Fekete Newsletter Fall2013final2 - IHS Markitfekete.com/technical-resources/Technical Newsletters/n-fall2013.pdf · leverage the IHS geoscience tools including, IHS Kingdom and IHS

IHS Inc. acquires Fekete Associates Inc.

Community of Best Practice

Fekete Harmony™ / IHS Data Direct Connect Fekete News & Notes

Engineering & Business News from Fekete Associates Inc.

news

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In April 2013, IHS Inc., the leading source of information

and analytics, acquired Fekete Associates Inc. and its

Houston-based entity Fekete Corp. The acquisition strategically positions

one of the largest providers of well and production data with Fekete’s

industry-leading data analysis tools and engineering services. With

seamless access to IHS data, Fekete’s software products will empower

engineers to complete more analysis work using both traditional and

modern analysis techniques with unprecedented efficiency. Fekete’s

engineering and geoscience consulting team will also have access to a

wealth of oilfield data that will allow our engineers to provide a more

thorough analysis of assets, making our industry-leading services better

than ever.

This acquisition brings many benefits to our clients, and we plan to

leverage IHS’s capabilities and global reach. The acquisition gives us the

opportunity to strategically place engineering teams and software technical

support in regions around the world, including Europe and the Asia Pacific

region. This enables us to provide our clients with convenient access to

technical support across many time zones. As part of this growth and to

better serve our international clients, development of Fekete software tools

in other languages is a priority for future versions. There are also many

ways that the Fekete suite of reservoir and production engineering tools can

leverage the IHS geoscience tools including, IHS Kingdom and IHS Petra.

The ability to share data and results between our engineering and

geoscience tools will simplify collaboration and improve knowledge

sharing between geoscience and engineering professionals. Watch for

future developments that make this collaboration even better.

Initiatives like Fekete’s Community of Best Practice will continue to grow

and become an integral source of knowledge for Fekete’s clients under the

IHS organization. In fact, it’s a perfect fit with the IHS focus of providing

leading insight into the decision-making process. More opportunities to

participate in Communities of Best Practice around the globe are expected

in the future.

Fekete clients will also be pleased to know that the entire Fekete team

remains in place to continue serving your needs in consulting and software

development. As well, additional resources are being added to

accommodate future growth. We are still committed to providing

outstanding customer service for our cutting-edge software and consulting

services, and we look forward to continuing our work with you!

IHS Inc., headquartered in Englewood, Colorado provides data and insight

not only on energy, but across the chemical, aerospace, defense,

automotive, logistics, and electronic sectors. This suite of information

provides comprehensive working knowledge from which to make better

decisions.

For more information on IHS Inc., please visit ihs.com.

Fall 2013

IHS Inc. acquires Fekete Associates Inc.

Kevin DunnSr. Director, Engineering Business Development

ATCE 2013>>30 September – 2 October 2013

Ernest N. Morial Convention CenterNew Orleans, Louisiana, USA

Visit us at Booth 443 (Fekete) or 1419 (IHS)

new

s

Copyright © 2013 Fekete Associates Inc. Printed in Canada

One of the workflow challenges for oil & gas production analysts is to efficiently acquire data for interpretation in their preferred software applications. A typical workflow involves accessing, querying, and exporting data. Then, the task is to import this data and process it within the analysis application. This can be an arduous process when you need to get quick answers.

Fekete Harmony™ now streamlines this process by connecting directly to IHS’s production databases in both Canada and the USA. You can quickly update current well attributes, pressure, and production data via a direct connection to the Information Hub and Enerdeq databases. In the most recent release, and building on the existing “Update Existing Wells” functionality, you can also access the IHS Enerdeq database directly through Fekete Harmony’s GIS interface to view and import new wells.

4

Acquisition & Divestiture (A&D) engineers and geologists evaluating new ventures, or reservoir/production engineers seeking to develop a type well production profile based on offset production, will benefit from this efficient, on-demand data connection. Wells are easily viewed, selected, queried, and sorted based on their existing attribute data, such as primary fluid, formation, and operator. In addition, you can navigate within the geographical area of interest to ensure that you have the complete set of data available, in order to make a firm technical and business decision.

IHS’s acquisition of Fekete will further strengthen the connectivity between data and analysis software. Future development plans for Fekete Harmony™ include:

• Importing new wells using Canadian Information Hub data via GIS

• A direct connection to the International Exploration and Production Database (EDIN)

• More efficient data transfer, which enhances speed and provides a more comprehensive list of well attributes, properties, and production records

• Importing unallocated wells in Texas and Louisiana

• GIS mapping enhancements via a direct connection to IHS Energy Map Services

For additional information, please visit [email protected].

Fekete News & NotesFinal Fekete Newsletter For over 15 years, Fekete has been producing a semi-annual newsletter full of current and cutting-edge technology and engineering information. Though this fall 2013 issue will be the last official copy of Fekete News, we will continue to provide you with the same great technical content via IHS’s The Source energy newsletter.

The Source provides IHS energy customers around the world with updates on IHS Information Quality initiatives, news about product and service enhancements, and insight into market conditions and emerging technologies. Broken down by region, the newsletter also keeps customers up-to-date on new developments, important acquisitions, and access to documents like the Global Energy Information Review.

Fekete newsletter email recipients will automatically be subscribed to The Source. If you are not receiving your Fekete newsletter via email and wish to stay informed, you can subscribe to The Source by emailing [email protected].

Fekete Harmony™ / IHS Data Direct Connect

Fekete Software Name Changes

You will notice some changes to our product names in upcoming software releases as our product names and logos will be changing to reflect the recent acquisition by IHS Inc. In November 2013 products will be renamed as follows: IHS Harmony™, IHS RTA, IHS DeclinePlus, IHS CBM, IHS WellTest and IHS VirtuWell. IHS FieldNotes, IHS Piper and IHS Evolution will be rebranded in the May 2014 release.

Fekete’s Community of Best Practice is a cooperative environment in which companies can learn about reservoir behaviour and well performance in various oil & gas plays. Each Community is an opportunity to participate in an expanding knowledge base of unconventional expertise.

Our first Community was formed in 2011 in the Eagle Ford and contains over 200 wells and is expected to grow to 300 wells by end of 2013. These wells have been analyzed and re-analyzed twice annually on a common workflow that has been improved every six months. This ensures that there is a meaningful well-to-well comparison. It also ensures that there is a repository of analogs and samples that can be leveraged as you build analysis competencies within your team. Our Bakken Community formed in 2013 and will have its first mid-year conference in the autumn of 2013 in Denver.

In the Montney, the Community of Best Practice Program has been used to assist two companies. They were both primarily focused on the lower Montney in a specific aerially defined zone. Both organizations pursued very different development strategies. However, they had never worked together as companies. As they moved out of commercially proving their position in the Montney, and into full development mode they desired to gain visibility into each other’s development program. They hoped to see how the performance of their wells and effectiveness of their completion strategy varied. They also wanted a defined approach for analysis of their wells and to build the competency of their engineering teams in executing the prescribed workflow. Fekete was able to facilitate the definition of the benefits toward which they mutually wanted to work and to provide a ready-made process and legal framework to rapidly launch the initiative.

An example well from the Eagle Ford community is used to illustrate a typical workflow and methodology adopted within the Community. As in all our analyses, the first step is to scrutinize the pressure and production data to ensure consistency. This is followed by selecting an appropriate reservoir model. For this well, it is the Horizontal Multifrac Enhanced Fracture Region (EFR) analytical reservoir model (SPE 162515). This model, implemented within the Fekete Harmony™ platform is used to simulate flow rates and pressures from each well. The model takes into account three linear flow regimes: flow within the fracture (very early time), flow within the stimulated region towards the fracture, and flow within the un-stimulated region towards the stimulated region. This reservoir model assumes all fractures have the same length and conductivity and are spaced uniformly along the horizontal well. There is a region of higher permeability around each fracture to represent fracture branching. The following image illustrates the three flow regions within the model: 1. fractures (xf) are shown in yellow, 2. the enhanced fracture region (k1 and X1) is white, 3. the un-stimulated or matrix region (k2) is light green.

Extrapolation of the late time data on the Flowing Material Balance plot determines contacted volume in place (OOIP or OGIP). In this example (and for most shale wells), the well has not established boundary-dominated flow and this value is considered to be a minimum volume.F

all

20

13

2

With these volumes populated into the EFR model (as xf and X1), a history match is then performed on k1, k2, and FCD. In the example shown below, the oil production rates were used and the model calculated a synthetic pressure curve that was matched to the actual historical pressure data. The historical pressure data was supplied as wellhead measurements and converted to bottomhole. Pressure data during the middle portion of the production history (circled in red) deviated from the prior established performance, and was excluded from the history match. This production period was immediately prior to the installation of a bottomhole pump, and the wellbore pressure calculations are thought to be in error due to wellbore flow instabilities.

new

s

3

Community of Best PracticeKirk N.R. Graham, Community Program Manager

Dave Lillico, Senior Technical Advisor

As the well has not reached boundary-dominated flowing conditions there is uncertainty as to the actual reservoir volume that this well will reach. A probabilistic approach was undertaken where xf was assigned a distribution (minimum = contacted volume and maximum = 600 feet), and Monte Carlo simulation was used to sample all possible history match solutions to determine the P10, P50, and P90 cases. As in the original history match, the parameters k1, k2, and FCD were varied to achieve the best fit. Additional input variables (number of fractures, net pay and porosity) were also assigned distribution ranges due to the uncertainty in their values. Dependencies were set such that an increase in xf results in a decrease in the number of fractures and increased net pay results in decreased porosity. Results are presented as forecast values, histograms, and cumulative distribution functions.

The model is initially seeded with fluid properties, petrophysical (pay, porosity, water saturation), completion (wellbore length, number of fractures) and basic reservoir parameters (initial reservoir pressure, reservoir temperature). The inner zone fracture region (ASRV) is determined from identification of the end of the first linear flow period using the Square Root Time plot. The upwards deviation (shown below) indicates that the well is seeing interference between fractures or that flow from the matrix permeability is occurring.

The above illustrates some of the technical elements of a typical workflow. However, it is but a small example of the numerous activities and achievements within the Community. To promote technical excellence, our Eagle Ford and Bakken communities meet at least twice a year. At these events, we review the advancements made since our last meeting and discuss the challenges we are seeing in the play to help shape future Community efforts. This ensures that the Community remains relevant as our understanding of the play evolves, and our priorities change as the play advances in its development lifecycle. Throughout the year, Fekete works with each client directly to ensure Community efforts align with their unique corporate goals. Perhaps your focus is leveraging your investment in Community to build a powerful learning and development program to onboard new hires as you expand into new plays. Perhaps you intend to define and roll out a global approach to booking reserves. Or, maybe you just need to predict when your wells need to go on artificial lift to avoid damage caused by liquid loading, and to better predict upcoming capital spending. Whatever your unique challenges, Fekete will listen, reflect, and adjust to balance your needs with the other needs in the Community to ensure you get ongoing value from the Community.

An important benefit of the Community is achieved by having us act as an independent third party to coordinate efforts such as communication between companies, data submissions, distribution of content, and organization of events. Community members benefit, not only from our engineering expertise, but also by ensuring that their reservoir engineers spend more time on engineering, and less time on administration and navigating political structures. As each company is different, the playing field is inherently uneven. Fekete’s role is to level the playing field by ensuring all Community activities strive to honour our commitment to advance the knowledge base of the Community, and to assist Community members in solving their common problems through mutual cooperation.

For more information on the Community of Best Practice, please contact us at [email protected], or visit fekete.com

Fekete’s Community of Best Practice is a cooperative environment in which companies can learn about reservoir behaviour and well performance in various oil & gas plays. Each Community is an opportunity to participate in an expanding knowledge base of unconventional expertise.

Our first Community was formed in 2011 in the Eagle Ford and contains over 200 wells and is expected to grow to 300 wells by end of 2013. These wells have been analyzed and re-analyzed twice annually on a common workflow that has been improved every six months. This ensures that there is a meaningful well-to-well comparison. It also ensures that there is a repository of analogs and samples that can be leveraged as you build analysis competencies within your team. Our Bakken Community formed in 2013 and will have its first mid-year conference in the autumn of 2013 in Denver.

In the Montney, the Community of Best Practice Program has been used to assist two companies. They were both primarily focused on the lower Montney in a specific aerially defined zone. Both organizations pursued very different development strategies. However, they had never worked together as companies. As they moved out of commercially proving their position in the Montney, and into full development mode they desired to gain visibility into each other’s development program. They hoped to see how the performance of their wells and effectiveness of their completion strategy varied. They also wanted a defined approach for analysis of their wells and to build the competency of their engineering teams in executing the prescribed workflow. Fekete was able to facilitate the definition of the benefits toward which they mutually wanted to work and to provide a ready-made process and legal framework to rapidly launch the initiative.

An example well from the Eagle Ford community is used to illustrate a typical workflow and methodology adopted within the Community. As in all our analyses, the first step is to scrutinize the pressure and production data to ensure consistency. This is followed by selecting an appropriate reservoir model. For this well, it is the Horizontal Multifrac Enhanced Fracture Region (EFR) analytical reservoir model (SPE 162515). This model, implemented within the Fekete Harmony™ platform is used to simulate flow rates and pressures from each well. The model takes into account three linear flow regimes: flow within the fracture (very early time), flow within the stimulated region towards the fracture, and flow within the un-stimulated region towards the stimulated region. This reservoir model assumes all fractures have the same length and conductivity and are spaced uniformly along the horizontal well. There is a region of higher permeability around each fracture to represent fracture branching. The following image illustrates the three flow regions within the model: 1. fractures (xf) are shown in yellow, 2. the enhanced fracture region (k1 and X1) is white, 3. the un-stimulated or matrix region (k2) is light green.

Extrapolation of the late time data on the Flowing Material Balance plot determines contacted volume in place (OOIP or OGIP). In this example (and for most shale wells), the well has not established boundary-dominated flow and this value is considered to be a minimum volume.F

all

20

13

2

With these volumes populated into the EFR model (as xf and X1), a history match is then performed on k1, k2, and FCD. In the example shown below, the oil production rates were used and the model calculated a synthetic pressure curve that was matched to the actual historical pressure data. The historical pressure data was supplied as wellhead measurements and converted to bottomhole. Pressure data during the middle portion of the production history (circled in red) deviated from the prior established performance, and was excluded from the history match. This production period was immediately prior to the installation of a bottomhole pump, and the wellbore pressure calculations are thought to be in error due to wellbore flow instabilities.

new

s

3

Community of Best PracticeKirk N.R. Graham, Community Program Manager

Dave Lillico, Senior Technical Advisor

As the well has not reached boundary-dominated flowing conditions there is uncertainty as to the actual reservoir volume that this well will reach. A probabilistic approach was undertaken where xf was assigned a distribution (minimum = contacted volume and maximum = 600 feet), and Monte Carlo simulation was used to sample all possible history match solutions to determine the P10, P50, and P90 cases. As in the original history match, the parameters k1, k2, and FCD were varied to achieve the best fit. Additional input variables (number of fractures, net pay and porosity) were also assigned distribution ranges due to the uncertainty in their values. Dependencies were set such that an increase in xf results in a decrease in the number of fractures and increased net pay results in decreased porosity. Results are presented as forecast values, histograms, and cumulative distribution functions.

The model is initially seeded with fluid properties, petrophysical (pay, porosity, water saturation), completion (wellbore length, number of fractures) and basic reservoir parameters (initial reservoir pressure, reservoir temperature). The inner zone fracture region (ASRV) is determined from identification of the end of the first linear flow period using the Square Root Time plot. The upwards deviation (shown below) indicates that the well is seeing interference between fractures or that flow from the matrix permeability is occurring.

The above illustrates some of the technical elements of a typical workflow. However, it is but a small example of the numerous activities and achievements within the Community. To promote technical excellence, our Eagle Ford and Bakken communities meet at least twice a year. At these events, we review the advancements made since our last meeting and discuss the challenges we are seeing in the play to help shape future Community efforts. This ensures that the Community remains relevant as our understanding of the play evolves, and our priorities change as the play advances in its development lifecycle. Throughout the year, Fekete works with each client directly to ensure Community efforts align with their unique corporate goals. Perhaps your focus is leveraging your investment in Community to build a powerful learning and development program to onboard new hires as you expand into new plays. Perhaps you intend to define and roll out a global approach to booking reserves. Or, maybe you just need to predict when your wells need to go on artificial lift to avoid damage caused by liquid loading, and to better predict upcoming capital spending. Whatever your unique challenges, Fekete will listen, reflect, and adjust to balance your needs with the other needs in the Community to ensure you get ongoing value from the Community.

An important benefit of the Community is achieved by having us act as an independent third party to coordinate efforts such as communication between companies, data submissions, distribution of content, and organization of events. Community members benefit, not only from our engineering expertise, but also by ensuring that their reservoir engineers spend more time on engineering, and less time on administration and navigating political structures. As each company is different, the playing field is inherently uneven. Fekete’s role is to level the playing field by ensuring all Community activities strive to honour our commitment to advance the knowledge base of the Community, and to assist Community members in solving their common problems through mutual cooperation.

For more information on the Community of Best Practice, please contact us at [email protected], or visit fekete.com

IHS Inc. acquires Fekete Associates Inc.

Community of Best Practice

Fekete Harmony™ / IHS Data Direct Connect Fekete News & Notes

Engineering & Business News from Fekete Associates Inc.

news

page 1 2-3page

page 4

Fa

ll 2

01

3

1

In April 2013, IHS Inc., the leading source of information

and analytics, acquired Fekete Associates Inc. and its

Houston-based entity Fekete Corp. The acquisition strategically positions

one of the largest providers of well and production data with Fekete’s

industry-leading data analysis tools and engineering services. With

seamless access to IHS data, Fekete’s software products will empower

engineers to complete more analysis work using both traditional and

modern analysis techniques with unprecedented efficiency. Fekete’s

engineering and geoscience consulting team will also have access to a

wealth of oilfield data that will allow our engineers to provide a more

thorough analysis of assets, making our industry-leading services better

than ever.

This acquisition brings many benefits to our clients, and we plan to

leverage IHS’s capabilities and global reach. The acquisition gives us the

opportunity to strategically place engineering teams and software technical

support in regions around the world, including Europe and the Asia Pacific

region. This enables us to provide our clients with convenient access to

technical support across many time zones. As part of this growth and to

better serve our international clients, development of Fekete software tools

in other languages is a priority for future versions. There are also many

ways that the Fekete suite of reservoir and production engineering tools can

leverage the IHS geoscience tools including, IHS Kingdom and IHS Petra.

The ability to share data and results between our engineering and

geoscience tools will simplify collaboration and improve knowledge

sharing between geoscience and engineering professionals. Watch for

future developments that make this collaboration even better.

Initiatives like Fekete’s Community of Best Practice will continue to grow

and become an integral source of knowledge for Fekete’s clients under the

IHS organization. In fact, it’s a perfect fit with the IHS focus of providing

leading insight into the decision-making process. More opportunities to

participate in Communities of Best Practice around the globe are expected

in the future.

Fekete clients will also be pleased to know that the entire Fekete team

remains in place to continue serving your needs in consulting and software

development. As well, additional resources are being added to

accommodate future growth. We are still committed to providing

outstanding customer service for our cutting-edge software and consulting

services, and we look forward to continuing our work with you!

IHS Inc., headquartered in Englewood, Colorado provides data and insight

not only on energy, but across the chemical, aerospace, defense,

automotive, logistics, and electronic sectors. This suite of information

provides comprehensive working knowledge from which to make better

decisions.

For more information on IHS Inc., please visit ihs.com.

Fall 2013

IHS Inc. acquires Fekete Associates Inc.

Kevin DunnSr. Director, Engineering Business Development

ATCE 2013>>30 September – 2 October 2013

Ernest N. Morial Convention CenterNew Orleans, Louisiana, USA

Visit us at Booth 443 (Fekete) or 1419 (IHS)

new

s

Copyright © 2013 Fekete Associates Inc. Printed in Canada

One of the workflow challenges for oil & gas production analysts is to efficiently acquire data for interpretation in their preferred software applications. A typical workflow involves accessing, querying, and exporting data. Then, the task is to import this data and process it within the analysis application. This can be an arduous process when you need to get quick answers.

Fekete Harmony™ now streamlines this process by connecting directly to IHS’s production databases in both Canada and the USA. You can quickly update current well attributes, pressure, and production data via a direct connection to the Information Hub and Enerdeq databases. In the most recent release, and building on the existing “Update Existing Wells” functionality, you can also access the IHS Enerdeq database directly through Fekete Harmony’s GIS interface to view and import new wells.

4

Acquisition & Divestiture (A&D) engineers and geologists evaluating new ventures, or reservoir/production engineers seeking to develop a type well production profile based on offset production, will benefit from this efficient, on-demand data connection. Wells are easily viewed, selected, queried, and sorted based on their existing attribute data, such as primary fluid, formation, and operator. In addition, you can navigate within the geographical area of interest to ensure that you have the complete set of data available, in order to make a firm technical and business decision.

IHS’s acquisition of Fekete will further strengthen the connectivity between data and analysis software. Future development plans for Fekete Harmony™ include:

• Importing new wells using Canadian Information Hub data via GIS

• A direct connection to the International Exploration and Production Database (EDIN)

• More efficient data transfer, which enhances speed and provides a more comprehensive list of well attributes, properties, and production records

• Importing unallocated wells in Texas and Louisiana

• GIS mapping enhancements via a direct connection to IHS Energy Map Services

For additional information, please visit [email protected].

Fekete News & NotesFinal Fekete Newsletter For over 15 years, Fekete has been producing a semi-annual newsletter full of current and cutting-edge technology and engineering information. Though this fall 2013 issue will be the last official copy of Fekete News, we will continue to provide you with the same great technical content via IHS’s The Source energy newsletter.

The Source provides IHS energy customers around the world with updates on IHS Information Quality initiatives, news about product and service enhancements, and insight into market conditions and emerging technologies. Broken down by region, the newsletter also keeps customers up-to-date on new developments, important acquisitions, and access to documents like the Global Energy Information Review.

Fekete newsletter email recipients will automatically be subscribed to The Source. If you are not receiving your Fekete newsletter via email and wish to stay informed, you can subscribe to The Source by emailing [email protected].

Fekete Harmony™ / IHS Data Direct Connect

Fekete Software Name Changes

You will notice some changes to our product names in upcoming software releases as our product names and logos will be changing to reflect the recent acquisition by IHS Inc. In November 2013 products will be renamed as follows: IHS Harmony™, IHS RTA, IHS DeclinePlus, IHS CBM, IHS WellTest and IHS VirtuWell. IHS FieldNotes, IHS Piper and IHS Evolution will be rebranded in the May 2014 release.