U.S. DEPARTMENT OF ENERGY ADVANCED OIL RECOVERY PROGRAM CLASS II SHALLOW-SHELF CARBONATE RESERVOIRS 1992 -1995 DE-FC22-93BC14983.

U.S. DEPARTMENT OF ENERGYU.S. DEPARTMENT OF ENERGYADVANCED OIL RECOVERY ADVANCED OIL RECOVERY

PROGRAMPROGRAM

CLASS IISHALLOW-SHELF CARBONATE RESERVOIRS

1992 -1995

DE-FC22-93BC14983

Recovery of Bypassed Oil in the Recovery of Bypassed Oil in the Dundee Formation Using Horizontal Dundee Formation Using Horizontal

Drains Drains 1994-19971994-1997

James R. WoodJames R. WoodDepartment of GeologyDepartment of Geology

Michigan Technological UniversityMichigan Technological University

TOW 1-3 HD1 WELL SITETOW 1-3 HD1 WELL SITECRONUS EXPL.CRONUS EXPL.

•SPUDDED SEPT. 25, 1995SPUDDED SEPT. 25, 1995

•COMPLETED OCT. 18, 1995COMPLETED OCT. 18, 1995

•DEPTH 3518’ MD DEPTH 3518’ MD (3185’TVD) (3185’TVD)

•FLOWING 50-100 BBLS/DAY FLOWING 50-100 BBLS/DAY

•NO WATER CUTNO WATER CUT

MICHIGAN PROJECTMICHIGAN PROJECTTECHNIQUESTECHNIQUES

Horizontal Drilling Well Logging Modern Reservoir Management Compile Database of All Historical,

Geologic, Engineering, Production Data Correlate Historical Reservoir

Management with Production Histories

LOCATIONLOCATION MAPMAP

CRYSTALCRYSTAL FIELDFIELD

STUDY AREA

PROJECT OBJECTIVES

Evaluate the Potential for Additional Recovery of Hydrocarbons in Michigan

Develop:

Partnerships with Industry to Test New Technologies for Improving Hydrocarbon Recovery in Existing Fields

Resource Center for Technology and Information Transfer

MICHIGAN PROJECTMICHIGAN PROJECTCentral Basin Study AreaCentral Basin Study Area

CLARE

ISABELLA

MECOSTA

MISSAUKEE

MONTCALM

OSCEOLA

Crystal Field

Belly Achers

Douglas Reynolds

CatoHardy Dam

Fork

Coldwater

Sherman

Broomfield

GilmoreIsabella

Leaton

Rosebush

VernonCurrie

Wise

Freeman-ReddingLake George

Winterfield

SylvanEvart

& Prosper South

Prosper

Cranberry Lake& Cranberry Lake East

Skeels

Cedar

Cat Creek

Riverside

CRYSTAL FIELDCRYSTAL FIELD

WELLS USED IN STUDYWELLS USED IN STUDY(231)(231)

Regional Distribution of Reservoir Regional Distribution of Reservoir Lithology in DundeeLithology in Dundee

LimestoneDolomite

Dolomite + Anhydrite

MICHIGAN BASINMICHIGAN BASINSTRATIGRAPHIC STRATIGRAPHIC

COLUMNCOLUMN

MAJOR PRODUCING MAJOR PRODUCING HORIZONSHORIZONS

TRAVERSETRAVERSEDUNDEEDUNDEE

NIAGARANNIAGARANTRENTONTRENTON

PDCPDC

F CA RBONA T E

G

C

E

H3 SA LT

H1 SA LT

F

F

C

H2

H1

H2

A N H Y D R I T E

S H A L E

L I M E S TO N E

D O L O M I TE

S A L T

VERTICAL SCALE: 1 /4" = 250FT.0 250 500 750

BELL SHALE

ROGERS CITY LS.

REED CITY ANH.

REED CITY DOLOMITE

ROGERS CITY LS.

LUCUAS FM.

CRYSTAL FIELD

FREEMAN MB.

DU

ND

EE

FM

.L

UC

AS

FM

.

CROSS SECTION ACROSS MICHIGAN BASINEW CROSS-SECTION ACROSS MICHIGAN BASINTHROUGH CRYSTAL FIELD

Reed City AnhydriteReed City AnhydriteThins and is Absent Thins and is Absent in Vicinity ofin Vicinity ofCrystal FieldCrystal Field

Part of Crystal FieldPart of Crystal FieldStructure is Thought Structure is Thought To Be Due to Salt To Be Due to Salt DissolutionDissolution

Rogers City Rogers City CarbonateCarbonateThins in VicinityThins in VicinityOf Crystal FieldOf Crystal Field

-85.5 -85.4 -85.3 -85.2 -85.1 -85 -84.9 -84.8 -84.7 -84.6 -84.5 -84.4

43.2

43.3

43.4

43.5

43.6

43.7

43.8

-3100

-3000

-2900

-2800

-2700

-2600

-2500

-2400

-2300

-2200

-2100

CRYSTAL FIELD LOCATION MAPCRYSTAL FIELD LOCATION MAPMONTCALM COUNTY, MIMONTCALM COUNTY, MI

CRYSTAL CRYSTAL FIELDFIELD

CRYSTAL FIELDCRYSTAL FIELD CHARACTERISTICS CHARACTERISTICS

2000 Acre Anticlinal Structure in Central Michigan Basin

Combination Structure/Diagenetic Trap

Fractured, Vuggy Dolomite Reservoir Capped With Thin Limestone and/or Shale

Strong Water Drive Reservoir

Average Pay Thickness 12 Feet, Maximum of 40 Feet.

Initial High Production Rates up to 9000 Bbls/Day Resulted in Inverse Coning of Water

STRUCTURE STRUCTURE CONTOURCONTOUR

TOP DUNDEE FM.TOP DUNDEE FM.CI – 2 FT.CI – 2 FT.

TOW 1-3 HDTOW 1-3 HD

FROST 1-5FROST 1-5

HAPPY HAPPY HOLIDAY 6-3HOLIDAY 6-3

CRYSTAL FIELD CRYSTAL FIELD DEMONSTRATION WELLSDEMONSTRATION WELLS

-84.9 -84.895 -84.89 -84.885 -84.88 -84.875 -84.87 -84.865 -84.86 -84.855 -84.85

43.27

43.275

43.28

43.285

43.29

43.295

43.3

43.305

43.31

-2385

-2387

-2396

-2380

-2396

-2386

-2392

-2404

-2405

-2411

-2412

-2406 -2404

-2406

-2405

-2398

-2393

-2406

-2405

-2397

-2398

-2401

-2398

-2385

-2407

-2386

-2397 -2400

-2401 -2406

-2408

-2394

-2403

-2388

-2397-2397

-2386

-2393

-2397

-2393

-2388

-2404

-2395

-2407

-2401

-2391

-2394 -2403

-2400-2400

-2388

-2394

-2389

-2388

-2395

-2391

-2380

-2396

-2399

-2389

-2399

-2403

-2385

-2388

-2407-2389

-2400

-2402

-2400 -2398

-2389

-2392

-2393

-2393

-2389

-2392

-2376

-2402

-2392

-2387

-2379

-2385

-2390

-2395

-2393

-2366

-2403

-2384

-2391

-2400

-2381

-2387

-2389

-2385

-2383

-2383

-2381

-2368

-2388

-2394

-2396

-2397

-2393

-2378

-2380

-2394

-2400

-2384

-2374

-2378

-2382

-2394

-2372

-2390

-2381

-2389

-2401

-2391-2375

-2387

-2378

-2385

-2393

-2389 -2388

-2385

-2389

-2384 -2388-2394

-2393

-2384

-2381

-2384

-2383

-2400

-2376

-2381

-2381

-2377

-2401

-2387

-2375

-2386-2383

-2397

-2378

-2388

-2386

-2400

-2406

-2399

-2392

-2386

-2395

-2403

-2382

-2386

-2390 -2389

-2388

-2396

-2398

-2395

-2394

-2397

-2411

-2395 -2405

-2391

-2396

-2374

-2392-2385

-2382

-2387

-2396

-2386

-2393

-2398

-2382 -2397

-2412

-2408

-2404

-2400

-2396

-2392

-2388

-2384

-2380

-2376

-2372

-2368

CRYSTAL FIELDCRYSTAL FIELDSTRUCTURE CONTOURSTRUCTURE CONTOUR

TOW 1-3 HDTOW 1-3 HD

CRYSTAL FIELDCRYSTAL FIELD3D STRUCTURE3D STRUCTURE

TOW 1-3 HDTOW 1-3 HD

TOP DUNDEETOP DUNDEE

SALT COLLAPSE ??SALT COLLAPSE ??

TOW 1-3 HD TOW 1-3 HD WELL PLANWELL PLAN

650 FT.650 FT.8 5/8” CASING8 5/8” CASING

KICKOFF POINTKICKOFF POINT

ORIGINAL OIL/WATER CONTACT 3215 FT.ORIGINAL OIL/WATER CONTACT 3215 FT.

5 ½ “ TUBING5 ½ “ TUBING

ACTUAL HORIZONTAL LENGTHACTUAL HORIZONTAL LENGTH95 FT. BEYOND CASING95 FT. BEYOND CASING

7 7/8” HOLE7 7/8” HOLE

10 5/8” HOLE10 5/8” HOLE

3175 FT.3175 FT.

3235 FT.3235 FT.

3350 FT.3350 FT.

VERTICALVERTICALWELL.WELL.

450 FT.450 FT. 1800 FT.1800 FT.

2250 FT.2250 FT.

DU

ND

EE

FM

.D

UN

DE

E F

M.

BE

LL

SH

.B

EL

L S

H.

TR

AV

ER

SE

LM

.T

RA

VE

RS

E L

M.

CO

RE

CO

RE

CRYSTAL FIELD

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1920 1940 1960 1980 2000 2020

BB

LS

x 1

000

0

200

400

600

800

1,000

1,200

1,400OIL PRODUCTION(BBLS)

ANNUAL WATER

PRODUCTION HISTORY-CRONUS TOW 1-3 HD-1 CRYSTAL FIELD, DUNDEE FM., MI.

0

10000

20000

30000

40000

50000

60000

Jul-95 Oct-95 Feb-96 May-96 Aug-96 Dec-96 Mar-97 Jun-97 Sep-97 Jan-98

CU

MM

. (B

BL

S)

0

50

100

150

200

250

BO

PD

CUMM.

DAILY

TOW 1-4 HD

0

500

1000

1500

2000

2500

3000

3500

Oct

-95

Dec

-95

Feb

-96

Apr

-96

Jun-

96

Aug

-96

Oct

-96

Dec

-96

Feb

-97

Apr

-97

Jun-

97

Aug

-97

Oct

-97

Dec

-97

Feb

-98

Apr

-98

Jun-

98

Aug

-98

Oct

-98

Dec

-98

bb

ls Oil

Water

TOW 1-3 HD-1 TOW 1-3 HD-1 CORE PHOTOCORE PHOTO

CRONUS-TOW #1-3 HD-1 - RESIDUAL OIL AND WATER SATURATIONS WITH DEPTH

0 10 20 30 40 50 60

3174-75

3178-79

3182-83

3186-87

3190-91

3194-95

3198-99

3202-03

3206-07

3210-11

3214-15

3218-19

3222-23

3226-27

3230-31

CO

RE

DE

PT

H IN

FE

ET

PERCENT SATURATION

OIL WATER

CRYSTAL FIELDCRYSTAL FIELDTOP DOLOMITETOP DOLOMITE

-84.895 -84.89 -84.885 -84.88 -84.875 -84.87 -84.865 -84.86 -84.855

43.275

43.28

43.285

43.29

43.295

43.3

43.305

-2424

-2420

-2416

-2412

-2408

-2404

-2400

-2396

-2392

-2388

-2384

-2380

RELATIONSHIP BETWEEN DUNDEE RELATIONSHIP BETWEEN DUNDEE LIMESTONE & DOLOMITE AT CRYSTAL LIMESTONE & DOLOMITE AT CRYSTAL

FIELDFIELD

DOLOMITEDOLOMITE

LIMESTONELIMESTONE

Dundee Reservoir Lithologic TypesDundee Reservoir Lithologic Types

Limestone - depositional fabrics

Grainstone shoal sand bodies

Fenestral peritidal packstones and wackestones

Stromatoporoid/coral boundstone patch reefs

Dolomite - burial diagenetic fabrics

Fractured, vuggy, hydrothermal dolomite

Sucrosic, laminated, dolomite with anhydrite

Limestone Limestone ReservoirReservoir Fabrics Fabrics

Stromatoporoid-coral boundstone patch reef

Intraparticle and intergranular porosity

Fractures augment moderate to high porosity/permeability

Main reservoir in one field present in others

HydrothermalHydrothermal Dolomite Cement Dolomite Cement

Piece of slabbed core from the Leonard Oil-Lee #1 - Dry hole with oil shows Northwest of Crystal Field

Abundant fractures and vugs filled with white ”Saddle” (hydrothermal) dolomite

Limestone Limestone ReservoirReservoir Fabrics Fabrics

Fenestral Peritidal packstones and wackestones

Vertical and horizontal fenestrae

High permeability and porosity

Main zone in several large fields

Thin-Section Thin-Section PhotomicrographPhotomicrograph Dundee Reservoir Crystal FieldDundee Reservoir Crystal Field

Dundee Reservoir CharacteristicsDundee Reservoir Characteristics

Lithology - Limestone or Dolomite

Pore Characteristics - Matrix, Vugs, and Fractures

Stratigraphy - Rogers City, Dundee, Reed City “Facies”

Production History – Initial High Oil/Water Ratios, Initial High Production Rates

LESSONS LEARNED:LESSONS LEARNED:

EVALUATION KEYS FOR IMPROVED RECOVERY ATTEMPTSEVALUATION KEYS FOR IMPROVED RECOVERY ATTEMPTS

Reservoir Characterization– Accurate Mapping (esp. Dundee Fm.)

– Porosity and Permeability

– Dolomite Diagenesis Crucial

Production History– Field Development History

– Field Wide/Individual Well Production

– Well Status/Plugging Record

WHAT SHOULD HAVE BEEN DONE:WHAT SHOULD HAVE BEEN DONE:

Avoid drilling wells low on structure

Map dolomite carefully Focus on “Attic” oil Spread DOE funding over more

opportunities in more fields

FUTURE PLANS:FUTURE PLANS:

Project is ended but:– Re-examine Crystal Field TOW

well in light of subsequent attempts to copy its success to see why it succeeded

– Map dolomite over central Michigan Basin

– Develop model for dolomite diagenesis

27 Additional Devonian Horizontal wells

20 Dundee, 2 Traverse Lime, 3 Richfield, and 2 Detroit River Wells completed

Average production about 30 bbls oil/day

Total annual production - 300,000 bbls

Gross wellhead value ($17/bbl) - $5,000,000/year

Royalty owners’ share - $630,000/year

State severance taxes - $250,000/year

Federal, State, and local income taxes - $1,650,000/year

Capital investment cost (27 wells) - $10,000,000

Economic Summary: Economic Summary: HORIZONTALHORIZONTAL WELLS WELLS

Demonstration Well Tow 1-3 Produced 50,000+ Bbls Oil in 18 Months - No Water

Detailed Characterization of 30 Similar Fields Drilling and Completion of Horizontal Drain State Approval of Waiver of Liability for Pre-Existing Pollution in

Field - Hundreds of Fields Are Similar Candidates Stimulation of Interest in Horizontal Drilling - ~20 Dundee Permits in

1996-97; 78 wells currently permitted or drilling by 1998 Horizontal Drilling has expanded statewide in several other formations. Numerous undergraduate (50+), Masters (32+) and Ph.D (3) Students

entered industry as direct result of DOE projects (1993 – 2002)

Project Summary:Project Summary:BENEFITSBENEFITS

CRONUS CRONUS EXPLEXPL. - TOW 1-3 HD1 . - TOW 1-3 HD1 WELL SITEWELL SITE

Project Summary:Project Summary:

ADDITIONAL HD WELLS AT CRYSTAL FIELDADDITIONAL HD WELLS AT CRYSTAL FIELD

Tow 1-3 HD1, 50-100 BOPD; 135,000+ BBLS

Frost 5-3 HD, water/oil

Happy Holiday Tree Farm 6-3 HD, water/oil

Project Summary:Project Summary:FRACTURESFRACTURES

Fractures are present in most Dundee Dolomite reservoirs, enhancing oil productivity, but also allowing for water transport

Fractures enhance permeability, especially vertically, porosity may be altered by diagenetic changes.

Fractures and diagenesis have relation to structures and fault systems in basement

Fractures have strong relationship to hydrothermal systems that also produce pervasive dolomitization and HTD mineral suites

2 HART AWARDS

BEST NEW TECHNOLOGY - 1994

BEST NEW WELL - 1996

Project Summary:Project Summary:AWARDSAWARDS

DELIVERABLESDELIVERABLES(actually (actually delivereddelivered))

DIGITAL DATA DIGITAL DATA

WELL LOCATIONS (53,000+)WELL LOCATIONS (53,000+)

FORMATION TOPS (465,000)FORMATION TOPS (465,000)

PRODUCTION HISTORY (40 Fields)PRODUCTION HISTORY (40 Fields)

FIELD HISTORY – 40 FieldsFIELD HISTORY – 40 Fields

WIRELINE LOGS - 50WIRELINE LOGS - 50

CORE DATA – 60 ft. Tow 1-3CORE DATA – 60 ft. Tow 1-3

STRUCTURE AND ISOPACH MAPSSTRUCTURE AND ISOPACH MAPS

PROJECT CD-ROM – 500+ COPIESPROJECT CD-ROM – 500+ COPIES

PROJECT TEAMPROJECT TEAM

MICHIGAN TECH UNIVERSITY JAMES WOOD - PROJECT DIRECTOR

JACKIE HUNTOON - BASIN MODELING

WAYNE PENNINGTON - LOG ANALYSIS

WESTERN MICHIGAN UNIVERSITY WILLIAM HARRISON - RES. CHARACTERIZATION

TERRA ENERGY, LTD. CRAIG TESTER - PETROLEUM ENGINEER

ERIC TAYLOR - PETROLEUM GEOLOGY

Recovery of Bypassed Oil in Recovery of Bypassed Oil in the Dundee Formation Using the Dundee Formation Using

Horizontal Drains Horizontal Drains 1994-19971994-1997

James R. WoodJames R. WoodDepartment of GeologyDepartment of Geology

Michigan Technological UniversityMichigan Technological University