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NEWS 1 Engineering and Business News from Fekete Associates Inc. Fall 2008 Integrating Our Expertise - p1 | Advanced Gas Material Balance - p2-3 | What’s New at Fekete / SPE ATCE 2008 - p4 INSIDE THIS ISSUE Integrating Our Expertise AUTHOR David Dunn is the Vice President of Services At $130/bbl and rising, the new era of super-high oil prices will create new realities; smaller cars, higher food prices and increased shipping costs. For oil producers, it means that previously marginal projects are now economic. As a result, Fekete has experienced a steady rise in requests for integrated reservoir characterization studies. Many of you will be familiar with Fekete’s specialized services such as well testing, rate-transient analysis, wellbore and gas gathering system optimization, acid gas injection and reserve evaluation. At its core however, Fekete is a reservoir engineering and geology company. All of those specialized services are used to their maximum potential in constructing an integrated reservoir model. Lead by Senior Technical Advisor, Dr. Mehran Pooladi-Darvish, reservoir projects incorporate the multifaceted skills of Fekete’s staff. Time and again, we find that a successful study depends on a comprehensive data validation process. Analysis techniques can only yield results to the level of detail permitted by the data. AVO or pressure communication mapping can lead to phantom results if the details within the data are not respected. Knowing how the data was collected permits a realistic assignment of sensitivity ranges; a factor that becomes critical in the probabilistic evaluation of development scenarios. Fekete’s G&G team of geologists, geophysicists, petrophysicists and geomodelers, construct the 3D static model consisting of depositional, stratigraphic, structural and petrophysical components. At the same time, dynamic data is qualitatively evaluated, a step that is rarely included in a typical IRS workflow. A careful study of production trends, GOR and WOR signatures and response to production changes, provides valuable diagnostics used to condition the simulation model. The IRS projects undertaken by Fekete include black oil, EOR, thermal, conventional gas, tight gas, CBM or shale gas. We thrive on solving reservoir mysteries and unlocking the key to optimal (and now economic!) recovery. To discuss your reservoir needs, please contact Mehran Pooladi- Darvish at mpooladi-darvish@ fekete.com.
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Page 1: Common Software Release - New for 2008 - fekete.ca Newsletters/n-fall2008.pdf · overpressured reservoirs and gas desorption in coalbed methane (CBM) or shale reservoirs can have

NEWS

1

Engineering and Business News from Fekete Associates Inc. Fall 2008

Integrat ing Our Expert ise - p1 | Advanced Gas Material Balance - p2-3 | What’s New at Fekete / SPE ATCE 2008 - p4INSIDE THIS ISSUE

4

Fekete Associates Inc. | Phone: 403.213.4200 | Toll Free: 1.800.625.2488 | Fax: 403.213.4298 | Email: [email protected] | Website: fekete.com

Integrating Our Expertise

AU

THO

R David Dunn is theVice President of Services

Fekete averages two releases per year for each of our six commercial software packages. This means we are upgrading at least one of our applications every month. While many of our clients appreciate the on-going development of our software, it becomes difficult for IT departments to keep up to the continuous install requests for Fekete upgrades.

To simplify the upgrade process, we are now synchronizing our software releases so that all Fekete applications will be released at the same time on a single DVD-ROM. The first DVD was released in July 2008, and the next release will be December 2008. We hope that with the synchronized software release, the upgrade process will be easier for your company to implement.

The installation procedure on this DVD follows Microsoft Installation guidelines. There are additional benefits in the installation of this new DVD. The type of license that you have purchased from Fekete and your unique Software Number is encoded in the Software Key (previously referred to as a serial number). When you install software from the DVD, you will be prompted for that licensed Software Key. If you provide one, it will build your security to match your license agreement. If you don't have a Software Key, you can install a trial version of the software from the DVD at your convenience.

The DVD also contains our full series of Technical Videos, details of our consulting services, and other information about Fekete. The Technical Video Series has received an overwhelming response because of its value as a training tool and as an overview of new emerging technology. For a copy of the DVD with our trial software and Technical Videos, please email us at [email protected].

SPE ATCE ANAHEIM NOVEMBER 11- 14, 2007

Common Software Release - New for 2008

To receive an electronic copy of Fekete’s newsletter, please contact us at [email protected]

At $130/bbl and rising, the new era of super-high oil prices will create new realities; smaller cars, higher food prices and increased shipping costs. For oil producers, it means that previously marginal projects are now economic. As a result, Fekete has experienced a steady rise in requests for integrated reservoir characterization studies.

Many of you will be familiar with Fekete’s specialized services such as well testing, rate-transient analysis, wellbore and gas gathering system optimization, acid gas injection and reserve evaluation. At its core however, Fekete is a reservoir engineering and geology company. All of those specialized services are used to their maximum potential in constructing an integrated reservoir model. Lead by Senior Technical Advisor, Dr. Mehran Pooladi-Darvish, reservoir projects incorporate the multifaceted skills of Fekete’s staff.

Time and again, we find that a successful study depends on a comprehensive data validation process. Analysis techniques

can only yield results to the level of detail permitted by the data. AVO or pressure communication mapping can lead to phantom results if the details within the data are not respected. Knowing how the data was collected permits a realistic assignment of sensitivity ranges; a factor that becomes critical in the probabilistic evaluation of development scenarios.

Fekete’s G&G team of geologists, geophysicists, petrophysicists and geomodelers, construct the 3D static model consisting of depositional, stratigraphic, structural and petrophysical components. At the same time, dynamic data is qualitatively

evaluated, a step that is rarely included in a typical IRS workflow. A careful study of production trends, GOR and WOR signatures and response to production changes, provides valuable diagnostics used to condition the simulation model. The IRS projects undertaken by Fekete include black oil, EOR, thermal, conventional gas, tight gas, CBM or shale gas. We thrive on solving reservoir mysteries and unlocking the key to optimal (and now economic!) recovery.

To discuss your reservoir needs, please contact Mehran Pooladi- Darvish at mpooladi-darvish@ fekete.com.

SPE ATCE DENVER - September 21-24, 2008

We want to see you! Come visit us at the SPE Annual Technical Conference in Denver, September 21-24, 2008. Our booth is #1911, located to the left of the registration area.

Reservoir engineering experts in well test analysis, coalbed methane, shale gas studies, and production data analysis will be on-hand to answer your most challenging questions.

We look forward to the opportunity to visit with you in Denver.

AU

THO

R

Kevin Dunn is the Manager of Technical Sales at Fekete

Page 2: Common Software Release - New for 2008 - fekete.ca Newsletters/n-fall2008.pdf · overpressured reservoirs and gas desorption in coalbed methane (CBM) or shale reservoirs can have

3

AUTH

ORS

2

expansion/shrinkage, and gas desorption can be written as:

The above equation can be rearranged into the following format:

where cwip, cep and cd are defined as:

cwip: the change in volume due to the water encroachment/ production relative to the initial free gas pore volume, cwip=(We–WpBw)/(GfBgi).

cep: the change in pore volume due to formation and residual fluid expansion relative to the initial free gas pore volume, cep=(cf+cw+Swi+coSoi)(pi –p)/Sgi.

cd: the change in desorbed gas volume relative to the initial free gas pore volume, cd=(VLpi /(pL+pi)–VLp/(pL+p))ρBBg/(Sgiø)

Equation 2 is an easy formulation for a general material balance equation and can be plotted as (p/Z)(1–cwip–cep–cd)versus Gp to give a straight line. However, it is derived based on the pore volume of the free gas. Therefore, the straight line crosses the abscissa at Gf (free gas volume) not G (total gas-in-place).

This is an inconvenience and is a disadvantage of this plotting format (see Figure 3) when compared to the conventional material balance where the abscissa is G (total gas-in-place).

In his work on CBM material balance, King (1993) introduced Z* as Z*=Z/[Sgi–(cf+cwSwi+coSoi)(pi–p)–(We–WpBw)/(GfBgi/Sgi)+(ρBBg/ø)(VLp/(pL+p))] and reformatted Equation 1 as below:

This equation has the same format as the conventional gas material balance equation, and can be plotted as a straight line of p/Z* versus Gp which extrapolates to G, as can be seen in Figure 4. This format has a clear advantage over that of Figure 3 in that it extrapolates to the more usable value of total gas-in-place (G)rather than the free gas (Gf). Whereas this format is theoretically applicable to gas reservoirs other than CBM, the fact that the p/Z* values bear little resemblance to the conventional p/Z values detracts from its utility.

In an effort to generalize the gas material balance equation for all reservoirs (conventional, overpressured, CBM/shale), we, at Fekete, have developed a Z** variable to replace King’s Z* and have written the gas material balance equation as:

The advantage of the Z** format is that the p/Z** values are similar in magnitude to the conventional p/Z values. As shown in Figure 5, p/Z** versus Gp is a straight line that starts from the conventional pi/Zi and extrapolates to G. This formulation and presentation has simplified the applicability of the general material balance equation. The definition of Z** was derived by combining Equations 1 and 2, but it turns out that Z** is related to King’s Z* by the following relationship:

Material balance has long been used in reservoir engineering practice as a simple yet powerful tool to determine the original- gas-in-place(G). The conventional format of the gas material balance equation is the simple straight line plot of p/Z versus cumulative gas production (Gp) which can be extrapolated to zero p/Z to obtain G. The graphical simplicity of this method makes it popular. The method was developed for a “volumetric” gas reservoir. It assumes a constant pore volume of gas and accounts for the energy of gas expansion, but it ignores other sources of energy such as the effects of formation compressibility, residual fluids expansion and aquifer support. It also does not include other sources of gas storage such as connected reservoirs or adsorption in coal/shale. Figure 1 shows p/Z versus Gp for several scenarios with the same original-gas-in-place (G). It can be seen from this figure that except for the volumetric reservoir, the plot is not a straight line, because gas expansion is not the only drive mechanism. In fact, water encroachment in waterdrive reservoirs, formation and residual fluid expansion in overpressured reservoirs and gas desorption in coalbed methane (CBM) or shale reservoirs can have a significant role as a driving force in these cases.

In these situations, a more rigorous form of the material balance equation needs to be used, to account for all the driving forces in addition to that of gas expansion. The simplicity of the p/Z straight line is lost in the resulting complexity. In this article, we present a new format, known as the p/Z** plot, which recaptures the simplicity of the straight line while accounting for all the drive mechanisms.

Volumetric ReservoirConventional gas material balance is based on the fact that the remaining gas in the reservoir at any pressure, (G–Gp)Bg, occupies the same reservoir volume as was initially occupied by the original-gas-in-place at the initial pressure, GBgi (Figure 2a). Thus GBgi=(G–Gp)Bg . In this situation, gas compressibility (expansion) is the only production mechanism.

Water Influx and ProductionIn a water-drive reservoir, the aquifer provides pressure support by encroachment of water into the gas reservoir. The encroached

water (We) decreases the pore volume available for the remaining gas (Figure 2b). The gas material balance is modified to GBgi=(G– Gp)Bg+(We–WpBw), to account for the water encroachment/ production where Wp is the produced water.

Overpressured ReservoirFormation and residual fluids compressibilities are usually very small in comparison with the gas compressibility. Therefore, in general, ignoring the formation and the residual fluids expansion does not affect the gas material balance significantly. However, at high pressures the gas compressibility is of the same order of magnitude as the formation and residual fluids compressibilities. Overpressured reservoirs are the most common example of this situation, where ignoring the effect of formation and residual fluids expansion may result in serious overprediction of G. In overpressured reservoirs, the p/Z versus Gp plot yields two distinct slopes. The first slope (shallow) is in the pressure range where formation and residual fluids expansion play a significant role, while the second slope (steep) reflects the region where gas expansion is the dominant production mechanism. The change in pore volume due to the pressure drop from initial reservoir pressure (pi) to a lower pressure p is equal to (GBgi/Sgi)(cf+cwSwi+coSoi) (pi–p). The material balance equation can be modified to a more general form, Figure 2c (Ramagost and Farshad, 1981).

CBM/Shale Gas DesorptionThe gas storage mechanism in a CBM (or shale gas) reservoir is unlike what is found in a conventional gas reservoir. In a typical gas reservoir, gas is stored in the pores by compression. In a CBM/shale reservoir, gas is stored within the coal/shale matrix by adsorption, in addition to the free gas (Gf) stored in the fracture network. As the reservoir pressure is reduced, gas is desorbed from the surface of the matrix. The amount of gas stored by adsorption can exceed the gas stored by compression. Desorption of gas is commonly described by the Langmuir Isotherm: Gas Content = VLp/(pL+p), where VL and pL are the Langmuir volume and pressure parameters, respectively and gas content is the volume of gas adsorbed per unit mass of coal/shale. In order to obtain the total gas G, the gas material balance equation needs to be modified to include the free gas and the adsorbed gas. The amount of free gas in the reservoir at pressure p is the difference between the total G (initial free gas + initial adsorbed gas) and the amount of produced gas plus the amount of gas which is still adsorbed on the surface of the coal [Gf+ρBVBVLpi /(pL+pi)–Gp–ρBVBVLp/(pL+p)].

General Material Balance EquationThe general material balance equation with consideration of water encroachment/production, residual fluids expansion, formation

AU

THO

RS Louis Mattar, P. Eng.,Yemisi Jeje, P. Eng., Samane Moghadam, M.Sc.

Reservoir @ pi Reservoir @ p

GBgi (G–Gp)Bg

=GBgi (We–WpBw)+(G–Gp)Bg

GBgi (GBgi/Sgi)(cf+cwSwi+coSoi)(pi–p)+(We–WpBw)+(G–Gp)Bg

=

=

(a) Volumetric Reservoir 

(b) Water-drive Reservoir 

(c) Overpressured+Water-drive Reservoir 

Equation 2

Equation 1

SUMMARY

• For both simple and complex gas reservoirs, the advanced gas material balance can be represented as a straight line using p/Z** instead of the conventional p/Z.

• Z** is related to King’s Z* but results in a more familiar presentation.

ReferencesKing, G.R., Material-Balance Techniques for Coal-Seam and DevonianShale Gas Reservoirs With Limited Water Influx, SPERE (1993) 8, 67–72.Ramagost, B.P., Farshad, F.F., P/Z Abnormally Pressured Gas Reservoirs,SPE 10125 (1981).

f gif gi f p g e p w f w wi o oi i

gi

f gi L i LB g

gi L i L

( ) ( ) ( )( )

( )

G BG B G G B W W B c c S c S p p

S

G B V p V pBS p p p p

ρ

φ

= − + − + + + − +

−+ +ø

p iwip ep d

f i

(1 ) (1 )G pp c c c

Z G Z− − − = − ,

Equation 3

Figure 1: Conventional plot: p/Z versus cumulative gas production

Figure 2: Schematic of reservoir volume at initial pressure and at lower pressure

Figure 3: (p/Z)(1– cwip– cep– cd)and p/Z plots

Figure 4: King’s p/Z* and p/Z plots

Figure 5: p/Z** and p/Z plots

Equation 4

Advanced Gas Material Balance Advanced Gas Material Balance, Cont.

Page 3: Common Software Release - New for 2008 - fekete.ca Newsletters/n-fall2008.pdf · overpressured reservoirs and gas desorption in coalbed methane (CBM) or shale reservoirs can have

3

AUTH

ORS

2

expansion/shrinkage, and gas desorption can be written as:

The above equation can be rearranged into the following format:

where cwip, cep and cd are defined as:

cwip: the change in volume due to the water encroachment/ production relative to the initial free gas pore volume, cwip=(We–WpBw)/(GfBgi).

cep: the change in pore volume due to formation and residual fluid expansion relative to the initial free gas pore volume, cep=(cf+cw+Swi+coSoi)(pi –p)/Sgi.

cd: the change in desorbed gas volume relative to the initial free gas pore volume, cd=(VLpi /(pL+pi)–VLp/(pL+p))ρBBg/(Sgiø)

Equation 2 is an easy formulation for a general material balance equation and can be plotted as (p/Z)(1–cwip–cep–cd)versus Gp to give a straight line. However, it is derived based on the pore volume of the free gas. Therefore, the straight line crosses the abscissa at Gf (free gas volume) not G (total gas-in-place).

This is an inconvenience and is a disadvantage of this plotting format (see Figure 3) when compared to the conventional material balance where the abscissa is G (total gas-in-place).

In his work on CBM material balance, King (1993) introduced Z* as Z*=Z/[Sgi–(cf+cwSwi+coSoi)(pi–p)–(We–WpBw)/(GfBgi/Sgi)+(ρBBg/ø)(VLp/(pL+p))] and reformatted Equation 1 as below:

This equation has the same format as the conventional gas material balance equation, and can be plotted as a straight line of p/Z* versus Gp which extrapolates to G, as can be seen in Figure 4. This format has a clear advantage over that of Figure 3 in that it extrapolates to the more usable value of total gas-in-place (G)rather than the free gas (Gf). Whereas this format is theoretically applicable to gas reservoirs other than CBM, the fact that the p/Z* values bear little resemblance to the conventional p/Z values detracts from its utility.

In an effort to generalize the gas material balance equation for all reservoirs (conventional, overpressured, CBM/shale), we, at Fekete, have developed a Z** variable to replace King’s Z* and have written the gas material balance equation as:

The advantage of the Z** format is that the p/Z** values are similar in magnitude to the conventional p/Z values. As shown in Figure 5, p/Z** versus Gp is a straight line that starts from the conventional pi/Zi and extrapolates to G. This formulation and presentation has simplified the applicability of the general material balance equation. The definition of Z** was derived by combining Equations 1 and 2, but it turns out that Z** is related to King’s Z* by the following relationship:

Material balance has long been used in reservoir engineering practice as a simple yet powerful tool to determine the original- gas-in-place(G). The conventional format of the gas material balance equation is the simple straight line plot of p/Z versus cumulative gas production (Gp) which can be extrapolated to zero p/Z to obtain G. The graphical simplicity of this method makes it popular. The method was developed for a “volumetric” gas reservoir. It assumes a constant pore volume of gas and accounts for the energy of gas expansion, but it ignores other sources of energy such as the effects of formation compressibility, residual fluids expansion and aquifer support. It also does not include other sources of gas storage such as connected reservoirs or adsorption in coal/shale. Figure 1 shows p/Z versus Gp for several scenarios with the same original-gas-in-place (G). It can be seen from this figure that except for the volumetric reservoir, the plot is not a straight line, because gas expansion is not the only drive mechanism. In fact, water encroachment in waterdrive reservoirs, formation and residual fluid expansion in overpressured reservoirs and gas desorption in coalbed methane (CBM) or shale reservoirs can have a significant role as a driving force in these cases.

In these situations, a more rigorous form of the material balance equation needs to be used, to account for all the driving forces in addition to that of gas expansion. The simplicity of the p/Z straight line is lost in the resulting complexity. In this article, we present a new format, known as the p/Z** plot, which recaptures the simplicity of the straight line while accounting for all the drive mechanisms.

Volumetric ReservoirConventional gas material balance is based on the fact that the remaining gas in the reservoir at any pressure, (G–Gp)Bg, occupies the same reservoir volume as was initially occupied by the original-gas-in-place at the initial pressure, GBgi (Figure 2a). Thus GBgi=(G–Gp)Bg . In this situation, gas compressibility (expansion) is the only production mechanism.

Water Influx and ProductionIn a water-drive reservoir, the aquifer provides pressure support by encroachment of water into the gas reservoir. The encroached

water (We) decreases the pore volume available for the remaining gas (Figure 2b). The gas material balance is modified to GBgi=(G– Gp)Bg+(We–WpBw), to account for the water encroachment/ production where Wp is the produced water.

Overpressured ReservoirFormation and residual fluids compressibilities are usually very small in comparison with the gas compressibility. Therefore, in general, ignoring the formation and the residual fluids expansion does not affect the gas material balance significantly. However, at high pressures the gas compressibility is of the same order of magnitude as the formation and residual fluids compressibilities. Overpressured reservoirs are the most common example of this situation, where ignoring the effect of formation and residual fluids expansion may result in serious overprediction of G. In overpressured reservoirs, the p/Z versus Gp plot yields two distinct slopes. The first slope (shallow) is in the pressure range where formation and residual fluids expansion play a significant role, while the second slope (steep) reflects the region where gas expansion is the dominant production mechanism. The change in pore volume due to the pressure drop from initial reservoir pressure (pi) to a lower pressure p is equal to (GBgi/Sgi)(cf+cwSwi+coSoi) (pi–p). The material balance equation can be modified to a more general form, Figure 2c (Ramagost and Farshad, 1981).

CBM/Shale Gas DesorptionThe gas storage mechanism in a CBM (or shale gas) reservoir is unlike what is found in a conventional gas reservoir. In a typical gas reservoir, gas is stored in the pores by compression. In a CBM/shale reservoir, gas is stored within the coal/shale matrix by adsorption, in addition to the free gas (Gf) stored in the fracture network. As the reservoir pressure is reduced, gas is desorbed from the surface of the matrix. The amount of gas stored by adsorption can exceed the gas stored by compression. Desorption of gas is commonly described by the Langmuir Isotherm: Gas Content = VLp/(pL+p), where VL and pL are the Langmuir volume and pressure parameters, respectively and gas content is the volume of gas adsorbed per unit mass of coal/shale. In order to obtain the total gas G, the gas material balance equation needs to be modified to include the free gas and the adsorbed gas. The amount of free gas in the reservoir at pressure p is the difference between the total G (initial free gas + initial adsorbed gas) and the amount of produced gas plus the amount of gas which is still adsorbed on the surface of the coal [Gf+ρBVBVLpi /(pL+pi)–Gp–ρBVBVLp/(pL+p)].

General Material Balance EquationThe general material balance equation with consideration of water encroachment/production, residual fluids expansion, formation

AU

THO

RS Louis Mattar, P. Eng.,Yemisi Jeje, P. Eng., Samane Moghadam, M.Sc.

Reservoir @ pi Reservoir @ p

GBgi (G–Gp)Bg

=GBgi (We–WpBw)+(G–Gp)Bg

GBgi (GBgi/Sgi)(cf+cwSwi+coSoi)(pi–p)+(We–WpBw)+(G–Gp)Bg

=

=

(a) Volumetric Reservoir 

(b) Water-drive Reservoir 

(c) Overpressured+Water-drive Reservoir 

Equation 2

Equation 1

SUMMARY

• For both simple and complex gas reservoirs, the advanced gas material balance can be represented as a straight line using p/Z** instead of the conventional p/Z.

• Z** is related to King’s Z* but results in a more familiar presentation.

ReferencesKing, G.R., Material-Balance Techniques for Coal-Seam and DevonianShale Gas Reservoirs With Limited Water Influx, SPERE (1993) 8, 67–72.Ramagost, B.P., Farshad, F.F., P/Z Abnormally Pressured Gas Reservoirs,SPE 10125 (1981).

f gif gi f p g e p w f w wi o oi i

gi

f gi L i LB g

gi L i L

( ) ( ) ( )( )

( )

G BG B G G B W W B c c S c S p p

S

G B V p V pBS p p p p

ρ

φ

= − + − + + + − +

−+ +ø

p iwip ep d

f i

(1 ) (1 )G pp c c c

Z G Z− − − = − ,

Equation 3

Figure 1: Conventional plot: p/Z versus cumulative gas production

Figure 2: Schematic of reservoir volume at initial pressure and at lower pressure

Figure 3: (p/Z)(1– cwip– cep– cd)and p/Z plots

Figure 4: King’s p/Z* and p/Z plots

Figure 5: p/Z** and p/Z plots

Equation 4

Advanced Gas Material Balance Advanced Gas Material Balance, Cont.

Page 4: Common Software Release - New for 2008 - fekete.ca Newsletters/n-fall2008.pdf · overpressured reservoirs and gas desorption in coalbed methane (CBM) or shale reservoirs can have

NEWS

1

Engineering and Business News from Fekete Associates Inc. Fall 2008

Integrat ing Our Expert ise - p1 | Advanced Gas Material Balance - p2-3 | What’s New at Fekete / SPE ATCE 2008 - p4INSIDE THIS ISSUE

4

Fekete Associates Inc. | Phone: 403.213.4200 | Toll Free: 1.800.625.2488 | Fax: 403.213.4298 | Email: [email protected] | Website: fekete.com

Integrating Our Expertise

AU

THO

R David Dunn is theVice President of Services

Fekete averages two releases per year for each of our six commercial software packages. This means we are upgrading at least one of our applications every month. While many of our clients appreciate the on-going development of our software, it becomes difficult for IT departments to keep up to the continuous install requests for Fekete upgrades.

To simplify the upgrade process, we are now synchronizing our software releases so that all Fekete applications will be released at the same time on a single DVD-ROM. The first DVD was released in July 2008, and the next release will be December 2008. We hope that with the synchronized software release, the upgrade process will be easier for your company to implement.

The installation procedure on this DVD follows Microsoft Installation guidelines. There are additional benefits in the installation of this new DVD. The type of license that you have purchased from Fekete and your unique Software Number is encoded in the Software Key (previously referred to as a serial number). When you install software from the DVD, you will be prompted for that licensed Software Key. If you provide one, it will build your security to match your license agreement. If you don't have a Software Key, you can install a trial version of the software from the DVD at your convenience.

The DVD also contains our full series of Technical Videos, details of our consulting services, and other information about Fekete. The Technical Video Series has received an overwhelming response because of its value as a training tool and as an overview of new emerging technology. For a copy of the DVD with our trial software and Technical Videos, please email us at [email protected].

SPE ATCE ANAHEIM NOVEMBER 11- 14, 2007

Common Software Release - New for 2008

To receive an electronic copy of Fekete’s newsletter, please contact us at [email protected]

At $130/bbl and rising, the new era of super-high oil prices will create new realities; smaller cars, higher food prices and increased shipping costs. For oil producers, it means that previously marginal projects are now economic. As a result, Fekete has experienced a steady rise in requests for integrated reservoir characterization studies.

Many of you will be familiar with Fekete’s specialized services such as well testing, rate-transient analysis, wellbore and gas gathering system optimization, acid gas injection and reserve evaluation. At its core however, Fekete is a reservoir engineering and geology company. All of those specialized services are used to their maximum potential in constructing an integrated reservoir model. Lead by Senior Technical Advisor, Dr. Mehran Pooladi-Darvish, reservoir projects incorporate the multifaceted skills of Fekete’s staff.

Time and again, we find that a successful study depends on a comprehensive data validation process. Analysis techniques

can only yield results to the level of detail permitted by the data. AVO or pressure communication mapping can lead to phantom results if the details within the data are not respected. Knowing how the data was collected permits a realistic assignment of sensitivity ranges; a factor that becomes critical in the probabilistic evaluation of development scenarios.

Fekete’s G&G team of geologists, geophysicists, petrophysicists and geomodelers, construct the 3D static model consisting of depositional, stratigraphic, structural and petrophysical components. At the same time, dynamic data is qualitatively

evaluated, a step that is rarely included in a typical IRS workflow. A careful study of production trends, GOR and WOR signatures and response to production changes, provides valuable diagnostics used to condition the simulation model. The IRS projects undertaken by Fekete include black oil, EOR, thermal, conventional gas, tight gas, CBM or shale gas. We thrive on solving reservoir mysteries and unlocking the key to optimal (and now economic!) recovery.

To discuss your reservoir needs, please contact Mehran Pooladi- Darvish at mpooladi-darvish@ fekete.com.

SPE ATCE DENVER - September 21-24, 2008

We want to see you! Come visit us at the SPE Annual Technical Conference in Denver, September 21-24, 2008. Our booth is #1911, located to the left of the registration area.

Reservoir engineering experts in well test analysis, coalbed methane, shale gas studies, and production data analysis will be on-hand to answer your most challenging questions.

We look forward to the opportunity to visit with you in Denver.

AU

THO

R

Kevin Dunn is the Manager of Technical Sales at Fekete