCFD and well loads up after a
short duration. Whereas when the well was put in production at 7/7 cycle (seven days off- seven days on)
(Figure 22), the plateau extended to ~5 years. Therefore, commercial point of view, actual development
seems feasible on the concept of cyclic production of wells only.

Figure 21. Water Production Case with Continuous Production (Scenario A-5)

Figure 22. Water production case with 7/7 Cycle, (Scenario A-1)
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Optimizing the Cycle Duration

In this section sensitivities on the duration of the production cycles were performed. It is clear from Figure
23 and 24 that the well loads up at higher cycle duration i.e. 60/60 and gives better plateau duration and
EUR at smaller cycle duration i.e. 7/7. Moreover, doubling the duration of the shut-in duration i.e. 15/30
and 7/14 production cycle cases further improves the plateau duration and EUR (Figure 25 and 26).
However, in these cases, total three wells (one well at production and two wells shut-in at the same time)
will be required. The decision on going to 7/7 or 7/14 will depend on a specific well/ reservoir
performance, gas sales contractual requirement and regional economics.

Figure 23. 60/60 Cycle (Scenario A-4)

Figure 24. 7/7 Cycle (Scenario A-1)

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Figure 25. 15/30 Cycle (Scenario A-3)

Figure 26: 7/14 Cycle (Scenario A-2)

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Table 3. Results Summary

Cycle ON/OFF PlateauYears (not
Scenario # EUR , Bscf Plateau Upto Liquid Loading
Duration (Days) exact)*
Scenario –A :
1 7/7 Cycle -4 1/2" 5.7 Oct-24 3 2024
2 7/14 Cycle -4 1/2" 9.0 Dec-34 8 2034
3 15/30 Cycle -4 1/2" 7.0 Apr-30 6 2030
4 60/60 Cycle-4 1/2" 0.5 Sep-18 0.2 LL after second cycle in 2018
5 Without Cycle -4 1/2" 0.5 Till Load up NA LL after first cycle in 2018

Discussion
This paper has discussed the case history of a tight gas carbonate well drilled in Pakistan along with the
challenges and findings during the drilling, completion, stimulation, testing and analyses phases. The
paper conceptually proved the usefulness of cyclic production methodology compared to continuous
production practice for tight gas carbonates in terms of longer plateau duration and better recoveries. The
most critical in this approach could be the cyclic duration which in turn is governed by the matrix charging
and drainage. The decision on cycle optimization and hence number of producing wells depends on a
specific well/ reservoir performance, gas sales contractual requirement and regional economics.

Conclusions

1. High rate acid stimulation seems more effective in tight carbonate reservoirs.
2. A tight gas carbonate well may not produce at higher stable rates and may decline to non-economical
rates in case of continuous production.
3. The cyclic operation of a tight gas carbonate well may result in longer production at a defined plateau
rate with better recoveries as compared to its continuous operation.
4. Shorter production cycles results in better plateau durations and recoveries as compared to longer
production cycles.

Acknowledgement

The authors are grateful to Pakistan Petroleum Ltd for allowing this study to publish.

Nomenclature

BHI Borehole Image

BHP Bottom Hole Pressure
BHFP Bottom Hole Flowing Pressure
CAPEX Capital Expenditure
DFIT Diagnostic Fracture Injection Test
EUR Estimated Ultinate Recovery
IARF Infinite Acting Radial Flow
LL Liquid Loading
MMSCF Million Standard Cubic Feet
NA Not Applicable
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NFR Naturally Fractured Reservoir

OPEX Operating Expenditure
PSS Pseudo Steady State
SSD Sliding Sleeve Door
SGS Static Gradient Survey
STB Stock Tank Barrel
WGR Water Gas Ratio

References
1. Nelson, R.A. 2001. Geologic Analysis of Naturally Fractured Reservoirs.
2. Arevalo-Villagran, J. A., Wattenbarger, R. A., Samaniego-Verduzco, F., & Pham, T. T. (2001, January
1). Production Analysis of Long-Term Linear Flow in Tight Gas Reservoirs: Case Histories. Society
of Petroleum Engineers. doi:10.2118/71516-MS
3. Rodrigues, E. S., & Callard, J. G. (2012, January 1). Permeability and Completion Efficiency
Determination from Production Data in the Haynesville, Eagle Ford and Avalon Shales. Society of
Petroleum Engineers. doi:10.2118/161335-MS

About the Authors

Naeem Ul. Hussain Dahraj

Senior Reservoir Engineer, PPL

Naeem has around 9 years of diversified experience mainly with upstream E&P
companies. Currently he is working as a Senior Reservoir Engineer with Pakistan
Petroleum Limited (PPL). Previously he worked with Kuwait Foreign Petroleum
Exploration Company & New Horizon E&P Limited. He possesses MS- Petroleum
(University of Oklahoma-OU, USA), B.Eng- Petroleum (UET Mehran Jamshoro).
Moreover, he hold Masters in Economics and studding Bachelor in Laws | LLB from the University of
London, UK. His areas of experience are reservoir simulation, petroleum economics & business
development, unconventional reservoirs, brown & green field development and reservoir & well
surveillance. Moreover he is a regular author in SPE. He remained active member of OU- Shale Gas
Consortium, an Alumni of US Department of State/Fulbright Scholar and Member SPE international.

Tariq Aziz
Deputy Chief Geologist, PPL

Tariq Aziz possesses Master’s degree in Geology from University of Karachi, Pakistan in
2006. He also holds distinction in Honor’s degree in Geology from University of Karachi,
Pakistan in 2005. He has been associated with industry for the last 11 years having
multidimensional industry experience. He has served Eni Pakistan Ltd, Eni Iraq B.V and
Eni Engineering E&P Ltd, United Kingdom in the past and currently working in PPL as
Deputy Chief Geologist.
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Afnan Asghar
Geologist, PPL

Afnan received BS and MS degree in Applied Geology with specialization in Petroleum

Geology and Sedimentology from University of the Punjab, Lahore, Pakistan. Later joined
Pakistan Petroleum Limited in 2011 and currently working as Geologist in Exploration
Department. He has been involved in prospect generation & maturation, formation
evaluation, petroleum system analysis, petrophysical analysis, basin modelling, reserves
estimation and play risking. His main area of interest is exploitation of unconventional hydrocarbon
resources.

Muhammad Adeel Aslam

Senior Reservoir Engineer, PPL

M.Adeel Aslam is working as a Senior Reservoir Engineer in Pakistan Petroleum Limited

for over 5 years. He holds Bachelors in Engineering from NED University of Engineering
and Technology, Karachi and MSc in Petroleum Engineering from Imperial College
London. He is currently working as an exploration reservoir engineer and previously
have worked on production optimization and reservoir management in producing assets.”

Kamran Rashid
Senior Production Engineer, PPL

Kamran is associated with Pakistan Petroleum Limited (PPL) since 2010 and is currently
working as a Senior Production Engineer. He holds a Bachelor degree in Mechanical
Engineering from NED University, Karachi and has received his M.Sc. Petroleum & Gas
Engineering from University of Salford, United Kingdom. His main fields of interests are
Production and Completion Engineering, Completion Design, and Reservoir Stimulation.

Syed Shariq Ali Hashmi

Senior Manager (Reservoir Modelling), PPL

Shariq is currently working as Senior Manager Reservoir Modelling Group in Pakistan

Petroleum Limited (PPL). He joined PPL in September 2009 and is currently leading a
multi-disciplinary team of Geoscience and Petroleum Engineering professionals. He is
leading his team to carry out in-house reservoir simulation studies and QC 3rd party
subsurface integrated studies for supporting the field appraisal and development activities
across PPL Assets portfolio including but not limited to the recommendations for drilling
of development wells, production capacity enhancement and optimum field development planning for
maximizing hydrocarbon production and recoveries. He also worked at various capacities in PPL like
Senior Manager Sui, Manager Purification Plant, Reservoir Specialist and Chief Reservoir Engineer since
his joining. He has around 20 years of experience in the oil industry out of which 16 years in the reservoir
management. Prior to join PPL, he worked for BP and Eni for their assets in Pakistan. He holds an MS
degree in Petroleum Engineering from King Fahd University of Petroleum and Minerals, Dhahran, Saudi
Arabia and BE degree in Mechanical Engineering from NED University of Engineering and Technology,
Karachi, Pakistan.